This document summarizes an Oracle VCP workshop agenda focused on developing a successful global sourcing strategy. The agenda covers forecast uploading, VCP data collection and planning, reviewing supply/demand plans and exceptions, and releasing planned purchase orders. It also discusses key supply chain issues such as demand fluctuations, supply chain visibility, and process automation. The objectives of VCP are also summarized, which include improving forecasting, inventory turns, sales and operations planning, and automating manual processes.

1. VCP Workshop
JANUARY 21, 2016
Using Oracle VCP Engine
Developing a Successful Global Sourcing Strategy

2. 2
Agenda
• Introduction
• Forecast Upload (Manual)
• VCP Data Collection & Plan Run (Automatic) Planners Workbench
• Review Supply/Demand, Pegging, Vertical & Horizontal Plan, Exceptions
• Planned order release (Purchase Requisitions)
• Question & Answer

3. 3
Supply Chain Issues
• How do we manage inventory required to respond to fluctuating customer
demand, so that the inventory is available when we need it, but it is not
necessarily “on the books”?
• How do we provide supply chain visibility to internal and external supply
chain partners?
• How can we automate most of our Supply Chain process from initial
Sourcing through PO generation, material receipt, quality inspection, to
create the “touchless PO” (Cisco) or “virtual supply chain” (Qualcomm)?
• Companies continue to install software before rethinking their underlying
processes and expect root cause problems to be eliminated

4. 4
• Improve Forecasting Process & Accuracy
• Increase Inventory Turns, and Reduce Excess & Obsolete (E&O) Inventory
• Enable a faster, more effective Sales & Operations Planning process
• Accurate, Global Inventory Visibility
• Issue correct PO prices and receive acknowledgements and commits from
suppliers
• Automate Manual Processes & Transactions
VCP Objectives

5. 5
How do I
Simplify My
Job?
Josh’s and Our Need for Change
Can I Get a
Better
Report?
I Need
More
Time

6. 6
• Design Globally – Implement Locally
• 80/20 rule; Implement quickly, evolve quickly
• No Customizations – Work within the software
• Software based re-engineering
• Get to decisions quickly; avoid decision paralysis
• Resources available per required allocation to drive and participate in project
• Project participants have real ownership to make decisions
• “Self Service” project information warehousing
• Team environment – Win as a team, Lose as a team
Key Methodologies & Assumptions

7. 7
VCP Architecture
Master Data/Entities for RM (Raw Materials)
• Planning Item Attributes Maintenance
• Approved Supplier List (ASL) Maintenance
• Sourcing Rules Maintenance
• Buy Sourcing Rules
• MRP Forecast Sets and Forecasts
• Items
• Purchase Requisitions
• Purchase Orders
• Onhand
• Load RM Forecast
VCP (Value Chain Planning)
Unconstrained Planning
• Define Plans
• VCP Workbench (RM)
• Review/Analyze Supply/Demand
• Review Horizontal Plan
• Review Exceptions
• Release Planned Orders
• Buy recommendations
• Reschedules/Cancellations
• VCP Data Collection
• VCP Plan Run
• Copy Plans
• Simulation Set
• Item Mass Maintenance (Simulation Set)
EBS Source
Master Data
MRP
VCP Destination
ASCP
VCP Data Collection
VCP Planned Order Release
(RM Buy) Requisitions

8. 8
VCP High Level Flow – Information Management & Processing
Load Demand
• Load Raw Material Forecast Demand
Run and Analyze
Production Plan
• Run Production Plan
• Collect Data from Transactions
• Run VCP Plan
• Analyze Plan/Review Exceptions for Raw Material (Buy parts) and Adjust Plan
Implement Plan
Recommendat-
ions
• Release Purchase Requisitions (Raw Material) from VCP Workbench

9. 9
Safety Stock Calculations
Definition : Quantity of stock planned to remain in inventory to protect against Demand fluctuations (Ex. forecast error)
and supply (ex, variable supplier lead times & irregular operation yields). Overplanning/buffer/reserve stock.
* Inventory level that needs to be maintained, remains in Projected Available Balance in ASCP Workbench
Formula : SS = (Sum of gross requirements for Bucket Days (working days) * Percent) / (100 * Bucket Days)
Safety stock Method : MRP Planned %
Safety Stock Bucket Days : Number of days to be used for aggregating demand
Safety Stock Percent : Percentage of aggregated demand to be used for safety stock.
Note :
• If either Bucket Days or Percent are zero, the ASCP planning engine calculates the safety stock as zero.
• Organization manufacturing calendar determines the working days
• If demand is in weekly buckets, the ASCP planning evenly divides the weekly demand over the days.
Evaluate Solution :
• Short term : Refresh (Update) Safety Stock Bucket days
• 1st Week of Nov (Factoring Inventory Constraints)
• Last Week of Dec (Relax Inventory Constraints)
• Long term : Evaluate Inventory Optimization (IO) module to calculate safety stock levels that account for
variability in demand and lead times and Inventory Constraints..

10. 10
Safety Stock Example
Formula : SS = (Sum of gross requirements for Bucket Days (working days) * Percent) / (100 * Bucket Days)

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Planning Item Attributes
Attribute Description
Fixed Days of Supply Number of days used to modify the size and timingof planned order quantities. ASCPsuggests planned order
quantities that cover net requirements for the period defined by this value. ASCPsuggests one planned order for
each period. This can be used to reduce the number of planned orders.
Fixed Lot Multiplier Enter the fixed lot multiple quantity or repetitive rate (units per day). This can be used to modify the size of planned
order quantities. When net requirements fall short of the fixed lot size multiplier quantity, planningsuggests a single
order for the fixed lot size multiplier quantity. When net requirements exceed the fixed lot size multiplier quantity,
planningalgorithms suggest a single order that is a multiple of the fixed lot size multiplier.
ProcessingLead Time The time required for a supplier to deliver an item to receivingdock or to manufacture an item.
Minimum Order Quantity Minimum quantity for an order to be placed. For discrete items, when net requirements fall short of the minimum
order quantity, planningalgorithms suggest the minimum order quantity.
Maximum Order Quantity Maximum quantity for an order. If demand > max order qty for due date, multiple orders will be
created.
Safety Stock Bucket Days Number of days used to dynamically calculate safety stock quantities. The planningprocess
multiplies the Safety Stock Percent by the average gross requirements and divides by the number of days

12. 12
Workbench (Navigation)
Login -> Choose Responsibility ASCP – Planner SFLY -> Navigate to ASCP/Supply Chain Plan/Workbench Choose Org (ex. FTM)

13. 13
Workbench Query
Choose View By : Organizations -> Choose Plan name (ex. SFLYPRD) -> Rigt-click Supply and Demand/Supply and Demand
Click Open Folder button

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Workbench Query (folder)
Choose Folder ex. SFLY Supply Demand and click OK

15. 15
Workbench Query (folder continued)
Click “Yes”

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Workbench Query (folder continued)
Folder output will be displayed. required criteria, values can be entered and selectively queried (next screenshot).

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Workbench Query (F11)
Press F11 to enter query

18. 18
Workbench Query (F11 continued)
Form enter query criteria (ex. Org and Item)

19. 19
Workbench Query (Ctrl + F11)
Press Ctrl-F11 (executing the query)

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Workbench Query (sort data)
Select / Click on Folder -> Sort Data

21. 21
Workbench Query (sort data continued)
Enter Sort criteria ex. Choose Suggested due date and click OK

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Workbench Query (sort data continued)
Choose Sort order ex. Ascending. Enter more fields (if required) and click OK.

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Workbench Query (data sorted)
Data sorted based on criteria chosen (ex. Ascending order based on Suggested due date)

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Workbench Query (consolidated view all orgs)
Right click on Item -> Choose Enterprise Plan and select preference set ex. SFLY -> Maximize screen

25. 25
Workbench Query (consolidated plan)
View Enterprise plan output (consolidated across all Orgs)

26. 26
Horizontal Plan
Click on Item -> Right click and choose Horizontal Plan -> Maximize screen for Horizontal plan

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Horizontal Plan Output
Output of Horizontal plan -> Scroll to the right to view future buckets

28. 28
Horizontal Plan Definition
Field Description
Forecast Forecasts from Oracle MRP
Gross requirements The planning engine calculates the total demand in the following way:
Sales Orders + Forecasts + Production Forecast + Dependent Demand + Expected Scrap + Payback
Demand + Independent Demand
The total demand from sales orders, forecasts, dependent demands, payback demand, scrap demands,
expired lots, and other demands.
Purchase orders Existing purchase orders.
Requisitions Existing requisitions without corresponding purchase orders, including internal requisitions.
In Receiving Quantities that are received at the receiving dock but are not yet received into the inventory.
Planned orders Make and buy planned orders
Total supply The planning engine calculates total supply as an aggregate of work in process, purchase orders, purchase
requisitions, in transit, in receiving, planned orders, and payback supply.
Beginning on hand The amount of stock in inventory at the beginning of a plan on hand. The value is 0 for all subsequent
periods.
Projected available
balance
The planning engine calculates this as:
Beginning On hand + Total Supply - Total Demand
Current scheduled
receipts
The planning engine calculates this as the sum of work in process, purchase orders, purchase requisitions,
in transit, in receiving, and payback supply.
Projected on hand The planning engine calculates this as:
On hand + Beginning Total Supply - Total Demand
The planning engine does not include planned orders to calculate the projected on hand
Safety Stock Safety stock level at the end of the bucket.

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Horizontal Plan (export to spreadsheet)
Right click on left pane (grey color) and choose “Copy Horizontal Plan”. Open an excel spreadsheet and perform “Paste”.

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Workbench Query (release planned orders)
Choose Plan name -> Select Folder SFLY Purchase Order Release -> Click OK

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Workbench Query (planned purchase reqs)
Query to filter planned orders to be released ex. based on Buyer

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Workbench Query (release order)
Click Plan -> Release

33. 33
Vertical Plan
Steps :
1. Navigate to ASCP Workbench on VCP Instance (SFLY ASCP PLANNER -> Supply Chain
Plan -> Workbench
2. Choose View By : Items
3. Explode Plans
4. Choose Plan : SFL-SIM
5. Click on Supply/Demand button (graph-like button at the bottom of the left-pane)
6. Enter filter criteria by clicking the Torch button (if not already pre-filtered) ex. Buyer
Equals Buyer name
7. Click on Torchlight and enter criteria ex. Buyer Equals Buyer name (if not pre-filtered
already) and click Find
8. Click File -> Export and then click on button “Continue to End”
9. Click Open to view/save the exported file or click Save to save the file (Note : Option
to open/save the file could be in the background)
10. Above steps can be repeated for Production plan SFL-PROD in order to compare
Vertical plans

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Vertical Plan Output

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Horizontal Plan (multiple products)
Steps :
1. Navigate to ASCP Workbench on VCP Instance (SFLY ASCP PLANNER -> Supply Chain
Plan -> Workbench
2. Click on Tools -> Preferences and change Display Buckets to 120 for Days
3. Choose View By : Items
4. Explode Plans
5. Choose Plan : SFL-SIM
6. Right-click -> Items -> Items
7. Click on Torchlight and enter criteria (ex. ‘Buyer’ “Equals” ‘Buyer name’ and
‘Category’ “Equals” ‘Paper’ ) and click Find
8. Click View -> Record -> Last
9. Click on button “Continue to End” and click Shift -> Left click (all rows should be
highlighted for selection)
10. Right click and choose Horizontal Plan
11. Right click on the left grey pane area and choose Copy horizontal plan (if right click
does not work, click and right click on the left grey pane area)
12. Open Excel spreadsheet and perform Paste operation
13. Above steps can be repeated for Production plan SFL-PROD in order to compare
horizontal plans

36. 36
Horizontal Plan Output (multiple products)

37. 37
Enterprise Plan
Steps :
1. Navigate to ASCP Workbench on VCP Instance (SFLY ASCP PLANNER -> Supply Chain
Plan -> Workbench
2. Click on Tools -> Preferences and change Display Buckets to 120 for Days
3. Choose View By : Items
4. Explode Plans
5. Choose Plan : SFL-SIM
6. Right-click -> Items -> Items
7. Click on Torchlight and enter criteria (ex. Buyer equals Buyer name) and click Find
8. Click View -> Record -> Last
9. Click on button “Continue to End” and click Shift -> Left click (all rows should be
highlighted for selection)
10. Right click and choose Enterprise Plan
11. Above steps can be repeated for Production plan SFL-PROD in order to compare
Enterprise plans
Note : Enterprise view can also be accessed from Horizontal plan view (Right-click and
choose Enterprise view from Horizontal plan). User can toggle between Horizontal view
and Enterprise view.

38. 38
Export Planned Orders
Steps :
1. Login to VCP instance
2. Navigate to ASCP Workbench on VCP Instance (SFLY ASCP PLANNER -> Supply Chain
Plan -> Workbench
3. Explode Plans (Click on +)
4. Choose Plan ex. SFL-SIM by clicking on the plan name
5. Click on Supply/Demand button (graph-like button at the bottom of the left-pane)
6. Click on Folder button at the top-left portion and choose Folder “SFLY Planned
Orders” and click OK
7. Click File -> Export from Menu at the top and then click on button “Continue to End”
(this will take a few minutes).
8. Click Open to view/save the exported file or click Save to save the file (Note : Option
to open/save the file could be in the background if it does pop-up in the front after
the export)
Note : Filter criteria can be changed by clicking on Torchlight and entering the criteria
required (ex. Filter by Category, buyer, planner, Suggested due date < future date , days
from today etc. as needed. Folder SFLY Planned order will show all Planned order supply
data for all Orgs and Items included in the plan.

39. 39
Public Folders
Following Public Folders are available to view/export from ASCP Workbench. Data can be filtered further by clicking the Flash-light
and entering query criteria ex. Category, Buyer, Planner, Date range etc. Also, additional folders can be created and saved as required.

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VCP Activities (example)
• On a daily basis, Run a ‘Vertical Plan’ report for manufacturing plan and export
the ‘Vertical Plan’ report to MS Excel
• Periodic (weekly) forecast uploaded into ERP
• On a weekly basis, get new Due Dates from Suppliers for late supplies and
‘Firm’ the due dates in Oracle
• On a weekly basis, generate a Horizontal Forecast report for suppliers and
forward it to suppliers
• Follow ‘Planner Action’ on the report: Release, Reschedule In, Reschedule Out,
Cancel, None and communicate with suppliers to follow ‘Planner Actions’
• Communicate with shop floor to follow ‘Planner Actions’
• Change the work order Completion Dates based on feedback from Shop Floor
and ‘Firm’ Work Orders that cannot be rescheduled

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Question & Answer
• Supply Chain Management is a very exciting profession
• Ever changing, is essential to our success
• Everybody needs it (Innovation & Leadership)
• Those that do it best are among the most successful and profitable companies
in the world (e.g. Shutterfly, Apple, Nokia, Wal-Mart, Procter & Gamble,
Toyota, Cisco, Samsung, Best Buy, Coca Cola, Nike, HP, IBM)
Process
People
Technology

42. 42
Lessons Learned
• Change is hard…don’t under estimate change management (clear/frequent
communications, set expectations, list concerns...etc.)
• Very important to take the time to educate and train the users on both System
and Process –Keep it Simple
• Pre –Implementation:
- Senior Management Support is Critical
- Define To Be Processes
- Strong Cross Functional team
• Make good on promise for future releases for features out of scope initially
• Having the right partner -experienced VCP Process consultants
• Good Performance is key to good User Experience & Adoption
• Be willing to Travel and educate on our vision
- collaborate effectively internally to optimize processing
- work closely with key suppliers and customers
- effectively apply technology as an enabler

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MRP Forecast
Ex. Org : FTM Forecast Set : FTM-SET Forecast : FTM-FCST Item : 20-1005-02

44. 44
Crawl, Walk, Run - Adjust our model without reimplementation
VCP can be implemented using an incremental deployment approach.
Planning organizations that are comfortable with straightforward unconstrained
material and capacity planning can start with unconstrained planning, which still
provides many benefits, as Buyers/Planners get to use a more productive tool that
provides a foundation for moving to more advanced planning processes.
Constraint based planning is typically the next step. This requires more accurate
data but in return provides better quality plans. From constrained planning we can
easily evolve to optimized planning. In both cases there is no need to retrain
Buyers/Planners or to reconfigure the system.
VCP enables SCM to run different models at the same time. The coexistence of
models will enable the ability to compare the current unconstrained planning
decisions to the ‘future’ constraint based planning decisions during a transition
period, and enable more sophisticated planning.

45. 45
Change Control – Executive Sponsor Approval required
Change Request Instructions
1. Provide a succinct explanation to justify this change request.
2. The Change Request must be assessed for scope, schedule and budget impact
both to this project and to other L1 and or L2 Products in the ITqueue.
3. The project team must make best efforts to accommodate the change request
within the published project parameters (Scope, Schedule, and Budget) where
possible.
4. Changes having either schedule or budget impact must be approved by both
the business and IT project sponsors.
5. If there are external impacts to other projects, approvals must be obtained
from the respective business & IT project sponsors and project managers.
6. Approved changes will be prioritized for implementation and tracked as part of
the overall project deliverables.
7. The Change Request number is a running sequence number reflecting the
number of changes submitted for this project to date.