Supply Chain Tower - The smartest way to master your Supply Chain

Supply Chain Control Tower – The
smartest way to master your
Supply Chain
aioneers & IBsolution

© 2023 - IBsolution GmbH 2
Boris Reuter
Co-Founder und Head of Innovation
boris.reuter@aioneers.com
Jana Murrweiss
Senior Sales Executive
jana.murrweiss@ibsolution.de

Zielgruppe
▪ Supply Chain Manager
▪ Head of Supply Chain
▪ Supply Chain Analyst
▪ CIO
▪ COO
▪ Head of Controlling

© 2023 aioneers | 4
Supply Chain Control Tower
The Smartest Way to Master Your Supply Chain.
aioneers | IBsolution Webinar | May 11th 2023

Agenda
1. Introduction
2. Why do we have this Webinar?
3. What is a Supply Chain Control Tower?
4. What's in it for me?
5. How does it look like in real life?
6. How to close the Supply Chain loop?
7. Q&A

aioneers – Building high-performing supply chains
Customers in various industry segments
140 employees
founded 2020 offices in Mannheim & Pune
AIO Supply Chain Command Center
Insights Control Tower
• Forward-looking, cross-functional transparency of the end-to-end
supply chain
• Continuous supply chain diagnostics, monitoring and surveillance
Intelligence Apps
• Forecasting, optimization & scenario simulations
• Autonomous findings generation & recommendations
Impact Execution Management
• Reliable execution of improvement initiatives and decisions
• Organizational learning & continuous improvement of the supply
chain
Use Cases
Supply Chain planning /
S&OP
E2E supply chain visibility
Intelligent Order Fulfillment
Decarbonization
Inventory management
Automated supply chain
workflows
Circularity
Availability & allocation Manufacturing
Logistics & transportation
Purchasing
PLM & Product
Portfolio Mgmt.
Awards and certifications
x
o9’s Most Valuable Partner Award 2022
elog@istics award 2023

What is a Supply Chain Control Tower?
What's in it for me?
How does it look like in real life?
How to close the Supply Chain loop?
Questions you might answer after this Webinar
Why do we have this Webinar?

SLOW MOVER
REDUCTION
90%

A new paradigm is deriving from the VUCA world
Corona Transportation Shortages
Ukraine war
Fukushima
Climate change
Migration
Digitalization
Cyber threats Compliance
Consumer awareness
Inflation & volatility
Source: Gartner
36% 35% 35%
31%
26%
Support New
Business/
Operationg
Models
Improve
Resiliency/Agility
Enhance Decision
Making
Drive Efficiency
Improvements
Address Labor
Constraints
Top 5 ranked factors motivating Supply Chain
investments in emerging Technologies

Challenges deriving from this new paradigm
SUPPLY CHAIN SHORTAGES
Supply-side shortages are
responsible for disrupting the
supply chain, leading to delays
and stock-outs that adversely
impact your business.
INSUFFICIENT ORDER
FULFILMENT
Lack of forward-looking
transparency on product
availability and inability to quickly
analyze impacts of short material
supply degrade customer service
levels.
NO E2E VISIBILITY & NO REAL
TIME DATA
Decision-making effectiveness is
hampered by the unavailability of an
end-to-end digital supply chain
twin.
INACCURATE INVENTORY
MANAGEMENT
Excess or inadequate inventory
levels from supply chain
uncertainties, result in tied up
capital, increased variable costs
or stock-outs.
LIMITED SUPPLY CHAIN
RESILIENCE
The inability to adjust supply chain
processes in response to
unforeseen events can result
in reduced agility, making it
difficult to stay competitive and
meet customer demands.
LACK OF INTELLIGENT
ALGORITHMS & ANALYTICS
High complexity of supply chain
settings and manual decision-
processes lead to long reaction
times and low-quality results.

Setting the scene: Taxonomy
Source: Gartner, aioneers
Supply Chain Control Tower
... is a operational framework combining people, process, data and
organization, facilitated by appropriately combined technology elements.
It establishes a central hub to capture and use data - structured and unstructured,
internal and external - to provide enhanced visibility, predictions and suggestions
for short-term and midterm decision making.
Digital Supply Chain Twin
... is a digital representation of the physical supply chain that can be used to create
plans and make decisions. It replaces the traditional supply chain model that sits at
the heart of any planning-related SCM solution with a model (twin) that is built
from granular data and is near real time in its reflection of the real world.
Supply Chain Command Center
... is a tool consisting of existing and new technologies (such as graph technology,
advanced analytics and AI/ML) combined with near-real-time data from the
business ecosystem.
It facilitates advanced data processing and allows for the delivery of use-case-
specific, insightful information, predictions and suggestions that are relevant and
adaptive to user experiences based on more connected supply chain data.
one-off/
explorative
periodic/
monthly/
weekly
operational/
daily
(near)
realtime/
event driven
automated
respond
optimize
visualize
predictive
prescriptive
descriptive
Level of decision making

The evolution from individual reporting approaches to an E2E Digital Supply
Chain Twin allows to make fast and effective business decisions
Digital Supply
Chain Twin
2
Supply Chain
Control Tower
Supply Chain
Command Center
1
▪ Transformational concept with ambition
▪ An end-to-end comprehensive single
model
▪ Granular & near-real-time data from
multiple sources with association &
advanced analytics
▪ Convergence between planning and
execution
▪ horizontally and vertically well-aligned
high degree automated
▪ Cross-functional and highly
use-case-specific models
▪ Near-real-time data, advanced
and connected data
processing
▪ Orchestration and execution of
processes across distributed
functions and systems
▪ Static and domain-specific
models for functions
▪ Transactional data in daily or
monthly basis
▪ Newsroom-like environments,
focused on visualizations and
dashboards
▪ No central
governance
▪ No integration
▪ No sufficient visibility
Individual
Reporting
Approaches Data
analytics
AI/ML-based Simulation /
scenario modelling
Dashboards &
reporting
3
0
People centric
Process centric
Decision centric
Source: Gartner, aioneers

Typical Use Cases
E2E SUPPLY CHAIN VISIBILITY
Gain end-to-end transparency
across your supply chain and
break down organizational silos
to identify issue root
causes through obtaining
different functional vantage
points.
INVENTORY OPTIMIZATION
Maintain inventories at the right
level to buffer the supply chain
against peak demand and low
supply – ensuring overall
low inventory and high product
availability.
SALES & OPERATIONS
PLANNING
Integrate sales and marketing
planning on volume and value with
operational planning to optimally
balance cash, cost and service.
INTELLIGENT ORDER
FULFILMENT
Ensure high product availability,
supply chain flexibility and
reliable deliveries to customers
by breaking down bill of
material structures and
connecting data from suppliers
to customers in real time.
DECARBONIZATION
Determine your corporate carbon
footprint and decarbonize your
supply chain to save the planet and
ascertain compliance with latest
regulations.

Some numbers...
2x FASTER TIME-TO-
MARKET
90%
SLOW MOVER
REDUCTION
€1mio
INVENTORY REDUCTION
ANNUAL SAVINGS PER
PRODUCTION PLANT
€30mio
40%
MASTER DATA
QUALITY
INCREASE 20pp
FORECAST
ACCURACY
INCREASE

… and effects
SINGLE SOURCE OF
TRUTH
CLOSED-LOOP
PERFORMANCE
MANAGEMENT
AI-BASED DIAGNOSTICS
AND
RECOMMENDATIONS -
INTELLIGENT DECISION
MAKING
END-TO-END DATA
INTEGRATION &
TRANSPARENCY
FOUNDATION OF
THE SUPPLY CHAIN
TWIN
CROSS-
FUNCTIONAL
PROBLEM SOLVING

The true value of a control tower is not just in analytical insights, but in
deriving corrective measures and executing them to achieve real E2E
improvement. Four capabilities are needed to realize the control tower
Picture source: https://img.welt.de/img/regionales/frankfurt/mobile117113055/5802503767-ci102l-w1024/Frankfurter-Tower-hat-alles-im-Blick.jpg
Control Tower
Team Sessions
1. Regular cross-functional sessions
2. Current status and problems
3. Measure-based problem-solving
resolution
4. Root causes for tactical improvement
5. knowledge management and learning
3
Improvement Initiatives
& Business Impact
1. Rule-based recommendations
2. Execution management
3. Cross-functional way of working
4. Regular structured implementation reviews
5. Fully digital execution support
4
Technical
Enabler
1
1. Consistent accurate data
2. Continuous, near real time data updates
3. Intuitive dashboard design
4. Standardized and self-service reports
5. Digital execution to manage improvement
E2E Capability
Building
2
1. E2E supply chain awareness
2. Aiming for E2E “global” optimum
3. Data-centric mindset
4. Cross-functional leadership commitment
5. Continuous improvement
… it’s like an Airport Control Tower:
not just noticing & monitoring the planes but
steering them to achieve a desired outcome

Technical Enabler & E2E Capability Building
Structural concept example of a E2E Supply Chain Control Tower
Top-Level
KPIs
Analytics
Level
E2E
Prozess
Assembly
Scheduling
Network
Planning
Product
Development
E2E /
Cross-functional:
Cost & Inventory
Order
Intake
Inbound
Logistics
Materials
Mgmt.
Shipping
Production /
Assembly
Vendor
Scheduling
Production
Scheduling
Packaging
OTD / OTIF
Delivery
performance
report
3PL costs &
performance
3PL
Monitoring
Extraordinary
Costs
Inventory and
Coverages
Direct &
indirect
workforce
Inventory
waterfall /
cockpit
Material Re-
Routing & Material
Overview
Chargeback
Report
Inventories vs. air
freight
Supplier
Management
OTIF /
Supplier
Performance
Critical Supply
Materials
Supplier Rating
Execution:
Escalation
management
Measures
Level
Execution:
Cost
aviodance
Execution:
Inventory
reduction
Utilization OEE
Loading and
variability
Availability,
Performance,
Quality
Execution:
Micro-stops
elimination
…
…
…
…
…
…
…
…
…
…
…
…
Recommend
-ation
Level
1
2
4
3

Control Tower Team Sessions:
Vertical escalation logic from operative reality to strategic steering
Monthly
Control Tower Meeting
▪ Operational work
▪ Prioritization of daily tasks
▪ Escalation if needed
▪ Cross-functional resolution of issues
▪ Root cause identification and tactical
improvement measures
▪ Mid- to long-term decisions
▪ Integration into S&OP to optimize balance of
supply and demand
▪ Performance tracking
Escalation Resolution
Escalation Resolution
Daily Supplier
Mgmt.
Daily Shipping
Daily Production
Daily Assembly
Scheduling
Weekly
Control Tower Meeting
1
2
4
3

Closing the supply chain loop with the AIO Supply Chain
Command Center
Intelligence
Apps
Diagnostics &
recommendations
Forecasting,
optimization &
scenario simulations
Insights
Control Tower
Forward-looking
transparency
Cross-functional
problem solving
Impact Execution
Management
Initiative management
& reliable execution
Active learning &
improvements
4. Prescriptive Analytics
Decide how to make it happen and
track progress and results
5. Active Learning
Learn from the results and build-up a supply chain knowledge repository
Predict what will/shall happen
in the future
3. Predictive Analytics
Analyze the root causes and
effects of what happened
2. Diagnostics
Understand what has happened –
after the fact and in (near) real-time
1. Descriptive Analytics
1
2
4
3

LET‘S HAVE A LOOK AT OUR
AIO SUPPLY CHAIN COMMAND CENTER

AIO Supply Chain Command Center:
Insights Control Tower

AIO Supply Chain Command Center: Insights Control Tower

AIO Supply Chain Command Center:
Impact Execution Management

Key learnings
4 CORE CAPABILITIES
INFINITY LOOP OF
LEARNING AND
IMPROVEMENT
THE NEW PARADIGM:
END-TO-END SUPPLY
CHAIN VISIBILITY
DIFFERENT
MATURITY LEVELS
USE CASES &
BENEFITS
CORRECTIVE
MEASURES AND
EXECUTION

Weitere Informationen
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