Information Driven Value Chain Steve Gwizdala Value Chain Planning – Solutions Specialist.

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Information Driven Value Chain

Steve GwizdalaValue Chain Planning – Solutions Specialist

© 2009 Oracle Corporation – Proprietary and Confidential

What is Value Chain Planning?

Enterprise-wide Business Planning that links:

• Strategic and Tactical Decision Making

• Design/Development with the Supply Chain

• Financial Planning with Supply Chain Planning


Oracle Value Chain Planning SolutionComplete, best-in-class e-business planning process platform

Demand SignalManagement

DemandManagement

Collaboration andVendor Managed

Inventory

PlantScheduling and

Monitoring

OrderPromising

Service Parts

Planning

Trade PromotionManagement

Supply and DistributionPlanning

RiskManagement

Sales and OperationsPlanning

PerformanceManagement

• Single source of truth• Integrated with ERP • SOA enabled

4


Oracle Advanced Planning Solution

BUSINESS PLANNING & PROCESS MGMT• Business planning scenario mgmt & automation• Business planning analysis dashboards

OPERATIONAL EXCELLENCE• Integrated supply chain execution• 24x7 order promising• Supplier collaboration and VMI• Integrated multi-method

manufacturing execution• Manage internal and external repair

orders, new buy parts, and part redistribution transfers

• Plant level detailed scheduling

DISTRIBUTION AND SUPPLY PLANNING• Rebalance inventory position at lowest cost• Multi-facility constrained replenishment planning• Distribution planning

AFTER MARKET SERVICE PLANNING• Multi-echelon service supply chain• Simultaneous forecasting, replenishment, distrib.

SENSE AND SHAPE DEMAND• Improve forecast accuracy thru better statistics• Continuous consensus planning process• New product introductions

DEMAND SIGNAL MGMT• Enables Retailer and Mfg-er collab.• Demand and market intelligence

SALES AND OPERATIONS PLANNING• Balance demand, supply, budgets• Evaluate both strategic and tactical decisions

RISK MANAGEMENT• Design profitable supply chain• Mitigate risk for (un)planned events

ADVANCED PLANNING

(1) Requires Oracle Siebel AIA Connector for Consumer Goods

Enables best-in-class processes that solve key planning problems

PROMOTION MANAGEMENT• Run most profitable promotions• Promotion lift analysis• Execute promotions via Siebel(1)

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Oracle Advanced Planning Solution

BUSINESS PLANNING & PROCESS MGMT• Oracle Advanced Planning Command Center

OPERATIONAL EXCELLENCE• Oracle Global Order Promising• Oracle Collaborative Planning• Oracle Production Scheduling• Manufacturing Operations Center

DISTRIBUTION AND SUPPLY PLANNING• Oracle Advanced Supply Chain Planning

AFTER MARKET SERVICE PLANNING• Oracle Service Parts Planning

PROMOTION MANAGEMENT• Demantra Predictive Trade Planning• Demantra Trade Promotion Opt.• Demantra Deduction & Settlement ManagementSENSE AND SHAPE DEMAND

• Demantra Demand Management• Demantra Advanced Forecasting and Demand Modeling

DEMAND SIGNAL MGMT• Oracle Demand Signal Repository

SALES AND OPERATIONS PLANNING• Demantra Real-Time Sales & Operations Planning• Oracle Strategic Network Optimization

RISK MANAGEMENT• Oracle Strategic Network Opt.• Oracle Inventory Optimization

ADVANCED PLANNING

Enables best-in-class processes through best-in-class products


Oracle Strategic Network OptimizationConsider all costs and constraints that impact the decisions

Costs ($): Variable and Fixed

• Transportation (inbound, outbound)• Storage and inventory carrying costs• Fixed costs (startup, shutdown, operating)• Material supply• Manufacturing and labor• Price (for profit optimization)

Capacity Constraints (Hard and Soft)

• Supply constraints• Manufacturing constraints• Transportation constraints• Storage and inventory constraints• Target service levels• Dynamic safety stock

Answering the tough questions:• How do I manage my supply chain risk more effectively?• What impact do changing costs have on my inventory,

production and/or sourcing strategy?• Can I meet demand profitably? • Where should I hold how much inventory, when?• Should I close down a facility?• How could I react to a disruption in supply due to

unforeseen events? • What are my most profitable channels or products to

invest in?• What is the impact of mergers and acquisitions on my

supply network and capital asset budget?


Oracle Demantra Demand Management

• Sense demand real-time– Sense demand more frequently, closer to the point of consumption– Capture demand and forecast at more granular level (store, shelf,

attributes, product characteristics)– Achieve consensus demand number more quickly by involving all

constituents at the same time, including customers– Quickly identify and react to demand changes and exceptions

• Improve forecast accuracy– Leverage advanced statistics for more accurate demand number– Use any combination of quantitative or qualitative data to establish your

base line forecast– High precision statistical forecasting, no statistical background required –

Superior Bayesian-Markov forecast analytics– Forecast based on attributes and characteristics– Leverage Advanced Forecast Modeling for promotion lift decomposition

and causal analysis

• Shape demand for profitability– Plan new product introductions– Plan promotions and sales incentives– Identify cross selling opportunities

• Evolve to real-time S&OP– Profitably balance supply, demand, and budgets

Shipments

Marketing

forecast

Order

history

CHANNEL DATA

Customer

sales

CollaborationWorkbench

Demand Hub and Seeded Worksheets

Real-time demand sensing and collaborative consensus forecasting


• Supply Chain and Distribution Planning– Product family and item level planning

– Alternate components, resources, processes, suppliers, facilities, and ship methods

– End-item substitution

– Critical items and resources; aggregate resources

– Bills of distribution and transfer rules

– Redistribution (circular sourcing), load consolidation, allocation rules

– Include customer and supplier facilities

• Manufacturing Planning– Sequence dependent setups/changeovers– Simultaneous resources– Batch resources– Alternate resources– Minimum transfer quantities– Complex, network routings– By-products and co-products– Line rates and take times

Suppliers Transportation Manufacturing Transportation Transportation CustomersDistributors

Oracle Advanced Supply Chain PlanningHolistic Planning and Optimization providing one solutions for supply chain, distribution and manufacturing planning


• Increase global visibility and reduce supply shortages

– Multi-enterprise visibility– Monitor supplier performance

• Implement vendor managed and consigned

inventory– Provide value-add services as a competitive differentiator– Reduce inventory carrying costs through automation

• Reduce planning cycle time through multi-enterprise planning

– Collaborative supply planning

– Comprehensive waterfall analysis

• React quickly to supply chain exceptions– Seeded and user configurable exceptions– Fully integrated with Oracle E-Business Suite

Oracle Collaborative PlanningImprove global visibility and react quickly to changes through collaboration with trading partners


• Maximize throughput of bottleneck resources– Automatic detection of bottlenecks– Minimize setup with intelligent sequencing

• Improve shop floor performance– Minimize the effect of unplanned downtime

– Easy identification of issues– What-if rescheduling– Drag and drop

• Quickly determine the best schedule– Fast easy simulation– Scenario comparison and key performance indicators

• Implement quickly by leveraging out-of-the-box

integration

– Integrated manufacturing planning and scheduling– Fully integrated with Oracle E-Business Suite

Oracle Production SchedulingMaximize shop floor throughput and optimize resource utilization


• Increases flexibility and reduce costs by moving inventory away from the customer to the point of postponement

• Accounts for demand, supply, and lead-time variability when determining the point of postponement and inventory levels

• Synchronizes inventory levels and policies across the supply chain• Helps you move from a push model to a pull model• Increases visibility to supplier and contract manufacturer inventory

SuppliersContractManufacturers

FinalAssembly

Central Distribution Centers

Regional Distribution Centers Customers

Old way Push Inventory

New way Postpone Inventory

Oracle Inventory OptimizationRespond quickly to demand, supply, and lead time fluctuations

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Oracle Service Parts Planning

• Simultaneously forecast, replenish and redistribute your service parts across your service supply chain

• More accurately forecast your service parts– Demantra statistical forecasting engine inside for highest

accuracy– Account for intermittent, seasonal, and fast moving demand

patterns– Leverage composite forecasting (shipments, usages,

returns)– Use service failure rates

• Optimize the replenishment and redistribution of parts across the extended service network, integrated with Service Execution

• Integrate with other Advanced Planning products for additional business processes

– Manage spare parts at customer locations (via CP)– Manage service contract customer demand (via Dem DM)– Manage targeted service levels and budgets (via IO)– Produce parts in manufacturing facilities (via ASCP)

Manage both forward and reverse material flows


Oracle Advanced Planning Command Center

• Get the right answers• Self service, pre-built• Rich content and KPIs• Seamless integration

with planning apps

Business Insight for Supply Chain Executives

Pre-Built Dashboards and Reports

Scenario andActivity Management

Plans and Archived Plans

An

alyz

eP

lan

Orc

hes

trat

e

Analyze and compare scenarios and plans

Execute scenarios

Execute automated processes

Archive plans

Web Service enabled Planning Processes

Analytical Data

Forecasting Supply Planning

Planning Analytics for Supply Chain Decision Makers

Business scenario planning• Decide which scenarios

to plan• Compare baseline to

alternative scenarios• Assign scenarios to

planners for execution

Preconfigured Planning Processes

Planning process automation• Notify constituents of

assigned activities• Link processes for manual

or automated execution• Auto-archive plans


Oracle Manufacturing Operations Center

The Foundation for Continuous Improvement in Manufacturing Operations

Contextualize Plant Floor Data and

Synchronize with ERP

Contextualize Plant Floor Data and

Synchronize with ERP

Provide Real-Time Intelligence for

Plant Operations

Provide Real-Time Intelligence for

Plant Operations

Leverage Next Generation Manufacturing

Operations Architecture

Leverage Next Generation Manufacturing

Operations Architecture

• Consistent mfg information for all users

• Convert equipment data into useful business info

• Ensure rapid response to manufacturing issues

• Leverage existing plant IT infrastructure

• Enable gradual upgrade of plant systems

• Simplify IT support for your core mfg strategy

• Deliver performance metrics & trends by role

• Easily build dashboards to your unique needs

• Identify performance improvement opportunities


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• reduced ending level inventory from $200M to $50M, saving $8M annually by automating supply chain processes

• reduced monthly inventory levels for largest customer by over $1M per month and scenario analysis from days to 2 hours

• increased forecast accuracy from 50 to 85%, and reduced planning cycle time from 21 to 5 days

• improved on-time delivery to 98%

• improved inventory turns by 37%

• reduced order fill rate from 55% to 95%, increase inventory turns by 100%, reduced price protection claims by 40%

• reduced inventories by $350M, carriers from 200 to 12

• yielded a $12 million reduction in average inventory, improved forecast accuracy from 35% to 73%, improved fill rate from 80 to 93%

• reduced order cycle time by 30%, raw material inventory by 17%

• increased service level by 12% for same inventory investment

Sample customers achieving significant benefits


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Many customers across all industries

DiscreteManufacturing

ProcessManufacturing

Consumer Goods /

Distribution

High Tech


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Enables leading edge and transformational business processesOracle Value Chain Planning Solution

Predict market requirements and manage supply chain risk– Sense demand closer to the point of consumption with real-time visibility to demand events – Improve forecast accuracy through advanced analytics and improved consensus forecasting – Predict impact of risk to your network by simulating planned and unplanned supply chain events– Account for variability in your inventory positioning and postponement strategy

Shape demand for profitability– Drive demand via promotions planning– Manage new product introductions and marketing to shape demand and maximize revenue– Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process

Align operational plans with corporate goals– Plan your extended value chain with holistic supply and distribution planning– Synchronize plans and actions across the extended enterprise– Improve supply chain visibility and align trading partners via collaboration– Transform your service operations from cost to profit centers

MONITOR and MANAGE with Embedded Analytics

Questions

Information Driven Value Chain Steve Gwizdala Value Chain Planning – Solutions Specialist.

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