Supply Chain Visibility and Optimization Across Manufacturing

7/25/2019 Supply Chain Visibility and Optimization Across Manufacturing

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Copyright IBM Corporation 2009

IBM Confidential

IBM Global Business Services

Supply Chain Visibility

Bill Gilour


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Todays key message: Visibility too good to have, but its notas easy as you may think!

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34

Supply chainvisibility is

inhibited by a lac5of capabilities andan un6illingnessto collaborate7

Custoers haveincreased deandfor ore precise

synchroni8ation ofsupply and deand7

'rocess data :technology areidentified as the

roadbloc5s to goodris5 anageent

yet they are the 5eyenablers7

(ead tiesdelivery and ;uality

are top challengesbut overall

globali8ation hasbeen a positive

boon for all7

Based on responses of to a very great extent and to a significant extent


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Implementation is patchy, but is distinctive in top performingsupply chains. It is worth it!

Percentage of organisations that have implemented isi!ility solutions"riving integration and visi!ility of

information inside our recipients#

organisations ran$s fourth on their

priority list% and external visi!ility

falls even lo&er ' in seventh place(

)hough it may seem logical to

!lame poor visi!ility and

colla!oration on inade*uate I)%

supply chain executives point

else&here(

+ot surprisingly% organisational

silos are the !iggest !arrier( But &e

&ere shoc$ed at ho& many

executives reported that their

organisations are too !usy to share

information or simply do not !elieve

colla!orative decision ma$ing is

that important(

@ "op supply chains deterined based on respondentsA ran5ing in $M+ +esearch Supply Chain "op 2/ for 200


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""he percentage of the 6orldAs fresh6ater supply used by agriculture7

!f the food purchased in the developednations is going to 6aste

#"

*o6 far a typical carrot travels beforeit is purchased by the consuer7

$% miles

'ounds of eat and poultry recalledin the &S in the last ?/ years

# million

!r 4/ of sales lost due to supply

chain inefficiencies

&'( billionannually

The need for progress is already clear)..


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*lbrecht +urers -The our /orsemen of the *pocalypse


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0o, the key 1uestions for the presentation are:

Dhat do 6e ean by Supply Chain Visibility and do 6e all ean the sae

thingE

Dhat are the issues and barriersE

Case studies 6hy is visibility such a hot topicE Dhat benefits does it provideE

Dhat do you have to get rightE Its not all about technology


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2hat do we mean by 0upply 3hain Visibility, and do we allmean the same thing4

Visibility ofF

- 'roducts 6hereabouts status- +eal tie deand and deand plans

- Supply plans

- Inventory levels by location

- !rders

$nd visibility of assets e7gF

- Vehicles condition and capacity

- 'eople and capabilities

If you canAt easure it you canAt anage itH


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The 0upply 3hain of the uture must be 05*6T76...It will beInstrumented, Interconnected 8 Intelligent

Instrumented

Interconnected

Intelligent

*utomated Transactions 8 0mart +evices

9ptimied lows

;etworked


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0tatic 0upply3hain

unctional7=cellence

/oriontal


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6eliability 8le=ibility

0ynchronisation of 0upplywith +emand

Integrate with 3ustomers 8 0uppliers

0implification8 3ontrol

Transaction


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3ase study $.I@5: *n electronics manufacturer needing tocontrol its supply to assure availability

(ac5 of visibility into supplierinventory leads to stoc5 outs

latee=pedited shipents ;ualityissues etc7

Inability to receive tiely accuratedeand signals leads to stoc5 outs

e=cessobsolete inventory highercost lost revenue and poor

custoer satisfaction7

(ac5 of tiely inforation onforecast supply or custoer ordersresults in additional costs such aspreiu routing or redistribution

(ac5 of visibility and tielyinforation lengthens the cash

tocash cycle reducingprofitability

Source: Line56 2003

089ections


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3ase study $.I@5: 9ur response is a AVirtual 3ommand 3entreB,providing access to our customers and suppliers planning data

Virtual3ommand

3entre

Cogistics/ub

+emand/ub

0upply/ub

.eand .riven+eplenishent

.eand


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3ase study D.E0$ A+ata 3runchB proFect focussed on data 1ualitybetween GH 6etailers and 3onsumer ective is address a 5no6ledge gap in the grocery industry as retailers and suppliers often haveincoplete data leading lead to costs 6ithin the supply chain7

Benefits are anticipated in the follo6ing three ain areasF

- +eductions of cost in anual 6or5arounds to source issing data and correct errors

- +educed shrin5age adinistrative costs

- +eduction in lost consuer sales through shelf stoc5 outs

- !ur data 6ill be used to ;uantify the &, retailers and suppliers profit erosion and lost sales7 $ resulting

6hite paper 6hich assesses the ipact and opportunities is scheduled for issue later in the year

Source: British ,etail Consortium

Issue -. /uly0 1ugust 2334


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3ase study # Improved +istributor 5anagement in Erowth 5arkets

"he Scope

#( actories

' 3arrying 8 orwarding *gents >38*s?

',( +istributors spread across the country

$ million 6etailers

+istributors are remotely located and not able to remain online all time /uge amount of data needs to be handled

/igh transaction monthly cycle

Factory

C&FA/Depot Distributor

Wholesaler

Retailer Consumer

Need for a distributor collaboration system


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!b>ectives

3apture 0econdary 0ales J

*ccurately, In +etail and 2ithout


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3ase study * common data strategy to enable multiple analyticalsolutions


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3ase study . Gsing analytics to create demand through consumerinsights fulfilled by a demand driven repository

3onsumers

Master .ataBusiness +ules

.eand .ata

Syndicated .ata

$nalytics+esults

Insights and Collaboration'latfor

Insights

$ggregate .ata Shopper Insights $nalysis

.ynaic 'ricing

'!S .ata

.eandSupply 'lanning

Category Manageent

'rootion 'lanning

Enterprise !eporting

"#s$ %lerts

6etailers @ottlers

*nalytics


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2 +.CAs L +egional .istribution Centers

29


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0everal very different case studies, so theres no single rightsolution. 7nabling technology falls into a number of groups

!ptiisation tools that allo6 you to do soething useful 6ith the inforation

"ools and sensors for realtie data capture

'ortals for the capture of suppliersA data

Integration hubs for the creation of endtoend visibility


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0ummary: 0upply 3hain Visibility is on everyones list ofchallenges, but no one has solved all the issues Visibility can be e;ually applicable to products assets and people

Three Heys to success

6ule $:


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IBM Confidential


"han5 )ou


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Hennedy Information ranks I@5 as a leader in supply chainconsulting

D;okia

*pple


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3ollaboration 8 0upplier Integration

7+I

Supplier Compliance

Order ifecycle 'anagement

#nventory utilisation

"#"

O to delivery

rocess productivity

D-"

E(# costs

% month implementation

0aa0, hosted 8 financed

le=ible 3ommercial models

9G6

Documents

Supply Chain Visibility and Optimization Across Manufacturing