A Journey with Oracle EBS October 10 th 2014 Satyaki Lodh VP, Enterprise Applications Snacking is a way of life. Our passion is to make it better.
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A Journey with Oracle EBS
October 10th 2014
Satyaki Lodh
VP, Enterprise Applications
Snacking is a way of life. Our passion is to make it better.
2
Agenda
About Snyder’s-Lance
Application Stack
Optimizing the Supply Chain with Oracle ASCP
Optimizing Warehousing with Oracle WMS
Optimizing Trade with Trade Suite
Mobile Sales Solution
Optimizing Direct Store Delivery
Enterprise Reporting with MicroStrategy
EDI
R12 Upgrade
3
About Snyder’s-Lance
Produces and markets snack foods throughout the United States and
internationally
Formed from the merger of 2 great snack food companies – Snyder’s of Hanover
and Lance; headquarters in Charlotte, North Carolina
Snack pantry includes pretzels, sandwich crackers, potato chips, cookies, tortilla
chips, restaurant-style crackers, nuts, etc.
Goods are distributed widely through grocery, mass merchandisers, convenience
stores, club stores, food service outlets and other channels
Has 8 production facilities and a Regional Distribution Center (in 9 states)
Has 3000 Direct Store Delivery (DSD) routes servicing approximately 85,000
customer locations
Revenues of approximately $1.6B
5000 employees
Ticker Symbol: LNCE
4
Application Stack
Oracle E-Business Suite – Version 12.1.3
Process Manufacturing
Order to Cash (Order Management, Advanced Pricing, Receivables)
Procure to Pay (Procurement, Payables)
Advanced Supply Chain Planning (ASCP)
Warehouse Management (WMS)
Financials (General Ledger, Property Management, Project Accounting, Internet Expense)
BI / Reporting Platforms
SQL Server for Enterprise Data Warehouse
SQL Server Analysis Services for Analytics
MicroStrategy for ad-hoc and operational reporting, dashboards and mobile analytics
Others
Trade Suite - a custom solution on EBS platform - for Trade and Promotion Planning/Execution
Logility for Demand Planning
Apacheta as a Mobile Platform for Routes
Infor Enterprise Asset Management (for Plant Maintenance)
Ultipro SAAS (for HR/Payroll)
Kronos (for Time and Attendance)
5
Optimizing the Supply Chain With ASCP
Facts
7000 Finished Goods, 6000 Raw/Packaging Materials
Same product may be manufactured at different plants
Demand is generated directly from customers (Direct Ship) or through the 120 Forward
DSD Warehouses
Demand varies depending on time of the year
Types of Planning:
Demand Planning – determine Internal/External demand – currently, using Logility
Capacity Planning – meant to level production or shift from plant to plant
Vendor Production Planning – what to make, when and how many
Material Delivery Planning – what to buy, when and how many
Finished Goods Planning – buy, make or get them from within the company – what, when,
how many
Optimization Needs:
Reliably integrate demand and supply
Generate reliable plans for short- and medium-term planning horizons
6
Optimizing the Supply Chain with ASCP (Contd.)
Capacity / Production Planning
Examine potential loads in a 3-4 week horizon to provide a feasible production plan
Use the production plan as a guideline for production release, scheduling and execution
Source master data (Resources, Bill of Materials, Items) from Process Manufacturing
(OPM)
Determine the build-ahead strategy and adjust the load to remain within the capacity limits
Internal Supply Planning :
Review product demand and determine the best location to source the products – make
them locally or fulfill the demand from another plant or Regional Distribution Center
External Supply Planning:
Required primarily for packaging materials
Long Term Planning (horizon between 5-10 weeks) entails placing a work order instruction
to supplier based on supplier’s manufacturing lead time
Short Term Planning entails placing a PO against the supplier based on short-term needs
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Optimizing the Supply Chain with ASCP (Contd.)
What ASCP Does
Advanced Supply Chain Planning (ASCP) sources Master Data from the source ERP
system (in our case Oracle EBS 12.1.3)
Provides a Rules Engine that automatically triggers buy, make or transfer transactions
Users manage rules instead of looking at every individual item
Tool manages 80% of items and users manage the 20% exceptions
Centralizes demand/supply data so that everyone is executing to the same numbers
Helps standardize planning processes across the enterprise
Snyder’s-Lance Installation
1 Oracle ERP instance running EBS 12.1.3
1 Oracle VCP (Value Chain Planning) instance running EBS 12.1.3
Plans run twice a day – at night and at noon (for deltas)
8
Optimizing Warehousing with Oracle WMS
Warehouse Overview:
8 Manufacturing facilities
1 Regional Distribution center
120 Forward DSD Warehouses
Most plant operations are 24 X 6
Approximately 7000 Finished Goods Items, 6000 Raw/Packaging Items
Approximately 2 Million Cases shipped per week = equates to 27000 trucks
180 Forklifts with mounted devices, 80 Handheld Devices
Using Oracle WMS and Telnet front-end on mobile devices
Optimization Needs:
Accurate view of inventory levels
Cost Consideration - each time someone touches as case, it equates to 25 cents
Effective use of space
Effective management of expiry dates
Labor Reduction – minimize warehouse trips by forklift drivers
Scope of optimization - from the point product is received in the post-production
warehouse to the point the product is shipped
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Optimizing Warehousing with Oracle WMS(Contd.)
Once Product is Manufactured…
Product is palletized using an Automated Palletizing System (APS)
APS is its own system running on MySQL
Integration between Oracle EBS (Process Manufacturing/WMS) and APS using
Heterogeneous Database Connectivity
Once palletized, system automatically records Production in Process Manufacturing, prints
out Pallet Tag and directs a forklift driver where to store the product
Where APS is not used, system directs Put-Aways once manufacturing is recorded
Optimizing Warehouses:
Each warehouse is different – different sizes, layouts, physical constraints, etc.
Core Warehousing functions include - Put-Aways, Picks (for Shipping) and Cycle
Counting (Inventory Counts)
Oracle WMS provides a Rules Engine
Picking, Put-Away and Cycle Counting Rules are configured in the most efficient manner
for a particular warehouse
Rules are based on physical characteristics (shortest distance), product characteristics
(heaviest products in the center of the truck), expiry dates (earliest expiry date first), etc.
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Optimizing Warehousing with Oracle WMS (Contd.)
Future Opportunities
Voice Picking:
For Case Picking (when picking individual cases), the operator speaks into a Device (like a wrist
watch).
The device recognizes the information (item and quantity) and transmits the data wirelessly to a
server
The server informs Oracle EBS the picked item and quantity
Cloud Solution for Labor Management
Engaging TZA to implement ProTrack - a cloud-based solution to improve warehouse performance
Transfer data from Kronos (Time and Attendance) and Oracle WMS (transactional details of
warehouse movements – who moved what product, where and when) to the cloud solution
Cloud solution data to be analyzed for opportunities to improve warehouse efficiency - including labor
practices, processes, and associate performance and as a platform for Continuous Improvement
Directed WMS for Raw/Packaging
Currently, Raw/Packaging is managed differently– the WMS is not directed even though MSCA is
used
Implement Directed WMS from the Receipt of Raw/Packaging materials to the Issue of materials, to
the Manufacturing process
11
Optimizing Trade with Trade Suite (Custom)
Facts
Trade, for a CPG company, constitutes approximately 10% of Revenue
Trade includes Off-Invoice Promotions (e.g. 10% Off, Buy 1-Get 1 Free), Advertisement,
Slotting, etc.
Trade is an investment and we need to ensure that we are getting the maximum
returns(lift) from our Trade Dollars
70+ Account Managers plan 30000+ events yearly
Trade Suite
Home-grown system on top of Oracle EBS 12.1.3 infrastructure
Performs the following functions:
Trade Budgeting – where Sales Account Managers perform the top down budgeting process
Trade Event Planning – where Account Managers plan Trade events
Deduction Management – where Account Managers and Finance Teams review/approve deductions
Reporting
Currently, integrated with JD Edwards for Master Data and Sales Transactions
Will be integrated to Oracle EBS ERP as we move from JDE to Oracle EBS
Integrated with a cloud solution (Periscope) for high-end Trade Analytics
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Mobile Sales Solution
Direct Store Delivery Facts
3000+ routes deliver/merchandise products to 85000+ Ship-To locations across US
Routes are owned by Independent Business Operators
Snyder’s-Lance also acts as a distributor for other companies – e.g. Wise Foods
Forms the core of Snyder’s-Lance business – approximately $1.2B
Mobile Solution – “NextGen”
New Home grown application
Based on Mobile .NET platform from Apacheta
Performs Sales, Ordering, Payments (not wireless) and Inventory functions
Provides Wi-Fi and Cellular connectivity for synchs
Currently integrated with JD Edwards
In future, will integrate with Oracle EBS as we migrate from JDE to Oracle EBS
Currently, in rollout mode and will be completed by March, 2015
Very intuitive user interface – first batch of rollouts indicated a time savings of 30-45
minutes per day
Hardware is Intermec CN51 and Motorola MC9596 ruggedized handheld devices
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Optimizing Direct Store Delivery
Facts
DSD is a business model with unique requirements, and due to high volume and variations
of customers, needs a high level of efficiency to be successful
Handheld Application used by 3000+ routes and distributors to be integrated with Oracle
EBS
Functions to migrate from JDE to Oracle
Processes supporting 120 forward DSD warehouses
Back-office functions such as Receivables and Payables
Solutions
Goal is to minimize keystrokes
Custom screens/processes such as Shipping Workbench, Warehouse Ordering,
Warehouse Replenishment are being developed on top of Oracle EBS
Application will use published APIs “under the hood”
For back-office (AR), we will use Universal Work Queue and Advanced Collections to
manage “Day In The Life”
Integration between Oracle EBS and “NextGen” handhelds
Planned Integration with iPad Mobile Solutions
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Enterprise Reporting with MicroStrategy
Ad-hoc Reporting
Views built in-house based on EBS tables for various business areas – e.g. Receivables,
Payables, Manufacturing, Shipping, etc.
The views are exposed to MicroStrategy
Super users can generate their own reports and publish the reports for their respective
domains
Sales Flash Reporting
Data from EBS and JD Edwards is consolidated in the Enterprise Data Warehouse
Sales Flash reports are generated and distributed via email to users
Mobile Sales Reporting
A mobile application on iPad for District Managers
Currently, in pilot mode for 30 users
Rollout to begin shortly to 500+ District Managers
Eventually, will also connect to Oracle EBS to provide near real-time information
15
EDI
Facts
Software: IBM Sterling B2B Integrator
# of Partners: 210
Transaction Types: 18 (e.g. AP Invoicing, Lockbox, Purchase Order, ASNs, etc.)
# Of Transactions processed per month
Inbound: 64,000+
Outbound: 1040000+
Outbound transactions include integration with Transportation Insight for Transportation
Management
Communication Methods
AS/2
SFTP
VAN
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R12 Upgrade
Upgraded from 11.5.10.2 to R12 (12.1.3) in 2012
Upgrade was completed in 16 hours after initial estimates of 160 hours
Changed Hardware to Cisco UCS blade servers prior to upgrade
Changed Storage to EMC VNX solution prior to upgrade
Migrated Application Servers to a virtual environment after upgrade
Optimizing the upgrade included
Archival and purge
Tuning patches
Merging patches
Utilizing “Super Server” hardware during the upgrade, then reverting to standard
production hardware once complete
Pre-staging of patches wherever applicable
DBA Team presented at OAUG, 2013 in Denver – titled “12 in 16”
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