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Oracle Advanced Planning Command CenterBusiness insight for supply chain executives
Presenter’s NamePresenter’s Title
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© 2008 Oracle Copyright, Proprietary & Confidential
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
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© 2008 Oracle Copyright, Proprietary & Confidential
Changing Changing Supply Chain Supply Chain
Business ModelBusiness Model
Drivers For Success
Uncertainty
Virtualization
Chaos
Globalization
Volatility
Consolidation
Risk
Compliance
Continuous InnovationContinuous Innovation
Operational FlexibilityOperational Flexibility
Risk Management and Risk Management and ComplianceCompliance
New world: continuously adapting to changing supply chain business modelToday’s Supply Chain Executives’ Agenda
Increased Shareholder
Value and
Sustainable Growth
CEO’s Agenda
“What is required is a new type of decision support platform, one that integrates analytics and optimization. 15 years after the birth of Supply Chain Planning (SCP), we are now just starting to see analytics and optimization converge on a common platform”
AMR Research Report “How to measure your supply chain today “
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© 2008 Oracle Copyright, Proprietary & Confidential
No connection between plans, plans not tied to execution Misalignment between metrics and objectives Unreliable forecasts and production plans
Traditional approach doesn’t workExecutives are not able to get actionable information on corporate metrics
CUSTOMERS SUPPLIERS
Tier 2Tier 1
Paper
HIGH LATENCY, NO VISIBILITY
Reactive Management
Reactive Management
Financialplanning
Supplyplanning
Productplanning
Demandplanning
Manual measurementand reporting frommultiple data sources
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© 2008 Oracle Copyright, Proprietary & Confidential
27%
64%
9%
MDM
Systems
Expertise
#1 impediment to data collection
32%
50%
9%
9%
Supply
Demand
Financial
Other
What data is most challenging?
46%
27%
9%
18%
1-5 days
6-11 days
12-17 days
18+ days
Time required for exec S&OP prep
0 2 4 6 8 10 12 14 16 18 20 22 24
Other
NPI Status
Orders Review
Capacity Review
Forecast Review
Pre-work activities
The challenge of data integration
No processintegration
Lack ofsystems
No access to the right data
Takes a long time to gather
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© 2008 Oracle Copyright, Proprietary & Confidential
Oracle Advanced Planning Command Center
• Provide insight to key decision makers– Close the loop with embedded analytics
– Bridge the gap between analytics and planning through seamless integration with operational planning applications
– Leverage pre-built dashboards with rich content and KPIs
• Proactively respond to deviations in performance
– Identify root cause
– Define and evaluate alternative business scenarios
– Manage execution of scenarios; assign tasks to planners and other stakeholders
• Reduce decision making cycle time through process automation
– Use BPEL process flows to execute planning processes
– Configure and adapt
Enable holistic view of supply chain performance
Analytical Data
Planning Dashboards and Reports
Business scenario planning
Planning process automation
Execute scenarios
Scenario andActivity Management
Forecasting Supply Planning
Web Service enabled planning processes
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© 2008 Oracle Copyright, Proprietary & Confidential
Oracle Advanced Planning Command Center
• Translates planning data to corporate metrics• Forward looking perspective combined with past trends• Not a data warehouse for “rearview mirror” analysis
– Minimal data replication (archiving/publish of select summary data)
• Available with Oracle Advanced Planning 12.1 (May 2008) and runs on top of:
– Demantra Demand Management, Demantra Real-Time Sales and Operations Planning, Strategic Network Optimization, Inventory Optimization, Advanced Supply Chain Planning
– Context sensitive drill-downs
Today
Summary information Forward looking planning information
No need to build expensive “rear-view mirror only” disconnected data warehouse
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© 2008 Oracle Copyright, Proprietary & Confidential
Oracle Value Chain Planning solutionComplete ● Open ● Integrated ● Modular
Demand SignalManagement
DemandManagement
Collaboration andVendor Managed
Inventory
PlantScheduling and
Monitoring
OrderPromising
Service Parts
Planning
Trade PromotionManagement
Supply and DistributionPlanning
RiskManagement
Sales and OperationsPlanning
PERFORMANCEMANAGEMENT
• Single source of truth• SOA enabled
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© 2008 Oracle Copyright, Proprietary & Confidential
Enables leading edge and transformational business processesOracle Value Chain Planning solution
Predict market requirements and manage supply chain risk– Sense demand closer to the point of consumption with real-time visibility to demand events – Improve forecast accuracy through advanced analytics and improved consensus forecasting – Predict impact of risk to your network by simulating planned and unplanned supply chain events– Account for variability in your inventory positioning and postponement strategy
Shape demand for profitability– Drive demand via promotions planning– Manage new product introductions and marketing to shape demand and maximize revenue– Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process
Align operational plans with corporate goals– Plan your extended value chain with holistic supply and distribution planning– Synchronize plans and actions across the extended enterprise– Improve supply chain visibility and align trading partners via collaboration– Transform your service operations from cost to profit centers
MONITOR and MANAGE with Embedded Analytics
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© 2008 Oracle Copyright, Proprietary & Confidential
Advanced Planning Command Center
Business insight for supply chain executives
Provide insight to key decision makers
Proactively respond to deviations in performance
Reduce decision making time through automation
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© 2008 Oracle Copyright, Proprietary & Confidential
Provide insight to key decision makers
• What has changed since last month? How are we performing compared to last year?• Are we on plan financially? Is there any need to revise long term plans?• How are we performing to performance metrics? Are we achieving our six-sigma goals?• What new risks do we need to consider? Is our single sourcing strategy exposing us?• What decisions need to be made now and in the near future?• How are product families performing? Do I have the most profitable product mix?• Are we on track with product development? Do we need to delay new products?• Do we have any critical supply constraints or issues with key suppliers?• How is the resource utilization on our most critical resources?
Operational DecisionsTactical DecisionsStrategic Decisions
Delay orders Expedite shipmentsDeal with quality issues
Balance capacityRebalance inventoryAllocate productsShape demandReschedule promotions
Service levels vs inventory costInventory policyCarrier contractsProfitable product mixWeigh single vs dual sourcing
Continuous performance management Execution
Answers = Correlating information from different existing information sources
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© 2008 Oracle Copyright, Proprietary & Confidential
Provide insight to key decision makers
Advanced Planning Command Center • Compare alternative business scenarios
– Planners execute scenarios
– Automatically translate detailed planning information to corporate metrics
– Track assumptions and attach supporting documents
• Approve and drive into execution
– Choose your baseline plan
– Drive tactical and execution decisions
• Monitor– Continuously monitor
performance and get real-time visibility to deviations
Demantra DM ASCP / SNO IO
Business scenarios
Assignedactivities
Planners execute assigned activities
Suggested alternatives
for evaluation
Answers = Correlating information from different existing information sources
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© 2008 Oracle Copyright, Proprietary & Confidential
Compare alternative business scenariosCompare current to previous, baseline to alternate
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© 2008 Oracle Copyright, Proprietary & Confidential
Compare scenarios – 360 degree visibility
Pre-built self-service dashboards for comprehensive management analysis with corporate metrics
Analyze across key demand, supply, capacity, finance, and exception metrics
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© 2008 Oracle Copyright, Proprietary & Confidential
Start quickly with pre-seeded contentGet a good answer on day one!
• Pre-built dashboards– Sales and Operations Planning process– Supply chain plan analysis
• 200+ Reports– Analyze from many different business angles at aggregate and detail level
• 100+ Key performance indicators– Analyze what is critical to the supply chain– Optionally define alerts to get notified about problems
• Extend and configure– Quickly tailor to specific needs of individual users
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© 2008 Oracle Copyright, Proprietary & Confidential
Monitor S&OP performance in real time
Compare alternatescenarios
Analyze keyPlanning metrics
Analyze profitand loss
Analyze constrained forecast
Self service S&OP dashboard for interactive management review
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© 2008 Oracle Copyright, Proprietary & Confidential
Analyze specific product categories, organizations and resource groups
Check your shipment and production trends
Compare previous run to current run exceptions
Compare previous run to current run demand and supply metrics
Self service Supply Chain Plan Analysis dashboardMonitor operational plans
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© 2008 Oracle Copyright, Proprietary & Confidential
Pre-seeded rich content – KPIs100+ dimensions and performance metrics
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© 2008 Oracle Copyright, Proprietary & Confidential
Pre-seeded rich content – Hierarchies
Planning Facts: Supply, Demand, Inventory, Capacity, KPIs, Exceptions, Cost, …
Trading Partners Internal Orgs Item Time
Customer
Zone
Org
Subinventory
OperatingUnit
FiscalPeriod
Supplier
SupplierSite
CustomerSite
ABCClass
ProductCategory
Resource
DepartmentResource
Group
Item
ProductFamily
Project
Task
Project
PlanningGroup
Day
MonthWeek
Quarter
Year
MfgPeriod
ScenarioVersion
PlanVersion
DemandClass
ExceptionType
OrderType
ShipMethod
Source
Misc
Pre-built aggregation levels based on familiar planning hierarchies
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© 2008 Oracle Copyright, Proprietary & Confidential
Pre-seeded rich content – Reports200+ pre-built reports for aggregate and detailed analysis
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© 2008 Oracle Copyright, Proprietary & Confidential
Extensible and configurable
• Quickly define and modify reports and dashboards via drag and drop
• Easily configure drill downs from dashboards to reports
• Add textual instructions as needed
Adapt to the needs of individual users
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© 2008 Oracle Copyright, Proprietary & Confidential
Extensible and configurable
Attachfilters
Addformulas
Set permissions
Show or hidepages instantly
Secure access
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© 2008 Oracle Copyright, Proprietary & Confidential
Advanced Planning Command Center
Business insight for supply chain executives
Provide insight to key decision makers
Proactively respond to deviations in performance
Reduce decision making time through automation
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© 2008 Oracle Copyright, Proprietary & Confidential
Proactively respond to performance deviationsDetermine problem ► Find cause ► Evaluate alternative solutions
Revenue below targetRevenue below target
Supply shortagesSupply shortages
Critical part shortageCritical part shortage
Lost productioncapacity
Lost productioncapacity
Lost sales due to lackof supply
Lost sales due to lackof supply
Plan overtime
Change sources
Expedite orders
Split supply orders
Embedded Analytics Planning
What problem do I
have?
Why do I have this problem?
What actions should I
evaluate?
VP of Supply Chain Supply Chain Analyst Planner
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© 2008 Oracle Copyright, Proprietary & Confidential
Quickly identify problem and root cause
Suddendemand spike
Resourceoverloaded
Increase inlate shipments
Supply shortage
Proactively respond to performance deviations
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© 2008 Oracle Copyright, Proprietary & Confidential
Detect a resource problem
Simulate apossiblesolution
Compare the results of the
simulation
Directly drill down
within context
No separation between planning and analyticsSeamlessly move from problem to resolution
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© 2008 Oracle Copyright, Proprietary & Confidential
Determine which alternatives to analyze
• Supply chain decision makers define business planning scenarios
– Unlimited number of baseline scenarios
– Unlimited number of alternative scenarios
• Assign scenarios and tasks to planners for execution
– Shared accountability for supply chain planning metrics
– Planners execute plans using Planner Workbenches
• Attach key documents– Financial analysis
– External market data and industry reports
Assign and monitorscenario activities
Execute and assign supply plans to scenarios
Execute and assign inventory plans to scenarios
Execute and assign demand plans to scenarios
PersonalActivity List
PersonalActivity List
PersonalActivity List
Demand Planner Inventory Analyst Supply Planner
Key decision makers assign tasks to planners for execution
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© 2008 Oracle Copyright, Proprietary & Confidential
Executive Level Business Scenario Planning
Attachdocuments
Addcomments
Decide whichPlans to use
LaunchDashboard
Assignactivities
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© 2008 Oracle Copyright, Proprietary & Confidential
Advanced Planning Command Center
Business insight for supply chain executives
Provide insight to key decision makers
Proactively respond to deviations in performance
Reduce decision making time through automation
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© 2008 Oracle Copyright, Proprietary & Confidential
Reduce decision making time through process automation
• All key planning processes are web service enabled
– Collections– Forecasting– Plan runs– Plan name creation
• Approval and review steps can be modeled and inserted into the process
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© 2008 Oracle Copyright, Proprietary & Confidential
Automate planning process execution
• Assign owners to top level process notes
• Optionally skip steps when resubmitting
Execute and configure your planning processes with BPEL Process Manager
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© 2008 Oracle Copyright, Proprietary & Confidential
Automatically archive summary information
• Archive scenarios directly from scenario management, via concurrent program or web service
– Automatically archives KPIs and facts for plans that are linked to the scenario
Archives Demantra Demand facts published to EBS
– Creates a new scenario version that can be used for comparison in the dashboards
– Purge scenarios as they become obsolete (will not purge plans shares across multiple scenarios)
• Archive plans directly from plan runs (optional) or Publish profile (SNO, Demantra)
– All facts, KPIs, and summaries for the plan are archived in a new plan version
– Compare plan versions in the dashboards
– Purge plan versions as they become obsolete
– ASCP/IO Purge plan: purges all plan versions
Plans and Archived Plans
Archive plans
Archive scenarios
Archive plans and scenarios for historical and trend analysis
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© 2008 Oracle Copyright, Proprietary & Confidential
Integrate with Oracle and non-Oracle systems
• Integrated: completely integrated with APS 12.1.01 and Demantra 7.2.02• Configurable: SOA enabled process automation• Open: enable external data sources and combine data with existing planning data• Modular: leverage pre-built content as you enable more planning applications
Leverage extensible and secure architecture for additional cost savings
Personalized Dashboards, Answers, and Alerts OBIEEAnalyticalDashboards
BPEL basedScenarioOrchestration
ActivityManagement
ScenarioManagement
Planner Workbenches
Web ServiceenabledPlanningProcesses
Collected Data Plan Data
ERPLegacy/Flat file
CollectionsAnalytical Data Store(OBIEE)
BPEL
PLANNING INSTANCE
Archive
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© 2008 Oracle Copyright, Proprietary & Confidential
Pre-built integrations to Value Chain Planning
ADVANCED
PLANNING
COMMAND CENTER
Supplies pegged to excess, stock-outs
Service levels and targets , fill rates, carrying costs
Min and max inv levels, safety stocks, order qty
Total and net supply and demand
Planned orders, scheduled receipts, on-hand
Value Chain Planning
Projected available balance – units, value, days of cover, %of total demand, %of safety stock
Independent demand qty, dependent demand qty
Late demand satisfaction factor
Avg qty of supply pegged to demand, highest priority demand
Production to plan, shipments to plan
Obsolete inventory – value, %of total inventory
Excess inventory – value, %of total inventory
Late orders and ratio – days, count, value
Perfect order index
Total supply chain costs, carrying cost
VMI inv – value, %, stock-out days, service level
Resource availability and requirements, setup time
Cost – Mfg, purchasing, transportation, resource
Variance of PAB over mean
Revenue, gross margin, sales, avg inventory
Supplier spend, total buy orders, supply volume
Resource utilization, overloaded ratio
WIP start qty, avg make order qty, thru-put rate
Returns as % of total sales
Marketing forecast – qty, value, cum
Bookings forecast – qty, value, cum, accuracy %
Items single sourced
Past due backorder qty
Unmet – demand, demand history, revenue
Supplier capacity – available, required, net, util%
Consensus forecast – qty, value, cum
Avg buy order qty
History – bookings, shipments, production
Shipping forecast – qty, value, cum, accuracy %
Final forecast – qty, value, cum
Consensus forecast accuracy MAPE – 4wk, 8wk, 13wk
Constrained forecast – qty, value
Backlog – projected, actual
Budget shortfall – value, %
Inventory build target
Manufacturing forecast – qty, value, cum
Buys from non rank-1 supplier
Forecast accuracy %
Inventory turns
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© 2008 Oracle Copyright, Proprietary & Confidential
Oracle Advanced Planning Command Center
• Provide insight to key decision makers– Close the loop with embedded analytics
– Bridge the gap between analytics and planning through seamless integration with operational planning applications
– Leverage pre-built dashboards with rich content and KPIs
• Proactively respond to deviations in performance
– Identify root cause
– Define and evaluate alternative business scenarios
– Manage execution of scenarios; assign tasks to planners and other stakeholders
• Reduce decision making cycle time through process automation
– Use BPEL process flows to execute planning processes
– Configure and adapt
Enable holistic view of supply chain performance
Analytical Data
Planning Dashboards and Reports
Business scenario planning
Planning process automation
Execute scenarios
Scenario andActivity Management
Forecasting Supply Planning
Web Service enabled planning processes
Orc
hes
trat
eP
lan
An
alyz
e
44
© 2008 Oracle Copyright, Proprietary & Confidential
Monitor and manage your supply chain
Pre-built self-service dashboards for comprehensive management analysis with corporate metrics
Analyze across key demand, supply, capacity, finance, and exception metrics
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© 2008 Oracle Copyright, Proprietary & Confidential
Key takeaways
• Business insight for key decision makers– Monitor corporate metrics in real time, automatically derived from operational
planning information – Enable cross-planning business analysis to manage your value chain
• Proactively respond to performance deviations– Seamlessly move from analysis to planning (problem to resolution)– Assign tasks to planners to evaluate alternative business scenarios
• Pre-built rich content – Fast ROI– No need to built a “rear-view mirror only” disconnected data warehouse
• Automated business process planning processes