Oracle Advanced Planning - Twin Cities...

Collaborative Planning

Oracle Advanced Planning

David W. Dosland Sr. Manager, Manufacturing and Planning Demonstrations

Traditional Collaboration Process Multi-step, high latency, limited collaboration

Customers Suppliers

Tier 2

Tier 1

Distribution Plans

Production Plans

Manufacturing Plans

t = weeks

Supply Planning Process

?

Marketing Forecast

Sales Forecast

Manufacturing Forecast

Demand Planning Process

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Traditional Collaboration Process

Ÿ  Low forecast accuracy –  Limited collaboration with customers

Ÿ  High inventory –  Too much ‘just in case’ inventory

Ÿ  Low visibility to supplier’s constraints and schedules –  Limited collaboration with suppliers

Ÿ  High indirect costs –  Extensive expediting and inefficient communication

Direct impact on your bottom and top line


Our Solution

Oracle Collaborative Planning E-Business planning solution: zero latency, real-time collaboration

Internet

Customers Suppliers

Tier 2

Tier 1

Marketing Forecast

Sales Forecast


Single Holistic Plan

t = hours

Demand Planning Process Supply Planning Process

Consensus Forecast

Automated exceptions

Portal Portal

Collaborative demand plan

Collaborative supply plan Automated

exceptions Automated exceptions

Collaborative Planning Process

Oracle Collaborative Planning

Ÿ  Improve forecast accuracy –  Collaborative demand planning with customers

Ÿ  Increase visibility and reduce shortages –  Collaborative supply planning with suppliers –  Collaborate across multiple tiers

Ÿ  Reduce inventory carrying cost –  Vendor managed inventory –  Consigned inventory

Ÿ  Analyze demand and supply fluctuations –  Waterfall analysis

Ÿ  React quickly to supply chain events –  Supply chain exception management –  Global fulfillment visibility

Key capabilities


Collaborate with Customers

Ÿ  Improve forecast accuracy –  Get visibility to customer demand

changes

Ÿ  Improve delivery performance –  Provide accurate supply commits to

customers –  Identify supply/demand mismatches

Ÿ  Reduce non-value added costs and exception overload

–  User-configurable exceptions –  Automated exception handling via

workflow

Improve customer service and reduce inventory

Customer You

Consensus forecast

Run plan

Order forecast

Run plan

Supply commit

(capacity)

Optional

Sales forecast

Forecast


Collaborate with Suppliers

Ÿ  Reduce shortages and improve supplier delivery performance

–  Provide order forecasts to your suppliers

–  Identify supply/demand mismatches

Ÿ  Respond better to supplier exceptions

–  Get visibility to your supplier’s constraints

Ÿ  Reduce non-value added costs and exception overload

–  User-configurable exceptions –  Automated exception handling via

workflow

Improve plan accuracy and reduce planning cycle time

You

Consensus forecast

Run plan

Supplier

Run plan Order

forecast

Supply commit

(capacity)

Sales forecast Forecast

Optional


Collaborate with Suppliers

Ÿ  Execution - Oracle iSupplier Portal –  Involve suppliers in your procurement process –  Suppliers view or maintain agreements, orders,

ASNs, receipts, returns, quality, delivery and shipment schedules, invoices, and payments

Ÿ  Planning - Oracle Collaborative Planning –  Involve suppliers in your planning process –  VMI, including exceptions –  Waterfall analysis - compare customer forecasts with

supply commits –  Global inventory and fulfillment visibility –  User-configurable exceptions

Ÿ  Seamless integration with ERP –  Generate replenishment orders in Oracle Purchasing –  Share products, suppliers, order modifiers, approved

supplier lists (ASLs), and sourcing rules

Supplier collaboration through a single portal

iSupplier Portal

•  Orders

Supplier Portal

Collaborative Planning •  Forecasts

•  Exceptions

•  VMI •  Waterfall analysis

•  Pegging •  Capacity

•  ASNs •  Receipts

•  Invoices •  Payments •  VMI


Contract Manufacturer

You

Multi-tier Collaborative Planning

Supplier

Lack of visibility and synchronization across extended supply chain

Orders for key

components Run plan

Forecast

Customer Demand for End products

Run plan

Run plan

Forecast

“Best guess”” forecast

Demand for assemblies

Run plan


Multi-tier Collaborative Planning

Ÿ  Plan your extended supply chain –  Share forecasts and supply commits with

customers and suppliers –  Get visibility to supplier capacity –  Reallocate key components –  Make alternate sourcing decisions

Ÿ  Reduce inventory cost and improve fulfillment

–  Suppliers manage your inventory –  Manage your customers’ inventory

Ÿ  React quickly to supply chain exceptions

–  Waterfall analysis –  User-configurable exceptions –  Automated exception handling via workflow

Full visibility and synchronization across extended supply chain

Contract Manufacturer

You Supplier Customer

Run plan

Optional

Forecast for key components

Supply commit for assemblies

Supply commit for key components

Demand for assemblies

Run plan

Demand end products

Supply forecast

Consensus forecast


VMI and Consigned Inventory With suppliers and customers

You Supplier Customer

Receive items

Pay on receipt or use

Check inventory status

Ship items

VMI Agreement (with supplier)

VMI Agreement VMI Agreement -

Receive items

Pay on receipt or use

Ship items

VMI Agreement (with customer)

Send consumption advice


Supply Chain Exception Management

What is the problem?

Planning run

Next Planning run

! ! ! !

Highlight disruptions when they occur

What is the impact?

How do I resolve it?

How well did I do?

Custom and seeded exceptions Configurable thresholds & priorities

Demand-supply allocation, Simulation, Workflow

Business intelligence

Customer order impact analysis via supply chain pegging

Supplier short of

commitment

Your forecast is short of

commitment

Supplier commits

more capacity

Customer lowered forecast


Integrated! Integrated planning, execution, and collaboration

Consensus Forecast

POs, Reschedules

Collaborative Planning

POs Reschedules

Forecast

Order Forecast

Order Forecast

Order Forecast

Supply Commit

(capacity)

Supply Commit

(capacity)

Demand Planning

Inventory Optimization

Advanced Supply Chain

Planning

Global Order Promising

Purchasing

Suppliers

Customers

Promised Orders (CTP)

Time-phased Safety Stocks


Scalable and Open Architecture

Scalable and Open Architecture

Ÿ  Enterprise and trading partner portals

Ÿ  Runs against all versions of Oracle EBS

–  Supports 11.0 and 11i –  Can be deployed in

distributed mode

Ÿ  Standards based –  Deploy against any other

ERP or legacy system –  XML, EDI, and flat file formats

Ÿ  Reliable –  All plan information resides in

the database –  Hot backup and recovery

Advanced Planning

A P I S

Trading partners Internal Users

Internet

Oracle 11.0, 11i

Legacy Systems

XML EDI Flat file

Order Promising Engine

Portals

Analytical Workspaces

KPIs Workflows Plans


Configurable Collaboration Rules

Ÿ  Secure access –  Configurable security rules

Ÿ  Avoid exception overloads –  User-defined exceptions –  Flexible thresholds –  Automate exception

handling via workflow


Summary

Traditional Collaboration Process Multi-step, high latency, limited collaboration

Customers Suppliers

Tier 2

Tier 1

Distribution Plans

Production Plans

Manufacturing Plans

t = weeks

Supply Planning Process

?

Marketing Forecast

Sales Forecast


Demand Planning Process

Oracle Collaborative Planning E-Business planning solution: zero latency, real-time collaboration

Internet

Customers Suppliers

Tier 2

Tier 1

Marketing Forecast

Sales Forecast


Single Holistic Plan

t = hours

Demand Planning Process Supply Planning Process

Consensus Forecast

Automated exceptions

Portal Portal

Collaborative demand plan

Collaborative supply plan Automated

exceptions Automated exceptions

Collaborative Planning Process

Oracle Collaborative Planning

Ÿ  Improve forecast accuracy –  Collaborative demand planning with customers

Ÿ  Increase visibility and reduce shortages –  Collaborative supply planning with suppliers –  Collaborate across multiple tiers

Ÿ  Reduce inventory carrying cost –  Vendor managed inventory –  Consigned inventory

Ÿ  Analyze demand and supply fluctuations –  Waterfall analysis

Ÿ  React quickly to supply chain events –  Supply chain exception management –  Global fulfillment visibility

Key capabilities

D E M O N S T R A T I O N

1-Tier Collaborative

Planning


Notifications


Vendor Managed Inventory


Demand Planning – Review Demand


Demand Planning – Submit Forecast


Review Supply Chain Plan


Publish Order Forecasts to Suppliers


Plan to Pay Supplier View


View Horizontal Plan


Upload Supply Commits


Notify Customer of New Supply Commits


Review Supply Chain Plan


Publish Supply Commits to Customers


AQ&Q U E S T I O N S A N S W E R S

Oracle Advanced Planning - Twin Cities...

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