how to get real value from real-time logistics data

How to Get Real Value fromReal-Time Logistics Data

Supply Chain Visibility Webinar

Matthew BarnesRegional Director, Integration & Analytics

Dr. Jürgen KrämerVP, CEP & Analytics

3 December 2012

Today’s session

2012 Supply Chain Management Webinar Series 2

Your customers expect reliable, on-time and in-full delivery of your products and services. See

how you can meet their expectations consistently with real-time, end-to-end visibility into

your supply chain. Attend our one-hour webinar to learn how to:

• Gain full visibility and control of your logistic operations by using real-time event monitoring

across your extended supply chain

• Reduce risks, maximize efficiency and increase agility of your order-to-delivery process by

using actionable intelligence and analytics

See how other companies are getting real value—including savings and more satisfied

customers—by using real-time logistics data. Gain insights from their order-to-delivery best

practices. Discover how instant access to meaningful event data when it matters most makes

your business more responsive and customer-focused.

Matthew BarnesRegional Director,

Integration & Analytics

Dr. Jürgen KrämerVice President,CEP & Analytics

One Recipe For SuccessSupply Chain Companies’ #1 Priority: Customer Satisfaction

Integration

Visibility

Focus &Simplification

32012 Supply Chain Management Webinar Series

� Business activities or transactions failing or taking too long

� Not understanding why this is happening

� Not getting automatically notified of problems

� Wasting time searching multiple reports for the relevant data nuggets

� No way to predict potential issues or opportunities

� No way to PRO-ACTIVELY do the right thing

What keeps a Business User up at night?


The Value of End-to-End VisibilityComplex business processes are supported by multiple, disconnected systems…

TMSERP WMSCRMB2B

A

B

C

D

J

E

F

G

H

Multiple systems with multiple stress points…

I


End-to-end visibility definedFrom rear view to prediction

Understand the past

Analyze events and predict the future

Know what’s happening now

Order Clerk Warehouse Logistics A/R

7

CustomerNeed

Time

Create Sales Order

CreateDelivery

ShipGoods

PostInvoice

DeliveryNote

GoodsIssue

InvoiceSalesOrder

Automated Process Discovery

Extractor

Order-to-Cash

ERP,BPMS, …

Metrics

AutomatedProcess

Discovery

Root-cause

analysis

� Amount

� Times

� Costs

� Quality

� Risks

� Organizational performance

� Compliance

� Customer satisfaction

8

See what’sgoing on

‘in the middle’=

Realprocessbehavior

From indicators to root causes


Analytics: Trends - Distribution – Dependencies


Instrumenting your supply chain processes at key action points

Valu

e

Business event

Data captured

Action taken

Intelligence delivered

Time

Reference: Richard Hackathorn – The BI Watch: Real Time to Real Value

iKnow

Opportunity

• Order arrives from customer• Customer orders back-ordered /

out of stock product• Truck at loading dock Missed Opportunity

• Order stuck on credit hold• Customer cancels order

• Truck has left the dock

KNOW What Impacts Order VelocityOrder Monitoring

Proactively alert on the following conditions:• Credit Block• Delivery Block• Delivery N/A• Incorrect SKU• Missing Quantity• Incomplete Order


KNOW About Problems Before Your Customer DoesProcess Assurance: Advance Ship Notification


• Extends to real time monitoring of ASN Acknowledgements

• Allows Production Support to Proactively contact the customer

KNOW the Impact On Your CustomerCustomer Order Backlog



Useful Links: Previous Webinars and Collateral

iKnow: Know About Problems Before Your Customers Do

http://www.softwareag.com/corporate/rc/rc_perma.asp?id=tcm:16-104185

Supply Chain Visibility - Our Offer to You: Your World in 22 Minutes


Improve Business Performance with Process Intelligence


2-Minute iKnow Video on YouTube

Real-Time Logistics

Providing Real-Time Visibility to Assets

16

GPS/GPRS tags• Determines position via GPS• Sends data back via device type

and configuration• Monitors environment (e.g.

temperature)

Real-time information hub• Collects event data from all tags• Business logic for event processing• Actions, alerts in case of exceptions• Populates event data to concerned

business services

Usage Scenarios• Visibility• Visualization• Asset management

• Exception management• Theft prevention• Quality of Service (QoS) monitoring• Business activity monitoring


Better Event Management can become a Competitive Advantage

17

Warehouse

ComponentDistributor

PartManufacturer

Final AssemblyeCommerce Site

Retailer

Consumer

Delivery

Product

Delivery

Order

Shipment

Product

Product

Warehouse item

Invoicedelivered

Source material

Componentordered

Stockdecremented

Itempicked

Advancedshippingnotice

Palletloaded

Routecreated

Customscleared

StockinboundOrder

item

Ordercreated

Delivery signed

In transit Intransit

A multitude of events across the ecosystem need to detected, integrated and processed A multitude of events across the ecosystem need to detected, integrated and processed in order to enable an instantly responsive and proactive enterprise.


Event Streams

GPS GPSGPSGPSGPSGPSGPSGPSGPS

Stream of position reports from a truck

Stream of orders from a customer

Order OrderOrderOrderOrderOrderOrderOrderOrder

Value ValueValueValueValueValueValueValueValue

Stream of sensor readings from warehouse


Shipment Tracking / Geo-Fencing

Planned route

New route

Ship will arrive later

What would you do, if you knew that…

4:03 a.m.

4:12 a.m.


Increase in Data Velocity





Value ValueValueValueValueValueValueValueValueStream of sensor readings from a warehouse


Stream of sensor readings from ALL warehouses

Increase of Data Volumes


Stream of position reports from ALL trucks and ships

Stream of ALL orders





Stream of sensor readings from a warehouse


Need for Real-Time Analytics




�Newest data is more relevant!

�Database becomes bottleneck!


Options

Time

Business

Event

Action

Taken

Action Time

Problemor

Opportunity

Costs

FasterReaction

ProactiveAction

Business Value of Faster Actions


In-Memory, In-Flight Analytics




Complex Event Processing (CEP)

Result

Result

Result

e.g. Filtering, Aggregation

e.g. Time windows

e.g. Correlation

Complex Event Processing (CEP)

Definition: Continuous analytics to derive meaningful business events from different event streams or other event sources like databases in real-time to gain situation awareness and trigger immediate actions.

� Event-driven, incremental processing

� High efficiency and scalability

� Enrich events with context data

� Detect patterns with time/locationparameters


Real-Time Solutions for Smarter Logistics – Live Demo


Real-Time Solutions for Smarter Logistics

Description

Fleet & Operation Management Tracking fleet and cargo locations and meeting

SLAs.

Challenges

• Overwhelming events (from warehouse, vehicle

management & RFID systems, GPS devices, and

environmental sensors)

• No actionable insights to effectively manage resources

• None optimal capacity usage

Benefits of webMethods

Business Events

• Instant detection of route deviations and updates to

estimated time of arrivals (ETA)

• Meet customer SLAs & arm them with info to make

contingency plans

• More effectively direct material, trucks, people, etc. to

places where required


Business Impact of CEP

� Improves the quality of decision making by presenting information

that would otherwise be overlooked.

� Enables faster response to threats and opportunities.

� Helps shield business people from data overload by implementing a

management-by exception policy.

� Reduces the cost of manually processing the growing volume of event

data in business.

Source: Gartner Inc.: W. Roy Schulte; Zarko Sumic: „Hype Cycle for Data Management”, 2011.

CEP is one of the pillars of the emerging "big data" movement.

Gartner Hype Cycle for Data Management 2011


My business operations

Intelligent Business Operations (IBO)

Decision processEvent

managementto enhance situation

awareness

Decision management

to make faster and better decisions

BPM flow management

to coordinate more-flexible processes

Observe, orient Decide Act

A C D

Other departments, customers, partnersand the environment

Source: W. Roy Schulte: Apply Three Disciplines to Make Business Operations More Intelligent, Gartner Inc., March 2012


BusinessProcessManagement

Intelligent Business Operations (Next Best Action)

Event Bus

webMethods Business Events

CEPEngine

Pattern detection Real-time dashboards

Rules Engine

webMethods Business Rules

� Process actions� Task actions� Service actions

Context-based decisions

Businessevents

Simpleevents

Actionableevents

Logging &notification events

1) Situational Awareness 2) Immediate Actions

ProactiveBusiness Process

Management


Big Data

Big Data Poses Big Challenges

VARIETY

Mobile

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10111001001

Kiosks

Web

Sensors

VideoTelemetry

Files

Email

Social Media

Big Data


Classical Data Management Architecture

• Operational and analytical

environments are separated

• Mainly based on structured data

• Data exchange and

transformation with latency

• Different ways end-user

interacts with data OLTP

DBMS

Applications

Data

Warehouse

Business

Analytics

ETL


Performance Intelligence

Real-time Data Management Goals

Applications Analytics

Transactional Data Analytic Data

How can business

be smarter?

What is happening

now?

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•Too slow•Does not scale


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In-Memory Data Management for the Real-time Business

Performance Intelligence

Applications

Transactional Data Analytic Data

Analytics

Real-time Analytics

In-Memory Data

ETLETL

On-Demand,Retrospective

Analytics

Operational Intelligence

How can business be smarter?�Automated

Decisions�Faster Actions

What is happening now?�Situation

Awareness�Real-time

Dashboards


Next Generation Data Management

OLTP

DBMSData

Warehouse

Mobile- and

Web-Scale

Applications

Business

Analytics• Reporting

• OLAP

• Data Mining

New Analytics• Social Media

• Big Data

• Real-time dashboards

Cloud

In-Memory

In-Memory Data Management Platformcombining transactional, analytical, and Big Data to enable the

real-time enterprise for better business outcomes.

Data Store Event ProcessingLL Messaging

Big Data

HadoopInternet of ThingsSocial computing


Summary

How can Software AG help you?


Goal

Compress Time to Action

Respond Faster Reduce RiskReduce Cost

Increase Customer Satisfaction

Business

Processes

Events Operations

ITOperationsConnect

Information


More to Explore

On-Demand Webinars

iKnow: Know About Problems Before Your Customers Do


Supply Chain Visibility - Our Offer to You:Your World in 22 Minutes


Improve Business Performance with Process Intelligence


Live Online Demo

Experience what Real-Time Logistics can do for you!http://www.mashzone.com/en/Gallery/179612.html

More Info?

In case you’d like to

discuss the contents of

this webinar in more

detail, have specific

questions or would like to

follow up with a local

sales representative,

please send an email to:

[email protected]

Or go to our website to

find your nearest

Software AG office:

www.softwareag.com

www.softwareag.com/pi 392012 Supply Chain Management Webinar Series

how to get real value from real-time logistics data

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