Supply Chain Analytics as an Accelerator Towards Operational Excellence March 2018

Transcription

1 Supply Chain Analytics as an Accelerator Towards Operational Excellence

2 Agenda 1. PwC survey highlights: facts and figures 2. Analytics in the Supply Chain 3. How can Analytics a-x-elerate Operational Excellence? PwC 2

3 PwC survey highlights: facts and figures 1 PwC 3

4 PwC s 2016 Global Industry 4.0 Survey is the biggest worldwide survey of its kind, with over 2,000 participants from nine major industrial sectors and 26 countries 21% 19% Industrial Engineering & Manufacturing Construction 11% Chemicals 10% Electronics 9% Transportation & Logistics 9% Automotive 8% Metals 8% Other 4% Forest, Paper & Packaging 2% Aerospace, Defense & Security respondents US$907 bn in annual digital investments US$421 bn expected annual cost saving 2.9% expected annual digital revenue increases 26 countries PwC 4

5 The survey highlighted the importance of Data Analytics in our clients decision-making processes over the next five years Big Investments with big impact: it s time to commit From talk to action Digitisation drives quantum leaps in performance 83% of respondents expect data analytics will have a significant influence on their decision-making processes in five years time 33% of respondents expect this change to happen in the next five years Industry 4.0 is accelerating globalization with a regional flavour Deeper digital relationships with more empowered customers 50% 33% 83% Data analytics capabilities require significant change Data analytics and digital trust are the foundation of Industry 4.0 Focus on people and culture to drive transformation The Industry 4.0 Survey had a focus on Data Analytics, giving us a bird s eye view of this issue in Industry High Importance today Participants who see potential of Data Analytics in five years time High Importance in five years PwC 5

6 However, there is a gap between the potential seen by respondents in Data and Analytics and their current capability 74% of respondents don t have an advanced Data and Analytics Capability 5% of revenue p.a. will be spent on investment in data and analytics $907 bn 14% of respondents had a dedicated department for data analysis serving many functions across the company 50% of respondents felt there was a lack of digital culture and training PwC 6

7 Also, PwC s Global CEO Survey (2018) indicated that changes in core technology and AI are sources of disruption and uncertainty for CEOs Believe that digital technologies and AI will not be the drivers for headcount decrease 71% Are concerned about the availability of digital skills in their countries Believe that changes in digital technologies and AI (AI, robotics, blockchain, etc.) will disrupt their business Are not clear about their people strategy in order to tackle those changes 52% Stated difficulty in attracting digital talents 50% Are not cleat about how changes in digital technologies and AI affect customer experience 44% 64% 71% 60% feel extreme pressure to deliver results under strict timelines PwC 7

8 Analytics in the Supply Chain 2 PwC 8

9 Along the supply chain there are questions that are deeply analytical to address and notoriously difficult to solve How I can best forecast demand at micro levels and what new data I could use to improve accuracy? What are the optimum customer and internal service levels across the network? Working towards operational excellence Key questions How do I optimally position my inventory across multiple echelons? How do I enable real time supply chain planning? How to quantify risks such as stock out or obsolescence? PwC 9

10 PwC proposes addressing those SC questions and closing the Data & Analytics gap by honing advanced Data and Analytics capabilities along the Supply Chain SCOOP features range from diagnostic to transformational and real-time PwC 10

11 Designed to integrate analytics into a smooth process where automation and human intervention are balanced aiming at producing the most valuable output SAP/Oracle ALTERYX Target data model (Apps) Engagement & deliverables Contract & Operation Agreement + Provide Data Resources (from ERP, templates, etc.) Extract Files from Client ERP system access Use Alteryx and SQL Server to clean and transform files Select Parameters for each App Move from SQL to Tableau Client Analysis Demo Period Client can play around the Tool Start Visualization Output Contract & Operation Agreement + Obtain Data Resources Collection Data Templates + Completed Data within Templates Able to play on the 6 Apps Generate insights Feedback 3 Iterations Final output Engage with more opportunities End-users Analyst Consultant Client SMEs Project Leaders Sponsors PwC 11

12 Analytics can lead to major improvements in value generation throughout the value chain Grow Revenue Increase Volume Minimise lost sales from stock-outs Increase 2-4% Sales Reduce stock-outs by 20 40% or more Increase 5-10% Gross Profit Maximise Value Reduce Costs Reduce Cost to Serve Minimise Obsolescence Optimise use of Production Infrastructure Reduce Warehousing costs by 30% or more Reduce changeovers, rush shipments, product and raw material write-offs 40-60% fewer admin hours spent Decrease cost per unit by 5-10% or more Reduce Working Capital Reduce Inventory Cost Reduce Slow Moving Stock Reduce inventory by 20-40% PwC 12

13 How can Analytics a-x-elerate Operational Excellence? 3 PwC 13

14 Watch the Video PwC 14

15 How can Analytics A-x-elerate Operational Excellence? PwC 15

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