Today's supply chain processes are inside-out. Outside-in processes, using channel and market data, improve the time to respond. This presentation reflects two years of testing using machine learning to understand the impact on the bullwhip effect and Forecast Value Added.

1. Imagining Supply Chain 2030
GLOBAL SUMMIT

2. o9 Solutions, Inc. Confidential and Proprietary. Your use of these materials is governed by the terms of your written agreement with o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.
o9 Solutions, Inc. Confidential and Proprietary. Your use of these materials is governed by the terms of your written agreement with o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.
Helping supply chain leaders to
change their stripes
Project Zebra

3. o9 Solutions, Inc. Confidential and Proprietary. Your use of these materials is governed by the terms of your written agreement with o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.
Why Project Zebra?

4. o9 Solutions, Inc. Confidential and Proprietary. Your use of these materials is governed by the terms of your written agreement with o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.
What Is Project
Zebra?
4
Project Zebra is an open-innovation and
collaborative effort to define outside-in
processes and redefine decision support
technologies.
• Kick-off: November 2020
• First phase: Chartered advisory group
02/21-11/21
• Training: 01/22-03/22
• Second phase: Second advisory group
03/22-present
• 09/14-16: Executive Retreat
• Then ???

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BSH Case Study

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BSH Latency
Distortion Market Latency Demand Latency Process Latency
49% 7 months 2 weeks 4 weeks

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Input Engine Plan
Historic View

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Data
Multiple Inputs
Changing in
Relative
Importance
Engines
Plans
by
Role
Role Based
Outputs
Planning Master Data
Outside-in View

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Bi-directional Orchestration
Orchestration
Channel Sensing
Sensing Supply Sensing
Variability: Cycles, conversions, and grades
Growth
Customer
Service
Margin
Inventory
Turns
Safety
Return on
Invested
Capital
Balanced Scorecard
Listening Post
Pattern
Recognition of
Channel Data
Interest Social
Graph Mining
Contract
Manufacturing
Alternate
Sourcing
Alternate Bill of
Materials
Bi-Directional Orchestration
Architect/Design
Planning Master Data
Baseline Demand Plan Feasibility
Events
Risk Sensing
Demand
Shaping
Portfolio Shifts
Quality
Sensing
Logistics
Sensing
Leadtime
Variability
Commodity
Price Shifts
Platform
Changes
Social
Sentiment
Weather
Conversion
Rates
Yield
Maintenance
Schedules
Reverse Bill of
Materials
Alternate
Routing
Factory
Reliability/Capabilities
Alternate
Distribution
Alternate
Channel
Images Market
Shifts
Weather
Pattern
Recognition
Images
Postponement
Calendar(s)
Replenishment
Policies
Allocation
Market-Driven Knowledge Graph

10. Imagining Supply Chains in 2030
IMAGINE 2022
LKQ Network Diagram
Central Warehouse
LT= ~1 day
Branch1
Branch2
Branch3
• Baseline Forecast : Generated for individual
branches based on historical Sales from their
branches
• Net new requirements are generated based on
the
• available inventory at Branches
• In transit inventory to Branches
• Open PO, yet to be shipped by the CDC
• Replenishments are done when the on-hand
falls below the Re Order point and up to the
Max.
• Min(ROP) = Safety stock + Demand over
lead time
• Max = ROP + EOQ/OOG

11. Imagining Supply Chains in 2030
IMAGINE 2022
LKQ Demand Insights
LKQ o9 Enterprise o9 Market Driven
Inputs Shipments Sales Invoices Sales Invoices + Market
Signals
Demand Latency Unknown Unknown ~6 weeks
Forecast Value Added
(FVA)
8% 9.9% 17.3%
Forecast Bias Positive Negative / Balanced Balanced
Bullwhip Amplification 48% 52% 37%
COV Analysis Insights:
● Item/Branch locations is not forecastable
● o9 outputs improved by using COV analysis
to forecast in the hierarchy

12. Imagining Supply Chains in 2030
IMAGINE 2022
Lead Time Analytics (all SKUs combined)
Period –2019 to Q1 2022

13. Imagining Supply Chains in 2030
IMAGINE 2022
LKQ Supply Insights
LKQ o9 Enterprise
(Sales invoices)
o9 Market Driven
(Purchase Order Request
Receipt)
Lead time variability Not Utilized Initial Load Synchronized Planning
Master Data
Bullwhip Amplification 48% 52% 37%

14. Imagining Supply Chains in 2030
IMAGINE 2022
Optical Communications
14
 Global leader in connectivity solutions for carrier, enterprise
and wireless networks, and the expanding frontier of
consumer electronic devices
 For more than four decades, our innovations have
continually increased the performance, lowered the cost, and
improved the installations of optical networks
 Products include:
 Corning® ClearCurve® – Bend-resistant fiber to provide
reliable transmission in complex installation environments
 Corning® ONE™ Wireless Platform – All-optical solution that
converges an enterprise’s cellular, Wi-Fi, and Ethernet into a
single unified infrastructure
 EDGE8™ Solutions – Reduce space-requirements and
increase transmission speeds of data centers

15. Imagining Supply Chains in 2030
IMAGINE 2022
Optical Wireless
Multidwelling Units
Data Centers
Cities
Central Office
Or Headend
Hotels
Public Venues
Small Cells
Single-Family
Homes
Rural Areas
WE BUILD CONNECTIONS SO THE WORLD CAN MAKE THEM.

16. Imagining Supply Chains in 2030
IMAGINE 2022
Optical Wireless
Multidwelling Units
Data Centers
Cities
Central Office
Or Headend
Hotels
Public Venues
Small Cells
Single-Family
Homes
Rural Areas
WE ARE FOCUSED ON THE FASTEST-GROWING SEGMENTS
Fixed Access Networks
FTTH and MSOs
In-Building Networks
LAN, DAS, Small Cells
Data Centers
Hyperscale and Enterprise
Wireless Networks
4G  5G

17. Project Zebra Pilot
Deana Denton
Director of IT Strategy: Digital Supply Chain
Services, Corning
Nicole Miara
Digital Transformer
LKQ Europe
Panel

18. Imagining Supply Chains in 2030
IMAGINE 2022
Buses leave at 6:15 for the Air and Space Museum

19. Join the Guiding Coalition for Change.