SCM of Fusion application


S318307 Introducing Oracle Fusion Supply Chain Management Applications

Jon Chorley Doug Souza Vice President, SCM Strategy Vice President, SCM Fusion Development

ORACLE PRODUCT

LOGO


Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracles products remain at the sole discretion of Oracle.


Agenda

Oracle SCM Strategy Fusion SCM Applications

Distributed Order Orchestration Global Order Promising Inventory, Shipping, and Receiving Cost Management, Receipt Accounting Product Master Data Management

Customer Involvement Fusion SCM Adoption and Coexistence


Oracles Information-Driven Value Chain Enabling Value Chain Transformation

Demand Driven Predict and shape demand

Fulfillment Excellence Adaptive supply through integrated logistics & mfg

Profitable Innovation Reduce time-to-market, improve quality & compliance

Value Chain Alignment Profitably balance supply and demand with corporate goals

Core Principles:

Demand Driven

Fulfillment Excellence

Profitable Innovation

DEMAND

PRODUCT SUPPLY

Alignment

Real-Time Information

Information-Driven Value Chain


Stages of Evolution From Fragmented Supply Chain to Integrated Value Chain

Stage Stage Stage Stage Fragmented Silo-Based Processes

Internal Process, Data Integration

Point Capabilities

Integrated & Aligned Value Chain

1 2 3 4

Limited Collaboration

Selective Demand, Supply Improvements

Standardization, Integration, Foundational

Multi-Enterprise Orchestration

Perf

orm

ance

Spreadsheets & Manual Processes

Transactional Processes

Some Advanced Capabilities & Best Practices

Integrated Demand, Supply & Product Capabilities


Oracle SCM Roadmap Value Chain Planning 12.1.3.3 and 12.2

Improved cost modeling for S&OP scenario Rapid Planning enhancements Distribution planning metrics in APCC

Oracle Fusion Applications 11G R1

Oracle Product and Serialization Manager Track and manage serialized products

VCP Rapid Planning 12.1.3.1 Demand pull-in processing Routing & supplier capacity simulation

VCP Service Parts Planning 12.1.3.2 Fair share allocation Integration with Oracle Contracts

Oracle Transportation Management 6.2 Fleet Management enhancements Expanded small parcel & rail support LTL support in Transportation Sourcing

Oracle Global Trade Management 6.2 Classification roll-up for ATO items Restricted party match resolution

Agile BI 3.3 NPD analytics for Food & Beverage Enhancements to PLM BI

Agile PLM for Pharma (released with 9.3.1) Material & Equipment Mgmt; Recipe Mgmt Clinical supply management Drug development record & QbD

Agile PLM 9.3.1 Next Generation CAD connectors Complex document publishing Advanced Scheduling & Resource mgmt

AutoVue 20.1.0 Hotspots for 2D CAD Electronics & High Tech ERs

Warehouse Management R12.1.3 Logistics Service Provider Support Warehouse Services Billing

Agile Customer Needs Mgmt v1.1 Systems engineering enhancement Integration to CRM for idea capture

Oracle Transportation Management 6.x BI for fleet management and sourcing Smartphone app visibility, track & trace Multi-tier network planning & execution

Oracle Global Trade Management 6.x License & registration management Electronic document generation and filing Import processes & Customs management

Agile PLM for Process 6.1 Enhanced Product Quality & Scheduling Trade spec and supplier collaboration

Value Chain Planning 12.x Improved asset maintenance planning Demand Signal Repository enhancements

Agile PLM 9.3.x, Agile BI 3.x, Agile EC 3.0.2 PLM for Pharma enhancements General PLM and PLM BI enhancements Enhanced CAD Connectors

WMS 12.x, PIM 12.2+ Dispatched & Interleaved Putaway Tasks


Complete Applications Platform That Adapts To Your

Business

Complete User Experience That Shows You what you

need to know or Do

Complete choice of options, from cloud to device and

suite to module

Oracle Fusion Applications The New Standard for Business

The New Standard for Innovation

The New Standard for Work

The New Standard for Adoption


Example: Benefits of Fusion Architecture

Unbreakable Customizations

Lower Cost Pool of IT Talent Lower Cost, Simple Integration

1: 11 ratio

ABAP Programmers

Java Programmers Maintain

Upgrade

Implement 20%

Standards-based integration Traditional custom integration

Business-led configuration No impact on upgrades 40-60% faster upgrades

Rapid adoption

55% 50%

COST

11x More Java Programmers


Oracle Fusion Financial Management

General Ledger

Accounts Payable

Payments & Collections

Asset Management

Accounts Receivable

Cash & Expense Management

Common Modules KPIs, Dashboards, & Extensibility FW

Oracle Fusion Human Capital Management

Oracle Fusion Supply Chain Management

Product Master Data Management

Distributed Order Orchestration

Inventory Management

Global Order Promising

Cost Management

Shipping & Receiving

KPIs, Dashboards, & Extensibility FW

Oracle Fusion Project Portfolio Management Project Costing

Project Billing

Project Control

Project Performance

Reporting Project

Integration Gateway

Project Contracts


Oracle Fusion Sales & Marketing

Customer Master Sales Marketing

Incentive Compensation

Mobile & Outlook Integration

Territory & Quota Mgmt


Financial Compliance

Issue & Risk Manager

Access Controls

Transaction Controls

Configuration Controls


Oracle Fusion GRC

Oracle Fusion Applications 11g R1 Family Overviews

Global Human Resources

Workforce Management Benefits

Compensation Management Talent Review

Performance & Goal Mgmt

Global Payroll

Network @ Work


Oracle Fusion Procurement

Purchasing Self-service Procurement Sourcing

Supplier Portal

Spend & Performance

Analysis


Procurement Contracts


What Fusion SCM applications are being released? Five next-generation applications built on a common SCM model



Distributed Order Orchestration

Inventory Management

Cost Management

Core SCM Model and Framework Data Model and Services Business Processes Analytics and Calculations

Supporting inventory for financial & procurement (in non SCM-centric

companies for now)

Highly differentiated new modules, complementary to a broad range of existing

and new (SCM-centric) customers

Integration Services Functional Setup & Admin Data Model Extensibility


Fusion

Distributed Order

Orchestration and


14

ATG / Third Party Siebel / Third Party CRM Mobile Apps

Third Party Apps Oracle Retail / Third Party eBusiness Suite

The Business Case for Fusion DOO: Current situation: Channel-specific disconnected processes

eCommerce Sites Call Center Direct Sales Mobile

Drop-ship Vendors Warehouses Stores Plants

Customers increasingly sell products across multiple channels

They also satisfy demand through a growing set of supply sources

Customers need to enable cross-channel commerce Buy on the web, pick up in store Change delivery date or other terms for orders that include items sourced from both local warehouses and

vendors Existing fulfillment applications do not enable this:

Custom, point-to-point connections No centralized status or management Manual order change processes Slow and expensive to adjust to new channels or policies


Fusion Distributed Order Orchestration

Mapping services to/from common format Rules-based selection of Fulfillment plan

Status and updates sent back

Decomposition based on selected fulfillment plan Mapping to/from fulfillment system format

Status and Jeopardy conditions detected and resolved

Fusion GOP

eCommerce Sites Call Center Direct Sales Mobile

ATG / Third Party Siebel / Third Party CRM Mobile Apps

Drop-ship Vendors Warehouses Stores Plants

Third Party Apps Oracle Retail / Third Party eBusiness Suite

Customers can support products across multiple channels

They can satisfy demand through a growing set of supply sources

Common order

promising services

Standards and rules-based application to

orchestrate all orders, across all capture & fulfillment systems

The Solution: Fusion DOO with Fusion GOP Unified order fulfillment across all channels


Marginal Stable Advanced Best Practice

ERP-centric LOB-Centric Channel-Centric Customer-Centric

1 2 3 4

Value Chain Transformation From Fragmented Processes to Integrated Order Orchestration

Limited Capability

Point-to-Point Connections

Tactical Expansion

Multi-Channel Orchestration

Perf

orm

ance

Single Channel

Individual Channel Support

Point cross-channel Integration

Multi-Channel Order Orchestration


Disclaimer

THE FOLLOWING IS NOT REAL

ANY RESEMBLANCE TO REAL COMPANIES OR REAL SITUATIONS ARE PURELY COINCIDENTAL


Demo Flow Custom Sport Digital Frames

Siebel Order

Capture

Fusion DOO

Fusion Logistics

Fusion Cost Mgmt

Fusion Product

Data Mgmt

Select Products & Customize Digital Frame

Send to Fulfillment & Track Status

Orchestrate Orders

Engrave and Load

View Exceptions and Fix with Workbench

Action

View Exceptions and Fix with

Available Options

Order Orchestration Work Area

Submit Order

Create Pick Wave Ship Confirm

Complete Fulfillment Process

Decompose Order

Data Collection /

Cost Accounting

Gross Margin Analysis

Access Group Space Linked With

Item

Create New Items

Check Data Quality Create SKUs


Why is Fusion DOO Better and Different? Makes Your Existing Investments Better Create a unified customer and user experience without the need to

rip-and-replace multiple complex systems

Accelerates Your Ability to Change Rules-based and highly configurable, you can quickly add and

integrate new products & processes, new fulfillment methods & channels, new acquisitions

Its Real Application (not a tool-kit) Other approaches require custom development with associated high

risks, and long-term TCO issues

Its Standards Based Critical to the class of application


Why is Fusion GOP Better and Different?

It Includes All Sources of Supply & Demand Unified promising across a common pool of material will deliver

consistency and reduce inventory

It Supports Dynamic Simulation Real-time re-estimating and what-if scenarios to prevent surprises

It Optimizes Both Cost and/or Service Levels Use profit and configurable policies to control promising process

It Deals with Real-world Opportunities & Constraints Support flexible splitting and vary allocation and promising policies for

hot items

Note: in this release, Fusion GOP Requires Fusion DOO


Value Chain Transformation

P Improve time to revenue P Reduce order processing cost P Increase order promising accuracy P Reduce inventory costs P Lower cost of implementation

Accurate order promising with global View of supply Higher Service with Proactive exception Monitoring and Resolution Faster time to revenue through Adaptable, Flexible, Consistent business processes Strategic customer/demand Segmentation to drive fulfillment priorities Lower cost of ownership using Declarative web based application configuration


Fusion

Inventory, Shipping, Receiving

and Cost Management



Siebel Order

Capture

Fusion DOO

Fusion Logistics

Fusion Cost Mgmt

Fusion Product

Data Mgmt



Orchestrate Orders

Engrave and Load


Action


Available Options


Submit Order



Decompose Order

Data Collection /

Cost Accounting



Item

Create New Items



Why is Fusion Logistics Better and Different?

Completely Redesigned UI and User Experience Incorporates all of the learning's from EBS and JDE and implements this

using the best in Fusion technology

Centralized Monitoring of Inventory Operations Use of Workbenches, Analytics, and Dashboards puts the user in control

Accurate, Granular Inventory Control To support accurate replenishment, order promising and reduced inventory

levels

Efficient Shipping & Receiving To ensure shipments and receipts are processed quickly and accurately in

order to satisfy customer demand


Why is Fusion Cost Management Better and Different?

Completely Redesigned Cost Management Architecture Incorporates all of the learning's from EBS and JDE and implements this


Views of Product Cost Tailored to Specific Business Decisions Align cost definitions to business requirements, maintain multiple, flexible

cost books with flexible valuation structures

Improved Regulatory Compliance Fully auditable transactions, providing transparency of cost accounting

entries

Extensive User-Managed Business Rules for Lower TCO Compliance combined with flexibility to efficiently support different business

processes


Fusion



The Business Case for Fusion Product Master Data Management: Current situation: Multiple systems, inaccurate product information

Sales Catalogs Regulations Data Pools Partners

Customers have an increasingly complex application requirements

Required by an increasingly complex set of business functions Acquisitions Portfolio Analytics Compliance

eCommerce CRM Mobile Apps Field Service

ERP PLM

SCM POS Sourcing MES

Customers need accurate and consistent product information: Create a basic foundation on which to build stable business operations

Reduce the cost and complexities associated with managing this across a complex environment

Fragmented Product Information does not enable this: Duplicate maintenance and high error rates

Complex integrations Slow introduction of new products

Compliance and Customer Satisfaction violations


Fusion Product Master Data Management

Extend information as needed Share the information across systems and processes

Centrally manage the Common Product Record

The Solution: Fusion Product Master Data Management Harmonize product data across the extended enterprise

Sales Catalogs Regulations Data Pools Partners

Customers have an increasingly complex application requirements

Required by an increasingly complex set of business functions Acquisitions Portfolio Analytics Compliance

eCommerce CRM Mobile Apps Field Service

ERP PLM

SCM POS Sourcing MES

Consolidate Product Information Cleanse the data, removing duplicates and errors

Provide central Governance structure

Oracle EDQ-P

Real-time and batch

Data Quality enforcement

As part of an overall MDM Strategy


Marginal Stable Advanced Best Practice Fragmented Silo-Based

Multiple Item Masters

Centralized Definition

Enterprise Product Record

1 2 3 4

Product Value Chain Transformation From Fragmented Data Management to Integrated Product Value Chain

Limited Collaboration

Master Data Management

Business Process Silos

Integrated Demand, Supply & Product

Perf

orm

ance

Spreadsheets & Manual Processes

ERP/CRM - Centric

Product Information Management

Product Value Chain



Siebel Order

Capture

Fusion DOO

Fusion Logistics

Fusion Cost Mgmt

Fusion Product

Data Mgmt



Orchestrate Orders

Engrave and Load


Action


Available Options


Submit Order



Decompose Order

Data Collection /

Cost Accounting



Item

Create New Items



Why is Fusion Product Master Data Management Better and Different?

Completely Redesigned UI and User Experience Incorporates all of the learning's from EBS PIM and implements this


Integrated Data Quality to Improve Data Accuracy Ability to enforce data quality standards and enforcement as the data in

real-time and in batch

Centralized Governance Enforces Data Policies Configurable processes for approvals and version management,

combined with analytics to assess quality and compliance

Extensible Data Model Add additional data elements and validation for different requirements, all

without programming


Value Chain Transformation

ROI P Improved Change Approval and Cycle

Time

P Accelerated Time to Market P Elimination of Duplicate and Redundant

Product Information

P Reduction in Downstream Errors(Inventory Stock Outs, Order/Invoice Errors)

P Lower Part Returns on missing information

Accelerate product commercialization and launch

Enable Product Data Quality Standards

Enforce Governance policies for compliance

Orchestrate and Collaborate on single Product definition

Ensure Product Compliance

Consistently Harmonize product Data across and beyond the Enterprise

Share Clean and Accurate Data with Trading Partners

Greater Agility to respond to data Changes


Fusion

Customer Involvement


Oracle Fusion Supply Chain Management Sample Design Partners


Fusion Supply Chain Management

$8B Global Manufacturer & Retailer with 32K employees E-Business Suite (115.10, R12), Oracle Product Hub, Oracle Fusion Middleware

Business Challenges No global visibility Multiple product data sources Fragmentation of product data across systems

Business Solutions & Benefits Centralized and aggregated view of data Reduced operation costs Fulfillment profitability improvements Data standardization and cleansing

We currently have a mix of ERP pla8orms. The Fusion Product Hub solu@on will signicantly improve our product informa5on

quality." - Dave Kinnan, MDM Business Director

$13B Global Industrial Manufacturer with 82K employees Oracle Financials, iStore, Order Management,Customer/Product Master, Siebel OnDemand

Business Challenges Lack of global order and inventory visibility Data duplication across order fulfillment silos Order process performance difficult to analyze

Business Solutions & Benefits Create centralized view of global sources and shipping Decrease lead times and improve accuracy of promise dates Provide fast and accurate order status updates Streamline and standardize order processes

With mul@ple ERP systems, Fusion DOO is key to our corporate standardiza5on strategy because it allows us to normalize customer-facing solu@ons. Bill Blausey, CIO



$68B Global Aerospace and Defense with 157K employees Fusion Middleware, Legacy systems for inventory, finance, logistics, transportation, contracts

Business Challenges High operating costs Lack of automated process flows Fragmentation of product data across systems

Business Solutions & Benefits Centralized orchestration processes Intelligent and automated routing of orders Decrease order entry and processing errors Quick visibility for interchangeable parts

We selected Fusion Product Hub, Fusion DOO and Fusion GOP because they are designed to co-exist with current Boeing

applica@ons. Tim Murnin, Director SCP systems

$2B Global Healthcare with 12K employees Oracle EBS 11.5.10, JDE E1(8.12) and World (7.3)

Business Challenges No enterprise data management strategy Bespoke global product database Redundant and duplicate product data

Business Solutions & Benefits Improved efficiencies Better product data administration, definition, and cleansing Movement toward a single ERP platform Reduction in operating cost

"The Fusion Product Hub solu@on will provide global planning visibility across our en5re supply chain" - Shailesh Bhor, Enterprise Architect



As Boeing Global Services & Support drives to strategic growth, we recognize an opportunity to rapidly deliver business solu@ons and posi@on ourselves for future growth by upda@ng our essen@al business technology. In order to meet our return on investment

goals for these updates, it was impera@ve to reuse exis@ng applica@ons with new applica@ons to improve our end-to-end order management processes . We selected Fusion Product Hub, Fusion Distributed Order Orchestra@on and Fusion Global Order Promising

because these applica@ons are designed to co-exist and be integra@ng seamlessly alongside exis@ng Boeing applica@ons,

providing addi@onal value without requiring a complete replacement of the exis@ng solu@on components.

"The Fusion Product Hub solu@on can coexist with our exis@ng ERP systems and provides us with a single product record allowing us to

gain global planning visibility across our supply chain and geographically dispersed businesses"

"At Sherwin-Williams we currently have a mix of ERP pla8orms and we have iden@ed MDM as a key enabler as we drive towards

consolida@on of our ERP pla8orms. The Fusion Product Hub solu@on provides us with a exible way to orchestrate our new product deni@on at a Global level and enrich it with region specic

informa@on in addi@on to the embedded data quality func@ons that will signicantly improve our product informa@on quality."

Currently Eaton has mul@ple ERP systems with the prospect of gaining more through acquisi@ons. Eaton is using aggressive standardiza@on to drive down costs. Fusion Distributed Order

Orchestra@on was chosen because it allows Eaton to standardize customer-facing solu@ons while maintaining

integrity with concurrent ERP moderniza@on ini@a@ves across the globe.


Fusion Product Adoption


Coexistence Solutions Protects Your Investment

CRM

Supply Chain Management

Human Capital Management

Project Portfolio Management

Procurement

Financial Management

E-Bu

siness S

uite

Peop

leSo

A JD Edw

ards

Fusio

n App

licaF

ons

Siebel CRM

Hyperion Fusion GRC Fusion AccounFng Hub

Fusion Shared-Service Procurement

Fusion Talent Management

Fusion IncenFve CompensaFon

Primavera

Fusion CRM CRM On Demand

Fusion Distributed Order OrchestraFon Agile PLM

Value Chain ExecuFon

Value Chain Planning

Fusion Product Hub

Fusion Project PorPolio Management

ATG


Fusion SCM at OOW 2011 Mon - 12:30 pm 01:30 pm Do I Upgrade or Go Straight to Oracle Fusion ApplicaFons?

WesFn Stanford Mon - 02:00 pm 03:00 pm Oracle Fusion Distributed Order OrchestraFon: Customer Case Study

MW 2005 Tues - 01:15 pm 02:15 pm Oracle Fusion Supply Chain Management Customer AdopFon and Experiences

MW 3018 Tues - 03:30 pm 04:30 pm Oracle Fusion Supply Chain Management: Overview, Strategy, and Roadmap

MW 3002/3004 Tues - 05:00 pm 06:00 pm Oracle Fusion SCM: Oracle Fusion Distributed Order OrchestraFon Deep Dive

MW 3014 Wed - 10:15 am 11:15 am Oracle Fusion Supply Chain Management: Deep Dive into Oracle Fusion Product Hub

MW 3014 Wed - 11:45 am 12:45 pm Oracle Fusion Supply Chain Management: Coexistence with Other Oracle ApplicaFons

MW 2003 Wed - 01:15 pm 02:15 pm Meet the Experts: Supply Chain Management

MW L2 Wed - 01:15 pm 02:15 pm Metrics That Ma`er for Your Business: AnalyFcs for Oracle Fusion ApplicaFons

MW 3016 Thurs - 09:00 am 10:00 am Oracle Fusion Inventory Management and CosFng Deep Dive

MW 3014 Thurs - 10:30 am 11:30 am In the Heat of the Oracle Fusion Decision-Making Process: What's Your Next Move?

MW 2002/2004 Thurs - 12:00 pm 01:00 pm ApplicaFon IntegraFon for Oracle Fusion ApplicaFons

MW 3014 Thurs - 03:00 pm 04:00 pm Search as a Key to the User Experience: Oracle Fusion ApplicaFons Search

InterconFnental

Oracle Fusion Supply Chain Management

MW W-023

Oracle Fusion Supply Chain Management: Product Hub

MW W-024

Oracle Fusion Supply Chain Management: DOO

MW W-026

REGULAR DEDICATED Mon - 10:00a 5:30p 10:00a 11:00a Tues 9:45a 6:00p 2:15p 3:30p Wed 9:45a 4:00p 9:45a 10:15a, 2:15p 2:45p

Demo Locations Demo Hours

Sessions

http://www.oracle.com/openworld/oow11-focuson-fusionapps-486937.pdf


Key Take Aways

Real, Available, and Customers are Using it Now

Complementary to Your Existing Investments and Upgrade Plans

Further Extends Oracles Information Driven Value Chain Strategy

SCM Fusion is:

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