IBM Supply Chain Insights with Watson Leverage to mitigate supply chain disruptions IBM Supply Chain Insights with Watson Leverage artificial intelligence to mitigate supply chain disruptions

Benefits Disruptions: Challenge, Costs and Risks - Augments supply chain professionals with IBM’s Supply chain leaders are tasked with continually ensuring Watson artificial intelligence the quality, delivery and availability of supply – while - Enables proactive disruption management through controlling costs. They must monitor and mitigate an smart alerts and real-time insights ever-increasing array of potential disruptions – including both common events, such as weather, delivery delays and - Redefines visibility with intelligent dashboards, KPIs quality defects, as well as major events such as political and end-to-end supply chain views unrest, natural disasters and the financial instability of - Offers an intelligent collaboration platform with Watson suppliers. They must also safeguard the brand, ensuring as an expert as advisor suppliers and product components live up to customers’ - Delivers value quickly through preconfigured expectations and values. Today’s expectations are that dashboards and digital playbooks inbound supply needs to be just as focused on customer - Provides open and extensible platform leveraging the experience, personalization and client delivery as the IBM ecosystem outbound side of the equation.

of CSCOs say it’s difficult to predict 87% and proactively manage disruptions.

Solution Brief Page 2 IBM Supply Chain Insights with Watson Supply Chains Must Evolve Artificial Intelligence: A New Era in Supply Chain Most supply chain organizations today are operating Supply chain organizations are also facing a significant with systems built for another era, where operating on inflection point in terms of disruptive technologies – from limited and static key performance indicators informed Cloud, analytics and the of Things (IoT), to by historical data was satisfactory. They struggle to blockchain and artificial intelligence (AI), also known as corral and make sense of an overwhelming amount of cognitive technologies. data scattered across different processes, sources and siloed systems. These technologies, particularly artificial intelligence, have the potential to transform the supply chain. Artificial Less than 10% of supply chain data is effectively used intelligence elevates existing systems and solutions – – and most companies are virtually blind to the 80% and effectively eliminates boundaries and limits across of data that is dark or unstructured. That’s data and organizational and technology silos. It drives significantly intelligence – everything from weather and political greater insights across the supply chain; enabling smart- reports to supplier news and financials – that can alerts and insights; improving forecasting and enabling significantly impact supply chain operations. With predictive capabilities. these limitations, it is difficult to optimize supply chain operations – and the business is exposed to By leveraging AI, supply chain organizations can both unnecessary disruptions, delays and risks, as well as effectively manage risks and deliver more value to the increased costs. business.

Less than 10% of supply chain data is effectively used – and most companies are virtually blind to the 80% of data that is dark or unstructured.

Solution Brief Page 3 IBM Supply Chain Insights with Watson Supply Chain Insights Resolution Rooms with Ask Watson Supply Chain Insights enables your organization to build a –– Recommends the right team members to help resolve more intelligent, demand-sensitive and customer-centric specific disruptions supply chain. Supply Chain Insights leverages AI, that –– Provides the relevant information, updates and insights learns and understands supply chain, to provide needed to mitigate disruptions monitoring, visibility and insights across your supply chain. –– Drives greater collaboration and augments a team’s With Supply Chain Insights, organizations can be knowledge, speeding the response to events proactively alerted to, assess and mitigate disruptions and risks – and optimize the supply chain to deliver greater Digital Playbooks business value –– Leverages Watson’s capability to develop a body Operations Center with Smart-Alerts of knowledge over time by learning about how specific issues were resolved in the past –– Proactively monitors and governs operations with speed and agility –– These learned best practices enable greater speed and accuracy in responding to future events –– Predicts disruptions and provides configurable, intuitive alerts cutting through data overload Rapid Integration –– Enables alerts to be configured around the indicators –– Correlates and harmonizes data across disparate silos, most important to the organization, and users can then systems and sources drill down to better understand the details and impact –– Leverages the power of AI to quickly collate, correlate of an event and analyze vast amounts of data at incredible scale and –– Leverage artificial intelligence to retrieve supplier speed data up to 90% faster. –– Allows for rapid integration of planning, sourcing, production, warehouse, transportation and other systems, as well as external services and sources of data. –– Empowers organizations to scale and manage disparate sources of data to keep data complexity in check.

Supply Chain Insights is a SaaS based AI platform available on the secure IBM Cloud

Slash time by 90% Watch disruption management time dwindle from days to minutes

Rapid Integration to achieve unprecedented visibility

– Standard data model – Source and format agnostic – Restful API’s – Integration as a Service – Pre-integrated applications

Rapid Integration Framework

Supply shipment Supply plan Purchase orders Work order Inventory Sales orders Sales shipment Etc.

IBM OnTrack

07/07/2015 - 07/13/2016 (Past week)

Number of documents processed Top customers by document count

300K 300K 400K 400K 100K PO POA SHIP INV PAY

239043 054890 295848 094532 894543 748549 234543 324321 543532 235423 Customers POs PO progress status Invoices Operational ? 400 total customers 30 3000 POs in progress 349 48 # of POs avg / per day # of issued invoices avg / per day # of documents 30 processed avg / per day new customers 400 for ths week new POs this week 123 42 K 123 231 30 active customers $ of POs avg / per day completed POs this week # of paid invoices avg / per day total volume avg / per day

Supply Chain Planning Sourcing Production Warehouse Sourcing Transport Business Network

Solution Brief Page 4 IBM Supply Chain Insights with Watson Use Case 1 Overview: A leading luxury vehicles manufacturer required route integrity. Employed smart alerts and playbooks improved critical parts management to enable professionals to take optimal action in Challenge: Unexpected delays with inbound deliveries responding to or preventing disruptions.

Solution: Leveraged AI and analytics to provide Why IBM? consolidated and clear view of critical parts supply data –– Artificial Intelligence: including supplier parts buffer, stock of critical components, –– Embeds cognitive capabilities and establishes finished goods buffer, supplier cycle time performance, comprehensive supply chain visibility replenishment lead time, manufacturing cycle time and supplier reliability. Further, employed dynamic monitoring –– Analyzes both structured and unstructured, of route integrity, expected lead times and order coverage. and at an enormous scale and speed, for deeper insights –– Expertise: Combines IBM technology leadership Use Case 2 with supply chain expertise Overview: An aerospace manufacturer requested insights –– Integrated: Extends visibility across the entire into external disruptions impacting their supply chain. value chain through an ecosystem of solutions Challenge: Lack of headlights on supply side disruptions impacts supply chain operations. For more information: To learn more about IBM Solution: Leveraged AI to dynamically monitor all aspects Sterling Supply Chain Solutions, please contact your of the supply base including to identify relevant news, IBM representative, IBM Business Partner, or visit events, and raw material shortages, as well as suppliers and www..com/supply-chain

Solution Brief Page 5 IBM Supply Chain Insights with Watson Copyright IBM Corporation 2019 | IBM Corporation, Route 100, Somers, NY 10589 | Produced in the United States of America | December 2019

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Solution Brief Page 6 IBM Supply Chain Insights with Watson