EBS Supply Chain Management Enabling Information-Driven Supply Networks Presenter’s Name...

EBS Supply Chain ManagementEnabling Information-Driven Supply Networks

Presenter’s Name

Presenter’s Title

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement


Oracle At-a-Glance

Globally…

#1 in Supply Chain Mgmt

#1 in Customer Relationship Mgmt

#1 in Human Capital Mgmt

#1 in Database

#1 in Industries

- Retail

- Communications

- Public Sector

- Professional Services

- Financial Services

• 275,000 total customers

• 220,000 database customers

• 30,000 applications customers

• 19,000 SMB apps customers

• 30,000 middleware customers

• 17,700 partners

• 60,000 employees

• 14,000 developers

• 7,000 support staff

Founded in 1977. Headquarters in Redwood Shores, CA with operations in 145 countries.


The CEO Agenda – Business Pressures

Customer Expectations• Product & Service Innovation• Higher Quality, Rapid Delivery• Channel Demand Variability• Decreasing Customer Loyalty

Margin Pressure• Intensified Global Competition• Limited Pricing Power• Economic Uncertainty• Shorter Product Lifecycles

Suppliers

Customers

Your Company

Compliance & Risk Mgmt• Corporate Governance• Industry Mandates• Communication Standards• Environmental Responsibility

Operational Complexity• Highly Customized Products• More Global Customer Base• Fragmented Supply Chains• Contract Mfg / Outsourcing


Plus, Pressure from China on the Rise

• Top outsourcing destination-- the factory floor for the world

• World’s 2nd largest economy

• Manufacturing costs in China are 36% less than in the U.S.

• Current China trade surplus isover $200B

- Exports to U.S. are $243B

- Imports from U.S. are $41.8B

• Fastest growing GDP- 2004 10.1%

- 2005 9.8%

- 2006 10.0%


Business Pressures Raise Complex Questions

… optimize supply networks to maximize resiliency?

… manage supply and delivery exceptions to minimize risk?

… select the right balance between outsourcing and in-house production?

… identify & eliminate low value processes without compromising quality?

… sense and shape demand to achieve financial goals?

… deliver perfect orders while still minimizing inventory?

… ensure service quality while relying on 3rd party service providers?

… comply with industry mandates and still maintain margins?

How Do I…


Address the Questions with Information

“Information about the package is as important as the package itself…”

Frederick W. Smith, Chairman and CEO


However, There Are Obstacles…

• Limited Partner Communications

• Disparate Systems, Processes, Technologies

• Fragmented Data in Information Silos

Core ERP

Customers

Suppliers

MaintenanceIndus

Planningi2

ConfigurationFirepond

BarcodingClearOrbit

ProcurementAriba

Field ServiceFieldCentrix

SourcingCommerce One

Intelligence Bus. Objects

Web StoreBroadvision

WarehousingManhattan

Product/Customer

Info

Product/Customer

Info

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo

ProductInfo


Overcomes theObstacles…


Information Driven Applications

• Start with a common data model that produces a single definition of key business entities (customers, suppliers, products, etc.)

• Build a robust suite of applications designed towork together

• Support modular deployment of tailorable business flows

• Promote low-cost integration with service oriented, standards-based architecture

Oracle’s Philosophyfor the E-Business Suite

DevelopMarket

Sell

Order

Plan

Procure

MakeFulfill

Service

Maintain

Finance

HR

Projects

Contracts

Customers,

Suppliers,

Products, …

Customers,

Suppliers,

Products, …


Information IntegrityA Comprehensive Technology Platform Optimized for DecisionMaking and Collaboration as well as Transaction Processing

FusionMiddleware

Database RAC / Grid

Enterprise Security

Role-Based Portal Access

PerformanceManagement

Analysis, Planning& Reporting

Com

plia

nce

Fra

mew

ork

Sys

tem

s M

anag

emen

t

Applications• Integration Services• Process Orchestration• User/System Configuration• Data Hubs

• Application Server• Web Services• Development Tools• Collaboration Tools

Complete

Integrated

Standards-based

Adaptable

Accessible

Secure

Scalable


Information IntegrityCreate a Reliable, Single Source of Truth with Data Hubs

CRM

ERP

Engineering

Manufacturing

Customers/ Suppliers

Imp

ort

&

Cle

an

se

Imp

ort

&

Cle

an

se

Pu

blis

h &

S

yn

dic

ate

Pu

blis

h &

S

yn

dic

ate

Administration& Security

Administration& Security

Access, Search& Transact

Access, Search& Transact

CommonData

Repository

CommonData

Repository

Applications FunctionalUsers

DataAdministrator

DataLibrarian

• Consolidate information regardless of source

• Improve data quality through data cleansing -- including merging and de-duplication

• Securely access & utilize information

• Syndicate and publish information to synchronize with internal & external trading partners

Collateral

Reports

Data Pools

WebCatalogs

PrintCatalogs


Information IntegrityRich Reporting and Analytics You Can Trust

• Out-of-the-box management reporting system

• Role-based, secure access

• Highly graphical, intuitive UI

• Hundreds of pre-defined key performance indicators and reports

• Summary information with seamless drill down to transaction detail

Better, Faster Decision Makingat Dramatically Lower Cost

“You cannot improve whatyou do not measure.”-- W. Edwards Deming,Professor, author, lecturer


• Product Lifecycle Mgmt• CAD Sharing & Viewing• Product Info Mgmt Hub• UCCnet Trading Connector• Project Management• Product Intelligence• Collaboration Suite

Product MgmtProduct Mgmt

• Order Management• Configurator• Advanced Pricing• Release Management• Sales Contracts• iStore, Receivables• Order Mgmt Intelligence

Order ManagementOrder Management

SC PlanningSC Planning

• Network Optimization• Demand Management• Forecasting & Modeling• Sales & Ops Planning• Advanced SC Planning• Constraint Based Optim• Collaborative Planning• Inventory Optimization• Global Order Promising• Predictive Trade Planning• Deductions & Settlements• Promotion Optimization• Planning Intelligence

• Sourcing• Procurement Contracts • iProcurement• Services Procurement• Purchasing• Supplier Collaboration• Advanced Pricing• Payables• Purchasing Intelligence

ProcurementProcurement

Supply Chain Footprint

Customers,

Suppliers,

Products, …

Customers,

Suppliers,

Products, …

DevelopMarket

Sell

Order

Plan

Procure

Make

Fulfill

Service

Maintain

Finance

Projects

Contracts

HCM


• TeleService• iSupport• Field Service• Mobile Field Service• Advanced Scheduler• Spares Management• Depot Repair• Service Contracts• Interaction Center• Service Intelligence

ServiceService

• Enterprise Asset Mgmt• Self-Service Work Reqs• Asset Tracking• Install Base• Property Management• Maintenance Intelligence

Asset Lifecycle MgmtAsset Lifecycle Mgmt

LogisticsLogistics

• Inventory Management• Mobile Supply Chain Apps• Warehouse Mgmt• Transportation Mgmt• Operational Planning• Forwarding & Brokerage• Freight Pay, Bill, Claims• Transportation Sourcing• Cooperative Routing• Sensor Based Services• Fulfillment Intelligence

• Production Scheduling• Discrete Manufacturing• Flow Manufacturing• Flow Sequencing• Shop Floor Management• Process Manufacturing• Mfg Execution System• Repetitive Mfg Optimization• Mobile Supply Chain Apps• Manufacturing Intelligence

ManufacturingManufacturing

Supply Chain

Footprint

DevelopMarket

Sell

Order

Plan

Procure

Make

Fulfill

Service

Maintain

Finance

Projects

Contracts

HCM Customers,

Suppliers,

Products, …

Customers,

Suppliers,

Products, …


Deliver Best-Practices Across Industries

• Financial Services

• Professional Services

• Retail / Wholesale Distribution

• Eng & Construction

Service

• Public Sector

• Healthcare

• Education & Research

Public Services

Manufacturing• High Technology

• Industrial Manufacturing

• Automotive

• Life Sciences

• Consumer Products

• Chemicals

• Aerospace & Defense

• Communications

• Travel & Transportation

• Utilities

• Oil & Gas

• Natural Resources

Asset Intensive


Oracle’s Information-Driven Supply Chain Management Offering Enables You to…

Get Richer Information. Make Faster Decisions. Deliver Better Results.

Manage Supply Chain

Risk

Manage Supply Chain

Risk

DeliverEnterpriseInnovation

DeliverEnterpriseInnovation

Drive Operational ExcellenceDrive Operational Excellence

DesignDesign PlanPlan BuyBuy MakeMake FulfillFulfill ServiceService MaintainMaintain


• Drive Operational Excellence

• Deliver Enterprise Innovation

• Manage Supply Chain Risk




World Class Demand ManagementSense & Shape Demand: Arrive at an Accurate Consensus Forecast

Gain Real-Time Visibility to All Demand Signals • Capture demand closer to the point of actual consumption;

forecast at a more granular level; accommodate multiple units of measure and currencies

Accurately Predict Demand via Adv. Analytics• Establish baseline forecast using quantitative & qualitative

data; utilize high precision statistical forecasting without requiring a statistical background

Rapidly Reach a Better Consensus Forecast• Collaborate with internal and external constituents; leverage

multi-dimensional analysis techniques; shape demand by managing product introductions and promotions

Shipments

MarketingForecast

Order History

Customer Sales

CollaborationWorkbench

Channel Data

DemandHub

DemandHub

“Corporations that have adopted demand-driven supply chains are outperforming their

competitors by a wide margin.”- Start with Demand


Holistic Supply PlanningRespond to Demand: Determine & Balance Capacities vs. Needs

A Single Solution for Supply Chain, Distribution & Mfg Planning

• Plan extended supply chain bysharing forecasts & supply commitswith customers & suppliers

• Improve shop floor efficiency withreal-time production scheduling

• Allocate available supply & capacityby channel, customer, or product

• Promise orders based on material availability and manufacturing / transportation / supplier capacities

• Quickly react to supply chain exceptions


Adv. Procurement for Materials & ServicesAchieve Best Cost, Quality, and Delivery

Enforce Policy Compliance• Continuously monitor performance via integrated analytics• Manage policy violations by exception • Integrate to finance with budget-based procurement

Streamline Procurement Processes• Gain efficiency via self-service & workflow apps• Speed collaboration with real-time exchange of docs• Eliminate process steps via back-to-back ordering

Reduce Spend on Goods and Services• Realize buying power by consolidating purchasing volumes• Maximize discounts with flexible sourcing methods• Evaluate / award quickly & consistently with user defined criteria


Mixed Mode ManufacturingBuild a Variety of Products Utilizing a Single, Flexible System

Discrete Flow / Lean

Process Lot-Based

Mixed Mode Manufacturing

ETOATO / CTO

MTS

ETOATO / CTO

MTS

• Mfg Execution (MES)• Quality Management• Lot/Serial Genealogy• Shop Floor Modeling

• Partner Collaboration• Enterprise Integration• Project Tracking• Mfg Intelligence

• Accelerate product / recipe development and newproduct introduction

• Increase plant flexibility, efficiency & responsiveness

• Drive efficient, compliant shop floor production

• Control product cost,quality, and compliance

• Outsource and offshorewith confidence


MES for Discrete & Process ManufacturingControl Demand-Driven Mfg with Integrated Shop Floor Execution

System Automation & Control

Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management

Reduced TCO / Complexity via Integrated Mfg Mgmt & Production Execution

MESMES

ERPERP

Corp Mgmt

Shop Floor Control

Production MgmtProduction Mgmt

Process Engineer• Manage recipes & advanced

process instructions

Production Supervisor• Create & manage batch status• Log non-conformances

Dispensing / Prod Operator• Pre-weigh designated

ingredients• Process batch operations

Operator• Work from dispatch list• Record transactions, quality

info, work completion, and time• View work instructions and

component info• Report production exceptions

Supervisor• Review & resolve exceptions• Monitor shop floor progress

MES for Discrete MfgMES for Discrete Mfg MES for Process MfgMES for Process Mfg


Integrated Order & Warehouse ManagementAccurately Quote, Capture, and Fulfill Simple to Complex Orders

• Capture all orders via a single, high-volume system regardless of channel

• Achieve a single, accurate view of all inventory -- raw mat’ls, WIP, finished goods

• Process warehousing transactions via RFID-initiated shipping and receiving

Collaboration Intelligence

ForecastingOrder Accuracy

CustomersSuppliers

Multi-ChannelDemand

OrderMgmt InvoiceInvoiceCheck

AvailabilityCheck

AvailabilityCaptureOrder

CaptureOrder

Con-figureCon-figure PricePrice

WMSLabel, Replenish,

Move, Count, AssembleLabel, Replenish,

Move, Count, AssemblePick, Pack,

ShipPick, Pack,

Ship

Receive,Inspect,Putaway

Receive,Inspect,Putaway

Plan Shipment

EnterpriseIntegration


Product Lifecycle ManagementDrive Innovation and Improve Product Profitability

Portfolio ManagementProduct Intelligence

ProductData

Repository

ProductData

Repository

Collaboration

RetireRetireDesignDesign

ReleaseReleaseRamp-upRamp-up

Mainte-nance

Mainte-nance Proto-

type & Test

Proto-type & Test

VolumeMfg

VolumeMfg

ConceptConcept

Accelerate NPI via

Phase gate lifecycle tracking, creation of mBOM from eBOM, closed-loop change

mgmt, and directmaterial sourcing

Enhance Collaboration via

Secure web conferencing, CAD

visualization / mark-up, and supplier collaboration

Centralize & Control Enterprise Product Data via

Product data repository for structured & unstructured data,and configuration / product structure management

Drive Product Decisions via

Real-time intelligencewith drill-downs, project based product portfolio mgmt, and idea mgmt

with prioritization

Manage Product Compliance via

Pre-built compliance checks in design,

source & mfg processes

New

Product

Intro


Differentiated Customer ServiceExpand Services with Unified Approach to Customers & Products

• Coordinate the delivery of all global services within a single system

• Efficiently resolve issues at customer’s convenience (time, location, ...)

• Increase revenues & loyalty while decreasing cost (contact, research, ...)

Self-Service

Agent-Assisted

On-Site Repair

In-House Repair

3rd Party Services

Internal Help Desk

• Workflow-driven entitlement verification

• Comprehensive install base configuration data

• Optimized resource & parts scheduling

• Integrated spare parts plng & rev logistics

• Mobile / disconnected tools for field techs

• Direct return or exchange / refurb of products

• Field service to depot refurbishment flow

• Auto-updates of product config & repair history

• Seamless customer invoicing (via fin apps)


Global Transportation ManagementOptimize Logistics Networks through Global Control, Local Execution, and Central Management

OptimizeModes& Routes

• Plan across multiple legs, tiers, nodes, and modes (truck, air, train, ocean)

• Handle all supplier inbound and customer outbound deliveries

• Display results via intuitive, graphical UI

AutomateExecution &

CollaborationPayments

Event Mgmt

• Manage internal and 3rd party fleets(eg. LSPs) in the same system

• Enable partners to transact and“self-update” (eg. pick-up request)

• Handle exceptions via automatedevent management notifications

• Integrated with shipping, receiving, inventory management & purchasing

Drive Down Logistics Costs & Increase On-Time Delivery by Managing the International Movement of Goods within a Single, Scalable System


• Achieve a Single Source of Truth About Assetsvia… a global asset repository containing all operations/maintenance/financial data

• Improve Asset Visibility, Tracking, and Controlvia… an e-record of history incl. secure reporting, policy mgmt, and financial controls

• Balance Operational Effectivity and Financial Efficiencyvia… asset portfolio management (capital planning, project mgmt, build-out, retirement)

• Streamline and Optimize Asset Operationsvia… workflow-enabled operations, maintenance, and finance processes

PlanBuild /

AcquireOperate /Maintain

Retire /Dispose

CommissionConcept

Retirement

Monitor Performance

Asset Lifecycle ManagementAdopt a Holistic Approach to Managing Capital Assets

Role-Based Intelligence DashboardsReduce Risk via Smarter, Faster Decision Making

Daily Results,Daily Results,Flexible PeriodsFlexible Periods

Flexible ComparisonsFlexible Comparisons

MultipleMultipleCurrenciesCurrencies

Graphs /Graphs /TrendsTrends

PerformancePerformanceMeasures (KPIs)Measures (KPIs)

Reports w/Reports w/DrilldownDrilldown

• Get rapid resultswith an out-of-the-box mgmt reporting system

• Get the right information with role-based dashboards

• Get complete information with seamless drilldowns

Drag & DropDrag & DropPortletsPortlets


Strategic Network OptimizationDesign Supply Chains for Resiliency

• Manage global risk more effectively by anticipating supply & demand fluctuations

• Increase profits thru asset rationalization- Model supply chain to determine optimal mix and

location of facilities and equipment

- Analyze scenarios via geographical visualization

• Reduce costs through dynamic sourcing- Leverage network plan to improve sourcing,

inventory, and replenishment strategies Graphical Simulation of Network

Continuously Evaluate the Cost / Revenue Impact ofGlobal Supply and Fulfillment Decisions


Global Inventory OptimizationAchieve Greater Order Fulfillment Flexibility

• Improve delivery accuracy by storing common subassemblies which are completed only when an order is placed

• Maximize on-time product delivery while minimizinginventory costs

• Reduce inventory write-offs

Determine Inventory Levels & Locations Based on Anticipated Demand

Inv

en

tory

Co

st

Product Delivery

10 30 50 75 80 85 90 95 100

WithoutOracle

WithOracle

LowerLowerInventoryInventory

CostCost

ImproveImproveOn-TimeOn-TimeDeliveryDelivery


Built-In ComplianceEnforce Compliance to Internal Policy and External Regulations

• Workflow-driven process enforcement

• Corporate Governance (SOX, EU Anti-Fraud Directive)

• WEEE and RoHS

• UCCnet

• RFID Labeling

• ERES Extended to Mobile Supply Chain Apps

Cross-IndustryCross-Industry

• 21 CFR Part 11 for Manufacturing, Service, and Maintenance(Life Sciences & CPG)

• 21 CFR Part 8xx (Life Sciences)

• RosettaNet (High Tech)

• HIPAA (Healthcare)

• FAA/JAA regulations foraircraft maintenance (A&D)

Industry-SpecificIndustry-Specific


CustomerSuccess


A Few Customers

MagnitogorskIron & Steel

The PepsiBottlingGroup


What Customers are Saying

“With Oracle, we know exactly what product we have, and where, at any point in time. The inventory accuracy level is so high that our auditors no longer require us to take a physical inventory.” -- Mike Yeager, Dir of Logistics

“With Oracle we have cut our production lead time in half, achieved near perfect inventory accuracy, and improved our ability to provide sales follow-up on product samples & customer projects.”

-- Perry Cozzone, CIO

“With more accurate ship dates and performance statistics, we have greater visibility into the order cycle. We compressed manufacturing lead time as well.”

-- Dave Richards, CIO & VP of IT

“Better product lifecycle management is one of our top 3 priorities and we found Oracle to be the best choice to help us meet our customers’ dynamic requests with quality products.”

-- Todd W. Herrick, Chairman & CEO


What Customers are Saying

Medical Korea Telecom

“With Oracle E-Business Suite, we moved from weekly to daily planning, which has significantly improved our response time.”-- Clair Walizer, Sr. Developer & Analyst

“Oracle Transportation Management continues to play a critical role in our growth strategy as it helps us deliver superior customer service and pass-through cost savings across the supply chain.” -- Tom Thompson, Group General Mgr

“The Oracle solution provides a broad spectrum of information about our service and our customers, helping us deliver better service to European hospitals.”-- Rob Ridder, Senior IT Mgr

“With our Oracle solution, we've seen innovation in our work processes and better use of assets and manpower.”-- Dong-Woo Kim, Financial Manager


reduced new product development time by 63%

improved forecast accuracy by 15%

reduced inventory costs by $350M

increased inventory accuracy to 99%

saved $77.5M in product & service procurement costs

reduced manufacturing cycle time by 58%

improved production capacity of existing facility by 5%

reduced manufacturing lead-times from 17 to 8 days

increased warehouse productivity by 30%

What Customers are Achieving


reduced order processing time by 83%

reduced online order errors by 90%

reduced shipment costs by $2.9M

increased on-time shipments by over 18%

increased freight under management by 400%

resolves 98% of customer issues online

reduced maintenance inventory costs by $25M

reduced equipment breakdowns by 40%Al GhurairGroup

What Customers are Achieving


Drive Operational Excellence

Deliver Enterprise Innovation

Manage Supply Chain Risk



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