INTEGRATING JDE AND CLOUD-BASED MRO APPLICATIONCHALLENGES & OPPORTUNITIES

JUNE 20 , 2017

SID ARYA (DELOITTE) ALAN CONDON (CANFOR)

@SidArya1, @DeloitteOracle

Sid has over 19 years of consulting experience that includes ERP assessments, business process redesign, net new implementations, upgrades of ERP Applications, transition planning and project management.

He has over 18 years’ experience implementing various releases of Oracle JD Edwards EnterpriseOnesoftware for companies of all sizes in countries such as India, Singapore, Malaysia, Thailand, Philippines, Australia, New Zealand, USA and Canada.

Sid AryaSenior Manager

Project Management Team MemberProject EDGE Role:

Alan CondonIntegration Manager

Integrations ManagerProject EDGE Role:

INTRODUCTION

Alan is Manager of Integration for Canadian Forest Products Corporate IT and has extensive ERP integration and migration experience.

During his 35 year technology career, Alan has gained expertise across various industries and has been focused on manufacturing and process control automation, A2A interoperability, B2B connectivity, interface standardization, and integration integrity and governance.

OBJECTIVES

• Examine Canfor’s Integration Architecture and Interconnect scenarios background

• Discuss the opportunities for companies similar to Canfor to integrate with cloud products and the choice of expanding the footprint.

• Functional and technical challenges in integrating JDE On-Premise with Cloud based products

ABOUT CANFOR

ONE OF THE WORLD’S LARGEST PRODUCERS OF SUSTAINABLE LUMBER, PULP, PAPER, AND ASSOCIATED PRODUCTS.

CANFOR – LUMBER OPERATIONS

▪ Lumber capacity: 6 billion board feet

▪ 13 mills - British Columbia

▪ 1 mill - Alberta

▪ 12 mills - U.S.▪ 1 - North Carolina▪ 3 - South Carolina ▪ 3 - Georgia▪ 3 - Alabama▪ 1 - Mississippi▪ 1 - Arkansas

▪ 5 Wood Prod Plants - U.S. ▪ 1 Re-manufacturing Plant - SC▪ 2 Laminating Plants - AR, GA▪ 2 Chip Mills - TX , LA

▪ 6500 employees

CANFOR – PULP AND PAPER OPERATIONS

Canfor Pulp is one of North America’s largest producers of bioenergy▪ 1 plant in Alberta

▪ 18MW Canfor Green Energy biomass cogeneration facility in Grande Prairie provides renewable heat and electricity for the Grande Prairie sawmill and sells renewable electricity to the Alberta grid

▪ 3 industrial grade fuel pellet plants in British Columbia

▪ Market pulp capacity: 1.3 million tons

▪ Kraft paper capacity: 140,000 tons

▪ 4 Pulp Mills

▪ 1 Kraft Paper Mill (integrated)

CANFOR – GREEN ENERGY PLANTS

RENEWABLE. SUSTAINABLE. RESPONSIBLE.

• Use 100% of our wood fibre to create useful products

• Residuals from our lumber operations

• Source of fibre for pulp mills and fuel for heat in our sawmills

• Turned into green fuel source pellets for export to Europe and Asia

• 80 million trees planted in 2016 on our tenures

PROJECT EDGE

ENTERPRISE DESIGN FOR GLOBAL EXCELLENCE

CANFOR – PROJECT EDGE

In January 2012, Canfor undertook an initiative to replace it’s legacy business system with:Oracle JD Edwards Enterprise One 9.1 (Tools 9.1.4)Oracle Transportation Management 6.3.2Oracle’s Demantra 7.3.1.4, Custom .NET modulesOracle Business Intelligence 11.1.1.6.8.

The combined solution of Oracle’s JDE E1 & OTM was based on a business need for:• Greater logistics and transportation planning capabilities• Improved inventory planning and management• Financial net revenue projections and integration with their existing financial history

• On June 30 2014, Phase 1 of the EDGE program was implemented for in Canfor Canadian lumber operations• On Sep 28 2015, Phase 2 was delivered on time / on budget and was focused on the lumber operations in

the Carolinas (US)• On Feb 6 2017, Phase 3 went live for Canfor’s acquisitions in the US central region and has put the entire

lumber operation of Canfor onto a single integrated platform

Canfor partnered with Deloitte to implement the Oracle applications (JDE, OTM, Demantra, OBIA) and provide consultative services for Business Integration of Operations.

EDGE PROJECT PHASE HISTORY

The Project EDGE solution is being deployed in phases:1. Canadian Lumber Operations using EBS (w/o JDE Financials)

2. US – Canfor Southern Pine East

using JDE Financials

3. US – Canfor Southern Pine West

using JDE Financials

4. A. EBS Financials

replacement

B. Pulp and Paper1

2

3

4

EDGE INTEGRATION TOPOLOGY

webMethodsMiddleware

A2AJDE

OTM

webMethodsMiddleware

B2B

Vendor

Customer

FTP, AS2

FTP, AS2

VAN

Data Gathering System

Demantra - Forecasting

EBSE-Business

Suite

.Net Applications

JDE Business Services

ALegacy App with

Source

Push data

EDGEBridge

XR

EF, M

irro

r,St

agin

g Ta

ble

sEDGEmx

Agent

webMethodsMiddleware

A2A

Legacy App No Source Code

Full DB Access, SP

B

Legacy App No Source Code

Read Only DB Access

C

Web Services(SOAP)

DCloud App

webMethodsMiddleware

A2A

Phase 1Phase 2Phase 3

EDGE – LEGACY APPLICATIONSApplication Interface Type Purpose System Type Final Disposition

MP2 GLPO-InAB-Vend

MRO system On-Premises Retained – Integrated with JDE

EAM GLPO-InAB-Vend

MRO System Cloud Retained – Integrated with JDE

Lumber Track PO-Out Forest Industry Manufacturing ERP – JV owned Cloud Transmit JDE PO to Remote FTP

Kronos GLAP

Payroll system On-Premises Retained – Integrated with JDE

FPS GLAPSOAB-VendAB-Cust

Fiber Procurement/Tract Management system On-Premises Retained – Integrated with JDE

iNSELS AR, TransportOTM

Fleet Management, Backhaul Invoices, Residual Management, Trailer Inventory

On-Premises Retained – Integrated with JDE

Hand Held Scanners

INV,TransportOTM

Physical Inventory CountShipment UPI Management

On-PremisesOn-Premises

Retained – Integrated with JDERetained – Integrated with OTM

DGS INV Manufacturing Line Data Gathering System On-Premises Retained – Direct integration to JDE DB

ADP Manual Payroll system Cloud Retained – No integration to JDE –Upload with spreadsheet

.NET Apps JDE Business Services

Production Planning Tool, Demand Planning, Price Quotes, Available for Sale, Fulfillment

On-Premises Retained – Direct integration to JDE DB and JDE Business Services

LEGACY INTEGRATION DIAGRAM - 1

LEGACY INTEGRATION DIAGRAM - 2

ARCHITECTURE

EDGEBRIDGE & CLOUD INTERFACE

EDGEBRIDGE

EDGE – CLOUD APPLICATION INTERFACE

NEW OBJECTS – CLOUD INTEGRATION

Interface Purpose Type of Data

1 PO Receipts to JDE Send PO Receipts to JDE and dynamically build PO’s in JDE for subsequent invoice matching, AP payment to vendor, recording to GL.

Transactional Data

2 Inventory Moves to JDE Send GL account and value information to record movement of MRO assets between GL accounts for valuation of non-stock inventory.

Transactional Data

3 EAM Supplier Maintenance Insert and Update Suppliers in EAM from JDE Vendor records in JDE Address Book to enforce JDE Vendor System of Record role. EAM Supplier data maintenance was restricted to allow changes to non-JDE maintained fields.

Master Data

EAM Cloud Object Purpose Type of Data

1 PO Receipts Custom Grids (2) • Custom Grids designed in EAM instance to stage all internal data from Cloud datasets to support JDE required data for PO Receipts. 1 for Parts, 1 for Services.

• Used EAM web services toolkit objects for custom grid to retrieve unprocessed records from EAM cloud with webMethods scheduled service

• Retrieved data records are written to EDGEBridge staging tables• EDGEBridge accounting interfaces to JDE are used to move data to JDE

Transactional Data

2 Inventory Moves Custom Grid • Custom Grid designed in EAM instance to stage all internal data from Cloud datasets to support JDE required data. Used EAM web services toolkit objects for custom grid to retrieve unprocessed records from EAM cloud with webMethods scheduled service

• Retrieved data records are written to EDGEBridge staging tables• EDGEBridge accounting interfaces to JDE are used to move data to JDE

Transactional Data

JDE DATA EMBEDDING – EAM CLOUD DB

• JDE Master Data is embedded in the EAM Cloud DB to associate JDE values to EAM entities. This technique eliminated the use of Cross Reference lookups to determine what value JDE uses for an internal EAM value.

• The JDE G/L account number for each transaction is generated through a rule based generation matrix based on transaction scenario using embedded data in the 4 EAM tables shown under the General Ledger ID label below:

• Native JDE values are used for the key values in the EAM Supplier, Terms of payment, Unit of Measure, and Tax Code tables since these keys are user-definable in EAM.

JDE TO LEGACY - VENDOR MASTER

F0101Z2

F0401Z1

F0111Z1

F0115Z1

R5604Z1F5501Z1

EDGE_Stage_apmaster

Custom Batch to extract information from Address Book JDE Interoperability tables

Extraction of Address Book,Vendor Master records to JDE ZTables for onward transmissionto Cloud based EAM (MRO)application

webMethods

LEGACY SYSTEMS TO JDE - GL

EDGE_Stage_GL F0911Z1R09110Z

F0911

All feeder systems (Payroll, Stats, InventoryTransactions from EAM, etc.) transmitting GLJournal Entries needed to conform to theEDGEBridge standard GL Format

JDE General Ledger

webMethodsEDGE_Stage_GL F0911Z1R09110Z

LEGACY SYSTEMS TO JDE - AP

EDGE_Stage_AP

F0411Z1

R04110ZA

F0411

F0911Z1

F0911

JDE General Ledger

All feeder systems (Payroll Garnishments, LogProcurement vouchers, OTM vouchers, etc.) neededto conform to the EDGEBridge standard AP Format

webMethods

JDE Accounts Payable

EDGE_Stage_AP

F0411Z1

R04110ZA

F0911Z1

F0411

EDGE_Stage_AP

F0411Z1

R04110ZA

F0911Z1

EAM CLOUD TO JDE PROCUREMENT

F4301Z1

F4311Z1

F47071

F47072

EDGE_Stage_MP2Receipts

R5500002 – A custom batch reused from Phase 1 used to call several other batch programs in a sequence

R4311Z1I

R47071

F4301

F4311

F4311

F43121

PO Header & Detail

PO Detail & Receiver

For each receipt completed in EAM system - there is aPO and a receipt created in JDE Z tables

webMethods

CHALLENGES & OPPORTUNITIES

PROJECT EDGE

CHALLENGES

Challenges faced by the Solution and Integration Teams:

• Canfor did not own the source code for some of the legacy applications

• A re-write of the applications or a request to customize them was not feasible.

▪ Almost certainly would not fit into the project schedule

▪ Also, did not meet the long term application replacement/consolidation initiatives

• Had to test for every possible scenario

• Never integrated with a Cloud product before as all previous applications were on-premise

▪ Lack of expertise in this modality

▪ Web Services operate very differently than data table to data table interfaces

• From a technical standpoint, there were unique challenges in reaching and connecting the Cloud based application

▪ EAM web services toolkit was never utilized before

• The terminology was different than previous interfaces which added another layer of difficulty

▪ Technical jargon and application references

WHAT WORKED WELL?

Items that helped implementation for Solution and Integration Teams:

• The PMO team did great at Collaborating and Managing multiple resources across various time zones• Geographic spread of the team

• Different cultures, styles of working

• Shared IT resources - mitigation

• EAM consultant & Deloitte provided in-depth knowledge of Cloud based EAM architecture and On-Prem JDE z tables• Analyst and Programmer resources worked well all the phases – agile approach

• Continuity of resources

• Leveraged the stability of the existing interfaces to accounting to lessen our risk and meet the project timeline

• Proven functionality, not available in JDE or OTM, was retained through the interface of legacy apps.

• Proactive error reporting through WebMethods• Integrity and notification of errors – to guarantee proper integration between systems

ABOUT DELOITTE JDE PRACTICE

THE LARGEST GLOBAL JDE IMPLEMENTER

Canadian and global leader in the number of certified JDE consultants through Oracle’s Specialization program

Oracle Diamond level status formally recognizes Deloitte member firms’ breadth and depth of services across the entire stack of Oracle Applications, Oracle Fusion Middleware and Oracle servers and storage.

More Oracle awards of than any other Implementation partner

28

Deloitte employs more JDE practitioners than any of its competitors – employees not contractors

More JD Edwards experience leading complex global implementations than any other JD Edwards Partner

Extensive JD Edwards experience in manufacturing and distribution industries

More than 70 JDE implementations completed in Canada

JD Edwards Centres of Excellence on 5 continents

Q & A

THANK YOUDELOITTE & CANFOR