Supply Chain Reinvention

© 2020, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark.

Ramzi BEN ROMDHANE

AWS Industry Lead Manufacturing France

Supply Chain Reinvention


Manufacturing Webinar Series

MON

Oct 19AWS in Manufacturing

TUE

Oct 20Reinventing Product Design with AWS

WED

Oct 21Smart Factory & AWS

THU

Oct 22Supply Chain Reinvention

FRI

Oct 23SAP in the Cloud for Manufacturers


Introduction

John McFall

Global Advisor in Supply Chain and Operational Excellence

Amazon Web Services

Please post your questions for Q&A into the webinar chat


supply chain

Digital Supply Chain

John McFallGlobal Specialty Practice – Supply Chain and Operational Excellence

Johnmcfall5

+44 7920 412275

[email protected]

mailto:[email protected]


PLAN

Optimally plan Supply, Demand

Inventory, and Capacity

INSIGHTS

Ingest data from systems and partners, gain

the insights and improve the operations.

EXECUTE

Source, make, deliver as per the

plan, with real time tracking

COLLABORATE

Align trading partners to confirm your

plans to be executable

Synchronizing End to End Supply ChainDraw Insights from Planning to Execution

Supply Chain Control Tower


Best Practices learned from our customers

Real time visibility

in end-to-end supply

chain is table stake

Data to actionable

insights to improve

execution and planning

Information and

intelligence integrated

from external data sources

Should focus on

predictive analytics, than

reactive, metrics

Account for Inventory &

capacity risks to achieve

resiliency in supply chain

Plan for both in-crisis and

post-crisis situations

during disruptions

Focus on Engaging &

embracing existing

systems versus replacing


Tenets of Supply Chain Control Tower

Embrace and Engage existing ERP/SCM systems

instead of ripping and replacing them.

Bring data to actionable insights, realizing the true value

out of investments customer made in securing the data.

Provide predictive analytics, allowing supply chains to

be proactive than being reactive.

Provide prescriptive recommendations, as a decision

support platform, with what-if capabilities

Enable bite-size solutions, with immediate outcomes,

and provide a platform to innovate at rapid cycles.


RELENTLESS

I N N O V A T I O NUNPRECEDENTED

S C A L EHYPER

S P E E DCUSTOMER

O B S E S S I O N

What you probably already know about Amazon

7 © 2020, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential

45M+

requests per

second

100M+

Orders per hour

Billions

Orders delivered

per year

100K+

Vendors

100M+

Automated

ordering plans

148B+

Transactions

processed

20K+

Transportation

trailers

300K+

Transportation

sites

185+

Fulfilment

centers

143M+

Sq. Ft of

storage space

100M+

Prime

customers

Automated

ForecastingLong-range (multi-year)

and short-range (weekly)

for 100M+ products

Capacity

OptimizationRegional and local

demand distributions by

segment

Automated

BuyingDeep system integration

allows for 99% inventory

purchasing automation

Automated

PlacementPrediction and routing of

inventory between

fulfillment centers

Automated

FulfillmentReal-time optimization

among hundreds of

shipping options

Recap: Global Business Today


Highest operational reliabilityAWS has lowest downtime

Normalized sum of downtime hours (Jan 2018- Nov 2019) as published. Sources: AWS, MSFT Azure, and GCP

AWS had 1/30th the

downtime of 2nd

largest Cloud vendor

for 2018

https://status.aws.amazon.com/

https://azure.microsoft.com/en-us/status/

https://status.cloud.google.com/


Innovation at Amazon & AWS in a nutshell

Principles Technology

Architecture – Create a structure that

supports rapid growth and change

Organization – Let small and empowered

teams own what they create

Mechanisms – Encode behaviors into our DNA

that facilitate innovative thinking

Culture – Hire builders, let them build,

support them with a belief system

Culture

rapidly move from ideas to innovation

1

2

3

4

Customer obsession

rather than competitor

focus

Builders and pioneers

with willingness to fail

Focus on the long-term

rather than the short term


Demonstration time – what could go wrong!


Data Driven - Everything

Amazon uses:

Disruptive technology & science spearheading

innovation throughout the operation

Deeply integrated supply chain linking tireless

customer obsession, operational excellence, and

sustainability

Design, technology and science are foundational

inputs, not bolted on later. Building products that team

members, drivers, and operators love!

Tool to enable End-to-end data and increase visibility

and control


Helping customers to innovate – Frustration Free Packaging

Eco-Box package containing :

Ultra concentrated formula

Shipping-safe cardboard box

Non-drip twist tap

Legs for flat surfaces

Internal ramp for gravity feed

60% less plastic

30% less water

34% lower shipping weight

Last mile ready

“The Tide Eco-Box has been designed to reduce the

environmental impact of shipping laundry

detergent in e-commerce, which is a rapidly

growing part of our business.”

Elizabeth Kinney, North America Fabric Care

sustainability, P&G,

© 2020, Amazon Web Services, Inc. or its Affiliates. All rights reserved.supply chain

Iterative approach – Developing a Data Driven Supply Chain

Supplier

ERP

Systems

Customer

ERP

Systems

Transporters

ERP

Systems

My ERP Systems

Material

Planning

Capacity

Planning

Production

Planning

Inventory

Management

Transport

Management

Customer

Service

Demand

Planning

Order

Management

Form Data Lake & Data Backbone

1. What data sources I can ingest?

2. Why are my inventory turns are low?Draw Supply Chain Insights

AI/ML Optimization3. How can I improve my forecast accuracy

Orchestrate Automation4. How can I automate inventory adjustments based on forecast


Proactive issue resolution: Digitized Supply Chain

INSITE Data LakeStorage | Archival Storage | Data Model

AMAZON

KINESIS

Data Ingestion &

Transformation

Other

Systems

AMAZON LOGISTICS

AMAZON

TRANSPORTATION

SERVICES

CORE

TRANSPORTATION

TECH

SUPPLY CHAIN

SYSTEMS

MODELLING AND

OPTIMISATION

EXTERNAL

Capability Plugins

EXECUTORDESIGNER PLANNER

SOURCE OF

TRUTH

DEPLOY

NETWORK DESIGN MODELS

NETWORK IMPACT ANALYSIS

NETWORK CONTROLS

NETOWRK ALERTS

NETWORK CHANGE RECOMMENDATIONS

AMAZON

RELATIONAL

DB

AMAZON

REDSHIFTAMAZON API

GATEWAY

AMAZON

CORPORATE

DATA LAKE

AMAZON

SPARK EMR

AMAZON S3

FORECAST

PLANSNETWORK BUILDER

TOOLS

SYSTEM

DEPLOYMENT

MONITORING AND

VISUALIZATION

ANALYSIS

TOOLS




AMAZON

KINESIS

Data Ingestion &

Transformation

Other

Systems

AMAZON LOGISTICS

AMAZON

TRANSPORTATION

SERVICES

CORE

TRANSPORTATION

TECH

SUPPLY CHAIN

SYSTEMS

MODELLING AND

OPTIMISATION

EXTERNAL

Capability Plugins


SOURCE OF

TRUTH

DEPLOY



NETWORK CONTROLS

NETOWRK ALERTS


AMAZON

RELATIONAL

DB

AMAZON

REDSHIFTAMAZON API

GATEWAY

AMAZON

CORPORATE

DATA LAKE

AMAZON

SPARK EMR

AMAZON S3

FORECAST


TOOLS

SYSTEM

DEPLOYMENT

MONITORING AND

VISUALIZATION

ANALYSIS

TOOLS

Italy to Austria – the week before lockdown

Network design – pandemic impact




AMAZON

KINESIS

Data Ingestion &

Transformation

Other

Systems

AMAZON LOGISTICS

AMAZON

TRANSPORTATION

SERVICES

CORE

TRANSPORTATION

TECH

SUPPLY CHAIN

SYSTEMS

MODELLING AND

OPTIMISATION

EXTERNAL

Capability Plugins


SOURCE OF

TRUTH

DEPLOY



NETWORK CONTROLS

NETOWRK ALERTS


AMAZON

RELATIONAL

DB

AMAZON

REDSHIFTAMAZON API

GATEWAY

AMAZON

CORPORATE

DATA LAKE

AMAZON

SPARK EMR

AMAZON S3

FORECAST


TOOLS

SYSTEM

DEPLOYMENT

MONITORING AND

VISUALIZATION

ANALYSIS

TOOLS

Italy to Austria – the week after lockdown

Network design – pandemic impact


Working backward from Business Outcomes

Monitor

Resiliency

Index

Reduce

Inventory

Stock Outs

Reduce

Inventory

Excess

Rationalize

Item

Catalog

Reduce

Freight

Expedites

Reduce

Supplier

Charge Backs

Improve

Forecast

Accuracy

APIs

RDSMySQL, PostgreSQL,

MariaDB, Oracle,

SQL Server,

DynamoDBKey value, Document

NeptuneGraph

TimestreamTime Series

QLDBLedger Database

RedshiftData warehousing

EMRHadoop + Spark

Kinesis Data Analytics Real time Analytics

Elasticsearch ServiceOperational Analytics

AthenaInteractive analytics

S3Object storage

AI & ML

Analytics

API GatewayRest & HTTP APIs

AppSyncGraph QL

SageMakerMachine Learning Toolbox

ForecastDemand Forecasting

Ingest

IoT CoreIoT Message Broker

Transfer for SFTPSecure data access

Data Platform

GlueETL & Data Catalog

Data SyncAuto data sync

EventBridgeEvent bus service

Visualization

QuickSightBI Dashboards

AmplifyWeb application framework

Supply Chain Framework

Weather Social Macro

External Data

SAP JDA Infor

My ERP & IT Systems

…

Partner Eco System

Transporters, 3PLs,

Suppliers, Customers

Business

Use Cases

Supply Chain

Control Tower

Data Sources

....


© 2020, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential24

Common Scheduling Challenges

1. Scheduling driven by manual subset of constraints from tribal knowledge (shared equipment,

similar run times, labor, testing time, sequencing, container, ingredient inventory levels)

2. Constraint rules simplified & applied universally (X concurrent lines @ any time)

3. Inability to simultaneously consider demand constraints, network constraints, SKU constraints and

capacity constraints

• Demand constraints: product segment, expedites, new products, pull forward, push back

• Network constraints: in-transit lead time; cycle time

• SKU constraints: ingredient availability, expiration dates, batch size, change-over, yield

• Capacity constraints: non-MFG capacity, sequencing, resource/skills

4. Scheduling in hourly buckets vs. lower level (erodes capacity)

5. Inability to dynamically respond to changes in demand & supply, and update plans

6. Inability to conduct what-if scenarios to optimize & tune plan (e.g. pull forward & push back

orders, batch size, sequencing, test times, key ingredient inventory, labor, promise dates)

© 2020, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential

Track & Trace,

Logistics Optimization

Automated

Fulfillment

Digital Twin

& Simulation

Automated

Replenishment

360o Situational

AwarenessAutonomous

Planning

PLAN BUY MAKE STORE DELIVER

Smart Supply Chain Platform

Next Gen Supply Chain: Autonomous

• Supplier prioritization

based on SKU specific

performance• Supplier B2B & predictive

ETAs

• Product engineering• IoT, robotics, computer

vision, automation• 3D printing

• Automated receiving• Random storage• Robotics, packaging • Dynamic product picking

• Logistics insourcing• Last mile deep learning• Drones

1. Real-time Inventory Control

2. End-to-End Visibility

3. Actionable Ecosystem

4. Autonomous & Optimized Micro

Supply Chain

Key Attributes:

• Forecast 480M ASINs,

10k post codes,

days/hours• ML Inventory planning

incorporate velocity of products

Amazon

Examples


Real Time Visibility

Inventory Tracking

Order Tracking

Real Time IoT Updates

Item Condition Monitoring

KPIs & Trends

Progressively increasing value with actionable insights

Predictive Analytics

Projected Stock Outs

Accurate ETA

Supply Disruptions

Root Cause Analytics

Machine Breakdowns

+ Prescriptive Guidance

What-If Simulations

Forecast Adjustments

Capacity Optimization

Last Minute Allocations

Freight Optimization

+ Autonomous

Automated Workflows

Incremental replanning

Partner Collaboration

Reduced Human Errors

Continuous Improvement

+

Working backward from Business OutcomesBringing data to actionable insights

© 2020, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Final thoughts!

• If you want to innovate you will fail

• If you want to innovate you will be misunderstood

• If you want to innovate you must build it in and not bolt it on


You don’t add innovation to an organization

You get out of its way!


supply chain

Digital Supply Chain

John McFallGlobal Specialty Practice – Supply Chain and Operational Excellence

Johnmcfall5

+44 7920 412275

[email protected]

mailto:[email protected]


Q&A


Q&A Panel

Henrik Vikberg

Industry Lead

Manufacturing

EMEA AWS

Please post your questions in the chat

John McFall

Global Advisor in

Supply Chain

AWS

Ramzi Ben Romdhane

Industry Lead

Manufacturing France

AWS

(Moderator)


Ready to get started?

Talk to your account manager about how AWS in Manufacturing can help

you innovate on behalf of your customers

Don’t have an account manager? Get in touch via Contact Us

AWS Industrial Software Competency Partners

Get started with AWS Free Tier

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Manufacturing Webinar Series

MON

Oct 19AWS in Manufacturing

TUE

Oct 20Reinventing Product Design with AWS

WED

Oct 21Smart Factory & AWS

THU

Oct 22Supply Chain Reinvention

FRI

Oct 23SAP in the Cloud for Manufacturers


Thank you!

Supply Chain Reinvention

Documents

Transcript of Supply Chain Reinvention