Network of Networks Webinar 2017

Network of Networks StoryboardJanuary 4, 2016

For the Supply Chain Leader Who Wants to Rise Above

Supply Chain Insights LLC Copyright © 2017, p. 2

Our Panel Today

Trevor Miles, Supply Chain Thought Leader, Kinaxis

Lora Cecere, Founder of Supply Chain Insights

Pawan Joshi, SVP of Product Management and Strategy, E2Open

Brian Tessier, VP of Innovation, Schneider Electric

Christine Barnhart, Center of Excellence, Berry Plastics

Cindi Hane, Vice President of Product Management, Elemica


A cross-industry networking group to stimulate thinking on next-generation supply chains.

Face-to-face meetings/multiple times a year open to the business leaders and technology innovators in the ecosystem.

Development of Network of Network compliance guidelines.

What is the Goal of the Network of Networks Effort?


Manufacturers, Retailers & Distributors Attending November Session


Technology ProvidersAttending November Session


Why Is This Necessary?

Today, it is too difficult and expensive to move data between trading partners within value networks.

There is no industry alignment on process canonical definition(s) to take advantage of next-generation capabilities in multi-tier processes.

Global trade is more complex and dependent on multi-party trading relationships. Companies are stuck. There is a need to leap frog the current state.


The adoption of distributed and open technology by the ecosystem of

technology providers and business users to drive inter-operability in value

networks to improve business outcomes.

What Is the Network of Networks? (Working Definition)


Attendee View in 2016


Highest Maturity Is Reported for Invoicingand Settlement


• Why is this work important for you and your company?• What are you hoping that we learn from this work to help the

industry?

Panel Discussion

Initial Testing

Project Name: Digital Supplier Onboarding – Network of Networks PilotLeader: Lora Cecere

KPI: Cycle time, number of non-automated touch points Unit Baseline Goal Entitlement

Gate Gen I Target Actual

D 1/20/17

M 2/15/17

A 3/1/17

I 7/1/17

C 9/1/17

Sponsor(s): B. Tessier (Schneider)

Team members Functional area % Dedicated

Comments: Potential benefits include productivity, cost reduction, improvement on on-time payments, accuracy (first pass yield), traceability, cleanliness of data and timeliness of vendor information updates.

Network of Networks Goal: “Adoption of distributed and open technology by the ecosystem of technology providers and business leaders to drive interoperability in networks to deliver new outcomes.”

Additional Members: SMES: Schneider Purchasing (CPO rep. Mike Neal)

Problem Statement: A recent sample of Schneider Electric’s supplier onboarding practices determined that on average, it takes 26 days and 31 value chain participants to complete the process. Non value added time (waiting, etc.) represents 47% of the time elapsed. Only 12.22 days were consumed by actual work. The inefficiency of this process is robbing the Supply Chain of needed agility.

Business Impact:Cost per transaction is estimated at $4,925, with downward departure driven by high volumes of low complexity supplier onboard. Large complicated onboarding is estimated to cost >$25,000 per application.Protracted transaction times limit the ability of the business to recover rapidly in the event of a quality or service issue.

Defect definition: Onboarded > 96 hours

Goal Statement:Reduction in complexity, time, and cost required to onboard vendors by leveraging automation and online capabilities. Ensure consistency and continuity throughout the onboarding process. Empower and enable value chain participants to “self serve” to be less dependant on their purchasing support structure

Scope:Process Starts: Need for new product or service

Process Stops: Vendor approved for procurement

Includes: Schneider Electric Partner BU vendor base, XXX company vendor base

Excludes:

Baseline Sigma: XXXX s

Target Sigma: XXXX s

Ending Sigma: XXXX s

Time

IDR-$$$$$$$

5-10%5-10%5-10%5-10%5-10%5-10%5-10%5-10%

TBD TBD TBD

Brian TessierThierry HanauCap GeminiD. Bechdolt

TBDTBDTBDTBDTBD

GSC-T (Schneider)IPO (Schneider)

Lab PM (CG)Six Sigma (Schneider)Community Directory

Network ModelingCognitive/Machine Learning

Blockchain

Need for new product or

service

Supplier consultation &

selection

Trading partner qualification

Negotiation & contract

management

Implement supplier

performance management

Integration workflow

Mapping specifications

Establish technical

connectivity

Test transactions Certify supplier on Network(s)

Certify supplier on the Network of

Networks

Supplier ready for procurement

PO Initiation PO Acceptance

Green: BlockchainYellow: Cognitive Learning


Complexity – More than 35 systems currently in use at One Manufacturer

• e-Proc France• e-Proc COP• WF Payment Request Supplier/Employee• WF Ingenieria• VENUS• Utiles & Merchandising• TIGRES-PISTACHE• Syteline US• Suppliers modification and creation for SEII + S&S• Scala (Iran)• Sales reporting• SSRM• SE Code Creation• SAP XI Switzerland• SAP Switzerland• SAP S&S (Italy)• SAP Italy SEII• SAP Italy SE• PAPS• Order entry S/W MVI

• My Suppliers Portal• MVB Standards• MAGIC 400• Inventory Analysis S/W• Gestión de Garantías• GRAP (Brazil)• External Scala Programs• Engineering ICR Tracking• ENGINEERING• EDIS (Peru)• EDIS (Iran)• EDI Konverter (BND-Switzerland)• Baan V• Baan (Juno)• AS400 Jumb

65% of the Interaction is Through Email15% is through Excel


• In your experience, how does the Schneider case study compare to what you see in the industry?

• How do you feel about the concept of a community directory for onboarding for data to be written once and shared in a distributed manner for onboarding?

• Why is this testing important for you?

Panel Discussion


Growth of Global Procurement Organizations


Need for Collaboration and Visibility Across Functions


• What is important for the testing? What are your goals?

Discussion

Looking Forward


Definition of Network of Network

Compliance for Technology Providers

2017

Process Canonical Evolution

2018-2020

Federated Technology Business

Model2019

Packaged Training Programs

2018-2021

Group Goals

Build Enough Cross-Industry Support to Deliver on Goals to Deliver on the Goals


Next Meetings

Location Date Focus

Orlando April 12-14th Development of Network of Network Compliance

Germany April (TBD) Inaugural Event for Europe Hosted by BASF

Dallas July (TBD) Review of Compliance Standard on Process Definitions

Atlanta September 5th-8th Imagine 2017. Supply Chain Insights Global Summit.

Scottsdale November (TBD) Launch of Compliance

Future Testing


Confluence of Technologies

BlockchainDistributed Processing

Cognitive Learning

Artificial Intelligence

Hadoop

Distributed Massive Parallel Processing

SparkStreaming

Data


• Blockchain. Distributed logic of transactions and lineage

• Cognitive Learning. Use of machine learning and artificial intelligence to drive new insights/learning

• PMML. Open source for predictive modeling• Hadoop. Massive parallel processing• Spark. Streaming data clusters for real-time data

Together We Will Explore the Options


Autonomous Supply Chain

Cognitive Computing

Machine Learning

Text Mining and Pattern Recognition

Predictive and Prescriptive

Analytics

Building the Autonomous Supply Chain


Write once and use company and contact information many times.Community Directory

Reduce onboarding through once source of data.

Blockchain redefines visibility and track and trace.Traceability

Confluence of Blockchain and Spark/Internet of Things Redefine Lineage.

Bitcoin and Blockchain disintermediate traditional banking.Supply Chain Finance

Emergence of the supply chain digital walletAn alternative to EDI

Cognitive computing eliminates the need for master data management and standards.Interoperability

Data is mined through patterns and translated for context through cognitive computing. Shift from standards to process canonicals.

What Could Change?


• What is your perspective? What technologies excite you? • Where is the greatest opportunity?

Panel Discussion

How Can You Get Involved?


• Problem Statement: Supplier onboarding is manual taking 30-90 days. As a result, it is a barrier to onboarding new suppliers and has become a costly barrier to digital procurement.

• Goal: Test the potential of Global Directory Definition and define inter-operability with other existing networks. Assess the feasibility of write-once and use multiple times.

• Business Case: Decrease onboarding from 30-90 days to 2 days and decrease costs by 90%.

• Definition of Success: Successful onboarding interoperability between networks with a common directory

• Milestone: Testing Completed by the April Network of Networks Meeting

Project Charter for Phase I: Onboarding


• Testing is open to the market.• This is neutral and independent work. The IP is open and available to

the market.• All vendors volunteer their time. Manufacturers provide data/testing,

and technology vendors provide expertise. • Results to be presented at the Network of Networks sessions and the

Supply Chain Insights Global Summit (September 5th-8th).

Ground rules


• Additional thoughts?• Q&A from the audience?

Panel Discussion


Wrap-up

• Making the digital pivot in value networks requires community testing. It requires a cooperative effort between technologists and business leaders.

• New technologies are unproven, but offer promise. Together, we want to form a path to move the industry forward.

Questions?


Five Themes:1.Supply Chains to Admire2.Changing Economies and Changing Times3.Digital Supply Chain Innovation to Power Growth4.Driving Supply Chain Transformation5.Leadership and Supply Chain Talent

Register Now!• Registration is $1750 and includes breakfasts, lunches and

receptions• Seating is limited to 150 attendees• Discounted room rates at The Ritz-Carlton expire August 15 th

• Email us at [email protected]

www.SupplyChainInsightsGlobalSummit.com

Fifth annual event Designed for line-of-business leaders Explore the future of business processes


Building Next-Generation Capabilities

7 Classes/Catalysts for Learning

• Supply Chain Metrics That Matter

• Building the Customer-Centric Supply Chain

• The Market-Driven Value Network Journey

• Making the Digital Pivot• End-to-End Supply Chain

Orchestration• Driving Improvement in

Decision Making Through Supply Chain Planning

• Building Agility Through Horizontal Processes

Online Learning

Benchmarking, Research, Social Engagement, Ideation Tournaments, and Innovative Case Studies in One Week Sprints

For more information: http://supplychaininsights.com/corpu-training/

Visit Us Online www.SupplyChainInsights.comwww.SupplyChainShaman.com

www.BeetFusion.comwww.LinkedIn.com/company/Supply-Chain-Insights

www.Slideshare.com/LoraCecere

Follow Us on Twitter @scinsightsllc

@lcecere

Attend a Live Eventwww.SupplyChainInsightsGlobalSummit.com

www.SupplyChainInsights.com/The-Shamans-Circle

Engage with Us!


About Lora Cecere

• Founder of Supply Chain Insights• “LinkedIn Influencer”

• Guest blog for Forbes

• Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014), Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015), Shaman’s Journal (2016)

• Partner at Altimeter Group (leader in open research)• 7 years of Management Experience leading Analyst Teams at Gartner

and AMR Research• 8 years Experience in Marketing and Selling Supply Chain Software at

Descartes Systems Group and Manugistics (now JDA)• 15 Years Leading teams in Manufacturing and Distribution operations for

Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.

Contact Information: • Email: [email protected]• Blog: www.supplychainshaman.com (15,000 pageviews/month)• Forbes: www.forbes.com/sites/loracecere• Twitter: twitter.com/lcecere (7,800 followers)• LinkedIn: www.linkedin.com/in/loracecere (140,000 followers)• LinkedIn Influencer: www.linkedin.com/today/author/446631

Network of Networks Webinar 2017

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Transcript of Network of Networks Webinar 2017