Speed as the innovator in the supply chain

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Read the blog here: https://blog.kinaxis.com/2013/12/speed-true-innovation-supply-chain/

Presentations slides from: “Speed as the Innovator in the Supply Chain”.

C.J. Wehlage, vice-president, high tech solutions, Kinaxis discussed the following themes in his presentation:

- Understanding how the new dynamic of direct customer communication with suppliers is changing the time frames for business processes
- Transforming metrics gathered in real-time into informed decision-making at the right time
- Empowering supply chain executives to drive positive outcomes through improved visibility and communication
- Offering examples from the practitioner’s perspective of accelerating delivery on the fundamentals

Published in: Technology, Business
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Speed as the innovator in the supply chain

  1. 1. Know Sooner. Act Faster. C.J. Wehlage Vice President, High Tech Solutions
  2. 2. Kinaxis Overview • Headquartered in Ottawa, Canada; Global offices in Hong Kong, Tokyo, Netherlands. • Double-digit CAGR, profitable, cash positive • Over 100 Marquis global customers • Up to 7,500 users • Typical >500 Kinaxis Campus …for MANY BUSINESS PROCESSES One Business Solution Single product powers the underlying capabilities essential to balancing supply and demand across the enterprise 2 Copyright © 2013 Kinaxis Inc. All Rights Reserved. • • • • • S&OP Demand Planning Supply Planning MPS Capacity Planning • • • • • Supplier Collaboration Inventory Mgmt Order Promising NPI Integrated Project Mgmt
  3. 3. Know Sooner, Act Faster 3 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  4. 4. “Know Sooner…..” “Know what you know, and know what you don’t know, and surround yourself with people who know what you don’t know” 4 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  5. 5. “Know Sooner…..” “Know what you know, and Know what you don’t know, and surround yourself with people who know what you don’t know” 5 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  6. 6. “Know Sooner…..” What do you know about your end to end supply chain ? “Know what you know, and Know what you don’t know, and surround yourself with people who know what you don’t know” 6 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  7. 7. “ ….Act Faster” Information isn’t Power… Informative Decisions is Power! 7 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  8. 8. “ ….Act Faster” Information isn’t Power… Informative Decisions is Power! 8 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  9. 9. “ ….Act Faster” Information isn’t Power….. Informative Decisions are Power ! Each Node has their own version of the decision 9 Copyright © 2013 Kinaxis Inc. All Rights Reserved. Collaborative decisions are made, but… Nodes fail to put into their execution system
  10. 10. Common Supply Chain Network Supply Demand Decisions Marketing Finance Sales 10 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  11. 11. Common Supply Chain Network Supply “If you ask a functional question to a myriad of functional systems, you will get a collection of Demand functional results” Decisions Marketing Finance Sales 11 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  12. 12. History shows us that Functional focus hasn’t produced innovative results Reacting to our environment Reduce Cost 12 Copyright © 2013 Kinaxis Inc. All Rights Reserved. Improve Efficiency
  13. 13. I Feel the Need….. The Need for…. 13 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  14. 14. Why Speed, Why Now…. 2 Inspirations • Business @ the Speed of Thought : • “How you gather, manage, and use information will determine whether you win or lose.” – Bill Gates • Digital Nervous System • Thanks to technology, the speed of business is accelerating at an ever-increasing rate….”, mostly by consumers! • Diapers! 14 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  15. 15. Personalized Attention to Customers Two Things are pushing Supply Chain Transformation Plan Deliver 15 Copyright © 2013 Kinaxis Inc. All Rights Reserved. Buy Make
  16. 16. Personalized Attention to Customers Two Things are pushing Supply Chain Transformation Online Consumer Different Inventory models New/Unique Spend Mgmt policies Transparent Price models Entitled Fulfillment needs Plan Buy Consumer Behavior Influence patterns are different Assurance from the Group New Purchase decision process Availability & Entitlement needs Much deeper Segmentations Deliver Make 16 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  17. 17. The Value proposition of this fundamental shift Current Issues Desired Outcomes • Current supply chains operate under the traditional Plan, Buy, Make, Deliver model, managing consumers with Forecasting & Demand Planning solutions. Yet, individual Consumers today have significant leverage on supply chains. • Ability to put structure in consumer data • Establish supply chain models to respond to segment types, and ability to change models rapidly • Capability to respond to online transparency • Much deeper segmentation is required to understand and manage “Consume”, as too much cash is being spent on non profitable customers • “Consume” nodes are not only driven by different patterns, they are Adverse to Brand claims. • Today’s Supply Chain KPI’s are not only need to be adjusted, some are driving negative results to the “Consume” nodes. 17 Copyright © 2013 Kinaxis Inc. All Rights Reserved. • A model to calculate which segments create the most value • Ability to shift Cost to Serve from lower segments to higher profitable segments • Financial plans for segments – expect more (revenue, cost, market share) from these segments. • Higher level of dialog with key segments • Collect, understand, and influence the purchase patterns – especially online • Get ahead of the ‘groups’ to provide assurances • Have entitlements – digital products ? • Measurement on time phased profitability, customer loyalty, influence weighting, spend ratio’s • KPI’s driving the various customer segments 17
  18. 18. The Value proposition of this fundamental shift Current Issues Desired Outcomes • Current supply chains operate under the traditional Plan, Buy, Make, Deliver model, managing consumers with Forecasting & Demand Planning solutions. Yet, individual Consumers today have significant leverage on supply chains. • Ability to put structure in consumer data • Establish supply chain models to respond to segment types, and ability to change models rapidly • Capability to respond to online transparency • Much deeper segmentation is required to understand and manage “Consume”, as too much cash is being spent on non profitable customers • “Consume” nodes are not only driven by different patterns, they are Adverse to Brand claims. • Today’s Supply Chain KPI’s are not only need to be adjusted, some are driving negative results to the “Consume” nodes. 18 Copyright © 2013 Kinaxis Inc. All Rights Reserved. • A model to calculate which segments create the most value • Ability to shift Cost to Serve from lower segments to higher profitable segments • Financial plans for segments – expect more (revenue, cost, market share) from these segments. • Higher level of dialog with key segments • Collect, understand, and influence the purchase patterns – especially online • Get ahead of the ‘groups’ to provide assurances • Have entitlements – digital products ? • Measurement on time phased profitability, customer loyalty, influence weighting, spend ratio’s • KPI’s driving the various customer segments 18
  19. 19. 3 Characteristics of a Supply Chain with great velocity • Thorough Planning • Optimized and constrained view • Aligned to business plan • Asking end to end questions • Visibility • Not just end to end data • Alerts, Versions, Decisions • What If Playbooks • Understand the impact • Simulate alternatives 19 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  20. 20. The New Paradigm – Control Tower Supply Demand Decisions Marketing Finance Sales 20 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  21. 21. The New Paradigm – Control Tower The Outcome: • Global Visibility, Agility, and Alignment • End-to-End Process Enablement Supply Demand Decisions Marketing Finance Sales 21 Copyright © 2013 Kinaxis Inc. All Rights Reserved. • Fast and Accurate Decisions
  22. 22. A Control Tower… • is a capability, supported by software • unifies information and operational KPI’s in one place • unifies and binds cross-functional process in one place • is the what-if simulation hub for end to end planning “ERP is great if you only need to talk to yourself. But who can afford to do that in today’s world?” - Jim Cafone, Pfizer, Gartner SCM Conference, 2012 22 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  23. 23. 23 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  24. 24. Concurrent Planning Across Functions Consequence Evaluation & Alerting • Multi-Site, Multi-Enterprise integrated • Always-on assessment of change impact • S&OP, capacity, inventory, financial • Intelligent alert/message routing • Unify horizontal and vertical silos • Measure change in business conditions and outcomes simultaneously • Global process, supporting local context • Support full spectrum maturity models • Single data point granularity, or aggregate • Business Activity Monitoring 2.0 What-if Analysis & Scenario Comparison • Provide deep multi-enterprise ERP agnostic supply-chain aware analytics • Simulate anything in seconds • Measure and compare any number of scenarios • Progressive drilling to root cause/bottleneck • Predictive Analytics 2.0 24 Copyright © 2013 Kinaxis Inc. All Rights Reserved. Responsibility-Based Collaboration • Automatic team selection for problem solving • Simultaneously measure impact of human judgment on business and other people • Cross-functional alignment and consensus • Scenario voting, comment, assumption capture • Full audit trail of changes • Complex Event Processing 2.0
  25. 25. Increased Inventory Productivity Reduction of Big Order Commit Reduction in Expedite Orders 34% 82% 83% Our Customers See Results On-Time Delivery S&OP Cycle Time Reduction 98% 43% 25 Copyright © 2013 Kinaxis Inc. All Rights Reserved. Shortage Systems Eliminated 4
  26. 26. Closing Thoughts…. eBook C.J. Wehlage cwehlage@kinaxis.com 858-774-0915 @cjwehlage www.linkedin.com/in/charleswehlage 26 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  27. 27. Know Sooner. Act Faster. Q&A

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