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Tata Steel 1Slide
Dynamics of Trans-European Supply Chain
1
Amarendra Kumar Gorai
Tata Steel
https://www.linkedin.com/in/amarendra-gorai-57444623/
Tata Steel 2Slide
Tata Group – a global conglomerate with revenues of US$100+ bn 2
Tata Steel 3Slide
Tata Steel – global operations and commercial presence
3
Western
Europe
Steel making operations
Distribution and
downstream assets
North America
Western
Europe
Scandinavia
CIS
Western
Africa
South
Africa
Latin
America
China
Japan
India
Hong Kong
Sales offices
SE Asia
Key
Turkey
CEE
Tata Steel 4Slide
Extended Trans-European Supply Chain challenges system integration 4
French
Downstream
Asset
UK Manufacturing Hub
UK Port
French port
Spanish port
French barge
Haulier Transport
Spanish
Downstream
Asset
Further
processing and
supply to end
customer
Further
processing and
supply to end
customer
New order placement / stock replenishment
New order placement / stock replenishment
Coil Stock
Coil Stock
Tata Steel 5Slide
TSE Vision for Digital Enterprise and AI Adoption in Supply Chain 5
Base Layer
(Disparate Process + Multiple ERPs)
Data Integration and
Visualization
(Single Source of truth)
Automation
(RPA & ERP
enhancements)
Big data
Analytics
AI
Predictive
Intelligent
Smart
Real Time Digital
Steel Enterprise
• Dark/Hidden Spot using NLP/
Machine Learning / Deep learning
• Collusive behavior / Process
consistency
• Intelligent Command Centre
• Uses Cognitive using external
factors of weather, natural
disasters
• Analytics model
• Process Modelling
• Leverage Big data
• Influence Business
Outcomes
• Order Entry Automation /RPA
• Order Complexity /MTA &
MTO
• Critical trigger for Order to
delivery
• Data arching layer interface
to ERPs
• Unified view and dashboard
of Steel
• single data model and
single user interface
• Multiple and Disparate
systems
• Data and ERP Fragmentation
• Low Process Maturity
• Steel Industry
Characterization
Unified view and
visibility into steel
availability
Cognitive
Enhanced End
Customer
Experience
Predictable Operations
Intelligent Delivery
consistency
Real Time Visibility
No visibility to
steel availability,
Not sure of
Timely Order
delivery
Drive Analytics for
Inventory
Process modelling
Seamless Delivery
Cater to dynamic
order pattern and
consumption
behavior
Tata Steel 6Slide
RAPID – Tata Steel’s Stock integration platform across disparate MRP landscape
• Automatic periodic run to provide a refreshed and updated
view of the end stock
• Presents a visual tool by extracting relevant data from
disparate manufacturing systems and SAP
• Aids stock replenishment by providing a visibility of current
stock and end-consumption
Tata Steel 7Slide
However, with numerous SKUs, traditional order entry process poses a
challenge
7
Creation of Purchase orders on SAPCreation of Purchase orders on SAP
Customer Purchase OrderCustomer Purchase Order
Staging FileStaging File
SAP Order Entry FileSAP Order Entry File
Order AcknowledgementOrder Acknowledgement
OCR Process
Conversion to structured data
Manual typing of orders (15mins-20mins)
Successful order creation manually
Slow
process
Slow
process
Prone to
human
errors, often
leading to
undesired
production
Prone to
human
errors, often
leading to
undesired
production
Repetitive activity
is not always
considered job
enrichment
Repetitive activity
is not always
considered job
enrichment
Tata Steel 8Slide
Robotic Process Automation at work - TCS Zeus for order entry 8
• Entirely mimics human behaviour by automatically typing all
fields onto SAP and submitting the order
• Intelligent to determine appropriate order quantity based on
Minimum Order Quantity (MOQ) restrictions on SAP and goes
for the closest match
• On encountering any error, Zeus enters the error into a log and
moves ahead to complete other order entries
Zeus Recorded Demo
Tata Steel 9Slide
Zeus Benefits 9
• No change in working of the core applications like
SAP. Zeus acts like a human that only interacts
with SAP
• Intelligently designed to take judgements on
particular conditions like coil weight and week
when capacity is available to place order
• Handles errors well by recording them into a log
and progressing to other orders
Tata Steel 10Slide
Big data storage and capture through RAPID system 1
0
Order Fulfilment Suite
Health of stock measurementOrder progress through manufacturing hub
Tata Steel 11Slide
Big data analysis and actionable insights – stock out and overstock prediction1
1
Future stock health prediction
Stock
out
Low
stock
Adequate
stock
Over
stock
Marginally
High stock
+8 weeks stock prediction
Tata Steel 12Slide
Big data analysis and actionable insights – customer consumption behaviour1
2
Enhanced customer
centricity through joint
collaboration with
downstream units and
customers to drive
improved service
performance / optimized
inventory across the value
chain
Stock consumption analysis and insights
Daily customer
consumption
Smart inventory
management?
Tata Steel 13Slide
The Future: Machine learning and cognitive intelligence – Predicting
Variabilities to Planned Exit Date and Planned Delivery Date
1
3
Customer Order Planned Exit Date Planned Delivery Date
Common cause
plant variability
Changing customer
priorities
Special cause
plant variability
Port
Strike
River
Flooding
Snowfall
~ ~ ~ ~ ~ ~
Variability Variability
Tata Steel 14Slide
IgnioTM – A Comprehensive Intelligent Suite for ‘Order to Delivery’ 1
4
Sense
Think
Act
Detect patterns – Customer Order, SKU
footprint, Order exceptions,
Prediction Model – Inventory
Optimization Planned Exit/Adherence to
Delivery
Triage and Recommend – Command
Center, Prediction model evaluation
API and RPA – Order entry automation,
Triggers Planning, Work scheduling /
prioritization model, Gamification
Learn
Cognitive – predictable, touchless,
Intelligent, Machine learning all of which
leading to improved business outcomes
Intelligent & Predictive
delivery for customers
Decipher Insights,
Proactive triggered
actions
Insights to Interception
Improved ‘On Time
Delivery’
Optimized ‘Inventory’
Tata Steel 15Slide
Resolving Planned Exit Date (PED) variance through Ignio – way ahead 1
5
Current tracking - reactive
Future tracking – predictive
Customer name =“Renault”; product ordered = “sheet metal”, Order month
=November; PED accuracy =90%
Customer name
=“Renault”
Product =“sheet
metal”
Product =“rolled
steel”
Order Month
=“November”
Order Month
=“january”
PED accuracy=“90%”
Tata Steel 16Slide
What the future holds – real time prediction of Over/understock intelligently1
6
*Tata Steel presently uses its enhanced in-house RAPID system capabilities to predict overstock /
understock
Tata Steel 17Slide
What the future holds - predicting Overstock/Understock intelligently 1
7
~ 50 K Ton new Orders every
week
2Hub &
8 Downstream
4 Production
Strategies
50 +
Warehouses
5
Customer
Streams400 K Ton Avg Stock
managed at any given point
32 diff activities performed to
keep the stock moving daily
2200 + Stocked Unit
Excessive Stock built (~3x of
avg requirement) post migration
into new platform
High dwell of SKUs in Over-stock
and Out-of-stock - >21 Days
against a tolerance of 7 Days
Re-active approach – distressed SKUs
~ 17% against tolerance of 5%
Successful POCwith proven
measures
3 Week ahead
Preventive recommendations
> 2Mn GBP potential
BVA
D
C
O
E
Order
Entry
Decoupling
Point
Notional
Slab
Hot Roll
Pickling
Cold Roll
Annealing
Quality
Check
Packaging
Stock
Transfer
Galvanizing
Tata Steel 18Slide
1
8
The future world of AI and cognitive systems….
Customer Order Planned Exit Date Planned Delivery Date
Common cause
plant variability
Changing customer
priorities
Special cause
plant variability
Port
Strike
River
Flooding
Snowfall
~ ~ ~ ~ ~ ~
Variability Variability
MitigationsandCognitiveLearning
MitigationsandCognitiveLearning
Mitigations and Cognitive Learning
Tata Steel 19Slide
Thank You
1
9

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Robotic Process Automation and Artificial Intelligence in Supply Chain

  • 1. Tata Steel 1Slide Dynamics of Trans-European Supply Chain 1 Amarendra Kumar Gorai Tata Steel https://www.linkedin.com/in/amarendra-gorai-57444623/
  • 2. Tata Steel 2Slide Tata Group – a global conglomerate with revenues of US$100+ bn 2
  • 3. Tata Steel 3Slide Tata Steel – global operations and commercial presence 3 Western Europe Steel making operations Distribution and downstream assets North America Western Europe Scandinavia CIS Western Africa South Africa Latin America China Japan India Hong Kong Sales offices SE Asia Key Turkey CEE
  • 4. Tata Steel 4Slide Extended Trans-European Supply Chain challenges system integration 4 French Downstream Asset UK Manufacturing Hub UK Port French port Spanish port French barge Haulier Transport Spanish Downstream Asset Further processing and supply to end customer Further processing and supply to end customer New order placement / stock replenishment New order placement / stock replenishment Coil Stock Coil Stock
  • 5. Tata Steel 5Slide TSE Vision for Digital Enterprise and AI Adoption in Supply Chain 5 Base Layer (Disparate Process + Multiple ERPs) Data Integration and Visualization (Single Source of truth) Automation (RPA & ERP enhancements) Big data Analytics AI Predictive Intelligent Smart Real Time Digital Steel Enterprise • Dark/Hidden Spot using NLP/ Machine Learning / Deep learning • Collusive behavior / Process consistency • Intelligent Command Centre • Uses Cognitive using external factors of weather, natural disasters • Analytics model • Process Modelling • Leverage Big data • Influence Business Outcomes • Order Entry Automation /RPA • Order Complexity /MTA & MTO • Critical trigger for Order to delivery • Data arching layer interface to ERPs • Unified view and dashboard of Steel • single data model and single user interface • Multiple and Disparate systems • Data and ERP Fragmentation • Low Process Maturity • Steel Industry Characterization Unified view and visibility into steel availability Cognitive Enhanced End Customer Experience Predictable Operations Intelligent Delivery consistency Real Time Visibility No visibility to steel availability, Not sure of Timely Order delivery Drive Analytics for Inventory Process modelling Seamless Delivery Cater to dynamic order pattern and consumption behavior
  • 6. Tata Steel 6Slide RAPID – Tata Steel’s Stock integration platform across disparate MRP landscape • Automatic periodic run to provide a refreshed and updated view of the end stock • Presents a visual tool by extracting relevant data from disparate manufacturing systems and SAP • Aids stock replenishment by providing a visibility of current stock and end-consumption
  • 7. Tata Steel 7Slide However, with numerous SKUs, traditional order entry process poses a challenge 7 Creation of Purchase orders on SAPCreation of Purchase orders on SAP Customer Purchase OrderCustomer Purchase Order Staging FileStaging File SAP Order Entry FileSAP Order Entry File Order AcknowledgementOrder Acknowledgement OCR Process Conversion to structured data Manual typing of orders (15mins-20mins) Successful order creation manually Slow process Slow process Prone to human errors, often leading to undesired production Prone to human errors, often leading to undesired production Repetitive activity is not always considered job enrichment Repetitive activity is not always considered job enrichment
  • 8. Tata Steel 8Slide Robotic Process Automation at work - TCS Zeus for order entry 8 • Entirely mimics human behaviour by automatically typing all fields onto SAP and submitting the order • Intelligent to determine appropriate order quantity based on Minimum Order Quantity (MOQ) restrictions on SAP and goes for the closest match • On encountering any error, Zeus enters the error into a log and moves ahead to complete other order entries Zeus Recorded Demo
  • 9. Tata Steel 9Slide Zeus Benefits 9 • No change in working of the core applications like SAP. Zeus acts like a human that only interacts with SAP • Intelligently designed to take judgements on particular conditions like coil weight and week when capacity is available to place order • Handles errors well by recording them into a log and progressing to other orders
  • 10. Tata Steel 10Slide Big data storage and capture through RAPID system 1 0 Order Fulfilment Suite Health of stock measurementOrder progress through manufacturing hub
  • 11. Tata Steel 11Slide Big data analysis and actionable insights – stock out and overstock prediction1 1 Future stock health prediction Stock out Low stock Adequate stock Over stock Marginally High stock +8 weeks stock prediction
  • 12. Tata Steel 12Slide Big data analysis and actionable insights – customer consumption behaviour1 2 Enhanced customer centricity through joint collaboration with downstream units and customers to drive improved service performance / optimized inventory across the value chain Stock consumption analysis and insights Daily customer consumption Smart inventory management?
  • 13. Tata Steel 13Slide The Future: Machine learning and cognitive intelligence – Predicting Variabilities to Planned Exit Date and Planned Delivery Date 1 3 Customer Order Planned Exit Date Planned Delivery Date Common cause plant variability Changing customer priorities Special cause plant variability Port Strike River Flooding Snowfall ~ ~ ~ ~ ~ ~ Variability Variability
  • 14. Tata Steel 14Slide IgnioTM – A Comprehensive Intelligent Suite for ‘Order to Delivery’ 1 4 Sense Think Act Detect patterns – Customer Order, SKU footprint, Order exceptions, Prediction Model – Inventory Optimization Planned Exit/Adherence to Delivery Triage and Recommend – Command Center, Prediction model evaluation API and RPA – Order entry automation, Triggers Planning, Work scheduling / prioritization model, Gamification Learn Cognitive – predictable, touchless, Intelligent, Machine learning all of which leading to improved business outcomes Intelligent & Predictive delivery for customers Decipher Insights, Proactive triggered actions Insights to Interception Improved ‘On Time Delivery’ Optimized ‘Inventory’
  • 15. Tata Steel 15Slide Resolving Planned Exit Date (PED) variance through Ignio – way ahead 1 5 Current tracking - reactive Future tracking – predictive Customer name =“Renault”; product ordered = “sheet metal”, Order month =November; PED accuracy =90% Customer name =“Renault” Product =“sheet metal” Product =“rolled steel” Order Month =“November” Order Month =“january” PED accuracy=“90%”
  • 16. Tata Steel 16Slide What the future holds – real time prediction of Over/understock intelligently1 6 *Tata Steel presently uses its enhanced in-house RAPID system capabilities to predict overstock / understock
  • 17. Tata Steel 17Slide What the future holds - predicting Overstock/Understock intelligently 1 7 ~ 50 K Ton new Orders every week 2Hub & 8 Downstream 4 Production Strategies 50 + Warehouses 5 Customer Streams400 K Ton Avg Stock managed at any given point 32 diff activities performed to keep the stock moving daily 2200 + Stocked Unit Excessive Stock built (~3x of avg requirement) post migration into new platform High dwell of SKUs in Over-stock and Out-of-stock - >21 Days against a tolerance of 7 Days Re-active approach – distressed SKUs ~ 17% against tolerance of 5% Successful POCwith proven measures 3 Week ahead Preventive recommendations > 2Mn GBP potential BVA D C O E Order Entry Decoupling Point Notional Slab Hot Roll Pickling Cold Roll Annealing Quality Check Packaging Stock Transfer Galvanizing
  • 18. Tata Steel 18Slide 1 8 The future world of AI and cognitive systems…. Customer Order Planned Exit Date Planned Delivery Date Common cause plant variability Changing customer priorities Special cause plant variability Port Strike River Flooding Snowfall ~ ~ ~ ~ ~ ~ Variability Variability MitigationsandCognitiveLearning MitigationsandCognitiveLearning Mitigations and Cognitive Learning