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Understand Prescriptive Analytics in 20 Minutes November 17, 2016
Understand Prescriptive Analytics in 20 MinutesNovember 17, 2016
Understand Prescriptive Analytics in 20 Minutes
November 17, 2016Agenda:
>What is Prescriptive Analytics?
>Why companies use Prescriptive Analytics?
>Why now?
>The AIMMS approach
>Some examples
>Q&A
Welcome!
Marcel MouritsAIMMS VP Supply Chain StrategyMarcel has 2 decades of experience in logistics and supply chain operations across Europe. In addition, he holds a PhD in Supply Chain Network Design and Operations Research. He works closely with our customers, partners and research organizations like Gartner as well as our sales and marketing teams to help companies understand and benefit from Prescriptive Analytics.
Meet the presenter
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Poll Question
What's your current take on Prescriptive Analytics?
• These are old ideas parading as new ones
• New method of working that fits the 21st century
• I don't know yet, curious to find out
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From “Competing on Analytics: The New Science of Winning” by Thomas H. Davenport
“In essence, Optimization ANSWERs the question:What ACTIONS DO I NEED TO TAKE to achieve my desired goal?”
What is Prescriptive Analytics?
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What is Prescriptive Analytics?
A New Emerging Technology & Approach
Why Companies use Prescriptive Analytics;
> Are you frustrated by not being
able to smoothly deal with complex
recurring planning issues?
• Limited ability to handle complexity
• Spreadsheets become error-prone and
difficult to maintain and update
• Difficult to share and plan collaborative
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“What used to take 10 hours now takes 5 seconds”Indian Manufacturing Company
> Are you limiting your growth and
service by technology not fully fitting
your ideal process?
• Doesn’t fully address all of your questions
• Does not fully reflect your process
• Lack agility - don’t support rapid
development of new, experimental, models
“What used to take me 10 hours now takes 5 seconds”
> Are you feeling stuck because
IT slows down the process
improvements you envision?
• Time consuming
• High maintenance costs
• Can’t easily update & adapt
“ AIMMS fits perfectly to our business requirements. You get exactly what youwant without paying for unnecessary features you will never use.”Global Shipping Company
“ With the adoption of AIMMS PRO,Papyrus will rapidly make the transitionfrom a locally oriented organization to a European Supply Chain concept.”
European Paper Merchant
Sound Familiar?
A Bain & Company study showed companies with advanced analytics capabilities
outperform rivals because they make better decisions, faster, and with better execution
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> 55% of surveyed companies view their supply
chains as equal to or worse than industry peers’
Why Now?
> Reducing supply chain costs while improving
performance in complex environments is
incredibly challenging
> As resources become scarcer and margins
thinner, it is more important than ever to
integrate advanced analytics tools into
production and logistics planning
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AIMMS© Do not use or replicate without permission
• AGILE, • FLEXIBLE, • CAPABLE
The AIMMS Approach
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European Metals company> Highly specific purchasing process
> Optimizing multiple aspects:
• Mix of raw materials
• Timing of purchase
• Batch size
• Re-use of scrap material
> Relatively small App
> 10 mln annual savings
Some Examples
Worlds largest meat company> Complicated production planning
> Optimizing within numerous constraints
• Certification requirements of 100+ countries
• Capabilities & certifications of 54 plants
• Source material specs & prices
• Demand product volume & prices
• Tax legislations
> ‘Huge’ App driving enterprise business
> 3% increase of company profits
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High Tech Company> Multi-Echelon inventory
> Optimizing outside the company
• Include the distributors inventory
• Sharing clients demand
• For all thousands of SKU
> Healthy inventory composition (ME)
> End-to-end visibility & predictability
Large USA Retailer with 2,000+ stores
> Maximize impact promotional budget
• which of the supplier suggested promotions to adopt?
• what amount of funding to allocate to which promotional activity?
• what new or replacement items to introduce, and when?
• how to modify the overall product assortment for each category?
• how to best cater to continuously changing customer preferences?
> Category management has full visibility into costs and customer trends
> Better decisions faster about pricing, promotions and assortment
Some Examples
however
You are intrigued by the value
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Next Steps
You just got a new insight into room-for-improvement
but
You have limited time to explore feasibility
so
How can you quickly (dis)qualify your idea?
Share your challengein 2-3 lines
We will respond in 24 hours:
> can AIMMS really help
> what timeframe
> what cost
Q&A
If you have a question for Marcel, you can submit your questions using the Q&A tab in the Go-to -meeting control panel now.
Resources
Thank you!
Link to slides and recording will be emailed to you.
Check our latest Supply Chain blog by Chris Gordon
www.supplychainblog.aimms.com
Our Prescriptive Analytics Brochure is available in the Go-to-meeting control panel
Go to aimms.com for more webinars, white papers and case studies
Marcel MouritsAIMMS VP Supply Chain [email protected]
