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Escalade Sports
TABLE OF CONTENTS
WHY IS A SUPPLY CHAIN DIGITAL TRANSFORMATION NEEEDED? 3
What is a Supply Chain Digital Transformation? 4
Supply Chain Digital Transformation at Escalade Sports 5
Setting Supply Chain Digital Transformation Goals 5
Building Business Case: Showing Need for Change 6
Building Business Case: Demonstrate ROI 6
Building Business Case: Success metrics 8
KEY SUPPLY CHAIN TRANSFORMATION PITFALLS TO AVOID 11
START YOUR SUPPLY CHAIN DIGITAL TRANSFORMATION WITH ARKIEVA 18
The changing business landscape makes Supply Chain Digital Transformation projects for
manufacturing businesses inevitable. It’s no longer a case of if a digital transformation is needed,
but rather, when it can be implemented.
Arkieva customers are leading digital transformation projects within their organizations using
Arkieva as the common integrated planning application that creates the cross-collaboration and
manual processes reduction needed to realize the benefits of a digital transformation.
Arkieva customer Escalade Sports is no exception. Escalade Sports recognized the need for this
transformation and is creating a continuous improvement process. How you define digital
transformation is dependent on your individual business scenario. For certain businesses, this
involves full automation of existing processes, while for others it requires a move from a more
manual-based or non-integrated process to a more integrated process.
The key to getting started today is to create a roadmap for future enhancements and then
continue building on improvements. In this practical guide for building a business case when
implementing a Supply Chain Digital Transformation process, Wilson explains some of the key
ingredients needed for success, pitfalls to avoid, and how to track and measure performance.
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A practical guide for building a business case for digital supply chain transformation
To further expand on this definition, a Supply Chain Digital Transformation is the process of
utilizing supply chain technologies to create a robust digital business model that enhances
existing supply chain processes. This leads to identification and reduction of waste, which reduces
costs while creating a better balance between demand and supply, as well as optimizing
production to increase on-time deliveries. The implementation process usually involves using
Supply Chain technology systems to create the digitalized version of real-world processes. This
transformation often results in an optimized process due to a reduction in manual
non-value-added human tasks to a more automated process, further enhancing productivity
across the entire planning team.
A Supply Chain Digital Transformation is the process of utilizing supply chain technologies
to create a robust digital business model that enhances existing supply chain processes.
Arkieva provides full-scale end-to-end Supply Chain Planning Solutions that are personalized to
meet your unique business process and supply chain optimization goals.
Escalade Sports consulted with the Arkieva team to implement the Arkieva S&OP Solution suite to
create a more digitized supply chain process. Escalade Sports Director of Supply Chain Eric Wilson
led the implementation process at Escalade Sports.
They end up focusing on the buzzwords and shiny new technologies or the multitude of things
that need fixed and fail to build a cohesive vision. They may layout a horde of projects as
individual pieces to implement, but do not have a value proposition that integrates all of them into
a supply chain strategy. They struggle to decide when and where to begin and how to translate the
vision into goals, goals into strategies and strategies into process changes and projects.
Before you start any transformation project it is important to understand the why, what, and how
and articulate a clear vision and path of the future state.
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A practical guide for building a business case for digital supply chain transformation
Three Steps for Developing a Supply Chain Digital Transformation Business Case
Three steps should be followed in developing the business case for your supply chain digital
transformation project:
1 Show Need for Change: Articulate a convincing need for change based on the
company’s current situation and market opportunities.
2 Demonstrate ROI: Quantify the expected benefits and highlight how to achieve one or
more corporate goals like growth or customer service levels and calculate the return on
investment (ROI).
3 Identify Success Metrics: Explain how to show progress and measure success, which
metrics will be improved to achieve the expected benefits, what will be the new
performance targets and deadlines, and who will accountable.
At Escalade Sports during the evaluation process the following was uncovered:
• The need for improve market response to accommodate changing e-commerce landscape
• Opportunities to reduce inventory levels while increasing customer service
• The need for proactive planning and execution to avoid chasing after and putting out fires
Due to this discovery, prior to the commencement of the Supply Chain Digital Transformation
with Arkieva, the following goals were established:
• To more efficiently manage demand and supply, the variability, and needs of the market
• Deliver step change improvements in Total Cost structure while improving customer service
• Create significant positive shift in planning, delivery, and ability to communicate status
• Implement best-in-class supply chain planning technology to support current and future processes
At Escalade Sports, here are some of the benefits that were identified:
• Ability to more efficiently manage demand and supply to the variability and needs of the market
• Deliver step change improvements in Total Cost structure while improving customer service
• Create significant positive shift in planning, delivery, and ability to communicate status
• Efficiencies/synergies from standardization & consistency
• Mitigate for future M&A
Cost and Complexity
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A practical guide for building a business case for digital supply chain transformation
Process Improvement
Always check if the changing work and process flow of the current supply chain as well as chang-
ing the way the rest of the organization may interact with them will lead to more efficiency and
agility.
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A practical guide for building a business case for digital supply chain transformation
Technology:
Implementation of an end to end supply chain planning solution to enable more efficient internal
planning and help provide timely and accurate visibility into risk and opportunities and
• Improve service levels on time and in full for “A” items to above 95%
• Increase revenues from prior missed opportunities due to stock out by 1%
• Improve inventory turns to over 4 and free up working capital of over 9%
• Decrease inventory obsolesce and liability cost 21%
• Decrease logistic expediting cost and penalties and fees 25%
• Audits: Leadership, Maturity Model
Supply Chain Digital transformation has the potential to be, for no better words, transformative;
when done right, a transformation can enable your business to reap significant, and
well-documented, benefits. On the other hand, Supply Chain Digital Transformation if executed
poorly cost companies millions, go on for years, fail to deliver expected or any benefits, and
ultimately end up costing some CEO and CIO their jobs.
Part of the reason is, transformation is more than technical. It’s also procedural and cultural. It can
change how thousands of employees do their jobs, make business decisions, and collaborate
across the company. It is not just a thing that you can buy and plug into the organization. It is
multi-faceted and diffuse, and it requires foundational investments in skills, projects,
infrastructure, and, often, in cleaning up current systems. It requires mixing people, machines, and
business processes, with all of the messiness that entails. It also requires continuous monitoring
and intervention, from the top, to ensure that both digital leaders and non-digital leaders are
making good decisions about their transformation efforts. Supply Chain digital transformation
can change everything.
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A practical guide for building a business case for digital supply chain transformation
CHANGE can be small and incremental, or it can be large and complex. But it is something that
needs to be constantly monitored and maintained.
A mountain of research today shows that improving forecast accuracy delivers a high ROI.
Improved forecast accuracy, when combined with software that translates the forecast into
meaningful actions, will decrease inventory and operating cost, increase service and sales,
improve cash flow and GMROI, and increase pre-tax profitability.
The forecasting error, no matter how small it is, has a significant effect on the bottom line. From
our experience, is that a 15% forecast accuracy improvement will deliver a 3% or higher pre-tax
improvement. In an Institute of Business Forecasting study of 15 US companies, found that even
one percentage point improvement in under-forecasting error gives a saving of as much as $1.52
million, and for the same amount of improvement in over-forecasting, $1.28 million for a $50
million company.
To help avoid this any transformation project needs to be explicitly linked and design to deliver to
the specific features of the business strategy. This could be a cost, cash, or service strategy with
strategic features focused on a specific area. A great example maybe a company that plans a
growth strategy by acquisition. For them it may be important to focus more on the cash piece of
the strategy with technology and processes that would be scalable across multiple different
business models and can be quickly implemented in an acquired business.
Understanding the new economic rules will move you ahead, but only so far. Transformation in
the ecosystem means that strategies developed solely in the context of a company’s industry are
likely to face more and more challenges. Traditional approaches such as plan source make deliver
in a single supply chain or only focusing on optimizing an outdated value chain will increasing fall
behind and not be transformational.
Multiple supply chains and agile digital platforms that allow multiple functions inside an
organization to move easily across industry and sector borders are destroying the traditional
model with its familiar lines of sight. The Amazon effect has impacted more than just the corner
brick and mortar store but impacts the way all supply chains plan. Take Grocery stores in the
United States, for example, now need to aim their strategies toward the moves of Amazon’s
platform, not just the chain down the street.
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A practical guide for building a business case for digital supply chain transformation
Supply chain Digital transformation is about sweeping change. It changes everything about how
products are designed, manufactured, sold, delivered, and serviced—and it forces the company
and CEO to rethink how companies execute, with new business processes, management practices,
and information systems, as well as everything about the nature of customer relationships.
Because of this these projects cannot be the flavor of the month and it is not just checking the
box saying we are doing a transformation project but need properly resourced, properly and
continually supported, and CEOs actively engaged.
The result is the project ends up starved for resources and competing against other new projects.
This can happen at the beginning of the project as well when companies are in the process of
implementing several incremental improvement projects like Six Sigma or Kaizen projects, it will
be a challenge to add a large transformation program to the mix targeting the same
departments. Companies that try to stuff too much into the organization will clog it causing
employees and managers’ capacity to execute to become a choke point. To avoid this Supply
Chain Digital Transformation, need to be properly resourced thorough the entire project duration
which includes dedicated executive and transformation team.
Having a structured and proven methodology to show the way in the change transformation
journey is a must. Any significant supply chain transformation program creates uncertainty and
people resistance. New leaders emerge, job descriptions are changed, new skills and capabilities
must be developed. Dealing with these change management issues on a reactive, case-by-case
basis puts timeline, morale, and results all at risk. A structured and formal plan for managing
change—beginning with the transformation team and then engaging key stakeholders and
leaders—should be developed early and executed effectively as changes move through the
organization. The plan should be comprehensive to cover planning, implementing, and sustaining
the transformation changes.
6. Don’t let your project die on the vine – maintain energy and involvement
Despite solid up-front planning and leveraging effective project management techniques, the
unexpected surely will occur. Maybe a key member of the project team will depart, or the
software developer will be unable to meet agreed-to specifications, or a new business need will
be identified late in the game. You can guarantee there will be at least a few surprises. As supply
chain transformation programs progress from defining strategy and setting targets to design and
implementation, they affect different organizational levels and stakeholders. Disengaged
stakeholders can really slow down progress and can be a reason by itself for transformation
failure. Supply chain stakeholders represent different functions and different roles (operators, SC
managers, planners, suppliers, customers, warehouse receivers, carriers, etc.) which add another
dimension to the challenge.
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A practical guide for building a business case for digital supply chain transformation
Building and then empowering an effective transformation team is very crucial to maintain
excitement and eventually embrace change. Stakeholders need to know why change is happening,
how their work will change, what is expected of them during and after the transformation
program, how they will be measured, and what benefits success will bring to them personally.
Transformation team leaders should be addressing all these questions explicitly and keep
stakeholders involved in the process and informed to maintain energy throughout the
organization. But ultimately, digital transformations require imbedded into the culture to succeed.
Not dependent on only a single leadership from the top or a seasoned employee with vast
amount of tribal knowledge and are doomed to fail if they don’t have it.
What is it going to cost? Getting this information up front may seem difficult to get from some
vendors, but this is because they have learned the lessons early that you may encounter. Selling
the return on investment (ROI) to executives can be difficult without the right information and
understanding of the benefits. Rushing into a deal may not provide you what you need that
reflects bad on the vendor or be more than what the vendor scoped out and cost you or them
money. Finally, a discussion rooted in what a budgeting, planning and forecasting solution can
deliver is apt to find a friendlier audience than a truncated, cost driven solution, no matter what
the price.
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A practical guide for building a business case for digital supply chain transformation
CREATE A SYNCHRONIZED
S&OP PROCESS WITH ARKIEVA.
$
Create a more agile Reduce logistics costs with Increase on-time Reduce inventory by
business that can quickly optimized production shipments by 20% 15%
respond to changes plans
DEMAND
OVERRIDES LOCATIONS SUPPLIERS CUSTOMERS
Request a Demo
ABOUT ARKIEVA
PLAN BETTER.
EXPERIENCE VALUE-DRIVEN PERSONALIZATION.
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A practical guide for building a business case for digital supply chain transformation
Who is Arkieva?
ARKIEVA IS MORE THAN A SUPPLY
CHAIN SOFTWARE TECHNOLOGY
COMPANY.
We are a team of dedicated data scientists,
software developers, and supply chain
optimization consultants with one simple goal
– to help manufacturers improve results
through better supply chain planning. To
achieve this goal, we create the link between
people, process, and technology by providing
easy-to-use, configurable, collaborative
planning solutions that encourage a more
synergized planning process. No matter
where you are in your improvement journey,
Arkieva provides the needed guidance to help
improve your supply chain process. Each
Arkieva implementation comes standard with
a process improvement roadmap and a
dedicated Supply Chain Practice Director to
provide guidance throughout your
continuous improvement journey.
Real-life implementation best practices by an Arkieva Customer.
“From an IT standpoint, the Arkieva software tool is easier to maintain and a lower
cost tool to support than what we had previously.” — Steve Vice, IT Manager INEOS
“[Arkieva is beneficial even for fresh product] if you have production variation and
some storage time. This is the next wave of supply chain management.” — Harold
Upton, VP, Strategic Business Processes, Sunsweet More Than a Supply Chain
Technology Company
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