network of networks webinar 2017
TRANSCRIPT
Network of Networks StoryboardJanuary 4, 2016
For the Supply Chain Leader Who Wants to Rise Above
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Our Panel Today
Trevor Miles, Supply Chain Thought Leader, Kinaxis
Lora Cecere, Founder of Supply Chain Insights
Pawan Joshi, SVP of Product Management and Strategy, E2Open
Brian Tessier, VP of Innovation, Schneider Electric
Christine Barnhart, Center of Excellence, Berry Plastics
Cindi Hane, Vice President of Product Management, Elemica
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A cross-industry networking group to stimulate thinking on next-generation supply chains.
Face-to-face meetings/multiple times a year open to the business leaders and technology innovators in the ecosystem.
Development of Network of Network compliance guidelines.
What is the Goal of the Network of Networks Effort?
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Manufacturers, Retailers & Distributors Attending November Session
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Technology ProvidersAttending November Session
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Why Is This Necessary?
Today, it is too difficult and expensive to move data between trading partners within value networks.
There is no industry alignment on process canonical definition(s) to take advantage of next-generation capabilities in multi-tier processes.
Global trade is more complex and dependent on multi-party trading relationships. Companies are stuck. There is a need to leap frog the current state.
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The adoption of distributed and open technology by the ecosystem of
technology providers and business users to drive inter-operability in value
networks to improve business outcomes.
What Is the Network of Networks? (Working Definition)
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Attendee View in 2016
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Highest Maturity Is Reported for Invoicingand Settlement
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• Why is this work important for you and your company?• What are you hoping that we learn from this work to help the
industry?
Panel Discussion
Initial Testing
Project Name: Digital Supplier Onboarding – Network of Networks PilotLeader: Lora Cecere
KPI: Cycle time, number of non-automated touch points Unit Baseline Goal Entitlement
Gate Gen I Target Actual
D 1/20/17
M 2/15/17
A 3/1/17
I 7/1/17
C 9/1/17
Sponsor(s): B. Tessier (Schneider)
Team members Functional area % Dedicated
Comments: Potential benefits include productivity, cost reduction, improvement on on-time payments, accuracy (first pass yield), traceability, cleanliness of data and timeliness of vendor information updates.
Network of Networks Goal: “Adoption of distributed and open technology by the ecosystem of technology providers and business leaders to drive interoperability in networks to deliver new outcomes.”
Additional Members: SMES: Schneider Purchasing (CPO rep. Mike Neal)
Problem Statement: A recent sample of Schneider Electric’s supplier onboarding practices determined that on average, it takes 26 days and 31 value chain participants to complete the process. Non value added time (waiting, etc.) represents 47% of the time elapsed. Only 12.22 days were consumed by actual work. The inefficiency of this process is robbing the Supply Chain of needed agility.
Business Impact:Cost per transaction is estimated at $4,925, with downward departure driven by high volumes of low complexity supplier onboard. Large complicated onboarding is estimated to cost >$25,000 per application.Protracted transaction times limit the ability of the business to recover rapidly in the event of a quality or service issue.
Defect definition: Onboarded > 96 hours
Goal Statement:Reduction in complexity, time, and cost required to onboard vendors by leveraging automation and online capabilities. Ensure consistency and continuity throughout the onboarding process. Empower and enable value chain participants to “self serve” to be less dependant on their purchasing support structure
Scope:Process Starts: Need for new product or service
Process Stops: Vendor approved for procurement
Includes: Schneider Electric Partner BU vendor base, XXX company vendor base
Excludes:
Baseline Sigma: XXXX s
Target Sigma: XXXX s
Ending Sigma: XXXX s
Time
IDR-$$$$$$$
5-10%5-10%5-10%5-10%5-10%5-10%5-10%5-10%
TBD TBD TBD
Brian TessierThierry HanauCap GeminiD. Bechdolt
TBDTBDTBDTBDTBD
GSC-T (Schneider)IPO (Schneider)
Lab PM (CG)Six Sigma (Schneider)Community Directory
Network ModelingCognitive/Machine Learning
Blockchain
Need for new product or
service
Supplier consultation &
selection
Trading partner qualification
Negotiation & contract
management
Implement supplier
performance management
Integration workflow
Mapping specifications
Establish technical
connectivity
Test transactions Certify supplier on Network(s)
Certify supplier on the Network of
Networks
Supplier ready for procurement
PO Initiation PO Acceptance
Green: BlockchainYellow: Cognitive Learning
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Complexity – More than 35 systems currently in use at One Manufacturer
• e-Proc France• e-Proc COP• WF Payment Request Supplier/Employee• WF Ingenieria• VENUS• Utiles & Merchandising• TIGRES-PISTACHE• Syteline US• Suppliers modification and creation for SEII + S&S• Scala (Iran)• Sales reporting• SSRM• SE Code Creation• SAP XI Switzerland• SAP Switzerland• SAP S&S (Italy)• SAP Italy SEII• SAP Italy SE• PAPS• Order entry S/W MVI
• My Suppliers Portal• MVB Standards• MAGIC 400• Inventory Analysis S/W• Gestión de Garantías• GRAP (Brazil)• External Scala Programs• Engineering ICR Tracking• ENGINEERING• EDIS (Peru)• EDIS (Iran)• EDI Konverter (BND-Switzerland)• Baan V• Baan (Juno)• AS400 Jumb
65% of the Interaction is Through Email15% is through Excel
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• In your experience, how does the Schneider case study compare to what you see in the industry?
• How do you feel about the concept of a community directory for onboarding for data to be written once and shared in a distributed manner for onboarding?
• Why is this testing important for you?
Panel Discussion
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Growth of Global Procurement Organizations
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Need for Collaboration and Visibility Across Functions
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• What is important for the testing? What are your goals?
Discussion
Looking Forward
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Definition of Network of Network
Compliance for Technology Providers
2017
Process Canonical Evolution
2018-2020
Federated Technology Business
Model2019
Packaged Training Programs
2018-2021
Group Goals
Build Enough Cross-Industry Support to Deliver on Goals to Deliver on the Goals
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Next Meetings
Location Date Focus
Orlando April 12-14th Development of Network of Network Compliance
Germany April (TBD) Inaugural Event for Europe Hosted by BASF
Dallas July (TBD) Review of Compliance Standard on Process Definitions
Atlanta September 5th-8th Imagine 2017. Supply Chain Insights Global Summit.
Scottsdale November (TBD) Launch of Compliance
Future Testing
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Confluence of Technologies
BlockchainDistributed Processing
Cognitive Learning
Artificial Intelligence
Hadoop
Distributed Massive Parallel Processing
SparkStreaming
Data
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• Blockchain. Distributed logic of transactions and lineage
• Cognitive Learning. Use of machine learning and artificial intelligence to drive new insights/learning
• PMML. Open source for predictive modeling• Hadoop. Massive parallel processing• Spark. Streaming data clusters for real-time data
Together We Will Explore the Options
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Autonomous Supply Chain
Cognitive Computing
Machine Learning
Text Mining and Pattern Recognition
Predictive and Prescriptive
Analytics
Building the Autonomous Supply Chain
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Write once and use company and contact information many times.Community Directory
Reduce onboarding through once source of data.
Blockchain redefines visibility and track and trace.Traceability
Confluence of Blockchain and Spark/Internet of Things Redefine Lineage.
Bitcoin and Blockchain disintermediate traditional banking.Supply Chain Finance
Emergence of the supply chain digital walletAn alternative to EDI
Cognitive computing eliminates the need for master data management and standards.Interoperability
Data is mined through patterns and translated for context through cognitive computing. Shift from standards to process canonicals.
What Could Change?
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• What is your perspective? What technologies excite you? • Where is the greatest opportunity?
Panel Discussion
How Can You Get Involved?
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• Problem Statement: Supplier onboarding is manual taking 30-90 days. As a result, it is a barrier to onboarding new suppliers and has become a costly barrier to digital procurement.
• Goal: Test the potential of Global Directory Definition and define inter-operability with other existing networks. Assess the feasibility of write-once and use multiple times.
• Business Case: Decrease onboarding from 30-90 days to 2 days and decrease costs by 90%.
• Definition of Success: Successful onboarding interoperability between networks with a common directory
• Milestone: Testing Completed by the April Network of Networks Meeting
Project Charter for Phase I: Onboarding
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• Testing is open to the market.• This is neutral and independent work. The IP is open and available to
the market.• All vendors volunteer their time. Manufacturers provide data/testing,
and technology vendors provide expertise. • Results to be presented at the Network of Networks sessions and the
Supply Chain Insights Global Summit (September 5th-8th).
Ground rules
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• Additional thoughts?• Q&A from the audience?
Panel Discussion
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Wrap-up
• Making the digital pivot in value networks requires community testing. It requires a cooperative effort between technologists and business leaders.
• New technologies are unproven, but offer promise. Together, we want to form a path to move the industry forward.
Questions?
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Five Themes:1.Supply Chains to Admire2.Changing Economies and Changing Times3.Digital Supply Chain Innovation to Power Growth4.Driving Supply Chain Transformation5.Leadership and Supply Chain Talent
Register Now!• Registration is $1750 and includes breakfasts, lunches and
receptions• Seating is limited to 150 attendees• Discounted room rates at The Ritz-Carlton expire August 15 th
• Email us at [email protected]
www.SupplyChainInsightsGlobalSummit.com
Fifth annual event Designed for line-of-business leaders Explore the future of business processes
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Building Next-Generation Capabilities
7 Classes/Catalysts for Learning
• Supply Chain Metrics That Matter
• Building the Customer-Centric Supply Chain
• The Market-Driven Value Network Journey
• Making the Digital Pivot• End-to-End Supply Chain
Orchestration• Driving Improvement in
Decision Making Through Supply Chain Planning
• Building Agility Through Horizontal Processes
Online Learning
Benchmarking, Research, Social Engagement, Ideation Tournaments, and Innovative Case Studies in One Week Sprints
For more information: http://supplychaininsights.com/corpu-training/
Visit Us Online www.SupplyChainInsights.comwww.SupplyChainShaman.com
www.BeetFusion.comwww.LinkedIn.com/company/Supply-Chain-Insights
www.Slideshare.com/LoraCecere
Follow Us on Twitter @scinsightsllc
@lcecere
Attend a Live Eventwww.SupplyChainInsightsGlobalSummit.com
www.SupplyChainInsights.com/The-Shamans-Circle
Engage with Us!
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About Lora Cecere
• Founder of Supply Chain Insights• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014), Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015), Shaman’s Journal (2016)
• Partner at Altimeter Group (leader in open research)• 7 years of Management Experience leading Analyst Teams at Gartner
and AMR Research• 8 years Experience in Marketing and Selling Supply Chain Software at
Descartes Systems Group and Manugistics (now JDA)• 15 Years Leading teams in Manufacturing and Distribution operations for
Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.
Contact Information: • Email: [email protected]• Blog: www.supplychainshaman.com (15,000 pageviews/month)• Forbes: www.forbes.com/sites/loracecere• Twitter: twitter.com/lcecere (7,800 followers)• LinkedIn: www.linkedin.com/in/loracecere (140,000 followers)• LinkedIn Influencer: www.linkedin.com/today/author/446631