Order Management_Order Fulfillment - Demo Script 20091229

8/10/2019 Order Management_Order Fulfillment - Demo Script 20091229

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OBIA7961SV2 :

Oracle BI Applications

Order Management and Order Fulfillment

Functionality and Script

Last update: December 29, 2009


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Oracle Business Intelligence Applications

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General information about the demo:

This demo illustrates how Oracle Supply Chain and Order Management Analytics can

provide important insight into the performance of key areas such as Order

Management, Inventory Management and Order Fulfillment. The insight gained fromthese analyses can be transformed into strategic decisions and actions that can lead to

improved efficiency in customer satisfaction, financial performance and profitable

results.

This demo is built around an enterprise called Vision, which is a large computer

hardware manufacturing company that rose to market leadership based on its leading

edge technology. In this demo we assume that Vision has four sales organizations:

Vision Operations, Vision Industries, Vision Financial Services and US Federal

Government.

We pick up the demo scenarios where the CEO has tasked Eileen Smith, VP of sales

operations, to perform the following:

Improve order revenue

Improve on-time delivery and order fulfillment performance resulting in customer

satisfaction

This demo happens at close of business on June 30, 2009, which is the end of the second

quarter of 2009.


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1. Script for Order Management Demo

What to say and do Screen Shot

1 In this demo, well see Oracles Order Management Dashboard

of the Supply Chain and Order Management Analytics

application. This application delivers deep customer insight

into order and inventory data so you can make betterdecisions in each stage of the order lifecycle. Oracle Supply

Chain and Order Management Analytics enables you to assess

inventory levels, determine likely product fulfillment needs

before the order has been booked, quickly identify potential

order backlog issues, and stay on top of critical accounts

receivable (A/R) and daily sales outstanding (DSO) issues. By

leveraging actionable and fact-based insights, you can

transform your current Supply Chain and Order Management

processes to improve financial performance and customer

satisfaction.

The Oracle BI Applications (OBI Apps) are complete, pre-builtsolutions with ETL, data schema, meta-data, reports, and

dashboards.

The pre-built dashboards and reports are delivered via

Business Intelligence Enterprise Editions(OBI EE) 100% thin

client dashboard interface.

Notice that with the OBI Apps, your organizational role

determines your level of data access through security

integrated with the transactional system.

Next Step: Log in as: esmith/esmith


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2 Well startthis demonstration with the Order Management

dashboard, which provides Sales Executives, Order

Management managers, Sales Operations and Sales

Representatives with rich insight into the revenue

performance of the sales organization through actionable

insight on Orders, Revenue, Trends, Margins, Discounts,Cancellations, Returns and Customers.

3 Eileen gets to the Overview page of the Order Management

dashboard. This page contains key metrics and reports that

give her a complete summary of the Order Management

process, including order revenue, invoice revenue, GL

revenue, average order size, percent discounts and return

amount, etc.

Upon close scrutiny of Cumulative Order Revenue versus Last

Quarter report, she finds that this quarters revenue is

significantly behind last quarters revenue, as can be seen

from the narrowing gap between cumulative order revenue

and quarter ago cumulative order revenue for Q1 and Q2 of

2009. She immediately realizes that there could possibly be a

downward trend in order revenue. She is not sure though if

there is a downward trend and if there is one, why. So she

decides to go through some of the Order Management

dashboard content to help her uncover the root of the

problem and take corrective action to resolve the issue.

4 Notice how Eileen can effortlessly change the filters located onthe top of the page selecting a desired sales organization,

product or time period. In this case Eileen can limit her review

to Vision Operations by pulling down the Sales Org. Name

filter, selecting US Federal Government, Vision Financial

Services and Vision Industries and moving them to the right

(Click OK after selecting Vision Operations as shown and

then, to refresh the data in the page click the Go button

located by the parameters.)


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7 In the Effectiveness page she examines the performance of

the sales regions across sales organizations in cross-selling to

maintain a high average order size. She studies the reports in

this page and makes note that the North America, Asia Pacific.

EMEA and North AmericaFederal sales regions have not

been as effective and the other regions in cross-selling. Theymay need further training on products.

In this page she can also compare the performance of the

different sales organizations. She notices how Vision

Operations has been discounting orders more heavily than the

other organizations for the 20082009 period selected. The

average number of products per order is also lower than that

of the top sales organization, which is Vision Industries. Vision

Operations needs to make a better job at cross selling

products and at selling them based on their features and not

just discounting prices.

She then decides to take a peek at the products with highest

and lowest order margin so the training can be aligned

towards cross-selling of high margin products. She clicks on

the Margin Analysis tab.

8 Eileen takes a glimpse on Top Ten Products By Order Margin

report and notes down that Envoy Delight Laptop (22.7%) and

Standard Desktop Packaging (23.3%) products, which yield the

highest order margin.

She makes a note with the list of top margin products and

decides to talk to the Sales Training department so that the

sales force can be trained how to sell and/or cross-sell thoseproducts better.

In the Top Ten Products By Net Order Margin she also takes

note of products Standard Laptop Overlay (3.2%) and Deluxe

Desktop Manual (8.7%), which have low net order margins.

[Optional: As part of the demo you can also click the link

Bottom Ten Products by Order Margin to go to this report.

Click Return when done to come back to the page+.


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9 Still in the Margin Analysis page, she takes a look at the

products that contribute towards lost order margins due to

returns. She decides to talk to the product managers about

the Envoy Deluxe Custom Laptop (22.6% lost margin) and

Sentinel Standard Desktop TPD (22.9% lost margin), which are

experiencing the largest percent lost margin due to a lot ofreturns.

She realizes that she needs to talk to the product managers of

the products experiencing a lot of returns about how to

minimize returns and reduce lost margin.

10 Eileen can check the performance of any single product by just

selecting it in the corresponding filter menu. (For example,

choose product Envoy Deluxe Laptop -or any other productthat you would like to demo- by selecting it in the Product

Name filter and moving it to the left panel of the shuttle. The

click OK and once you are back in the page click the Go

button by the filters)

11 As a result of selecting a product, Eileen can see margin data

just for that product and for the time period indicated in the

filters. Rolling down the cursor over the bars in the graphs, the

exact values of the graphs pop up in the screen.


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12 Summary (Order Management)

What you have seen today is a demonstration of how Oracle

Supply Chain and Order Management Analytics can enable

organizations to make better and timely decisions by

delivering insight driven analytics to the enterprise.

We witnessed how Eileen Smith, VP of Sales Operations,

detected the flagging Order Revenue and went on to analyze

the downward trends in average order size and number of

products in an order. She then examined the sales force

effectiveness in average order size and cross-selling. She took

note of the Sales Orgs and Regions that need to be trained to

better cross-sell and increase the average order size. She

scanned through the highest and lowest margin producing

products to determine which products to train sales force on.

This clearly depicts how Oracle Supply Chain and Order

Management Analytics help you detect a problem, uncover

the reasons and take corrective actions to address the crisis.

Oracle BI Applications provide pre-built solutions that

dramatically decrease the cost and risk of analytics

implementation. Oracle BI Applications present a robust,

flexible environment that allows end users, not IT developers,

to quickly create their own reports, dashboards, alerts and

indicators through an easy to use web interface. This

technology, combined with our robust back-end infrastructure

and pre-configured analytic applications, allows organizations

of all sizes


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2.

Order Fulfillment Demo


1 In this demo, well see Oracles Order Fulfillment Dashboard ofthe Supply Chain and Order Management Analytics

application. This application delivers deep customer insight

into order fulfillment and inventory data so you can make

better decisions in each stage of the order lifecycle. Oracle

Supply Chain and Order Management Analytics enables you to

assess inventory levels, determine likely product fulfillment

needs before the order has been booked, quickly identify

potential order backlog issues, and stay on top of critical

accounts receivable (A/R) and daily sales outstanding (DSO)

issues. By leveraging actionable and fact-based insights, you

can transform your current Supply Chain and Order

Management processes to improve financial performance andcustomer satisfaction.

The Oracle BI Applications (OBI Apps) are complete, pre-built

solutions with ETL, data model, meta-data, reports, and

dashboards.

The pre-built dashboards and reports are delivered via

Business Intelligence Enterprise Editions (OBI EE) 100% thin

client dashboard interface.

Notice that with the OBI Apps, your organizational role

determines your level of data access through security

integrated with the transactional system.

Next Step: Log in as: : esmith/esmith

2 Wellstart this demonstration with the Order Fulfillment

dashboard. This dashboard provides Supply Chain Executives,

Order Fulfillment Managers and Sales Operations with holistic

insight into Order Fulfillment and inventory performance of

the organization through actionable analytics on Orders,

Backlogs, Shipping Performance, inventory balances, Invoicing,

Sales Cycle and Exceptions.


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3 As she logs in, Eileen Smith sees the Overviewpage of the

Order Fulfillmentdashboard. She sees data for all sales

organizations in Vision.

When navigating the Order Management dashboard This page

contains the key metrics and reports that give her a completesummary of what is happening with Order Fulfillment process,

including Financial Backlog, Operational Backlog, Delinquent

Backlog, and Invoicing, etc.

Eileens primary concern is her firms ability to fulfill orders

and to achieve a timely recognition of sales revenue. She

starts carefully analyzing various measures that reveal the

customer order fulfillment and revenue recognition

performance for this organization.

Upon close scrutiny of On Time Shipping Trendreport, she

finds that this quarters on time shipping performance is

barely over 90%, below the usual 100%. This is further

validated by the existence of late shipments in Q1 and Q2 of

2009, as depicted in Late Shipping Trendreport.

4 That explains the increase in Order to Ship Days lag from 15

days to over 50 days in the last 4 quarters, as witnessed in the

Order to Invoice Cycle Times Trend report. As revealed in the

Backlog Trends report, the Operational backlog has gone up to

$3 millions and $7 millions in Q1 and Q2 of 2009 from less

than a million USD earlier. Similarly, the Financial backlog has

gone up to $1.5 millions in Q1 of 2009 from about half a

million USD previously. She immediately realizes that there isdemand for products but they are unable to ship the product

on time.

She clicks on the guided navigation link Order and Invoice

Amount (Exceptions) below the Late Shipping Trend report to

look at products contributing to backlogs.


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5 In the Order and Invoice Revenue by Product report, Eileen

can see that Envoy Deluxe Laptop and Envoy Standard Laptop

products contribute the largest gaps of $3.2 millions and $2.4

millions respectively, between order and invoice revenue. She

notices that Envoy Ruggedized Laptop and Desktop Dual Core

products also contribute significantly over a million USD to thedifference between order and invoice revenue. (Click Return

to go back to the page)

She then decides to look at the products that have the Highest

Fulfillment Lag. She navigates back to Overview page of Order

Fulfillment dashboard and clicks on the Fulfillment tab.

6 She scans the page to see the vital measures of order

fulfillment performance. She notices that the Ship On time

Quantity has been going down and Ship Late Quantity has

been going up in Q1 and Q2 of 2009, as depicted in Shipping

Performance Trend.

Then she takes a peek at the Top 10 Products with Highest

Fulfillment Lag report and immediately notices that among

these 10 are also the Envoy Standard Laptop and Envoy

Ruggedized Laptop that she previously noted down in the

Order and Invoice Amount (Exceptions). These are the same

set of products that contribute the most towards the gap in

order and invoice revenue. (The Envoy Deluxe Laptop,

although not in the top 10, also has a high fulfillment lag of

over 50 days as you can see by selecting this product in the

Product Name filter). If you filter on Envoy Deluxe Laptop,

use the browser back button to return to viewing all top 10

products and continue with the demo.

She takes note of these 10 products with longest Order To

Ship Days Lag for her subsequent discussion with VP of supplychain to highlight order fulfillment issues with these products.


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7 In this same page she also observes that the top ten revenue-

contributing customers like Infinity Brands, New York

Electronics, etc with total order value over $13 millions have

significant Order To Ship Days Lag of over 30 days each.

In conjunction with order fulfillment issues on this page, she isnow interested in knowing the total operational backlog.

She clicks on the Backlog page and navigates to the Backlog

page (Click on the Backlog tab).

8 *Optional step before going to the Backlog page: Notice how

easy it is to drill down into details. Click any customer name in

the Top Revenue Contributing Customers with Fulfillment

Time report and youll arrive to a page showing the activity

for that customer, including number of orders per quarter,

total order per quarter and a list of all order and invoices forthe selected period of time. When you are done showing this

report you can click the browser back button to come back to

the Fulfillment page to continue with the demo+

9 In the Backlog page Eileen takes a look at the vital measures

of sales orders backlog like Current Backlog and Inventory,

Current Backlog by Location, Backlog Trend and Current

Blocked, Delinquent and Unscheduled Backlog report.

She takes a peek at the Current Backlog and Inventory report

and immediately notices the operational backlog as well as

physical inventory available to meet the demand.

Upon close scrutiny she finds that Envoy Deluxe Laptop and

Envoy Standard Laptop products that she had noted earlier

(Which contributed to significant gaps between order and

invoice revenue because they had significant fulfillment lag),

have a considerable gap between demand and supply. For

example, Envoy Deluxe Laptop has only 254 units available

against a demand of 2,232 units. Similarly, Envoy Standard

Laptop has only 654 units available against a demand of 2,418

units. In Contrast, Envoy Ruggedized Custom Laptop has 2,000

units available against a demand of only 271 units. Clearly,

there is a mismatch in the production and supply strategy with

regard to demand. Why are we producing so much of theEnvoy Ruggedized Custom Laptop that the market is not

currently demanding? She ponders gracefully.


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10 She is interested in Current Backlog by Location report.

Looking at the largest backlog at Galway location (Click the bar

for Galway in the Current Backlog by Location report)she

decides to look at the table view and looks at the total

operational backlog. Note that the same mismatch between

inventory and backlog happens at this location.

(Click Return to go back to the page)

She looks pensive realizing her firms operational inability to

fulfill customer demand worth over 7 million dollars.

(In Backlog Trends report. hover over Operational Backlog

Amount for 2009 Q2)

She decides to hammer out this issue of the alignment of

production schedules against customer demand with the VP of

supply chain.


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11 Summary:

What you have seen today is a demonstration of how Oracle

Order Fulfillment Analytics can enable organizations to make

better and timely decisions by delivering insight driven

analytics to the enterprise.

We witnessed how Eileen Smith, VP of Sales Operations,

detected the growing backlogs and went on to analyze the

products that contributed the most towards gap in order and

invoice revenue. She then examined the products that have a

significant fulfillment lag and, not surprisingly, finds many of

the same products that she had noted earlier. She scans

through the backlog and available inventory for products and

realizes that most of the products she had noted down dont

have sufficient inventory to address the backlogs they have.

She is able to then decode on working with the VP of Supply

Chain on a coherent Inventory Management strategy that

aligns with demand for products. This clearly depicts how

Oracle Supply Chain and Order Management Analytics help

you detect a problem, uncover the reasons and take corrective

actions to address the crisis.

Oracle BI Applications provide pre-built solutions that

dramatically decrease the cost and risk of analytics

implementation. Oracle BI Applications present a robust,

flexible environment that allows end users, not IT developers,

to quickly create their own reports, dashboards, alerts and

indicators through an easy to use web interface. This

technology, combined with our robust back-end infrastructure

and pre-configured analytic applications, allows organizationsof all sizes to rapidly implement analytics solutions to meet

their current needs, while at the same time providing a

scalable infrastructure that can adapt to their needs in the

future.

Documents

Order Management_Order Fulfillment - Demo Script 20091229