7 Strategies to Avoid Supply Chain Automation Overkill

1. How manufacturing companies can manage
demand volatility and shortened customer lead
times
Part of TAKE Supply Chain’s ongoing webinar series: Optimizing Supply Chains in a Global and Mobile
Economy
ON DEMAND WEBINAR
June 2016
www.takesupplychain.com
7 Strategies to Avoid
Supply Chain Automation Overkill

2. State of Supply Chain Automation
“Buzz Overload”?

3. State of Supply Chain Automation
What does “supply chain automation” mean?
Automation:
The application of technology to control processes by
automatic means, reducing human intervention to a
minimum.
Supply Chain Management context:
Automation can be applied across end-to-end flow of
goods and functions with the objective of creating process
efficiency and building a competitive infrastructure.
Real world adoption keeping up with the “buzz”?

4. Is Now The Right Time to Explore Automation?
Technology is becoming more affordable
The need to expand regionally and perhaps
globally
End of year planning/budgeting ‒ pressure to
build a clear plan to address:
the need for greater speed
lower cost
higher visibility
and more reliable throughput in the supply chain

5. The Challenges And The Risks
All Automation, All The Time?
ERP Implementation Failures
Air Force Expeditionary Combat Support System
(ECSS) - scrapped
Automation Risks:
The wrong areas
Overspending
Over-automating
Under-utilizing 40%
40%
20%
Will the move to
automation lead to a
completely automated
supply chain?
Yes
No
Not Until 2050

6. 7 Strategies to Avoid
Supply Chain Automation
Overkill

7. 1) Don’t Use Automation to Fix A Process Problem
Automation will only speed up a dysfunctional
process
Leading companies have fewer key controls
Other potential process issues: bad data input,
the wrong or too many reviewers/handlers.

8. 2) Match Complexity With Capability
Enterprise software is most effectively used to
manage and coordinate large amounts of
information and partners:
Large number of diverse suppliers
Variety of SKUs
Many regions and global locations

9. Automated processes still need to be managed
Requires different skill sets and resources
Full automation vs. modular implementation
Get results, confidence, establish ROI  then expand
“I can’t believe I automated the whole thing!”
3) Get Maximum Benefits Without All of the Automation

10. 4) Automate For Agility
Manufacturing and Distribution Companies
face:
Inherent forecast uncertainty
Shortened customer lead-times
Inventory risks
Need for production capacity flexibility
Risks to maintaining product and service quality

11. 4) Automate For Agility (continued)
Shorter supply chain cycle times and more
agility is required, and automation is key
enabler
Eliminate manual processes
Consolidate communication with suppliers
Seamless order placement and confirmation
Reduce errors and increase process accuracy
Real-time order, inventory, and shipment visibility

12. 5) Don’t Force Mature Automation on Developing Regions
Examine regional limitations, cultures and labor
costs
If the technology infrastructure is not in place, using a
technology solution may slow things down
If face-to-face or human contact is a cultural value,
automating that away may cause relationship
problems
Automations that may be cost effective in a mature
market may not be here

13. 6) Don’t Over Automate Just Because You Can
Ensure that your technology decisions are driven by:
Business needs
Specific processes
Individual goals
…not the complexity and power of your technology provider.
“If you build it, will they come?”
50% of ERP users only
had knowledge of some
features or did not
know which features
their company was
using.

14. 7) Be Creative With Your Automation
Make specific processes disappear
American Apparel
Become transparent across your supply chain
Unilever – “radical supply chain transparency”

15. Strategies Summary
1) Don’t Use Automation to Fix A Process Problem
2) Match Complexity With Capability
3) Get Maximum Benefits Without All of the
Automation
4) Automate For Agility
5) Don’t Force Mature Automation on Developing
Regions
6) Don’t Over Automate Just Because You Can
7) Be Creative With Your Automation

16. Who Is TAKE Supply Chain?
Focused on improving
global trading partner
collaboration and process
efficiency for manufacturers
and distributors
Software, Services, and
Support
Delivered in the cloud, on-
premise, and via mobile
devices
Located in Austin, TX
“…TAKE clearly understands the nature of
successful supply chain management: it is
about integration across systems, facilities,
enterprises, and trading blocs—in a high
availability delivery model…
That is an environment that is difficult to create,
but critical for today’s supply chain operations.”
— Ann Grackin, CEO, ChainLink Research

17. Why TAKE Supply Chain?
OneSCM® Centralized
Trading Partner
Collaboration &
Management Solution
Enterprise Integration – into
multiple enterprise systems for
data accessibility at the
detailed level of operation
Trading Partners – up to 100%
supply base integration and
spend management regardless
of technology limitations
AP Automation (E-Invoicing)
PO Collaboration
Shipment Collaboration
Compliant Docs & Labels
Demand Collaboration
Sales Order Drop Ship
Inventory Visibility/Control
Supplier Management

18. OneSCM® Key Benefits
Agile Automation
Automated workflows can be
designed and configured to fit your
current needs
Achieve true management-by-
exception
Real-time mobile alerts to ensure
smooth operations
Cost-effective to modify as your
business and requirements mature

19. OneSCM® Key Benefits
Flexible Integration
Multiple Internal Systems:
Planning
Procurement
Finance
Transportation/Logistics
Multiple ERP solutions:
SAP
Oracle
JD Edwards
More
External Partner Integration:
EDI/RNIF/XML
Web Portal
Batch/SFTP Upload

20. Contact Us
For more information or to discuss your Supply
Chain needs please email us at:
marketing_tsc@takesolutions.com
pat.shelton@takesolutions.com
Or call:
800.324.5143
Q&A recorded from live webinar session.

21. www.takesupplychain.com
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