PRESENTATIONDatapac ERP Division
‘Building Resilient and Sustainable
Supply Chains’
Technology Trends for Supply Chains
Logistics Ireland, September 24th 2008
Gerry Power
ERP Division Manager
t: 01-4263568
Presentation Definitions
Supply Chains = A system of organizations, people, technology,
activities, information and resources involved in moving a product
or service from supplier to customer.
Technology is a broad concept that deals
with the usage and knowledge of tools
and how these affect our ability to
control and adapt to our environment
For the purposes of this presentation,
Technology = the brains
= software applications
Disclaimer
DISCLAIMER
Technology Trends for Supply Chains
4. Unified Communications
3. Pervasive Computing
1. Dynamic Applications
2. Software As A Service
5. The Demise of Bespoke
Objectives of Supply Chains
Fulfil customer demands through
the most efficient use of
resources, including
distribution capacity, inventory
and labour.
V
A
N
Synchronized
Stage IV
Collaborative
Stage III
Shar
eh
old
er
Val
ue
Business Productivity
Integrated
Stage II
Functional
Stage I
EnterpriseApplications
Analytics
Portals
Reporting
Integration
Collaborative Platform
BPM
Enab
ling Te
chn
olo
gies
Supply Chain Maturity Model
In theory, a supply chain seeks to
match demand with supply
and do so with the minimal
inventory.
Inbound Logistics
• Demand Planning
• MRP
• Strategic Sourcing
• Load Building
• Purchase Order Mgt
• Investment Buying
• Supplier Rebates
• Cross Docking
• Rebates
• Invoice Verification
Procure to Pay
Outbound Logistics
• Value Added Services
• Customer Rebates
• ATP & Allocation
• Distribute-to-Order
• Mobile Sales
• Charge backs
• Returns Processing
• Drop Shipping
• Backorder Processing
• Customer Contracts
Order to Cash
Internal Processing
• Commissions
• Inventory Management
• EDI Processing
• Profitability Analysis
• Credit Management
• Free Goods
• Mass Price Maintenance
• Price Protection
• Funds Management
• DRP & Deployment
Today’s Streamlined Processes
Inbound Logistics Outbound LogisticsInternal Processing
But Customers are demanding…
Technical and Product Support 78%
Expedited Delivery 68%
Customer Employee Training 63%
Consigned Inventory 54%
Setup and Installation 41%
Fabrication and Kitting 35%
On-site Store Room Management 25%
Extended Warranty 23%
More Value
Added
Services
Greater need to track costs/profits accurately
Operating
Expenses
?%
Net Profit
Cost of Goods
?%
Gross Profit
?%?%
?% Payroll
Support
Manage
Sell
Manufacture
Order
Assemble
Demand and Supply
Volatility
Increased Competition
Product Proliferation
and Complexity
Faster Product Cycles
Increasing Customer
Knowledge
Governance Risk and
Compliance
Rising Costs
External Challenges facing Supply Chains
Customers demand more
services at little or no
extra cost, including:
•shorter lead times
•higher fill rates
•order tracking and
•customer-specific
labeling and packaging
Emphasis on controlling
costs including:
•Cash-to-cash cycle time
•reduce inventory
•perfect orders to get paid
faster
•negotiate extend terms from
suppliers
PROFITABILITY
The Profit Tightrope
Disclaimer
HELLO EVERYONE
Take advantage of order optimization (line buy) opportunities
Improve profitability visibility for negotiation support
Improve service levels
Reduce deductions, charge backs, rebates outstanding
Improve accounting and controlling process efficiencies
Increase warehouse productivity in order to reduce cost
Improve materials management in order to reduce inventory
Improve inventory turns
Strategic Imperatives for Supply Chains
3. Decrease Operating Expenses
2. Increase Revenue
1. Reduce Cost of Goods
Wholesaler
Customer
Customer
Customer
By automating the supply chain•Removing manual processes•Eliminating redundant steps
Reducing payroll costs
Software improves Supply Chains... Today
By managing the movement of goods effectively•Demand planning and forecasting•Freight routing and load optimising
Reducing transportation costs
By connecting the supply chain•Enabling customer self service•Integrating more closely with suppliers
Increasing revenue, reducing payroll costs
And this is happening today...•Dynamics NAV Case Study
ORIGO
Software plusServices
Cloud Computing
Proliferation of Rich Devices
Web 2.0 Collaboration
Tools
PerformanceManagementDynamic Business
Apps & Services
UnifiedCommunications
Natural User Interfaces
New Technology Enables New Supply Chain Models
#1 Technology Trend – Dynamic Applications
Service orientation means different things to different people –
“Presented with an egg, a farmer might envision a chick; a cook
might envision an omelet; and a child might envision a brightly
painted Easter decoration.
Service Orientation is an egg”
Characteristics of Dynamic applications
1. Web 2.0
2. Role tailored GUIs
3. Service Oriented Architecture
Work Flow
(WF) &
orchestration
Model Centric
Architecture
Office
Integration,
Collaboration
Portals
Role
Tailored UI
.NET
APIs / Web
Services
Vendor System Transportation System
Research
IssueRFQ
ProcessOrder
LoadVehicle
ReportStatus
LocateCommunication
Documents
AnalyzeShipment
Record
ConsolidateOrders
SelectCarrier
and RateShipment
GenerateShipping
Docs
Ship Product;
TrackDelivery
ManageShipment
Issues
ProcessReceipt
ConsolidateOrders
GenerateShipping
Docs
ProcessReceipt
Manual
Processes
Many processes not end-to-end
SOA extends reach and enables ability
Vendor System Transportation System
Research
Issue/Process
RFQ
Createand Process
Order
LoadVehicle
ReportDelivery Status/
Issues
LocateCustomForms
AnalyzeTrack Record
VendorShipment
ConsolidateOrders
SelectCarrier
and RateShipment
GenerateShipping
Docs
Ship Product;
TrackDelivery
ManageShipment
Issues
ProcessReceipt
ConsolidateOrders
GenerateShipping
Docs
ProcessReceipt
SelectCarrier
and RateShipment
Ship Product;
TrackDelivery
ManageShipment
Issues
Web
services
Service orientation is a means for integration across diverse systems.
What do Dynamic Applications mean for you?
Service Oriented Architecture
1. Adoption of SOA is already widespread in the supply chains
2. SOA will help supply chains encompass the information and data flowing into a company through a wide variety of sources, the storage and management of the information as it flows into internal systems (such as PIM, ERP, inventory, order management and other systems) and use of that data and information across a wide variety of channels (such as online commerce systems and POS systems), both within and external to a company.
#2 Technology Trend – Software As A Service
Software as a service (SaaS, typically pronounced 'Sass') is a model of
software deployment where an application is hosted as a service provided to
customers across the Internet.
What does SaaS mean for you?
Pros Cons
Reduced upfront cost and no hardware costs (CapEx)
More expensive over time (OpEx)
No need for internal IT Continuous monthly expense
Trial solution before marrying
No control over software (e.g. forced upgrades mean forced training)
Can be accessed anywhere Requires reliable broadband access
#3 Technology Trend – Unified Communications
What does unified communication mean for you?
#4 Technology Trend – Pervasive Computing
What does Pervasive Computing mean for you?
DistributionInventoryManufacturing Packaging Warehouse Reception
Quality Assurance
Distributed ’edge’sites running RFID
Device LayerRFID fixed andmobile readers
Barcode scanners
PLCs, etc.
Physical LayerRFID tags, barcodes
Biometric systems
Environmental sensors, etc.
RFID and Sensor ServicesManage devices at the edge
Add context andturn raw events intobusiness-process–relevant information
Interpret events at the edge throughfilters, rules a alerts
Business Intelligence
BAM for Process BI
SQL/SQL BI fordata analytics
Business ApplicationsConnect to multiple LOB apps
Orchestrate business process
Apply business logic
#5 Technology Trend – The Demise of Bespoke
Estimated R&D Budgets
Technology Vendor R&D Budget
$6.2 billion
$3 billion
$5 billion
$6 billion
N/A
>$1 Billion Software Acquisitions
SAP
Business Objects
$7 Billion
IBM
Cognos
$5 billion
Internet Security Systems
Filenet
Ascentual
Rational
PWC
Informix
Oracle
BEA Systems
$8.5 billion
Hyperion
$3.3 billion
Siebel
$5.8 billion
Peoplesoft
•JD Edwards $10.3 billion
Retek
i-Flex
Microsoft
Fast Search & Transfer
Aquantive$6 billion
Navision $1.5 Billion
Great Plains $1.5 Billion
Visio
Sage
KCS Rightsource
ACCPAC
Softline
TAS
Infor
Mapix
SSA
•Baan
•Epiphany
Lily
Future Tree
Consolidation of Software Developers
Barry Libenson, CIO at Ingersoll Rand (a Dynamics NAV Customer) considers
himself fortunate.
While the odds increase every day that the company's key software vendors will
get caught up in disruptive takeovers, so far Ingersoll Rand has landed on the
right side of every deal.
"The companies we've aligned
ourselves with are doing the
acquiring," he notes, pointing to
Oracle as an example.
"The scary thing is when you're at the
other end of the spectrum. Then
you're at the mercy of who's doing
the acquiring."
What does the demise of bespoke mean to you?
Stick with the trusted brands....
In Conclusion
4. Unified Communications
3. Pervasive Computing
1. Dynamic Applications
2. Software As A Service
5. The Demise of Bespoke
NaviTrans Event – Next Tuesday 30th September
LOGISTICS DEMONSTRATION – SEE MICROSOFT IN ACTION
NaviTrans
•Best of breed multi-modal logistics application
•Designed for logistic requirements of road, rail, air and shipping freight
•Integrated into the world’s fastest growing ERP, Microsoft Dynamics NAV.
•A complete administrative and operational solution that is in use in over
150 sites across Europe.
WHEN: NEXT TUESDAY, 10am – 12PM
WHERE: MICROSOFT, LEOPARDTOWN PARK
TO REGISTER: VISIT WWW.DATAPAC.COM
