SCM-4 How to Position Customer Order
Management
Colleen Roberts, Product Marketing Manager
Page 2 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
What’s the opportunity to sell Customer Order Management in 2004?
Over 50% of companies plan to
replace or significantly enhance
their Order Mgmt systems in next
two years.
Source: AMR Research
Customer Order Management was the highest
PeopleSoft revenue SCM product category in
target industries last year.
Page 3 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Today’s Business Realities
• More than half of companies have more than one Order Mgmt system:
Source: AMR Research
• Challenges of Disparate Systems
•2/3 have partial or no integration, 68% of integration is hard coded
•50% have none or limited product and customer standardization
the average company has 5+
•43% of companies make one or more acquisitions per year
•61% of companies sell through an indirect channel
•45% of customers place orders through more than one channel
Page 4 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Customer Example
Benefits
• Order to Pick from 24 hours to < 15 min.
• Near real-time order confirmations
• Manage increased volume and complexity: 3,000 orders/day on 300,000 SKUs
PeopleSoft Products
• Order Management
• Inventory
• Billing
• Production Planning
• Production Management
Moved from three disparate order management systems to a single, flexible system.
“PeopleSoft supported our needs to takethousands of stock and customized orders per day, pick and ship them within an hour of receipt, and manage lot tracking on a product line of about three hundred thousand SKUs.”
Doug McClure, Director, Enterprise Applications
Page 5 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Industries with highly fragmented systems… and available budget to fix
Chemicals
High Tech Manufacturing
Consumer Goods
Top 3 Industries
• Single, integrated order management system
• Order visibility across supply chain
• Single, shared customer record
Top Priorities:
Source: AMR Research
Page 6 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
In summary: Many companies will replace their order management systems
Gartner agrees…
In 2004, a market resurgence for ERP will come…[from the need to] replace fragmented applications with a single …. integrated ERP application (0.8 probability).
In the traditional markets (such as manufacturing and distribution), users will focus on consolidating vendor offerings….
Gartner, November 2003
Page 8 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q1: What percentage of companies plan to replace or significantly enhance their Order Management systems in the next 2 years?
a) 20%
b) 30%
c) 40%
d) 50%
Page 9 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Agenda
• The opportunity for Customer Order Management
• Selling Strategy & Tactics• Target Industries• Pain Chain• Value Messaging and Power Positions• When to Position Enterprise & EnterpriseOne
• Solution Overviews• Cross Sell / Upsell Opportunities
• Competitive positioning
• Customer Win Stories
Questions?
Selling Strategy and Tactics
SELECTIONLEAD &
CONTROLDISCOVERYQUALIFYPRE-QUALIFY
CLOSED/TRANSITION
NEGOTIATION
Page 12 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Target SCM Industries
Life Sciences
Automotive
Wholesale Distribution
Consumer – Food & Beverage
Consumer - Durables/Personal & Hsehld/A&F
Industrial Manufacturing
High Tech Electronics
Chemicals & Lubricants
Paper & Packaging
Downstream Energy
Pre-Qualify
725+
400+
630+
600+
900+
800+
450+
170+
100+
125+
Page 13 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Customer Order Management Pain Chain
CEO/CMO/Sales/CFO
Pain
“What do you mean we can’t support expanding our order channels?”
“You mean I have to talk to another dissatisfied customer??”
“We need to get revenue and profit levels up to the best in our industry”
Business Driver
• Expand order channels with unified view
•Reduce lost / dissatisfied customers
•Revenue and profit growth
Qualify
Added new online order channel
Increased order rate 15% without added staff
Reduced build-to-order lead time 50%
Page 14 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Customer Order Management Pain Chain
Operational Management
Pain
“I don’t know how effective each promotion is, yet we spend a lot of money on promotions”
“Our order administration costs are too high… too many people…”
“We keep losing orders to competitors because they get delivery promises to people faster”
“We can’t measure our order fulfillment effectiveness, like our percentage of perfect orders”
Business Driver
• Effective promotions spending
•Reduce costs of order management, increase efficiency
•Reduce lost orders
•Ongoing performance measurement
Qualify
Promising orders used to take as long as 2 hours, now 45 seconds
Discount structures moved from giant Word document… now organized and easier to manage
97% on-time delivery (up 19%)
Order processing time reduced 20%
Page 15 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Customer Order Management Pain Chain
Evaluation Team
Business Driver
• Accurate order management
•Fast order entry, automated efficient price management
•Information visibility for customer service excellence
Qualify
Pain
“We spend so much time fixing order and fulfillment errors for customers”
““It takes too long to enter orders and keep pricing up to date”
“We can’t see all the information we need to take orders from customers and answer inquiries”
20% increase in order accuracy
10% increase in sales volume
Effectively handled 400% increase in call volume
Automatically generating 300 customer price quotes daily based on changing commodity costs
Page 16 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Customer Order Management Pain Chain
Technology Team
Pain
“We can’t cope with the integration of too many fragmented order management systems“
“We need a system that can scale as our company grows, so we don’t have to replace the software again too soon”
“We have to handle too many questions from our order entry staff… the software is too difficult to use”
Business Driver
• Total cost of ownership
•Scalability
•Ease of use, ease of maintenance
Qualify
Pain
“We can’t cope with the integration of too many fragmented order management systems“
“We need a system that can scale as our company grows, so we don’t have to replace the software again too soon”
“We have to handle too many questions from our order entry staff… the software is too difficult to use”
50% reduced Quote Lead Times (30 days to 15 days)
97% to over 99% inventory accuracy
2.0 to 0.5 FTE IT Support Staff
100% System Reliability (no downtime since inception)
Page 18 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
“Value” Messages Lead & Control
Integrated, single view of all order management Integrated, single view of all order management
Reduce costs, increase revenue and profitsReduce costs, increase revenue and profits
Consistent customer service excellenceConsistent customer service excellence
Page 19 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q2: Which of the following are target industries for PeopleSoft Customer Order Management?
a) Life Sciences
b) Consumer Products
c) All of a, b and c
d) Paper & Packaging
Page 20 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q3: By what percentage did PepsiAmericas improve order accuracy?
a) 50%
b) 0%
c) 10%
d) 20%
The $10 million dollar question:
Which SCM Product Family do I sell?
Lead & Control
Page 22 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management?
Lead & Control
What is the customer’s financial solution?• If Enterprise, then position Enterprise SCM• If EnterpriseOne, then position EnterpriseOne SCM
Existing Customer?Leverage software
already installed
Areas to Consider:
Page 23 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management?
Lead & Control
•EnterpriseOne and World run natively on IBM iSeries (AS/400)• 30+% of EnterpriseOne customers, 100% of World customers
•EnterpriseOne is the leader in SCM solutions on iSeries
•No other Tier 1 competitors run natively on iSeries
Existing Customer?Leverage software
already installed
Must have iSeries? EnterpriseOne
Areas to Consider:
Page 24 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management?
Lead & Control
How does the prospect Deploy, Buy and Use software?
Mid-market Buying Criteria? EnterpriseOne
Existing Customer?Leverage software
already installed
Must have iSeries? EnterpriseOne
Areas to Consider:
Page 25 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management?
Which Industry?Consider Industry
Matrix
Mid-market Buying Criteria? EnterpriseOne
Existing Customer?Leverage software
already installed
Must have iSeries? EnterpriseOne
Lead & Control
Areas to Consider:
Page 26 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Industry EntOne Enterprise RationaleM&D IndustriesWholesale Dist: Food & Beverage x Catchweight (dual units of measure) functionality, customer referencesWholesale Dist: Industrial midmarket x x EnterpriseOne available now, or Enterprise wholesale distribution functionality available 2005Wholesale Dist: Industrial upmarket x Wholesale distribution functionality in 2005 roadmapWholesale Dist: Life Sciences x Electronic signatures, customer references
Consumer: Food & Beveragex
Process manufacturing, catchweight (dual units of measure), blend/grower mgmt (2004 roadmap) functionality, customer references. Note Enterprise if trade promotions mgmt critical
Consumer: Personal/householdx
Process manufacturing functionality, customer references. Note Enterprise if trade promotions mgmt critical
Consumer: Apparel & Footwear x Product Variants (size/color/style) functionality. Note Enterprise if trade promotions mgmt criticalConsumer: Durables x x Customer references. Note Enterprise if trade promotions mgmt criticalIndustrial: Industrial Manufacturing x Engineer-to-order and lean manufacturing functionality, customer referencesIndustrial: Automotive x Demand scheduling functionality (Q2 2004), customer references
Industrial: High Tech manufacturingx x
Engineer-to-order and lean manufacturing functionality in EnterpriseOne, customer references in Enterprise and EnterpriseOne.
Industrial: High Tech outsource buyer x Enterprise roadmap for outsourcing functionalityLife Sciences: Medical Devices x Electronic signatures, customer referencesLife Sciences: Pharmaceuticals x Electronic signatures, customer references
Asset Intensive / PSIChemicals & Lubricants x Bulk stock, agreements, dual units of measure, process routing functionality, customer referencesDownstream Energy x Bulk stock, agreements, dual units of measure, process routing functionality, customer referencesPaper and Packaging x Dual Units of Measure, Product Variants functionality, customer referencesReal Estate x Real Estate solution, customer referencesConstruction x Home Builder solution, customer referencesEngineering and Design x Customer referencesMining x Customer referencesStaffing/Services x SRM Services procurementCommunications x SRM functionality, customer referencesUpstream Energy/Utilities x SRM functionality, customer references
Financial Services x SRM functionality, customer referencesEducation & Government x SRM commit control functionality, customer references
Industry Matrix Lead & Control
Page 27 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management?
Lead & Control
Which Industry?Consider Industry
Matrix
Mid-market Buying Criteria? EnterpriseOne
Existing Customer?Leverage software
already installed
Must have iSeries? EnterpriseOne
Areas to Consider:
GUIDELIN
ES ONLY
Page 28 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q4: If your prospect insists on the iSeries platform, you will position the EnterpriseOne solution.
a) I don’t know
b) I don’t remember
c) False
b) True
Page 29 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Power Positions Lead & Control
Industry ProvenIndustry Proven
Configurable and FlexibleConfigurable and Flexible
ComprehensiveComprehensive
Page 30 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Target SCM Industries
Life Sciences
Automotive
Wholesale Distribution
Consumer – Food & Beverage
Consumer - Durables/Personal & Hsehld/A&F
Industrial Manufacturing
High Tech Electronics
Chemicals & Lubricants
Paper & Packaging
Downstream Energy
725+
400+
630+
600+
900+
800+
450+
170+
100+
125+
Lead & Control
Page 31 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Industry Fit – PSFT solves Industry “Must Haves”
Industry Industry Must-Haves E EO
Industrial Manufacturing Multi-attribute items (Product Variants)
ETO quoting in Manufacturing Mgmt
Configured items processing
Capacity/item reservations
High Tech Electronics Serial Genealogy
RosettaNet support
Consumer
Perishable goods
Meat processing
A&F, Sporting goods
Complex pricing
Trade promotions management
Lot control
Catchweight (Dual units of Measure)
Size/Color/Style (Product Variants)
Life Sciences FDA Compliance – CFR part 11
Lot Track and Trace
Charge backs and rebates
Page 32 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Industry Fit – PSFT solves Industry “Must Haves” (cont’d)
Industry Industry Must-Haves E EO
Automotive Demand Scheduling / Release Accounting
Asset Intensive
Paper & Packaging
Chemicals /
Downstream Energy
Product Variants
Dual Units of Measure
Bulk Stock Inventory
Agreement Management
Wholesale Distribution Complex pricing
Multi-branch support
(Other must-haves depend on the type of products distributed – see above)
Page 33 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Configurable and Flexible
• Enterprise• Business rules• User preferences• Tool set
Lead & Control
• EnterpriseOne:• Order Activity Rules• Advanced Preferences• Processing Options
• Process Modeler for both Enterprise and EnterpriseOne
Page 34 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Page 35 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Comprehensive: EnterpriseOne Supply Chain Management Solution
• Manufacturing Management
• Quality Management
• Requirements Planning• Engineer-to-Order
• Procurement and Sub-contract Management
• Buyer Workstation• Supplier Self-Service
• Inventory Management• Bulk Stock Logistics• Warehouse Management• Transportation Management
• Sales Order Management• Advanced Pricing• Order Promising• Agreement Management• Product Variants• Base Configurator
• Service Management• Customer Self-Service
• Product Data Management
• Demand Forecasting• Demand Consensus• Strategic Network
Optimization• Production and
Distribution Planning
• ProductionScheduling-Process
• ProductionScheduling-Discrete
Page 36 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Comprehensive: Enterprise Supply Chain Management Solution
• Manufacturing • Flow Production• Quality Management
• Strategic Sourcing• Purchasing• eProcurement• Services Procurement
• Inventory
• Order Management• Order Capture Self Service• Product Configurator• Promotions Management• Billing• eBill Payment
• Support• Field Service• HelpDesk
• Engineering• eProduct Management
• Demand Planning• Inventory Policy
Planning• Supply Planning --
Multisite Material Plannetr
• Supply Planning –Advanced Multisite Planner
• Catalog Mgt• eSupplier Mgt• Collaborative
Supply Mgt• SRS
Page 37 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Power Positions Lead & Control
Industry ProvenIndustry Proven
Configurable and FlexibleConfigurable and Flexible
ComprehensiveComprehensive
Questions?
Page 39 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q5: Which solution family has configurable order activity rules?
a) Enterprise
b) EnterpriseOne
EnterpriseSolution Overview
Lead & Control
Page 41 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Enterprise Customer Order Management products (SCM 8.8)
• Order Management
• Promotions Management
• Product Configurator
• Billing
• eBill Payment________________________• Inventory• Analytics• Order Capture Self Service• Support• Sales
Other Enterprise products to position:
Page 42 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
SCM 8.8 – Customer Order Management enhancements
Order Entry Self ServiceOrder Entry Self ServiceEnterprise PricerEnterprise PricerCross DockingCross DockingFulfillment WorkbenchFulfillment WorkbenchAdditional Trade Promotion TypesAdditional Trade Promotion TypesGeneric Credit Card IntegrationGeneric Credit Card Integration
Release Themes:•Compliance and Best Practice•Total Ownership Experience•Global and Industry Enhancements
Page 43 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Customer Order Management Key 8.9 Enhancements
• Mass Maintenance
• Cost-plus Pricing
• Enterprise Order Management Integration to EnterpriseOne• First step towards Shared Services/Distributed
Demand Management (DDM)
EnterpriseOneSolution Overview
Lead & Control
Page 45 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
EnterpriseOne Customer Order Management products
• Sales Order Management
• Advanced Pricing
• Base Configurator
• Order Promising
• Agreement Management
• Product Variants
Other EnterpriseOne products to position:
________________________• Sales Management Analytics• Customer Self Service• Sales• Support
Page 46 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
SCM 8.9 – Customer Order Management enhancements
Product Variants (Size/color/style)Product Variants (Size/color/style)Pricing and PromotionsPricing and PromotionsOrder-to-Cash enhancementsOrder-to-Cash enhancementsReservations Management (Order Promising)Reservations Management (Order Promising)Cross DockingCross DockingDual Units of Measure (Catchweight)Dual Units of Measure (Catchweight)Enhanced Lot ControlEnhanced Lot Control
Release Themes:•New ways to drive revenue and gain operating efficiencies•Meet industry-specific business process needs
Page 47 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Results of SCM 8.9 release
• 300+ enhancements, 30 new/enhanced modules
• 230+ shipments ww (Install Base/New), first live
• Analyst coverage: reports/articles
“The new modules and enhancements, which are far too many to list here, follow in J.D. Edwards' tradition...to provide good, pragmatic solutions that address the heart of their customer base...” John Moore, ARC Advisory Group
Page 48 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Nth Am Press Coverage: 50+ articles, coverage in 90% supply chain publications, 60% of coverage put enhancements in industry context
J.D. Edwards has [kept its] vow to push out more products in the next 24 months than it has in any other two-year time frame – Computerworld
For consumer goods companies, the software provides pricing and promotion management, inventory and order management, enhanced lot control and cross docking and profit management. For industrial manufacturers and distributors, the software enhancements are in engineering project management, product configuration management, …. – InternetWeek
J.D. Edwards has announced a slew of enhancements to its ERP and supply-chain applications. Many of the upgrades cluster in particular vertical market areas, such as... – CRMDaily
Page 49 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
PeopleSoft EnterpriseOne Customer Order Management Summary Roadmap
2004
8.10 Release 8.11 ReleaseOrder Promising
Configured item support for Order Promising.
TOE: Integrated EnterpriseOne CRM
Single context for EnterpriseOne applications for increased usability, lower complexity, and overall lower total cost of ownership.
Includes CRM integration to Order Promising.
Integration of Enterprise CRM Order Capture
Integration to EnterpriseOne Sales Order Management – Phase II.
TOE: Sales Order Management new User Interface
Streamline order taking process and reduce number of clicks to enter an order.
Demand Scheduling Execution – new module
Support for release accounting, cum management, forecast smoothing and EDI requirements. Primarily for the automotive industry.
TOE: Base Configurator new User Interface
Streamline management of configured items.
Base Configurator
Integration to Customer Self Service. Integration to Order Promising.
Engineer-to-Order integration
Integration with Sales Order Management for shipping of ETO products.
TOE: Sales Order Management
Transaction Processing for data integrity during program runs e.g. sales update.
Shared Services phase I
Item master synchronization, HCM-Manufacturing integration, and Procurement integration between Enterprise and EnterpriseOne.
Q2 Q4
Future functionality plans subject to change
Page 50 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
What is Demand Scheduling / Release Accounting?
Many order management business models in industrial manufacturing look like:
CustomerPlaces Order
OrderPromise
Order Accepted
Manufacture& Deliver
Release accounting supply chain model looks like:Long term
contractnegotiated
Daily schedules/forecasts received
Net schedulescalculated
Manufacture, deliver,
send ASN
Requirements: •Track contract compliance•Calculate CUMs•Auto pack-size rounding calculations•Packaging BOM, Pack records & scanning, ASN & Acknowledgements
Page 51 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Cross-Family Opportunities
• Into Enterprise deals:• Order Promising (custom integration / roadmap)
• Into EnterpriseOne deals:• Promotions Management (custom integration /
roadmap)• Enterprise CRM (shared services model)
• Order Capture (gateway to Enterprise CRM)• Order Capture self service (B2C)• Sales / Support and other CRM
Page 52 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q7: Is Enterprise CRM integrated to EnterpriseOne SCM?
a) No
b) Yes
Competitive Positioning
Lead & Control
Page 54 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Competitive Analysis
Dual Units of Measure(Catchweight)
Product Variants
Complex Pricing
Trade Promotions
Engineer-to-order Quoting
Lot Control
Profitable-to-PromiseTier 1 – feature/functionality alone won’t win. Tier 2 – our feature/functionality advantage will help.
Page 55 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
SAP -- Strengths & Weaknesses
STRENGTHS:
– Mind & market share in most verticals (37% OM share, per AMR)
– Scaled to handle corporate-wide deployment. Geared to centralized order-to-cash processes.
– Strong functionality• returns management• pricing/discounts• Collaborative master data mgmt.
– Tight integration to other mySAP modules.
WEAKNESSES:
– Complex configuration and maintenance
– e.g., dual units of measure
– Order Management in both core R/3 and CRM
– Different functions in each– Common data model?
– Lack of agility after installation
– Risky implementations and upgrades
– Lower customer satisfaction
PEOPLESOFT DIFFERENTIATORS:– Easy, agile configurability of solution
– Common data model between SCM and CRM (EnterpriseOne)
– Profitable-to-Promise capability
– High customer satisfaction
Page 56 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Oracle -- Strengths & Weaknesses
STRENGTHS:
– Tight integration of technology stack: applications, database, and toolset
– Brand awareness and large Database customer population.
– Robust components across Order Management, SCM, and Fulfillment (11i)
– Some vertical-specific capabilities (e.g., order provisioning for Telecom)
WEAKNESSES:
– Weak replenishment function.
– Order Management, WMS, TMS, order promising are complex to install.
– Batch data flows (concurrent job managers)
– Low customer satisfaction
– Lack of inter-operability (APIs)
PEOPLESOFT DIFFERENTIATORS:– Platform independence
– Configurability and inter-operability– High customer satisfaction– Common data model between SCM and CRM (EnterpriseOne)– Color/size/style, and Profitable-to-Promise capability
Page 57 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Intentia -- Strengths & Weaknesses
STRENGTHS:
– Industry-specific capabilities• product variants (Fashion)• campaign management &
catchweight (Food)
– Flexible processing options• Multiple order types
• Advanced pricing
– Offer bundled solutions (software and installation)
WEAKNESSES:
– Weak transportation mgmt function
– Java platform ported from RPG code
– Highly trained consultants required
– Consulting and support staff stretched thin – only about 10-12 product consultants in USA
– Finances and cash flow (8 consecutive losing quarters)
PEOPLESOFT DIFFERENTIATORS:– Pure Internet architecture and PeopleTools toolset– Corporate viability and brand mindshare– Service and support staff– Common data model between SCM and CRM (EnterpriseOne)– Profitable-to-Promise capability
Page 58 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Microsoft (MBS) -- Strengths & Weaknesses
STRENGTHS:
– Brand name recognition and ubiquitous operating platform
– Value proposition for SMB market
– Extensive VAR channel
WEAKNESSES:
– Basic functionality
– Lack of core vertical capabilities
– Multiple product lines needing rationalization on .NET platform
– Inconsistent quality of re-seller partners
– Scalability-challenged
– Poor globalization
PEOPLESOFT DIFFERENTIATORS:– Robust functionality– Pure Internet architecture– Common data model between SCM and CRM (EnterpriseOne)– Scalability for SMB and large enterprises– Direct sales, support, and service
Page 59 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q8: Which of PeopleSoft’s competitors offer Profitable-to-Promise functionality?
a) SAP
b) Oracle
c) None of these competitors
d) Microsoft
Page 60 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Q9: Which of the following are advantages that PeopleSoft has over Microsoft?
a) Pure Internet Architecture™
b) Deeper functionality
c) A direct sales and support model
d) All of the above
Customer Win Stories
Carlton & United Breweries (Australia, EnterpriseOne)
Belvedere (Canada, Enterprise)
Dorel Juvenile Group (US, EnterpriseOne)
Page 62 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
How we won the deal at Carlton & United Breweries (CUB)
Business Driver: Enable a new Business Strategy: To become Australia's Leading Beverage Company. That is, truly multi-beverage, with a focus firmly on growth opportunities across multiple beverage types within Australia.
Existing System Problem: Order Management being handled by System ESS within the Oracle CPG Offering sold in 1997 now unsupported.
Key Buying Criteria:
• Feature/function
• References
• Integration
• Vendor Relationship
WHY We Won:
• References met their requirements
• Comprehensive FMCG solution
• Low risk implementation approach
• Scalable technology for high volumes
Page 63 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Our References
Sold To 25,000 Ship To 30,000 500 orders per hour 50 people taking phone orders 45,000 truckloads per week 500 Carriers
Sold To Customers 25,000 60,000 SKUs Up to 20,000 order lines a day 70% of orders by phone 400 users & 500
Carriers
Edward Keller Limited Hong Kong
Sold To 15,000 Ship To 50,000 23,000 SKUs Up to 250,000 order lines a day 10% of orders online over phone
6,000 Deliveries per Day
22 Plants Live 85 Additional Plants to be rolled
out Moving away from Oracle CPG
New Zealand Dairy Foods
Sold To Customers 8,000 600 SKUs, 90,000 Pricing records Up to 30,000 order lines a day 75% of orders by phone Moving off Oracle CPG
Page 64 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Scalable Technology
0
20
40
60
80
100
%
Mon Tue Wed Thu Fri Sat Sun
The CUB Order Volume Challenge:
Standard ClientsDatabase
Server
Application Server(OW Security & BSFNs)
TerminalServers
Application Server(OW batch and shared services)
ERPFail-OverClustering
DBMSFail-OverClustering
LocalDirector
WebServers
ServerNetwork
ServerNetwork
Secondary BSFN Fail-overSecondary Security Server
HTTPLoad Balance
Group
ICA/RDPLoad Balance
Group
Standard ClientsStandard ClientsDatabase
Server
Application Server(OW Security & BSFNs)
TerminalServers
Application Server(OW batch and shared services)
ERPFail-OverClustering
ERPFail-OverClustering
DBMSFail-OverClustering
DBMSFail-OverClustering
LocalDirector
WebServers
WebServers
ServerNetwork
ServerNetwork
Secondary BSFN Fail-overSecondary Security ServerSecondary BSFN Fail-overSecondary Security Server
HTTPLoad Balance
Group
HTTPLoad Balance
Group
ICA/RDPLoad Balance
Group
ICA/RDPLoad Balance
Group
Example of a Scaleable High Availability Solution
EnterpriseOne Technology can be configured to accommodate CUB’s
demands for performance and availability
Page 65 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
How we won the deal at Carlton & United Breweries (CUB)
EnterpriseOne Modules Purchased:
• Sales Order Mgmt
• Advanced Pricing
• Agreement Management
• Product Variants
• Procurement
• Inventory
• Accounts Receivable
• Transportation Mgmt
• Warehouse Management
Key Points:
• Adopted a problem solving approach
• Established credibility early via references
• No software demo until the end (SCM 8.9 is powerful in CPG)
• Consistently strove to exceed their expectations
• Quest Global to see the passion
• Corporate visit to observe the infrastructure & culture
• Strove to set a customer service benchmark that Oracle could not match
Page 66 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Belvedere International
Benefits
• Implementing vanilla system >lower costs
• Promotions allows more effective campaigns with vendors
• Allows continued growth without adding staff to handle increasing volume
PeopleSoft Products
• Order Management, Billing, Promotions, Deductions-AR
• Inventory, Purchasing
• Production Planning
• Manufacturing
• Financials
Business Issues• Previous system highly customized
• Difficult and time-consuming to plan and track marketing promotions with channels
• Trade spend on in-store promotions can be 80% of the marketing cost
“PeopleSoft is well positioned to support consumer goods manufacturers by offering a closed loop promotions management and deduction solution”
Brahim Hoosein, Manager, IT
Page 67 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
How we won the deal at Dorel
Largest Customers:
Wal-Mart
Toys-R-Us
Target
DJG is a $600M manufacturer and distributor of child safety products based in Columbus, IN
Page 68 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
How we won the deal at Dorel
DJG Profile:
•AS/400
•MAPICS, Baan, Custom
•Manual Entry and/or custom
integration
•6,500 Orders Per Week
•80% of orders via EDI
•12 Customer Service Reps
Order Management Requirements:
•Support Complex Pricing and Commission Formulas
•Provide an easy to use customer web interface
•Provide a level of integration that delivers visibility
throughout the order cycle.
From Dorel’s RFP:
“Today, it takes several phone calls to gather basic data
on product, order status and key customer information”.
Page 69 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
How we won the deal at Dorel
Benefits Realized To Date:
•Re-allocated 2 FTE from Customer Service Team
•Avg. inbound call times reduced by over 100% (9 min to 4 min)
Projected Benefits (after Phase II is completed):
•Fewer inbound calls (customer self-service)
•Reduction in pricing discrepancies resulting in lost dollars
Why We Won:
•EnterpriseOne Pricing•Customer Self Service•Application Integration (especially with CRM 2.0)•Industry commitment / investment
Who We Beat:
•Oracle
What They Bought:
300 Concurrent Users Demand Management
Tech and App Foundations Production Scheduling
Sales Order Management Order Promising
Advanced Pricing Time and Expense Management
Quality Management Customer Self-Service
Requirements Planning Supplier Self-Service
Manufacturing Management CRM 2.0
Logistics Execution Human Resources Management
Procurement Management Employee Self-Service
Conclusion
Page 71 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Key take-aways for Customer Order Management
Opportunity:Highest SCM revenue category in target industriesHighest SCM revenue category in target industries
Over 50% companies plan to replace/enhanceOver 50% companies plan to replace/enhance
Why PeopleSoft? Industry Proven Industry Proven
Configurable and FlexibleConfigurable and FlexibleComprehensiveComprehensive
Value Messages to Address Pain:Integrated single view of all order mgmtIntegrated single view of all order mgmtConsistent customer service excellenceConsistent customer service excellenceReduce costs, increase revenue/profitsReduce costs, increase revenue/profits
Page 72 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
Where can I get more info?
• Field Connection:• Products & Services > SCM > Customer Order
Management
• Knowledge Garden (until end March):• JDE 5 > Products > Supply Chain Management• Also SCM/HCM/FM Suite 8.9
Page 73 PeopleSoft Proprietary and Confidential © Copyright 2002 PeopleSoft, Inc.
End of 2004 with Customer Order Mgmt:Deals won, clients delighted,
Quota reached
TIME TO RELAX
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