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Supply chain network intelligence & orchestration (1)

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Supply chain network intelligence & orchestration (1)

  1. 1. Network Intelligence & Orchestration
  2. 2. 2 About Myself Senthil M, Director of Products, Fulfillment Experience @Flipkart - 8 years in product management @Flipkart - Scratch to Scale Experience - Expertise in product development across supply chain facets - Fulfillment Services - Transportation & logistics - 3PL management - Taxation, Compliance & Accounting - Supply planning - Network design - Inventory planning - Cash management solutions - Optimisation models - Geo Information Systems - Supply chain monetisation LinkedIn email: senthilm@flipkart.com
  3. 3. 3 Presentation Flow 1. Operating Landscape 2. Network Intelligence 3. Illustration
  4. 4. 4 Operating Landscape (1/2) Product Categories (Books, Furniture, Grocery, Pharma? …..) Supply Chain Services (Scheduled, Next-Day, Reverse pickups, Installation … ) Product Attributes (Multi-parts, Fragile, Stacking, Lots, Highvalue, Inflammable.. ) Fulfillment Models (JIT, Preorder, Inventory, Brand warehouses, Omnichannel, Hyperlocal…. ) Customer Segments (Plus, Metro, Millennials, Women, Working family) Demand Volatility
  5. 5. 5 Operating Landscape (2/2) Many Warehouses hosting millions of products 100s of thousand Sellers with their unique working models Covering 20k+ pincodes Large Field Force (Delivery executives, installation executives, agents) 100s of Partners/Vendors Millions of Packages 1000s of Vehicles carrying tons of load Crores of Cash & Digital payments. Adding Petty cash.. Supply Volatility
  6. 6. 6 Flow the Orders… Incoming demand Warehouse Sortation Piling Parcels Transportation Routing Implications (?)
  7. 7. 7 What can be done better? AWARENESS -> CONTROL -> INTELLIGENCE. => ORDERLY, PREDICTABLE - Where should i reserve Inventory in the network? - When should i release the inventory in the network? - Should i process real-time (or) batch it? - What should be the shipment flow path? - What should i do when there is an exception across the network (external, internal, customers)? - When should i initiate a transport connection from hubs? - What choices or flexibility should i offer to customer? GUIDING QUESTIONS ?
  8. 8. 8 Logical view Demand Prediction Engine Activities/Process (Lead-Time & Throughput) Service Composition & Capacity Management Business/Customer Intelligence Real-time Fulfillment Decisions Service Offerings & Pricing Real-time Events/Insights Network Orchestration Customer Choices Execution System .. Execution System .. N e t w o r k I n t e ll i g e n c e E x e c u ti o n
  9. 9. 9 What is Network Intelligence & Orchestration means? It’s a Constraint-aware planning system - that creates profitable distribution decisions with visibility into network wide inventory & capacity - iterative planning & execution based on real-time events/disruptions
  10. 10. 10 High-level System view
  11. 11. 11 Flow the Orders again… Incoming demand Batch Orders Planned Picking Sort for a Plan Routing Implications (?)
  12. 12. 12 Inventory Reservation & Release – Decision Science ● Which Warehouse to select? ▪ Consider future orders (demand forecast) ▪ Inventory Allocation for critical demands ▪ Identify flow paths & create choices ▪ Cost Vs SLA trade-offs ● How to batch orders? ▪ Flow path identification ▪ Transport Connection balancing ▪ Transport Connection grouping ▪ Risk assessments ▪ Backward propagation for zero queues. ▪ Forward pass for higher utilization

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