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Oracle Value Chain PlanningEnables leading edge and transformational business processes
SCM Product Solution Consulting
© 2008 Oracle Copyright, Proprietary & Confidential
Agenda
• Key business management point in SCM solution
• Key business process in SCM solution
• Our key SCM product family and modules for china market
2
© 2008 Oracle Copyright, Proprietary & Confidential
Today’s Value Chain is Complex
Suppliers Customers
InnovationInnovation
ProcurementProcurement
Human Capital Management
Va
lue
Cre
atin
gA
ctivities
Su
pp
ortin
gA
ctivities
Financial Management
• Geographically Distributed• Dynamically Networked
• Increasingly Collaborative• Product & Service Oriented
InboundInboundLogisticsLogistics OperationsOperations OutboundOutbound
LogisticsLogisticsMarketingMarketing& Sales& Sales ServiceService
Value Creation
© 2008 Oracle Copyright, Proprietary & Confidential
Oracle’s Unique Offering Comprehensive Suite of Best in Class Capabilities
Innovation
Procurement
Human Capital Management
Va
lue
Cre
atin
gA
ctivities
Su
pp
ortin
gA
ctivities
Financial Management
InboundLogistics
OperationsOutboundLogistics
Marketing& Sales
Service
Strategic Network OptimizationStrategic Network OptimizationStrategic Network OptimizationStrategic Network Optimization
Advanced Supply Chain PlanningAdvanced Supply Chain PlanningAdvanced Supply Chain PlanningAdvanced Supply Chain Planning
ERPERPERPERP
Business Platform, Applications Integration ArchitectureBusiness Platform, Applications Integration ArchitectureBusiness Platform, Applications Integration ArchitectureBusiness Platform, Applications Integration Architecture
Warehouse ManagementWarehouse ManagementWarehouse ManagementWarehouse Management
Transportation ManagementTransportation ManagementTransportation ManagementTransportation Management
ManufacturingManufacturingManufacturingManufacturing
Production SchedulingProduction SchedulingProduction SchedulingProduction Scheduling
CRMCRMCRMCRM
Service Supply ChainService Supply ChainService Supply ChainService Supply Chain
Product Lifecycle ManagementProduct Lifecycle ManagementProduct Lifecycle ManagementProduct Lifecycle Management
Demand Management - Real-Time S&OPDemand Management - Real-Time S&OPDemand Management - Real-Time S&OPDemand Management - Real-Time S&OP
Business Intelligence and AnalyticsBusiness Intelligence and AnalyticsBusiness Intelligence and AnalyticsBusiness Intelligence and Analytics
Inventory PlanningInventory PlanningInventory PlanningInventory Planning
© 2008 Oracle Copyright, Proprietary & Confidential
Design Procure Make Deliver Sell
When? Where?
Schedule, monitor, control and adjust production
Production scheduling Supplier scheduling Customer order promising / tracking
Op
era
tion
al
How much?
Deploy resources to match supply to demand
Collaborative demand forecast Procurement, production, logistics plan Stakeholder inventory targetsT
acti
cal
What?
Establish objectives, policiesand operating footprint
Objectives Supply policies (service levels) Network designS
trate
gic
Do
Buy, build, store and transport
Order cycle Material movement
Execu
tion
Value Chain Management Process AreasS
up
pliers
Cu
sto
mers
Complete : Open : Integrated
© 2008 Oracle Copyright, Proprietary & Confidential
Design Procure Make Deliver Sell
When? Where?
Schedule, monitor, control and adjust production
Work center scheduling Supplier scheduling Customer order promising / tracking
Op
era
tion
al
How much?
Deploy resources to match supply to demand
Collaborative demand forecast Procurement, production, logistics plan Stakeholder inventory targetsT
acti
cal
What?
Establish objectives, policiesand operating footprint
Objectives Supply policies (service levels) Network designS
trate
gic
Do
Buy, build, store and transport
Order cycle Material movement
Execu
tion
Su
pp
liers
Cu
sto
mers
Strategic Decisions That Are ExecutedComplete : Open : Integrated
CustData
Trade / Deal Mgmt
PLM
S&OP
Advanced Planning
Transportation & Logistics
Inventory & Network
Move ? Make ? Buy ?
Scheduling TPM
PTP
Volume Planning
Retail ExecutionTrans Mgmt
Supply Chain Planning – Fast MRP, DRP, Constraints, Optimize
Process
Discrete
Whs Mgmt
Production Scheduling
Service Parts Planning
Demand Management – Sense, Respond, Shape
Network and Inventory – Strategy, Plan, Optimize
Command Center
Real-Time Sales and Operations Planning
EPM – Financial Planning & Strategic S&OP
Demand Signal Rep
© 2008 Oracle Copyright, Proprietary & Confidential
Demand Management is the key
RetailerManufacturer DistributionSupplier Consumer
Dem
and
Dem
and
Time
Dem
and
TimeTime
Dem
and
Time
Dem
and
Time
原因 :• 预测不准• 大量促销 • 提前期不稳定• 库存控制参数• 批量处理
现象 :• 库存过剩• 生产效率低• 分销渠道利用率低• 断货导致的客户服务水平低• 供应链成本高
措施 :• 需求驱动的供应链• 可信任的协同和信息共享• 借助信息化技术的力量
© 2008 Oracle Copyright, Proprietary & Confidential
World Class Demand ManagementSense Demand: Arrive at a More Accurate Consensus Forecast
Gain Real-Time Visibility to All Demand Signals • Capture demand closer to the point of actual consumption;
forecast at a more granular level; accommodate multiple units of measure and currencies
Accurately Predict Demand via Adv. Analytics• Establish baseline forecast using quantitative & qualitative
data; utilize high precision statistical forecasting without requiring a statistical background
Rapidly Reach a Better Consensus Forecast• Collaborate with internal and external constituents; quickly
identify and react to demand changes and exceptions; leverage multi-dimensional analysis techniques
“Corporations that have adopted demand-driven supply chains are outperforming their competitors by a wide
margin.”
- Start with Demand
Shipments
MarketingForecast
Order History
Customer Sales
CollaborationWorkbench
Channel Data
DemandHubDemandHub
DemantraDemantra
© 2008 Oracle Copyright, Proprietary & Confidential
Predictive Trade Planning & OptimizationShape Demand: Influence Who Buys What Products, and When
• Profitably optimize future promotions by incorporating promotional effects (e.g. cannibalization and halo)
• Influence product purchases based on production capacity and inventory
• Collaboratively manage all funds, sales, and account planning
• Integrate analytics with baseline forecast and lift calculations to predict and monitor trade fund spending
0
500
1000
1500
2000
2500
3000
3500
4000
Period 1 Period 6 Period 11
Ca
se
s
Cannibalization
Pre- and post-effects
Competitive switching
Category growth
Baseline
Actual
Past Future
0
500
1000
1500
2000
2500
3000
3500
4000
Period 1 Period 6 Period 11
Cannibalization
Pre- and post-effects
Competitive switching
Category growth
Baseline
Actual0
500
1000
1500
2000
2500
3000
3500
4000
Period 1 Period 6 Period 11
Cannibalization
Pre- and post-effects
Competitive switching
Category growth
Baseline
Actual
DemantraDemantra
© 2008 Oracle Copyright, Proprietary & Confidential
10
• Interactively engage management
• Move from a periodic reactive to a real time, iterative and proactive process
– Reduce cycle time and improve alignment by automating the consensus process
– Profitably balance supply, demand, and budgets
• Drive tactical decisions into operational planning and execution, and monitor performance
• Start quickly with best practice templates and easily adapt to your business – evolve at your own pace
Move from a static to a dynamic S&OP process
* Planned for future
Maximize sales and improve operations through a continuous S&OP process
ContinuousS&OP
Demand sensingand shaping
Supplyplanning
TradeManagement
FinancialPlanning
Product Planning
RiskManagement
Engineering
FinanceSupplyProduct Demand
Interactive, extended S&OP process
Traditional S&OP process
Sales
Operations
Strategy
Finance
Marketing
DemantraDemantra
© 2008 Oracle Copyright, Proprietary & Confidential
Consider all costs and constraints that impact the decisions
Capacity Constraints (Hard and Soft)
• Supply constraints• Manufacturing constraints• Transportation constraints• Storage and inventory constraints• Target service levels• Dynamic safety stock
Costs ($): Real and Penalty , Variable and Fixed
Transportation (inbound, outbound)• Storage and inventory carrying costs• Fixed costs (startup, shutdown, operating
costs)• Material supply• Manufacturing and labor• Price (for profit optimization)
Suppliers Transportation Manufacturing Transportation Transportation CustomersDistributors
Strategic Network OptimizationSNOSNO
© 2008 Oracle Copyright, Proprietary & Confidential
Global Inventory OptimizationAchieve Greater Order Fulfillment Flexibility
• Improve delivery accuracy by storing common subassemblies which are completed only when an order is placed
• Maximize on-time product delivery while minimizinginventory costs
• Reduce inventory write-offs
Determine Inventory Levels & Locations Based on Anticipated Demand
Inv
en
tory
Co
st
Product Delivery
10 30 50 75 80 85 90 95 100
WithoutOracle
WithOracle
LowerLowerInventoryInventoryCostCost
ImproveImproveOn-TimeOn-TimeDeliveryDelivery
IOIO
© 2008 Oracle Copyright, Proprietary & Confidential
13
Synchronize plans across the enterprise Holistic supply, distribution, and manufacturing planning
“Significantly reduced inventory levels, improved predictability of supply, improved order to
delivery cycle time, and improved Sales & Operations collaboration”Robert Moon, CIO of Leapfrog
• 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– Fair-share allocation– Load consolidation– Include customer and supplier facilities
• Manufacturing planning– Sequence dependent setups/changeovers– Simultaneous resources– Batch and alternate resources– Minimum transfer quantities– Complex, network routings– By-products and co-products
ASCPASCP
© 2008 Oracle Copyright, Proprietary & Confidential
Adaptable – Segment the problem as needed
• Adapts to your current business model– Single plan or multiple plans; hub-and-spoke planning models
• Evolve planning model at your own pace– Re-configure easily by modifying plan options instead of re-implementing or re-modeling
• Multiple models can co-exist
GE Transportation - Avionics has moved from running separate plans in 36 facilities to running a single holistic plan across their DCs, end-assembly, contract manufacturing, and component shops, and as a result has reduced their planning organization significantly
MULTIPLEPRODUCTION PLANS
SINGLE MPS,MULTIPLE MRPs
SINGLE HOLISTICPLAN
MRP Org 1 MRP Org 2 MRP Org 3All Organizations
MPS for BU 1 MPS for BU 2
MRPOrg 1
MRPOrg 2
MRPOrg 3
MRPOrg 4
MRPOrg 5
ASCPASCP
© 2008 Oracle Copyright, Proprietary & Confidential
15
Increase shop floor throughput Improve shop floor efficiency
• Maximize production throughput– Optimize your shop floor; detect floating bottlenecks– Reduce WIP inventory by rapidly synchronizing multi-
stage production schedules– Account for complex setup and change-over
scenarios, machine breakdown, supply and resource shortages, co- and by-products, alternate resources, routings, and operations
• Model all elements of your shop floor– Work centers, resources and resource groups, shift
capacity, operating costs– Lead times: setup, change-over, and run– Sequence dependent setups, contiguous operations,
production campaigns, batching
• Release most optimal schedule– For process (OPM), discrete MFG), and semi-
conductor (OSFM) manufacturing
PSPS
© 2008 Oracle Copyright, Proprietary & Confidential
16
ATP
Check
GOPDay 1 Day 2
• Multiple facilities
• Which plant makes what products and when
• Pre-builds based on capacity shortages
• Alternate facilities, suppliers and processes
Day 3
Production Schedule Org 1
8am 12pm
• Schedule a single facility
• Sequence Production to meet demands on this facility
• Account for detailed production constraints and come up with an executable schedule
4pm
PS – Production Schedule Org 2
PS – Production Schedule Org 3
Constrained dependent demands independent demands planned orders
ASCP – Production Plan PS – Production Schedules
Production Plan Org 1, 2, and 3
Execution work orders Process batches, and Lots scheduled detailed activities
Integrated manufacturing planning & scheduling
© 2008 Oracle Copyright, Proprietary & Confidential
17
Suppliers/Manufacturing CustomersCentral DCs
Comprehensive distribution planning
• Plan all distribution facilities holistically – Alternates, substitutes, bills of distribution, transfer rules, product family and product level, customer and supplier facilities
• Determine optimal supply allocation from plants to distribution centers– Fair share allocation– Inventory policy at multiple levels (max, target, safety stock)– Inventory rebalancing (circular sourcing)– Shipping method selection and load consolidation– Global forecast -> local allocation of supply across distribution network
• Automatically generate internal transfers and consolidated shipments– Integrated with Oracle Transportation Management (G-LOG) for carrier and mode selection
Distribution plan Consensus demand
Cross-enterprise synchronized view of supply and demand
Regional DCs
ASCPASCP
© 2008 Oracle Copyright, Proprietary & Confidential
18
Dynamic fulfillment decisions
• Postpone fulfillment decision to supply planning
– Check availability before specifying shipping location
– Allocate supply to customers
• Dynamically consume and manage forecasts inline, based on where demand originates
– Forecast without reference to shipping facilities
– Consume forecast based on type of demand
Increase flexibility for your fulfillment decisions and improve delivery performance and inventory and capacity utilization and allocation
Region “East” Region “West” Region “South”
Orders andForecast
Orders and Forecast
Required AvailableR A R A R A
Shipments Shipments
DynamicAllocation
InsufficientAvailability
ASCPASCP
© 2008 Oracle Copyright, Proprietary & Confidential
Global Transportation ManagementMeet Varying Customer Demands for On-Time Delivery at Lower Cost
OptimizeModes& Routes
• Plan and re-plan across multiple legs, tiers, nodes, and modes (truck, air, train, ocean)
• Handle all supplier inbound and customer outbound deliveries
• Display results via intuitive, graphical UI
AutomateExecution &
CollaborationPayments
Event Mgmt
• Manage internal and 3rd party fleets(eg. LSPs) in the same system
• Enable partners to transact and“self-update” (eg. pick-up request)
• Handle exceptions via automatedevent management notifications
• Integrated with shipping, receiving, inventory management & purchasing
• Manage the International Movement of Goods Within a Single System
• Optimize Logistics Networks through Global Control, Local Execution, and Central Management
OTMOTM
© 2008 Oracle Copyright, Proprietary & Confidential
Closed-Loop Collaborative Planning Immediately Gain Value Chain Visibility to Both State and Direction
• Share forecasts and supply commits with customers and suppliers
• React immediately to disruptions in supply chain; enable partners to adjust accordingly
• Have completesupply chain visibility
Consensus Forecast and Production Plan
Supply Planning
Demand Hub &Multi-DimensionalAnalysis
AutomatedExceptions
S&OP Process
SingleHolistic Plan
Business Intelligence
Sales
Marketing
Mfg
Manufacturing
PortalPortalPortalPortal
Tier 2
Tier 1
CUSTOMERSCUSTOMERS SUPPLIERSSUPPLIERS
CPCP
© 2008 Oracle Copyright, Proprietary & Confidential
21
Promise orders on-time, 24x7
• Promise orders based on global statement of availability:
– Material, Manufacturing capacity– Transportation capacity, Supplier capacity
• Drive fulfillment decisions based on demand and supply plans
– Promise based on optimal supply decisions
• Allocate available supply and capacity– By channel, customer, or product– Priority and stealing rules
• Manage commitments to key customers– Re-schedule and re-sequence your backlog
Improve on-time delivery through constrained order promising
Achieved a 98% delivery performance to promise date
GOPGOP
© 2008 Oracle Copyright, Proprietary & Confidential
22
Monitor and manage
• Close the loop with embedded analytics– Provide insight to key decision makers
– Bridge the gap between analytics and planning through seamless integration with operational planning applications
– Leverage pre-built dashboards with rich content and KPIs
• Proactively respond to deviations in performance
– Identify root cause
– Define and evaluate alternative business scenarios
– Manage execution of scenarios; assign tasks to planners and other stakeholders
• Reduce decision making cycle time through process automation
– Use BPEL process flows to execute planning processes
– Configure and adapt
Enable holistic view of supply chain performance
Analytical Data
Planning Dashboards and Reports
Business scenario planning
Planning process automation
Execute scenarios
Scenario andActivity Management
Forecasting Supply Planning
Web Service enabled planning processes
Orc
hes
trat
eP
lan
An
alyz
e
APCCAPCC
© 2008 Oracle Copyright, Proprietary & Confidential
23
Demantra Demand Management
Advanced SupplyChain Planning
Inventory Optimization
Demand from DM
Supply from ASCP or SNO
Inventory from IO
Close the loop with embedded analytics
Demantra Demand Management
Drilldown to details
Enable holistic view of supply chain performance and drill down to details
APCCAPCC
© 2008 Oracle Copyright, Proprietary & Confidential
Agenda
• Key business management point in product solution
• Key business process in product solution
• Our key product family and modules for china market
24
© 2008 Oracle Copyright, Proprietary & Confidential
Generate Baseline Forecast
Promotion Plan and Management
Customer Orders
Create Shipping Order
Work Order
Manufacturing Planning
Order history
Demantra
ASCP
Ship to customer
GOP
Match, schedule, or unschedule
Value Chain Planning ERP
Schedule orders
Distribution Planning
CP
Publish order forecastfor procurement Plan
Receive supply commitfor procurement Plan
High Level Business Process
S&OP
SNO
Network Optimization
IO
Inventory Optimization
Consensus Fcst
Consensus Fcst
Fcst Err
PS
Production Schedule
Sourcing Rule
InventoryRule
OTM
Transportation Plan
Transportation Capacity Plan
Purchasing Order
© 2008 Oracle Copyright, Proprietary & Confidential
Transportation ManagementProcess Flow
2
3
4
56
1
7
8Capture Orders – Import
orders, purchases, returns, stock transfers into OTM. Use workflow to populate dates, sku size, planning
preferences, etc.
CaptureOrders
Plan &Optimize
ManageIn-transit
Re-planShipments
Audit & PayFreight
ExecuteShipments
Report &Analyze
ImproveOperations
Plan & Optimize – Select order dataset to plan into
shipments. Choose “Best” mode, route and carrier.
Decide fleet versus common carriage. Coordinate with
WMS and MFG.
Execute Shipments – Perform Global Trade
checks. Contact carriers (tender). Schedule
appointments. Order equipment. Interface with
parcel system for labels and manifests. Print shipping
docs (BOL, SED, CI, SLI).
Manage In-transit – Request and receive events from
supply chain partners including carriers. Track shipments, gain visibility, identify delays. Update
shipments with actual values (weight, pcs, equipment ID).
Re-plan Shipments – Rerate and route shipments based on updates. Send shipment and order changes to OM,
WMS, FINS. Generate customer freight charges
(bills) to associate with the order. Sent to A/R.
Audit & Pay Freight – Accrue freight. Allocate costs
to order lines. Establish Payment Rules and
Tolerances. Set invoice approval authority. Match,
approve and pay carrier invoices. Manage exceptions
/ accessorials.
Improve Operations – Leverage reports and analytics to improve
operations. Right size fleet. Procure better carrier rates (Sourcing). Feed network
optimization with transportation data to analyze
supply chain redesign.
Report & Analyze – Monitor dashboard to identify logistics
trends. Produce periodic reports for managing
operations. Build ad hoc reports. Automate
distribution of reports to key team members.
© 2008 Oracle Copyright, Proprietary & Confidential
消费品行业– 销售和运营管理流程
SAMPLE
© 2008 Oracle Copyright, Proprietary & Confidential
Agenda
• Key business management point in product solution
• Key business process in product solution
• Our key product family and modules for china market
28
© 2008 Oracle Copyright, Proprietary & Confidential
29
Demand
Management
Predictive Trade
Planning
Strategic Network
Optimization
Collaborative
Planning
Advanced Supply
Chain Planning
Inventory
Optimization
Demand Signal
Repository
Advanced Planning Command Center
Deduction and
Settlement Mgmt
Real-Time
S&OP
Global Order
Promising
Production
Scheduling
Financial Planning
PLM
Trade Mgmt
SCM
VALUE CHAIN PLANNING
Transportation
Management
Service
Parts Planning
SCM
Key Product Families
Trade Promotion
Optimization
Advanced Forecasting
& Demand Modeling
Legacy Systems
Sales
EnterpriseOne
World
Future
© 2008 Oracle Copyright, Proprietary & Confidential
Transportation Order Management
Global VisibilityGlobal Visibility
Supply Chain Event ManagementSupply Chain Event Management
Business Intelligence (Analytics & Reporting)Business Intelligence (Analytics & Reporting)
Freight Forwarding and BrokerageFreight Forwarding and BrokerageBu
y/S
ell C
on
trac
t M
anag
emen
tB
uy/
Sel
l Co
ntr
act
Man
agem
ent
Co
op
erat
ive
Ro
ute
Pla
nn
ing
Co
op
erat
ive
Ro
ute
Pla
nn
ing
Tra
nsp
ort
atio
n S
ou
rcin
gT
ran
spo
rtat
ion
So
urc
ing Transportation Planning
Transportation Execution
Freight Payment, Billing and Claims
Oracle Transportation Management (G-Log)
© 2008 Oracle Copyright, Proprietary & Confidential
31