Logistics Visibility and Collaboration Where Data Meets Action

Transcription

1 Logistics Visibility and Collaboration Where Data Meets Action Amplify 2012 Phil Lambert Clo

2 TMS Ideal for SaaS Need visibility and control to understand the true nature of events To do this they need supply chain community enablement, integration, collaboration across multiparties, along with event-driven optimization Such collaboration requires shared global visibility and action. Cloud based connect platforms are needed Source: Paraphrased from Rising above the cloud Aberdeen Sept 2012

3 Rising Above the Cloud Type of Metric Best-In- Class Average Laggard Change in total global annual transportation spend PER UNIT HANDLED over the past year 4% reduction 2% increase 14% increase Annual global transportation spend as a percentage of shipment value Perfect Orders On-time and complete customer delivery 4% 7% 11% 97% 93% 92% Source: Aberdeen Group Sept 2012

4 Importance of Logistics Logistics Costs as a Proportion of Sales Logistics Costs by Industry Logistics Costs Components Transportation accounts for almost 50% of an average company's logistics costs, and transportation costs, as a percent of sales, are rising for many companies Source: ARC 2008, IBM Institute for business Value, 2005 Value Chain Study & Cap Gemini 2005 Third-Party Logistics Study

5 TMS Ideal for SaaS Transportation unlike warehousing or supply chain planning relies on a multi-enterprise, geographically dispersed network that includes a supplier, shipper, thirdparty logistics provider (3PL), carrier, and/or customer. All of these entities are involved in the process, and that setup really lends itself to network-based solutions that favor SaaS. Source: Gartner Group January

6 Islands of Optimisation Supplier Distributor Customer HR HR HR Finance Production e-logistics Warehousing Finance Production Warehousing Finance Production Warehousing ERP WMS SCP Source: Phil Lambert E Logistics 2000

7 Simple, Complex or Both

8 Today s Supply Chain Demand Driven Global Supply Network.

9 Lack of Visibility Increases Supply Chain Risks Lack of Visibility Lack of Confidence: Order status In transit inventory Forecasts Supplier performance Quality/Quantity issues Order cycle times Other Potential Consequences: Not able to proactively manage customer service issues Unable to respond quickly to revenue opportunities Delayed response to unforeseen events Additional costs, eg. higher inventory, unplanned overtime Lack the information to undertake root cause analysis

10 The Solution Multi-entity, multi-enterprise collaborative environment Global Visibility of where everything is and what s happening Management and Control of the Process Exception Management Automated Actions Flexibility On-going Analysis of KPIs, problems or areas for improvement

11 Dynamic Logistics Execution Visibility & Alerts During Execution Automated Actions Graphic Source: Hewlett Packard

12 Connectivity - Visibility ERP LSP ERP LSP WMS LSP ERP Supplier 1 Carrier Carrier Customer Supplier 2 Carrier Plant Carrier Distribution Hub Carrier Retail Shop Supplier 3 Carrier Graphic Source: Hewlett Packard

13 Connectivity is the First Step Building Integrated Demand-Supply Networks ROI Level of Maturity Source: Aberdeen Group November 2010

14 Visibility Maturity View Foundation Information Actionable Intelligence Dynamic Supply Chain Execution Integration Platform Internal Data One Version of the Truth Role based Dash Boards & KPIs Root cause Analysis Ad-Hoc Reporting Event Tracking Milestone Monitoring Automated Alerts Intelligent Messaging Automated Actions Supply Chain Process Automation External Data Visibility Platform

15 Visible Means Actionable

16 Solution The Industry Has Been Waiting For Elemica has recently become an Oracle BPO Partner for Oracle Transportation Management. This allows Elemica customers to access discrete portions of the Oracle OTM functionality, combined with the Elemica connectivity and collaboration capabilities using a SaaS business model. These are solution options that companies in the chemical industry seem to have been waiting for and should evaluate for implementation. Complex, Constrained and Undervalued: A Look Inside Chemical and Process Industry Supply Chain Logistics. Gartner, October 2011

17 Logistics Visibility and Collaboration Where Data Meets Action 30 October 2012 Phil Lambert