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Supply Chain OrchestrationWalter CheungSCM Solution Manager
Agenda
• Solution Overview & Case Studies• Design• Demand• Delivery
• Why Oracle • Oracle Application Strategy
Value Creation Planning
Global Business Intelligence: Visibility / Analytics
Co
llabo
ration
Co
llabo
ration
Co
llabo
ration
Co
llabo
rationDemand ManagementDemand ManagementTransportation ManagementTransportation Management
Product Lifecycle ManagementProduct Lifecycle Management
Trade Promotion ManagementTrade Promotion Management
Design
DemandDelivery
Orchestrating the Supply Chain From ERP To Design, To Demand, To Delivery
Design
Deliver
Demand
Product Lifecycle Management
PLM Value Summary
R & D Cost ReductionR & D Cost Reduction Cycle Time ReductionCycle Time Reduction Quality Control & Quality Control & ComplianceCompliance
• Greater productivity via collaborative development process with built-in quality and compliance management
• Consolidated “single version of the truth" for all product data eliminates unnecessary product proliferation
• Efficient collaboration across outsourced design and manufacturing sites, suppliers, and retailers
• Online design review and virtual prototyping of in-house or outsourced products and assemblies
•Increased product quality and cost avoidance through proactive issue identification and resolution
•Management of complex product structures while adhering to regulatory requirements
Micron Technology Inc.Corporate Background
• Worldwide design, fabrication, component, and module test/assembly facilities • Semiconductor solutions: DRAM, PSRAM, FLASH, CMOS, Advanced Solutions
• Operations in 18 countries
• Over 20,900 employees worldwide
• 13,000 patents
• Sales of $4.9 billion in FY’05
• Headquarters in Boise, Idaho
The Process in the past
Production & Com’zation Development Product
ChangesEnd of
Life Product Concept
Product
Proposal
Sourcebooks
(Excel)
IPDF, Sourcebooks, MS Project, Excel/Word Templates
PK P0 P3P2P1 P4x
file
CBF/CBR, MIS (Eug), Excel (Gibco)
Processes
8 wks
Program Management Parts Management
Multiple Releases (e.g. Stealth, Abs,
Protein Kinases)Portfolio Mgmt
Program Mgmt
Part Mgmt
NPAII
Web Catalogue
Business Issues•Project management & Control•Delay in new product launch to meet financial targets•Quality control•Labor intensive – Disjointed – Error Prone
Catalog Copy, Flow(NA), Catalog Mgr(EU)
Objectives of the Agile Implementation
• Improve portfolio management• Improve Time-to-Market product introduction• Institutionalize Phase/Gate process• Provide scheduling capabilities tied to deliverables• Enable Executive visibility and sign-off• Agile PPM/PC is replacing Micron’s internal system for tracking
projects and milestones
Product Development Process
Definition ProductionDevelopment
DP1 DP2 DP3 DP4DP0
Marketing
Apps Engineer
Design Engineer
Manufacturing
Sales
Decision Points
Implementation Approach
• 12 lead project managers fully engaged in testing, configuration, and system design
• All active projects loaded in system• Multiple OOB reports used for milestone/decision point
visibility• Agile Analytics used for portfolio management around
Decision Points throughout the Lifecycle• Status of Documentation/Specification Deliverables on Gates• Date trends
• Use of Process Extensions• Enable project management• Improve project collaboration
Integration between PPM and PC
• Product Collaboration used for• Storing single version of product record
• Securing IP – right people have access to the data at the appropriate time in the product lifecycle
• Formal product record change management process
• Deliverables in PC tied to PPM to provide• View of product pipeline across Business Units and product types
• Single source for all product documentation from different functional units
• Direct relationship of deliverables and due dates across the portfolio
• Enhanced collaboration across functional units
• Formal process for schedule changes in product lifecycle
• Formal process for “Go”/“No Go” decision meetings
Current Status
• In production for all Business Units• Lead program managers are actively managing all
project information in the system• Broader roll-out planned following delivery of usability
improvements on Agile roadmap• Actively deploying to address semiconductor process
development activities
Benefit SummarySynergy / Collaboration / Ease-of-use
1. Manual workflows; physical business transactions
2. “Soft” gates without approval control
3. Limited document sharing capability
1. Electronic workflows for document/gate approvals
2. Automatic enforcement of process & workflows
3. Single, centralized, versioned document control
1. Processes unrelated to ISO certification at some sites
2. Difficulty integrating acquired businesses
3. Lack of program information ownership
4. Inability to identify current template versions
1. Supports ISO certification at ALL sites
2. Efficient integration of acquired businesses to system
3. Clear, assigned ownership of all program information
4. Automatic document versioning; archiving
Process Compliance / Quality
System Centralization
Reporting / Metrics / Visibility
1. Fragmented/inadequate reporting and query capability
2. Manual, delayed tracking and reporting of NPI and PV
3. Limited visibility for multiple release programs
1. Customizable query and reporting capability
2. Electronic, real-time tracking of program status
3. Specific multiple release program template in PPM
1. Enterprise-wide electronic system for high-level
portfolio management and resource planning
2. Global repository for program records
3. Standardized IPDF file structure & naming conventions
1. Multiple Excel-based sourcebooks, program lists
2. Local, uncontrolled document repositories
3. Lack of standardized file structures & naming
conventions
Securely manage intellectual property and provide convenient access and distribution to company-wide information.
Product Data Repository
BOM/Recipe Redline capabilities clearly communicate changes across the product network and speed the approval process.
BOM/Recipe Redline capabilities clearly communicate changes across the product network and speed the approval process.
Collaborate with Partners on Product Records
Resolve Quality Issues
Visually inspect product change progress and make intelligent approval decisions.
Visually inspect product change progress and make intelligent approval decisions.
ECO Approval
Analyze Key PLM Metrics
1,300+ Enterprise PLM Customers
Demand Management
Demantra Value Summary
Responsive to Responsive to
Demand ChangeDemand Change
Forecast AccuracyForecast Accuracy
ImprovementImprovement
Evolve to Real Time Evolve to Real Time Sales and Operations Sales and Operations
PlanningPlanning
• Centrally capture and consolidate demand data for different role’s analytical needs
• Automate collaboration through workflow, exception alert
• Superior Bayesian-Markov Analytics leverage built-in intelligence to automatically select which level’s data to use for forecasting
• Out-of-the-box integration for Oracle EBS, JDE E1
• Configurable user interface replaces for individual spreadsheets while ensuring enterprise database access and security
Streamlines Demand Chain Management Process
No. 3 in total PC, No. 2 for Notebooks, fastest growth among the top 5 players
Project
Goal
Standardize the forecasting tool & processes throughout the company
Improve forecast accuracy resulting in better inventory mgmt. More powerful and faster analytics
Oracle EBS Oracle Demantra Demand Management Oracle Demantra Sales and Operations Planning Oracle Demantra Advanced Forecasting and Demand Modeling
Business
Challenges:
Solution:
• Global demand management
• All real time – daily bookings and shipments
• Where am I lagging or ahead of forecast?
• Country/Region/HQ collaborative worksheet and populate real time
• Saves hours / days of pulling data from multiple sources
• Key expectation to drive forecast accuracy
• Better Inventory Turns and increased Customer service / order fulfillment
Demand Driven TransformationCollaborative, Demand Driven, Responsive Supply Planning
Disconnected ProcessDisconnected Process
CustomerCustomer SalesSales
FC
ST
Time
FC
ST
Time
MarketingMarketing
FC
ST
Time
Time
FC
ST
FactoryFactoryTime
FC
ST
PurchasingPurchasing
• Bull Whip EffectBull Whip Effect
• Slow ResponseSlow Response
Collaborative Planning ProcessCollaborative Planning Process
Consensus Demand/Supply PlanConsensus Demand/Supply Plan
CustomerCustomerSalesSales
MarketingMarketing PurchasingPurchasing
Supply Supply PlanPlan
Shipment Shipment HistoryHistory
NPI PlanNPI Plan
FC
ST
Today Time
Sales History Trend
Seasonality
Financial Financial TargetsTargets
Low forecast accuracy
Departmental orientation to demand forecasting
Misalignment between metrics and objectives
Not tied to Sales and Operations Planning process
Supply Plan
Global Forecasting and Consumption
• Postpone fulfillment decision of supply planning
• Check availability before specifying shipping location
• Allocate supply to customers
• Generic forecasts• Forecast without reference to
shipping facilities• Consume forecast based on
• Product• Demand type
Country Customer Zone Customer Customer SiteDemand Class Global (Item)
Global Forecast
Organization 1 Organization 2 Organization 3
Ship from locations
Ship to
Forecast distribution
Consume forecasts with
respect to ship to
Region Region Region
Increase flexibility for fulfillment decisions
Period Month1 Month2 Month3
Month June July August
Range Target SF <15% SF < 30% SF > 30%
Period Month1 Month2 Month3
Month July August Sept
Range Target SF < 15% SF < 15% SF > 30%
Period Month1 Month2 Month3
Month August Sept Oct
Range Target SF <10% SF < 30% SF > 30%
SF=sales forecast
Current time = May
Improve Forecast Control Process
Reduce Planning Cycle timeby Collaborative Workbench
Reduce Planning Cycle timeby Collaborative Worksheet
Response to Demand Change
29
Review Supply Information
30
Sales and Operations Planning DashboardEnable executive level S&OP analysis for demand, supply, inventory, and profit
Compare alternate
scenarios
Analyze key
Planning metrics
Analyze profit
and loss
Analyze constrained forecast
Sales and Operations Planning DashboardComplements Demantra Real-Time Sales and Operations Planning
• Provide S&OP information to key senior decision makers• Executives require a self-service tool
• Executives require 360 degree view of supply, demand, inventory, and cost details
• Details from demand management• Details from supply planning• Details from inventory planning• Details from strategic planning
• Power users can leverage direct link to Demantra RTS&OP to perform detailed activities
• Shape demand• Simulate constrained forecast changes• Promotion lift analysis
Collect Sales and
Marketing Input
Base Demand Plan
Demand Shaping
What-if
Demand Consensus
Base Supply Plan
Supply What-if
Integrated Scenario
AnalysisApprove and Publish
“The Plan”
Enact and Measure
“The Plan”
Dem
antr
a D
MA
SC
P/S
NO
AP
CC
Dem RTS&OP
Trade Promotion Management
Demantra Value Summary
VisibilityVisibility Promotion Planning Promotion Planning and Measurementand Measurement
Deduction and Deduction and Settlement AutomationSettlement Automation
• Historical sales decomposition into baseline and lift based on different promotions and causal factors
• Accurately shape demand by simulating different promotion scenario based on historical data
• Post event cost benefit review for promotions by account
• All accounts aggregated according to sales hierarchy for continuous monitoring and promotion ROI measurement
• Out-of-the-box integration for Oracle EBS, JDE E1
• Reduce administrative costs and ‘days outstanding’ of deductions
• Increased forecast accuracy at SKU level by more than 10 points• $5 million reduction in supply chain costs• Over $1 million reduction in trade spending• Enables trade promotion planning to be integrated with RT S&OP• Improved HQ and sales planning productivity
Welch’s Food Inc.Welch’s is the food processing and marketing arm of the National Grape Cooperative Association and is the world’s leading marketer of Concord and Niagara grape-based products. As with most consumer packaged goods manufacturers, Welch’s trade marketing budget is the second largest cost line item after cost of goods sold, and it is essential that Welch’s uses trade funds as efficiently and effectively as possible.
“ With Demantra’s unique functionality, we can better
integrate the planning, execution, management, and analysis of all of our
trade promotions and marketing, for a holistic
view of the effectiveness of our business plans. With this better understanding
of demand across the board, we are better
equipped to meet our customers’ needs.
George Jackman
Director of Demand Management & Planning
Welch’s
Business Results:
Promotion planning synchronized with demand planning Consistent planning of $100M trade budget and tactics
Oracle Demantra Demand Management Oracle Demantra Sales and Operations Planning Oracle Demantra Advanced Forecasting and Demand Modeling Oracle Demantra Trade Promotion Management Oracle Demantra Predictive Trade Optimization
Business
Challenges:
Solution:
Integrated Sales Management Process
Annual Planning Promotion effectiveness Monitor Consumer Promotion Trend Analysis
Annual Planning Promotion effectiveness Monitor Consumer Promotion Trend Analysis
Account Planning Trade Funds Management Customer P&L Promotion Planning What-if Scenario Planning Deduction Settlement Mgt
Account Planning Trade Funds Management Customer P&L Promotion Planning What-if Scenario Planning Deduction Settlement Mgt
Volume Planning Demand Planning
Responsive Replenishment CPFR/VMI
Volume Planning Demand Planning
Responsive Replenishment CPFR/VMI
Access and Analyze POS, EDI 3rd Party Data
Access and Analyze POS, EDI 3rd Party Data
Business Planning Promotion Planning Consumer Level Forecasting
Business Planning Promotion Planning Consumer Level Forecasting
Strategic Brand and Category Planning
Account Planning
Trading Partner Collaboration
Sales, Marketing & Operations Planning
Demand Visibility
Integrated
Sales
Management
Annual Planning
(Volume, Revenue, Trade Expense)
Account Management
(Actual YTD & Projected)
Account Planning
(Volume, Revenue, Trade Expense)
Demand
Planning
ISM System
(Demantra) ERP System
Promo Info
Deduction
Matching
Process
Sales Forecast
Adjusted Forecast
Master Data & Transactional Data
Order
Management
Annual Budgeting
Revenue PlanRevenue Plan
Volume PlanExpense PlanVolume PlanExpense Plan
ISM Conceptual Overview
Trade
Tactics &
Guidelines
Promotional Planning Flow
Real-Time Sales & Operations PlanningExecutive Input & Approval
Executive Input & Approval
Customer Account Planning Replenishment PlanningReplenishment PlanningAccount Manager & Buyer
InputAccount Manager & Buyer
Input
Trade Promotion Management Demand PlanningDemand PlanningTrade Marketing &
Demand Planning InputTrade Marketing &
Demand Planning Input
Promotion Modeling & Optimization Demand ManagementDemand ManagementMarketing and
Management InputMarketing and
Management Input
CollaborationConsensus from Internal & External Inputs
Consensus from Internal & External Inputs
Trade Expense Information flows across the organization with full visibility and integration.Trade Expense Information flows across the organization with full visibility and integration.
Historical data
Bayesian Estimator
Forecast
Multiple causal factors
Combined model
Bayesian OptimizerCausal
Analysis
Outlier Detection
Promotion Events
Seasonality
Cyclical Patterns
Trend
Demand = constant + A1*CF1 + A2*CF2 + A3*CF3 + ...
Improve Forecast AccuracyDesigned for planners, not programmers (“PhD in a box”)
Demand history and causal factors
maintained at lowest level
• Most forecasting and planning done on one worksheet
• Configurable by account manager
Single Screen Sales and Account Planning
Shape Demand by promotional campaign
41
Trade Promotion Management
42
• Complete promotion effectiveness history detailed by:• Territory• Retailer and customer• Category
• Analytics run against Syndicated and/or your historical data• Lift factors and other causal data automatically generated
• Key metrics• Average lift, revenue, profitability
Comprehensive ‘Post Event’ Analytics
sadsasdasdfadfasdfasd 45
Demantra Momentum Continues
Industrial Manufacturing
Medical Devices Retail / Wholesale
Media and Entertainment
Consumer Durables
Consumer Goods
High Technology
Transportation Management
OTM Value Summary
Reduce Reduce Transportation Transportation
SpendingSpending
Customer Service Customer Service ImprovementImprovement
Inventory Management Inventory Management ImprovementImprovement
• Freight consolidation and load optimization
• least cost route and carrier selection
• Improve freight contract negotiation ability by visibility to historical demand and delivery performance result
• Better planning capability through visibility to different shipment options, lead time, cost
• Customer portal for in-transit inventory inquiry
• Proactive alert for late shipment
• Reduce safety stock inventory level in supply chain through improved on-time delivery performance
GE Healthcare
Molecular Diagnostics
Information Technology
Pharmaceutical Solutions
Imaging and Intervention
• Design, manufacture, sell, and service medical equipment
• Global organization with distributed supply chain
Problem of its Supply Chain…
Business Problem Solutions
•Frequent use of premium transportation methods
•Constraint-based ship method selection
•Shipments lost in vast vertical supply chain
•Platform to integrate air, ocean and truck status
•Lack of visibility to contract rate leakage
•No capability to tie expected rate and actual invoice
•Shifting Job duty from Account to Logistics Department
•Flexible work flow engine to monitor supply chain operation
Project Scope
•Greatest source of premium transportation cost
•Pilot in China, France, US
•600 to 1,000 orders per year/site
•Primarily Domestic Shipments
•Pilot with top 10 suppliers
•Integration with Supplier Extranet
• Touching customer and sites directly
• Specialized Carriers (van’s & installers)
Phase 1
Internal to Internal
Inbound from Suppliers
Outbound to Customers
Mfg. Mfg.
Mfg. Distribution
Distribution
Customers
External Suppliers
Distribution
External Suppliers Mfg.
Phase 2
Phase 3
Phase 1 Benefit Summary
Expedited air reduction
Benefit
Use preferred carriers with Negotiated rates
Increase consolidation
opportunities for ocean shipments
Goal
95% reduction in expedited air
shipments
Initial Results
99%
TBD
Selection of least expensive ship method to meet delivery date
95% of recommended ship method accepted
15 – 20% reduction in per kilogram cost
Optimize ship method of
small & medium packages
10% of opportunities, but
now have the visibility
Eliminate
100% Compliance
Maximize Container
99% Acceptance
100% Preferred
Shipments Planning View
• User configurable summary view of shipments• User configurable summary view of shipments • Weight and volume utilization• Weight and volume utilization
Transportation Planning
Performance Dashboard
Copyright © 2008, Oracle and/or its affiliates. All rights reserved. 54
Inventory Management Analytics
Logistics
ServiceProviders
Manufacturing
Distribution
Retail
Agenda
• Oracle Positioning• Solution Overview
• Design• Demand• Delivery
• Why Oracle• Oracle Application Strategy
More Value
Less Complexity
More Flexibility Less Cost
More Choice Less Risk
Comprehensive Industry Portfolio
Standards-Based Architecture
Designed toWork Together
CompleteComplete OpenOpen IntegratedIntegrated
Oracle’s Application Strategy
Applications
EnterpriseEnterprise
ManufacturingManufacturingIndustriesIndustries
RetailRetail
CommsComms
BankingBanking
InsuranceInsurance
UtilitiesUtilities
OthersOthers
Comprehensive Product PortfolioAcquisition of Best-in-Class Companies
EnterpriseEnterprise
PerformancePerformanceManagementManagement
IdentityIdentityManagementManagement
ContentContentManagementManagement
MiddlewareMiddlewareManagementManagement
DatabaseDatabase
Systems Systems ManagementManagement
Technology
~ $35 Billion in 45 Acquisitions
Open Standards Support ChoiceGrow and Expand Your Business
Analogy: How do standards for container sizes enable shipping?
Leverage Existing Investments• Support heterogeneous environments
Offer New Business Services• Adopt innovative new services quickly
• Source at best value
Do It For Less• Use lower cost labor, resources
Unrivaled Leadership in Open Standards
BEPL
RBAC
