Envisioning the Next Generation of Analytics

9/11/2014Supply Chain Insights Global Summit #ImagineSC September 2014, p.1

Envisioning the Next Generation of Analytics

Facilitator: Lora Cecere, Supply Chain Insights

Panelists: Dr. Mani Janakiram, Intel;Stephen N. Wagner, Schneider Electric


Speakers

Lora CecereSupply Chain Insights

Founder and CEO

Dr. Mani JanakiramIntel

Director, Supply Chain Strategy

Stephen N. WagnerSchneider Electric

Global Director, Network Design

& Logistics Analytics


Envisioning the Next Generation of Analytics – A Panel Session

Mani Janakiram, PhDIntel Corporation


Intel Corporation The World’s Largest Semiconductor Manufacturer

•Leading Manufacturer of Computer, Networking & Communications Products

•$52.7B in Annual Revenues - 25+ Consecutive Years of Positive Net Income

•170 Sites in 66 Countries

•Over 107,000 Employees – 84,600 technical roles

•Named one of the Top Ten Most Valuable Brands in the World by Interbrand

•Ranked #42 on Fortune’s World’s Most Admired Companies

•Largest Voluntary Purchaser of Green Power in the United States for 6 years

in a row

•Invests $100 Million Each Year in Education Across More than 100 Countries

•4 Million Hours of Volunteer Service toward improving education over the

past decade

4

40,000 Employees

(TMG)

7Assembly/Test

Facilities

68Countries

Shipped To

920,000 Orders

Per Year

5275SKUs

3,300 Ship To

Locations

24Global

Warehouses1.5MInvoices

Processed

4M ft2 Manufacturing

Space

10,000Suppliers in

100 Countries

68,000Tons Transported

2BGallons of

WaterReclaimedEach Year

1.1B+ Units

Shipped9

Fabs in4 countries

Intel’s Manufacturing Supply ChainOur business is large and complex

Source: Intel 5Delivering Intel’s Future Through World’s Best Supply Chain


Supply Chain Analytics Scope

Finance

•Revenue projections •Cost control

Sales & Marketing

•Evaluates and agrees on TAM, SAM, SOM •Respond to forecasts•Manage customer accounts Forecasting

•Generate demand forecasts•Request Inventory Levels

Inventory

Planning

•Map demand to capacity•Manage inventory & Fulfillment

Logistics

•Network Design•Geo transportation•Warehouse and VMI

Development/Manufacturing

•Own product manufacturing

Materials / Equipment

•Delivers materials & Equipment, Substrates Engineering

•Product Design, NPI•Time to Market

*Supply Chain Management involves coordination and synchronization of business process, data and decisions among several functions

6

Plan

Source

Make

Deliver

Return

Optimization

Simulation

Statistics

SupplyDemand

SCM*

Physical + Information + Cash Flow


Supply Chain Trends & Emerging PracticesAnalytics Opportunity

• Demanding customer needs and intense competition will continue• Lack of Predictability in supply chain & customer needs• In-sourcing vs. Out-sourcing – Risk, Cost, Customer, etc.• Growth/Innovation shifting to emerging markets/geo• IT will continue to emerge – Big Data, Analytics, Visualization, SoCoMo, Digital, etc.• Breakthrough innovations – 3D printing, Lights out distributions centers, Drones• Moving from S&OP to Integrated Business Planning• Supply Chain Collaboration & Visibility becomes more critical• Supply Chain Professionals will be in great demand (including Data Scientists)• Supply Chain will no longer be cost based but profit based!

7


Application of Advanced Analytics at

Schneider Electric

Steve WagnerSchneider Electric


Agenda Intro to Schneider Electric (=SE=)Advanced Analytics at =SE=Exciting Opportunities for Analytics=SE= Analytics Organization


Overview• Founded in 1836, 170K employees, US $35B sales, 120 countries• High growth through acquisition (70K emp., $12B sales in 2002)

Products & Markets

Introduction to Schneider Electric (=SE=)

BuildingsHealthcare, Hotels, Industrial Buildings, Life Sciences, Retail

Energy & Infrastructure

Airports, Road Tunnels, Electrical Utilities, Oil & Gas, Marine, Water

Industry

Automotive, Food & Beverage, Microelectronics, Mining, Minerals, & Metals, Machines (by industry)

Over 500K high tech & industrial products positioned to serve the needs of our targeted markets:


• Mission is to optimize the =SE= Global Supply Chain– Procurement, Manufacturing, & Logistics with high focus on Service

• Established core global team 2013-2014– Implemented core analytics tools & organization to begin journey

• First focus is the Logistics Network strategy (by region)

Advanced Analytics at Schneider Electric

Visualize

Volumes and flows from both cost and service views

Optimize

Infrastructure and flows per alternative business scenarios

Implement

DC network per selected future design (may stage across years)

Core to this process is very high engagement with =SE= Business Units and Customers to assure Supply Chain design is aligned to both Supplier & Customer needs


Requisite Capabilities & Platforms• Lead Logistics/Transportation Providers

– Leverage size, knowledge, operating software

• Digitization of Flows, Costs, Rates– Critical for data capture & Control Towers– Utilize high-performance database technology

Exciting Opportunities for Supply Chain Analytics

Suppliers

Plants

DCs

Customer

Key Modeling Tools at =SE=• Microsoft Access & SQL Server• Tableau Business Intelligence Suite• Llamasoft Supply Chain Guru (SCG)

– Network Design, Simulation, Inventory, Routing

• Statistica Statistical Analysis System

Supply Chain Analytics Opportunities

Now: DC Network Design• High level product &

market aggregation

Upstream Analysis: • Plant mission & footprint• Production planning• Supplier alignment• Multi-echelon inventory

optimization (SKU level)

Downstream Analysis:• Market analysis (price &

service sensitivity)

Other Opportunities:• Mergers & Acquisitions• System decision analytics


• Formal Global & Regional Teams– Global teams in Atlanta & Singapore– Regional teams report into local staff– Heavy support & partnering to regions– Flat org structure (6 to 9 direct reports)

• Global Team Background– Significant business, consulting, and

engineering/modeling experience– Exceptional communication and inter-

personal skills (presentation/mentoring)– Technical undergraduate with MBA or

MS degree (IE, OR, Stats, Econ, Math)– Manager to Director level positions

required for procuring top talent

Schneider Electric Analytics Organization

EVP Global Supply Chain

SVP Logistics & Network Design

Head Network Design & Data Analytics

Global Team (Atlanta)

Global Team (Singapore)

Europe, ME, Africa

East Asia, Pacific, India

North Amer, South Amer

Envisioning the Next Generation of Analytics

Business

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