9. Data analytics is the top ranked area of importance to companies’ strategies this
year, especially at the CEO/Board level, and for larger companies.
#1 CHALLENGE
SUPPLY CHAIN
Supply chain is the number one challenge for companies
– and is also the most likely to receive increased
investment this year.
45% of executives identified speed and agility as their
top priority for supply chain improvement.
45% OF EXECS
SPEED & AGILITY
Industry Priorities
What should we be doing?
#1 PRIORITY: DATA ANALYTICS
10. Supply Chain Visibility
Importance vs. Performance
-20%
ORDER MANAGEMENT
TO CUSTOMERS
GREATEST GAPS
85% / 61% 67% / 47%
-24%
TRANSPORTATION
AND LOGISTICS
Transportation and logistics 85%
Transportation and logistics network 76%
Order management to customers 67%
Transportation and logistics 61%
Transactions and decisions within company 59%
Order management to customers 47%
Importance Performance
11. A Supply Chain is a complex system with complex processes with increasing complexity.
-- Lora Cecere, Founder, Supply Chain Insights
Supplier Procurement Manufacture Product Inventory Distribution Logistic Retail Customer
14. Exponential Complexity
Where numbers are staggering.
2
3
1
2
3
1
2
3
1
2
3
1
2
3
1
2
3
1Cities Possible Solutions
3 6
5 120
10 3,628,800
15 1,307,674,368,000
20 2,432,902,008,176,640,000
60 8,320,987,112,741,390,144,276,341,183,223,364,380,754,172,606,361,245,952,449,277,696,409,600,000,000,000,000
Suppose a ‘super-powered’ computer is able to
analyze a million alternatives every second.
• 10 cities would take 3.6 seconds
• 20 cities would take 76,000 years
More than the number of atoms
in the observable universe.
15. …we are reaching a tipping point where the complexity of supply chains is defeating
traditional SCP tools in the battle to come up with an overall optimized plan. This will
push leading companies to look to invest in… planning capabilities and push vendors to put
more of this category into their road maps.
Industry Challenge
What is holding us back?
17. The real challenge is using data
and analytics to better solve
problems… and that new analytics
often requires new behaviors.
18.
19. Predictive Analytics is the practice of extracting insight from an immense volume and
variety of existing data sets in order to better predict patterns and trends which result in
more optimal future outcomes. (Wikipedia)
Predictive Commerce increasingly uses Predictive Analytics to refer to related
analytical disciplines, decision modeling and optimization. (Wikipedia)
Predictive Analytics & Predictive Commerce
What do these words mean?
20. Predictive Commerce for Supply Chain is a new strategy that helps companies by
connecting upstream demand sensing with downstream supply chain planning and
execution, all in a single, optimized system of record.
By 2018, 90% of… leaders in consumer products will leverage downstream
consumption as pull signals to drive near-term upstream supply execution.
By 2018, 90% of Gartner's top 25 supply chain companies will have
deployed a planning system of record...
Market Leading Behavior
Enabling a more Predictive Enterprise
21. Predictive Enterprise
The road to analytics maturity
HindsightCompetitive Advantage Degree of Intelligence
Insight
Foresight
22. Predictive Enterprise Rewards
What are the benefits?
The companies that use predictive analytics &
optimization technologies the best are:
2XMORE LIKELY TO USE DATA TO
GUIDE DECISION MAKING
5XMORE LIKELY TO MAKE DECISIONS
“MUCH FASTER” THAN
COMPETITION
3XMORE LIKELY TO EXECUTE
DECISIONS AS INTENDED2XMORE LIKELY TO HAVE TOP-
QUARTILE FINANCIAL
PERFORMANCE
23. The largest & most complex Consumer
Goods/Beverage Supply Chain in the world.
The largest Retail Grocery fleet in the world.
The 2nd largest Consumer Goods
company in the world.
3 of the 4 largest shipping companies in the world.
When demand & operations complexity can’t be solved manually,
ORTEC is the partner leading companies turn to.
It’s time to start predicting the future of your business.
25. Network Design
Powered by ORTEC Consulting Group
Demand Planning
Load Building (WIN)
Vehicle Routing
Load Building & Routing (SAP)
Workforce Management
ORTEC Predictive Commerce Platform
Now you can better predict the future.
26. ORTEC Predictive Commerce Platform
Now you can better predict the future.
Network Design
Powered by ORTEC Consulting Group
Demand Planning
Load Building (WIN)
Vehicle Routing
Load Building & Routing (SAP)
Workforce Management
Business Analytics Consulting
Order Planning
Load Planning
Inventory Planning
Order Optimization
Load Optimization
Inventory Routing
Routing & Dispatch
Tactical Routing
Load Building
Routing & Scheduling
Workforce Planning & Scheduling
Inventory
Routing
Routing &
Dispatch
Tactical
Routing
Load
Building
Routing &
Scheduling
Workforce
Planning &
Scheduling
Load
Optimization
Order
Optimization
Inventory
Planning
Load
Planning
Order
Planning
Business
Analytics
Consulting
Optimization
27. Predictive Commerce
The way it will be done in the future.
Planning
Demand
Execution
Optimization Predictable Results
28.
29. $15-50M ANNUAL RETURN
AVERAGE FOR OUR LARGEST CPG CUSTOMERS
Optimizing our logistics is key to achieving our Centennial Strategy.
-- Don Knauss, Chairman and CEO, Clorox
We’re the world’s largest distribution system, helped significantly by ORTEC to get to
market and do it in an efficient and effective way.
-- Joe Tripodi, EVP & CMO, The Coca-Cola Company
CPG
ORTEC is Revolutionizing CPG
Will you be a part of it?
30. $10-45M ANNUAL RETURN
AVERAGE FOR OUR LARGEST RETAIL CUSTOMERS
Throughout our network, we delivered 65 million more cases, while driving
28 million fewer miles, by increasing pallets per trailer and better managing routes.
-- Walmart
We accomplished our goal of moving from a system we were comfortable with to an
enhanced solution, without upsetting any of our stakeholders.
-- Molson Coors
RTL
ORTEC is Revolutionizing Retail
Will you be a part of it?
31. $12-25M ANNUAL RETURN
AVERAGE FOR OUR LARGEST TTL CUSTOMERS
We have confidence in ORTEC’s expertise in complex route planning and scheduling.
-- TNT
In fact, almost anything is possible with this system and we continue to improve our
logistics performance.
-- DOT Foods
TTL
ORTEC is Revolutionizing TTL
Will you be a part of it?
32. $12-36M ANNUAL RETURN
AVERAGE FOR OUR LARGEST OGC CUSTOMERS
It was really satisfying to see our assumptions confirmed in ORTEC’s results, together with a
number of options we had not yet considered.
-- Primagaz
Our productivity has grown immensely, yet we still perform our scheduling activities
using the same number of planners.
-- Schenk Tank Transport
OGC
ORTEC is Revolutionizing OGC
Will you be a part of it?
Welcome & Thank You all for being here…MAYBE KEEP SOME OF THAT MUSIC TO MAKE WHAT I SAY MORE DRAMATIC
Busy schedules, personal commitments etc…
We hope the next two days are productive and informative for you.
DID EVERYONE GET ENOUGH FOOD LAST NIGHT?
GLAD I DIDN’T GIVE UP HAM FOR LENT.
THANK YOU AGAIN…
FIRST THINGS FIRST…
HOLD UP PAPER BRACKET AND CLICK SLIDE…
I KNOW EVERYONE IS TALKING ABOUT THIS…I AM DEAD LAST OR NEAR BOTTOM…SO MUCH FOR MY HOOPS KNOWLEDGE…
AFTER BEING FORTUNATE TO PLAY IN A COUPLE MARCH MADNESS TOURNAMENTS LONG TIME AGO…YOUD THINK I’D KNOW SOMETHING
RAISE HANDS IF YO UHAVE A BRACKET THIS YEAR?
KEEP YOUR HANDS RAISED IF YOU PICKED SOMEONE OTHER THAN KENTUCKY?
WHO?
WHAT A GREATTOURNAMENT…ALWAYS GREAT STORIES AND GAMES
JUST TREMENDOUS EFFORTS
HERE IS ANOTHER TOPIC THAT EVERYONE SEEMS TO BE TALKING ABOUT
ALL OVER THE TECHNOLOGY LANDSCAPE
BIG DATA…SMALL DATA…UNSTRUCTURED DATA…JUST LOTS OF DATA
THIS TOPIC CAN CERTAINLY FEEL LIKE A BLACK HOLE OF DATA…ANALYTICS
IS THIS A LOT OF HYPE OR IS THERE A REALITY OF HOW TO GET OUR ARMS AROUND DATA AND GET SMARTER…
HEARD IN VIDEO THAT OUR BUSINESSES ARE FAILING AT CONTROLLNG OUR DATA
SO WE KNOW THERE IS LOTS OF DATA OUT THERE
WHERE DO WE START?
TYPICALLY WITH A FEW PEOPLE AROUND A TABLE AND SOME GOOD IDEAS…
MAYBE SOMETHING LIKE THIS?
AND WHEN WE AC TUALLY TRY ONE OF THESE IDEAS…DOES IT TURN OUT RIGHT?
SO I MENTIONED EVERYONE IS TALKING ABOUT DATA ANALYTICS IN SOME FORM OR FASHION….
JUST LOOK…
IBM
SAP
AMAZON
ADVENTURES - FUN
WORLD - FAMILY
WELL…ACCORDING TO RECENT RESEARCH IT IS #1 PRIOROTY?
AND WITHIN THAT…OUR SUPPLY CHAIN IS #1 AREA…
WITH SPEED AND AGILITY AT THE TOP OF THE LIST…
OK…WE HAVE OUR PRIORITIES RIGHT….
BUT OUR PERFORMANCE AGAINST THAT PRIOTY IS REALLY LACKING…
TRANSPORTATION & LOGISTICS
ORDER/DEMAND
LORA CECERE…WHO’LL YOU’LL HEAR FROM LATER THIS MORNING
SARCASM…
SO LET’S TAKE A LOOK AT WHY THIS IS SO COMPLEX AND GETTING MORE COMPLEX…
SO WE HAVE OUR SENIOR EXECUTIVE RAISING THE “RED FLAG”
DESCRIPTORS
TIP OF THE DATA ICEBERG!!!!
SO MANY OTHER CONTRIBUTING FACTORS UNDERNEATH THE SURFACE
MAKING IT REALLY HARD TO FIND SIGNIFICANT PROGRESS TOWARDS SOLVING PROBLEMS, REDUCING COSTS…FINDING REVENUE
GARTNER SUMS IT UP PRETTY WELL…
MANUAL TO AUTOMATED…NOW MOUNTAIN OF DATA IS CREATING MORE MANUAL FIXES…AND CAN’T KEEP UP
ALL THE WHILE…
SR. EXECUTIVE IS RAISING THE RED FLAG OF “SHOW ME THE MONEY”
PREDICTIABLE FORECASTS…PROFITABLE FORECASTS…
EXECUTIVES IN LARGE PUBLIC COMPANIES THAT GET ON WALL ST. ANALYST CALLS…
THEY ARE COUNTING ON MEETING EXPECATIONS/FORECASTS…
HOW DO YOU HELP THEM…FOCUS ON REDUCING COST…FINDING REVENUE OPPORTUNITIES
NOW WE HAVE HARVARD GIVING US A FAILING GRADE…
THEY INTRODUCE THE IDEA THAT EVEN WHEN WE BEGIN TO GET CONTRTOL AND DECISION MAKING IMPROVEMENTS
THAT ISNT ENOUGH…THERE ARE NEW BEHAVIORS THAT MATTER TOO.
ANYONE RECOGNIZE THIS PICTURE/PARK..from a movie
ANYONE RECOGNIZE THIS QUOTE?.....
CAME FROM A MAN NAMED BENJAMIN MEE
USE THIS QUOTE AT HOME…3 TEENAGE DAUGHTERS
USE THIS QUOTE AT WORK…COMFORT ZONE…PERSONAL AND PROFESSIONAL GROWTH HAPPENS
TAKEAWAYS FROM THIS MEETING? – GO BACK AND SHARE AN IDEA
SHARE SOMETHING THAT ANOTHER COMPANY IS DOING.
HOW DOES CHANGE BEGIN?...TAKES PEOPLE…THEIR IDEAS…THEIR BEHAVIOR
SO LET’S GO BACK TO THESES TERMS AGAIN…
HOW ARE THEY ACTUALLY DEFINED?
READ THEM TIME…
NOW LET’S COMBINE THAT INTO OUR SUPPLY CHAIN WORLD AS GARTNER DESCRIBES HERE…
THIS IS HOW MARKET LEADERS ARE THINKING AND ACTING WITH THEIR DATA CHALLENGE.
TRYING TO ENABLE THEIR ENTERPRISE TO BE MORE PREDICTIVE AND PROFITABLE IN NATURE
WE THOUGHT IT WOULD BE NICE TO HEAR FROM THE “MAN ON THE STREET” SO TO SPEAK…
SO LET’S HERE FROM HIM….
TIM MINAHAN…WHO’LL WE’LL HEAR FROM SHORTLY…LOTS TO SHARE ON THIS NEXT PHASE THAT IS SHAPING THE PREDICTIVE ENTERPRISE
SO WHERE IS YOUR COMPANY ON THIS ROAD TO ANALYTICS MATURITY?
HINDSIGHT BASED?
NOW USING INSIGHTS FROM CURRENT SYSTEMS?
TAKING DYNMAIC AND PAST DATA TO CREATE FUTURE MODELS/TRENDS/OUTCOMES USING…
- OPTIMIZATION
THOSE COMPANIES THAT ARE BEGINNING TO USE THEIR DATA AND ANALYTICS CAPABILITY BETTER ARE:
2X = PERFORMANCE AND DECISION MAKING
3X = LIKELY TO EXECUTE ON THAT DECISION MAKING
5X = FASTER AT DOING IT…
HERE ARE A FEW THAT HAVE ADOPTED A PLATFORM APPROACH TO ANALYTICS AND OPTIMIZATION AND CONTINUE TO PUSH THE ENVELOPE…
PROUD TO CALL THEM ALL OUR CUSTOMERS…
VIDEO…
$500 m AT COKE
THOUGSANDS OF SKU’S AROUND THE WORLD AT P&G
NEARLY 70% EFFICIENCY GAINS IN THEIR SUPPLY CHAIN
AND THE LARGERST PURE SUPPLY CHAIN SHIPPING NETWORKS…
GRATEFUL FOR THE 4TH AND LARGEST HERE WITH US TODAY…
COMPANY STATS
CULTURE ANALOGY
GET TO KNOW SOMEONE?...
WHAT TO KNOW ABOUT US-
ANALOGY …PROBABLY A BAD ONE…
-REMEMBER THE STUDENTS IN Jr. High and High school that were really smart …knew they would go to a great college and
Just knew they would succeed in creating something useful for the world…
Then at your 10 and 20 year reunions you see them, and ask them what they are doing?
Well…that’s ORTEC…and its founders…it’s technology leaders..
Phd’s in Operations Research
Professors in Operations Research.
Culture of Analytics and Alogriotms…
Talk about Adventures in Algorithms…
Very passionate today about solving complex problems and providing most optimal outcomes
BASED OUT OF THE NETHERLANDS…
YOU CAN GET THEM TO SOLVE MANY SOME SERIOUS WHAT IF SCENARIOS…BUT DON’T ASK THEM TO FILL OUT YOUR BRACKETS…OR IN MY CASE…MAYBE I SHOULD.
AND UNDERNEATH OUR PLATFORM ARE OUR OPTIMIZATION ENGINES…
TAKING LOTS OF DATA…LOTS OF SOURCES…BETTER PLANNING…BETTER DEMAND RESPONSE…BETTER EXECUTION..
COPNSTRAINTS…RULES, RESOURCES.,..AND OPTIMIZE THOSE FOR MORE
PREDICTABLE AND PROFITABLE RESULTS…
WE’VE TALKED ABOUT PREDICTIVE NATURE OF DATA IN A SINGLE SYSTEM OF RECORD
WE’VE TOUCHED ON OPTIMIZING THAT DATA FOR AN OPTIMAL PLAN
BUT IT’S STILL ABOUT PROVIDNG A EXECUTABLE PROCESS TO GROW..
HERE ARE A FEW CUSTOMERS WE’VE HELPED DO JUST THAT…ACROSS SEVERAL INDUSTRIES…
THANK YOU!!!
WE HAVE A GREAT TWO DAYS PLANNED FOR YOU…REALLY FORTUNATE TO HAVE SOME GREAT PEOPLE PROVIDING OUR KEYNOTE SESSIONS
WE HAVE A FULL AGENDA OF BREAKOUT SESSIONS TOMORROW
PLEASE LET ANYONE AT ORTEC HOW WE CAN HELP MAKE YOUR EXPERIENCE BETTER.
THANKS AGAIN FOR BEING HERE…
GOOD LUCK WITH YOUR BRACKETS!!!