Digital Supply Network Webinar - Deloitte
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AUGUST 25, 2020 Digital Supply Network Webinar Integration is key to resilience of Supply Chain
2 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
WELCOME
Kavitha Prag
Supply Chain and Network Operating Lead
within Enterprise Technology & Performance
Kavitha Prag is the Supply Chain and Network Operating Lead within Enterprise
Technology & Performance. Primarily focussing on Digital Procurement, Supply
Chain Management and Smart Operations. Kavitha is passionate about facilities
and project management optimisation and delivering new technology solutions
within the infrastructure construction and maintenance environment.
Kavitha has a strong foundation in electrical engineering and in technical
management. Kavitha’s expertise is underpinned by operational experience in
both the public and private sectors, across multiple industries including Energy,
Utilities, Mining, Technology and Media industries.
3 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Contents
1 Welcome 6 Third Party Risk
Kavitha Prag Nombulelo Kambule
2 Keynote Address 7 Virtual Panel Discussion
Faan du Toit Kavitha Prag
3 Supply Chain Resilience 8 Closing Remarks
Zak von Gordon Kavitha Prag
4 Integrated Planning
Margaret Loo
5 Control Tower
Kevin Overdulve
4 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Keynote Address Faan du Toit – Head of Procurement & Planning, Distell
Faan is an experienced and proven business leader with over 20 years of
FMCG experience with BAT, ABInbev and Distell. He’s held Senior
management roles in Supply chain, Planning and Procurement. Faan is
passionate about creating a high-performance culture and seeing teams
flourish and grow!
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Distell Is Transitioning to Digital Networks
SUPPLY CHAIN RESILIENCE
Traditional Supply Chain Digital Supply Network
Synchronized
The future value chain need to sustain the value proposition by adopting a digital Planning
approach to visualise and track progress with transparency on interdependencies
(planning) and external influences (risks), automating external inputs to
scenario planning to sense and act potential negative impacts to the financials
(revenue, cost, cash flow working capital). Dynamic Connected
Fulfillment Customer
Develop Plan Source Make Deliver Support
Digital Factory of
Development the Future
7 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Intelligent
Supply
We’re
WE’RE takingAaSCABABLE
TAKING Scalable Approach
APPROACH toTO
Value
VALUE
THINK BIG START SMALL SCALE FAST
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EXPECTED BENEFITS
We will create co-ordination and visibility across
operations and allow for more strategic involvement
by decreasing inefficiencies.
MINIMIZE ADMIN AND
FOCUS ON VALUE ADDS
MOVE TO PAPERLESS
ENHANCED ANALYTICS
9 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Next Steps for Distell
TECHNOLOGY
STABILIZATION
(ROA &
INTEGRATED INTERNATIONAL)
BUSINESS
PLANNING >2021
IMPLEMENT
AND STABILISE
COUPA (SA) 2021
FUTURE STATE
DESIGN
2020
2019
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1Poll 11 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Supply Chain Resilience Zak von Gordon – Associate Director, Deloitte Africa, Supply Chain
SUPPLY CHAIN RESILIENCE
Zak von Gordon
Supply Chain Transformations
Zak is an Associate Director in Deloitte Consulting supporting Supply Chain
transformations with more than 25 years of Industry experience, leading multi-
disciplinary and multi-commodity Supply Chain functions across the Energy
Resources and Industries sector.
13 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
PLAYING TO WIN in the “Next Normal”
With resilience at the core, innovative technologies enhance the ability to compete in new ways and on multiple dimensions with less “overhead” versus traditional
physical buffers of materials and capacity.
Cost
Competes on driving out cost in
their supply chain to offer a lower
cost product, material, or service
Quality
Competes on high-quality; brand
is associated with quality and
commands a premium for the
product, material or service
Speed
Competes on getting product
out quickly to customers
Resilience
Service Innovation
Competes on meeting customer Competes on offering best-in-class
needs in terms of product quality, products or services as a result of
specifications, and tailoring product cutting-edge R&D
to specific customer needs
Sustainability
Agility Competes on meeting consumers expectations
Competes on meeting changing regarding corporate social responsibility from an
needs of the business or customer; environmental, resources, and human perspective
can adapt to shifting demand signals
14 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
Mitigate Vulnerabilities to Security of Supply
Deloitte has a database of 200+ current and emergent risks across the four groups that may impact supply chains
Supply Chain Risk Framework
Macro environment risks
Have potential effects across the entire supply chain
Extended value chain risks
Originate in upstream and downstream supply chain partners
Operational risks
Relate to internal process risks
Develop Plan Source Make Deliver/Return
Supply Demand
Tier N Tier 1 3rd Party Distributors End Users
Services
Economic Environmental/Social Geopolitical Hazards Regulatory Security
Infrastructure /
¥ Responsibility
$ € ₤ ! Resources
Functional risks
Exist among enabling functions that support supply chain processes
Finance Human Resources Information Technology Legal
$$$
Note: Though not depicted above in order to maintain simplicity, risks are often highly inter-related with impacts spanning across functions internal to the company and externally within the extended value chain.
15 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
Integrate Supply Chain Focused on 4 Pillars
Deloitte has a database of 200+ current and emergent risks across the four groups that may impact supply chains
Resilient Supply Chain Framework
Resilient Supply Chain Framework
Governance
Visibility Flexibility Collaboration Control …supported by
Resilient supply a clearly
chains are defined
characterized by governance
four pillars… structure and
key enablers
People Process Technology
A resilient supply chain balances risk and costs to prevent or recover quickly
from a multitude of dynamic and simultaneous risk-related disruptions
16 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
Integration Implies a Transition to the “Next Normal”
Supply chains compete in new ways and on multiple dimensions, but their interlinked, global nature also makes them increasingly vulnerable to a range of risks.
Efficient Supply Chains Resilient Supply Chains
Agile
Lean
Supply chain design in consideration of geographic diversity,
Focus on operational excellence, supply chain optimization, and
multi-sourcing, and capacity to respond to market and supply
the elimination of waste (costs, materials / inventories, assets).
chain disruption.
Specialized
Flexible
Establishing centres of excellence, shared services, and focused
The ability to quickly adapt to disruptions without significantly
factories to improve efficiency and cost as a means of
increasing operational costs.
differentiation.
Consolidated
Collaborative
Mergers and acquisitions, integration of operations, and
The ability to develop symbiotic and trust-based relationships with
leveraging economies of scale to improve cost and asset
supply chain partners and other key strategic network participants.
performance.
Reactive Predictive
The ability to sense and respond to demand-side and supply-side The ability to predict issues across the extended supply chain and
events and disruptions to quickly re-plan and then align execution. prescribe actions. Concurrent planning and execution.
Network-focused
Enterprise-focused
Focus on synchronization and optimization of the end-to-end
Focus on functional excellence within the company’s supply chain,
(multi-tier) supply network, enabling coordinated actions and risk
including direct (Tier 1) suppliers and customers.
mitigation.
17 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
Procurement Journey to Supply Chain
Procurement function's value Demand/Maintenance Sourcing Procure Contract Logistics (in-out bound),
to Pay Lifecycle Warehousing,
proposition: Management Distribution
•SUPPLY CHAIN RESILIENCE
Traditional Procurement Integration Linkages
Contract
Spend Analysis eSourcing eProcurement ePayables
Management
39% 37% 36% 20%
A decades-long focus on supply chain optimization to minimize costs, reduce inventories, and drive up asset utilization has
removed buffers to absorb disruptions.
New supply chain technologies are emerging to improve visibility across the end-to end supply chain and support supply chain
agility and resiliency, without the traditional “overhead” associated with risk management techniques.
Source: Ardent Partners (2011), CPO Rising - http://www.sap.com/community/showdetail.epx?ItemID=23425.
19 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
The Evolution to a Digital Supply Network (DSN)
Optimising the traditional linear supply chain is transforming into digital supply network (DSNs) where functional silos are broken down within your organization
connecting your full supply network with end-to end visibility, collaboration, responsiveness and agility, designed to anticipate disruptions and reconfigure
themselves.
Traditional Supply Chain Digital Supply Network
Cognitive Planning Synchronized
Planning
Quality Sensing
Dynamic Connected
Fulfillment Customer
Develop Plan Source Make Deliver Support
3D Printing DIGITAL
CORE
Sensor-driven Replenishment
The future value chain need to sustain the value proposition by adopting a digital approach to visualise and track progress
with transparency on interdependencies (planning) and external influences (risks), automating external inputs to scenario
planning to sense and act against potential negative financial impact (revenue, cost, cash flow, working capital).
Digital Factory of
High level evolution of a Digital Supply Network approach: Development
• Mainstay solutions: Spend Analytics, eSourcing/Contract Management, eProcurement. the Future
• Transformative solutions: Artificial Intelligence, machine learning to derive strategic insights. Collaboration Networks provide visibility and escalate
risks. Intelligent Content Extraction to digitize content using Optical Character Recognition (OCR), Predictive Analytics to forecast risks. Robotics to
automate repetitive tasks. Cyber Tracking real-time tracking of online activity to proactively monitor behavior and social media sensing. Block
Chain networking.
• Emerging Supply Chain solutions: Sensors/Wearables record physical data of goods movement, inventory and reordering.
20 | Copyright © 2020 Deloitte Development LLC. All rights reserved. Intelligent
SupplySUPPLY CHAIN RESILIENCE
DSN Strategy Considerations
Supply chain optimization has traditionally focused on optimizing a component of the physical network with respect to cost and capacity. With a focus on resilience,
a more holistic and integrated perspective is required.
MARKET CAPEX CAPACITY PRODUCTION SOURCING & SUPPLY CHAIN REVERSE
SENSING & PLANNING PLANNING OPTIMIZATION SUPPLY NETWORK RISK & LOGISTICS
SCENARIO OPTIMIZATION RESILIENCY
ANALYSIS
M&A DEMAND LABOR GLOBAL TRADE, DIGITAL INVENTORY CUSTOMER SERVICE CUSTOMER
INTEGRATION & MODELING PLANNING TAX, AND SUPPLY STRATEGY DIFFERENTIATION COST-TO-SERVE
SYNERGY REGULATORY NETWORK
STRATEGY
SUSTAINABILITY SHELF-LIFE, EXPIRY, PRODUCT TRANSPORTATION DISTRIBUTION ECOMMERCE & BUDGETING &
& CARBON/GHG AND WASTE PORTFOLIO & LOGISTICS NETWORK & FLOW OMNI-CHANNEL CASH FLOW
OPTIMIZATION MANAGEMENT STRATEGY STRATEGY OPTIMIZATION FULFILLMENT PLANNING
>150 CPO (US) survey reflect 47% of respondents expect a 11%-20% ROI for digital and analytic investments
>1,500 Global Executives survey reflect adoption of Blockchains to have doubled between 2019/2020
21 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
Global Trade, Tax, and Regulatory
Global Trade, Tax and Regulatory Considerations
• Registration Requirements (Import/export/Manufacturing)
• Import/ Export Controls
• Labelling requirements
• INCOTERMS
• Trusted Trader Programmes-Trade Facilitation
• Customs Value/Invoice Price unbundling (duty reduction mechanism)
• Reporting Requirements
• Indirect Taxes Deferment Scheme (Monthly-Customs Duty and Import VAT)
• 2 year liability/refund cap
Transfer pricing
• Each participant in the supply chain has to earn a return that
Sourcing and Supply Chain Network Optimization Considerations
compensates them for the functions they perform and risks assumed.
• Reduced Total Landed Cost
• The profit should follow along in the supply chain where value is created
• Preferential Customs duty Considerations
• In order to determine whether a participant is remunerated on an arm’s
• Free Trade Agreements (Regional Trade Blocs Matrix
length basis along the supply chain a Profit Split Method can be used
considerations)-Approved Exporter Status
where the entities performing a routine function e.g. distributors, service GLOBAL TRADE, • Industrial Development Zones
provides or sales/procurement entities functions, can be remunerated TAX, AND • Increased market access
on a routine return basis, whereas an entity assuming an entrepreneurial REGULATORY • Reduction or elimination of customs duty cost
function may earn the residual profits along the supply chain
• Mutually recognised customs controls (export/import)-Improves
• Considerations: Indirect Taxes, Registration requirements, Zero rating
lead delivery times
of supplies, Import/Export controls, Documentary compliance
Dispensation (Bonded Facilities)
Two year- IndiInventory Strategy Considerations
• Customs duty Deferment rect Taxes deferment
• Cash flow benefit
22 | Copyright © 2020 Deloitte Development LLC. All rights reserved.SUPPLY CHAIN RESILIENCE
DSN Enables Integration & Sustainable Impact
Our DSN solution incorporates all relevant project information (from multiple multi-tiered sources), into a connected view, driving scenario based decision making
1 Procurement to DSN
Journey 3 Transparency & Business Impact
4 Cost of Sales
Working Capital
Deloitte’s approach is based on the Digital (Category Management &
Sourcing Plan
Capabilities Model (DCM) which is compatible
• Selected suppliers
P2P) Coupa/Ariba/Zycus
with Supply Chain Operations Reference (SCOR) • Agreed pricing
Digital Standard. • Contractual volumes
Activities at risk of supply/budget overrun
Detailed/updated Project Plan Procurement Platform
• Activities Client Centricity
• Timelines Procurement Insights 5
• Resources
(eCatalogues)
• Costing
2 Integration of Supply Chain
Production/Manufacturing/M
(S&OP)
aintenance Planning
Supplier Database
Sourced Item Cost Multi-tier supplier risk
7 Value Beyond Compliance
ERP or equivalent Responsible Sourcing 8 Blockchain x Industries
Detailed Project cost mapped to GL
Supplier Illumination
6 Risk Management and
Scenario Planning
23 | Copyright © 2020 Deloitte Development LLC. All rights reserved.Poll 24 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Integrated Planning Margaret Loo – Senior Consultant, Deloitte Australia
INTEGRATED PLANNING
Margaret Loo
Enterprise Performance Management, Integrated
Planning SME
Margaret is a integrated planning SME within Deloitte Australia’s Enterprise
Performance Management team. She focuses on designing and delivering
strategic, operational and financial connected planning solutions that create QR-Code
positive impact for her clients.
Margaret has delivered a number of enterprise cloud based performance
management solution across various industries such as Mining & metals, retail,
telco, insurance etc., helping them to streamline their business processes,
creating transparency and governance within their planning function.
26 | Copyright © 2020 Deloitte Development LLC. All rights reserved.INTEGRATED PLANNING
Visioning The “Art of the Possible” beginning with the end in mind
Mining & Metals organisations are heading towards establishing Intelligent Mines, directly supporting the transition of Corporate Reporting and Optimisation pillar
Ore Body
Equipment Automation Emerging Technologies Digital Mobility
Knowledge
End to End Integrated Planning
components:
Digitised Ore Equipment IoT sensors for real Drones for ‘Digital Twin’ – Wearables for field Diverse mobile
Agile ▪ Geospatial Compliance
Body Automation time data capture inspection, stock and Digitised maintenance and connected Planning ▪ Short Interval Control
safety monitoring engineering and operator safety workforce ▪ Live Mine Planning
asset information and ▪ Live Terrain Models
Scheduling
+
Corporate ▪ Integrated financial planning approach
Reporting ▪ Analytics enabled decision-support
▪ Exception-based automated reporting &
and workflows
Optimisation
SUPPLIERS
EXPLORATION &
DEVELOPMENT
MINING PROCESSING
MAINTENANCE &
LOGISTICS
TRANSPORT CUSTOMERS +
Agile Planning and Scheduling
▪ Sensing & responding to market demand
Asset Performance Management Marketing ▪ Delivering intelligent insights to direct both
internal and external supply chain
Operations Visualisation and Optimisation Intelligence configurations in a flexible manner
SUPPLY FINANCE HUMAN RESOURCES SUSTAINABILITY LEGAL SHARED SERVICES MARKETING
Digital Supply Network Corporate Reporting and Optimisation
Marketing
+
Intelligence
Digital Core Platform
Robotic process “Re-imagined” cloud- Network connectivity and IT OT Convergence Cyber security ▪ Integrated, cleansed data across multiple systems
automation (RPA) based ERP bandwidth ▪ Common standard KPI and Model definitions
▪ Elastic storage and processing
Digital Core Platform
How does this help your organisation?
By designing for the future now, your organisation can leapfrog it’s competition, not just by improving processes and implementing modern systems but by intentionally designing for the big picture in mind: An
27 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
integrated intelligent mining ecosystem.INTEGRATED PLANNING
Planning Scope Context
Integrated planning platform across mine-to-customer supply chain
Client Use Case Client Success Metrics
Overall Marketing
Assets & Labour &
Planning product Mine Plan Physicals The Plan
Utilisation Headcount
Stages strategy
More than 250 Excel workbooks with
Marketing Intelligence Agile Planning & Scheduling
End to End associated 4,500+ sheets have been
Integrated
Planning
Corporate Reporting and Optimisation identified as being used in the current
components budgeting, planning and forecasting
Integrated Planning Component
process. This includes over 18.8M
ERP ERP formulas and 26.27M number values
Master Data Budget contained in cells…
Actuals submission
Shipping Income Tax
Sales,
Support Deferred
Marketing &
Costs Stripping
Royalties
Global
Port & Rail Capital Corporate Aggregation
s
…Timing for updating models for forecasts
Non-Process
Infrastructur
Cost Global Financial ranges from 3 hours to 18-19 working days
Mining
e
Allocations Assumptions Statements ~18
Workforce Transfer Financing & Workin per month due to the amount of manual
Exploration
Planning Pricing Treasury
g Days consolidation and manipulation
Inventory
HR Labour JV Cash Calls
Valuation
Energy
Trading
Other (E.g.. MineRP)
Illustrative Integrated Planning Model
Enterprise
28 | Copyright © 2020 Deloitte Development LLC. All rights reserved.Datawarehouse1 2 3
INTEGRATED PLANNING
How does it work? User
Input
Scenario
Planning
Visuals
Connecting key financial drivers into your supply chain, to create an end-to-end integrated planning across your value chain
4 5
Calculation Data
Engine Store
(Hyperblock)
Integrate source system data and
Total financial cost is Connect inventory movements
input financial assumptions to
aggregated and connected with the stockpile valuation,
calculate financial cost at a granular
to financial management calculate unit cost
level
reports
Quick scenario planning, review downstream and upstream impact
29 | Copyright © 2020 Deloitte Development LLC. All rights reserved.Third Party Risk Nombulelo Kambule – Associate Director, Deloitte SA
THIRD PARTY RISK
Nombulelo Kambule
Risk Advisory and leads Deloitte Africa’s
Extended Enterprise Risk Management
Nombulelo is an associate director in Risk Advisory and leads Deloitte Africa’s
Extended Enterprise Risk Management (“EERM”) team. Nombulelo is a third
party risk management subject matter expert and her role is focused on
advisory and assurance services to build extended enterprise risk management
programmes for organisations across multiple sectors. She has supported a
number of organisations to manage financial, reputational, regulatory and
operational risks across their extended enterprise.
31 | Copyright © 2020 Deloitte Development LLC. All rights reserved.Disruptions to global supply chains due to
risk events have been heavy. Our research
suggests that most organisations were
unprepared to manage third-party risks in
the event of a large scale disruption like
the COVID-19 pandemic, despite growing
strategic dependence on critical third
parties in supply chain, support services,
sales and distribution, joint venture
partners, subsidiaries
and affiliates.
32 | Copyright © 2020 Deloitte Development LLC. All rights reserved.THIRD PARTY RISK
Insights
Extended Supply Chain Risks impacting how the extended enterprise is managed
What drives the business case for investment in Extended Enterprise Risk Management given the
changing economic and business environment for our global and African organisations?
Response to Be a
Response to increasing responsible
third-party regulatory business with
related incident requirements an ethical
or scrutiny supply chain
47%
45% 43%
Most organisations have experienced challenges in ongoing management of critical third-party
relationships providing real-time knowledge of what is happening on the ground.
*Deloitte Global Extended Enterprise Risk Management Survey 2020
33 | Copyright © 2020 Deloitte Development LLC. All rights reserved.THIRD PARTY RISK
Actions Organisations Should Be Considering
Extended Supply Chain Risks impacting how the extended enterprise is managed
Go beyond setting up a crisis management centre that just responds to immediate impacts, but
one that looks for clues and potential scenarios on how and when the rebound will take place and
includes flexible plans for the recovery period.
Enhance visibility to provide right time data visibility, proactive alerts, prescriptive insights, and
self-driving execution.
Implement risk dashboards and preventative program management, including risk sensing, to
enhance the resiliency of a rebound program by obtaining locational intelligence on emerging
risks and a look ahead to potential future disruptive events.
A resilient supply chain recovery framework requires organisations to consider permanent or
longer term substitution of alternate supply sources for materials as regions emerge unevenly after
the pandemic.
Continue planning for potential risks by developing mitigation plans and making well-informed
risk/reward trade-offs during the recovery period.
34 | Copyright © 2020 Deloitte Development LLC. All rights reserved.Using Technology to Identify, Scope and React to Macro
Environment and Extended Value Chain Risks
Extended Supply Chain Risks impacting how the extended enterprise is managed
Implement risk dashboards and preventative program management, including risk sensing, to enhance the resiliency of a rebound
program.
Data collection Tailored intelligence Third-party fortitude
Cognitive engine ingests 800,000 external Curate relevant signals from vast volumes of Leverage risk screening, operational
open data sources data to provide intelligence on your extended disruption sensing and geospatial
enterprise and insights on the risks they may intelligence to monitor your critical
bring to your brand extended enterprise partners
Digital media
Cognitive analytics
Broadcast and print media Market risk
Data sources
engine
Regulatory sites Financial Operational Strategic Financial health
Social media, blogs, forums Supply chain resiliency
Survey data
New regulatory regimes
Restrictions
Other client-specified sources
Environmental violations
Geopolitical landscape
Reputational Compliance
Critical resource supply
Distributed workforce
35 | Copyright © 2020 Deloitte Development LLC. All rights reserved.THIRD PARTY RISK
Extended Enterprise Risk Management
Using technology to identify, scope and react to macro environment and extended value chain risks
Risk screening, operational disruption sensing,
and geospatial intelligence can help uncover
market risks and provide insight regarding
financial vitality for individual providers,
geographic regions, or industry sectors
36 | Copyright © 2020 Deloitte Development LLC. All rights reserved.THIRD PARTY RISK
Extended Enterprise Risk Management
Using technology to identify, scope and react to macro environment and extended value chain risks
Red Jones is conducting second round of downsizing activity
On 01 June 2020, Bloomberg Law reported that Red Jones is commencing a second
round of measures to reduce costs, including pay cuts, furloughs, and layoffs, citing
“prolonged economic uncertainty” from the coronavirus pandemic. It was stated that
the firm’s owners will bear the largest share of the financial burden. Targeted
redundancies will reportedly take place at its office in London.
Date: 6/1/2020
Risk domain: Business Continuity – Downsizing
Criticality: Admission - 3
Link
37 | Copyright © 2020 Deloitte Development LLC. All rights reserved.THIRD PARTY RISK Predictions on the Future of the Extended Supply Chain The cost of failure Increased leadership attention on the value of TPRM, supported by tangible investments in resources, capabilities, technology and reporting Balancing responsibility and cost Widening of business continuity planning to consider the consequences of third-party actions in addition to responsible business to feature more regularly in the business case for investment in EERM, both to unlock budgets and enable organisations to demonstrate return on investment Insourcing and localisation of supply as a more attractive option Technology developments and maturity Heightened need for top executives to obtain actionable intelligence to manage the extended enterprise on a real-time basis will drive automated solutions and intelligence around supply chain illumination and provision of intelligence on third parties without needing to rely on them for information 38 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Cognitive Supply Chain Control Towers Enabling the Autonomous Enterprise Kevin Overdulve – Director, Head of Supply Chain, Deloitte Belgium
COGNITIVE SUPPLY CHAIN CONTROL TOWERS
Kevin Overdulve
Logistics & Distribution Practice, Cognitive
Control Towers Lead
Kevin leads Deloitte's EMEA Logistics & Distribution practice and heads up the
service offering around Cognitive Control Towers. He helps companies across
industries (FMCG, Oil & Gas, Pharma, Automotive, …) to turn their Digital Supply
Network into a competitive advantage.
Experiences are situated in the area of End-2-End logistics & distribution
transformation, supply chain strategy & network design, reverse logistics, tech-
enabled & digital logistics, supply chain operating model design, …
40 | Copyright © 2020 Deloitte Development LLC. All rights reserved."Any plan won't survive its first encounter with reality. The reality will always be different. It will never be the plan." JEFF BEZOS | AMAZON
COGNITIVE SUPPLY CHAIN CONTROL TOWERS
Navigating Away From The “Planning Premise”
Total Supply Chain Performance is much more driven by Excellence to Execute in a crisis
Total Supply Chain Performance: Contribution by …
Excellence to Execute Planning Excellence
40 – 60 % 40 – 60 %
Pre-crisis Success Factors: Success Factors:
(Steady state) • Transparency & Visibility • Scenario Planning
• Segmentation & Business Rules • Financial Integration
• Strategic Alignment
80 – 90 % 10 – 20 %
Crisis Success Factors: Success Factors:
• Transparency & Visibility • Scenario Planning
• Early Warning Systems & Alerts • Cash Projection
• Near-term Cognitive / Predictive Capabilities
42 | Copyright © 2020 Deloitte Development LLC. All rights reserved.COGNITIVE SUPPLY CHAIN CONTROL TOWERS
The Control Tower Explained
Real-time connectivity, no Focus on the exceptions Drive process
data-dumps or lagging in the bulk of all improvement through
indicators and 24/7 always-on transactions new insights enabled by
advanced analytics
Continuously track the signals of a specific business issue
from its symptom to its root cause
Delivering data-driven
Based on a Use Case with actionable insights that are
data, analytical solutions and new and can only be
processes tailored to that achieved using analytics
43 | Copyright © 2020 Deloitte Development LLC. All rights reserved.COGNITIVE SUPPLY CHAIN CONTROL TOWERS
Cognitive Automation Explained
Understanding • Real-time data crawling Recommendation
• Harmonization &
indexation
• Exception- & persona-
based visualization
• Use-case based,
-like cognitive algorithms
• “Here and now”
feasibility check
• Machine learning
• Service, cost & risk
impact -like
• Retrospective decision
monitoring & audit log
-like
• Bi-directional
integration
• Anywhere, anytime Impact
Action
Prediction
44 | Copyright © 2020 Deloitte Development LLC. All rights reserved.COGNITIVE SUPPLY CHAIN CONTROL TOWERS
The Journey we are on with Clients
OBSERVE ORIENT DECIDE ACT
Based on Gartner’s “Systems of Continuous Intelligence”
1. SILOED
• Silos of data & decisions
• Backward looking Descriptive reports
• Transactional reporting What has happened?
2. HARMONIZED
• E2E visibility ~ SC BoM
• Real-time sense & respond
Diagnostic exploration
Why and how did it happen?
• Transactional reporting
3. COGNITIVE
Predictive ML
• E2E trade-offs What is likely to happen?
• Predictive & prescriptive
recommendations
Prescriptive analytics or rules Decision support
• Time series for DS, AI & ML
What should we do?
4. AUTONOMOUS
• Mature (“trusted”) AI & ML
allowing closed-loop &
continuous decisions
Prescriptive analytics or rules Decision automation
What is done?
• Automatic write-back of
actions
45 | Copyright © 2020 Deloitte Development LLC. All rights reserved.COGNITIVE SUPPLY CHAIN CONTROL TOWERS
Partnering with Aera Technology
2017 Patented 360+
Aera launched with Stack of internet-scale cognitive Aeranauts across
$50M of investment technology
8 Countries
2019 Billions
Acceleration of scaling Rows of data
and dev. with $80M crawled daily
Series C
20+ Top 50 Skills
Average years of enterprise CPG and Pharma companies as Aera Digital Assistants augment and
software experience on the Exec customers automate decision-making
Team
46 | Copyright © 2020 Deloitte Development LLC. All rights reserved.COGNITIVE SUPPLY CHAIN CONTROL TOWERS
Use Case #1: Rapid Response Control Tower
Management of
exceptions versus
plan in 1 view
Exception
notifications and
KPI threshold color
coding
Ability to go to
lowest level of
detail
Different views
depending on the
user (hierarchy)
47 | Copyright © 2020 Deloitte Development LLC. All rights reserved.COGNITIVE SUPPLY CHAIN CONTROL TOWERS
Use Case #1b: AI-Enabled Stock-Out Mgt.
Machine Learning
model to identify
stock-outs vs. rule-
based model
Issue sensing beyond
pure stock numbers:
end of month effect
& plan/execute
deviations
Prescriptive
recommendation to
suggest a response
that is viable &
feasible
Ability to act, write-
back and
monitor/steer the
adoption of solution
48 | Copyright © 2020 Deloitte Development LLC. All rights reserved.COGNITIVE SUPPLY CHAIN CONTROL TOWERS Use Case #2: Proactive Shipment Mgt. Visual order-to-cash cockpit to track orders & blocks throughout the process Machine Learning model to classify shipments at risk Prescriptive recommendation to suggest an action to avoid delay Ability to act, write- back and monitor/steer the adoption of solution 49 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Poll 50 | Copyright © 2020 Deloitte Development LLC. All rights reserved.
Virtual Panel Discussion Kavitha Prag−Director, Deloitte Africa, Supply Network & Operations Lead
Thank you.
Kavita Prag
Director – Supply Chain Network Operating Lead
Deloitte Consulting, Africa
Contact: : kprag@deloitte.co.za
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