1. oracle e-business suite supply chain release 12.1 delivering value in uncertain times

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Oracle E-Business Suite Supply Chain Release 12.1Delivering Value in Uncertain Times

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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.

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Delivering Value in Uncertain Times

E-Business Suite SCM Release 12.1

Rapid Value Solutions

Agenda

Customer Momentum

Key Takeaways

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CRISISCRISIS (krī'sĭs) - a crucial or decisive point or situation; a turning point.

Markets Gripped by Extraordinary Uncertainty

wei ji

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dangerdanger opportunityopportunity

Downturns can more than double the likelihood that a firm significantly changes its industry ranking. In addition, firms that make it into the top quartile during a downturn sustain their premium for an average of three years.

Difficult and volatile conditions wipe out some organizations – yet others prosper because they understand how to exploit the fact that old patterns vanish and new ones emerge.

Source: Corporate Executive Board, 2008Source: Mckinsey, 2008

Opportunity to Improve Competitive Advantage

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Supply Chain Strategy For Release 12.1

Focus on Opportunities to Focus on Opportunities to AchieveAchieve Rapid Return Rapid Return TodayToday

Invest in Ways to Invest in Ways to Standardize and Standardize and Simplify Simplify with a Global Business with a Global Business PlatformPlatform

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ProcurementProcurement

Customer &Customer &Master DataMaster DataManagementManagement

HumanHumanCapitalCapital

Supply Supply ChainChain

FinancialsFinancials

ApplicationsApplicationsTechnologyTechnology

E-Business Suite

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Focused on Financials and TechnologyOracle E-Business Suite

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FinancialsFinancials


E-Business Suite 12.1

& Projects& Projects

Substantial Value in Every AreaOracle E-Business Suite

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Agenda

Customer Momentum

Key Takeaways

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Optimize Value Creation What’s New in Supply Chain Management





FinancialsFinancials& Projects& Projects


E-Business Suite12.1

Results:

Complete value chain planning - from demand sensing to after market service

Optimize manufacturing operations and asset utilization

Increase order accuracy and logistics efficiency

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Value ChainValue ChainPlanningPlanning

LogisticsLogistics

ManufacturingManufacturing

Order Order FulfillmentFulfillment

ALM &ALM &ServiceService

Supply ChainManagement

12.1

Oracle E-Business Suite Focus on Supply Chain Management

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Oracle E-Business Suite Supply ChainWhat’s New in Procurement



LogisticsLogistics


OrderOrderFulfillmentFulfillment



12.1

Results:

Identify top savings opportunities

Exploit supply market dynamics

Optimize strategic sourcing programs

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Identify Top Savings Opportunities Procurement & Spend Analytics

WHAT’S NEW• Spend Classification*

– Application that maps raw data into reference to taxonomies

• Spend Analyzer Dashboard* & Employee Expenses Dashboard*

RESULTS • Organizes raw data into reference

taxonomies

• Accelerates normalization of spend data & simplifies follow-on analysis

• Creates visibility into spending patterns

• Identifies opportunities to improve strategic sourcing

• Offers timely insight into the organization and supplier performance

* New with next release of OBI Apps

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Optimize Strategic Sourcing ProgramsOracle Sourcing

WHAT’S NEW IN 12.1• Oracle Sourcing

– Two stage RFP evaluation – Flexible price tier structures– Award-based cost factors– Export supplier response to PDF – Excel import, export and advanced

formatting

• Sourcing Optimization• Price Tier Optimization • Optimize based on supplier incentives

RESULTS • Leverage deflationary market dynamics

& supplier cost structures to drive savings

• Ensure impartiality of bid evaluations

• Increase sourcing productivity

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Optimize Strategic Sourcing Programs Oracle Sourcing On Demand

• WHAT

– SaaS based solution that drives more and better strategic sourcing through online negotiation and collaboration

– Based on standard Oracle Sourcing and Sourcing Optimization solutions

• HOW

– Application preconfigured by top experts

– Hosted and managed by Oracle On Demand

– Affordable pay-as-you-go pricing without big upfront investment

• RESULTS

– Increase negotiation efficiency and effectiveness

– Accelerate time to value– Eliminate technology inhibitors

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Customer &Customer &Master DataMaster DataManagemeManageme

ntnt





LogisticsLogistics

ManufacturinManufacturingg



E-Business Suite

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12.1

Oracle E-Business Suite Supply ChainWhat’s New in Value Chain Planning

Results:

Better demand visibility

Improve decision making & execution

Increase profitability through service

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Complete Value Chain Planning Capture and manage demand data withOracle Demand Signal Repository

• WHAT – A separately deployable application designed to maintain a consolidated view of demand information between the OEM and Retailer to facilitate the transition to demand-driven

• HOW – Combines an enterprise strength extensible retail-oriented data model, with best-in-class analytics and BI, together with a flexible integration architecture to Oracle and non-Oracle applications to provide a common method for managing demand data

• RESULTS - Dramatically improves the accuracy and visibility of demand information in the value chain

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Complete Value Chain Planning Elevate planning insights withOracle Advanced Planning Command Center

• WHAT – Quickly compare alternative business scenarios, define how they need to be executed, and determine what trade-offs need to be made to meet your business goals..

• HOW –Oracle® Advanced Planning Command Center’s delivers prebuilt dashboards, reports, performance indicators, hierarchies, alerting, and context sensitive drill downs with full integration with Value Chain Planning Products

• RESULTS - Elevates the power of planning and planning insights to the business decision making level. Does for Supply Chain Planning what Hyperion does for Financials

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Complete Value Chain Planning Extend planning to after market with Oracle Service Parts Planning

• WHAT – A new application within Oracle Advanced Planning designed to support the increasing importance of after-market service through the management of service parts

• HOW – Combines extensive and purpose-built service parts planning capabilities, all fully integrated with the rest of Oracle Advanced Planning and the associated execution systems

• RESULTS - Enables the cost effective management of service parts and facilitates the growth of Service within the overall business value chain

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LogisticsLogistics




E-Business Suite

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12.1

Oracle E-Business Suite Supply ChainWhat’s New in Logistics

Results:

Lower overall logistics costs

Streamline and standardize global logistics operations

Minimize total landed costs and maximize margins

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Increase Logistics Efficiency Oracle Warehouse Management

WHAT’S NEW IN 12.1

• Forward pick replenishment

• Mobile user interface personalization

• OTM Integration to dock scheduling and load sequencing

• Assign material status by License Plate Number (LPN)

• UCC-128-based cartonization & picking

– Advanced Wave Planning for tighter control on warehouse activities

– Flexible deployment options

• Implementation within an E-Business Suite instance

• Standalone with integrations to any third party ERP

RESULTS

• Improved turn rates and lower overall logistics costs

• Faster, more integrated logistics operations

• Support for higher volume environments

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Increase Logistics Efficiency Improve service profit and value recovery with Oracle Depot Repair

WHAT’S NEW IN 12.1– Automated disposition based on

rules engine & recovery value

– 3rd Party logistics, billing and warranty claims management

– Service bulletins

– ASCP Service Parts Planning integration

– “Green” reporting metrics

RESULTS– Reduce cost of returns processing and

warranty claims

– Measure and manage performance of OEMs, suppliers and partners

– Reduced risk of litigation and fines for regulatory non-compliance

– Maximize value recovery from returns

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Increase Logistics EfficiencyManage all product cost components with Oracle Landed Cost Management

• WHAT – A flexible, rule-based system for calculating estimated and actual landed costs

• HOW – Integrates seamlessly with Receiving to calculate and pass all estimated or actual landed costs through to Inventory, Costing and Accounting systems

• RESULTS – Optimize product margins, visibility into extended supply chain costs, and decision support for strategic sourcing initiatives

* New Product in 12.1

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LogisticsLogistics




E-Business Suite

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12.1

Oracle E-Business Suite Supply ChainWhat’s New in Manufacturing

Results:

Simplify and standardize with manufacturing production scheduling

Improve manufacturing visibility with real time shop floor intelligence

Increase throughput, product efficiency and plant utilization

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Improve Manufacturing Visibility Convert real-time shop floor data into usableintelligence with Oracle Manufacturing Operations Center

• WHAT – A separately deployable application designed to bridge the information divide between the ERP and Plant Floor

• HOW – Combines ERP data with real-time Plant Floor information within an extensible, standard-based data model, on top of which role-based analytics have been created

• RESULTS - Delivers the analytical insights required to optimize equipment effectiveness and overall manufacturing performance

Available

Now !

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System Automation & Control

Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management

Reduced TCO / Complexity via Integrated Mfg Mgmt & Production Execution

MESMES

ERPERP

Corp Mgmt

Shop Floor Control

Production MgmtProduction Mgmt

Process Engineer• Manage recipes & advanced

process instructions

Production Supervisor• Create & manage batch status• Log non-conformances

Dispensing / Prod Operator• Pre-weigh designated

ingredients• Process batch operations

Operator• Work from dispatch list• Record transactions, quality

info, work completion, and time• View work instructions and

component info• Report production exceptions

Supervisor• Review & resolve exceptions• Monitor shop floor progress

MES for Discrete MfgMES for Discrete Mfg MES for Process MfgMES for Process Mfg

MES for Discrete & Process ManufacturingControl Demand-Driven Mfg with Integrated Shop Floor Execution*

* Available in 12.0

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Optimize Manufacturing OperationsOracle Manufacturing Execution Systems for Discrete & Process Manufacturing

WHAT’S NEW IN 12.1

• Operator Kiosks Touch screen– Dispensing supervisor dashboard– Operator certification– On-hand lot status– Multi-batch actions– Make-to-order controls– Regulatory interface certification– OPM patchable resources

• Role-Based Dashboards with KPIs– Embedded best-practice

calculations– Drill-downs for root-cause– Pre-built role-specific alerts

RESULTS• Improved manufacturing line control • 360 degree view of production status • Early detection to avoid WIP issues• Consistent instructions for Mfg users

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Improve Manufacturing Visibility Convert real-time shop floor data into usableintelligence with Oracle Manufacturing Operations Center

• WHAT – A separately deployable application designed to bridge the information divide between the ERP and Plant Floor

• HOW – Combines ERP data with real-time Plant Floor information within an extensible, standard-based data model, on top of which role-based analytics have been created

• RESULTS - Delivers the analytical insights required to optimize equipment effectiveness and overall manufacturing performance

Available

Now !

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Chargeable SubcontractingAutomatically create replenishment orders and track component allocations & inventory for sub-contracted mfg (e.g. Shikyu)

Golden Tax Support for ChinaProvide compliant VAT calculation, invoicing, and tax reporting via China-certified “Golden Tax” software

Customer Acceptance, Deferred Revenue and COGSRecognize and account for COGS and revenues in the same proportion, based on flexible contingencies & within the same accounting period

Periodic Average CostingSupport accounting compliance requirements in countries such as China/Taiwan

Support for APAC Manufacturing Satisfy Local Requirements to Operate in Key Outsourcing Regions

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Optimize Manufacturing Scheduling Maximize shop floor throughput, Optimize usage of critical resources, Calculate realistic schedules

• WHAT – Oracle Production Scheduling - designed for schedulers by schedulers, to simultaneously consider capacity and calendar constraints on machines, crews and tools with automatic floating bottleneck detection

• HOW – Leverage out-of-the-box integration with discrete, process, and lot-based manufacturing to implement quickly and obtain immediate value

• RESULTS - Maximize throughput of bottleneck resources. Improve shop floor performance. Fast easy simulation enables schedules to quickly compare scenarios and KPIs before deciding which schedule to release

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LogisticsLogistics




E-Business Suite

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12.1

Oracle E-Business Suite Supply ChainWhat’s New in Order Fulfillment

Results:

Faster, more compliant order entry

Flexible and responsive order fulfillment

Reduced contract cycle time, and better management of risks

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Enhance Order AccuracyDrive to perfect order fulfillment

WHAT’S NEW IN 12.1• Internal Order Change

Management• Item Order-ability Rules• Enhanced Configurator Engine

• Bi-directional numeric handling

• Improved defaulting• Auto-instantiation of

components• Auto-completion of

configurations

RESULTS• Faster, more compliant order entry• Stronger usability through simplified

Configurator modeling• Flexible and responsive order fulfillment

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Expand Business Agreement OversightOracle Contracts

• WHAT – A family of contract applications designed to author and manage the lifecycle of all contract types

• HOW – Deployed integrated with order-to-cash and procure-to-pay flows or as standalone application

• RESULTS - Improve visibility of all business agreements, reduce contract cycle time, and manage risks Oracle Contract

Lifecycle Manager

Project Contracts

Service Contracts

Sales Contracts

Procurement Contracts

Oracle Contracts

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LogisticsLogistics




E-Business Suite

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12.1

Oracle E-Business Suite Supply ChainWhat’s New in Asset Lifecycle Management

Results:

Improve utilization of all assets

Provide global asset visibility

Reduce capital expenditure through better asset management

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Simplified Enterprise Asset ManagementImprove asset utilization

WHAT’S NEW IN 12.1• Asset Move Workbench• Express Work Order• Graphical display of asset

relationships• Work Order Scheduling with MS

Projects• Compatible units and

construction estimating

RESULTS• Greater user adoption with simplified

tools• Improved asset management for lease,

rentals and intercompany transfers• Simplified work order processing• Better shut down planning and execution

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Optimize Returns Management Improve service profit and value recovery

WHAT’S NEW IN 12.1• Automated disposition based on

rules engine & recovery value• 3rd Party logistics, billing and

warranty claims management• Embedded service bulletins• ASCP Service Parts Planning

integration• “Green” reporting metrics

RESULTS• Reduce cost of returns processing and

warranty claims• Measure and manage performance of

OEMs, suppliers and partners• Reduced risk of litigation and fines for

regulatory non-compliance • Maximize value recovery from returns

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Reduce Turnaround Time for Engine Overhauls Oracle Complex Maintenance, Repair & Overhaul

WHAT’S NEW IN 12.1– Outside processing receipt automation

– Marshalling Workbench– Multiple non-serialized parts in a

configuration position– Build engine configuration during

disassembly– Integration with Enimga’s 3C Content

Publishing Application

RESULTS

– Improved process flow for outside orders– Reduce overhaul turn around time by

15%– More efficient process for customer

owned engines– Single view on work order related

documents for the Mechanic

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Agenda

Customer Momentum

Key Takeaways

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Delivering a Rapid ReturnSummary of Standalone Solutions

• Oracle Spend Management– Sourcing On Demand

– Procurement & Spend Analytics

• Oracle Manufacturing Operations Center• Oracle Advanced Planning Command Center• Oracle Demand Signal Repository• Oracle Service Parts Planning• Oracle Warehouse Management

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Reduce Cost of ImplementationsOracle Business Accelerators

• EBS– Setups are 100% Standard– Synchronized Sales & Deliver Bids

• Online Configuration Wizards – Unlimited Flexibility– Uses Oracle Hardware for Faster Startup

• For Partners & OC– 180+ Global Partners with 2900+ Users – 1200+ Business Models– 8000+ Sales & Delivery Assets

100+ Accelerator Projects Live or In Process

• Localized & Industry Versions– 51 Country & Industry Specific

• Any Size Customer Coverage– Demo, Simple or Complex Financials

• Free– No Costs or Royalties – “Factory Built” & Maintained – Online Training via Oracle University

• Expanding functional coverage– Distribution, Manufacturing,

Maintenance• New Products Added to 12.1

Accelerators– Service Parts Planning

– Supplier Ship & Debit

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Agenda

Customer Momentum

Key Takeaways

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E-Business Suite Release 12 Live Customers

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SOLUTIONS

Oracle E-Business Suite Release 12

CUSTOMER PERSPECTIVE“To stay cost-competitive, we are revisiting our sourcing process, where my team plays a critical role in adding supply chain value.”

– Takao Kanai, General Administrative Manager, Production & Procurement General Center Imaging Products Division.

RESULTS• Streamlined and automated the purchasing

process

• Cut the cost of parts and materials for research and development

• Reduced the number of suppliers and parts

• Enhanced control over suppliers

• Standardized cost estimating processes

• Made mass-production cost predictable at the R&D stage

COMPANY OVERVIEW• Seiko Epson is a developer, manufacturer,

and marketer of computers and peripherals, electronic devices and precision products

• Industry: Imaging Products

• Employees: 88,925 (Epson Group as of March 31, 2008)

• Revenue: JPY1.347 Billion (US$13.452 Million)

• Oracle Advanced Procurement

• Oracle Sourcing

• Oracle Purchasing

• Oracle Procurement

• Oracle iSupport Portal

Seiko Epson Reforms Sourcing Processfor Product Competitiveness and Better Supplier Relations

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SOLUTIONS

Oracle E-Business Suite Release 12

CUSTOMER PERSPECTIVE“We realized we had to respond quickly to take advantage of advances in technology, and decided to implement a single global instance of Oracle E-Business Suite R12 as our business management platform. Oracle offered comprehensive support and ensured the success of the deployment. They are a true partner to LG.”

– Kim Tae Keuk, CIO, LG Electronics

RESULTS• Standardized a distributed IT environment across

80 production and marketing subsidiaries worldwide

• Gained greater visibility into global inventory and sales and marketing costs

• Gained the flexibility to introduce, integrate, and separate business processes

• Increased productivity by 20.5%

• Reduced ERP system maintenance costs by 36%

COMPANY OVERVIEW• LG Electronics Inc. is one of the world’s largest

consumer electronics companies. Its diverse product range encompasses air conditioners, digital media, laptops, mobile phones, PC monitors, refrigerators, televisions, and more.

• Industry: Consumer Products

• Employees: 82,000

• Revenue: US$47.6 Billion

• Oracle Financials

• Oracle Order Mgmt

• Oracle Supply Chain Mgmt

• Oracle Purchasing

• Oracle Advanced Pricing

• Oracle Inventory Mgmt

• Oracle Manufacturing

• Oracle Human Resources

• Oracle Payroll

• Oracle CRM

• Oracle SOA

LG Electronics Implements World’sFirst Single Global Instance

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In Summary

Focus on Opportunities to Focus on Opportunities to AchieveAchieve Rapid Return Rapid Return TodayToday

Invest in Ways to Invest in Ways to Standardize and Standardize and Simplify Simplify with a Global Business with a Global Business PlatformPlatform

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Additional Information and Resources

• MetaLink– Release 12• E-Business Suite R12 Information Center• E-Business Suite R12 Upgrade Guide• White Paper

– Best Practices for Adopting Oracle E-Business Suite Release 12 (Doc ID: 580299.1)

• Webcasts (MyOracle Support: News, Events & Training > Programs & Training > Advisor Webcasts > Product Related)– Advisor Webcasts for 12.1 (coming)– Advisor Webcasts for 12 (archived)

– Release 12.1• Release Content Documents (RCD) for 12.1

– Available in Now

• Release Value Proposition (RVP) for 12.1– Available in Now

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Questions and Answers