Oracle Advanced Planning - Twin Cities …tcmoaug.communities.oaug.org/.../2005-12-06/Collaborative_Planning.pdfCollaborative Planning Oracle Advanced Planning David W. Dosland Sr.
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Collaborative Planning
Oracle Advanced Planning
David W. Dosland Sr. Manager, Manufacturing and Planning Demonstrations
Traditional Collaboration Process Multi-step, high latency, limited collaboration
Customers Suppliers
Tier 2
Tier 1
Distribution Plans
Production Plans
Manufacturing Plans
t = weeks
Supply Planning Process
?
Marketing Forecast
Sales Forecast
Manufacturing Forecast
Demand Planning Process
3 Copyright © Oracle Corporation, 2003. All rights reserved.
Traditional Collaboration Process
Ÿ Low forecast accuracy – Limited collaboration with customers
Ÿ High inventory – Too much ‘just in case’ inventory
Ÿ Low visibility to supplier’s constraints and schedules – Limited collaboration with suppliers
Ÿ High indirect costs – Extensive expediting and inefficient communication
Direct impact on your bottom and top line
Oracle Collaborative Planning E-Business planning solution: zero latency, real-time collaboration
Internet
Customers Suppliers
Tier 2
Tier 1
Marketing Forecast
Sales Forecast
Manufacturing Forecast
Single Holistic Plan
t = hours
Demand Planning Process Supply Planning Process
Consensus Forecast
Automated exceptions
Portal Portal
Collaborative demand plan
Collaborative supply plan Automated
exceptions Automated exceptions
Collaborative Planning Process
Oracle Collaborative Planning
Ÿ Improve forecast accuracy – Collaborative demand planning with customers
Ÿ Increase visibility and reduce shortages – Collaborative supply planning with suppliers – Collaborate across multiple tiers
Ÿ Reduce inventory carrying cost – Vendor managed inventory – Consigned inventory
Ÿ Analyze demand and supply fluctuations – Waterfall analysis
Ÿ React quickly to supply chain events – Supply chain exception management – Global fulfillment visibility
Key capabilities
7 Copyright © Oracle Corporation, 2003. All rights reserved.
Collaborate with Customers
Ÿ Improve forecast accuracy – Get visibility to customer demand
changes
Ÿ Improve delivery performance – Provide accurate supply commits to
customers – Identify supply/demand mismatches
Ÿ Reduce non-value added costs and exception overload
– User-configurable exceptions – Automated exception handling via
workflow
Improve customer service and reduce inventory
Customer You
Consensus forecast
Run plan
Order forecast
Run plan
Supply commit
(capacity)
Optional
Sales forecast
Forecast
8 Copyright © Oracle Corporation, 2003. All rights reserved.
Collaborate with Suppliers
Ÿ Reduce shortages and improve supplier delivery performance
– Provide order forecasts to your suppliers
– Identify supply/demand mismatches
Ÿ Respond better to supplier exceptions
– Get visibility to your supplier’s constraints
Ÿ Reduce non-value added costs and exception overload
– User-configurable exceptions – Automated exception handling via
workflow
Improve plan accuracy and reduce planning cycle time
You
Consensus forecast
Run plan
Supplier
Run plan Order
forecast
Supply commit
(capacity)
Sales forecast Forecast
Optional
9 Copyright © Oracle Corporation, 2003. All rights reserved.
Collaborate with Suppliers
Ÿ Execution - Oracle iSupplier Portal – Involve suppliers in your procurement process – Suppliers view or maintain agreements, orders,
ASNs, receipts, returns, quality, delivery and shipment schedules, invoices, and payments
Ÿ Planning - Oracle Collaborative Planning – Involve suppliers in your planning process – VMI, including exceptions – Waterfall analysis - compare customer forecasts with
supply commits – Global inventory and fulfillment visibility – User-configurable exceptions
Ÿ Seamless integration with ERP – Generate replenishment orders in Oracle Purchasing – Share products, suppliers, order modifiers, approved
supplier lists (ASLs), and sourcing rules
Supplier collaboration through a single portal
iSupplier Portal
• Orders
Supplier Portal
Collaborative Planning • Forecasts
• Exceptions
• VMI • Waterfall analysis
• Pegging • Capacity
• ASNs • Receipts
• Invoices • Payments • VMI
10 Copyright © Oracle Corporation, 2003. All rights reserved.
Contract Manufacturer
You
Multi-tier Collaborative Planning
Supplier
Lack of visibility and synchronization across extended supply chain
Orders for key
components Run plan
Forecast
Customer Demand for End products
Run plan
Run plan
Forecast
“Best guess”” forecast
Demand for assemblies
Run plan
11 Copyright © Oracle Corporation, 2003. All rights reserved.
Multi-tier Collaborative Planning
Ÿ Plan your extended supply chain – Share forecasts and supply commits with
customers and suppliers – Get visibility to supplier capacity – Reallocate key components – Make alternate sourcing decisions
Ÿ Reduce inventory cost and improve fulfillment
– Suppliers manage your inventory – Manage your customers’ inventory
Ÿ React quickly to supply chain exceptions
– Waterfall analysis – User-configurable exceptions – Automated exception handling via workflow
Full visibility and synchronization across extended supply chain
Contract Manufacturer
You Supplier Customer
Run plan
Optional
Forecast for key components
Supply commit for assemblies
Supply commit for key components
Demand for assemblies
Run plan
Demand end products
Supply forecast
Consensus forecast
12 Copyright © Oracle Corporation, 2003. All rights reserved.
VMI and Consigned Inventory With suppliers and customers
You Supplier Customer
Receive items
Pay on receipt or use
Check inventory status
Ship items
VMI Agreement (with supplier)
VMI Agreement VMI Agreement -
Receive items
Pay on receipt or use
Ship items
VMI Agreement (with customer)
Send consumption advice
13 Copyright © Oracle Corporation, 2003. All rights reserved.
Supply Chain Exception Management
What is the problem?
Planning run
Next Planning run
! ! ! !
Highlight disruptions when they occur
What is the impact?
How do I resolve it?
How well did I do?
Custom and seeded exceptions Configurable thresholds & priorities
Demand-supply allocation, Simulation, Workflow
Business intelligence
Customer order impact analysis via supply chain pegging
Supplier short of
commitment
Your forecast is short of
commitment
Supplier commits
more capacity
Customer lowered forecast
14 Copyright © Oracle Corporation, 2003. All rights reserved.
Integrated! Integrated planning, execution, and collaboration
Consensus Forecast
POs, Reschedules
Collaborative Planning
POs Reschedules
Forecast
Order Forecast
Order Forecast
Order Forecast
Supply Commit
(capacity)
Supply Commit
(capacity)
Demand Planning
Inventory Optimization
Advanced Supply Chain
Planning
Global Order Promising
Purchasing
Suppliers
Customers
Promised Orders (CTP)
Time-phased Safety Stocks
Scalable and Open Architecture
Ÿ Enterprise and trading partner portals
Ÿ Runs against all versions of Oracle EBS
– Supports 11.0 and 11i – Can be deployed in
distributed mode
Ÿ Standards based – Deploy against any other
ERP or legacy system – XML, EDI, and flat file formats
Ÿ Reliable – All plan information resides in
the database – Hot backup and recovery
Advanced Planning
A P I S
Trading partners Internal Users
Internet
Oracle 11.0, 11i
Legacy Systems
XML EDI Flat file
Order Promising Engine
Portals
Analytical Workspaces
KPIs Workflows Plans
17 Copyright © Oracle Corporation, 2003. All rights reserved.
Configurable Collaboration Rules
Ÿ Secure access – Configurable security rules
Ÿ Avoid exception overloads – User-defined exceptions – Flexible thresholds – Automate exception
handling via workflow
Traditional Collaboration Process Multi-step, high latency, limited collaboration
Customers Suppliers
Tier 2
Tier 1
Distribution Plans
Production Plans
Manufacturing Plans
t = weeks
Supply Planning Process
?
Marketing Forecast
Sales Forecast
Manufacturing Forecast
Demand Planning Process
Oracle Collaborative Planning E-Business planning solution: zero latency, real-time collaboration
Internet
Customers Suppliers
Tier 2
Tier 1
Marketing Forecast
Sales Forecast
Manufacturing Forecast
Single Holistic Plan
t = hours
Demand Planning Process Supply Planning Process
Consensus Forecast
Automated exceptions
Portal Portal
Collaborative demand plan
Collaborative supply plan Automated
exceptions Automated exceptions
Collaborative Planning Process
Oracle Collaborative Planning
Ÿ Improve forecast accuracy – Collaborative demand planning with customers
Ÿ Increase visibility and reduce shortages – Collaborative supply planning with suppliers – Collaborate across multiple tiers
Ÿ Reduce inventory carrying cost – Vendor managed inventory – Consigned inventory
Ÿ Analyze demand and supply fluctuations – Waterfall analysis
Ÿ React quickly to supply chain events – Supply chain exception management – Global fulfillment visibility
Key capabilities
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