When you look at traditional ERP or management systems, they are usually used to manage the supply chain originating from either the point of Origin or point of destination which all our primarily physical locations. And for these, you have several processes like order to cash, source to pay, physical distribution, production etc.

1. DRIVING VALUE WITH BIG DATA
END TO END SUPPLY CHAIN CONTROL TOWER
Tarun Rana| Henkel | Amsterdam, November 2020

2. WHO WE ARE
LEADING POSITIONS IN CONSUMER AND INDUSTRIAL BUSINESSES
2
Beauty CareAdhesive Technologies Laundry & Home Care

3. WHO WE ARE
LAUNDRY AND HOME CARE SUPPLY CHAIN
3
>7,000 colleagues / 33 factories / 47 distribution centers

4. DIGITAL TRANSFORMATION
CURRENT STATE OF I4.0 PENETRATION
> 4.000
Flight Decks Users with >
28.000 accesses/d
> 50
Smart robots: Always-on
and connected
4.500
Always-on and
connected IoT devices
> 10 Billion
Datapoints processed
per day
> 15 TB
Data volume processed
per day
> 25 MEUR
Savings/a from I4.0
applications in 2020
4

5. DIGITAL TRANSFORMATION
BROAD TECHNOLOGY / USE-CASE LANDSCAPE…
5
End-to-End Connectivity
Unique Product Identification / Digital S&OP/S&OE / Track & Trace / Master Data
Analytics
Quality goes Digital
Safety goes Digital
Digital Enzyme Monitoring
Demand Sensing
Robotics
Smart Ro-/Cobots
AGV and Drones
WH Automation
Additive Manufacturing
Visualization
Mobility Apps
Digital SIM Boards
Online KPI Tracking
Cost to Serve
Sensorics
Real-time Metering
Next Generation In-line Quality
Real-time Filling Line Efficiency
Predictive Maintenance

6. DIGITAL TRANSFORMATION
… EMBEDDED INTO COMPREHENSIVE ECOSYSTEM
6
Transparency & Visibility
IT Architecture & Systems
Supplier Plant
Distribution
Center
Customer
Analytics Robotics VisualizationSensorics
Digital Backbone: End-to-End Analytics
Agile Transformation Culture
“Horizontal” + “Vertical” approach

7. DIGITAL BACKBONE
THE DATA LAKE OF MANUFACTURING
7
2013: Kick-off; first sites connected NOW: ONE!Global Solution
All sites connected worldwide
§ > 4,500 IoT devices deployed
§ > 250 online efficiency systems
§ > 80 quality systems
§ > 10 machines with live streaming
§ > 500 automated real-time reports
§ > 50 ML pipelines running in Cloud
LIVE

8. SENSORICS
REAL-TIME METERING
8
Backbone of Henkel's success in
Supply Chain sustainability
§ Flexible installation with high data
visibility, easily expandable to
new factories/production areas
§ > 3,500 sensors (> 4,000 by 2020)
§ > 1 million data points per day
§ Scope: Global
Maturity: Full deployment
Smart Sensorics Applied to Benchmark Consumptions Across all Processes
Real-time monitoring and benchmarking resulting in year on year savings
3%
6%
9%
12%
15%
18%
15% 17% 18%1%
6%
7%
9%
9%
12%
14%
16%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Base Improvement Increment via Digital
Introduction Online
Energy Metering
Energy savings per year (L Energy KPI [kWh/t])
* LBE

9. SENSORICS
DIGITAL SPRAY TOWER PROCESS
9
Significant lever on further reducing energy KPI and ensuring safe operations
§ Spray Tower as the biggest internal
single energy consumer
§ Process complexity, various impact factors
on efficiency and quality
§ Expert system to identify deviation from
best practice operating point
§ Scope: Global
§ > 85% of all towers (100% by 2020)
§ Scope: Global
Maturity: Roll-out
Process Control Parameter Streaming Building Global Spray Tower Expert System
Ring Channel Temperature
Filter Temperature

10. SENSORICS
PREDICTIVE MAINTENANCE
10
§ Detection of known fingerprints of failure for
any AC motor
§ Provision of early warnings in case of
detection of anomalous patterns
§ Automated analysis based
on machine learning algorithms
§ 2 factories under implementation in WE
§ Scope: Global
Maturity: PoC
Online Condition High Frequency Monitoring for AC motors
Increase overall equipment efficiency by the avoidance of failure

11. ANALYTICS
DIGITAL FORMULA FINGERPRINTING
11
§ Improve raw material yield, focus: surfactants
§ Analytical capabilities limit specification precision
§ Future: reduce specification range by factor 3
through smart algorithms
§ Opportunity: Lower target values
§ 3 spectrometers
§ 50 thousand data points per day
§ Scope: Partial
Maturity: Pilot
Product Digitalization with Unique Fingerprint Through IR Technology and Algorithms
Library of products and apps allows to determine origin of products at anytime

12. ANALYTICS
POUCH MONITORING SYSTEM
12
§ Continuous monitoring of machine parameters
§ Real-time evaluation and improvement of the in-line rejection
mechanism
§ Supporting best-in class fully automated quality control
§ Reduction of scraps and production waste
§ Scope: Partial
Maturity: Roll-out
High resolution camera picture of every pouch for in-line high speed quality control
Next generation in-line quality control increasing equipment efficiency

13. ANALYTICS
QUALITY GOES DIGITAL
13
§ Online and real-time analytics of Quality
parameters
§ Key quality KPIs (QIB/FTR) online
§ Reduce non-conformities in production
§ Ensure compliance and performance of
suppliers
§ Scope: Global
Maturity: Roll-out
Advanced analytics and real-time KPI tracking to lower Total cost of Quality
One view on harmonized Global Quality lowering customer complaints

14. ANALYTICS
DEMAND SENSING
14
§ Forecast improved by pattern-recognition
algorithms
§ Technology integrated in legacy planning
environment
§ Processed demand signals predict future
order pattern
§ Point of Sales data ingestion for improved
accuracy
§ Scope: Partial
Maturity: Roll-out
Machine Learning algorithms to better forecast demand signals
Inventory impact of -5 days, significant forecast improvement

15. VISUALIZATION
END-TO-END KPI FLIGHT DECK
15
§ Raw transactional data taken
from existing ERP system
§ Utilizing drill-down functionalities in
Tableau to quickly identify the root
causes
§ Real-time fully automated KPI tracking
§ >90 reports and dashboards Globally
§ Scope: Global
Maturity: Roll-out
Real-time analysis in the cloud with action-driven insights
Lowest granularity insights on all SC KPI’s (Cash, Cost, Service)

16. END-TO-END CONNECTIVITY
UNIQUE PRODUCT IDENTIFICATION
16
§ Digital unique product identification
§ Track and trace along the entire supply
chain
§ Technology fulfills EU legal requirements
as of 1.1.21 (Unique Formula Identifier)
§ Technology: in-line label print and scan
§ > 100 currently being installed
§ Scope: Partial
Maturity: Roll-out
Serialization of products for end-to-end Track and Trace
Product serialization cradle to pantry fulfilling full legal compliance

17. END-TO-END CONNECTIVITY
CAPACITY & PRODUCTION PLANNING INTEGRATION
17
§ Inaccuracies in planning process significantly impact Supply
Chain performance
§ Overstated efficiencies lead to
delivery delays and service level losses
§ Understated efficiencies lead to
high cost and wrong invest decision
§ Closing loop to account for short term but also mid to long
term portfolio effects
§ Positive impact on all key Supply Chain KPIs
§ Scope: Global
Maturity: Pilot
Closed feedback between ERP and MES synchronizes shopfloor and planning online
E2E Supply Chain steering based on facts, not assumptions

18. END-TO-END CONNECTIVITY
MASTER DATA CONTROL TOWER
18
§ End-to-End process visualization to
improve NPI time-to-market
§ Data integration from several project
management systems
§ Perform continuous runtime analysis,
bottleneck identification, portfolio
complexity analysis and performance
assessments
§ Scope: Global
Maturity: Roll-out
New Product Introduction, Faster Time-to-Market
Improve NPI Time-to-market by 30% from go zero to market launch

19. END-TO-END CONNECTIVITY
COST TO SERVE
19
§ Fully transparent and digital tracking of customer
ordering patterns
§ Prescriptive analytics on improving supply chain
efficiencies
§ Customer scorecard (including sustainability impact) to
support collaboration and projects alignment with our
customers
§ Scope: Partial
Maturity: Roll-out
Advanced analytics to better understand our customers ordering behaviour and steer L6/L11
Cost improvements on individual cost drivers in outbound supply network

20. END-TO-END CONNECTIVITY
DIGITAL S&OP / S&OE
20
§ Establish Tableau as data visualization layer to drive S&OP to
the next level
§ Generate online insights to increase agility & responsiveness
to market needs
§ Forward-looking dashboards to support decision making,
identify & close gaps between reality and strategy
§ Scope: Global
Maturity: Roll-out
Effective S&OP drives business success by Actualizing Strategy via Operations
Central tool utilized by cross functional teams to execute S&OP cycle

21. END-TO-END CONNECTIVITY
CONSUMER BUYING BEHAVIOUR
21
§ Digital solution to support cross-
functional teams, especially during
Covid-19
§ Real-time consumer buying trends
§ Advanced pattern recognition
§ Early signals for us in case of significant
changes
§ Scope: Partial
Maturity: Roll-out
Utilizing POS data from customer to understand our consumers buying behaviour
Utilizing big data capabilities for direct “touch” with consumers!

22. IT SYSTEMS & INFRASTRUCTURE
HENKEL DATA FOUNDATION AS DATA LAKE
22
Virtual Infrastructure
Continuously developing and connecting physical and virtual infrastructure
Front End Physical Infrastructure
HDF
Azure
Data Lake
Lomazzo
St. Louis
AMS
Ankara

23. AGILE TRANSFORMATION CULTURE
ORGANIZATION DEVELOPMENT AND TRANSFORMATION STEERING
23
§ Simple governance: Small Int’l team + 50 Local
Digital “SPOCS”, remote meeting every 6 weeks
§ Bottom-up (ideas, pilots, roll-out) and
Top-down (strategy, technologies, standards)
§ Upskilling of organization e.g. 20 webinars,
Global academy, on-the-job, digital capability
framework
Systematic synchronization of technological and organizational development
Leveraging networks in an efficient and agile way

24. DIGITAL TRANSFORMATION
PARTNERS: BROAD SCREENING AND SMART SELECTION
24
Technology Partners Conference
Long Term Relationship
Universities
Consultants
Service Partner
Analytics Partners

25. SUMMARY & OUTLOOK
25
§ Applications across SC pillars deliver significant returns
§ Impact areas are supply operations, planning, logistics, inventories, production,
sustainability, safety, quality
§ Increasing integration of “stand-alone” applications accelerating benefits
§ Constant workforce development needed to exploit full benefits of technology
§ Transform talent management and weave it into the fabric of the business

26. THANK YOU

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