Who wouldn’t prefer to wear a custom-tailored suit over something bought off the rack? Especially if it can be had for the same price, or even cheaper? In much the same way, we find that companies have a taste for supply chain analytics that are carefully tailored to their own business, quirks and all. In this talk we will discuss supply chain analytics broadly, provide some examples, and then address conditions when a custom approach to creating a supply chain decision support tool makes good sense.

2. #AnaplanHub16

3. Smarter planning apps
for numbers-driven
companies

4. #AnaplanHub16
Why Bespoke
Supply Chain Analytics?
Tom Davis
May 10, 2016

5. Why Bespoke Supply Chain Analytics?
 Introduction
 The Supply Chain Analytics Domain
 A Quick Look: Analytics in Practice
 Bringing Analytics to the Organization
 The Anaplan Connection
5/10/2016© 2016 End-to-End Analytics, LLC 5

6. 5/10/20166© 2016 End-to-End Analytics, LLC
Founded in 2005
Based in Palo Alto, CA
40+ professional staff
12 Ph.D.’s from top universities
Resources in CA, MI, MA, Peru, Brazil
Over 75 clients
More than 500 projects to date
30+ published articles
More than 15 patents
End-to-End Analytics: Who Are We?
Company
Team
Work
Specialist consulting firm focused on supply chain analytics
Previously employed by top companies
Articles published in leading publications
Project work across leaders in many industries
 HP
 Philips
 McKinsey & Co.
 SAS Institute
 Procter & Gamble
 Nestlé
 Networking Equipment
 Food & Beverage
 CPG
 Medical & Healthcare
 Automotive
 Semiconductors
 Cosmetics
 Internet Search

7. Why Bespoke Supply Chain Analytics?
 Introduction
 The Supply Chain Analytics Domain
 Planning Framework
 Data & Analysis Framework
 Roles
 A Quick Look: Analytics in Practice
 Bringing Analytics to the Organization
 The Anaplan Connection
5/10/2016© 2016 End-to-End Analytics, LLC 7

8. What Does “Analytics” Mean?
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What should we do?What will happen?What happened?
Descriptive
Predictive
Prescriptive

9. The Classic S&OP Framework
Demand-Supply
Matching
Financial
Forecasting
Inventory
Targeting
Capacity
Planning
Demand
Planning
Supply
Planning
Production
Scheduling
Material
Planning
Core of S&OP
Holistic View of S&OP
5/10/2016© 2016 End-to-End Analytics, LLC
Promotion
Planning
9

10. Planning Solution Architecture
5/10/201610© 2016 End-to-End Analytics, LLC
Data Layer
Analytics Layer
Interaction Layer
Visualization Layer
ERP
EDW
• Disseminating Information
• Dashboards / Consensus Meetings
• Exception Management
• Data management
• Data preparation
• Different from a data warehouse
• Making & Capturing Decisions
• Data Manipulation (“Pivoting”)
• Calculation engine
• Analytics tuning / solution development

11. Demand Analysis vs. Demand Planning
5/10/201611
Step Analysis Planning
Validate and Prepare
Data
• Access to EDW
• Ability to insert and manage new signals
• Automatically loaded into a DP tool
• Metrics and charts to validate data
Aggregate and
Interpret
• Ad-hoc analysis and reporting for new
signals
• Metrics and charts that support aggregation
and drill-down
Explore • Sandbox to conduct ad-hoc analysis and
reporting for new signals
• Comparison of multiple vetted signals in a
single view
• Exception dashboards
Adjust • Adjust the models • Overwrite the default forecast
Define Modeling
Strategy
• Sandbox to conduct segmentation strategies • Exception dashboards to determine when to
override
Create & Run
Forecast Models
• Sandbox to build models on the fly • Exception dashboards to determine when to
override
Validate Forecasts • In and out of sample tests • Metrics and charts that support aggregation
and drill-down
• Comparison against other signals and the
business plan
Publish Results • Methodology for implementation in DP tool • Actual forecast
© 2016 End-to-End Analytics, LLC

12. Why Bespoke Supply Chain Analytics?
 Introduction
 The Supply Chain Analytics Domain
 A Quick Look: Analytics in Practice
 Bringing Analytics to the Organization
 The Anaplan Connection
5/10/2016© 2016 End-to-End Analytics, LLC 12

13. Forecast “Reality Check”
5/10/2016© 2016 End-to-End Analytics, LLC
Past Sales forecasts
were too high
Marketing forecast
is in line with the
statistical range.
Current Sales forecast
looks optimistic again.
13

14. Forecast Data Entry
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15. Forecast Analysis & Entry
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16. Forecast Entry
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17. Forecast Analysis & Entry
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18. Supply Planning Analytics
5/10/201618© 2016 End-to-End Analytics, LLC

19. Why Bespoke Supply Chain Analytics?
 Introduction
 The Supply Chain Analytics Domain
 A Quick Look: Analytics in Practice
 Bringing Analytics to the Organization
 Visualize the Data
 Avoid Black Boxes
 Build Your Own
 The Anaplan Connection
5/10/2016© 2016 End-to-End Analytics, LLC 19

20. Our Beliefs about Decision Support
Visual, intuitive interfaces are key
Interaction with the math is as important as the math itself
 Don’t just tell people the answer – show them why it’s the answer
Decision Support is best developed in an iterative manner
 Decision Support usually needs to be customized to your business
 Most software development is linear:
requirements – build – test – deploy
 But building good analytics needs multiple iterations:
mock-up – rapid prototype – try out and learn – revise prototype – repeat
5/10/2016© 2016 End-to-End Analytics, LLC 6

21. Avoid “Black Box” Syndrome
Many analytics projects fail because of the “black box” effect
Good visualizations are key to helping stakeholders understand the
calculations – and therefore buy in to the results
Drill Down
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Change policy and instantly see the
impact on inventory and backlog

22. Building Often Better Than Buying
5/10/201622© 2016 End-to-End Analytics, LLC
Packaged Software
Perception Reality PerceptionReality
Custom Tools Building Your Own Can
Improve the Result and
Saves Time
 Solves your problem
 No unnecessary data gathering
 No “shoe-horning” problem into
a model that doesn’t fit
 Almost as fast to build as
configuring a packaged solution
 Stakeholders understand the
calculations and buy in to the results
 Result: Better outputs and more
efficient analysis outweigh
potentially small increase in build /
configure time
Off-the-Shelf Package Myths
“One solution can solve every problem.”
“With a little training, anybody can use it.”
“It saves time.”
Configure Configure
Analyze
Analyze
Analyze
Analyze
Build Build

23. Typical Supply Chain Packages/Modules
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+ Candidate for a
tailored solution
x
Best served
“off-the-shelf”
+
++
+
+
x
xxxx
x
x
+ +
+
+
x
x

24. Why Bespoke Supply Chain Analytics?
 Introduction
 The Supply Chain Analytics Domain
 A Quick Look: Analytics in Practice
 Bringing Analytics to the Organization
 The Anaplan Connection
5/10/2016© 2016 End-to-End Analytics, LLC 24

25. 5/10/201625© 2016 End-to-End Analytics, LLC
Smarter Planning for
Numbers-Driven Companies

26. Q A