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Connected Autonomous Planning: a continuous touchless model enabling an agile supply chain

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Phil Davies, Head of Consumer Products, Retail and Distribution, Capgemini Invent and Michael McCullough, Supply Chain Lead, Capgemini US discussed “How using Intelligent Automation drives a step change in planning effectiveness and efficiency” at Kinexions 2019, the annual destination for users and supply chain innovators to showcase how to accelerate innovation, shorten time-to-value and maximize competitive advantage.

Capgemini’s Connected Autonomous Planning is a holistic approach to develop touchless planning solutions that creates a more easily automated, agile and responsive supply chain to support the needs of the future consumer and channels.

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Connected Autonomous Planning: a continuous touchless model enabling an agile supply chain

  1. 1. 1© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 Connected Autonomous Planning
  2. 2. 2© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 Supply Chains are Undergoing a Transformation Priorities have changed and companies need to react IT Revolution enabled quick and cheap communication between international parties Cheap labor and manufacturing expertise led to entry and rise of China in world economy Global trade boom due to tariff reform and low-cost transportation “Every day low price” guarantees from international suppliers Adoption of Lean inventory management and Just-in- Time delivery Focus on procurement & infrastructure for savings Between the 1990s and 2010s…
  3. 3. 3© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 Regional regulations are causing complexity in trade, like Huawei legal issues and European Data Privacy Amazon and Alibaba transforming customer experience in the e-commerce world Due to rising labor costs in manufacturing in China, firms are searching for alternatives Current and potential U.S. tariffs against China, Mexico, and Europe Emerging technology such as AI, IoT, 3D Printing, and Autonomous Robots Global Trade growth slowed from 5.5% to 2.1% from 2017 to 2018 What Are the Shifts and Impacts We See Today?
  4. 4. 4© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 The changing consumer landscape creates new complexities in supply chain planning Traditional Supply Chain Challenges Changing Face of the Consumer Planning Challenges of Today Fragmented Supply Chain Ecosystems Creating Increased Friction How to Harness Value from the Proliferation of Data Increased Scrutiny on Transportation Costs Reliance on Judgement and Human Intervention Distributed Capabilities and The War on Talent High Supply Chain Operating Costs High Working Capital Heavy Reliance on Excel & Outdated Tools Poor Inventory Visibility Continued Omni-Channel Diversification into Social Media, Capsules with Established Retailers, and Pop-Ups Increased Focus on Emotional Connection with Brands Demanding Ethical Sourcing, Social Responsibility, Sustainability, and Transparency in the Supply Chain Assortment Explosion: Extreme Personalization & “One Time Only” Products, Driven by Insights & Data Instability in Plans due to Poor Reliability of Supply
  5. 5. 5© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 5Capgemini Invent 2018. All rights reserved | Companies must modernize their supply chain planning to keep pace Supply Chain capabilities are the foundation for competitive advantage between companies. Supply Chains are becoming:
  6. 6. 6© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 Acceleration Computational Power Maturity of Algorithms Intelligent Automation including ML and AI Standard APIs War on Talent 5G Connectivity Connected Autonomous Planning: a continuous touchless model enabling an agile supply chain to thrive in a volatile environment Digital Enablement Creating Opportunities Solution We have a clear vision of the next generation of supply chain planning: § Continuous & touchless E2E planning process § Automated rule based decisions § Maximize economies of skill § Advanced analytics to reoptimize parameters § Dynamic plug & play technology architecture § Innovation embedded § Connected supply chain leveraging latest digital technologies at scale
  7. 7. 7© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 To compete, planning must become continuous, touchless and connected internally and externally Consume Create Demand Supply Connect and Influence Business Partnering Plan Adoption Internal & External Connectivity User Interface Collaboration Methods Workflow Management Plan Planning Capability Optimisation Capability Technology Plan Review Learn Analyse Parametrise Optimise Planning Technology Automation Master Data Management Sustain Continuous Improvement Discover Disrupt Evolve Innovate
  8. 8. 8© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 1. Plan: using Intelligent Automation to drive a step change in planning effectiveness and efficiency Planning Capability § Plans the end to end supply chain globally § ‘Touchless’ enabled by routine and cognitive automation § Measured on planning outcomes Optimisation Capability § Continuously analyses planning outcomes to identify when parameter optimisation is needed § Re-optimises parameters and embeds into core planning systems Technology Data Layer and Systems of Record Planning Layer Network O ptimisation Inventory O ptimisation Real Time Visibility and Supply Chain Network Orchestration Intelligence Layer M aterials P lanning Detailed Scheduling ERP Supply C hain Data Lake Integrated S&OP Rough C ut C apacity P lanning Long T erm C apacity P lanning Demand P lanning P roduction Planning Distribution P lanning SupplyPartners SalesChannelPartners § Flexible and adaptable dynamic technology platform A consolidated hub which plans the end to end supply chain globally in a ‘touchless’ way enabled by a dynamic technology platform and optimisation capability Consume Create Demand Supply Connect and Influence Business Partnering Plan Adoption Internal & External Connectivity User Interface Collaboration Methods Workflow Management Plan Planning Capability Optimisation Capability Technology Plan Review Learn Analyse Parametrise Optimise Planning Technology Automation Master Data Management Sustain Continuous Improvement Discover Disrupt Evolve Innovate
  9. 9. 9© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 2. Connect and Influence: Harnessing the power of local and global for truly flexible and responsive planning function Need § To avoid functioning in Silos § Dependency on inputs provided by various functions sales, manufacturing etc. § Prioritization of strategic incentives over functional/market specific Capabilities § Effective exceptions management § User-friendly collaboration tools § Flexible and responsive engagement Benefits § Engaged stakeholders § Balancing organisation/functional KPIs § Communication at all levels § Joint approach to risk and issues HUB HUB Consume Create Demand Supply Connect and Influence Business Partnering Plan Adoption Internal & External Connectivity User Interface Collaboration Methods Workflow Management Plan Planning Capability Optimisation Capability Technology Plan Review Learn Analyse Parametrise Optimise Planning Technology Automation Master Data Management Sustain Continuous Improvement Discover Disrupt Evolve Innovate
  10. 10. 10© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 3. Sustain: Using industry leading capabilities to imbibe the culture of continuous improvement Centre of Excellence An integrated capability of functional experts, methods, toolkits and ‘SWAT teams’ which rapidly deploy improvements and changes of services, products and channels to Markets Digital Supply Chain Transformation Model Capgemini Thought Leadership A network of coordinated innovation capabilities centred around 15 Applied Innovation Exchanges (AIEs), including Academia, Start- ups, Thought Leaders and niche consultancies Consume Create Demand Supply Connect and Influence Business Partnering Plan Adoption Internal & External Connectivity User Interface Collaboration Methods Workflow Management Plan Planning Capability Optimisation Capability Technology Plan Review Learn Analyse Parametrise Optimise Planning Technology Automation Master Data Management Sustain Continuous Improvement Discover Disrupt Evolve Innovate
  11. 11. 11© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 To compete Planning must become Continuous, Touchless and Connected internally and externally Run Demand Review Run Supply Review Run Business Review Provide Promo Plans & Parameters Provide Innovation Plans Create Total Demand Plan Plan & Schedule Production Create Supply Network Plan Plan Distribution Yes Plan Materials B Assess Supply Options Review Market Events plan B No No Yes S&OP (Monthly) Plan Demand (Weekly Cycle) Plan Supply (Daily Cycle) Agile S&OP Yes Apply Allocation Rules No A A A B Supply meet demand? Resolved? Update demand parameters Execute Resolved? Provide Brand Plans Update supply parameters Need to Re-plan? Event Triggers Yes In-Market Above Market Planning Hub Total Demand Planning for all SKUs: Sales and Marketing provide promotional and innovation parameters as inputs and total demand planning tool calculates the demand uplift ‘Agile S&OP’ is a daily process evoked as and when needed to handle exceptions that require commercial and operational trade off decisions Virtually executed with core group of organisation involved Sales History Use inventory effectively. Only re-plan if necessary to avoid destabilising the supply chain One plan for all horizons to maintain a single source of truth One plan for all horizons to maintain a single source of truth No Key Automated
  12. 12. 12© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 Descriptive Diagnostic Predictive Prescriptive Autonomous Standard Reports Dashboards Query / Drill Down Statistical Analysis Forecasting & Extrapolation Predictive Modeling Discovery & Optimization / Bots AI & RPA – Touchless Planning DegreeofIntelligence What happened in the past? Why is this happening? What if these trends continue? What will happen next? What’s the industry- leading solution that can be achieved? CompetitiveAdvantage Business Value Transforming to a touchless planning environment requires a clear view on the roadmap to follow
  13. 13. 13© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 Leveraging Data through Evolving Technology to Increase Your Value Network STEP 1 Organizational communication on Data Sharing STEP 2 STEP 3 Road mapping current Data Flows within organization Aggregating Data by leveraging Automated Technology • 16 ERPs • Inventory Visibility • Speed to Market • Dual Data Lakes 2015 Data Lake 2016 & 2017 SC Control Tower 2018 & 2019 Self-Driving Supply Chain • Predictive Alerts • AI Exploration • Data Transparency • Single Source of Truth • S&OP/IBP Backbone • Autonomous • Machine Learning • Real-Time Data • Responsive Supply Chain Automation Journey “We should not let the need to write-off legacy technologies stand in the way of building digital capital” “Unlearn the practices of the past to define the future”
  14. 14. 14© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 What is the business value of doing things differently? Improve Delivery (OTIF) Decrease Inventory Holding Improve Manufacturing Efficiency Reduce Transportation Costs Decrease Headcount (FTE) 5 – 8% 25 – 30% 2 – 3% 3 – 5% 10 – 30% Supply Chain Impact Planning Model Value § More accurate forecast, more stable plan and predictable § Accurate stock norms § Disciplined use of inventory and trust the norms § Optimise schedule § Stable schedule § Enables optimal routings § Higher cube utilisation § Access best contracted rates § Supplier (inbound) supply chain efficiencies § Consolidation & automation § Responsiveness and Agility § Speed – time to market § War on talent mitigation and retention (organisation of the future) § Business sustainability and Environmental Footprint § Enabling the future of business
  15. 15. 15© Capgemini 2019. All rights reserved |Building A Touchless Supply Chain Using Autonomous Planning | Kinexions’19 | 16 October 2019 Contact Us Thank You Phil Davies Head of Consumer Products, Retail and Distribution, Capgemini Invent * phil.davies@capgemini.com ) +44 7810 694 205 Michael McCullough Supply Chain Lead, Capgemini US * michael.mccullough@capgemini.com ) +1 773 230 0539
  16. 16. 16© Capgemini 2019. All rights reserved |Capgemini’s Connected Autonomous Planning | Kinexions’19 | 16 October 2019 A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40 countries. The Group reported 2018 global revenues of EUR 13.2 billion. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright © 2018 Capgemini. All rights reserved. People matter, results count.

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