Speed as the innovator in the supply chain

C.J. Wehlage Vice President, High Tech Solutions

Know Sooner. Act Faster.

2 Copyright © 2013 Kinaxis Inc. All Rights Reserved.

Kinaxis Campus

• Headquartered in Ottawa, Canada; Global offices in Hong Kong, Tokyo, Netherlands.

• Double-digit CAGR, profitable, cash positive

• Over 100 Marquis global customers • Up to 7,500 users • Typical >500

Single product powers the underlying capabilities essential to balancing supply and demand across the enterprise

…for MANY BUSINESS PROCESSES

• S&OP • Demand Planning • Supply Planning • MPS • Capacity Planning

• Supplier Collaboration • Inventory Mgmt • Order Promising • NPI • Integrated Project Mgmt

Kinaxis Overview

One Business Solution


Know Sooner, Act Faster


“Know what you know, and know what you don’t know, and surround yourself with people who

know what you don’t know”

“Know Sooner…..”


“Know what you know, and Know what you don’t know, and surround yourself with people who




“Know what you know, and Know what you don’t know, and surround yourself with people who



What do you know about your

end to end supply chain ?


Information isn’t Power… Informative Decisions is Power!

“ ….Act Faster”


“ ….Act Faster” Information isn’t Power… Informative Decisions is Power!


Information isn’t Power….. Informative Decisions are Power !

Each Node has their own

version of the decision

Collaborative decisions are made, but…

Nodes fail to put into their execution system

“ ….Act Faster”


Common Supply Chain Network

Supply Demand

Decisions

Marketing Finance Sales


Supply Demand

Decisions


“If you ask a functional question to a myriad of functional systems, you will get a collection of

functional results”

Common Supply Chain Network


History shows us that Functional focus hasn’t produced innovative results

Reacting to our environment

Reduce Cost Improve

Efficiency


I Feel the Need…..

The Need for….


Why Speed, Why Now…. 2 Inspirations

• Business @ the Speed of Thought : • “How you gather, manage, and use information will

determine whether you win or lose.” – Bill Gates • Digital Nervous System • Thanks to technology, the speed of business is

accelerating at an ever-increasing rate….”, mostly by consumers!

• Diapers!


Personalized Attention to Customers Two Things are pushing Supply Chain Transformation

Plan Buy

Make Deliver


Plan Buy

Make Deliver

Online Consumer

Consumer Behavior

Personalized Attention to Customers Two Things are pushing Supply Chain Transformation

Different Inventory models New/Unique Spend Mgmt policies Transparent Price models Entitled Fulfillment needs

Influence patterns are different Assurance from the Group New Purchase decision process Availability & Entitlement needs Much deeper Segmentations


The Value proposition of this fundamental shift

17

Current Issues

• Current supply chains operate under the traditional Plan, Buy, Make, Deliver model, managing consumers with Forecasting & Demand Planning solutions. Yet, individual Consumers today have significant leverage on supply chains.

• Much deeper segmentation is required to understand and manage “Consume”, as too much cash is being spent on non profitable customers

• “Consume” nodes are not only driven by different patterns, they are Adverse to Brand claims.

• Today’s Supply Chain KPI’s are not only need to be adjusted, some are driving negative results to the “Consume” nodes.

Desired Outcomes

• Ability to put structure in consumer data • Establish supply chain models to respond to

segment types, and ability to change models rapidly

• Capability to respond to online transparency • A model to calculate which segments create

the most value • Ability to shift Cost to Serve from lower

segments to higher profitable segments • Financial plans for segments – expect more

(revenue, cost, market share) from these segments.

• Higher level of dialog with key segments • Collect, understand, and influence the

purchase patterns – especially online • Get ahead of the ‘groups’ to provide

assurances • Have entitlements – digital products ?

• Measurement on time phased profitability, customer loyalty, influence weighting, spend ratio’s

• KPI’s driving the various customer segments

18 Copyright © 2013 Kinaxis Inc. All Rights Reserved. 18

Current Issues

• Current supply chains operate under the traditional Plan, Buy, Make, Deliver model, managing consumers with Forecasting & Demand Planning solutions. Yet, individual Consumers today have significant leverage on supply chains.

• Much deeper segmentation is required to understand and manage “Consume”, as too much cash is being spent on non profitable customers

• “Consume” nodes are not only driven by different patterns, they are Adverse to Brand claims.

• Today’s Supply Chain KPI’s are not only need to be adjusted, some are driving negative results to the “Consume” nodes.

Desired Outcomes

• Ability to put structure in consumer data • Establish supply chain models to respond to

segment types, and ability to change models rapidly

• Capability to respond to online transparency • A model to calculate which segments create

the most value • Ability to shift Cost to Serve from lower

segments to higher profitable segments • Financial plans for segments – expect more

(revenue, cost, market share) from these segments.

• Higher level of dialog with key segments • Collect, understand, and influence the

purchase patterns – especially online • Get ahead of the ‘groups’ to provide

assurances • Have entitlements – digital products ?

• Measurement on time phased profitability, customer loyalty, influence weighting, spend ratio’s

• KPI’s driving the various customer segments

The Value proposition of this fundamental shift


3 Characteristics of a Supply Chain with great velocity

• Thorough Planning • Optimized and constrained view • Aligned to business plan • Asking end to end questions

• Visibility • Not just end to end data • Alerts, Versions, Decisions

• What If Playbooks • Understand the impact • Simulate alternatives


The New Paradigm – Control Tower

Supply Demand

Decisions



Supply Demand

Decisions


The Outcome:

• Global Visibility, Agility, and Alignment

• End-to-End Process Enablement

• Fast and Accurate Decisions

The New Paradigm – Control Tower


A Control Tower…

• is a capability, supported by software

• unifies information and operational KPI’s in one place

• unifies and binds cross-functional process in one place

• is the what-if simulation hub for end to end planning

“ERP is great if you only need to talk to yourself. But who can afford to do that in today’s world?”

- Jim Cafone, Pfizer, Gartner SCM Conference, 2012


Concurrent Planning Across Functions

• Multi-Site, Multi-Enterprise integrated • S&OP, capacity, inventory, financial

• Unify horizontal and vertical silos

• Global process, supporting local context

• Support full spectrum maturity models

Consequence Evaluation & Alerting

• Always-on assessment of change impact

• Intelligent alert/message routing • Measure change in business conditions and outcomes simultaneously

• Single data point granularity, or aggregate

• Business Activity Monitoring 2.0

Responsibility-Based Collaboration • Automatic team selection for problem solving • Simultaneously measure impact of human judgment on business and other people

• Cross-functional alignment and consensus • Scenario voting, comment, assumption capture • Full audit trail of changes • Complex Event Processing 2.0

What-if Analysis & Scenario Comparison • Provide deep multi-enterprise ERP agnostic supply-chain aware analytics

• Simulate anything in seconds • Measure and compare any number of scenarios

• Progressive drilling to root cause/bottleneck

• Predictive Analytics 2.0


83% Reduction in

Expedite Orders

4 Shortage

Systems Eliminated

82% Reduction

of Big Order Commit

34% Increased

Inventory Productivity

98% On-Time Delivery

43% S&OP Cycle

Time Reduction

Our Customers See Results


Closing Thoughts…. eBook

C.J. Wehlage [email protected] 858-774-0915 @cjwehlage www.linkedin.com/in/charleswehlage

mailto:[email protected]

http://www.linkedin.com/in/charleswehlage

Q & A

Know Sooner. Act Faster.

Speed as the innovator in the supply chain

Technology

Transcript of Speed as the innovator in the supply chain