Building Resilient and Sustainable Supply Chains. Technology Trends for Supply Chains. Logistics Ireland, September 24 th 2008

Transcription

1 Datapac ERP Division PRESENTATION Building Resilient and Sustainable Supply Chains Technology Trends for Supply Chains Logistics Ireland, September 24 th 2008 Gerry Power ERP Division Manager e: t:

2 Presentation Definitions Technology is a broad concept that deals with the usage and knowledge of tools and how these affect our ability to control and adapt to our environment For the purposes of this presentation, Technology = the brains = software applications Supply Chains = A system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.

3 DISCLAIMER Disclaimer

4 Technology Trends for Supply Chains 1. Dynamic Applications 2. Software As A Service 3. Pervasive Computing 4. Unified Communications 5. The Demise of Bespoke

5 Shareholder Value Objectives of Supply Chains Supply Chain Maturity Model Synchronized Collaborative Integrated Functional Enterprise Applications Stage I Integration Reporting Stage II Portals Analytics Stage III Business Productivity Collaborative Platform BPM Stage IV Enabling Technologies Fulfil customer demands through the most efficient use of resources, including distribution capacity, inventory and labour. In theory, a supply chain seeks to match demand with supply and do so with the minimal inventory. V A N

6 Today s Streamlined Processes Procure to Pay Order to Cash Inbound Logistics Internal Processing Outbound Logistics Demand Planning MRP Strategic Sourcing Load Building Purchase Order Mgt Investment Buying Supplier Rebates Cross Docking Rebates Invoice Verification Commissions Inventory Management EDI Processing Profitability Analysis Credit Management Free Goods Mass Price Maintenance Price Protection Funds Management DRP & Deployment Value Added Services Customer Rebates ATP & Allocation Distribute-to-Order Mobile Sales Charge backs Returns Processing Drop Shipping Backorder Processing Customer Contracts

7 More Value Added Services But Customers are demanding Inbound Logistics Internal Processing Technical and Product Support 78% Expedited Delivery 68% Customer Employee Training 63% Consigned Inventory 54% Setup and Installation 41% Fabrication and Kitting 35% On-site Store Room Management 25% Extended Warranty 23% Outbound Logistics

8 Greater need to track costs/profits accurately Net Profit?% Gross Profit?% Operating Expenses?%?% Payroll Cost of Goods?%

9 External Challenges facing Supply Chains Governance Risk and Compliance Rising Costs Order Demand and Supply Volatility Manufacture Manage Increasing Customer Knowledge Increased Assemble Competition Sell Faster Support Product Cycles Product Proliferation and Complexity

10 The Profit Tightrope Customers demand more services at little or no extra cost, including: shorter lead times higher fill rates order tracking and customer-specific labeling and packaging Emphasis on controlling costs including: Cash-to-cash cycle time reduce inventory perfect orders to get paid faster negotiate extend terms from suppliers PROFITABILITY

11 Disclaimer HELLO EVERYONE

12 Strategic Imperatives for Supply Chains Customer Wholesaler Customer Customer 1. Reduce Cost of Goods 2. Increase Revenue 3. Decrease Operating Expenses Take advantage of order optimization (line buy) opportunities Improve profitability visibility for negotiation support Improve service levels Reduce deductions, charge backs, rebates outstanding Improve accounting and controlling process efficiencies Increase warehouse productivity in order to reduce cost Improve materials management in order to reduce inventory Improve inventory turns

13 By automating the supply chain Removing manual processes Eliminating redundant steps Reducing payroll costs Software improves Supply Chains... Today By managing the movement of goods effectively Demand planning and forecasting Freight routing and load optimising Reducing transportation costs By connecting the supply chain Enabling customer self service Integrating more closely with suppliers Increasing revenue, reducing payroll costs And this is happening today... Dynamics NAV Case Study ORIGO

14 New Technology Enables New Supply Chain Models Proliferation of Rich Devices Unified Communications Cloud Computing Software plus Services Dynamic Business Apps & Services Performance Management Natural User Interfaces Web 2.0 Collaboration Tools

15 #1 Technology Trend Dynamic Applications Role Tailored UI Office Integration, Collaboration Portals Characteristics of Dynamic applications 1. Web Role tailored GUIs 3. Service Oriented Architecture Service orientation means different things to different people Presented with an egg, a farmer might envision a chick; a cook might envision an omelet; and a child might envision a brightly painted Easter decoration. Service Orientation is an egg.net APIs / Web Services Work Flow (WF) & orchestration Model Centric Architecture

16 Many processes not end-to-end Consolidate Orders Select Carrier and Rate Shipment Generate Shipping Docs Ship Product; Track Delivery Manage Shipment Issues Process Receipt Manual Processes Vendor System Transportation System Research Issue RFQ Process Order Load Vehicle Report Status Locate Communication Documents Analyze Shipment Record

17 SOA extends reach and enables ability Service orientation is a means for integration across diverse systems. Consolidate Orders Select Carrier and Rate Shipment Generate Shipping Docs Ship Product; Track Delivery Manage Shipment Issues Process Receipt Web services Vendor System Transportation System Research Issue/ Process RFQ Create and Process Order Load Vehicle Report Delivery Status/ Issues Locate Custom Forms Analyze Track Record Vendor Shipment

18 Service Oriented Architecture What do Dynamic Applications mean for you? 1. Adoption of SOA is already widespread in the supply chains 2. SOA will help supply chains encompass the information and data flowing into a company through a wide variety of sources, the storage and management of the information as it flows into internal systems (such as PIM, ERP, inventory, order management and other systems) and use of that data and information across a wide variety of channels (such as online commerce systems and POS systems), both within and external to a company.

19 #2 Technology Trend Software As A Service Software as a service (SaaS, typically pronounced 'Sass') is a model of software deployment where an application is hosted as a service provided to customers across the Internet.

20 What does SaaS mean for you? Pros Reduced upfront cost and no hardware costs (CapEx) Cons More expensive over time (OpEx) No need for internal IT Continuous monthly expense Trial solution before marrying Can be accessed anywhere No control over software (e.g. forced upgrades mean forced training) Requires reliable broadband access

21 #3 Technology Trend Unified Communications

22 What does unified communication mean for you?

23 #4 Technology Trend Pervasive Computing

24 What does Pervasive Computing mean for you? Business Applications Connect to multiple LOB apps Orchestrate business process Apply business logic RFID and Sensor Services Manage devices at the edge Add context and turn raw events into business-process relevant information Interpret events at the edge through filters, rules a alerts Device Layer RFID fixed and mobile readers Barcode scanners PLCs, etc. Distributed edge sites running RFID Business Intelligence BAM for Process BI SQL/SQL BI for data analytics Physical Layer RFID tags, barcodes Biometric systems Environmental sensors, etc. Manufacturing Quality Assurance Inventory Packaging Warehouse Distribution Reception

25 #5 Technology Trend The Demise of Bespoke

26 Estimated R&D Budgets Technology Vendor R&D Budget $6.2 billion $3 billion $5 billion $6 billion N/A

27 >$1 Billion Software Acquisitions SAP IBM Oracle Microsoft Sage Infor Business Objects $7 Billion Cognos $5 billion BEA Systems $8.5 billion Fast Search & Transfer KCS Rightsource Mapix Internet Security Systems Hyperion $3.3 billion Aquantive $6 billion ACCPAC SSA Baan Epiphany Filenet Siebel $5.8 billion Navision $1.5 Billion Softline Lily Future Tree Ascentual Peoplesoft JD Edwards $10.3 billion Great Plains $1.5 Billion TAS Rational Retek Visio PWC i-flex Informix

28 Consolidation of Software Developers Barry Libenson, CIO at Ingersoll Rand (a Dynamics NAV Customer) considers himself fortunate. While the odds increase every day that the company's key software vendors will get caught up in disruptive takeovers, so far Ingersoll Rand has landed on the right side of every deal. "The companies we've aligned ourselves with are doing the acquiring," he notes, pointing to Oracle as an example. "The scary thing is when you're at the other end of the spectrum. Then you're at the mercy of who's doing the acquiring."

29 Stick with the trusted brands... What does the demise of bespoke mean to you?

30 In Conclusion 1. Dynamic Applications 2. Software As A Service 3. Pervasive Computing 4. Unified Communications 5. The Demise of Bespoke

31 NaviTrans Event Next Tuesday 30 th September LOGISTICS DEMONSTRATION SEE MICROSOFT IN ACTION NaviTrans Best of breed multi-modal logistics application Designed for logistic requirements of road, rail, air and shipping freight Integrated into the world s fastest growing ERP, Microsoft Dynamics NAV. A complete administrative and operational solution that is in use in over 150 sites across Europe. WHEN: NEXT TUESDAY, 10am 12PM WHERE: MICROSOFT, LEOPARDTOWN PARK TO REGISTER: VISIT