talleres estrategias en supply chain toby brzoznowski

Creating Value in Your

Organization Through

Optimal Supply Chain

Design

What We’ll Cover

Business conditions that are driving a change in

supply chain management

How leading companies are addressing these

business changes

Supply chain design use-cases

Organizing for success:

• Technology

• People

• Process

Client examples

Question and answer session

© 2015 LLamasoft, Inc. All Rights Reserved

The Business Challenge


The Supply Chain Challenge

Volatility and change is the new normal

External Factors Internal Factors


With Volatility and Change. . .

Come More Questions to Answer

There is Seemingly No Limit to the Questions

Network Structure• Should I lease or build new sites?• Who should source each customer?• When do I need more capacity?• How do I consolidate assets?

Inventory• How much inventory do I need?• How much does it cost to

increase my service levels?• Where should I stock each product?

Production Footprint• When should I pre-build?• Where should I make each product?• Do I have the right balance of capacity?• Should I be outsourcing production?

Transportation• How many routes & assets do I need?• What if I change delivery frequency?• How can I reduce my empty miles?• Can I combine inbound/outbound shipments?

Product Demand• How are customers buying our

products?• How should I segment different

customers and products?

Product Flow• How much does it cost to serve

each customer?• Which ports should I be using?• Should I consolidate my

inbound through a cross-dock?

Service & Performance Metrics• How does a change in inventory policy

effect my service rates?• How many shipments will be late?• Am I at risk of hitting capacity constraints?• Will this new schedule improve throughput?


The Third Discipline of

Supply Chain Management

Supply Chain Management

Planning ExecutionDesign

Enterprise Resource PlanningProduction Planning & SchedulingInventory Management & PlanningSales & Operations PlanningDemand ForecastingSourcing & ProcurementIntegrated Business Planning

Transportation ManagementWarehouse ManagementWorkforce ManagementYard ManagementTracking & TracingGlobal Trade Management3rd Party Scheduling & Billing

Network StrategyRoute ModelingDemand SegmentationEnterprise SimulationInventory Policy AnalysisProduct Flow-path DesignService-level Optimization


How Market Leaders Are Responding

Supply chain design is now a must-have capability to keep up

with the pace of change and sustain a competitive advantage

Leaders have created centers of excellence and put in place an integrated supply chain design platform and business process


An Integrated Supply Chain Design

Platform Enables Businesses To:

Quickly generate models to help visualize and analyze the current supply chain operations

Validate potential supply chain changes and continuously test new what-if scenarios

Optimize the supply chain for the right balance between cost, service, sustainability, & risk

React rapidly to unplanned disruptions, market fluctuations, or new business strategies

A System for Continuous

Supply Chain Design

How should I react

to an unplanned event?

RAPID RESPONSE

What if we try this?

What if this happens?

SCENARIO ANALYSIS

What is my current

supply chain profile?

VISUALIZATION

Enterprise DataParts – Bills of Material – Costs – Facilities

Suppliers – Demand – Lead Times - Capacities

Reference DataTransportation Costs – Risk Metrics – Labor Rates

Facility Costs – Emissions Benchmarks

Supply Chain Optimization & Simulation SolversSourcing & Production Footprint – Product Flowpaths – Transportation Routes – Inventory Placement

CURRENT OPERATIONSAnalysis of Existing Supply Chain

FUTURE OPERATIONSStrategy for New Supply Chain


Supply Chain Design Use Cases


What Does My Supply Chain Look Like?


Six Regional Distribution Centers


Customers Throughout the Country


Widely Varying Demand by Customer


Distribution Center Reach

8 hour service

4 hour service

2 hour service


As-Is Costs and Operations


Product Flowpath Optimization


As-Is Supply Chain Structure


New Optimal Structure


New Transportation Routes


Port Flow Balancing


Cost-to-Serve Optimization


Capacity Modeling & Optimization


Supply Chain Segmentation


Safety Stock Optimization

Demand & Lead Time Profiling

Multi-Echelon Safety Stock Optimization

Key Benefits and Usage

• Multi-Echelon Safety Stock optimization allows the model to achieve savings

in working capital while simultaneously maintaining or increasing service

level to stores

• Scientifically quantify cost or benefits of service level, sourcing, and

contractual lead time agreement changes.

• Combine with network optimization to set optimal inventory planning

policies. ie Reorder point, order quantities by site by product

• Model can automatically profile historical sales data or use forecast and

forecast error as inputs

• IO Select functionality allows automated filtering of products with non-

normally distribution demand

Sourcing

VariabilityDemand

Variability

Transport Time

Variability

Transport Time

VariabilityTransport Time

Variability

Production

Variability

$ $ $

Finished Goods

Holding Costs

$

Increasing OTIF to 97% increases working capital by 14% while Decreasing OTIF to 93% decreases working capital by 10%


Organizing for Success

Technology Process People


Achieving Excellence in Design

TECHNOLOGY PROCESS PEOPLE


TechnologyA System for Continuous Supply Chain Design

How should I react

to an unplanned event?

RAPID RESPONSE

What if we try this?

What if this happens?

SCENARIO ANALYSIS

What is my current

supply chain profile?

VISUALIZATION

Enterprise DataParts – Bills of Material – Costs – Facilities

Suppliers – Demand – Lead Times - Capacities

Reference DataTransportation Costs – Risk Metrics – Labor Rates

Facility Costs – Emissions Benchmarks

Supply Chain Optimization & Simulation SolversSourcing & Production Footprint – Product Flowpaths – Transportation Routes – Inventory Placement

CURRENT OPERATIONSAnalysis of Existing Supply Chain

FUTURE OPERATIONSStrategy for New Supply Chain


ProcessIdentifying and Prioritizing Initiatives

Each initiative is mapped

onto the matrix according to: • Relative business benefit

• Relative ease of implementation

This process is in itself an

extremely effective way of

promoting valuable

interactive and focused

discussion among the team

Prioritization Matrix


Process Identifying and Prioritizing Initiatives

1. Baseline and greenfield

2. Strategic sourcing

3. M&A analysis

4. Cost to serve analysis

5. End user segmentation

6. Omni-channel analysis

7. GHG scenarios

8. Raw material staging

9. Production capacity planning

10. S&OP integration

11. Inventory optimization


ProcessThe Supply Chain Design Roadmap

Use the prioritization matrix to develop a project

roadmap from which to set team modeling priorities

20152014Q3 Q4 Q1 Q2 Q3 Q4Change Initiatives Responsibility

Initiative 1

Initiative 2

Initiative 3

Initiative 4

Initiative 5

Initiative 6

Initiative 7

Initiative 8

Initiative 9

Initiative 10

Initiative 11

Allocated sponsor from within the top team -

responsibility to instigate agreed action

in agreed time.


PeopleSupply Chain Design Mastery Progression

S

C

D

e

s

i

g

n

M

a

s

t

e

r

y Tech Team Assignment

Project Delivery

New

/Ad

van

ced

Te

chn

olo

gies

Pro

ject

Man

agem

ent

Enga

gem

ent

Lead

ersh

ip

Pro

ject

Sh

ado

win

g

On

bo

ard

ing

Training/Career Coaching

Tho

ugh

tLe

ader

ship

New-hire Jr. Analyst Sr. Analyst Program Leader

Subject Matter Expert

Modeling & data

integration

Analytical &

Technical skills

Training &

Presentation skills

Project Portfolio

Management

Business Acumen

Influencing Skills


PeopleSkills Roadmap Example


PeopleCompetency Matrix Template Example

Track skills across

technologies,

industries, and

leadership metrics

Establish career track

expectations for

positions within center

of excellence

May have technical and

leadership tracks within

center of excellence


Stage 1

- Ad hoc- Project Centric- Outside Expertise sought- Loose, if any connection

across functions, businesses, GEOs

Stage 2

- Processes, methodologies defined – COE created

- Project portfolios- Formal collaboration across

functions, businesses, and GEOs

- Internal expertise initiated

Stage 3

- Processes, methodologies institutionalized

- Businesses drive initiatives, not projects

- Embedded design teams with businesses, GEOs

- Supply Chain design skills and career paths defined

Pe

op

le Individual analysts have fundamental

skills; some may be advanced. Roles

and standards are not defined.

Team has common set of basic knowledge and

skills. Core skills and competencies are identified.

Advanced skills applied. Defined hiring and

growth path for analysts. Analysts are seeded

throughout organization.

Pro

ce

ss Project focus. Select best practices

may be used, but are applied

inconsistently. Templates are created

and used by individuals.

Business unit focus. Templates, guidelines and

standard examples have been created. Best

practices are actively applied.

Enterprise focus. Practices are followed

consistently throughout organization. Enterprise-

wide portfolio management in place.

Te

ch

no

lo

gy

Modeling and optimization software

may be used, but by individuals or

small team. No corporate

architecture in place.

Modeling and optimization software is used.

Some data management and automation may be

in place.

Comprehensive suite of modeling and

optimization tools in place. Sophisticated data

management and automation implemented.

Supply Chain Design Maturity Levels


Thank You

Booth # 706

www.llamasoft.com

[email protected]

http://www.llamasoft.com/

mailto:[email protected]

talleres estrategias en supply chain toby brzoznowski

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