“this presentation is for informational purposes only and may not be incorporated into a contract...
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Nadeem SyedVice PresidentSupply Chain Planning Development
Oracle Global Order Promising
Provide accurate and reliable commitments to your customers
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
TRADITIONAL ORDER PROMISING ADAPT YOUR BUSINESS MODEL
The Problem With Existing PracticesAdapt new strategies
Average lead times are inaccurateGet visibility to all demand
and promise based on supply chainavailability and capabilities
Promises are either too aggressive or too conservative
Consider all of the constraints in your extended supply chain
Difficulty supporting mass customization Promise complex configurations
Difficulty supporting key customers requiring differentiated service
Provide reliable and accurate allocatedcommitments to customers
Difficulty supporting multiple methods of order capture globally, 24x7 Provide reliable zero downtime reliability
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Traditional ApproachInaccurate order promising, poor visibility to supply chain constraints
Long planning cycles
Supply PlanningBatch Order Promising
Distribution plans
Sales
Mfg.
Paper orders
Tier 2
Tier 1
CUSTOMERS SUPPLIERS
Production plans
Manufacturing plans
Paper Paper“Best guess” promise date
Disconnectedsupply planningprocess
Poor customer service– Time consuming batch
order promising process– Low level of automation
Inaccurate promise dates– No visibility to global supply
chain constraints– No integration between
execution and planning
Reduced profitability– No ability to allocate supply
to your most profitable customers or channels
Customer support
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
A Better Approach: Global Order PromisingIntegrated promising, planning, and execution with zero downtime
Improved customer service– Real-time reliable order
promising process– High degree of automation
Accurate promise dates– Global visibility to
manufacturing, supplier, and transportation capacity
Increased profitability– Ability to allocate supply to
your most profitable customers or channels
– Measure accuracy to drive improvements
Constrained global supply plan
Supply Planning
Zero downtimeATP engine
Automated Exceptions
Real-time Order Promising
Singleholistic plan
Business Intelligence
Sales
Customer support
Mfg.
Manufacturing
PortalPortal
Tier 2
Tier 1
CUSTOMERS SUPPLIERS
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
How
Delivers
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Oracle Advanced Planning Complete e-business planning solution
Collaborative Planning CP
Sales and Operations Planning
From short-term to long-term
From
det
ail t
o su
mm
ary
CPSC Exception Management
PSProduction Scheduling
ASCPDistribution Planning
GOPGlobal Order Promising
ASCPSupply Chain & Manufacturing Planning
IOInventory Optimization
DPDemand Planning
SCISupply Chain Intelligence
DevelopMarketSellOrderPlan
Procure
Make
FulfillService
Maintain FinanceHR
ProjectsAll Product,Customer,& SupplierInformation
SNONetwork Design
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Oracle Global Order PromisingCustomer examples
Global leader in network infrastructure Every order for every router sold worldwide goes through GOP Complex order promising problem
– Product and channel allocation rules, Extensive use of ship sets in an assembly to order environment, High volumes
Semiconductor manufacturer Material and resource constraints (CTP) across virtual supply chain
– Sales people promise orders online in seconds– Reduced supply chain response time for critical products by 92%
World leader in hearing instrument components Global planning instance with2 Locations in the US, 1 Location in Europe, 5
Locations in Asia– Mixed mode manufacturing: make to stock, make to order, configure to order– Global order promising against 1 central plan
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise accurately and reliably
Manage key customer and channel commitments
Promise orders globally with zero downtime
Promise complex configurations
Respond to changing conditions
Enables you to…
Oracle Global Order Promising
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise More Accurately And Reliably
Promise orders based on:– Material availability– Manufacturing capacity– Supplier capacity– Transportation capacity
Global statement of availability– All facilities, material, resources, and
suppliers
Drive fulfillment decisions based on demand and supply plans
– Promise based on optimal supply decisions
Automatically recommend substitute products
With Supply Chain ATP, CTP, and CTD
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise More Accurately And Reliably
Users can quickly configure the rules that control valid distribution points for customers
– Define available distribution points, including priority
Minimize setup by assigning detailed rules on an exception basis
– Rules can be customer, customer site, or region specific
– Automate where to ship products from
Sourcing rules and assignment sets
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise More Accurately And Reliably
Configure availability check as extensive as needed for your business
– How many levels of the supply chain
– Which components– Critical bottleneck resources
only
Highly configurable
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Global Capable To Promise (CTP)
OEM
Customers (East)
Typical scenarios
Check for availability across multiple levels of bill of materials, multiple echelons of a distribution network, or both simultaneously
SCENARIO 1 - MANUFACTURER
Customers
SCENARIO 2 - DISTRIBUTOR
Customers(West)
Customers(East)
DC West
Central DC
DC East
Suppliers
Rank 2
Rank 1Rank 1
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise accurately and reliably
Manage key customer and channel commitments
Promise orders globally with zero downtime
Promise complex configurations
Quickly respond to changing conditions
Enables you to…
Oracle Global Order Promising
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Allocated Available to Promise
Allocate available supply and capacity
– By channel, customer, or product– Priority and stealing rules
Manage commitments to key customers
– Reserve availability for key customers
– Ensure spot demand does not jeopardize commitments
Manage allocations to customers, regions, or channels
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Allocated Available to Promise
Define allocation rules multiple ways
– By customer class– By demand class– Based on demand priorities in
the plan
Enforce demand priorities as decided in Sales and Operations Planning
– Priorities assigned in demand planning control supply planning
– Allocation can be based on supply plan
Defining allocation rules
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Allocated Available to Promise
S&OP Decision: “Allocate 40% of supply to High Tech and 60% of supply to Retail customers”
Example
WITHOUT Allocation WITH Allocation
Demand Sales order 20 High Tech
Supply Work order 25
Supply Purchase order
35
ATP for High Tech and Retail
40
New orders are promised as they come in;No guarantee that Retail customers will get 60% of the allocation
Demand Sales order 20 High Tech
Supply Work order 10 (40% * 25)
Supply Purchase order
14 (40% * 35)
ATP for High Tech 4
Supply Work order 15 (60% * 25)
Supply Purchase order
21 (60% * 35)
ATP for Retail 36
New orders are promised as they come in;Retail customers will get 60% of the allocation
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Allocated Available to Promise
World’s leading producer of aluminum Multiple business units use allocated available to promise
to manage their business Typical example: manage the allocation to classes of
demand– Contract demand: demand with a contractual commitment of availability to
customers – highest priority– Forecast demand: demand that customers have provided forecast visibility
but no commitment has been made – second priority– Spot demand: unforecasted demand or demand above customer forecast –
lowest priority
Customer example - Alcoa
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise accurately and reliably
Manage key customer and channel commitments
Promise orders globally with zero downtime
Promise complex configurations
Quickly respond to changing conditions
Enables you to…
Oracle Global Order Promising
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Run new plan
Zero Downtime Global Order Promising
Zero downtime– No order promising downtime
when underlying supply chain plan is refreshed
– No sales order is lost, automatically re-promise sales orders against new plan
Open, reliable, and scalable– Engine runs inside the database– No memory models to load!– Multi-threaded– Integrated with OM, iStore, and
Call Center– Easily integrate with legacy
systems
Guaranteed uptime and consistency via patent-pending architecture
Current plan
Promise Orders Promise Orders
Copy Run Copy
? ? ? ? ? ? ?
New planDowntime orInaccurate orders
Typical Approach
Oracle Approach
Current plan
Promise Orders Promise Orders
Run new plan
Copy RunSync &
Re-promise
New plan
Swap
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Zero Downtime Global Order Promising
Leader in test devices, chemical analysis tools, and semiconductors
– Performing multi-level capable-to-promise– Greatly reduced expedite orders with accurate order promising dates– Moved from batch to online order promising– Increased customer satisfaction of key strategic customers by using
allocated ATP– 24x7 worldwide order operation with ‘zero downtime’ CTP– Meet customer requirement by utilizing substitute components
Customer example – Agilent Technologies
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Zero Downtime Global Order Promising
Access from any place, anywhere, anytime– Order management– Configurator– Call Center– Quoting– i-Store– Legacy systems
Scalable and reliable – Database-centric architecture– Multi-threaded– 24x7 support– No ATP data is lost
Provide consistent availability for any method of order capture
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise accurately and reliably
Manage key customer and channel commitments
Promise orders globally with zero downtime
Promise complex configurations
Quickly respond to changing conditions
Enables you to…
Oracle Global Order Promising
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise Complex Configurations
Sub-Model
Sub-Model
ATOModel
ATOModel
Distributors
OEM
Sub-Model
ATOModel
Tight integration with Oracle Configurator and Order Management enables accurate order promising of complex configurations
Sourcing and availability can be dependent on the options selected during configuration
Multiple levels of models, including outsourced configurations are supported
Support mass customization
Customers
Suppliers
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise Complex Configurations
Promise accurate availability for complex configurations
– Multiple levels across multiple organizations including outsourcing
– Option specific sources– Option dependent resources– Supplier capacities for models
Reuse existing configurations– Global ATP for ATO models and
ATO items– Match during ATP and
pre-configuration forecast consumption
Mass Customization
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promising Complex Configurations
Global manufacturer of ATMs, retail equipment and other complex products
– NCR promises all of their orders for complex configure to order products with Oracle Global Order Promising
– The configurations can span multiple levels of configured products produced by multiple manufacturing facilities
– Some configured products are outsourced to contract manufacturers– Planned orders created during the capable to promise check are released that
same day
Customer example – NCR Corporation
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise accurately and reliably
Manage key customer and channel commitments
Promise orders globally with zero downtime
Promise complex configurations
Quickly respond to changing conditions
Enables you to…
Oracle Global Order Promising
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Backlog Management
Provides ability to easily manage existing Sales Orders (SO)
– Filter and reprioritize selected SOs – Process the SOs in a batch mode– Take actions (reschedule / cancel) based on
system highlighted exceptions
Embedded simulation capability– Manually adjust the processing sequence– Schedule in a simulated mode– Accept changes based on the results of
simulation
Extensive graphical capability– Workbench for viewing results and taking
necessary actions– Tree structure and tabs for easy drill downs – Pegging information is readily available
Rapidly respond to changing conditions
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Backlog Management
Initial order promising is FIFO for the individual order against total or allocated availability
Promise or re-promise a group of orders in a priority sequence
– Priority rules allow you to sequence orders by date, margin, or other rules
– Sequence can be overridden to prioritize specific important customer orders
Filters enable you to select the subset of your backlog to reschedule
Filter backlog orders
Rules-based sequencing
ATP Check
Reviewexceptions
Updateorders
Manage Backlog
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Supply Chain and Manufacturing Planning
Collaborative Planning
Demand Planning DP
Inventory Optimization IO
Global Order Promising GOP
CP
ASCP
Sales and Operations Planning
Forecast
Customerforecast
Orderforecast
Constrained plans
Supplier capacity
Time-phased safety stocks
Forecast and demand variability
Supplycommits
Orderforecast
Network Design SNOForecast scenarios
Production Scheduling
Planned orders
Supply schedule
Sourcing rules
Sourcing rules
TodayComing
Leverage integration at incremental investmentIntegrated, yet Modular
PS
CUSTOMERS
PLANNING PROCESS
SUPPLIERS
Safety stock targets
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Summary
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Oracle Global Order PromisingIntegrated promising, planning, and execution with zero downtime
Constrained global supply plan
Supply Planning
Zero downtimeATP engine
Automated Exceptions
Real-time Order Promising
Singleholistic plan
Business Intelligence
Sales
Customer support
Mfg.
Manufacturing
PortalPortal
Tier 2
Tier 1
CUSTOMERS SUPPLIERS
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Promise accurately and reliably
Manage key customer and channel commitments
Promise orders globally with zero downtime
Promise complex configurations
Respond to changing conditions
Enables you to…
Oracle Global Order Promising
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Integrated planning, promising, and allocation
Superior order promising architecture with zero downtime
Complex configuration support
Fully integrated with execution
Why Oracle !
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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