Oracle Supply Chain Business Flows

DevelopDevelop Concept to ReleaseConcept to Release

PlanPlan Forecast to PlanForecast to Plan

ProcureProcure Procure to PayProcure to Pay

ManufactureManufacture Demand to BuildDemand to Build

FulfillFulfill Order to CashOrder to Cash

Forecasting vs Reality

Issues

Metal TubeSupplier

Bikes R US

Warehouse Shops Customer

Clothsupplier

TyreSupplier

SpokeSupplier

FoamSupplier

SeatSupplier

WheelSupplier

Traditional Planning Process

Customer Forecast Supplier Capacity

Tier 2

Tier 1

Marketing Forecast

Sales Forecast

Mfg.Forecast

Distribution Plans

Production Plans

ManufacturingPlans

t = weeks

?

Business Impact

Planners

InaccurateForecast

InaccurateOrder

Promising

PoorOrder

Tracking

IncorrectProduct Mix

ExpensiveProducts

HighInventory

ExpediteCosts

PremiumPurchase

Costs

IdleResources

PoorSupplier

Utilization

LongPlanningCycles

ManualProcesses

Limited Collaboration and Limited Performance Management

C Executives

ServiceLevel

Opportu-nities

EfficiencyInventory

CostRevenue

AssetUtilization

Oracle’s Advanced Planning Solution

SuppliersCustomers

Marketing Forecast

Sales Forecast

Mfg.Forecast

Consensus

Forecast

ProcessAutomatio

n

t = hours

Single Plan

Portal

Collaborative Planning

Demand PlanningAdv. Supply Chain Pln.Inventory OptimizationGlobal Order Promising

Collaborative Supply Plan

Collaborative Demand Plan

Internet

Portal

ExceptionsExceptions

Demand Planning Process Supply Planning Process

Business Impact

C Executives

ServiceLevel

Opportu-nities

EfficiencyInventory

CostRevenue

AssetUtilization

Planners

ConsensusForecast

More accurateOrder

Promising

BetterProduct Mix

CheaperProducts

InventoryPostponement

VMICMI

BetterScheduling

Better Supplier

Utilization

FasterPlanningCycles

ProcessAutomation

Improved Collaboration and Integrated Performance Management

BetterVisibility

BetterSourcing

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning*

Collaborative Planning

SCI

DP

IO

Deployment Planning** ASCP

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

SC EXCEPTION MGTSC Exception Management CP

From short-term to long-term

Fro

m d

eta

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um

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ry

Oracle Advanced Planning

* Coming in 11i.10 ** Coming in 11i.10+

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning*

Collaborative Planning

SCI

DP

IO

Deployment Planning** ASCP

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

SC EXCEPTION MGTSC Exception Management CP

From short-term to long-term

Fro

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ryOracle Advanced Planning

Inventory Optimisation

Metal TubeSupplier

Bikes R US

Warehouse Shops Customer

Clothsupplier

TyreSupplier

SpokeSupplier

FoamSupplier

SeatSupplier

WheelSupplier

Oracle’s Inventory Optimization Solution

Inv

en

tory

In

ve

stm

en

t

Service Level

10 30 50 75 80 85 90 95 100

Higher Service Level

LowerInventoryCost

WithoutOracle

WithOracle

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning*

Collaborative Planning

SCI

DP

IO

Deployment Planning** ASCP

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

SC EXCEPTION MGTSC Exception Management CP

From short-term to long-term

Fro

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ryOracle Advanced Planning

DRAFT

Supply Chain & Manufacturing PlanningReduce your Supply Chain Planning Cycle Time

Internet

Short-term planning

Long-term planning

Semicon

Process

Discrete

Flow

Project

Plants

Warehouses

Customers

Suppliers

Faster and better planning cycles– Holistic planning and optimization– Telescoping granularity

For planners, not programmers– Out of the box optimization

Flexible manufacturing support– Process, discrete, flow, project, semi-

conductor

Scalable and reliable– Database centric planning

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning*

Collaborative Planning

SCI

DP

IO

Deployment Planning** ASCP

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

SC EXCEPTION MGTSC Exception Management CP

From short-term to long-term

Fro

m d

eta

il t

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um

ma

ryOracle Advanced Planning

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning*

Collaborative Planning

SCI

DP

IO

Deployment Planning** ASCP

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

SC EXCEPTION MGTSC Exception Management CP

From short-term to long-term

Fro

m d

eta

il t

o s

um

ma

ryOracle Advanced Planning

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning*

Collaborative Planning

SCI

DP

IO

Deployment Planning** ASCP

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

SC EXCEPTION MGTSC Exception Management CP

From short-term to long-term

Fro

m d

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um

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ryOracle Advanced Planning

Example Live Customers Intersil - ASCP, DP, GOP Fuji Xerox Asia Pacific - ASCP, DP Perkin Elmer - ASCP, GOP NCR - ASCP, DP Namitech - ASCP, GOP Toshiba - ASCP, DP Xilinx - ASCP UPS Logistics - ASCP, GOP Agilent - ASCP, GOP, DP Mykrolis - ASCP Knowles Electric - ASCP, GOP Panasonic - ASCP Honeywell S&C - ASCP, DP Embraer - CP, DP Tube Investments - ASCP Eaton Trucks - ASCP Kyocera – ASCP Brandt – ASCP GOP France Telecom – ASCP Melexis – ASCP, DP, OSFM

Cisco - ASCP, GOP Alcoa - ASCP, DP, GOP Canon Virginia - ASCP GE Power Systems - ASCP, GOP GE Aircraft Engines - ASCP Silgan Plastics - ASCP Qualcomm - ASCP McGraw-Hill - ASCP, DP Alcatel eND - ASCP, DP, CP Cabot Microelectronics - DP Mango - CP Rockford - ASCP, DP Quantum - ASCP, DP Boeing - ASCP Anugra Argon Medica - ASCP, DP Cochlear - ASCP, DP Hitachi Construction – ASCP Carel – ASCP Synventive – ASCP MMK - ASCP

Example Live Customers (EMEA) Intersil - ASCP, DP, GOP Fuji Xerox Asia Pacific - ASCP, DP Perkin Elmer - ASCP, GOP NCR - ASCP, DP Namitech - ASCP, GOP Toshiba - ASCP, DP Xilinx - ASCP UPS Logistics - ASCP, GOP Agilent - ASCP, GOP, DP Mykrolis - ASCP Knowles Electric - ASCP, GOP Panasonic - ASCP Honeywell S&C - ASCP, DP Embraer - CP, DP Tube Investments - ASCP Eaton Trucks - ASCP Kyocera – ASCP Brandt – ASCP GOP France Telecom – ASCP Melexis – ASCP, DP, OSFM

Cisco - ASCP, GOP Alcoa - ASCP, DP, GOP Canon Virginia - ASCP GE Power Systems - ASCP, GOP GE Aircraft Engines - ASCP Silgan Plastics - ASCP Qualcomm - ASCP McGraw-Hill - ASCP, DP Alcatel eND - ASCP, DP, CP Cabot Microelectronics - DP Mango - CP Rockford - ASCP, DP Quantum - ASCP, DP Boeing - ASCP Anugra Argon Medica - ASCP, DP Cochlear - ASCP, DP Hitachi Construction – ASCP Carel – ASCP Synventive – ASCP MMK - ASCP

Oracle Supply Chain Business Flows

DevelopDevelop Concept to ReleaseConcept to Release

PlanPlan Forecast to PlanForecast to Plan

ProcureProcure Procure to PayProcure to Pay

ManufactureManufacture Demand to BuildDemand to Build

FulfillFulfill Order to CashOrder to Cash

Critical Activity in the Supply Chain

• Purchasing Transactions

• Price Negotiations

• Supplier Relationships

• Contract Management

Raw Mat, Assemblies, Finished Goods

Orders, Payments

InformationInformation (forecasts, schedules, availability, inquiries…)(forecasts, schedules, availability, inquiries…)

Quotes, Notifications, Invoices

CustomerCustomerOEMOEMDistributorDistributor/ Retailer/ Retailer

ComponentComponentManufacturerManufacturer

SupplierSupplier

SupplierSupplier

SupplierSupplier

Why do we Care?

Reduce Sourcing Costs

Reduce Item Costs

Reduce Requisition Processing Costs

Reduce Payment Fees

Reduce Collaboration Costs

Reduce Processing Time

Goal: Save 10-20% on Total PurchasingGoal: Save 10-20% on Total Purchasing CostsCosts

Procurement Goals

Lower Cost of Materials and ServicesStreamline Sourcing Process

Source for Best Value

Lower Cost of Materials and ServicesStreamline Sourcing Process

Source for Best Value

Optimize Supplier RelationshipsMonitor and Improve Supplier Performance

Buyer/Supplier Business Process Integration

Optimize Supplier RelationshipsMonitor and Improve Supplier Performance

Buyer/Supplier Business Process Integration

Lower Process CostsEliminate Paper-Based Processing

Automate Complete Procurement Cycle

Lower Process CostsEliminate Paper-Based Processing

Automate Complete Procurement Cycle

Analysts share our view …

Procurement will be key to survival– With the global economy slipping into a

recession, cost cutting has become job one for most businesses. After reducing headcount and streamlining internal processes, companies are now looking to trim the fat and inefficiencies from their extended network of supplier partners. Procurement and Supply Chain Management are at the head of this charge.

Aberdeen Group – December 2001

‘ONLY’ Oracle 11i Core Purchasing

Pricing Pricing AgreementsAgreements

PurchasePurchase

ReceiveReceive

PayPay

SuppliersSuppliers

Phone / FaxDesign &

Engineering

Services

Planning & Scheduling

DemandDemand

Enterprise Indirect

PurchasingPurchasing

• Inefficient, manual interactions

• Many paper-based requisitions

• Time-consuming, off-line negotiations

• Fragmented Intelligence

Pricing Pricing AgreementsAgreements

SuppliersSuppliers

Phone / FaxDesign &

Engineering

Services

Planning & Scheduling

DemandDemand

Enterprise Indirect

PurchasingPurchasing

Electronically - structured content and workflow approvals

Catalogs

Approval

The Opportunity: Oracle iProcurementReduce maverick purchasing by 50%

PurchasePurchase

ReceiveReceive

PayPay

Pricing Pricing AgreementsAgreements

SuppliersSuppliers

Design & Engineering

Services

Planning & Scheduling

DemandDemand

Enterprise Indirect

PurchasingPurchasing

Catalogs

Approval

OrdersChanges

…

Portal

Collaborate

The Opportunity: Oracle iSupplier PortalReduce calls for basic supplier inquiries by up to 75%

Online access to suppliers for all questions and transactions

PurchasePurchase

ReceiveReceive

PayPay

Pricing Pricing AgreementsAgreements

SuppliersSuppliers

Design & Engineering

Services

Planning & Scheduling

DemandDemand

Enterprise Indirect

PurchasingPurchasing

Catalogs

Approval

Portal

Collaborate

SourcingSourcing RFx

Auction

Offers

Quotes

Bids

Counteroffers

Optimize supplier contracts

The Opportunity: Oracle SourcingReduce negotiation cycle times 25-30%

PurchasePurchase

ReceiveReceive

PayPay

OrdersChanges

…

Pricing Pricing AgreementsAgreements

SuppliersSuppliers

Design & Engineering

Services

Planning & Scheduling

DemandDemand

Enterprise Indirect

PurchasingPurchasing

Catalogs

Approval

Portal

Collaborate

SourcingSourcing RFx

Auction

Offers

Quotes

Bids

Counteroffers

Optimize supplier contracts with automated sourcingIntegrated IntelligenceIntegrated Intelligence

The Opportunity: Purchasing Intelligence (DBI)Identify Improvement Opportunities easier

Improve Processes, Supply Base

PurchasePurchase

ReceiveReceive

PayPay

OrdersChanges

…

Oracle Supply Chain Business Flows

DevelopDevelop Concept to ReleaseConcept to Release

PlanPlan Forecast to PlanForecast to Plan

ProcureProcure Procure to PayProcure to Pay

ManufactureManufacture Demand to BuildDemand to Build

FulfillFulfill Order to CashOrder to Cash