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Advanced Planning
Enabling the demand driven adaptive planning process platform
Presenter’s Name
Presenter’s Title
Safe Harbor Statement

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 decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle At-a-Glance

Globally…
#1 in Database
#1 in Supply Chain Mgmt
#1 in Customer Relationship Mgmt
#1 in Human Capital Mgmt
#1 in Industries
Founded in 1977. Headquarters in Redwood Shores,
CA with operations in 145 countries. - Retail

• 275,000 total customers • 17,700 partners - Communications


• 220,000 database customers • 60,000 employees - Public Sector
• 30,000 applications customers
• 14,000 developers - Professional Services
• 19,000 SMB apps customers
• 30,000 middleware customers • 7,000 support staff - Financial Services

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
A Changing Global Landscape
Business trends forcing you to move to demand driven adaptive planning

EVOLVING CHALLENGES IMPACTS TO SUPPLY CHAIN

Move from static demand planning to demand


Older business models are challenged
by the new decentralized global sensing and shaping
• Capture demand signals more frequently and closer to the point of
network model sale – drive to consensus demand number
• Shape your demand with profitability and capacity as key drivers
• Implement real-time and collaborative sales and operations
Introduces new challenges and planning process
focus areas:
• Globalization and global sourcing - leaner
supply networks, increased demand
Multi-tier decision support instead of enterprise plans
variability, cost volatility
• Materials and logistics are both primary constraints
• Increased customer expectations - faster • Cross-enterprise synchronized view of demand signal
product life cycles with local market encompassing both supply and demand visibility
requirements • More scrutiny of material liability
• Mergers and acquisitions, and continued
consolidation of suppliers and customers
• Increasing compliance requirements
Focus on more frequent supply network flow analysis
• Analyze optimal flows for market response, changing geo-
such as Sarbanes-Oxley
political situations, and unplanned events
• Rationalize suppliers to minimize risk
• Determine postponement strategies
• Conduct cost-to-serve and product portfolio analysis

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Demand Driven Adaptive Planning
The demand driven company runs on real-time information

Sense
Demand

Shape
Demand

Respond to
Demand

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Why Is Demand Driven Important?
Tangible benefits!

Demand Driven leaders have: 350


• 15% less inventory
300
• 17% stronger order fulfillment
• 35% shorter cash-to-cash cycle times 250
200
Which translates to:
150
• 60% better profit margins
• 65% better EPS 100
• 2-3X the ROA
50
0
Strong Weak

Perfect Order Inventory


Cash-to-Cash SCM Costs
Source: AMR Benchmark Analytix

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Cannot Enable with Disconnected Systems

CUSTOMERS SUPPLIERS

Tier 2

 Response 1:
Tier 1
Maintain excess inventory

Fax Paper Paper


 Response 2:
Reserve production capacity

Marketing Distribution Production Manufacturing


plans plans plans
 Response 3:
Expedite everything!
Sales
?
Manual
Mfg. Reconciliation Long planning cycles
Different “one”

Demand Planning
number
Supply Planning
Supply Chains built on
INVENTORY

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Better Approach
Demand driven adaptive planning process platform

CUSTOMERS SUPPLIERS
• Real-time end demand visibility
Tier 2
– Quickly sense and respond to
demand changes
Tier 1

• Shape demand and align


Portal Portal business plans quickly
Automated Exceptions
• Manage your business with
Marketing
real-time sales and operations
planning
Manufacturing

Sales • Monitor performance to drive


Demand Hub & Multi- Consensus demand and Single continuous improvement
dimensional analysis production plan holistic plan
Mfg.

Real-Time S&OP Holistic Supply Planning

Supply Chains built on


INFORMATION instead of
Embedded Analytics Inventory

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customers Achieving Significant Benefits

• Intersil reduced inventory by 50%, reduced response time for critical


products from 336 to 24 hours, 246% ROI
• Xilinx achieved a 98% delivery performance to promise date

• Alcatel eND moved to virtual supply chain model and reduced inventory by
more than 65%
• Anugrah Argon Medica improved on-time delivery to 98%

• TEC Electronics improved inventory turns by 37%

• VTech reduced order fill rate from 55% to 95%, increase inventory turns by
100%, reduced price protection claims by 40%
• Dow Chemical reduced inventories by $350M, rationalized carriers from
200 to 12
• GrafTech reduced inventories by 40% and lead times by 20%

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
How

Delivers

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning Solution
Complete, best-in-class e-business planning process platform
Trading Partners

Best in class Supply Chain Demand driven Operational Multi-Enterprise


Real-Time
Business Risk Management adaptive planning Excellence Collaboration
S&OP
Processes
Role-based Portals

Network
Design Demand Sensing
Integrated And Shaping
Postponement
Planning Optimization Holistic Preconfigured
Functions Supply Worksheets and
Promise, Workbenches
Planning
Distribute, and
Replenish
Execute to plan

Real-Time Demand Predictive Advanced


Strategic Global
Inventory Sales and Management Trade Supply Production Collaborative
Products Network
Optimization Operations and Advanced Planning and Chain Scheduling
Order
Planning
Optimization Promising
Planning Forecasting Optimization Planning

Platform Connectors Embedded


WFL Common planning Analytics
data model

Legacy
Future * E1 * EBS … * ERP

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning
Enables leading edge and transformational business processes

• Demand driven adaptive planning


– Sense demand better through advanced analytics, improved consensus forecasting,
and real-time visibility to demand events
– Shape demand by enabling real-time sales and operations planning, and promotions
planning and optimization
– Respond faster to demand through holistic supply planning, cross-enterprise
collaboration, and demand-driven VMI

• Global supply chain design and risk management


– Design your network holistically
– Account for variability in your hedging strategy
– Incorporate flexibility to enable fault tolerant supply networks

• Drive operational excellence


– Improve demand fulfillment through real-time distributed global order promising
– Improve shop floor efficiency with real-time production scheduling
– Drive continuous improvement with embedded analytics

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning
Enables leading edge and transformational business processes …

 Demand driven adaptive planning


 Global supply network design and risk management
 Drive operational excellence

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Sense Demand – Accurately Predict Demand
Improved demand management — The first step to demand driven

• Get real-time visibility to all demand signals


– Sales, marketing, manufacturing, customers, suppliers – multiple
units of measure and currencies
– Include point of sale information in real time
– Move from a regimented periodic to a continuous demand planning
process
• Leverage advanced analytics to accurately
predict demand
– Use any combination of quantitative or qualitative data to establish
your base line forecast
– High precision statistical forecasting, no statistical background
required – Superior Bayesian-Markov forecast analytics
– Forecast based on attributes and characteristics
• Get quickly to an improved consensus
number
– Use multi-dimensional analysis to adjust, allocate, and rollup
– Collaborate with internal and external constituents
– Workflow driven forecasting exceptions ensures responsiveness
– Support for flexible formulaic expressions
– Supports assumption based forecasting
– Automatically sync when working in offline mode

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Sense Demand – Accurately Predict Demand
Productivity enhancing UI
Configurable worksheets
Easily navigate display the data each
through user user needs to his job
defined hierarchies

Color coding provides


visibility to exceptions and
areas of interest

Configurable reports,
charts and graphs can
be displayed anywhere

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
DeRoyal Industries

Live on Demantra Demand Management


Company
• Leading manufacturer of medical devices
• Manufactures more than 25,000 SKUs and operating from 25 plants and office around
the world

Planning problem solved


• Aligned customer demand with supply chain planning

Unique aspects of implementation


• Integrated with JD Edwards ERP
• Supports the companies many new product introductions with improved forecast
accuracy

• Increased forecast accuracy by 5-10%


• Increased customer service levels
• Reduced inventory by 8%
CONFIDENTIAL: All capabilities
• Enabled and dates are for S&OP
a comprehensive planning process
purposes only and may not be used in any contract
Shape Demand
Understand the financial and operational impacts of promotions and sales
incentives

• What is my most profitable product mix?


4000
Past Future
3500 • What incremental volume will result from a
3000 marketing program?
Cannibalization
2500 How
Pre-• and will it impact the sales of other products?
post-effects
Cases

Competitive switching
2000
• What
Category growth were the indirect effects such as
1500 Baseline
Actual
cannibalization and consumer stockpiling?
1000
• Do I have enough material and capacity to satisfy
500

0
the promotion demand?
Period 1 Period 6 Period 11 • Where do I have excess capacity and how can I
influence demand to consume that excess?
Cannibalization • How does a marketing program at a brand or
Pre- and post-effects product family level impact a specific SKU?
Competitive switching
Category growth
Baseline
Actual

6 Period 11

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Predictive Trade Planning

Retailer /
Manufacturer Channel Partners • Coordinate trade promotions with
consumer marketing programs
Establish promotion
objectives (incl. ROI)
• Simulate scenarios to determine
achievable sales and ROI goals
Create &
approve
• Create reconciled plans at
budget corporate, account, category, and
product levels
Allocate Create
budget offer • Allocate trade funds and other
resources
Extend
Accrue as offer to Review / • Calculate anticipated sales lift
liabilities Partner
 accept offer for including in sales forecasts

Conduct activities • Enable field sales to adjust


- Manage displays projected account-level sales
- Advertise
- Sell product
forecasts

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Promotions Optimization
Select the most profitable promotion

Typical Demantra
• Accurately estimate base volume and
Cross product
Cannibalization
components of promotional lift
– Provides decomposition of incremental volume from advertising,
Pre and Post promotions, or sales incentives
Promotion – Granular lift analytics
Effect – Incremental volume lift coefficients maintained at lowest level
Incremental
Long-Term
Growth • Promotion optimization
– Simulate volume and profitability of future promotions
– Perform what-if analysis to understand the impact of varying
Competitive
promotional tactics and price points
Switching
– Optimize promotional events based on goals and constraints -
profit, revenue, units and constraints - budget, timing, margin
– Decompose lift to understand cannibalization, pantry loading,
and halo effect
Baseline Baseline

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Promotions Optimization
Drive future improvements based on past promotions performance

Attribute incremental sales Calculate promotion spend,


to individual promotions profitability, and ROI

Use metrics to determine Review completed promotions


cause of deductions to identify success factors

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – New Product Introduction
Accurately forecast demand for new products based on existing data

• Chain and view demand of comparable products


• Automatically identify comparable products based on characteristics
• Automatically detect outliers
• Align forecast based on actual demand

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Promotions Optimization

View promotion details View base, incremental volume,


and lift decomposition history, projected, and
in a single screen promotion Gantt in a single
screen

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Welch’s

Live on Demantra Promotion Planning

Company
• Leading producer of juices and jams

Planning problem solved


• Promotion planning synchronized with demand planning

Unique aspects of implementation


• Sales reps drive forecasting process from trade promotion planning process
• What-if scenario planning enables sales reps to test promotion before selecting it

• Increased forecast accuracy at SKU level


• Enables trade promotion planning to be integrated with RT S&OP
• Reduced supply chain costs
CONFIDENTIAL: All capabilities
• Improved HQand anddates are for
sales planning productivity
planning purposes only and may not be used in any contract
Shape Demand – Real-Time S&OP
Make demand and supply decisions simultaneously

Marketing
Strategic plans Profitability

Promotional and Finance


Service levels
volume plans
Strategic
Sales
Tactical
Demand plans Decisions Inventory levels

Product Promotion
Capacity plans
effectiveness
Development
Executives
Phase in and phase
Plan accuracy
out products Manufacturing

• Identify financial and revenue goals • Review supply and demand plans

• Analyze demand and develop sales • Develop constrained plan


forecast • Monitor results and respond to
• Synchronize plan across Finance, deviations
Sales, Marketing, and Supply Chain • Create promotions and incentives
• Determine potential market variables to shape demand and close gaps

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Real-Time S&OP
Leverage best-in-class Sales and Operations Planning from Demantra

Typical With Oracle Demantra Real-Time S&OP


• A single, high precision forecast generated
• Multiple, low accuracy forecasts and
from very granular data more frequently
departmental plans
• Consider all your production and logistics
• Execution to multiple plans with
constraints when determining your supply plan
conflicting goals
• Determine the most profitable use of your
• Critical planning done from isolated
bottleneck resources
spreadsheets

• Many faces to the customer


• One-number plan monitored and maintained
collaboratively
• Stale reports used to monitor KPIs
• All planning done from one source of truth
• Missed service and revenue targets
• All customer facing programs (VMI, CPFR,
• Demand decisions made before supply allocations) managed in the S&OP process
impacts are evaluated
• Alerts generated from predictive monitoring
• Profitability implications are not
considered • Respond quickly to prevent missed goals

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Real-Time S&OP
Leverage best-in-class Sales and Operations Planning from Demantra

• Analytics-based demand management


– Capture all demand data in a central place
– Use analytics and intelligence to develop a bottom-up forecast
– Move to weekly forecasting
• Workflow-driven collaborative planning
– Enable a workflow driven multi-disciplinary collaborative process that
includes Manufacturing, Finance, Sales, Marketing, and external
stakeholders
– Configurable planning platform adapts to business process
– Web-based portal support internal and external collaboration
• Profitably balance supply, demand, and budgets
– Make allocation decisions while trading off service levels and cost
– Balance needs of many customers in different channels
– Examine throughput on the most critically constrained resources and
profitability by product family
• Exception-based performance monitoring
– Adjust demand or supply plan as conditions change
– Drive continuous improvement
– Create incentives and promotions to close gaps
• Decisions drive ERP and supply chain execution
– Integrate with EBS, E1, third party ERP

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Real-Time S&OP
Leverage best-in-class Sales and Operations Planning from Demantra

All the detailed Measure internal inputs


All the detailed Measure internal inputs
information you need and
information you need and
to make the provide incentives to
to make the provide incentives to
RIGHT generate better inputs
RIGHTdecisions
decisions generate better inputs

Automatically detect Improve demand visibility


Automatically detect Improve demand visibility
outliers while with
outliers while
forecasting withcustomer
customer
forecastingfor
fornew
new collaboration
collaboration
product
productintroductions
introductions

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
VTech

Live on Demantra Real-Time S&OP

Company
• $1 billion in revenues, operating worldwide
• Manufacturing plants in China
• Leading provider of cordless phones and electronic children’s toys

Planning problem solved


• Real-time S&OP process driven by one demand number

Unique aspects of implementation


• Generates forecasts from customer POS data
• Compares customer and generated forecasts and routes exceptions to planner, sales
representative, or customer

• Increased order fill rate from 55% to 95%


• Increased inventory turns by 100%
• Reduced price protection claims by 40%
CONFIDENTIAL: All capabilities
• Reduced and dates
logistics are by
costs for planning
65% purposes only and may not be used in any contract
Respond – Holistic Supply Planning
One solution for supply chain, distribution, and manufacturing planning

Suppliers Transportation Manufacturing Transportation Distributors Transportation Customers

• Supply Chain and Distribution Planning • Manufacturing Planning


– Product family and item level planning – Sequence dependent setups/changeovers
– Alternate components, resources, processes, suppliers, – Simultaneous resources
facilities, and ship methods – Batch resources
– End-item substitution – Alternate resources
– Critical items and resources; aggregate resources – Minimum transfer quantities
– Bills of distribution and transfer rules – Complex, network routings
– Circular sourcing, load consolidation, allocation rules – By-products and co-products
– Include customer and supplier facilities – Line rates and takt times

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Respond – Holistic Supply Planning
Complete, best-in-class e-business planning process platform

• Make better decisions faster


– Level load
– Choose alternatives
– Make/buy decisions
– Late demand diagnosis

• Out-of-the-box optimization
– Use costs or decision rules
– Enforce due dates or capacity

• Start quickly
– Planners define the problem to solve
– Flexible defaulting

• Reduce planner workload


– Personal queries
– Automated exception management

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Adaptable – Segment the Problem As Needed

One holistic plan for distributors


• Adapts to your current
Supply chain planning
for all Organizations business model
– Single plan or multiple plans
One DPP, multiple MRP
• Evolve planning model at your
DPP for all Distribution Centers
own pace
– Re-configure easily by modifying
plan options instead of re-
MRP Org 1 MRP Org 2 MRP Org 3 implementing or re-modeling
Multiple Distribution Plans

MPS for BU 1 MPS for BU 2


• Multiple models can co-exist

MRP MRP MRP MRP MRP MRP


Org 1 Org 2 Org 3 Org 4 Org 5 Org 6

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples

Live on Advanced Supply Chain Planning

• Interceramic • Knowles Electronics


– 91 Distribution centers, stores, and – Global planning instance
franchises  2 Locations in the US
– 4 Plant warehouses  1 Location in Europe
– 7 Manufacturing plants  5 Locations in Asia
– 3000 BOMs, 100,000 SKUs – Mixed mode manufacturing
– Run DRP, constrained MPS, and raw  Make to stock
material MRP  Make to order
 Configure to order
Manufacturing Distribution
Suppliers plants chain Customers – Global order promising against 1 central plan

Constrained DRP plan


SC plan

Collaborative
Constrained
MPS plan for demand Knowles Electronics has
all facilities plan reduced inventory by $1M per
month after implementing
Inventory Advanced Planning
postponement
plan

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Respond – Multi-Enterprise Collaborative Planning
Cross-enterprise synchronized view of supply and demand

CONTRACT
CUSTOMER YOU SUPPLIER
MANUFACTURER • Plan your extended supply chain
– Share forecasts and supply commits with customers
Consensus and suppliers
Demand forecast
‘systems’ – Get visibility to supplier capacity
– Reallocate key components
Supply – Make alternate sourcing decisions
forecast Demand ‘boards’
Run plan
Run plan
• Reduce inventory cost and improve
fulfillment
– Suppliers manage your inventory
Supply commit
‘boards’
– Manage your customers’ inventory

Supply commit ‘memory’ • React quickly to supply chain


Forecast ‘memory’
exceptions
– Waterfall analysis
– User-configurable exceptions
– Automated exception handling via workflow

Optional

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Respond – Demand Driven VMI
Real-time POS driving adaptive forecasting and replenishment

CUSTOMER YOU SUPPLIER

VMI Agreement VMI Agreement VMI Agreement VMI Agreement


(with customer) (with supplier)
Check
Send consumption inventory
advice status

Generate ship-to
level forecast and
replenishment plan

Receive items Receive items Ship items

Ship items
Pay on receipt/use Pay on receipt/use

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Alcatel eND

Live on ASCP, DP, and CP since 2002

Company
• Global leader in telecommunications and Internet technology; Alcatel is a global 500 company that
operates in 130 countries
• Designs and builds IP Communications products and solutions that supports the borderless
enterprise

Planning problem solved


• Enabled 100% virtual enterprise and implemented direct order fulfillment mode

Unique aspects of implementation


• Implemented in less than 1 year while taking company 100% virtual
• Maintains >60 DOS supply chain visibility on Oracle

• Reduced inventory by more than 65%


• Reduced material liability by 80%
• Reduced planning cycle time by 75%
CONFIDENTIAL: All capabilities
• Projected and dates
annual are forof
savings planning
$15Mpurposes only and may not be used in any contract
Oracle Advanced Planning
Enables leading edge and transformational business processes …

 Demand driven adaptive planning


 Global supply network design and risk management
 Drive operational excellence

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Design Resilient Supply Networks
Enable agile supply networks, aligned with your postponement strategy

• Answer the tough questions:


– What impact do changing costs have on my sourcing
strategy?
– What is the real total cost of outsourcing including the
impact on working capital and cash flow?
– Where should my point of postponement be?
– Where should I hold how much inventory, when?
– How could I react to a disruption in supply due to
unforeseen events? Should I multi-source?
– What are my most profitable channels or products to
invest in?
– What is the impact of mergers and acquisitions on my
supply network and capital asset budget?

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Design Resilient Supply Networks
Manage supply chain risk with profitability and postponement in mind
Design supply chains that are resilient
• Network modeling and alternates
• Sourcing strategy
• Cost modeling
• Asset rationalization
• Safety stock strategy
• What-if simulations
• Risk related to unplanned events

Network structure
Strategic Network Optimization (SNO) Sourcing rules
Inventory Optimization (IO)
• Network modeling and alternates
Leverage resiliency in your supply
Suppliers Modelresponses
chain for• tactical
and CMs distribution of variability
• What-if simulations Mfg and Dis facilities (demand, supply, lead time)
• Cost modeling Shipment methods • Budget and capacity constraints
• Asset rationalization • Time-phased min,
• Risk related to max, and target
unplanned events service levels
Inventory policies
Target inventory levels
Identification of point of postponement

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Design Your Network Holistically
It’s important to do this more frequently

• Key to perform more frequently


– Merger and acquisitions are more common
– Rapidly changing fuel costs
– Outsourcing strategies more prevalent
– Need to consider competitor strategies when introducing new products
• Consider the entire global virtual network
– All manufacturing and distribution facilities including outsourced operations
– All geographies and markets
– All sources and modes of transport
• Evaluate sourcing strategies in the context of net
delivered cost
– Analyze the effect on working capital and cash flow of increased lead times
due to outsourcing and off-shoring
– Determine single versus multi-sourcing strategy
– Consider the increased buffer stock needed to hedge against increased
variability
• Rationalize your asset strategy for profitability
– Determine right number of assets in supply chain and best locations
– Consider all costs: opening and closing costs, inflows from salvage, fixed
and variable costs

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Consider All Costs That Impact The Decisions

Suppliers Transportation Manufacturing Transportation Distributors Transportation Customers

Costs ($): Real and Penalty , Variable and Capacity Constraints (Hard and Soft)
Fixed
• Supply constraints
• Transportation (inbound, outbound) • Manufacturing constraints
• Storage and inventory carrying costs • Transportation constraints
• Fixed costs (startup, shutdown, operating costs) • Storage and inventory constraints
• Material supply • Target service levels
• Manufacturing and labor • Dynamic safety stock
• Price (for profit optimization)

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Account For All Variability
Take all variability and realities of your supply chain into consideration

• Make better inventory


investment decisions by
including variability
Demand Variability – Demand variability
– Supply variability
– Lead time variability
 Supplier lead time variability
Least Risk  Manufacturing lead time variability
Service
Lead Time Inventory  In-transit lead time variability
Investment
Levels and
Variability
Strategy Budgets
• Account for the realities of your
supply chain
– Capacity and lead time constraints
– Alternate sources
Supply Variability – Inventory budget constraints
– Fulfillment lead times
– Varying service levels per product, customer,
geography

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Account For Variability
Make profitability decisions based on total net delivered cost

Mexico Plant US DC Regional


US DCDC Customers
Regional Customers

Transfer LT = 3 d + 1 d Transfer LT = 4d

Processing LT = 4 d

China Plant US DC Regional


US DCDC Customers
Regional Customers

Transfer LT = 30 d + 6 d Transfer LT = 4d

Processing LT = 4 d

• Local supplier: more dependable, shorter lead time Less hedge inventory
• Offshore supplier: increased lead time and variability More hedge inventory
• Increased inventory carrying cost may offset savings in total landed cost

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Enable Fault Tolerant Supply Networks
Simulate planned and unplanned events

Suppliers Transportation Manufacturing Transportation Distributors Transportation Customers

Simulate unplanned events Determine risk mitigation strategies


• Easily specify potential unplanned events and
• Failures: suppliers, plants, warehouses, lines,
evaluate their impact on their supply chain
transport
• Understand the cost and disruption caused by
• Costs: increases and decreases in costs of labor or
these events
resources
• Determine the best way to mitigate the impact at
• Prices: increases and decreases in price due to
lowest cost
competitive activity, market conditions, or currency
• Incorporate contingency plans into the standard
fluctuations
planning process to ensure quick response
• Natural disasters: Hurricanes, port closures,
earthquakes

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples

Live on Strategic Network Optimization, Inventory Opt.

Pillsbury Foods Agilent Technologies


• Project to rationalize distribution centers during • Deployed for one product family (700 products, 5000 items)
merger of Pet Foods and Pillsbury Foods since May 2006
• Reduced warehouses from 23 to 9 • Multi-echelon supply chain network (14 levels deep)
• Held service levels constant despite reduction in • Improved forward visibility and understanding of impact of
facilities inventory on service level
• Significantly reduced transportation costs • Part of S&OP process: quantitative understanding of
inventory investment to achieve sales upside
Alcoa Primary Metals • 20-30% improvement in service level for the same
inventory investment
• Profit optimized mix of products to produce on
bottleneck equipment Panduit
• Significant reductions in transportation costs • Plans inventory at warehouses to meet service level
• Improved management of risks due to commitments to customers (48 hour fulfillment lead time)
commodity market price fluctuations • Multi-echelon inventory planning reduces overall inventory
• Increased profitability of products produced in investment, improved visibility of buffer inventory in the
smelters supply chain
• Anticipates further reduction in inventory when including
manufacturing facilities to leverage opportunities to
postpone inventory holding to shared raw materials and
sub-assemblies

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning
Enables leading edge and transformational business processes …

 Demand driven adaptive planning


 Global supply network design and risk management
 Drive operational excellence

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Drive Operational Excellence
Better execute to demand signals and measure improvements

Sense and Shape Demand

Demand Network, inventory policies Demand Production plan, actual orders


Network Design and Risk Management Operational Excellence
Built
capacity

Target
service
levels

• Improve demand fulfillment through real-time distributed global order promising


• Improve shop floor efficiency with real-time production scheduling
• Drive continuous improvement with embedded analytics

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Real-Time Distributed Order Promising
Improve demand fulfillment through 24x7 constraint based order promising

• Promise orders based on:


– Material availability
– Manufacturing capacity
– Transportation capacity
– Supplier capacity

• Global statement of availability


– All facilities, material, resources, and suppliers

• Drive fulfillment decisions based on


demand and supply plans
– Promise based on optimal supply decisions

• Allocate available supply and capacity


– By channel, customer, or product
– Priority and stealing rules

• Manage commitments to key customers


– Re-schedule and re-sequence your backlog

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples

Live on Global Order Promising

Agilent Technologies Cisco


• Performing multi-level capable-to-promise • Every order for every router sold worldwide goes
• Greatly reduced expedite orders with accurate through GOP
order promising dates • Complex order promising problem
• Moved from batch to online order promising – Product and channel allocation rules
– Extensive use of ship sets in an assembly to order
• Increased customer satisfaction of key strategic environment
customers by using allocated ATP – High volumes
• 24x7 worldwide order operation with ‘zero
downtime’ CTP
• Meet customer requirement by utilizing Intersil
substitute components • Using material and resource constraints (CTP)
across virtual supply chain
• Sales people promise orders online in seconds

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Real-Time, Interactive Production Scheduling
Improve shop floor efficiency

• Maximize production throughput


– Optimize your shop floor; detect floating bottlenecks
– Reduce WIP inventory by rapidly synchronizing multi-stage
production schedules
– Account for complex setup and change-over scenarios,
machine breakdown, supply and resource shortages, co- and
by-products, alternate resources, routings, and operations

• Model all elements of your shop floor


– Work centers, resources and resource groups, shift capacity,
operating costs
– Lead times: setup, change-over, and run
– Sequence dependent setups, contiguous operations,
production campaigns, batching

• Implement most optimal schedule –


seamless integration with Oracle EBS
– Output best schedule for process (OPM), discrete MFG), and
semi-conductor (OSFM) manufacturing

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples

Live on Production Scheduling

GE Energy Toyota Racing Division (TRD)


• Improved schedule accuracy and confidence by • Reduced schedule creation from 3 weeks to < 2 hours
reflecting real time shop floor constraints • Support re-planning based on constant design changes
• Finite machine, crew and tool resource during production
constraints • Respect for crew specialization
• Floating resource bottlenecks due to demand • Optimized use of un-manned operations during
mix variability downtime
• Operation sequence dependent setup times
• Operation buffering to avoid intermittent glue
gun usage
Nampak
• Reduction in time lost due to sequence dependent
• Alternate resources with preferences
press setups for container styles and sizes
• Simulations of hot order impact on existing
schedule
• Complex demand priorities

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Embedded Supply Chain Analytics
Drive continuous improvement - Closed-loop performance management

• Drive continuous improvement


– Enable plan-execute-measure-improve process

• Proactive intelligence when you


need it
– Role-based task-oriented dashboards
– Out-of-the-box key performance indicators and
reports
– Summary to detailed transaction drilldown built in

• Drive off a single source of truth


– Global visibility to all performance metrics and
enterprise targets
– Analysis and comparison of performance trends

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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Momentum

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Ongoing Momentum, Large Install Base

• 1500+ Advanced Planning customers


– Both new installs and upgrades, several legacy system deployments
– 50% same instance, 50% distributed architecture
– Broad use of modules
– Worldwide deployments
 US, Brazil, Mexico, UK, France, Italy, Spain, Switzerland, Belgium, Turkey,
Israel, South Africa, Singapore, Japan, India, Taiwan, Indonesia, Australia,
New Zealand, Korea, China, Malaysia, Netherlands, Denmark, …
– Large-scale, complex deployments across all industries

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
A Few Live Customers …
• Intersil – ASCP, DP, GOP • DeRoyal Industries – Demantra DM
• Fuji Xerox Asia Pacific – ASCP, DP • Applica – Demantra DM, ASCP
• Agere Systems – ASCP, DP, CP, GOP • Welchs – Demantra PTP, TPO
• NCR – ASCP, DP • Alcoa – ASCP, DP, GOP, SNO
• Namitech – ASCP, GOP • Acuity Lighting – Demantra DM, ASCP
• Emerson – ASCP, DP • Johnson & Johnson – SNO
• VTech –Demantra RT S&OP • Canon Virginia – ASCP, CP
• BMW – SNO • GE Energy / Power Systems – ASCP, GOP, PS
• Xilinx – ASCP • GE Transportation Avionics – ASCP
• Sony SNC – ASCP, DP, GOP • Motorola BCS – ASCP, DP, GOP
• Agilent – ASCP, GOP, DP, IO • Avago – ASCP, DP, GOP
• Panduit – IO • Qualcomm – ASCP, DP, CP
• Dover El. - Knowles Electronics – ASCP, GOP • McGraw-Hill – ASCP, DP
• Matsushita Panasonic – ASCP
• Alcatel eND – ASCP, DP, CP
• Honeywell S&C – ASCP, DP
• Intersil – ASCP, DP, GOP
• Embraer – CP, DP
• Cervecería Quilmes – SNO
• Tube Investments – ASCP
• GrafTech International – SNO
• Toyota Racing Division – PS
• Boeing – ASCP
• Eaton Trucks – ASCP
• Anugra Argon Medica – ASCP, DP
• Kyocera – ASCP
• Cochlear – ASCP, DP
• Nampac – PS, SNO
• Pillsbury Foods – SNO
• Inventec – ASCP, GOP, CP
• Dow Chemical – SNO, PS

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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Summary

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning Solution
Complete, best-in-class e-business planning process platform
Trading Partners

Best in class Supply Chain Demand driven Operational Multi-Enterprise


Real-Time
Business Risk Management adaptive planning Excellence Collaboration
S&OP
Processes
Role-based Portals

Network
Design Demand Sensing
Integrated And Shaping
Postponement
Planning Optimization Holistic Preconfigured
Functions Supply Worksheets and
Promise, Workbenches
Planning
Distribute, and
Replenish
Execute to plan

Real-Time Demand Predictive Advanced


Strategic Global
Inventory Sales and Management Trade Supply Production Collaborative
Products Network
Optimization Operations and Advanced Planning and Chain Scheduling
Order
Planning
Optimization Promising
Planning Forecasting Optimization Planning

Platform Connectors Embedded


WFL Common planning Analytics
data model

Legacy
Future * E1 * EBS … * ERP

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning

Enables leading edge and transformational business processes …

 Demand driven adaptive planning

 Global supply network design and risk management


 Drive operational excellence

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Key Takeaways
Low risk, high value transition to a best-in-class planning solution

• Proven, best in class planning solution


– Many live customers on multiple products, across a wide variety of industries
– Large-scale, complex, worldwide deployments
– For Planners, Not Programmers - Out-of-the-box optimization and predictive analytics
– Superior architecture - scalable, database-driven demand and supply planning; common data model
across all engines, shared with execution

• Provides significant value


– Enables real-time demand driven dynamic supply planning
– Enables customers to implement best practices such as RT S&OP, VMI, CPFR, Supply Chain Risk
Management, Inventory Postponement
– Proven reductions of inventory and increases in forecast accuracy, customer service levels

• Progress at your own pace, transition gradually


– Quickly start with the most important problem
– Integrated platform enables crawl-walk-run approach
– Leverage out-of-the-box integration to rapidly extend planning footprint

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

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