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Meeting Update Chris

What we did since SCI?

We have three arguments for the why-now:

  1. IoT sensors in Supply Chain are spreading: 6 billion today to 20 billion by 2020. Companies are now capturing real-time information about stock levels, sales, and production
  1. Transferring data to suppliers through portals has been a priority in the last ten years. In 2015, 88% were using or planning to implement tools of communication with suppliers. However, this data is still not used for the planning
  1. Supply Chain SaaS represents less than 30% of the total market but is rising 40% year over year

Consultancy trap: we started to build a common solution for 3 customers and we had 30 answers from experts to a survey that confirmed the feasibility of a standard solution

Standard inputs for replenshiment: Confirmed by JB experience, our customer and the survey.

Our product is:

Our SaaS platform provides real-time stock optimization and replenishment using machine learning and optimization.

3 differentiators:

*use suppliers data, whereas competition focuses on the demand. Using data from only one supplier is decreasing inventories by 30%

*machine learning for risk measurement of supply and demand, whereas competition uses static formulas

*scale and improve our solution by building a network architecture for easier data integration:suppliers/customers/external events

We start by selling this intelligent replenishment and stock optimization solution to OEM. We decided to start by OEM: they suffer from high stocks, always fire-fight and are open to innovation. To be followed by automotive, aerospace and all manufacturers.

Example: we have 3 pocs in OEM, and we talked with PSA that is willing to work with us if we have its supplier.

To succeed in building this product, we need two critical skills:

  1. Handling vast amount of data and scale machine learning models-and Karim has been doing just this at Criteo and Axa
  1. And we need deep supply chain planning knowledge to build and sell the solution. I have 7 years of experience on this topic

⇒ We rethought the supply chain formulas thanks to JB and included ML to better predict the risk of supply and deman

To build our solution, a team need to know the SC software landscape, SC theory, how to sell B2B solutions and big data techniques that scales. Mastering all gives our team a significant advantage in execution. In the last two months, starting from scratch, we have attracted 3 large customers.

Moreover, our solution is getting more powerful as more suppliers join: we have more data so we sense risks better. We are benefiting from a strong network effect which is a big barrier for any newcomers.

Comments:

Intro: ford model T and not ford T, and the model T was the begining of the era of the production plan. Big success cuz only one customization black model. Make the point that to achieve this he needed to invent the supply chain methodology. And the issue today is that the methodology is still used. Then u talk about the traction. Some refinement to make sure that the story is more compiling.

How many components? 600 components;

Why now: say the number of devices. Why is it better? Don't talk about IOT talk about NFC et RFID, that becomes cheap and help to better track + QR Code etc.. But that starts is 2009 why now ?

SO you need the supply chain management tools to be deployed? I'm still missing the third point of saas product why is it important.

Are u supply chain mangement solutions?

EDI has been around 20 years, NFC 10 years... Maybe your answer that ur industry is a slow moving industry. My answer will be: The space we are in is supply chain, and especially the are cpfr. What we are relying on in three technologies: 1- EDI : standard format

2- RFID, NFC: better data

3- connectiveness of all supplier. Everyone is connected to the internet: connectiveness

⇒ All this becomes CPFR

Consultancy trap: what about peugeot ? You should not excluding peugeot from this answer.

In order to validate, we went to several people including paint manufactures, paint manufacturer, glass and also to peugoet and I will come back cuz is very interesting.

We think we have a product that fits all of them, and for peugeot that (hears message vocal)

It can be interesting for others like Mercedes... Once you can get money from peugeot, peugeot will mandate all its suppliers.

Do you think psa will work with you with 3 suppliers?

Instead of saying 80k, we charge 3k/user/year and everyone is paying in the model automotive manufacturers, the tier 1, the tier 2 etc... Example tiere 2 will have 4 seats, tier 1 10 seats, and automotive 100 seats, ...Go look also numbers of tiers 1/tier 2... Say the same arguments applies that if u have one critical supplier is enough.

I'm not convinced that you are extracting the best value, the arguments would be psa is getting Double value and visibility through the chain. If you want all the visibility, you can make a case that you pay more depending on the value you have. Better to start with something high.

Important to say that you have worked for quitinq, anaplan. In three different size of supply chain areas, try to sell it a bit more.