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Speed as the innovator in the supply chain
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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/ …

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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Transcript

  • 1. Know Sooner. Act Faster. C.J. Wehlage Vice President, High Tech Solutions
  • 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. Know Sooner, Act Faster 3 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  • 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. “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. “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. “ ….Act Faster” Information isn’t Power… Informative Decisions is Power! 7 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  • 8. “ ….Act Faster” Information isn’t Power… Informative Decisions is Power! 8 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  • 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. Common Supply Chain Network Supply Demand Decisions Marketing Finance Sales 10 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  • 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. 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. I Feel the Need….. The Need for…. 13 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  • 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. Personalized Attention to Customers Two Things are pushing Supply Chain Transformation Plan Deliver 15 Copyright © 2013 Kinaxis Inc. All Rights Reserved. Buy Make
  • 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. 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. 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. 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. The New Paradigm – Control Tower Supply Demand Decisions Marketing Finance Sales 20 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  • 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. 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 Copyright © 2013 Kinaxis Inc. All Rights Reserved.
  • 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. 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. 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. Know Sooner. Act Faster. Q&A