Overview of IBM ILOG Logic Net Plus XE software, used for strategic supply chain network design and optimization.

1. Overview ofIBM ILOG LogicNet Plus XE By: Kumar Rahul BE (Hons), MBA Logistic Analyst AFL Pvt. Ltd. (Logistics Div.) Mumbai, India rahulbemba@gmail.com www.rahulbemba.blogspot.com http://in.linkedin.com/in/kumarahul

2. Declaration This presentation gives an overview of IBM ILOG LogicNet Plus (LNP) XE software. Though I have directly worked on IBM ILOG LNP during my stint with AFL Logistics, for confidentiality reasons I have not used any proprietary information for this presentation, nor have I revealed any of our customers details or details of results of the models that I ran on this software for our clients’ supply chains. Kumar Rahul

3. Content

4. IBM ILOG Supply Chain Management Applications IBM ILOG Supply Chain Management Applications are optimization-based decision support solutions designed to complement and enhance existing investments in enterprise resource planning (ERP) and advanced planning and scheduling (APS) solutions. These applications help companies make better decisions faster, addressing global supply chain design and sourcing strategies, transportation planning, and the optimal flow and placement of inventory across the end-to-end supply chain. Contd.

5. IBM ILOG SCM Applications (Contd.) Contd.

6. IBM ILOG SCM Applications (Contd.)

7. IBM ILOG LogicNet Plus XE IBM ILOG LogicNet Plus XE is an off-the-shelf, easy-to-use decision support solution for managing global supply chains. It facilitates quick analysis of the tradeoffs between production, warehousing, transportation costs, carbon footprint, and service requirements; as well as the calculation of the optimal network configuration for different cost and service objectives. A model’s solutions can be viewed, compared and easily exported to tables and graphs for presentations and further analysis.

8. Business Benefits Manage business growth: Evaluate the supply chian network and determine where and when new facilities are needed. Reduce overall supply chain costs by 5 to 15%: Rationalize global distribution and manufacturing networks to help identify the most cost-efficient supply chain network. Contd.

9. Business Benefits(Contd.) Improve customer service: Optimize the balance between shipping and warehousing costs and service level requirements for improved product delivery times. The ability to respond to customer pressures and competitive threats is key to revenue growth. Consolidate after mergers or acquisitions: Consolidate distribution and manufacturing networks following mergers or acquisition activities to more quickly realize your return on investment (ROI). Contd.

10. Perform contingency planning: Plan for unexpected events in the supply chain by showing the exact impact on costs, service levels, revenues and profits. Interactively develop and evaluate alternative plans to mitigate overall supply chain risk. Perform what-if scenario analysis: Understand the impact of adding or removing plants and warehouses on the distribution and manufacturing network. Business Benefits(Contd.) Contd.

11. Optimize production sourcing decisions: Optimize the decision management process concerning where to produce or source products based on a total supply chain cost analysis. This facilitates objective cost-based decisions and monthly or quarterly changes, based on market demands. Plan for a tax-efficient supply chain: Maximize after-tax profit by balancing the costs of operating in different locations with the applicable tax rates. Take advantage of low tax regions to increase profit. Business Benefits(Contd.)

12. Key Features All-in-one packaged network design and planning. Complements existing enterprise resource planning (ERP) and material resource planning (MRP) infrastructure. State-of-the-art ILOG CPLEX optimization technology. Model and optimize the supply chain carbon footprint to meet government and corporate regulations. Model and optimize both distribution and manufacturing networks. Contd.

13. Key Features (Contd.) Supports optimization of a tax-efficient supply chain. Flexible mapping and powerful reporting capabilities. Intuitive user interface. Easy link to Microsoft Excel and Access for data importing, exporting and manipulation. Training and baseline results are typically completed within 90-days.

14. Network Design Methodology Problem formulation Model design and Data aggregation Data collection and Loading Model Analysis Presentation of Results

15. Solutions

16. Strategic Supply Chain Business Questions IBM ILOG LogicNet Plus XE helps companies address many key business questions, including: What are the optimal number, location and capacities of suppliers, plants and production lines and processes? What are the right number, location and size of consolidation centres, forward distribution centres (DCs) and cross-docks? What is the best assignment of customers and products to DCs? What will be the impact of changes to production and warehousing capabilities on cost and service? Contd.

17. Strategic Supply Chain Business Questions (Contd.) What is the best assignment of products to my production facilities? What is the best balance of the tradeoffs for the following: Inbound and outbound transportation costs, duties and tariffs Fixed facility costs Variable production and warehousing costs Costs and service levels Carbon footprint

18. System Requirements Operating System Windows 2000 Professional / XP Professional / 2003 Server Minimum system requirements: Pentium 1.5 GHz processor 512 MB RAM 5 GB of hard drive space; Microsoft .Net Framework 2.0 LNP 6.0 XE runs on individual PC or via Terminal Services. Note: These requirements are highly dependent upon the number of users, frequency of use and the size of planning models used.

19. Recommendation AFL Pvt. Ltd uses IBM ILOG LNP and IE tools for its supply chain solutions team. Mr. RavinderBajaj, Head – Solutions and SCM Strategy at AFL’s Logistics Division said: “AFL chose IBM’s iLOG software for several reasons, chief among them – robustness, post-purchase support and a clever user interface that makes data modelling both simple and secure. This unique combination of AFL’s domain expertise in logistics and iLOG’ssuperior design and modelling capabilities, have helped us unlock significant value in our clients’ supply chain metrics.” News Source: http://www.indiaprline.com/2010/05/24/afl-chooses-ibm-ilog-for-global-supply-chain-management/

20. References Training Material for IBM ILOG LogicNet Plus 6.0 XE https://www.ibm.com http://www.ilog.com http://blogs.ilog.com/ http://supplychain.ilog.com http://www-01.ibm.com/software/integration/sca/logicnet-plus-xe/

21. Thank You!