The scope of the Webinar? You will learn: How Blockchain, Machine Learning, and Virtual Reality can enhance the Core Procurement Processes? How Blockchain, Machine Learning, and Virtual Reality can enhance Collaboration and Competitive Advantage? How Blockchain, Machine Learning, and Virtual Reality can reduce Supply Chain Risk Factors? How to communicate the Business Case for Blockchain, Machine Learning, and Virtual Reality?

1. Procurement and Blockchain?
Machine Learning? Virtual Reality?
Webinar
David Millington, M.Sc.QSM, NPDP, CL6σBB, SPP℠, SPSM3®, CM®
Director of Education

2. David Millington, SPSM3®
Value Streams are Supply Chains and are:
1. Systems that source inputs that interact with data points, machines, processes, metrics, conversion mechanisms,
logistics functions, and people to develop and deliver useful products and services to customers
2. A mixture of value-creating activities, non-value creating but essential activities, and wasteful activities.
A Typical value Stream consists of 10% Value Creating, 30% non-value creating but essential activities, and 60%
wasteful activities. All three activities can be mapped and quantified for time and dollar impact.

3. Strategic Procurement Professional’s Mandate
Understand, measure, solve problems relating to:
Manage Spend
Support Operations
Protect our organizations from the impact of Risks
Procurement Function Digitization

4. Scope of Webinar?
You will learn:
How Blockchain, Machine Learning, and Virtual Reality can
enhance the Core Procurement Processes
How Blockchain, Machine Learning, and Virtual Reality can enhance
Collaboration and Competitive Advantage
How Blockchain, Machine Learning, and Virtual Reality can
reduce Supply Chain Risk Factors
How to communicate the Business Case for Blockchain, Machine
Learning, and Virtual Reality

5. Traditional View of Procurement
We save money, support operations, and reduce risks
Cumbersome way
Fragmented way
Error Prone way
Reactive way
Siloed way
Does it have to be like this?

6. What is Blockchain?:
 Decentralized Public Ledger
 Recording Platform for Crypto Transactions
 Maintained across a network of linked peer-to-peer computers
How does Blockchain works?:
1. Organization or Person Request to purchase something. (Support Operations)
2. Request goes to a Inter-Connected Network of Computers. (Cost/Cycle Time Reduction)
3. Verify the Transaction, leveraging Smart Contracts, Digital Records, Visible on Network. (Cost/Risk Reduction)
4. Add Transaction(Block) to a Block of Transactions to be deployed in to a Public Ledger with Date Stamp
5. Add Block into Irreversible Permanent Record to Complete Transaction. (Fraud Prevention)
Benefits:
 Reduction in TCO(Total Cost of Ownership)
 Reduction of Fraud
 Reduction in Cycle Time
 Increase Visibility
 Increase in Collaboration

7. Big Data Analytics: What is Machine Learning?:

8. Big Data Analytics / What is Machine Learning
Benefits:
Enhanced Collaboration
Enhanced First Pass Yield, Reduce Waste
Increased OEE, Reduce 6 Big Losses
Greater than 10% Value Add
Reduced Inventories
Reduced Costs
Reduced Total Cost of Ownership
Enhanced Demand Supply Management
Enhanced Forecasting Models
Competitive Advantage
Optimized Procure to Pay Processes
Optimized Source to Contract Processes

9. Dock-To-Stock – An arrangement where materials bypass an incoming quality
inspection and are moved straight from the receiving dock to the warehouse.
JIT – Short for “Just In Time,” JIT inventory management is an approach where
Purchasing strives to have no inventory, instead relying on suppliers to deliver
material as soon to the time it is needed as possible.
Kanban – A strategy for moving materials in a multi-stage production
environment. The overriding philosophy is that materials are moved to the next
stage of the production process only when the next stage actually needs those
materials as opposed to movement according to a schedule or forecast.
.
Leverage Blockchain, Machine Learning, Virtual Reality to enhance collaboration
to Realize and Optimize PULL Systems and Enhanced Forecasting Models

10. Some contributors to Bullwhip Effect
Disorganization
Poor Communication
 Poor Demand Information
Leverage Blockchain, Machine Learning, Virtual Reality to enhance collaboration to
prevent inventory build up in Supply Chains "Bull Whip Effect”
The bullwhip effect is a phenomenon that describes how minor demand fluctuations by retailers causes significantly
larger fluctuations in demand at the manufacturer, raw material supplier, distributor, and wholesaler levels
Customers Manufacturers
It is more than Price!!

11. Leverage Blockchain, Machine Learning, Virtual Reality to enhance collaboration to
Enhance Strategic Systems Thinking, Value Analysis, and Value Engineering
It is more than Price!!

12. Leverage Blockchain, Machine Learning, & Virtual Reality to enhance collaboration to
Enhance Strategic Systems Thinking, Value Analysis, and Value Engineering
It is more than Price!!
Look for Strategic Cost Reduction

13. It is more than Price!!
the Business Case for Blockchain,
Machine Learning, and Virtual Reality