managing a connected supply chain – key imperatives & considerations at automotive logistics,...

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Know Sooner. Act Faster. Managing a Connected Supply Chain Key Imperatives & Considerations Aamer Rehman – VP, Industry Strategy & Solutions Automotive Logistics Conference - 2013

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Supply chains continue to become more complex, globally distributed and volatile. Whether it is demand variability, fulfillment risks, natural calamities or commodities shortages, the traditional siloed approaches are inadequate for managing end to end supply chains. The speaker will examine some of the key imperatives for end to end visibility, alignment and synchronization and discuss practical considerations as automotive companies launch supply chain transformation initiatives.

TRANSCRIPT

Page 1: Managing a Connected Supply Chain – Key Imperatives & Considerations at Automotive Logistics, September 2013

Know Sooner. Act Faster.Managing a Connected Supply Chain

Key Imperatives & Considerations

Aamer Rehman – VP, Industry Strategy & Solutions

Automotive Logistics Conference - 2013

Page 2: Managing a Connected Supply Chain – Key Imperatives & Considerations at Automotive Logistics, September 2013

2Copyright © 2013 Kinaxis Inc. All Rights Reserved.

Complexity in Automotive Supply ChainDriving Visibility & Alignment & Synchronization Challenges

Supply Demand

External Factors:

• Supplier Consolidation

• Capital Investments

• Imbalance Growth

Internal Factors:

• Global Vehicle Platforms

• Components Commonality

• Supply Chain Risk

Page 3: Managing a Connected Supply Chain – Key Imperatives & Considerations at Automotive Logistics, September 2013

3Copyright © 2013 Kinaxis Inc. All Rights Reserved.

Complexity in Automotive Supply ChainLegacy Supply Chain Management is Inadequate

• Incomplete Representation of Supply Chain

• Large Amount of Data Spread Across Functional Silos / Applications

• Slow Response to Changes Due to Long Planning Cycles and Decision Latency

• Lack of understanding of “Capability to Fulfill” given demand & supply volatility

Page 4: Managing a Connected Supply Chain – Key Imperatives & Considerations at Automotive Logistics, September 2013

4Copyright © 2013 Kinaxis Inc. All Rights Reserved.

Five Common Traits for Supply Chain Management Leadership

Data: an agreed-upon set of facts to enable fast decisions

Capabilities: talented planners with the right profile and skill set

Strategies: prioritize the right components and place bets with good judgment

Extended collaboration: process to manage risk across company boundaries

Decision Making: clarifying the ultimate arbiter of cross functional decisions

Page 5: Managing a Connected Supply Chain – Key Imperatives & Considerations at Automotive Logistics, September 2013

5Copyright © 2013 Kinaxis Inc. All Rights Reserved.

Running head

Paradigm Change in Technology is Needed to Achieve Supply Chain Visibility, Alignment & Synchronization

Global representation of multi-tiered supply chain to view and align

demand requirements and supply constraints across platforms /

Tiers

Full Feature-BOM representation to model large number of options

and associated components, end of life and product transitions

Multiple full scale what-if scenarios in minutes and provide

collaboration with right stakeholders to conduct operational tradeoffs

Scalability & SpeedEliminate decision latency inherent with large order volumes, number

of constraints and components, functional silos and planning systems

Single data layer to enable quick decision support across any level

of detail across regions, divisions, planning horizons and tiers

Technological ImperativesKey Challenges

Supply Chain Visibility & Flexibility

Supply Consolidation & Availability

Information Integrity

What-If Simulation & Trade-Offs

Page 6: Managing a Connected Supply Chain – Key Imperatives & Considerations at Automotive Logistics, September 2013

6Copyright © 2013 Kinaxis Inc. All Rights Reserved.

Global Capacity Planning

& Constraint Management

Alignment AcrossPlanning

Timeframes

Supply Chain Risk Identification & Consequence

Evaluation

Global Cross-Functional

Continuous S&OP

Corporate Competencies Required for A Fully Functional Connected Supply Chain

Kinaxis provides unique capabilities to align and

synchronize multi-tiered supply chains