Understand Prescriptive Analytics in 20 Minutes. November 17, 2016

Transcription

1 Understand Prescriptive Analytics in 20 Minutes November 17, 2016

2 Welcome! Understand Prescriptive Analytics in 20 Minutes November 17, 2016 Agenda: > What is Prescriptive Analytics? > Why companies use Prescriptive Analytics? > Why now? > The AIMMS approach > Some examples > Q&A

3 Meet the presenter Marcel Mourits AIMMS VP Supply Chain Strategy Marcel has 2 decades of experience in logistics and supply chain operations across Europe. In addition, he holds a PhD in Supply Chain Network Design and Operations Research. He works closely with our customers, partners and research organizations like Gartner as well as our sales and marketing teams to help companies understand and benefit from Prescriptive Analytics.

4 Poll Question What's your current take on Prescriptive Analytics? These are old ideas parading as new ones New method of working that fits the 21st century I don't know yet, curious to find out 5

5 What is Prescriptive Analytics? From Competing on Analytics: The New Science of Winning by Thomas H. Davenport In essence, Optimization ANSWERs the question: What ACTIONS DO I NEED TO TAKE to achieve my desired goal? 6

6 What is Prescriptive Analytics? A New Emerging Technology & Approach 7

7 Sound Familiar? Why Companies use Prescriptive Analytics; > Are you frustrated by not being able to smoothly deal with complex recurring planning issues? > Are you limiting your growth and service by technology not fully fitting your ideal process? > Are you feeling stuck because IT slows down the process improvements you envision? Limited ability to handle complexity Spreadsheets become error-prone and difficult to maintain and update Difficult to share and plan collaborative Doesn t fully address all of your questions Does not fully reflect your process Lack agility - don t support rapid development of new, experimental, models Time consuming High maintenance costs Can t easily update & adapt 8 What used to take 10 hours now takes 5 seconds Indian Manufacturing Company AIMMS fits perfectly to our business requirements. You get exactly what you want without paying for unnecessary What used to take me 10 hours now takes 5 seconds features you will never use. Global Shipping Company With the adoption of AIMMS PRO, Papyrus will rapidly make the transition from a locally oriented organization to a European Supply Chain concept. European Paper Merchant

8 Why Now? A Bain & Company study showed companies with advanced analytics capabilities outperform rivals because they make better decisions, faster, and with better execution > 55% of surveyed companies view their supply chains as equal to or worse than industry peers > Reducing supply chain costs while improving performance in complex environments is incredibly challenging > As resources become scarcer and margins thinner, it is more important than ever to integrate advanced analytics tools into production and logistics planning 9

9 The AIMMS Approach AGILE, FLEXIBLE, CAPABLE AIMMS Do not use or replicate without permission 10

10 Some Examples European Metals company > Highly specific purchasing process > Optimizing multiple aspects: Mix of raw materials Timing of purchase Batch size Re-use of scrap material > Relatively small App > 10 mln annual savings Worlds largest meat company > Complicated production planning > Optimizing within numerous constraints Certification requirements of 100+ countries Capabilities & certifications of 54 plants Source material specs & prices Demand product volume & prices Tax legislations > Huge App driving enterprise business > 3% increase of company profits 11

11 Some Examples High Tech Company > Multi-Echelon inventory > Optimizing outside the company Include the distributors inventory Sharing clients demand For all thousands of SKU > Healthy inventory composition (ME) > End-to-end visibility & predictability Large USA Retailer with 2,000+ stores > Maximize impact promotional budget which of the supplier suggested promotions to adopt? what amount of funding to allocate to which promotional activity? what new or replacement items to introduce, and when? how to modify the overall product assortment for each category? how to best cater to continuously changing customer preferences? > Category management has full visibility into costs and customer trends > Better decisions faster about pricing, promotions and assortment 12

12 Next Steps You just got a new insight into room-for-improvement but You have limited time to explore feasibility Share your challenge in 2-3 lines challenge@aimms.com however You are intrigued by the value so How can you quickly (dis)qualify your idea? We will respond in 24 hours: > can AIMMS really help > what timeframe > what cost 13

13 Q&A If you have a question for Marcel, you can submit your questions using the Q&A tab in the Go-to -meeting control panel now.

14 Resources Thank you! Link to slides and recording will be ed to you. Check our latest Supply Chain blog by Chris Gordon Our Prescriptive Analytics Brochure is available in the Go-to-meeting control panel Go to aimms.com for more webinars, white papers and case studies Marcel Mourits AIMMS VP Supply Chain Strategy