Beyond Order Orchestration: Plan and Execute with Allocation and Backlog Management Rajat Bhargav, Director, Product Strategy Danny Smith, Executive Director,

Beyond Order Orchestration: Plan and Execute with Allocation and Backlog Management Rajat Bhargav, Director, Product StrategyDanny Smith, Executive Director, SCM Solutions

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Oracle - Restricted2

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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle Corporation.


Agenda

The Business Problem

The Desired Process

Oracle’s Solution

Q&A

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Oracle - Restricted4Supply Chain Management Review 2013 Order Fulfillment Survey

53% of high-tech

companies collaborate with partners on

demand forecasting

High-tech companies do

not meet their allocations

commitments

50% of the time

Inaccuracy of data and the inability to stick to the committed forecast impede the success of collaborative

forecast compliance programs.


Allocation Process

Statistical

Forecast

Collaborative Allocation

Promising

DemandAllocation

Rules

Constrained Supply

Supply Planning

Customer Orders

Supply

Budget1

3

4

5

6

7 8

9

1. Run Statistical Forecast2. Import forecast to collaborative environment3. Create allocation plan (consensus)4. Import allocation plan as forecast to supply plan5. Run supply plan (constrain demand)6. Import constrained supply plan into collaboration environment7. Create final allocation plan and export for enforcement8. Collect supply plan (stock and production)9. Orders quantities are kept consistent with final allocation plan

Excess order quantity is split and queued

2


Align Planning & Execution with Order Promising

Order Promising

Allocated ATP/CTP/PTP

Multi-channel, Multi-division, Multi-partner

ExecutionPlanning

FeasibleOptimal



Order Promising



ExecutionPlanning

FeasibleOptimal

Only 1 in 3 companies feel good about their order promising

Source: Oracle / Capgemini



Order Promising



ExecutionPlanning

FeasibleOptimal

…. think that their exception handling needs improvement

Delivery delays and resultant expediting are the largest drivers of fulfillment costsSource: Oracle / Capgemini


Promising EnginePromising Engine

Allocation Availability

Supply(Inventory and

Production)

Demand(Commitment)

Promising

Rules

Promise Date

• lead times• shipping constraints• service levels

• sourcing• costs• calendars


BUSINESS RULES

BUSINESS PROCESS

CHANGE MANAGEMENT

PROACTIVE EXCEPTION

MANAGEMENT

ORDER PROMISING

Distributed Order Orchestration Components


Configurable Business Rules

Warehouse

In Store

Commerce

• Enrich orders for fulfillment

• Select optimal fulfillment process

• Assign fulfillment process to lines

• Route requests to appropriate fulfillment system

• Enable business users to configure rules without IT coding


Business Process Mapping

• Define unlimited global fulfillment processes

• Add wait times & prevent premature actions

• Support change order processing, process restart, and multiple processes per order

• Improve insights & decisions with in-context embedded analytics


Order Promising

• Create/Assign Sourcing & Promise Rules• Profitable to Promise, Capable to Promise, Available to

Promise

• Allocation by Demand Class (e.g. channel)

• Manage jeopardy conditions

• Perform what-if analysis for cost & delivery times with embedded analytics


Order Change ManagementProcessing Constraints

Order Change Request

Reset Process to

Re-execute

Cost of Change?

Update Allowed?

Provides cost to change visibility for

smarter updates

Rules-driven decision making based on order attributes, user

role or business process


Proactive Exception ManagementJeopardy Management

Is this a problem

yet?

Which customer is impacted?

What is the order’s priority?

Which step is late?

How late is the step?

Who needs to be

alerted?What is the

cost to rectify?


100% Open Standards

Role-Based User Experience

What You Need to KNOW

What You Need to DO

WHO Can Help

HOW to Get it Done

Unified Information

Services

Intelligent Business Processes

Business Unit

Employee

Product Customer

Date EffectivityLedgerOrganization

TreesTerritory

…

Java, BPEL, XML,HTML, AJAX, Portlet, RSS, Mobile, etc.

100% Open Standards


Current Situation without GOPSub-optimal service, revenue, and margin

Standard lead times

Isolated stock visibility

Availability limited to stock on hand

CUSTOMER

PlantsWare house

Partners Store


The Solution: Fusion GOPOptimized delivery across all sources of supply

Fusion Global Order Promising

Visibility What-if Simulation Embedded Analytics

Available to Promise (ATP)Capable to Promise (CTP)

Profitable to Promise (PTP)

CUSTOMER

PlantsWare house

Partners Store


Architected for flexibility– Supply chain definition

– Promising rules

Capabilities new to Fusion– Profitable to Promise

– Alternate availability options

– What-if simulation

– Embedded analytics

– In-memory performance

Highlights

Fusion Global Order Promising


Click icon to add picture

Define sources and their priorities

Specify internal orgs and suppliers / supplier sites

Assign sourcing by item, category, item-org, customer, or geography/zone

Key Features

Create and Assign Sourcing Rules


Choose among 3 modes For supply chain availability

mode, specify ATP, CTP, or PTP, and multiple attributes

Assign rules by category, org, item, or item-org

Key Features

Create and Assign ATP Rules


Preserve scarce supply for most important orders

Allocate by Demand Class Assign allocation rules by

category, org, item, or item-org

Key Features

Specify and Assign Allocation by Demand Class


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Documents

Beyond Order Orchestration: Plan and Execute with Allocation and Backlog Management Rajat Bhargav, Director, Product Strategy Danny Smith, Executive Director,