Leveraging Big Data for Supply Chain Benchmarking JDA FocusConnect | November 5, 2013
Agenda Who is Chainalytics? Freight Market Intelligence Consortium Sales & Operations Variability Consortium Questions 2
Agenda Who is Chainalytics? Freight Market Intelligence Consortium Sales & Operations Variability Consortium Questions 3
Who is Chainalytics? HELSINKI STOCKHOLM MINNEAPOLIS MILAN ATLANTA BANGALORE MILESTONES ACCOLADES BY THE NUMBERS “ 2013 Cool Vendor in Supply Founded in 2001 135 FTEs Worldwide Chain Services” – Gartner Established Bangalore office in Serve 300+ Unique Clients “ Great Supply Chain Partner” for 2005 – 17 of Gartner’s Top 25 Supply 10 Years – SupplyChainBrain Acquired Chainnovations and Chains Adalis ’ Packaging Solutions 8 “Pros to Know” – Supply & – 80 Fortune 500 Companies Group in 2011 Demand Chain Executive Delivered 500+ Engagements One of “10 Coolest Supply Chain Strategic Investment by GEF Boutiques ” – ARC Advisory Acquired ROCE Partners in 2013 4
Value-Driven Supply Chain Decisions Supply Chain Design Years Packaging Optimization Quarters Transportation Logistics Operations Months Sales & Operations Service Weeks Planning Supply Chain Planning Horizon When should What is the How much and At what service Should our How should Can we reduce How well do How can we we buy or make best flowpath? where should level can we warehousing we transport our transport and our current increase product to make inventory be profitably satisfy and material product through logistics costs by operations visibility to the best use of positioned in the demand? operations be the supply improving cube mitigate repair stakeholders? our capacity? supply chain? insourced chain? utilization? and warranty or outsourced? costs? 5
Some of Our Clients RETAIL FOOD & BEVERAGE HOME/OFFICE NON-DURABLES HOME/OFFICE DURABLES HIGH TECH & TELECOM Packaging Healthcare Automotive & Industrial Chemical/Process LSP OTHER INDUSTRIES SERVED 6
Evolution of the “Big Data” Opportunity Content makes the realization of the full value of big data possible. Widespread Hardware Analytics converts Content enables implementation of commoditization big data into small fact-based enabled “big data” ERP and Supply data decision-making Chain Planning era Technology Chainalytics empowers fact- based decisions using… Powerful Technology : Advanced tools to assess impacts and predict Knowledge outcomes Specialized Knowledge : Superior intellectual capital to bridge the supply chain “expertise gap” Content Proprietary Content : Competitive differentiation 7
Agenda Who is Chainalytics? Freight Market Intelligence Consortium Sales & Operations Variability Consortium Questions 8
Model-Based Benchmarking Advantage Traditional Benchmarking Model-Based Benchmarking Shipper’s freight characteristics are unique Identify/quantify transportation cost drivers – Lack of “apples to apples” comparison – Origin, destination, distance, loading conditions, service requirements, regional – Need to have significant volumes represented imbalances… across many shippers for exact lane by lane Build econometric model for the market match Proprietary rates restrict direct sharing – Includes broad cross-section of shippers & locations – Inability to share rate information due to – Ensure it is robust and statistically valid contractual obligations – Develop an reliable estimators to predict the Informal “peer network” not a good basis cost per load for TL freight, given unique for comparison characteristics of the freight Only total cost is provided Generate results consistent with our – Inability to separate line haul and accessorial experience costs – Actual and observed results are related – Inability to determine implied cost of business – Test all policies and characteristics for practices that impact operation statistical strength – Amass significant amounts of information – Corridor volume 9
What is a “Freight Market Intelligence Consortium”? DATA MODELS REPORTS Freight Market BUSINESS MARKET INTELLIGENCE INTELLIGENCE Intelligence Internal Focus External Focus GUIDELINES Consortium No input data shared Membership remains confidential 10
FMIC Overview 2004 TODAY TL & IM Models: 108 Shippers ($18.2B) TL Model for LTL Model: 23 Shippers ($482MM) 6 Shippers Ocean: 16 Shippers ($290MM) Members Gain Access to… Performance Rate Freight Market Reports Estimators Intelligence (ALL MODES) (ALL MODES) (TL & LTL) What is my overall cost What are estimated In what direction will rates position to the market? costs for lanes in which I trend in the future (according to the views of am not operating today? In which lanes am I over the members)? Where are some market? What does my carrier opportunities to convert profile look like? from collect to prepaid freight? How do my policies and practices affect my rates? 11
Lane Specific Analysis Origin Origin Origin Origin Destination Dest Dest Dest Distance Annual Avg. Firm BU FMIC ID City State ZIP Country City State ZIP Country (miles) Volume Stopoffs DEMO WWD1 10417 Anytown Anystate 18953 HUN Anytown Anystate 08123 GER 2922 64 3 DEMO WWD2 11142 Anytown Anystate 50995 FRA Anytown Anystate 21999 GER 2414 134 0 DEMO WWD1 13682 Anytown Anystate 18394 GER Anytown Anystate 68960 POL 2771 157 0 DEMO WWD2 14131 Anytown Anystate 35199 POL Anytown Anystate 77899 HUN 546 352 1 DEMO WWD2 11452 Anytown Anystate 29979 HUN Anytown Anystate 27716 POR 2919 23 0 DEMO WWD1 13132 Anytown Anystate Estimated 13752 Estimated POL Estimated Anytown Anystate 58260 Difference Annual Cost GER Difference 2921 19 1 Status CPL CPM Annual Cost CPL Difference Percent DEMO WWD1 13467 Anytown Anystate 13149 FRA Anytown Anystate 64882 GER 2914 68 1 (Including Fuel (Including Fuel (Including Fuel (Including Fuel (Including Fuel (Including Fuel (Including Fuel DEMO WWD1 10702 Anytown Anystate 17090 ITA Anytown Anystate 13249 GER 2886 20 1 Surcharge) Surcharge) Surcharge) Surcharge) Surcharge) Surcharge) Surcharge) DEMO WWD3 10541 Anytown Anystate 73508 GER Anytown Anystate 10568 POL 2440 99 0 DEMO WWD2 10041 Anytown Anystate 47489 HUN Anytown Anystate 00807 FRA 2791 70 0 EUR 4,276.43 EUR 1.46 EUR 273,691.39 (EUR 2,821) (EUR 180,513) -65.96% BELOW DEMO WWD2 14132 Anytown Anystate 52411 ITA Anytown Anystate 77914 FRA 2738 69 2 EUR 4,308.32 EUR 1.78 EUR 577,314.61 (EUR 581) (EUR 77,873) -13.49% BELOW DEMO WWD3 14098 Anytown Anystate 60540 GER Anytown Anystate 77223 POR 2796 67 0 EUR 4,085.46 EUR 1.47 EUR 641,416.86 (EUR 495) (EUR 77,683) 2.19% AT DEMO WWD2 12340 Anytown Anystate 27880 ITA Anytown Anystate 43424 POR 2912 14 2 EUR 1,437.86 EUR 2.63 EUR 506,128.30 (EUR 199) (EUR 70,205) 2.22% AT DEMO WWD2 12503 Anytown Anystate 45769 ITA Anytown Anystate 46709 ITA 471 236 0 EUR 4,271.54 EUR 1.46 EUR 98,245.45 (EUR 2,835) (EUR 65,203) -66.37% BELOW EUR 4,274.80 EUR 1.46 EUR 81,221.18 (EUR 2,947) (EUR 56,001) 7.53% ABOVE EUR 4,505.28 EUR 1.55 EUR 306,359.18 (EUR 812) (EUR 55,193) 4.28% ABOVE EUR 4,219.29 EUR 1.46 EUR 84,385.81 (EUR 2,643) (EUR 52,863) 1.77% AT EUR 3,808.57 EUR 1.56 EUR 377,048.79 (EUR 529) (EUR 52,393) 7.47% ABOVE EUR 5,274.95 EUR 1.89 EUR 369,246.79 (EUR 684) (EUR 47,885) -12.97% BELOW EUR 4,481.19 EUR 1.64 EUR 309,202.12 (EUR 684) (EUR 47,180) -15.26% BELOW EUR 4,978.87 EUR 1.78 EUR 333,584.07 (EUR 610) (EUR 40,871) -12.25% BELOW EUR 4,257.00 EUR 1.46 EUR 59,598.06 (EUR 2,858) (EUR 40,016) -2.87% AT EUR 963.32 EUR 2.05 EUR 227,343.77 (EUR 161) (EUR 37,894) -16.67% BELOW 12
Long Haul Dry Van Comparison to Industry 13
Carriers by Spend and Position to Market Each square represents a carrier in a shipper’s network Company A Size is relative to volume with that carrier Color and percentage represent the carrier’s relative cost to market across all lanes they service The FMIC allows shippers to Company B see how their carriers are performing across their total spend, which prompts such questions such as “Who should I grow with?” and “Who should I look to divest?” 14
Integrated Benchmark Rates JDA has partnered with Chainalytics to provide access to the largest transportation benchmarking database in North America directly within its TMS solution. Lane Information Freight Market Intelligence Consortium Industry Leading Industry TMS Solution Benchmark 15
Integrated Benchmark Rates Carrier or Load Comparison 16
Recommend
More recommend
