Docstoc

Presentation Title

Document Sample
Presentation Title Powered By Docstoc
					Supply Chain Planning and Execution

                                            Pratik J. Parikh, Ph.D.
                                            Member, Science Team
                           April 17, 2008   Manhattan Associates, Inc.




                                                                         1
Agenda

   • Supply Chain Systems


   • SC Planning Systems


   • SC Execution Systems


   • What MA offers?


   • Science Team at MA
             Team at MA




                            2
Supply Chain Ecosystem
RAW MATERIALS   FACTORIES             SUPPLIERS      DISTRIBUTION           POINT OF     CONSUMERS
  SUPPLIERS                                                               CONSUMPTION




                                                                              Retail

                  Branded            International   Traditional ‘Pull’



                                                                            Restaurant

                                       Large
                                      Domestic


                                                                            Dealership
                                                     Cross-Dock/Flow
                                                         Through
                Private Label
                                        Small
                                      Domestic

                                                                              Outlet




                                THIRD PARTY LOGISTICS


                                   TRANSPORTATION PROVIDERS


                                                                                                     3
Supply Chain Challenges

               globalization        shorter
               & outsourcing    product lifecycles




  emerging                                              regulations
technologies




                  integration      rising fulfillment
                                    costs & agility



                                                                      4
SC Planning vs. SC Execution
                 Planning      Execution




                                           5
SC Vendors


Rank            Supplier      2006 Revenue                                Systems
                               (in millions)              ERP               SCP                SCE
 1     SAP                        $735                      x                  x                  x
 2     Oracle                     $585                      x                  x                  x
 3     Infor                      $348                      x                  x                  x

 4     Manhattan Associates       $289                                         x                  x

 5     i2 Technologies            $280                                         x                  x

 6     JDA Software               $278                                         x                  x

 7     Red Prairie                $189                                         x                  x

 8     IBS                        $178                                         x                  x

 9     Epicor                     $124                                         x                  x

10     Aldata                     $99                                          x                  x

                                 Source: AMR Research Summary in Modern Materials Handling, May 2007

                                                                                                       6
Market for SC Planning and Execution Systems


                                                                      Manhattan Associates
                                     $289M ; 25%                      Red Prairie
                                                                      SAP

                                                                      Oracle
                                                                      Infor
                                                                      Aldata
                                                                      HighJump
                                            $189M ; 16%               Swisslog
      $102M ; 8%                                                      Knapp Logistik
                                                                      Dematic
              $110M ; 9%     $130M ; 11%




                                 Source: AMR Research Summary in Modern Materials Handling, May 2007

                                                                                                       7
SCM Market Size

    Revenue Growth Rates                  $8,000

       Total SCM market expected          $7,000
   to grow 6% (CAGR) through 2010
                                          $6,000
  • Warehouse Mgt (W MS)          6%
  • Transportation Mgt (TMS)      6%      $5,000

  • Order Management              4%      $4,000

         • Demand Planning                $3,000
   & Forecasting                  5%
                                          $2,000
      • Inventory Configuration
   & Policy                     10%       $1,000
  • Other SCM                     8%
                                              $0
                                                     2005       2006        2007       2008        2009       2010
           Warehouse Management                      $865       $934        $981      $1,045      $1,102     $1,163
           Transportation Management                 $792       $839        $885       $935        $988      $1,042
           Order Management                          $844       $864        $884       $952        $993      $1,043
           Inventory Configuration & Inventory       $355       $408        $457       $503        $545       $583
           Policy
           Demand Planning & Forecasting            $1,123     $1,166      $1,223     $1,287      $1,354     $1,429
           Manufacturing & Distribution              $806       $847        $843       $871        $900       $950
           Planning
           Other SCM                                 $851       $946       $1,044     $1,099      $1,178     $1,239

                               Source: AMR Research Supply Chain Management Applications Report 2005-2010, published August 2006

                                                                                                                                   8
                  Can you name a few
         SC planning and execution problems?


e.g., Network Design (Planning) and Warehousing (Execution)




                                                              9
Agenda

   • Supply Chain Systems


   • SC Planning Systems


   • SC Execution Systems


   • What MA offers?


   • Science Team at MA




                            10
SC Planning Components

   • Network Design
     – Number, location, and size of each facility-type


   • Advanced Planning
     – Financial
     – Product
     – Promotion


   • Demand Forecasting


   • Replenishment


   • …




                                                          11
DC
Store

        12
          What would your objective function be for the
                  SC network design problem?


Cost                          Service Level
   • Facility                     • Inventory-based (e.g., 95% of all
                                    store requests)
   • Transportation
                                  • Transportation-based (e.g., 80% of
   • Inventory
                                    deliveries next day)
   • Labor




                                                                         13
Agenda

   • Supply Chain Systems


   • SC Planning Systems


   • SC Execution Systems


   • What MA offers?


   • Science Team at MA




                            14
SC Execution Systems

  • Transportation Management
        – Single stop and multi-stop
        – TL and LTL
        – Parcel deliveries


  • Warehouse Management


  • Slotting Optimization


  • Distributed Order Management
        – Reallocate inventory


  • …




                                       15
WMS Modules

                                 Execution                                                          Inventory Management
               Shipment              Quality             Inbound                                                Cycle              Serial #
                                                                                           Putaway
               Scheduling             Audit              Sortation                                              Count              Tracking

                 Yard                Cross            Vendor/Carrier                         Lot               Physical          Warehouse
 Inbound




              Management            Docking            Performance                       Management             Count            Transfers

                                     Flow                                                  Inventory           Work                Inventory
                Receiving                                Returns
                                    Through                                              Consolidation         Orders               Control


                   Labor Planning                Labor Monitoring                   Task Management                   Activity Tracking

                                                     Material                                                   Bar Code
                 RFID          Multi-Company/                               RF & Voice        User Profile                          Foreign
                                                     Handling                                                  Compliance
                Enabled            Facility                                  Support          & Security                          Trade Zone
                                                    Interfaces                                                   (GTIN)



                       Planning                                        Fulfillment                                      Shipping
                Wave                                                                Value Added                  Parcel               Load
                                 Replenishment              Pick/Pack
             Management                                                              Services                   Shipping        Building/Loading
 Outbound




            Constraint Based     Dynamic Pick                       Put             Multi-Channel            Routing/Rate            LTL/TL
               Fulfillment        Locations                      to Store            Fulfillment              Shopping               Rating

               Inventory           Sortation                     Quality               Item                  Zone Skipping/        Shipping
               Allocation         Scheduling                      Audit             Substitution              LTL Pooling        Documentation

                                    Order                   Shipment                     Pack                 International         Retail
             Cartonization
                                 Consolidation            Scheduling/YM                  & Hold                 Shipping          Compliance




                                                                                                                                                   16
Distributed Order Management
              PO         In-transit              OH Inventory        Sourcing       Demand 1
    4       Visibility    Visibility              Visibility        & Allocation   Prioritization




                                                                              2
                                       3
  Suppliers/
  Factories
                                                                                   6
                         Hub
        8                                                       7
                                                                          5


                                                 Distribution
                                                  Centers




                                           Make the most of
                                           previous planning
                                              decisions.
                                       Execute fulfillment on
                                       actual demand orders.


                                                                                                    17
Can you name a few other SC Execution Systems?



             Labor Management
               Trading Partner
             Reverse Logistics
           Information (e.g., RFID)



                                                 18
Agenda

   • Supply Chain Systems


   • SC Planning Systems


   • SC Execution Systems


   • What MA offers?


   • Science Team at MA




                            19
MA History

• Established in 1990 in Manhattan Beach, CA


• Initial WM solutions catered to apparel industry needs


• Relocated in Atlanta, GA in 1995; India office opened in 2002


• 2300+ employees worldwide


• Acquisitions include Intrepa LLC, Logistics.com, ReturnCentral, Inc., Streamsoft
  LLC, Evant, etc.


• January 2006, the Science Team was officially instated


• 8 members in the Science Team; a few more to join later this year

                                                                                     20
Global Presence


                                                                   Nordics

                                                    Bracknell                        Moscow
                                                                  Utrecht
                Mishawaka
                                                                Paris
   San Fran                  Boston
                                                          Nantes
                       Atlanta                                                                                            Tokyo
                                                                                                                 Shanghai
                                                                             Dubai
              Mexico City                                                                     Bangalore


                                                                                                          Singapore



                            Santiago                                                                                   Sydney
                                                                     Cape Town                                        Melbourne




                                       Manhattan Associates’ Center of Expertise
                                       Manhattan Associates Customer Support Centers
                                       Key Manhattan Associates Offices
                                       Key Channel Partner Offices

                                                                                                                                  21
MA’s Product Footprint




                         22
Warehouse Management Market Share
                  2005 Total Revenue
                                       16%



                                                          Manhattan Associates
                                               7%         RedPrairie
                                                          SAP
                                                5%        Oracle
                                                          Infor/SSA Global
      60%                                      5%         HighJump
                                              5%          Other

                                          3%


              $1.1 Billion Market


                                    Source: ARC Advisory Group, WMS Worldwide Outlook, 2006

                                                                                              23
What type of a software vendor is MA?
   1. ERP
   2. SC Planning
   3. SC Execution
   4. 1 and 2
   5. 2 and 3
   6. 1, 2, and 3



                                        24
Agenda

   • Supply Chain Systems


   • SC Planning Systems


   • SC Execution Systems


   • What MA offers?


   • Science Team at MA




                            25
Science Team Objectives

1.   Research, Innovate, & Design
      »   Provide highly skilled expertise toward the innovation and application of Operations
          Research, Management Science, Computer Science, and Applied Mathematical
          Science techniques within and across our product and business domains


2.   Deliver & Support
      »   Deliver timely and high quality science designs required for planned product
          releases, and assist them into production



3.   Communicate & Collaborate
      »   Strive to ensure the success of public-facing science related company initiatives
          and alliances within our partner, client, industry, and academic communities



4.   Generate Intellectual Property
      »   Provide a clear and sustainable competitive advantage through the continuous
          generation of novel scientific methods eligible for intellectual patents and property
          rights


                                                                                                  26
The Process

 • Requirements
   – Top management
   – Business analysts


 • Design
   –   Mathematical Programming (LP, IP, and MIP)
   –   Heuristics and Meta-Heuristics (Greedy, GA, Ruin-Recreate, etc.)
   –   Simulation
   –   Statistics



 • Prototype
   – Solver (CPLEX --- callable library, concert technology, and OPL)
   – Programming languages (C, C++, Java, VBA, etc.)


 • Development support



                                                                          27
Manhattan Associates’ Science Group

Science @ MA                    Advisory Board

• Pervinder Johar (SVP/CTO)     Academia
• Mark Pluta (Vice President)
                                • Profs. John Bartholdi and
• Jeff Beadle (Sr. Director)
                                  Martin Savelsbergh (Georgia Tech)
• Kim Ross, Ph.D. (Director)
• Jiefeng Xu, Ph.D.             • Prof. Garrett J. van Ryzin (Columbia University)

• Michael Zhang, Ph.D.          • Larry Lapide, Ph.D. (MIT)
• Rajesh Veliyanallore, Ph.D.
• Srinivas Nandiraju, Ph.D.     Industry
• Burak Karacik, Ph.D.
                                • Paul Antony
• Margarit Khachatryan, Ph.D.     VP Supply Chain Systems, Wal-Mart
• Pratik J. Parikh, Ph.D.       • Masao Nishi
                                  AVP Supply Chain Mgt, SYSCO Corp.




                                                                                     28
For Additional Information




                             Pratik J. Parikh, Ph.D.
                             Member, Science Team, Global R&D
                             678.597.7349
                             pparikh@manh.com
                             www.manh.com
                             2300 Windy Ridge Parkway,10th Floor
                             Atlanta, GA 30339
                             USA




                                                                   29

				
DOCUMENT INFO