Prepared by:

Session ID:

PeopleSoft Global SCM Implementation at ACN Opportunity, LLC

Steven CanterDirector, Global Service DeliverySmart ERP SolutionsSteve.C@SmartERP.com

100650

Stephanie MerendaSenior Solution ConsultantSmart ERP SolutionsSteph.M@SmartERP.com

• About Smart ERP Solutions and ACN• Overview of ACN Global Rollout• Regional Differences and Challenges

• Europe• South Korea• Japan

• Lessons Learned and Next Steps• Questions and Answers

Agenda

About Smart ERP Solutions, Inc

Achieve Best-In-Class PerformanceOur mission is to provide innovative, configurable, flexible, cost-effective solutions

to common business challenges, enabling our clients to save time, increase productivity, minimize costs, and maximize their return on investment.

SolutionsBusiness applications that offer organizations an end-to-end solution providing

the right design and implementation from start

to finish.

ServicesA 24/7 seasoned and

experienced staff of experts to help you implement your

business solutions efficiently and effectively at

a cost-effective rate.

CloudCloud applications provide solutions built on proven

enterprise class architecture that enable high configurability and

ease of monitoring.

About ACN

• Founded in 1993• HQ in Concord NC• Currently Operating in 25

Countries• ACN services such as

telephone, high speed Internet, Satellite Television, and others are sold through a network of Independent Business Owners.

BenevitaTM Product Family

• A premium lifestyle brand

• Provides wellness, nutrition, weight management, and hair and skin care products.

• Specific products vary by region

• ACN has long used PeopleSoft Financials• With traditional services based business, there was no

need for a complete Supply Chain Solution• As ACN has expanded more into sales of tangible

products, a complete SCM system that integrates with PeopleSoft Financials was required

• Solution is the roll-out of PeopleSoft Purchasing, Inventory, and Cost Management to regions selling the Benevita product family

Why PeopleSoft SCM?

• PeopleSoft deployment may be in existing countries already doing business or in green field locations

• Warehouse logistics are generally outsourced and are different in each country

• In some countries, must support a mix of distribution centers and retail walk-in locations

• Transportation Management systems and requirements vary by country

• Order Management systems vary by country

Regional Differences

• One GL, AP, and PO Business Unit per Country• One Inventory BU for each physical address within the

Country• Configuration of Master Data is done through a shared

service to ensure consistency and accuracy. Foreign translations of descriptions provided by end users.

• Master Item data is not automatically synced • Leverage delivered SCM Integration wherever possible for

communicating with outside systems• Where possible, conform the system to local needs rather

than trying for a one-size-fits-all implementation

General Approach

ACN in Europe

• Order Entry via a custom system called WOP (web order processing)

• Logistics 100% outsourced to UPS• All shipments are processed by UPS and sent back to

PeopleSoft Inventory• Transactions performed manually in PeopleSoft Inventory for

Receiving or miscellaneous adjustments• Transactions to/from outside systems performed in batch

mode with XML files• Only a single Inventory BU – which complicated reconciliation

since there is more than one physical location.

Operational Environment

Europe Data Flow Diagram

• XML files sent from WOP to both PeopleSoft and UPS with order data.

• Reservations not used.• Orders released in PeopleSoft with “Release Only” option

– no paperwork generated.• Orders are processed and shipped by UPS.• Picking Feedback batch processed in PeopleSoft with

Auto Advance to Depleted State based on XML file from UPS.

Processing Steps

• Custom App Engine to read in the XML file, perform pre-processing, and populate delivered staging tables with order data

• Examples of pre-processing include adding the Business Unit, and basic error checking

• Write data into delivered staging tables• Call delivered INVENTORY_CREATE_STOCK_REQUEST EIP• MSRs created using the original order number from WOP.• Post Processing moves files from Active to Archive

directory

Creating the Stock Request

• Custom App Engine to read in the XML file, perform pre-processing, and populate delivered staging tables with order data

• Examples of pre-processing include adding the Business Unit, and basic error checking

• Write data into delivered staging tables• Call delivered INVENTORY_SHIPPING EIP• Post Processing moves files from Active to Archive

directory

Shipping/Depleting Orders

• An initial “light” inventory setup had been done prior to the full rollout – this created issues that needed to be corrected when the full rollout was done – example is that Stage Date Control had been turned on.

• Data transmitted by UPS is not always accurate – things like incorrect Lot ID or wrong Order Line Number being sent back or shipments being sent twice. Requires manual correction and reprocessing. Error messages from SCM Integration programs are sometimes cryptic.

• Due to disconnected nature of systems, the process of shipping/depleted the orders in PeopleSoft based on UPS messages has been less reliable than desired.

Limitations/Challenges

ACN in Korea

• Order Entry via a Korean system called O2C (Order to Cash)

• Warehouses operated by ACN • Delivery via Korean Postal Service• All inventory transactions to be performed in PeopleSoft• Main distribution center plus multiple retail storefronts• Many Kit products – one SKU requiring multiple picks• Documents must be Korean – Korean is not supported by

PeopleSoft FSCM

Operational Environment

• No ability in O2C to parse out kit components• Limited O2C interface capability• Retail storefronts need to generate paperwork to give to

customer immediately – cannot wait for batch processing

• Documents must be in Korean and printed directly to printer – not manually printed from PDF

• To limit Grey Marketing, items are serial numbered. But serialization adds tremendous overhead when processing transactions.

Limitations and Challenges

• Custom PeopleSoft Component to hold kit definitions• O2C order is sent with the Parent Item ID. Preprocessing

of O2C orders converts any O2C kit ID number to the appropriate Item IDs for each component

• Each kit component becomes a separate line on the Stock Request

Handling of Kits

Example of a Kit Definition

• Separate database on PeopleSoft DB server to contain staging tables for O2C orders

• O2C system connected via ODBC• When orders are released in O2C, order detail is written

to staging table• DB Link allows PeopleSoft to read staging database• On scheduled basis, orders are read out of staging

database and populated into delivered staging tables for processing by the delivered INVENTORY_CREATE_STOCK_REQUEST EIP

O2C Interface Method

• At storefront, orders are entered into O2C and a receipt generated that includes a bar coded order number

• Order information is immediately copied into the staging database

• In PeopleSoft, the user scans the O2C order number into a Run Control page and runs an SQR report that prints a picking list from the staging database information

• Later, the order will be brought into PeopleSoft and released with Auto Processing to Deleted

Storefront Picking Report

• Documents such as Pick Plans are to be printed directly to the printers via automated scheduled jobs and must display Korean characters

• While PDF files created by SQR programs did have proper Korean language, the printer would not print in Korean even though the correct font was loaded.

• Solution was to generate .SPF files from SQR and then print to correct printer via App Engine included in PS Job that selects correct printer/tray for output

• All Picking reports include custom bar code information

Korean Printed Documents

• PeopleSoft delivered serial number is very labor intensive and not well suited for high order volume

• Solution is to have a separate custom table that contains BU, Order Number, Item ID, and Serial ID

• No items are serial controlled in PeopleSoft• As items are picked/packed, a bar code from the pick plan is

scanned with Order No/Item ID• Then the serial number is scanned from the item• Data is read into an Excel workbook• Workbooks are saved to a network folder and, on a

scheduled basis, the files are read, data is copied to the custom table, and the files are archived

Serial Numbering

• Each line of Pick Plan has Order Number and Item ID in a single Code 39 bar code

• App Engine import program parses this into the separate fields

• QR Code on product contains country-specific URL for Benevita followed by question mark and then serial number. Scanner is programmed to ignore all characters except those following the question mark.

• Scanner is programmed to automatically add a Tab character after each scan to auto-advance the cursor to the next cell in the Excel workbook

Serial Scanning Details

Flow for Korea Standard Orders

ACN in Japan

• Very similar business process flow to Korea• Both warehouse and storefront operations• Similar language issues except that Japanese is directly

supported by PeopleSoft• Order Entry System is Hybris, which is an SAP product• Addition interface required to connect to Yamato Freight

for tracking of shipments and delivery for revenue recognition.

Operational Environment

• Hybris is planned to be the eventual global order entry system as powerful capabilities allow it to be a robust web order entry system for all ACN businesses

• Hybris is fully Web Services enabled, so all integration to PeopleSoft will be via Web Services, allowing for more real-time transaction processing

• Hybris has the ability to parse out kit products and send individual component line items to PeopleSoft

Hybris Integration

• As each order is released in Hybris, it sends a message to PeopleSoft containing the order number.

• PeopleSoft connects to Hybris, passes the order number, and receives back the full order details

• Data is stored in custom staging table• Storefront picking report can be printed immediately• Data from staging table is used to create Material Stock

Requests on scheduled basis, similar to Korea

Hybris Order Integration

• Manual sync of new items entered in Hybris and PeopleSoft Item Master

• Similar printing issues to Korea with Japanese documents required to be directly printed.

• In addition to Pick Plan, an invoice/packing slip is printed on a pre-printed form.

• Serialization used – same process as Korea• Challenges with building integration to pull data back from

Yamato and sending it to Hybris for revenue recognition.• PeopleSoft and Hybris development teams were separate –

sometimes coordination was difficult

Limitations and Challenges

Japan Data Flow

• Fully integrate RMA processing into the system – RMA entered and passed to PeopleSoft via standard integration points and then a message back to the billing system when the RMA is received to issue the customer credit.

• Roll out PeopleSoft into additional geographies• Standardize on Hybris globally in order to have a

common platform for all order processing and to simplify and strengthen the PeopleSoft integration

Next Steps

Lessons Learned

• Whenever setting up a new module for the first time, even if it is in “light” mode, take the time to ensure that installation and BU configuration options will support future growth.

• Before entering configurations such as Material Storage Locations and Costing Methods, ensure that all parties agree.

• There is no such thing as too much training. Train on-site if possible to be able to read faces and body language.

Lessons Learned

• For global implementations, ensure that there is adequate support available around the clock so that users don’t get stuck.

• Provide “hyper-support” for the periods immediately before, during, and after the go-live. Have appropriate support resources on-site for hand holding throughout.

• Whenever you are working with a foreign language, take the time to test everything especially well. Ensure that you have the time in your schedule for any required translations – especially if your language is not directly supported by PeopleSoft.

Lessons Learned

• When working with 3rd party data integration, make sure that sufficient testing takes place prior to go-live.

• When having development teams from different companies and different geographies working on a project, it takes extra effort to coordinate everything and make sure everyone is on the same page. Regularly scheduled integrated team meetings are important.

• Ensure that Project Management is actively engaged with all stakeholders, including development teams, end-users, and executive sponsors.

Lessons Learned

Any Questions?

Session ID: 100350Please complete the session evaluation