part ii the center of excellence ... - supply chain planning · business value of optimization for...
TRANSCRIPT
Part II The Center of Excellence Guide Series: A practical guide to Supply Chain COE Methodology and Technology
April 19, 2016
Meet the Presenters
Gertjan de Lange Connecting Business and Optimization SVP, AIMMSGertjan has 2 decades of experience in Analytics and Operations Research. He works closely with our customers, partners, academia and research organizations like Gartner as well as our sales, client support and R&D team to make sure we capture the business value of optimization for our customers.
Chris GordonVP, North AmericaChris has worked in supply chain consulting and operations across Europe, the US and India for more than 25 years. He’s driven dozens of supply chain initiatives with a heavy focus on leveraging analytical evidence to promote major business change.
Topics We Will Cover Today – Tools and Ideas to Get you Started
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Quick recap of Part I: Why is a Center of Excellence for SC Analytics valuable?
I’m busy - how do I build a supply chain analytics COE?
Finding talent
How to build applications
Keeping your COE energized
Next Steps
Questions & Answers
Recap of Webinar 1 – Available on AIMMS.com
1. It’s not about the technology or building cool
prescriptive analytics applications – Adoption &
business change is the only goal
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2. There’s a bounty of opportunity left on the table in
supply chain – look 1st towards planning and
revenue
3. A SC CoE can quickly become a SC Analytics
COE with the addition of some Operations
Research talent, technology & a methodology
4. Wait for the right opportunity to launch and earn
your executive sponsorship
5. Each project cycle, use a Proof of Concept
approach to accelerate adoption and keep energy
levels high
Shortage of Supply Chain Talent
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With this Pressure - How Can I Build a Supply Chain Analytics CoE?
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I Just Don’t Know Where to Start
Not Enough TalentPoor Fit for
Purpose
Changing Talent Needs
Bogged Down in Implementations
The CoE Pyramid
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In-house
Partner
AIMMS
Recruit (INFORMS)
Operational Research
Linear programming
Mixed-integer programming
Non- linear programming
SourceSkills
IT Data, UI & Test
In-house
IT Partner
IT Data, UI & Test
2 days AIMMS training
Data stewardship
UX leadership
Test compliance
Skills Source
In-house
Partner
Users
Training & Change
Change management
Org design
SourceSkills
Business Understanding & functional leadership
Planning, Manufacturing, logistics & sourcing
Takes a huge org to justify full time functional representation
In-house – functional teams
Business advisory
SourceSkills
AIMMS© Do not use or replicate without permission
Interested & able to solve complex models
.
Strong analytical mindset & problem solvers
Ability to capture business problems in model logic
Ability to dive in deep quickly
Characteristics Operations Research Person
Education Operations Research Person> Typically MSc or PhD w/ major or minor in OR/Mathematics
• Applied Mathematics
• Econometrics
• Industrial Engineering
• Chemical Engineering
• Electrical Engineering
• …
> MSc (Advanced) Analytics
> Certificate for Optimization
> MBA programs
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informs
> Over 12,000 members
> Business conference > 850 people
> Technical conference > 4,500 people
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www.informs.org
Getting Buy-In With Users
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AIMMS© Do not use or replicate without permission
Conceptual Design Example –Supply Chain Network
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We believe our SC network is a poor fit for our current business needs.
We’d like to know how far we are from optimal, what is the best compromise between perfect fit and agility and create a capability to stay on top of it.
Ultimately we’d like both morerevenue and stronger margin
Conceptual Design Example –Supplier Optimization
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Our procurement org’ has done a great job of negotiating supplier discounts based on volume and mix.
Our reality is that we don’t have a comprehensive view of supplier transactions across the regions and we want to couple this with supplier reliability metrics.
We want to consider these various components on an ongoing basis and reduce, risk, increase reliability and margin
Conceptual Design Example –S&OP
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We’ve embarked on an S&OP (IBP) initiative and it is progressing well – good collaboration.
The next step is for us to increase our quality of insight to supply planning so that the S&OP process is equipped with data to help decision making.
Our goal is to speed up the process, increase margin and capture more sales
Key Skills
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IT
Facilitator
P.M./Project Lead
SC Leader - CSCO(1st & last hour)
Functional knowledge/users
Functional knowledge/users
Change Management
Operational research (in-house, partner, AIMMS)
Data/UX
POC
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Users8 SC Planners Planning 3 month horizon every week
Supply Chain Assets1 National DC4 Regional DCs8 Plants
FormulationMaximize Profit…while meeting service level targets…respecting capacity limits …with a 5% overcapacity limit of 5 days per month
Expectations from Toolset
□ Easy to model
□ Flexible & Fit for purpose {‘glass box’}
□ Gain direct insights of results
□ Attractive & Easy to use
□ Collaborative
□ Scalable
□ Easy to integrate
□ Easy to deploy
□ Stimulate innovation
Keeping your CoE energized
With this Pressure - How Can I Build a Supply Chain Analytics CoE?
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04
I Just Don’t Know Where to Start
Not Enough TalentPoor Fit for
Purpose
Changing Talent Needs
Bogged Down in Implementations
Key Recommendations & Next Steps> Focus on rapid and successful implementation – BREAK THE CYCLE
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> Ensure your technology supports / not hinders this process
> Bring together the missing links in your team
> Work only on real / urgent business problems
> Use the proven Proof of Concept methodology, to start and to continue
> Move seamlessly from a white-board solution to a business application…quickly and without dilution
OK I’m interested in engaging in an AIMMS supported POC
> Test your conceptual design on us for fit
> Ensure you have access to your stakeholders
> Reach out – we typically schedule POCs 5-6 weeks out
Questions?
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Thank You! If you have any questions, please contact us:
Chris GordonVP, North [email protected]
Gertjan de LangeSVP, [email protected]
> Link to slides and recording will be emailed to you
> Go to AIMMS.com for webinars, white papers and case studies
> Contact us if you are interested in learning more about the POC methodology