Supply Chain Tower - The smartest way to master your Supply Chain

1. Supply Chain Control Tower – The smartest way to master your Supply Chain aioneers & IBsolution

5. Agenda 1. Introduction 2. Why do we have this Webinar? 3. What is a Supply Chain Control Tower? 4. What's in it for me? 5. How does it look like in real life? 6. How to close the Supply Chain loop? 7. Q&A

6. © 2023 aioneers | 6 aioneers – Building high-performing supply chains Customers in various industry segments 140 employees founded 2020 offices in Mannheim & Pune AIO Supply Chain Command Center Insights Control Tower • Forward-looking, cross-functional transparency of the end-to-end supply chain • Continuous supply chain diagnostics, monitoring and surveillance Intelligence Apps • Forecasting, optimization & scenario simulations • Autonomous findings generation & recommendations Impact Execution Management • Reliable execution of improvement initiatives and decisions • Organizational learning & continuous improvement of the supply chain Use Cases Supply Chain planning / S&OP E2E supply chain visibility Intelligent Order Fulfillment Decarbonization Inventory management Automated supply chain workflows Circularity Availability & allocation Manufacturing Logistics & transportation Purchasing PLM & Product Portfolio Mgmt. Awards and certifications x o9’s Most Valuable Partner Award 2022 elog@istics award 2023

7. © 2023 aioneers | 7 What is a Supply Chain Control Tower? What's in it for me? How does it look like in real life? How to close the Supply Chain loop? Questions you might answer after this Webinar Why do we have this Webinar?

10. © 2023 aioneers | 10 A new paradigm is deriving from the VUCA world Corona Transportation Shortages Ukraine war Fukushima Climate change Migration Digitalization Cyber threats Compliance Consumer awareness Inflation & volatility Source: Gartner 36% 35% 35% 31% 26% Support New Business/ Operationg Models Improve Resiliency/Agility Enhance Decision Making Drive Efficiency Improvements Address Labor Constraints Top 5 ranked factors motivating Supply Chain investments in emerging Technologies

11. © 2023 aioneers | 11 Challenges deriving from this new paradigm SUPPLY CHAIN SHORTAGES Supply-side shortages are responsible for disrupting the supply chain, leading to delays and stock-outs that adversely impact your business. INSUFFICIENT ORDER FULFILMENT Lack of forward-looking transparency on product availability and inability to quickly analyze impacts of short material supply degrade customer service levels. NO E2E VISIBILITY & NO REAL TIME DATA Decision-making effectiveness is hampered by the unavailability of an end-to-end digital supply chain twin. INACCURATE INVENTORY MANAGEMENT Excess or inadequate inventory levels from supply chain uncertainties, result in tied up capital, increased variable costs or stock-outs. LIMITED SUPPLY CHAIN RESILIENCE The inability to adjust supply chain processes in response to unforeseen events can result in reduced agility, making it difficult to stay competitive and meet customer demands. LACK OF INTELLIGENT ALGORITHMS & ANALYTICS High complexity of supply chain settings and manual decision- processes lead to long reaction times and low-quality results.

13. © 2023 aioneers | 13 Setting the scene: Taxonomy Source: Gartner, aioneers Supply Chain Control Tower ... is a operational framework combining people, process, data and organization, facilitated by appropriately combined technology elements. It establishes a central hub to capture and use data - structured and unstructured, internal and external - to provide enhanced visibility, predictions and suggestions for short-term and midterm decision making. Digital Supply Chain Twin ... is a digital representation of the physical supply chain that can be used to create plans and make decisions. It replaces the traditional supply chain model that sits at the heart of any planning-related SCM solution with a model (twin) that is built from granular data and is near real time in its reflection of the real world. Supply Chain Command Center ... is a tool consisting of existing and new technologies (such as graph technology, advanced analytics and AI/ML) combined with near-real-time data from the business ecosystem. It facilitates advanced data processing and allows for the delivery of use-case- specific, insightful information, predictions and suggestions that are relevant and adaptive to user experiences based on more connected supply chain data. one-off/ explorative periodic/ monthly/ weekly operational/ daily (near) realtime/ event driven automated respond optimize visualize predictive prescriptive descriptive Level of decision making

14. © 2023 aioneers | 14 The evolution from individual reporting approaches to an E2E Digital Supply Chain Twin allows to make fast and effective business decisions Digital Supply Chain Twin 2 Supply Chain Control Tower Supply Chain Command Center 1 ▪ Transformational concept with ambition ▪ An end-to-end comprehensive single model ▪ Granular & near-real-time data from multiple sources with association & advanced analytics ▪ Convergence between planning and execution ▪ horizontally and vertically well-aligned high degree automated ▪ Cross-functional and highly use-case-specific models ▪ Near-real-time data, advanced and connected data processing ▪ Orchestration and execution of processes across distributed functions and systems ▪ Static and domain-specific models for functions ▪ Transactional data in daily or monthly basis ▪ Newsroom-like environments, focused on visualizations and dashboards ▪ No central governance ▪ No integration ▪ No sufficient visibility Individual Reporting Approaches Data analytics AI/ML-based Simulation / scenario modelling Dashboards & reporting 3 0 People centric Process centric Decision centric Source: Gartner, aioneers

15. © 2023 aioneers | 15 Typical Use Cases E2E SUPPLY CHAIN VISIBILITY Gain end-to-end transparency across your supply chain and break down organizational silos to identify issue root causes through obtaining different functional vantage points. INVENTORY OPTIMIZATION Maintain inventories at the right level to buffer the supply chain against peak demand and low supply – ensuring overall low inventory and high product availability. SALES & OPERATIONS PLANNING Integrate sales and marketing planning on volume and value with operational planning to optimally balance cash, cost and service. INTELLIGENT ORDER FULFILMENT Ensure high product availability, supply chain flexibility and reliable deliveries to customers by breaking down bill of material structures and connecting data from suppliers to customers in real time. DECARBONIZATION Determine your corporate carbon footprint and decarbonize your supply chain to save the planet and ascertain compliance with latest regulations.

17. © 2023 aioneers | 17 Some numbers... 2x FASTER TIME-TO- MARKET 90% SLOW MOVER REDUCTION €1mio INVENTORY REDUCTION ANNUAL SAVINGS PER PRODUCTION PLANT €30mio 40% MASTER DATA QUALITY INCREASE 20pp FORECAST ACCURACY INCREASE

18. © 2023 aioneers | 18 … and effects SINGLE SOURCE OF TRUTH CLOSED-LOOP PERFORMANCE MANAGEMENT AI-BASED DIAGNOSTICS AND RECOMMENDATIONS - INTELLIGENT DECISION MAKING END-TO-END DATA INTEGRATION & TRANSPARENCY FOUNDATION OF THE SUPPLY CHAIN TWIN CROSS- FUNCTIONAL PROBLEM SOLVING

20. © 2023 aioneers | 20 The true value of a control tower is not just in analytical insights, but in deriving corrective measures and executing them to achieve real E2E improvement. Four capabilities are needed to realize the control tower Picture source: https://img.welt.de/img/regionales/frankfurt/mobile117113055/5802503767-ci102l-w1024/Frankfurter-Tower-hat-alles-im-Blick.jpg Control Tower Team Sessions 1. Regular cross-functional sessions 2. Current status and problems 3. Measure-based problem-solving resolution 4. Root causes for tactical improvement 5. knowledge management and learning 3 Improvement Initiatives & Business Impact 1. Rule-based recommendations 2. Execution management 3. Cross-functional way of working 4. Regular structured implementation reviews 5. Fully digital execution support 4 Technical Enabler 1 1. Consistent accurate data 2. Continuous, near real time data updates 3. Intuitive dashboard design 4. Standardized and self-service reports 5. Digital execution to manage improvement E2E Capability Building 2 1. E2E supply chain awareness 2. Aiming for E2E “global” optimum 3. Data-centric mindset 4. Cross-functional leadership commitment 5. Continuous improvement … it’s like an Airport Control Tower: not just noticing & monitoring the planes but steering them to achieve a desired outcome

21. © 2023 aioneers | 21 Technical Enabler & E2E Capability Building Structural concept example of a E2E Supply Chain Control Tower Top-Level KPIs Analytics Level E2E Prozess Assembly Scheduling Network Planning Product Development E2E / Cross-functional: Cost & Inventory Order Intake Inbound Logistics Materials Mgmt. Shipping Production / Assembly Vendor Scheduling Production Scheduling Packaging OTD / OTIF Delivery performance report 3PL costs & performance 3PL Monitoring Extraordinary Costs Inventory and Coverages Direct & indirect workforce Inventory waterfall / cockpit Material Re- Routing & Material Overview Chargeback Report Inventories vs. air freight Supplier Management OTIF / Supplier Performance Critical Supply Materials Supplier Rating Execution: Escalation management Measures Level Execution: Cost aviodance Execution: Inventory reduction Utilization OEE Loading and variability Availability, Performance, Quality Execution: Micro-stops elimination … … … … … … … … … … … … Recommend -ation Level 1 2 4 3

22. © 2023 aioneers | 22 Control Tower Team Sessions: Vertical escalation logic from operative reality to strategic steering Monthly Control Tower Meeting ▪ Operational work ▪ Prioritization of daily tasks ▪ Escalation if needed ▪ Cross-functional resolution of issues ▪ Root cause identification and tactical improvement measures ▪ Mid- to long-term decisions ▪ Integration into S&OP to optimize balance of supply and demand ▪ Performance tracking Escalation Resolution Escalation Resolution Daily Supplier Mgmt. Daily Shipping Daily Production Daily Assembly Scheduling Weekly Control Tower Meeting 1 2 4 3

24. © 2023 aioneers | 24 Closing the supply chain loop with the AIO Supply Chain Command Center Intelligence Apps Diagnostics & recommendations Forecasting, optimization & scenario simulations Insights Control Tower Forward-looking transparency Cross-functional problem solving Impact Execution Management Initiative management & reliable execution Active learning & improvements 4. Prescriptive Analytics Decide how to make it happen and track progress and results 5. Active Learning Learn from the results and build-up a supply chain knowledge repository Predict what will/shall happen in the future 3. Predictive Analytics Analyze the root causes and effects of what happened 2. Diagnostics Understand what has happened – after the fact and in (near) real-time 1. Descriptive Analytics 1 2 4 3

29. © 2023 aioneers | 29 Key learnings 4 CORE CAPABILITIES INFINITY LOOP OF LEARNING AND IMPROVEMENT THE NEW PARADIGM: END-TO-END SUPPLY CHAIN VISIBILITY DIFFERENT MATURITY LEVELS USE CASES & BENEFITS CORRECTIVE MEASURES AND EXECUTION

30. Weitere Informationen finden Sie auf www.ibsolution.com/academy © 2023 - IBsolution GmbH 30 Unser Service für Sie: Ab morgen finden Sie dieses Webinar und die Folien unter: ibsolution.com/academy/webinar-aufzeichnungen Warum nicht auch Ihren Kollegen zeigen? Nächstes Webinar: 23. Mai 2023: Welche Security-Maßnahmen Unternehmen jetzt für ihre SAP- Systeme ergreifen müssen Anmeldung unter ibsolution.com/academy/webinare Subscribe to our Channel

Supply Chain Tower - The smartest way to master your Supply Chain

Supply Chain Tower - The smartest way to master your Supply Chain

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Supply Chain Tower - The smartest way to master your Supply Chain