EMPOWERING MOTOROLA SOLUTIONS’ SUPPLY CHAIN TRANSFORMATION
Sept. 26, 2013
CHRIS ARMBRUSTER
SENIOR DIRECTOR, BUSINESS TRANSFORMATION MOTOROLA SOLUTIONS
KURT KLUSCH
TRANSFORMATION MANAGER & PROCESS ARCHITECT MOTOROLA SOLUTIONS
SPUN OFF MOBILE
DEVICES AND HOME
83 YEARS
2011 CHANGES
CALL TO ACTION FOR TRANSFORMATION + =
MOTOROLA SOLUTIONS
MOTOROLA MOBILITY
NOKIA SIEMENS NETWORKS
ALIGN PROCESSES & I.T. WITH MORE FOCUSED BUSINESS
PAGE 2
MOTOROLA SOLUTIONS
VERTICALS
PRODUCT + APPS + SERVICES
NEXT
GENERATION
CUSTOMER FOCUSED
SOLUTIONS DRIVEN
TECHNOLOGY LEADERS
GOVERNMENT ENTERPRISE
PCR iC&C PRIVATE
BB TETRA ASTRO iDEN ADC ENC RFID EMC SW
ENERGY & UTILITIES
RETAIL & HOSPITALITY
TRANSPORTATION & LOGISTICS
MANUFACTURING & FIELD MOBILITY
EDUCATION & HEALTHCARE
GOVERNMENT
2012 REVENUE: $8.7 BILLION
MISSION-CRITICAL COMMUNICATIONS FOR GOVERNMENT AND ENTERPRISE CUSTOMERS
22,000 EMPLOYEES MANUFACTURING IN 4 COUNTRIES
PAGE 3
3PL
MOTOROLA
MANUFACTURING
MOTOROLA
DISTRIBUTION
3RD PARTY
DISTRIBUTION
PAGE 4
OUR SUPPLY CHAIN FOOTPRINT
3PL
3PL
3PL 3PL
3PL 3PL
3PL
BREAKING THE LEGACY CYCLE
PAGE 5
LEGACY
DRIVES COMPLEXITY
BURDENS NEW
INITIATIVES
“DESIGN IN” RATHER THAN
ELIMINATE
INCREASES COMPLEXITY
BREAK HERE
REGIONAL &
SITE FOCUS
PERFECT THE PIECES
QUICKLY REACT
9 ERPS
DISPARATE HOME-
GROWN TOOLS
INITIAL
STATE GLOBAL
PROCESSES
OPTIMIZE THE WHOLE
ANTICIPATE & SHAPE
1 ERP
INTEGRATED VCP
APPLICATIONS
DESIRED
STATE
2011 - TRANSFORMATION BEGINS
PAGE 6
CAPABILTY
ROADMAP
FOUNDATIONAL
DEPLOYMENT
GLOBAL
ONBOARDING
PROCESS
MATURITY
PROCESS OWNERS,
CHANGE LEADERS
SUPERUSER
DEVELOPMENT
ALL PROCESS
PRACTITIONERS
COLLABORATION
INNOVATION
LOAD &
CHASE
PLAN &
EXECUTE
ANTICIPATE &
SHAPE
DELIGHT &
DISRUPT
ARCHITECT THE
SOLUTION
IMPLEMENT CORE
VCP APPLICATIONS
COMPLETE VCP
FOOTPRINT
FINE TUNE
APPLICATIONS
CRAWL WALK RUN FLY
RO
AD
MA
P
PE
OP
LE
P
RO
CE
SS
S
YS
TE
MS
MANAGING CHANGE GRADUALLY
PAGE 7
• AMBASSADORS
OF CHANGE
• ALREADY KNOW
WHO THESE
PEOPLE ARE
• END USERS
• KEY FOCUS
OF CHANGE
MANAGEMENT
• GLOBAL
PROCESS
OWNERS
• FUNCTIONAL
TRACK LEADS
• SUPPLIERS, 3PLS
& MFG PARTNERS
• COLLABORATION
OPPORTUNITIES
TEAM STRUCTURE IS A CRITICAL SUCCESS FACTOR
PAGE 8
LEADERSHIP
PROCESS PRACTITIONERS
SUPERUSERS
TRADING
PARTNERS
PAGE 9
Create
Forecast
Position &
Level Demand
Dem
an
d P
lan
ner
Cen
tra
l P
lan
ner
DC
Pla
nn
er
Pro
du
cti
on
P
lnr
Bu
ye
r
Collect Plan
Inputs
Validate Plans Load Data
Warehouse
Review
Delinquencies
Analyze
Revenue
Review CRSD-
SSD Gaps
Rev. Resched.
Exceptions
Adjust Sales
Order Priorities
Implement
New SSD
Rel. Planned
Orders to IRs
Review
Exceptions
Review Total
Site Demand
Simulate Plans
& Scenarios
CRSD Plan
SSD Plan
Resched. Plan
Review
Exceptions
Rel. Planned
Orders to DJs
Rel. Planned
Orders to IRs
Optimize Prod.
Schedule
Clear
To Build
Rel. Planned
Orders to DPO
Update Supply
Commit
Run Plans
A
A
Plan
Safety Stock
INTERIM PROCESS
BLUEPRINT
= ORACLE VCP LEVERAGE BLUE
BOX
PS
ASCP ASCP
ASCP
ASCP
ASCP
APCC
APCC
ASCP ASCP ASCP
ASCP Manage
Shortages
ASCP
RP
APCC Apply
Fair Share ASCP
ASCP
IO
DEMANTRA
CRAWL WALK RUN
PLANNING
PARADIGM ‘”LOAD & CHASE” ‘”PLAN & EXECUTE” ‘”ANTICIPATE & SHAPE”
TECHNOLOGY ORACLE 11i, SAP &
LEGACY PLANNING
ORACLE R12/11i, SAP,
VCP & LEGACY ORACLE R12 & VCP
PLANNING
MODEL SERIAL & REGIONAL/
SITE FOCUSED
SEMI-INTEGRATED W/ MIX
OF VCP & LEGACY
SINGLE PLANNING RUN
FOR ENTIRE SUPPLY
PLANNING
CYCLE PLANNING CYCLE OF
THREE WEEKS
PLANNING CYCLE OF
ONE WEEK
PLANNING CYCLE LESS
THAN 1 WEEK
CONSTRAINTS APPLIED WITHIN
EXECUTION WINDOW
APPLIED TO PLANNING
& EXECUTION WINDOWS
APPLIED & MITIGATED
DURING PLANNING
PLANNING TRANSFORMATION APPROACH
PAGE 11
CRAWL WALK RUN
DEMAND
PLANNING
• REGIONAL PROCESS WITH EXCEL AND SFDC
• GLOBAL CONSENSUS PROCESS USING DEMANTRA
• INTEGRATED S&OP PROCESS
• ADVANCED STATISTICS
SUPPLY
PLANNING
• DC CONSTRAINTS WITHIN EXECUTION WINDOW
• MULTIPLE CASCADED MRPS
• GLOBAL ASCP FOUNDATION
• SIMPLE ALLOCATION & PRIORITIZATION
• MODEL SUPPLY CHAIN CONSTRAINS E2E
• FAST SIMULATION CAPABILITY
• ADVANCED ALLOCATION & PRIORITIZATION
INVENTORY
PLANNING
• LEGACY APPROACH TO SAFETY STOCK
• INFLATED DEMAND SIGNAL TO DRIVE BUFFER SUPPLY
• CONDUCT SAFETY STOCK PILOTS USING ORACLE INVENTORY OPTIMIZATION
• FULL INTEGRATION OF ORACLE INVENTORY OPTIMIZATION
• POSTPONEMENT STRATEGIES
CAPABILITY ROADMAP
PAGE 12
PAGE 13
CUSTOMER
DISTRIBUTION
MANUFACTURING
SUPPLIERS
START
CUSTOMER
DEMAND
MANUFACTURING DISTRIBUTION
ASSEMBLY
PRODUCT
SUPPLIERS
PARTS
FINISH
CENTRAL PLANNING
OUR PLANNING JOURNEY
PAGE 14
THE SIZE OF CHANGE REQUIRES AN INTERIM PROCESS
MANUFACTURING
SUPPLIERS
CUSTOMER
DEMAND
MANUFACTURING DISTRIBUTION
ASSEMBLY
PRODUCT
SUPPLIERS
PARTS CENTRAL PLANNING
LEGACY PROCESS TEMPORARILY
COEXISTS WITH NEW PROCESS
PAGE 15
OUR ASCP PLAN RUNS
FIRST SSD
FOR NEW S.O.
DIRECT BUY
RELEASES &
SHORTAGE
MANAGEMENT
TRADING
PARTNER
COLLABORATION
SSD
IMPROVEMENT
TRANSFER
MFG TO DC
ATP (SSD)
SIGNAL TO
CUSTOMER
CONSTRAINED
EXECUTION (CRD)
SIGNAL TO
LEGACY TOOLS
UNCONSTRAINED
MATERIAL (CRD)
SIGNAL TO
SUPPLIERS
UNCONSTRAINED
BACKLOG (CRD)
SIGNAL TO
DISTRIBUTION
CONSTRAINED
MAKE-XFER (SSD)
SIGNAL TO
FACTORY
CONSTRAINED
PAGE 17
START – REGIONAL ERPS & LEGACY PLANNING TOOLS
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
GLOBAL (ENTERPRISE)
UNIQUE LEGACY
PLANNING TOOLS
SAP
AMERICAS (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
EUROPE (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
ASIA (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
PAGE 18
STEP 1 – EBS & CORE VCP APPLICATIONS FOR 1 SBU
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
TRILOGY
VCP CORE
ORACLE R12
AMERICAS (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
EUROPE (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
ASIA (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
PAGE 19
STEP 2 – ADD ASIA AND COMPLETE VCP FOOTPRINT
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
TRILOGY
DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS
ORACLE R12
AMERICAS (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
EUROPE (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
PAGE 20
FINAL STEP – ADD EUROPE AND AMERICAS
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
TRILOGY
DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS
ORACLE R12
GLOBAL PLANNING FOOTPRINT
PAGE 21
DEMAND
PLANNNG
DEMANTRA
S&OP
DEMANTRA
SAFETY STOCK
PLANNING
INVENTORY
OPTIMIZATION
SCENARIO
ANALYSIS
RAPID
PLANNING
DECISION
SUPPPORT
APCC
ORCHESTRATION
& FULFILLMENT
ORDER
MANAGEMENT
ORDER
PROMISING
GOP
TRADING PARTNER
COLLABORATION
E2OPEN
SUPPLY
PLANNING
ASCP
FACTORY
PLANNING
PRODUCTION
SCHEDULING