Digital Supply Chain and Value Realization Areas for XXXX

Agenda
Challenges of XXXX and the need for Digital Transformation
XXXX Existing Value Chain Process and related IT Landscape
Key Digital Investment Areas and benefits on Supply Chain Metrics

Use Case : Improvement in Demand Forecasting Accuracy & Big Data

What kept you awake at last night?

High risk of
product
obsolescence

Relentless pressure
on margins

Higher levels of
inventory to
meet customer
service
requirements

Longer MFG lead time

and Increasing
supply chain
complexity
(outsourcing)

Need for Flexible

and Responsive
Supply Chain

Shorter
product life
cycles

Demand
volatility and
Poor
forecast
accuracy

A shrinking
market
window
sweet
spot

Achieve Operational Excellence & Minimize the risks that are emerging out of Known-Unknown Challenges

Achieve Operational Excellence and Improve Key

Supply Chain Metrics through Digital Supply
Chain Transformation

Value Proposition of Digital Supply Chain Solution

Leaders Holistic Approach
Operational Levers

Value Levers
1
Increase Revenue

Improve Customer
Experience

Greater customer satisfaction (Higher

market share, greater gross margin)

More competitive delivery availability

2
Free Cash Flows

$XX M / Yr.
Reduce Transportation
Costs

$XX M / Yr.
Reduce Operating
Expense

$XX / Yr.
Reduce Customs
Handling Costs

$XX M / Yr.
4
Reduce Facilities and
Handling Costs
Reduce Working
Capital

5
Reduce Overhead

6
CapEx

Lower System Related

Costs

Lower cost of goods sold- low freight

rates at each business unit
Lower raw materials and finished goods
inventory without sacrificing customer
satisfaction or raising logistics cost
Shorter order to cash cycle
Fewer physical assets (i.e. trucks, trailers
and much higher asset utilization)

What is Needed?
A Comprehensive Digital Supply Chain Solution Set that Links:
Strategic and Operational Decision Making with Key Digital Enablers
Design/Development of the Supply Chain with
Process Oriented & Metrics Driven
Transformation Programs , that will help to focus
XXXX , the following leading Industry Metrics

Demand Forecast Accuracy

On-Time In Full Shipments
Reduction in % of Expedited Orders
Production Planning Accuracy
Supplier Lead time Variability
Inventory levels measured at realistic COGS
Total Transportation Cost
Warehousing Cost

XXXX High Level Supply Chain Process Flows

Supplier

OEM

Warehouse

Distributors

Retailer/
Channel Partner

XXXX Digital Transformation Initiatives and related Value Realization Model

Key Changes

Increase Revenue

Improve Customer
Experience
XXX USD / Yr.

XXX USD / Yr.

Free Cash Flows

Improvement in On-time in
Full rate to Customer
through better Demand
Forecasting

Big Data
Predicative
Analysis

Improvement Service level to

Customer through better
Demand Driven Supply
Chain Planning and
Executions

Big data ,
Analytics, Mobility
and Cloud
Services

Time definite delivery and

End to end Shipment
Visibility through Advance
ERP logistics system

Mobility

Reduce
Operating
Expense

Reduce Total Supply

Chain Costs

XXX USD / Yr.

Reduce Working
Capital
XXX USD / Yr.

Reduce Capex

XXX USD / Yr.

3
Lower Overhead
Costs

Analytics
Collaborative
portal with LSPs
on Cloud

Sensors & Geolocation

XXX USD / Yr.

Digital Enablers

Reduction in overall
Inventory levels across
network through Inventory
Planning & management

Integration of
Predicative
Analytics

Network and routing

optimization

Big data ,
Analytics

Warehouse automation &

reduce facility handling cost

Robotics

Logistics Demand visibility

to LSPs resulting in better
capacity planning and
reduction in supply Chain
disruption

Collaborative
optimization portal

Strategic Sourcing

Vendor Score
Card and Big data

Augmented reality

App based
tendering

Exception Driven Demand

Driven Supply Chain Planning &
Execution Process

Big data ,
Analytics

Benefits of Digitization on Supply Chain Processes for XXXX

Existing IT
System for
Supply Chain
Management
Demand
Forecasting and
Planning

Degree
of
Change
Caused
by
Digital
Very
High

Dependencies

Areas Digital Supply

Chain Transformation
Integration of Big Data
Predicative Analysis

Impact of Digitization

Build risk mitigation

strategies and answer an
important question ,Why it
took so long for the company
to learn about product and
service failures in the market?

Significant reduction in
latency

Inventory
Planning and
Management

Very
High

Integration of Big Data

Predicative Analysis
Analytics based dynamic
Supply Chain segmentation

Along with Improved

Demand forecasting
process, will help in,
What inventories to
carry, where, in what
form, and in what
quantities across a
multi-echelon
network
Build a better Cost to
Serve model and
resultant reduction in
Inventory at all storage
points, measured at
realistic COGS

Warehouse
Management

High

Augmented reality (AR)

Better integration of manual
and robotics process, robots
handling packages

Will help in reducing PickUp cost significantly , that

accounts for 13-15% total
WH operating cost (WH
operations usually 20% of

System

Process

Partner

Benefits of Digitization on Supply Chain Processes for XXXX

Existing IT
System for
Supply Chain
Management
Network and
routing
optimization

Transportation
Management

Degree
of
Change
Caused
by
Digital
Very
High

Dependencies

Areas Digital Supply

Chain Transformation
Integration of Big Data
predicative analytics
External interfacing for
automated updating of
capacities and schedules

High

Integration with advanced

freight procurement
systems
Seamless interfacing with
mobility and analytics

Impact of Digitization

Will reduce the risk of longterm infrastructure

investments and contracted
external capacities
Real time rout optimization
will help in cutting Freight
bills
Analytic tool to measure
influences of external
factors on the expected
volume of parcels
,Correlates external data
with internal network data
Results in a Big Data
Prediction Model that
significantly
increases operational
capacity planning for
LSPs

Freight
document
handling and
archiving

Very
High

End to end digital document

handling
Interfacing and Integration
with Digital document
systems

Significant improvement in
productivity and reduction in
discrepancies in Freight
settlement and Billing
processes

System

Process

Partner

Benefits of Digitization on Supply Chain Processes for XXXX

Existing IT
System for
Supply Chain
Management
Logistics
Service
Procurement

Degree
of
Change
Caused
by
Digital
High

Dependencies

Areas Digital Supply Chain

Transformation

Collaborative optimization with

logistics partners on real time
basis
App based spot market
tendering to Listed Carriers
Seamless interfacing with TMS
systems

Supply Chain
Visibility

High

Advanced Supply Chain

Visibility portal
Proactive Exception
Management, in end to end
Supply Chain Event
Management

Predicative
Maintenance
(Access historical data of
equipment at Customers
sits and take real-time
action to improve reduce
downtime )

Very
High

Machine & Sensor data & 3D

Printing and Cloud Services

Impact of
Digitization
System

Significant reduction
in overall
transportation &
logistics cost
More predictability in
overall Freight Pickup and Delivery
process
Significant
improvement in
Customer satisfaction
level

Significant reduction
in Mean time
between failure for
equipment and
customer satisfaction
level

Process

Partner

Digital Enablers and XXXX s Opportunities for Innovation in Supply Chain

GPS based positioning, Sensors for knowing
equipment status

3D Printing
New
Production
locations
New Supplier
Configurations
Reduced time
for installation
& Repair

Sensors and
Geolocation

3D Printing

Reliable all time localization, Predicative Maintenance

Supply Chain Event Management at SKU level

Robotics

Digital
Technology
Enablers

Predicative
Analytics , large
scale scenario
analytics

Demand
forecasting
Capacity
planning
Routing
Optimization

UI and
Display
Innovation

Big Data

Safe to operate in
close man-machine
environment,
cheaper & more
Flexible

Cloud
Services

Augmented reality
Customer self
service

Global real time data consistency, faster distribution of analytics

Cloud based real time availability of SCM data and synchronized IT system

Picking
Palletizing
Loading
Un-loading

Glassed based
picking in
warehouse
Display on
products
managed by
XXXX

Use Case: Outside-In Demand Forecasting with Big Data Predicative Analytics
Results :Improved Forecast Accuracy, Reduced Inventory & Improved Working Capital
Oracle Inventory
Optimization

ERP

Tableau Local
Dump on
Server

Demand Planning

Oracle
R12

Customer Demand
Forecasting

Consensus
Forecast

Demand Data
DW

New Product
Forecasting

Customer
Demand

Output : Forecasted

Further
reduction
in
Inventory
levels

Tableau
Front End
Visualization

Demand with
significantly improved
forecast accuracy
Organized
Unstructured Data
(E.g.: Emails,
Customer Service,
Channel feed back,
Warranty reports)

Sentiment Dashboard
Text
Preprocessing
Engine (E.g.:
Stemming)

Text Analytics
Engine (E.g.:
Sentiment
Analysis)

Big Data
Lake
Scattered
Unstructured Data
(E.g.: Social
Media, Video,
Voice
Digital Images)

Social/
Web
Media
Crawler

Sentiment
DW

SCM
Cloud
Services

13
Contract
MFGs

THANK YOU