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Supply Chain Update
Rob CramerDirector, Product Management, QAD Inc.
QAD Explore 2012
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The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.
Safe Harbor Statement
Supply Chain Update
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• The Effective Enterprise• Themes:
- Visibility- Agility- Complexity (globalism)- Metrics
• New and under development• Next steps• Questions
Agenda
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“An Effective Enterprise is one where every business process is working at peak
efficiency and perfectly aligned to the company’s strategic goals. ”
Effective Enterprise
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• 787 Dreamliner- Suppliers blamed
• Supply chain stole Christmas- Mattel orders massive recall due to supplier
problems (Nov. 2007)
• Tsunami & iPad
Supply Chain Issues
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Role of supply chain? Invisibility
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Supply Chain Solution
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• Visibility• Agility• Complexity (globalism)• Metrics
Themes
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“Today’s supply chain is a result of actions taken in the past”
“Tomorrow’s supply chain will be the result of actions that we take today”
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• Volatile market resulting in high uncertainty in demand
• Shrinking margins due to price pressure• Rising customer service expectations and
diminishing brand loyalty• Increasing global competition• Business pressures to utilize expensive
assets with maximum efficiency• Global proliferation of value chain partners
Visibility
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• Improve on-time delivery performance• Improve responsiveness• Proactively alert customers of late
shipments• Reduce lead times and variability• Increase likelihood of mid-term change
success• Monitor carrier activities• Regulatory and security issues
Visibility – Why It Matters
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Reality Causes “Moments of Truth”
Supply Chain Update
STIC
KY
GLUE
Product
SupplyDemand“Balance”
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Supply Chain Orchestration
Supply Chain Update
SuppliersPartners
ManufacturersAssemblers
DistributorsWholesalers
Customers
Consumers Buyers
Transporters Transporters Transporters
Network Conductor
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Supply Chain Portal
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Supplier Performance
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QAD On Demand
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• Market sensitive (Demand Driven) = supply chain is capable of reading and responding to real demand
• Rapid sharing of information through the supply chain
• Network as a confederation of partners focused on customer need
• Joint product development, common systems & shared, standardized information
Agility
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• Rapidly align network and its operations to dynamic and turbulent requirements of customers
• Proactively anticipate changes and seek new emerging opportunities
• Rapidly changing preferences make it more important bring new products quickly
• Protection from forecast uncertainty instead of inventory
Agility – Why It Matters
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QAD TMSSupply Chain Update
SCP & Transportation Tracking
• Rules & Workflow Enabled• Multiple Deployment Options• Content Driven
Base
Freight Management
Global Trade Management
Package Exception Management
Trade Compliance
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TMS Workflow Portal
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• Source of competitive advantage• Breaking up processes that were once
within a single factory & dispersing them across many countries without losing control
• Minimize supply chain logistics & inventory costs
• Diversified, specialized knowledge base• Reduced cost and improved
responsiveness
Capitalizing on Complexity
Supply Chain Update
20US Consumer
China Fabric
s
BangladeshManufacture
NY Desig
n
• “Right outside the gates” means anywhere on the planet
• Means assembling armies of small & medium business that act as one
• Recognizes that networks can be smarter than individuals
Complexity – Why It Matters
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Rela
tion
sh
ip
wit
h c
usto
mer
Predictability of demand
“Lean”
Loose
Tight
High
“Fully Flexible”
“Continuous Replenishmen
t”
“Agile”
“Fully Flexible”
Low
1 2
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Not One Supply Chain
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QAD WarehousingSupply Chain Update
Putaway Task management
Cross docking
Walk sequencing
Wave planning
Picking
Shipping
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QAD EDI eCommerce
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QADEnterprise
Applications
Other Apps
Trading Partner Library
EDI eCommerce
Translator
GentranIntegratio
nSuite
EDIMessages
Engine Engine
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Metrics
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• Focus on overall supply chain metrics driven by the market and customer needs.
• Supply chain = strategy … • Supply chain = supporting technology +
applications + skills + competencies• Determine the RIGHT metrics
Metrics
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• If you want to influence the game, make sure that you determine how score is kept!
• It’s how to communicate with top management
Metrics – Why It Matters
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Leaders .... Make Balanced Trade-offs Across the Business
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Supply Chain Costs
InventoryPerfect Orders
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Related Metrics Analysis
Supplier Performan
ce
Cost of poor quality
Order fulfillment efficiency
Procurement efficiency
Supplier delivery performance
Delivery schedule adherence
Number of formal disputes
Ratio of price paid to price quoted
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Related Strategies
SupplierDelivery
Performance
Track /monitor supplier performanceManage outsourced manufacturing
Manage supply chain
Automated trade compliance
Improve planning
Metrics and KPIs
Collaborative messaging
Alerts and e-mail notification
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New and Under Development
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TPM Business Processes
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Plan
Execute
Settle
Analyze
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Budgeting/Accounting
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Summary
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• Effective supply chain management is ”invisibly” balancing demand, supply and product
• Future competition will be between supply networks which have the greatest collaboration and visibility
• Importance of utilizing the right combination of metrics and solutions to meet customer demand
• QAD’s supply chain solutions provide a wide range of tools to help balance, collaborate, and measure the effectiveness of your supply chain
Summary
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• Attend these related sessions:- Driving to the Effective Enterprise with KPIs
– May 9: 1:30pm
- QAD's Business Process Management- May 9: 2:45pm
- Shipment Execution for Domestic and International Movements- May 9: 4:15pm
- Business Intelligence: A Closer Look- May 9: 4:15pm
- Three Inventory Reduction Techniques- May 10: 9:45am
- Business Intelligence Workshop (Thursday morning)
• Stop by the Solutions Expo• Arrange a Supply Chain Q-Scan
Next Steps
Supply Chain Update
