Deloitte NL Supply Chain Analytics

Point of View
Supply Chain Analytics
Deloitte The Netherlands, 2016

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Dear reader,
Deloitte maintains market-leading global Supply Chain and Analytics practices with Table of content page
extensive experience in Supply Chain Analytics, see our webpage. Based on our
Supply Chain trends 3
experience, we have insights in the latest (technological) developments, and
understand the impact of these developments on your business Digital Supply Networks 6
In this point of view we want to demonstrate one of the latest developments in the Supply Chain Analytics 13
Supply Chain landscape; data analytics Analytics approach 15
We will elaborate on relevant Supply Chain trends and the rise of Digital Supply Our credentials 17
Networks, which increases both the need and the possibilities to use data analytics
Why Deloitte? 38
The possibilities for using data analytics are mapped on our Supply Chain Analytics
framework, that covers all parts of the end-to-end Supply Chain. Examples are the
use of machine learning to better predict demand and using data visualization to
provide end-to-end insight in the supply and enable better decision-making
We hope you enjoy reading our Point of View,
Robert Jan Huizing Naser Bakhshi Guido Diepen Lantos Pin Iris van der Heijden
Deloitte NL - Supply Deloitte NL - Analytics & Deloitte NL - Analytics & Deloitte NL - Supply Deloitte NL - Supply
Chain Strategy Information Management Information Management Chain Strategy Chain Strategy
Supply Chain trends
Digital Supply Networks
Analytics approach
Our credentials
Supply Chain trends
Why Deloitte?
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Tracker is an interactive menu Deloitte's Point of View on Supply Chain Analytics 3

Supply Chain trends
Two key trends currently impacting the Supply Chain are related to the rise of
exponential technologies in our society
Supply Chain trends

Increasing amount of Accelerated influx of More focus on Products brought to Increasing globalization
data and powerful disrupting technologies transparency, quality and market via convergent and continued
Supply Chain Analytics processing tools sustainability business models (economic) volatility
Analytics approach
Our credentials
Why Deloitte? • Use artificial • Exploit ‘Internet of • Provide insight in the • Efficiently organize the • Gain insight in the
intelligence to improve Things’ for integration origins of products reverse logistics biggest Supply Chain
decision-making and and cost-reduction in using blockchain process risks and mitigate them
interoperability transportation • Optimize on • Digitalize and integrate by calculating scenarios
throughout the Supply • Use new technologies sustainability metrics processes to provide a • Optimally design cross-
Chain (e.g. 3D printing, like CO2 emissions ‘seamless’ experience border Supply Chain
• Attract skilled talent to robotics and self-driving networks
optimally use data and cars) to streamline and/
advanced analytics or change the Supply
methods Chain
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Supply Chain trends
The rise of exponential technologies has created a burning platform: disrupt or
be disrupted
Supply Chain trends Exponential technology change… …is disrupting Supply Chains across all industries
Supply Chain Analytics $1,245 per

Gbps
Analytics approach
$569 per GB
Our credentials
Cost of Performance
Bandwidth
<$10
Why Deloitte? Storage
$222 per million <$0.01
transistors
Computing
<$0.06
1992 Today
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Supply Chain trends
Analytics approach
Our credentials
Why Deloitte?
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In the 4th industrial revolution, leading companies are combining information
technology and operations technology to create value in new and different ways
Supply Chain trends

Power Generation Industrialization Electronic Digital Supply
Late 18th century
Early 20th century
4th Industrial Revolution

1970s to 2000s
Steam engines and Electricity and Automation Networks
Analytics approach hydraulic power assembly lines Computers and Vast network of
= = Internet Connectivity cyber-physical
Mass manufacturing = systems
Our credentials Productivity and
industrialization and improved Access to =
infrastructure information and Connected
Why Deloitte? enhanced decision- products, customers
making capability and
supply chain
Optimize Traditional Objectives… …and New Objectives… …By Better Managing

Cost Innovation Service Visibility Variability
Revenue
Quality Safety Flexibility Volume Velocity
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It transforms the traditional, linear Supply Chain nodes into a set of dynamic
networks, allowing dramatically increased differentiation
Supply Chain trends Traditional Supply Chain Digital Supply Network
Plan

Cognitive Planning Deliver Support
Analytics approach Quality Sensing
Our credentials
Digital
Why Deloitte? Core
Develop Plan Source Make Deliver Support
3D Printing
Make Develop
Sensor-driven Replenishment
Source
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In such networks, a continuous flow of information, goods and services exists
between the physical and digital world – a ‘digital mirror’ of the physical world
Supply Chain trends 1 Physical to Digital: Capture signals and data from the 2 Digital to Digital:
physical world to create a digital record Exchange and enrichment
of information using
Digital Supply Networks advanced analytics,
artificial intelligence and
machine learning to drive
Supply Chain Analytics meaningful insights
Analytics approach
Our credentials Physical Digital

Why Deloitte?
3 Digital to Physical: Deliver information in automated and more

effective ways to generate actions and changes in the physical
world
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One of the biggest opportunities for companies in preparing for the disruption
by Digital Supply Networks lies in the usage of Supply Chain Analytics
Supply Chain trends
The digital ‘mirror’ that reflects the physical world creates enormous amounts of data, which
1 must be safely stored, easily accessed and dynamically analyzed to gain new insights and
opportunities
Digital Supply Networks improve (collective) decision-making across the network
Supply Chain Analytics New skills and capabilities are required to understand and engage with all aspects of Digital
New workforce skills
2 Supply Networks. These are skillsets which are already in short supply and you will face a new
and capabilities
host of competitors in the talent acquisition process
Analytics approach
Our credentials
The interconnectedness of Digital Supply Networks creates exposure to data breaches, which
3 Cyber security risk
can be detrimental (possibly catastrophic) to operations and create a negative brand association
Why Deloitte?
Reliance on ecosystem Creating Digital Supply Networks requires reliance on a broader set of collaborators and
4 of Supply Chain and technologies, which increases value opportunities but also complexity within the supply
technology partners ecosystems
Agile systems Many companies have organizations and processes in place for implementing technology
5 development & systems. These processes are often robust, as they include a long timeline of designing, testing,
deployment building an on premise solution
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To accommodate the flow of information between both worlds, an integrated
Digital Stack architecture is required
Supply Chain trends Digital Stack Digital Stack components
Digital Supply Networks Insights Business insights, AI, and analytics

& Strategy to better sense, predict and
anticipate supply chain issues
Decision Modeling, and scenario
Support analytics to support better
Analytics approach decisions for business units
Visibility Aggregate data for end-to-end visibility

Our credentials that enables prioritized actions
Information flow
Why Deloitte?
Business Automated processes for standardized
Process processes and simple, relatable data;
retire multiple applications
Data Integration Integrated nodes to create a single point

& Connectivity of connectivity to the supply network;
flexibility to add and switch suppliers
Network Data Synchronized data gathering to reduce

Synchronization cost for storage and improve data
availability through Enterprise wide
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data warehouse access
Tracker is an interactive menu Supply Chain Analytics span of control Deloitte's Point of View on Supply Chain Analytics 11
Which is characterized by an advanced technology infrastructure (Digital Core)
that enables the usage of Supply Chain Analytics to improve decision-making
Supply Chain trends Supply Chain Analytics Digital Stack Sample ecosystem players
Digital Supply Networks IBM Watson, Elementum,

The Digital Core at the
Amazon QuickSight, Apache

heart of the Digital Supply
Mahout
Supply Chain Analytics Network allows the usage
of Supply Chain Analytics Llamasoft, Sourcemap, Kinaxis,
to gain detailed insights O9, One Network, GE Predix,
Analytics approach in its performance and SAP APO, GT Nexus, SAS
identify areas of
performance Tableau, Clearlight, Qlik View,
Our credentials improvement Microsoft Power BI, Spotfire,
Sisense, Alteryx
Digital Core
Why Deloitte? New Data Sources Appian, Software AG, AuraPortal,
Oracle, SAP, TIBCO Software, SAP
Ariba
Digital Core
Products Consumers Support
Suppliers
Existing Systems SAP / SAP Hana, Microsoft Azure,

Amazon Web services, Hadoop,
Signals
Google Cloud
System of Record
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Tracker is an interactive menu Note: There are several companies (e.g. GE Predix, SAP) that compete in multiple or all layers of Deloitte's Point of View on Supply Chain Analytics 12
the Digital Stack
Supply Chain trends
Analytics approach
Our credentials
Why Deloitte?
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Deloitte has vast data analytics experience in the Supply Chain landscape –
shown in our Supply Chain Analytics framework
Supply Chain trends Delivery Lane Analysis
• • Integrated Business Planning
• Network Design • Advanced inventory planning
Digital Supply Networks • Data-based Warehouse Design • SKU analysis and rationalization
• Advanced Transport Optimization Plan • Demand sensing
• Logistics Outsourcing
• Cost-to-Serve analysis
Deliver Support
• Returns prediction and tracking
Analytics approach • Supply Chain Diagnostics
• Supply Chain Visualization
Our credentials • Supply Chain Risk Analysis
Digital
Core
Why Deloitte?
• Advanced Production Scheduling
Make Develop
• OTIF analysis
• Scenario Modelling for Strategic • Supply Chain Sustainability
Sourcing Source • Supply Chain Analytics Roadmap
• Procure to Pay Optimization • Supply Chain of the Future Workshop
• Source Cost Analysis
• Optimization of order allocation
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Tracker is an interactive menu Note: A selection of Deloitte’s credentials in these areas of Supply Chain Analytics are listed in Deloitte's Point of View on Supply Chain Analytics 14
the ’Our credentials’ section, page 17
Supply Chain trends
Analytics approach
Our credentials
Analytics approach
Why Deloitte?
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Analytics approach
Deloitte’s comprehensive and flexible methodology for analytics projects ensures
we can deliver business critical insights within time and budget
Supply Chain trends A typical analytic Insights project takes 8 to 12 weeks following three main phases connected to our approach

Understand Analyze Insights
2-3 weeks 4-6 weeks 2-3 weeks
Analytics approach
Approach
Our credentials Our structured approach has been built up from our experience in analytical engagements. It comprises of six steps to maximize
project oversight. Each step allows looping back to previous steps to apply the insights gained in subsequent steps
Why Deloitte?
Assess Current Acquire & Prepare & Evaluate & Report &
Analyze & Model
Situation Understand Data Structure Data Interpret Implement
Critical success factors

To ensure maximal knowledge transfer in both ways we would need to work closely with key experts in client’s business and IT
departments. Rapid access to potentially disparate source data and support in understanding the data is essential in order to build up
the data structures required for the analytical models
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Supply Chain trends
Analytics approach
Our credentials
Our credentials
Why Deloitte?
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Deloitte has vast data analytics experience in the Supply Chain landscape – a
selection of our experience shown on the next pages
Supply Chain trends Delivery Lane Analysis (page 31)
• • Integrated Business Planning (19)
• Network Design (32) • Advanced inventory planning
Digital Supply Networks • Data-based Warehouse Design (33) • SKU analysis and rationalization
• Advanced Transport Optimization (34) Plan • Demand sensing
• Logistics Outsourcing (35)
• Cost-to-Serve analysis (36)
Deliver Support
• Returns prediction and tracking (37)
Analytics approach • Supply Chain Diagnostics (20)
• Supply Chain Visualization (21; 22)
Our credentials • Supply Chain Risk Analysis (23)
Digital
Core
Why Deloitte?
• Advanced Production Scheduling (30)
Make Develop
• OTIF analysis (26)

• Scenario Modelling for Strategic • Supply Chain Sustainability (24)
Sourcing (27) Source • Supply Chain Analytics Roadmap (25)
• Procure to Pay Optimization (28) • Supply Chain of the Future Workshop
• Source Cost Analysis (29)
• Optimization of order allocation
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Our credentials – Integrated Business Planning
Enabling a Supply Chain to operate at low, stable inventory levels and potential
for optimizing shift patterns and labor utilization
Supply Chain trends Challenge
The world’s leading premium drinks business experienced that sell-in based target peaks
drive volatility and inefficiencies in the end-to-end Supply Chain, resulting in high
inventory held in market and inefficient use of labor due to manufacturing cycles
optimized to support peak shipments. The challenge was to identify and design a set of
Supply Chain Analytics interventions, both short and long term, which will reduce artificial sales volatility, creating
cost savings and an increased focus and investment in sales execution and growth
Analytics approach
Approach
The scope included several business units, covering all Western European and Central Peaks in sales impact on the Supply Chain
Our credentials Eastern European operations including warehouses in the UK, Belgium, Russia, Turkey
and Spain. Based on initial data gathering, the current distribution network was modeled
(baseline situation) using the modeling tool Llamasoft. The parameters for the future
Why Deloitte?
network model were defined and modeling outcomes compared to the baseline situation
to get insight in the most robust and efficient future distribution network
Results
The analysis led to the development of a manufacturing strategy which - combined with Value creation methodology
interventions to smoothen demand and reduce volatility - enables the Supply Chain to
operate at low, stable inventory levels, reduced costs and increased effective trade spend.
Subsequently, the analysis provided guidance for further optimization of shift patterns
and labor utilization
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Our credentials – Supply Chain Diagnostics
Development of a Business Intelligence dashboard to gain insight in operational
performance
One of Europe’s largest agricultural companies, owned by approx. 30,000 farmers with
more than $8B in sales and presence in 25 countries, wanted to structurally optimize
their operation. The client wanted to gain more insight in the performance of their
operation by implementing a Business Intelligence dashboard
Roadmap to implementation
Analytics approach
Approach
Deloitte supported in formulating consistent definitions and mapped the business needs
Our credentials required to spot improvement opportunities, measure improvements made, and actively
monitor the operation/ performance of the client’s Supply Chain
Why Deloitte?
Dashboard
Results
A full design of the Business Intelligence dashboard, including most relevant KPIs, lay-out
and dimensions, was delivered for implementation by the clients’ IT department. The
dashboard enables the ability to steer on KPIs and help to develop company-wide insight
in the client’s performance and understanding of functional contribution. It also
increased insight of people into Supply Chain drivers and the impact of their actions on
the organization as a whole
Previous | Next Defining KPI trees
Our credentials – Supply Chain Visualization
Gaining insights into the digital order pipeline to improve order fulfillment and
speed of delivery
Over the last years, online sales channels have become more and more important for
companies. With the online supply increase, however, customers have become more
demanding in terms of delivery time and service. Reliability is therefore extremely
important, even more so than speed. Therefore a large retail company asked Deloitte to
Supply Chain Analytics create a clear picture of the Direct-to-consumers online purchase order submission
process through the different systems and increase the reliability of this process
Analytics approach Clear understanding of all steps

Approach
Of the 70,000 total submissions, roughly 70% was completed within the allowed time.
Our credentials 22% was completed at around roughly twice the maximum amount of time, 7% within
about 6 times the maximum and 1% took even longer. The analysis was focused on the
group that was completed in twice the maximum time (22%) which held the largest
Why Deloitte?
opportunity to identify the delay drivers. Timestamps were created for different stages in
the order submission process combined from multiple source systems. A clustering on
deviation from the reference per time stamp was performed Deviation from reference time per order per step
Results
The analysis led to the identification of several steps within the process that could be
improved with low effort for a relatively high gain. In total more than 20 improvements
were made based on the analysis results, leading not only to a more reliable order
submission process, but also to an average time reduction per order of 50%. As a results,
customer satisfaction and loyalty increases
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Optimization opportunities

Our credentials – Supply Chain Visualization
Gaining insight in the number of products offered to retailers and rationalize
store inventory
A large retail brand distributes thousands of different products to their retailers on a
seasonal basis. The higher the number of different products, the more complex the
manufacturing and logistic processes are which brings more costs. An additional
challenge is creating the inventories for each store. On the one hand you want customer
Supply Chain Analytics to have enough choice, on the other hand you want to provide the least amount of items
possible so that the costs stay low. We were asked to rationalize the number of different
items Product pareto
Analytics approach
Approach
For our analysis, we took two different angles. One from a store point of view and one
Our credentials from a product category point of view. For the product point of view we identified the
number of products that were necessary to still give the customer enough choice, and on
the other hand retain the revenue. For the store point of view we clustered the stores in
Why Deloitte?
order to determine with which amount of unique items a store would still be successful
Store clustering
Results
From our analysis it turned out that it was not necessary to create unique inventories for
each retailer, but that many different retailers could be grouped in a small number of
cluster with similar inventory. In addition, we determined that the number of different
products offered was higher than necessary many products were unsuccessful and the
number of products could be reduced dramatically
Previous | Next Optimization opportunities

Our credentials – Supply Chain Risk analysis
Developing a dashboard to identify procurement risks and mitigating actions

Risk management is becoming an increasingly important issue for procurement leaders.
With many different suppliers, CPOs struggle to get the overview, see where issues are
and to prioritize actions. To address this problem, several companies have developed
different IT offerings that help CPOs and their team in monitoring supplier performance.
Supply Chain Analytics However, there isn’t any solution offering that provides a consolidated risk and
performance management model and visualization based risk mitigation strategy in a
CPO dashboard
single platform
Analytics approach
Approach
To develop the required platform, a set of procurement KPIs (including WC reduction, on
Our credentials time and in full, Invoice compliance) was identified. Thresholds were set to quantify
whether a certain scenario can be defined as a performance issue or as a risk. The next
step was to derive exclusive risk metrics viz. credit risk, reputational risk, etc. to identify
Why Deloitte?
whether a supplier is exposed to any of these. The final step was to identify suppliers
who may fall into any of these scenario in future – by designing a future state model
Results Spend dashboard
The analysis and finding led to the design of three dashboards i.e. CPO dashboard, spend
dashboard and supplier dashboard that help CPOs and their team to identify and
mitigate risk before it attains critical proportion
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Our credentials – Supply Chain Sustainability
Providing Supply Chain sustainability insights in eight separate areas for over 35
key clients
Sustainability has become an increasingly important metric for many companies. The
availability of a large amount of data provides the opportunity for analytics solutions.
These solutions should come in the form of a useful dashboard, infographic or data
visualization tool which engages the client and provides sustainability insights at both the
Supply Chain Analytics granular and aggregated level
Facility energy benchmark
Analytics approach
Approach
By providing sustainability solutions in eight separate areas, Deloitte has built expertise
Our credentials and distinguished itself in the marketplace. These areas are:
Energy Diagnostic & Renewable Energy Strategy (1), Greenhouse Gas Inventory (2),
Why Deloitte? Lifecycle Assessment (use product level data to map out environmental hotspots) (3), Waste disposal facilities
Water Risk Assessments (4), Climate Modeling (5), Food Waste & Food Supply Chain (6),
Efficient Logistics – Renewable Fuels Strategy (7), Recycling – Plastics & Textiles (8)
Results
Amongst others, the following results have been achieved:
• A logistics company achieved 15% energy reduction by energy spend diagnostics (1)
• At a major food service company, over $5 mio in saving from employee engagement
opportunities on energy, water and waste were identified (4)
• A global retail company achieved standardized customer-facing expiration date
labeling on food packaging (6)
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Our credentials – Supply Chain Analytics Roadmap
Developing a Supply Chain Analytics roadmap for a global healthcare company

The project’s predefined objective was the creation of a Supply Chain Analytics roadmap
for a global healthcare company’s Supply Chain within the Plan-Source-Make scope, with
a focus on planning
For each identified improvement initiative a high-level business case would be developed,
Supply Chain Analytics with an indication of time and ease of implementation
Mapping of analytics priorities

Analytics approach
Approach
In the space of five weeks, a three-step approach was executed to translate the client’s
Our credentials Supply Chain Analytics vision into an actionable roadmap. The Insight Driven Organization
(IDO) framework was used as a basis to evaluate the analytics maturity level of the client.
Two interactive workshops were organized to facilitate the discussion on potential quick
Why Deloitte?
wins and improvement opportunities, supported by case examples, Deloitte-specific tools
and experts’ opinions
Supply Chain visualization
Results
The roadmap is envisioned as a path to the realization of a Supply Chain control tower
that makes use of visualizations, scenario planning, predictions, simulations, and
prescriptive decision-making in order to orchestrate the Supply Chain. Within each of the
five main control tower components (visibility, scenario planning, predictive, simulation,
and prescriptive) a series of Supply Chain Analytics initiatives were identified. By plotting
the 12 initiatives on the complexity and time axes of the roadmap, different visualization-
Predictive analytics
Previous | Next related quick wins are identified
Our credentials – On-Time-In-Full Analysis
Provide insight into key drivers of On Time In Full delivery and improving
coverage throughout the Supply Chain
In this particular retail company, millions of products are continuously being produced
and shipped to distribution centers around the globe. In order to satisfy customer
demand in time, it is necessary that the coverage is in order, i.e. the percentage of the
products that arrives at the distribution centers on time and in full. In order to improve
Supply Chain Analytics the coverages and meet the set targets, the company wanted insight into the drivers that
most influence the coverage and eventually also the delivery in full and on time.
Therefore they asked Deloitte to perform a detailed analysis on their data
Analytics approach Clusters of coverage rates and insights visualized
Approach in a dashboard
Collected the ‘15 week coverage rate’ for full year of orders. A clustering technique was
Our credentials used to cluster 26,000 coverage rates. This technique groups the coverage patterns in
Coverage patterns of 26000
buckets of similar patterns, which then comprise a single cluster. Eight buckets of orders
different coverage patterns were visualized and these buckets gave insight in the drivers
Why Deloitte?
Coverage
of the coverage for the orders
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Week
The coverage patterns collected, transformed into

Results the identified clusters
Based on the analyses, insights were extracted with incremental business potential, e.g.:
• Carrier performance has the largest impact on the coverage
• Good coverage is usually caused by slack in factory performance
• Identified significant number of orders that were only slightly (1-7 days) late and could
be quick wins
• Actionable insights to improve process and areas of the order pipeline, which improved
Previous | Next the coverage by a significant margin
Our credentials – Scenario Modelling for Strategic Sourcing
Support a mature purchasing organization in gaining insights into the costs and
options that existed to reduce cost through alternative specifications
A mature purchasing organization experienced upward price pressure from rising
commodity prices, supplier consolidation through mergers and acquisitions, constrained
raw material and supplier manufacturing capacity, obscured supplier value chains,
complex price strategies and a lack of collaboration across Supply Chains disciplines
Analytics approach
Approach
By developing linear, integer and non-linear programming models the company was able
Our credentials to develop scenarios with alternative supply sources and shifting volumes. The
optimization needed to take into account cost through the value chain, looking at
procurement cost, the effect on production, warehousing and transportation cost, and if
Why Deloitte?
applicable, effects on the price to the end customer Optimized baseline and scenarios
Results
Using the developed programming models, the company gained greater insight into the
costs, and the options that existed to reduce cost through alternative specifications
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Our credentials – Procure-to-Pay Optimization
Enabling Deloitte’s Process X-ray methodology to gain a 18% improvement on a
multinational telecommunications company’s Procure-to-Pay processes
The client requested Deloitte to get insights on the actual execution of their Procure-to-
Pay (P2P) processes in their three main markets and help identifying improvement
opportunities. They required fact-based insights in process compliance, efficiency and
productivity across markets in order to make a sustainable change. Moreover, the client
Supply Chain Analytics envisages to build a Continuous Improvement (CI) capability, supported by advanced
Define improvement hypotheses
analytics tools- but was struggling on how to set it up and how to approach CI
Analytics approach
Approach
The project is executed in three phases. First, the scope was defined: conduct a survey
Our credentials with process experts to support focus setting in the P2P processes to define
improvement hypotheses. Second, the processes were analyzed by Process X-ray, a
Deloitte in-house developed methodology to review actual process execution based on
Why Deloitte?
the ERP data, to establish a detailed baseline and analyze hypotheses. The findings were
validated with experts. Finally, the business case was build, wherein improvement areas
were defined and recommendations and a high-level implementation plan was presented
Market pattern comparison
Results
Enabling Process X-ray showed the client concrete insights on how they could improve
their P2P processes and gain a 18% productivity improvement on their end-to-end
process by adapting the behavior of users. Furthermore, an action plan specified how CI
could be embedded in the organization and the business case showed the impact of
applying and embedding X-ray in their organization
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Order line value
Our credentials – Source Cost Analysis (bottom-up spend cube)
Realizing and executing sourcing synergies in a merger

In an increasingly challenging competitive environment, a merger can be an important
means of obtaining synergies and gaining significant competitive advantage. Deloitte was
asked to assist in identifying sourcing synergies in an impending merger and recommend
a global sourcing operating model that supported a highly local business model. The new
Supply Chain Analytics organization consisted over 110 sites globally, therewith creating a new global leader in
the market
Overlap intensity
Analytics approach
Approach
The bottom-up spend cube was essential to the estimation of the total synergy potential,
Our credentials as well as an important tool in identifying and executing first sourcing benefits in the new
organization. It allowed Deloitte to analyze the overlap intensity of suppliers in order to
identify potential quick win renegotiations and roll-outs of contracts. Further, the spend
Why Deloitte?
cube supported in identifying sourcing projects with significant synergy potential, which
then were executed on a central and regional level
Results Sourcing group analysis
The analyses and recommendations provided the client with a fact-base list of concrete
quick win renegotiation opportunities from Day 1, as well as a well-prepared sourcing
plan to be executed during the merger integration. A shift in focus from data capturing to
analysis and strategy development has also freed up valuable time for key resources,
which can be spent on value-adding activities. The client has realized total sourcing
savings of over €50M
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Sourcing group analysis by region
Our credentials – Production Scheduling
Optimizing the Order-to-Plant allocation enabled a 10% saving on annual
production and distribution costs
To optimize a client’s animal feed and vitamins Supply Chain to reduce their overall
Supply Chain cost, Deloitte defined five Supply Chain improvement initiatives. The most
important initiative was to optimize their Order-to-Plant (OtP) allocation, i.e. determine
which products should be produced at plants and which customers to serve from which
Supply Chain Analytics plants in order to balance and optimize overall production and distribution costs
Analytics approach
Approach
The first step in the OtP allocation was to determine the optimal production footprint. Visualization before and after OtP
Our credentials Amongst others the following industry specific details has been taken into account:
production speed and capacity, production capabilities (e.g. pellet size, crumbles, meal,
etc.), type of animals (e.g. layer chicken, calves, etc.), feed type (e.g. full feed, supplements)
Why Deloitte?
and the availability of raw materials. In the end a standardized version of the model was
handed over to the client, which enabled them to run periodic OtP updates in the future
Results
The optimized OtP showed our client they should focus their production more local-for-
local and therefore produce a wider range of recipes per plant. This resulted in a large
decrease in plant-to-customer transportation cost; the total savings with the optimized Integrated planning process
footprint and OtP, were approximately 10% of total annual production and distribution
cost. Furthermore, by gaining insights via demand and production data and the
developed OtP model, several potential investment opportunities were evaluated and
Previous | Next prioritized
Our credentials – Delivery Lane Analysis
Delivering a robust and user friendly global transit planning tool at a global
health care company
To empower transportation personnel to more efficiently analyze ocean and air Supply
Chain shipment data, a global health care company internally designed a Global Transit
Planning (GTP) tool in Tableau. However, the tool did not achieve high user adoption,
since analyses were not intuitive and high manual data updates were required
Supply Chain Analytics The Deloitte team was asked to enhance the tool and incorporate a robust data blending
process
Analytics approach
Approach Lane detail
Enhancing the GTP dashboard and blending the data was achieved in four subsequent
Our credentials phases consisting of: research, visioning, prototyping and iterating
In the prototyping phase, the team built and refined the dashboards and wrote a Python
Why Deloitte? script which indicates how the various data sources should feed into the unified view of
data
Carrier rank
Results
The existing GTP tool was adjusted to provide maximum flexibility, automation and
collaboration. The user flow allows users to interact in one cohesive interface, while
providing tailored information to their specific role.
The redesigned GTP tool is now well adopted within the organization and used on
monthly basis to enable more effective inventory planning decisions, resulting in the
Previous | Next
gradual and continuous reduction of in-transit inventory Carrier comparison

Our credentials – Network Design
Developing a future network structure to support business growth in Europe

To realize the growth targets and facilitate a large retail company its strategic initiatives, it
needed to review its European network strategy and distribution capabilities. The
objective was to deliver an European network design that considers multiple 2020 visions
to differentiate, profitably grow, and manage the complexity of the businesses, including
Supply Chain Analytics multi-channel delivery for its customers
Analytics approach Overview Supply Chain costs

Approach
The scope included several business units, covering all Western European and Central
Our credentials Eastern European operations including warehouses in the UK, Belgium, Russia, Turkey
and Spain. Based on initial data gathering, the current distribution network was modeled
(baseline situation) using the modeling tool Llamasoft. The parameters for the future
Why Deloitte?
network model were defined and modeling outcomes compared to the baseline situation
to get insight in the most robust and efficient future distribution network
Results
Based on both quantitative and qualitative findings, Deloitte provided conclusions,
recommendations, business case and a transition roadmap to work towards the optimal
Supply Chain visualization by making use of
future network structure to support business growth across Europe Llamasoft
Previous | Next

Our credentials – Data Based Warehouse Design
Supply Chain Analytics aids to improve decision-making in the design process of
a distribution center
In designing a warehouse, challenges arise about how the layout of the location should
be configured. Reliable data analysis and visualization can vastly improve decision-making
on this matter
Supply Chain Analytics Workflow analysis
Analytics approach
Approach
The tool Alteryx Designer and custom build modules by Deloitte are used to support the
Our credentials design process of a distribution center. The custom build modules allow an easy
preparation of required data from multiple sources. After the data preparation, the
analysis can be made based on standard workflows for distribution center design. The
Why Deloitte?
workflows can be intuitively adapted to best fit specific project requirements. The analysis Visualize potential solution
is visualized by a custom build module and Tableau to gain insights in potential layout
solutions
Results
The tool in combination with the custom build modules enable modeling information
with a very high level of accuracy as well as repeatability of result, and visualize potential
layout solutions for a distribution center. Enabling this tool improves the decision-making
in the design process of a distribution center
Data visualization in Tableau

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Our credentials – Advanced Transport Optimization
Developing a transportation strategy for the world’s largest maker of
construction and mining equipment, gas engines, and industrial gas turbines
The world’s largest maker of construction and mining equipment, diesel and natural gas
engines, and industrial gas turbines with over $60 billion revenue experienced that in
Russia and the CIS region (Eurasia), high organic growth rate and expansion through
acquisitions put constant pressure on corporate transportation to serve new locations
Supply Chain Analytics and increased volumes of freight with consistent on-time delivery and lowest possible
cost. Deloitte’s objective was to support the client in developing its transportation
strategy and identify/ enhance partnerships with global and local logistics providers
Analytics approach
Approach
Transportation network
The first step in the project was to define the current transportation network for all inter
Our credentials and intra Eurasia flows across all divisions. Second, all networks flows were reconstructed
and a comprehensive data model was build. The current internal transportation
management capabilities were assessed and aligned with the Voice of the Customer.
Why Deloitte?
Finally, the full Eurasian logistics environment was assed from both an infrastructure and
Logistics market perspective and compared with the 2020 business outlook and Logistics
trends in Eurasia
Results
Based on the assessment, key factors of influence for the company in Eurasia were
determined and an overview of all infrastructural and logistic trends in Eurasia was
created. A SWOT analyses and an action plan could then be drafted to cope with the Region in scope
future challenges. The comprehensive As-Is assessment led to the identification of key
challenges to be addressed in the next phase
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Our credentials – Logistics Outsourcing
A global sourcing project to realize annual logistics cost savings and improve
Supply Chain visibility and control
The profitability of our client – a leading seating and sleeping manufacturing company –
considerably declined over the past years, increasing the urgency to focus on providing
better service against lower costs. Logistics represents a key focus area since it is one of
the major spend categories, its importance to serve customers through reliable lead
Supply Chain Analytics times, and the current scattered logistics service provider landscape. The objective was to
reduce logistics costs, in combination with improving Supply Chain visibility and control
Analytics approach Network model

Approach
Customer
Align with / be Sign delivery
Place sales order Pay invoice to
The first step in the project was to optimize the clients’ current warehousing and
informed by LSP on confirmation from
at Ekornes Ekornes
delivery time LSP
Our credentials
Confirm / update Produce and /
Create SO for Send invoice to
distribution network, leading to a more efficient network model. Second, a global RFP was
SO and inform or assemble
customer customer
delivery week ordered products
Ekornes
Share SO Add confirmed SO Agree on P-W1
Load container / Desired moment of
used to refine rate structures and consolidate LSPs leading to reduced rates. Finally, to
information to demand / mode of transport
trailer with goods customer invoicing
with LSP production plan and inform LSP TBD by Ekornes
Create / update Determine optimal Advise mode of transport, Align with / inform Unload order Send delivery
increase Supply Chain control, the RFP process strongly focused on LSP’s technical
P-W1 pick-up and W/H storage plan make container / trailer customer on at customer (if confirmation to
unloading schedule based on ETA & ETD available and balance delivery time necessary)2 Ekornes3
Logistics Service Provider

Why Deloitte?
per product containers at Ekornes
Determine optimal OR
capabilities in data connectivity and an integrated logistics planning. A future operating

order-to-shipment Pick up container and Pick up trailer and Report actual in-
Create / update
consolidation with- load at origin port transport to LSP W/H transit shipment
customer delivery
in allowed delivery data to Ekornes
schedule
window (as of Short sea container Unload and register as Goods (e.g. Manifest/ASN)
model was developed to support increased Supply Chain control and support LSP (data)
complete order) to destination port Received at LSP warehouse
Create necessary Pick-up container Create necessary Send shipment

Monitor order Load at W/H and
shipment at destination port shipment notification to
integration
completeness ship to customer
documents and ship to W/H documents Ekornes
Activity data needs to captured in report / shared through data connectivity Short-sea shipping line activity (managed by LSP)
Future operating model

Results
Based on Deloitte’s approach, the global sourcing project resulted in annual logistics cost
savings for European road freight, warehousing and global deep-sea shipping of more
than 30%, amounting to more than NOK 50M annual cost reduction. Moreover, the
future operating model enables increased Supply Chain control allowing for further
improvement in the years to come
Negotiation package
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Our credentials – Cost-to-Serve Analysis
Supply Chain optimization assessment at a leading agricultural company
Supply Chain trends Challenge 2011 compound feed & vitamins revenue and cost breakdown (kr. M)
To improve the operating margins of one of Europe’s largest agricultural companies, -3%
Deloitte was asked to identify improvement opportunities in the Supply Chain operations.
Overhead
Warehousing & terminals Production
Despite of larger volumes, the operating margins of the focus area animal feed
production, are heavily under pressure
Inbound transport

Distribution
Feed Non-feed No supply Net CtS Raw Sales & Supply
revenue revenue chain CtS feed & material admin chain
P&L link vitamins costs* costs costs
Analytics approach
revenue and profit
Total operating costs

Approach
Inbound* Production Distribution Overhead
A tailored end-to-end Supply Chain model was developed to assess its strategic, Specialty cattle feed
Our credentials operational and supporting processes for each Supply Chain area. To get insight in the
Medicated pig feed
Organic feed
client’s operational costs, cost drivers and Supply Chain performance, an order-line Std poultry feed
detailed Supply Chain cost-to-serve analysis (using >200.000 orders) was performed.
Std cattle feed
Why Deloitte?
Std pig feed
Quantitative performance analysis were combined with in-depth operational Total cost comparison
understanding through site visits, workshops and interviews across the organization
Results
The assessment identified 21 improvement areas in their operations, which were
grouped to eight opportunities, with estimated Supply Chain cost savings of 10-20%.
After presenting these results, Deloitte was asked to support the implementation
program and realize the estimated cost savings. The cost-to-serve analysis provided
detailed insights in the cost of supplying each customer and product and to determine
and benchmark key cost areas and performance
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Our credentials – Returns Prediction and Tracking
Reducing costs on reverse logistics by analyzing the end-to-end process

A global technology firm struggled with high costs on their service logistics. The scope of
service logistics consisted of shipping parts to client sites and take care of returning the
defective parts to global re-manufacturing sites. Clients were served with premium
service levels (i.e. <4 hour recovery). Deloitte was asked to make a fact based assessment
Supply Chain Analytics of the service logistics process and advice how costs could be reduced
Analytics approach
Approach
During the process the reasons why customers contacted the service desk Sankey diagram of product flow
Our credentials were analyzed, it turned out that 80% of the problems could be resolved by online
support. From the remaining 20%, 80% of the problems could be resolved by the second
line support. For the 4% that could not be resolved this way, a replacement needed to be
Why Deloitte?
sent. After inspection, it turned out that half of these returned units actually did not have
any malfunctions.
Results
The result of the analysis was that the main opportunity for savings was not in
the cost for logistics (driven by the stringent service levels and unpredictable failure
rates), but was found in avoiding cost (i.e. reducing the
number of replaced products that turned out to be non- Overview of quick wins
defective). This savings should be realized by continuously improving online information
and the customer services departments
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Supply Chain trends
Analytics approach
Our credentials
Why Deloitte?
Why Deloitte?
Previous | Next

Why Deloitte?
We are globally recognized as the market leader in Supply Chain consulting
services
Supply Chain trends Our Supply Chain practice at-a-glance Supply Chain professionals
• Approximately 2,400 practitioners with deep experience in 40+ locations EMEA
globally US and Canada
Digital Supply Networks • #1 leader in Supply Chain Management Consulting in Europe – Kennedy 810
2015 1,210 professionals
professionals
• Deep expertise in market offerings such as Logistics & Distribution, Supply
Supply Chain Analytics Chain Planning, and Sourcing & Procurement
• “Multiple clients cite Deloitte’s breadth and depth of services in Business APAC
Operations Consulting as top strength.”
Analytics approach • “Deloitte has a very well-crafted and well-executed industry go-to-market 260
LATCO professionals
strategy that focuses on the intersection of industry sectors and service
lines. Several clients called out industry expertise as area of strength for 120
Our credentials Deloitte.” professionals
Our Supply Chain offerings

Why Deloitte?
Manufacturing
Supply Chain Product Supply Chain Sourcing & Logistics & Supply Chain
Strategy & Sustainability
Strategy Development Planning Procurement Distribution Analytics
Operations
Create, refine, and Integrate and Define processes Enhance spend Improve Determine the Increase Transform data
implement supply streamline that balance management operations of the best strategy and enterprise value into intuitive,
chain strategies product supply and services for both entire value chain practices for by improving interactive
that support the innovation and demand to indirect and direct by leveraging lean moving the right social and visualizations that
overarching product develop a method material sourcing concepts to help product to the environmental innovate how our
business strategy development that meets and supply reduce waste and right place at the performance by clients approach
related processes sourcing, management complexity right time investing in their toughest
production, and considering resource mgt., issues
delivery import duties and supply chain,
requirements custom strategy, and
Previous | Next regulations reporting
Why Deloitte?
We understand what your challenges are, as well as the current and future
analytics market, placing Deloitte in a unique position to assist you
Supply Chain trends Global Reach Recognized leader in Analytics
• With over 9,000 BI and
• Deloitte shows growth and
Analytics resources
innovation leadership through
Digital Supply Networks worldwide, we are recognized
investment in acquisitions (with 22
as one of the leading BI&A
analytics-related acquisitions since
service providers
2010), technology partnerships,
Supply Chain Analytics • Unique combination of deep
alliances and intellectual property.”
supply chain expertise, BI&A
• “Deloitte has a strong focus on
capability and understanding
innovation, including Deloitte's
of decision-maker’s roles to
Analytics approach maximize value
Insight Driven Organization (IDO)
Framework, breakthrough labs to
meet clients' demands, and Highly
Our credentials Vendor independent Immersive Visual Environment
(HIVE) labs, as well as a breadth of
• We recognize the importance of the right
analytics accelerators.”
technology, but we also understand the
Why Deloitte? Source: Gartner, Magic Quadrant for Business • “All is available through its global
necessity of finding pragmatic and Analytics Services, Worldwide. September 2015 network of 21 Global Delivery
efficient ways to iteratively build the
Centers and 25 Deloitte
required capabilities
Greenhouses.”
• Our relationships with, and
understanding of, technology vendors is
strong, covering an impressive range of Experienced in Supply Chain Analytics
different products – but, crucially, we
remain vendor independent.
• We are focused solely on helping clients
to develop a practical Information and
Analytics strategy - incorporating the
necessary technologies and introducing
the most appropriate vendors.
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Why Deloitte?
Deloitte Greenhouse offers different types of immersive analytics sessions
Supply Chain trends Analytics Lab

The Analytics Lab, hosted in Deloitte’s innovative Greenhouse environment, is an inspiring and energetic workshop to uncover the
Digital Supply Networks impact of data analytics and visualization for your organization. Participants are provided with a unique opportunity to experience
hands-on analytics in a fun and innovative setting, facilitated by Deloitte’s industry specialists and subject matter experts.
Analytics approach
Our credentials
Why Deloitte?
Art of the Possible Visioning

An inspiring two-hour session A collaborative session to wireframe
including analytics and data a custom analytics or visualization
visualization demos, used as a solution, supporting a selected
starting point for an open business challenge. The session is
discussion on the potential impact facilitated by Deloitte’s user
of analytics for your organization. experience, data visualization and
analytics experts.
Previous | Next

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms
are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.nl/about for a more detailed description of DTTL and its member
firms.
Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500®
companies through a globally connected network of member firms in more than 150 countries bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges.
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Point of View

Supply Chain Analytics

Deloitte The Netherlands, 2016

Digital Supply Networks

Supply Chain Analytics

Tracker is an interactive menu Deloitte's Point of View on Supply Chain Analytics 3

Digital Supply Networks

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Digital Supply Networks

Supply Chain Analytics $1,245 per

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Digital Supply Networks

Supply Chain Analytics

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Digital Supply Networks

Supply Chain Analytics

Early 20th century

4th Industrial Revolution

Optimize Traditional Objectives… …and New Objectives… …By Better Managing

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Supply Chain Analytics

Analytics approach Quality Sensing

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Our credentials Physical Digital

3 Digital to Physical: Deliver information in automated and more

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Digital Supply Networks Insights Business insights, AI, and analytics

Visibility Aggregate data for end-to-end visibility

Data Integration Integrated nodes to create a single point

Network Data Synchronized data gathering to reduce

Digital Supply Networks IBM Watson, Elementum,

Supply Chain Analytics

Products Consumers Support

Existing Systems SAP / SAP Hana, Microsoft Azure,

Digital Supply Networks

Supply Chain Analytics

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Digital Supply Networks

Supply Chain Analytics

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Digital Supply Networks

Critical success factors

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Digital Supply Networks

Supply Chain Analytics

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• OTIF analysis (26)

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Analytics approach Clear understanding of all steps

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Previous | Next Optimization opportunities

Supply Chain trends Challenge

Results Spend dashboard

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Supply Chain trends Challenge

Mapping of analytics priorities

The coverage patterns collected, transformed into