Supply Chain Optimization for Logistics Service Providers. White Paper

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1 Supply Chain Optimization for Logistics Service Providers White Paper

2 Table of contents Solving The Big Data Challenge Executive Summary The Data Management Challenge In-Memory Analytics for Big Data Management Key Benefits of Using ActivePivot Use Cases for Logistics Service Providers Real-time visibility into the supply chain Capacity optimization Consolidated view of the business Reactivity to changing demands Accurate delivery forecasts

3 Executive Summary ActivePivot is an innovative Big Data analytics solution that meets the needs of logistics service providers looking to extract actionable intelligence from mountains of data in a timely fashion. by the supply chain systems. In that context, tackling the Big Data issue and the 3V Volume, Velocity and Variety - has become a growing concern for logistic services providers. ActivePivot consolidates operational data in real-time from multiple data sources, integrates business logic and complex calculations, and provides real-time analytical capabilities for timely decision making related to your supply chain. By making instant analytics part of every step in the logistics process, ActivePivot helps you improve your operational performance, deliver value-added services to your clients and ultimately gain a competitive edge. The Data Management Challenge As a logistics service provider, you are well aware that to achieve a sustainable competitive edge, you must offer customers value-added services beyond transportation and storage of industrial goods. This may include meeting aggressive Service Level Agreements (SLA), responding quickly to unexpected changes in clients demands, delivering light manufacturing services, or sharing operational information with clients. Yet, delivering such value-added services has an immediate impact on the volume, speed and complexity of the data produced Data Volume: Ever-increasing amounts of data are generated in various operational systems such as TMS, WMS, as well as other data sources, such as production systems, order books and inventory systems. Making sense of such a deluge of data is a non-trivial undertaking. Data Velocity: In the logistics world, events and changes need to be dealt with in a timely manner in order to respect Service Level Agreements. Decisions must be made on-the-fly, yet a decision based on incomplete information could potentially result in damaging knock-on effects. Consequently, coping with data velocity is vital for making timely decisions and controlling the value chain. Data Variety: Data can take many diverse forms: route plans, SLA data, delivery dashboards, inventories etc. Easily aggregating and reconciling heterogeneous data is essential so that it can be shared with clients in meaningful and actionable ways

4 Dealing effectively with Big Data ultimately translates into the capacity to analyze massive amounts of volatile and heterogeneous data, to extract intelligence from these data in real-time and finally, to share that intelligence with all the stakeholders involved in the supply chain. Traditional data warehouses and Business Intelligence tools are no longer adequate to meet services providers needs for real-time intelligence. Data warehouses do not allow onthe-fly updates to data. Because they involve batch processing, they usually lack the flexibility needed to meet changing information requirements. Traditional BI reporting tools were initially built for reporting purposes and focused on what happened? However logistics service providers need predictive capabilities, such as scenario analysis and simulations to better anticipate what might happen. Consequently, analyzing Big Data requires new, innovative technologies that support informed and timely decision making. In-Memory Analytics for Big Data Management ActivePivot applies in-memory processing to resolve the challenge of Big Data analysis. ActivePivot is an in-memory multi-dimensional analytics engine that leverages computing power to significantly accelerate processing times. It continuously extracts data from operational systems, loads data into memory and calculates complex measures and indicators using advanced business logic. ActivePivot provides real-time intelligence for contextaware decision making - empowering all relevant logistics service providers stakeholders, including clients, to embed advanced analytics into their day-today decision-making. The resulting visibility over the supply chain translates into improved operational performance and better customer service. ActivePivot provides real-time intelligence for immediate decision-making Real-time insight ActivePivot provides real-time visibility into the supply chain, with an intraday view of the business at any given moment. It integrates data from various operational systems such as TMS, WMS or ERP and consolidates it incrementally so that any new transaction is immediately reflected in the analytical environment. Complex indicators With ActivePivot you can calculate, analyze and monitor complex indicators and KPIs. For example, measure inventory status at a country level or at a worldwide level at any time; monitor variations between planned and actual delivery times; measure service level agreements; or evaluate indicators to understand the impact of a disruptive event prior to making a corrective decision. ActivePivot applies statistical and predictive algorithms on very large sets of data. It integrates advanced business logic, such as quantile calculations or any tailored business rule, to produce complex indicators on the fly, and lets you make the right decisions, regardless of the data volume and complexity

5 Advanced simulations ActivePivot lets you simulate the impact of any change or a decision before it takes place. What-if analysis can be conducted on any data set, using any parameter. By evaluating alternative scenarios and making projections, you can immediately assess the impact of an unplanned change before making any decision. Self-service dashboards Using ActivePivot s front-end interface, you can provide personalized, self-service views to your clients with valuable information such as current versus planned deliveries. Users can formulate any query, get answers within split seconds and explore data at any required depth and granularity. Self-service dashboards provide your clients or your clients clients with actionable information at their fingertips, resulting in an unmatched customer experience. Example of dashboard Key Benefits of Using ActivePivot Gain real-time visibility into the supply chain Optimize capacity planning and delivery forecasts Analyze operational data instantly from multiple data sources React quickly to clients changing demands Increase service levels Run what-if analysis and scenario testing to simulate the impact of decisions Provide customers with self-service views and data queries Reduce Inventory - 3 -

6 USE CASE Real-time visibility into the supply chain As a supply chain manager in charge of controlling the transportation of goods to their final destination your goal is to quickly detect supply-chain disruptions, identify the most critical ones, and take corrective actions in order to stay in the SLA range. This means you need real-time insight so you can perform effective exception management. ActivePivot delivers instant analytics that helps you quickly react to disruptive supply chain events and take corrective actions. Key Features of ActivePivot With ActivePivot you can calculate complex indicators related to SLAs, and furthermore, quantify the extent to which SLAs are safe or at risk. ActivePivot integrates sophisticated business logic such as quantile calculation, statistical models or predictive algorithms that lets you address any business requirement. When an SLA is a risk, ActivePivot s rule-based engine Sentinel triggers alerts and notifies you of any disruption. It delivers contextual data over a sliding window of time to facilitate the detection of meaningful trends and critical events. Because operational data is updated incrementally and in real-time into the ActivePivot engine, you can immediately see the impact of a decision made when dealing with a disruptive event or a crisis. ActivePivot lets you change SLA parameters in the analytical environment at will, without requiring any programming skills or the help of IT to design a new report. This brings analysis flexibility so that you can independently adapt queries to your specific needs. What is the fraction of goods that are on time, up to 2, 5 or n days late? If the SLA is to deliver 70% of the goods in less than 3 days, how many days are actually required to transport 70% of the goods? Is the observed timeframe closer to 2 ½ days (slight risk) or close to ½ day (safe zone) Which fraction of the 70% of the goods are actually shipped in less than 3 days? TYPICAL QUESTIONS - 3 -

7 USE CASE Capacity optimization As a platform manager your goal is to optimize space availability in warehouses and logistics platforms in order to reduce costs. However, frequent variations in the quantities of goods to be delivered require that you have real-time insight into data at any given moment. What is the volume of goods that will transit on the logistics platform tomorrow, in one or two week s time? If a client suddenly increases by 30% the volume of goods to be delivered, is there a risk of a bottleneck on any of the transit platforms? Key Features of ActivePivot ActivePivot has a unique ability to incrementally aggregate data that arrives from several operational systems in realtime. Any change made in the operational systems (TMS, WMS etc.) is immediately reflected in ActivePivot s analytical environment. -4- Real-time data updates and calculations are carried out and displayed automatically, without requiring any refresh, or batch process. For how many days has an inventory of goods been idle in a warehouse? If the expected pick-up time is in a month, is it worth storing inventory in the rear of the warehouse in order to optimize storage space? TYPICAL QUESTIONS ActivePivot creates consolidated views of the variations between planned and actual deliveries at any given time. Equipped with an actionable delivery dashboard, you can instantly view delivery and space status, optimize capacity and avoid any bottleneck in warehouses and transit platforms.

8 USE CASE Consolidated view of the business As an executive manager, you must have a global, consolidated view of the entire supply chain operations to comply with service level agreements. ActivePivot provides you with just that, with aggregated views of any angle of your supply chain for immediate business decisions related to current status of any operation, such as SLA, inventory and delivery. Key Features of ActivePivot Data aggregation: ActivePivot aggregates data coming from several sources and presents it with several levels of consolidation based on your needs. For example, the status of an SLA can be instantly displayed in its most aggregated form (a country) or its most granular form (a point of sale). Drill-through: Intuitive slice and dice complemented by fast drillthrough to underlying details provides the exact level of information you need for context-aware decision making. Limit monitoring: ActivePivot s rule-based engine Sentinel lets you define business rules and associated limits that can be monitored over specified periods of time. In case of a limit breach, ActivePivot Sentinel triggers alerts, and also provides recorded contextual information to monitor the impact of corrective actions. Such information can be presented in a dashboard that you can share with your clients. What is the consolidated SLA status for a client per country, per brand? If an SLA has deteriorated, has the situation improved as a result of corrective actions taken? Is the improvement trend fast enough since the decision was made? TYPICAL QUESTIONS - 5 -

9 USE CASE Reactivity to changing demands As a logistics service provider you are frequently forced to change your delivery plans. This may be due to clients changes, modifications in demand, and revised sales forecasts. The ability to factor in and respond quickly to such unplanned changes is critical to meet your clients growing expectations. ActivePivot lets you methodically address such events by simulating the extent to which an unplanned change impacts other elements of your supply chain. Key Features of ActivePivot Instant simulations and what-if analysis can be conducted on any data set, using any parameter. By evaluating alternative scenario and making projections, you can immediately assess the impact of any unplanned change on the supply chain prior to making any decision. ActivePivot continuously processes new events using optimized data compression algorithms and multithreading. Continuous event processing is one of the key enablers to the intraday view of the outbound logistics process. If an inventory of goods has been re-routed to a new destination, how long will the revised delivery take? Do I have sufficient capacity (storage space or fleet size) to ensure the delivery? If not, is it worth to buy/rent extra capacity considering the SLA? How will a change requested by one client impact the SLA of other clients? TYPICAL QUESTIONS Once a decision has been made and subsequent transactions validated in the operational systems, ActivePivot adjusts the views in the analytical environment without any latency

10 USE CASE Accurate delivery forecasts Every day, and sometimes several times a day, your clients and their own clients want to be aware of the status of their deliveries. Using ActivePivot you can provide your clients with full visibility over their goods as they move through the supply chain. Key Features of ActivePivot Speed is achieved through ActivePivot s powerful in-memory computing capabilities. Exceptional performance delivers results and drill-downs within milliseconds. Flexibility is achieved since ActivePivot does not lock users with pre-canned reports. Users are free to explore all the data stored in the multidimensional environment by querying it the way they want, as often as they need without involving IT. -7- Where are the goods in transit and for how long? Security is achieved with ActivePivot s segregated rules based on users roles and profiles. This ensures that a user at client A will never access the data related to client B. Conversely a manager at client A will access different data than his subordinate co-workers. ActivePivot adapts the views based on access rights to ensure confidentiality. How many goods will be delivered at the end points of sales at day+1, day+2, day+3? What is the delivery status down to each good s single id? TYPICAL QUESTIONS ActivePivot s personalized self-service views show the latest status on planned and actual delivery dates. Users can formulate any query, get answers in split seconds and explore data with no limit to the depth of analysis.

11 I would like to speak to a Quartet FS expert about ActivePivot and Supply Chain. Please Contact contact me.

12 LONDON 3rd Floor, Napier House 24 High Holborn London WC1V 6AZ, UK Tel: Fax: NEW YORK 1412 Broadway Suite 2300 New York, NY USA Tel: Fax: PARIS 46 rue de l Arbre Sec Paris, France Tel: Fax: SINGAPORE 29 C Stanley Street, # Singapore Tel: HONG KONG 21/F On Hing Building 1 On Hing Terrace Central, Hong Kong Tel: About Quartet FS Quartet FS provides business users with instant insight into massive amounts of data streaming at high frequency for timely and context-aware decision-making. Using Quartet FS in-memory aggregation engine ActivePivot, organizations are able to build 24x7, sense-and-respond applications that help them accelerate business performance, optimize operations, reduce operational risk and react to the unexpected. Quartet FS, founded in 2005, is a privately owned company with offices in London, Paris, New York, Hong Kong and Singapore. With more than fifty live implementations in large international groups, the company serves customers in many verticals, including financial services, market exchanges, logistics, and retail. For more information please visit: quartetfs.com Follow us: Copyright All Rights Reserved, Quartet Financial Systems ActivePivot and its logo are trademarks of Quartet Financial Systems.

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