Acropetal - Planning On-Demand

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Planning On-Demand is currently a concept and a platform that is being built at Acropetal Technologies Limited to significantly improve the realization of Value from the Value Chain. It is a proposal for the orchestration of process that enables participants on this value chain to access and deliver transactions and services “On-Demand”; increasing availability and reliability not just through technology but also through business and cognitive intelligence. The methodology prescribed focuses Product/Process in the point of view of Customer and Consumer Experience and thus would be able to drastically reduce the Mind 2 Market and Time 2 Market for any product or service.

Our CEO Mr Subbu Iyer unveiled the Planning On-Demand concept at the JDA Focus 2012 event in Las Vegas. We generated tremendous interest among the participants at the annual global conference.

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Acropetal - Planning On-Demand

  1. 1. SUPPLY CHAIN MANAGEMENTPlanning On-Demand Sheikh Zohib Riyaz Abhijith Jayakumar Principal Consultant Principal Consultant Enterprise Innovation Management Enterprise Innovation Management Acropetal Technologies Limited Acropetal Technologies Limited
  2. 2. Planning On-Demand Acropetal Technologies Limited“Acropetal Technologies Limited is a Business Technology Solutionscompany coursing a journey currently to become the poster child of theKnowledge and Experience economy. Our business model is structured toaddress the emerging trends of Convergence in Content, Communicationsand Computing. The core focus of our business model is Innovation thatenergizes Excellence for Transformation and Growth. As the global macro -economic trends dictate, it is becoming increasingly imperative fororganizations to become global businesses with a local nature, developingnew markets, segments and customers continuous and concurrent tomanaging the existing assets and maximizing returns.” © Acropetal Technologies Limited - 2012| 2
  3. 3. Planning On-DemandTable of ContentsPlanning “On-Demand”............................................................................................................... 4Modernization of Supply Chain Management ............................................................................ 4The Global Challenge .................................................................................................................. 4Orchestrating the value chain in Real Time ................................................................................ 6Executing Planning On-Demand ................................................................................................. 7On the “Cloud” ............................................................................................................................ 8Value Proposition ........................................................................................................................ 8 New Products and Markets ..................................................................................................... 9 Business Turnarounds – Real Time ......................................................................................... 9 Growth................................................................................................................................... 10 Performance Improvement................................................................................................... 10 Profit Growth......................................................................................................................... 11 Cost Minimization ................................................................................................................. 11ReferencesAbout the authorsContact UsDisclaimerThis publication contains general information only and Acropetal Technologies Limited is not, bymeans of this publication, rendering accounting, business, financial, investment, legal, tax, or otherprofessional advice or services. This publication is not a substitute for such professional advice orservices, nor should it be used as a basis for any decision or action that may affect your business.Before making any decision or taking any action that may affect your business, you should consult aqualified professional advisor. Acropetal Technologies Limited its affiliates and related entities shallnot be responsible for any loss sustained by any person who relies on this publication. © Acropetal Technologies Limited - 2012| 3
  4. 4. Planning On-Demand Planning On-DemandP lanning “On-Demand” as a value Innovative and efficient Supply proposition is driven by the Chain Management strategies should aspiration of the current Value encompass the entire Customer / Chain to Continuously Innovate Consumer Value Chain starting rawand bring the orchestration of the process materials to consumer experience of aglobally in Real-Time to deliver Business Product Offering. More than ever there isand Cognitive Intelligence. In the process, a need for a global yet dynamic Supplycollaborative partnerships can flourish Chain Management with the continuouswithin the Value Chain to make intelligent need to identify and expand Markets andbusiness decisions creating Mind 2 Market Customers.(M2M) and Time 2 Market (T2M)advantages for the initiator and theirpartnerships. Acropetal brings this The Global Challengeorchestration as an on-demand platform For the purpose of understandingoffering for customers globally. the challenges and opportunities in a new marketplace, organizations often employModernization of Supply Chain research organizations, who try to gauge the “demography” of the targetManagement customers. Psychography is equally Supply Chain Management as a important to differentiate productpractice has evolved tremendously over offerings managed through processes thatthe last few years. The driving factor reaches and distributes to customers atbehind this evolution is attributed to the their rate of demand.demand by the customers to have accessto the right product/service at the right “Modern supply chains need totime. Further is the convergence of the 3 globalize locally assuring uniformC’s – Content, Communication and quality and availability”Computing. Organizations have identifiedthis need for change as a major This would help the organization’s R&Dcontributor for success and have brought teams to design and create productsin innovative strategies to enhance their which appeal to the customer in a newSupply Chain Management. It is no longer geography leveraging all the existingdata sharing or data exchange. The assets without creating new ones. Therelevance of the Value Chain is its ability challenge of the modern supply chain is toto facilitate collaboration among the globalize locally assuring uniform qualityparticipants securely in real-time. and availability of products. © Acropetal Technologies Limited - 2012| 4
  5. 5. Planning On-Demand Entering a new market, in new exist while introducing a new product andgeographies is always a challenge. the associated changes are affected to theTechnology has the potential to reduce Supply Chain in the same geography.complexity but problems still remain in Organizations often introduce a newthe supply chain is what a research product line in the same geographicalconducted by “Acropetal Technologies region, which would require newLimited” in April 2012 suggests. The suppliers, new manufacturing plants andsurvey was rolled out to Supply Chain an alternative distribution network. Ourprofessionals through online professional research is depicted in illustration 2,communities. The responses for the time indicating the lag in introducing a newrequired by organizations to create a new product within an existing supply chain isSupply Chain framework have been shown equally alarming. The result suggests thatin Illustration 1: among organizations with revenue exceeding 1Billion, 43% takes around 6 to 12months to setup a Supply Chain to cater to a new product, in an existing marketplace. In most industries, especially ones such as consumer electronics space, organizations often compete to be the first one to release a product and capture the market. A cycle time of 6 to 12months would be a major deterrent and organizations We tried to understand the various factors which affect the creation Illustration 1: Time to establish a new Supply of a new Supply Chain framework and Chain framework hence their impact on the organizations. The result clearly indicates thatamong the organizations with an annualrevenue exceeding 1Billion, 43% feelestablishment of a new Supply Chainframework still take 3 to 6months. In anera of aggressive competition, a lag of3~6months, would mean an opportunityfor competition with innovative SupplyChain strategies. Illustration 2: Cycle Time for creation of Supply Chain for new product These trends were not just limitedto new geographies. Similar challenges © Acropetal Technologies Limited - 2012| 5
  6. 6. Planning On-Demand Our research respondents mostly fully integrated supply chain in anymade up of Supply Chain experts, when geographical location they want. This is aasked to rank the major challenges they platform for orchestration of a value chainfaced while establishing a new Supply that enables the participants on this valueChain framework came up with theobservations as shown in the Illustration Illustration 3: Impact of various factors on cycle time to establish Supply Chain framework3. It also appears from our research that chain to access and deliver transactionsInnovation is yet to take root in the Supply and services “On-Demand”; increasing theChain. What is still pervasive is a single availability and reliability not just throughdimensional patching of problems; not an technology but also through business andeffective root cause thinking that cognitive intelligence. This platformaddresses business solutions from a Value focuses on delivering high quality, lowerChain perspective. cost, faster delivery service with predefined service quality and flexibility to the supply chain. The main advantage of this platform would be the reach of a localOrchestrating the value chain market in the global context with the timein Real Time taken as compared to other players in the market bringing significant Mind 2 Market Planning On-Demand platform will & Time 2 Market advantages.help organizations realize the value of a “Business Processes need to be implemented in a Illustration 3: Impact ofeffective and on tap manner acrossChain framework cost various factors on cycle time to establish Supply the value chain” © Acropetal Technologies Limited - 2012| 6
  7. 7. Planning On-Demand Illustration 4: Connecting the Value Chain with Planning On-Demand some decisions by itself, without humanExecuting Planning On- involvement.Demand “Embracing the Globality of theS Businesses Environment without upply chains based on Planning On-Demand will take advantage complicating the Business needs” of unprecedented levels of interaction – not only withcustomers, suppliers and IT systems ingeneral, but also among objects that are For example, it might reconfiguremonitoring or even flowing through the supply chain networks when disruptionssupply chain. Besides creating a more occur. It could acquire rights to useholistic view of the supply chain, this physical assets like production capacity,extensive interconnectivity will also distribution facilities and transportationfacilitate collaboration on a massive scale. fleets on demand through virtualWorldwide networks of supply chains will exchanges. This intelligence will be usedbe able to plan and make decisions not only to make real time decisions, butcollectively. also to predict the future. Equipped with sophisticated modelling and simulation A Supply Chain based on “Planning capabilities, the smarter supply chain willOn-Demand” will allow decision makers to move past sense-and-respond to predict-simulate various courses of action. It will and-act.also be capable of learning and making These supply chains will be © Acropetal Technologies Limited - 2012| 7
  8. 8. Planning On-Demandinherently flexible. They will be composed On the “Cloud”of an interconnected network of The dynamic nature of thesuppliers, contract manufacturers and Planning On-Demand model dictates itsservice providers that can be tapped on unique architecture as well. Thedemand as conditions change. To mechanism depends on constantleverage resources optimally, the supply availability of relevant and accurate data,chain of the future will need to employ because of which the data repositoryintelligent modelling capabilities. would reside on the cloud. OrganizationSimulations allow supply chain managers irrespective of their geographicalto see the cost, service level, time and Illustration 5: Knowledge Base providing Mechanism of Dynamic Supply Chain Implementationquality impacts of the alternatives being positioning should be able to access andconsidered. The heart of the Planning On- leverage this Knowledge Cloud, thusDemand mechanism depends on the providing a Global Delivery model for theKnowledge Base on which the end users. The partnering of this Researchorganizations Supply Managements Entity through by means of theexperts design the framework for new Knowledge Cloud would enablemarkets, new geographies. The success organizations to mobilize their Supplymodel would be based on close Chain frameworks in minimal time.partnership between two closely tiedentities – Research and Implementation.The Research entity would be themechanism to orchestrate the value Value Proposition Tchain, as shown in illustration 5. As shownin the illustration, the knowledge base he Value Proposition of theavailable as part of continuous research Planning On-Demand is thewould enable the design and orchestration of a Process acrossimplementation of a dynamic Supply the Value Chain in Real TimeChain, irrespective of the market and leveraging on the Convergence ofgeography. Computing, Communication and Content. Such a Value Chain can collaborate © Acropetal Technologies Limited - 2012| 8
  9. 9. Planning On-Demandwithout worrying about Costs; as the On- that drives the solution to be executedDemand part would address the need to with Technology enablers supported byavoid Costs that do not yield business Knowledge and Meta Models operated byvalue. The essence of Planning On- experts contextualizing and providingDemand is it not being a Technology expert assistance on tap.Solution alone; Business is embedded in it Illustration 6: Creating GrowthNew Products and Markets dependent on its supply chain capabilities. Experienced supply chain specialists in a When an organization moves into Planning on-demand based supply chainnew product or market areas, the logistics can leverage their knowledge to help youand procurement functions must be able rapidly identify and address the supplyto respond rapidly. New products or chain issues arising from your newgeographies may demand a complete product and market developmentrethink of existing supplier and strategy. They can be brought in todistribution strategies. In some manage specific one-off projects, or todevelopment-led sectors – such as supplement teams.pharmaceuticals – close and effectivecollaboration with suppliers, customers,research organizations and commercial Business Turnarounds in Real Timepartners plays a critical part in the all-Important development, trial and launch With 20% of a companys costsof new products. Similarly, a companys tied up in its supply chain, this is anability to expand into new geographies is obvious area of focus in any turnaround © Acropetal Technologies Limited - 2012| 9
  10. 10. Planning On-Demandsituation. Supply chain based on Planning systems are incompatible. They may haveon-demand with turnaround expertise can different distribution channels. There willquickly assess a companys situation, see be existing customer relationships andwhere the supply chain strategy is failing, partnerships to consider, and suppliers toand bring their massive experience and rationalize. There may be major culturalimpartiality to bear. The expertise from differences, too. Yet, with low margins,planning on-demand can cut through the executives must ensure that theirclutter to see exactly what needs to be disparate organizations, offices, depotsdone. Then they help the management and hubs work together as a seamlessteam do it – either by getting truly hands- network. Systems must be migrated,on, or by mentoring the management protocols established, customer basesteam. merged, suppliers streamlined, global contracts re-negotiated, IT incompatibilities addressed and all of this must be executed quickly. Interim logistics and procurement management can be invaluable in this situation. Planning on- demand builds the capability to absorb the additional workload, hasten successful integration, and have the experience to support managers who have not been through the process before. Performance Improvement This can include grooming key Organizations are constantlymanagers to take over the reins and to looking for ways to improve their supplycontinue the good work once the interim chain performance. And it’s easy to seemanager has left. why – with 20% of a companys costs “Interim supply chain specialistsGrowth are deployed who are a no-risk, Customers increasingly demand a results-guaranteed route.”global service, supplied by global partners– so the pressure to merge and acquire is typically tied up in the supply chain, andgreat. Many acquired businesses are so many customers judging a company bysmaller operations - offering the right its ability to deliver almost to angeographical presence but creating major anticipated order. Reducing costs,supply chain management issues. Their eliminating waste, improved productivity, creating new services, holding stock on © Acropetal Technologies Limited - 2012| 10
  11. 11. Planning On-Demandconsignment, mass customization… the supply chain expertise will help you buildpotential areas for improvement are service into your supply chain.almost endless. But the solution is to Segmenting customers to focus on thoseintroduce a new concept of planning, that most profitable and at the same timeis dynamic and in real-time; where creating a demand to make othersintelligent decisions are made. Planningon-demand will give us options such as “Supply chain expertise will helprethinking of processes, moving to a third you build service into your supplyparty logistics provider, rationalizing chain.”suppliers, new training, expanding intonew geographical markets or developing profitable, providing them with theand delivering a different channel experience of Value Creation, deliveringstrategy. These are often specialist the right product, at the right place, rightprojects which an incumbent team hasnt time, and right quality could be the newfaced before. Hence, Interim supply chain part of dynamically operated Supply Chainspecialists are deployed – who have leading to both Profitability andsuccessfully handled such initiatives in Productivity; without compromising eachsimilar business situations – are a no-risk, other.results-guaranteed route. Companies whodeploy them gain immediate access totheir experience, insight – and have Cost Minimizationknown result delivered fast. Efficiency and costs are linked. As efficiency falls, costs increase – costs to rework, reroute, redeliver, replace. SupplyProfit Growth chain expertise eliminates the non-value- added processes and drives down costs in In many areas it is the supply areas such as materials handling,chains that compete – not the companies. overheads, purchased materials,Where product price differences are transportation, warehousing, productionsmall, service quality becomes paramount processes, and personnel.as a differentiator. Planning on-demand“The continuous focus on innovation in the field of Supply Chain would help in providing value to the customer while reducing the Mind to Market (M2M) and Time to Market (T2M) for the organization” © Acropetal Technologies Limited - 2012| 11
  12. 12. Planning On-DemandReferences • “Executives Online” – Article “Supply Chain Consultants” (http://www.executivesonline.com.au/practice_areas/disciplines/supply_chain/sc_ex p) • “The smarter supply chain of the future” - Karen Butner, (Global SCM Lead for the IBM Institute for Business Value) • “Essentials of Supply Chain Management” by Michael H. Hugos • “Supply Chain Management” by Peter Meindl © Acropetal Technologies Limited - 2012| 12
  13. 13. Planning On-DemandAbout the authors…Sheikh Zohib Riyaz Sheikh Zohib Riyaz is a Principal Consultant with Acropetal Technologies Limited. He holds a Masters in Business Administration and Bachelors degree in Information Technology. Prior to joining Acropetal Technologies he was working for The World Bank. He enjoys taking up challengesacross industry verticals to develop technology solutions that help create a betterworld for tomorrow. He has been analysing various Supply Chain Managementplatforms that are being deployed currently and has come up with an alternativeapproach to address problems in the industry.zohib.sheikh@acr opetal.comAbhijith Jayakumar Abhijith Jayakumar is a Principal Consultant with Acropetal Technologies Limited. He has Bachelors in Technology in Electronics & Instrumentation discipline and has close to 6 years of experience in the field of Supply Chain Management, Quality & Project Management. Prior to joining Acropetal he was working forGeneral Electric in Information Management area. A graduate from GE’sInformation Management Leadership Program, where he recommended andimplemented several changes to traditional methods. Abhijith, with a keen eye forquality, is a Six Sigma Green Belt certified professional.abhijith.jayakum ar@acr opetal.com © Acropetal Technologies Limited - 2012| 13
  14. 14. Planning On-DemandContact UsWeb URL : www.acropetal.comBANGALORE DELHI USA#2/10, Ajay Plaza 1st Main, N.S. Palya 917&918, Hemkunt Chamber 5005 LBJ Freeway, SuiteBannerghatta Road Bangalore - 560 076 India 89, Nehru Place 805 Dallas, TX 75244Tel: +91 80 4908 4000 New Delhi - 110 019 India Tel: (214) 272 2240Fax : + 91 80 4908 4100 E-mail: inquire@acropetal.com Two Embarcadero Centre, Suite 460 San Francisco, CACorporate Information 94111E-mail: inquire@acropetal.com Tel: +1 (415) 291-8818 Fax: +1 (415) 291-8815 E-mail: inquire.usa@acropetal.comDUBAI GERMANYAl Barsha 1, St.no. 329 2F Al Barsha Business Altrottstrasse 31Center Building D-69190 Walldorf GermanyPO Box: 450079, Dubai United Arab Emirates Tel: +49(O) 6227 73 – 3830Tel: 04 371 33 98 Fax: +49(O) 6227 73 3834Fax: 04 371 33 30 E-mail: inquire.europe@acropetal.comE-mail: inquire@acropetal.com © Acropetal Technologies Limited - 2012| 14

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