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20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
20131202  Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized
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20131202 Value of supply chain analytics for the electronics industry - a strategic viewpoint - sanitized

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This presentation gives a high level overview on the deployment opportunities of analytics in the electronics supply chain space given the actual supply chain trends within the global electronics …

This presentation gives a high level overview on the deployment opportunities of analytics in the electronics supply chain space given the actual supply chain trends within the global electronics industry.

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  • 1. December 2013 Global Trends in Supply Chain Management and role of Analytics towards a Smarter Value Chain A strategic Point of View IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 1
  • 2. This presentation covers 3 topics 1 Latest Trends in Electronics Supply Chains 2 Role of Analytics in Supply Chain IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved 3 How to get Started with Analytics Page - 2
  • 3. Increase in interconnectivity among electronic products leading to explosion of data and information Emerging markets Electronics Trends stimulating growth for electronics products and services Industry convergence creating opportunities for new business models and revenue streams Empowered customers driving demand for new and innovative products and services IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 3
  • 4. The complexities and challenges of today’s economic environment require new vision and new rules for supply chain*. See what others don’t Visibility Volatility Know the customer as well as yourself Value Exploit global efficiencies * IBM Institute of Business Value - Supply Chain Study IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence 4 © Copyright IBM Corporation 2013 • All rights reserved Page - 4
  • 5. Visionaries and planners are investing to build strategic, smarter supply chain capabilities – Analytics plays key role IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 5
  • 6. New Rule for a New Decade #1: Know the customer as well as yourself Predict demand and be in a position to react to demand variability and market volatility with rapid response and allocation of all global resources! IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 6
  • 7. New Rule for a New Decade #2: See what others don’t Collaborate with insight and visibility to events, with suppliers, service providers and customers in an open, action-oriented, environment. IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 7
  • 8. New Rule for a New Decade #3: Exploit global efficiencies Dynamic Optimization! Optimize pipeline inventory, the global network, and cost structures. Create cost-efficient, sustainable practices while hedging risks. IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 8
  • 9. Visionaries enjoy higher ROIC, high inventory turns, and sustained revenue growth performance. IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence 9 © Copyright IBM Corporation 2013 • All rights reserved Page - 9
  • 10. Who are the Visionaries? Globally recognized Leaders in Industrial Supply Chain Management IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 10
  • 11. and there is more – the REAL revolution in supply chain will be a…….#1 The Software Defined Supply Chain? IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence 11 © Copyright IBM Corporation 2013 • All rights reserved Page - 11
  • 12. 1 2 The software defined supply chain will radically change the way we will design supply chains. Traditional Manufacturing 3D Manufacturing Centralized Manufacturing Local/Distributed Manufacturing Complex Inbound Logistics “Last Mile” Inbound Logistics Complex Outbound Logistics “Last Mile” Outbound Logistics Significant Logistical Lead Times Near Zero Logistical Lead Times Significant Transportation Costs Minimal Transportation Costs Complex Tax & Transfer Pricing Local Tax & No Transfer Pricing IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence 12 © Copyright IBM Corporation 2013 • All rights reserved Page - 12
  • 13. FULL REPORT & MODEL NOW AVAILABLE ONLINE AND ON YOUR MOBILE DEVICE IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 13
  • 14. and #2….. The Internet of Things…has not yet taken off with consumers or enterprises….but it will…. Proportion of Heavy Industrial Equipment That Is Networked 30% Proportion of Smart TVs being used for Internet Viewing 10% Icons from the Noun Project, creative commons license. Data from IBM research as of 2013. IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence 14 © Copyright IBM Corporation 2013 • All rights reserved Page - 14
  • 15. …analytics enabled In Summary A Smarter Supply Chain is… IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved …connected and integrated towards E2E visibility …globally integrated …supporting a software defined supply chain design …recognizing the power of the Internet of Things Page - 15
  • 16. This presentation covers 3 topics 1 Latest Trends in Electronics Supply Chains 2 Role of Analytics in Supply Chain IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved 3 How to get Started with Analytics Page - 16
  • 17. “In God we trust, all others must bring data.” W. Edwards Deming IBM17 Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 17
  • 18. To address the challenges of Volatility, Visibility and Value, Supply Chain Officers of Electronics companies must answer these questions Can I make a tax optimized supply chain? Can I build what if scenarios to assist decisions? Can I predict which part or system is about to fail? How do I manage risks and disruptions in a globalized supply chain? How can better financial and demand forecasting improve the performance of my business? How do I ensure that inventory is maintained at optimal levels? IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence 18 © Copyright IBM Corporation 2013 • All rights reserved ? How can I reduce warranty costs by optimizing reverse logistics? How can I improve visibility into the overall supply chain? Page - 18
  • 19. Analytics can help companies gain visibility, control volatility and create value. Customer Collaboration Pervasive Visibility Decision-support to automate supply chain transactions Multi-partner collaborative platform Sense-and-respond demand & supply signal notification Smart devices & sensors (RFID) to capture real-time visibility Simulation models of customer behavior Cost to serve models and analysis Networked S&OP Customer collaboration throughout all SC processes Embedded software & analytics for automated product defect and service alerts IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Networked Risk Management Risk adjusted inventory optimization Probability-based risk assessment & predictive analysis Compliance strategies & policies with suppliers, service providers, contract manufacturers Page - 19
  • 20. Analytics and Optimization provides value across the key supply chain processes. Plan Source Make Deliver Return Demand Forecasting 2-5% manufacturing costs saving 10-30% inventory cost Multi-echelon Inventory Optimization reduction 5-15% supply chain cost reduction ~30% channel inventory reduction Supply Chain Visibility 25% procurement spend reduction Procurement Spend Optimization 10-15% Improved warranty and repair order fulfillment, reduced spares inventory, and warranty costs Reverse Logistics Optimization Supply Chain Network 5-15% supply chain costs saving Optimization IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 20
  • 21. IBM Client Case Study What if… You could optimize inventory levels and reduce the risk of customer demand variations? Supply Chain Disruption Inability to optimize inventory due to customer demand / channel variability which eroded sales and increase costs Solution Implemented analytics-driven solution that systematically tracks product movement and launches promotional campaigns based on product stock level, availability and current demand forecasts Analytics Benefits Improved client’s risk posture, including the ability to optimize inventory, react to demand trends and increase revenue IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 21
  • 22. IBM Client Case Study What if… You could account for constraints when forecasting sales? Supply Chain Disruption Market instability and resultant supply chain network instability lead to customer dissatisfaction with unmet delivery obligations Solution – Dynamic Inventory Planning Implemented a predictive, advanced inventory-control system that enables dynamic inventory planning, a “what-if” analyzer and inventory forecasts across distributor locations Analytics Benefits Profile and target customers based on buying trends, coupled with a logic-based promotion module, Launch product-specific promotions and replenish inventory according to actual demand streams IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 22
  • 23. IBM Client Case Study What if… You could identify failure problems before they occurred? Supply Chain Disruption Equipment downtime Solution – Predictive asset optimization Analytics solution to predict failure patterns and identify root cause of the problem while determining the reliability of every asset at any point in the future. Inspections and maintenance can be performed at the optimal and most cost-effective moment Analytics Benefits Eliminates undue maintenance, prevention of costly downtime / repairs and reduction in MRO inventory carrying costs. Saved $1 million in two weeks and 1400% return on investment in just four months IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 23
  • 24. IBM Client Case Study What if… You could optimize your supply chain while reducing energy consumption? Supply Chain Disruption Determine the financial and environmental impact of changes to any element within that supply chain Solution – Supply Chain Scenario Modeler Analytics solution with four predictive analytic models all driving a fifth engine showing actual profit & loss impact to create supply chain optimization with reduction in carbon footprint Analytics Benefits Link operational decisions to board room view (P&L impact estimation) Integrated key supply chain planning areas in one model (inventory, network, routing) $100 million in working capital savings IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 24
  • 25. Global LCD Manufacturer IBM Client Case Study Reduced manufacturing lead time, inventory and improved delivery commitment using GiView while significantly reducing IT costs and building a total business system Integrated five-layered SOA based GiView solution was designed and delivered over seven phases to efficiently manage flexible and agile production planning and delivery commit Global PC Supplier Planning cycle time and accuracy were improved and coordination across multiple plants was achieved. ILOG Plant Power Ops (PPO) was used to coordinate production plans across different sites producing finished and semi-finished goods, improve the production planning process, cut down planning cycle time significantly A Fortune 500 Internet Portal company Realized 1.08M USD in savings through efficient management of mobile devices and wireless expenses optimization Used Emptoris Telecom Expense Management solution for wireless devices with implementation of a multitude of wireless managed services including end user wireless portal, wireless optimization projects, help desk to give ROI in under a year. International rate plan optimization reduced call cost per min by 50% even as there was a 33% increase in international minutes IBM25 Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 25
  • 26. Telco improves business insight into huge volumes of data with IBM InfoSphere Streams Need • A solution to perform efficient, near-real-time analytics in order to help drive more meaningful decision making. Sprint wanted to gain strategic insight into the needs of its customers. Benefits • Increased transaction capacity by 90 percent • Enabled informed, near-real-time strategic decision making • Created cost savings through consolidation of legacy solutions IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 26
  • 27. Telco scales data management success with PureData System for Analytics Need • Provide longer retention and more meaningful results for click stream data Benefits • Reduce tax and call-routing fees by using the data stored to defend against false claims • Acquire dropped-call and churn-reduction analysis capabilities • Increase network availability by identifying and fixing any network “holes” • Storage capacity increased from 100 TB to 2 PB IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved 27 Page - 27
  • 28. Manufacturer improves analysis of petabytes of data to optimize capital investments Need • Model the weather to optimize placement of turbines, maximizing power generation and longevity Benefits • Reduce time required to identify placement of turbine from weeks to hours • Reduces IT footprint and costs, and decreases energy consumption by 40 % -- while increasing computational power • Incorporate 2.5 PB of structured and semi-structured information flows. Data volume expected to grow to 6 PB IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved 28 Page - 28
  • 29. Analytics in Service Supply Chain: GE takes holistic view towards its install base and the role of predictive analytics towards GE‘s buttom line. At GE, the biggest part of our company is our installed base – the machines. Embedding them with more sensors and having the ability to do analytics allows us to get more out of the products. We can offer -as a service -- not just real time data but real time knowledge. We can drive efficiency. For a long time our service approach was “break-fix.” It was successful model, but not sustainable. Today customers don’t want their products to break; they can’t wait for the fix, nor can they afford to. They don’t want any unplanned downtime or outages. . They want guaranteed outcomes Jeff Immelt, CEO GE, June 19, 2013 IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 201329 All rights reserved • Page - 29
  • 30. This presentation covers 3 topics 1 Latest Trends in Electronics Supply Chains 2 Role of Analytics in Supply Chain IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved 3 How to get Started with Analytics Page - 30
  • 31. The Supply Chain Analytics journey can start with a Business Value Accelerator followed by a recommended pilot strategy and deployment. Assess Design and Specify Build and Analyze Recommend Next Steps Phase 1: BVA Focus Inventory Optimization Demand Forecasting Procurement Spend Optimization Reverse Logistics Optimization Supply Chain Visibility Supply Chain Network Optimization IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Phase 2: Pilot Phase 2: Pilot Conduct Solution Impact Assessment Design and Build Pilots Phase 3: Deploy Prepare rollout plans Training and Deployment Page - 31
  • 32. IBM’s supply chain Business Value Accelerator (BVA) helps define a winning strategy and supply chain implementation roadmap for electronics clients How To Get Started Our BVA offers the following features: Current state assessment in supply chain analytics and target state vision Target state solution design Build prototype for key functions and analytical modeling using your data Develop high level business case Benefits Gain data-enhanced insights – delivered rapidly with a minimal investment to start, Get a fresh perspective – opportunity to leverage IBM’s architecting and analytical capability and market-leading insight, Explore potential opportunities – open doors to opportunities to deliver significant value and competitive advantage in your business. Report back with findings and insights, next steps Potential Follow-on Activities Pilot / Rollout Targeted SCM analytics projects Analytics Center of Excellence IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 32
  • 33. Once we agree on a key focus area, we will deliver results and recommenddations within 6-10 weeks in a BVA engagement 1 3 2 Assess o Current state assessment based on existing landscape, capabilities. Identify key pain points (example manual CPFR), impacted metrics like forecast accuracy o Target state supply chain vision o Identify key supply chain opportunities 4 Design & Specify Build & Analyze Recommend o Design solution framework aligned to target state vision o Build prototype of key functions in identified SCM process(es) o Understand your existing data models in target supply chain process(es), value drivers and how data is currently used (Exploratory Data Analysis) o Prepare models and run models using tools and methods agreed o Analytics design and approach o Prepare proof of concept findings and report o Develop estimate and quantify SCM benefit opportunity o Compose final report summarizing analysis results and recommendations o Create pilot implementation plan and resource schedule o High level costs and business case o Final presentation to stakeholders o Determine next steps Outputs: Stage • Assessment Scores 2. Design • Prototypes or Proof of Concept 3. Analysis Week 3-4 Week 4-8 Week 9 - 10 1. Assess • Exploratory Data Analysis Week 1-2 • Proposed SCM Roadmap Receive data Test prototype and analytical models 4. Recommendations IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 33
  • 34. This presentation covered 3 topics 1 Latest Trends in Electronics Supply Chains 2 Role of Analytics in Supply Chain IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved 3 How to get Started with Analytics Page - 34
  • 35. "I'd like you to think of big data as the next natural resource” 2013, IBM CEO Ginni Rometty IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 35
  • 36. Let’s Stay In Touch ’ thorsten.schroeer@de.ibm.com www.linkedin.com/pub/thorsten-schroeer/2/b40/a77 www.xing.com/profile/Thorsten_Schroeer IBM Electronics www.ibm.com/electronics IBM Confidential and Proprietary – Thorsten Schroeer for the Electronics Centre of Competence © Copyright IBM Corporation 2013 • All rights reserved Page - 36

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