value chain planning overview
TRANSCRIPT
-
8/14/2019 Value Chain Planning Overview
1/18
Information Driven Value Chain
Steve GwizdalaValue Chain Planning Solutions Specialist
-
8/14/2019 Value Chain Planning Overview
2/18
2009 Oracle Corporation Proprietary and Confidential
What is Value Chain Planning?
Enterprise-wide Business Planning that links:
Strategic and Tactical
Decision Making
Design/Developmentwith the Supply Chain
Financial Planning with
Supply Chain Planning
-
8/14/2019 Value Chain Planning Overview
3/18
2009 Oracle Corporation Proprietary and Confidential
Oracle Value Chain Planning SolutionComplete, best-in-class e-business planning process platform
Demand SignalManagement
DemandManagement
Collaboration andVendor Managed
Inventory
PlantScheduling and
Monitoring
OrderPromising
ServiceParts
Planning
Trade PromotionManagement
Supply and DistributionPlanning
Risk
Management
Sales andOperationsPlanning
PerformanceManagement
Single source of truth Integrated with ERP SOA enabled
-
8/14/2019 Value Chain Planning Overview
4/18
4
2009 Oracle Corporation Proprietary and Confidential
Oracle Advanced Planning Solution
BUSINESS PLANNING & PROCESS MGMT
Business planning scenario mgmt & automation
Business planning analysis dashboards
OPERATIONAL EXCELLENCE
Integrated supply chain execution
24x7 order promising
Supplier collaboration and VMI Integrated multi-method
manufacturing execution
Manage internal and external repair
orders, new buy parts, and part
redistribution transfers
Plant level detailed scheduling
DISTRIBUTION AND SUPPLY PLANNING
Rebalance inventory position at lowest cost
Multi-facility constrained replenishment planning Distribution planning
AFTERMARKET SERVICE PLANNING
Multi-echelon service supply chain
Simultaneous forecasting, replenishment, distrib.
SENSE AND SHAPE DEMAND
Improve forecast accuracy thru better statistics
Continuous consensus planning process
New product introductions
DEMAND SIGNAL MGMT
Enables Retailer and Mfg-er collab.
Demand and market intelligence
SALES AND OPERATIONS PLANNING
Balance demand, supply, budgets
Evaluate both strategic and tactical decisions
RISK MANAGEMENT
Design profitable supply chain
Mitigate risk for (un)planned events
ADVANCED PLANNING
(1) Requires Oracle Siebel AIA Connector for Consumer Goods
Enables best-in-class processes that solve key planning problems
PROMOTION MANAGEMENT
Run most profitable promotions
Promotion lift analysis
Execute promotions via Siebel(1)
-
8/14/2019 Value Chain Planning Overview
5/18
5
2009 Oracle Corporation Proprietary and Confidential
Oracle Advanced Planning Solution
BUSINESS PLANNING & PROCESS MGMT
Oracle Advanced Planning Command Center
OPERATIONAL EXCELLENCE
Oracle Global Order Promising
Oracle Collaborative Planning
Oracle Production Scheduling Manufacturing Operations Center
DISTRIBUTION AND SUPPLY PLANNING
Oracle Advanced Supply Chain Planning
AFTERMARKET SERVICE PLANNING
Oracle Service Parts Planning
PROMOTION MANAGEMENT
Demantra Predictive Trade Planning
Demantra Trade Promotion Opt.
Demantra Deduction & Settlement
Management
SENSE AND SHAPE DEMAND
Demantra Demand Management
Demantra Advanced Forecasting and Demand
Modeling
DEMAND SIGNAL MGMT
Oracle Demand Signal Repository
SALES AND OPERATIONS PLANNING
Demantra Real-Time Sales & Operations Planning
Oracle Strategic Network Optimization
RISK MANAGEMENT
Oracle Strategic Network Opt.
Oracle Inventory Optimization
ADVANCED PLANNING
Enables best-in-class processes through best-in-class products
-
8/14/2019 Value Chain Planning Overview
6/18
2009 Oracle Corporation Proprietary and Confidential
Oracle Strategic Network OptimizationConsider all costs and constraints that impact the decisions
Costs ($): Variable and Fixed
Transportation (inbound, outbound)
Storage and inventory carrying costs
Fixed costs (startup, shutdown, operating)
Material supply
Manufacturing and labor
Price (for profit optimization)
Capacity Constraints (Hard and Soft)
Supply constraints
Manufacturing constraints
Transportation constraints
Storage and inventory constraints
Target service levels
Dynamic safety stock
Answering the tough questions: How do I manage my supply chain risk more effectively? What impact do changing costs have on my inventory,
production and/or sourcing strategy?
Can I meet demand profitably?
Where should I hold how much inventory, when?
Should I close down a facility?
How could I react to a disruption in supply due to
unforeseen events? 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?
-
8/14/2019 Value Chain Planning Overview
7/18 2009 Oracle Corporation Proprietary and Confidential
Oracle Demantra Demand Management
Sense demand real-time Sense demand more frequently, closer to the point of consumption Capture demand and forecast at more granular level (store, shelf,
attributes, product characteristics)
Achieve consensus demand number more quickly by involving all
constituents at the same time, including customers
Quickly identify and react to demand changes and exceptions
Improve forecast accuracy Leverage advanced statistics for more accurate demand number
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
Leverage Advanced Forecast Modeling for promotion lift decomposition
and causal analysis
Shape demand for profitability Plan new product introductions Plan promotions and sales incentives
Identify cross selling opportunities
Evolve to real-time S&OP Profitably balance supply, demand, and budgets
Shipments
Marketing
forecast
Order
history
CHANNEL DATA
Customer
sales
CollaborationWorkbench
Demand Hub and Seeded Worksheets
Real-time demand sensing and collaborative consensus forecasting
-
8/14/2019 Value Chain Planning Overview
8/18 2009 Oracle Corporation Proprietary and Confidential
Supply Chain and Distribution Planning Product family and item level planning
Alternate components, resources, processes, suppliers,
facilities, and ship methods End-item substitution
Critical items and resources; aggregate resources
Bills of distribution and transfer rules
Redistribution (circular sourcing), load consolidation,
allocation rules
Include customer and supplier facilities
Manufacturing Planning Sequence dependent setups/changeovers
Simultaneous resources
Batch resources Alternate resources
Minimum transfer quantities
Complex, network routings
By-products and co-products
Line rates and take times
Suppliers Transportation Manufacturing Transportation Transportation CustomersDistributors
Oracle Advanced Supply Chain PlanningHolistic Planning and Optimization providing one solutions for
supply chain, distribution and manufacturing planning
-
8/14/2019 Value Chain Planning Overview
9/18 2009 Oracle Corporation Proprietary and Confidential
Increase global visibility and reduce supplyshortages Multi-enterprise visibility
Monitor supplier performance
Implement vendor managed and consigned
inventory Provide value-add services as a competitive differentiator
Reduce inventory carrying costs through automation
Reduce planning cycle time through multi-enterprise planning Collaborative supply planning
Comprehensive waterfall analysis
React quickly to supply chain exceptions Seeded and user configurable exceptions
Fully integrated with Oracle E-Business Suite
Oracle Collaborative PlanningImprove global visibility and react quickly to changes through collaboration
with trading partners
-
8/14/2019 Value Chain Planning Overview
10/18
2009 Oracle Corporation Proprietary and Confidential
Maximize throughput of bottleneck resources Automatic detection of bottlenecks
Minimize setup with intelligent sequencing
Improve shop floor performance Minimize the effect of unplanned downtime
Easy identification of issues
What-if rescheduling
Drag and drop
Quickly determine the best schedule Fast easy simulation
Scenario comparison and key performance indicators
Implement quickly by leveraging out-of-the-
box integration Integrated manufacturing planning and scheduling
Fully integrated with Oracle E-Business Suite
Oracle Production SchedulingMaximize shop floor throughput and optimize resource utilization
-
8/14/2019 Value Chain Planning Overview
11/18
2009 Oracle Corporation Proprietary and Confidential
Increases flexibility and reduce costs by moving inventory away fromthe customer to the point of postponement
Accounts for demand, supply, and lead-time variability when
determining the point of postponement and inventory levels Synchronizes inventory levels and policies across the supply chain
Helps you move from a push model to a pull model
Increases visibility to supplier and contract manufacturer inventory
Suppliers
Contract
Manufacturers
Final
Assembly
Central
Distribution
Centers
Regional
Distribution
Centers Customers
Old way Push Inventory
Newway PostponeInventory
Oracle Inventory OptimizationRespond quickly to demand, supply, and lead time fluctuations
-
8/14/2019 Value Chain Planning Overview
12/18
12
2009 Oracle Corporation Proprietary and Confidential
Oracle Service Parts Planning
Simultaneously forecast, replenish and
redistribute your service parts across yourservice supply chain
More accurately forecast your service parts Demantra statistical forecasting engine inside for highest
accuracy
Account for intermittent, seasonal, and fast moving demand
patterns
Leverage composite forecasting (shipments, usages, returns)
Use service failure rates
Optimize the replenishment and redistributionof parts across the extended service network,integrated with Service Execution
Integrate with other Advanced Planningproducts for additional business processes
Manage spare parts at customer locations (via CP)
Manage service contract customer demand (via Dem DM)
Manage targeted service levels and budgets (via IO)
Produce parts in manufacturing facilities (via ASCP)
Manage both forward and reverse material flows
-
8/14/2019 Value Chain Planning Overview
13/18
2009 Oracle Corporation Proprietary and Confidential
Oracle Advanced Planning Command Center
Get the right answers
Self service, pre-built
Rich content and KPIs
Seamless integration
with planning apps
Business Insight for Supply Chain Executives
Pre-Built Dashboards and Reports
Scenario and
Activity Management
Plans and Archived Plans
Analyze
Plan
Orchestrate
Analyze and compare scenarios and plans
Execute
scenarios
Execute automated processes
Archive plans
Web Serv ice enabled
Planning Processes
Analyt ical
Data
Forecast ing Supply Planning
Planning Analyt ics for Supply Chain Decis ion Makers
Business sc enario planning
Decide which scenariosto plan
Compare baseline to
alternative scenarios
Assign scenarios to
planners for execution
Preconfigured Planning Processes
Planning process automat ion
Notify constituents of
assigned activities
Link processes for
manual or automated
execution
Auto-archive plans
-
8/14/2019 Value Chain Planning Overview
14/18
2009 Oracle Corporation Proprietary and Confidential
Oracle Manufacturing Operations Center
The Foundation for Continuous Improvement in Manufacturing Operations
Contextualize Plant
Floor Data and
Synchronize with ERP
Provide Real-Time
Intelligence forPlant Operations
Leverage Next Generation
Manufacturing
Operations Architecture
Consistent mfg information for all users
Convert equipment data into useful business info
Ensure rapid response to manufacturing issues
Leverage existing plant IT infrastructure
Enable gradual upgrade of plant systems
Simplify IT support for your core mfg strategy
Deliver performance metrics & trends by role
Easily build dashboards to your unique needs
Identify performance improvement opportunities
-
8/14/2019 Value Chain Planning Overview
15/18
2009 Oracle Corporation Proprietary and Confidential
15
reduced ending level inventory from $200M to $50M, saving $8M annually
by automating supply chain processes reduced monthly inventory levels for largest customer by over $1M per
month and scenario analysis from days to 2 hours
increased forecast accuracy from 50 to 85%, and reduced planning cycletime from 21 to 5 days
improved on-time delivery to 98%
improved inventory turns by 37%
reduced order fill rate from 55% to 95%, increase inventory turns by 100%,reduced price protection claims by 40%
reduced inventories by $350M, carriers from 200 to 12
yielded a $12 million reduction in average inventory, improved forecastaccuracy from 35% to 73%, improved fill rate from 80 to 93%
reduced order cycle time by 30%, raw material inventory by 17%
increased service level by 12% for same inventory investment
Sample customers achieving significant benefits
http://www.toshibatec.co.jp/index_e.htmhttp://www.vtech.com/http://www.dow.com/http://www.dow.com/http://www.dow.com/http://www.finisar.com/home.phphttp://www.finisar.com/home.phphttp://www.toshibatec.co.jp/index_e.htmhttp://www.dow.com/http://www.vtech.com/ -
8/14/2019 Value Chain Planning Overview
16/18
2009 Oracle Corporation Proprietary and Confidential
16
Many customers across all industries
DiscreteManufacturing
ProcessManufacturing
ConsumerGoods /
Distribution
High Tech
http://toshiba.com/tai/index.jsphttp://www.ikon.com/http://www.cummins.com/cmi/index.jsp?siteId=1&langId=1033&newsInfo=truehttp://www.eaton.com/EatonCom/index.htmhttp://www.dow.com/http://www.subaru.com/http://corporateportal.ppg.com/ppghttp://www.la-z-boy.com/http://www.t-shirtwholesaler.com/main_brand.asp?pg=brand&bd=Gildan&uid=http://www.clorox.com/http://www.usg.com/http://www.toshiba.com/tai/index.jsphttp://www.fujixerox.com/http://www.orbotech.com/Default.asphttp://www.finisar.com/home.phphttp://www.xilinx.com/http://cisco.com/en/US/hmpgs/index.htmlhttp://www.ncr.com/en/index.htm -
8/14/2019 Value Chain Planning Overview
17/18
2009 Oracle Corporation Proprietary and Confidential
17
Enables leading edge and transformational business processes
Oracle Value Chain Planning Solution
Predict market requirements and manage supply chain risk Sense demand closer to the point of consumption with real-time visibility to demand events
Improve forecast accuracy through advanced analytics and improved consensus forecasting
Predict impact of risk to your network by simulating planned and unplanned supply chain events
Account for variability in your inventory positioning and postponement strategy
Shape demand for profitability Drivedemand via promotions planning
Manage new product introductions and marketing to shape demand and maximize revenue
Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process
Align operational plans with corporate goals Plan your extended value chain with holistic supply and distribution planning
Synchronize plans and actions across the extended enterprise
Improve supply chain visibility and align trading partners via collaboration
Transform your service operations from cost to profit centers
MONITOR and MANAGE with Embedded Analytics
-
8/14/2019 Value Chain Planning Overview
18/18
Questions