Optimizing Your Supply Chain with Neo4j
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This document discusses optimizing supply chains with Neo4j graph databases. It notes that supply chains have complex relationships that are naturally modeled as graphs. It promotes Neo4j's graph database, tools, and algorithms for building digital twins of supply chains for purposes like visibility, optimization, and calculating scope 3 carbon emissions. Examples are given of companies using Neo4j for supply chain applications like routing, asset management, and equipment maintenance.
Optimizing Your Supply Chain with Neo4j
- 1. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. 1 Optimizing Your Supply Chain with Neo4j
- 2. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. Senior Director, Strategy & Innovation michael.moore@neo4j.com Michael Moore, Ph.D.
- 3. © 2022 Neo4j, Inc. All rights reserved. Consider: What Drives Your Business? It’s not the numbers, it’s the relationships behind them Plants Warehouses Suppliers Distributors Competitors Partners Regulations Employees Citizens Customers Products Parts Services Regions
- 4. © 2022 Neo4j, Inc. All rights reserved. This is a Graph
- 5. © 2022 Neo4j, Inc. All rights reserved. “By 2025, graph technologies will be used in 80% of data and analytics innovations...” Top 10 Trends in Data and Analytics, 11 May 2020, Rita Sallam et al.
- 6. © 2022 Neo4j, Inc. All rights reserved. 6 Graphs have low complexity and high fidelity SQL RDBMS ER Diagram Graph (“Whiteboard”)
- 7. © 2022 Neo4j, Inc. All rights reserved. Depict the business as a graph Squash the graph into tables Jam in foreign keys to relate the records, populate global index 7 Cheap Memory makes Graphs Compelling https://jcmit.net/memoryprice.htm SQL RDBMS workarounds to conserve memory 1979: Oracle v2.0 Released (yes, 43 years ago!) = hidden technical debt per MB per MB
- 8. © 2022 Neo4j, Inc. All rights reserved. QUERY PERFORMANCE AS # OF JOINS INCREASE 8 © 2023 Neo4j, Inc. All rights reserved. Connectedness and Size of Data Set Response Time Relational and other NoSQL databases Native Graph Database 1000x Advantage Minutes to milliseconds 5+ hops 3+ degrees Thousands of connections 0 to 2 hops 0 to 3 degrees Few connections
- 9. © 2022 Neo4j, Inc. All rights reserved. Graphs Naturally Handle Complex Data A B C D E A B C D E One-to-Many Relationships Across Many Entities Wide Data Complex Data Hierarchical & Recursive Data Many-to-Many Relationships Nested Tree Structures Recursion (Self- Joins) Deep Hierarchies Link Inference (If C relates to A and A relates to E, then C must relate to E) Node Similarity Hidden Data Legacy Data Frozen Data Legacy SQL Systems Data Lake Fact Tables Graph Data Science - Machine Reasoning A C E
- 10. © 2022 Neo4j, Inc. All rights reserved. 10 Neo4j, Inc. All rights reserved 2022 Neo4j 5 Graph Data Platform Neo4j Database User Tools • Developer Tools (Desktop, Browser, Data Importer) • Graph Visualization (Bloom) • Administration (Neo4j Ops Manager) Language Drivers & Connectors • Language Drivers (Java, JavaScript, .NET, Python, Go) • Spring Data & GraphQL Frameworks • Kafka (Streaming), Spark, BI Connectors Neo4j Aura • Cloud Database-as-a-Service Graph Data Science • Enhanced Analytics and Graph-Native ML Language Standards • GQL, openCypher
- 11. © 2022 Neo4j, Inc. All rights reserved. Rich Tooling For Rapid Development Local database for rapid dev Visualize and explore your data API-driven intelligent applications Query editor and results visualizer data Importer Code-free data loader ops manager Centralized management 11
- 12. © 2022 Neo4j, Inc. All rights reserved. Demand Shaping Inventory Positioning Perfect Fulfillment Sustainability Consider a omni-channel, multi- echelon supply chain and demand & supply risk to determine optimized inventory levels Combine distributed order management with warehouse and transportation optimization and enable automation of processes Reduce energy consumption across operations, measure risks, measure gas emissions, adopt a circular economy and measure the social impact of your supply chain Understand customers and market trends to dynamically adjust segmentation, promotions and generate highly accurate forecasts Demand Shaping Inventory Positioning Perfect Fulfillment Sustainability Supply Chain Complexity Issues End-to-End Supply Chain Visibility
- 13. © 2022 Neo4j, Inc. All rights reserved. Supply Chains Are Graphs • Global Supply Chain Visibility • Routing, Logistics, Distribution • BOM Management • Supply Chain Resiliency • Scope 3 Carbon Reporting Supply chains have complex linkages and deep hierarchies and are most naturally modeled as a graph.
- 14. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. 14 GHG Reporting Requirements GHG Reporting Timelines • March 21, 2022: SEC released new proposals for climate- related risk disclosures. • February 2024: First disclosures on Scope 1 and 2 for large organizations. • February 2025: Disclosures on Scope 3 emissions and emissions intensity required for large organizations. Organizations' supply chains often account for more than 90% of their greenhouse gas (GHG) emissions, when taking into account their overall climate impacts.
- 15. © 2022 Neo4j, Inc. All rights reserved. Formidable Data Collection Requirements Upstream Value Chain Data x Emission Factors + Downstream Value Chain Data x Emission Factors + Existing Scope 1 and Scope Estimates = Total Carbon Estimate
- 16. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. Value Chain Complexity Calculation Complexity
- 17. © 2022 Neo4j, Inc. All rights reserved. Supply Chain Digital Twins Digital Supply Chain Twins—Conceptual Clarification, Use Cases and Benefits Benno Gerlach, Simon Zarnitz, Benjamin Nitsche and Frank Straube Logistics 2021, 5, 86. https://doi.org/10.3390/logistics5040086 Network Level Site Level
- 18. © 2022 Neo4j, Inc. All rights reserved. 18 OrbitMI Maritime Routing • Digital twin PLM system with full BoM for all Army equipment, including costs, armaments, force posture and readiness. • Complex analysis is 7.5 X faster • Rapid “What-If” analysis enables more agile response to global scenarios U.S. Army Force Readiness • Knowledge graph of 27 Million warranty & service documents • Graph AI learns failure mode “prime examples” to anticipate maintenance • Improves equipment lifespan and customer satisfaction Caterpillar AI for Maintenance Customer Examples of Supply Chain Twins • Digital twin of global maritime routes • Subsecond route planning • Global carbon emissions reduced by 60,000 tons annually • $12-16M ROI for OrbitMI customers
- 19. © 2022 Neo4j, Inc. All rights reserved. Supply Chain Optimization using Neo4j Neo4j Graph Data Science Library Neo4j Database Neo4j Bloom Inference & Predictions Graph Digital Twin Visualization & Investigation
- 20. © 2022 Neo4j, Inc. All rights reserved. Graph Algorithms in Supply Chains Graph algorithms enable reasoning about network structure K-Shortest Paths to identify the best alternative routes
- 21. © 2022 Neo4j, Inc. All rights reserved. 21 Graph Algorithms in Supply Chain Graph algorithms enable reasoning about network structure K-Shortest Paths to identify the best alternative routes Betweenness Centrality to find critical bottlenecks or risk points Degree Centrality to see distribution centers with high use
- 22. © 2022 Neo4j, Inc. All rights reserved. Graph Algorithms in Supply Chain Graph algorithms enable reasoning about network structure K-Shortest Paths to identify the best alternative routes Similarity to find providers that can step in during a disruption Betweenness Centrality to find critical bottlenecks or risk points Degree Centrality to see distribution centers with high use
- 23. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. Demo: Logistics Pathfinding with GDS 23
- 24. © 2022 Neo4j, Inc. All rights reserved. 24 North American Rail Network (NARN) Digital Twin North American Rail Network Total 527K Miles of Track USDOT NARN GEOJSON datasets - nodes and lines 253K nodes, 715K relationships, 1GB https://github.com/graphadvantage/neo4j-na-rail-network Norfolk Southern rail network graph plotted using NeoMap
- 25. © 2022 Neo4j, Inc. All rights reserved. Neo4j Graph Database Yards connected by track type Graph Data Science - Projecting Network Views main-lines-network Has low bridges & tunnels double-stack-network No low bridges & tunnels Neo4j Graph Data Science Projected virtual graph views standard rail car double-stack intermodal rail car
- 26. © 2022 Neo4j, Inc. All rights reserved. 26 Neo4j Pathfinding //Project main lines CALL gds.graph.project( 'main-lines-network', 'Node', {relType: {type: 'CONNECTS_MIO', orientation: 'UNDIRECTED', properties: {miles: {property: 'miles', defaultValue: 1}}}}, {}) //Project double stack lines CALL gds.graph.project( 'double-stack-network', 'Node', {relType: {type: 'CONNECTS_DS', orientation: 'UNDIRECTED', properties: {miles: {property: 'miles', defaultValue: 1}}}}, {}) //Find a route CALL gds.shortestPath.dijkstra.stream( 'main-lines-network', {relationshipWeightProperty: 'MILES', sourceNode: id(start), targetNode: id(end)}) What is the lowest cost path between two points? “Cost” could be physical distance, fuel consumption, trackage fees, carbon emissions, etc Dijkstra shortest path solution visualized in NeoDash Minimize this cost
- 27. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. Demo: Manufacturing Supply Chain Analytics Google SC Twin + Neo4j 27
- 28. © 2022 Neo4j, Inc. All rights reserved. ● Purpose-built supply chain twin solution ● Planet-scale Infrastructure as a Service. Fully managed Multi Cloud Data Warehouse ● Industry-leading and flexible ML/AI toolchain ● Global market leader in graph technology ● Aligned with Google Cloud Supply Chain Twin solution ● Compliments Google Cloud AI/ML and analytics technologies Neo4j & Google Cloud: A powerful combination for supply chain transformation
- 29. © 2022 Neo4j, Inc. All rights reserved. Supply Chain Twin BigQuery Event processing Cloud functions PubSub Use cases User Engagement Neo4j Connector for BI Neo4j Bloom Monitoring and analysis / Custom applications Analytics Graph queries Looker Graph store Supply Chain AI Demand Shaping Inventory Positioning Perfect Fulfillment Sustainability Vertex AI Dataflow Data Engineering Feature Engineering Graph Data Science Data Sources Private ERP WMS TMS Telemetry IoT Partner (ISV & Tech) Community Suppliers Logistics Providers Customers Transportation Visibility Public Weather Risk Sustainability Healthcare Climate Social Maps Events Canonical Data Model Supply Chain Pulse Google Workspace
- 30. © 2022 Neo4j, Inc. All rights reserved. Google Supply Chain Twin L2 Graph Data Model
- 31. © 2022 Neo4j, Inc. All rights reserved. 31 The Modern Supply Chain is a Knowledge Graph https://www2.deloitte.com/content/dam/insights/us/articles/3465_Digital-supply-network/DUP_Digital-supply-network.pdf
- 32. © 2022 Neo4j, Inc. All rights reserved. 32 Knowledge Graphs • Ontologies • Taxonomies • Friendly Naming • Schema/Structure • Master Data • Slowly Changing Dims • Hierarchies • Mappings • Business Processes • Signal Events • Granular Detail • Real Time Context • Communities • Dependencies • Isomorphic Subgraphs • ML Predictions A knowledge graph combines consistent business semantics, entities extracted and unified from source data, detailed transactional flows, and in-graph analytics/inference for decision support. Semantic Conventions Resolved Entities Operational Transactions Graph Inference
- 33. © 2022 Neo4j, Inc. All rights reserved. 33 Advantages of Graphs FAST ELEGANT EFFICIENT UNIFYING INSIGHTFUL Relationships (and nodes) are stored in memory for real-time access Complex business processes are simply and faithfully represented Queries traverse locally-linked objects with consistent performance Creates a flexible, connected view across disparate data domains Builds up context, enabling reasoning, inference and predictions
- 34. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. 34 Thank you! Contact us at sales@neo4j.com
- 35. © 2022 Neo4j, Inc. All rights reserved. © 2022 Neo4j, Inc. All rights reserved. DEMO
- 36. © 2022 Neo4j, Inc. All rights reserved. Scope 3 Upstream Data Types Scope 3 Category Primary Data Source Secondary Data Source 1. Purchased goods and services • Product-level cradle-to-gate GHG data from suppliers calculated using site-specific data • Site-specific energy use or emissions data from suppliers • Industry average emission factors per material consumed from life cycle inventory databases 2. Capital goods • Product-level cradle-to-gate GHG data from suppliers calculated using site-specific data • Site-specific energy use or emissions data from capital goods suppliers • Industry average emission factors per material consumed from life cycle inventory databases 3. Fuel- and energy- related activities (not incl in scope 1 or scope 2) • Company-specific data on upstream emissions (extraction of fuels) • Grid-specific T&D loss rate • Company-specific power purchase data and generator-specific emission rate for purchased power • National average data on upstream emissions (e.g. from life cycle inventory database) • National average T&D loss rate • National average power purchase data 4. Upstream transportation and distribution • Activity-specific energy use or emissions data from third-party transportation and distribution suppliers • Actual distance traveled • Carrier-specific emission factors • Estimated distance traveled by mode based on industry-average data 5. Waste generated in operations • Site-specific emissions data from waste management companies • Company-specific metric tons of waste generated • Company-specific emission factors • Estimated metric tons of waste generated based on industry-avg data • Industry average emission factors 6. Business travel • Activity-specific data from transportation suppliers (e.g., airlines) • Carrier-specific emission factors • Estimated distance traveled based on industry-average data 7. Employee commuting • Specific distance traveled and mode of transport collected from employees • Estimated distance traveled based on industry-average data 8. Upstream leased assets • Site-specific energy use data collected by utility bills or meters • Estimated emissions based on industry-average data (e.g. energy use per floor space by building type)
- 37. © 2022 Neo4j, Inc. All rights reserved. Category Primary Data Examples Secondary Data Examples 9. Transportation and distribution of sold products • Activity-specific energy use or emissions data from third-party transportation and distribution partners • Activity-specific distance traveled • Company-specific emission factors (e.g., per metric ton-km) • Estimated distance traveled based on industry-average data • National average emission factors 10. Processing of sold products • Site-specific energy use or emissions from downstream value chain partners • Estimated energy use based on industry-average data 11. Use of sold products • Specific data collected from consumers • Estimated energy used based on national average statistics on product use 12. End-of-life treatment of sold products • Specific data collected from consumers on disposal rates • Specific data collected from waste management providers on emissions rates or energy use • Estimated disposal rates based on national average statistics • Estimated emissions or energy use based on national average statistics 13. Downstream leased assets • Site-specific energy use data collected by utility bills or meters • Estimated emissions based on industry-average data (e.g., energy use per floor space by building type) 14. Franchises • Site-specific energy use data collected by utility bills or meters • Estimated emissions based on industry-average data (e.g., energy use per floor space by building type) 15. Investments • Site-specific energy use or emissions data • Estimated emissions based on industry-average data Scope 3 Downstream Data Types
- 38. © 2022 Neo4j, Inc. All rights reserved. Scope 3 Requires Upstream and Downstream Reporting https://www.epa.gov/climateleadership/scope-3-inventory-guidance
- 39. © 2022 Neo4j, Inc. All rights reserved. Granular Emission Factors for all GHG sources 4700+ Scope 3 Emission Factors ● Upstream (WTT) ● Downstream ● Freight Modality ● Carrier Type & Size ● Fuel Type ● UoM ● GHG Unit https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2022 39