#IBMInsight session presentation "Orchestrating a Customer-Activated Supply Chain" Assembling the pieces of a customer-activated supply chain involves activities on three dimensions: Sharpen visibility and insight, Partner for innovation, Become customer-activated IBM supply chain analytics solutions to leverage Big Data More at ibm.biz/BdEPRX

1. Orchestrating a Customer-Activated Supply Chain
Session # 6913B
Presenters: Dave Lubowe and Dan Carrell
Date: October 27th 2014
© 2014 IBM Corporation

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Performance is based on measurements and projections using standard IBM benchmarks
in a controlled environment. The actual throughput or performance that any user will
experience will vary depending upon many factors, including considerations such as
the amount of multiprogramming in the user’s job stream, the I/O configuration, the
storage configuration, and the workload processed. Therefore, no assurance can be
given that an individual user will achieve results similar to those stated here.
2

3. We compared outperformer responses against all other
CSCOs and have highlighted key differences
Three performance categories Particular attention on Outperformers
3
2013
CSCO
Outperformers
Higher revenue
growth and
profitability
44%
33%
Source: IBM IBV CSCO Insights Study 2014; Question E4, and E5
In this study we focus on common
performance factors, while
highlighting the most significant
differences between outperformers
and all other CSCOs
Outperforming enterprises surpass
their industry peers in terms of
revenue growth and profitability, in
the opinion of the CxO concerned
Peer Performers
All other performance combinations
Underperformers
Lower revenue
growth and
profitability
23%

4. Outperforming enterprises invest more in activities that
lead to a customer-activated supply chain
4
29%
All other CSCOs
43%
Outperformers
Invest in supply chain
visibility
[next 3 years]
54%
All other CSCOs
Collaborative business
intelligence
[already have]
73%
Outperformers
21%
All other CSCOs
42%
Outperformers
Customer understanding
[today]
Areas where outperformers excel
100% 35%m
ore more 48%m
ore
Source: IBM IBV CSCO Insights Study 2014; Question CSCO10c, Question CSCO9c, Question C1

5. CSCOs intend to use advanced analytics and modeling
tools to predict demand and make better decisions
5
Path towards a customer-activated supply chain
Sharpen visibility and insight
Integration
and visibility
Synchronize
entire supply
chain
Optimize every
element for
rapid market
response
Business
intelligence
Adopt
advanced
analytics and
modeling tools
Use real-time
data to predict
demand

6. Clients are investing in solutions for visibility and business
intelligence
6
A mining company uses
analytics to improve asset
performance and predict
$3B of extra profit
Car manufacturer
develops a “Battery
Traceability System” to
predict and improve
hybrid and EV battery
performance
Water Utility, integrates
mobile workforce
management solution with
existing processes to
provide real time two-way
communication and
access to inventory
management for stock
counts
Predictive Asset
Performance
Predictive
Maintenance
Mobile Workforce
Management

7. The ISC is undergoing an analytics led, technology-enabled
supply chain transformation
New Era Supply Chain
Reinvention
Watson Enabled analytics
Network Orchestration
Agile / Resilient
Visibility / Transparency
Data Driven /Digitally
Executed
7
Globally Integrated
Enterprise Smarter Supply Chain
Enterprise efficiencies
Streamlined Global
processes
Information sharing
Advanced Analytics,
Optimization, Big Data
Management
Supply Chain Transparancy
Multi-enterprise supply chain
transformation
Evolving Supply Chain Management from cost center to value center…
Business
Impact
2013 Cash Collected : $99B
2013 Managed Spend : $53B
20K Employees in 70 countries
$7B in procurement saving annually
18K+ suppliers connected online
96% of invoices are electronic
32 Smarter Analytics projects
Over 3.9M visits to eTools

8. IBM relies on several types of supply chain analytics to
leverage Big Data
How do we optimize?
Cognitive
Deeply analytical computing systems that
learn interact naturally with people
Velocity - data in motion
Variety - many forms of data
8
What will happen?
Descriptive
Get in touch with reality, a single
source of the truth, visibility
Prescriptive
Collaborate for maximum business
value, informed by advanced analytics
Predictive
Understand the most likely future
scenario, and its business implications
What happened?
What should we do about it?
Volume - data at rest
Veracity - data in doubt

9. We have over 30 analytic solutions in use at IBM today,
some of which are also available for client use
IBM Price Analysis
Tool (IPAT)
9
Critical Parts
Management (CPMT)
Upstream multi-tier visibility
Predictive analytics
Supply assurance
Optimized price for maximum gross
profit
Financial evaluation, simulation and win
probabilities of multiple price points
IBM Buy Analysis
Tool (IBAT)
Predictive analytics
Collaboration platform data model
Channel collaboration support
processes
Incentive alignment
Quality Earning Warning
System (QEWS)
Identifies trends up to 6 weeks
before SPC
Predictive quality mgt
Cost savings
Brand protection

10. The ISC expansion to Watson for development of Smarter
SC Analytics with cognitive capabilities
Investigate ways Watson to can help solve supply chain
problems using analysis of unstructured data
Possible ISC Uses IBM Showcase
opportunities
10
Quality Quasar
Risk Rover
Procurement
Prognosticator

11. CSCOs will use innovation to apply modern technologies
to rapid business model changes
Collaborative planning and
execution with partners
11

12. Clients are investing in solutions for collaborative digital
strategies
Customer Service
Sales
12
A building materials
company transforms by
placing the customer at
the center of the
transaction and charging
for customer delivery
delays thus reducing fuel
costs and increasing
deliveries by 68%
Airline, creates first RFID
tag based check-in bag
drop process reducing
check-in time by 75%
(premium) and 60% (non-premium)
Communications
company, provides
differentiated customer
service with mobile
product, sales, quotes
and inventory apps
streamlining warehouse
operations and inventory
tracking
Process
Improvement
Digital Supply Chain

13. In a horizontally integrated supply chain we can no longer
afford to work in silos; collaboration is essential
13
Delighted Clients
Transformation of our
Business Process
Deep understanding
of Customers
Requirements
Analytics
Real Time
Information
Automated Alerts
Knowledge
Sharing

14. Our vision is to create the most transparent supply chain in
the world for predictive risk management
Global Level KPIs
with drill downs
Mobile App for alerts
14
Clients
Transparent Supply
Chain
IBM
Business
Partners
Suppliers
Intelligent Operations
Resolution Center
Real time order
status visibility and
exception alerts
Transparent
Operations
Management
Geo spatial other
visualizations
Improved Visibility
– finished good
inventory
Effective Supplier
Collaboration

15. CSCOs will shift their vision and oversight to eCommerce,
the customer experience and business development
Become customer-activated
15
Customer
influence
Collaborate
more actively
with customers
Incorporate
customer input
into
product/service
portfolio
Customer
experience
Understand
the customer
Shift
oversight to
the customer
experience
Future areas of CSCO personal
involvement

16. Clients are investing in solutions for bringing the customer
into the supply chain
16
Shoe company,
transforms planning and
operations using analytics
to deliver products to
market faster and make
impactful real-world
decisions based upon real
time customer order and
preference data
Food distributor,
initiates enterprise
resource-planning
program with modeling to
synchronize diverse
product data to maximize
sales and more
accurately forecast
supply and demand at
the product group and
store level
Bank, integrates 360
degree customer view for
prescriptive insights and
to reduce time to market
of new customized
products and services
designed around client
demand
Supply Chain
Planning
Optimal Product
Assortments
Customer Service
New Product Design

17. Ensure all client facing initiatives tools of engagement
anticipate and address client needs.
Structured “Voice of the Client” initiatives help to gather
and understand client requirements that in turn drive
strategic transformational projects.
• Leveraging social, mobile, and cloud
Showcase IBM use of advanced analytics solutions in a
real supply chain environment to drive client value
17
ISC Focused on …Delighting Clients Every Day
Dedication to every Client’s success
Client Collaboration Community
• Collaboration community
Sharing Knowledge and Experience for Client Benefit
• Highlight tangible business benefits and
demonstrate the art of the possible
“Put the client
first.”
“Listen for need,
envision the
future.”
“Share
expertise.”

18. 18
Global Supply Chain
Transformation
Supply Chain
Transparency
Advanced Analytics,
Optimization, Cognitive
Predictive Risk Quality
Management
IBM ISC supply chain network 2020 vision
Multi-enterprise, collaborative, end-to-end intelligence focused on
client value

19. Assembling the pieces of a customer-activated supply
chain involves activities on three dimensions
Sharpen visibility and insight
Business
intelligence
Adopt advanced
analytics and
modeling tools
Use real-time data
to predict demand
Integration and
visibility
Synchronize entire
supply chain
Optimize every
element for rapid
market response
35% more Outperformers invest in
supply chain visibility
Future state: Managing supply
chain complexity requires superb
business intelligence and insights
Partner for innovation
Collaborative
execution
Increase level
of partnership
Use collaborative
digital strategies
Innovative
initiatives
Treat risk mitigation
as integral part of
CSCO;s job
Create agile, social
networks
100% more Outperformers invest in
collaborative business intelligence
Future state: Innovation will
apply modern technologies to
rapid business model changes
Become customer-activated
Customer
influence
Collaborate more
actively with
customers
Incorporate
customer input into
product/service
portfolio
Customer
experience
Understand the
customer
Shift oversight to
the customer
experience
48% more Outperformers invest in
customer understanding
Future state: Personal
involvement in eCommerce
and customer experience
management
19 19

20. Where are you?
Path to a customer-activated supply chain
Sharpen visibility and insight
Business
intelligence
Adopt advanced
analytics and
modeling tools
Use real-time data
to predict demand
Integration and
visibility
Synchronize entire
supply chain
Optimize every
element for rapid
market response
35% more Outperformers invest in
supply chain visibility
Future state: Managing supply
chain complexity requires superb
business intelligence and insights
Partner for innovation
Collaborative
execution
Increase level
of partnership
Use collaborative
digital strategies
Innovative
initiatives
Treat risk mitigation
as integral part of
CSCO;s job
Create agile, social
networks
100% more Outperformers invest in
collaborative business intelligence
Future state: Innovation will
apply modern technologies to
rapid business model changes
Become customer-activated
Customer
influence
Collaborate more
actively with
customers
Incorporate
customer input into
product/service
portfolio
Customer
experience
Understand the
customer
Shift oversight to
the customer
experience
48% more Outperformers invest in
customer understanding
Future state: Personal
involvement in eCommerce
and customer experience
management
20 20

21. 21
Dave Lubowe
Global Business Services
VP Partner, Operations
Supply Chain Consulting
E-mail:dave.lubowe@us.ibm.com
Dan Carrell
IBM Integrated Supply Chain
VP, Client Services Procurement
E-mail: dcarrell@us.ibm.com

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