Logistics Breakout – Cindi Hane, Elemica: “Linking Business Strategies to Logistics”
Achieving Greater Supply Chain Visibility - · PDF fileAchieving Greater Supply Chain...
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Achieving Greater Supply Chain
Visibility
07 MAY 2014 Chris Cameron
Senior Solutions Architect, Elemica
Session Context
This breakout session is the companion to the earlier session, “Project Cornerstone; A Journey Towards Superior Logistics Visibility” This presentation will go deeper on the design principles and key tools to achieve the goal
Elemica Supply Chain Operating Network
Model: Data & Functional
Your Company
Dominant Partner(s)
A B
Global Logistics Visibility
Secondary Sources
Tertiary Sources
Analytics
Secondary Service Providers
Comparative Observations from the Industry
Comparative Observations
A TREND Clients are moving this direction rapidly using multiple strategies ranging from; (*Gartner, “How to Enable End-to-End Supply Chain Visibility”-E2EESV)
Stair-step approach in multi-year
phases
Sensing Demand / Constraint
adaptive SC (Revenue
Focus )
Optimized (Cost Focus)
Efficient (Cost
Focus)
Comparative Observations
GOAL: An Operating E2ESCV Model to achieve hard cost savings and revenue enhancements; • Inventory savings of up to 20% of
value • Days Inventory on-hand decrease
from +10 to <7 • Forecast accuracy increase up to 25% • Improved SLA to consistent 98%
– Cost – Carrier performance – Revenue – Customer deliveries
• Freight cost reductions between 3.5% and 5% of total volume
• Workforce reduction (aversion) by 10%
Efficient reporting and
clean data (90%)
Build in signal points and planned
(pre-approved) actions
Design Principles
Design Principles
Global Logistics Visibility Platform Triangulation More than 1 data source is required … More than 1 service provider is doing the service
Validation Key validations capabilities must be present to ensure that the data can be validated.
Adjudication Once validated the platform must be able to render judgment and alert to discrepancies… see gaps in data and make corrections where needed.
“…The ability to provide a unified e2e tracking visibility requires a complex multi-enterprise integration. As a best practice, this integration needs to be outsourced to a third party service provider for connectivity, data collection, data validation, and in some cases, triangulation to adjudicate data from multiple sources for the same shipment data set…” DuPont, 2014
Result of Design Tool View
Key Tools to Build
#1 – The Network is King
Network Multi-enterprise, multi-mode, multi-standard, technology agnostic Built for speed, mass onboarding and growth
Applications Solutions to meet specific business process needs across key supply chain functions. Nodes to enable data flow
Visibility solutions must use a NETWORK + APPS in a 60/40 Split
Agnostic & Scalable
Traffic Enablement & Enrichment
#2 - Own the Data
There is NO single source of logistics data. It is a fragmented world driven by our procurement policies. It has to be retrieved.
Single Sourcing Data does NOT complete the picture: Data from dominant partner(s) does not provide the complete set needed for evaluating cost-to-deliver and cost-to-serve trade-offs, consistent with demand-driven value
network (DDVN) supply management. (Gartner Maturity Model Application)
*Best in class behavior: Leaders take control of their own supply chains; sitting in the middle of dozens of supply chain partners, sharing data and adopting universal standards for bar coding, track and trace and data exchange, delivering advantages of; • 1.7 times as likely to find, within a reasonable time, and access OUTBOUND
supply chain data needed for decision making. • 1.35 times as likely to have online visibility into INBOUND in transit status. • 1.56 times as likely to automate or re-redirect in transit flows and orders to
balance higher demands or inventory imbalances in transit. • *Aberdeen Group, Supply Chain Visibility Survey 2013
#3 – Business Rule Projection
Core ERP QuickLink Email
QuickLink ERP
QuickLink ERP
QuickLink Mobile
QuickLink Mobile
QuickLink Portal
QuickLink Portal
Web Browser
Fax & Email
Tabl
et
Outside-In Commerce Engine Feed All Business Communications Into the ERP and Augment the system of record *Gartner Supply Chain Maturity Model; “How to Enable End-to-End Supply Chain Visibility”-E2EESV
Summary
• Triangulation • Validation • Adjudication
Design Principles
• Scalable Network • Own the Data • Business Rule Projection
Key Tools to Build