2015 06-17 - supply chaindays ibm presentation thorsten schroeer

1 © 2015 IBM CorporationThorsten Schröer, IBM

Digital Supply Chain TransformationThe IBM Case Study

Thorsten Schröer – Director Electronics Industry EuropeJune 17/18 2015Heidelberg/Germany

#ThorSchroeer

2 © 2015 IBM CorporationThorsten Schröer, IBM

Overview IBM Supply ChainOverview IBM Supply Chain

The Transformation JourneyThe Transformation Journey

SummarySummary

3 © 2015 IBM CorporationThorsten Schröer, IBM

IBM Supply chain has been also…….

Printers Retail StoreSemiconductor

System x PC & LaptopHarddisk

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…and is now….

Mainframe / Z

Storage Disk

Tape Library

+20k People

Software

Power

5 © 2015 IBM CorporationThorsten Schröer, IBM

Procurement$70B + $20BSpend for IBM & Clients

$7B Procurement

Savings

18K+ Suppliers

>99% Online Purchase

Orders

>96% Online Invoices

Product Support

390 Hardware Launches

5K Software Launches

96% Order to Delivery

Asset Management

$22B Gross Assets

875 Strategic

Outsourcing Clients

Operations

70 Countries

$99B Cash Collected

9 Customer Solution Centers

1 Single 4PL

9 Mfg Plants

Hardware Software Services SolutionsISC Enabling Business Operations Across the IBM Value Chain

Smarter Supply Chain

32 Smarter Analytics

Projects

Over 3.9M Visits to

eTools

73 Patents

Client Engagement

60+ ISC Supported

Wins

200+ ISC Experts

Participated

Sales Transaction Support

3.6M Invoices Issued

684K Services Request

Completed

Divestitures & Acquisitions

10+ Managed

IBM Integrated Supply Chain (ISC) at a Glance

6 © 2015 IBM CorporationThorsten Schröer, IBM

2005-2010Globally Integrated

Enterprise

2010-2014Smarter & Transparent

Supply Chain

� Enterprise efficiencies

� Streamlined Globalprocesses

� Information sharing

� Analytics & Big Data

� Transparancy

� Multi-enterprisetransformation

Evolving SCM from cost center to value center…

2015 and beyondNew Era Supply Chain

� Cloud, Mobile, Social

� Agile / Resilient

� Data Driven

� Digitally Executed

IBM’s Supply Chain… our continuous transformation journey

7 © 2015 IBM CorporationThorsten Schröer, IBM

Overview IBM Supply ChainOverview IBM Supply Chain

The Transformation JourneyThe Transformation Journey

SummarySummary

8 © 2015 IBM CorporationThorsten Schröer, IBM

Speed

Globalization

Merger / De-Merger

Internet of Things

Risk

CostMobile

Drone

3D Printing

Smart Robot Industry 4.0 / Lotsize 1

War for Talent

The Forces of Supply Chain

9 © 2015 IBM CorporationThorsten Schröer, IBM

IBM’s Supply Chain Design Principle

10 © 2015 IBM CorporationThorsten Schröer, IBM

1. Visibility

11 © 2015 IBM CorporationThorsten Schröer, IBM

Real time order status visibility and exception

alerts

Effective supplier

collaboration

IBM

Client

BusinessPartners

SuppliersImproved visibility into finished goods

inventory

Transparent operations

managementTransparent Supply Chain

Our vision is to create the most transparent supply chain in the world for predictive risk management

Intelligent Agile Operations

� Mobile-enabled

� Advanced visualizations

� KPIs with drill down, root cause analysis

� Virtual resolution rooms

12 © 2015 IBM CorporationThorsten Schröer, IBM

We maped supply chain processes into the existing framework of an Intelligent Operating Center (IOC)

13 © 2015 IBM CorporationThorsten Schröer, IBM

“Prediction is very

difficult, especially if it's about the future”

Nils Bohr, 1885 - 1962

2. Analytics

14 © 2015 IBM CorporationThorsten Schröer, IBM

12%of all available data

is being leveraged

today.

15 © 2015 IBM CorporationThorsten Schröer, IBM

We have deployed over 30 supply chain analytics solutions with $100M+/year in benefits.

16 © 2015 IBM CorporationThorsten Schröer, IBM

5 analytics solutions of high value analytics which emphasize enhanced visibility.

Risk mgt

Critical Parts Management Supply

Quality

MissingParts

Inventory

E2E Inventory Optimization / Hub Health

Clear to Build Simulation

Total Risk Assessment

Quality Early Warning System (QEWS)

1

4

2

3

5

17 © 2015 IBM CorporationThorsten Schröer, IBM

Accounts Receivable Optimization uses advanced analytics to improve revenue collections

“For IBM 1-Day DSO improvement yields$110 MM annual cash flow”

18 © 2015 IBM CorporationThorsten Schröer, IBM

3. Social

19 © 2015 IBM CorporationThorsten Schröer, IBM

Social listening for supply chain risk analytics.

Supplier IQ is fundamentally changing how IBM sourcing professionals consume & exploit data.

Relevant Unstructured /

Structured Data from Internal & External

Sources

Automated Analytics

Role-Based Dashboard

3 key use cases� “Target a Supplier” In-depth

� “Target a Category” Industry

� “Supplier On-boarding”

� Detailed 360°view

� Real time

� Savings target of 20%+

� > 700 users

20 © 2015 IBM CorporationThorsten Schröer, IBM

Critical Parts Supply after Social/Analytics deployed

21 © 2015 IBM CorporationThorsten Schröer, IBM

4. Mobile

22 © 2015 IBM CorporationThorsten Schröer, IBM

2005

2013

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IBM Transparent Supply Chain designed for an App

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So what‘s next?

25 © 2015 IBM CorporationThorsten Schröer, IBM

And next? Moving App Content from ipad to iphone to apple watch

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Watson is cognitive computing, analyses structured and

unstructured data, is self learning and answering questions

posed in natural language.

5.

27 © 2015 IBM CorporationThorsten Schröer, IBM

Why Watson in supply chain?

28 © 2015 IBM CorporationThorsten Schröer, IBM

� Optimize time with support

� Increase First Time Fix

� Optimize Onsite Repair Time

� Less machine downtime

Watson @ IBM Technical Support Service

29 © 2015 IBM CorporationThorsten Schröer, IBM

Watson @ Direct ProcurementSupplier info

Industry news

Mfg stock chart

Web news

CAPEX graph

Contracts

Alternate MPN

Cost vs. Resale

Historical spend

MPN entity details

Watson Explorer Cloud

Activities Tagging Shared Spaces

Open PO table

30 © 2015 IBM CorporationThorsten Schröer, IBM

Overview IBM Supply ChainOverview IBM Supply Chain

The Transformation JourneyThe Transformation Journey

SummarySummary

31 © 2015 IBM CorporationThorsten Schröer, IBM

4.

1. 2.

3. 5.

32 © 2015 IBM CorporationThorsten Schröer, IBM

Q & A

Thorsten Schröer – Director Electronics Industry Europethorsten.schroeer@de.ibm.com