Industry specific cover image
FY10 GC SCM Plan
Draft VersionMay | 2009
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential 2
• FY09 Review
• Sales Consulting Challenges
• FY10 Moving Forward
Agenda
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• FY09 Review
• Sales Consulting Challenges
• FY10 Moving Forward
Agenda
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• FY09 Review
• Sales Consulting Challenges
• FY10 Moving Forward
Agenda
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A Coordinated Effort to Drive Improvement from 3 Dimensions
Technology
People and Policy Process
• Solutioning Capabilities (Industry, Domain, Product)
• x-Product Integration• Customer & Business
Driven• Leverage Oracle
Superior Technology• ISA Continuum• Talent Mgmt• Leverage HQ and
Overseas references• Training
• Tight Engagement w/ Sales
• Key Account Approach
• Visibility on SC Projects
• Knowledge = Power
• SC GC Portal• Internal Website
(OneSource)
Value from SC
Source: 9 pts
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Customer Centric Solutions
Industry Knowledge
BudgetPlanning
StrategicSourcing
Sales &Operation Plan
Supply Plan & Execution
Sell, Order, Channels Mgmt
Fulfillment & Delivery
Service Chain
Oracle Solution Excellence to Customers
Financials Projects Agile PLM
Accounting
Business Domain
CRM
Peoplesoft
Budgeting
A&DPharma E&C
SRM
PLM
S&OP
ALM
Service
High Tech Ind. Mfg. Telco
Business Knowledge
Domain Knowledge
Product Knowledge Demantra Siebel OTM
HCM
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Solutions Centric
Shipping
Custom
Back Office Applications
Front Office Applications
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Cathay Pacific is Looking for Opportunities to Better Manage Spending
• Current Procurement solution (i-Procurement, known in CPA as CX eBuy) was implemented more than 6 years ago, and no longer fulfills all of CPA’s requirements for procurement management
– Some areas within CPA have implemented their own procurement /inventory / spend management systems (e.g. Ultramain for engineering)
• The priority improvement in procurement management is spending analysis capability. A better spending analysis capability would enable Cathay to capture important trends/ signals of development of different categories of spending and react timely to resolve any potential issue.
• From a strategic viewpoint, such improvement will enable Cathay to become more agile and efficient amid a challenging and volatile industry environment.
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Cathay Pacific Insight Engagement Objectives
• Oracle’s Insight Team offers to perform an assessment of Cathay Pacific, specifically around the business processes of
– Procurement and Spending Management
• The purpose of the assessment is:– to assess the current procurement
solution – to identify the key capability gaps– to develop a recommendation to
close the capability gaps, including potential improvements in process, measurement and IT solutions
– to identify to-be process capability regarding spending management
For Discussion
Level 1: the CURRENT capability level
Level 2: the POTENTIAL capability level supported by the current system
Level 3: the DESIRED capability level
The 3 levels of capability need to identified in the process (illustrative)
Near term focus: get maximum value from existing investments
Longer term: enhance system capability to address more business needs
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We’ve Conducted Interviews With APD and IT
•Sam Kynaston - Manager IT Supplier Relationship
•Keith Kwan/Ricky Li - Purchasing Manager, Inflight & Support Services
•Michael Pratt - Manager Purchasing (PNL & Ground Services)
•David Hammond - Manager Purchasing - Aircraft Trading
•Paul Barwell - Manager Procurement
•Michael Scantlebury - GM Purchasing & Aircraft Trading
•Gavin Fernandez - Manager Purchasing (Fuel & Fuel Services)
•Mark Watts - Manager Purchasing (Marketing & Product)
•Clement Law/Edan Fung - IT Manager - Corporate Services/Business Analyst
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential 11
• Background
• Key Procurement Management Challenges
• Recommendations
• Next Steps
Agenda
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Summary - Key Challenges in Procurement Management
1. Lack of visibility of spending and analysis capability• Timely report of overall spending, current 1 or 2 month lead time to manually dig
out info not meaningful• Analysis of spending by categories/sub-categories, suppliers, user division• Analysis of compliance (price, contracts, etc)
2. Lack of integrated procurement solution across CX APD and procurement• Some categories has no system, other categories use its own isolated solution,
CXeBuy covered only about 2% of total spending• Getting financial data from FMIS and analyzing them for purchasing purpose is
time consuming• Not fully leverage investment in license and past implementation, increase the
complexity and cost of IT support team3. Improvement opportunity of integration of CX and KA systems and relevant processes
• Data integration to enable more accurate analysis• Consolidate the suppliers
4. Opportunity to close the loop for vendor performance management• Supplier performance report and ranking• …
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Challenges Capabilities Required Potential Values
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
Challenges, Capabilities, Value – Inflight and Support ServicePage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position
Source: Cathay Interviews
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
Challenges Capabilities Required Potential Values
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
Challenges, Capabilities, Value – PNL & Ground ServicesPage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position
Source: Cathay Interviews
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Challenges Capabilities Required Potential Values
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
Challenges, Capabilities, Value – Aircraft TradingPage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position
Source: Cathay Interviews
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
Challenges Capabilities Required Potential Values
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
Challenges, Capabilities, Value – Aircraft Components and MaintenancePage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position
Source: Cathay Interviews
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
Challenges Capabilities Required Potential Values
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
Challenges, Capabilities, Value – Fuel and Fuel Services Page Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position
Source: Cathay Interviews
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
Challenges Capabilities Required Potential Values
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap
Challenges, Capabilities, Value – Marketing and Products Page Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position
Source: Cathay Interviews
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
The Current System OverviewIn-flight and Support Services
PNL and Ground Services
Aircraft Trading Aircraft Parts and Maintenance
Fuels and Fuel Services
Marketing and Products
Sourcing
Contract Mgt
Requisition
Approval
Quotation/ RFQ
Order
Receiving
Invoice
Payment
Vendor Performance
Spending Analysis
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential 20
• Background
• Key Procurement Management Challenges
• Recommendations
• Next Steps
Agenda
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
A Coordinated Effort to Drive Improvement from 3 Dimensions
Technology
People and Policy Process
• 16 pt plain text sentence case
• 16 pt plain text sentence case
• 16 pt plain text sentence case
Value from
Supplier
Source: 9 pts
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
Potential Improvements on People and Policy
Source: 9 pts
• …
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Potential Improvements on Process
Source: 9 pts
• …
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Potential Improvements on Technology
Source: 9 pts
• …
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
The Current System OverviewIn-flight and Support Services
PNL and Ground Services
Aircraft Trading Aircraft Parts and Maintenance
Fuels and Fuel Services
Marketing and Products
Sourcing
Contract Mgt
Requisition
Approval
Quotation/ RFQ
Order
Receiving
Invoice
Payment
Vendor Performance
Spending Analysis
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
The Current System OverviewIn-flight and Support Services
PNL and Ground Services
Aircraft Trading Aircraft Parts and Maintenance
Fuels and Fuel Services
Marketing and Products
Sourcing
Contract Mgt
Requisition
Approval
Quotation/ RFQ
Order
Receiving
Invoice
Payment
Vendor Performance
Spending Analysis
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential
Size of Potential Value
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential 28
• Background
• Key Procurement Management Challenges
• Recommendations
• Next Steps
Agenda
Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential 29
Next Steps
XXX• …
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XXX2
XXX…
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