QAD Explore 2012
Supply Chain Update
Rob Cramer
Director, Product Management, QAD Inc.
Supply Chain Update
Safe Harbor Statement
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.
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Supply Chain Update
Agenda
• The Effective Enterprise
• Themes:
-
Visibility
Agility
Complexity (globalism)
Metrics
• New and under development
• Next steps
• Questions
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Supply Chain Update
Effective Enterprise
“An Effective Enterprise is one where every
business process is working at peak
efficiency and perfectly aligned to the
company’s strategic goals. ”
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Supply Chain Update
Supply Chain Issues
• 787 Dreamliner
- Suppliers blamed
• Supply chain stole Christmas
- Mattel orders massive recall due to supplier
problems (Nov. 2007)
• Tsunami & iPad
Role of supply chain? Invisibility
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Supply Chain Update
Supply Chain Solution
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Supply Chain Update
Themes
“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”
•
•
•
•
Visibility
Agility
Complexity (globalism)
Metrics
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Supply Chain Update
Visibility
• 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
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Supply Chain Update
Visibility – Why It Matters
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
•
•
•
•
•
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Supply Chain Update
Reality Causes “Moments of Truth”
Demand
“Balance”
Supply
Product
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Supply Chain Update
Supply Chain Orchestration
Network
Conductor
Customers
Transporters
Suppliers
Partners
Transporters
Transporters
Distributors
Manufacturers
Consumers
Wholesalers
Assemblers
Buyers
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Supply Chain Update
Supply Chain Portal
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Supply Chain Update
Supplier Performance
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Supply Chain Update
QAD On Demand
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Supply Chain Update
Agility
• 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
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Supply Chain Update
Agility – Why It Matters
• 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
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Supply Chain Update
QAD TMS
SCP &
Transportation Tracking
Base
Package Exception
Management
Freight Management
Trade Compliance
Global Trade
Management
Rules & Workflow Enabled
• Multiple Deployment Options
• Content Driven
•
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Supply Chain Update
TMS Workflow Portal
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Supply Chain Update
Capitalizing on Complexity
• 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
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Supply Chain Update
Complexity – Why It Matters
• “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
Bangladesh
NY
Design
Manufacture
China
Fabrics
US Consumer
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Supply Chain Update
Not One Supply Chain
Relationship
with customer
Tight
1 Flexible”
“Fully
2
“Continuous
Replenishment”
“Fully
Flexible”
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3
“Lean”
“Agile”
Loose
High
Predictability
of demand
Low
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Supply Chain Update
QAD Warehousing
Putaway
Task management
Wave planning
Cross docking
Picking
Walk sequencing
Shipping
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Supply Chain Update
QAD EDI eCommerce
Translator
EDI
Messages
Trading
Partner Library
Gentran
Integration
Suite
Engine
QAD
Enterprise
Applications
EDI
eCommerce
Engine
Other Apps
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Supply Chain Update
Metrics
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Supply Chain Update
Metrics
• 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
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Supply Chain Update
Metrics – Why It Matters
• If you want to influence the game, make
sure that you determine how score is kept!
• It’s how to communicate with top
management
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Supply Chain Update
Leaders .... Make Balanced Trade-offs Across
the Business
Supply Chain Costs
Perfect Orders
Inventory
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Supply Chain Update
Related Metrics Analysis
Supplier delivery performance
Supplier
Performance
Procurement efficiency
Order fulfillment efficiency
Cost of poor quality
Delivery schedule adherence
Number of formal disputes
Ratio of price paid to price
quoted
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Supply Chain Update
Related Strategies
Improve planning
Manage supply chain
Track /monitor supplier performance
Supplier
Delivery
Performance
Manage outsourced manufacturing
Collaborative messaging
Automated trade compliance
Alerts and e-mail notification
Metrics and KPIs
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Supply Chain Update
New and Under Development
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Supply Chain Update
TPM Business Processes
Plan
Analyze
Execute
Settle
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Supply Chain Update
Budgeting/Accounting
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Supply Chain Update
Summary
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Supply Chain Update
Summary
• 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
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Supply Chain Update
Next Steps
• 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
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Supply Chain Update
Questions & Answers
Rob Cramer
Director, Product Management
rac@qad.com
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www.qad.com
© QAD Inc 2012
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