IBM Decision Optimization
Decision Optimization Enables Financial Institutions to Manage Risk, Innovate and Improve Operational Efficiency
aeortiz 2700024WMF Tags:  ibm finance business optimization solutions industry banking cplex mainframe analytics 3,450 Views
Though constrained by economic pressure and increasing security concerns, banks are leveraging IT investments to drive business growth. In industries characterized by heavy mainframe usage, such as banking and finance, it’s crucial to maintain customer data security, scalability and performance, and reduce hardware and software maintenance costs. Deploying optimization on the mainframe helps tackle these IT goals through simplified architecture that assists in automating and streamlining transactional decision making while lowering costs for both firms and customers. Learn more: ttp://www.ibmsystemsmag.com/mainframe/Business-Strategy/BI-and-Analytics/cplex_optimizer/
aeortiz 2700024WMF Tags:  analytics financial optimization management london optimisation ibm services banking ilog portfolio uki smarter_commerce finance asset 5,018 Views
Don't miss the IBM Optimisation Forum for Financial Services Sector at IBM South Bank, London, United Kingdom on 13th November, 2012
SCOPE AND FOCUS:
As banks and financial institutions start to emerge from a prolonged financial downturn, they face a host of challenges. Disruptive forces continue to ripple through the finance industry changing the market and impacting the businesses, such as:• New technologies
• New regulations
• New capital requirements
Optimisation technologies have become key tools in making important business decisions that increase competitive advantage. Optimisation, through the use of advanced mathematics and computer science techniques, is used to assist organisations with solving their complex business problems. The models which capture trade-off between optimum resource allocation and risk minimisation are gaining increasing importance in Banking, Portfolio Construction, Asset and Liability Management, Trade Settlement and Clearing and Cash Management. Recent developments and growing applications of quadratic optimisation, stochastic optimisation and robust optimisation in these domains and the role of modelling systems and solvers will be presented and discussed.
BENEFITS OF ATTENDING:Understand the role of optimisation in financial analytics and gain an understanding of the leading issues of financial analytics
Learn about the latest thinking and practices in the domain of Portfolio Optimisation and Asset and Liability Management
Learn how companies have been able to use optimisation technology to help determine how to most effectively allocate capital, balance business risks, uncover novel solutions for their customers and gain insights into their toughest challenges for maximum return with limited risk
WHO IS IT FOR?• Quantitative Analysts
• Credit Risk Analysts
• Financial Engineers
• Quantitative Developer
• Trade & Cash Solutions Managers/Analysts
• Corporate Treasurers
• Investment Managers/ Investment Strategists
• Financial Analysts
aeortiz 2700024WMF Tags:  smarter ibm business commerce ilog optimization analytics 4,459 Views
Customer expectations have grown for not only what they are buying and how they are buying it, but how it is fulfilled and when they will receive it. They want to buy online and pick up in the store, or have it shipped direct to their home or office -- and they don't want to wait.
This shift has supply chain professionals moving beyond transactional enterprise systems and operational rules of thumb to a more advanced value chain. The value chain takes advantage of all this new granular customer data to enable organizations to respond to demand variability at the point of consumption -- connecting the supply chain directly to customer demand, orchestrating seamlessly between trading partners and suppliers. This is an inherently multi-enterprise, cross-functional collaborative process that requires bringing together a vast amount of data from disparate sources to make the right strategic, tactical and operational choices.
In this webinar, we will discuss the strategic requirement to creating a successful value chain:
Adrienne Selko manages the editorial content of IndustryWeek's award-winning Web site. Before joining the staff in 2004, Selko was managing editor of corporate publications at a large regional financial institution. She was also an editor for the U.S. based publication of a medical manufacturing company. Prior to that she ran a public relations and marketing company that published a best-selling healthcare book. Selko received a bachelor's of business administration from the University of Michigan.
Richard Douglass is the Worldwide Industry Director, Manufacturing, Smarter Commerce within the software group of IBM, where he is responsible for industry marketing and key industry account support. He has over twenty-five years of experience in supply chain management consulting and solutions development in a variety of manufacturing sectors ranging from chemicals to high tech. Prior to joining, Douglass had similar responsibilities at Sterling Commerce and webMethods, integration and application software providers, and prior to that he was an associate partner at Accenture, a global consulting firm.
He received a bachelor's in computer science from Michigan State University and an MBA from the Kellogg Graduate School of Management at Northwestern University. He is certified as a Six Sigma Black Belt. He is a senior fellow at the University of Maryland.
The new "hours of service" rules were discussed In a recent Wall Street Journal article. The article mentioned that the hours a truck can drive in a day is proposed to be dropped from 11 to 10. The final decision is expected to be made in October.
This represents a potential 9% decrease in the number of miles that can be covered in a day by a truck. This obviously has a large impact for the supply chain. Some orders that could be met within a day will now be two days. You may have to shorten routes or change modes. And, this will drive up your transportation costs.
To mitigate the increase in transportation cost, you should re-evaluate the structure of your supply chain to make sure you have the right number and location of your warehouses, to make sure you are making products in the right locations, and to make sure your routes and modes are correct. By re-optimizing your supply chain, you may be able to offset much of the cost of the new rules.
Although the new rules are not yet in place, it is a good idea to get ahead of the situation so you are ready if they are enacted. Even if the rules are not enacted, the supply chain optimization scenario may yield other savings.
aeortiz 2700024WMF Tags:  products commerce ilog consumer scm inventory chain analytics supply business smarter optimization cp cpg stockouts ibm 4,262 Views
How Smarter Inventory Analytics Solve the "Out-of-Stock" Scenario for CPG Supply Chains
Date: Tuesday, May 17, 2011
Time: 11:30 ET, 10:30 CT, 9:30 MT and 8:30 PT
Place: Your PC
Fulfilling the Three A's: Adaptability, Agility and Alignment
In the recent years, we have seen a transformation in consumer behavior. The use of social media allows consumers to exchange thoughts; the migration from controlled media and monitored media. Easy information access combined with more educated consumers is making promotion planning more important. Finally, the chase for "value" is not only changing the timing of purchases but also location and brand. All these changes on the demand side are forcing consumer products companies to think about supply side in terms of: Demand Driven Supply Networks.
The supply chains are being transformed into complex supply networks with the introduction of co-packers, co-manufacturers and service providers. Commodity price increases and fluctuations are adding to volatility and margin pressures. Overall, changing consumer behavior, and increases in complexity, globalization and cost reduction pressures all force consumer products supply chains to fulfill the three A's: Adaptability, Agility and Alignment.
The crux of these strategies relies upon the application of Business Analytics to help close the gap between planning and execution. In this case, Closed-Loop Dynamic Inventory Optimization is leveraged to set appropriate inventory targets throughout the global supply chain and ensure that the right products are positioned in front of the right customers at the right time.
Closed-Loop Dynamic Inventory Optimization is a core process that regularly tunes policies across the supply chain to keep inventory closely aligned with changing conditions. But, the organizational value of such an approach goes beyond the more obvious metrics of improving service levels, order lead times, and inventory positioning. For example:
The application of Business Analytics on top of traditional supply chain planning and execution solutions gives CP Manufacturers the unprecedented ability to continuously improve operational efficiency, reduce costs, and enhance the customer experience.
Michael S. Watson, Ph.D., WW Optimization & Supply Chain Lead at IBM,
Remzi Ural, Global Supply Chain Management Solutions Lead, Consumer Products Industry at IBM
SCDigest Editor Dan Gilmore.
An important part of merger and acquisitions is the value created when the two supply chains come together. For example, MillerCoors reported on the progress toward their $750M savings goal on May 4, 2010:
"Supply chain integration continues to proceed on schedule. The brewery optimization project is nearing completion, as product moves are more than 90 percent complete."
Without a analytics modeling tool, like IBM's LogicNet Plus XE (click here for a video introduction), it can be difficult to properly merge the two supply chain. Each firm has unique products, unique manufacturing locations or vendors, unique warehouses, unique customers, and different business strategies. By modeling and optimizing the supply chain, you can evaluate the various trade-offs, understand where there is true overlap, and understand where separate supply chains are still needed. This modeling process allows you to accommodate the two businesses, deliver savings, and avoid creating a situation where the costs go up for both firms.
MarWrigley spoke at CSCMP about their modeling experience and noted the value in just getting a baseline model built. That is, as part of the merger process, there is value to seeing the combined supply chain in one place.
Whirlpool mentioned the importance of getting off to a fast start. Often a merger is known about long before the two firms can legally talk to each other. Therefore, it is important that you start as soon as it is legally possible. The investment community usually expects to see some quick savings.
In some firms, the supply chain modeling team is often an input to the acquisition process. Some firms model potential acquisition targets to approximate supply chain savings. And, this type of analysis can help determine if part of the business should be spun off.
aeortiz 2700024WMF Tags:  chain optimization ilog business scm ibm advanced supply analytics 3,507 Views
Date: Tuesday, March 29, 2011
Time: 11:30 EST, 10:30 CST, 9:30 MST, and 8:30 PST
Optimization in and of itself is nothing new but it is
often overlooked by Line of Business and Information Technology
professionals since many instances of it are embedded inside "classic
supply chain management applications". Optimization allows companies to
make sense of the massive amounts of data across the extended
enterprise. By applying this data in unique and innovative ways, firms
can optimize business outcomes by anticipating, controlling and adapting
to a dynamically changing and chaotic environment, using the insights
from visibility, analytics and trading partner collaboration to direct
and control operations more intelligently.
With the advent of "Optimization 3.0", firms now have the ability to layer or integrate key advanced analytics technology on top of existing supply chain planning and execution systems to support both long-term (strategic) and short-term (tactical) planning goals as well as detailed scheduling while continuously improving operational efficiency, reducing costs and ultimately enhancing the overall customer fulfillment experience. This new combination of State-of-the-Art advanced analytics and B2B integration gives businesses the unprecedented ability to quickly model and solve across the most complex systems and implement solutions in near real-time, creating truly adaptive supply chains.
aeortiz 2700024WMF Tags:  spss ibm optimization ilog cplex business chicago analytics advanced 4,377 Views
IBM Advanced Analytics Summit
Wednesday, April 13, 2011
9:00 a.m. - 5:15 p.m.
Chicago Marriott Downtown Magnificent Mile
Chicago, Illinois 60611
This live complimentary event will show you how IBM, through its ILOG® Optimization and SPSS portfolio and Business Analytics & Optimization service line, enables organizations to quickly and confidently answer fundamental business questions, from: Who will be our most profitable customers tomorrow? to What price will maximize profit from sales?
Learn and share best practices in implementing advanced analytics to your most critical business decisions.
Breakfast and lunch included.
If you are going to be at SCOPE East in Orlando in April (17-19), 3M and IBM will be doing a talk. And, the IBM supply chain group will have a booth at the event--- we will be under the Sterling booth.
Here is a description of the talk:
"Applying Supply Chain Analytics: Benefits of a Central Group"
This talk addresses the value firms can achieve by deploying advanced supply chain analytics and how a group should be structured. We will use case studies and recent events (like the run up in oil prices) to highlight the value from analytics such as network and inventory optimization. 3M will discuss how they are organized to deploy this capability.
Hu (Tiger) Liu, PhD, CSCP, Supply Chain Specialist for Manufacturing & Supply Chain Services, 3M and Michael Watson, PhD, ILOG Supply Chain Solutions Leader, IBM
In the recent letter from the chairman in IBM's 2010 Annual Report, Sam Palmisano discussed business analytics and optimization as a key part of IBM's future growth strategy:
IBM spotted this emerging need early, building the world’s leading analytics practice, with 7,800 expert consultants, the world’s premier nonacademic mathematics function, leading‑edge software and offerings integrated by industry.
As a reminder of a detailed explanation and definition of analytics from an IBM team, click here.
This blog has often commented on the price of oil. Oil prices have a big impact on the supply chain. As oil prices change, it impacts the cost of raw materials, productions, and transportation. The change in these costs impacts the trade-offs that a firm needs to make.
For example, as the increase in oil prices drives up transportation costs, it can change where product should be made, the mode of transportation used, and the inventory strategy.
Several years ago during the big run up in oil prices, we wrote an article for The Wall Street Journal that discussed how the supply chain strategies needed to adjust to the new prices. As oil prices fell, we wrote an reminder that it was still important to analyze the impact on the supply chain. In both cases, it is important to understand the trade-offs between transportation costs, sourcing decisions, and inventory and adjust the supply chain accordingly.
As oil hit $100 a barrel this week, it is worth recalling these lessons. More firms have invested in more flexible operations, but the basic lessons remain. It is important to adjust your supply chain to fit the realities of the market.
MichaelWatson 270002K5FS Tags:  analytics ilog inventory_and_product_flo... inventory_optimization invenory ipfa 3,561 Views
Smarter inventory analytics is about using your investment in inventory wisely. This means optimizing your inventory-- setting the right inventory levels for each SKU at each location, optimally positioning and buffering inventory in the supply chain, setting the correct service levels, and determining the correct flow paths.
With optimized inventory you can:
To reap the benefits of inventory optimization, it is not just about the optimization technology. You need to integrate into your ERP system for on-going updates and build the capability into your processes.
If you are interested in more details, contact us for a white paper on how to achieve better performance with your inventory.
Today's Wall Street Journal (WSJ) reported on IBM's big push into Analytics: "IBM Chief Executive Sam Palmisano is making a big bet on a field called business analytics, which involves using software to mine huge volumes of data to help executives make decisions."
For more information on what business anlaytics is, how it helps makes better decisions, and how our supply chain and optimization solutions fit in, click here.
Earlier, we recorded a session with SupplyChainDigest on strategic sourcing. This session covers how firms can better use their manufacturing network. For example, where should a product be made and at how many of the plants. These decisions can impact manufacturing costs, transportation costs, and the ability of your supply chain to meet its objectives.
This use of LogicNet Plus XE (LNP XE) is part of a larger trend. More firms are using LNP XE on an on-going basis to gain a competitive advantage in the market. This can range from strategic sourcing to budgeting to contingency planning. This is a way to leverage your supply chain data and bring advanced analytics to your supply chain.
Click on this link for a video on strategic sourcing. You will need to submit your email to register and you will be all set.
MichaelWatson 270002K5FS Tags:  ilog inventory inventory_optimization optimization analytics 4,505 Views
While doing some research for an upcoming white paper, I came across a nice article from Nov 2009 from Dan Gilmore at the SupplyChainDigest, "The Real Value of (Less) Inventory." A key line from the article is:
"...permanently reducing your level of inventories relative to sales and sales growth can have a dramatic impact on a company’s share price."
The article quotes research and cases to back up this claim. This certainly fits with what our customers are telling us-- they are seeing significant inventory savings through inventory optimization.
The word "permanent" is a great choice of words. Inventory optimization technology, by itself, will not lead to a permanent reduction. As we noted in an earlier post, we have developed an inventory planning playbook to help firms make the right inventory decisions with the right cadence and considering important strategic factors.