DSS can help management by simplifying data analysis so they can spend more time thinking strategically. Management should focus on understanding business needs rather than technical details. DSS also challenges beliefs by providing new insights from simulations. The presenter's organization took several approaches to using DSS, starting with optimizing delivery logistics and moving to softer processes. Some case studies showed DSS optimizing transport saturation, reducing defects in product displays, and investigating new picking methods. Key lessons are that DSS are a mindset, not just technology, and change management is critical to success. DSS can help enlarge strategic thinking while also improving operations.

1. ORGANIZATION AND DSS
Approaches, Paths and results
Luca Nerozzi
Coop Alleanza 3.0

2. AGENDA
• What about DSS?
• The role of management
(and Innovation manager too)
• Approaches, paths and results:
some cases
• Conclusions

3. WHAT ABOUT DSS ?
• Spreadsheet
Business spend less
time to manage data,
more time to Analyze
Spend less time to
Analyze, more time
to think and decide
Reduce«Technicalityskill»
forenduser
• Data Base report
• BI SW & Tools
• Simulation platform:
• Integrated platform (& manage processes)

4. WHAT ABOUT DSS ?
Business spend less
time to manage data,
more time to analyze
Spend less time to
analyze, more time
to think and decide
Reduce«Technicalityskill»
forenduser
Complexity increases but you are
more able to enlarge, to
distribute, to extend and scan the
tree of knowledge with details
that immediately satisfy any
curiosity, doubts or deep
questions
Years

5. Agenda
• What about DSS?
• The role of management
(and Innovation manager too)
• Approaches, paths and results:
some cases
• Conclusions

6. THE ROLE OF MANAGEMENT
FROM manage people that
analyze for you
(and, first elaborate too)
TO manage people that think
about problems and discuss
about different point of view
(it’s simpler to create a lot of different
points of view)
Reduce«Technicalityskill»
forenduser
Years

7. THE ROLE OF MANAGEMENT
From understand what you
want to see
To knows what you can do and
the impact of details in
simulations and vision strategy.
Reduce«Technicalityskill»
forenduser
Years

8. THE ROLE OF
MANAGEMENT
Innovation Manager doesn’t mean only
innovation issue but it’s an holistic
vision that could be activated by the
evolution of technology and the power
of synthesis.

9. THE ROLE OF
MANAGEMENT
“I am a ‘Top’, I must remain with a ‘high
view’ to think, decide and manage at best”
(as if details were not really of the top managers but... "dirty stuff")
WHY ??
Details and vision strategies
are not in antithesis !!

10. SIMPLIFYING IS NOT TRIVIALIZING
• A «math» example:
Trivializing:
«Everything you divide by zero, will be infinitive»
In particular in this case that numerator remain «small»
into range -1, 1.
So result is:

11. SIMPLIFYING IS NOT TRIVIALIZING
• A «math» example Simplifying:
Knowledges
Someone must be knows
Taylor Series
Technical
competences
with «customer» view, vertical
skills with business approach to
understand which simplified
version could be solved by
anyone
Simplified version
that could be solved
by anyone
So result is:

12. SIMPLIFYING IS NOT TRIVIALIZING
Math example to summarise what?
• Trivializing is often «son of ignorance»
«Everything you divide by zero, will be infinitive»
• Details are not «dirty stuff» for a «top manager»
Would be interesting to define this «label»…
• Simplyfing of details are essential and needs people with knowledges and
technical competences with business view
DSS help their to spend more time to understand business requirements

13. SIMPLIFYING IS NOT TRIVIALIZING
Math example to summarise what?
• Experience are very important and make the difference but with the
“partnership” with DSS and their evolution
Think about you professional career: do you remember a «fail decision
episode» driven by too much confidence in experience only?
• Some DSS results (in particular in predictive and simulation systems) are
difficult to accept because challenging our beliefs.

14. AGENDA
• What about DSS?
• The role of management
(and Innovation manager too)
• Approaches, paths and results:
some cases
• Conclusions

15. APPROACHES, PATHS AND RESULTS
• Start with «hard operation activities»… are more understandable.
• Will arrive at «soft organization processes»:
– Now we are into a workload project (with the innovative approach that I showed at DSF
2017 «The Brick-Lego paradigma»)
– We will use DSS to support best organization processes decision
• Improve your competences about those issues during projects
• «Culture» and «mind-gap» are key success factors

16. APPROACHES, PATHS AND RESULTS
1. Routing Delivery Planner
to reduce transport costs
(best rate with
outsourcer
transportation company)
6. Internal Routing and
efficiency: optimizing
picking method
(double fork with
same or different
store)
2. Service Level and Key operation
driver to understand how
outsourcer can be more efficient
3. Logistics Management
(where and how to manage goods
into existing DC maintaining the
same service level)
4. Logistics Scenarioes
(how to modify delivery
and goods position
maintening service level)
5. Internal Routing
and efficiency:
optimizing Display
Scenarioes, Vision and
Strategies
Operative and support
daily activities
7. Automatization impacts:
right sizing with re-simulation
approach (total cost and
investment: internal and
transportation)
And
… START
AGAIN!
8. Demand,
inventory and
replenishment
9. WorkLoad and
Store operation
Modelizing
(DSF ’17)

17. SOME CASES: 2. SERVICE LEVEL
• Simulation with different supports to increase transport saturation
– Half-height stackable plastic pallet crates.
– Re-design picking sequence lists
• Results:
– Up to 18% higher saturation level (with maximum height constrain)
– Reduce total mileage with same calendar

18. SOME CASES: 5. OPTIMIZING DISPLAY
• Simulation with optimized display (but fixed-picking position) and
measuring defects in order to:
– Category compatibilities of goods
– Weight and height constrain
– Rotation class
• Results:
– - 40% of Low defects
– - 58% of Medium defects
– - 71% of Serious defects
Result are versus manual
optimized display defined by
outsourcer expert of logistic
company
«Challenging our belief»

19. SOME CASES: 7. PICKING METHODS
New long forklift truck with weight detect system
Real problem: increase defects (probability of wrong goods position between
two different stores) ?
Simulation must be achievable
How z-pick Method can be combined with simultaneous different stores picking
(with long forklift)?

20. SOME CASES: 7. PICKING METHODS
Stores
Big
Stores
Small
Stores
Level of usage
% of «standard Long
forklift»
% of «weight detect
long forklift»
Stores association
also depends on
their delivery
calendar

21. SOME CASES: 7. PICKING METHODS
Interesting «investigation area»

22. APPROACHES, PATHS AND RESULTS: MISTAKES
• Approaches: detail level?
– Too fine  too time to obtain small better solution
– Too high  raw solution that could be «trivial»
Use simulation
You cannot improve simulation
without specific experience (in
diversified business too)
You must know what you can do with the simulation
You don’t have to know «how to do» the simulation
• Paths:
– Buy and install Arena SW
– Training to specialize dedicated person

23. AGENDA
• What about DSS?
• The role of management
(and Innovation manager too)
• Approaches, paths and results:
some cases
• Conclusions

24. CONCLUSIONS
• Improve your assimilation about those issues.
• DSS are not technology but are a «mentality»
• It’s ever important to know technicality but
now is simpler
(Really?? – Really!!)
• You can use DSS in operating activities or into
strategic approaches
(better if project is well defined and consider
all these two aspects)

25. CONCLUSIONS
• Change management is the key
success factor (and training too)
• Complexity increases, so simplifying
is a must.
Competences are fundamental: we
can spend more time to understand
what we can do and the impact of
details in simulations and vision
strategy.

26. CONCLUSIONS: THE SPHERE OF KNOWLEDGE
DSS help to enlarge vision,
think about different
approaches, improve
innovation, drive operating
activities.

27. CONCLUSIONS: THE SPHERE OF KNOWLEDGE
DSS help to enlarge vision,
think about different
approaches, improve
innovation, drive operating
activities.

28. Thanks !
Luca Nerozzi
luca.nerozzi@alleanza3-0.coop.it
luneroz@gmail.com