analytical solutions: supply chain intelligence · sas supply chain intelligence-- suite of modular...

Copyright © 2003, SAS Institute Inc. All rights reserved.

SAS Supply Chain Intelligence �Or how to manage the Flood

Gerhard HeldEMEA Program Manager Analytical SolutionsSAS EMEA HQ


SAS Supply Chain Intelligence Agenda! What is a Supply Chain?

! SAS Supply Chain Intelligence

! Customer Successes so far

! SCI Solution News

! SAS SCI � an emerging Concept


What is a supply chain? Key Players?

Typical supply chain process

Suppliers Manufacturers Distributors Retailers Consumers

Categories of typical supply chain players


�and how to manage the Data Flood

�Data rich but still information poor�

�Manufacturers have done the math:30,000 SKUs * 100 stores * 50 customers * 365 days = a LOT of data�

Source: Kurt Salmon Associates. Survey of Supply Chain Effectiveness, 2002


Supply Chains -Challenges players are facing

�How can I accurately

anticipate my customer demand

� taking into account buying cycles, market

trends, competitive activity � and then profitably shape that demand?�

�What are my actual product-

level costs across the extended

supply chain, and how can I lower

my shipping costs with this

insight?�

�How do I optimize supplier strategies

to lower supply-based costs?�

�How do I improve product quality

and reduce cycle times, while increasing

throughput and asset utilization?�

� Where should I hold inventories, and how much

inventory should I have to serve

forecasted customer demand?�


What is SAS Supply Chain Intelligence (SCI)?

Customer & demand insight

Goods & services flow


SAS Supply Chain Intelligence


What is the Value of SAS Supply Chain Intelligence?

SAS Supply Chain Intelligence -- suite of modular solutionsthat leverage existing investments in operational / transactional systems to:

� provide visibility, monitoring and diagnostic capabilities across the extended supply chain

� deliver actionable, analytics-based insight to manage uncertainty in the supply chain

Maximize profits at targeted customer & quality service levelsMaximize profits at targeted customer & quality service levels


Supply Chain Intelligence -Managing Uncertainty

How do I get the best value from my Suppliers?

How do I ensure �on target� performance? What are the total costs per SKU and how to keep them optimal?

How do I best meet demand and service levels within the limits of my cost structure?

How do I ensure the best products and processes in the execution of my Supply Chain?

Man

agin

g U

ncer

tain

ty

Monitoring your Supply Chain

Managing Demand

Managing Quality

Managing SpendMan

agin

g U

ncer

tain

ty


Supply Chain Intelligence

Process Intelligence / Warranty Solution

Supplier Relationship Management

Demand Intelligence� How do I meet customer service levels?� What are my optimal stocking levels?

� How should I price my product?� How do improve forecast accuracy?

� What are my optimal schedules?� How should I measure my performance?

� How do I predict failure? �What is the impact of process on quality?

Man

agin

g U

ncer

tain

ty

��

How reliable are my deliveries?How can I increase the fill rate?

� How to reduce costs of running a promotion? � What is the impact of new product on category?

SCOR Metrics / ABM / VCA

� What is my total cost of acquisition?� Who are my best suppliers?

� What is my optimal supplier mix?� How can I monitor my supplier performance ?


ERP systemsERP systems

Supply Chain Supply Chain ManagementManagement

Supply Chain Supply Chain IntelligenceIntelligence

Exec

ute

Exec

ute

Plan

Plan

Ana

lyze

Ana

lyze

Mon

itor

Mon

itor

Enables data Enables data access / access /

management, management, reporting and reporting and

monitoringmonitoring

Improves Improves planning inputs planning inputs

based on based on analysisanalysis

Generates Generates actionable actionable insights to insights to

manage manage uncertaintyuncertainty

Leve

rage

s ex

istin

g in

vest

men

tsLe

vera

ges

exis

ting

inve

stm

ents

Del

iver

s an

alyt

ical

insi

ghts

Del

iver

s an

alyt

ical

insi

ghts

Improves Improves ability to ability to

monitor and monitor and enhance enhance

supply chain supply chain performanceperformance

Supply Chain Intelligence vs. others in Supply Chain Space


How does SAS deliver Supply Chain Intelligence?

ERP and Traditional Supply Chain Management SystemsERP and Traditional Supply Chain Management Systems

SAS Demand SAS Demand IntelligenceIntelligence

�� Demand Demand PlanningPlanning

�� Pricing Opt.Pricing Opt.

SAS Demand SAS Demand IntelligenceIntelligence�� Inventory Inventory

PlanningPlanning

SAS Value Chain AnalyticsSAS Value Chain Analytics

SAS ProcessSAS ProcessIntelligenceIntelligence

SAS SAS Supplier Supplier Relationship Relationship ManagementManagement

LinkedLinkedSupply Supply Chain Chain

SolutionsSolutions

SAS Demand SAS Demand IntelligenceIntelligence


�� Price/Prom Plan.Price/Prom Plan.

Solution Implementation ServicesSolution Implementation Services

Customized Supply Chain Offerings from SASCustomized Supply Chain Offerings from SAS

SAS Intelligence ArchitectureSAS Intelligence Architecture

Field Field --Developed Developed

CapabilitiesCapabilities


Many companies rely on SAS to significantly improve their organization�s performance.

SRM:

! Schneider Electric

! Bayer CropScience

PRI, Quality:

M-I Drilling Fluids

Kraft

W.L. Gore & Associates

Altis Semiconductor

Maytag Appliances

American Honda


Many companies rely on SAS to significantly improve their organization�s performance.

VCA:

! Kimberly-Clark

! CHEP

Demand Intelligence:

! Lubrizol

! MI Drilling

! (Large Italian CPG)

! Commerzbank

! Europay

Plus more than 1400 other customers across Plus more than 1400 other customers across multiple industriesmultiple industries


Schneider Electric

! The Company:� World�s largest manufacturer of electrical distribution

systems and components� 70,000 employees in 130 countries � Sales are up 15.7 percent to �9.7 billion

(US$8.8 billion)� Purchasing organization has four key markets, each

worth $1 billion

! The Problem/Objective:� Find cost savings through more efficient supply-chain

management


Schneider Electric

! The Solution:� SAS Supplier Relationship Management

! The Benefit:

�Our SAS SRM system has enhanced our view of the business. Before now, we did not have a comprehensive, worldwide view of purchasing. The whole purchasing function has gained much more focus and attention within the organization as a result.�

- Project Manager


Kimberly-Clark

! The Company:� Second largest household/personal care product

company in the US, Europe: no 1 in consumer tissue.� 400 consumer brands, number 1 or 2 in 76 countries

! The Problem/Objective:� Provide �true� costs of processes/products/services/

customers � Concentrate on value-adding activities � new supply

chain strategies, deliver information to decision making.� Analyze the costs of delivery/distribution cycle (2-6

months, warehouses in 16 countries, 18,000 customers)


Kimberly-Clark

! The Solution:� SAS Value Chain Analytics to run on top of SAP R/3.

! The Benefit:

�It�s (SAS VCA) the industry standard in this area. � With SAS VCA at the heart of the solution, we can do all the supply chain modeling, simulation and planning which we need�

Issy AydinerFinance Director Supply Chain, Kimberly-Clark Europe


Altis Semiconductor

! The Company� Joint venture of Infineon Technologies and IBM (IMD)� World class producer of �System on Chip�, dense

SRAM, DRAM mass-production

! The Problem:� Quality and yield problems in semiconductor production� More than 300 process steps by products� SAS quality application in place for each step but still

unexplained yield �drift�


Altis Semiconductor

! The Solution:� Combine data across all process steps � Enterprise Miner uncovered unknown interaction

between wet and annealing processes

! The Benefit: � 2% yield improvement (� 1.5 Mill)� SAS solution paid itself after 1 month of recovery


Europay Austria

! The Company:� Leading Company for cashless payments in Austria

(80% of all transactions)� Fully owned by Austrian banks

! The Problem:� Develop an efficient system for managing the stocking

of ATMs

! The Solution:� Optimized filling model based on costs, transactional

data, and the number and duration of periods when the machines were empty

� SAS/HPF and SAS/OR as analytical engine


Europay Austria

! The Benefit:

"Every cash machine offers a savings potential of around � 3,000, which, with 2,750 cash machines throughout Austria, comes to an annual total of at least � 8.5 million." - Christian Gihl, project manager


SCI Launch Activities

! 10-12Feb03: External launch at Logicon, Amsterdam� SAS Gold sponsor, Mike Haydock to chair session,

paper from Kimberly-Clark, SAS booth.

! 13-15May03: ECR Europe, Berlin� SAS SCI booth, specific focus on SAS VCA launch

! 17-19Jun03: SEUGI � SCI in Opening Session, CFO stream, SCI stream,�

! Reference lists US, EMEA

! Analyst and press activities


Leading Analysts on Supply Chain Analytics

Companies are supplementing the initial efficiency gains and subsequent cost savings that were achieved by implementing operational software applications in ERP, CRM, SCM, and ecommerce with the value enhancingfunctionality of analytic applications

Source: IDC Research, 2001


AMR on SAS SCI

! �SAS has also had great success in performing advanced customer analytics in the B2C and B2B worlds, and is now focusing on its SCI suite that will encompass forecasting, logistics planning, a supply chain event analyzer, and other areas�

! The company has been thankfully hiring huge pools of talent from the supply chain world to support this initiative�

! �It has got the right recipe, the right ingredients, and the right chefs--it just needs to hurry up and serve up lots of tasty analytic tapas to the hungry masses�

Source: AMR Research, 2003


Things company can now see

Managing Spend � SAS SRMSAS SRM

Typical Company Infrastructure


SAS SRM Release 2.4! Available in May

! Includes the following modules:� Spend Analysis � Ranking� Data Input (new)� Supply Base Optimization (new)� Scorecard option (SPM)

! Note: a solution adapter for SRM has been developed


Drivers of Value in Manufacturing

ValueValue

QualityQuality

CostCost

SpeedSpeed FlexibilityFlexibility

. . . are context and time dependent


Managing Quality -SAS® Process Intelligence 2.5

InformationStore

InformationStore

APCAPC

MaintenanceManagementMaintenanceManagement

MaterialControlMaterialControl Data

ContentData

Content

ProactiveAnalysis &Reporting

ProactiveAnalysis &Reporting

Exploration,Learning &

Improvement

Exploration,Learning &

Improvement

StrategyAlignment &Scorecarding

StrategyAlignment &Scorecarding

Global KnowledgeGlobal Knowledge

Automatic Process AlertsAutomatic Process Alerts

Root Cause InvestigationRoot Cause Investigation

InputInterface

MESMES

SPCSPC

SchedulingSchedulingEquipmentAutomationEquipmentAutomation

DispatchingDispatching

Operational Data Collaborative Space

SAS Process IntelligenceSAS Process Intelligence


SAS® Process Intelligence 2.5

! Changes and Enhancements� Easy to use data interface (IDF) and integrated

automatic ETL process� Complete rework of the data model (UDM and ADM)

and of the query engine� New client-side user interface for the Agent� Improved scalability� Extended configurability


What is the difference in cost between various distribution strategies?

What is the difference in cost between various distribution strategies?

I need to measure how my practices affect my trading partners� costs, and vice-versa, in a manner that all parties will agree with.

I need to measure how my practices affect my trading partners� costs, and vice-versa, in a manner that all parties will agree with.

How much of my Gross Margin is eroded by supply chain costs?

How much of my Gross Margin is eroded by supply chain costs?

What are the financial implications of adopting CPFR?

What are the financial implications of adopting CPFR?

If inventory levelsare reduced across the chain what is the cost saving for each partner?

If inventory levelsare reduced across the chain what is the cost saving for each partner?

What are the biggest costs in the value chain when running a promotion and how can I reduce them?

What are the biggest costs in the value chain when running a promotion and how can I reduce them?

Monitoring Your Supply Chain �Financial Intelligence

What is the most profitable assortment of products to have in the category?

What is the most profitable assortment of products to have in the category?

How will the new product impact total category profitability?

How will the new product impact total category profitability?


Oros Value Chain Analyzer

SAS Value Chain Analytics

EnterpriseGuide

DataWarehouse8.2 & ETL

Value ChainAnalyzer

6.0

Information DeliveryPortal

Extract, transform & load data

Build, view, navigate& manipulate models

Report & view results

Deploy information


Managing Demand �SAS Demand Intelligence

Accurate, scalable forecasts which handle

" Seasonality

" Promotions

" New products

" Slow-moving goods

Optimal inventory replenishment policies

" When?

" How much?

" Service levels

" Costs

Optimal pricing strategies & promotional planning

" Effects of price changes on demand

" Covering everyday, promotional, and clearance pricing


SAS Demand Intelligence

! Available with SAS 8.2:Forecasting:� SAS/ETS Software� SAS/HPF (High Performance Forecasting)− Automatic generation of time series, scalable, finding best

model, batch orientedOptimization:� SAS/OR Software� SAS/IRP (Inventory Replenishment Planner), exp.

! SAS Demand Intelligence � 1/2Q04� Demand Planning� Inventory Planning � Price and Promotions Planning


SAS SCI � an emerging Concept

SAS Demand SAS Demand IntelligenceIntelligence�� Inventory Inventory

PlanningPlanning

SAS Value Chain AnalyticsSAS Value Chain Analytics

SAS SAS SRM SRM SAS Demand SAS Demand IntelligenceIntelligence


�� Price/Prom Plan. Price/Prom Plan.

LinkedLinked

Supply Supply Chain Chain

SolutionsSolutions

SAS Supply Chain Performance IntelligenceSAS Supply Chain Performance Intelligence

�� SAS Process SAS Process IntelligenceIntelligence

�� SAS Warranty SAS Warranty AnalysisAnalysis

Customized Supply Chain Offerings from SASCustomized Supply Chain Offerings from SAS

SAS Intelligence ArchitectureSAS Intelligence Architecture

Field Field --Developed Developed

CapabilitiesCapabilities

Solution Implementation ServicesSolution Implementation Services

ERP and Traditional Supply Chain Management SystemsERP and Traditional Supply Chain Management Systems


Conclusions

! Supply chains improvements are based on optimal business processes and software for accelerated improvements

! The competitive advantage of ERPs are gone �supply chain analytics/SCI deliver targeted value on top

! SAS has a comprehensive and further emerging offering for targeted SCI solutions


Information Sources on SCI

! SCI solution page � links to SRM, Process Intelligence, Demand Intelligence and Value Chain Analytics pages http://www.sas.com/solutions/sci/

! Bettermanagement.com: Supply Chain Intelligence Authority http://www.bettermanagement.com/authorities/default.aspx?a=12

http://www.sas.com/solutions/sci/

http://www.bettermanagement.com/authorities/default.aspx?a=12

http://www.bettermanagement.com/authorities/default.aspx?a=12

analytical solutions: supply chain intelligence · sas supply chain intelligence-- suite of modular...

Documents