Upload
doanthuan
View
223
Download
3
Embed Size (px)
Citation preview
Logistics Visibility and Collaboration – Where Data Meets Action
Clo
Amplify 2012 Phil Lambert
TMS Ideal for SaaS
• Need visibility and control to understand the true nature of events
• To do this they need supply chain community enablement, integration, collaboration across multi-parties, along with event-driven optimization
• Such collaboration requires shared global visibility and action.
• Cloud based connect platforms are needed
Source: Paraphrased from ‘Rising above the cloud’ Aberdeen Sept 2012
Rising Above the Cloud
Source: Aberdeen Group Sept 2012
Type of Metric Best-In-Class
Average Laggard
Change in total global annual transportation spend PER UNIT HANDLED over the past year
4% reduction
2% increase
14% increase
Annual global transportation spend as a percentage of shipment value 4% 7% 11%
Perfect Orders – On-time and complete customer delivery 97% 93% 92%
Importance of Logistics
Source: ARC 2008, IBM Institute for business Value, 2005 Value Chain Study & Cap Gemini 2005 Third-Party Logistics Study
Logistics Costs as a Proportion of Sales Logistics Costs by Industry
Logistics Costs Components Transportation accounts for almost 50% of an average company's logistics costs, and transportation costs, as a percent of sales, are rising for many companies
TMS Ideal for SaaS
5
Transportation — unlike warehousing or supply chain planning — relies on a multi-enterprise, geographically dispersed network that includes a supplier, shipper, third-party logistics provider (3PL), carrier, and/or customer. All of these entities are involved in the process, and that setup “really lends itself to network-based solutions that favor SaaS.”
Source: Gartner Group January 2011
Islands of Optimisation
Supplier
Finan
ce
HR
Prod
uctio
n
War
ehou
sing
Customer
Finan
ce
HR
Prod
uctio
n
War
ehou
sing
Distributor
Finan
ce
HR
Prod
uctio
n
War
ehou
sing
WMS ERP SCP
e-Logistics
Source: Phil Lambert E Logistics 2000
Simple, Complex or Both
Today’s Supply Chain
Demand Driven
Global Supply Network
.
Lack of Confidence: • Order status • In transit inventory • Forecasts • Supplier performance • Quality/Quantity issues • Order cycle times
Lack of Visibility Increases Supply Chain Risks
Lack of Visibility
Other Potential Consequences: • Not able to proactively manage customer service issues • Unable to respond quickly to revenue opportunities • Delayed response to unforeseen events • Additional costs, eg. higher inventory, unplanned overtime • Lack the information to undertake root cause analysis
The Solution
• Multi-entity, multi-enterprise collaborative environment • Global Visibility of where everything is and what’s happening • Management and Control of the Process • Exception Management • Automated Actions • Flexibility • On-going Analysis of KPIs, problems or areas for
improvement
Visibility & Alerts During Execution
Graphic Source: Hewlett Packard
Dynamic Logistics Execution
Automated Actions
Connectivity - Visibility
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Supplier 1
Supplier 2
Supplier 3
Plant Distribution Hub
Customer
Retail Shop
ERP ERP WMS ERP LSP LSP LSP
Graphic Source: Hewlett Packard
Connectivity is the First Step
Building Integrated Demand-Supply Networks
Source: Aberdeen Group November 2010
RO
I
Level of Maturity
Visibility Maturity View
Event Tracking Milestone Monitoring Automated Alerts Intelligent Messaging Automated Actions
Dynamic Supply Chain Execution
Information Foundation
Supply Chain Process Automation
Visibility Platform
External Data
Internal Data
Role based Dash Boards & KPIs Root cause Analysis Ad-Hoc Reporting
One Version of the Truth
Integration Platform
Actionable Intelligence
Visible Means Actionable
Solution The Industry Has Been Waiting For
• Elemica has recently become an Oracle BPO Partner for Oracle Transportation Management.
• This allows Elemica customers to access discrete portions of the Oracle OTM functionality, combined with the Elemica connectivity and collaboration capabilities using a SaaS business model.
• These are solution options that companies in the chemical industry seem to have been waiting for and should evaluate for implementation.
Complex, Constrained and Undervalued: A Look Inside Chemical and Process Industry Supply Chain Logistics. Gartner, October 2011
Logistics Visibility and Collaboration – Where Data Meets Action
30 October 2012 Phil Lambert