Supply Chain Execution- Solving business issues or just yet more headaches ? Presented by: David L Marshall PreCognition Ltd Business consulting in technology.

Supply Chain Execution-Solving business issues orjust yet more headaches ?

Presented by: David L MarshallPreCognition Ltd

Business consulting in technology

In the land of the blind the one eyed man is king- why visibility dramatically reduces returns

Return on Investment, strategists dream or an FD’s real business case scenario ?

Soft World or hard reality - How do you select and implement the right software project to provide hard benefits

Collaboration or Integration, how SCEM is the logical progression from electronic trading

Agenda

Supply Chains are under Pressure

• Globalization• Less vertical integration• Brittle supply chain

Supply uncertainty

Demand uncertainty

• Consumer behavior• Demand Forecast Error• Shorter Product Life Cycles• Longer Supply Chains

Critical business issues by type

MARTEC International©

Business process

Supply chain

visibility

Technical constraints

OtherCommunications

22%

15%

9%

6% 5%

% of total responses

30

27

24

21

18

15

12

9

6

3

0

Supply chain visibility

Supply chain

visibility

Financial No benefitsSuppliers

38%

22%

14%

12%

7% 6%

% of total responses

Stock Customers

MARTEC International©

Benefits - Improving Information Exchange

Supply chain visibility

Return on Investment, strategists dream

or an FD’s real business case

scenario ?

Optimisation ?

Firms overspend on optimisation . .

Average budgeted amount: €9.7mAverage amount spent to date €16.9 m

0%

20%

80%

4%

28%

68%

0% 20% 40% 60% 80% 100%

Less thanexpected

As expected

More thanexpected

Cost

Time

“How much did your supply chain optimisation implementation cost?

How long did the project last?”

Base: 25 European companies implementing supply chain optimization

Direct Communication

Fax/E-mail Paper

1%

11%

2%

76%

9%

Traditional EDI

% of total responses

Web EDI

100

95

90

85

80

75

70

65

60

55

45

40

35

30

25

20

15

10

5

0

UK Suppliers

Direct Communication

Fax/E-mail Paper

0%

3% 3%

87%

7%

Traditional EDI

Web EDI

100

95

90

85

80

75

70

65

60

55

45

40

35

30

25

20

15

10

5

0

100%

EU Suppliers

MARTEC International©

Communication methods 2003

Low exploitation of available technologies

11%

3%

Traditional EDI and Web based electronictrading – poor take up

Is EDI dead ??

Or just pining ??

To develop adaptive supply networks

firms must embrace three principles

AdaptiveSupply Network

3. Implement adaptively

Deploy supportingtechnologies incrementally

2. Operate adaptivelyManage business processes

by exception

1. Organize adaptivelyNew structure

and performance metrics

implemented toenable organizational

flexibility

Adaptive supply networks

Kewill integrated solutions

ASNs let firms proactively respond

Optimisation focus

Input for Input fordecision-making

Problem-solving

Origin of demandinformation

Executive imperative Cost-cutting

Efficiency

Historical data

CentralisedManual

Crystal ball

Efficiency and agility

Leading indicators

DecentralisedSoftware assisted

Point-of-sale data

Risk management

In today’ssupply chains

In adaptive supply networks

“40% growth in sales and profits

over 3 years”BUT• No increase in stock• No increase in warehouse space• Improved customer service• Maintain product profit margins

The FDs objectives...hard realities

• Real-time order processing• Supply chain event

management• SLA / KPI management• Reduce on hand stock• Cross dock integration• Automated billing

Moving to Direct Dispatch

Direct Dispatch – removing DCs

• Improved efficiency • Direct dispatch from supplier to

customer• Supply chain collaboration

– suppliers– call centre – carriers

• Visibility of the complete supply chain

The Solution from Kewill Systems

Kewill provision of exceptions visibility

Customer JDW Kewill Supplier Carrier

Customer JDW Supplier Carrier

Kewill

Current System

New System

Adaptive workflow from Kewill

• Reduced order cycle time• Increased range and volume of

products with no increase in stock or commitment

• Improved customer service• Reduction in cancelled orders• Reduction in supply chain costs

Benefits derived from Kewill

To adaptive supply networks

Actions can be taken to reduce the likelihood of returns

Pre-emptive shipment reporting

Choosing the right software

Soft worlds – Hard realities

Choosing the right software

Collaboration in action…. Whiteboards for Supply Chain partners

Shipment status alerts

PreCognition

Working together making it stronger

www.precognition.biz

[email protected]