Jump to content

Perfect Delivery - order orchestration, adaptive logistics and trade compliance


Recommended Posts

  • Lead Admin
JP Doggett

Perfect Delivery - order orchestration, adaptive logistics and trade compliance
SupplyChainINTENT Virtual Boardroom Discussion 20/1/21
With Expert Input from Vikram Singla, Oracle

Discussion Summary

  1. Building blocks for digitally-enabled logistics platforms are:
    1. A dynamic operating model built around end-to-end processes rather than traditional silos
    2. Zero latency business processes with early event detection and rapid response
    3. Cloud-based infrastructure for continuous capability upgrades, integration / overlays of disparate systems and sensor data (packaged IT/OT)
    4. The ecosystem / value chain of partners and platforms
    5. Adapting skills and culture to new ways of working
    6. Becoming much more data-driven
  2. Perfect delivery can be unbundled into three key layers:
    1. Order orchestration: how to capture multiple order sources and have single view of supply so that tough decisions (e..g. which customers you are prepared to delay, which you must fulfil on time) can be optimised
    2. Adaptive transport & logistics: near real-time visibility on shipments, whether in-house or outsourced, and the impacts of disruption to ETAs
    3. Trade compliance and visibility: an area that is often overlooked as it’s not always easy to model the impact on the bottom line but should be key to determining which suppliers to work with and how
  3. Rather than try to replace what isn’t working, it’s often about putting a wrapper across these three areas. 

Key challenges discussed
 

  • Multiple applications and legacy systems within and between departments and partner entities in the supply chain: still some way to go but moving towards logistics technology platforms - analogous to app marketplaces for smartphones - where platform partners conform to common data standards and APIs which enable smoother exchange and integration of data;
  • Risks of betting on the ‘wrong’ technology: there is a reticence about going too far in one direction in case the industry standards move in a different direction resulting in premature obsolescence. A cloud-based approach reduces that risk by minimising sunk costs & switching costs whilst investing in integration of data as a foundation for future applications is very likely to be worthwhile;
  • Customisation investments: all participants recognised the substantial work that often goes into customising aspects of ERPs which can then impose substantial costs to replicate them when moving to newer versions if those capabilities have not been incorporated into the standard product. A platform or app-based technology ecosystem should enable more granular and continuous capability upgrades and opens opportunities for specialists to plug capability gaps, much as a marketplace of apps does.

Case studies and technology applications covered are available in the attached pdf with additional materials here:

https://www.oracle.com/scm/solutions/order-fulfillment/

https://www.oracle.com/product-navigator/?product=supply chain %26 manufacturing (scm):logistics

If you are interested in any of these areas and would like to discuss them further with your counterparts or subject matter experts, we’re very happy to put you in touch.
 

210114 Perfect Delivery Oracle Intent roundtable discussion v2.pdf

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Also...

    • Ed Lawson
      By Ed Lawson
      We're in the midst of the perfect storm for physical supply chain: constrained supply, disrupted routing, enhanced compliance, and global health risks. All of which have created price spikes, reneged contracts, and a flipping of control between shipper and importer. All importers are now re-examining strategy to see through the current turbulence, and to mitigate future risks. If agility means having options, and resilience means being able to mitigate risks to avoid crisis, then it can certainly make sense to reconsider international import logistics to seek visibility, alternative routing, a wider market of shippers, and even dual sourcing. 
      In this discussion we're joined by special guest Richard Fattal, co-Founder of Zencargo, to explore different views on the market, what can be done at strategic level in the medium to long term, and a look at the lasting impacts of this time. 
       AGENDA 
      Freight risks: where are the short and medium term threats? Planning mitigation strategy
      Reducing concentration of risk in your logistics value chain: how to go about this, and at what point? Visibility of goods in transit: unlocking better customer experience Agility: a current buzzword or the mantra fo future-proofing your logistics?  WHO FOR? 
      Industry sectors: current practitioners from all sectors
      Org. size (annual T/O): typically £50m+
      Roles & remits: Heads of: Supply Chain, Freight, Logistics, Transport with a role in designing and implementing analytics capabilities
       ABOUT INTENT DISCUSSIONS 
      All discussions are private, held under the Chatham House Rule and moderated by INTENT with approx. 6-8 participants for 45-90 mins of candid, interactive discussion (not a passive webinar) Some discussions include subject matter experts from member-recommended INTENT Partners, others are exchanges of best practice, experiences and ideas among practitioner members only Discussions are shaped by participants according to their interests and questions We may adjust participation to avoid competitive sensitivities and ensure productive discussion  WHEN? 
      Thursday 9th September (14.00 BST / 15.00 CEST) for max. 90 minutes
      Hosted by Ed Lawson, Director, Intent
      Expert guest: Richard Fattal, co-Founder, Zencargo
       
      REQUEST TO JOIN
      Request to join
       
    • JP Doggett
      By JP Doggett
      Although there continue to be many challenges in arriving at a robust plan in the first place, this discussion focused on how to close the gap with execution or, in other words, reduce time lag or latency of deviations from plan being predicted and detected to being successfully managed.
      Latency definition: how quickly can you predict something is going to happen? How quickly can it be filtered in the hierarchy? It’s fundamental to how the SC and finance are organised. Latency is a combination of data availability and process

       
      Latency -1 (predictive)
      Scenario planning is a key way to decrease latency and even predict demand.  Demand Sensing is another key part of the solution: in retail this can be social sensing. Social sensing gives you a picture what’s happening amongst consumers that is about to affect demand. In a manufacturing context this could be about introducing sensors to monitor real time consumption. Or in manufacturing, it can be about getting information on supply chain disruption, eg issues at the ports.  Latency +1 (responsive)
      The pandemic has pushed businesses towards short term decision making. But it’s the mid term (S&OP) monthly horizon will influence the profitability. Translating from demand forecast to ordering requires a reduction or elimination of silos. Latency is most often caused by layers of hierarchy. Siloed decision making is a very common challenge. Large businesses are often regionally siloed too - hence the recognition of need for a centralised decision making unit. 
      Be aware that the flip side of empowerment can be regionally made decisions that affect other parts of the global business.
      Latency challenges/causes
      Slower decision making is exacerbated when finance does not trust the IBP number as much as its own financial forecast. There is a growing convergence of finance into supply chain; often the CFO is the ‘co-pilot’ to the CEO. 
      Suggested approaches to IBP and reducing latency
      A ‘whole organisation’ approach: IBP cannot just be a supply chain project - it must be integral and understood by all functions. The more senior the sponsorship, the better the chance of success.  It’s important to maintain your customer promise: supply chain is therefore a part of that. Having a centre of excellence can be a good way to tie it all in. The COE should be made up of people outside of operational roles in order to be truly effective.  Adopting a design thinking approach to customer lifecycle management is a useful approach - this can help other functions better understand the value of supply chain in the context of the customer promise.  Cloud technology reduces latency by having fewer technology anachronisms - applications are up to date, and are automatically maintained. This reduces lag.  IBP requires a business case. To do this, it can be valuable to look at what will happen if nothing is done, what are the costs to inaction.  Do not overfocus on a single instance platform across a large organization. There can be multiple clouds, and technology can interface. Organisational structure & people emerging best practices
      Of course, technology is not the only lever available for closing the planning - execution gap: organisation structure and process design can either hinder or help the flow of critical information and the capability for prompt, informed decisions to be taken.
      High performing organisations often demonstrate a non-siloed structure whereby, instead of a traditional SCOR-based model, the focus is on end-to-end processes like IBP, O2C and increasingly omnichannel and process owners who are responsible for holistic optimisation. Critical areas for best-in-class cross-functional alignment include product / service innovation, fulfilment & aftercare and planning. Increasingly these teams have business partners who, for example, have both a deep, systematic understanding of supply chain operations and financial control to bridge those potential silos. These are often supported by Centres of Excellence, particularly for analytics which major on optimising segmentation, cost-to-serve and customer behaviour. For planners in particular, it pays dividends not to confuse planning and execution and recognise that scheduling is not the same as planning as the latter requires particular skill sets around cross-functional communication in particular. Planners are likely to be more effective if they think and talk like business owners in terms of customer experience and profitability rather than a narrow focus on, for example, improving OTIF scores by a couple of points. 210414 IBPX Oracle Intent roundtable v1 (1).pdf
  • Next discussions

×
×
  • Create New...