New technologies are transforming supply chain operations, but technology alone is not enough. Real-time collaboration between people and companies is needed to respond effectively as situations change. Simulation and collaboration platforms let people explore options, create consensus and act effectively in high change and unpredictable supply chains.

1. © 2018 Michael Hugos 1 SCiWeek 2018 - Hamburg
A Platform and Process
for Collaborative, Real-Time
Supply Chains
Michael Hugos
Author Keynote

2. © 2018 Michael Hugos 2 SCiWeek 2018 - Hamburg
New Technologies Change How Work is Done
Mix and match these
technologies to:
Industrial Robots
Warehouse
Automation
Artificial Intelligence
Delivery Drones
3D Printing
Internet
of
Things
Simulation
Optimization
• Improve operations
(EFFICIENCY)
• Deliver new products and
services (RESPONSIVENESS)

3. © 2018 Michael Hugos 3 SCiWeek 2018 - Hamburg
Five Drivers of Supply Chain Networks
EFFICIENCY
vs.
RESPONSIVENESS
Responsiveness is a mix of
agility and collaboration
focused on accomplishing
specific goals.
“Increase throughput while
simultaneously reducing
inventory and operating
expense.” Goldratt, The Goal
Responsive supply chains
are the future… effective
combinations of technology,
process and people
2.
INVENTORY
How much to
make, how much
to stock
3.
LOCATION
Where best to do
what activity
4.
TRANSPORTATION
How and when to
move product
5.
INFORMATION
Basis for
making these
decisions
1.
PRODUCTION
What, how, and
when to produce

4. © 2018 Michael Hugos 4 SCiWeek 2018 - Hamburg
Three Conditions Enable Responsiveness
Responsive supply chains need people to act quickly and collaboratively without
waiting to be told what to do… Are there examples of this we can learn from?
1.
Information Sharing
SEE
( TECHNOLOGY )
2.
Authority to Act
ACT
( PROCESS )
3.
Stake in the Outcome
IMPROVE
( PEOPLE )
With winning
supply chains
Winning teams
share traits

5. © 2018 Michael Hugos 5 SCiWeek 2018 - Hamburg
Real-Time Collaboration Platform
Real-Time
Big Data
(cloud-based)
Multi-Dimensional
Analysis and Simulation
Customers
Business Analytics
In - Memory Database
Manufacturers
Distributors
Retailers
Financial Markets
Cloud-based applications
using APIs to combine
needed features and functions
Responsive supply chains
employ technology for
effective collaboration and
coordinated action
Modular and flexible
technical architecture
Companies use
internal systems
for internal
operations and
share data as
needed

6. © 2018 Michael Hugos 6 SCiWeek 2018 - Hamburg
Cloud-Based Supply Chain Collaboration
1. Cloud-based software-as-a-service, APIs for data exchange with other applications
2. Intuitive user interface provides context for streams of data – promotes
“Situational awareness” for wide groups of people involved in supply chain operations
3. People do the thinking, computers do the calculating – simulations show where
different ideas can lead – all can see so consensus emerges quickly
Company 4
Company 2
Company 1
Company 3

7. © 2018 Michael Hugos 7 SCiWeek 2018 - Hamburg
Framework for Collaboration (S&OP)
1.
Sales
Forecasting
2.
Demand
Planning
3.
Supply
Planning
4.
Reconcile
Plans
5.
Implement
& Monitor
NOTES:
• Ongoing 5-step sales and operations planning process (S&OP)
• Data from Demand Plan and Supply Plan used to create supply
chain model.
• Reconcile Supply Plan with Demand Plan based on simulation
results, adjust model to fix problems
• Supply chain model delivering best simulation results
becomes operating plan for next 30 days!
Demand Plan:
- Product specs
- Facility demands
Supply Plan:
- Vehicle specs
- Delivery Routes
Mkt Forecast:
- Sales by market
- Prices and costs
Operating Plan:
Effective supply
chain operating plan
for 30 days
Budget & KPIs:
Operating budget
and performance
metrics
Modeling and Simulation
30-day S&OP cycle

8. 8
© 2018, Michael Hugos SCiWeek 2018 - Hamburg
Explore Options - Create Consensus
Sales Forecast: sets
market demand
Demand Plan: sets
product demand at each
facility
Supply Plan: meets product demand
Reconcile Plans: simulations
find the mismatches between
Demand Plan and Supply Plan

9. © 2018 Michael Hugos 9 SCiWeek 2018 - Hamburg
Implement Plan - Monitor Operations
Collect and display real-time
operating data
Spot trends and disruptions
as they occur
Continue planning and
simulating responses to
new situations as they
arise
No plan survives contact
with reality…

10. © 2018 Michael Hugos 10 SCiWeek 2018 - Hamburg
Findings to Date
• Efficiency – computers automate rote and repetitious work
• Responsiveness – people do creative, problem-solving work
• Use same technology for S&OP and Monitoring – cross-functional
teams plan and monitor supply chain operations making adjustments to
respond as situations change (two sides of the same coin).
• Effective collaboration occurs when people can see what is
happening, when they have authority to act, and have a stake in the
outcome
• Supply chains become a team sport – successful people and
companies seek each other out
• Findings based on 20 years work with companies, students and
instructors in Asia, Europe and North America.

11. © 2018 Michael Hugos 11 SCiWeek 2018 - Hamburg
Learn More…
Presentation excerpted from my
book:
Essentials of Supply Chain
Management, 4th Edition, 2018
• Understand supply chains and
how they work
• See how new technology
changes supply chain operations
• Create supply chains for
competitive advantage
Amazon listing:
https://www.amazon.com/Essentials-Supply-Chain-Management/dp/1119461103/
Contact me at: mhugos@scmglobe.com
See supply chain simulations at:
www.scmglobe.com