cloud computing: aspirin for supply chain headaches · supply chain manager cloud next-gen erp...

M U R A N O C O R P O R A T I O NThe Value Chain Integration Company

Cloud Computing: Aspirin for Supply Chain HeadachesFebruary 16, 2016

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OUR MISSION

HELP ORGANIZATIONS BUILD RESILIENT, INTEGRATED,

STREAMLINED, AND EFFICIENT (RISE) SUPPLY CHAINS

SUPPLY CHAIN MANAGER

CLOUDNEXT-GEN ERP SUPPLY CHAINS

FORTUNE 1000 COMPANIESPUBLIC SECTORSMALL & MEDIUM ENTERPRISES

FASTEASYAFFORDABLE

FOCUS ON YOUR CORESIMPLIFY OPERATIONS‘RISE’ SUPPLY CHAINS

SWITCH FROM OLD TO NEW


©Copyright 2016. Property of Murano Corporation. All rights reserved.WWW.MURANOCORP.COM

©Copyright 2016. Property of Murano Corporation. All rights reserved.

Enterprise Resource Planning

Online B2B Marketplaces

Big Data & Analytics

Supplier Relationship Management

Supply Chain Visibility & Integration

Integrated Job Portal

Customer Relationship Management

Supply Chain ManagerCloud Supply Chain Resource Planning Software



Supply Chain Manager Webinar on Feb 23, 2016Registration Details: www.muranocorp.com

http://www.muranocorp.com/



Key Cloud Takeaways

Small & Medium Enterprises can Automate Operations in 3 Months

Fortune 1000 Enterprises can Rapidlyo Automate Growth Market Business Units

o Deploy a Complimentary Cloud App

Integration is the Holy Grail

Establish an Integrated and Resilient Supply Chain Network of the Future

Embrace Cloud: It is Supply Chain Professional’s Best Friend



Cloud Computing is … Cloud Computing is NOT …

Ubiquitous If you can NOT easily access your ERP from outsideyour offices using an Internet Browser

Convenient If you can NOT access your ERP from your iPad

On-Demand Network Access If you can NOT add new users, lines of business, geographies easily without having to rely on expensive consultants

Shared Pool of Configurable Computing Resources (Networks, Servers, Storage, Applications, and Services)

If you host your ERP instance in a remote data center

Rapid provisioning (Speed) If you have wait many years to bring online a new business unit

Minimal management effort or service provider interaction (Effort)

Relying on expensive consultants for many years to implement ERP is NOT Cloud Computing

Source: National Institute of Standards and Technology (NIST) defines Cloud Computing (http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf)

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http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf


Agenda

‘Supply Chain Headaches’ Remedied with Cloud Computing

Small and Medium Enterprise Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing

Fortune 1000 Enterprise Cloud Options

Supply Chain Network of the Future

Seven Steps to Successful Cloud Adoption



Speaker Bio


Sree RajagopalanPresident and CEOMurano Corporation68 T.W. Alexander Drive, Suite 207Research Triangle Park North Carolina [email protected] (O)919-996-9041 (M)

o 23 years of Fortune 500 Experience o Help Organizations Solve Supply Chain Challenges

using Innovative and Modern Technologyo Manufacturing (with focus on Medical Device

Industry), Distribution, and Consumer Packaged Goods (CPG) Industries

o Responsible for Sales, Marketing & Implementation of Murano Corporation’s flagship Enterprise Cloud Software, Supply Chain Manager

o Frequent Speaker at APICS Chapter Meetings

WWW.MURANOCORP.COM

mailto:[email protected]


What causes Bullwhip Effect in Supply Chains?


a. Lack of synchronization among supply chain members

b. Supply patterns do NOT match demand patterns

c. Lack of collaboration and communication between supply chain members

d. Lack of information visibility into inventory levels, anticipated production, and material in transit

e. All of the above

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TRIGGER SYMPTOM IMPACT MEDICINE MONITOR

Component Deliveries

Rush Customer Orders

Invoicing Errors Profits (-)

Air Freight Charges

Cost of Goods Sold (+)

E-Invoicing & Spend Analysis

Supply Chain Collaboration

Parts ShortagesProduction Shutdown

Line Down Costs

Supply Chain Visibility

Customer Demand

Higher Component

Prices

Cost of Goods Sold (+)

Online Marketplace

Direct Spend

On-Time In-Full (OTIF)

Inventory Turns

Gross Margin

TRIGGER SYMPTOM IMPACT MEDICINE MONITOR


Agenda

Supply Chain Headaches Addressed by Cloud Computing

Small and Medium Enterprise Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing






Lega

cy F

ore

cast

-To

-Cas

h P

roce

ss


Creates Production plans using

Spreadsheets

Manually Creates Production Orders and

Shares Orders with Production Staff

Production Order

Goods Receipt from Vendor

Goods Receipt from Production/

Shipping to CustomerInvoice sent to

Customer

Forecast-To-Cash Process

Payment Received from Customer

ASN Updates from Logistics Providers

Update Bank Account

Advance Ship Notice (ASN) for Suppliers

POsto

Suppliers

Creates Production plans using

Spreadsheets

Manually Creates Production Orders and

Shares Orders with Production Staff

Production Order




Customer




Update Bank Account


POsto

Suppliers


Lega

cy F

ore

cast

-To

-Cas

h P

roce

ss


Manual

Error Prone

Open Loop

System

Time-Consuming

Arbitrary


Clo

ud F

orec

ast-

To-C

ash

Proc

ess


Sales Forecasts and

Customer Orders

Production plan

Forecast –Driven Demand Planning/MRP (versus Reorder Points) and Use of Alternate Materials)

Production Order




Customer




Update Bank Account


POsto

Suppliers


Clo

ud F

orec

ast-

To-C

ash

Proc

ess


Sales Forecasts and

Customer Orders

Production plan

Forecast –Driven Demand Planning/MRP (versus Reorder Points) and Use of Alternate Materials)

Production Order




Customer




Update Bank Account


POsto

Suppliers

Automated

Accurate

Integrated

Fast

Efficient


What Factors can Affect Sales Forecasts?


a. Sales Demand Patternsb. Economic Conditionsc. Competitor Actionsd. Market Researche. Product Mixesf. Pricing and Promotional Activitiesg. All of the above

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Sales & Operations Planning (S&OP) in the CloudBusiness Benefits


SalesGrowth

Cost Reduction

Working Capital Improvement

+2-4%

o Improved Serviceo Reduced Out-of-Stockso Improved New Product Launcho Improved Promotions Effectiveness

5-10%

o Material Cost Reductiono Freight Cost Reductiono Labor Productivity Improvemento Fixed Cost Optimization

20

-3

0%

o Finished Goods Inventory Reductiono Raw Materials and WIP Reduction

Source: http://www.supplychain247.com/article/top_performer_benefits_of_effective_sales_operations_planning



Sale

s &

Ope

rati

ons

Plan

ning

(S&

OP)

in t

he C

loud

Proc

ess

Sales ForecastingPredict future sales based on historical sales data, analysis of market trends, customer surveys and sales estimates

Demand PlanningValidates the sales forecast, considers the production capacity and incorporates statistics to meet market demand

Supply PlanningReview available capacity and scheduling the production based on available resources, costs and duration

Pre-S&OPBalance between Demand and SupplyCross-Functional Teaming

Executive S&OPData-Driven Decision MakingClosed Loop Systems



JAN FEB MAR APR MAY JUN JUL AUG

SALES X X X X X X X X

OPERATIONS X X X X X X X X

INVENTORY X X X X X X X X

Sale

s &

Ope

rati

ons

Plan

ning

(S&

OP)

in t

he C

loud


Agenda


Manufacturing Case Studyo Asian Electrical Devices Manufacturer Improves Operational Efficiency Using Cloud Computing






Operational Agility

Growth Markets

Downward Price Pressure

TREND

Cloud Technology

“Glocal”

Operational Efficiency

RESPONSE

Legacy ERP

Legacy ERP

Legacy ERP

CHALLENGE

“New Normal” for Multinationals

Sales Only Country Operations

Local

International

Sales & Manufacturing Country Operations

Growth Strategic Business Units

Complex Organizational Hierarchies and Business Models

Core OperationsCore Operations

Core Operations

Growth Strategic Business UnitsGrowth Strategic

Business Units



Sales & Manufacturing Country OperationsSales & Manufacturing

Country Operations

Global HQ



Local

International



Complex and Heterogeneous Technology Footprint

Core OperationsCore Operations

Core Operations


Business Units




Country Operations

Global HQMultiple Software

o Vendorso Instanceso Versions

SlowHeavyComplexParalyzing



Local

International



“Glocal” Enterprise Software Model“New Normal” | Grow Your Markets | Faster, Leaner, and Simpler

Core OperationsCore OperationsCore Operations

(Legacy)


Business Units(Cloud)



(Cloud)


Country Operations(Cloud)

Global HQ(Legacy)



Local

International



“Glocal” Enterprise Software Model“New Normal” | Grow Your Markets | Faster, Leaner, and Simpler

Core OperationsCore OperationsCore Operations

(Legacy)


Business Units(Cloud)



(Cloud)


Country Operations(Cloud)

Global HQ(Legacy)


Two Major Softwareo ERPo Instanceso Versions

FasterLeanerSimplerEnabler



Suppliers

Banks

Logistics Providers

Contractors

ERP/Legacy

Systems

Contract Management

Requisitions

PurchasingFinancials

Spend Analysis

Strategic Sourcing

Sourcing ProjectsShortlist VendorsRFxVendor Selection ScorecardSelect Vendor

Manage Contracts and CatalogsVendor OnboardingVendor PortalVendor GeotaggingVendor DiversitySustainability

Search CatalogsCheck Prices Check AvailabilityCreate Online Shopping CartsCreate RequisitionsRequisition Workflow & Approval

Create Purchase OrderAdvance Ship Notice (ASN)Goods ReceiptReturnsQuality InspectionsDelivery TolerancesSupplier Performance

Vendor InvoiceE-Invoicing2-Way/3-Way MatchVendor Payments

Opportunity IdentificationCompliance TrackingPerformance ManagementCommodity HedgingCurrency HedgingDiversity ManagementSupplier Risk ManagementCommodity ForecastingReverse Auction

Features in this pen are in SCM roadmap and will be available at no additional cost

Cloud Supply Chain ManagerSource-To-Pay Process Features

Level 4

Level 3

LEVEL

Level 2

Level 1

Level 0

Manufacturing Control

Business Planning & Logistics

Manufacturing Operations

Management

DOMAIN

Production Process

o Sales & Operations Planning

o Demand Planning

o Planning Horizon: Days, Weeks, Months

ACTIVITIES

o Production Planning & Scheduling

o Quality Inspection

o Horizon: Seconds, Minutes, Hours

o Manual and Automated Oversight of Production Process

o Process Improvements

o Physical Production Process


Agenda



Distribution Industry Case Studyo Distributor Solves Quote-To-Cash Business Process Challenges Using Cloud Computing






Cloud Supply Chain ManagerIndustry Supply Chain Solutions

Suppliers

Logistics Providers

Contractors

Ma

nu

fac

ture

r

Product Specs Shipments

Sales Forecasts Capacity

Material Demand Transactions

Inventory Returns

CLOUD

Share Critical and Non-Confidential Supply Chain Information Securely and Expeditiously Easy to Implement and AdoptMinimal Infrastructure NeededReduce dependence on expensive and antiquated EDIGain Improved Supply Chain Visibility & IntegrationMinority and Disadvantaged Vendor Friendly

Port

alED

ID

irec

t In

tegr

atio

n



Today, Amazon Sells 2.2 Million Products from 17 Categories to Businesses



Supply Chain Insights Big Data Diversify New Geographies Integrated Predictive Analytics

Online Industry Marketplaces: Connecting Buyers and Sellers

B2C

Global

B2B

Marketplace

Cu

stom

ersSup

plie

rs

On

line

Sup

erst

ore

Spend Analysis

Logistics

Shipping

Inventory

Accounts Payable

Purchasing

Fulfillment

Accounts Receivable

Shipping

Customer Service

Transportation

Order Management

Inventory Visibility

E-Invoicing

Multi-Vendor Catalogs

Integrated ShipmentTracking

Integrated Online Marketplace


Agenda



Distribution Industry Case Studyo Distributor Solves Quote-To-Cash Business Process Challenges Using Cloud Computing




MURANO CORPORATIONTHE VALUE C HAIN INTEGRATION COMPANY ©Copyright 2016. Property of Murano Corporation. All rights reserved.


Identify Business Challenges and Expected Business Outcome(s)

Nominate a Business Champion and Sponsor

Build Supply Chain Partner Support

Establish a Cross-Functional/Cross-Supply Chain Pilot Team

Evaluate Cloud Options {pay close attention to Data Ownership, Security and Service Level Agreements (SLA)}

Implement New Processes and Cloud Technology

Measure Business Performance



BUSINESS INTELLIGENCE MARKETPLACE

Requirement Cloud On-Premise

Supply Chain Visibility Y N

Supply Chain Collaboration Y N

Online B2B Marketplace Y N

E-Invoicing Y N

Spend Analysis Y N

Integrated Shipment Tracking (ASN)

Y N

Business Intelligence Y N

Multi-Vendor Catalogs Y N

CLOUD VERSUS ON-PREMISE



Enterprise Resource Planning

Online B2B Marketplaces

Big Data & Analytics

Supplier Relationship Management

Supply Chain Visibility & Integration

Integrated Job Portal

Customer Relationship Management

Supply Chain ManagerCloud Supply Chain Resource Planning Software



Supply Chain Manager Webinar on Feb 23, 2016Registration Details: www.muranocorp.com

ask

Sree RajagopalanPresident and CEOMurano Corporation68 T.W. Alexander Drive, Suite 207Research Triangle Park North Carolina [email protected] (O)919-996-9041 (M)

http://www.muranocorp.com/

mailto:[email protected]

cloud computing: aspirin for supply chain headaches · supply chain manager cloud next-gen erp...

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