Enabling(Modern( Supply(Chain(Planning( …¬gura>ons’(MTS,’MTO’–ATO,’CTO,’ PTO,’ETO,’MRO/Service…)’ Comprehensive’supportfor’PLAN,’ integrated’with’execu>on’systems’for’

Enabling Modern Supply Chain Planning Transforma9on SES16240: Supply Chain Management

Jon S. Chorley CSO & Group Vice President Oracle, SCM Applica9ons Development June 23, 2015

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2015 Oracle and/or its affiliates. All rights reserved.

Safe Harbor Statement The following is intended to outline our general product direc9on. It is intended for informa9on purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or func9onality, and should not be relied upon in making purchasing decisions. The development, release, and 9ming of any features or func9onality described for Oracle’s products remains at the sole discre9on of Oracle.

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Program Agenda

VCP Overview and Con9nued Innova9on

Enabling Modern Supply Chain Transforma9on

VCP Roadmap and Ini9a9ves

Summary

Q&A

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Program Agenda




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Value Chain Planning

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•  Complete, Open, Flexible, Modular •  Best prac>ces and Industry-‐specific capabili9es •  Global supply chain visibility across ERPs •  Integrated to EBS, JDE, Hyperion, Primavera, etc.

•  Market leadership Collaborative

Planning & VMI

Service Parts

Planning

Trade Promotions Planning &

Optimization

Demand Management

Supply & Distribution Planning

Event-Driven

Simulation

Global Order

Promising

Production Scheduling Network Design,

Risk Management, Postponement

Planning Analytics Sales &

Operations Planning

Ø Leader in Demand Sensing and Planning, IDC, Sep 2013

Ø Leader in Trade Promo9ons Management, Gartner, Mar 2014

Ø Leader in S&OP, Gartner, Mar 2015

Ø Leader in Supply Chain Planning SOR, Gartner, Mar 2014

Ø Leader in Inventory Op9miza9on, Nucleus research, Jan 2015

Ø Leader in Supply Chain design, Nucleus research, Feb 2015


Con9nued Significant VCP Investment

End of life

12.1.3.8 12.1 12.2 Future

12.1.3.7 12.1.3.9 12.2.4

New: Asset Intensive Planning Industry specific enhancements User interface improvements Inventory Op9miza9on enhs. Rapid Planning enhancements

ADF UI Inventory Op9miza9on New: In-‐Memory Performance Driven Planning New: In-‐Memory Consump9on Driven Planning Industry specific enhancements

More Incredible Features

Service Parts Planning – EAM integra9on Rapid Planning backlog management enhancements Industry specific enhancements New: project driven supply chain Demantra PTP – APCC integra9on APCC detailed repor9ng

Demantra BAL U9lity Demantra DM – APCC integra9on Rapid Planning enhancements Tech stack and deployment enhs User interface improvements S&OP cost simula9on enhs JDE E1 – GOP integra9on

Mobile support ADF UI Adv Supply Chain Planning Industry specific enhancements User interface improvements Inventory op9miza9on enhancements

New: Advanced Planning Command Center New: Service Parts Planning New: Demand Signal Repository New: Rapid Planning New: JDE E1 and PSog Integra9on New: OTM Integra9on New: Hyperion Integra9on

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VCP Enables Modern Value Chain Transforma9on

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Customer Centric Responsive

Performance Driven Empowered People

Sense demand more quickly, segment and shape for revenue growth

Evolve to improved strategy execu9on and Integrated Business Planning

Powerful analy9cs give Planners, Managers, and CSCOs new insight to con9nuously monitor value chain performance

Improve agility by incorpora9ng risk and postponement strategies and

quickly respond to events

Grow Respond

Exceed Empower


How to Get There Oracle Value Chain Planning focuses on key planning problems

Complete, modular and integrated planning plaiorm for end-‐vision business processes

Start Measure Evolve Best-in Class •  Forecast to plan process •  Demand sensing and

consensus •  Better, faster decisions

and execution

•  S&OP/ Integrated business planning

•  Scenario planning and analysis

•  Collaboration with trading partners

•  Trade promotions planning

•  Demand signal management

•  Product life cycle planning

•  Integrated service supply chain

•  Design for agility •  Event driven simulation

Typical approach


•  6 new products, 10 new business flows, 160+ new features over 15 point releases since 2009

•  Selng the performance bar with in-‐memory, 64 bit Linux

• New algorithms to solve hard business problems

• Ubiquitous analy9cs and simula9ons

Accelera9ng Business Performance with Innova9on

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From 1120 to 11 seconds

•  1.3B rows •  Aggrega9on across 36M rows •  2 week major sell-‐through report

Impressive Results with In-‐Memory Processing

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Demantra Trade Planning

Account Analysis

Demantra Store-‐level Forecas9ng and Replenishment

End to end run

From 760 to 56 minutes

•  400M rows •  1.4M SKU-‐loca9on combina9ons


•  360K items •  1.2M demands •  1M excep9ons, 5.7M KPI records

Advanced Planning Command Center

ETL process

Supply Planning (ASCP)

End to end run


•  90% savings in I/O (flush, snapshot) •  Up to 4x reduc9on in Collec9ons


Enablement of Best Prac9ces in Key Industries

AEROSPACE & DEFENSE High Quality; Low Cost; Compliance •  Project Driven Supply Chain •  Hard and Sog Pegging •  Group Nelng

AUTOMOTIVE Lowest Cost, Highest Efficiency •  Flow Manufacturing Integra9on •  Demand Driven Supply Chain •  Spare Parts Planning

PROCESS INDUSTRIES Highest Quality and U>liza>on •  Formula/Blending Op9miza9on •  Quality Yield Planning •  Service Parts Planning for EAM

CONSUMER GOODS Customer-‐Centric Demand-‐Driven •  Trade Promo9on Calendar Op9miza9on •  Demand Sensing and Shaping •  IM Consump9on Driven Planning

RETAIL AND DISTRIBUTION Respond Profitably to Demand •  Demand Signal Management •  Enterprise Network Op9miza9on •  IM Consump9on Driven Planning

HIGH TECHNOLOGY Controlling Complex Supply Chains •  Complex CTO configura9on support •  Postponement Op9miza9on •  Clear To Build and Demand Pull-‐in

MANUFACTURING Maximize Efficiency •  Produc9on Scheduling •  Consensus Demand Management •  Event driven simula9on

COMMS, MEDIA & ENTERTAINMENT Demand Driven •  Demand Management Causal Modeling •  IM Consump9on Driven Planning •  Promo9on Planning and Op9miza9on

MEDICAL DEVICES Compliance and Efficiency •  Demand Driven Supply Chain •  Inventory Op9miza9on •  Rapid Response to demand and supply changes

PHARMACEUTICAL Compliance and Efficiency •  Demand Driven Supply Chain •  Shelf Life and Recipe Validity •  Process Mfg Integra9on

SEMICONDUCTOR Planning for Extended Supply Chains •  Supplier Collabora9on •  Binning and Opera9ons Yield •  Inventory Op9miza9on

NATURAL RESOURCES Maximizing Up>me and Efficiency •  Enterprise Asset Planning •  Service Parts Planning •  Supply Planning

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New Possibili9es with VCP -‐ Customer Examples

Used big data, social conversa9ons to improve demand sensing and achieve forecast accuracy in high 90s

All field sales present sales trends and geospa9al view on mobile apps to channel partners (from Demand Signal Repository)

Forecas9ng, replenishment , real-‐9me monitoring in Demantra based on usage signals from telemetry devices on the tank levels of chemicals at customer sites

Iden9fied significant opportuni9es in new product line based on game play data and prepared supply chain for upcoming holiday season

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New Possibili9es with VCP -‐ Oracle Internal Examples

Demand segmenta9on and forecast tuning based on intermirence and vola9lity – Erra9c, Lumpy, Slow, Smooth

Integrated Forward and Reverse supply chain planning – 1.5M part-‐loca9ons, 600+ spares warehouses, $2.3B hardware services revenue

Discover data parerns to iden9fy parts at risk of short supply for key customers using advanced analy9cs (Oracle Data Mining 12c) and APCC

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20% MAPE

Single digit Bias

90% Service Level

50% Backorders

Service parts forecas9ng, stocking, and service level strategy based on volume, product cri9cality, customers, and geography

50% Inventory

$800M to $400M


Benefits of Value Chain Planning Proven solu>on widely adopted by customers of all sizes

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38% Reduc9on in Inventory

30% Reduc9on in

working capital

90% Reduc9on in planning

cycle 9me

56% Improvement in forecast accuracy

40% Berer order fill rates

5% Improvement in gross margins


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Configure VCP to company/industry specific needs

Support for planning process steps for each configura>ons (Iden>fy, priori>ze, aggregate, and balance)

Support for planning all supply chain configura>ons (MTS, MTO – ATO, CTO, PTO, ETO, MRO/Service…)

Comprehensive support for PLAN, integrated with execu>on systems for SOURCE, MAKE, DELIVER & RETURN and ENABLE best prac>ces

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Supply Chain Planning Process Transforma9on

Level 1: Process Types

Level 2: Configura9on

Level 3: Process Elements/Steps

Level 4: Company Specific

Enable best prac>ces using VCP for superior business performance


Enhance APCC with metrics specific to you

Detailed analysis to iden>fy core issue. e.g. View capacity u>liza>on for issue with % of Orders met on >me

Support for metrics to diagnose Issues with L1. e.g. % of Orders Delivered in Full, % of Orders met on >me

Support for metrics related to RELIABILTY & RESPONSIVENESS in the forward looking horizon. e.g. Perfect Order Fulfillment/Index in APCC.

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Enablement of Best Prac9ces in Performance Measurement

Level 1: Strategic Metrics

Level 2: Diagnos9c Metrics

Level 3: Detailed Analysis

Company Specific Metrics

Measure the Supply Chain performance to company goals using VCP


Supply Chain Transforma9on Examples

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•  Enabled Perfect Execu9on Processes using Oracle VCP – Implemented a standardized process for improving performance of the value chain in a complex organiza9on with over 5 business groups, 220 plants and varying business models (ETO, CTO, Make to Stock for retail…)

– Reduced global inventory, gained enhanced capability to drive and control global supply chain

• Global supply chain transforma9on – Embarked on a significant global supply chain transforma9on project focused on improving reliability and customer service and reducing costs and inventory by deploying a global VCP solu9on

– Standardizing processes, consolida9ng informa9on, leveraging system features to meet complex ETO problems


Planning Process Transforma9on Examples

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• Projects Driven Supply Chain – Transformed Integrated Business Planning process using VCP integrated to SFDC, Hyperion, Primavera P6 to provide visibility, enable what-‐if scenario planning, and achieve collabora9on between Projects and Supply Chain divisions

– Resulted in reduced planning 9me, improved inventory days and created addi9onal revenue opportuni9es

•  Supply Chain Agility – Control tower with near real-‐9me simula9on (APCC and Rapid Planning) to find quick, profitable solu9ons to respond to sudden order changes, product and component quality issues, supplier capacity issues, and requests to pull in demand

– Resulted in improved on-‐9me delivery and reduced freight costs


Performance Measurement Transforma9on Examples

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•  Supply Chain Command & Control – Used Six Sigma methodology and APCC to gain supply chain visibility and achieve a sophis9cated supply chain command and control process

– Resulted in improved planner, manager and leadership processes which helped in quick decision making and overall performance tracking

•  Inventory Reduc9on – Focused on risk pooling and 9me-‐phased safety stock to achieve lean inventory across 3000 finished goods items using Demantra, Inventory Op9miza9on, and APCC

– Resulted in 34% reduc9on in forecast error and reduced inventory, while maintaining high service levels


Integrated Business Planning Transforma9on

Management Business Review

Financial Review

Product Review

Demand Review

Supply Review


Goals of Integrated Business Planning Transforma9on

Consistent Execu>on of Strategy

Forward-‐Looking Insights

Enterprise-‐Wide Alignment

• Transla9on of strategy to metrics

• Capabili9es of value chain

• Return on net assets • Cash conversion cycle • Gross margin • Revenue growth • Share of wallets

• Planning results converted to metrics

• Thresholds for course correc9on

• Sales • Marke9ng • Finance • Supply Chain • Service

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Predictable Business Results


IBP Inclusive of Company-‐Specific Requirements

Configure-‐to-‐order Extended collabora9on,VMI

Trade Promo9ons Mgmt. Demand Signal Mgmt.

Mixed-‐mode manufacturing Compliance and service cost

Asset maintenance costs Projects-‐driven planning

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HIGH TECHNOLOGY Controlling Complex Supply Chains

CONSUMER GOODS Customer-‐Centric Demand-‐Driven

NATURAL RESOURCES Maximizing Up>me and Efficiency

MANUFACTURING Lowest Cost and Highest Quality


Integrated Business Planning Transforma9on Examples • Outputs quarterly and annul plan

– U9lized Demantra integrated with SAP ECC, HANA, Financial Planning system to enable an end-‐to-‐end collabora9ve process across all business divisions, VMI partners and customers.

– Resulted in increased forecast accuracy, visibility to VMI and customer forecast and ability to do quick simula9ons

•  IBP includes channel data – Successful Integrated Business Planning transforma9on drove higher forecast accuracy, by striking balance between demand & supply generated from Retail & Online channels

– Visibility to more granular, accurate, daily insights to sell-‐thru (store level consump9on) full one week earlier using Demand Signal Repository

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Program Agenda




Summary

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Demand Management •  In-‐Memory Consump9on-‐Driven Planning •  Forecast simula9on, NPI enhancements •  Use management and control

Supply Chain Planning •  Project-‐driven supply chain (ASCP w/ Primavera) •  Process, CG, Life Sciences industry enhs. (ASCP) •  Demand priority API, ship sets, CTB enhs. (RP) •  Synchronous make-‐pack scheduling (PS)

Trade Promo>ons Management •  Shipment consump9on forecas9ng •  Promo9on planning analy9cs enhancements

Sales & Opera>ons Planning •  Custom hierarchies/measures synch w/ APCC

Maintenance and Service Parts Planning •  SPP Integra9on to Enterprises Asset Mgmt.

Value Chain Planning Analy>cs •  In-‐Memory Performance-‐Driven Planning (fp) •  Enhanced integra9on with DM and DRP (APCC) •  High-‐volume detailed repor9ng

Demand Management •  Demantra UX enhancements •  Improved workflow and global instance support •  Collect data above site level & items arributes

Supply Chain Planning •  Planners workbench UX enhs. (ASCP, RP) •  Resource-‐driven supply planning enhs. (ASCP) •  Improved reserva9ons for day-‐level plg. (ASCP) •  ECO use-‐up, Flow Manufacturing support (RP) •  Support ECO dates in forward ATP (GOP) •  Customer-‐driven and performance enhs. (ASCP) •  JDE E1 integra9on and setup enhancements

Maintenance and Service Parts Planning •  Service parts planning Automo9ve enhs. •  Pass intermirency flag from DM to IO

Value Chain Planning Analy>cs •  Project driven supply chain reports •  APCC Org specific calendars •  APCC Support mul9ple category sets

Demand Management •  Customer-‐driven enhancements to Demantra •  Support for Project-‐driven supply chain •  Collect customer-‐specific price lists

Supply Chain Planning •  Country of Origin support (ASCP, GOP) •  User-‐experience enhancements to ASCP •  JDE E1 integra9on enhancements

Trade Promo>ons Management •  In-‐Memory Consump9on-‐Driven Planning Integra9on

Sales & Opera>ons Planning •  Load mul9ple supply plans in parallel •  Customer-‐driven enhancements

Maintenance and Service Parts Planning •  Inventory policy planning enhancements •  Service parts planning enhancements

Value Chain Planning Analy>cs and S&OP •  Usability and performance enhancements •  Inventory and supply planning integration enhs

Release 12.2.4 and 12.2.4.1 Aug 2014

What’s Next 0-‐12 month planning cycle

Future Direc>ons Post 12 month planning cycle

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Value Chain Planning Roadmap


VCP Focus Areas– Examples from Recent Releases

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•  Progress to an excep>onal UX –  ADF UI enhancements (IO, ASCP) –  Demantra UI enhancements (DM, S&OP, PTP) –  Mobile UI support (for ADF, Demantra Anywhere) –  Improved integra9on with Analy9cs (APCC) –  Run inventory simula9on experiments (IO)

•  Improve deployment, reduce TCO –  Demantra BAL upgrade u9lity for ease of upgrading –  Demantra schema self-‐tuning for ease of Db tuning –  Demantra mul9ple languages in single instance –  WLS used as standard app server –  JDE – VCP integra9on enhancements (GOP, ADCP)

•  Customer-‐driven industry features –  Warehouse capacity constraint (ASCP, IO) –  Premium resource capacity (ASCP) –  Synchronous make-‐pack (PS) –  Shelf life enhancements (ASCP) –  Recipe validity (ASCP) –  Backlog management and CTB enhancements (RP)

•  Ubiquitous, high volume analy>cs –  Demantra PTP integra9on to APCC – Promo9on insights –  Improved Demantra integra9on to APCC – Custom measure and hierarchy support from Demantra to APPC – Improved repor9ng flexibility

–  High volume detailed repor9ng for order and excep9on details, and pegging – Improved root-‐cause analysis

–  Support for Oracle Database 12c in-‐memory

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 29

Analyze Promo9on Effec9veness

Analyze lig decomposi9on

Analyze top and borom performers

Drill down to promo9on details

Trade Planning Analysis in APCC


Analyze Build Plan

Analyze Excep9on Details

Analyze Order Details

View Pegging Details

Detailed Analysis in APCC


Produc9on Scheduling Synchronous make-‐pack

Supply Planning Shelf life and warehouse capacity

Asset Intensive SPP-‐EAM integra>on

Project driven supply chain ASCP-‐Primavera integra>on

Key New Industry Features •  Problem: need to synchronize upstream

and downstream produc9on stages

•  Key: –  Respect limits on intermediate storage

capacity and shelf life

–  Respect physical interconnec9ons between stages such as conveyors

•  Benefit: improved produc9on thru-‐put

•  Problem: need to determine repair vs. new buy for asset components

•  Key: –  Single workbench to forecast returns on

repair and handle replenishment of parts

–  Out-‐of-‐the-‐box integra9on with EAM

•  Benefit: reduced parts cost

•  Problem: need to model real-‐life supply constraints

•  Key: –  Respect shelf life expira9on and recipe

effec9vity date enhancements

–  Respect storage constraints

•  Benefit: improved plan quality and profits

•  Problem: improve visibility between project managers and material planners

•  Key: –  Project managers’ visibility to supply

constraints

–  Material planners’ visibility to key project ac9vi9es

•  Benefit: improved project adherence and reduced contract penal9es = profit

Process, Pharma, CG Metal, Process, F&B

Natural Res, U>li>es, Infrastructure, Telecom

Oil & Gas, U>li>es, Infrastructure, HT, Ind


Upcoming Func9onality Con>nued focus on UX, customer-‐driven industry features, and analy>cs


UX Improvements – Planning Workbenches

Modified Demantra Worksheets

Uniform Demand-‐Supply color scheme and appearance

Advanced Supply Chain Planning

Uniform supply planning UI

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UX Improvements – New Screens for Improved Plan Analysis

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Supply Planning Pegging Analysis

Enhanced Supply-‐ Demand details with in-‐line pegging

Customizable Workspaces and Plan Summary

Manage excep9ons related personal queries or create new favorite queries and metrics using a new UI paradigm


Resource-‐Driven Supply Planning Enhancements

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6 0

0

10

20

Day 1 Day 2 Day 3 Day 4 Day 5

Available Capacity

Required Capacity-‐ JIT

Maximum Capacity U9liza9on

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•  Maximize resource u9liza9on of capital assets by front loading capacity subject to upstream constraints


Project-‐Driven Supply Chain Analy9cs

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•  Projects supply chain dashboard –  Projects performance summary – On Time, Days Late, Projects Cost, Total Orders, Late Orders

–  Excep9ons summary by projects – Late Replenishments, Order with Insufficient Lead Time and Compression Days, Resource and Capacity Overloaded, Constraints

–  Top N late project demands and purchase orders

– More…

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Customer Operates

ü ON PREMISE

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ERP ERP

ü BUSINESS PROCESS SERVICES

ü MANAGED CLOUD SERVICES

Oracle Operates

Partner Operates

Customer Owns

Customer Owns

Software License Change Control

Software License Change Control

Change Control

Customer Owns

Own deployment Hosting and App Mgmt Services

Hosting and App Mgmt Services

Partners offer multiple cloud operating models, additionally Process mgmt, help desk, tuning, and extended planning services

Same EBS Instance Distributed VCP Instance(s)

Flexible Deployment Op9ons

Oracle On-demand


Expert VCP Partners, Broad Partnerships

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Accelerators Business Process Services

Engaged Solutions Partner Programs

Planning Data Quality

Logis9cs Network Op9miza9on

Integrated Business Planning

Co-‐development

Field Advisory Board

Oracle Validated Integra9ons

Hos9ng, Process Management

Help desk, Extended Planning Org

Industry templates

Fixed bid implementa9ons


VCP Empowers Modern Value Chain

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Core planning strategies to drive transforma>on

Drive growth through a customer centric supply chain

Control costs through a responsive supply chain

Execute strategy through performance-‐driven planning

Empower planners and managers to deliver berer results

Responsive

Customer-‐ Centric

Empowered Strategy-‐ Aligned


Oracle is commired to your success

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Execu9ve Sponsorship

Oracle Support

Financial Incen9ves

Oracle Account Team

Customer Feedback Programs

Rapid Start-‐Up Services

Packaged Integra9ons

Oracle Partner Network

Client Success Specialist


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www.oracle.com/scm

Documents

Enabling(Modern( Supply(Chain(Planning( …¬gura>ons’(MTS,’MTO’–ATO,’CTO,’ PTO,’ETO,’MRO/Service…)’ Comprehensive’supportfor’PLAN,’ integrated’with’execu>on’systems’for’