Bi scm presentation - Using Business Intelligence to Optimize your Supply Chain
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1Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Vispi MunshiFounder - ERP Indiavmunshi@erp-india.comhttp://www.erp-india.com
2Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Today’s Agenda
- Introduction
- What is Supply Chain Management (SCM)
- Supply Chain Functions
- What is Business Intelligence
- Data Analytics
- Applying BI to the Supply Chain
- Supply Chain Intelligence System
- Measuring Supply Chain performance
- Supply Chain Scorecard
- Future, Conclusion, Q&A
3Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Ground Rules
- Please turn mobile ringer to SILENT MODE
- If you have to take a call, please leave the room and then start talking
- Questions can be asked any time
- Before asking question, raise your hand
- No talking with each other
- Disagreements allowed, but no disrespect
- Timeframe awareness
- Lets learn from each other and increase our knowledge
4Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Introductions
- Full Name
- Where do you work (Company/Consultant/Student etc)
- Your job designation and responsibilities
- Any BI tool you have already used?
- Any Supply Chain experience?
- Expectation from this workshop
5Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
What is Supply Chain Management
Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system.
6Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Supply Chain Overview
Warehousing
Warehousing
Transportation
Transportation
Vendors/plants/portsTransportation
Factory
Transportation Customers
Informationflows
7Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
FocusCompany
Suppliers
Supplier’ssuppliers
Customers
Customers/End users
Acquire Convert Distribute
Product and information flow
8Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Key SCM Functions
- Loose partnering with Suppliers, Suppliers of Supplier, Contract Manufacturers, Wholesalers, Distributors, Dealers, Logistics Partners, Retailers, Service Providers
- http://www.youtube.com/watch?v=wLNdDSYqhNw
- Demand forecasting
- Propagation to suppliers (Demand Management)
- Lead time estimation and propagation towards manufacturer (Order Fulfillment)
- Efficiency in Inventory Management (Warehousing)
- Automated orders and payments (pricing determined in advance, EDI)
- Supplier Relationship Management
- Logistics Management
- Manufacturing coordination
- Information sharing across companies in the chain
9Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
What is business intelligence?
Business Intelligence is a term generally used to identify a class of Information System applications useful for supporting operational, tactical and strategic decision making of a organization.
BI deals with producing (and presenting) Accurate, Relevant and Timely (ART) INFORMATION from integrated data.
Not Accurate: Users loose faith in system
Not Relevant: Users ignore the system
Not Timely: Users find alternatives to the system
10Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
BI System Anatomy
BACK-ENDData Collection and
Integration Tools
ERP
Ecomm
CRM
Files
….
Data Mart
Forecasting, Mining
PRESENTATION
FRONT-END
Analytics, Visualization, Dashboards, …
DISTRIBUTION
Alerts, Email, Mobile, Intranet ….
11Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Backend BI Tools: Used for collection, integration and consolidation of data from various sources.
Intermediate BI Tools: Allows users to create forecasts and identify trends (data mining) from the data.
Frontend BI Tools: Provides users with a interactive and intuitive interface to view the information generated.
12Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
- Based on multi-dimensional view of data (cubes)
- Pivot Table demo
- Features for drilling in and across data
- Slicing and dicing of data
- Graphics capabilities
- Similar to Excel
- Exception reporting
- Data Analyst would use such tools and create Reports/Analysis/Graphs (objects)
- These objects would be supplied to Executives using Dashboards, Alerts etc.
Data Analytics (New Age Decision Support Systems)
13Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Multi-dimensional Data
14Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
High-end: Business Objects, OBIEE, Microstrategy, …
Open Source: http://en.wikipedia.org/wiki/Business_intelligence_tools
Data Analytics Tools in Market
15Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Dashboards and Alerts
- Dashboards are collection of reports/analysis/graphs
- Alerts are specific events that the system finds and sends a email/sms etc to the executive
- Key Performance Indicators (KPI’s) can be set and linked to alerts
- Linking across objects provides executive with ability to go through the generated information in a very intuitive manner
16Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
17Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Data Mining
- Also known as KDD (Knowledge Discovery in Databases)
- Involves use of large data sets
- Involves uses of Statistical Methods, Database Systems and Artificial Intelligence
- The objective is to discover patterns or knowledge from existing data
- Involves four step process: Data Preparation (classification), Hypothesis (user provided guidance), Discovery (of knowledge) and Validation (of discovered knowledge against hypothesis)
- High end tools: SPSS, SAS, …
- Open Source: http://en.wikipedia.org/wiki/Data_mining
18Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Using BI in the Supply Chain
- Demand Forecasting
- Inbound dashboards and alerts (Supply bottlenecks)
- Outbound dashboards and alerts (Distribution efficiency)
- Supplier Analysis using Data Analytics
- Purchase Order Performance Analysis
- Warehouse Utilization Analysis
- Inventory Turns Analysis
- Distribution Channel Analysis
- Simulation of Change Impact (Pricing, Batching Orders, Warehouse location)
- Alerting Partners (suppliers, contract manufacturers, transporters, distributors)
19Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Supply Chain Intelligence System
BACK-ENDData Collection and
Integration Tools
SCM
WMS
Partner Systems
….
SCI Mart
Forecasting, Mining
PRESENTATION
FRONT-END
Analytics, Visualization, Dashboards, …
EXTRANET ACCESSTo
PARTNERS (SCI Portal)
ALERTS by email and mobile
to SC ManagersAnd Partners
20Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Measuring Supply Chain Performance
- Key factors: Speed, Quality and Cost
- Suppliers and Contract Manufacturers: On Time Delivery, % Returns, % Compliance, Lead Time Consistency, Comparison with Market Price
- Transporters: On Time Delivery, % Damage, Transport Cost per Unit
- Distributors: Ordering Consistency, Information Sharing, Complaints from Dealers/Customers
- Inventory: % Automation, Optimizing Turns (Velocity), Shelf Age, Holding Cost
- Warehouse: % Accident/Damage, Picking Time, % Utilization of space, Manpower cost
- Total: Summary for Speed, Quality and Cost, Trust and Transparency
21Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
Supply Chain KPI Scorecard
Speed Quality Cost
Suppliers
Inbound Transport
Warehouse
Outbound Transport
Distributors
Total
22Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Optimize your Supply Chain
ConclusionQ&A
Thank You
vmunshi@erp-india.com
98250 11489
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