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APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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Page 1: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 2: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & 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

Page 3: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 4: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 5: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 6: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 7: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 8: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 9: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 10: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 11: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 12: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 13: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 14: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 15: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 16: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 17: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 18: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 19: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 20: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 21: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 22: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 23: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 24: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 25: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 26: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 27: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 28: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 29: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 30: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 31: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 32: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 33: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 34: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 35: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 36: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 37: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 38: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 39: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 40: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 41: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 42: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 43: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 44: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 45: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 46: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 47: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 48: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 49: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 50: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 51: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 52: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 53: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 54: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 55: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 56: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 57: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 58: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 59: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 60: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

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

Page 61: APICS PDM Big Data in Supply Chains Uses & Challenges€¦ · APICS PDM Big Data in Supply Chains Uses & Challenges cliff allen

Big Data is easy Questions