S upply Chain M anagement Nick Arrowsmith Supply Chain Management EMEA e-Business Suite Team.
29
Oracle Supply Chain Business Flows Develop Develop Concept to Release Concept to Release Plan Plan Forecast to Plan Forecast to Plan Procure Procure Procure to Pay Procure to Pay Manufactur Manufactur e e Demand to Build Demand to Build Fulfi Fulfi ll ll Order to Cash Order to Cash
-
Upload
conrad-kelley -
Category
Documents
-
view
214 -
download
0
Transcript of S upply Chain M anagement Nick Arrowsmith Supply Chain Management EMEA e-Business Suite Team.
Oracle Supply Chain Business Flows
DevelopDevelop Concept to ReleaseConcept to Release
PlanPlan Forecast to PlanForecast to Plan
ProcureProcure Procure to PayProcure to Pay
ManufactureManufacture Demand to BuildDemand to Build
FulfillFulfill Order to CashOrder to Cash
Forecasting vs Reality
Issues
Metal TubeSupplier
Bikes R US
Warehouse Shops Customer
Clothsupplier
TyreSupplier
SpokeSupplier
FoamSupplier
SeatSupplier
WheelSupplier
Traditional Planning Process
Customer Forecast Supplier Capacity
Tier 2
Tier 1
Marketing Forecast
Sales Forecast
Mfg.Forecast
Distribution Plans
Production Plans
ManufacturingPlans
t = weeks
?
Business Impact
Planners
InaccurateForecast
InaccurateOrder
Promising
PoorOrder
Tracking
IncorrectProduct Mix
ExpensiveProducts
HighInventory
ExpediteCosts
PremiumPurchase
Costs
IdleResources
PoorSupplier
Utilization
LongPlanningCycles
ManualProcesses
Limited Collaboration and Limited Performance Management
C Executives
ServiceLevel
Opportu-nities
EfficiencyInventory
CostRevenue
AssetUtilization
Oracle’s Advanced Planning Solution
SuppliersCustomers
Marketing Forecast
Sales Forecast
Mfg.Forecast
Consensus
Forecast
ProcessAutomatio
n
t = hours
Single Plan
Portal
Collaborative Planning
Demand PlanningAdv. Supply Chain Pln.Inventory OptimizationGlobal Order Promising
Collaborative Supply Plan
Collaborative Demand Plan
Internet
Portal
ExceptionsExceptions
Demand Planning Process Supply Planning Process
Business Impact
C Executives
ServiceLevel
Opportu-nities
EfficiencyInventory
CostRevenue
AssetUtilization
Planners
ConsensusForecast
More accurateOrder
Promising
BetterProduct Mix
CheaperProducts
InventoryPostponement
VMICMI
BetterScheduling
Better Supplier
Utilization
FasterPlanningCycles
ProcessAutomation
Improved Collaboration and Integrated Performance Management
BetterVisibility
BetterSourcing
Supply Chain Intelligence
Demand Planning
Inventory Optimization
Supply Chain and Manufacturing Planning
Manufacturing Scheduling
Transportation Planning*
Collaborative Planning
SCI
DP
IO
Deployment Planning** ASCP
Global Order Promising GOP
MS
TP
CP
ASCP
Sales and Operations Planning
SC EXCEPTION MGTSC Exception Management CP
From short-term to long-term
Fro
m d
eta
il t
o s
um
ma
ry
Oracle Advanced Planning
* Coming in 11i.10 ** Coming in 11i.10+
Supply Chain Intelligence
Demand Planning
Inventory Optimization
Supply Chain and Manufacturing Planning
Manufacturing Scheduling
Transportation Planning*
Collaborative Planning
SCI
DP
IO
Deployment Planning** ASCP
Global Order Promising GOP
MS
TP
CP
ASCP
Sales and Operations Planning
SC EXCEPTION MGTSC Exception Management CP
From short-term to long-term
Fro
m d
eta
il t
o s
um
ma
ryOracle Advanced Planning
Inventory Optimisation
Metal TubeSupplier
Bikes R US
Warehouse Shops Customer
Clothsupplier
TyreSupplier
SpokeSupplier
FoamSupplier
SeatSupplier
WheelSupplier
Oracle’s Inventory Optimization Solution
Inv
en
tory
In
ve
stm
en
t
Service Level
10 30 50 75 80 85 90 95 100
Higher Service Level
LowerInventoryCost
WithoutOracle
WithOracle
Supply Chain Intelligence
Demand Planning
Inventory Optimization
Supply Chain and Manufacturing Planning
Manufacturing Scheduling
Transportation Planning*
Collaborative Planning
SCI
DP
IO
Deployment Planning** ASCP
Global Order Promising GOP
MS
TP
CP
ASCP
Sales and Operations Planning
SC EXCEPTION MGTSC Exception Management CP
From short-term to long-term
Fro
m d
eta
il t
o s
um
ma
ryOracle Advanced Planning
DRAFT
Supply Chain & Manufacturing PlanningReduce your Supply Chain Planning Cycle Time
Internet
Short-term planning
Long-term planning
Semicon
Process
Discrete
Flow
Project
Plants
Warehouses
Customers
Suppliers
Faster and better planning cycles– Holistic planning and optimization– Telescoping granularity
For planners, not programmers– Out of the box optimization
Flexible manufacturing support– Process, discrete, flow, project, semi-
conductor
Scalable and reliable– Database centric planning
Supply Chain Intelligence
Demand Planning
Inventory Optimization
Supply Chain and Manufacturing Planning
Manufacturing Scheduling
Transportation Planning*
Collaborative Planning
SCI
DP
IO
Deployment Planning** ASCP
Global Order Promising GOP
MS
TP
CP
ASCP
Sales and Operations Planning
SC EXCEPTION MGTSC Exception Management CP
From short-term to long-term
Fro
m d
eta
il t
o s
um
ma
ryOracle Advanced Planning
Supply Chain Intelligence
Demand Planning
Inventory Optimization
Supply Chain and Manufacturing Planning
Manufacturing Scheduling
Transportation Planning*
Collaborative Planning
SCI
DP
IO
Deployment Planning** ASCP
Global Order Promising GOP
MS
TP
CP
ASCP
Sales and Operations Planning
SC EXCEPTION MGTSC Exception Management CP
From short-term to long-term
Fro
m d
eta
il t
o s
um
ma
ryOracle Advanced Planning
Supply Chain Intelligence
Demand Planning
Inventory Optimization
Supply Chain and Manufacturing Planning
Manufacturing Scheduling
Transportation Planning*
Collaborative Planning
SCI
DP
IO
Deployment Planning** ASCP
Global Order Promising GOP
MS
TP
CP
ASCP
Sales and Operations Planning
SC EXCEPTION MGTSC Exception Management CP
From short-term to long-term
Fro
m d
eta
il t
o s
um
ma
ryOracle Advanced Planning
Example Live Customers Intersil - ASCP, DP, GOP Fuji Xerox Asia Pacific - ASCP, DP Perkin Elmer - ASCP, GOP NCR - ASCP, DP Namitech - ASCP, GOP Toshiba - ASCP, DP Xilinx - ASCP UPS Logistics - ASCP, GOP Agilent - ASCP, GOP, DP Mykrolis - ASCP Knowles Electric - ASCP, GOP Panasonic - ASCP Honeywell S&C - ASCP, DP Embraer - CP, DP Tube Investments - ASCP Eaton Trucks - ASCP Kyocera – ASCP Brandt – ASCP GOP France Telecom – ASCP Melexis – ASCP, DP, OSFM
Cisco - ASCP, GOP Alcoa - ASCP, DP, GOP Canon Virginia - ASCP GE Power Systems - ASCP, GOP GE Aircraft Engines - ASCP Silgan Plastics - ASCP Qualcomm - ASCP McGraw-Hill - ASCP, DP Alcatel eND - ASCP, DP, CP Cabot Microelectronics - DP Mango - CP Rockford - ASCP, DP Quantum - ASCP, DP Boeing - ASCP Anugra Argon Medica - ASCP, DP Cochlear - ASCP, DP Hitachi Construction – ASCP Carel – ASCP Synventive – ASCP MMK - ASCP
Example Live Customers (EMEA) Intersil - ASCP, DP, GOP Fuji Xerox Asia Pacific - ASCP, DP Perkin Elmer - ASCP, GOP NCR - ASCP, DP Namitech - ASCP, GOP Toshiba - ASCP, DP Xilinx - ASCP UPS Logistics - ASCP, GOP Agilent - ASCP, GOP, DP Mykrolis - ASCP Knowles Electric - ASCP, GOP Panasonic - ASCP Honeywell S&C - ASCP, DP Embraer - CP, DP Tube Investments - ASCP Eaton Trucks - ASCP Kyocera – ASCP Brandt – ASCP GOP France Telecom – ASCP Melexis – ASCP, DP, OSFM
Cisco - ASCP, GOP Alcoa - ASCP, DP, GOP Canon Virginia - ASCP GE Power Systems - ASCP, GOP GE Aircraft Engines - ASCP Silgan Plastics - ASCP Qualcomm - ASCP McGraw-Hill - ASCP, DP Alcatel eND - ASCP, DP, CP Cabot Microelectronics - DP Mango - CP Rockford - ASCP, DP Quantum - ASCP, DP Boeing - ASCP Anugra Argon Medica - ASCP, DP Cochlear - ASCP, DP Hitachi Construction – ASCP Carel – ASCP Synventive – ASCP MMK - ASCP
Oracle Supply Chain Business Flows
DevelopDevelop Concept to ReleaseConcept to Release
PlanPlan Forecast to PlanForecast to Plan
ProcureProcure Procure to PayProcure to Pay
ManufactureManufacture Demand to BuildDemand to Build
FulfillFulfill Order to CashOrder to Cash
Critical Activity in the Supply Chain
• Purchasing Transactions
• Price Negotiations
• Supplier Relationships
• Contract Management
Raw Mat, Assemblies, Finished Goods
Orders, Payments
InformationInformation (forecasts, schedules, availability, inquiries…)(forecasts, schedules, availability, inquiries…)
Quotes, Notifications, Invoices
CustomerCustomerOEMOEMDistributorDistributor/ Retailer/ Retailer
ComponentComponentManufacturerManufacturer
SupplierSupplier
SupplierSupplier
SupplierSupplier
Why do we Care?
Reduce Sourcing Costs
Reduce Item Costs
Reduce Requisition Processing Costs
Reduce Payment Fees
Reduce Collaboration Costs
Reduce Processing Time
Goal: Save 10-20% on Total PurchasingGoal: Save 10-20% on Total Purchasing CostsCosts
Procurement Goals
Lower Cost of Materials and ServicesStreamline Sourcing Process
Source for Best Value
Lower Cost of Materials and ServicesStreamline Sourcing Process
Source for Best Value
Optimize Supplier RelationshipsMonitor and Improve Supplier Performance
Buyer/Supplier Business Process Integration
Optimize Supplier RelationshipsMonitor and Improve Supplier Performance
Buyer/Supplier Business Process Integration
Lower Process CostsEliminate Paper-Based Processing
Automate Complete Procurement Cycle
Lower Process CostsEliminate Paper-Based Processing
Automate Complete Procurement Cycle
Analysts share our view …
Procurement will be key to survival– With the global economy slipping into a
recession, cost cutting has become job one for most businesses. After reducing headcount and streamlining internal processes, companies are now looking to trim the fat and inefficiencies from their extended network of supplier partners. Procurement and Supply Chain Management are at the head of this charge.
Aberdeen Group – December 2001
‘ONLY’ Oracle 11i Core Purchasing
Pricing Pricing AgreementsAgreements
PurchasePurchase
ReceiveReceive
PayPay
SuppliersSuppliers
Phone / FaxDesign &
Engineering
Services
Planning & Scheduling
DemandDemand
Enterprise Indirect
PurchasingPurchasing
• Inefficient, manual interactions
• Many paper-based requisitions
• Time-consuming, off-line negotiations
• Fragmented Intelligence
Pricing Pricing AgreementsAgreements
SuppliersSuppliers
Phone / FaxDesign &
Engineering
Services
Planning & Scheduling
DemandDemand
Enterprise Indirect
PurchasingPurchasing
Electronically - structured content and workflow approvals
Catalogs
Approval
The Opportunity: Oracle iProcurementReduce maverick purchasing by 50%
PurchasePurchase
ReceiveReceive
PayPay
Pricing Pricing AgreementsAgreements
SuppliersSuppliers
Design & Engineering
Services
Planning & Scheduling
DemandDemand
Enterprise Indirect
PurchasingPurchasing
Catalogs
Approval
OrdersChanges
…
Portal
Collaborate
The Opportunity: Oracle iSupplier PortalReduce calls for basic supplier inquiries by up to 75%
Online access to suppliers for all questions and transactions
PurchasePurchase
ReceiveReceive
PayPay
Pricing Pricing AgreementsAgreements
SuppliersSuppliers
Design & Engineering
Services
Planning & Scheduling
DemandDemand
Enterprise Indirect
PurchasingPurchasing
Catalogs
Approval
Portal
Collaborate
SourcingSourcing RFx
Auction
Offers
Quotes
Bids
Counteroffers
Optimize supplier contracts
The Opportunity: Oracle SourcingReduce negotiation cycle times 25-30%
PurchasePurchase
ReceiveReceive
PayPay
OrdersChanges
…
Pricing Pricing AgreementsAgreements
SuppliersSuppliers
Design & Engineering
Services
Planning & Scheduling
DemandDemand
Enterprise Indirect
PurchasingPurchasing
Catalogs
Approval
Portal
Collaborate
SourcingSourcing RFx
Auction
Offers
Quotes
Bids
Counteroffers
Optimize supplier contracts with automated sourcingIntegrated IntelligenceIntegrated Intelligence
The Opportunity: Purchasing Intelligence (DBI)Identify Improvement Opportunities easier
Improve Processes, Supply Base
PurchasePurchase
ReceiveReceive
PayPay
OrdersChanges
…
Oracle Supply Chain Business Flows
DevelopDevelop Concept to ReleaseConcept to Release
PlanPlan Forecast to PlanForecast to Plan
ProcureProcure Procure to PayProcure to Pay
ManufactureManufacture Demand to BuildDemand to Build
FulfillFulfill Order to CashOrder to Cash
