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1 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Bernard Goor, One Network
UNTDigitizing your Supply Chain
Bringing The Network to You
2 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Business Dilemma
InnovationCosts
Digitize Your Supply Chain
Digitize Your Consumer ExperienceCompanies ConsumersChannels
Disruptors
Market Conditions
Companies are facing tough challenges …
… which will force them to reduce cost and accelerate innovation – at the same time
AND
They will need to digitize both their front-end Consumer Experience and their back-end Supply Chain in order to win – or even survive
3 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
What Does Digitization Mean?
= The ability to share high fidelity information with all actors in a process in order to – Allow them to make optimized decisions based on real time
recommendations, or – Automate the decisions on their behalf
Key components– Real time information flowing seamlessly across the process– Autonomous agents making recommendations or decisions
Digitization means transparency, velocity, simplification and automation
4 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Companies Can Digitize their Supply Chain by Deploying a Consumer-Driven Supply Network to …
• Demand Sensing• Demand Forecasting• Inventory Mgmt• Replenishment Planning• Suggested Ordering
• Demand Forecasting• Order Mgmt• Inventory Mgmt• Replenishment Planning
Order ForecastOrder
Order ForecastOrder
Order ForecastOrder• Order Mgmt
• Inventory Mgmt• MRP• BOM Disaggregation
Inventory Optimization
Production and Inventory
Optimization
Inventory Optimization Production and
Inventory Optimization
Seamlessly propagate the demand signal back through the supply network
Balance demand and supply at every node in the supply network in near real time
Respond to demand signal in near real time to fulfill consumer demand at the lowest cost
Logistics Planning and Execution
Logistics Planning and Execution
Logistics Planning and Execution
• Order Mgmt• Inventory Mgmt• MRP
Gain end-to-end visibility across the entire network
Stores DCs Factories Suppliers
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5 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Deploying a Consumer-Driven Supply Network Delivers Significant Benefits
Stores DCs Factories Suppliers
Increased service levels and fill rates
Increased visibility and transparency across the entire network
Improved logistics performance
Optimized inventory levels at every node in the network
Lower landed costs
Increased sales
Reduced spoilage, returns and markdowns
Increased agility and velocity across the entire network
6 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Deloitte Agrees with the Value of Digital Supply Networks
By connecting all the stages to one another via advanced technologies, DSNs can minimize the latency, risk, and waste found in linear supply chains.
Companies would be poised to achieve new levels of performance, improve operational efficiency and effectiveness, and create new revenue opportunities.
Deloitte, “The rise of the digital supply network”, 2016
From traditional supply chains to digital supply networks (DSNs)
7 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
KPMG Validates the Value Proposition for Demand-Driven Supply Chains
Improved fill rates and reduced out-of-stocks drive increased revenue and recoverable sales
With greater certainty over demand, organizations can carry less stock
Better visibility of supply and demand should lead to fewer disruptions to supplies
Process automation reduces operating expenses, allowing buyer/ planners to manage by exception
Companies adopting demand-driven supply chains typically enjoy increased sales, reduced operating expenses and improved working capital
KPMG, “Demand-driven supply chain 2.0”, 2016
SalesSales
COGSCOGS
Planning
Planning
Transportation
Transportation
Actual Demand Actual
Demand
Promotional Demand Promotional
Demand
Buffer
Buffer
1-4% Improvement in Sales 5-10 % Reduction in
Operating Expense 20-30% Reduction
in Inventory
Demand-Driven
Traditional Model
Traditional Model
Demand-Driven
Demand-Driven
Traditional Model
Sales Levels Expenses Levels Inventory Levels
8 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Revenue 1,000,000$ 100% 1,000,000$ Cost of Revenue 650,000$ 65% 600,000$ 60% (50,000)$ -5%Inventory 172,603$ 63 136,986$ 50 (35,616)$ -13
Before After Difference
What Could the Financial Impact Be?Example of a CG Food Manufacturing Company
5% reduction in COGS 20% reduction in Inventories
- $50 Million of COGS reduction - $36 Million of inventory reduction
Average COGS%
Average Days in Inventory
For a $1 Billion company
9 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Why is a Consumer-Driven Supply Network Better?
Every company on the network uses its own systems and data
Companies on the network are connected via EDI, spreadsheets and emails – maintained by each company
Planning and execution are disconnected
The companies on the network use common processes, data and metrics (single version of the truth)
All companies are connected to one single network –maintained by One Network
Planning and execution are integrated in real time via machine learning agents
The Traditional Approach
FrictionsDelays Inefficiencies
High inventoriesHigh COGSOut of stocks
The Consumer-Driven Supply Network Approach
Network Platform
Network PlatformAgilityVelocity Transparency
Reduced inventories Lower COGS Improved on-shelf
availability
10 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Traditional Supply Chain Create a Bullwhip Effect
The further back in the chain, the more variable the demand signal becomes
Demand Variability
DCStore Tier 2MFGDC Tier1Consumer
11 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Why is that Happening?
Intercompany and cross-functional silos Disconnected planning and execution processes Redundant and repetitive processes across companies in the network
12 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Silos
Inter-company silos Cross-functional silos
Sales
Marketing
Operations
Supply Chain
Finance
Sales
Marketing
Operations
Supply Chain
Finance
13 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Disconnected Planning and Execution Processes
Batch planning systems disconnected from continuous execution layer
Execution
Planning
Execution
Planning
Execution
Planning
Execution
PlanningExecution
Planning
14 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Redundant and Repetitive Processes
Sense and shape demand Synchronize supply and demand Respond to demand
Sense and Shape Demand
Synchronize Supply and Demand Respond to Demand
Sense and Shape Demand
Synchronize Supply and Demand Respond to Demand
Sense and Shape Demand
Synchronize Supply and Demand Respond to Demand
Sense and Shape Demand
Synchronize Supply and Demand Respond to Demand
Sense and Shape Demand
Synchronize Supply and Demand Respond to Demand
15 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
The Solution?Adopt a Consumer-Driven Supply Network
A Consumer-Driven Supply Network is a multi-party solution that
connects your entire eco-system (you + your customers, distributors,
suppliers and logistics providers) in a real-time decision-making,
consumer-driven network
Consumer-Driven Supply
Network
Logistics Providers
Sellers
Buyers
Distributors
16 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
A Consumer-Driven Supply Network Offers Unique Capabilities …
Single version of the truth across the network
Intelligent closed loop planning and execution with machine learning agents providing optimization within the execution layer
System of engagement working together with your systems of record
Retailer Supplier
Retailer
Logistics Providers
Consumer Goods
Company
Supplier
Distributor
17 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
… and Unique Benefits
Higher forecast accuracy Increased service levels and fill rates Improved on-shelf availability Increased revenues Decreased inventory levels Complete visibility and transparency
across the network Greater supply chain agility Improved logistics performance
Retailer Supplier
Retailer
Logistics Providers
Consumer Goods
Company
Supplier
Distributor
18 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Example: One Network Solution Framework
Optimized Execution
Integrated Business Planning
Network Visibility and Monitoring
Network PlatformBy leveraging a many-to-many multi-party networkplatform that delivers security, scalability, reliability, extensibility and interoperability
By enabling a distributed transaction orchestration backbone, promoting visibility and traceability of all supply chain events across the entire network, and enabling all parties to resolve issues in real time
By optimizing planning and execution in real time within the execution layer, leveraging machine learning agents to continuously optimize supply chain events
By providing a directional P&L to plan and monitor the financial impact of demand and supply execution, and take corrective actions to ensure financial success
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19 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Network
Enterprise
One Network Operates as a System of Engagement That Integrates all Companies to a Common Process
Distributors Suppliers
Step 6Step 5Step 4Step 3Step 2Step 1 Step 8Step 7
Carriers Carriers
Systems of Record
System of Engagement
CG CompanyRetailers
20 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
The One Network Platform Is Uniquely Built to Enable Multi-Party Processes
Common Data
• Single version of the truth of master data and transaction data across all network nodes
Permissibility
• Multi-party permission model to maintain secure access by role for all network participants
Modularity
• Applications assembled from reusable modules built specifically for the industry
Scalability
• Horizontally scalable middle tier with grid computing architecture
Reliability
• Highly redundant and reliable architecture
Interoperability
• Extensive integration capabilities with enterprise systems to enable dual platform strategy
Extensibility
• Rich SDK and user interface to support highly flexible, configurable and extensible business processes
Network Platform
21 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Application LogicApplication Logic
Built by Client, ONE, Partner….
INDUSTRY CORE MODULE
IXM EnginesApplication Modelsand Mixins Core Business Logic User Interface
PLATFORMComputational GridAgent Framework SDK and Studio
Integration(REST, SOAP, etc)
Command CenterUI Framework
Modeling FrameworkMaster Data ModelsCommon Transaction Models
CUSTOM
CUSTOM APPLICATION MODULES
Multi Layer Development ModelCUSTOM
CUSTOM
PUBLIC API
PUBLIC API
PUBLIC APIPUBLIC API
Platform extensions through DevNet
22 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Network Visibility and Monitoring Objectives:
– Maintain the traceability and safety of your products across the entire network;
– Track all your orders and shipments on your extended network and react in real time to any disruption;
– Improve your ability to collaborate effectively with your customers, distributors and suppliers by leveraging a single version of the truth across the network
Key features– End-to-end monitoring, visibility and
traceability of all supply chain events across the network
– Early visibility to business disruptions through role-driven alerts
– Real time issue resolution
23 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Optimized Execution Objectives:
– Improve your demand forecast and order forecast accuracy, and propagate the forecast through the entire network to optimize the synchronization of demand and supply across all nodes in the network
– Increase service levels, while reducing landed costs and inventory levels– Increase the velocity and agility of your supply chain by eliminating all the silos, frictions
and inefficiencies impacting your B2B transactions
Key features– Complete multi-party synchronization
across forecasts, orders and shipments– Optimization within the execution layer
with AI agent technology– Real time propagation through the
entire network
24 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Integrated Business Planning Objectives:
– Improve your ability to react in real time to any financial planning deviation that can be resolved by increasing demand and/or improving supply across the entire network
– Leverage what-if scenario analysis to visualize the impact of demand and supply initiatives on your P&L
– Map the impact of demand and supply on your strategic plans (e.g. commodity plans, long term supply contracts)
Key features– Ability to synchronize financial planning
with demand and supply planning– What-if analysis and strategic planning– Real time P&L visualization
25 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
One Network Enables All Levels of Control Tower Deployments
Control Tower Level 1Visibility
Control Tower Level 2Alerts
Control Tower Level 3Decision Support
Control Tower Level 4Autonomous
Visibility to all the events and milestones you want track across the entire network
+ Alerts tagged to all events and milestones
+ Exception-based management
+ Multi-party collaboration to resolve them in real time
+ Execution of transactions within the control tower, with the users making decisions based on recommendations from intelligent machine-learning agents
+ Decisions made autonomously by the intelligent machine-learning agents imbedded in the execution layer without human intervention
26 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Your Mission (if you Choose to Accept it) Study Consumer-Driven Supply Networks Understand why and how a Consumer-Driven Supply network will drive a
quantum leap performance improvement in Supply Chains and Logistics
AgilityVelocity Transparency
Reduced inventories Lower COGS Improved on-shelf
availability
Network Platform
Network Platform
FrictionsDelays Inefficiencies
High inventoriesHigh COGSOut of stocks
27 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
References
https://www.retailsupplychaininsights.com/doc/how-to-beat-amazon-by-digitizing-your-supply-chain-0001
http://www.inboundlogistics.com/cms/article/why-grocery-retailers-need-to-embrace-supply-chain-digitization/
http://www.mytotalretail.com/article/create-a-consumer-driven-supply-network/ https://www.linkedin.com/feed/update/urn:li:activity:6305411834098835456 https://www.linkedin.com/feed/update/urn:li:activity:6305891626443169792 https://www.linkedin.com/feed/update/urn:li:activity:6308668647510548480
[email protected]/in/bernardgoor-onenetwork
@bernardgoor
28 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.
Thank You!