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Optimize cost through sas supply chain optimization
 

Optimize cost through sas supply chain optimization

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As global pioneer in this space for past 37 years, SAS work with Industry Leaders to ensure long term business value through Advance Analytics, thereby enabling businesses to time critical decisions ...

As global pioneer in this space for past 37 years, SAS work with Industry Leaders to ensure long term business value through Advance Analytics, thereby enabling businesses to time critical decisions and ensure profit maximization.

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    Optimize cost through sas supply chain optimization Optimize cost through sas supply chain optimization Presentation Transcript

    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. www.SAS.com MINIMIZE NET COST REALIZATION (NCR) THROUGH SAS SUPPLY CHAIN OPTIMIZATION 11 September 2013 punit.santani@sas.com +91 98802 67105
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. ADVANCED ANALYTICS FOR CEMENT ABOUT SAS Best Places to Work For in India Customer Retention (Renewals) On the Fortune 100 Best Places to Work in America Installations and clients R&D investment Customers in India Of the top 100 companies on the 2009 FORTUNE Global 500® list are SAS customers Employees World’s largest privately held software company Years of experience focused on ‘Business Analytics’
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. SOME OF OUR VALUED CUSTOMERS ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. JAYPEE – CASE DETAIL  “SAS/OR allows us to incorporate a multitude of variables into our analysis”  “Now, faster than ever, we can determine the best combinations of mode and route to ship our products. The net ROI is huge – it’s automated decision making in real time.”  “SAS provided tremendous visibility into our transportation costs and enabled us to analyze and segregate profitable routes from non-profitable ones,” Mr. R.B. Singh ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. CEMEX Challenge Solution Benefits Increased market share Premium prices for a commodity product 35% increase in truck productivity Substantial stock appreciation Cement is highly perishable. It begins to set as soon as a truck is loaded, and the producer has limited time to get it to its destination. Traffic, weather, and an unpredictable labor market in developing nations make it incredibly hard to plan deliveries accurately. Predictive analytics enables CEMEX to guarantee delivery in a 20 minute window a huge competitive edge. ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. ASSOCIATED PAN MALAYSIA CEMENT SDN BHD; MALAYSIA : Challenge Solution Benefits Minimized costs and increased customer service efficiency Plan and execute cement distribution and supply link with optimised cost on multi-mode mechanism and routes Large manufacturing and distribution operations were dependent on experience of key people from logistics department. As the business operations kept on expanding ; new modes of transport and route were increasing cost pressure and contribution margin therein. SAS offered scalable network planning and optimization solution focused to the need of cement industry ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. DATA-DRIVEN DECISIONS Logistics network optimization Meet more demand profitably Re-optimize to react to events, disruptions, new developments Optimal source and route to meet new demand request Understand cost of day-to-day decisions & what-if analysis Inbound optimization for plants Capture data on exception handling for better operations ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. VALUE PROPOSITION DELIVERED TO SAS CUSTOMERS 0 50000 100000 150000 200000 250000 CHATTISGARH GUJARAT GOA JHARKHAND WEST BENGAL PONDICHERRY ORISSA KARNATAKA ANDHRA PRADESH MAHARASHTRA KERALA TAMIL NADU PPC OPC Optimized Demand planning and fulfillment Optimized Expenses and maximizing Contribution Gross Contribution Production Cost Transportation Cost Handling Cost Excise Duty Revenue What-if: Sitapuram plant’s production costs are reduced Result: • Increased plant utilization at Sitapuram • New Districts becoming profitable • Increase in Gross Contribution Optimized Plant Utilization ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. SUPPLY CHAIN OPTIMIZATION – PROCESS FLOW Access input data Optimize logistics network Freeze monthly plan after manual adjustments Manual adjustments to change route Communicate implications Save scenario and justifying comments New demand Recommend optimal source and route Manual adjustments Unexpected developments Re-optimize, with some decisions fixed as earlier Manual adjustments ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. DATA EXPLORATION AND VISUALIZATION Elevating data to be managed as a core business information asset Implement an information management approach that results in competitive differentiation Leverage analytics to effectively manage information management and key IT processes Increase gross margin by tracking and monitoring expenses. Perform Ad-hoc Analysis on the fly for informed daily operational decisions. Increase inventory turns - Get the right products to the right market at the right times. Why? How? ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. SAS VISUAL ANALYTICS Transportation Cost Analysis – By Route Contribution Analysis – By District Self Service Analytics – e.g. Demand Forecast ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. WHY SAS VISUAL ANALYTICS? SAS Visual Analytics empowers organizations to: • Analysis on the Go with SAS Mobile BI • Visually explore data – easily and quickly • Uncover new relationships buried in data that were not previously known • Leverage forecasting capabilities for preliminary analysis of ‘what might happen’ • Design interactive web based reports ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. WHY SAS®?
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. WHY SAS? Established Credentials • Jaypee Group cements: Better margins through improved logistics using SAS: http://www.sas.com/success/jaypee.html • Cemex: 35% increase in truck productivity, Increased market share and Premium prices for a commodity product. • Bunge: "Logistical costs in commodities are one of the leading factors determining competitiveness. Using SAS it became easier to reduce the company's costs.“ Luis Fernando Neves, Agribusiness Planning. ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. SAS ADVANTAGE – ADVANCED ANALYTICS ADVANCED ANALYTICS FOR CEMENT
    • Copyr ight © 2012, SAS Institute Inc. All rights reser ved. www.SAS.com THANK YOU punit.santani@sas.com +91 98802 67105