Know About Problems Before Your Customers Do
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Order Visibility:
Know About Problems Before Your Customers Do
www.KnowYourSupplyChain.com
23 October 2012
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Software AG Confidential Proprietary 30 October 2012 | Software AG - Get There Faster | 2
What We’ll Cover Today
• The importance of Supply Chain
visibility
• The link between Order Visibility and
customer satisfaction
• Customer case studies that enable
revenue growth, cost reduction and
increased customer satisfaction
• Prescriptive steps that generate value
and momentum
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One Recipe For SuccessSupply Chain Companies’ #1 Priority: Customer Satisfaction
Integration
Visibility
Focus &
Simplification
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Market DriversHow Companies are Responding to the Challenges
To help drive competitive advantage, leading companies are investing in
technology supporting Supply Chain Visibility and Order Management
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Specific Solution Areas Covered
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KNOW What Impacts Order VelocityOrder Monitoring
Proactively alert on the following conditions:
• Credit Block
• Delivery Block
• Delivery N/A
• Incorrect SKU
• Missing Quantity
• Incomplete Order
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How Do You Get Customers To Love You?
Perfect Product
Perfect Price
Perfect Delivery
Perfect Order?
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If You Can’t Wait for Perfect…..
Deliver Consistency
React Quickly
Continually Improve
Act Consistently
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“Firm”Real-time
0 (No value)
-∞ (disaster)
HardCritical
“Soft”Real-time
-n (Penalty)
HardEssential
Reacting Quickly and Reacting Optimally“Real Time” vs. “Right Time”
Value
Time
Deadline
+
-
0
Source: Dr. Opher Etzion
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KNOW the Impact On Your CustomerCustomer Order Backlog
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The Opportunity | Convert “Right-time” to “Real-Value”
Value
Business event
Data captured
Action taken
Intelligence delivered
Time
Reference: Richard Hackathorn – The BI Watch: Real Time to Real Value
ActionAccelerator
Opportunity
• Order arrives from customer• Customer orders back-ordered / out of stock product
• Truck at loading dock Missed Opportunity
• Order stuck on credit hold• Customer cancels order
• Truck has left the dock
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KNOW How Your 3PL Providers are Performing
Visibility to Each Transaction Processing Step:
Order-to-Ship transactions related to Customer Orders are
tracked at each processing step and real-time metrics such as
average step processing time reveal higher than normal cycle
times indicating a problem
SLA Violation Monitoring & Alerting:
Rules set for metrics such as # of violations
point to higher than normal error & stuck order
occurrence
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We All Know How To Start
• Start small and focused
� Identify the critical few issues
� Single process
� Single pain point
• Start with a process that affects service levels, revenue and profit
• Have a template to start from that can be tailored
� Achieve results quickly
� Implement a specific solution for a specific problem
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KNOW About Problems Before Your Customer DoesProcess Assurance: Advance Ship Notification
• Extends to real time monitoring of ASN Acknowledgements
• Allows Production Support to Proactively contact the customer
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KNOW the Critical CheckpointsDelivery and Customer Replenishment
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KNOW Where Your Order IsLeverage diverse data to provide superior customer service
• Link diverse internal
and partner systems
• Provide a messaging
interface for all event
signals from all 3PL
providers
• Integrate BPM
workflow technology
to proactively manage
alerts
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KNOW What Drives Your Cash Conversion Cycle
Get the Work Do the Job Create the Invoice
QuoteCreate the
InvoiceSales OrderEnquiry End of JobRevenue Booked
Invoice Delivered
InvoicePayment
Show Me the Money
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Beyond Visibility: Know more than “the Score”
• Instrument the Process at key
action points
• Intelligently understand when
orders are not flowing correctly
• Ability to take immediate action
and see immediate results
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Focus on Critical Monitoring Points
Industry.PerformanceREADY Best Practice
Industry.PerformanceREADY processes are based
on Industry Best Practices and hundreds of
enterprise system implementations
Focus on the “critical few” monitoring
points of a more complex process
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Distilling a Complex ProcessHow to identify the “Critical Few” monitoring points
DATA: Data exists (and are readily available) at the identified process step
VALUE: The step is a point where value is either created or lost – value as recognized by
the organization, a customer, a supplier/partner
DIFFERENTIATION: The underlying measurements have changed in a significant way from
the steps before or after (eg: if three sequential steps all have the same underlying data –
and cycletime measurements are not critical – then there is no value in monitoring all three
steps)
ACTION: Surfaced metrics, alerts & insight drives action
LEADING INDICATOR: Monitoring the step can provide an early indication of potential
issues downstream in the process
Not every process step is equal: the value of process instrumentation is
directly tied to selecting the appropriate monitoring points
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Best-in-Class Solutions Provide Content in ContextProcess performance metrics, not just process outcomes
12
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The Software AG Answer Out of the Box iKnow Order Visibility Solution
Fast Delivery: 8 weeks; fixed pricelicense and services
Integrates data across multiple systems to provide a 360 degree view of the
Order to Cash Process
Pre-configured Processes, Dashboards, KPIs and Alerts
Fixed price, short time to value solution built on the success of
clients like Kraft, Coca-Cola Enterprises & Baker Hughes
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Process Visibility is the First Step to Business Process Excellence
• Model Processes, Roles &
Organizations
• Foundation for joint understanding
and operational standards
• Business Process KPI Visualization
• Real-time visibility
• Alerts, Thresholds
Process Mapping
Process Instrumentation
• As-Executed Process
• Process analytics
• Root cause analysis
• Benchmarking
Process Analytics& Benchmarking
• Workflow Automation
• Process GUIs
• Business Rules
• CPI Framework
Process Improvement & Automation
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More to Explore
Online Articles: Supply & Demand Chain Executive
Blogs: B2B.com
2 Minute iKnow YouTube Video
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Continuing the Conversation
Nov 11 – 13
Richmond Supply
Chain Forum
Scottsdale, AZ
Nov 13
Lunch & Learn
Charlotte, NC
Nov 14
Lunch & Learn
Dallas, TX
Nov 15
Lunch & Learn
Atlanta, GA
Minneapolis, MN
Oct 15 – 17
Process World
Orlando
Oct 22
Supply Chain
Visibility Webinar
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THANK YOU
KnowYourSupplyChain.com