Enabling Supply Chain
Optimization in the
Process Industries
FOCAPO 2003
January 14, 2003
Narayan Venkatasubramanyan
Director, i2 Technologies
© 2003 i2 Technologies, Inc. CONFIDENTIAL
Outline
n
Brief history of i2
n
Supply Chain Solutions: A fundamental shift is under way
n
What our customers are asking for in our solutions
n
Solution Architecture
n
i2’s Current Position
n
i2’s Current Response
© 2003 i2 Technologies, Inc. CONFIDENTIAL
A brief history of i2
Beyond the enterprise …
Enterprise Supply Chain
Management
Factory Planning
© 2003 i2 Technologies, Inc. CONFIDENTIAL
The Fundamental Shift in Solution Focus
Current Focus
Supply/Manufacturing Driven
Asset Focused
Cost and Utilization Objectives
Functional Optimization
Multiple Disparate Tools
Single User Domains
Emphasis on:
Optimization based on local view
Periodic re-planning
Calendar-based view
© 2003 i2 Technologies, Inc. CONFIDENTIAL
New Focus
Demand Driven
Customer Focused
Adds Profit and Service Objectives
Enterprise Optimization
Single Unified Environment
Collaborative Environment
Emphasis on:
Optimization based on global view
Continuous Decision Support
Event-based view
Downstream Supply Chain Components
Planning Horizon View
SUPPLY CHAIN NETWORK PLANNING
Strategic
Tactical
INTEGRATED SUPPLY CHAIN PLANNING
DEMAND
MGT
REFINERY
SCHEDULING
DISTRIBUTION
SCHEDULING
Operational
DIST
SCHED
Integration Platform
Trading & Exchange
Commercial
Customers
Secondary
Distribution
Retail
Customers
© 2003 i2 Technologies, Inc. CONFIDENTIAL
Product
Storage
Primary
Distribution
Refining
Crude
Acquisition
Strategic Planning
Actual
purchases
and
exchanges
Supply Chain
Configuration
Forecast
Netted
forecast
Demand
Planning
Supply Chain Planning
Crude
basket
and
value
steers Frozen
Planned
Planned
production and
Frozen
distribution and
economic
schedule
schedule
economic
drivers
drivers
Agreed
supply and
Plant
liftings
Transportation
Reliability
Rqmnts
Planning &
Scheduling
Event
updates
Schedule
updates
Management
Events,
Orders,
Inventory
Schedule
updates
Optimised
Allocations
Orders,
ETAs
Data & Integration Platform
© 2003 i2 Technologies, Inc. CONFIDENTIAL
Historical
Demand
Demand
Fulfilment
Profiled
Forecast
Demand
Collab
Promises
and
Prices
Order
Collab
Demand Collaboration
Spares Mgmt Trading / Exchanges
Supplier Collaboration
SCM Architecture for Process Industry
i2 Solution Fit – Process
Today
Oil & Gas
Chemicals
Metals
Strategic Planning
Demand Planning
Demand Fulfillment
Supply Chain Planning
Plant Planning
Plant Scheduling
Transportation and
Distribution Mgmt
High
© 2003 i2 Technologies, Inc. CONFIDENTIAL
Medium
Low
Paper
i2 Solution Fit – Process
with Planned Investment
Oil & Gas
Chemicals
Metals
Strategic Planning
Demand Planning
Demand Fulfillment
Supply Chain Planning
Plant Planning
Plant Scheduling
Transportation and
Distribution Mgmt
Soln. Investment
High
© 2003 i2 Technologies, Inc. CONFIDENTIAL
Medium
Low
Paper
Summary of i2’s Capabilities
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We understand the problem and the solution direction
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We have a strong solution base in SCM today and understand the
gaps
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We are committed to closing the gaps
“We [Shell and i2] are going to set the standard, bring
in new capabilities and ultimately change the way the
industry operates … this initiative has the potential to
generate new value and drive savings to the tune of
about $35 million a day [for the industry].”
Greg Lewin ,
VP Manufacturing, Supply and Distribution, Shell Europe Oil Products
“Setting the Standard’’, PLANET Las Vegas, May 2002
© 2003 i2 Technologies, Inc. CONFIDENTIAL