R12 Supply Chain Management Update. Agenda What does it mean to you? How does R12 help to increase...

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R12 Supply Chain Management Update

Agenda

• What does it mean to you?• How does R12 help to increase revenue?• How does R12 help to win SAP?• R12 Resources

Agenda


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

- Retail

- Communications

- Public Sector

- Professional Services

- Financial Services

• 275,000 total customers

• 220,000 database customers

• 30,000 applications customers

• 19,000 SMB apps customers

• 30,000 middleware customers

• 17,700 partners

• 60,000 employees

• 14,000 developers

• 7,000 support staff

Founded in 1977. Headquarters in Redwood Shores, CA with operations in 145 countries.

Oracle is Number 1 in Software* in Process

Manufacturing in APEJ

1. *Software revenue in this instance refers to an aggregation of Customer Relationship Management, Enterprise Resource Management, Product Supply Chain, Business Intelligence, and Database Management Systems markets.

2. APEJ includes: Australia, Hong Kong, India, Korea, Malaysia, PRC, Singapore, Taiwan and Thailand only.3. Software revenue includes license, maintenance, and other revenues.

Source: IDC Asia/Pacific software Tracker, 1H2006

EBS R12 Feedback: From a Leading Analyst

Colin Masson, Research DirectorMarch 30th 2006

“Oracle is building a one-stop shop

for ERP, Enterprise Manufacturing

Intelligence (EMI), and MES. Oracle

has quietly evolved overtly

competitive functionality on

E-Business Suite’s rich manufacturing

data model - eliminating the need for

EMI and MES partners for all but the

most complex manufacturing

scenarios.”

Executive Brief: EBS R12October 2006

“In our opinion Oracle's EBS 12 is

a significant step forward in the

integrated suite approach to

enterprise applications. The Suite

is functionally rich and serves the

global enterprise well. As a tightly

integrated suite of products,

businesses will realize significant

gains from the interoperability of

the suite environment.”

EBS R12 Feedback: From Our Global Partners

“We found Oracle’s E-Business Suite

Release 12 to be rich in functionality

that our clients need to succeed in

today’s business world.”

“Release 12 features will help solve our

clients’ biggest business process and

industry-specific challenges and we

look forward to partnering with Oracle

and our joint clients.”

Brian A. MitchellGlobal Business Services Americas Oracle Practice Lead

“Many clients are evaluating whether

to upgrade from Oracle

E-Business Suite 11i to Release 12

or wait for the larger Fusion release.

There are significant application and

architecture changes in Release 12.

Upgrading now will help build the

foundation to prepare for Fusion.”

R12 Training FeedbackOctober 2006

EBS R12 Feedback: From a Global Customer

“The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring.” -and-

“The ability to perform a health check of our global instances throughout the accounting cycle instead of waiting until the books are closed is a valuable aspect of reporting across Ledgers.” -- Pam Bateman, Business Solutions Manager for Finance

“Centralization of subledger accounting rules would minimize set up and maintenance, providing greater financial control, and enforcing a consistent approach for true global accounting.” -- Carolyn Carter, Director of Global Accounting, Process Mgmt

“Banks, taxes, payments, and accounting – everything thatbecomes centralized will bring Emerson tremendous efficiencies.” -- Greg Harre, Controller, Tool Company

Feedback from Release 12 Training, October 2006

– Planning– Procurement– Manufacturing– Logistics– Service– Maintenance– Product Lifecycle Mgmt

– Sales & Marketing– Finance– Human Resources– Projects – Contracts– Order Management– Configurator

Over 2,350 New Capabilities• 50% Cross-Industry Capabilities

11 New Modules / Products

• 50% Industry Specific Capabilities

New in 11i.10…Base Differentiators…• Self-service enterprise

requisitioning from suppliers or internal stock

• Integrated asset and production planning

• Supplier Self-Service

• Flexible invoice matching including match to receipt

• Automatic invoice and debit memo generation

• Project- and budgetary-based purchasing

• Multi-attribute scoring for reverse auctions and RFQs

• Packaged spend, supplier , and commodity intelligence

• Advanced pricing capabilities

• Transparent Punchout

• Global Agreements

New in R12…• Services procurement –

contingent labor & bus services, negotiation through payment

• Procurement contracts – global T&Cs standards, negotiation, doc & change mgmt, compliance

• Formula-based pricing & tiered discounts (Advanced Pricing)

• Retroactive pricing including automated invoice adjustments

• Negotiate with subjective scoring and what-if analyses

• Automatic bid scoring and award (Sourcing Optimization)

• Shared services procurement

• Requisition “SmartForms”

• LPN & lot/serial receiving

• Supplier managed banking

• XML publisher for .pdf printing

• Professional Buyer’s Workcenter

• 2-way MS Word integration

• Unified catalog architecture

• Shared services support

• Requestor directed procurement

• Prospective supplier registration using iSurvey

• Supplier catalog authoring

• Tolerance based order change auto-approval

• Supplier scorecarding

• Prospective supplier registration

• Advanced pricing integration

• Team scoring of sourcing rqmts

• Parallel approvals

• Position hierarchy approvals

• Complex work procurement

• eTax integration

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

Evolution of Oracle Advanced Procurement

New in 11i.10…Base Differentiators…

• Multi-channel support

• Interactive guided selling with non-linear feature/option selection

• Web-based guided buying

• Simple to complex product and service modeling

• Real-time feedback about selection impact

• Interactive pricing and Available to Promise (ATP)

• Integrated quoting functionality

• Integrated configuration order management

• Multiple, customized UIs

• Interactive development environment designed for non-programmers

• Web-based developer:

- Multi-user access

- Constraint definition language

- Configurator extensions

• Enhanced runtime UIs

- New controls, navigation styles

- Flexible, flow-based layout

- Templates for common content

• Model debugger

• Generic Configurator UI (for BOM option selection)

• Enhanced date effectivity

• Support for configured contracts

• JSP Tag Library- J2EE compliant tag

framework; used to embed model data content directly on customer JSP pages

• Import of Advanced Product Catalog User-Defined Attributes

- Use APC User Defined Attributes in Configurator Developer to define compatibility between items

• Model Migration- Migrate one or more

configuration models between two instances

New in R12…

Evolution of Oracle Configurator


Evolution of Oracle Order Fulfillment – Order Mgmt

New in 11i.10…Base Differentiators… New in R12…• Multi-channel order capture,

seamless integration to quoting and web store

• Flexible, workflow-based architecture supports multiple fulfillment flows

• Sophisticated pricing models and promotion engine, with mass maintenance

• Seamless shipping and WMS integration; shipping can be “hands off”

• Support for multiple manufacturing models, and multiple instantiations

• Integrated service provisioning capabilities

• Cross-/up-sell related items

• Sales agreements

• High volume order import

• Author and negotiate terms on sales agreements

• Down payments, with quick receipt, for retail; additional payment types

• Scarce inventory allocation• Catch weight pricing for either

discrete or process items from a WMS inventory organization

• Provide choices for freight rating

• HTML interfaces for advanced pricing setups

• Java pricing engine for very high performance

• Drop ship change management

• Simple negotiations• Web-based configurator

developer tool• XML-based change orders

• Multi-Org Access Control – enter or process orders for multiple operating units with single responsibility

• One inventory module for process and discrete organizations

• Ensure COGS / revenue recognition occur in the same accounting period

• Ensure customer acceptance before invoicing

• Calculation of periodic charges for fixed prices

• Capture credit card security code, CVV2

• Use Orders tab in Contact Center to view, add, and configure Comms services

• Workflow validation tool


Evolution of Oracle Order Fulfillment - Logistics

New in 11i.10…Base Differentiators…• Built-in, not bolt-on RF/mobile

technology

• Flexible rules-based processes

• Inbound logistics – receiving, inspections, directed put-away, cross docking, ASN

• Outbound logistics – dock assignment, pick wave selection, picking methods, cartonization / packing, trailer loading

• Reverse logistics – RMA receiving, supplier returns, disposition & refurbishment

• VMI & consigned inventory

• Manufacturing component picking & finished goods labeling & put away

• UPC & smart barcode support

• Material handling equipment integration

New in R12…• Configurable, streamlined

picking UIs & flows

• Configurable material routings for inbound loads

• RFID-based transactions

• UCC 128 / UCC 14 support

• Work-plan based put-away

• Catch weight support

• Packing workbench

• Over picking & bulk picking

• Delivery consolidation

• Graphical UI for Mobile Transactions

• Logistics-related analytics/KPIs

• Mixed-mode, multi-node transportation planning and execution (G-Log)

• WMS Integration to Oracle Transportation Mgmt (G-Log)

• Oracle Process Manufacturing Support including ingredient picking, product completion & labeling

• Labor Management & Reporting

• Planned Cross Docking

• Dual Unit of Measure control

• Enterprise Asset Management Integration for maintenance parts picking

• Configurable shipping documents

• Transportation Mgmt (v5.5)

- Cooperative Routing

- Load building / configuration:

- Automated dock appointment scheduling

- Carrier capacity commitments

- Deeper EBS Integration


Support for APAC Manufacturing PracticesSatisfy Local Requirements to Operate in Key Outsourcing Regions

Chargeable SubcontractingAutomatically create replenishment orders and track component allocations & inventory for sub-contracted mfg (e.g. Shikyu)

Golden Tax Support for ChinaProvide compliant VAT calculation, invoicing, and tax reporting via China-certified “Golden Tax” software

Customer Acceptance, Deferred Revenue and COGSRecognize and account for COGS and revenues in the same proportion, based on flexible contingencies & within the same accounting period

Periodic Average CostingSupport accounting compliance requirements in countries such as China/Taiwan

• Public Sector

• Healthcare

• Education & Research

Public Services

Manufacturing• High Technology

• Industrial Manufacturing

• Automotive

• Life Sciences

• Consumer Products

• Chemicals

• Aerospace & Defense

• Communications

• Travel & Transportation

• Utilities

• Oil & Gas

• Natural Resources

Asset Intensive

• Financial Services

• Professional Services

• Business Services

• Engineering & Construction

• Retail

• Wholesale Distribution

Service

Target Industries: Deep and Adaptive

• Public Sector

• Healthcare

• Education & Research

Public Services

• Financial Services

• Professional Services

• Business Services

• Engineering & Construction

• Retail

• Wholesale Distribution

Service

Agenda


How does R12 help to increase revenue?

• Better Supply Chain Planning• Strategic Network Optimization (SNO)• Demantra• Advanced Supply Chain Planning• Distribution Planning

• Better Integration• PIM (Product Information Mgmt) / PLM (Product Lifecycle Mgmt)

• Customer Data Hub• Project Management• Document Mgmt System

• MES (Manufacturing Execution System) readiness• Support APAC practice

• Better Interface• DBI – provides drill down function• Internet-based Procurement

•Global Order Promising (GOP)•Inventory Optimization (IO)•Collaborative Planning (CP)•Transportation Planning (OTM)

Source: ARC Research

Agenda


• Product Lifecycle Mgmt• CAD Sharing & Viewing• Product Info Mgmt Hub• UCCnet Trading Connector• Project Management• Product Intelligence• Collaboration Suite

Product MgmtProduct Mgmt

• Order Management• Configurator• Advanced Pricing• Release Management• Sales Contracts• iStore, Receivables• Order Mgmt Intelligence

Order ManagementOrder Management

SC PlanningSC Planning

• Network Optimization• Demand Management• Forecasting & Modeling• Sales & Ops Planning• Advanced SC Planning• Constraint Based Optim• Collaborative Planning• Inventory Optimization• Global Order Promising• Predictive Trade Planning• Deductions & Settlements• Promotion Optimization• Planning Intelligence

• Sourcing• Procurement Contracts • iProcurement• Services Procurement• Purchasing• Supplier Collaboration• Advanced Pricing• Payables• Purchasing Intelligence

ProcurementProcurement

Supply Chain FootprintDevelop

Market

Sell

Order

Plan

Procure

Make

Fulfill

Service

Maintain

Finance

HCM

Projects

Contracts

Customers,

Suppliers,

Products, …

Customers,

Suppliers,

Products, …

• TeleService• iSupport• Field Service• Mobile Field Service• Advanced Scheduler• Spares Management• Depot Repair• Service Contracts• Interaction Center• Service Intelligence

ServiceService

• Enterprise Asset Mgmt• Self-Service Work Reqs• Asset Tracking• Install Base• Property Management• Maintenance Intelligence

Asset Lifecycle MgmtAsset Lifecycle Mgmt

LogisticsLogistics

• Inventory Management• Mobile Supply Chain Apps• Warehouse Mgmt• Transportation Mgmt• Operational Planning• Forwarding & Brokerage• Freight Pay, Bill, Claims• Transportation Sourcing• Cooperative Routing• Sensor Based Services• Fulfillment Intelligence

• Production Scheduling• Discrete Manufacturing• Flow Manufacturing• Flow Sequencing• Shop Floor Management• Process Manufacturing• Mfg Execution System• Repetitive Mfg Optimization• Mobile Supply Chain Apps• Manufacturing Intelligence

ManufacturingManufacturing

Supply Chain

Footprint

DevelopMarket

Sell

Order

Plan

Procure

Make

Fulfill

Service

Maintain

Finance

Projects

Contracts

HCM Customers,

Suppliers,

Products, …

Customers,

Suppliers,

Products, …

R12 Effects on Competition

Better now for CPG, Process Industries…• APS now very competitive with Manugistics

APS now much better at planning than SAP…• Demand Driven

• Demantra, R12 DP, R12 ASCP

• Supply Chain Risk Mitigation• SNO, R12 IO

• Operational Excellence• PS, OTM

More detailed competitive information covered for each feature in detail discussion

Plan

Act

Learn

All High Value-Add and can lay on top of

SAP

How R12 Will Help with Analysts

Oracle should move up closer to SAP for 2007


Oracle should move up close to or past SAP for 2007

How R12 Will Help with AnalystsYou should see

Oracle should move up and to the right for 2007.

Note Demantra position in 2006.


• R12 will provide more validation for analysts who like Oracle (AMR, Forrester) and will remove some issues for analysts who dislike us (Gartner)

• R12 APS continues a tradition of strong planning• Discrete planning additions keep pace and close gaps with SAP

• Process planning additions further separate from SAP

• Distribution-Intensive• Pre-R12 most analysts rated Oracle functionality lower for these

industries

• R12 DPP gets Oracle “equal” to others in space

• We should see Oracle move up on Distribution Magic Quadrant

How R12 Will Help with AnalystsOracle OpenWorld gave analysts a good look at everything in APS, and they are

starting to draw the right conclusions. Example:

The most recent acquisition of the former Demantra promises to add broader demand management functionality to the suite of Oracle Advanced Planning applications. Demantra was a much broader demand planning and management tool than the existing Oracle Demand Planning application, and it has been interesting to observe how quickly Oracle and Demantra development groups have initially integrated combined functionality. The addition of multi-echelon distribution network planning, fair-share supply allocation, and more robust abilities to handle larger planning models are clearly directed toward making Oracle Advanced Planning more attractive to brand-oriented manufacturers such as consumer product goods and consumer electronics manufacturers. There are also very interesting efforts underway to provide broader sales and operations planning support by integrating the analytical and reporting aspects of Siebel CRM with the sales and operations planning capabilities that Demantra had developed. Those CPG manufacturers with Siebel as their current CRM backbone should keep their eye on developments in this area.

Oracle is in the final stages for Release 12 of the Oracle Advanced Planning Suite (APS). Oracle has previously accumulated with APS an installed base primarily weighted in high-tech and discrete manufacturing sectors. Within Release 12 is a concerted strategy in providing enhanced functionality to make this planning suite more attractive in consumer goods, as well as process industry value-chains . Besides the Demantra demand management enhancements previously mentioned, process manufacturing and network optimization intellectual property was brought over from the JD Edwards/Numetrix groups to add support for contiguous flow operations from raw materials to finished product, along with support for complex routings, and shelf-life control. The former process MRP will be replaced with unconstrained ASCP for users of Oracle Process Manufacturing (OPM). Manufacturers can also expect a completely new user interface which is rich in planner specific workbench screens, tailored to what a planner may need to see, designed to more clearly highlight exceptions and alerts.

Agenda


Additional R12 Resource Links

• R12 APS Transfer Of Information Presentations• R12 APS Release Content Documents• R12 Online Training (TOI sessions)

• Demantra Information• Strategic Network Optimization and Production Sched

uling Information

APS R12 Field ReadinessPre-course work

• Regional Field pre-requisites• R12 Development TOI Material• Development Recorded R12 Sessions on OU• SNO, PS Integration• Demantra

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