Oracle Supply Chain Management

•Introduction •Supply Chain Management •Cases
Harald Røneid ErgoGroup Information Age Applications

Traditional Supply Chain Pressures
Margin Pressure
Suppliers Suppliers

• Intensified Global Competition • Limited Pricing Power • Economic Uncertainty • Shorter Product Lifecycles
Your Company

Response:

Automation
Faster, Cheaper Processing

Customer Expectations

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

Customers Customers

New Supply Chain Pressures
Margin Pressure
• • • • Intensified Global Competition Limited Pricing Power Economic Uncertainty Shorter Product Lifecycles
Your Company
Suppliers Suppliers

Supply Chain Complexity

• Highly Customized Products • More Global Supply Base • Contract Mfg / Outsourcing • Fragmented Supply Chains
Compliance & Risk Mgmt

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

Customers Customers

• Corporate Governance • Industry Mandates • Communication Standards • Environmental Responsibility

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? .

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 .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 .

Information Promotes Collaboration Product Specifications Sales & Order Forecast Negotiations. Contracts Product Requirements Sales & Order Forecast Pricing & Promotions Invoices & Payments Contract Manufacturing Carrier Bookings Drop Shipment Spares Replenishment Project Schedule o o o Promise Dates Delivery Status Bill Presentment Payment Product Warranties Service Requests o o o Customers Suppliers Delivery Commitment Your Company Orders .

Processes. Technologies • Fragmented Data in Information Silos • Limited Partner Communications Broadvision Broadvision Web Store Product Info Planning i2 i2 Product Info Procurement Ariba Ariba Product Info Commerce One Commerce One Product Info Sourcing C u s t o m e r Call Center Siebel Siebel Product Info Barcoding Product/ Customer Info Core ERP ClearOrbit ClearOrbit Product Info Maintenance Indus Indus Product Info Field Service FieldCentrix FieldCentrix Product Info Transportation G-Log G-Log Product Info Warehousing IMI IMI Product Info S u p p l i e r . There Are Obstacles… • Disparate Systems.However.

Market Changes – New members in the Oracle Family Ariba Ariba Broadvision Broadvision Product Info Procurement Product Info Web Store Planning i2 i2 Product Info k te Re DE J Barcoding Commerce One Commerce One Product Info Sourcing Call Center Siebel Siebel Product Info s le op Pe Maintenance Indus Indus Product Info ft o Product/ Customer Info Core ERP ClearOrbit ClearOrbit Product Info Warehousing IMI IMI Product Info Field Service FieldCentrix FieldCentrix Product Info Transportation G-Log G-Log Product Info .

Suppliers.Oracle’s Approach to Business Applications Unique Information Architecture Develop Contracts Projects HR Finance Maintain Service Fulfill Customers. Products. … • Start with leading Market Sell Order Plan Procure Make business practices • Build a robust suite of applications on a common data model • Enable modular deployment by business flow • Leverage open standards to promote integration and low-cost deployment .

10 .Supply Chain Footprint Product Development • • • • • Adv Product Catalog UCCnet Trading Connector CAD Sharing & Viewing Collaboration Suite Product Intelligence Develop Contracts HR Finance Projects Customers. Suppliers. Products Market Sell Order Plan Procure Procure Fulfill Fulfill Make Make SC Planning • • • • • • • • Collaborative Planning Demand Planning Advanced SC Planning Constraint Optimization Inventory Optimization Global Order Promising Exception Management Planning Intelligence Maintain Service Service Procurement • • • • • • • • • Sourcing Procurement Contracts iProcurement Services Procurement Purchasing Supplier Collaboration Oracle Supplier Network Payables Purchasing Intelligence Order Management • • • • • • Order Management Configurator Advanced Pricing Release Management Receivables Order Intelligence New in 11i.

Suppliers.Supply Chain Footprint Manufacturing • • • • • • • Mfg Scheduling Discrete Manufacturing Flow / Lean Mfg Process Manufacturing Project Manufacturing Shop Floor Mgmt Mfg Intelligence Logistics • • • • • • • Inventory Management Mobile SC Apps Warehouse Mgmt Transportation Planning Transportation Exec Sensor Based Services Fulfillment Intelligence Develop Contracts HR Finance Projects Maintain Service Service Fulfill Fulfill Customers.10 . Products Market Sell Order Plan Procure Procure Make Make Service • • • • • • • • • • iSupport TeleService Field Service Mobile Field Service Advanced Scheduler Spares Management Depot Repair Service Contracts Interaction Center Service Intelligence Maintenance • • • • Enterprise Asset Mgmt Self-Service Work Reqs Property Manager Maintenance Intelligence New in 11i.

Information Drives Decision Making Identify and Act Upon Improvement Opportunities • Real-time updates on key performance indicators summary to detail • Complete information from • Information across all supply chain domains dashboards • Presentation via role-based • Internet browser-based • Compare performance delivery to your desktop against different time periods and organizations .

All rights reserved.Oracle Advanced Planning Complete e-business planning solution Supply Chain Intelligence Sales and Operations Planning Demand Planning SCI DP From detail to summary Inventory Optimization Supply Chain and Manufacturing Planning Global Order Promising Deployment Planning* Manufacturing Scheduling IO ASCP GOP ASCP MS TP CP Collaborative Planning From short-term to long-term * Future Maintain Service Fulfill Make Finance HR Projects Transportation Planning SC Exception Management All Product. All Product. & Supplier & Supplier Information Information CP Procure Plan Develop Market Order Sell Copyright © Oracle Corporation. Private and confidential. Customer. Customer. . 2005.

high latency.Traditional Approach Multi-step planning processes. limited collaboration Customers Suppliers Tier 2 Tier 1 • Response 1: Maintain Excess Inventory • Response 2: Marketing Forecast Distribution Plans Production Manufacturing Plans Plans Reserve Production Capacity Sales Forecast Mfg Forecast Demand Planning Process ? t = weeks Supply Planning Process Supply Chains Built on INVENTORY .

. real-time collaboration Customers Suppliers Tier 2 • Enable closed loop Portal Internet Tier 1 Portal collaborative planning processes across your value chain Automated Exceptions Marketing Manufacturing Sales Demand Hub & Multi-dimensional analysis Consensus forecast and prod. All rights reserved. 2005. Private and confidential.Move To A More Competitive Model E-Business planning solution: zero latency. plan Single holistic plan • Have complete supply chain visibility • Make better decisions • React immediately to disruptions in supply chain Mfg S&OP Process Supply Planning Business Intelligence Build a responsive Supply Chain on INFORMATION not inventory Copyright © Oracle Corporation.

• 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 .

.

• Building a cost effective Global Supply Chain by using Oracle planning tools.Supply Chain Management – Vision Statement • Provide Power-One with a competitive advantage by driving to the lowest cost and the shortest lead times. techniques and the right people. . • Be a part of our Customer’s Supply organization.

Energy Solutions Supply Chain in Action Move production from Norway to Far East .

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 3PLpartner .

& Supplier & Supplier Information Information CP Procure Plan Develop Market Order Sell Copyright © Oracle Corporation. Private and confidential. All Product. 2005. Customer. Customer.Power One using Oracle Advanced Planning for the Global Supply Chain Complete e-business planning solution Supply Chain Intelligence Sales and Operations Planning Demand Planning SCI DP From detail to summary Inventory Optimization Supply Chain and Manufacturing Planning Global Order Promising Deployment Planning* Manufacturing Scheduling IO ASCP GOP ASCP MS TP CP Collaborative Planning From short-term to long-term * Future Maintain Service Fulfill Make Finance HR Projects Transportation Planning SC Exception Management All Product. All rights reserved. .

Inventory Postponement Optimization .

Inventory Optimization Region 1 Cust 1 Cust 2 Utilize Postponement to Support the Lean Enterprise Region 2 Cust 1 Cust 2 Determine Where to Hold Inventory to Guarantee a Desired Service Level – – – Manufacturing plants Distribution centers Central warehouses Determine What Stage of Production to Hold Inventory – Distribution Center 1 Distribution Center 2 – – Finished goods Die bank Wafers • Postpone Value-Add Activities Test Until Actual Demand Pull Initial Safety Stock Levels Fab Shop Safety Stock with Postponement .

Inventory Postponement Optimization Key capabilities Without Oracle Reduce inventory without sacrificing customer service – Postponement Manage supply chain variability Inventory Investment Choose the best service level strategy based on cost and revenue Lower Inventory Cost With Oracle Higher Service Level 10 30 50 75 80 85 90 95 100 Invest in profitable channels. not programmers Out-of-the-box optimization – Service Level . and customers Manage seasonality and product life cycle characteristics – Recommend time-phased safety stock to supply planning For planners. products.

All rights reserved. Private and confidential. . 2004.Reduce inventory without impacting customer service Copyright © Oracle Corporation.

Simulate multiple scenarios to find the optimal trade-off between cost and service level .

Cambrigde Silicon Radio Revenues 2001 – 2002 – 2003 – 17’’ 28’ 68’ 2004 253’ (1000$) Revenues 4times 2003 Market share of 50% Shipped 50 million single chips Bluetooth devices A Fabless Company Slide 27 .

400’ 2004 1300’ (MNok) Project started Aug. 2004.Turnover 2001 – 2002 – 2003 – 112’ . go live Apr. 2005 Cambrigde Silicon Radio Slide 28 .168’ .

we entered the IEEE 802. In the Bluetooth market.4GHz Bluetooth® personal area networking standard.11 applications. Our business started with a focus on solutions for the 2. providing compelling performance and cost advantages to OEMs.11 marketplace . in November 2004.with devices capable of operation in both the 2. b and g). and emerging embedded applications in portable consumer electronics devices (including mobile phone handsets) and home appliances. . 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. This brand ethos has been carried through to 802. with an IC architecture that integrates a new level of functionality embracing all three major variants of the protocol (802.a family of wireless standards also referred to as 'Wi-Fi' or 'Wireless LAN' .A brief introduction to CSR: CSR designs and manufactures single-chip wireless devices.4 and 5GHz frequency bands. CSR is ranked #1 in every Bluetooth market segment with a unit market share in excess of 50%.11a. and IC choices that offer solutions for both current applications.

Industry Solution .High Tech: Semiconductor o lic Si n In go t d he W r afe Fa d te ica br er af W o Pr d be er af W ie /D er f ed bl m se As ice ev D d te es T ice ev D w Ra lis Po a W Front-end Process Back-end Process Customers Suppliers Secondary Lead Frame Gold Wire Die Molding Compound Portal Collaborative Demand Plan Portal Internet Collaborative Supply Plan Automated Exceptions Automated Exceptions Collaborative Planning Process Automated Exceptions Single Holistic Plan Marketing Consensus Forecast Forecast Sales Forecast Mfg Forecast Demand Planning Process t = hours Supply Planning Process .

All rights reserved. All Product. Customer. & Supplier & Supplier Information Information CP Procure Plan Develop Market Order Sell Copyright © Oracle Corporation. 2005.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 Sales and Operations Planning Demand Planning SCI DP From detail to summary Inventory Optimization Supply Chain and Manufacturing Planning Global Order Promising Deployment Planning* Manufacturing Scheduling IO ASCP GOP ASCP MS TP CP Collaborative Planning From short-term to long-term * Future Maintain Service Fulfill Make Finance HR Projects Transportation Planning SC Exception Management All Product. . Customer. Private and confidential.

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