value chain planning overview

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Information Driven Value Chain

Steve GwizdalaValue Chain Planning Solutions Specialist


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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


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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


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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)


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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


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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?


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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



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



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


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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


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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


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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


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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


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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


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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/


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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


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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


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value chain planning overview

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