1. “Supply Chain Complexity, An Opportunity”
Greg Smith, Industry Director, Transportation and Logistics
2. Supply Chain’s In the Coming Decade…
“The next ten years will be all
about mobile communication’s
and real time data.”
Noel Perry
Chief Economist, American Trucking Association
ITLC 2010 Conference
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4. Management Excellence:
The Next Competitive Edge
Competitive
Advantage Smart – Deep Insight
Agile – Decisive
Aligned – Across the
enterprise
MANAGEMENT EXCELLENCE
Cost – Lean and Mean
Quality – Six Sigma, TQM
Speed – Real-time, JIT
OPERATIONAL EXCELLENCE
Time
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6. Supply Chain Includes …
• Raw Materials Sourcing
• Availability of Quality Labor Markets
• Production Facilities Availability
• Ability to Control Quality
• Government stability and predictability
• Internal currency policies that are consistent with global trade
• Ability to move financial assets and repatriate profits
• Adequate domestic transportation infrastructure
• Governmental protections for IP
• Willingness to enforce copyrights and patents
• And more…..much more
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7. Multiple Services and 100% of Customers
on a Single Platform…
Rationalize and Modernize
Applications, Data Repositories,
and Infrastructure
Global Logistics
Planning and Execution
Platform
Link Islands of Automation with a
Service 1
Service 2
Service 3
Client 3
Client 2
Client 1
Business Process Platform to facilitate
Quote-to-Cash, Procure-to-Pay
Business Process Platform, Collaboration Hubs
Streamline Collaboration with
Enterprise SOA
Customers, Partners, Suppliers,
Regulatory Authorities through Legacy Applications, Data Hubs, Infrastructure
Collaboration Hubs
• Supports best-of-breed solutions
• Can be configured
• Leverages legacy applications
• Supports industry standards
• Vendor Independent
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9. Transforming the Quote-to-Cash Process can Significantly
Improve Scalability, Profitability & Operational Excellence
Quote Order Plan Execute Monitor Settle
Key Opportunity Areas for LSPs
• Automate the quoting process improving contract compliance, quote accuracy and reducing lead
times for quotes
• Capture, document, and respond to changes in orders without missing promised service levels
• Optimize planning and execution of orders so service levels are met while cost of service is
minimized and resource utilization is maximized.
• Get visibility to orders, shipments, assets, and personnel so LSPs can pro-actively respond to
operational disruptions and order changes, while ensuring service commitments are met
• Integrate quoting and service execution with operational accounting and billing so you can
automate accounts receivable, payable, and inter-company accounting processes
Transformation of the business process through enabling technology
platforms will allow LSPs to make IT strategic and help them differentiate
their offerings in the market place
LSPs who automate their Quote-To-Cash process can see 3-5% revenue
improvement, 5-7% reductions in cost and a 30% reduction in DSO*
Source: Oracle Analysis
10. RTD Enables Adaptive Business Processes
• Process learns and continuously
Business Processes
optimizes in real-time based on
closed loop information
• Analytic decisions are taken for
Process data Process decision each interaction
& context point & feedback
RTD Engine • RTD decisions based on rules and
predictive models
Real-time Business Rules &
Self-Learning Predictive Models • RTD optimizes across conflicting
business process goals
Server
Inputs
• Process leverages common data
model of real-time and historical data
Common Enterprise Information Model • Decisions based on facts, context,
analytic insights
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12. Questions can be worlds apart
How can we improve
What is our performance? performance?
• What are the top 10 markets? • What if we increase promotional
• What is the gap to forecast? capacity by 10% in our major
• What customers are most markets?
profitable? • What happens to our forecast if the
• What are revenues by product dollar declines by 5% to the Euro?
compared to last year? • What happens to gross margin if
• What are sales by product, our materials costs increase by
store and quarter? 20%?
• What is the trend for • Which customers drive 80% of our
employee-related costs? overall profitability?
• What is our open headcount? • What happens to same store sales
if inventory turns increase by 5%?
Situational Forward-looking
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13. Summing it up….
• Forward thinking logistics service providers understand
that IT is strategic and will make technology a central pillar
in their corporate strategy.
• Data needs to be accurate, and near real-time. One
version of the truth is critical.
• Your business architecture depends on
your technology architecture.
Revenues Costs
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