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End to End Supply Chain Control Tower

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DRIVING VALUE WITH BIG DATA
END TO END SUPPLY CHAIN CONTROL TOWER
Tarun Rana| Henkel | Amsterdam, November 2020

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WHO WE ARE
LEADING POSITIONS IN CONSUMER AND INDUSTRIAL BUSINESSES
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Beauty CareAdhesive Technologies Laundry & Home Care

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WHO WE ARE
LAUNDRY AND HOME CARE SUPPLY CHAIN
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>7,000 colleagues / 33 factories / 47 distribution centers

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End to End Supply Chain Control Tower

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When you look at traditional ERP or management systems, they are usually used to manage the supply chain originating from either the point of Origin or point of destination which all our primarily physical locations. And for these, you have several processes like order to cash, source to pay, physical distribution, production etc.

When you look at traditional ERP or management systems, they are usually used to manage the supply chain originating from either the point of Origin or point of destination which all our primarily physical locations. And for these, you have several processes like order to cash, source to pay, physical distribution, production etc.

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End to End Supply Chain Control Tower

  1. 1. DRIVING VALUE WITH BIG DATA END TO END SUPPLY CHAIN CONTROL TOWER Tarun Rana| Henkel | Amsterdam, November 2020
  2. 2. WHO WE ARE LEADING POSITIONS IN CONSUMER AND INDUSTRIAL BUSINESSES 2 Beauty CareAdhesive Technologies Laundry & Home Care
  3. 3. WHO WE ARE LAUNDRY AND HOME CARE SUPPLY CHAIN 3 >7,000 colleagues / 33 factories / 47 distribution centers
  4. 4. DIGITAL TRANSFORMATION CURRENT STATE OF I4.0 PENETRATION > 4.000 Flight Decks Users with > 28.000 accesses/d > 50 Smart robots: Always-on and connected 4.500 Always-on and connected IoT devices > 10 Billion Datapoints processed per day > 15 TB Data volume processed per day > 25 MEUR Savings/a from I4.0 applications in 2020 4
  5. 5. DIGITAL TRANSFORMATION BROAD TECHNOLOGY / USE-CASE LANDSCAPE… 5 End-to-End Connectivity Unique Product Identification / Digital S&OP/S&OE / Track & Trace / Master Data Analytics Quality goes Digital Safety goes Digital Digital Enzyme Monitoring Demand Sensing Robotics Smart Ro-/Cobots AGV and Drones WH Automation Additive Manufacturing Visualization Mobility Apps Digital SIM Boards Online KPI Tracking Cost to Serve Sensorics Real-time Metering Next Generation In-line Quality Real-time Filling Line Efficiency Predictive Maintenance
  6. 6. DIGITAL TRANSFORMATION … EMBEDDED INTO COMPREHENSIVE ECOSYSTEM 6 Transparency & Visibility IT Architecture & Systems Supplier Plant Distribution Center Customer Analytics Robotics VisualizationSensorics Digital Backbone: End-to-End Analytics Agile Transformation Culture “Horizontal” + “Vertical” approach
  7. 7. DIGITAL BACKBONE THE DATA LAKE OF MANUFACTURING 7 2013: Kick-off; first sites connected NOW: ONE!Global Solution All sites connected worldwide § > 4,500 IoT devices deployed § > 250 online efficiency systems § > 80 quality systems § > 10 machines with live streaming § > 500 automated real-time reports § > 50 ML pipelines running in Cloud LIVE
  8. 8. SENSORICS REAL-TIME METERING 8 Backbone of Henkel's success in Supply Chain sustainability § Flexible installation with high data visibility, easily expandable to new factories/production areas § > 3,500 sensors (> 4,000 by 2020) § > 1 million data points per day § Scope: Global Maturity: Full deployment Smart Sensorics Applied to Benchmark Consumptions Across all Processes Real-time monitoring and benchmarking resulting in year on year savings 3% 6% 9% 12% 15% 18% 15% 17% 18%1% 6% 7% 9% 9% 12% 14% 16% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* Base Improvement Increment via Digital Introduction Online Energy Metering Energy savings per year (L Energy KPI [kWh/t]) * LBE
  9. 9. SENSORICS DIGITAL SPRAY TOWER PROCESS 9 Significant lever on further reducing energy KPI and ensuring safe operations § Spray Tower as the biggest internal single energy consumer § Process complexity, various impact factors on efficiency and quality § Expert system to identify deviation from best practice operating point § Scope: Global § > 85% of all towers (100% by 2020) § Scope: Global Maturity: Roll-out Process Control Parameter Streaming Building Global Spray Tower Expert System Ring Channel Temperature Filter Temperature
  10. 10. SENSORICS PREDICTIVE MAINTENANCE 10 § Detection of known fingerprints of failure for any AC motor § Provision of early warnings in case of detection of anomalous patterns § Automated analysis based on machine learning algorithms § 2 factories under implementation in WE § Scope: Global Maturity: PoC Online Condition High Frequency Monitoring for AC motors Increase overall equipment efficiency by the avoidance of failure
  11. 11. ANALYTICS DIGITAL FORMULA FINGERPRINTING 11 § Improve raw material yield, focus: surfactants § Analytical capabilities limit specification precision § Future: reduce specification range by factor 3 through smart algorithms § Opportunity: Lower target values § 3 spectrometers § 50 thousand data points per day § Scope: Partial Maturity: Pilot Product Digitalization with Unique Fingerprint Through IR Technology and Algorithms Library of products and apps allows to determine origin of products at anytime
  12. 12. ANALYTICS POUCH MONITORING SYSTEM 12 § Continuous monitoring of machine parameters § Real-time evaluation and improvement of the in-line rejection mechanism § Supporting best-in class fully automated quality control § Reduction of scraps and production waste § Scope: Partial Maturity: Roll-out High resolution camera picture of every pouch for in-line high speed quality control Next generation in-line quality control increasing equipment efficiency
  13. 13. ANALYTICS QUALITY GOES DIGITAL 13 § Online and real-time analytics of Quality parameters § Key quality KPIs (QIB/FTR) online § Reduce non-conformities in production § Ensure compliance and performance of suppliers § Scope: Global Maturity: Roll-out Advanced analytics and real-time KPI tracking to lower Total cost of Quality One view on harmonized Global Quality lowering customer complaints
  14. 14. ANALYTICS DEMAND SENSING 14 § Forecast improved by pattern-recognition algorithms § Technology integrated in legacy planning environment § Processed demand signals predict future order pattern § Point of Sales data ingestion for improved accuracy § Scope: Partial Maturity: Roll-out Machine Learning algorithms to better forecast demand signals Inventory impact of -5 days, significant forecast improvement
  15. 15. VISUALIZATION END-TO-END KPI FLIGHT DECK 15 § Raw transactional data taken from existing ERP system § Utilizing drill-down functionalities in Tableau to quickly identify the root causes § Real-time fully automated KPI tracking § >90 reports and dashboards Globally § Scope: Global Maturity: Roll-out Real-time analysis in the cloud with action-driven insights Lowest granularity insights on all SC KPI’s (Cash, Cost, Service)
  16. 16. END-TO-END CONNECTIVITY UNIQUE PRODUCT IDENTIFICATION 16 § Digital unique product identification § Track and trace along the entire supply chain § Technology fulfills EU legal requirements as of 1.1.21 (Unique Formula Identifier) § Technology: in-line label print and scan § > 100 currently being installed § Scope: Partial Maturity: Roll-out Serialization of products for end-to-end Track and Trace Product serialization cradle to pantry fulfilling full legal compliance
  17. 17. END-TO-END CONNECTIVITY CAPACITY & PRODUCTION PLANNING INTEGRATION 17 § Inaccuracies in planning process significantly impact Supply Chain performance § Overstated efficiencies lead to delivery delays and service level losses § Understated efficiencies lead to high cost and wrong invest decision § Closing loop to account for short term but also mid to long term portfolio effects § Positive impact on all key Supply Chain KPIs § Scope: Global Maturity: Pilot Closed feedback between ERP and MES synchronizes shopfloor and planning online E2E Supply Chain steering based on facts, not assumptions
  18. 18. END-TO-END CONNECTIVITY MASTER DATA CONTROL TOWER 18 § End-to-End process visualization to improve NPI time-to-market § Data integration from several project management systems § Perform continuous runtime analysis, bottleneck identification, portfolio complexity analysis and performance assessments § Scope: Global Maturity: Roll-out New Product Introduction, Faster Time-to-Market Improve NPI Time-to-market by 30% from go zero to market launch
  19. 19. END-TO-END CONNECTIVITY COST TO SERVE 19 § Fully transparent and digital tracking of customer ordering patterns § Prescriptive analytics on improving supply chain efficiencies § Customer scorecard (including sustainability impact) to support collaboration and projects alignment with our customers § Scope: Partial Maturity: Roll-out Advanced analytics to better understand our customers ordering behaviour and steer L6/L11 Cost improvements on individual cost drivers in outbound supply network
  20. 20. END-TO-END CONNECTIVITY DIGITAL S&OP / S&OE 20 § Establish Tableau as data visualization layer to drive S&OP to the next level § Generate online insights to increase agility & responsiveness to market needs § Forward-looking dashboards to support decision making, identify & close gaps between reality and strategy § Scope: Global Maturity: Roll-out Effective S&OP drives business success by Actualizing Strategy via Operations Central tool utilized by cross functional teams to execute S&OP cycle
  21. 21. END-TO-END CONNECTIVITY CONSUMER BUYING BEHAVIOUR 21 § Digital solution to support cross- functional teams, especially during Covid-19 § Real-time consumer buying trends § Advanced pattern recognition § Early signals for us in case of significant changes § Scope: Partial Maturity: Roll-out Utilizing POS data from customer to understand our consumers buying behaviour Utilizing big data capabilities for direct “touch” with consumers!
  22. 22. IT SYSTEMS & INFRASTRUCTURE HENKEL DATA FOUNDATION AS DATA LAKE 22 Virtual Infrastructure Continuously developing and connecting physical and virtual infrastructure Front End Physical Infrastructure HDF Azure Data Lake Lomazzo St. Louis AMS Ankara
  23. 23. AGILE TRANSFORMATION CULTURE ORGANIZATION DEVELOPMENT AND TRANSFORMATION STEERING 23 § Simple governance: Small Int’l team + 50 Local Digital “SPOCS”, remote meeting every 6 weeks § Bottom-up (ideas, pilots, roll-out) and Top-down (strategy, technologies, standards) § Upskilling of organization e.g. 20 webinars, Global academy, on-the-job, digital capability framework Systematic synchronization of technological and organizational development Leveraging networks in an efficient and agile way
  24. 24. DIGITAL TRANSFORMATION PARTNERS: BROAD SCREENING AND SMART SELECTION 24 Technology Partners Conference Long Term Relationship Universities Consultants Service Partner Analytics Partners
  25. 25. SUMMARY & OUTLOOK 25 § Applications across SC pillars deliver significant returns § Impact areas are supply operations, planning, logistics, inventories, production, sustainability, safety, quality § Increasing integration of “stand-alone” applications accelerating benefits § Constant workforce development needed to exploit full benefits of technology § Transform talent management and weave it into the fabric of the business
  26. 26. THANK YOU
  27. 27. Feedback Your feedback is important to us. Don’t forget to rate and review the sessions.

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