DS Digital Supply Chain Platform Overview

© 2020 Demand Management, Inc. | Proprietary & ConfidentialProprietary & Confidential

DS Digital Supply Chain Platform

Overview

February 2020

© 2020 Demand Management, Inc. | Proprietary & Confidential



Right Product, Right Place, Right Time, Right Cost

4


DS PLATFORM

Demand OptimizationDemand Sensing, Demand Planning, Demand Aggregation, Collaboration, Promotions

• Drive more accurate demand plans that are attuned to your diverse portfolio, target markets and product life cycle stages


Demand Optimization Capabilities

Hierarchical based planning

Collaboration

Segmentation

Exception Management

Critical

Warning

Information

Demand Sensing

Machine Learning Causal Forecasting

Life Cycle Planning AI PoweredPulse Wise

Analytics


Layers of the Demand Plan

Trend, Seasonality

Consumer Sentiment (unstructured data)

Market Intelligence

New Product Introductions

Retail Promotions and Events

Wholesale Promotions

Adaptive Best Fit Forecast

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Manage the plans at multiple levels of detail –Category, Customer, Gender, Style, Color, Size, more...

Sales History, Forecast, Budget, Sales Forecast, Supply, others…

Enables Top Down, Bottom Up, and Middle Out Forecasting for different business segments

Hierarchies and Aggregations


Demand Review and CollaborationDemand Review

• Marketing and Sales Teams • Channel Forecast and Budget• Monthly S&OP

Demand Review of Key Customers and Items

Forecast Collaboration

Workspaces match user’s requirements and make analysis and entry simple

Collaborators only see their customers

Peer input stays protected until reviewed and

approved by the planning team


DS PLATFORM

Inventory OptimizationInventory Optimization, Inventory Planning

• Apply different product segment rules to gain inventory visibility across your supply chain: production and distribution locations; distributors; customers; suppliers; 3PL’s


Time phased safety stock targets, driven by future forecast and service level targetsInventory Optimization Uses:

• The latest future forecast/error• Supply reliability/lead time variation

Model Order Quantity Policies• EOQ, turns, etc.

Segmentation• Incorporate and overlay parameter sets; ABC, RRSA, Key Customer, etc.

Stochastic Planning• What is the probability of an order occurring inside lead time• Set your risk tolerance and service level goal• For low and lumpy (must have 0’s in history)

Inventory Optimization Concepts

J F M A M J J A S O N D

Inv


Design and Configure Supply ChainCustomersStoresDC’sConsolidation CentersVendors

Optimize Inventory Policies Across Supply Chain

Finished Goods, Work In Process, Raw

Optimize Inventory Targets To SKU by Location level

Demand and Supply UncertaintyLead-timesPoliciesGoals

MEIO – Multi-Echelon Inventory Optimization

Time

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y


DS PLATFORM

Supply OptimizationSupply Planning, Replenishment Planning, Manufacturing Planning & Scheduling and Manufacturing Optimization

• Optimize material, production and distribution assets by synchronizing supply & demand


Balance inventory vs. customer service, optimize costs and transportation times, and fill customer orders Orders dynamicallySimulate planning scenarios before you commit Manage by exception Utilize time-phased safety stock and safety time Link demand for finished goods to required raw materials or component parts

Supply Optimization


Supply Optimization: Multi-echelon Supply Planning

Multi-echelon distribution

Alternate sourcing

WIP and raw materials planning and constraints

Optimization around true capacity constraints


End to End Supply Chain VisibilityGroups and Navigation Panel give access to items by Vendor, Style, Class, Size, etc.

Planners can ‘What If’ with Inventory Targets

Visibility to inventory plan at all locations


Gives visibility to inventory in multiple categories: Potential At RiskActual At RiskExpiring Inventory

Replaces expiring inventory

Managing Inbound InventoryMinimum Ship Days

Managing Existing InventoryShelf Life

Expiration Date Planning


Allocation of Supply

to Demand

Allocation Engine

DS Deploy

Supply Lots

Demand Orders

Item Masters

Item Master Bills of Material

Intelligent Allocation of Supply to Meet Demand Requirements

User-defined Allocation Rules (hard rules and preference rules)

InnovationOUTPUTRULES BASED ALLOCATIONINPUT


Create achievable production plans to optimize shop schedules.

Deliver a constrained Master Production ScheduleModel and compare multiple scenarios to deliver Handle multiple plants and contract manufacturers

Model any production processBatch, discrete, make-to-order, make-to-stock

Model any calendarModel secondary constraints and setup/changeover/cleanup

Supply Optimization


Demand / Supply Tracing


Production Capacity Utilization


Optimize your future purchase plansOpportunity BuysOpportunity buysPerformed across multiple locations

Price breaks can be either discounted purchase prices or free freightCalculate/Store contract targets by vendorHow close they are to achieving specific goals with their supplier

Procurement Optimization


Production Planning and Scheduling

Detailed Shop

Schedule

Rough Cut Capacity Plan

Constrained Master

Production Schedule


Capacity ConstraintsMaterial, Labor & Tooling ConstraintsLot/Batch Sizes

Sequence Dependent ChangeoversMulti-Step and/or Alternate RoutingsPlanned MaintenanceManaging Plant Disruptions and ChangesTribal Knowledge

Real World Constraints


Look and Feel


DS PLATFORM

Product Life Cycle ManagementProduct Life Cycle Management & Digital Asset Management

• Improve design productivity and reduce lead times with real-time visibility to streamline moving product concepts to market & rationalize complex product lines.


Improve design productivity and reduce lead times with real-time visibility.

Streamline moving product concepts to marketRationalize complex product linesCollaborate with your vendors toSynchronize activitiesReduce sampling costsLeverage a library of digital assetsGrow margins with improved product launches

Product Lifecycle Management


Product information

Bills-of-Material

Cost sheets

Graded measurements

Construction detail

Labeling and packaging

Revision and version tracking

Technical Design/Tech Pack


Request for quote(s)

Design BOM, initial construction

First proto sample request

Multiple quoting options

Line item costing

Landing costs

Sourcing and RFQ’s


DS PLATFORM

Sourcing ManagementVendor Lifecycle, Vendor Profiles

• Optimize sourcing decisions & track vendor performance including RFQ’s, vendor profiles & onboarding, & milestone attainment.


Deliver purchase ordersVendor acknowledgementRevision audit trail

WIP TrackingProduction milestone datesWIP units by stage

Offline Production Status ReportingSchedule QC audits & bookings

Purchasing and Production Tracking


Carton Packing

Barcode Carton Label

Shipment Creation

Shipment Paperwork

Electronic ASN

Shipment Creation


Shipment Tracking

Alerts for Delays

In-transit Search

Online Shipping Documents

Discrepancy Identification

Vendor Invoice Management

Logistics and Receiving


DS PLATFORM

Quality & Compliance Vendor Onboarding, Vendor Scorecard, RFQ’s, Milestone Attainment and Reporting

• Streamline quality and Corporate Social Responsibility (CSR) compliance processes to reduce the risk of cancellations, chargebacks & returns while protecting your brand & increasing customer satisfaction.


Get and stay in front of quality control challenges. Always have the documentation you need. Even have the right labels or barcodes in place to ensure accuracy of your shipment.

Regulatory Document ManagementReduce risk of non-compliance and avoid costly litigation

Quality Management & AuditsIdentify quality problems fasterPerform inspections and audits at the manufacturing facilities

Global Logistics Management

Quality and Compliance


Inspections – material, measurement, final, packing

Defect codes by product/category

Multiple sampling plans

Split or combine inspections

Onsite audits performed offline

Audit reports and historical trends

Quality Control Management


Multiple evaluation forms

Multilingual capabilities

Pictures with markup tools

Signatures from management

Compliance reporting

Corrective Action Plans (CAP)

Corporate Social Responsibility Tablet App


DS PLATFORM

Retail Optimization Merchandise Planning, Assortment Planning & Allocation

• Boost inventory performance with precise, flexible top-down, bottom-up and middle-out planning that integrates forecasting, merchandise and assortment planning, allocation & replenishment.


Boost performance with planning that integrates forecasting, merchandise and assortment planning, allocation and replenishment.Merchandise PlanningRetail checkbookTop-down, bottom-up planning

Assortment PlanningAssort the budgetInitial allocation

Allocation & ReplenishmentSize & pack optimizationStore-level forecastingVirtual store warehousesDynamic, multi-source allocations

Retail Optimization


Business Process – Financial Planning


Assortment Plan


Allocation and Replenishment

Workflow1. Calc Need2. Appy Mins3. Excess to

DC

Need based on forecast

Use store-level minimums

Hold balance in reserve

Methods:

Review: Results and exceptions

Worklist: Items to allocate/replenish


DS PLATFORM

Integrated Business Planning (IBP/S&OP)• Long Term Planning• Sales and Operations Planning• Strategic Capacity Planning• Tactical Scenario Planning• Collaboration


IBPSingle Achievable PlansBalances market demand, supply capabilities, and financial objectives

Integrated Business Planning

Demand

SupplyFinancial

Demand Planning

Demand-Supply

Balancing

Supply Planning

IBP

Demand-Supply Balancing

Inventory Service LevelsLogisticsProductionMaterial

Demand PlanningPromotion ROIPricing InnovationROI and competition

Supply PlanningCommodity CostsCost to ServeCapacity


Integrated Business Planning (IBP) – Digital Twin


Global, Regional and Divisional PlansUnifies Demand, Inventory, Supply and CapacityMultiple Currencies Operational Risk and Opportunity ManagementNew Product IntroductionKey Component and Partner Capacity Risks

BenefitsSingle platform supporting S&OP & Long TermScenarios ComparisonsBetter Decisions and Increased Agility

Integrated Business Planning (IBP)


Drill into plans


Compare Scenarios


Review capacity requirements


Available to Promise


Integrated Business Planning (IBP) – Scenarios


DS PLATFORM

Advanced AnalyticsMachine Learning, Artificial Intelligence, Algorithmic Optimization• Leverage simulations, scenarios and other forms of

advanced analytics to provide new insights, automate planning and remove time, inventory and risk from your supply chain.


Native Analytics – DP and RP


Pre-Built Components

Sales Finance DemandSupply

Supplier Scorecard

Customer Scorecard

Inventory S&OP

Manufacturing & Production

DemandSensing

Price & Promotion


Enterprise Analytics

Automated and Simplified Data Warehousing


DS Detect generates an adjusted history where anomalies have been removedUses Seasonal-Hybrid-ESDMethod for anomaly detection in time series dataDeveloped by researchers at Twitter

Lives outside of DSImports data from databasePerforms anomaly detectionWrite results \ adjusted history back

Demand Forecasting with DS Detect

Anomaly Detection

Better Forecast

Higher Quality Data

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Scope of ServicesDesign, build, and deliver a proof-of-concept demand forecasting model •Data preparation•Model estimation using machine learning algorithms•Validation of model performance using holdout sample

Deliverables 10-page written summary report presentation to include:•Executive Summary•Purpose of Study, Description of Methodology•Results of model development including contribution of data elements to improving forecast accuracy•Recommendation for use of causal forecast model based on economic value

Causal Forecasting (MDSM)


SUPPLY CHAIN DATA MANAGEMENT

Provides a Platform for sustainable data in the long term even knowing that data will expand exponentially in that time


Platform Data Management - Accelerates the Integration…

ERP/APS Templates

Beyond “ETL”: “ETLTS”Extract

Securely and efficientlyextract data from source systems

TransportTransport extracted data from on-premise or PaaS environment to Demand Solutions environment

LoadBring extracted data into AdapLink’s staging area for further processing

TransformFilter, enrich, transform, and validate data

SyncPost the data to Demand Solutions application(s) via optimal interface/API

Managed through templates, no code to write…Maintained by Demand Solutions

Platform Components

Inventory Optimization

© 2020 Demand Management, Inc. | Proprietary & ConfidentialProprietary & Confidential© 2017 Logility, Inc.


In summary


Automate planning with artificial intelligence to make better decisions faster Gain end-to-end (E2E) visibility across your enterprise Harness the value of Big Data with Machine Learning and automated planning Accelerate sales and operations planning (S&OP) through increased visibility, collaboration and scenario

assessments Reduce inventory, distribution and replenishment costs Increase revenue by improving product availability and eliminating stock-outs Sense and respond faster to market changes for increased agility Streamline new product introductions, short life cycle product planning and product phase-outs Anticipate and mitigate risk through advanced scenario analysis based on a digital twin of your network Boost customer service through increased product availability, more accurate forecasting and on-time deliveries Improve merchandise planning, assortment and allocation to boost omni-channel performance Transform design productivity to bring products to market faster with higher quality Accelerate sourcing decisions with better analysis of vendors, suppliers and third-party providers

Why do it?


React to demand with speed and agilityRemove the organizational silos and integrate the enterpriseMonitor all tiers in the supply chain network (ecosystem)Optimize sales, profit, market share, and inventoryImprove corporate performance with business intelligence

Benefits of the Demand Solutions Platform

Right Product, Right Place, Right Time, Right Cost


Questions

© 2020 Demand Management, Inc. | Proprietary & ConfidentialProprietary & Confidential© 2017 Logility, Inc.


Thank you