Oracle Supply Oracle Supply Chain Management Chain Management

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Oracle Supply Oracle Supply Chain Management Chain Management

  1. 1. Oracle Supply Chain Management •Introduction •Supply Chain Management •Cases Harald Røneid ErgoGroup Information Age Applications
  2. 2. Traditional Supply Chain Pressures Margin Pressure Suppliers Suppliers • Intensified Global Competition • Limited Pricing Power • Economic Uncertainty Response: • Shorter Product Lifecycles Your Automation Company Customer Expectations Faster, Cheaper • Product & Service Innovation Processing • Higher Quality, Rapid Delivery • Channel Demand Variability • Decreasing Customer Loyalty Customers Customers
  3. 3. New Supply Chain Pressures Margin Pressure Suppliers Suppliers Supply Chain Complexity • Intensified Global Competition • Highly Customized Products • Limited Pricing Power • More Global Supply Base • Economic Uncertainty • Contract Mfg / Outsourcing • Shorter Product Lifecycles • Fragmented Supply Chains Your Company Customer Expectations Compliance & Risk Mgmt • Product & Service Innovation • Corporate Governance • Higher Quality, Rapid Delivery • Industry Mandates • Channel Demand Variability • Communication Standards • Decreasing Customer Loyalty Customers Customers • Environmental Responsibility
  4. 4. Create New Challenges How Do I… … select the right balance between outsourcing and in-house production? … structure pricing strategy to better shape product demand? … deliver 100% perfect orders while still minimizing inventory? … recall only contaminated lots while keeping good products on the shelf? … deliver premium service to my top customers while containing cost? … ensure service quality while relying on 3rd party service providers? … comply with industry mandates such as RFID and still maintain margins?
  5. 5. Supply Chain Management New customer demands New customer demands More reliable products <> less More reliable products <> less possibilities for service income possibilities for service income More complex products <> Higher More complex products <> Higher skilled people - higher costs skilled people - higher costs Develop new service products Develop new service products Better resource utilization and better Better resource utilization and better integrated value chains integrated value chains Using Oracle planning tools for optimazing resources and spareparts
  6. 6. Information Promotes Collaboration Product Specifications Product Requirements Sales & Order Forecast Sales & Order Forecast Negotiations, Contracts Pricing & Promotions Your Company Delivery Commitment Orders Customers Suppliers Invoices & Payments Promise Dates Contract Manufacturing Delivery Status Carrier Bookings Bill Presentment Drop Shipment Payment Spares Replenishment Product Warranties Project Schedule Service Requests o o o o o o
  7. 7. However, There Are Obstacles… • Disparate Systems, • Fragmented Data in • Limited Partner Processes, Technologies Information Silos Communications Web Store Planning Procurement Sourcing Broadvision Broadvision i2 i2 Ariba Ariba Commerce One Commerce One C Product Info Product Info Product Info Product Info S u u s p Call Center Barcoding t Siebel Siebel Product/ ClearOrbit ClearOrbit p Customer Core ERP o Product Info Info Product Info l m i e e Maintenance Field Service Transportation Warehousing r Indus Indus FieldCentrix FieldCentrix G-Log G-Log IMI IMI r Product Product Product Product Info Info Info Info
  8. 8. Market Changes – New members in the Oracle Family Procurement Ariba Ariba k Product Web Store Planning te Info Re Broadvision Broadvision i2 i2 Product Product Info Info Sourcing Commerce One DE Commerce One Product Call Center J Info Siebel Siebel Product Info Barcoding Product/ ClearOrbit ClearOrbit Core ERP o ft Customer Info Product s Info le op Pe Warehousing IMI IMI Product Maintenance Info Indus Indus Field Service Transportation FieldCentrix FieldCentrix G-Log G-Log Product Info Product Product Info Info
  9. 9. Oracle’s Approach to Business Applications Unique Information Architecture Develop • Start with leading Contracts Market business practices Projects Sell • Build a robust suite of applications on a common HR Customers, Order data model Suppliers, Finance Products, … Plan • Enable modular deployment by business flow Maintain Procure • Leverage open standards Service Make to promote integration and Fulfill low-cost deployment
  10. 10. Develop Supply Chain Footprint Contracts HR Market Sell Customers, Finance Suppliers, Order Products Projects Plan Product Development SC Planning Maintain Procure Procure Service Service Make Make • Adv Product Catalog • Collaborative Planning Fulfill Fulfill • UCCnet Trading Connector • Demand Planning • CAD Sharing & Viewing • Advanced SC Planning • Collaboration Suite • Constraint Optimization Procurement • Product Intelligence • Inventory Optimization • Sourcing • Global Order Promising • Procurement Contracts • Exception Management Order Management • Planning Intelligence • iProcurement • Services Procurement • Order Management • Purchasing • Configurator • Supplier Collaboration • Advanced Pricing • Release Management • Oracle Supplier Network • Receivables • Payables • Order Intelligence • Purchasing Intelligence New in 11i.10
  11. 11. Logistics Develop Supply • Inventory Management Contracts HR Market Sell • Chain Mobile SC Apps Customers, Finance Suppliers, Order • Warehouse Mgmt Projects Products Plan • Transportation Planning Footprint • Transportation Exec Maintain Service Service Fulfill Procure Procure Make Make • Sensor Based Services Fulfill • Fulfillment Intelligence Manufacturing Service Maintenance • Mfg Scheduling • iSupport • Enterprise Asset Mgmt • Discrete Manufacturing • TeleService • Self-Service Work Reqs • Flow / Lean Mfg • Field Service • Property Manager • Process Manufacturing • Mobile Field Service • Maintenance Intelligence • Project Manufacturing • Advanced Scheduler • Shop Floor Mgmt • Spares Management • Mfg Intelligence • Depot Repair • Service Contracts • Interaction Center • Service Intelligence New in 11i.10
  12. 12. Information Drives Decision Making Identify and Act Upon Improvement Opportunities • Real-time updates on key performance indicators • Complete information from summary to detail • Information across all supply chain domains • Presentation via role-based dashboards • Internet browser-based delivery to your desktop • Compare performance against different time periods and organizations
  13. 13. Oracle Advanced Planning Complete e-business planning solution Supply Chain Intelligence SCI Sales and Operations Demand Planning DP Planning From detail to summary Inventory Optimization IO Supply Chain and Manufacturing Planning ASCP Global Order Promising GOP Deployment Planning* ASCP Manufacturing Scheduling MS Finance Transportation Planning TP Maintain HR Projects SC Exception Management CP Service All Product, All Product, Collaborative Planning CP Fulfill Customer, Customer, & Supplier & Supplier Information Information Make From short-term to long-term Procure Develop * Future Plan Order Sell Market Copyright © Oracle Corporation, 2005. Private and confidential. All rights reserved.
  14. 14. Traditional Approach Multi-step planning processes, high latency, limited collaboration Customers Suppliers Tier 2 Tier 1 • Response 1: Maintain Excess Inventory • Response 2: Marketing Distribution Production Manufacturing Reserve Production Capacity Forecast Plans Plans Plans Sales Forecast Mfg Forecast ? t = weeks Demand Planning Process Supply Planning Process Supply Chains Built on INVENTORY
  15. 15. Move To A More Competitive Model E-Business planning solution: zero latency, real-time collaboration Customers Suppliers Tier 2 • Enable closed loop collaborative planning Tier 1 processes across your value Portal Portal Internet chain Automated Exceptions • Have complete supply chain visibility Marketing Manufacturing • Make better decisions Sales • React immediately to Demand Hub & Consensus Single disruptions in supply chain forecast and holistic plan Multi-dimensional analysis prod. plan Mfg S&OP Process Supply Planning Business Intelligence Build a responsive Supply Chain on INFORMATION not inventory Copyright © Oracle Corporation, 2005. Private and confidential. All rights reserved.
  16. 16. • Powec – Norwegian based company bought by Power One • Sell and produce power supplies and energy systems • Started to implement a new manufacturing solution • Focus changed to implement a new global Supply Chain Solution
  17. 17. Supply Chain Management – Vision Statement • Provide Power-One with a competitive advantage by driving to the lowest cost and the shortest lead times. • Building a cost effective Global Supply Chain by using Oracle planning tools, techniques and the right people. • Be a part of our Customer’s Supply organization.
  18. 18. Energy Solutions - Supply Chain in Action Move production from Norway to Far East
  19. 19. Global System Integration Deliver global product’s for global customer’s – “The customer shall not see the difference” Using Oracle Forecasting and Supply Chain Planning for Optimization One database for traceability One tool for recording serial number’s on deliveries Global distribution of documentation Can deliver from “anywhere” through our 3PL- partner
  20. 20. Power One using Oracle Advanced Planning for the Global Supply Chain Complete e-business planning solution Supply Chain Intelligence SCI Sales and Operations Demand Planning DP Planning From detail to summary Inventory Optimization IO Supply Chain and Manufacturing Planning ASCP Global Order Promising GOP Deployment Planning* ASCP Manufacturing Scheduling MS Finance Transportation Planning TP Maintain HR Projects SC Exception Management CP Service All Product, All Product, Collaborative Planning CP Fulfill Customer, Customer, & Supplier & Supplier Information Information Make From short-term to long-term Procure Develop * Future Plan Order Sell Market Copyright © Oracle Corporation, 2005. Private and confidential. All rights reserved.
  21. 21. Inventory Postponement Optimization
  22. 22. Inventory Optimization Utilize Postponement to Support the Lean Enterprise Region 1 Region 2 Determine Where to Hold Cust 1 Cust 2 Cust 1 Cust 2 Inventory to Guarantee a Desired Service Level – Manufacturing plants – Distribution centers – Central warehouses Determine What Stage of Production to Hold Inventory – Finished goods Distribution Distribution – Die bank Center 1 Center 2 – Wafers • Postpone Value-Add Activities Test Until Actual Demand Pull Initial Safety Safety Stock with Stock Levels Postponement Fab Shop
  23. 23. Inventory Postponement Optimization Key capabilities Reduce inventory without sacrificing customer service Without – Postponement Oracle Manage supply chain variability Choose the best service level strategy Inventory Investment based on cost and revenue Lower Inventory Invest in profitable channels, products, Cost and customers With Manage seasonality and product life Oracle cycle characteristics – Recommend time-phased safety stock Higher to supply planning Service Level Out-of-the-box optimization – For planners, not programmers 10 30 50 75 80 85 90 95 100 Service Level
  24. 24. Reduce inventory without impacting customer service Copyright © Oracle Corporation, 2004. Private and confidential. All rights reserved.
  25. 25. Simulate multiple scenarios to find the optimal trade-off between cost and service level
  26. 26. Cambrigde Silicon Radio Revenues 2001 – 2002 – 2003 – 2004 17’’ 28’ 68’ 253’ (1000$) Revenues 4times 2003 Market share of 50% Shipped 50 million single chips Bluetooth devices A Fabless Company Slide 27
  27. 27. Turnover 2001 – 2002 – 2003 – 2004 112’ - 168’ - 400’ - 1300’ (MNok) Project started Aug. 2004, go live Apr. 2005 Cambrigde Silicon Radio Slide 28
  28. 28. A brief introduction to CSR: CSR designs and manufactures single-chip wireless devices. Our business started with a focus on solutions for the 2.4GHz Bluetooth® personal area networking standard; in November 2004, we entered the IEEE 802.11 marketplace - a family of wireless standards also referred to as 'Wi-Fi' or 'Wireless LAN' - with devices capable of operation in both the 2.4 and 5GHz frequency bands. CSR's leading position in the Bluetooth business has been won by a unique approach to IC design based on extremely high levels of integration, providing compelling performance and cost advantages to OEMs. This brand ethos has been carried through to 802.11 applications, with an IC architecture that integrates a new level of functionality embracing all three major variants of the protocol (802.11a, b and g), and IC choices that offer solutions for both current applications, and emerging embedded applications in portable consumer electronics devices (including mobile phone handsets) and home appliances. In the Bluetooth market, CSR is ranked #1 in every Bluetooth market segment with a unit market share in excess of 50%.
  29. 29. Industry Solution - High Tech: Semiconductor t go er ice In r af ev ice o n afe W er D ev lic W te d af /D ie ed D Si d ica d W er bl te d w he br be a f m es Ra lis Fa o W se T Po Pr As Front-end Process Back-end Process Customers Suppliers Secondary Lead Frame Gold Wire Molding Die Compound Portal Portal Internet Collaborative Planning Process Collaborative Collaborative Demand Plan Supply Plan Automated Automated Exceptions Exceptions Marketing Consensus Single Forecast Automated Forecast Holistic Plan Exceptions Sales Forecast Mfg t = hours Forecast Demand Planning Process Supply Planning Process
  30. 30. CSR – is using Oracle’s Sophisticated Planning tools to get full visibility of all goods in the whole and outsourced Global Supply Chain Supply Chain Intelligence SCI Sales and Operations Demand Planning DP Planning From detail to summary Inventory Optimization IO Supply Chain and Manufacturing Planning ASCP Global Order Promising GOP Deployment Planning* ASCP Manufacturing Scheduling MS Finance Transportation Planning TP Maintain HR Projects SC Exception Management CP Service All Product, All Product, Collaborative Planning CP Fulfill Customer, Customer, & Supplier & Supplier Information Information Make From short-term to long-term Procure Develop * Future Plan Order Sell Market Copyright © Oracle Corporation, 2005. Private and confidential. All rights reserved.

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