Demantra & ascp
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Transcript of Demantra & ascp
Using Oracle Demantra & ASCP in a Global Planning Environment
Phillip BrownResMed
16 August 2010
The most comprehensive Oracle applications & technology content under one roof
Presentation Outline
• Overview of ResMed operation• Reasons for implementing Oracle Demand
Management/Advanced Supply Chain Planning• Key elements
– People, integration, improving forecasts, tips & traps
• Conclusion
ResMed…overview
Overview Earnings >1Billion USD annually manufacturing sites Sydney & Singapore 95% of production exported Demantra implementation commenced March 2008 Approximately 100 Demantra users globally Interfaces with Oracle ERP for manufacturing & distribution
ResMed…global operations
Why implement?Tangibles…
• Positive ROI– Reduce inventory– Reduce backorders
or lost sales
Intangibles….• Manage increased
business complexity• Introduce process
stability• Reduce dependence on
specific individual knowledge
• Provide foundation for future growth
Why implement…tangible reasons• Maximum inventory reduction
from forecast accuracy achieved– Current forecast accuracy ~90%
• Variation in supply chain now greater challenge– Variations in shipping times– Delays through customs– Stock discrepancy & quality issues– The need to rebalance between
nodes without triggering new builds
Why implement…intangible reasons
• Key drivers for Demantra– Increasing distribution complexity– Risks associated with reliance on
individuals– Risks with lack of robustness in
existing system– Need for seamless global system that
facilitates accountability and visibility
Why implement…intangible reasons
• Key drivers for ASCP– Increasing distribution complexity– Need for more effective optimisation
model– Need to remove reliance on
individuals– Risks with lack of robustness in
existing system
Musings about Demantra & ASCP
Why Demantra wont improve your forecast accuracy…further
Do I have the right people?
Getting ASCP & Demantra to work together
Tips & traps…I wish I hadn’t done that!
People puzzle…
– caliber of people available to perform various roles
– defining ownership between Business Process and IT
• Degree of autonomy of users
Demantra, & to some extent ASCP evolution will be influenced by…
People puzzle…
– System developers– Database administrators– Power users (demand planners)– Casual users
Key users involved with the running of Demantra…
Integrating ASCP & Demantra…
– Create customer/warehouse combinations in Demantra
• Load based on warehouse
– Create customer/region combinations in Demantra
• Map regions to warehouses through dynamic combinations table
Loading forecasts to ASCP
Integrating ASCP & Demantra…
– simple distribution operation– creates visibility of warehouse demand in Demantra– data integrity for customer/region combinations is not
available from source
Downside…– changes in Warehouse source for a given customer is not
easy to update in Demantra…can lead to erroneous forecasts
Using Customer/Warehouse combinations in Demantra…
Integrating ASCP & Demantra…
– allows greater flexibility to change distribution network without impacting forecast
– could facilitate forecasts by territory/sales person or other similar splits
Downside– requires available data integrity to support this…
ResMed didn’t have this on a global basis
Using Customer/Region combinations in Demantra…
Improving forecast accuracy…
– Many sales incentives encourage customers to buy in erratic patterns. Erratic demand makes forecasting difficult.
Modify buyer behaviour rather than modifying forecasts
Tips & Traps…tips
• Bucketing of demand– Not too much/not too little gives a balance
between system performance and quality info
– ResMed option• Capture data by customer for top 50% revenue• Bundle data of customers for next 30% revenue• Bundle data for remaining 20% revenue
Tips & Traps…tips
• Capture demand not sales– To give true indication of future potential demand– Recognises customer orders in the period they
were requested, whether shipped or not, as opposed to shipped or invoiced orders
– Forecasts in future periods are then based on customers desires rather than operation capability at a previous point in time
Tips & Traps…tips
• Create separate inputs for functions– Such as separate series to create visibility of
user inputs– create clear override hierarchy for forecast
modification– Creates opportunity for input of reference
forecasts for future comparison or negotiation (eg Marketing/Finance series)
Tricks & Traps…traps
• Maintaining data for full spectrum of items– Ignoring data for “inactive” codes may present
problems later for things like exception reports
• Avoid inappropriate use of fields– inappropriate/inconsistent use of fields such as
“Territory” makes them difficult to use for meaningful data capture later
Conclusion• Support through implementation
– Oracle consultants provided effective guidance in the direction we took
– This was useful in either tempering our expectations, developing our ideas or providing alternatives to arrive at effective solutions
– Few changes were made after implementation largely as a result of an effective collaborative approach between Oracle & ResMed during development
Conclusion• Future direction
– Our key challenge now is implementation of ASCP
– Objective is constraint based optimisation– Horizon of at least 12 months to enter this
phase– Implementation of unconstrained ASCP as
precursor to this
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