Optimizing your Supply Chain execution planning
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Transcript of Optimizing your Supply Chain execution planning
Optimizing your Supply Chain execution planning
August 30, 2012
Adding Credibility
ORTEC has partnerships in numerous countries, spanning all continents
Characteristics:
Customers: 1550+
Countries: 40+
Revenue: €60M+
# years: 30+
Employees: 650+
Consumer
Packaged
Travel &
Transport
Retail Professional
service
Healthcare Sports
ORTEC Facts & figures
September 3, 2012 | 2
A strong combination - Combining logistics business knowledge,
mathematical models and IT within Planning Systems
Logistics Process Knowledge Understanding the customer – “talk the talk”
Information Technology User friendly systems that utilize
the full potential of IT
Operations Research Intelligent decision support
and process optimization
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ORTEC Core Competence
Adding Credibility
Case: Importec
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Company Profile: Importec
Main business:
Import and distribution of high quality Belgian Beers
Details:
742 customers (and counting) in the Netherlands
1 warehouse near Breda, from where distribution is done
6 different types of beer
Both kegs and bottles in crates
20 company owned trucks
2 supplying breweries
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Question from manager:
«How is it possible that our increase in volume of 10%
is reflected in 15% additional transportation costs? »
Background question of manager:
What are the factors influencing these additional
transportation costs?
Manager decides to consult an external party for
analysing our complete Supply Chain!
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Managers question
SCOR Project Approach
1. Business strategy & vision
Who are your customers and what do they need?
What is your business strategy and proposition?
2. Supply chains
Which supply chains are in place to execute the strategy?
What is the strategy per supply chain?
3. Data analysis & scenario calculation
What are the relevant metrics?
What is the necessary performance to live up to the strategy?
What are gaps between current and necessary performance?
4. Recommendations
How to improve the performance?
What is the quantitative potential of the improvements (impact, risk)?
Adding Credibility September 3, 2012 | 7
Recommendations
No Actions Project Description Impact Effort
1 Implement elements of S&OP • Communication between Sales/Marketing and Operations
• Implement Tools and Methodology
• Improved cooperation
+++ ++
2 Implement elements of
Dynamic Pricing and Revenue
Management
• Implementation of fees and discounts
• Phased implementation
• Reduced Cost AND increased Revenue
+++ +++
3 Redefine Supply Chain
organisation
• Evaluate options
• Organise new lay out
+++ +
4 Tool for route planning • No more paperwork
• Operational planning support
++ ++
5 Proactive Sales • More customer oriented activities
• Proactive sales to existing customers
• Get more value out of current customers
++ +
6 Summer peak shaving • Analyze Stock out data and late deliveries
• Roll out VPL
• Even out demand
+++ +
7 Optimise load for trucks • Automate process
• Train planners
• More efficient use of truck capacity
++ +
8 Reconsider brewery delivery
contracts
• Discuss late deliveries
• Communication between Sales/Marketing and Supplier ++ +
Adding Credibility September 3, 2012 | 8
high
Effort
Imp
act
medium low
high
medium
low
1 2
7
6
5
nice to
have
consider
carefully
quick
wins
sponsor
issue
3
4
8
Recommendations
1.Implement elements of
S&OP
2.Implement elements of
Dynamic Pricing and
Revenue Management
3.Redefine Supply Chain
organisation
4.Tool for Route
Planning
5.Proactive Sales
6.Summer peak shaving
7.Optimise load for
trucks
8.Reconsider brewery
delivery contracts
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Network Approach
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Model set-up and data gathering
Determines what aspects of reality will be in the model and in what way
Rebuild the "AS IS" situation and validate against reality → Is the model accurately reflecting reality?
Define and compare scenario‟s
Define scenario‟s and calculate effect on supply chain → Gain insight in possibilities
Comparing scenario‟s and decide the current and future direction to go → decide and make the change!
Typical Supply Chain Network Analysis
Importec current Supply Chain
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Importec Supply Chain Option
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Importec Supply Chain Choice
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Planner‟s needs
In order to be able to manage and be in control of the new Supply
Chain, our planner needs
An integrated planning solution that enables him to control the
redesigned routing operations
The tool must give him insight in important parameters and predefined
KPI’s like
Respecting time windows
CO2-emissions
Loading ratio of the trucks
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Example of operational support
Load Optimization in SAP TM
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Benefits for you
Increase trailer optimization / reduce number of cut orders or trailer „full‟ shortages
Minimization of packing, order picking and loading times / Increase labor productivity at the warehouse
Benefits for your customers
Reduce product damages / Increase service levels
Reduce dock time at your customers / Increase safety when unloading
Next (optimization) steps
After instaling and stabilizing the system, the planner will be able
to do additional analysing:
1. Analysing/monitoring key data Fill rate
CO2 emission
Cost per delivery
Kilometers & working hours
2. Optimizing the process and the use of the operational system
Also the inbound transport can be planned by the new system
Adding Credibility September 3, 2012 | 16
high
Effort
Imp
act
medium low
high
medium
low
1 2
7
6
5
nice to
have
consider
carefully
quick
wins
sponsor
issue
3
4
8
Recommendations
1.Implement elements of
S&OP
2.Implement elements of
Dynamic Pricing and
Revenue Management
3.Redefine Supply Chain
organisation
4.Tool for Route Planning
5.Proactive Sales
6.Summer peak shaving
7.Optimise load for trucks
8.Reconsider brewery
delivery contracts
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Global Network for Belgian brewery
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Optimizing your supply chain execution planning
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ORTEC experiences
Adding Credibility
ORTEC Consulting Group awarded
“In the first year alone using ORTEC’s solution, Coca-Cola
Enterprises realized a savings of $45 million dollars” said Mike
Jacks, Director of Logistics Systems. “We are extremely happy
with the solution and have been since 2004.”
2007 Finalist
2012 Winner
“TNT Express, supported by ORTEC’s modeling capabilities and
solutions, carried out numerous optimization projects which
resulted in saving 60 million kilometers of mileage and 54
million kg of CO2 emissions by optimizing its domestic
networks in Germany, France, Spain, Italy and China alone.“
September 3, 2012 | 20
ORTEC Consulting Group
Strategic & Tactical consultancy
SAP logistics consultancy
ORTEC Pallet & Load Building for
SAP TM
ORTEC LEO, Logistics Execution
Optimizer for SAP ERP
Adding Credibility
ORTEC SAP services:
ORTEC solutions for SAP:
ORTEC and SAP
September 3, 2012 | 21
What about your Supply Chain?
It‟s your business! We have the brains, the tools, the experience to optimize it.
Adding Credibility September 3, 2012 | 22