Post on 23-Mar-2018
transcript
Know Sooner. Act Faster. A NEW PARADIGM FOR SUPPLY CHAIN MANAGEMENT
2 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
“Know what you know, and Know what you
don’t know, and surround yourself with people
who know what you don’t know”
3 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
“Know Sooner, Act Faster”
“What I hear at every conference : data/systems, structure, goal alignment, external”
4 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
LCP ASPC
INVENTORY
OPTIMIZATION
DEMANTRA
S&OP SUPPLIER
COLLABORATION
APO-DM
SCP
D&F
APO-PS
5 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
“Plan” – Multi-Tier, X- Functional Visibility
Raw Materials
Internal/External MFG
Inbound/Outbound Logistics
Distribution
Consumer Vertical
Horizontal
Dif
fere
nt
BU
’s
Dem
an
d
Sa
les
Mark
eti
ng
Fin
an
ce
Cap
acit
y
Op
era
tio
ns
Su
pp
ly
Ch
ain
Exec
uti
ves
En
gin
eeri
ng
So
urc
ing
Su
pp
ly
BU
’s
6 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
“Monitor” – Plan vs. Actual
Demand/Supply Balance
Component Shortages
Component Lead Times
Customer Commits
Sourcing Strategies
KPIs
BOMs
Beginning
of the QTR Yesterday Today Future
Projections
What’s Different, Do I Care?
7 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
…present day condition…
8 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
End to End Product Supply Performance
Improvement Process-based Stages of Maturity (Industry Av PS – 2.4 >)
8
Stage 1 Stage 2 Stage 3 Stage 4 Stage 4+
React
“Integrated
Functional
Excellence “
“Demand -
driven
End to End
Processes”
“Value Translation
Network”
“Historic Accidental” “Grouped for Focus” “Balanced Mix” “Value Discovery ” “Value innovation”
Product
Supply
Demand
Reactive
Product
Supply Demand
Projects
Projects
Reactive Reactive
Projects
Projects
Product
Supply Demand
Product
Supply Demand
Product De
ma
nd
Supply Demand
Product
Va
lue
Sense
Shape for Value
Synchronize
Business
Value
Operating
Efficiency
Integrate
X X
Process
Capabilities
9 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Segmentation
Simulation
10 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Traditional S&OP
• Plan on a monthly cycle, at best
• Sequential process
• Plan only outside the time fence
• Limited / No inclusion of NPI process
• Bogged down by spreadsheets
Ability to detect issues within
the time fence and propose
feasible alternatives is not in
“scope” of S&OP
11 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Demand Planning
Develop marketplace assumptions
Create industry, market share and inventory plans
Evaluate forecast for accuracy / bias
Day 1-4
Demand
“What do we want to make?”
Day 5-7
Supply
“What can we make?”
Supply Planning
Evaluate forecast
against existing
production plans
and constraints
Create executable
production plan
Generate shipment plan
Day 8-10
Pre S&OP
“What will we plan to make?”
S&OP Meetings
Evaluate capacity and
production gaps
Evaluate commercial
plans and forecast
Decide on commercial
direction and constraint
resolution
Day 11-14
Financial Conciliation
“Impact on operating plan?”
Day 11-14
Operational Plan
Operationalize Plan
Release production &
procurement plans
Update MRP systems
Publish to supply base
Address Exceptions
Financial
Roll up revised volumes
Provide appropriate
revenue and cost
figures against forecast
Create updated
financial outlook
Day 15-17
Executive Review
Executive Review
Review industry, sales,
market share, shipment
and dealer inventory
changes by Distribution
Services and Product
Business Division
Iterative collaborative process requires
understanding of cross functional impact –
At any stage of S&OP process
Misconception # 1: S&OP is a sequential cadence of
separated sub-processes leading to an executive
meeting
12 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Misconception # 2: Create S&OP plan and then forget
it for a month
Long Term Planning (S&OP, NPI)
4 months – 2+ years
monthly buckets
Includes new product launch plans
Le
vel o
f P
lan
nin
g D
eta
il
Time Horizon
Plan capacities e.g. assembly lines, tooling,
capacity / volume / program allocations to
regions (support CAPEX decisions for
equipment with lead-times). Sourcing
decisions based on enterprise cost model
manage capacities (e.g. over time,
additional shifts/shift models) and
operational alternatives (production
adjustment between plants, allocation of
material shortages, supplier allocations)
provide course correction based on shop floor /
supply chain actual execution data (production
adjustment as per material issues)
Order Planning 4 months
weekly / daily
buckets
Scheduling / Sequencing 0 - 3 weeks
hourly / slot based buckets
week
1 2 4
month
2 4 18 24
Monitor & Response Window Planning Window
Traditional Decision Flow
The decision flow is bi-directional. One must be able to react when
the S&OP guidance is violated due to unplanned events
13 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Misconception 3: S&OP doesn’t require technology –
It is all about the process
Source: Dr. Larry Lapide, MIT Center for Transportation & Logistics
Relative importance of technology
Most companies stuck at stage 1 or 2
14 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
I do what the data
allows me to do
15 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Weekly S&OP, Consumer Electronics
• Started with Shared Goal
• Each BU by Geography was to be #1 or #2 in market share
• Weekly S&OP cadence :
• Market share report in : White goods #2, Mobile #1, TV #3,
SemiCon #2
• Discussion : what can the others do to get TV from #3 to #2
• Scenarios – NPI dates, Marketing spend, Sales targets, Financial
balancing, Supply chain policies, etc..
• Challenges :
• End to End view to assure accuracy
• Profitability analytics
• Projecting market share
16 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
How It Works
• Each scenario appears as a separate instance of the entire dataset
• You perform "what-if" analysis by creating scenarios and modifying the data in them to simulate a change
• Compare Simulations against key metrics
• Changes made in one scenario do not impact the data of record, nor any other scenarios
• Scenarios can be private, or shared with teams
RapidResponse’s “what-if" analysis technology lets you model your entire data
environment in seconds, regardless of its size.
Scenarios – Simulate Anything, Anytime
17 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Forward Looking Greatest Concern….
Plan Buy
Make Deliver
Fundamental Shift
1. Online
Customer
2. Customer
Behaviors
18 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Forward Looking Greatest Concern….
Plan Buy
Make Deliver
Fundamental Shift
1. Online
Customer
2. Customer
Behaviors
Different Inventory models
New/Unique Spend Mgmt policies
Transparent Price models
Entitled Fulfillment needs
Influence patterns are different
Assurance from the Group
New Purchase decision process
Availability & Entitlement needs
Much deeper Segmentations
19 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Traditional Supply Chain Model
Consume is now a Node in the Supply Chain
Plan
Make Deliver
Buy
Consume
Consumers are part
of the real time
supply chain
decisions
20 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
The Value proposition of this fundamental shift
20
Current Issues
• Current supply chains operate under the
traditional Plan, Buy, Make, Deliver model,
managing consumers with Forecasting &
Demand Planning solutions. Yet, individual
Consumers today have significant leverage
on supply chains.
• Much deeper segmentation is required to
understand and manage “Consume”, as too
much cash is being spent on non profitable
customers
• “Consume” nodes are not only driven by
different patterns, they are Adverse to Brand
claims.
• Today’s Supply Chain KPI’s are not only need
to be adjusted, some are driving negative
results to the “Consume” nodes.
Desired Outcomes
• Ability to put structure in consumer data
• Establish supply chain models to respond to
segment types, and ability to change models
rapidly
• Capability to respond to online transparency
• A model to calculate which segments create
the most value
• Ability to shift Cost to Serve from lower
segments to higher profitable segments
• Financial plans for segments – expect more
(revenue, cost, market share) from these
segments.
• Higher level of dialog with key segments
• Collect, understand, and influence the
purchase patterns – especially online
• Get ahead of the ‘groups’ to provide
assurances
• Have entitlements – digital products ?
• Measurement on time phased profitability,
customer loyalty, influence weighting,
spend ratio’s
• KPI’s driving the various customer segments
21 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Kinaxis
Campus
Headquartered in Ottawa
Global company, global customers
1000+ man-years of IP developed on RapidResponse
ONE PRODUCT…
Single product with single code base powers the underlying capabilities essential to balancing supply and demand across the enterprise
…for MANY BUSINESS PROCESSES
S&OP Capacity Planning Supply Planning Demand Planning Enterprise Project Management
Supplier Collaboration Capable to Promise
NPI Inventory Planning
MPS
Kinaxis Company Overview
SCM SaaS vendor, Private
~30% YOY Growth
No Debt, Forward looking view into protected backlog
22 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
LCP ASPC
INVENTORY
OPTIMIZATION
DEMANTRA
S&OP SUPPLIER
COLLABORATION
APO-DM
SCP
D&F
APO-PS
• Limited to Functional Excellence
• Decision Latency
• Incomplete Global Representation
23 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
… ENABLED BY A SINGLE CODE BASE CLOUD OFFERING …
A NEW PARADIGM:
Global Control Tower
for Operations
Customers
(CRM)
Outsourced Manufacturers
(ERP)
Channel Partners (various)
Enterprise
History (EDW) Brand Owner
(ERP)
Suppliers (EDI, portal)
24 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
… ENABLED BY A SINGLE CODE BASE CLOUD OFFERING …
A NEW PARADIGM:
Global Control Tower
for Operations
• End-to-End Process Enablement
• Global Visibility and Alignment
• Fast and Accurate Decisions
Customers
(CRM)
Outsourced Manufacturers
(ERP)
Channel Partners (various)
Enterprise
History (EDW) Brand Owner
(ERP)
Suppliers (EDI, portal)
25 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
… ENABLED BY A SINGLE CODE BASE CLOUD OFFERING …
26 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Consequence
Evaluation &
Alerting
Responsibility-
based
Collaboration
What-if
Simulation
Dashboards
On the Go
High Speed
Analytics
Scenario
Comparison
27 Copyright © 2012 Kinaxis Inc. All Rights Reserved.
Our Customers See Results
83% Reduction in
Expedite Orders
4
Shortage
Systems Eliminated
82% Reduction
of Big Order Commit
34% Increased
Inventory Productivity
98% On-Time
Delivery
43%
S&OP Cycle
Time Reduction
Know Sooner. Act Faster. A NEW PARADIGM FOR SUPPLY CHAIN MANAGEMENT