Cloud Computing: Aspirin for Supply Chain Headaches · SUPPLY CHAIN MANAGER CLOUD NEXT-GEN ERP SUPPLY CHAINS FORTUNE 1000 COMPANIES PUBLIC SECTOR SMALL & MEDIUM ENTERPRISES FAST EASY
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M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Cloud Computing: Aspirin for Supply Chain HeadachesFebruary 16, 2016
WWW.MURANOCORP.COM©Copyright 2016. Property of Murano Corporation. All rights reserved.
OUR MISSION
HELP ORGANIZATIONS BUILD RESILIENT, INTEGRATED,
STREAMLINED, AND EFFICIENT (RISE) SUPPLY CHAINS
SUPPLY CHAIN MANAGER
CLOUDNEXT-GEN ERP SUPPLY CHAINS
FORTUNE 1000 COMPANIESPUBLIC SECTORSMALL & MEDIUM ENTERPRISES
FASTEASYAFFORDABLE
FOCUS ON YOUR CORESIMPLIFY OPERATIONS‘RISE’ SUPPLY CHAINS
SWITCH FROM OLD TO NEW
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Enterprise Resource Planning
Online B2B Marketplaces
Big Data & Analytics
Supplier Relationship Management
Supply Chain Visibility & Integration
Integrated Job Portal
Customer Relationship Management
Supply Chain ManagerCloud Supply Chain Resource Planning Software
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
Supply Chain Manager Webinar on Feb 23, 2016Registration Details: www.muranocorp.com
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
Key Cloud Takeaways
Small & Medium Enterprises can Automate Operations in 3 Months
Fortune 1000 Enterprises can Rapidlyo Automate Growth Market Business Units
o Deploy a Complimentary Cloud App
Integration is the Holy Grail
Establish an Integrated and Resilient Supply Chain Network of the Future
Embrace Cloud: It is Supply Chain Professional’s Best Friend
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Cloud Computing is … Cloud Computing is NOT …
Ubiquitous If you can NOT easily access your ERP from outsideyour offices using an Internet Browser
Convenient If you can NOT access your ERP from your iPad
On-Demand Network Access If you can NOT add new users, lines of business, geographies easily without having to rely on expensive consultants
Shared Pool of Configurable Computing Resources (Networks, Servers, Storage, Applications, and Services)
If you host your ERP instance in a remote data center
Rapid provisioning (Speed) If you have wait many years to bring online a new business unit
Minimal management effort or service provider interaction (Effort)
Relying on expensive consultants for many years to implement ERP is NOT Cloud Computing
Source: National Institute of Standards and Technology (NIST) defines Cloud Computing (http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf)
WWW.MURANOCORP.COM
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Agenda
‘Supply Chain Headaches’ Remedied with Cloud Computing
Small and Medium Enterprise Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing
Fortune 1000 Enterprise Cloud Options
Supply Chain Network of the Future
Seven Steps to Successful Cloud Adoption
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Speaker Bio
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Sree RajagopalanPresident and CEOMurano Corporation68 T.W. Alexander Drive, Suite 207Research Triangle Park North Carolina 27709sr@muranocorp.com919-314-2897 (O)919-996-9041 (M)
o 23 years of Fortune 500 Experience o Help Organizations Solve Supply Chain Challenges
using Innovative and Modern Technologyo Manufacturing (with focus on Medical Device
Industry), Distribution, and Consumer Packaged Goods (CPG) Industries
o Responsible for Sales, Marketing & Implementation of Murano Corporation’s flagship Enterprise Cloud Software, Supply Chain Manager
o Frequent Speaker at APICS Chapter Meetings
WWW.MURANOCORP.COM
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
What causes Bullwhip Effect in Supply Chains?
©Copyright 2016. Property of Murano Corporation. All rights reserved.
a. Lack of synchronization among supply chain members
b. Supply patterns do NOT match demand patterns
c. Lack of collaboration and communication between supply chain members
d. Lack of information visibility into inventory levels, anticipated production, and material in transit
e. All of the above
WWW.MURANOCORP.COM
©Copyright 2016. Property of Murano Corporation. All rights reserved.
TRIGGER SYMPTOM IMPACT MEDICINE MONITOR
Component Deliveries
Rush Customer Orders
Invoicing Errors Profits (-)
Air Freight Charges
Cost of Goods Sold (+)
E-Invoicing & Spend Analysis
Supply Chain Collaboration
Parts ShortagesProduction Shutdown
Line Down Costs
Supply Chain Visibility
Customer Demand
Higher Component
Prices
Cost of Goods Sold (+)
Online Marketplace
Direct Spend
On-Time In-Full (OTIF)
Inventory Turns
Gross Margin
TRIGGER SYMPTOM IMPACT MEDICINE MONITOR
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Agenda
Supply Chain Headaches Addressed by Cloud Computing
Small and Medium Enterprise Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing
Fortune 1000 Enterprise Cloud Options
Supply Chain Network of the Future
Seven Steps to Successful Cloud Adoption
©Copyright 2016. Property of Murano Corporation. All rights reserved.
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Lega
cy F
ore
cast
-To
-Cas
h P
roce
ss
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Creates Production plans using
Spreadsheets
Manually Creates Production Orders and
Shares Orders with Production Staff
Production Order
Goods Receipt from Vendor
Goods Receipt from Production/
Shipping to CustomerInvoice sent to
Customer
Forecast-To-Cash Process
Payment Received from Customer
ASN Updates from Logistics Providers
Update Bank Account
Advance Ship Notice (ASN) for Suppliers
POsto
Suppliers
Creates Production plans using
Spreadsheets
Manually Creates Production Orders and
Shares Orders with Production Staff
Production Order
Goods Receipt from Vendor
Goods Receipt from Production/
Shipping to CustomerInvoice sent to
Customer
Forecast-To-Cash Process
Payment Received from Customer
ASN Updates from Logistics Providers
Update Bank Account
Advance Ship Notice (ASN) for Suppliers
POsto
Suppliers
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Lega
cy F
ore
cast
-To
-Cas
h P
roce
ss
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Manual
Error Prone
Open Loop
System
Time-Consuming
Arbitrary
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Clo
ud F
orec
ast-
To-C
ash
Proc
ess
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Sales Forecasts and
Customer Orders
Production plan
Forecast –Driven Demand Planning/MRP (versus Reorder Points) and Use of Alternate Materials)
Production Order
Goods Receipt from Vendor
Goods Receipt from Production/
Shipping to CustomerInvoice sent to
Customer
Forecast-To-Cash Process
Payment Received from Customer
ASN Updates from Logistics Providers
Update Bank Account
Advance Ship Notice (ASN) for Suppliers
POsto
Suppliers
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Clo
ud F
orec
ast-
To-C
ash
Proc
ess
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Sales Forecasts and
Customer Orders
Production plan
Forecast –Driven Demand Planning/MRP (versus Reorder Points) and Use of Alternate Materials)
Production Order
Goods Receipt from Vendor
Goods Receipt from Production/
Shipping to CustomerInvoice sent to
Customer
Forecast-To-Cash Process
Payment Received from Customer
ASN Updates from Logistics Providers
Update Bank Account
Advance Ship Notice (ASN) for Suppliers
POsto
Suppliers
Automated
Accurate
Integrated
Fast
Efficient
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
What Factors can Affect Sales Forecasts?
©Copyright 2016. Property of Murano Corporation. All rights reserved.
a. Sales Demand Patternsb. Economic Conditionsc. Competitor Actionsd. Market Researche. Product Mixesf. Pricing and Promotional Activitiesg. All of the above
WWW.MURANOCORP.COM
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Sales & Operations Planning (S&OP) in the CloudBusiness Benefits
©Copyright 2016. Property of Murano Corporation. All rights reserved.
SalesGrowth
Cost Reduction
Working Capital Improvement
+2-4%
o Improved Serviceo Reduced Out-of-Stockso Improved New Product Launcho Improved Promotions Effectiveness
5-10%
o Material Cost Reductiono Freight Cost Reductiono Labor Productivity Improvemento Fixed Cost Optimization
20
-3
0%
o Finished Goods Inventory Reductiono Raw Materials and WIP Reduction
Source: http://www.supplychain247.com/article/top_performer_benefits_of_effective_sales_operations_planning
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Sale
s &
Ope
rati
ons
Plan
ning
(S&
OP)
in t
he C
loud
Proc
ess
Sales ForecastingPredict future sales based on historical sales data, analysis of market trends, customer surveys and sales estimates
Demand PlanningValidates the sales forecast, considers the production capacity and incorporates statistics to meet market demand
Supply PlanningReview available capacity and scheduling the production based on available resources, costs and duration
Pre-S&OPBalance between Demand and SupplyCross-Functional Teaming
Executive S&OPData-Driven Decision MakingClosed Loop Systems
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.
JAN FEB MAR APR MAY JUN JUL AUG
SALES X X X X X X X X
OPERATIONS X X X X X X X X
INVENTORY X X X X X X X X
Sale
s &
Ope
rati
ons
Plan
ning
(S&
OP)
in t
he C
loud
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Agenda
Supply Chain Headaches Addressed by Cloud Computing
Manufacturing Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing
Fortune 1000 Enterprise Cloud Options
Supply Chain Network of the Future
Seven Steps to Successful Cloud Adoption
©Copyright 2016. Property of Murano Corporation. All rights reserved.
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Operational Agility
Growth Markets
Downward Price Pressure
TREND
Cloud Technology
“Glocal”
Operational Efficiency
RESPONSE
Legacy ERP
Legacy ERP
Legacy ERP
CHALLENGE
“New Normal” for Multinationals
Sales Only Country Operations
Local
International
Sales & Manufacturing Country Operations
Growth Strategic Business Units
Complex Organizational Hierarchies and Business Models
Core OperationsCore Operations
Core Operations
Growth Strategic Business UnitsGrowth Strategic
Business Units
Sales Only Country Operations
Sales Only Country Operations
Sales & Manufacturing Country OperationsSales & Manufacturing
Country Operations
Global HQ
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Sales Only Country Operations
Local
International
Sales & Manufacturing Country Operations
Growth Strategic Business Units
Complex and Heterogeneous Technology Footprint
Core OperationsCore Operations
Core Operations
Growth Strategic Business UnitsGrowth Strategic
Business Units
Sales Only Country Operations
Sales Only Country Operations
Sales & Manufacturing Country OperationsSales & Manufacturing
Country Operations
Global HQMultiple Software
o Vendorso Instanceso Versions
SlowHeavyComplexParalyzing
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Sales Only Country Operations
Local
International
Sales & Manufacturing Country Operations
Growth Strategic Business Units
“Glocal” Enterprise Software Model“New Normal” | Grow Your Markets | Faster, Leaner, and Simpler
Core OperationsCore OperationsCore Operations
(Legacy)
Growth Strategic Business UnitsGrowth Strategic
Business Units(Cloud)
Sales Only Country Operations
Sales Only Country Operations
(Cloud)
Sales & Manufacturing Country OperationsSales & Manufacturing
Country Operations(Cloud)
Global HQ(Legacy)
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Sales Only Country Operations
Local
International
Sales & Manufacturing Country Operations
Growth Strategic Business Units
“Glocal” Enterprise Software Model“New Normal” | Grow Your Markets | Faster, Leaner, and Simpler
Core OperationsCore OperationsCore Operations
(Legacy)
Growth Strategic Business UnitsGrowth Strategic
Business Units(Cloud)
Sales Only Country Operations
Sales Only Country Operations
(Cloud)
Sales & Manufacturing Country OperationsSales & Manufacturing
Country Operations(Cloud)
Global HQ(Legacy)
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Two Major Softwareo ERPo Instanceso Versions
FasterLeanerSimplerEnabler
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
Suppliers
Banks
Logistics Providers
Contractors
ERP/Legacy
Systems
Contract Management
Requisitions
PurchasingFinancials
Spend Analysis
Strategic Sourcing
Sourcing ProjectsShortlist VendorsRFxVendor Selection ScorecardSelect Vendor
Manage Contracts and CatalogsVendor OnboardingVendor PortalVendor GeotaggingVendor DiversitySustainability
Search CatalogsCheck Prices Check AvailabilityCreate Online Shopping CartsCreate RequisitionsRequisition Workflow & Approval
Create Purchase OrderAdvance Ship Notice (ASN)Goods ReceiptReturnsQuality InspectionsDelivery TolerancesSupplier Performance
Vendor InvoiceE-Invoicing2-Way/3-Way MatchVendor Payments
Opportunity IdentificationCompliance TrackingPerformance ManagementCommodity HedgingCurrency HedgingDiversity ManagementSupplier Risk ManagementCommodity ForecastingReverse Auction
Features in this pen are in SCM roadmap and will be available at no additional cost
Cloud Supply Chain ManagerSource-To-Pay Process Features
Level 4
Level 3
LEVEL
Level 2
Level 1
Level 0
Manufacturing Control
Business Planning & Logistics
Manufacturing Operations
Management
DOMAIN
Production Process
o Sales & Operations Planning
o Demand Planning
o Planning Horizon: Days, Weeks, Months
ACTIVITIES
o Production Planning & Scheduling
o Quality Inspection
o Horizon: Seconds, Minutes, Hours
o Manual and Automated Oversight of Production Process
o Process Improvements
o Physical Production Process
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Agenda
Supply Chain Headaches Addressed by Cloud Computing
Manufacturing Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing
Distribution Industry Case Studyo Distributor Solves Quote-To-Cash Business Process Challenges Using Cloud Computing
Supply Chain Network of the Future
Seven Steps to Successful Cloud Adoption
©Copyright 2016. Property of Murano Corporation. All rights reserved.
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
Cloud Supply Chain ManagerIndustry Supply Chain Solutions
Suppliers
Logistics Providers
Contractors
Ma
nu
fac
ture
r
Product Specs Shipments
Sales Forecasts Capacity
Material Demand Transactions
Inventory Returns
CLOUD
Share Critical and Non-Confidential Supply Chain Information Securely and Expeditiously Easy to Implement and AdoptMinimal Infrastructure NeededReduce dependence on expensive and antiquated EDIGain Improved Supply Chain Visibility & IntegrationMinority and Disadvantaged Vendor Friendly
Port
alED
ID
irec
t In
tegr
atio
n
©Copyright 2016. Property of Murano Corporation. All rights reserved.
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Today, Amazon Sells 2.2 Million Products from 17 Categories to Businesses
©Copyright 2016. Property of Murano Corporation. All rights reserved.
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Supply Chain Insights Big Data Diversify New Geographies Integrated Predictive Analytics
Online Industry Marketplaces: Connecting Buyers and Sellers
B2C
Global
B2B
Marketplace
Cu
stom
ersSup
plie
rs
On
line
Sup
erst
ore
Spend Analysis
Logistics
Shipping
Inventory
Accounts Payable
Purchasing
Fulfillment
Accounts Receivable
Shipping
Customer Service
Transportation
Order Management
Inventory Visibility
E-Invoicing
Multi-Vendor Catalogs
Integrated ShipmentTracking
Integrated Online Marketplace
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
Agenda
Supply Chain Headaches Addressed by Cloud Computing
Manufacturing Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing
Distribution Industry Case Studyo Distributor Solves Quote-To-Cash Business Process Challenges Using Cloud Computing
Supply Chain Network of the Future
Seven Steps to Successful Cloud Adoption
©Copyright 2016. Property of Murano Corporation. All rights reserved.
MURANO CORPORATIONTHE VALUE C HAIN INTEGRATION COMPANY ©Copyright 2016. Property of Murano Corporation. All rights reserved.
Seven Steps to Successful Cloud Adoption
Identify Business Challenges and Expected Business Outcome(s)
Nominate a Business Champion and Sponsor
Build Supply Chain Partner Support
Establish a Cross-Functional/Cross-Supply Chain Pilot Team
Evaluate Cloud Options {pay close attention to Data Ownership, Security and Service Level Agreements (SLA)}
Implement New Processes and Cloud Technology
Measure Business Performance
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.
BUSINESS INTELLIGENCE MARKETPLACE
Requirement Cloud On-Premise
Supply Chain Visibility Y N
Supply Chain Collaboration Y N
Online B2B Marketplace Y N
E-Invoicing Y N
Spend Analysis Y N
Integrated Shipment Tracking (ASN)
Y N
Business Intelligence Y N
Multi-Vendor Catalogs Y N
CLOUD VERSUS ON-PREMISE
©Copyright 2016. Property of Murano Corporation. All rights reserved.
©Copyright 2016. Property of Murano Corporation. All rights reserved.
Enterprise Resource Planning
Online B2B Marketplaces
Big Data & Analytics
Supplier Relationship Management
Supply Chain Visibility & Integration
Integrated Job Portal
Customer Relationship Management
Supply Chain ManagerCloud Supply Chain Resource Planning Software
M U R A N O C O R P O R A T I O NThe Value Chain Integration Company
©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM
Supply Chain Manager Webinar on Feb 23, 2016Registration Details: www.muranocorp.com
ask
Sree RajagopalanPresident and CEOMurano Corporation68 T.W. Alexander Drive, Suite 207Research Triangle Park North Carolina 27709sr@muranocorp.com919-314-2897 (O)919-996-9041 (M)
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