Professional Documents
Culture Documents
Advanced Planning
Enabling the demand driven adaptive planning process platform
Presenter’s Name
Presenter’s Title
Safe Harbor Statement
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle At-a-Glance
Globally…
#1 in Database
#1 in Supply Chain Mgmt
#1 in Customer Relationship Mgmt
#1 in Human Capital Mgmt
#1 in Industries
Founded in 1977. Headquarters in Redwood Shores,
CA with operations in 145 countries. - Retail
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
A Changing Global Landscape
Business trends forcing you to move to demand driven adaptive planning
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Demand Driven Adaptive Planning
The demand driven company runs on real-time information
Sense
Demand
Shape
Demand
Respond to
Demand
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Why Is Demand Driven Important?
Tangible benefits!
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Cannot Enable with Disconnected Systems
CUSTOMERS SUPPLIERS
Tier 2
Response 1:
Tier 1
Maintain excess inventory
Demand Planning
number
Supply Planning
Supply Chains built on
INVENTORY
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Better Approach
Demand driven adaptive planning process platform
CUSTOMERS SUPPLIERS
• Real-time end demand visibility
Tier 2
– Quickly sense and respond to
demand changes
Tier 1
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customers Achieving Significant Benefits
• Alcatel eND moved to virtual supply chain model and reduced inventory by
more than 65%
• Anugrah Argon Medica improved on-time delivery to 98%
• VTech reduced order fill rate from 55% to 95%, increase inventory turns by
100%, reduced price protection claims by 40%
• Dow Chemical reduced inventories by $350M, rationalized carriers from
200 to 12
• GrafTech reduced inventories by 40% and lead times by 20%
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
How
Delivers
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning Solution
Complete, best-in-class e-business planning process platform
Trading Partners
Network
Design Demand Sensing
Integrated And Shaping
Postponement
Planning Optimization Holistic Preconfigured
Functions Supply Worksheets and
Promise, Workbenches
Planning
Distribute, and
Replenish
Execute to plan
Legacy
Future * E1 * EBS … * ERP
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning
Enables leading edge and transformational business processes
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning
Enables leading edge and transformational business processes …
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Sense Demand – Accurately Predict Demand
Improved demand management — The first step to demand driven
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Sense Demand – Accurately Predict Demand
Productivity enhancing UI
Configurable worksheets
Easily navigate display the data each
through user user needs to his job
defined hierarchies
Configurable reports,
charts and graphs can
be displayed anywhere
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
DeRoyal Industries
Competitive switching
2000
• What
Category growth were the indirect effects such as
1500 Baseline
Actual
cannibalization and consumer stockpiling?
1000
• Do I have enough material and capacity to satisfy
500
0
the promotion demand?
Period 1 Period 6 Period 11 • Where do I have excess capacity and how can I
influence demand to consume that excess?
Cannibalization • How does a marketing program at a brand or
Pre- and post-effects product family level impact a specific SKU?
Competitive switching
Category growth
Baseline
Actual
6 Period 11
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Predictive Trade Planning
Retailer /
Manufacturer Channel Partners • Coordinate trade promotions with
consumer marketing programs
Establish promotion
objectives (incl. ROI)
• Simulate scenarios to determine
achievable sales and ROI goals
Create &
approve
• Create reconciled plans at
budget corporate, account, category, and
product levels
Allocate Create
budget offer • Allocate trade funds and other
resources
Extend
Accrue as offer to Review / • Calculate anticipated sales lift
liabilities Partner
accept offer for including in sales forecasts
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Promotions Optimization
Select the most profitable promotion
Typical Demantra
• Accurately estimate base volume and
Cross product
Cannibalization
components of promotional lift
– Provides decomposition of incremental volume from advertising,
Pre and Post promotions, or sales incentives
Promotion – Granular lift analytics
Effect – Incremental volume lift coefficients maintained at lowest level
Incremental
Long-Term
Growth • Promotion optimization
– Simulate volume and profitability of future promotions
– Perform what-if analysis to understand the impact of varying
Competitive
promotional tactics and price points
Switching
– Optimize promotional events based on goals and constraints -
profit, revenue, units and constraints - budget, timing, margin
– Decompose lift to understand cannibalization, pantry loading,
and halo effect
Baseline Baseline
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Promotions Optimization
Drive future improvements based on past promotions performance
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – New Product Introduction
Accurately forecast demand for new products based on existing data
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Promotions Optimization
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Welch’s
Company
• Leading producer of juices and jams
Marketing
Strategic plans Profitability
Product Promotion
Capacity plans
effectiveness
Development
Executives
Phase in and phase
Plan accuracy
out products Manufacturing
• Identify financial and revenue goals • Review supply and demand plans
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Real-Time S&OP
Leverage best-in-class Sales and Operations Planning from Demantra
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Real-Time S&OP
Leverage best-in-class Sales and Operations Planning from Demantra
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shape Demand – Real-Time S&OP
Leverage best-in-class Sales and Operations Planning from Demantra
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
VTech
Company
• $1 billion in revenues, operating worldwide
• Manufacturing plants in China
• Leading provider of cordless phones and electronic children’s toys
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Respond – Holistic Supply Planning
Complete, best-in-class e-business planning process platform
• Out-of-the-box optimization
– Use costs or decision rules
– Enforce due dates or capacity
• Start quickly
– Planners define the problem to solve
– Flexible defaulting
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Adaptable – Segment the Problem As Needed
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples
Collaborative
Constrained
MPS plan for demand Knowles Electronics has
all facilities plan reduced inventory by $1M per
month after implementing
Inventory Advanced Planning
postponement
plan
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Respond – Multi-Enterprise Collaborative Planning
Cross-enterprise synchronized view of supply and demand
CONTRACT
CUSTOMER YOU SUPPLIER
MANUFACTURER • Plan your extended supply chain
– Share forecasts and supply commits with customers
Consensus and suppliers
Demand forecast
‘systems’ – Get visibility to supplier capacity
– Reallocate key components
Supply – Make alternate sourcing decisions
forecast Demand ‘boards’
Run plan
Run plan
• Reduce inventory cost and improve
fulfillment
– Suppliers manage your inventory
Supply commit
‘boards’
– Manage your customers’ inventory
Optional
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Respond – Demand Driven VMI
Real-time POS driving adaptive forecasting and replenishment
Generate ship-to
level forecast and
replenishment plan
Ship items
Pay on receipt/use Pay on receipt/use
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Alcatel eND
Company
• Global leader in telecommunications and Internet technology; Alcatel is a global 500 company that
operates in 130 countries
• Designs and builds IP Communications products and solutions that supports the borderless
enterprise
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Design Resilient Supply Networks
Enable agile supply networks, aligned with your postponement strategy
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Design Resilient Supply Networks
Manage supply chain risk with profitability and postponement in mind
Design supply chains that are resilient
• Network modeling and alternates
• Sourcing strategy
• Cost modeling
• Asset rationalization
• Safety stock strategy
• What-if simulations
• Risk related to unplanned events
Network structure
Strategic Network Optimization (SNO) Sourcing rules
Inventory Optimization (IO)
• Network modeling and alternates
Leverage resiliency in your supply
Suppliers Modelresponses
chain for• tactical
and CMs distribution of variability
• What-if simulations Mfg and Dis facilities (demand, supply, lead time)
• Cost modeling Shipment methods • Budget and capacity constraints
• Asset rationalization • Time-phased min,
• Risk related to max, and target
unplanned events service levels
Inventory policies
Target inventory levels
Identification of point of postponement
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Design Your Network Holistically
It’s important to do this more frequently
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Consider All Costs That Impact The Decisions
Costs ($): Real and Penalty , Variable and Capacity Constraints (Hard and Soft)
Fixed
• Supply constraints
• Transportation (inbound, outbound) • Manufacturing constraints
• Storage and inventory carrying costs • Transportation constraints
• Fixed costs (startup, shutdown, operating costs) • Storage and inventory constraints
• Material supply • Target service levels
• Manufacturing and labor • Dynamic safety stock
• Price (for profit optimization)
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Account For All Variability
Take all variability and realities of your supply chain into consideration
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Account For Variability
Make profitability decisions based on total net delivered cost
Transfer LT = 3 d + 1 d Transfer LT = 4d
Processing LT = 4 d
Transfer LT = 30 d + 6 d Transfer LT = 4d
Processing LT = 4 d
• Local supplier: more dependable, shorter lead time Less hedge inventory
• Offshore supplier: increased lead time and variability More hedge inventory
• Increased inventory carrying cost may offset savings in total landed cost
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Enable Fault Tolerant Supply Networks
Simulate planned and unplanned events
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning
Enables leading edge and transformational business processes …
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Drive Operational Excellence
Better execute to demand signals and measure improvements
Target
service
levels
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Real-Time Distributed Order Promising
Improve demand fulfillment through 24x7 constraint based order promising
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Real-Time, Interactive Production Scheduling
Improve shop floor efficiency
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Customer Examples
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Embedded Supply Chain Analytics
Drive continuous improvement - Closed-loop performance management
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
<Insert Picture Here>
Momentum
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Ongoing Momentum, Large Install Base
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
A Few Live Customers …
• Intersil – ASCP, DP, GOP • DeRoyal Industries – Demantra DM
• Fuji Xerox Asia Pacific – ASCP, DP • Applica – Demantra DM, ASCP
• Agere Systems – ASCP, DP, CP, GOP • Welchs – Demantra PTP, TPO
• NCR – ASCP, DP • Alcoa – ASCP, DP, GOP, SNO
• Namitech – ASCP, GOP • Acuity Lighting – Demantra DM, ASCP
• Emerson – ASCP, DP • Johnson & Johnson – SNO
• VTech –Demantra RT S&OP • Canon Virginia – ASCP, CP
• BMW – SNO • GE Energy / Power Systems – ASCP, GOP, PS
• Xilinx – ASCP • GE Transportation Avionics – ASCP
• Sony SNC – ASCP, DP, GOP • Motorola BCS – ASCP, DP, GOP
• Agilent – ASCP, GOP, DP, IO • Avago – ASCP, DP, GOP
• Panduit – IO • Qualcomm – ASCP, DP, CP
• Dover El. - Knowles Electronics – ASCP, GOP • McGraw-Hill – ASCP, DP
• Matsushita Panasonic – ASCP
• Alcatel eND – ASCP, DP, CP
• Honeywell S&C – ASCP, DP
• Intersil – ASCP, DP, GOP
• Embraer – CP, DP
• Cervecería Quilmes – SNO
• Tube Investments – ASCP
• GrafTech International – SNO
• Toyota Racing Division – PS
• Boeing – ASCP
• Eaton Trucks – ASCP
• Anugra Argon Medica – ASCP, DP
• Kyocera – ASCP
• Cochlear – ASCP, DP
• Nampac – PS, SNO
• Pillsbury Foods – SNO
• Inventec – ASCP, GOP, CP
• Dow Chemical – SNO, PS
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
<Insert Picture Here>
Summary
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning Solution
Complete, best-in-class e-business planning process platform
Trading Partners
Network
Design Demand Sensing
Integrated And Shaping
Postponement
Planning Optimization Holistic Preconfigured
Functions Supply Worksheets and
Promise, Workbenches
Planning
Distribute, and
Replenish
Execute to plan
Legacy
Future * E1 * EBS … * ERP
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Planning
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Key Takeaways
Low risk, high value transition to a best-in-class planning solution
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract