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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Value Chain Planning for JD Edwards Oracle Supply Chain Management
Hans-H.Schulz Sales Consultant Oracle October 21, 2014
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Safe Harbor Statement
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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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Program Agenda
Why is Planning important?
Value Chain Planning for JDE
Benefits and Customer Results
1
2
3
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Program Agenda
Why is Planning important?
Value Chain Planning for JDE
Benefits and Customer Results
1
2
3
5
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Business & Supply Chain Challenges In the 21st century
Increasing Customer Expectations
Globalization, Complexity & Risk
People & Talent Enablement
• Permanent volatility • Shrinking loyalty
• Shorter lifecycles • Long tail products
• Outsourced manufacturing
• Compressed delivery times
• Skill shortage • Employee
empowerment
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Expanding Product Portfolios
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
There is Ample Opportunity for Improvement How good are today’s planning processes?
Source: Supply Chain Digest – Supply Chain Planning Benchmark study 2014
55% 22% 10%
Have a modestly integrated planning process across the company
Report having many disconnected individual disjointed plans across the company
Have a highly-integrated supply chain planning environment top-down oriented
Say they have a highly-integrated supply chain planning environment both top-down and bottom-up oriented
7
9%
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Modern Value Chain Planning
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Value Chain Planning
Customer Centric Responsive
Performance Driven Empowered People
Sense demand more quickly and shape for revenue growth
Evolve to improved and continuous Integrated Business Planning from
Sales and Operations Planning
Powerful analytics give knowledge workers new insight to continuously monitor value chain performance
Improve agility by incorporating risk and postponement strategies and
quickly respond to events
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4 3
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Program Agenda
Why is Planning important?
Value Chain Planning for JDE
Benefits and Customer Results
1
2
3
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Value Chain Planning for JDE Customers
• Empower modern supply chains – Digital, Connected, Complete
• Deliver best practices and industry-specific capabilities – Thriving community of successful customers and business consultants
– Cross-trained implementation resources available at Oracle and partners
– VCP support engineers trained on JDE
• Provide flexible deployment options – On Premise
– Oracle Managed Cloud Service
– Business Process Service (SaaS through approved VCP partners)
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Market-leading applications with high degree of investment and innovation
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
MAKE THE FORECAST ACTIONABLE
INTEGRATE KEY DATA SOURCES
MODEL UNIQUE DATA RELATIONSHIPS
EVERYONE TALKS THE SAME NUMBER
Align data from multiple sources, closer to the point of consumption
Leverage pre-built integrations
Leverage extensible model for new business requirements
Capture behavior in your data – look for influencing factors
Manage exceptions – Outliers, trends, errors, cause and effect
Leverage advanced statistics to improve forecast accuracy
Involve all stakeholders – Move from periodic to continuous process
Hold everyone accountable – Audit and measure exceptions
Keep track of consensus and changes – Waterfall analysis
Drive short and mid term forecast into operations planning
Integrate with financial planning – Integrated Business Planning
Provide insight to your trading partners
Process – Demand sensing and consensus The Oracle difference: capture demand closer to the point of consumption
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
• Sense demand real-time, at more granular level, and closer to the point of consumption
• Aggregate forecasts are convenient but not always better
• Forecast predictions should adjust for and reflect differences in local, regional, SKU, time period, customer, and so on
Closer to point of consumption
Sense demand at the right level of detail
Item
Ship To A
Time Period 1
Time Period N
Demand history Promotion lift Seasonality Cannibalization Causal factors
Product Group
Item
Customer
Ship To B
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
• Look for influencing factors – Holidays, payment cycles, weather, price changes, order cycles
• Manage exceptions – Sparse data, volume shifts, short vs long term trends, outliers
• Leverage built-in intelligence – Automatically select which level’s data to use for forecasting
– Automatically select blend of forecast methods
– Use accuracy metrics such as MAPE, MPE, WMAPE
Model data relationships
Capture inherent behavior in your data
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
• Create consensus plan through continuous collaboration across sales, marketing, finance, supply chain and customers
• Each participant gets tailored view
• Combine top down business planning with precise bottom up forecasts
• Automate process with workflow
• Manage final approval process and exceptions - Track accuracy of forecast decisions, and review
Consensus demand
Everyone uses the same number
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Marketing Manager: Category by Quarter
Operations Manager: Constrained Forecast
Sales Manager : Product family by month
Finance Manager: Revenue by Q
Personalize for each role
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ENABLE BEST IN CLASS BUSINESS PROCESSES
REDUCE PLANNING CYCLE TIME
MAKE BETTER DECISIONS FASTER
EXECUTE TO PLAN
Plan your entire supply chain
Reduce the number of plans
Comprehensive manufacturing and distribution planning
Automate planning decision making, improve planner productivity
What if simulation and root-cause analysis
Improve operations analysis
Integrated planning and scheduling
Enforce planning decisions when promising orders
Collaborate with suppliers and automate replenishment (VMI)
Drive tactical planning processes based on S&OP plan
Design resilient supply chains and enable postponement
Monitor tactical planning processes
Process – Plan for profit and execute to plan The Oracle difference
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Manufacturing Operations Analysis
Distribution
Simultaneously plan all manufacturing and distribution facilities
Reduce number of plans required
Simultaneously plan material and capacity
Plan for mixed mode manufacturing – A&D, project, configure-to-order, process, discrete, lean
Leverage detailed scheduling constraints
Product family and item level planning
Bills of distribution and transfer rules
Fair-share allocation
Inventory policies at multiple levels
Inventory rebalancing
Load consolidation and ship method selection
Global forecasting, local supply allocations
Include customer and supplier facilities
Evaluate plan output trends
Measure key corporate performance metrics tied to your tactical plans
Compare planning runs
Perform aggregate to detailed analysis
Slice and dice plan output along various dimensions (facility, supplier, customer, product category, demand channel, project)
Comprehensive supply and distribution planning
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
• Reduce latency – Reduce the number of plans required
– Multiple planners work on a single plan
• Evolve the planning model at your own pace – Make better decisions faster
– Analyze exceptions and related exceptions
– Define telescoping granularity: time, product, resource
– Leverage date-effective sourcing rules
– Use assignment sets for different sourcing scenarios
– Use item simulation sets
Simultaneous material and capacity planning across all organizations
Tactical supply planning
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Mass edit item attributes for simulation
Analyze resource requirements
Analyze material requirements
View and release orders
Supply Planner Workbench
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Plan summary
Distribution plan horizontal view
Find consolidation opportunities
Truck utilization targets
Distribution Planner Workbench
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
• Multi-level BOMs and inter-org lead times
• Resource, material, supplier constraints
• End item substitution, allocation
• Order backlog workbench and split order lines
Global Order Promising Integration to JDE 9.1 Real-time Order Promising
Call GOP from sales order entry screen in JDE
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
• Estimate planning % and calculate dependent demand in Demantra DM
• Promise Orders using GOP
• Plan for option-specific (lead time, sourcing, routing) supply in ASCP/RP
• Execute in JDE E1
Support for Configure-to-Order Holistic Planning for Models and Options
a
Forecast PTO/ATO Models and specific
Configurations
Explode Forecast to Options
Consume forecast
Enter SO for Model and Options
(ATP/CTP)
Create configuration
Order or build configurations
and options Plan configurations and options
Order
history
Demand Management
Supply Planning
Ship to customer
Order Promising
Match, schedule, or unschedule
JD Edwards
Release
orders
Schedule
orders
Plan
orders Optionally, explode forecast to options
Supplier Collaboration
Publish order forecast for procured configs
Receive supply commit for procured configs
Predict attach rates (options’ mix) based
on relative sales
S&OP and Reporting
Reports to Analyze Demand & Supply of
Model, Options and BOM components
Value Chain Planning
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Value Chain Planning: Current Release and Roadmap
Demand Management • In-Memory Consumption-Driven Planning • Forecast simulation, NPI enhancements • Use management and control
Supply Chain Planning • Process effective dates & Shelf-life enhs. (ASCP) • Warehouse& premium capacity enhs. (ASCP) • Demand priority API, ship sets, CTB enhs. (RP) • Synchronous make-pack scheduling (PS)
Trade Promotions Management • Shipment consumption forecasting • Promotion planning analytics enhancements • Promotion creation and simulation enhs.
Sales & Operations Planning • Custom hierarchies synchronization w/ APCC
Maintenance and Service Parts Planning • SPP Integration to Enterprises Asset Mgmt.
Value Chain Planning Analytics • In-Memory Performance-Driven Planning • Enhanced integration with DM and DRP (APCC)
Demand Management • Customer specific price lists • Improved inventory and supply planning int. • Improved workflow and global instance support • Collect data above site level
Supply Chain Planning • Project-driven supply chain (ASCP w/ Primavera) • MRSL enhancements for distribution planning • JDE E1 integration enhancements • ECO use-up, Flow Manufacturing support (RP) • Enable filtering of Collection data (performance) • Improved resource utilization UI (ASCP)
Sales & Operations Planning • Load multiple supply plans in parallel
Maintenance and Service Parts Planning • Service parts planning Automotive enhs.
Value Chain Planning Analytics • High-volume detailed reporting for orders,
exceptions, and pegging • Plan health and exception summary scorecards
Demand Management • Customer-driven enhancements to Demantra • Project driven supply chain (w/ Primavera)
Supply Chain Planning • Customer-driven and UI enhancements • JDE E1 integration enhancements
Trade Promotions Management • In-Memory Consumption-Driven Planning
Integration
Sales & Operations Planning • Customer-driven enhancements
Maintenance and Service Parts Planning • Inventory policy planning • Replenishment against inventory policy (SPP) • Service parts planning enhancements
Value Chain Planning Analytics • Customer-driven enhancements • Usability and performance enhancements • In-Memory Performance-Driven Planning
Enhancements
Release 12.2.4 Aug 2014
What’s Next 0-12 month planning cycle
Future Directions Post 12 month planning cycle
Restricted to event use only. 25
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Value Chain Planning Integration Overview
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JD Edwards EnterpriseOne
Planning Order Recommendations
Promotions and Settlement Payments
Master Data and Transaction Data
Value Chain Planning
Demantra Demand Management (DM)
Demantra Advanced Forecasting and Demand Modeling (AFDM)
Demantra Predictive Trade Planning (PTP)
Demantra Trade Promotion Optimization (TPO)
Demantra Deductions and Settlement Management (DSM)
Demantra Real Time Sales and Operations Planning (RTS&OP)
Advanced Planning Command Center (APCC)
Advanced Supply Chain Planning (ASCP)
Inventory Optimization (IO)
Rapid Planning (RP)
Production Scheduling (PS)
Strategic Network Optimization (SNO)
Global Order Promising (GOP)
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. 28
Integration Details – Demand Planning
JDE E1 Updates
JD Edwards EnterpriseOne
JDE E1 Forecast & Planning Extracts
Payments
Payment Requests
Deductions
Approved and Denied Deductions
Master and Transactional Data
Financials
Forecasting
Forecasts
Collected Data (ODS)
Demand Management and Advanced Forecasting
Sales and Operations Planning
Trade Promotion Planning and Optimization
Demand Signal Management
Canonical Data Model
Inventory Optimization Production Scheduling
Strategic Network Optimization Advanced Supply Chain
Planning Advanced Planning Command Center Collaborative Planning
Rapid Planning
Global Order Promising
Value Chain Planning
Plan Data (PDS)
Order Management
Procurement
Inventory
Manufacturing
Configurator
Customers, Items, Sales History, Financial
Forecast, Planning Order Recommendations
PIP JDE E1 Extracts
VCP Collections
User Maintained Data A PIP repository for VCP data
Promotions and Settlement Payments
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. 29
Integration Details – Advanced Planning
JDE E1 Updates
JD Edwards EnterpriseOne
JDE E1 Forecast & Planning Extracts
Purchase Order, Transfer Order, Work Order Recommendations
Work Order Deletions
Master and Transactional Data
Financials
Forecasting
Collected Data (ODS)
Demand Management and Advanced Forecasting Sales and Operations Planning
Trade Promotion Planning and Optimization
Demand Signal Management
Canonical Data Model
Inventory Optimization
Production Scheduling
Strategic Network Optimization
Advanced Supply Chain Planning
Advanced Planning Command Center
Collaborative Planning
Rapid Planning
Value Chain Planning
Plan Data (PDS)
Order Management
Procurement
Inventory
Manufacturing
Configurator
Orders (Work, Transfer, Purchase, Sales) Items, BOMs, Resources, Rtgs, Orgs,
Calendars, Suppliers, Customers
Create, Cancel, Reschedule Work Orders, Transfer Orders, Purchase
Orders
PIP JDE E1 Extracts
VCP Collections
User Maintained Data A PIP repository for VCP data
JDE E1 Order Promise Business Service
Global Order Promising Global Order Promising API
Sales Order Entry Interactive
VCP Release
Support for Configured
Items
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Program Agenda
Why is Planning important?
Value Chain Planning for JDE
Benefits and Customer Results
1
2
3
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Proven Solution Widely Adopted by JDE Customers
And more …
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Innovative Industry Applications
AEROSPACE & DEFENSE High Quality; Low Cost; Compliance • Project Driven Supply Chain • Supplier Collaboration • Integrated Business Planning
AUTOMOTIVE Lowest Cost, Highest Efficiency • Production Scheduling • Demand Driven Supply Chain • Supplier Collaboration
PROCESS INDUSTRIES Highest Quality and Utilization • Formula/Blending Optimization • Quality Yield Planning • Service Parts Planning for EAM
CONSUMER GOODS Customer-Centric Demand-Driven • Trade Promotion Optimization • Demand Sensing • Demand Shaping
RETAIL AND DISTRIBUTION Respond Profitably to Demand • Demand Signal Management • Inventory Optimization • Consumption Driven Planning
HIGH TECHNOLOGY Controlling Complex Supply Chains • Project Driven Supply Chain • Optimize Inventory • Rapid Planning
MANUFACTURING Maximize Efficiency • Production Scheduling • Demand Driven Supply Chain • Rapid Planning and Shop Floor Execution
COMMS, MEDIA & ENTERTAINMENT Demand Driven • Consumption-Driven Planning • Inventory Optimization • Customer-Centric and profitable delivery
MEDICAL DEVICES Compliance and Efficiency • Demand Driven Supply Chain • Inventory Optimization • Rapid Response to demand and
supply changes
PHARMACEUTICAL Compliance and Efficiency • Demand Driven Supply Chain • Inventory Optimization • Project Driven Supply Chain
SEMICONDUCTOR Planning for Extended Supply Chains • Supplier Collaboration • Binning Planning Support • Planning Quality Management
NATURAL RESOURCES Maximizing Uptime and Efficiency • Enterprise Asset Management • Service Parts Planning • Supply Planning
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Benefits of Value Chain Planning Reported customer results
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38% Reduction in
Inventory
30% Reduction in
working capital
90% Reduction in planning
cycle time
56% Improvement in
forecast accuracy
40% Better order fill rates
5% Improvement in
gross margins
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Empower Modern Value Chain
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Core planning strategies to drive transformation
Drive growth through a customer centric supply chain
Control costs through a responsive supply chain
Execute strategy through Integrated business planning
Empower knowledge workers to deliver better results
Responsive
Customer- Centric
Empowered Strategy- Aligned