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How to drive real business value from your virtual Supply Chain twin?

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This is the full presentation of Anneleen Tronquo (Partner bluecrux) & Valerie Vandenbroucke (Product Manager LightsOutPlanning bluecrux), presented at Logipharma 2019 (Wednesday 10 April, 2019). Learn how a virtual twin can enlighten your Supply Chain, using practical case studies.

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How to drive real business value from your virtual Supply Chain twin?

  1. 1. Logipharma 10-04-2019 LightsOutPlanning: How to drive real business value from our Virtual Supply Chain Twin
  2. 2. 2 Good morning! Anneleen Tronquo Valérie Vandenbroucke Anneleen.Tronquo@bluecrux.com Valerie.Vandenbroucke@bluecrux.com Practice lead @LightsOutPlanningPartner @ bluecrux
  3. 3. 3 #WeAreNotThe80sAnymore
  4. 4. 4 The end of Supply Chain as we know it… DEVELOP PLAN SOURCE MAKE DELIVER SELL SUPPORT DOWNSTREAM UPSTREAM
  5. 5. 5 #Connecting the dots Planning DistributionOperations Finance Customer Workforce Digitalization
  6. 6. 6 TODAY TOMORROW
  7. 7. 7 Qué?
  8. 8. 8 Connect. Learn. Aim. Shine.
  9. 9. Future Technology Landscape – Example View
  10. 10. 10 5 core capabilities to drive better supply chain decisions Create a virtual twin Set smart parameters Get end-to-end visibility Optimize end-to-end financials Monitor the control tower
  11. 11. Use Cases
  12. 12. A Pharma Use Case #E2E Visibility
  13. 13. IT Landscape Business Context Network Products ▪ Global ▪ 20+ Internal & 50+ External Manufacturing Sites ▪ 120+ Distribution Centers ▪ 33.000+ Routes ▪ 150+ Brands ▪ 10.000+ SKUs ▪ 5 different ERP systems ▪ 1 APS target system
  14. 14. Business Challenges Scattered IT landscape no E2E view on brand flows Non-harmonized definitions of planning sensitive parameters Inaccurate and missing planning master data 1 2 3
  15. 15. 15 Get end-to-end visibility Optimize end-to-end financials Monitor the control tower 5 core capabilities to drive better supply chain decisions Create a virtual twin Set smart parameters
  16. 16. 16 Virtual Twin Data View
  17. 17. 17 Virtual Twin Multi-Level Network View
  18. 18. 18 Virtual Twin Brand View Prod X Prod Y
  19. 19. Smart Parameters Transfer Time – Brand YXZ
  20. 20. 20 APS LightsOutPlanning 1 Integrated Solution Network Synchronization Prescriptive ParametersBetter Simulations Frictionless Plan ERP Plan & KPIs Plan Simulations Master Data Transactional DataPlanning Data Model Parameters Network Sync Self-healing parameters
  21. 21. Business Results E2E Visibility Less friction in the Plan Dynamic E2E Planning Parameters ↑ Product flow understanding Automation ↑ / manual activity ↓ Planning accuracy & service ↑ & Inventory ↓
  22. 22. Other Use Cases
  23. 23. Demonstratedasset throughput and forward looking influencing factors ‘Golden’ batch sizes & output rates for low volume SKU’s Determine demonstrated throughput and key influencing parameters Qualitative Benefits • ↑ Asset throughput • ↓ Energy use & cost Quantitative Benefits • Capacity: 262 TDS/dy -> 282 TDS/dy • Yield accuracy 49,9% -> 50,2% Qualitative Benefits • ↑ Scheduling accuracy • ↑ Factory output Use cases, creating value from day 1! CASE 1 CASE 2 OperationsOperations Determine actual product average batch size to be used in Master Production Scheduling for low volume SKU’s Real release times between secondarypacking and qualityrelease Determine real lead times and scrap rate and identify key influencing parameters Qualitative Benefits • ↑ remaining shelf-life for retail customers • ↑ visibility into site Quality Release WoW • ↑ ‘available’ plant capacity • ↓ Safety stock due to accurate LT parameters Quantitative Benefits • 10% Quality Release Time reduction • 2% Scrap Rate improvement identified CASE 3 QA LOP Virtual Twin & Smart Parameters LOP Virtual Twin & Smart Parameters LOP Virtual Twin & Smart Parameters
  24. 24. E2E financiallyoptimal supply network based on true capacities Qualitative benefits • E2E thinking & acting across SC, OPS, Sales, FI, Proc. • Awareness created at C-level to start formal IBP • Key enabler for IBP process Quantitative benefits • BU1: +10% EBIT improvement identified (25% realized during project mode / first 6 months) • BU2: +8% EBIT improvement identified Use cases, creating value from day 1! CASE 5 Network Determine the E2E financial optimized network based on actual supply parameters Planning Sensitive Parameters & Multi Echelon Inventory Optimization Determine the E2E planning sensitive parameters for an optimized supply network Qualitative benefits • ↓ E2E lead time • ↑ Planning performance • Removal of double stock points • Better supply chain visibility & control Quantitative benefits • Inventory savings: 20 MIO USD or 7% of addressable PoV inventory (in $ value) • PoV payback period: 3 months CASE 4 Supply LOP Virtual Twin & Smart Parameters LOP Virtual Twin & E2E Financial AI based order patternrecognition & forecasting Qualitative benefits • Improved order quantity prediction • Better insights into influencing factors • Peak alert mechanisms Includes: • Advanced machine learning • Neural networks CASE 6 Demand Use AI/ML to improve sales prediction & influencing factors LOP Virtual Twin & Smart Parameters
  25. 25. End-to-end value chain mapping as a dynamic virtual twin Use cases, creating value from day 1! CASE 8 Network Map the end-to-end brand flows from API till final DC/Customer across multiple legacy systems AI based demand management incl. leading indicators Use AI/ML to improve sales prediction & influencing factors Qualitative benefits • ↑ Fct performance • ↑ Level of automation • Increased forecast ability & reduced bias • Better supply chain visibility & control Quantitative benefits • LOP outperforms traditional TOY FCT with 50+% CASE 7 Demand LOP Virtual Twin & Smart Parameters LOP Virtual Twin Qualitative benefits • ↑ Flow visibility • ↑ Network synchronization • Better supply chain accuracy & control • Platform for further value creation Quantitative benefits • Planning accuracy increase / frictionless planning Your Case ? Chooseyour digital starting point Connect your data now & start creating value
  26. 26. Bluecrux & LightsOutPlanning -what makes us different? 2 Predesign Get the journey started Design Pave the way Implement A 1+1 = 3 collaboration Embed Your knowledge Definition Your planning sensitive parameters Create virtual Twin Create clarity on your network Smart parameters Capture the value of your APS Govern & sustain Using our LOP platform Sustain Define We support your OMP BUSINESS DESIGN & TRANSFORMATION We support your DATA FACTORY We support your journey towards TOUCHLESS PLANNING # Data is the new oil… Our proud CUSTOMERS We bring a unique & holistic set of capabilities leveraging planning design expertise, advanced data methods & strong implementation skills
  27. 27. Connect. Learn. Aim. Shine. Think big. Start small. Scale fast.

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