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Ernest Nicolas
Rockwell Automation
Vice President – Global Supply Chain
The Connected Enterprise
The Rockwell Automation Journey
Supply Chain Insights Global Summit 2018
at A GLANCE
OUR STRATEGY IS TO BRING THE CONNECTED ENTERPRISE TO LIFE
We integrate control and information across the enterprise to help industrial
companies and their people be more productive.
$6.3B
FISCAL 2017 SALES
80+
COUNTRIES
22,000
EMPLOYEES
ABOVE-MARKET GROWTH | PRODUCTIVITY | INTELLECTUAL CAPITAL VALUE CREATION
WORLD’S LARGEST COMPANY DEDICATED ​TO INDUSTRIAL AUTOMATION AND INFORMATION
Faster Time
to Market
Lower Total Cost
of Ownership
Improved Asset
Utilization
Enterprise Risk
Management
3Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLICSupply Chain Insights Global Summit 2018
Business Value
We Help Customers Achieve…
Supply Chain Insights Global Summit 2018
Supply Chain Insights Global Summit 2018
P R O D U C T C O M P L E X I T Y & L E A D T I M E
CO MP O NE NT S
CO NT RO L &
V I S UA L I ZA T I O N
P L A T FO RMS
S O L UT I O NS / E T O
MANUFACTURINGSUPPLY FULFILLMENT CHANNELS CUSTOMERS
SUPPLY CHAIN
OUR
MFG Partners
20 MFG Plants
3 Distribution Centers
17 Warehouses
160+ Authorized
Distributors
Direct Customers
PartnerNetwork™
End Users
2300 Direct Material
Suppliers
OUR PRODUCTS
5Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLICSupply Chain Insights Global Summit 2018
GLOBAL SUPPLY
CHAIN PERSONAS
Guiding Enterprise
Transformation
Production Planning
DECISION SUPPORT SYSTEMS
• Planner Playbooks
• Rough Cut Capacity Planning
• Finite Scheduling
PEOPLE PROCESS TECHNOLOGY
SUPPLIER RELATIONSHIPS
• On Time Compliance
• Supplier Stratification
• Balanced Scorecards
Sourcing/Procurement
DISTRIBUTION PLANNING
• Fill Rate / Request Met
• Total Order Cycle Time
• Preferred Availability/Utilization
Distribution Planning
INTEGRATED BUSINESS PLANNING
• Sales & Operations Planning
• Global Top10K
• Business Continuity
Business Planning
FACTORYTALK ® PRODUCTION CENTRE
• OEE Visibility
• Cycle Time Optimization
• Down time tracking
Operations Management
ANALYTICS
• Prescriptive  Descriptive
• Inventory Optimization
• Strategic Buffering
Supply Chain Analysts
CARRIER CONSOLIDATION
• Third Party Logistics Partnering
• Regional Commercial Focus
• Global Distribution Planning
Transportation Analytics
Supply Chain Insights Global Summit 2018
Supply Chain Insights Global Summit 2018
How We Got Here
2010 2011 2012 2013 2014 2015 2016 2017 2018
 Global Deployments
 SAP
 FactoryTalk® Production Centre
 Global Manufacturing Re-footprinting
 Supply Chain Risk Program Introduction
 New Product Introduction Strategic
Sourcing
 Global Finished Goods
Rationalization
 Preferred Availability
 Preferred Utilization
 Design for Supply Chain
 Supply Chain Localization
to align with Manufacturing
Re-footprinting Initiatives
 Renewed Supply Chain Focus on
Competencies
 Total Cost of Ownership
 Total Order Cycle Time
 Sales & Ops. Planning
 Introduction of the Connected Supply
Chain as moving beyond the Connected
Enterprise
 Supplier Portal & Communication
 MEIO Optimization
Supply Chain Insights Global Summit 2018
QUANTIFIABLEBENEFITS
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
PRODUCTIVITY – TOTAL OES
Improved Annual Productivity
CUSTOMER SERVICE
CUSTOMER SERVICE
77% to 96%
PRODUCT LEAD TIME
30 to 15 days
PAST DUE
$30m to $3m
SUPPLIER PERFORMANCE
SUPPLIER OTTP
88% to 95%
SUPPLIER LEAD TIME
26 to 17 days
SUPPLIER QUALITY
3800 to 400 ppm
SC COST AS A % OF REVENUE FLAT
Connected Supply Chain aims to build on the foundation that has been established
WORKING CAPITAL
INVENTORY DAYS
120 to 82 days
PAYMENT TERMS
30 to 77 days
CAPITAL EXPENDITURE
30% reduction
Connected Enterprise Journey
8Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLICSupply Chain Insights Global Summit 2018
Best practices more accurately
identified and proliferated using
consolidated analytics
Using real-time data, more
profitable decisions are
easier to make
We have clearer visibility into
every plant’s operation
Supply Chain Insights Global Summit 2018
Where We Are Now
Supply Chain Insights Global Summit 2018
CONNECTED
THE
SUPPLY CHAIN
Supply Chain Insights Global Summit 2018
“OUR CONNECTED
ENTERPRISE”
Continue to mature and
refine our application of
The Connected
Enterprise within RA’s
operations
Plant Productivity
Quality
Connected Supply Chain Benefits
INVENTORY OPTIMZATION
Ensure the optimal allocation of
inventory across the entire supply
chain network
Inventory Reduction
TCO Reduction
Organizational Productivity
SUPPLY CHAIN
NETWORK OPTIMIZATION
Design and evolve the ideal value
chain
TCO Reduction
TOCT Reduction
SUPPLY CHAIN VISIBILITY
Aggregate and present data across the
supply chain enabling increased efficiencies
and improved decision making capabilities
TCO Reduction
Organizational Productivity
2019+  Agile Connected Supply Chain with selective “Best of Breed” Technology Solutions Providers
Supply Chain Insights Global Summit 2018
TRANSFORMATION
SUPPLY CHAIN
MEIO GLOBAL DEPLOYMENT
ENTERPRISE CAPACITY MANAGEMENT
PRODUCT AVAILABILITY DESIGN THINKING
TARGET OPERATING MODELS
AUTOMATED BUSINESS PROCESS DISCOVERY
2019+  Cognitive Sourcing | RPA Driven Procurement | Enhanced Visibility | Omni Channel
THANK YOU

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Rockwell Automation Presentation from the Supply Chain Insights Summit 2018

  • 1. Ernest Nicolas Rockwell Automation Vice President – Global Supply Chain The Connected Enterprise The Rockwell Automation Journey
  • 2. Supply Chain Insights Global Summit 2018 at A GLANCE OUR STRATEGY IS TO BRING THE CONNECTED ENTERPRISE TO LIFE We integrate control and information across the enterprise to help industrial companies and their people be more productive. $6.3B FISCAL 2017 SALES 80+ COUNTRIES 22,000 EMPLOYEES ABOVE-MARKET GROWTH | PRODUCTIVITY | INTELLECTUAL CAPITAL VALUE CREATION WORLD’S LARGEST COMPANY DEDICATED ​TO INDUSTRIAL AUTOMATION AND INFORMATION
  • 3. Faster Time to Market Lower Total Cost of Ownership Improved Asset Utilization Enterprise Risk Management 3Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLICSupply Chain Insights Global Summit 2018 Business Value We Help Customers Achieve… Supply Chain Insights Global Summit 2018
  • 4. Supply Chain Insights Global Summit 2018 P R O D U C T C O M P L E X I T Y & L E A D T I M E CO MP O NE NT S CO NT RO L & V I S UA L I ZA T I O N P L A T FO RMS S O L UT I O NS / E T O MANUFACTURINGSUPPLY FULFILLMENT CHANNELS CUSTOMERS SUPPLY CHAIN OUR MFG Partners 20 MFG Plants 3 Distribution Centers 17 Warehouses 160+ Authorized Distributors Direct Customers PartnerNetwork™ End Users 2300 Direct Material Suppliers OUR PRODUCTS
  • 5. 5Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLICSupply Chain Insights Global Summit 2018 GLOBAL SUPPLY CHAIN PERSONAS Guiding Enterprise Transformation Production Planning DECISION SUPPORT SYSTEMS • Planner Playbooks • Rough Cut Capacity Planning • Finite Scheduling PEOPLE PROCESS TECHNOLOGY SUPPLIER RELATIONSHIPS • On Time Compliance • Supplier Stratification • Balanced Scorecards Sourcing/Procurement DISTRIBUTION PLANNING • Fill Rate / Request Met • Total Order Cycle Time • Preferred Availability/Utilization Distribution Planning INTEGRATED BUSINESS PLANNING • Sales & Operations Planning • Global Top10K • Business Continuity Business Planning FACTORYTALK ® PRODUCTION CENTRE • OEE Visibility • Cycle Time Optimization • Down time tracking Operations Management ANALYTICS • Prescriptive  Descriptive • Inventory Optimization • Strategic Buffering Supply Chain Analysts CARRIER CONSOLIDATION • Third Party Logistics Partnering • Regional Commercial Focus • Global Distribution Planning Transportation Analytics Supply Chain Insights Global Summit 2018
  • 6. Supply Chain Insights Global Summit 2018 How We Got Here 2010 2011 2012 2013 2014 2015 2016 2017 2018  Global Deployments  SAP  FactoryTalk® Production Centre  Global Manufacturing Re-footprinting  Supply Chain Risk Program Introduction  New Product Introduction Strategic Sourcing  Global Finished Goods Rationalization  Preferred Availability  Preferred Utilization  Design for Supply Chain  Supply Chain Localization to align with Manufacturing Re-footprinting Initiatives  Renewed Supply Chain Focus on Competencies  Total Cost of Ownership  Total Order Cycle Time  Sales & Ops. Planning  Introduction of the Connected Supply Chain as moving beyond the Connected Enterprise  Supplier Portal & Communication  MEIO Optimization
  • 7. Supply Chain Insights Global Summit 2018 QUANTIFIABLEBENEFITS FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 PRODUCTIVITY – TOTAL OES Improved Annual Productivity CUSTOMER SERVICE CUSTOMER SERVICE 77% to 96% PRODUCT LEAD TIME 30 to 15 days PAST DUE $30m to $3m SUPPLIER PERFORMANCE SUPPLIER OTTP 88% to 95% SUPPLIER LEAD TIME 26 to 17 days SUPPLIER QUALITY 3800 to 400 ppm SC COST AS A % OF REVENUE FLAT Connected Supply Chain aims to build on the foundation that has been established WORKING CAPITAL INVENTORY DAYS 120 to 82 days PAYMENT TERMS 30 to 77 days CAPITAL EXPENDITURE 30% reduction Connected Enterprise Journey
  • 8. 8Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLICSupply Chain Insights Global Summit 2018 Best practices more accurately identified and proliferated using consolidated analytics Using real-time data, more profitable decisions are easier to make We have clearer visibility into every plant’s operation Supply Chain Insights Global Summit 2018 Where We Are Now
  • 9. Supply Chain Insights Global Summit 2018 CONNECTED THE SUPPLY CHAIN
  • 10. Supply Chain Insights Global Summit 2018 “OUR CONNECTED ENTERPRISE” Continue to mature and refine our application of The Connected Enterprise within RA’s operations Plant Productivity Quality Connected Supply Chain Benefits INVENTORY OPTIMZATION Ensure the optimal allocation of inventory across the entire supply chain network Inventory Reduction TCO Reduction Organizational Productivity SUPPLY CHAIN NETWORK OPTIMIZATION Design and evolve the ideal value chain TCO Reduction TOCT Reduction SUPPLY CHAIN VISIBILITY Aggregate and present data across the supply chain enabling increased efficiencies and improved decision making capabilities TCO Reduction Organizational Productivity 2019+  Agile Connected Supply Chain with selective “Best of Breed” Technology Solutions Providers
  • 11. Supply Chain Insights Global Summit 2018 TRANSFORMATION SUPPLY CHAIN MEIO GLOBAL DEPLOYMENT ENTERPRISE CAPACITY MANAGEMENT PRODUCT AVAILABILITY DESIGN THINKING TARGET OPERATING MODELS AUTOMATED BUSINESS PROCESS DISCOVERY 2019+  Cognitive Sourcing | RPA Driven Procurement | Enhanced Visibility | Omni Channel