Supply Chain Intelligence = Business Analytics + Benchmarking

Transcription

1 The Supply Chain Leadership Forum 2011: Walt Disney World Resort, Lake Buena Vista, FL Supply Chain Intelligence = Business Analytics + Benchmarking Mark Zelenak, VP CPG and Retail, One Network & John Musante, VP, Tompkins Associates

2 Session Scope This Session Will Focus On: Introduction to Supply Chain Intelligence Multi-Echelon, Multi-Enterprise Supply Networks Company s Use of BI/BA Business Intelligence (BI) Business Analytics (BA) Common Challenges with BI/BA Supply Chain Intelligence Model Discussion 2

3 Introduction to Supply Chain Intelligence Winning strategy: Find the right information at the right time and put it to work. Supply Chain Intelligence is increasing due to lower cost of hardware and software options combined with better ways to manage and manipulate data. Data from different systems and databases has higher connectivity and has become less costly. 3

4 Introduction to Supply Chain Intelligence Supply Chains are really Supply Networks Multi-Echelon, Multi-Enterprise, Many-to-Many & Collaborative Varying Time Horizon Dependencies Long-term, mid-term, near-term, and execution Requires continuous and incremental sensing, analyzing, responding, and execution across all parties Suppliers Co-Pack / Co-MFG MFG Plants MFG DC Retail DC Retail Stores 4

5 Company s Use of BI/BA How many of you have BI/BA application(s) in use within your organization? Common questions: Where do you focus efforts? Do you collaborate with trading partners? How do you address data integration? What types of analytic techniques should you use? How much data analysis is right for us? 5

6 Business Intelligence BI typically includes: Standard reports and dashboards Querying data online Data mining Online analytical processing (OLAP) Alerts Goal: Connecting data from different systems and repositories across the supply network to spot potential problems and/or opportunities that previously eluded the radar 6

7 Business Analytics BA typically includes: Statistical analysis Forecasting Predictive modeling Simulation Optimization Goal: One step further than BI; makes extensive use of advanced techniques for analysis and decision making supports a sense and respond framework 7

8 Common Challenges with BI/BA BI/BA Challenges: Data quality Data sharing across systems, organizational entities, and enterprises Security Isolated processes Shared processes and transactions Degree of sophistication required 8

9 Supply Chain Intelligence Model Supply Chain Intelligence is the combination of BI/BA and supply chain benchmarks. It offers the power of BI/BA with the ability to compare metrics to external performance metrics. 9

10 Supply Chain Intelligence Model Supply Chain Intelligence SM An integrated cross functional analytics platform embedded with external peer group benchmark metrics 10

11 Supply Chain Intelligence Model Integrated supply network technology platform Cross-functional metrics Consolidated supply network reporting Issue & opportunity identification Root cause analysis Shift focus from gathering and collecting to analyzing and using data assets Internal (cross division / region / product / customer, etc) and external benchmarking Improved decision making Continuous and incremental Near real-time vs. historical 11

12 Delivering Value: Supply Chain Intelligence Business Objective and Key Drivers Drive Supply Chain Performance Reduce Spend: Transportation & Sourcing Optimize Inventory Performance Increase Supply Chain Efficiency Improved Service Levels & Availability Best-in-class organizations integrate different supply network data to optimize cost, service and overall performance. 12

13 Delivering Value: Supply Chain Intelligence Value Levers Demand Variability Reduce transportation costs Improve carrier performance Identify sources of material cost variance Reduce lead times Identify out-of-compliance shipments Segment and improve management of fast and slow moving items Manage demand variability Identify inventory excesses and shortages across global network Identify high and low performing buyers Reduce total supply chain costs (end-to-end costs) Optimize safety stock quantity and placement Improve supply / demand balancing Balance customer cost / service tradeoffs Increase collaboration with suppliers, customers, service providers Lead Time Variability Operational Efficiency Supply Variability 13

14 Delivering Value: Supply Chain Intelligence Supply Chain Analytics Detailed transportation cost analysis and control charts Carrier performance Supplier performance Customer performance Sourcing variance analysis Contract compliance Transportation cost benchmarks Inventory histogram Detailed inventory analysis Out-of-stock analysis Inventory buyer performance Total landed cost Sales & Operations Planning (S&OP) Variance analysis Cross-functional account performance Collaborative supply chain benchmark scorecards 14

15 The Supply Chain Leadership Forum 2011: Walt Disney World Resort, Lake Buena Vista, FL Discussion