UNT Digitizing your Supply Chain · Digitizing your Supply Chain. Bringing The Network to . You. 2 (c) One Network Enterprises. This document is proprietary and confidential and may

1 (c) One Network Enterprises. This document is proprietary and confidential and may not be disclosed without the prior written consent of One Network.

Bernard Goor, One Network

UNTDigitizing your Supply Chain

Bringing The Network to You


Business Dilemma

InnovationCosts

Digitize Your Supply Chain

Digitize Your Consumer ExperienceCompanies ConsumersChannels

Disruptors

Market Conditions

Companies are facing tough challenges …

… which will force them to reduce cost and accelerate innovation – at the same time

AND

They will need to digitize both their front-end Consumer Experience and their back-end Supply Chain in order to win – or even survive


What Does Digitization Mean?

= The ability to share high fidelity information with all actors in a process in order to – Allow them to make optimized decisions based on real time

recommendations, or – Automate the decisions on their behalf

Key components– Real time information flowing seamlessly across the process– Autonomous agents making recommendations or decisions

Digitization means transparency, velocity, simplification and automation


Companies Can Digitize their Supply Chain by Deploying a Consumer-Driven Supply Network to …

• Demand Sensing• Demand Forecasting• Inventory Mgmt• Replenishment Planning• Suggested Ordering

• Demand Forecasting• Order Mgmt• Inventory Mgmt• Replenishment Planning

Order ForecastOrder

Order ForecastOrder

Order ForecastOrder• Order Mgmt

• Inventory Mgmt• MRP• BOM Disaggregation

Inventory Optimization

Production and Inventory

Optimization

Inventory Optimization Production and

Inventory Optimization

Seamlessly propagate the demand signal back through the supply network

Balance demand and supply at every node in the supply network in near real time

Respond to demand signal in near real time to fulfill consumer demand at the lowest cost

Logistics Planning and Execution



• Order Mgmt• Inventory Mgmt• MRP

Gain end-to-end visibility across the entire network

Stores DCs Factories Suppliers

1

2

3

4


Deploying a Consumer-Driven Supply Network Delivers Significant Benefits

Stores DCs Factories Suppliers

Increased service levels and fill rates

Increased visibility and transparency across the entire network

Improved logistics performance

Optimized inventory levels at every node in the network

Lower landed costs

Increased sales

Reduced spoilage, returns and markdowns

Increased agility and velocity across the entire network


Deloitte Agrees with the Value of Digital Supply Networks

By connecting all the stages to one another via advanced technologies, DSNs can minimize the latency, risk, and waste found in linear supply chains.

Companies would be poised to achieve new levels of performance, improve operational efficiency and effectiveness, and create new revenue opportunities.

Deloitte, “The rise of the digital supply network”, 2016

From traditional supply chains to digital supply networks (DSNs)


KPMG Validates the Value Proposition for Demand-Driven Supply Chains

Improved fill rates and reduced out-of-stocks drive increased revenue and recoverable sales

With greater certainty over demand, organizations can carry less stock

Better visibility of supply and demand should lead to fewer disruptions to supplies

Process automation reduces operating expenses, allowing buyer/ planners to manage by exception

Companies adopting demand-driven supply chains typically enjoy increased sales, reduced operating expenses and improved working capital

KPMG, “Demand-driven supply chain 2.0”, 2016

SalesSales

COGSCOGS

Planning

Planning

Transportation

Transportation

Actual Demand Actual

Demand

Promotional Demand Promotional

Demand

Buffer

Buffer

1-4% Improvement in Sales 5-10 % Reduction in

Operating Expense 20-30% Reduction

in Inventory

Demand-Driven

Traditional Model

Traditional Model

Demand-Driven

Demand-Driven

Traditional Model

Sales Levels Expenses Levels Inventory Levels


Revenue 1,000,000$ 100% 1,000,000$ Cost of Revenue 650,000$ 65% 600,000$ 60% (50,000)$ -5%Inventory 172,603$ 63 136,986$ 50 (35,616)$ -13

Before After Difference

What Could the Financial Impact Be?Example of a CG Food Manufacturing Company

5% reduction in COGS 20% reduction in Inventories

- $50 Million of COGS reduction - $36 Million of inventory reduction

Average COGS%

Average Days in Inventory

For a $1 Billion company


Why is a Consumer-Driven Supply Network Better?

Every company on the network uses its own systems and data

Companies on the network are connected via EDI, spreadsheets and emails – maintained by each company

Planning and execution are disconnected

The companies on the network use common processes, data and metrics (single version of the truth)

All companies are connected to one single network –maintained by One Network

Planning and execution are integrated in real time via machine learning agents

The Traditional Approach

FrictionsDelays Inefficiencies

High inventoriesHigh COGSOut of stocks

The Consumer-Driven Supply Network Approach

Network Platform

Network PlatformAgilityVelocity Transparency

Reduced inventories Lower COGS Improved on-shelf

availability


Traditional Supply Chain Create a Bullwhip Effect

The further back in the chain, the more variable the demand signal becomes

Demand Variability

DCStore Tier 2MFGDC Tier1Consumer


Why is that Happening?

Intercompany and cross-functional silos Disconnected planning and execution processes Redundant and repetitive processes across companies in the network


Silos

Inter-company silos Cross-functional silos

Sales

Marketing

Operations

Supply Chain

Finance

Sales

Marketing

Operations

Supply Chain

Finance


Disconnected Planning and Execution Processes

Batch planning systems disconnected from continuous execution layer

Execution

Planning

Execution

Planning

Execution

Planning

Execution

PlanningExecution

Planning


Redundant and Repetitive Processes

Sense and shape demand Synchronize supply and demand Respond to demand

Sense and Shape Demand

Synchronize Supply and Demand Respond to Demand










The Solution?Adopt a Consumer-Driven Supply Network

A Consumer-Driven Supply Network is a multi-party solution that

connects your entire eco-system (you + your customers, distributors,

suppliers and logistics providers) in a real-time decision-making,

consumer-driven network

Consumer-Driven Supply

Network

Logistics Providers

Sellers

Buyers

Distributors


A Consumer-Driven Supply Network Offers Unique Capabilities …

Single version of the truth across the network

Intelligent closed loop planning and execution with machine learning agents providing optimization within the execution layer

System of engagement working together with your systems of record

Retailer Supplier

Retailer

Logistics Providers

Consumer Goods

Company

Supplier

Distributor


… and Unique Benefits

Higher forecast accuracy Increased service levels and fill rates Improved on-shelf availability Increased revenues Decreased inventory levels Complete visibility and transparency

across the network Greater supply chain agility Improved logistics performance

Retailer Supplier

Retailer

Logistics Providers

Consumer Goods

Company

Supplier

Distributor


Example: One Network Solution Framework

Optimized Execution

Integrated Business Planning

Network Visibility and Monitoring

Network PlatformBy leveraging a many-to-many multi-party networkplatform that delivers security, scalability, reliability, extensibility and interoperability

By enabling a distributed transaction orchestration backbone, promoting visibility and traceability of all supply chain events across the entire network, and enabling all parties to resolve issues in real time

By optimizing planning and execution in real time within the execution layer, leveraging machine learning agents to continuously optimize supply chain events

By providing a directional P&L to plan and monitor the financial impact of demand and supply execution, and take corrective actions to ensure financial success

1

2

3

4


Network

Enterprise

One Network Operates as a System of Engagement That Integrates all Companies to a Common Process

Distributors Suppliers

Step 6Step 5Step 4Step 3Step 2Step 1 Step 8Step 7

Carriers Carriers

Systems of Record

System of Engagement

CG CompanyRetailers


The One Network Platform Is Uniquely Built to Enable Multi-Party Processes

Common Data

• Single version of the truth of master data and transaction data across all network nodes

Permissibility

• Multi-party permission model to maintain secure access by role for all network participants

Modularity

• Applications assembled from reusable modules built specifically for the industry

Scalability

• Horizontally scalable middle tier with grid computing architecture

Reliability

• Highly redundant and reliable architecture

Interoperability

• Extensive integration capabilities with enterprise systems to enable dual platform strategy

Extensibility

• Rich SDK and user interface to support highly flexible, configurable and extensible business processes

Network Platform


Application LogicApplication Logic

Built by Client, ONE, Partner….

INDUSTRY CORE MODULE

IXM EnginesApplication Modelsand Mixins Core Business Logic User Interface

PLATFORMComputational GridAgent Framework SDK and Studio

Integration(REST, SOAP, etc)

Command CenterUI Framework

Modeling FrameworkMaster Data ModelsCommon Transaction Models

CUSTOM

CUSTOM APPLICATION MODULES

Multi Layer Development ModelCUSTOM

CUSTOM

PUBLIC API

PUBLIC API

PUBLIC APIPUBLIC API

Platform extensions through DevNet


Network Visibility and Monitoring Objectives:

– Maintain the traceability and safety of your products across the entire network;

– Track all your orders and shipments on your extended network and react in real time to any disruption;

– Improve your ability to collaborate effectively with your customers, distributors and suppliers by leveraging a single version of the truth across the network

Key features– End-to-end monitoring, visibility and

traceability of all supply chain events across the network

– Early visibility to business disruptions through role-driven alerts

– Real time issue resolution


Optimized Execution Objectives:

– Improve your demand forecast and order forecast accuracy, and propagate the forecast through the entire network to optimize the synchronization of demand and supply across all nodes in the network

– Increase service levels, while reducing landed costs and inventory levels– Increase the velocity and agility of your supply chain by eliminating all the silos, frictions

and inefficiencies impacting your B2B transactions

Key features– Complete multi-party synchronization

across forecasts, orders and shipments– Optimization within the execution layer

with AI agent technology– Real time propagation through the

entire network


Integrated Business Planning Objectives:

– Improve your ability to react in real time to any financial planning deviation that can be resolved by increasing demand and/or improving supply across the entire network

– Leverage what-if scenario analysis to visualize the impact of demand and supply initiatives on your P&L

– Map the impact of demand and supply on your strategic plans (e.g. commodity plans, long term supply contracts)

Key features– Ability to synchronize financial planning

with demand and supply planning– What-if analysis and strategic planning– Real time P&L visualization


One Network Enables All Levels of Control Tower Deployments

Control Tower Level 1Visibility

Control Tower Level 2Alerts

Control Tower Level 3Decision Support

Control Tower Level 4Autonomous

Visibility to all the events and milestones you want track across the entire network

+ Alerts tagged to all events and milestones

+ Exception-based management

+ Multi-party collaboration to resolve them in real time

+ Execution of transactions within the control tower, with the users making decisions based on recommendations from intelligent machine-learning agents

+ Decisions made autonomously by the intelligent machine-learning agents imbedded in the execution layer without human intervention


Your Mission (if you Choose to Accept it) Study Consumer-Driven Supply Networks Understand why and how a Consumer-Driven Supply network will drive a

quantum leap performance improvement in Supply Chains and Logistics

AgilityVelocity Transparency

Reduced inventories Lower COGS Improved on-shelf

availability

Network Platform

Network Platform

FrictionsDelays Inefficiencies

High inventoriesHigh COGSOut of stocks


References

https://www.retailsupplychaininsights.com/doc/how-to-beat-amazon-by-digitizing-your-supply-chain-0001

http://www.inboundlogistics.com/cms/article/why-grocery-retailers-need-to-embrace-supply-chain-digitization/

http://www.mytotalretail.com/article/create-a-consumer-driven-supply-network/ https://www.linkedin.com/feed/update/urn:li:activity:6305411834098835456 https://www.linkedin.com/feed/update/urn:li:activity:6305891626443169792 https://www.linkedin.com/feed/update/urn:li:activity:6308668647510548480

[email protected]/in/bernardgoor-onenetwork

@bernardgoor

https://www.retailsupplychaininsights.com/doc/how-to-beat-amazon-by-digitizing-your-supply-chain-0001

http://www.inboundlogistics.com/cms/article/why-grocery-retailers-need-to-embrace-supply-chain-digitization/

http://www.mytotalretail.com/article/create-a-consumer-driven-supply-network/

https://www.linkedin.com/feed/update/urn:li:activity:6305411834098835456



mailto:[email protected]

http://www.linkedin.com/in/bernardgoor-onenetwork


Thank You!

Documents

UNT Digitizing your Supply Chain · Digitizing your Supply Chain. Bringing The Network to . You. 2 (c) One Network Enterprises. This document is proprietary and confidential and may