apics pdm big data in supply chains uses & challenges€¦ · apics pdm big data in supply...
TRANSCRIPT
APICS PDM Big Data in Supply Chains
Uses amp Challenges
cliff allen
Agenda Big Data amp SCM
bull What is Big Data and how does it relate to SCM
bull Using Data on ldquothe edgesrdquo (NPI amp Fulfillment)
bull The role of forecasting is it changing S amp OP
bull The sweet spot Reverse Logistics
bull Omni-channel amp SCM
bull Displaying meaningful results communication
bull Encryption Safety
bull Moving forward
bull Q amp A
Traditional ERP vs Big Data
bull ERP is not going awayhelliphelliphowever
bull Emerging are The Edges
ndash Channels
ndash Social media
ndash RFID
ndash PoS
ndash GPS
ndash Blueprint data
copy Deloitte amp Touche LLP and affiliated entities Digital Convergence
of small businesses now get at
least one quarter of new
customers via social media
of young people refer to social media to
decide where to go when they go out
of Americans check their social
networks several times a day
of Americans check brand pages
regularly as part of their social media
activity
of time spent online is for
social media
bull If Facebook were a country it would
be the worldrsquos 2nd largest - 13B
bull Percent of 18-34 year olds who check
Facebook when they wake up - 48
bull Social Media has overtaken adult
content as the 1 activity on the web
bull 1 out of 8 couples married in the US
last year met via social media
78
61
27
35
27
Digital engagement is the future
Digital Convergence
Big Data How Much
bull Google processes 20K TB a day
bull Facebook has 25 PB of user data + 15 TBday
bull eBay has 65 PB of user data + 50 TBday
bull NSA touches 29K TB a day
1000 gigabytes = 1 Terabyte
1000 Terabytes = 1 Petabyte
A critical mass of new technologies and consumer and client demand is ushering in a new era of computing and with it the
ldquoPost Digital Agerdquo
6 Billion People worldwide have
access to a mobile phone
The number of mobile-
connected devices
exceeded the wordrsquos
population in 2012
1
2
3
4
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in months
bull Bridging gaps between IT and business
bull Accelerated adoption
bull Projects measured
in weeks
bull IT and business
collaboration
bull Accelerated
adoption
Mainframe
ClientServer
Web
Digital
7
Complexity of data
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Agenda Big Data amp SCM
bull What is Big Data and how does it relate to SCM
bull Using Data on ldquothe edgesrdquo (NPI amp Fulfillment)
bull The role of forecasting is it changing S amp OP
bull The sweet spot Reverse Logistics
bull Omni-channel amp SCM
bull Displaying meaningful results communication
bull Encryption Safety
bull Moving forward
bull Q amp A
Traditional ERP vs Big Data
bull ERP is not going awayhelliphelliphowever
bull Emerging are The Edges
ndash Channels
ndash Social media
ndash RFID
ndash PoS
ndash GPS
ndash Blueprint data
copy Deloitte amp Touche LLP and affiliated entities Digital Convergence
of small businesses now get at
least one quarter of new
customers via social media
of young people refer to social media to
decide where to go when they go out
of Americans check their social
networks several times a day
of Americans check brand pages
regularly as part of their social media
activity
of time spent online is for
social media
bull If Facebook were a country it would
be the worldrsquos 2nd largest - 13B
bull Percent of 18-34 year olds who check
Facebook when they wake up - 48
bull Social Media has overtaken adult
content as the 1 activity on the web
bull 1 out of 8 couples married in the US
last year met via social media
78
61
27
35
27
Digital engagement is the future
Digital Convergence
Big Data How Much
bull Google processes 20K TB a day
bull Facebook has 25 PB of user data + 15 TBday
bull eBay has 65 PB of user data + 50 TBday
bull NSA touches 29K TB a day
1000 gigabytes = 1 Terabyte
1000 Terabytes = 1 Petabyte
A critical mass of new technologies and consumer and client demand is ushering in a new era of computing and with it the
ldquoPost Digital Agerdquo
6 Billion People worldwide have
access to a mobile phone
The number of mobile-
connected devices
exceeded the wordrsquos
population in 2012
1
2
3
4
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in months
bull Bridging gaps between IT and business
bull Accelerated adoption
bull Projects measured
in weeks
bull IT and business
collaboration
bull Accelerated
adoption
Mainframe
ClientServer
Web
Digital
7
Complexity of data
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Traditional ERP vs Big Data
bull ERP is not going awayhelliphelliphowever
bull Emerging are The Edges
ndash Channels
ndash Social media
ndash RFID
ndash PoS
ndash GPS
ndash Blueprint data
copy Deloitte amp Touche LLP and affiliated entities Digital Convergence
of small businesses now get at
least one quarter of new
customers via social media
of young people refer to social media to
decide where to go when they go out
of Americans check their social
networks several times a day
of Americans check brand pages
regularly as part of their social media
activity
of time spent online is for
social media
bull If Facebook were a country it would
be the worldrsquos 2nd largest - 13B
bull Percent of 18-34 year olds who check
Facebook when they wake up - 48
bull Social Media has overtaken adult
content as the 1 activity on the web
bull 1 out of 8 couples married in the US
last year met via social media
78
61
27
35
27
Digital engagement is the future
Digital Convergence
Big Data How Much
bull Google processes 20K TB a day
bull Facebook has 25 PB of user data + 15 TBday
bull eBay has 65 PB of user data + 50 TBday
bull NSA touches 29K TB a day
1000 gigabytes = 1 Terabyte
1000 Terabytes = 1 Petabyte
A critical mass of new technologies and consumer and client demand is ushering in a new era of computing and with it the
ldquoPost Digital Agerdquo
6 Billion People worldwide have
access to a mobile phone
The number of mobile-
connected devices
exceeded the wordrsquos
population in 2012
1
2
3
4
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in months
bull Bridging gaps between IT and business
bull Accelerated adoption
bull Projects measured
in weeks
bull IT and business
collaboration
bull Accelerated
adoption
Mainframe
ClientServer
Web
Digital
7
Complexity of data
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
copy Deloitte amp Touche LLP and affiliated entities Digital Convergence
of small businesses now get at
least one quarter of new
customers via social media
of young people refer to social media to
decide where to go when they go out
of Americans check their social
networks several times a day
of Americans check brand pages
regularly as part of their social media
activity
of time spent online is for
social media
bull If Facebook were a country it would
be the worldrsquos 2nd largest - 13B
bull Percent of 18-34 year olds who check
Facebook when they wake up - 48
bull Social Media has overtaken adult
content as the 1 activity on the web
bull 1 out of 8 couples married in the US
last year met via social media
78
61
27
35
27
Digital engagement is the future
Digital Convergence
Big Data How Much
bull Google processes 20K TB a day
bull Facebook has 25 PB of user data + 15 TBday
bull eBay has 65 PB of user data + 50 TBday
bull NSA touches 29K TB a day
1000 gigabytes = 1 Terabyte
1000 Terabytes = 1 Petabyte
A critical mass of new technologies and consumer and client demand is ushering in a new era of computing and with it the
ldquoPost Digital Agerdquo
6 Billion People worldwide have
access to a mobile phone
The number of mobile-
connected devices
exceeded the wordrsquos
population in 2012
1
2
3
4
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in months
bull Bridging gaps between IT and business
bull Accelerated adoption
bull Projects measured
in weeks
bull IT and business
collaboration
bull Accelerated
adoption
Mainframe
ClientServer
Web
Digital
7
Complexity of data
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data How Much
bull Google processes 20K TB a day
bull Facebook has 25 PB of user data + 15 TBday
bull eBay has 65 PB of user data + 50 TBday
bull NSA touches 29K TB a day
1000 gigabytes = 1 Terabyte
1000 Terabytes = 1 Petabyte
A critical mass of new technologies and consumer and client demand is ushering in a new era of computing and with it the
ldquoPost Digital Agerdquo
6 Billion People worldwide have
access to a mobile phone
The number of mobile-
connected devices
exceeded the wordrsquos
population in 2012
1
2
3
4
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in months
bull Bridging gaps between IT and business
bull Accelerated adoption
bull Projects measured
in weeks
bull IT and business
collaboration
bull Accelerated
adoption
Mainframe
ClientServer
Web
Digital
7
Complexity of data
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
A critical mass of new technologies and consumer and client demand is ushering in a new era of computing and with it the
ldquoPost Digital Agerdquo
6 Billion People worldwide have
access to a mobile phone
The number of mobile-
connected devices
exceeded the wordrsquos
population in 2012
1
2
3
4
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in years
bull Vast divide between IT and business
bull Long adoption curves
bull Projects measured in months
bull Bridging gaps between IT and business
bull Accelerated adoption
bull Projects measured
in weeks
bull IT and business
collaboration
bull Accelerated
adoption
Mainframe
ClientServer
Web
Digital
7
Complexity of data
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Complexity of data
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Internet of Things
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Internet of Things Marketing amp SCM
bull Internet of things brings real-time data via scanners and sensors to the channels and suppliers
bull Creates real time Point of sales data
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Making analytics relevant to the heart of clientsrsquo business with Analytics domains
Finance
Analytics
Risk
Analytics
Workforce
Analytics
Supply Chain
Analytics
Customer
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them grow
them and
keep them
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforce-
related
challenges
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supply-
chain function
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data ndash Why Supply Chain bull INCREASE CUSTOMER ENGAGEMENTmdashlost market share
bull IMPROVE PRODUCTSERVICE QUALITYmdashToyota
bull OPTIMIZE OPERATIONAL EFFICIENCIESmdashSW Airlines
bull PROVIDE FASTER TIME ndashTO-MARKET POTENTIAL FOR GREATER REVENUE RECOGNITIONmdashApple amp Samsung lead in APP market
bull SENSE SMALL EVENTS TRIGGERS POINTS (BEFORE THEY BECOME BIG IMPACTS PROBLEMSPROXIES)mdashNokiaBlackberry since 2008
bull IMPROVE RISK MANAGEMENTmdashCost of BP oil spill
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
APICS Big Data Survey2012 Supply Chain Inventory Levels Competitive Trends Actual Product Usage Forecastingplanning scheduling ActualReal Time Demand
68
34
37
79
60
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Prescriptive Analytics
bull The emerging technology of prescriptive analytics goes beyond descriptive and predictive models by recommending one or more courses of action -- and showing the likely outcome of each decision
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data ndash The Mystery bull Questions for executives
bull What happens in a world of data transparency bull If you could test all decisions would you be more
competitive bull How would your business change with real-time data bull Can data replace some management
bull Are Amazon Alibaba amp Zulily Marketing or Supply Chain
Companies
bull Is Data security is an growing concern when increasing trends for complex gathering and harnessing of data are exploding
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data ndash Game changers
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data - Amazon
bull Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it mdash and shipping products in their general direction or even right to their door before the sales click
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Supply Chain
Game Changing Technologies
RFID amp PoS Data
bull Real time consumption
bull Shelves become the inventory manger
bull Too much inventory can push ldquodealsrdquo out to users while shopping via GPS
bull Merchandising and product location
bull Users include Office Max amp Best Buy
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Supply Chain
Customer Analytics Blueprints
bull Customer Profile 360-degree view of the customer
bull Micro-segmentation Create segments of one
bull Next Action Predict and Influence customer decisions
bull Loyalty Programs Keep customers by using data applied to particular segmentation
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Supply Chain
Eyesee The eye recognition cameras
bull Eyesee $5100 Mannequin uses IBM Cognos software
ndash collects data from patrons mdash logging things like age gender and ethnicity
ndash recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequinrsquos attire
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Eyesee The eye recognition cameras
bull Calo (2009) People can be so fake Truth in privacy overcomes truth in observed situations
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Supply Chain
Customer Analytics Blueprints
bull In store cameras with consumer behavior
bull Walmart Shopperception
ndash Avg Visit duration
ndash of vistors thru Transit Zones
ndash Touches per product Pick-ups
ndash Return to shelf
ndash Conversion Touches and not returned
ndash Heat maps color coded
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
7x24 shelf analysis with multiple and
simultaneous people tracking
bull Traffic Flow analysis based on
zonestime
bull Heat Maps of conversion rates for each
SKU
bull Hot activity zones in shelf
More Shopper insights
bull Multiple events on the shelf
bull Entrance bounce paths
bull Average times in zones
bull Product traction analysis
bull Real comparative shelf layout
performance
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Omni-Channel changing everything
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Omni channel is here to stayhellip
- Make Up For Ever ndash The cosmetics company put iPads in some of its stores to let shoppers browse products and virtually try various make-up combinations by uploading their own photos
- Loyalty cards are on their way out and will be replaced by customized rewards that incorporate social information shopping behavior and more
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Near Real-time Data amp Dashboards
Identifies Actual amp Predictive OOS amp Overstock Issues At SKU Store Level
Enables Root Cause Analysis
Actionable Tasks Prioritized By Profitability
Drive Sales amp Execution ‒ New Product Introductions
‒ Closing Distribution Voids
‒ Promotion Execution amp Effectiveness
‒ Store Merchandising amp Replenishment
‒ Order amp Shipment Forecasts
‒ Retail Pricing Compliance
PepsiCo Believes In The Power Of Data amp Analytics To Drive Supply Chain
P
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data - Visualization
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data - Visualization
-Visual Analytics methods allow decision makers to combine their human flexibility creativity and background knowledge to gain insight into complex problems
-Example
- To predict demand Amway China applied SAS time series forecasting to data from 70 million orders placed over the past three years improving delivery and inventory by +20
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Utilizing Big data to discover and explain
Is not as easy as you might thinkhellip
ndash Poor and sparse samples surrogates biashellip
ndash As number of dimensions increases it becomes increasingly difficult to add in any data point without giving rise to some kind of statistically significant lsquopatternrsquo or lsquoclusterrsquo
ndash And parametric distributions become unreliable
ndash It is very difficult to discover useful things that are unknown by experts
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Utilizing Big data to discover and explain
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Data Visualization
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Once Visualized The sweet spots for Big
Data amp SCM S amp OP
Reverse Logistics and Sustainability
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
The Role of Forecasting bull Forecasting is a vital function and impacts every significant
management decisionhellip And is always inaccurate
bull Finance and accounting use forecasts as the basis for budgeting and cost control
bull Marketing relies on forecasts to make key decisions such as new product planning and personnel compensation
bull Production uses forecasts to select suppliers determine capacity requirements and to drive decisions about purchasing staffing and inventory
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Sales amp Operations Planning
bull Is an executive decision-making process
bull Balances demand and supply
bull Deals with volume in both units and $$$ at aggregate level
bull Ties operational plans to financial plans one set of numbers
bull Is the forum for setting relevant strategy and policy
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
From APICs ndash Deep Analytics
Analytics-based reporting tells the SampOP planning teams
The data and the application of analytics is at the heart of SampOP
Where they are (Current state of the business)
What actions need to be taken and driven down into tactical and operations SampOP processes
What results and trends are emerging from their decisions
What corrective steps do the SampOP planning teams which to take
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Sales amp Operations Planning (Can be real-time
With Analytics)
Master
Scheduling
Detailed Planning amp Scheduling
C A P A C I T Y
P L A N N I N G
F O R E C A S T I N G
amp
D E M A N D
Business Planning
High Level Enterprise Resource Planning Model
Annually
Bi-Monthly
Weekly
Daily
Strategic Planning
2-10 Years
Forecast Only
Forecast Only
Forecast PoS real
time
Forecast amp Orders
Orders Only
Rough-cut Capacity Planning
Capacity Requirements Planning
Resource Planning
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
The monthly sales and operations planning process amp Collaborative Planning forecasting amp replenishment with Big Data
End of month
STEP 1 Data
Gathering
STEP 5 Exec SampOP
Meeting
STEP 4 Pre-SampOP Meeting
STEP 3 Supply
Planning
STEP 2 Demand Planning
Statistical forecasts Field sales worksheet
Management forecast 1-st pass spreadsheets
Capacity constraints 2-nd pass spreadsheet
Recommendations For executive SampOP
Decisions
Wallace 2nd edition Sales amp Operations Planning
First real time data check
Second real time Data Check
With Analytics amp CPFR this is real time cutting 1 week or more in POS data
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Data and S ampOP
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data ndash CLSC amp Reverse Logistics
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Utilizing Big data Improve CLSC Supply Chains
bull Supply Chains and Marketing converge with improved POS velocity with RFID reduction of lead-times with ldquomake-gtsellrdquo compression of data amp inclusion of ldquosell-gt returnrdquo
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Reverse Logistics Hi Tech Trash bull Two Million tons of e-waste goes to landfills each year
bull 163K PCs amp TVs become obsolete every year
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
bull Eight categories of reverse flows 1 Products that have failed are unwanted damaged or defective but can be
repaired or remanufactured and resold
2 Products that are unsold from retailers usually referred to as overstocks that have resale value
3 Products being recalled due to a safety or quality defect that may be repaired or salvaged
4 Products needing ldquopull and replacerdquo repair before being put back
5 in service
6 Products that can be recycled such as pallets containers computer inkjet cartridges etc
7 Products that are old obsolete or near the end of their shelf life but still have some value for salvage or resale
8 Products or parts that can be remanufactured and resold
9 Scrap metal that can be recovered and used as a raw material for further manufacturing
No V A L U E A D D
VALUE A D D
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Reuse can cycle quickly but what about the others With Analytics
prescrpitive works for all 3
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
A business process approach bull Product acquisition is a major driver of success bull Creating effective remarketing channels is another
major driver bull Research emphasis has largely been on reverse
logistics disassembly and remanufacturing operations not acquisition timing This is where Prescriptive analytics takes place
bull Product returns represent a value stream not just a waste stream
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Time-sensitive product return streams
bull Short life-cycles high obsolescence risk
bull Returned products losing value rapidly
bull ldquoValue of timerdquo a key prescripter
ndash Examples
bull PCs
bull Printers and Computer Peripherals
bull Mobile Phones
bull Telecommunications Equipment
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Product Acquisition
bull The collection of used products potentially accounts for a significant part of the total cost which can be compared with the last mile issue in distribution of products in the forward supply chain
bull The collection may occur by door to door through service center through sales center and sometimes by customers
bull Answer Proximity and ease of access for customers amp timely returns based on prescriptive analytics
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
bull Sorting Purification Compounding
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Analytics in non-traditional supply chain markets
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Advanced Technology amp Hospitals
ndash Doctor data tracking has helped reduce the average stay for adult inpatients from 42 days in 2011 to four days in 2012
ndash Such efforts also have reduced the average cost per admitted patient by $280 which saved the health system a total of $138 million from 2011 to 2012
bull Lean beyond shop floor
bull Current State data
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Advanced Technology
bull Process
ndash Surgical Supplies Pick amp Return
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Advanced Technology
bull Success ndash Eliminated 12000
supply errors
ndash Saved 600 hours of
OR time
ndash Reduced inventory by
15
ndash Real-time
Performance
Reporting
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Usage Benefits and Success of BA The data Scientist and business exec cannot communicate
Why BIBA projects fail
1 Failure to recognize BI projects as cross-organizational business initiatives and to understand that as such they differ from typical standalone solutions
2 Unengaged or weak business sponsors
3 Unavailable or unwilling business representatives from the functional areas
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Usage Benefits and Success of BA
Why BIBA projects fail
4 Lack of skilled (or available) staff or suboptimal staff utilization
5 No software release concept (ie no iterative development method)
6 No work breakdown structure (ie no methodology)
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Usage Benefits and Success of BA
Why BIBA projects fail
7 No business analysis or standardization activities
8 No appreciation of the negative impact of ldquodirty datardquo on business profitability
9 No understanding of the necessity for and the use of metadata
10Too much reliance on disparate methods and tools
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Is Our Security Keeping Pace
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Is Our Security Keeping Pace
Are We Headed Towards ldquoImpossible Privacyrdquo
Another Case Google
bullGoogle has every single email you ever sent using Gmail They have it stored indexed and they have
built models of your behavior
bullYahoo and Facebook have been doing similar things
How secure do you feel
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Is Our Security Keeping Pace The ldquoCloudrdquo The Risks
ldquoThe internet of thingsrdquo
bullInternet security breaches happen often bullIf the server goes down your devices canrsquot access data (Both Amazon and Gmail have gone dark) bullLack of access if you have no Internet access bullIf a hacker gets your password you may be locked out of all your devices
Your security is only as good as the weakest link in the chain
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data Is Our Security Keeping Pace
In December amp January Target reports another hack for 110 million records
Was this done by a global cybercrime group or an individual
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data SCM Jobs
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Careers in Analytics
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
PORTLAND STATE UNIVERSITY
Supply Chain amp Your Career
bull Vice PresidentGeneral Manager $175260
bull Corporate Division Manager $142000
bull Supply Chain DirectorManager $114275
bull Logistics DirectorManager $109760
bull Business Analyst Data Analyst $101000
bull Operations Manager $98235
bull PurchasingProcurement DirectorManager $85070
bull Traffic Manager $69480
bull Warehouse DirectorManager $84730
bull CoordinatorAnalyst $67000
Data from Logistics Management 30th Annual Salary Survey released April 2014 Salary potential may vary depending on
location experience and education
What type of salary can you expect from supply chain positions
Big Data is easy Questions
Big Data is easy Questions