RightChain | Supply Chains Solved
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RightChain ™ Supply Chains. Solved.
Supply Chain Optimization as a Service™ Powered by RightChain.ai HIGHER MARGINS | HIGHER RETURN ON INVESTED CAPITAL HIGHER SERVICE LEVELS | ENHANCED COMPETITIVENESS
Supply chain transformation and continuous optimization via cloud-based supply chain artificial intelligence, globally proven methodology, decades of successful implementation engagements, and elite professional services.
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Note from the CEO | Why RightChain™?
I am often asked why I founded the Supply Chain and Logistics programs at Georgia Tech, authored the Supply Chain Management Library with McGraw-Hill, and launched RightChain™. The reason is the same for all three - I observed from our interaction with supply chain executives, and from our research, that only a minority of supply chain initiatives, and supply chains themselves, were successful. I also noticed that if benefits were achieved during an initial project push, they were rarely sustained. As I researched deeper, the primary cause for the lack of success was and is the growing gap between supply chain complexity and supply chain capability . Supply chain complexity is proliferating, and supply chain capability is lagging behind. The greater the gap, the greater the excess supply chain costs, poorly utilized infrastructure, under performing inventory, habitual delays, frequent errors, high lost sales, and declining competitiveness. As our client and research work continued, we were eventually able to map and quantify the components of the complexity, and to develop a greatly enhanced supply chain capability model and arsenal of supply chain transformation and optimization enablers. 1. Lagging Supply Chain Execution Systems vs Supply Chain Artificial Intelligence in the Cloud . The marketplace for ERP-based and best-of-breed supply chain execution systems (SCES), including transportation management systems (TMS), warehouse management systems (WMS), and inventory management systems (IMS) – as well as for 3PLs and 4PLs - has grown significantly. However, the supply chains they operate have not improved accordingly. The capability and usability of the software and services is simply not keeping up with the complexity of modern-day supply chain scenarios. In contrast, RightChain™ has synthesized, codified, and integrated the world’s most powerful supply chain optimization algorithms, the world’s most successful supply chain methodology, and the world’s most extensive supply chain knowledgebase into a supply chain artificial intelligence platform - RightChain.ai. RightChain.ai is a software-as-a-service offering employed autonomously via API connectivity to existing ERP, SCP, TMS, and/or WMS and/or semi-autonomously via GUI interface and data uploads. 2. Disintegrated, Sub-Optimized Supply Chains vs Integrated, Self-Optimizing Supply Chains. Most supply chains are still disconnected from and misaligned with the businesses they serve. They are also dis-integrated and sub-optimized within themselves; with inventory, production, sourcing, transportation, and warehousing all beating to different drums. The cost of those disconnections, misalignments, and sub-optimizations is on the order of 1% to 4% of sales. RightChain.ai and its underlying RightChain™ Methodology co-optimize the supply chain’s contribution to enterprise financial, service, operational, and competitive performance; while also integrating the strategies and tactics in inventory, production, sourcing, transportation, and warehousing. 3. Out-Dated Supply Chain Education and Methodology vs Contemporary, Advanced Supply Chain Methodology and Education . The large majority of supply chain decision makers operate without guiding supply chain methodologies, and they have no formal education in supply chain management. Those that do, typically have outdated supply chain education. Most curriculums lack the understanding of supply chain’s elevated role in enterprise performance, new dynamics related to omni-channel operations, and complex analytics inherent to the interdependencies in modern supply chain management. In stark contrast, the RightChain™ Institute, and its RightChain™ Curriculum, have been continuously updated for more than 30 years; covering the latest advances in marketplace dynamics, analytics, financials, interdependencies; and taught by authentic supply chain thought leaders. RightChain’s unprecedented supply chain transformation and optimization program, combines breakthrough, CloudAI decision technology; successful, industry-proven methodology; and elite professional services to yield higher gross margins, increased return-on-invested-capital, and enhanced marketplace competitiveness. The supply chains at BP, Carrier, Caterpillar, Coca Cola, Colgate, Disney, General Mills, Home Depot, Honda, Kraft Heinz, P&G, Pratt & Whitney, among many others, have all taken advantage of our offering, and leverage that success as a part of their enterprise excellence and competitiveness. We would welcome an invitation to explore your supply chain transformation and continuous optimization opportunities. Thank you for considering our presentation.
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RightChain™ Introduction Supply Chain Complexity and Capability RightChain.ai
Contents CONTENTS
RightChain™ Institute RightChain™ Inventory RightChain™ Warehousing RightChain™ Transportation RightChain™ Use Cases
Supply Chain Optimization as a Service™ RightChain™ Heritage Blue Chip Implementations The RightChain™ Effect RightChain™ Value Proposition Industry Recognition for RightChain™
Contents RightChain™ Introduction
SUPPLY CHAIN OPTIMIZATION AS A SERVICE RightChain is a supply chain optimization as a service (SCOaaS) company, offering transformational and continuous optimization of inventory, production, sourcing, transportation, and warehousing via cloud-based, software as a service, artificial intelligence, and related professional services.
RightChain is a supply chain optimization as a service (SCOaaS) company, offering transformational and continuous optimization of inventory, transportation, warehousing, and supply chain planning software, artificial intelligence, and related professional services. $49 Billion inventory – optimized. $14 Billion transport tion spend – optimized. $46 Billion supply chain spend – optimized. 1,000+ DCs and 100 million square feet - ptimized.
RightChain™ Incorporated
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Supply Chain Optimization as a Service™ RightChain™ employs its 30-year proven methodology, elite SaaS decision technology, and unparalleled professional services to optimize supply chain design, planning and operations for inventory, warehousing, and transportation.
30+ Years of Successful RightChain™ Implementations Optimization
AI-Based Optimization Algorithms
API Connectivity to Major WMS/TMS/ERP Optimizations, Simulations Visualizations, and Predictions
Systems and Solutions for Inventory, Warehousing, Transportation, and Supply Chains
Lower Supply Chain Costs Less Supply Chain Inventory Higher Supply Chain Capital Utilization Improved Supply Chain Service
Cloud-AI SaaS Platform
Supply Chain Partnerships for Strategic, Tactical, and Operational Decision Making Award-Winning Business Recently Featured on PBS Information Matrix with Laurence Fishburne
Taught, Read, and Implemented in 8 Industries, 7 Languages, and 12 Countries
Masters and PhDs from Leading Universities with Elite Supply Chain Analytics Experience at Blue Chip Corporations
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RightChain™ Heritage RightChain’s heritage dates back to Dr. Frazelle’s founding of The Logistics Institute and Supply Chain Management Series at Georgia Tech in the early 1990s. The RightChain™ Methodology is authored in Dr. Frazelle’s and McGraw-Hill’s Supply Chain Management Library including Supply Chain Strategy , Inventory Strategy , and World Class Warehousing . (His new book, Supply Chain Artificial Intelligence is in progress.) RightChain continues to develop on parallel paths of client customer implementations and advanced supply chain research.
algorithms and metrics for supply chain optimization, Japan’s leadership role in logistics technology and processes Facilities Planning John Wiley
Launched joint supply chain education and consulting with TM Insight
Supply Chain Strategy McGraw-Hill Dr. Ed Frazelle helps establish The Logistics Institute Asia-Pacific at the National University of Singapore
Supply Chain Artificial Intelligence McGraw-Hill
Dr. Ed Frazelle Establishes The Logistics Institute at Georgia Tech
Supply Chain Research and Launched joint supply chain education and consulting with Mitsubishi Education Collaboration with Waseda University
Dr. Ed Frazelle’s Research Funded by the National Science Foundation to address
World Class Warehousing McGraw-Hill
Launched one of the world’s first remote supply chain optimization programs
World Class Warehousing McGraw-Hill Launched one of the world’s first integrated supply chain optimization and education platform
Inventory Strategy McGraw-Hill Launched joint supply chain education and consulting with GS1
Supply Chain Strategy McGraw-Hill Education Collaboration with Meiji University Supply Chain Research and
Launched one of the world’s first computer based logistics education programs
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Blue Chip Implementations RightChain™ serves blue chip client customers in several major industries including aerospace, automotive, consumer products, food and beverage, healthcare, heavy industry, high tech, logistics, and telecommunications.
High Technology and Healthcare
Transportation, Logistics, Wholesale Distribution
Fast Moving Consumer Goods
Retail, Apparel and E-Commerce
Aerospace, Automotive, and Heavy Industry
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RightChain™ Value Proposition RightChain simultaneously increases gross margin, return on invested capital, and marketplace competitiveness.
RightChain™ Inventory SKU Optimization, Forecast Optimization Lot Size Optimization, Leadtime Optimization Fill Rate and Turn Rate Optimization Deployment and Planning Optimization RightChain™ Transportation Lane and Flow Optimization, Network Optimization, Load and Mode Optimization, Shipping Optimization, Route Optimization, Fleet Optimization RightChain™ Warehousing Pallet Storage Optimization, Case Picking Optimization, Each Picking Optimization, Warehouse Layout & Move Optimization, Warehousing Staffing Optimization
Gross Margin
Return on Invested Capital
Competitiveness, Market Platform
Margin, Return on Invested Capital
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Opportunity Total Margin Increase
Low Med
High
1 point
2 points
3 points
Turns Increase Fill Rate Increase Forecast Accuracy Forecast Bias
9% increase 4% increase 2 points increase 14% decrease 4% decrease 12% increase 11% increase
17% increase 9% increase 5 points increase 22% decrease 7% decrease 19% increase 18% increase
32% increase 17% increase 8 points increase 34% decrease 11% decrease 38% increase 42% increase
The RightChain™ Effect Typical RightChain™ Benefits
Transport Cost per Lb-Mile Warehouse Productivity
Typical financial impact of 1% to 3% of sales.
Storage Density
Compiled from a database of RightChain implementations. Impacted costs include expenses and capital costs of freight, fleet, inventory carrying (safety stock inventory, lot size inventory, pipeline inventory, ramp inventory), lost sales, warehouse labor, and warehouse occupancy.
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INITIATIVE
METRIC
2021
2022
2023
2024
2025
NOTES
DC PRODUCTIVITY 1. RightChain™ Slotting 2. RightChain™ Picking 3. Small Parts Automation 4. Large Load Automation DC STORAGE DENSITY 1. RightChain™ Slotting 2. Small Parts Automation 3. Large Load Automation LOST SALES RECOVERY 1. AI-Based Forecasting 2. AI-Based Lot Sizing 3. Turn/Fill Optimization 4. Deployment Optimization INVENTORY CARRYING 1. AI-Based Forecasting 2. AI-Based Lot Sizing 3. Turn/Fill Optimization 4. Deployment Optimization
Annual Lines Shipped Productivity (lpmh) Annual Man Hours Hourly Wage ($/hr)
3,000,000
3,150,000
3,307,500
3,472,875
3,646,519
4
8
12
24
48
750,000
393,750
275,625
144,703
75,969 25.00
$ $
25.00
$ $ $
25.00
$ $ $
25.00
$ $ $
25.00
$ $ $
Assumes no wage inflaction
Annual Wages Annual Savings
18,750,000
9,843,750 8,906,250
6,890,625 2,953,125
3,617,578 3,273,047
1,899,229 1,718,350
$
16,850,771
Average $s On Hand Storage Density
$ $ $ $
1,500,000,000
1,500,000,000 $
1,500,000,000 $
1,500,000,000 $
1,500,000,000 $
1,500.00 1,000,000
2,000.00 750,000
2,500.00 600,000
3,000.00 500,000
3,500.00 428,571
Footprint (sf)
Unit Occupancy Cost ($/sf) Annual Occupancy Cost
15.00
$ $ $
15.00
$ $ $
15.00
$ $ $
15.00
$ $ $
15.00
Assumes no facility cost inflation
RightChain™ Warehousing RightChain™ Inventory RightChain™ Transporttaion RightChain™ Effect
15,000,000
11,250,000 3,750,000
9,000,000 2,250,000
7,500,000 1,500,000
6,428,571 1,071,429
Annual Savings
$
8,571,429
Annual Revenue
$9,000,000,000 $9,270,000,000 $9,548,100,000 $9,834,543,000 $10,129,579,290
Fill Rate Lost Sales
95.0%
95.5%
96.0%
96.5%
97.0% Typical RightChain™ results
$450,000,000 $417,150,000 $381,924,000 $344,209,005 $303,887,379
Lost Sales Recovery Gross Margin Recovery
$32,850,000 $14,782,500
$37,714,995 $40,321,626 $16,971,748 $18,144,732
$35,226,000 $15,851,700
$
65,750,680
Cost of Goods Turns at Cost
$1,500,000,000 $1,575,000,000 $1,653,750,000 $1,736,437,500 $1,823,259,375
3.00
3.90
3.30
3.60
4.20
Typical RightChain™ Results
On Hand Inventory Inventory Carrying Rate Inventory Carrying Cost
$500,000,000 $477,272,727 $459,375,000 $445,240,385 $434,109,375
0.35
0.26
0.32
0.29
0.23 Decreases with improved DC performance
$175,000,000 $152,727,273 $133,218,750 $115,762,500 $99,845,156
Annual Savings
$22,272,727
$19,508,523
$17,456,250 $15,917,344
$
75,154,844
DELIVERY PRODUCTIVITY 1. AI-based bay optimization
Annual Lines Shipped Productivity (lpmh) Annual Man Hours Hourly Wage ($/hr)
3,000,000
3,150,000
3,307,500
3,472,875
3,646,519
Assumes 5% volume growth
10
15
20
25
30
300,000
210,000
165,375
138,915
121,551
25.00
25.00
$ $ $
$ $
25.00
$ $ $
$ $ $
25.00
$ $ $
25.00
Assumes no wage inflation
Annual Wages Annual Savings
7,500,000
5,250,000 2,250,000
4,134,375 1,115,625
3,472,875 661,500
3,038,766 434,109
$
4,461,234
ROUTING EFFICIENCY 1. AI-based routing 2. Network optimization 3. Flow optimization
Pound Miles
5,000,000,000
4,500,000,000
3,500,000,000
3,000,000,000
3,000,000,000
Cost per Pound Mile Transportation Cost
$0.0100
$0.0090
$0.0080
$0.0070
$0.0060 Currently at unknown truck utilization
$
50,000,000
$ $
40,500,000 9,500,000
$ $
28,000,000 12,500,000
$ $
21,000,000 7,000,000
$ $
18,000,000 3,000,000
Annual Savings
$
32,000,000
RightChain™ Value Proposition
Warehouse Labor Savings Warehouse Occupancy Savings
$ $ $ $ $ $
8,906,250 3,750,000 14,782,500 22,272,727 2,250,000 9,500,000 61,461,477
$ $ $ $ $ $
2,953,125 2,250,000 15,851,700 19,508,523 1,115,625 12,500,000 54,178,973
$ $ $ $ $ $
3,273,047 1,500,000 16,971,748 17,456,250 661,500 7,000,000 46,862,545
$ $ $ $ $ $
1,718,350 1,071,429 18,144,732 15,917,344 434,109 3,000,000 40,285,963
$ $ $ $ $ $
16,850,771 8,571,429 65,750,680 75,154,844 4,461,234 32,000,000 202,788,958
RightChain™ Warehousing
Gross Margin Recovery
RightChain™ Inventory
Inventory Carrying Cost Savings
Delivery Productivity Routing Efficiency
RightChain™ Transportation
Supply Chain Savings Potential
$
$
$
$
$
The RightChain™ Effect
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Cumulative Savings
115,640,450 $
162,502,995 $
202,788,958 $
RightChain™ Value Proposition RightChain Optimization Systems are designed to increase gross margin and return on invested capital by simultaneously optimizing all aspects of supply chain strategy, tactics, and operations.
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Industry Accolades RightChain has been featured in various TV and print media as a leading, innovative, and feature-complete SCM solution provider.
TOP TEN BEST PLANTS | CARRIER CORPORATION “Industry Week”
TOP TEN GREAT SUPPLY CHAIN PARTNERS “Supply Chain Management Review”
TOP 20 SUPPLY CHAIN SOLUTION PROVIDERS “CIO Review Magazine”
TOP TEN SUPPLY CHAIN TECH COMPANY “Insights Success”
PBS PUBLIC TELEVISION FEATURE TECH STORY “Information Matrix hosted by Laurence Fishburne”
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Contents Supply Chain Complexity vs Capability
Supply Chain Complexity Conundrum RightChain™ Complexity Model RightChain™ Capability Mode
Supply Chain Complexity & Capability
Complexity
Complexity
Capability
Capability
Sink
Swim
Simplification
Capability
Capability
Complexity
Development
Complexity
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Contents Supply Chain Complexity and Physicality
Supply Chain Complexity and Supply Chain Costs
Supply Chain Costs 1.
Novice
Inventory Carrying Costs Lost Sales Costs Transportation Costs Warehousing Costs
2. 3. 4.
Basic Intermediate Advanced
Supply Chain Costs
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RightChain™ Complexity Diagnostic RightChain™ coined the term supply chain complexity gap. It is the difference between a supply chain’s complexity and its capability. The size of that gap is the single most and best telling indicator of a supply chain’s performance relative to its peers. Note that this company’s new business model is taking them to levels of operating complexity 2x its legacy operations.
Very High
Next Generation Supply Chain Complexity
5
5
5
4 4.43
High
4
4
4
4
Medium
3
2
Low
2
2
2
2
2
2
2.14
Conventional/Legacy Supply Chain Complexity
LEVELS OF COMPLEXITY
Very Low
Number of SKUs
Order UOM Mix
SKU Mix
Number of UOMs
No. of Delivery Windows
Delivery Window Constraints
Delivery Channels
SUMMARY COMPLEXITY
DIMENSIONS OF SUPPLY CHAIN COMPLEXITY
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RightChain™ Complexity Model
Activity Complexity Product Complexity Service
Physical Complexity Network Complexity Infrastructure
Administrative Complexity
Compliance Complexity Culture Complexity Fiscal Complexity
Complexity Transaction Complexity
Complexity Disruption Complexity
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RightChain™ Complexity Assessment
RightChain™ Complexity Assessment
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Contents RightChain™ Complexity Assessment Example
RightChain™ Capability Model
Organization
Analytics
Infrastructure
Data Measurement Simplification Optimization Simulation Planning
Education
Hardware
Culture
Software
Bandwidth
Providers
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RightChain™ Capability Assessment
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RightChain™ Capability Assessment
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Contents RightChain™ Capabilities Assessment Example
Supply Chain Transformation Requirements
PROLIFERATING SUPPLY CHAIN COMPLEXITIES Proliferating SKUs Hundreds to Thousands Expanded UOM Mix Pallets, Layers, Cases, & Eaches Expanded, Time Definite, Short Window Order Mix
ADVANCED SUPPLY CHAIN CAPABILITIES
COMMERCIAL STRATEGY
Advanced Supply Chain Analytics & Optimization Best of Breed Supply Chain Execution Systems Justifiable MHE Automation & DC Infrastructure Updated Supply Chain Operating Model Education in Advanced Supply Chain Strategy & Principles
Rapid Organic Growth Multi-Category Integration Omni-Channel Development Same Day Digital Delivery
Multi-purpose DCs
External Suppliers
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High Level SCL Capabilities Assessment The supply chain performers lags comparables, lacks capability to face on-coming complexities, and is under-developed to support growing activity and variety.
INTEGRATION
INTEGRATION S&OP is in place. E2E capability is envisioned. Vulnerable due to Panasonic acquisition of Blue Yonder. Common language needs. PROCESSES Current processes are well documented. New DCOM documented and should be enhanced with RCW. An entire Current optimization and analytical capability is below industry norms. Investment in SCAI is underway, and should be accelerated. METRICS Current metrics are consistent with industry norms. High level, and integrated supply chain metrics should be developed and integrated with financial KPIs. SCOM is recommended. OPTIMIZATION/AI
WMS
WMS Limited to no use of advanced WMS. Restricts access to best practices. May hinder service and discourage new Partners. MHE Limited use of automated MHE in the face of a compelling business case; especially in case picking and to provide foundational growth and on-board NF partners. PRODUCTIVITY Network productivity is 100 CPMH. Industry norms are 150 CPMH. Makes a very strong case for case pick automation & advanced WMS. STORAGE DENSITY Current network density is x pallets per square meter. Industry norms are y pallets per square meter. Lane depth optimization will increase density by 14% to 38%.
Methods
Automation
PROCESSES
MHE
OPTIMIZATION
PRODUCTIVITY
Analytics
Performance
METRICS
STORAGE DENSITY
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Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChai ™ Enablers RightChain™ offers three powerful enablers to lift supply chain capability and to support successful supply chain transformation and optimization. (1) Advanced optimization technology and analytics via RightChain.ai (2) Over 30 years of proven results in all major industries in all parts of the world (3) Elite education offerings via RightChain™ Institute
Advanced Optimization & Analytics
Elite Education Offerings
Globally Proven Methodology
RightChain.ai Overview RightChain.ai Functionality RightChain.ai Architecture RightChain.ai Components Supply Chain Optimization Systems vs SCMS RightChain™ APIs
Contents RightChai .ai
Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChai .ai RightChain.ai is a CloudAI platform hosting proprietary algorithms solving the most complex supply chain problems in inventory, production, sourcing, transportation, and warehousing. Access to the optimizations, analytics, and simulations is provided autonomously via API connections or semi-autonomously via data uploads through a GUI interface. RightChain.ai is offered via software-as-a-service, and operates on a fully scalable Google cloud platform, with servers located around the world.
RightChain.ai
IMS
Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Domains The RightChain.ai platform is home to three powerful and connected optimization suites. RightChain™ Inventory RightChain™ Transportation RightChain™ Warehousing
RightChain ™ Inventory
RightChain ™ Transportation
RightChain ™ Warehousing
TMS
WMS
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RightChain’s AI-Powered Supply Chain Optimization System Via GUI, autonomous functioning, and/or self-optimization, RightChain.ai optimizes existing supply chain execution systems, transactions, and decisions.
Raw data for rationalization, machine learning, optimization, and analytics.
Supply Chain Optimization System
Supply Chain Management System
Supply Chain Database
RightChain.ai
Inventory Optimization System Transportation Optimization System Warehouse Optimization System
Inventory Database Transportation Database Warehousing Database
Inventory Management System Transportation Management System Warehouse Management System
Completed, Executed Transactions
Optimized Plans, Policies, Rules, & Schedules
Artificial Intelligence Proprietary Algorithms Analytics & Visualizations Control Towers & Command Centers Optimizations & Simulations Insights & Knowledgebases
Execution Systems Transaction Management Operating Functionality Hourly Functionality
Database Management Database Security Data Storage Transaction Database Master Files
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Enterprise Supply Chain Optimization Platform
RightChain™ INVENTORY
RightChain™ TRANSPORTATION
RightChain™WAREHOUSING RightChain™ Pallets Pallet Pick & Slotting Optimization RightChain™ Cases Case Picking & Slotting Optimization RightChain™ Eaches Each Picking & Slotting Optimization
RightChain™ SKUs SKU Portfolio Optimization
RightChain™ Lanes Transport Lane Optimization
RightChain™ Lots Lot Size Optimization
RightChain™ Nodes Supply Chain Network Optimization RightChain™ Modes Transport Mode Optimization
AI-Based and Conventional Supply Chain Optimizations
RightChain™ Turns Turn and Fill Rate Optimization RightChain™ Deployment Inventory Deployment Optimization
RightChain™ Loads Load Plan Optimization
RightChain™ Slotting Slot Location Optimization
RightChain™ Sourcing Chain Sourcing Optimization
RightChain™ Fleets Fleet Size & Mix Optimization RightChain™ Docks Dock & Yard Optimization RightChain™ Insights for Transportation RightChain™ Transportation Forecasting RightChain™ Transportation Scoreboard RightChain™ School of Transportation & Logistics RightChain™ Transportation Knowledgebase
RightChain™ Layouts Warehouse Layout Optimization RightChain™ Staffing Warehouse Staffing Optimization RightChain™ Warehousing Insights RightChain™ Warehousing Forecasting RightChain™ Warehousing Scoreboard
RightChain™ IBP Supply Chain Planning Optimization
RightChain™ Insights for Inventory RightChain™ Inventory Forecasting RightChain™ Inventory Scoreboard
AI-Based and Conventional Analytics, Insights, and Learnings
RightChain™ School of Inventory & Supply Chain Management
RightChain™ School of Warehousing & Material Handling RightChain™ Warehousing Knowledgebase
RightChain™ Inventory Knowledgebase
RightChain™ Optimization Systems
RightChain™ Inventory Help
RightChain™ Transportation Help Functional Supply Chain Optimization Suite
RightChain™ Warehousing Help
Algorithms + GUI = App1 + … = Suite1 + …. = Platform
Functional Supply Chain Optimization Suite
Functional Supply Chain Optimization Suite
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RightChain.ai Platform and Applications
RightChain™ Transportation Inbound
RightChain™ Transportation Outbound
RightChain™ Sourcing
RightChain™ Manufacturing
RightChain™ Warehousing
RightChain™ Service
PLANNING HORIZON RightChain™ Intelligence
Long Range Planning Mid Range Planning Short Range Planning
RightChain™ Finance: Supply Chain Finance Optimization | RightChain™ IBP: Integrated Business Plan Optimization RightChain™ Service: Supply Chain Service Optimization | RightChain™ Sourcing: Supply Chain Sourcing Optimization RightChain™ Nodes: Supply Chain Network Optimization | RightChain™ Deployment: Deployment Optimization RightChain™ Fleets: Fleet Optimization | RightChain™ Metrics: Supply Chain Scoreboard
3+ Years
1-2 Years & Quarters Quarters & Months Months & Weeks
Infrastructure Planning
Capacity,
Resource &
RightChain™ Inventory
RightChain™ Transportation RCT Insights RCT Metrics RCT Forecasting
RightChain™ Warehousing RCW Insights RCW Metrics RCW Fcasting RC Pallets RC Cases RC Eaches RC Slotting RC Docks RC Layout RC Staffing
RightChain™ Transportation RCT Insights RCT Metrics RCT Fcasting RC Lanes RC Modes RC Loads RC Shipping
Tactical Planning
RightChain™ Inventory Insights RightChain™ Inventory Metrics RightChain™ SKUs RightChain™ Forecasting RightChain™ Lots RightChain™ Ramps RightChain™ Turns RightChain™ Deployment
RightChain™ Lanes RightChain™ Modes RightChain™ Loads RightChain™ Shipping RightChain™ Fleets RightChain™ Docks
Operational Planning
Weeks & Days
RightChain™ Forecasting
RC Stops RC Fleets
RightChain™ Insights | RightChain™ Metrics
Capacity, Resource & Infrastructure Optimization Deployment
Days & Hours Hours & Minutes
Execution Planning
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RightChain.ai Platform and Applications
RightChain™ Transportation Inbound
RightChain™ Transportation Outbound
RightChain™ Sourcing
RightChain™ Manufacturing
RightChain™ Warehousing
RightChain™ Service
PLANNING HORIZON RightChain™ Intelligence
Long Range Planning Mid Range Planning Short Range Planning
RightChain™ Finance: Supply Chain Finance Optimization | RightChain™ IBP: Integrated Business Plan Optimization RightChain™ Service: Supply Chain Service Optimization | RightChain™ Sourcing: Supply Chain Sourcing Optimization RightChain™ Nodes: Supply Chain Network Optimization | RightChain™ Deployment: Deployment Optimization RightChain™ Fleets: Fleet Optimization | RightChain™ Metrics: Supply Chain Scoreboard
3+ Years
1-2 Years & Quarters Quarters & Months Months & Weeks
Infrastructure Planning
Capacity,
Resource &
RightChain™ Inventory
RightChain™ Transportation RCT Insights RCT Metrics RCT Forecasting
RightChain™ Warehousing RCW Insights RCW Metrics RCW Fcasting RC Pallets RC Cases RC Eaches RC Slotting RC Docks RC Layout RC Staffing
RightChain™ Transportation RCT Insights RCT Metrics RCT Fcasting RC Lanes RC Modes RC Loads RC Shipping
Tactical Planning
RightChain™ Inventory Insights RightChain™ Inventory Metrics RightChain™ SKUs RightChain™ Forecasting RightChain™ Lots RightChain™ Ramps RightChain™ Turns RightChain™ Deployment
RightChain™ Lanes RightChain™ Modes RightChain™ Loads RightChain™ Shipping RightChain™ Fleets RightChain™ Docks
Operational Planning
Weeks & Days
RightChain™ Forecasting
RC Stops RC Fleets
RightChain™ Insights | RightChain™ Metrics
Capacity, Resource & Infrastructure Optimization Deployment
Days & Hours Hours & Minutes
Execution Planning
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RightChain.ai Platform and Applications
RightChain™ Transportation Inbound
RightChain™ Transportation Outbound
RightChain™ Intelligence
RightChain™ Sourcing
RightChain™ Manufacturing
RightChain™ Warehousing
RightChain™ Service
Planning Horizon
Long Range Planning Mid Range Planning Short Range Planning
RightChain™ Planning
3+ Years
1-2 Years & Quarters Quarters & Months Months & Weeks
Infrastructure Planning
Capacity,
Resource &
RightChain™ Inventory
RightChain™ Warehousing
RightChain™ Transportation
RightChain™ Transportation
Tactical Planning
Operational Planning
Weeks & Days
Days & Hours Hours & Minutes
Execution Planning Capacity, Resource & Infrastructure Optimization Deployment
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Contents RightChain™ Institute
RightChain™ Institute Adoption RightChain™ Institute Curriculum RightChain™ Institute Format RightChain™ Institute Materials
RightChain™ Institute Global Academic and Corporate Adoption
Contents In conjunction with McGraw-Hill, now in seven languages, RightChain™ literally wrote
Georgia Tech
Cornell
Northwestern
Penn State
the most widely read and adopted books on supply chain, inventory, and warehouse optimization. In addition, the RightChain™ Curriculum and RightChain™ Methodology have been adopted in major universities and corporations the world over.
University of The Pacific Lima PERU
Swinburne University Melbourne AUSTRALIA
National University of Singapore SINGAPORE
Meiji University
Tokyo JAPAN
RightChain™ Strategy Maximizing Financial & Service Performance with Supply Chain Strategy Maximizing Financial & Service Performance with Supply Chain Strategy Supply Chain Performance, Cost, & Value Measures World-Class Inventory Planning & Management Manufacturing & Procurement Logistics World-Class Transportation & Distribution
RightChain™ Inventory
RightChain™ Transportation RightChain™ Warehousing
Maximizing Financial & Service Performance with Inventory Strategy
World-Class Transporation & Distribution The Role of Transportation in Logistics & Business Transportation Management Fundamentals Transportation Activity Profiling & Data Mining Transportation Performance, Cost & Value Measures
World-Class Warehousing & Material Handling The Role of Warehousing in Logistics & Business Warehouse Activity Profiling & Data Mining Warehouse Performance, Cost & Value Measures
The Logistics of Inventory Management
Inventory Activity Profiling & Data Mining
Supply Chain Service Optimization Inventory Performance, Cost & Value Measures
Receiving & Putaway Optimization
SKU Valuation, Optimization & Portfolio Management
Supply Chain Network Optimization Pallet Storage & Picking Optimization
Forecast Optimization
Routing & Scheduling Optimization
Case Picking Optimization
Lot Size Optimization
Transportation Mode Optimization Broken Case Picking Optimization
World-Class Warehousing & Material Handling
Shipment Planning, Rating & Tracking Optimization
Order Picking Optimization
Fill Rate & Safety Stock Optimization
Packing, Unitizing & Shipping Optimization
Logistics Outsourcing
Fleet, Container & Yard Optimization
Supply Chain Information Systems
Carrier Management & Bid Optimization
Inventory Deployment Optimization
Warehouse Layout Optimization
3PL and Carrier Selection Transportation Management Systems
Supply Chain Organization Design & Development
Warehouse Management & Communication Systems
Inventory Planning Optimization
FUNDAMENTALS
BEST PRACTICES/OPTIMIZATION
METRICS & ANALYTICS
SYSTEMS & SUPPORT
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Supply Chain Professional Education
RightChain™ Incorporated
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On Demand Lectures and Materials
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Contents RightChain™ Transformations
RightChain™ Financial Analyses RightChain™ Implementation Plans RightChain™ Transformation Plans RightChain™ Transformation Approach RightChain™ Deliverables RightChain™ Professional Services
Supply Chain Financial Statement
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Supply Chain Financial Statement
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Value Chain Development Plan
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Example Supply Chain Transformation Plan
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Supply Chain Transformation
EMERGING COMMERCIAL STRATEGY
PROLIFERATING SUPPLY CHAIN COMPLEXITIES Proliferating SKUs Hundreds to Thousands Expanded UOM Mix Pallets, Layers, Cases, & Eaches Expanded, Time Definite, Short Window Order Mix
ADVANCED SUPPLY CHAIN CAPABILITIES
Advanced Supply Chain Analytics & Optimization Best of Breed Supply Chain Execution Systems Justifiable MHE Automation & DC Infrastructure Updated Supply Chain Operating Model Education in Advanced Supply Chain Strategy & Principles
Multi-category
Omni-channel
Multi-purpose DCs
Same Day Digital Delivery
External Suppliers
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RightChain’s artificial intelligence technology (RightChain.ai) and globally proven methodology will be employed as a platform to support ABC’s transformation to a world-class, multi-category, omni-channel supply chain. The rollout plan includes RightChain™ Warehousing, RightChain™ Inventory, and RightChain™ Transportation; including all rapid assessment, control tower, and continuous optimization capability. ANALYTICS and OPTIMIZATION (RightChain.ai). The plan leverages test BUs and geographies. EDUCATION and TRAINING (RightChain™ Institute). The plan educates and trains RightChain™ super users and adopters in RightChain™ supply chain principles and in the use of the RightChain.ai platform. SYSTEMIZATION and AUTOMATION. The plan develops the requirements, RFP, business case, solution, and the preferred supplier engagement and solution implementation plan for automated material handling and a supply chain execution system. Based on similar RightChain™ implementations, and ABC’s current supply chain logistics performance, the annual benefits of the RightChain™ partnership will include 10% to 30% increases in warehouse productivity, and 15% to 35% increases in storage density. The partnership will yield enhanced professional and systems capability in addressing the on-coming supply chain complexity and competitive headwinds; as well as significant CAPEX avoidance.
SUPPLY CHAIN TRANSFORMATION PARTNERSHIP Omni-Channel Operating Multi-Category Enabled Digitally Enabled Autonomously Self-Optimizing
CAPEX/OPEX Optimized World-Class Performing 2025 Capable
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RightChain™ Incorporated
RightChain™ Implementation Plan Access to and training on RightChain.ai begins immediately upon initiation. The first actionable insights are available within the first few weeks of launch. The first large-scale optimizations commence four to six weeks after launch. Benefits may begin accruing as soon as six to eight weeks after launch. The RightChain™ Institute runs throughout the first six months of implementation.
Phase I. Assessment
Phase II. Optimization
Phase III. Integration
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Conduct RightChain ™ Practices Assessment
RightChain ™ Inventory • SKU & Forecast Optimization • Lot Size & Leadtime Optimization • Turn & Fill Rate Optimization • Deployment & Planning Optimization
RightChain ™
Populate & Validate RightChain.ai Database
Connect
Inventory APIs to ERP/IMS
Populate & Execute RightChain ™ Insights Populate & Launch RightChain ™ Scoreboard Populate & Launch RightChain ™ Finance
RightChain ™ Transportation • Lane & Flow Optimization • Network & Node Optimization • Load & Mode Optimization • Shipment & Fleet Optimization
RightChain ™
Connect
Transportation APIs to TMS
RightChain ™ Warehousing • Pallet Storage Optimization • Case Picking Optimization • Each Picking Optimization • Layout Optimization • Staffing Optimization
RightChain ™
Update RightChain ™ Project Plan Update RightChain ™ Business Case
to WMS
Connect
Warehousing APIs
RCI Module 1
RCI Module 2
RCI Module 3
RCI Module 4
RCI Module 5
RCI Module 6
RightChain™ Institute | Supply Chain Principles and the RightChain.ai Platform
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RightChain.ai Installation
RightChain.ai Module Subscriptions
Optimization Designs (pilots)
Education & Training
Continuous Optimization
APIs
SCES
1.SCES/MHE
(1) Initial RCW database design and installation (2) User on-boarding and credentialling (3) RightChain™Warehousing Insights (4) RightChain™ Warehousing Practices Assessment (5) RightChain™Warehousing Scoreboard (1) Initial RCI database design and installation (2) User on-boarding and credentialling (3) RightChain™ Inventory Insights (4) RightChain™ Inventory Practices Assessment (5) RightChain™ Inventory Scoreboard (1) Initial RCT database design and installation (2) User on-boarding and credentialling (3) RightChain™ Transportation Insights (4) RightChain™ Transportation Practices Assessment (5) RightChain™ Transportation Scoreboard
Live and on-demand weekly principles and platform training in warehouse analytics, metrics, pallet storage and picking optimization, case and layer picking optimization, each picking optimization, and layout optimization. platform training in warehouse analytics, metrics, pallet storage and picking optimization, case and layer picking optimization, each picking optimization, and layout optimization. platform training in warehouse analytics, metrics, pallet storage and picking optimization, case and layer picking optimization, each picking optimization, and layout optimization. Live and on-demand weekly principles and Live and on-demand weekly principles and
1. RightChain™Warehousing Insights 2. RightChain™Warehousing Metrics 3. RightChain™Warehousing Practices 4. RightChain™ Pallets 5. RightChain™ Cases 6. RightChain™ Eaches 7. RightChain™ Layouts 8. RightChain™ Slotting 9. RightChain™ Staffing 10. RightChain™Warehousing Help 1. RightChain™ Inventory Insights 2. RightChain™ Inventory Metrics 3. RightChain™ Inventory Practices 4. RightChain™ SKUs 5. RightChain™ Forecasting
1. Warehouse Metrics 2. Pallet Storage Optimization
Continuous Warehouse Optimization Year 2+ access to RightChain™ Warehousing with professional services as needed Continuous Inventory Optimization Year 2+ access to RightChain™ Inventory with professional services as needed Continuous Transportation Optimization Year 2+ access to RightChain™ Transportation with professional services as needed
Requirements
2.SCES/MHE RFP 3.SCES/MHE 4.SCES/MHE Supplier/ Solution Evaluation 5.SCES/MHE Suppler/ Solution Selection 6.SCES/MHE Supplier/ Solution Negotiation Support 7.SCE/MHE Supplier/ Solution Contracting Support 8.SCES/MHE Project Plan Support 9.SCE/MHE
3. Pallet Picking Optimization 4. Layer Picking Optimization 5. Case Picking Optimizations 6. Each Picking Optimizations 7. Slotting Optimizations 8. Layout Optimizations 9. Staffing Optimizations
Business Case
API connections for
RightChain™Warehousing
RightChain™ Warehousing
1. Inventory Metrics 2. SKU Optimizations
3. Forecast Optimizations 4. Lot Size Optimizations 5. Turn Rate Optimizations 6. Fill Rate Optimizations 7. Deployment Optimizations 8. Planning Optimizations 1. Transportation Metrics 2. Lane/Flow Optimization 3. Network Optimization 4. Load Optimization 5. Mode Optimizations 6. Route Optimizations 7. Shipping Optimizations 8. Fleet Optimizations 9. Staffing Optimizations
6. RightChain™ Lots 7. RightChain™ Turns 8. RightChain™ Deployment 9. RightChain™ Planning 10. RightChain™ Inventory Help
API connections for
RightChain™ Inventory
RightChain™ Inventory
Deliverables
1. RightChain™ Transportation Insights 2. RightChain™ Transportation Metrics 3. RightChain™ Transportation Practices 4. RightChain™ Lanes 5. RightChain™ Nodes 6. RightChain™ Loads 7. RightChain™ Routes 8. RightChain™ Fleets 9. RightChain™ Shipping 10. RightChain™ Transportation Help
Configuration Support
API connections for
RightChain™ Transportation
RightChain™ Transportation
RightChain™ Incorporated
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Elite Professional Services The RightChain™ team is a family of global supply chain leaders, each experienced and credentialed with large scale supply chain transformation successes – financial, technological, and organizational – in major corporations around the world.
Mr. Mark Braddock is RightChain’s Chief Commercial Officer. He is formerly with SAP and is a computer scientist from Radford University.
Founder of The Logistics Institute at Georgia Tech, Dr. Ed Frazelle is one of the world’s foremost authorities on supply chain strategy, operations, and technology.
Dr. Travis Smith holds his PhD in aerospace engineering from Georgia Tech. His specialty is artificial intelligence design for supply chain systems.
Mr. Steve Erbe is formerly head of supply chain analytics for the Disney Corporation where he led the supply chain optimization for retail, food & beverage, and service.
An award-winning scientist, Dr. Andrew Frazelle holds his PhD in decision sciences from Duke University. His specialty is supply chain optimization algorithm design.
Professor Masaji Nakano leads RightChain Japan where he is one of the country’s leading authorities on supply chain and logistics systems and operations.
Dr. Marcus Walker is RightChain’s Director of Data Science. He is a PhD in bioengineering from Georgia Tech. His specialty is supply chain database design.
Mr. Steve Westphal is former CFO, CSCO, and CTO for Coca-Cola Consolidated where he led the successful transformation of Coke’s supply chain operations.
Professor Jim Roach is former head of Honda North America where he successfully led all sales, service, supply chain, and logistics operations.
Dr. Matt Anderson is former head of logistics efficiency and effectiveness for the United States Armed Forces.
RightChain™ Incorporated | Supply Chains. Solved.
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