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Information Driven Value Chain
Steve GwizdalaValue Chain Planning – Solutions Specialist
© 2009 Oracle Corporation – Proprietary and Confidential
What is Value Chain Planning?
Enterprise-wide Business Planning that links:
• Strategic and Tactical Decision Making
• Design/Development with the Supply Chain
• Financial Planning with Supply Chain Planning
© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Value Chain Planning SolutionComplete, best-in-class e-business planning process platform
Demand SignalManagement
DemandManagement
Collaboration andVendor Managed
Inventory
PlantScheduling and
Monitoring
OrderPromising
Service Parts
Planning
Trade PromotionManagement
Supply and DistributionPlanning
RiskManagement
Sales and OperationsPlanning
PerformanceManagement
• Single source of truth• Integrated with ERP • SOA enabled
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© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Advanced Planning Solution
BUSINESS PLANNING & PROCESS MGMT• Business planning scenario mgmt & automation• Business planning analysis dashboards
OPERATIONAL EXCELLENCE• Integrated supply chain execution• 24x7 order promising• Supplier collaboration and VMI• Integrated multi-method
manufacturing execution• Manage internal and external repair
orders, new buy parts, and part redistribution transfers
• Plant level detailed scheduling
DISTRIBUTION AND SUPPLY PLANNING• Rebalance inventory position at lowest cost• Multi-facility constrained replenishment planning• Distribution planning
AFTER MARKET SERVICE PLANNING• Multi-echelon service supply chain• Simultaneous forecasting, replenishment, distrib.
SENSE AND SHAPE DEMAND• Improve forecast accuracy thru better statistics• Continuous consensus planning process• New product introductions
DEMAND SIGNAL MGMT• Enables Retailer and Mfg-er collab.• Demand and market intelligence
SALES AND OPERATIONS PLANNING• Balance demand, supply, budgets• Evaluate both strategic and tactical decisions
RISK MANAGEMENT• Design profitable supply chain• Mitigate risk for (un)planned events
ADVANCED PLANNING
(1) Requires Oracle Siebel AIA Connector for Consumer Goods
Enables best-in-class processes that solve key planning problems
PROMOTION MANAGEMENT• Run most profitable promotions• Promotion lift analysis• Execute promotions via Siebel(1)
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© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Advanced Planning Solution
BUSINESS PLANNING & PROCESS MGMT• Oracle Advanced Planning Command Center
OPERATIONAL EXCELLENCE• Oracle Global Order Promising• Oracle Collaborative Planning• Oracle Production Scheduling• Manufacturing Operations Center
DISTRIBUTION AND SUPPLY PLANNING• Oracle Advanced Supply Chain Planning
AFTER MARKET SERVICE PLANNING• Oracle Service Parts Planning
PROMOTION MANAGEMENT• Demantra Predictive Trade Planning• Demantra Trade Promotion Opt.• Demantra Deduction & Settlement ManagementSENSE AND SHAPE DEMAND
• Demantra Demand Management• Demantra Advanced Forecasting and Demand Modeling
DEMAND SIGNAL MGMT• Oracle Demand Signal Repository
SALES AND OPERATIONS PLANNING• Demantra Real-Time Sales & Operations Planning• Oracle Strategic Network Optimization
RISK MANAGEMENT• Oracle Strategic Network Opt.• Oracle Inventory Optimization
ADVANCED PLANNING
Enables best-in-class processes through best-in-class products
© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Strategic Network OptimizationConsider all costs and constraints that impact the decisions
Costs ($): Variable and Fixed
• Transportation (inbound, outbound)• Storage and inventory carrying costs• Fixed costs (startup, shutdown, operating)• Material supply• Manufacturing and labor• Price (for profit optimization)
Capacity Constraints (Hard and Soft)
• Supply constraints• Manufacturing constraints• Transportation constraints• Storage and inventory constraints• Target service levels• Dynamic safety stock
Answering the tough questions:• How do I manage my supply chain risk more effectively?• What impact do changing costs have on my inventory,
production and/or sourcing strategy?• Can I meet demand profitably? • Where should I hold how much inventory, when?• Should I close down a facility?• How could I react to a disruption in supply due to
unforeseen events? • What are my most profitable channels or products to
invest in?• What is the impact of mergers and acquisitions on my
supply network and capital asset budget?
© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Demantra Demand Management
• Sense demand real-time– Sense demand more frequently, closer to the point of consumption– Capture demand and forecast at more granular level (store, shelf,
attributes, product characteristics)– Achieve consensus demand number more quickly by involving all
constituents at the same time, including customers– Quickly identify and react to demand changes and exceptions
• Improve forecast accuracy– Leverage advanced statistics for more accurate demand number– Use any combination of quantitative or qualitative data to establish your
base line forecast– High precision statistical forecasting, no statistical background required –
Superior Bayesian-Markov forecast analytics– Forecast based on attributes and characteristics– Leverage Advanced Forecast Modeling for promotion lift decomposition
and causal analysis
• Shape demand for profitability– Plan new product introductions– Plan promotions and sales incentives– Identify cross selling opportunities
• Evolve to real-time S&OP– Profitably balance supply, demand, and budgets
Shipments
Marketing
forecast
Order
history
CHANNEL DATA
Customer
sales
CollaborationWorkbench
Demand Hub and Seeded Worksheets
Real-time demand sensing and collaborative consensus forecasting
© 2009 Oracle Corporation – Proprietary and Confidential
• 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
– Redistribution (circular sourcing), load consolidation, allocation rules
– Include customer and supplier facilities
• Manufacturing Planning– Sequence dependent setups/changeovers– Simultaneous resources– Batch resources– Alternate resources– Minimum transfer quantities– Complex, network routings– By-products and co-products– Line rates and take times
Suppliers Transportation Manufacturing Transportation Transportation CustomersDistributors
Oracle Advanced Supply Chain PlanningHolistic Planning and Optimization providing one solutions for supply chain, distribution and manufacturing planning
© 2009 Oracle Corporation – Proprietary and Confidential
• Increase global visibility and reduce supply shortages
– Multi-enterprise visibility– Monitor supplier performance
• Implement vendor managed and consigned
inventory– Provide value-add services as a competitive differentiator– Reduce inventory carrying costs through automation
• Reduce planning cycle time through multi-enterprise planning
– Collaborative supply planning
– Comprehensive waterfall analysis
• React quickly to supply chain exceptions– Seeded and user configurable exceptions– Fully integrated with Oracle E-Business Suite
Oracle Collaborative PlanningImprove global visibility and react quickly to changes through collaboration with trading partners
© 2009 Oracle Corporation – Proprietary and Confidential
• Maximize throughput of bottleneck resources– Automatic detection of bottlenecks– Minimize setup with intelligent sequencing
• Improve shop floor performance– Minimize the effect of unplanned downtime
– Easy identification of issues– What-if rescheduling– Drag and drop
• Quickly determine the best schedule– Fast easy simulation– Scenario comparison and key performance indicators
• Implement quickly by leveraging out-of-the-box
integration
– Integrated manufacturing planning and scheduling– Fully integrated with Oracle E-Business Suite
Oracle Production SchedulingMaximize shop floor throughput and optimize resource utilization
© 2009 Oracle Corporation – Proprietary and Confidential
• Increases flexibility and reduce costs by moving inventory away from the customer to the point of postponement
• Accounts for demand, supply, and lead-time variability when determining the point of postponement and inventory levels
• Synchronizes inventory levels and policies across the supply chain• Helps you move from a push model to a pull model• Increases visibility to supplier and contract manufacturer inventory
SuppliersContractManufacturers
FinalAssembly
Central Distribution Centers
Regional Distribution Centers Customers
Old way Push Inventory
New way Postpone Inventory
Oracle Inventory OptimizationRespond quickly to demand, supply, and lead time fluctuations
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© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Service Parts Planning
• Simultaneously forecast, replenish and redistribute your service parts across your service supply chain
• More accurately forecast your service parts– Demantra statistical forecasting engine inside for highest
accuracy– Account for intermittent, seasonal, and fast moving demand
patterns– Leverage composite forecasting (shipments, usages,
returns)– Use service failure rates
• Optimize the replenishment and redistribution of parts across the extended service network, integrated with Service Execution
• Integrate with other Advanced Planning products for additional business processes
– Manage spare parts at customer locations (via CP)– Manage service contract customer demand (via Dem DM)– Manage targeted service levels and budgets (via IO)– Produce parts in manufacturing facilities (via ASCP)
Manage both forward and reverse material flows
© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Advanced Planning Command Center
• Get the right answers• Self service, pre-built• Rich content and KPIs• Seamless integration
with planning apps
Business Insight for Supply Chain Executives
Pre-Built Dashboards and Reports
Scenario andActivity Management
Plans and Archived Plans
An
alyz
eP
lan
Orc
hes
trat
e
Analyze and compare scenarios and plans
Execute scenarios
Execute automated processes
Archive plans
Web Service enabled Planning Processes
Analytical Data
Forecasting Supply Planning
Planning Analytics for Supply Chain Decision Makers
Business scenario planning• Decide which scenarios
to plan• Compare baseline to
alternative scenarios• Assign scenarios to
planners for execution
Preconfigured Planning Processes
Planning process automation• Notify constituents of
assigned activities• Link processes for manual
or automated execution• Auto-archive plans
© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Manufacturing Operations Center
The Foundation for Continuous Improvement in Manufacturing Operations
Contextualize Plant Floor Data and
Synchronize with ERP
Contextualize Plant Floor Data and
Synchronize with ERP
Provide Real-Time Intelligence for
Plant Operations
Provide Real-Time Intelligence for
Plant Operations
Leverage Next Generation Manufacturing
Operations Architecture
Leverage Next Generation Manufacturing
Operations Architecture
• Consistent mfg information for all users
• Convert equipment data into useful business info
• Ensure rapid response to manufacturing issues
• Leverage existing plant IT infrastructure
• Enable gradual upgrade of plant systems
• Simplify IT support for your core mfg strategy
• Deliver performance metrics & trends by role
• Easily build dashboards to your unique needs
• Identify performance improvement opportunities
© 2009 Oracle Corporation – Proprietary and Confidential
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• reduced ending level inventory from $200M to $50M, saving $8M annually by automating supply chain processes
• reduced monthly inventory levels for largest customer by over $1M per month and scenario analysis from days to 2 hours
• increased forecast accuracy from 50 to 85%, and reduced planning cycle time from 21 to 5 days
• improved on-time delivery to 98%
• improved inventory turns by 37%
• reduced order fill rate from 55% to 95%, increase inventory turns by 100%, reduced price protection claims by 40%
• reduced inventories by $350M, carriers from 200 to 12
• yielded a $12 million reduction in average inventory, improved forecast accuracy from 35% to 73%, improved fill rate from 80 to 93%
• reduced order cycle time by 30%, raw material inventory by 17%
• increased service level by 12% for same inventory investment
Sample customers achieving significant benefits
© 2009 Oracle Corporation – Proprietary and Confidential
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Many customers across all industries
DiscreteManufacturing
ProcessManufacturing
Consumer Goods /
Distribution
High Tech
© 2009 Oracle Corporation – Proprietary and Confidential
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Enables leading edge and transformational business processesOracle Value Chain Planning Solution
Predict market requirements and manage supply chain risk– Sense demand closer to the point of consumption with real-time visibility to demand events – Improve forecast accuracy through advanced analytics and improved consensus forecasting – Predict impact of risk to your network by simulating planned and unplanned supply chain events– Account for variability in your inventory positioning and postponement strategy
Shape demand for profitability– Drive demand via promotions planning– Manage new product introductions and marketing to shape demand and maximize revenue– Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process
Align operational plans with corporate goals– Plan your extended value chain with holistic supply and distribution planning– Synchronize plans and actions across the extended enterprise– Improve supply chain visibility and align trading partners via collaboration– Transform your service operations from cost to profit centers
MONITOR and MANAGE with Embedded Analytics
Questions