Supply Chain Execution- Solving business issues or just yet more headaches ? Presented by: David L Marshall PreCognition Ltd Business consulting in technology

In the land of the blind the one eyed man is king - why visibility dramatically reduces returns Return on Investment, strategists dream or an FD’s real business case scenario ? Soft World or hard reality - How do you select and implement the right software project to provide hard benefits Collaboration or Integration, how SCEM is the logical progression from electronic trading Agenda

Supply Chains are under Pressure Globalization Less vertical integration Brittle supply chain Supply uncertainty Demand uncertainty Consumer behavior Demand Forecast Error Shorter Product Life Cycles Longer Supply Chains

Critical business issues by type MARTEC International © Business process Supply chain visibility Technical constraints Other Communications 22% 15% 9% 6% 5% % of total responses Supply chain visibility

Financial No benefits Suppliers 38% 22% 14% 12% 7% 6% % of total responses StockCustomers MARTEC International © Benefits - Improving Information Exchange Supply chain visibility

Return on Investment, strategists dream or an FD’s real business case scenario ? Optimisation ?

Firms overspend on optimisation.. Average budgeted amount: €9.7m Average amount spent to date €16.9 m “How much did your supply chain optimisation implementation cost? How long did the project last?” Base: 25 European companies implementing supply chain optimization

Direct Communication Fax/ Paper 1% 11% 2% 76% 9% Traditional EDI % of total responses Web EDI UK Suppliers Direct Communication Fax/ Paper 0% 3% 87% 7% Traditional EDI Web EDI % EU Suppliers MARTEC International © Communication methods 2003 Low exploitation of available technologies 11% 3% Traditional EDI and Web based electronic trading – poor take up Is EDI dead ?? Or just pining ??

To develop adaptive supply networks firms must embrace three principles Adaptive Supply Network 3. Implement adaptively Deploy supporting technologies incrementally 2. Operate adaptively Manage business processes by exception 1. Organize adaptively New structure and performance metrics implemented to enable organizational flexibility Adaptive supply networks

Kewill integrated solutions

ASNs let firms proactively respond Optimisation focus Input for decision-making Problem-solving Origin of demand information Executive imperative Cost-cutting Efficiency Historical data Centralised Manual Crystal ball Efficiencyandagility Leading indicators Decentralised Software assisted Point-of-sale data Risk management In today’s supply chains In adaptive supply networks

“ 40% growth in sales and profits over 3 years” BUT No increase in stock No increase in warehouse space Improved customer service Maintain product profit margins The FDs objectives...hard realities

Real-time order processing Supply chain event management SLA / KPI management Reduce on hand stock Cross dock integration Automated billing Moving to Direct Dispatch

Direct Dispatch – removing DCs

Improved efficiency Direct dispatch from supplier to customer Supply chain collaboration –suppliers –call centre –carriers Visibility of the complete supply chain The Solution from Kewill Systems

Kewill provision of exceptions visibility

CustomerJDWKewillSupplierCarrier CustomerJDWSupplierCarrier Kewill Current System New System Adaptive workflow from Kewill

Reduced order cycle time Increased range and volume of products with no increase in stock or commitment Improved customer service Reduction in cancelled orders Reduction in supply chain costs Benefits derived from Kewill

To adaptive supply networks

Actions can be taken to reduce the likelihood of returns Pre-emptive shipment reporting Choosing the right software Soft worlds – Hard realities

Choosing the right software Collaboration in action…. Whiteboards for Supply Chain partners Shipment status alerts

PreCognition Working together making it stronger