How to Get Real Value from Real-Time Logistics Data

How to Get Real Value from
Real-Time Logistics Data
Supply Chain Visibility Webinar

Matthew Barnes
Regional Director, Integration & Analytics
Dr. Jürgen Krämer
VP, CEP & Analytics
3 December 2012

2012 Supply Chain Management Webinar Series 2

Today’s session

Matthew Barnes Dr. Jürgen Krämer
Regional Director, Vice President,
Integration & Analytics CEP & Analytics

Your customers expect reliable, on-time and in-full delivery of your products and services. See
how you can meet their expectations consistently with real-time, end-to-end visibility into
your supply chain. Attend our one-hour webinar to learn how to:

• Gain full visibility and control of your logistic operations by using real-time event monitoring
across your extended supply chain
• Reduce risks, maximize efficiency and increase agility of your order-to-delivery process by
using actionable intelligence and analytics

See how other companies are getting real value—including savings and more satisfied
customers—by using real-time logistics data. Gain insights from their order-to-delivery best
practices. Discover how instant access to meaningful event data when it matters most makes
your business more responsive and customer-focused.


One Recipe For Success
Supply Chain Companies’ #1 Priority: Customer Satisfaction

Integration

Visibility

Focus &
Simplification


What keeps a Business User up at night?

Business activities or transactions failing or taking too long

Not understanding why this is happening

Not getting automatically notified of problems

Wasting time searching multiple reports for the relevant data nuggets

No way to predict potential issues or opportunities

No way to PRO-ACTIVELY do the right thing


The Value of End-to-End Visibility
Complex business processes are supported by multiple, disconnected systems…
J

A E G I

C

B D

F H

Multiple systems with multiple stress points…

B2B CRM ERP WMS TMS

End-to-end visibility defined
From rear view to prediction

Understand
the past

Analyze events and
predict the future

Know what’s
happening
now

Automated Process Discovery

Order-to-Cash
Create Create Ship Post
Sales Order Delivery Goods Invoice

Order Clerk Warehouse Logistics A/R

Time
Customer Sales Delivery Goods Invoice
Need Issue
Order Note

Extractor

ERP,
BPMS, …
7


From indicators to root causes

Metrics

Amount Costs Risks Compliance
Times Quality Organizational Customer
performance satisfaction

Root-cause
analysis

See what’s
going on
‘in the middle’
Automated =
Process Real
Discovery
process
behavior

8


Analytics: Trends - Distribution – Dependencies

Instrumenting your supply chain
processes at key action points

Business event

Data captured
Value

Intelligence delivered
iKnow
Action
taken

• Order arrives from customer • Order stuck on credit hold Time
• Customer orders back-ordered / • Customer cancels order
out of stock product
Opportunity
• Truck at loading dock • Truck has Opportunity
Missed left the dock
Reference: Richard Hackathorn – The BI Watch: Real Time to Real Value


KNOW What Impacts Order Velocity
Order Monitoring

Proactively alert on the following conditions:
• Credit Block
• Delivery Block
• Delivery N/A
• Incorrect SKU
• Missing Quantity
• Incomplete Order


KNOW About Problems Before Your Customer Does
Process Assurance: Advance Ship Notification

• Extends to real time monitoring of ASN Acknowledgements
• Allows Production Support to Proactively contact the customer


KNOW the Impact On Your Customer
Customer Order Backlog


Useful Links: Previous Webinars and Collateral
iKnow: Know About Problems Before Your Customers Do
http://www.softwareag.com/corporate/rc/rc_perma.asp?id=tcm:16-104185

Supply Chain Visibility - Our Offer to You: Your World in 22 Minutes

Improve Business Performance with Process Intelligence

2-Minute iKnow Video on YouTube


Providing Real-Time Visibility to Assets

GPS/GPRS tags Real-time information hub
• Determines position via GPS • Collects event data from all tags
• Sends data back via device type • Business logic for event processing
and configuration • Actions, alerts in case of exceptions
• Monitors environment (e.g. • Populates event data to concerned
temperature) business services

Usage Scenarios
• Visibility • Exception management
• Visualization • Theft prevention
• Asset management • Quality of Service (QoS) monitoring
• Business activity monitoring


Better Event Management can become a Competitive Advantage

Product Product
Stock
Order inbound Invoice
item delivered
Retailer Component
Distributor
Delivery
Customs
Product
In transit cleared In
transit Advanced Part
Consumer shipping
Delivery Manufacturer
Delivery signed notice
Source material
Shipment Route
Component
created ordered
Order
created Pallet
loaded Stock
eCommerce Site Final Assembly decremented
Order Item
picked
Warehouse Warehouse item

A multitude of events across the ecosystem need to detected, integrated and processed
in order to enable an instantly responsive and proactive enterprise.


Event Streams

Stream of position reports from a truck

GPS GPS GPS GPS GPS GPS GPS GPS GPS

Stream of orders from a customer
Order Order Order Order Order Order Order Order Order

Stream of sensor readings from warehouse
Value Value Value Value Value Value Value Value Value


Shipment Tracking / Geo-Fencing

What would you do,
if you knew that…

4:03 a.m.

4:12 a.m.

Ship will arrive later
Planned route
New route


Increase in Data Velocity

Stream of position reports from a truck


Stream of orders from a customer

Stream of sensor readings from a warehouse


Increase of Data Volumes

Stream of position reports from ALL trucks and ships
a truck

Stream of ALL orders a customer
orders from

Stream of sensor readings from ALL warehouses
a warehouse



Need for Real-Time Analytics




Newest data is more relevant!
Database becomes bottleneck!


Business Value of Faster Actions

Proactive Faster
Action Reaction

Costs

Problem
or
Opportunity

Options

Time
Business Action
Event Taken
Action Time


In-Memory, In-Flight Analytics

Complex Event Processing (CEP)

GPS GPS GPS GPSResult e.g. Filtering, Aggregation
GPS GPS GPS
Definition: Continuous analytics to derive GPS GPS
meaningful business events from different
event streams or other event sources like
databases in real-time to gain situation
Order Order Order awareness and triggere.g. Time windows
Order Order Order actions.
Result immediate Order Order Order
Event-driven, incremental processing

High efficiency and scalability
Value Value Value Value CorrelationResult Value
e.g. Value Value Value Value
Enrich events with context data

Detect patterns with time/location
parameters


Real-Time Solutions for Smarter Logistics – Live Demo


Real-Time Solutions for Smarter Logistics

Fleet & Operation Management
Description Tracking fleet and cargo locations and meeting
SLAs.

• Overwhelming events (from warehouse, vehicle
management & RFID systems, GPS devices, and
environmental sensors)
Challenges
• No actionable insights to effectively manage resources
• None optimal capacity usage

• Instant detection of route deviations and updates to
estimated time of arrivals (ETA)
Benefits of • Meet customer SLAs & arm them with info to make
webMethods contingency plans
Business Events • More effectively direct material, trucks, people, etc. to
places where required


Business Impact of CEP
Improves the quality of decision making by presenting information
that would otherwise be overlooked.

Enables faster response to threats and opportunities.

Helps shield business people from data overload by implementing a
management-by exception policy.

Reduces the cost of manually processing the growing volume of event
data in business.

CEP is one of the pillars of the emerging "big data" movement.
Gartner Hype Cycle for Data Management 2011

Source: Gartner Inc.: W. Roy Schulte; Zarko Sumic: „Hype Cycle for Data Management”, 2011.


Intelligent Business Operations (IBO)
Decision process
Event Decision BPM flow
management management management
to enhance situation to make faster and to coordinate more-
awareness better decisions flexible processes

Observe, orient Decide Act

My business operations
A C D

Other departments,
customers, partners
and the
environment

Source: W. Roy Schulte: Apply Three Disciplines to Make Business Operations More Intelligent, Gartner Inc., March 2012


Intelligent Business Operations (Next Best Action)

1) Situational Awareness 2) Immediate Actions

webMethods Business Events webMethods Business Rules

Process actions
CEP Rules Task actions
Engine Engine Service actions

Pattern detection Real-time dashboards Context-based decisions

Simple Business Actionable Logging &
events events events notification events

Event Bus

Proactive
Business
Business Process
Process
Management
Management


Big Data Poses Big Challenges

VARIETY

Sensors Mobile Social Media

Telemetry
Video Kiosks

Email Web

Files

10111001001
1010110010000101001
Big Data
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Classical Data Management Architecture

• Operational and analytical
environments are separated

• Mainly based on structured data Business
Applications Analytics

• Data exchange and
transformation with latency

• Different ways end-user
interacts with data OLTP Data
DBMS ETL Warehouse


Real-time Data Management Goals

Performance Intelligence
How can
business
be
smarter?

• Too slow
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111010010100011101110
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• Does not 111010010100011101110
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scale

Transactional Data What is
Analytic Data
happening
now?


In-Memory Data Management for the Real-time Business

Performance Operational Intelligence
Intelligence
How can
business be
smarter?
Automated
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111010010100011101110
Decisions
Faster Actions
On-Demand,
Real-time Analytics What is
happening Retrospective
In-Memory Data now? Analytics
010010100011100011010 Situation
111010010100011101110
Awareness
Real-time
Dashboards

Transactional Data ETL Analytic Data


Next Generation Data Management

Mobile- and New Analytics Business
Web-Scale • Social Media Analytics
Applications • Big Data • Reporting
• Real-time dashboards • OLAP
In-Memory • Data Mining

In-Memory Data Management Platform
combining transactional, analytical, and Big Data to enable the
real-time enterprise for better business outcomes.

Data Store LL Messaging Event Processing

Cloud
OLTP Data
Internet of Things
DBMS Hadoop Social computing
Warehouse
Big Data


How can Software AG help you?
Compress Time to Action Reduce Cost
Reduce Risk
Respond Faster Increase Customer Satisfaction
Goal
Processes

Events Operations Business

Connect Operations IT

Information


More to Explore

On-Demand Webinars More Info?

In case you’d like to
iKnow: Know About Problems Before Your Customers Do discuss the contents of
http://www.softwareag.com/corporate/rc/rc_perma.asp?id=tcm:16-104185 this webinar in more
detail, have specific
Supply Chain Visibility - Our Offer to You: questions or would like to
Your World in 22 Minutes follow up with a local
http://www.softwareag.com/corporate/rc/rc_perma.asp?id=tcm:16-97102 sales representative,
please send an email to:
webinfo@softwareag.com
Improve Business Performance with Process Intelligence
Or go to our website to
find your nearest
Software AG office:
Live Online Demo
www.softwareag.com
Experience what Real-Time Logistics can do for you!
http://www.mashzone.com/en/Gallery/179612.html

www.softwareag.com/pi 2012 Supply Chain Management Webinar Series 39

How to Get Real Value from Real-Time Logistics Data

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