Supply Chain Systems Planning and Execution

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Supply Chain SystemsPlanning and Execution

• Pratik J. Parikh, Ph.D.
• Science Team, Global RD
• Manhattan Associates, Inc., Atlanta, GA

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Agenda

• Supply Chain Systems
• SC Planning Systems
• SC Execution Systems
• What MA offers?
• Science Team at MA

• Supply Chain Systems
• SC Planning Systems
• SC Execution Systems
• What MA offers?
• Science Team at MA

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Supply Chain Ecosystem
POINT OF CONSUMPTION



SUPPLIERS
RAW MATERIALS SUPPLIERS
DISTRIBUTION
CONSUMERS
FACTORIES
Retail
Traditional Pull
Branded
International
Restaurant
Large Domestic
Dealership
Cross-Dock/Flow Through
Private Label
Small Domestic
Outlet
THIRD PARTY LOGISTICS
TRANSPORTATION PROVIDERS
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Supply Chain Challenges
globalization outsourcing
shorter product lifecycles
emerging technologies
regulations
rising fulfillment costs agility
integration
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SC Planning vs. SC Execution
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SC Vendors
Source AMR Research Summary in Modern Materials
Handling, May 2007
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Market for SC Planning and Execution Systems
Source AMR Research Summary in Modern Materials
Handling, May 2007
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SCM Market Size
Revenue Growth Rates

• Total SCM market expected to grow 6 (CAGR)
  through 2010
• Warehouse Mgt (WMS) 6
• Transportation Mgt (TMS) 6
• Order Management 4
• Demand Planning Forecasting 5
• Inventory Configuration Policy 10
• Other SCM 8

Source AMR Research Supply Chain Management
Applications Report 2005-2010, published August
2006
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Quiz!
Can you name a few SC planning and execution
problems?
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Agenda

• Supply Chain Systems
• SC Planning Systems
• SC Execution Systems
• What MA offers?
• Science Team at MA

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SC Planning Components

• Network Design
• Number, location, and size
• Advanced Planning
• Financial
• Store Clustering
• Product
• Promotion
• Demand Forecasting
• Replenishment

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DC
Store
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Quiz!
What would your objective function be for the SC
network design problem?

• Cost
• Facility
• Transportation
• Inventory
• Labor

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

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Agenda

• Supply Chain Systems
• SC Planning Systems
• SC Execution Systems
• What MA offers?
• Science Team at MA

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SC Execution Systems

• Transportation Management
• Single stop and multi-stop
• TL and LTL
• Parcel deliveries
• Labor Management
• Performance tracking
• Schedule
• Warehouse Management
• Slotting Optimization
• Distributed Order Management
• Reallocate inventory

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WMS Modules
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Slotting Optimization
Products are often slotted correctly initially,
but productivity degrades as product demand
changes
and so on !
Slotting Optimization capabilities enable
sustained productivity
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Items Not In Optimal Locations
Before Re-Slot
50 lbs.
Demand -
300 cu. ft/wk
Demand -
300 cu. ft/wk
Low demand
60 lbs.
item
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Goals of Slotting Optimization
After Re-Slot
Low demand
item
Demand -
Demand -
300 cu. ft/wk
300 cu. ft/wk
60 lbs.
50 lbs.
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Distributed Order Management
Sourcing Allocation
DemandPrioritization
POVisibility
In-transit Visibility
OH Inventory Visibility
1
4
2
3
Suppliers/Factories
6
Hub
7
8
5
DistributionCenters
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Quiz!
I just discussed a few SC Execution Systems, but
intentionally left out a few more. Can you name
them?
Information (e.g., RFID) Yard Reverse
Logistics Trading Partner
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Agenda

• Supply Chain Systems
• SC Planning Systems
• SC Execution Systems
• What MA offers?
• Science Team at MA

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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
• 2000 employees worldwide
• Acquisitions include Intrepa LLC, Logistics.com,
  ReturnCentral, Inc., Streamsoft LLC, Evant, etc.
• January 2006, the Science Team was officially
  instated

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Global Presence
Nordics
Bracknell
Moscow
Utrecht
Mishawaka
Paris
Boston
San Fran
Nantes
Atlanta
Tokyo
Shanghai
Dubai
Mexico City
Bangalore
Singapore
Santiago
Sydney
Melbourne
Cape Town
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MAs Product Footprint
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Warehouse Management Market Share
2005 Total Revenue
1.1 Billion Market
Source ARC Advisory Group, WMS Worldwide
Outlook, 2006
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Quiz!

• What type of a software vendor is MA?
• ERP
• SC Planning
• SC Execution
• 1 and 2
• 2 and 3
• 1, 2, and 3

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Agenda

• Supply Chain Systems
• SC Planning Systems
• SC Execution Systems
• What MA offers?
• Science Team at MA

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Science Team Objectives

• 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
• Deliver Support
• Deliver timely and high quality science designs
  required for planned product releases, and assist
  them into production
• Communicate Collaborate
• Strive to ensure the success of public-facing
  science related company initiatives and alliances
  within our partner, client, industry, and
  academic communities
• 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

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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, etc.)
• Programming languages (C, C, Java, VBA, etc.)
• Development support

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Manhattan Associates Science Group

• Advisory Board
• Academia
• Profs. John Bartholdi and
• Martin Savelsbergh (Georgia Tech)
• Prof. Garrett J. van Ryzin (Columbia University)
• Prof. Cynthia Barnhart and
• Larry Lapide, Ph.D. (MIT)
• Industry
• Paul AntonyVP Supply Chain Systems, Wal-Mart
• Masao NishiAVP Supply Chain Mgt, SYSCO Corp.

• Science _at_ MA
• Pervinder Johar (SVP/CTO)
• Mark Pluta (Vice President)
• Jeff Beadle (Sr. Director)
• Kim Ross, Ph.D. (Director)
• Jiefeng Xu, Ph.D. (Sr. Principal)
• Michael Zhang, Ph.D. (Sr. Principal)
• Rajesh Veliyanallore, Ph.D.
• Srinivas Nandiraju, Ph.D.
• Margarit Khachatryan, Ph.D.
• Pratik J. Parikh, Ph.D.
• Burak Karacik, Ph.D.

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For Additional Information

• Pratik J. Parikh, Ph.D.
• Science Team, Global RD
• 678.597.7349
• pparikh_at_manh.com
• www.manh.com
• 2300 Windy Ridge Parkway,10th Floor
• Atlanta, GA 30339
• USA