Latest developments in Risk Management Systems from CM 1.0 CM 2.0 - - PowerPoint PPT Presentation

End-to-End Commodity Management Platform

Latest developments in Risk Management Systems – from CM 1.0 CM 2.0

Next Generation CM - Driven by Analytics James Veale – MD Eka APAC

Volatility Expected to Remain High for 20 Years…

Demand for energy, food, metals, and water should rise inexorably:

• Three billion new middle-class

consumers expected

• Global car fleet expected to double

by 2030

• India calorie intake to rise 20% by

2030

• China per capita meat consumption

will increase 60% a year

Supply won’t keep pace:

• Long-term marginal rates increasing

for many resources as depletion rates accelerate

• Pressure from climatic impact of

carbon emissions associated with surging resource use

• Linkage among resources – e.g. effect
• f water shortfall; 70% of all water is

used by agriculture

Source: McKinsey Quarterly 2

“Our analysis suggests that commodity prices will remain high and volatile for at least the next 20 years”

3

Commodity Management is the Next Big Supply Chain Issue

• Historically, with commodity price relatively stable

since WWII (1970s oil embargo not systemic), focus

• n supply chain efficiency and cost reduction:

–

Lean manufacturing

–

Six Sigma quality programs

–

Supply chain optimization

–

Resulting in lower buffer inventory and complex supply chains

• System investment to support above focus through 

–

ERP, MRP, Purchasing Systems

• Commodity Management typically handled in

multi-tab, error prone spreadsheets With 40-60% of costs in raw materials, packaging and energy Systemic high commodity volatility Commodity Management is the Next Big Supply Chain Issue

BUT CM 1.0 Built on Dated Architecture/Code Base – Lacks Analytics

WEB & COMPONENT ARCHITECTURE END- TO-END CM FACT

• BASED

DECISION SUPPORT

4

F U N C T I O N F U N C T I O N V A L U E V A L U E Focus on Monitoring and Reporting Does a good job integrating the supply chain

Heavy footprint, expensive to deploy & upgrade, monolithic code base makes quality assurance very lengthy preventing innovation cycles

5

What’s missing? - Some leading research on Analytics

Research shows that greater use of analytics is supporting firms as they cope with the inexorable acceleration in the pace of change

— Accenture Survey

67% of companies report competitive advantage with use of analytics

– MIT Survey

If you expect to surpass competitors in the race to keep up with change in the marketplace, you want analytics on your side —Accenture Survey

68% of respondents rate senior management as committed to analytic/ fact-based decision making – Accenture Survey

The Answer  Eka CM 2.0 Solutions – Driven by Analytics

WEB & COMPONENT ARCHITECTURE END- TO-END CM FACT

• BASED

DECISION SUPPORT

DRIVEN BY ANAL YTICS EKA COMMODITY MANAGEMENT 2.0 EKA COMMODITY MANAGEMENT 2.0

6

F U N C T I O N F U N C T I O N V A L U E V A L U E

• Multi-commodity
• Upstream to

downstream  Single platform

• Cloud deployment
• Scalable SOA

 Waterfall development

• Optimization
• Visualization

 Simulation

• T

ransform large amounts of data into fact-based decisions

• Make risk-aware decisions
• Get faster and better answers

through data analytics

• Eliminate integration

points

• Eliminate delays and

data errors

• Have one version of the

truth

• Deliver less expensive

implementation/upgra des

• Provide faster

innovation cycles

• Have lowest TCO

7

T

• recap CM 1.0 Focused on Monitoring and

Reporting

Historical Predictive Monitor User Controlled Analysis Production Reports Sort & Filter Dashboards & Scorecards Slice & Dice Analysis Optimizatio n, Visualizatio n, Simulation

Decision Support Value Attainment Decision Support Value Attainment

EKA FACT-BASED DECISION SUPPORT EKA FACT-BASED DECISION SUPPORT

Procurement / T rading Risk Management Supply Chain

CM 1.0

8

CM 2.0  Deploy User Controlled, Predictive Analytics

Historical Predictive Monitor User Controlled Analysis Production Reports Sort & Filter Dashboards & Scorecards Slice & Dice Analysis Optimizatio n, Visualizatio n, Simulation

Decision Support Value Attainment Decision Support Value Attainment

EKA FACT-BASED DECISION SUPPORT EKA FACT-BASED DECISION SUPPORT

Procurement / T rading Risk Management Supply Chain

EKA ADVANTAGE

End-to-End Commodity Management Platform

Thank you