upcoming trends in supply chain solutions - robert de laat (logic factory)

IT – SCM innovation

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Upcoming Trends in Supply Chain Solutions

25th of September2014

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Company profile The Logic Factory

Partners

HistoryOriginate from Bolesian and Capgemini Background in Logistics, Manufacturing, Off-shoring and Artificial Intelligence

OfficesHQ in ‘s-Hertogenbosch, the NetherlandsDevelopment Center in Ahmedabad, India

FactsFounded 2007, 100% privately owned by founders currently 40 employees

FocusLogistics, Transport & Maritime, Manufacturing• Advanced Planning & Scheduling (APS, Quintiq), • Transport & Fleet Management (TMS)• Mobile Solutions

Customers

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Uncovering the hidden profit potential in logistics

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Past performance does not predict future outcomes

Systems of record

Past Performance Future Performance

ERP NOW MISSING PIECE

NOW FUTURE

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Large-scale vehicle routing with time windows

10^2,429options

100 trucks 1,000 delivery locations

1 depot

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A good solution

42,479miles


1 depot

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A world-record solution


1 depot39,469miles

• 10% fewer trucks• 7% fewer miles

• Est. $1M ann. savings

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Common optimization challenges

Optimization is for anyone who:

Complexity ConfusionOptions

Experiences ever-increasing complexity in planning how to best use their scarce resources.

1 has a growing array of business rules and

constraints, and a mindboggling number of

potential combinations that define a plan.

2

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What is needed?

• All constraints and processes accurately modeled

• Optimize based on reality, adjusting to the realities of daily events

• Configurable to keep pace with the business over time

100% Fit

• An agile planning platform, that can adjust when needed

• Path Optimization Algorithms (POA)

• Example Optimization Technologies• Mathematical• Constraint• Graph

Technology

• Optimization R&D team continuously improving technology, algorithms and modeling techniques

• Optimization Center provides central expertise across the business and leads optimization implementations

Expertise

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• Each company is unique

• Having a model that is a 100%-fit is essential

• Covering all planning levels in appropriate detail

• Individual visualization is essential to support the users in making informed decisions

• Interaction must be direct, fast and intuitive

• Combination of algorithms from the the Optimization Suite

• Taking into account all circumstances

• Developing planning proposals

• The planner defines criteria and makes the decisions

• Generate all necessary information and visualize the planning

Business model andlogic

OptimizationVisualization andinteraction

Quintiq software vision

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Growth versus Profit

Now 2020

Volume

Revenue

Puzzle complexity

Expected scenario (in case we are not taking action)

Results in

Now 2020

Volume

Revenue

Puzzle complexity

Profitability

Efficiency

Now 2020

Volume

Revenue

Puzzle complexity

Target scenario

Results in

Now 2020

Volume

Revenue

Puzzle complexity

Profitability

Efficiency

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In case no action is taken, in order to reach the volume targets of 2020• The complexity of the puzzle increases

exponentially• Fixed costs will increase slightly• Efficiency will decrease• Due to this the variable cost will increase• Profitability will decrease, and maybe even get in

danger due to lack of control• Efficiency can not be controlled by just applying

more modern / -advanced / -larger resources

In case action is taken by implementing SCP&O• The complexity of the puzzle will increase

exponentially• BUT are able to keep the operation under control

due to advanced support• Efficiency can even be increased by:

Being enabled to take the BEST decision at the right moment

Being Agile, and thus able to introduce other resources (larger, more modern, advanced etc.)

• In this case profitability can even slightly INCREASE!.

No action taken Get SCP&O in place

Revenue versus profit in short

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Questions