A Framework for Unlocking Real Value in your Asset Supply Chain The AOA (Asset Opportunity Assessment) Approach Explained www.intelitap.com InteliTap, LLC InteliTap Limited 2178 Plainview Ctr Barnsley DMC, County Way Powhatan, VA 23139 Barnsley, S70 2JW USA UK P a g e 1
Introduction Asset supply chains remain an area of unrealised value. This white paper provides you with the basic principles and a unique no nonsense approach to unlock the potential in your asset fleet, whether embarking on a new initiative or analysing for the very first time. Understanding an asset supply chain and identifying and smartly applying industry best practices that are relevant to a specific business model will benefit an organisation as it realises improved operational and financial performance of its asset fleet, adding true value to the bottom line. P a g e 2
Step One: Communicate your business objectives & asset supply chain issues to some providers Aligning your business objectives with your asset fleet problems sounds easy, but this can often be a very difficult task. Business objectives are usually known, however making that link can often require a detailed investigation and inherent knowledge of your asset supply chain, which some companies struggle with. Selecting a provider that has specific knowledge of your industry AND asset supply chains in general can greatly assist this process in the first instance. You are then ready to begin the official AOA process. The AOA Process Project Launch Business Assessment Baseline Model Visioning Solution Development Comparison Report Client Data Collection Data Validation and Analysis Step Two: Choose your provider and establish a mutual project study launch An official launch process will ensure alignment and effective conduct of project activities across both provider and client resources. Additionally, during the first step data collection activities are also launched. Tasks such as re confirming the scope of the project, determining and validating strategic content of the project along with cost and revenue components will be considered. Project management processes should be explained and your provider should present a detailed listing of the data elements required to support the AOA. The project plan will be created and communication will begin. P a g e 3
Step Three: Business Assessment To gain necessary understanding of your operating strategies, logistics processes, replenishment operations, customer channels and service requirements, and sourcing strategies, a business assessment is required. A good provider will evaluate this in depth to gain an understanding of your business that they can then synergise with their own particular expertise in the asset supply chain. They should provide you with a comprehensive list of tasks that they will complete in order to thoroughly perform the assessment. Step Four: Validate & Analyse the Data To Develop The Baseline Model Now you have collected the data, it should be validated, and analysed in order to prepare the baseline model. A good provider will be able to help you to provide most, if not all of the data in support of baseline model development, as they will have done this before many times and know many common tricks of the trade. They should also have an expansive database of previous projects and industry sources, and can leverage their proprietary decision support tools and tracking experience in brewing environments to establish an up to theminute Best Practice model. As the project moves beyond Baseline development, additional data collection efforts will be needed to support alternative scenario analysis. Step Five: The Baseline Model The master plan begins. The baseline model is an optimisation tool that should accurately reflect your network operations and the alternatives. This will later be referenced for cost and service improvement comparisons against alternative network scenarios. Step Six: The Alternative Scenarios? As your supply chain knowledge increases, it is not unusual that a requirement will surface for sensitivity analyses that have not originally been identified. Considering baseline results and data analysis, your provider will work with Senior Management to compile a list of alternative scenarios for further modeling if necessary. A good provider sees the project as a living, breathing organism and will have expertise and skill to ensure that a holistic & dynamic process is taking place. P a g e 4
Step Seven: Best Practice Comparison Summary Your provider should then prepare and present a summary that will help you to gain a real insight into potential benefits of the alternative distribution strategies that arise. This should be done using a proven methodology and advanced tracking and decision support tools. Figure 1 Example AOA Best Practice Comparison Summary Step Eight: The Solution After reviewing the scenario analysis with the management team, and scrubbing the optimum scenario for unidentified and counter intuitive conflicts or obstacles, you can now finalise a recommended scenario that will achieve your goals. P a g e 5
Summary Supply chains are complex in nature and immense value can remain locked despite the application of various initiatives and technologies such as RFID asset tracking. The AOA (Asset Opportunity Assessment) is a proven, systematic, process that, when performed with a provider with appropriate SCM expertise, will assist a company to develop and document conclusions and recommendations for the optimum asset management scenario and strategy. About InteliTap and VisibiliTy InteliTap s team of asset management experts have over 100 man years of experience managing over 5,000,000 assets in supply chains around the world. No other company comes close to understanding the asset supply chain vs Auto ID issues and opportunities the way we do. Our unique business model is built around documenting, controlling and optimising unique, value driving best practice areas in verticals such as keg fleet management and the gas cylinder industry. We realise that no two supply chains are the same, and the depth of knowledge in entire industries, often on a global scale, means that we can realistically assist you to extract genuine information from data. InteliTap will assess and understand your total supply chain, document your business rules and operating practices, and provide you with a comparison report against industry best practices many of which were invented by InteliTap themselves. The visibility solution is based on solid fundamental principles & skills that combines supply chain expertise, asset management, leading edge technologies (such as RFID and GPS). The end result is improved financial and operational performance of your assets. Simply speaking, InteliTap helps organisations make decisions that apply directly to the bottom line. P a g e 6