- Oracle · Supply Chain Challenges McKinsey Global Survey 2010 McKinsey Global Survey (2010). The...

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Discover Ways to Ensure Efficiency in Your Supply Chain

Presenter

Date

© 2011 Oracle Corporation – Proprietary and Confidential

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 decision. The

development, release, and timing of any features

or functionality described for Oracle’s products

remains at the sole discretion of Oracle.

Safe Harbor Statement


CEOs: Top 6 Competitive and Growth Factors

• Ability to Adapt to Change (95%)

• Access and Retain Key Talent

• Brand Strength, Reputation

• Customer Intelligence

• Supply Chain Efficiency

• Technology Innovation

Q: How important are the following sources of competitive advantage in sustaining your growth over the long term?

© 2011 Oracle Corporation – Proprietary and Confidential 4

Uncertainty

Competition

Chaos

Globalization

Volatility

Margins

The CEO Agenda

CEO Briefing: Corporate Priorities, Economist Intelligence Unit

“How can I drive growth faster,

innovate quicker, and achieve operational

excellence?”

Risk


Supply Chain Challenges

McKinsey Global Survey 2010

McKinsey Global Survey (2010). The survey was in the field from October 12 to October 22, 2010, and received responses from 639 executives representing the full range of regions, industries, and tenures. At the C-level, the range of functional specialties is also represented.


Supply Chain Shifting Priorities

From Cost Containment To Value

McKinsey Global Survey (2010). The survey was in the field from October 12 to October 22, 2010, and received responses from 639 executives representing the full range of regions, industries, and tenures. At the C-level, the range of functional specialties is also represented.


Sense, Shape & Fulfill Demand

Build an Adaptive Supply Chain

Accelerate Profitable Innovation

Align Supply, Demand, Finance

Analytics are a Must

1

2

3

4

Focus on Supply Chain Efficiency

With Differentiated Capabilities

5


Today’s Reality Demand Volatility and Uncertainty

“We are experiencing

significant swings in demand--complicating demand and

supply planning and visibility

across the value chain”


Demand

Volatility

Anticipate and

Shape Demand

Challenge Transformation


Predict and Shape Demand Demand-Driven Leaders Outperform the Competition

• Sense demand closer to the point

of consumption

• Improve forecast accuracy

• Simulate to predict impact of risk

• Shape demand with optimized

promotions and effective new

product introductions

“By improving our understanding of true demand, we are better able to meet this demand, thus increasing customer satisfaction and positioning us for

market shifts and transitions.”

-Karl Braitberg, VP Supply Chain, Cisco

Source: PRTM 2010

Top 4 Supply Chain Challenges

“Supply Chain Volatility and Uncertainty Have Permanently Increased”

74%

33%

31%

30%

Demand volatility / poor forecast accuracy

Lack of visibility to current market demand

Increasingly demanding customers

Lack of integration between SCM and Prod. Dev

Oracle SCM


Today’s Reality Supply Chain Complexity

“We are always very slow to

react to change, instead of being

able to anticipate and

respond quickly.”


Supply Chain

Complexity

Adaptive

Supply Chain



Adapt to a Dynamic Environment Mitigate risks with enterprise-wide visibility

• Plan, execute, monitor all transportation in one system: global, local, central

• Manage global collaboration & achieve network-wide visibility

• Adapt & respond to logistics events

• Complete supply chain execution – Transportation and fleet management

– Global trade management

– Warehouse management

“Improving operational flexibility and responsiveness are two areas of focus in Coke’s overall supply chain strategy. Using Oracle’s logistics applications allows Coke to

minimize operating costs while still remaining nimble enough to adapt to changes in our logistics network or processes.”

- Dennis Flynn, Director, Logistics Strategy, Coca Cola

Source: PRTM 2010

COO Agenda for 2010: Top 4 Priorities

14.1%

9.0%

8.8%

8.8%

Increase supply chain flexibility

Improve delivery performance (on-time in full)

Accelerate globalization of supply chain

Reduce order fulfillment lead time

Oracle SCM


Today’s Reality Accelerating Profitable Innovation

“How can I innovate faster

than my competition with my products and

supply chains getting more and more complex?”


Shrinking

Product

Lifecycles

Accelerate

Profitable

Innovation



Accelerate Profitable Innovation Reduce Time-to-Market, Minimize Costs and Risks

• Shrink time-to-market, mitigate risk

• Understand customer needs

• Design for supply, manufacturing, cost, compliance

• Drive design collaboration

• Manage new product introductions and changes

“We have seen tremendous benefit to date using Oracle's PLM for Process solution including an improvement in our time to market of over 50 percent.”

– Craig Bacon, SVP of R&D, Tyson Foods, Inc

Source: Aberdeen Group

Top Drivers for PLM

49%

43%

34%

31%

Demand for shorter product lifecycles

Globalization of markets / supply chains

Design complexity or distributed design environment

More complex products

Oracle SCM


Today’s Reality Alignment Between Demand, Supply, Product, Finance

“We constantly struggle with multiple

disparate, departmental data

sources and a lack of a holistic planning

process. This is negatively affecting our competiveness and profitability.”


Fragmented

Planning

Processes

Integrated

Business

Planning



Align Supply Chain with Goals Link Operating and Financial Plans for Better Performance

• Common view of financial and operational plans

• Collaborate in real-time across LOBs

• Respond efficiently to changes

• Make operationally realizable budgets

• Improve revenue forecast accuracy

“Six months after implementing Real Time S&OP we have seen a dramatic increase in forecast accuracy. This resulted in an immediate 20% inventory reduction.”

– Wendy Malloy, Inventory Planning Manager, Wilton Industries

Source: Aberdeen Group

Companies that Excel at S&OP Outperform their Competition

Oracle SCM

Best-in-Class Average Laggards


Today’s reality

Analytics are a Must

“We are always very slow to

react to change, instead of being

able to anticipate and

respond quickly.”


Product Analytics Example: New Product Risk Management

21


1

Supply Chain Efficiency

Jumpstart Ideas

Support Process Change

• Adopt a ‘Lean’ mindset

• Design-in Flexibility

• Enhance Reporting Capabilities

• Think about the BIG picture

• Streamline Key Processes

• Small Successes along the Way

2

3

4

5

6

7


Improving Efficiency 1. Support process change

Ensure Adoption of Change

Ease Resistance to Change

Secure Stakeholder Buy-in




Ease Resistance to Change


Copyright ©2010, Oracle. All rights reserved. Oracle Confidential


http://www.industryweek.com/articles/the_goal_of_the_lean_supply_chain_14935.aspx

Improving Efficiency 2. Adopt a ‘Lean’ Mindset


Oracle Business Accelerators,

• Tools to aid the implementation of Oracle applications

– Built for specific industries and regions

– Consist of wizards, configuration and other assets

– Flexible to customer requirements yet simple and efficient

• A vital component of Oracle Accelerate Solutions

Wizard

+ Configuration

Business Accelerator

Why is this great?

We leverage the collective experience of thousands of previous

implementations to provide you with implementation value!

Improving Efficiency 3. Design-in Flexibility


Sourcing simulation

Profitability analysis

Asset rationalization

Interactive scenario simulation

Improving Efficiency 4. Enhance Reporting Capabilities


Customers Distribution Manufacturing Suppliers

Financials / HR Master Data Management

SUPPLY

MANAGEMENT

Purchasing

Settlement

Supplier Mgt

Contract Mgt

SUPPLY

PLANNING

Sales & Operations Planning

Planning & Scheduling

Order Promising

Network & Inventory Opt.

Service Parts Planning

DEMAND

MANAGEMENT

Forecasting

Promotions Mgt

Demand Collaboration

VMI

PRODUCT LIFECYCLE MANAGEMENT

New Product Introduction, Quality, Cost, Compliance, Design for Supply

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Pric

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MANUFACTURING

Mixed-mode

LOGISTICS & DISTRIBUTION

Warehouse, Transportation

SERVICE

Planning & Execution

Business Intelligence: Visibility / Analytics Design Plan Source Make Fulfill Service

Improving Efficiency 5. Think about the BIG picture

http://supply-chain.org/scor


Improving Efficiency 6. Streamline key processes with Workflow where possible


Success

Improving Efficiency 7. Plan for small successes along the way

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