Bill Stankiewicz Copy Greg Smith Oracle For Web
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Transcript of Bill Stankiewicz Copy Greg Smith Oracle For Web
“Supply Chain Complexity, An Opportunity”
Greg Smith, Industry Director, Transportation and Logistics
2
Supply Chain’s In the Coming Decade…
“The next ten years will be all
about mobile communication’s
and real time data.”
Noel Perry
Chief Economist, American Trucking Association
ITLC 2010 Conference
3
Logistics Service Providers –
Industry Processes
4
Management Excellence:
The Next Competitive Edge
Time
Competitive
Advantage
OPERATIONAL EXCELLENCE
MANAGEMENT EXCELLENCE
Cost – Lean and Mean Quality – Six Sigma, TQM Speed – Real-time, JIT
Smart – Deep Insight Agile – Decisive Aligned – Across the enterprise
5
Supply Chain Includes …
Finished Goods Outbound Logistics Component Inbound Logistics
Ship
Docs
Transportation Management
Global
Transportation &
Intelligence
Freight Payment,
Billing & Claims
Sourcing, Rate
Management &
Tendering
Shipment
Management &
Visibility
Transport
Order
Ship
Docs
Packing Slips
& Labels
ASN
Transport
Orders Tenders
Tender
Response
Tender
Shipping
Documents
Shipment
Tracking Tenders
Shipment
Tracking
Shipment
Status
Invoice
Shipment
Status
Invoice Tender
Response
Tender
Shipper 3PL Logistics
Provider Carriers
Carriers 3PL Logistics
Provider
Customer/
Channel Customs
6
Supply Chain Includes …
• Raw Materials Sourcing
• Availability of Quality Labor Markets
• Production Facilities Availability
• Ability to Control Quality
• Government stability and predictability
• Internal currency policies that are consistent with global trade
• Ability to move financial assets and repatriate profits
• Adequate domestic transportation infrastructure
• Governmental protections for IP
• Willingness to enforce copyrights and patents
• And more…..much more
7
Multiple Services and 100% of Customers
on a Single Platform…
Global Logistics
Planning and Execution
Platform
Legacy Applications, Data Hubs, Infrastructure
Enterprise SOA
Business Process Platform, Collaboration Hubs
Serv
ice 1
Serv
ice 2
Serv
ice 3
Clie
nt 1
Clie
nt 2
Clie
nt 3
Rationalize and Modernize
Applications, Data Repositories,
and Infrastructure
Link Islands of Automation with a
Business Process Platform to facilitate
Quote-to-Cash, Procure-to-Pay
Streamline Collaboration with
Customers, Partners, Suppliers,
Regulatory Authorities through
Collaboration Hubs
• Supports best-of-breed solutions
• Can be configured
• Leverages legacy applications
• Supports industry standards
• Vendor Independent
Kraft uses Cooperative
8
Quote Order Plan Execute Monitor Settle
Key Opportunity Areas for LSPs
• Automate the quoting process improving contract compliance, quote accuracy and reducing lead times for quotes
• Capture, document, and respond to changes in orders without missing promised service levels
• Optimize planning and execution of orders so service levels are met while cost of service is minimized and resource utilization is maximized.
• Get visibility to orders, shipments, assets, and personnel so LSPs can pro-actively respond to operational disruptions and order changes, while ensuring service commitments are met
• Integrate quoting and service execution with operational accounting and billing so you can automate accounts receivable, payable, and inter-company accounting processes
Transformation of the business process through enabling technology platforms will allow LSPs to make IT strategic and help them differentiate their offerings in the market place
LSPs who automate their Quote-To-Cash process can see 3-5% revenue improvement, 5-7% reductions in cost and a 30% reduction in DSO*
Transforming the Quote-to-Cash Process can Significantly
Improve Scalability, Profitability & Operational Excellence
Source: Oracle Analysis
10
RTD Engine
Server
Business Processes
Common Enterprise Information Model
Real-time Business Rules &
Self-Learning Predictive Models
Inputs
Process data
& context
Process decision
point & feedback
• Process learns and continuously
optimizes in real-time based on
closed loop information
• Analytic decisions are taken for
each interaction
• RTD decisions based on rules and
predictive models
• RTD optimizes across conflicting
business process goals
• Process leverages common data
model of real-time and historical data
• Decisions based on facts, context,
analytic insights
RTD Enables Adaptive Business Processes
Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 11
Driving Supply Chain Excellence With
Real Time Analytics
Sales Marketing Order
Management
& Fulfillment
Supply
Chain Financials
Human
Resources
Pipeline Analysis
Triangulated Forecasting
Sales Team Effectiveness
Up-sell / Cross-sell
Cycle Time Analysis
Lead Conversion
Employee Productivity
Compensation Analysis
HR Compliance Reporting
Workforce Profile
Turnover Trends
Return on Human Capital
A/R & A/P Analysis
GL / Balance Sheet Analysis
Customer & Product Profitability
P&L Analysis
Expense
Management
Cash Flow Analysis
Supplier Performance
Spend Analysis
Procurement Cycle Times
Inventory Availability
Employee Expenses
BOM Analysis
Order Linearity
Orders vs. Available
Inventory
Cycle Time Analysis
Backlog Analysis
Fulfillment Status
Customer Receivables
Campaign Scorecard
Response Rates
Product Propensity
Loyalty and Attrition
Market Basket Analysis
Campaign ROI
Service &
Contact
Center
Churn Propensity
Customer Satisfaction
Resolution Rates
Service Rep Effectiveness
Service Cost Analysis
Service Trends
12
Questions can be worlds apart
What is our performance?
• What are the top 10 markets?
• What is the gap to forecast?
• What customers are most
profitable?
• What are revenues by product
compared to last year?
• What are sales by product,
store and quarter?
• What is the trend for
employee-related costs?
• What is our open headcount?
How can we improve
performance?
• What if we increase promotional
capacity by 10% in our major
markets?
• What happens to our forecast if the
dollar declines by 5% to the Euro?
• What happens to gross margin if
our materials costs increase by
20%?
• Which customers drive 80% of our
overall profitability?
• What happens to same store sales
if inventory turns increase by 5%?
Situational Forward-looking
13
Summing it up….
• Forward thinking logistics service providers understand that IT is strategic and will make technology a central pillar in their corporate strategy.
• Data needs to be accurate, and near real-time. One version of the truth is critical.
• Your business architecture depends on your technology architecture.
Costs Revenues
14 14