River Logic provides a business analytics platform, Enterprise Optimizer® (EO), on which a wide variety of business intelligence, performance management, and process improvement solutions have been built.
These solutions strengthen decision support at all levels of the enterprise. Below you can view examples of how some of our partners have employed Enterprise Optimizer® to build Solutions.
Revenue Management enables operations and commercial managers in a shipping line to optimize price and capacity in each route segment or across multiple segments based on existing and forecast bookings. The solution considers demand and prices by route, all routes, ship characteristics, lead times, empty container availability (by container type) in ports and en-route, transportation cost, port storage cost, loading/unloading costs and lead times to support daily planning multiple months into the future.
The system includes business friendly user interfaces, planning workflow, data management and reporting, all on a cloud environment. As it optimizes to maximum system-wide profitability, typical benefits from Revenue Management can reach up to 8% additional revenue yield and 10-20% decrease in empty container management cost.
IBP extends executive S&OP to integrate financials with demand and supply planning as an input, producing a base plan that is optimized to maximum profit without relying on heuristic approximations (such as entering unit cost). IBP helps users identify gaps and opportunities through unique Opportunity Value, profitability and bottleneck analyses. IBP then provides almost unlimited ability to evaluate scenarios, including the optimal demand to pursue, product mix, capacity planning and risk scenarios (e.g. input cost, currency, prices).
IBP supports the full planning cycle, including business friendly user interfaces, planning/data management workflows, reporting and scenario management. Impact from global profit optimizations typically ranges from 1-5% of revenue translated into additional profit or EBITDA.
Integrated Healthcare Planning enables hospital managers to simultaneously plan and optimize the case mix, allocation of resources (e.g. ORs, beds), capacity (e.g. clinic hours, staffing) and outreach programs to maximize attainment of enterprise performance objectives such as access to care, quality and cost or profit. The system supports evaluation of new programs (i.e. robotics, OR/bed turnover), physician line ups and negotiations with suppliers and payers. A direct output is the financial budget/forecast matching the hospital’s existing financial reporting structure.
Benefits found with the system include cost reduction, understanding of average and marginal cost/unit, mapping of the care/quality/cost efficient frontier and significantly higher financial forecast accuracy. An integrated delivery network was able to improve profitability by 5% of revenue and significantly improve physician retention and satisfaction.
Scheduling Policy Optimization allows managers of Inpatient Departments and OR corridors to maximize the performance of their existing staff and budgets. Based on existing or forecast demand, the system optimizes the allocation of blocks to ORs, start/finish times, shift lengths, staffing mix (typically nursing and anesthesia) while considering care, staff and surgeon availability constraints as well as all variable costs.
The solution supports optimization to minimum cost and maximum throughput, typically finding 15-35% improvement within existing business constraints. It can also support profit optimization when patient mix/pricing data are available.
IBP for Mining supports weekly and monthly planning from the mine to the customer. The solution integrates production forecasts, plant processing capacity and costs, transportation costs and constraints, inventory capacity and holding costs, blending at multiple points (e.g. rail stations, ports, plants), port capacity and costs and market prices associated with different blends to provide a globally optimized plan that maximizes plan profitability. The output includes a P&L forecast for each business unit, transfer price eliminations and a consolidated P&L for the division or enterprise.
The system supports business friendly user interfaces, planning and data management workflows, enterprise integration and reporting to support complex situations and extensive what-if analysis and scenario management. Expected benefits include profitability improvements equivalent to 2-5% of revenue, improvements in plan-to customer satisfaction, faster planning agility and higher forecast accuracy.
Unlike traditional Network Design applications, Network Strategy enables a Manufacturer to optimize the full network to maximize net present value of future cash flows or total profitability. The solution considers raw material availability and costs, manufacturing capacity and throughput by plant, line or machine center, inventory constraints, energy costs, labor costs / availability, transportation lead times and costs, differential tax rates and demand/price forecasts to seek a global optimum. Users evaluate multiple what-if and stochastic scenarios including supply chain disruptions, capital expense allocation options, new procurement or labor contracts, exchange rate fluctuations, new product introductions/product sunsets and potential changes in demand to find the optimal combination of performance and risk.
The system supports multiple financial reporting structures/financial transactions, transfer pricing, customs tax rates and minimum profit targets by business unit/location. It also considers debt gearing constraints and their impact on taxes. In addition to an optimal plan, the solution provides a detailed cost/unit and financial performance forecast for each business unit and the consolidated division/company.
The Water Management Optimisation Suite builds a model of the client’s business in its present state and by using different data sets, Executive teams can then test ‘future world’ scenarios (i.e. not simply taking past activity and projecting forward when the organisation can undergo radical changes into the future). These can accommodate the use of operational models (daily / weekly) to support issues such as sludge tinkering or scarce water allocation, tactical models (monthly / quarterly) to optimise water treatment, optimise energy usage or manage leakage or longer-term strategic scenario planning over a twenty-five year period or longer to optimally allocate capex or manage risk and sustainability.
Of critical importance is the capability to apply multiple objective functions to solve the above challenges from different perspectives. Unlike traditional technologies that may optimise on one criterion e.g. cost optimisation or profit optimisation, the solution suite enables users to optimise on almost any desired function. This could include carbon emissions minimisation or, in the regulated water environment, optimisation of Regulated Asset Value / Regulated Capital Value.
This solution aims to reduce the opportunity cost, increase availability and minimize transport cost for cash notes. It plans and optimizes note sorting, Central Bank Deposits, and Clearance Recommendations by denomination, and deposits and withdrawals from note handling facilities. Supports what-if analysis on resource levels, costs, and alternative demand scenarios. Provides financial statements of cash operations, forward visibility on KPIs, and actual vs. plan performance monitoring.
A current client was able to reduce total cash on hand by 33%, reduced on-going expenses by $6-8 million per year, increased service levels and improved their relationships with the federal market regulator.
TPO Planner improves the impact of trade promotion spend by optimizing budget allocation and trade calendars to different business objectives, including market share, revenues, and profit.
Source to Sea aims to optimize the balance of return to shareholders and operational/financial risk across a variety of possible scenarios. It answers critical questions including the long-term sustainability strategy and investment planning across assets, catchments, conservation and demand management initiatives. Furthermore, it enables users to optimize management of the surrounding environment (e.g. peat bogs, grass lands) and the activities to manage sustainability and carbon emissions.
A key output is the medium and long-term business plan, including the optimal balance across Capex and Opex. Additional outputs include the key risks (e.g. climate change, asset criticllity and failure analysis), their potential financial and operational impact on the business and the optimal prevention and response strategies.
The solution considers an integrated model of a Water Utility – including water abstraction, treatment, delivery, sewage, sludge processing, demand/rate projections, customer performance metrics, carbon emissions and the supporting chemicals/energy supply chains as well as land management activities and labor requirements. All costs and relevant constraints are modeled as well as financial reporting structures and constraints (e.g. debt gearing, regulated capital returns) to seek the optimal strategy that maximizes shareholder value, as well as the what-ifs to quantify and respond to potential risks.
Identify the optimal transition models to becoming an Accountable Care Organization (ACO) with full knowledge of the potential impact on the organization. Enabled by an integrated, end to end model of the business, evaluate alternative scenarios and support negotiations with Payers, physician groups and other providers. Determine the financial impact, risk exposure and financial requirements that will need to be managed for successful transition.
Minimize cost by optimizing the allocation of operating room (OR) time and staff to blocks and/or procedures. Based on process maps for each procedure, staffing requirements and policy constraints, determine the optimal allocation of blocks and procedures to ORs as well as recommended start times. Extend the analysis by considering impact on recovery and PACU utilization.
Improve hospital performance by optimizing the end-to-end impact of physician line ups, OR block allocations, case mix and resource levels. HEROadvisor™ considers all costs in the way they are incurred by the business, the key constraints (and their impact on costs) and patient mix to provide a unique understanding of current performance and opportunities on the margin. Users can run extensive what-if and optimization analyses as they seek to improve performance and/or react to changing market conditions.
HPO Provider Network Optimization enables Health Plans to make decisions on which providers to include in a given plan to deliver efficient care that meets quality standards while respecting adequacy constraints, while maximizing financial results and performance ratings. Furthermore, the solution provides visibility on the value of value to the plan of a given provider – considering other providers in/out of the plan – and provides detailed cost and financial expectations for the plan.
HPO Drug Formulary Optimization enables PBMs to determine which drugs should be included in a given plan to meet care and SLA requirements while achieving the lowest cost to the PBM. It considers the impact on patient complication rates and future drug needs, unfilled prescriptions, co-pay levels and the impact of inclusion on discounts and cost across plans. The solution also supports negotiation with suppliers and provides a total cost forecast for each plan.
Procurement Optimization enables procurement professionals to make the best decisions when negotiating with suppliers. Users can identify the optimal portfolio of products to purchase considering price/volume discounts across suppliers, products, locations and time periods. Critically, users can also consider the downstream impact on the business by properly evaluating delivery time periods, product quality and impact on overall revenue and cost.
Price Optimization enables pricing professionals and commercial managers to maximize the yield from pricing decisions within a given category. The solution considers not only the price elasticity of demand for each product or service, but also cross-elasticity from products that could be considered close substitutes. With the addition of cost of goods sold information, the solution can optimize not only revenue but also total profitability within the category.
CtS enables CPG manufacturers to model the extended manufacturer-retailer supply chain and identify the key drivers of inventory, revenue realization and cost to enable total margin optimization. Manufacturers evaluate the impact of retailer behaviors (e.g. stocking policy, order size, pallet mix) and their service commitments (e.g. frequency, lead times, incentive programs) to understand the net P&L and operational impact on their operations as well as each retailer. Manufacturers can proactively identify and propose win-win scenarios to their retailer partners.
The medical practice management rotation provides a strong foundation in the economics of medicine, finance, workflow, team building and practice optimization. (Associated with Mercer University School of Medicine, Georgia Health Sciences University’s Medical College of Georgia)
Track, monitor, and forecast the operational and financial impact of on-boarding and serving a customer, including order behavior, freight, warehousing, and cost of logistics. Support flowpath, frequency, pallet configuration and order behavior, and what-if optimization analyses to find win-win opportunities. Establish a communication mechanism between 3PL / 4PL and each customer by providing P&L, KPIs, and detailed cost analysis.
The solution makes carbon planning an integral part of the organisation’s daily decision making. The solution includes an accurate and holistic business model of the organisation which identifies all business functions that impact on the carbon footprint. All Capex investment projects and their associated carbon impact implications are built into the model as decision options. The optimisation capability of the technology can then be deployed to determine the optimal answer to key business decisions considering not only the trade-off between operation and financial objectives, but also taking into account carbon emissions as an objective function. Automated and user-friendly dashboards then empower employees throughout the organisation to see the impact of their decisions on the carbon footprint, thus institutionalising a carbon reduction culture
Water is used as an input in most mining processes and therefore, the availability of water affects a mine’s throughput. In addition, water transportation can be expensive especially for mines in desert or high-altitude locations. Mine water optimization allows mines to plan and optimize the use of water, taking into account not only the transportation and storage costs but also its impact on throughput and revenues to understand the best sources, stocking and consumption strategies.