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

State of Supply Chain Automation

“Buzz Overload”?

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”?

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

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

7 Strategies to Avoid

Supply Chain Automation

Overkill

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.

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

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

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

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

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

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.

7) Be Creative With Your Automation

Make specific processes disappear

American Apparel

Become transparent across your supply chain

Unilever – “radical supply chain transparency”

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

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

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

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

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

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.

www.takesupplychain.com

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All other trademarks are property of their respective owners.

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