Oracle Supply Chain Presentation
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Transcript of Oracle Supply Chain Presentation
Integrated Fulfillment Management at
Mason Companies, Inc.
Ryan Plotz, Sr. Systems Analyst, Mason Companies, Inc.
Dan Raffesberger, Sr. Systems Analyst, Mason Companies, Inc.
Oracle Value Chain Summit 2015
Agenda
Company Background
Prior State
Project Team
Implementation
Challenges
Go-Live Success
Project Impact
Company Background
Founded in 1904 by August Mason from Germany and son Bert Mason
Family Owned Company located in Chippewa Falls, Wisconsin
1922 –Door to Door
1985 – Mail Order
1996 –Credit Offer
1999 – Multi-Channel
Company Background
Company Background
Company Background 17TH largest internet retailer in the US
Marketing Channels Catalog Mailings
Email Marketing
Websites
All 10 Catalog Sites
ShoeMall, Ebay ShoeMall, Amazon ShoeMall
Ebay Enabba
Logistics 3 warehouses
High number of PO receipts
High volume of returns
High picking/packing rates
About iNYXA • Chicago-based global Oracle integration Partner
& Software Developer, since 2008.• Focused exclusively on E-Business Suite –
Supply Chain & Manufacturing functions. • Several complex implementations, pre-built
solutions & bolt-on products for customers in Retail, Industrial Manufacturing, Hi-Tech, Healthcare.
• Cost competitive with Global Delivery Capability using Development Centers in India, and an experienced Onsite team.
Select Customers
Operational Consulting
Oracle Product Expertise
Custom Development Capabilities
Project Management &
Execution Excellence
Prior State Legacy system
Highly customized, built for Mason
Minimal support knowledge/user community
Obsolete technology stack
Mason is one of the largest users of this technology in the world
Challenges in integration with newer warehouse control systems
Licensing limitations
External financial system
Several different technologies used for supply chain components of business
Difficulty in expanding into future business opportunities
Drop-ship
Acquisitions
New/different product lines
Very efficient
Key warehousing component rates met or exceeded industry standards
However
EBS Project Team Inyxa Solution Architect
Inyxa functional/technical leads
Inyxa development team PL/SQL (5)
ADF (2)
Mason IT project manager
Mason lead analyst/architect (2)
Mason IT data migration/architect (2)
Legacy system IT analysts (2)
Mason subject matter experts (2)
Mason key business users (4)
Mason executive sponsors (1)
Implementation - Process
System Selection Process Well defined requirements
Extensive sales demonstrations
All tier 1 vendors evaluated
Phase 1: Implement Oracle Financials Summer 2013
Phase 2: Implement Inventory/Purchasing/WMS - integrated with PIM and legacy OMS Summer 2014
Phase 3: Stabilization Ongoing
Implementation - Approach Limit scope to required supply chain components for initial implementation
phase
Use vanilla EBS wherever possible
No core EBS customizations
Allow for more simplistic future upgrades/patching
Maintain legacy system efficiencies
Extensions built off of core EBS forms/functions/API’s
Keep all components on one technology stack
All front-end extensions would be built using one of the following technologies
EBS mobile apps
ADF
Unit test individual components prior to integrated testing events
Multiple integrated testing events
Several rounds of load testing
Including up to 50-60 people from all areas of the business
Challenges – Inventory
Many unique attributes for industry and vast product base
400+ attributes stored at 3 different hierarchical levels, with inheritance
Interface with our PIM to load all items and item data into EBS
~1 million unique items
Allow for frequent updating of existing items
Allow for frequent addition of new items
Inventory Approach – System Integrator’s perspective
• STIBO Product Data Management to Oracle EBS Integration– A single interface for Item Load / Org Assignments / Item
Category Load / Cost Overhead Load / Hierarchical Style SKU attributes.
– Architected to handle extremely large data volume. – Ability to handle two way item creation. (Open Box items
dynamically created in EBS interfaced back into PIM for creation there.)
• Build a hierarchical repository in EBS for managing attribute inheritance, which is used by planning & Warehouse Management extensions.
PIM
Middleware
Challenges – Purchasing Complex purchase orders
Blanket/backup order management
Management of high volume of open orders
Varying product types
Multiple Matrixes
Footwear PO may have hundred of lines for multiple widths and sizes
Seasonal and fashion based product
ADF Supplier Work Bench (SWB) Provides summary data at re-buyer, supplier, style color, and purchase order levels with drill down capability
Quick access to data providing a quick view and guidance into ordering priorities, issues, and management metrics of performance
Eliminates multitude of current reports and individual buyer processes, standardizing the buyer process to add efficiency and more immediate issue visibility
Provides suggested ordering quantities based on day supply targets
Provides suggestions on expediting or delaying to orders to meet demand at the optimal time to reduce inventory and prevent backorders
Offers mass change functionality at sku level to more efficiently maintain high sku products purchase orders
Provides ability to copy orders instead of entering new ones manually, creating efficiency in high sku products
Ability to send purchase orders to e-mail directly in the system, instead of printing, scanning, and then e-mailing
Purchasing Approach – System Integrators Perspective
• A single portal for supply planning, buyer intelligence & entering purchase orders.
• Support purchasing for Style SKU’s, by providing a matrix display for Purchase Order Entry
• Ability to recommend purchase quantities & react to changing demand projections by highlighting opportunities for pull-in & push-out of supplier delivery dates.
• Ability to seamlessly integrate with EBS Purchasing. Purchase Orders started in custom screen can be completed EBS and vice-versa.
Challenges – WMS High volume receiving by UPC scanning
Cross dock indicator for entire PO if more than x% of full PO is determined to be immediate needs
Cross dock indicator for single items within PO if scanned item is determined to be immediate needs
Random location Putaway (PO receiving and returns) Putaway is much more efficient when the user can scan the items into whatever location has available space
Wave Generation/Delivery Assignment EBS Concurrent Program
filters include org, order type, priority
Multis – multiple items going to same address on same order with same shipping method selected – same delivery
Waves size determined by # of consolidation locators available for the org
Deliveries get assigned to a consolidation locator for packing
Singles – single item going to single address on order
Wave size determined by org parameter
Items flow straight down conveyer to singles packing station
Wave Release EBS Concurrent Program
Uses vanilla release rules to release orders for picking
Picking High speed - picking by zone (EBS locator picking order), not by order
Multis – generic label gets printed to notify conveyance system to divert to multi consolidation area
Singles – put on conveyer and sent directly to singles packing area
Several filters included to limit picking if necessary
Challenges – WMS - cont'd Packing
Singles Packing
Packs oldest order found on system for scanned UPC
Prompts user to add catalog/insert into box if required
Multis Packing
System forces complete pack of all expected components of that shipment before allowing completion of Shipping
Ability to lookup missing items easily if required
Prompts user to add catalog/insert into box if required
Integration with ProShip software at time of packing completion for:
determination of most economical shipment method
packing label printing
outbound shipping label printing
return shipping label printing
Enforcement of shipping rules
Challenges – WMS - cont'd Returns (ADF Form)
Easy to use ADF frontend application that interfaces with EBS’s core RMA process
Order derivation logic
Return multiple items on the same order in the same transaction
Interfaces with EBS Inventory module to create new “open” items, for items that were returned and deemed to be re-sellable
Interface with ProShip labeler product to generate return labels that get applied to product
Cycle Count Cycle count by locator instead of item
Scan all the UPC’s in a locator
System will check against on-hand and add cycle count adjustments OR ask for a Recount.
Adjustments can be approved from standard Cycle Count forms in Inventory
Directed Counting
Indicate how may times a year you want to count each location. System will direct you to the next locator to count based on picking order.
SHU Pull application ADF front-end application that interfaces with the WMS module to allow business users to lookup inventory
quantities, and automatically account alias issue quantities out of stock for the specified item.
Auto completes an account alias issue to an account selected within the form at time of transaction
Auto generates and prints a SHU PULL form (containing the account alias issue transaction information) to the correct warehouse from which the item was issued out
WMS Approach – System Integrators Perspective
• We did not start the discussion with what the Oracle WMS system can do, instead we started with what the ideal process for Mason should be.
• Both the Business & I.T. WMS leads had prior experience with Oracle WMS & extensive product knowledge.
• Warehouse on legacy system was fairly efficient since sorting / conveyer equipment purchased over the years was optimized with legacy system.
• Goal was to build on the strengths of the legacy system while addressing known limitations.
• Even though no customizations to Oracle code were done, several custom Mobile Forms were made which allowed Mason to minimize no. of keystrokes / scans.
WMS Solution Objectives
Speed: Fast order to ship times.
Flexibility: High variability. Ability to quickly adapt to demand spikes or changes in product mix. Ability to leverage material handling infrastructure optimally.
Accuracy: Shipping Accuracy.
Maintainability: Integrate with or & work within Oracle E-Business suite with zero impact on patching, upgradability or performance
Challenges - EBS Integration with Legacy OMS
Timing of order creation in legacy system to order fulfillment in EBS
ATP process run in EBS Sends current on hand Available to Reserve quantities per item to OMS
Sends future item availability dates based on lead times from receiving and incoming purchase orders to OMS
Order/Customer info loaded from OMS into EBS interface tables Customers
Order Headers
Order Lines
Oracle EBS order import process Pulls info from aforementioned interface tables to load customer/orders into Vanilla EBS Order Management
module
Decision made on which warehouse to fulfill product from
Orders either come into EBS as reserved (immediately fulfillable) or unreserved (backordered)
Backordered items in EBS allow us to see that demand for Purchasing and for warehouse immediate needs purposes
Wave Creation process is run Creates waves and assigns deliveries
Segregates multi and single waves
Challenges - EBS Integration with Legacy OMS - cont'd
Wave Release process executed Releases the wave to the warehouse for fulfillment
Picking occurs Workers can pick based on varying levels of filters
Picked multis - get printout applied to tell conveyance system to divert to multi consolidation area for packing
Picked singles – no printout, the conveyance system sends these directly to the singles packing stations
Packing/Shipping confirmation occurs Singles Packing
Multis Packing
OMS Integration Approach – System Integrators Perspective
• Order Management which remains on legacy, needed ability for Global Order Promising. This was achieved by providing both a daily BULK ATP interface – as well as a single ATP interface for real time Order Promising.
• Needed ability to pass shipment / tracking information from Parcel Manifesting system back to OMS for use by the Call Center application.
• Ability to fulfill vendor drop-ship orders, and provide the same Order Promising capability for drop ship orders as was available for internally fulfilled orders.
• Ability for RMA orders created in reverse logistics workbench to flow back to the Legacy OMS
Legacy Order Management &
Call Center
Parcel Manifesting
Reverse Logistics
WorkbenchDrop Ship Aggregator
Go-Live Success Executed ~1000 line go-live plan
Included conversion and mass loading of:
Inventory Items
~1 million items
On hand inventory quantities and costs for 3 warehouses
~73k stock locators
~1.4 million on hand quantity
Purchase Orders
~25k purchase orders
~3.4 million customers
~10.5 million legacy orders for returns purposes
~6 million outstanding prepaid returns
Initial order load
~48k Orders taken during cutover down time
Suppliers
~1,400 suppliers
Go-Live Success - cont'd
Coordinated with fiscal year end (June 25th – 29th, 2014)
Minimal impact to business/customer base Order management unaffected by go-live
Warehouse and Purchasing only offline Thursday and Friday
Ability to expedite shipment of orders to customers for these 2 days when business resumed
Resumed normal warehouse/purchasing operations Monday, June 30th as planned
No additional resources required to meet shipment demands caused by downtime
Shipped nearly 40k units the first 24 hours on the new system!
“This is probably the
smoothest transition
of a major IT system
that I have ever
seen.”
Daniel J. Hunt
President/CEO
Mason Companies,
Inc.
6 Months Later…..
Completed busiest holiday season in company history
Shipped over 2 million packages on new system
Had highest unit shipping day in history of the company
3 of the top 10 highest unit shipping days in company history
No disruptions to business efficiencies
Increased efficiency of general merchandise picking
Increased customer satisfaction and efficiency due to cross docking
ProShip software integration efficiencies
ProShip labeler used for all warehouse labels
Freed up legacy system licenses to allow expansion of call center
Decreased load on legacy system
Increase in support efficiency
Currently implementing drop-ship
Increase in Supplier Workbench adoption/efficiencies
Better positioned company to pursue new business ventures
Project Impact
Integrated Financials
More user friendly/supportable environment
Tighter integration within fulfillment systems
Eliminated non-supported technologies
Enhanced ability to expand into different business opportunities
Transferred legacy sourcing/distribution licensing to other business areas
Reduced legacy risk
Keys To Success Right People
Good Partners
Internal resources with the prior Oracle EBS experience
Small but focused team
Executive Support
Allowed deadline extension to support quality assurance
Multiple iterations of testing
Integrated Fulfillment Management at Mason
Companies, Inc.Ryan Plotz, Sr. Systems Analyst, Mason Companies, Inc.
Dan Raffesberger, Sr. Systems Analyst, Mason Companies, Inc.
Oracle Value Chain Summit 2015
Mason Companies, Inc. + Oracle Partnership = High Volume/ High Performance Retail