Supply Chain Update Rob Cramer Director, Product Management, QAD Inc. QAD Explore 2012.

Supply Chain Update

Rob CramerDirector, Product Management, QAD Inc.

QAD Explore 2012

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The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

Safe Harbor Statement

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• The Effective Enterprise• Themes:

- Visibility- Agility- Complexity (globalism)- Metrics

• New and under development• Next steps• Questions

Agenda

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“An Effective Enterprise is one where every business process is working at peak

efficiency and perfectly aligned to the company’s strategic goals. ”

Effective Enterprise

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• 787 Dreamliner- Suppliers blamed

• Supply chain stole Christmas- Mattel orders massive recall due to supplier

problems (Nov. 2007)

• Tsunami & iPad

Supply Chain Issues

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Role of supply chain? Invisibility

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Supply Chain Solution

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• Visibility• Agility• Complexity (globalism)• Metrics

Themes

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“Today’s supply chain is a result of actions taken in the past”

“Tomorrow’s supply chain will be the result of actions that we take today”

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• Volatile market resulting in high uncertainty in demand

• Shrinking margins due to price pressure• Rising customer service expectations and

diminishing brand loyalty• Increasing global competition• Business pressures to utilize expensive

assets with maximum efficiency• Global proliferation of value chain partners

Visibility

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• Improve on-time delivery performance• Improve responsiveness• Proactively alert customers of late

shipments• Reduce lead times and variability• Increase likelihood of mid-term change

success• Monitor carrier activities• Regulatory and security issues

Visibility – Why It Matters

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Reality Causes “Moments of Truth”

Supply Chain Update

STIC

KY

GLUE

Product

SupplyDemand“Balance”

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Supply Chain Orchestration

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SuppliersPartners

ManufacturersAssemblers

DistributorsWholesalers

Customers

Consumers Buyers

Transporters Transporters Transporters

Network Conductor

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Supply Chain Portal

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Supplier Performance

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QAD On Demand

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• Market sensitive (Demand Driven) = supply chain is capable of reading and responding to real demand

• Rapid sharing of information through the supply chain

• Network as a confederation of partners focused on customer need

• Joint product development, common systems & shared, standardized information

Agility

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• Rapidly align network and its operations to dynamic and turbulent requirements of customers

• Proactively anticipate changes and seek new emerging opportunities

• Rapidly changing preferences make it more important bring new products quickly

• Protection from forecast uncertainty instead of inventory

Agility – Why It Matters

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QAD TMSSupply Chain Update

SCP & Transportation Tracking

• Rules & Workflow Enabled• Multiple Deployment Options• Content Driven

Base

Freight Management

Global Trade Management

Package Exception Management

Trade Compliance

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TMS Workflow Portal

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• Source of competitive advantage• Breaking up processes that were once

within a single factory & dispersing them across many countries without losing control

• Minimize supply chain logistics & inventory costs

• Diversified, specialized knowledge base• Reduced cost and improved

responsiveness

Capitalizing on Complexity

Supply Chain Update

20US Consumer

China Fabric

s

BangladeshManufacture

NY Desig

n

• “Right outside the gates” means anywhere on the planet

• Means assembling armies of small & medium business that act as one

• Recognizes that networks can be smarter than individuals

Complexity – Why It Matters

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Rela

tion

sh

ip

wit

h c

usto

mer

Predictability of demand

“Lean”

Loose

Tight

High

“Fully Flexible”

“Continuous Replenishmen

t”

“Agile”

“Fully Flexible”

Low

1 2

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Not One Supply Chain

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QAD WarehousingSupply Chain Update

Putaway Task management

Cross docking

Walk sequencing

Wave planning

Picking

Shipping

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QAD EDI eCommerce

Supply Chain Update

QADEnterprise

Applications

Other Apps

Trading Partner Library

EDI eCommerce

Translator

GentranIntegratio

nSuite

EDIMessages

Engine Engine

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Metrics

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• Focus on overall supply chain metrics driven by the market and customer needs.

• Supply chain = strategy … • Supply chain = supporting technology +

applications + skills + competencies• Determine the RIGHT metrics

Metrics

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• If you want to influence the game, make sure that you determine how score is kept!

• It’s how to communicate with top management

Metrics – Why It Matters

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Leaders .... Make Balanced Trade-offs Across the Business

Supply Chain Update

Supply Chain Costs

InventoryPerfect Orders

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Related Metrics Analysis

Supplier Performan

ce

Cost of poor quality

Order fulfillment efficiency

Procurement efficiency

Supplier delivery performance

Delivery schedule adherence

Number of formal disputes

Ratio of price paid to price quoted

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Related Strategies

SupplierDelivery

Performance

Track /monitor supplier performanceManage outsourced manufacturing

Manage supply chain

Automated trade compliance

Improve planning

Metrics and KPIs

Collaborative messaging

Alerts and e-mail notification

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New and Under Development

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TPM Business Processes

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Plan

Execute

Settle

Analyze

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Budgeting/Accounting

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Summary

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• Effective supply chain management is ”invisibly” balancing demand, supply and product

• Future competition will be between supply networks which have the greatest collaboration and visibility

• Importance of utilizing the right combination of metrics and solutions to meet customer demand

• QAD’s supply chain solutions provide a wide range of tools to help balance, collaborate, and measure the effectiveness of your supply chain

Summary

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• Attend these related sessions:- Driving to the Effective Enterprise with KPIs

– May 9: 1:30pm

- QAD's Business Process Management- May 9: 2:45pm

- Shipment Execution for Domestic and International Movements- May 9: 4:15pm

- Business Intelligence: A Closer Look- May 9: 4:15pm

- Three Inventory Reduction Techniques- May 10: 9:45am

- Business Intelligence Workshop (Thursday morning)

• Stop by the Solutions Expo• Arrange a Supply Chain Q-Scan

Next Steps

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Rob CramerDirector, Product Management [email protected]

Questions & Answers

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www.qad.com© QAD Inc 2012