LLAMASOFT SESSION The business solutions required to enable smart, fast, and frequent supply chain decision making Toby Brzoznowski Co-Founder, EVP
RUNNING A SUPPLY CHAIN ISN’T EASY …and it’s only getting worse.
Today’s supply chains have an unprecedented level of complexity…
…and volatility and change are the new norm.
Volatility and change are creating more questions Leaders can answer these questions… Faster. Smarter. More Frequently.
Systems Supporting Supply Chain Management Mode 2: Exploratory + - Process: Focus: Lifespan: 3 Months – 1 Year Experimental, Ad Hoc Disruption, Innovation Systems of Innovation Return on Investment Volatility / Change Governance Process: Focus: Lifespan: 2 – 5 Years Configurable, Customizable Agility, Competitive Advantage Systems of Differentiation Level of Investment Systems of Record Process: Focus: Lifespan: 10+ Years Integrated, Stable Standardization, Efficiency - + Mode 1: Traditional Source: Gartner Pace Model for Supply Chain Systems
Systems Supporting Supply Chain Management Mode 2: Exploratory + - Systems of Innovation DESIGN Return on Investment Volatility / Change Governance PLANNING Systems of Differentiation Level of Investment Systems of Record VISIBILITY - + Mode 1: Traditional Source: Gartner Pace Model for Supply Chain Systems
How can we change our supply chain to make it better? We call this How can we best run our existing supply chain? SUPPLY CHAIN BY DESIGN DESIGN PLANNING What information is available about our supply chain? VISIBILITY “Everyone designs who devises courses of action aimed at changing existing situations into preferred ones.” -Herbert Simon
Technology Building Blocks Enabling Supply Chain by Design Visual & Collaborative User Experience Library of Advanced Analytics Solvers Structured Data Model & Flexible Attributes Data Integration Management
Supply Chain By Design Drives Significant Cost Savings Making Your Supply Chain a Competitive Advantage <$1M $1-10M $10-50M $50M 0% 10% 20% 30% 40% 2015 University of Michigan Study SC Design COE’s Impact Ajit Sharma, Ross School of Business Percent Improvement from LLamasoft Projects 410 Respondents from 211 Companies
Supply Chain By Design Platform PLANNING VISIBILITY DESIGN ANALYTICS LIBRARY • Optimization solvers & prescriptive analytics • Machine learning algorithms • Simulation engines & predictive analytics DATA MANAGEMENT • Enterprise data system connectivity • Data blending, validation, harmonization • Master data management
SUPPLY CHAIN GURU, SUPPLYCHAINGURU.COM DESIGN Build end-to-end digital models of your supply chain to: Visualize the current supply chain Analyze alternate strategies Optimize for best performance Simulate to test potential changes • • • •
PLANNING BY DESIGN SUPPLYCHAIN PLANNING.COM PLANNING A model-based apps approach to supply chain planning: Quickly design planning apps Easy to use and easy to deploy Powerful optimization, simulation, and machine learning engines • • •
ESP Data integration platform enabling interactive visualizations, investigating, and monitoring: Quickly consolidate all data sources Automatically apply advanced analytics Configure interactive dashboards and reports VISIBILITY • • •
DATA MANAGEMENT DATA MANAGEMENT DATA GURU Universal Connectivity Rapid Data Integration Data Validation Data Enrichment Data Transformation Master Data Administration Exception Handling Data Lineage Tracking • • • • • • • Validate Publish Source Blend Analyze •
DATA MANAGEMENT DATA SERVICES Fortify models with outside data to fill information gaps Automatically refresh data for accurate models Data sets include: • • • FREIGHT LOCATION RISK KPIS Transport Rates Transit Times TL, LTL, Parcel Ocean, Rail Rental Rates Labor Rates Space Availability LTL Terminals Logistics Climate Political Corruption Capacity Utilization Inventory Turns Transport Spend Modes Utilized
The Brain of Supply Chain by Design: LLamasoft’s library of integrated solvers and algorithms NETWORK SERVICE PRODUCT FLOW VEHICLE ROUTING ANALYTICS LIBRARY INVENTORY SIMULATION PRODUCTION RISK MACHINE LEARNING DEMAND SUSTAINABILITY COST-TO-SERVE
DATA MANAGEMENT ANALYTICS LIBRARY DEMAND GURU Explore key drivers of demand Model and analyze demand Predict demand patterns into the future Access external time series data to better predict demand Improve long range forecast accuracy (beyond your corporate collaboration horizon) • • • • •
BUILDING COMPETENCY People • Process • Technology
Supply Chain By Design Maturity Model Key Drivers for Maturity Progression Design Ascension Base Camp Establishment Summit Attainment Peak Discovery Trekking In
Competency Development Plan
CONCLUSIONS ……………….. Volatility and change are the new normal Leaders are good at both operating & innovating Innovation requires People, Process, & Technology