Business Intelligence and Analytics: A Command and Control Center for Supply Chain Excellence - Thomas L. Dadmun, ADTRAN
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The document discusses the challenges faced by Adtran, a telecom company, in managing business intelligence and analytics to improve supply chain operations. Key issues include reliance on error-prone spreadsheets and a lack of visibility into real-time data, leading to inefficiencies across various departments. The company evaluated multiple business intelligence vendors and aims to implement solutions that demonstrate a 142% ROI in the first year by streamlining reporting processes and enhancing data accuracy.
Business Intelligence and Analytics: A Command and Control Center for Supply Chain Excellence - Thomas L. Dadmun, ADTRAN
- 1. Business Intelligence and Analytics: Command and Control Center C d dC t lC t for the Chief Supply Chain Officer Tom Dadmun VP, Program Management Office
- 2. Session Agenda ADTRAN – The Network Access Company p y Challenges Abound!! In today’s ever changing business landscape RCA – Root Causal Analysis – What is the Problem The Vision – Research & Benchmarking “ Best In Class “ Establishing Proof Points, Gaining Mindshare Incorporating BI into the Culture / DNA of the company Lessons Learned – Take Aways
- 3. Corporate Statistics • FY2011 Revenue: $717 Million • Large established Presence in Telecom g Equipment Industry • Employees: ~1,800 total • Headquarters: Cummings Research Park, Huntsville, Alabama • Sales offices around the world • In‐house and outsourced manufacturing • Long Term Financial Strength
- 4. Broadband Mobility Demand Is Exploding 5B Mobile Phones Globally Smartphones Are Pervasive True Mobility Is No Longer A Convenience Mobility – Voice over Wi-Fi, Facetime New D i N Devices R l O Wi l Rely On Wireless Connectivity Cloud – iPADs Mobile Data Traffic Is Growing Exponentially Wi-Fi Data Offload To Fixed Network Is Necessary
- 5. Challenges Abound in Today’s Economy • Significant Growth in telecom industry • Government programs for BBS Broadband Stimulus • E Economy overall staggers ahead ll t h d • Forecasting with historical algorithms?? • Suppliers, subcontractors, manufacturing, customers!!! • In a recession you have frantic competition
- 6. Current Landscape of Problems • Current data everywhere – spreadsheet mania • The old “ islands of information “ still exist • How do you collaborate with disparate information? • Spaghetti systems – Where’s the data? • 80% - 20% Rule Reversal
- 7. Problem Statement • Lack of ability to q y quickly py provide visibility into near time data • Unable to quickly manage the business, business through KPI’s transactional KPI s, reporting and analysis.
- 8. And… Get the Data Right! • Multiple documented studies p p show Spreadsheets are prone to errors – KPMG found 91% of 22 spreadsheets taken from an industry sample taken from an industry sample contained errors. – Olson & Nilsen found a 21% cell error rate among experienced spreadsheet t i d dh t users. – The University of Michigan found an 11.3% cell error rate among inexperienced spreadsheet users.
- 9. The current business infrastructure provides limited visibility & synchronization Th tb i i f t t id li it d i ibilit & h i ti Suppliers Manufacturing Divisions Channels End Customer Distributors Carriers CN Subs S b ADTRAN Enterprise EN Distributors VARs
- 10. Suppliers Manufacturing Divisions Channels End Customer Supply Chain Planning Distributors Carriers CN Order Allocation & Promising Supply Collaboration S l C ll b ti ADTRAN Demand Planning Collaborative Sourcing EN Enterprise Distributors Transportation Mgt. Demand Collaboration & Optimization Ingram VARs Executive Business Intelligent Dashboard
- 11. Quotes worth mentioning…… “ If the rate of change inside your “ If h f h i id organization is slower than the g rate of change outside…….. the end is near” Jack Welch Jack Welch
- 12. Due Diligence • Evaluated 8+ vendors, narrowed field down to two: – Feature & functionality matrix comparison • Engaged Industry Experts for Analysis – Aberdeen, Gartner, Forrester and others • C d t d Conducted on site benchmark visits: it b h k i it – Vanderbilt University , Alabama Farmers Cooperative • Reference Concalls Reference Concalls – Cisco, Alcatel –Lucent • Academia – Georgia Tech, UT, UAH
- 13. Analyst Ratings – Ab d A l t R ti Aberdeen Group G
- 14. Process Methodology • Conducted demos to cross functional user group of 20 g p members • Presented business assessment of BI toolset to Steering Committee C itt – Business Case – ROI – Expected Results – Timeline – Measurement Criteria – Program Management Reviews – Contingencies
- 15. Quotes worth mentioning…… "There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things" things Jean Jacques Jean-Jacques Rousseau
- 16. Return on Investment Solutions reviewed had costs including: g Initial Investment Implementation Costs Ongoing Service Costs Ongoing Service Costs Training Costs • This would support up to 175 users. • Based on anticipated cost savings, a 142% ROI will be realized in year one. (7.1 month payback) • IT savings alone will be approx. $150K. Individual l ll b $ d d l departments could pay for their own licenses based on their own projected usage / savings on their own projected usage / savings
- 17. Benefits / Risks B fit / Ri k Benefits: – Abstracts reporting from underlying database allowing for easier plug in to different applications. (e.g. new ERP) – Ability to understand rearrange and dig into results on your understand, desktop – Provide a single data point for all metrics, eliminate need for re- working numbers through Excel Risks: – Oracle Portal is nearing EOL. – All reports will have to be rewritten if we replace/upgrade Baan – Excel is prone to mistakes and consistently p p y provides different values from different perspectives.
- 18. Anticipated Cost Savings Number of hours spent each week running reports and hand processing in Excel that could be saved each week: Functional Area Hrs / Week 7 Departments 102.98 In addition up to 80 hours/week could be saved developing custom reports in IT That is potentially 4.73 people or $355K / year
- 20. ADTRAN’s Hierarchy of Supply Chain Metrics Demand Visibility Demand Visibility Forecast Accuracy Performance Tradeoffs On Time Delivery SC Cost Inventory Revenue Margin Supply Chain Performance Turns / S&OP Capacity Headcount DOS Management Inv. Logistics Mat’l % of Cycle Count Mfg. Aging Spend Revenue Accuracy Cycle Time Inventoryy Weeklyy Purchase Negotiated g RM/FG DC OTD Operational Projection Accuracy Freight Spend Price Variance Savings Efficiency Root Cause Effectiveness Contract Quarterly Turnkey vs. NPO Open Material Planned Build Manufacturer Material $’s RMS % Requisitions P.O. OTD FG Plan Performance Spend Deliveries
- 21. Roll out - Deployment Phase one Ph Sales Portal Executive Dashboard Executive Dashboard Supply Chain Analytics Operations O ti Procurement Planning / Forecasting Planning / Forecasting S&OP Meetings Finance BOD Presentations
- 22. Quotes worth mentioning…… “ There is nothing so useless as doing efficiently that which should not be done at all done at all” • Peter Drucker
- 23. Phase Two - Prioritization • Manufacturing • Q Quality y • Inside Sales • Transportation • Treasury • Cost Accounting • Human Resources • Marketing
- 24. Results • IT department stated that the project was able to reduce the effort by 50% on 10 people who spent 40% of their time currently developing reports. • In accounting and operations, it was identified that 100 hours per week was saved amongst early adopters. • With this success and the momentum growing we expect to utilize this tool across the entire enterprise.
- 25. Wrap Up • Normal “behavioral change” hurdles to l “b h l h ” h dl overcome • Training methodology needs to be managed g gy g • Consistency versus “Out of Control!” Consistency versus Out of Control! • Champions emerge
- 26. Thank you y Tom Dadmun, VP, PMO ADTRAN 256‐963‐6872 Tom.dadmun@adtran.com