<Insert Picture Here> The Amazing Journey of an Order Line Paolo Prandini Master Principal Sales Consultant Oracle Italy
Nov 03, 2014
<Insert Picture Here>
The Amazing Journey of an Order Line
Paolo Prandini
Master Principal Sales Consultant
Oracle Italy
Russia & The Beatles
• Art Troitsky, Russia’s leading rock music writer and
self-proclaimed “radical young man” during the
Beatles era, describes just how important the band
was, behind the Iron Curtain. “In the big bad West,”
he says, “they’ve had whole huge institutions which
spent millions of dollars for undermining the Soviet
system. And I’m sure that the impact of all those
stupid Cold War institutions has been much, much
smaller than the impact of the Beatles.”
Moscow, 1967
• Dimitri loved the
Beatles secretly
• His friend Hans in the
DDR had access to
their Records / Tapestheir Records / Tapes
• Hans was expected
in Moscow later that
year... For the yearly
Cultural change
“Cultural Exchange”
“Orchestration”
Place Order
• Dimitri wrote to Hans
• Sgt Pepper Album “ordered”
Orchestration
• Hans lived in East Berlin
• He “managed” to get the Album Orchestration • He “managed” to get the Album
Deliver
• Hans went to Moscow
• Dimitri was so Happy
A changing world...
45 years later.... In Moscow...
• Olga, 40 years old
• Looking for “The
Colour of Death” by
Michael Cordy
• Orders through
• Oxana, 23 years old
• Looking for “The Colour
of Death” by Michael
Cordy
• Orders through Web • Orders through
traditional Shop, 3
days delivery
• Orders through Web
Reseller ‘Bookstore.ru’,
Overnight delivery
Two Order Lines, One Destiny
Place Order
•• OOxana Orders via Web
Orchestration
• Distributor Places Order
• Editor Receives the Order
Place Order
•• OOlga Orders in the Shop
Orchestration
• Shop Places Order
• Distributor Places Order
• Editor Receives the Order
Deliver
• Distributor Receives the Order
•• OOxana can pick this at a Pick Up point in MoscowDeliver
• Distributor Receives the Order
• Shop Receives the Order
•• OOlga can pick this at the Shop
Today’s Order Lines live on Multi-Channel
PRICINGPRICING PRICING PRICING PRICING PRICING
DATA
LOGIC
ORDER CAPTURE
PROMOTIONS
DATA
LOGIC
ORDER CAPTURE
PROMOTIONS
DATA
LOGIC
ORDER CAPTURE
PROMOTIONS
DATA
LOGIC
ORDER CAPTURE
PROMOTIONS
DATA
LOGIC
ORDER CAPTURE
PROMOTIONS
DATA
LOGIC
ORDER CAPTURE
PROMOTIONS
Siloed Channels Dramatically Increase
Integration Expense
• Integration of end-to-end processes spanning multiple systems
• Replication of business logic, business process and data across channelsacross channels
• Replication of business planning and management across channels
• Investment in multiple middleware systems and technology stacks
The Customer Relationship is not Leveraged
by Today’s Customer Journeys
WebWeb
ContactCenterContactCenter
In-StoreIn-Store
Comparison Site
Visit Retail Store
Chat
Local Store
Buy Online
Kiosk
Place Order
Research Shop Buy ServicePickup
Buy Online
Call to Research Accessory
CatalogCatalog
MobileDeviceMobileDevice
eMaileMail
SocialSocial
GoogleSearch
FacebookFan Club
Email Order Confirm w/Rec
Share Experience on
TwitterRead Reviews
TroubleshootOn Community
Product Info
Kiosk
BeginCatalogOrder
Browse Catalog
• Leverages customer information from all channels and systems
• Manages interactions across all channels
• Unifies commerce, merchandising, marketing, and service across all channels
Companies Want a Single-Provider
Solution That@
channels
• Provides personalized, choreographed consumer journeys across all channels
• Integrated to supply chain management, and order orchestration and fulfillment
Multi-Channel Retailing
Reta
il
REGIONAL DC
NATIONAL DC
VENDOR
Buy / Order Fulfill Cross Channel Demand & OrdersAcquire
STORES
STORES
Channel
Dir
ect
Changing Order Fulfillment Business NeedsNeed for a New Approach
• 49% of customers use multiple
ordering channels
• 61% companies sell through indirect
channels
• 32% of companies sell/plan to sell
partner products or services
• Average of 5.1 order capture and 4.3
• Order accuracy is below 85%
• Delays in new product introductions
• Falling customer satisfaction
• Order cycle time up from 1 to 3 days
Resulting ChallengesResulting Challenges
More Complexity, Faster Changes, Failing Systems More Complexity, Faster Changes, Failing Systems
• Average of 5.1 order capture and 4.3
fulfillment applications per company
• 60% have limited or no integration
• 50% have limited or no data
standardization
• 40% of companies outsource a large
part of fulfillment
• 43% of companies make an
acquisition each year
• Increasing customer service complexity
• Inventories have increased 15%
• Fulfillment now accounts for 50% of
supply chain
Requires a new architecture that natively supports multi-system, rules-based
fulfillment orchestration
Requires a new architecture that natively supports multi-system, rules-based
fulfillment orchestration
The Challenges in Delivering Multi-Channel
35%
51%
56%
58%
We don't have a solid definition of how consumers cross our channels
Coordinating pricing and promotions with other channels
Managing fulfillment across channels
Real-time inventory visibility/ management
Top 3 Challenges Bringing eCommerce Functionality Across Channels
16%
19%
23%
35%
Managing returns across channels
Online carries a wider assortment than other channels
Assigning sales and performance metrics across channels
Optimizing inventory deployment to speed delivery and minimize holding costs
Source: RSR 2011 Cross-Channel Survey Results
Resulting ROI Opportunities Current Environment
• 45% of customers place orders through multiple channels
• Avg. company has 5.2 order capture applications
• Avg. company has 4.3 order fulfillment applications
– 60% have partial or no integration
– 50% have no or limited data standardization
Indirect Partner OtherDirect
DirectDirect
Customers
Services
• Inventories have increased 15%
• Order cycle time has tripled from 1 to 3 days
• Order accuracy is below 85%, often near 70%
• Fulfillment costs now >50% of supply chain
• High inefficiencies in creating, tracking & expediting fulfillment
• Increased volatility
Current Order Management Environment
ERP CRMERP CRM
ERP
ERP CRM
Partner Products
• 61% of companies sell through indirect channels
• 32% of companies sell or plan to sell partner products or services
• 40% of companies outsource a large part of fulfillment process
• 43% of companies make an acquisition each year
WMS / MFG
WMS / MFG
WMS / MFGERP SCM
WMS
ERP SCM
WMS
ERP SCM
WMS
Drop-ship
vendors
• Increased volatility
• Declining return on sales
• Lower customer satisfaction due to unmet promises
ERP
ERP CRM
SCM ERP
ERP
SCM ERP
ERP
SCM ERP
Logistics
• Inventory Mgt
• Warehouse Mgt
• Shipping / Receiving
• Transportation Mgt
Manufacturing
• Discrete MFG
• Process MFG
APS
• Advanced Planning
Quote / Order Capture
• Create Transaction
• Select & Configure Products
• Create Shipment Expectations
• Check / Reserve Inventory
• Negotiate Terms
• Determine Tax
• Capture Payment
• Validate and Submit Order-Ch
an
nel
Orchestrate Orders
• Order Decomposition
• Order Orchestration
• Distributed Inventory
• Order Workbench
• Data Transformation
Re-Defining Order ManagementHeterogeneous Environment
ORCHESTRATECAPTURE FULFILL
Oracle Confidential – covered under NDA
Internal
Network*Internal
Network*Internal
Network*Partner
NetworkPartner
NetworkPartner
Network
SCM
• Advanced Planning
• Global Order Promise
Field Service
• Scheduling & Dispatch
• Dispatch
Finance
• AP / AR / GL
• Billing / Invoicing
• Validate and Submit Order
Manage Order
• Order Status Inquiry
• Modify Order
• Cancel Order
• Return Order
• Renew Order
Mu
lti-
Dropship
NetworkDropship
NetworkDropship
Network
Business Process Mgmt. & Business Activity MonitoringCRM SCM
Multi-Channel Challenge
TelesalesDirect MobileWebStore
Warehousing
(Legacy)
ERP
(Legacy)
Store Picking Logistics
(Partner)
Billing
(Oracle)
Multi-Channel Challenge - Orchestration
TelesalesDirect MobileWebStore
BusinessBusinessFinish Line
Store PickingWarehousing
(Legacy)
ERP
(Legacy)
Logistics
(Partner)
Billing
(Oracle)
BusinessBusiness
RulesRules
Finish Line
In Store
eCommerce
Our Multi-Channel Challenge - Orchestration
TelesalesDirect MobileWebStore
OrderOrder
Store PickingWarehousing
(Legacy)
ERP
(Legacy)
Logistics
(Partner)
Billing
(Oracle)
OrderOrder
ProcessesProcesses
Multi-Channel Challenge - Availability
TelesalesDirect MobileWebStore
AvailableAvailable
Store PickingWarehousing
(Legacy)
ERP
(Legacy)
Logistics
(Partner)
Billing
(Oracle)
AvailableAvailable
to Promiseto Promise
Multi-Channel Challenge - Exceptions
TelesalesDirect MobileWebStore
ExceptionException
Store PickingWarehousing
(Legacy)
ERP
(Legacy)
Logistics
(Partner)
Billing
(Oracle)
ExceptionException
MgmtMgmt
Single Global Instance, Built for Multi-Channel Deployments from the Ground Up
Distributed
Web Services
Distributed
Order Orchestration
Web Services
Order OrchestrationSolution Architecture & Product
Order OrchestrationWorkbench
Decomposition Orchestration Global Order Promising
FulfillmentFulfillmentOrder
Capture Order
Capture
Distributed Order OrchestrationDistributed Order Orchestration
Task Layer Services
External Interface Layer
FulfillmentSystems
FulfillmentSystems
Capture SystemsCapture Systems
Oracle FusionOracle FusionFinancial ManagementFinancial Management
General Ledger
Accounts Payable
Payments & Collections
Asset Management
Accounts Receivable
Cash & Expense Management
Common ModulesKPIs, Dashboards,& Extensibility FW
Oracle Fusion Oracle Fusion Human Capital ManagementHuman Capital Management
Oracle FusionOracle FusionSupply Chain ManagementSupply Chain Management
Product Master Data Management
Distributed Order Orchestration
Inventory Management
Global Order Promising
Cost Management
Shipping & Receiving
KPIs, Dashboards,& Extensibility FW
Oracle FusionOracle Fusion Oracle FusionOracle Fusion
Oracle Fusion Applications 11g R1 Family Overviews
Global Human Resources
Workforce Management
Benefits
Compensation Management
Talent ReviewPerformance& Goal Mgmt
GlobalPayroll
Network @ Work
KPIs, Dashboards,
& Extensibility FW
Oracle FusionOracle FusionOracle FusionOracle FusionProject Portfolio ManagementProject Portfolio Management
Project Costing
ProjectBilling
Project Control
Project Performance
Reporting
Project Integration Gateway
Project Contracts
KPIs, Dashboards,& Extensibility FW
Oracle FusionOracle FusionSales & MarketingSales & Marketing
Customer Master
Sales Marketing
IncentiveCompensation
Mobile & Outlook Integration
Territory & Quota Mgmt
KPIs, Dashboards,& Extensibility FW
Financial Compliance
Issue & Risk Manager
Access Controls
Transaction Controls
Configuration Controls
KPIs, Dashboards, & Extensibility FW
Oracle FusionOracle FusionGRCGRC
Oracle FusionOracle FusionProcurementProcurement
PurchasingSelf-service Procurement
Sourcing
Supplier Portal
Spend & Performance
Analysis
KPIs, Dashboards,& Extensibility FW
Procurement Contracts
Order Lines of the Future
• Imagine you’re steaming across the Pacific Ocean on a
container ship on a great circle course to the SanFrancisco sea buoy
• Minutes later, the Chief Engineer calls to inform youthat
the PLS Dosage Pump supply valve has failed and your the PLS Dosage Pump supply valve has failed and your
ship is now dead in the water
• Your shipment will be delayed, money and resources will
be lost and the office will be calling soon on
the satellite phone asking for answersJ
• But what if you could make that replacement part
yourself?http://www.forbes.com/sites/gcaptain/2012/03/06/will-3d-printing-change-the-world/3/
Order Lines of the Future
• Imagine you’re steaming across the Pacific Ocean on a
container ship on a great circle course to the SanFrancisco sea buoy
• Minutes later, the Chief Engineer calls to inform youthat
the PLS Dosage Pump supply valve has failed and your the PLS Dosage Pump supply valve has failed and your
ship is now dead in the water
• Your shipment will be delayed, money and resources will
be lost and the office will be calling soon on
the satellite phone asking for answersJ
• But what if you could make that replacement part
yourself?
With engineers and scientists currently doing amazing things around the world with this technology, an endless article could be
written about the possibilities, but I think one thing is clear: 3D printing, while still just hitting its stride, will impact the future in
unimaginable ways.
http://www.forbes.com/sites/gcaptain/2012/03/06/will-3d-printing-change-the-world/3/
The Future is Great