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Algorhythm supply chain overview v2.1

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Algorhythm is an innovative Supply Chain Products and Solutions company based out of Pune, India. We offer Comprehensive, End-to-end Supply Chain Planning & Execution Solutions for Industry Sectors like FMCG, Pharma, Steel, Auto, Telecom etc. through our proprietary suite of Products called rhythm. These are powered by a proprietary, Cloud-Native Rapid Application Development (RAD) Platform (AppliFire®) which gives our products and solutions world class quality and a distinctive technological and functional cutting edge.We have worked with several Fortune 500 companies over the years, delivering creative solutions to help them address their business challenges effectively.

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Algorhythm supply chain overview v2.1

  1. 1. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Intelligent Supply Chains Rapidly Delivered Agile and Lean
  2. 2. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Meeting Supply Chain Objectives 2 1 2 3 Increase Service Level and Reduce Inventory Reduce Cost Reduce Complexity
  3. 3. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Reduce Cost Meeting Supply Chain Objectives Production Base Far from Market Demand over a Large Geography Sub-Optimal Sourcing High Wastage rhythm Solutions Optimal Manufacturing Footprint through Manufacturing Network Planner Optimal Supply Chain Structure through Distribution Network Planner Optimal Supply Network through Supply Planner Optimal Campaigns & Asset Utilization through Production & Logistics Planners, Minimized Quality Failures through MES Challenges 1 IntelligentSupplyChains 3
  4. 4. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Meeting Supply Chain Objectives Sub-optimal Inventory Norms High Demand Variability Unsynchronized Supply Chain High Production Lead-time rhythm Solutions Optimal Norms through Inventory Planner Increased Demand Accuracy through Demand Planner Synchronized Supply Chain through Supply Planner Reduced Manufacturing Lead- times through Production Planner & MES Challenges 2 Increase Service Level and Reduce Inventory IntelligentSupplyChains 4
  5. 5. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Reduce Complexity Meeting Supply Chain Objectives Complex Supply Chain Network Manual Planning and Execution Low Visibility Low Supply Chain Flexibility Reliability rhythm Solutions Streamlined Network through Manufacturing and Distribution Network Planners Automated end-to-end Supply Chain Planning High Visibility through Long- term Planning systems Flexible Supply Chain Network Design, High Reliability through Improved Planning Systems Challenges 3 IntelligentSupplyChains 5
  6. 6. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India rhythm Solutions - Overview Manufacturing Network Planner Distribution Network Planner Demand Planner S&OP Planner Inventory Planner Supply Planner Route Planner Logistics Planner Production Planner Beat Planner MES & Scheduling ERP Quarterly or Longer Monthly Weekly or Shorter IntelligentSupplyChains 6
  7. 7. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Intelligent Supply Chains Delivered Rapidly Quick Roll Out Configurable Applications, Powered by Rapid Application Development Platform, AppliFire for quick customization and Implementation New Wave Applications Powerful User Interfaces, In-built Mobility, Cloud based, Extremely User Friendly Applications High Performance Unified Data Model, In-Memory Data Grid, Parallel Computing to deliver very high Performance. Best Results Comprehensive, Tested Results Intelligent Apps Quick Roll Out Performance Best Results Unified Data Model In-memory Data Grid Parallel Processing Modern Cloud Based In-built Mobility User Friendly 7
  8. 8. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Manufacturing Network Planner Optimizes Manufacturing Network to find right number, location, role and capacities of factories to minimize costs and maximize Service Levels. Evaluates and compares scenarios. o Optimizes production capabilities of factories, suggests Addition or elimination of factories. Restructures capabilities of the Factories . o Optimal location of all assets to ensure best asset utilization and economies of scale. Efficient capacity utilization through balancing of capacities across processes. o Optimizes Total Landed Costs with linear costs like production, logistics, utility &material costs. as well as non-linear fixed factory costs and depreciation, investment and man-power costs. o Optimizes the product Mix at each Factory based on the Total Landed Cost o Business Risk Modelling – Assess sensitivity of the model against key Drivers o Volume Discounts – Suggests maximum utilization of volume based discounts offered by suppliers. Quarterly or Longer | Monthly | Weekly or Shorter Right Number of Modules for Each Process at each Factory Factory Locations and Capacities Right Linkage of Movement Process 2 Process 1 4 5 3 Right Product Mix at the Factories Right Vendor Location 2 1 o Optimized total Landed Cost o Improved Service Levels o Opportunity & Risk Assessment o Improved Asset Utilization o A Fortune 500 FMCG company optimized its manufacturing footprint in India for the next 10 years based on the true Supply Chain drivers. Its original Supply Chain was heavily influenced by Fiscal benefits. o One of the largest FMCG companies optimized the global production and souring of its biggest category to optimize the total landed cost to the customer. Components 8
  9. 9. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Distribution Network Planner Optimizes Distribution Network to find right number, location and capacities of warehouses to minimize costs and maximize Service Levels. Finds Supply Chain structure and echelons. o Optimal network design with right number of echelons (central and regional warehouses) in the distribution network o Suggests best number and location of warehouses based on the trade-off between freight costs & fixed costs of warehouses o Finds best linkage from factory to customer. Selects the linkage based on mode wise cost and volume discounts o Reduction in inventory by making a full truck direct shipments. Creates a Network to meet the Service Level Requirements o Accounts for linear costs like handling, freight costs etc. and non- linear costs like warehouse rent, manpower costs. o Simulation to test sensitivity of key drivers like Taxes, Demand, lead time, transportation modes, New Routes, Fixed Costs etc. o Evaluates and compares multiple business scenarios. Quarterly or Longer | Monthly | Weekly or Shorter o A Fortune 500 FMCG company optimized its Distribution Network in India for the next 5 years and evaluated the impact of GST on Service Levels and Distribution Costs. o One of the largest FMCG companies in India optimized location of its Warehouses and distributors and transportation mode on each lane. Right Product Mix in each Mode of Transportation Right Linkage of Movement - Right Source of Supply; Via CDC vs. Direct Movement 2 Right Modes of Dispatch on each Lane. Maximized Consolidation 3 4 o Timely Deliveries o High Service Level o Minimum Transportation Cost Right Inventory and Service Levels for Each Product at each Location 5 1 Product Mix Constraint at Each Factory Lead-time Constraints from the Customers6 Components 9
  10. 10. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Inventory Planner Finds relationship between stock and Service Level based on various parameters. Optimizes Inventory across locations and products to deploy inventory at the right locations. o Stock top Service Curve - Generates unique Stock to Service Curve for each product at each location based on Demand Variability, Lead-time, Review Period, Lead-time Variability, Supply Compliance, Production and Distribution Lot-sizes etc. o Multi-Echelon Inventory Optimization - Optimizes Inventory across multiple echelons and identifies the right echelon for inventory deployment for each product. o Multi-Product Inventory Optimization - Sets right service level for each Product at each location to meet the overall Service requirement. Apportions the inventory budget in an optimal manner. Automatically sets lower service targets for high volatile items. o Optimizes the form in which the Inventory needs to be maintained (FG, Intermediate, RM and PM). o Simulations to identify right production lot-size, distribution frequency, Hub-spoke model, segmentation strategy etc. Quarterly or Longer | Monthly | Weekly or Shorter o Indian arm of a Large CPG improved its service levels by 5% and reduced Inventory by over 9% using the Inventory Planner. Optimized InventoryCurrent Inventory Safety Stock at Depots Raw Material Intermediates Pipeline Inventory Cycle Stock at Depots Safety Stock at Depots FG Safety Stock at W/H FG Cycle Stock at W/H Right Stock to Service Curve for all Products at all Locations 1 2 Right Service Levels of each Product at each location to meet the Overall target with minimal Inventory 3 Where? Right Location and Product Form for Inventory Deployment Service Level o Improve Service Level o Reduce Inventory in all forms DaysofInventoryinSupplyChain Raw Material Intermediates FG Cycle Stock at W/H Pipeline Inventory Cycle Stock at Depots Safety Stock at Depots FG Safety Stock at W/H Cycle Stock at Depots Safety Stock at Depots Components 10
  11. 11. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Beat Planner Generates beats of optimal size based on time spent in the market. Assigns salesmen and week- days to the beats created and generates the optimal foot sequence (or route plan) for each beat. o Capture of geo-codes using a mobile app or by dragging, dropping Customer location on Google Map or from Retailer address o Visualize - View all the customers on Google Maps. Compare Existing Manual Plans with optimal Beat Plan. o Optimize based on (a) number of customers or (b) based on the beat value or (c) based on the total time spent in the market. o Group Beats by Week day or by Salesmen. Deal with multiple visit Frequency (F2, F4, F8 or mixed Frequency) o Optimized Salesman Sequence – The salesman’s travelling sequence is optimized within each beat. o Salesman’s Weekly Plan - Weekly calendar for each salesman (which beat should be covered by which salesman on what day) o Manually over-ride the beat plan or salesman sequence Quarterly or Longer | Monthly | Weekly or Shorter o A USD 2 billion Indian Foods company could expand its coverage rapidly in dense Indian Metro cities at minimal extra cost using the beat Optimizer o A very large MNC is expanded its coverage in top Metros and Cities in India by 20% using the beat Planner o One of the largest MNCs selected Algorhythm’s Beat Optimizer for its Thailand Operations and plans to use this for several other markets Geo-tag & Visualize Geo-tag using an App, Retailer Address or by drag / drop Visualize Current Beats and Outlets Interface using Excel or Real-time Connectors Optimize Beat Optimization Optimal Beats Optimal Foot Sequence Optimal Beat Days Objectives Plan Criteria Constraints Road Distance Coverage Extension Analytics Distributor Coverage Analytics Proposed Improvements vs . Current Analyze Components 11
  12. 12. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Demand Planner Creates an unconstrained consensus demand forecast through top down or bottom up approaches and combines with Statistical Forecast. o Multi-Level Forecasting – Enables top-down, bottom-up consensus demand plan. Ability to aggregate and disaggregate demand at any level. Collaborative Forecasting between all the stakeholders o Multiple Statistical Forecasting Techniques to address Seasonality, Trend and Cyclic Behaviour. Selects best technique for each SKU at each Location. Cleanse historical data to remove errors, outliers etc. o Compare actuals, current demand plan, annual plan, previous demand plan versions, statistical forecast, and the previous year’s demand plan in a time-phased graphical view. o Monitor the forecast accuracy for all forecasts. Measure the accuracy of forecasts with any number of available methods (Volume Error, MAE/Mean, Bias (MPE), etc.) o Adjust or override the calculated demand plan for specific forecast items in specific date ranges o Indian Arm of one of a Large Packaged Food Manufacturer used Demand Planner to expedite the Planning Cycle and Improve monthly forecast through consensus based forecasting. o A Large Telecom company managed their Long-term, Mid-term and Short- term demand through collaboration on Demand Planner. Data Pre-processing Easy Demand Manipulation Configurable Workflows Consensus Forecasting Multiple Demand Versions Historical Demand Unconstrained Demand Plan Primary Sales Forecast DRP S&OP Quarterly or Longer | Monthly | Weekly or Shorter Components 12
  13. 13. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India S&OP Planner Centralised collaboration between cross functional teams to Balance Supply & Demand, Maximise Profits and Quantify Risks. o Meet Organisational Goals – Set Targets for Inventory, Revenue, Utilization, Margins and Service. Measure performance against each of these targets o Balance Demand and Supply – Balance by changing (a) the forecast demand or (b) Inventory Norms or (c) Demand Priorities etc. to match Demand and Supply. o Simulate supply-demand balancing scenarios through a drag & drop UI. Evaluate how finance, material and capacity resources can be apportioned optimally to meet Organizational goals. o Create S&OP process calendar, meetings and monitor progress against the plan. Manage performance of S&OP stakeholders. Collaborate on action Items planned in SNOP meetings. o S&OP Dashboards - Visualize current and projected inventor, Revenues, Margins, Service Levels, Asset Utilizations etc. o A Large Steel Company streamlined its S&OP process through regular simulations on S&OP Planner. Large value Rush Order simulations was extensively used to decide delivery dates. o One of one of the largest FMCG companies world-wide used S&OP planner to simulate the right Inventory Levels, Demand plan and Aggregate Supplies. o Faster and reliable planning, reduced planning cycle Increased consensus with actionable plans o Insight into the impact of changes Finance Goals Simulation Supply Plan Balance Demand & Supply Demand Plan Quarterly or Longer | Monthly | Weekly or Shorter Components 13
  14. 14. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Supply Planner Generates constrained daily, weekly or monthly production plan for all factories along with dispatch quantities to all destinations to meet the overall demand on time. o Allocates production to the right factory based on capacity constraints and total landed cost. o Generates daily, weekly or monthly production plan for factories and suppliers based on capacities. o Generates dispatch quantities between source and destination based on demand, lead time, safety stock requirements, etc. o Maximizes Capacity Utilization by optimizing Lot sizes and by optimal line selection, Optimizes Product Sequencing on the lines. o Generates Pre-build Plans ahead of Peak Seasons. o Generates optimum production sequence on lines across to ensure minimum inventory at any location. o Handles Constraints like Min & Max Load on Sites, Changeover and Capacity Constraints, Manpower, RM &PM Constraints etc. o A Large Biscuit Manufacturer in India with over 150 warehouses and 50 factories used Supply Planner and improved Service Levels by over 4%. o Indian arm of a Large CPG company improved its service levels by 5% using the Supply Planner. o A large Beer Manufacturer optimized production plan of over 15 factories using the Supply Planner Right Linkage of Movement - Right Source of Supply for each product to each Market 6 5 Distribution Requirement Plan Material Requirement from Vendors 4 Process 2 Process 1 1Monthly, Weekly and Daily Loading on equipments 2Multi-Process Production Plan for all Factories 3Right Production Sequence o Cost and Profit Maximization o Reduced Production & Distribution Lead-times o Reduced Inventories and Improved Service Levels. Quarterly or Longer | Monthly | Weekly or Shorter Components 14
  15. 15. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Route Planner Optimizes routes to create optimal delivery plan to reduce the delivery cost. Integrated with Google Maps for road distances, traffic constraints and for result visualization o Optimal grouping and allocation of the orders to the right vehicles to ensure that the overall distance travelled is minimized. o Best set of vehicles selected to maximize the vehicle utilization and minimize the number & size of the vehicles required. o Drop Sequence Optimization - Optimized Vehicle Route Sequence based on Google distances to minimize the distance travelled o Vehicle Status Tracking – Ability to track delivery status and Vehicle Location. o Optimized truck loads to ensure minimum number of trucks required. o Considers multiple parameters like vehicle capacity & availability, product attributes, time & distance constraints. Based on Google maps and road distances. Considers all traffic constraints. o Ability to manually over-ride the Route Sequence based on drag & drop; manually over-ride driver assignment to vehicles. o Indian arm of a large CPG company used Route Planner for optimizing deliveries to retailers from Distributor Warehouses to save over 10% of last mile delivery cost. o A large Confectionary manufacturer used Route Planner to optimize deliveries from the depots to its distributors to save around 8% of delivery cost. o Over 20% reduction in Cost of Delivery o Optimized travel distances, Vehicle Loads and reduced Time & Cost of delivery o Visibility of Vehicle Location, Drop Status, Delivery Status etc. Optimal Customer Grouping Optimal Vehicle Loading Optimal Drop Sequence Quarterly or Longer | Monthly | Weekly or Shorter Components 15
  16. 16. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Logistics Planner Generates delivery plan from Factories to the final destination. Ensures timely delivery, Improves Service Levels, Maximizes Vehicle Utilization and minimizes transportation cost. o Multi-level Logistics Planning from Starting Point through Distribution Centres to End-points. Optimization of the network path for each product to each End-point. o Optimization of Modes like Trucks of Various Capacities, Rail, Sea Vessels, Part-load carriers, Air shipment etc. based on freight and volume benefits. o Optimizes Product Mix within vehicles and combines heavy and light products together to maximize vehicle utilization. o Handles Constraints like Product Mix, Loading constraints, Distance/ Time constraints, Vehicle Availability and Route constraints etc. o Source Of Supply Optimization - Selection of the best Source of Supply for products that can be sourced from multiple locations. o Timely delivery – Pro-rata rationing of stocks across customers in case of supply shortage. Prioritization of dispatch based on lead- times and demand dates. o A Large Biscuit Manufacturer in India with over 150 warehouses and over 50 factories used logistics planner to get over 8% savings in the distribution cost. o Indian arm of a Large CPG company improved its service levels by 5% using the Logistics Planner. o A large Manufacturer of Confectionary streamlined its logistics planning and improved service levels by over 5% Right Product Mix in each Truck to maximize Load Right Linkage of Movement - Right Source of Supply; Via CDC vs. Direct Movement 3 Right Modes of Dispatch on each Lane. Maximized Consolidation 4 1 C1 C2 C3 2Fair share of Stock to each Customer each day o Timely Deliveries o High Service Level o Minimum Transportation Cost Quarterly or Longer | Monthly | Weekly or Shorter Components 16
  17. 17. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Production Planner Books Orders on available Capacities across Plants, Processes and Equipments based on Productivity & constraints. Balances capacity across Processes to maximize Asset Utilization. o Generates Promise dates against the requested delivery date based on current Order booking, Enquiry Size and Plant Capacity. o Simulates the Impact of booking Orders on the existing Orders in real-time. Ability to carry out What-If Scenarios. o Ensures that High Priority Orders are done on time. o Generates End-to-end Production plan across processes in one step. Synchronizes and balances capacities across processes and maximizes Asset utilization. Distributes load on multiple equipments optimally based on the equipment capacity and constraints. o Generates production schedule for all the equipments. Optimizes sequence to maximize productivity and ensure timely delivery. o Plan campaigns on multiple equipments based on attributes. o Handles constraints like Routing constraint, changeover constraints on equipments, availability & maintenance constraints. o A large Chemical Manufacturer with 6 integrated factories used Production Planner to resolve complex planning of multi-level BOM manufactured across multiple factories. o An Integrated Manufacturer consisting of multiple Steel Melt Shops, Wire Rod Mill and Downstream plants for Forging, Smelting and Auto- components used Production Planner to optimize its Service Levels o Timely Delivery of Orders (OTIF) o Lower Inventory o High Asset Utilization and OEE o Precise Delivery Commitment Process 2 Process 1 1Optimal Loading on equipments 2Optimal Sequencing on equipments 3Multi-Process Scheduling 4 Delivery Date commitment. Quarterly or Longer | Monthly | Weekly or Shorter Components 17
  18. 18. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Manufacturing Execution System (MES) Tracks production and quality at all stages and gives full visibility of Order and Material Status. Integrates with Level 2 systems and helps in real-time production or quality decisions. Integrates with Plant specific detailed Schedulers o Integrates and downloads schedule and other Parameters to Level 2 (HMI, SCADA etc.). Fetches & validates Actual Production Results (PDO) from Level 2. Manual Production Capturing Option for each process in case of missing Level 2 Systems. o Tracks Genealogy from RM to IM to FG to track the source of defect, identify Area of Improvements and resolve Customer Complaints. o Tracks Inventory, Order Progress Status, Genealogy, Production defects, delays, stoppages, yield and production losses etc. and gives visibility from Shop-floor to Top-floor. o Intelligent auto diversion options to enable optimal shop floor decisions in real time & reduction of free inventory. o Quality Tracking to capture and validate results. Captures comments, specifications, recipes, and procedure documents. Provides real-time trends, statistics, and notifications to control quality levels. o Batch Analysis - Provides Batch analysis of scheduled and completed recipes and generates electronic batch records to help increase the overall quality and consistency of products. o Full Scale Implementation of MES for a 5 million ton Integrated Steel Plant with Steel Melt-shop, plate mill and finishing lines. o MES Implementation for a CRM plant for Special Steel with around 0.5 Million Ton Capacity Production management Generate PDI, send to L2 Receive PDO from L2 Quality Management Manage Genealogy Manage Deviations Batch Analysis Quarterly or Longer | Monthly | Weekly or Shorter Components 18
  19. 19. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Other Key Customers Steel FMCG Pharma Telecom Auto Oil & Gas 19
  20. 20. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India Algorhythm USP 1 Proprietary rhythm Framework & Optimization Engine – Flexibility to deliver built to suit solutions 2 Simplifying Complexities – Easy to use Products / Solutions 3 Quick Turn around time, using AppliFire – Proprietary Rapid Application Development Platform 4 Extensive track record of successfully delivering Strategic & Operational Supply Chain Solutions to Fortune 500 Cos 5 Highly experienced People in Supply Chain Processes - Deep Understanding of Supply Chain Drivers 20
  21. 21. rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India 21 Thank You www.algorhythm.co.in sales@algorhythm.co.in

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