Supply Chain Execution Systems

Transcription

1 Reinventing Supply Chains Supply Chain Execution Systems Alain Poirier, VP Susan Evans, Managing Director Kevin Hume, Principal Atlanta, Georgia -Tompkins International August 28 th 2013 August 26-28, Supply Chain Leadership Forum

2 Topics for Discussion Supply Chain Technologies: Return on Investment (ROI) Complexities of Omnichannel Technology Enterprise Resource Planning (ERP) Solutions Distributed Order Management (DOM) Warehouse Management Systems (WMS) Transportation Management Systems (TMS) Supply Chain Technology: Where Companies Are Investing Concluding Thoughts 2

3 Execution Systems: Best ROI Adapted from: Eye for Transport, Supply Chain Technology Report ( ) 3

4 Discussion Points How do the survey results align with your own organization s ROI perceptions for execution systems? What do you see as the largest hurdles to achieving supply chain technology ROI expectations? 4

5 communities enterprise application integration layer real-time synchronization & orchestration inventory nodes touchpoints divisions Complexity of Omnichannel Technology 6 Essential Retail Business Competencies (RBCs) RETAIL MULTICHANNEL OPERATIONS EXCELLENCE (MOE) MOE Participant Model (MPM) plan develop source move distribute sell B2C / B2B retail operations wholesale operations franchisee operations market channels Competency Enabling Technologies (CETs) brands & banners finance, human capital management, & real estate systems product lifecycle mgmt. supplier relationship mgmt. merch. planning and allocation TMS WMS LMS YMS global trade management demand planning/replenishment master data mgmt. & product information mgmt. CRM & mktg ecomm platform store systems retail merchandise system order management system business intelligence, analytics, KPIs, & metrics Demand-Driven Value Network (DDVN) multi-enterprise platform many-to-many network 360 view of the customer end-to-end visibility in real time demand-driven continuous planning-execution execution synchronized with demand in-store web mobile catalog call center 5 stores home/business delivery FCs transportation providers product communities integrated network suppliers DCs kiosk LSPs end-of-aisle transportation communities products supply (inventory visibility & agility) demand branding sales channels social commerce suppliers carriers (in-transit) 3 rd party fulfillment retail store fulfill (DCs) fulfillment centers (FCs) stores transportation sourcing product sourcing

6 Enterprise Resource Planning 2013 study by Panorama Consulting found that 86% of survey respondents are satisfied with their current ERP system. All best-in-class solutions have a software as a service (SaaS)/cloud option. Available to all companies regardless of size Without substantial capital investment Existing, dormant functionality remains a large opportunity at most companies with world-class ERP. 6

7 Discussion Points What are common examples of ERP functionality that remain dormant or not leveraged to their full capability? What are barriers to allowing ERP to run (more) unconstrained in your organization? When facing ERP consolidation challenges; are cloud based solutions considered a viable alternative? 7

8 Distributed Order Management (DOM) Software Single view of network inventory Holistic Real-time Determines ideal fulfillment point for all orders Drives incremental sales through decreased out-ofstock (OOS) and greater selection with no additional inventory Increased profitability through optimized fulfillment Dynamically manages inventory commitments across channels 8

9 Discussion Points Do you have any DOM success stories? While initially targeted to retailers, DOM has started to make the jump over to other industries. How and when might DOM benefit consumer packaged goods (CPG) manufacturers? 9

10 Warehouse Management System (WMS) Pre-configured, channel specific applications under hosted environments can provide faster-lower TCO deployments Enhanced integration, visibility and reporting capabilities to support global supply chains Timing & cost continue to be leading upgrade challenges 10

11 Transportation Management System (TMS) Logistics Management survey: 37% of respondents currently use TMS 25% plan to change within the next year (new application or feature driven upgrade) International functionality has blurred the lines between TMS and global trade management software. Complexity of multi-modal planning-execution is driving new features. Network based / cloud services drive additional efficiencies from traditional point to point partner integration Speed to deployment Tendering-Audit-Pay In-transit Visibility 11

12 Supply Chain Technology: Upcoming Investments Adapted from Eye for Transport, Supply Chain Technology Report ( ) 12

13 Discussion Points Supply Chain Visibility, S&OP, Transportation Management and Supply Chain Planning are core components of an Omni-channel strategy. How do these results align with your organization s plans? Looking ahead, how and/or where do you think results are likely to look different in next year s survey? What s going to be hot or, contrarily, fall out of favor? 13

14 Concluding Thoughts Omni channel and demand driven features require robust application integration or platform based strategy a significant technical challenge for complex supply chains. Next steps to Omni channel and demand driven features is to develop a supply chain strategy roadmap encompassing both supplier and customer considerations. Define the sequence and evaluation of the enabling technologies that will then execute the roadmap. Determine the best measurements to validate the strategy decisions for continuous improvement. 14