Supply Chain Management overview for Sales Development

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Supply Chain Management overview for Sales Development

Agenda

• What is supply chain and what has changed over the last 15 years• What are the key areas of interest• Oracle's end-to-end solution• Innovation / PLM• Value Chain Planning & IBP• Logistics Transportation Management / Warehouse

Management• Go to market plans• Q&A

Design Plan Make DeliverSource

SupplierSupplier Supplier

Customer

80% Value Add

Internal

Design Plan Make

Deliver

Source

SupplierSupplier Supplier

Customer

20% Value Add

Internal

Design Design Design

Supply chain best performers save

7%-8% of revenue - AMR

Supply chain best performers save

7%-8% of revenue - AMR

CapGemini Survey 2009 top 3 Challenges

AMR Market Boomers for 2009

•Sales & Operations PlanningSales & Operations Planning•Supply Chain Performance Supply Chain Performance ManagementManagement•Global Trade ManagementGlobal Trade Management•Service Parts ManagementService Parts Management•Reverse LogisticsReverse Logistics

Design Plan

complete • modular • open • integrated

SUPPLY CHAIN

Source Make Deliver Service

Business IntelligenceBusiness Intelligence

Application Integration ArchitectureApplication Integration Architecture

Master Data ManagementMaster Data Management

Design Plan

complete • modular • open • integrated

Solution• Reduces time to market, cost & provides visibility

• Manages all product data & controls phase gates

• Provides collaboration & visualisation with design partner

• Automates BOM analysis for quality & compliance

SUPPLY CHAIN

Source Make Deliver Service

Challenges• Shorter product life

• Demand for new products

• Outsourced design increases need for collaboration

• Outsourced production makes quality & compliance more complex

• Increased regulation

PRODUCT LIFECYCLE MANAGEMENT

Design Plan

complete • modular • open • integrated

Solution• Best in class sales & operations planning

• Reduce inventory and improve delivery

• Single Collaborative planning solution with customers & suppliers

• Best in class statistical demand forecasting

• Constrained planning with suppliers

SUPPLY CHAIN

Source Make Deliver Service

Challenges• High levels of working capital in supply chain

• Poor service levels

• High expediting costs

• Time consuming forecast process.

• Low demand forecast accuracy

• Lack of visibility & collab. with suppliers & customers

VALUE CHAIN PLANNING

Design Plan

complete • modular • open • integrated

Solution• Reduce spend on goods & services

• Streamline Procurement processes

• Enforce policy compliance

• Spend analytics across all suppliers by category

• Contract management

• Supplier portals

• eSourcing & eAuctions

SUPPLY CHAIN

Source Make Deliver Service

Challenges• Cost pressure

• Labour-intensive & paper-based processes

• Unable to enforce sourcing policies

• Unable to analyse & manage spend

• Large supplier base

• Inefficient communication with suppliers

• Not getting best value from suppliers

PROCUREMENT & SOURCING

Design Plan

complete • modular • open • integrated

Solution• Global planning & scheduling

• Role based performance dashboards (ERP-MES)

• MTS, MTO, CTO, Flow, Project & Process manufacturing

• Lean manufacturing

• Customer to supplier quality management

• Integrated maintenance

SUPPLY CHAIN

Source Make Deliver Service

Challenges• Cash flow and working capital concerns

• Demand uncertainty

• Lack of visibility across all manufacturing lines

• Poor plant flexibility & efficiency

• Lack of integration with sub contractors

• Increased regulatory compliance

MANUFACTURING

Design Plan

complete • modular • open • integrated

Solution• Route & carrier optimisation

• Automated carrier booking, tracking & payment

• Real time event management & business intelligence

• Fleet management

• WMS integration with automated handling

• Wave planning & task management

SUPPLY CHAIN

Source Make Deliver Service

Challenges• Increase in transportation costs

• Unable to measure total transportation costs

• Unable to monitor logistics provider performance

• Lack of supply chain visibility

• High administration costs

• Reduce carbon emission

TRANSPORTATION & WMS

Design Plan

complete • modular • open • integrated

Solution• Synchronised forecasting and replenishment planning

• Multi echelon inventory optimisation aligned to budget constraints & SLA’s

• Product Introduction& end-of-life scenarios

• Part condition & supersession control

• Manage reverse material flow & repair processes

SUPPLY CHAIN

Source Make Deliver Service

Challenges• Need to Increase revenue from service operations

• Move to performance based contracts

• Reduce inventory held in service supply chains

• Improve part visibility & replenishment considering both new buy & repair options

• Support for reverse logistics operations

SERVICE SUPPLY CHAIN

Supply Chain Sales Development - Organization

Andrew SpenceUK

Thomas ListDE/CH

Per-Magnus KarlssonNordics

Joerg SeegerJohn Love Timothy Hughes

ERP

Vince Smallhorne

ERP

Vince Smallhorne

Supply Chain Management

Joao de Oliveira

MDMPLMOTM VCP and TPM

Timothy Hughes

Dominic Regan

Design Plan

complete • modular • open • integrated

SUPPLY CHAIN

Source Make Deliver Service

Product Lifecycle Management

Product Lifecycle Management

Co-Prime Sales

Susan Harris – UKsusan.m.harris@oracle.comPhone: +44 7780 747588

Frank Brinks– BeNeLuxfrank.brinks@oracle.com Phone: +31 615 399 506

Tobias Stähle - DACHtobias.staehle@oracle.com Phone: +49 891 4301430

Henry Dünnebeil - DACHhenry.duennebeil@oracle.com Phone: +49 891 4301430

Jean-Pierre Merx – Southern Europejean-pierre.merx@oracle.comPhone: +33 15 760 81 11

Ben Smith – Nordicsben.x.smith@oracle.comPhone: +46 84 77 34 89

EMEA Team

Denis SenpereVP, Product Lifecycle Management, EMEAdenis.senpere@oracle.comPhone: +33 61 14 104 37

Bertrand GodillotSr. Director, Sales Consulting PLM EMEAbertrand.godillot@oracle.comPhone: +31 60 70 271 92

Joerg Seeger Agile PLM Sales Dev Alliances Director, PLM EMEAjoerg.seeger@oracle.comPhone: +49 177 5940375

For additional information:PLM Product Marketing Sitehttp://my.oracle.com/plm 

Propositions

Ideas Markets

Products

Signals

Value Generation is the Result of Operational Excellence and Speed in closing this loop…

Value Generation is the Result of Operational Excellence and Speed in closing this loop…

Idea Management (Gather, Rate, Select)

Claims & Requirements Management

Product Development for Cost & Supply

Legal & Regulatory Assessment

Release to Manufacturing

Release to Market

Gather Enhancement Requests

Customer Complaint Trends

Product Failures & Issues Trends

Closed Loop Corrective Action Management

Change Process

Key customers & analysts

Cisco Apple

PhilipMorris

International

TysonFoods

Coca Cola

Go to market activities

• Cluster-based Industry Focused Campaigns– On-going: Nordics, Benelux, Germany, France– H2 under planning

• Programmatic Approach for our 3 Main Industries– Profiling + White Paper + Office Based Workshop (TAP Dream)– Targets: EHT, CPG, Pharmaceutical– Cluster based (<250M€ and 800 employees) x-functional contacts

• Expand the Oracle PLM Ecosystem– CAD Integration Competency Centre (Press releases done)– Industry Focus Partners, across & around EMEA• Accenture, Deloitte, Kalipso

– Initiate lobbying actions by communities• ProStep (D)

• Leverage Oracle Install Base– JDE Install Base Initiative

• New Industry Solutions with Partners– Financial Services currently on-going (HCUK)– Telco to follow

Design Plan

complete • modular • open • integrated

SUPPLY CHAIN

Source Make Deliver Service

Value Chain Planning

What is Demand Mgmt?

SuppliersSuppliers

Printing MaterialSuppliers

Printing MaterialSuppliers

Steel SuppliersSteel Suppliers

Aluminium Suppliers

Aluminium Suppliers

ManufacturingManufacturing

Manufacturing & Distribution

Food Bev Cans Aerosols

Metals Closures Speciality Packaging

Manufacturing & Distribution

Food Bev Cans Aerosols

Metals Closures Speciality Packaging

Coca Cola- DCsCoca Cola- DCs

Distribution & ChannelDistribution & Channel

Heinz – DCs

Heinz – DCs

Coca Cola Manf and Distribution

Coca Cola Manf and Distribution

P&G Manf and Distribution

P&G Manf and Distribution

Heinz Manf and Distribution

Heinz Manf and Distribution

P&G – DCs

P&G – DCs

Supply

Consumer Demand

Implications of a Bad Forecast

Forecast Error

Over Forecast Under Forecast

Excess Inventory

Inventory Holding Cost

Trans-shipment Cost

Obsolescence

Reduced Margin

Order Expediting Cost

Higher Product Cost

Lost Revenue

Lost Companion Product Sales

Lower Customer Satisfaction

Solution Propositions

• Demand Management - (All territories)– Demantra

• Sales and Operations Planning - S&OP (All territories)– Demantra, ASCP, SNO, APCC and DSR

• Trade Management - CTM (WE)– Demantra and APCC

• Service Transformation (install Base)– Service Parts Planning – SPP

What Analysts are saying

Oracle rated Positive in Gartner’s MarketScope for

Sales and Operations Planning

Gartner:MarketScope for Sales and Operations Planning, 2008

Published June 30, 2008

The MarketScope is copyrighted April 28, 2009 by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not

endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Note: “This MarketScope graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Oracle.”

“Users have accepted the definition of S&OP as a process that is focused on the harmonization of operational plans. This equates to the lower levels of S&OP process maturity. To fill the role of

strategic alignment, a new layer of capabilities is emerging, which Gartner calls integrated business planning, and which sits over the top of the operational S&OP process, with links to any corporate

performance management initiative within the company (see "Integrated Business Planning Fills the Gap Between Strategic Planning and S&OP).”

EMEA National Plastics (Saudi)

IBP Webcast

Mobius - Business Logistics Magazine

seminar around after market / spare parts

WE VCP go to market strategy & resources

1 to 1 Approaches to WE Telco clients with IBU

Demantra / ASCP in 90 Days // ODP to Demantra Migrations with Inspirage

Utilise TAP with ASRs and Convert to GCM

Pursue Upsell Opportunities with Existing Customers – EBS and JDE

June July Aug Sept Oct Nov

TAP Webcasts

Training to

UK MRD and CMU

ASRs

UK JDE User

Conference

Supply Chain Transformation

House of Lords

Events Yet to Be Agreed

Existing Base (Test Drive)

Logipharma April 2010

Get VCP Confirmed as Retail banking

Prop

Webcast with LS IBU

on

Supply Chain

Support TAP Process

VCP and BPO

Webcast

S&OP in LS

Telesales

With LS IBU

IBC Media Exhibition

AmsterdamSAP to the Max

Netherlands

Design Plan

complete • modular • open • integrated

SUPPLY CHAIN

Source Make Deliver Service

Transportation Management

OTM – Value PropositionLogistics Operational Efficiency

Reduce Supply Chain Cost; Improve Operating Margins; Increase Working Capital

Reduce Supply Chain Cost; Improve Operating Margins; Increase Working Capital

Manage Diverse End-to-End Supply Chains involving Multiple Trading Partners

Manage Diverse End-to-End Supply Chains involving Multiple Trading Partners

Balance Transportation Asset and Resource Capacity Constraints

Balance Transportation Asset and Resource Capacity Constraints

Meet New Demands on Environmental Sustainability; Increase Utilisation, Reduce Fuel & CO2 emissions

Meet New Demands on Environmental Sustainability; Increase Utilisation, Reduce Fuel & CO2 emissions

Gain Visibility into the Extended Supply Chain; Identify Best Practice, Drive Continuous Improvement

Gain Visibility into the Extended Supply Chain; Identify Best Practice, Drive Continuous Improvement

Transportation Operational Process Flow

Manual EntryManual Entry

EDI/file EDI/file IntegrationIntegration

Logistics Logistics OrdersOrders

ShipmentsShipments- BundleBundle

- Load Opt.Load Opt.

ItineraryItinerary- RoutingRouting

- LegsLegs

Service Service Provider Provider

AssignmentAssignment

Carrier Carrier Booking / Booking /

TenderTender

Fleet Planning Fleet Planning & Assignment& Assignment

Shipment Shipment Execution & Execution & MonitoringMonitoring

Customer BillCustomer Bill

Service Service Provider Provider InvoiceInvoice

Cost Cost AllocationAllocation

Exception Exception ManagementManagement

Key customers & analysts• Consumer Packaged Goods• Retail• Automotive• Industrial Manufacturing• Logistics Service Providers

Source: Forrester Research Inc (Q1 2008)Source: Gartner (April 2009)

Gartner Magic Quadrant Forrester Wave AMR ETMS Landscape

Source: AMR Research (July 2009)

• Sales Launch/Awareness in BNL, F, Nordics, Germany• Direct Campaign targeting 130 TAP accounts ($13m)• Specific Partner Activities:

– Capgemini / IBM (WE)– Arkenis (UK, F, BNL)– Camelot (D)– IDOM (E)– Business Reply (Italy)

• External Events (600 Minutes, eyefortransport, BVL, SITL)• 14th Annual 3PL Study (with Capgemini & Panalpina)

Go to market activities• Target Profile

• >€250M in Annual Revenue • >€10M in Annual Transport Spend• Complex supply chains• Multiple modes, geographies… • Controlling logistics• Single point of visibility• Service provider independence

SCM Go To Market

• FY09 SCM (incl. Procurement) WE = $45M• Key Propositions– OTM– PLM– S&OP– Optimised Supply Chain– Procurement

• Resources– LinkedIn Group– Web Site– Industry based blotters (Retail, Life Sciences, Generic)– Value based selling tools

Summary

• Complete end-to-end supply chain solution• Deep best of breed functionality

– Analysts leaders in many areas

• Modular deployment ERP agnostic• Deep, flexible analytics and business intelligence• MDM & AIA address business integration challenges • Addressed current business needs

– Free up working capital– Reduce supply chain costs– Provide visibility

• Experienced sales development, sales & pre-sales

35

AQ&

Design Plan

complete • modular • open • integrated

Solution• Reduces time to market,

cost & provides visibility

• Manages all product data & controls phase gates

• Provides collaboration & visualisation with design partner

• Automates BOM analysis for quality & compliance

Challenges• High levels of working

capital in supply chain

• Poor service levels

• High expediting costs

• Time consuming forecast process.

• Low demand forecast accuracy

• Lack of visibility & collaboration with suppliers & customers

Solution• Best in class sales &

operations planning

• Reduce inventory and improve delivery

• Single Collaborative planning solution with customers & suppliers

• Best in class statistical demand forecasting

• Constrained planning with suppliers

SUPPLY CHAIN

Source Make Deliver Service

Challenges• Shorter product life

• Demand for new products

• Outsourced design increases need for collaboration

• Outsourced production makes quality & compliance more complex

• Increased regulation

Solution• Reduce spend on goods &

services

• Streamline Procurement processes

• Enforce policy compliance

• Spend analytics across all suppliers by category

• Contract management

• Supplier portals

• eSourcing & eAuctions

Challenges• Cost pressure

• Labour-intensive & paper-based processes

• Unable to enforce sourcing policies

• Unable to analyse & manage spend

• Large supplier base

• Inefficient communication with suppliers

• Not getting best value from suppliers

Solution• Global planning &

scheduling

• Role based performance dashboards (ERP-MES)

• MTS, MTO, CTO, Flow, Project & Process manufacturing

• Lean manufacturing

• Customer to supplier quality management

• Integrated maintenance

Challenges• Cash flow and working

capital concerns

• Demand uncertainty

• Lack of visibility across all manufacturing lines

• Poor plant flexibility & efficiency

• Lack of integration with sub contractors

• Increased regulatory compliance

Solution• Route & carrier optimisation

• Automated carrier booking, tracking & payment

• Real time event management & business intelligence

• Fleet management

• WMS integration with automated handling

• Wave planning & task management

Challenges• Increase in transportation

costs

• Unable to measure total transportation costs

• Unable to monitor logistics provider performance

• Lack of supply chain visibility

• High administration costs

• Reduce carbon emission

Solution• Synchronised forecasting

and replenishment planning

• Multi echelon inventory optimisation aligned to budget constraints & SLA’s

• Product Introduction& end-of-life scenarios

• Part condition & supersession control

• Manage reverse material flow & repair processes

Challenges• Need to Increase revenue

from service operations

• Move to performance based contracts

• Reduce inventory held in service supply chains

• Improve part visibility & replenishment considering both new buy & repair options

• Support for reverse logistics operations

VisibilityDashboards – Analytics - Workflow

PRODUCT LIFECYCLE MANAGEMENT PROCUREMENT & SOURCING TRANSPORTATION & WMS

VALUE CHAIN PLANNING MANUFACTURING SERVICE SUPPLY CHAIN