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Overcoming Order Fulfillment Challenges in Manufacturing, High-Tech & Retail

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http://www.capgemini.com/oracle

Capgemini and Oracle recently commissioned a study by Peerless Research Group on behalf of Supply Chain Management Review and Logistics Management that reveals the top order fulfillment challenges faced by 600 of your supply chain peers in the manufacturing, high-tech, and retail sectors; key areas for improvement; and tips for bringing your order fulfillment practices up to speed.

This webcast reveals key findings from the report and what they mean for your organization’s order fulfillment strategy. It also presents best practices and case studies of companies that have successfully addressed their industry-specific order fulfillment challenges.

Watch this webinar to learn how you can:
- Fulfill more orders faster and at lower costs
- Increase margins and profitability per order
- Improve accuracy of order promises and status
- Improve customer service and satisfaction levels
- Create a unified customer and user experience without replacing existing systems

Published in: Business, Technology
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Overcoming Order Fulfillment Challenges in Manufacturing, High-Tech & Retail

  1. 1. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.1 Overcoming Order Fulfillment Challenges in Manufacturing, High-Tech & Retail Brad Kerr Michael Pearcy Senior Director, Oracle Senior Manager, Capgemini
  2. 2. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.2 Agenda  Fulfillment Challenges  Order Fulfillment Survey Findings  Architecture for Order Orchestration  Best Practices  Case Studies  Q&A
  3. 3. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.3 Order Fulfillment 2013 Survey Methodology  Conducted by Peerless Research Group on behalf of Supply Chain Management Review and Logistics Management. Sponsored by Oracle and Capgemini.  Surveyed 589 supply chain executives in manufacturing, high-tech and retail businesses around the globe Summary Findings  Managing order management systems and fulfillment processes is becoming more multifaceted and complicated  The complexity of order management systems, the ongoing challenge of keeping customers satisfied, adhering to delivery schedules, and combating rising costs are among the major issues companies now face
  4. 4. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.4 Order Fulfillment Challenges Acquisitions Evolving Business Models Channel Expansion Integration Automation Customer Satisfaction
  5. 5. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.5 79% of companies have 3 or more order capture and 3 or more order fulfillment systems* * Supply Chain Management Review 2013 Order Fulfillment Survey
  6. 6. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.6 * Supply Chain Management Review 2013 Order Fulfillment Survey 50% of manufacturers have acquired another company or been acquired in the last three years 45% increased customer demand for multiple channels during last 12 months * Supply Chain Management Review 2013 Order Fulfillment Survey
  7. 7. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.7 Retailers maintain an average of 4 different types of selling channels Supply Chain Management Review 2013 Order Fulfillment Survey 38% of retailers lack the software capabilities & integration necessary to offer multi-channel fulfillment
  8. 8. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.8 Only 22% of retailers leverage their store inventory to fulfill online orders Supply Chain Management Review 2013 Order Fulfillment Survey
  9. 9. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.9 Fulfillment – Melding Planning and Execution Strategic Planning Tactical Planning Operational Planning Execution Feasibility Optimality Fulfillment Order Promising
  10. 10. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.10 Fulfillment – Melding Planning and Execution Strategic Planning Tactical Planning Operational Planning Execution Fulfillment Order Promising Only 1 in 3 companies feel good about their order promising Source: Oracle / Capgemini
  11. 11. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.11 Fulfillment – Melding Planning and Execution Strategic Planning Tactical Planning Operational Planning Fulfillment Order Promising Execution Delivery delays and resultant expediting is the largest driver of fulfillment costs Source: Oracle / Capgemini … think that exception handling needs improvement
  12. 12. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.12 53% of high-tech companies collaborate with partners on demand forecasting Supply Chain Management Review 2013 Order Fulfillment Survey High-tech companies do not meet allocations commitments 50% of the time
  13. 13. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.13 Web Call Center EDI Internal MobileCatalog Logistics Ware house Partners 3rd Party Finance Orders ,Changes, Cancellations, Status Source Selection, Splitting, Monitoring/Updates Siloed Processes Custom Point Integrations Inconsistent User Experience Monolithic App Deployment Lack of Standards Increased Inventory Slower Time to Market Increased Time to Revenue Decreased Order Accuracy Increased Order Cycle Time Falling Customer Satisfaction Today’s Environment
  14. 14. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.14 How have companies tried to solve this?
  15. 15. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.15 Today’s Solution Options Web Call Center Direct Channel Sales Mobile Field Service Orders, Changes, Cancellations, Status Source Selection, Splitting, Monitoring/Updates ERP Ware house Partners Store Finance Middleware Niche Sufficient Technology? Logistics
  16. 16. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.16 ERP Solution Challenges Limited Flexibility Hard to Integrate Master Data Tight Coupling ERP Web Call Center Direct Channel Sales Mobile Field Service Orders, Changes, Cancellations, Status Source Selection, Splitting, Monitoring/Updates Ware house Partners Store FinanceLogistics
  17. 17. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.17 Middleware Solution Challenges Middleware Web Call Center Direct Channel Sales Mobile Field Service Orders, Changes, Cancellations, Status Source Selection, Splitting, Monitoring/Updates Ware house Partners Store FinanceLogistics Lack of Objects High $ Implement High $ Maintain Not Order Aware
  18. 18. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.18 Coding Required Coupled with Legacy Old Tech Platform Proprietary Toolset Niche Web Call Center Direct Channel Sales Mobile Field Service Orders, Changes, Cancellations, Status Source Selection, Splitting, Monitoring/Updates Ware house Partners Store FinanceLogistics Niche Solution Challenges
  19. 19. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.19 So, what’s the answer?
  20. 20. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.20 Architecture for Order Orchestration Business Intelligence Enrichment Orchestration Task Services & Interfaces Order Promising Runtime Orchestration Work Area  Rule based fulfillment process assignment  Declarative data transformation  Automated process planning & jeopardy determination  Automated change management  Rules based dynamic integration  Dynamic data transformation  Visibility into global supply  Profitable to Promise calculation Centralized Order Tracking Visual process analysis Backlog Management
  21. 21. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.21 BEST PRACTICES & CUSTOMER SUCCESS
  22. 22. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.22 Focus on creating a consistent customer experience across all channels Invest in a technology platform to enable these changes and to ease the adoption of new business processes Embrace multi-channel fulfillment to up- sell and cross-sell between product lines Best Practices for Manufacturers
  23. 23. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.23 Leading Aerospace Manufacturer • Address high operating costs due to labor intensive processes • Build efficient processes in an environment with redundant & disparate systems & processes • Increase inventory turns by improving visibility to multiple inventory systems • Resolve issues related to fragmented product data Oracle Fusion SCM: • Fusion Distributed Order Orchestration • Fusion Global Order Promising • Fusion Product Hub • Oracle BPM • Capgemini Challenge Solution  Intelligent, touch free order routing  Seamless integration with legacy systems via DOO  Increased visibility to multiple warehouses using GOP  Process driven solution leveraging BPM  Consolidated part master files using FPH Results
  24. 24. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.24 Collaborate with customers on allocation commitments to key customers Enforce these allocation commitments at the time of order execution Integrate these allocations into the promise dates provided to customers Best Practices for Automotive / High-Tech Companies
  25. 25. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.25 Oracle Fusion SCM: • Fusion Distributed Order Orchestration • Capgemini • Aging and inflexible mainframe systems • Desire for system improvement over course of global rollout • Need for flexible system for quick implementation of new delivery models • Desire to incorporate 3rd party and partner order fulfillment capabilities Challenge Solution  Centralized management of order execution process  Enables systematic rollout by progressively replacing legacy systems with target solutions  Industrializes integration and implementation of new services  Enables the establishment of 3rd party delivery models with limited effort Results Leading Automotive Tire Manufacturer
  26. 26. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.26 Make better use of all inventory assets Consider exploiting in-store inventories as part of a multi-channel fulfillment strategy Best Practices for Retailers
  27. 27. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.27 •Needed a scalable order orchestration system to help it move from a grocery retail model into a multi-brand business • Flexible order and delivery options Oracle Fusion SCM: • Fusion Distributed Order Orchestration • Fusion Global Order Promising • Capgemini Challenge Solution Leading UK Supermarket Chain  Enabled eCommerce orders across brands  Provided support for multiple delivery methods (home delivery, in-store & locker pickup)  Flexibility to source products from stock or direct ship vendors Results
  28. 28. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.28 Oracle & Capgemini Deliver BenefitsFeatures • Global view of supply • Proactive exception monitoring/ resolution • Single, consolidated view of order status • Consistent process definition & execution • Highly adaptable, flexible business processes • Available To Promise scenarios • Standards based SOA integration framework & declarative web-based admin • Proactive jeopardy management tools Improved Customer Satisfaction More accurate order promising Faster exception response Single face to customer Faster time to Revenue Reduced fulfillment time Faster time to market for product Optimized fulfillment priorities Lower Cost of Ownership Increased architectural flexibility Decreased costly expediting
  29. 29. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.29 Questions & Answers
  30. 30. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.30

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