Algorhythm supply chain overview v2.1

rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India
Intelligent Supply Chains
Rapidly Delivered
Agile and Lean

Meeting Supply Chain Objectives
2
1
2
3
Increase Service Level and Reduce Inventory
Reduce Cost
Reduce Complexity

Reduce Cost
Production Base Far from Market
Demand over a Large
Geography
Sub-Optimal Sourcing
High Wastage
rhythm
Solutions
Optimal Manufacturing Footprint
through Manufacturing Network
Planner
Optimal Supply Chain Structure
through Distribution Network
Planner
Optimal Supply Network
through Supply Planner
Optimal Campaigns & Asset Utilization
through Production & Logistics Planners,
Minimized Quality Failures through MES
Challenges
1
IntelligentSupplyChains
3

Sub-optimal Inventory Norms
High Demand Variability
Unsynchronized Supply Chain
High Production Lead-time
rhythm
Solutions
Optimal Norms through
Inventory Planner
Increased Demand Accuracy
through Demand Planner
Synchronized Supply Chain
through Supply Planner
Reduced Manufacturing Lead-
times through Production Planner
& MES
Challenges
2
Increase Service
Level and Reduce
Inventory
4

Reduce
Complexity
Complex Supply Chain Network
Manual Planning and
Execution
Low Visibility
Low Supply Chain Flexibility
Reliability
rhythm
Solutions
Streamlined Network through
Manufacturing and Distribution
Network Planners
Automated end-to-end Supply
Chain Planning
High Visibility through Long-
term Planning systems
Flexible Supply Chain Network
Design, High Reliability through
Improved Planning Systems
Challenges
3
5

rhythm Solutions - Overview
Manufacturing
Network Planner
Distribution
Network Planner
Demand Planner S&OP Planner
Inventory Planner
Supply Planner
Route Planner Logistics Planner
Production
Planner
Beat Planner
MES & Scheduling
ERP
Quarterly or Longer
Monthly
Weekly or Shorter
6

Intelligent Supply Chains Delivered Rapidly
Quick Roll Out
Configurable Applications, Powered by Rapid Application
Development Platform, AppliFire for quick customization
and Implementation
New Wave Applications
Powerful User Interfaces, In-built Mobility, Cloud based,
Extremely User Friendly Applications
High Performance
Unified Data Model, In-Memory Data Grid, Parallel
Computing to deliver very high Performance.
Best Results
Comprehensive, Tested Results
Intelligent Apps
Quick Roll Out
Performance
Best Results
Unified
Data
Model
In-memory
Data Grid
Parallel
Processing
Modern
Cloud
Based
In-built
Mobility
User
Friendly
7

Manufacturing Network Planner
Optimizes Manufacturing Network to find right number, location, role and capacities of factories
to minimize costs and maximize Service Levels. Evaluates and compares scenarios.
o Optimizes production capabilities of factories, suggests Addition or
elimination of factories. Restructures capabilities of the Factories .
o Optimal location of all assets to ensure best asset utilization and
economies of scale. Efficient capacity utilization through balancing
of capacities across processes.
o Optimizes Total Landed Costs with linear costs like production,
logistics, utility &material costs. as well as non-linear fixed factory
costs and depreciation, investment and man-power costs.
o Optimizes the product Mix at each Factory based on the Total
Landed Cost
o Business Risk Modelling – Assess sensitivity of the model against
key Drivers
o Volume Discounts – Suggests maximum utilization of volume based
discounts offered by suppliers.
Quarterly or Longer | Monthly | Weekly or Shorter
Right Number of Modules
for Each Process at each
Factory
Factory Locations and Capacities
Right Linkage of Movement
Process 2
Process 1
4
5
3
Right Product Mix at the
Factories
Right Vendor Location
2
1
o Optimized total Landed Cost
o Improved Service Levels
o Opportunity & Risk Assessment
o Improved Asset Utilization
o A Fortune 500 FMCG company optimized its manufacturing footprint in
India for the next 10 years based on the true Supply Chain drivers. Its
original Supply Chain was heavily influenced by Fiscal benefits.
o One of the largest FMCG companies optimized the global production and
souring of its biggest category to optimize the total landed cost to the
customer.
Components 8

Distribution Network Planner
Optimizes Distribution Network to find right number, location and capacities of warehouses to
minimize costs and maximize Service Levels. Finds Supply Chain structure and echelons.
o Optimal network design with right number of echelons (central and
regional warehouses) in the distribution network
o Suggests best number and location of warehouses based on the
trade-off between freight costs & fixed costs of warehouses
o Finds best linkage from factory to customer. Selects the linkage
based on mode wise cost and volume discounts
o Reduction in inventory by making a full truck direct shipments.
Creates a Network to meet the Service Level Requirements
o Accounts for linear costs like handling, freight costs etc. and non-
linear costs like warehouse rent, manpower costs.
o Simulation to test sensitivity of key drivers like Taxes, Demand, lead
time, transportation modes, New Routes, Fixed Costs etc.
o Evaluates and compares multiple business scenarios.
o A Fortune 500 FMCG company optimized its Distribution Network in India
for the next 5 years and evaluated the impact of GST on Service Levels and
Distribution Costs.
o One of the largest FMCG companies in India optimized location of its
Warehouses and distributors and transportation mode on each lane.
Right Product Mix in each Mode
of Transportation
Right Linkage of Movement - Right Source
of Supply; Via CDC vs. Direct Movement
2
Right Modes of Dispatch on each
Lane. Maximized Consolidation
3
4
o Timely Deliveries
o High Service Level
o Minimum Transportation Cost
Right Inventory and Service Levels for
Each Product at each Location
5
1 Product Mix Constraint at Each Factory
Lead-time Constraints from the Customers6
Components 9

Inventory Planner
Finds relationship between stock and Service Level based on various parameters. Optimizes
Inventory across locations and products to deploy inventory at the right locations.
o Stock top Service Curve - Generates unique Stock to Service Curve
for each product at each location based on Demand Variability,
Lead-time, Review Period, Lead-time Variability, Supply Compliance,
Production and Distribution Lot-sizes etc.
o Multi-Echelon Inventory Optimization - Optimizes Inventory across
multiple echelons and identifies the right echelon for inventory
deployment for each product.
o Multi-Product Inventory Optimization - Sets right service level for
each Product at each location to meet the overall Service
requirement. Apportions the inventory budget in an optimal
manner. Automatically sets lower service targets for high volatile
items.
o Optimizes the form in which the Inventory needs to be maintained
(FG, Intermediate, RM and PM).
o Simulations to identify right production lot-size, distribution
frequency, Hub-spoke model, segmentation strategy etc.
o Indian arm of a Large CPG improved its service levels by 5% and reduced
Inventory by over 9% using the Inventory Planner.
Optimized InventoryCurrent Inventory
Safety Stock at Depots
Raw Material
Intermediates
Pipeline Inventory
Cycle Stock at Depots
FG Safety Stock at W/H
FG Cycle Stock at W/H
Right Stock to Service Curve
for all Products at all
Locations
1
2
Right Service Levels of each
Product at each location to
meet the Overall target with
minimal Inventory
3
Where?
Right Location and Product
Form for Inventory Deployment
Service Level
o Improve Service Level
o Reduce Inventory in all forms
DaysofInventoryinSupplyChain
Raw Material
Intermediates
FG Cycle Stock at W/H
Pipeline Inventory
FG Safety Stock at W/H
Components 10

Beat Planner
Generates beats of optimal size based on time spent in the market. Assigns salesmen and week-
days to the beats created and generates the optimal foot sequence (or route plan) for each beat.
o Capture of geo-codes using a mobile app or by dragging, dropping
Customer location on Google Map or from Retailer address
o Visualize - View all the customers on Google Maps. Compare
Existing Manual Plans with optimal Beat Plan.
o Optimize based on (a) number of customers or (b) based on the
beat value or (c) based on the total time spent in the market.
o Group Beats by Week day or by Salesmen. Deal with multiple visit
Frequency (F2, F4, F8 or mixed Frequency)
o Optimized Salesman Sequence – The salesman’s travelling sequence
is optimized within each beat.
o Salesman’s Weekly Plan - Weekly calendar for each salesman
(which beat should be covered by which salesman on what day)
o Manually over-ride the beat plan or salesman sequence
o A USD 2 billion Indian Foods company could expand its coverage rapidly in
dense Indian Metro cities at minimal extra cost using the beat Optimizer
o A very large MNC is expanded its coverage in top Metros and Cities in India
by 20% using the beat Planner
o One of the largest MNCs selected Algorhythm’s Beat Optimizer for its
Thailand Operations and plans to use this for several other markets
Geo-tag & Visualize
Geo-tag using an App, Retailer
Address or by drag / drop
Visualize Current
Beats and Outlets
Interface using Excel or
Real-time Connectors
Optimize
Beat Optimization
Optimal Beats
Optimal Foot Sequence
Optimal Beat Days
Objectives
Plan
Criteria
Constraints
Road
Distance
Coverage Extension
Analytics
Distributor Coverage
Analytics
Proposed Improvements
vs . Current
Analyze
Components 11

Demand Planner
Creates an unconstrained consensus demand forecast through top down or bottom up
approaches and combines with Statistical Forecast.
o Multi-Level Forecasting – Enables top-down, bottom-up consensus
demand plan. Ability to aggregate and disaggregate demand at any
level. Collaborative Forecasting between all the stakeholders
o Multiple Statistical Forecasting Techniques to address Seasonality,
Trend and Cyclic Behaviour. Selects best technique for each SKU at
each Location. Cleanse historical data to remove errors, outliers etc.
o Compare actuals, current demand plan, annual plan, previous
demand plan versions, statistical forecast, and the previous year’s
demand plan in a time-phased graphical view.
o Monitor the forecast accuracy for all forecasts. Measure the
accuracy of forecasts with any number of available methods
(Volume Error, MAE/Mean, Bias (MPE), etc.)
o Adjust or override the calculated demand plan for specific forecast
items in specific date ranges
o Indian Arm of one of a Large Packaged Food Manufacturer used Demand
Planner to expedite the Planning Cycle and Improve monthly forecast
through consensus based forecasting.
o A Large Telecom company managed their Long-term, Mid-term and Short-
term demand through collaboration on Demand Planner.
Data Pre-processing
Easy Demand
Manipulation
Configurable
Workflows
Consensus Forecasting
Multiple
Demand
Versions
Historical Demand
Unconstrained
Demand Plan
Primary Sales
Forecast
DRP
S&OP
Components 12

S&OP Planner
Centralised collaboration between cross functional teams to Balance Supply & Demand,
Maximise Profits and Quantify Risks.
o Meet Organisational Goals – Set Targets for Inventory, Revenue,
Utilization, Margins and Service. Measure performance against each
of these targets
o Balance Demand and Supply – Balance by changing (a) the forecast
demand or (b) Inventory Norms or (c) Demand Priorities etc. to
match Demand and Supply.
o Simulate supply-demand balancing scenarios through a drag & drop
UI. Evaluate how finance, material and capacity resources can be
apportioned optimally to meet Organizational goals.
o Create S&OP process calendar, meetings and monitor progress
against the plan. Manage performance of S&OP stakeholders.
Collaborate on action Items planned in SNOP meetings.
o S&OP Dashboards - Visualize current and projected inventor,
Revenues, Margins, Service Levels, Asset Utilizations etc.
o A Large Steel Company streamlined its S&OP process through regular
simulations on S&OP Planner. Large value Rush Order simulations was
extensively used to decide delivery dates.
o One of one of the largest FMCG companies world-wide used S&OP planner
to simulate the right Inventory Levels, Demand plan and Aggregate Supplies.
o Faster and reliable planning, reduced
planning cycle Increased consensus with
actionable plans
o Insight into the impact of changes
Finance
Goals
Simulation
Supply
Plan
Balance
Demand &
Supply
Demand
Plan
Components 13

Supply Planner
Generates constrained daily, weekly or monthly production plan for all factories along with
dispatch quantities to all destinations to meet the overall demand on time.
o Allocates production to the right factory based on capacity
constraints and total landed cost.
o Generates daily, weekly or monthly production plan for factories
and suppliers based on capacities.
o Generates dispatch quantities between source and destination
based on demand, lead time, safety stock requirements, etc.
o Maximizes Capacity Utilization by optimizing Lot sizes and by
optimal line selection, Optimizes Product Sequencing on the lines.
o Generates Pre-build Plans ahead of Peak Seasons.
o Generates optimum production sequence on lines across to ensure
minimum inventory at any location.
o Handles Constraints like Min & Max Load on Sites, Changeover and
Capacity Constraints, Manpower, RM &PM Constraints etc.
o A Large Biscuit Manufacturer in India with over 150 warehouses and 50
factories used Supply Planner and improved Service Levels by over 4%.
o Indian arm of a Large CPG company improved its service levels by 5% using
the Supply Planner.
o A large Beer Manufacturer optimized production plan of over 15 factories
using the Supply Planner
Right Linkage of Movement -
Right Source of Supply for each
product to each Market
6
5 Distribution Requirement Plan
Material Requirement from
Vendors
4
Process 2
Process 1
1Monthly, Weekly and Daily
Loading on equipments
2Multi-Process Production Plan
for all Factories
3Right Production Sequence
o Cost and Profit Maximization
o Reduced Production & Distribution Lead-times
o Reduced Inventories and Improved Service Levels.
Components 14

Route Planner
Optimizes routes to create optimal delivery plan to reduce the delivery cost. Integrated with
Google Maps for road distances, traffic constraints and for result visualization
o Optimal grouping and allocation of the orders to the right vehicles
to ensure that the overall distance travelled is minimized.
o Best set of vehicles selected to maximize the vehicle utilization and
minimize the number & size of the vehicles required.
o Drop Sequence Optimization - Optimized Vehicle Route Sequence
based on Google distances to minimize the distance travelled
o Vehicle Status Tracking – Ability to track delivery status and Vehicle
Location.
o Optimized truck loads to ensure minimum number of trucks
required.
o Considers multiple parameters like vehicle capacity & availability,
product attributes, time & distance constraints. Based on Google
maps and road distances. Considers all traffic constraints.
o Ability to manually over-ride the Route Sequence based on drag &
drop; manually over-ride driver assignment to vehicles.
o Indian arm of a large CPG company used Route Planner for optimizing
deliveries to retailers from Distributor Warehouses to save over 10% of last
mile delivery cost.
o A large Confectionary manufacturer used Route Planner to optimize
deliveries from the depots to its distributors to save around 8% of delivery
cost.
o Over 20% reduction in Cost of Delivery
o Optimized travel distances, Vehicle Loads and reduced Time & Cost of delivery
o Visibility of Vehicle Location, Drop Status, Delivery Status etc.
Optimal Customer Grouping Optimal Vehicle Loading Optimal Drop Sequence
Components 15

Logistics Planner
Generates delivery plan from Factories to the final destination. Ensures timely delivery, Improves
Service Levels, Maximizes Vehicle Utilization and minimizes transportation cost.
o Multi-level Logistics Planning from Starting Point through
Distribution Centres to End-points. Optimization of the network
path for each product to each End-point.
o Optimization of Modes like Trucks of Various Capacities, Rail, Sea
Vessels, Part-load carriers, Air shipment etc. based on freight and
volume benefits.
o Optimizes Product Mix within vehicles and combines heavy and light
products together to maximize vehicle utilization.
o Handles Constraints like Product Mix, Loading constraints, Distance/
Time constraints, Vehicle Availability and Route constraints etc.
o Source Of Supply Optimization - Selection of the best Source of
Supply for products that can be sourced from multiple locations.
o Timely delivery – Pro-rata rationing of stocks across customers in
case of supply shortage. Prioritization of dispatch based on lead-
times and demand dates.
o A Large Biscuit Manufacturer in India with over 150 warehouses and over 50
factories used logistics planner to get over 8% savings in the distribution
cost.
o Indian arm of a Large CPG company improved its service levels by 5% using
the Logistics Planner.
o A large Manufacturer of Confectionary streamlined its logistics planning and
improved service levels by over 5%
Right Product Mix in
each Truck to maximize
Load
Right Linkage of Movement -
Right Source of Supply; Via
CDC vs. Direct Movement
3
Right Modes of Dispatch
on each Lane. Maximized
Consolidation
4
1
C1
C2
C3
2Fair share of Stock to each
Customer each day
o Timely Deliveries
o High Service Level
o Minimum Transportation Cost
Components 16

Production Planner
Books Orders on available Capacities across Plants, Processes and Equipments based on
Productivity & constraints. Balances capacity across Processes to maximize Asset Utilization.
o Generates Promise dates against the requested delivery date based
on current Order booking, Enquiry Size and Plant Capacity.
o Simulates the Impact of booking Orders on the existing Orders in
real-time. Ability to carry out What-If Scenarios.
o Ensures that High Priority Orders are done on time.
o Generates End-to-end Production plan across processes in one step.
Synchronizes and balances capacities across processes and
maximizes Asset utilization. Distributes load on multiple equipments
optimally based on the equipment capacity and constraints.
o Generates production schedule for all the equipments. Optimizes
sequence to maximize productivity and ensure timely delivery.
o Plan campaigns on multiple equipments based on attributes.
o Handles constraints like Routing constraint, changeover constraints
on equipments, availability & maintenance constraints.
o A large Chemical Manufacturer with 6 integrated factories used Production
Planner to resolve complex planning of multi-level BOM manufactured
across multiple factories.
o An Integrated Manufacturer consisting of multiple Steel Melt Shops, Wire
Rod Mill and Downstream plants for Forging, Smelting and Auto-
components used Production Planner to optimize its Service Levels
o Timely Delivery of Orders (OTIF)
o Lower Inventory
o High Asset Utilization and OEE
o Precise Delivery Commitment
Process 2
Process 1
1Optimal Loading on equipments
2Optimal Sequencing on equipments
3Multi-Process Scheduling
4 Delivery Date commitment.
Components 17

Manufacturing Execution System (MES)
Tracks production and quality at all stages and gives full visibility of Order and Material Status.
Integrates with Level 2 systems and helps in real-time production or quality decisions. Integrates
with Plant specific detailed Schedulers
o Integrates and downloads schedule and other Parameters to Level 2
(HMI, SCADA etc.). Fetches & validates Actual Production Results
(PDO) from Level 2. Manual Production Capturing Option for each
process in case of missing Level 2 Systems.
o Tracks Genealogy from RM to IM to FG to track the source of defect,
identify Area of Improvements and resolve Customer Complaints.
o Tracks Inventory, Order Progress Status, Genealogy, Production
defects, delays, stoppages, yield and production losses etc. and gives
visibility from Shop-floor to Top-floor.
o Intelligent auto diversion options to enable optimal shop floor
decisions in real time & reduction of free inventory.
o Quality Tracking to capture and validate results. Captures comments,
specifications, recipes, and procedure documents. Provides real-time
trends, statistics, and notifications to control quality levels.
o Batch Analysis - Provides Batch analysis of scheduled and completed
recipes and generates electronic batch records to help increase the
overall quality and consistency of products.
o Full Scale Implementation of MES for a 5 million ton Integrated Steel Plant
with Steel Melt-shop, plate mill and finishing lines.
o MES Implementation for a CRM plant for Special Steel with around 0.5
Million Ton Capacity
Production management
Generate PDI, send to L2
Receive PDO from L2
Quality Management
Manage Genealogy
Manage Deviations
Batch Analysis
Components 18

Other Key Customers
Steel
FMCG
Pharma Telecom Auto
Oil & Gas
19

Algorhythm USP
1 Proprietary rhythm Framework & Optimization Engine – Flexibility to deliver built to suit solutions
2 Simplifying Complexities – Easy to use Products / Solutions
3 Quick Turn around time, using AppliFire – Proprietary Rapid Application Development Platform
4
Extensive track record of successfully delivering Strategic & Operational Supply Chain Solutions to Fortune
500 Cos
5 Highly experienced People in Supply Chain Processes - Deep Understanding of Supply Chain Drivers
20

rhythm – Intelligent Supply Chains, Rapidly delivered (c) 2018, Algorhythm Tech Pvt. Ltd., Pune, India 21
Thank You
www.algorhythm.co.in sales@algorhythm.co.in

Algorhythm supply chain overview v2.1

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Algorhythm supply chain overview v2.1