supply chain management systems part ii (implementation)
TRANSCRIPT
SUPPLY CHAIN MANAGEMENTSYSTEMS
Part II (Implementation)
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LEARNING OUTCOMES
1. Describe the typical techniques of supply chain management systems
2. Define the functions of the typical techniques
3. Case study of AT & T : Oracle business suite
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Typical Techniques
• Computer Assisted Ordering (CAO)– Based on data of Point of Sales (pos) systems
POS data
On hand-processing
Logistics Center
Logistics Center
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Typical Techniques
• Continuous Replenishment Programs (CRP)– Vendor Managed Inventory (VMI) - Based on sales pattern and
record
Flow of Info.Flow of products
RetailManufacturer
Manufacturer Retail
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Typical Techniques• Cross Docking system
– Synchronized movement – can delete middle steps
Dr. Jean-Paul Rodrigue
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Cross Docking System
shop shopshopshop shop
MixedtypesPallet
Singlestype
Pallet
Divide and Combine products from single Pallet stocks
Input
Out
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Case Study : Best Practices at AT&T
Oracle Real Application Clusters (Oracle RAC) & Oracle E-Business Suite
Bryon Rickey
Ravi Kayarthodi
September 20th, 2010
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About AT&T
AT&T is one of the world’s largest Telecommunications companies AT&T Global Headquarters is based in Dallas, TXAT&T has approximately 290,000 employeesAT&T has more than 90 million wireless customersAT&T has more than 16 million high speed internet subscribersAT&T has more than 2.5 million U-verse subscribersExclusive U.S. provider of iPhone 3G / 3GS / 4
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AT&T SCM: Architecture highlights
Oracle E-Business Suite Centric Scale-up with cluster database on very large
infrastructure High availability with Oracle Data Guard, Oracle
GoldenGate, and site level redundancy Central inventory/financial management; utilizes product
hub, planning/forecast with ASCP/Demantra Order orchestration and brokering with in-house
developed Oracle based application system Internet deployment for interaction with external
suppliers Management reporting/profitability analysis; procurement
and spend analytics Industry leading warehouse/distribution management
systems
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AT&T SCM Platform: Financial Integration
Both Network and Retail SCM - financial counterparts are integrated in the same platform: Shared AP, AR, PA, FA, and GL
Supply Chain transactions leverage same referential data and accounting rules
Financial integration of supply chain transactions are seamless and are recorded real-time in the general ledger
No need for reconciliation between sub ledgers
Ability to forecast financial implications based on SCM forecasts
Online financial budgeting validation on purchasing and requisitions
Analytical GL Cube and Inventory Cube
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Results
AT&T has saved more than $500 million and has improved its purchasing power by combining accounts with its vendors.
Estimated to save $1B in inventory costs, and $300M per year in reduced operating costs.
Warehouses have been able to keep inventories low without missing SLA, resulting reduced overall inventory costs.
Ability to identify sold merchandise, resulting in fewer fraudulent returns
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Industry Recognition
2010 IDG’s CIO AwardRecognizes organizations around the world
that exemplify the highest level of operational and strategic excellence in information technology
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Systems Architecture
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AT&T SCM: E-Business Suite Centric
Oracle E-Business Suite 11i
Other Billing Systems
HR - Employee
EDI
Warehouse/Distribution System
Asset Tracking
Direct Fulfillment
Spreadsheet
Lease Management
Retail Planning
Construction
General Ledger Receivables
Accounts Payable Purchasing
Inventory
Order Management Assets
AT&T Corporate Systems
Tax
Projects
Archive Returns
Procurement partners
COR Stores
Planning/ Forecasting -
Network
Order Broker/Orchestrator
Legacy Procurement
Provisioning
Other Channels
External Facing; Suppliers and
Auctions
Technician Ordering
SO
AM
idd
lew
are
Procurement
3PL portal
TMS
Demand Planning
Profitability Analysis
Procurement & Spend Analytics
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AT&T SCM: Key Systems Architecture
Oracle E-Business Suite 11i
Inventory Planning Purchasing Financials
Corporate Asset TrackingDistribution Center
Warehouse Mgmt Inventory Tracking
ReceiptsReceipts
Shipments
EDI EDI
Audits
Repairs
APPOODP eAuction GL
FAPAASCPOM RNF
Moves
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OpusOpus
Oracle 11i E-Business Environment
Dealers/iStore
Dealers/iStore
Store Replenishment
Store Replenishment Direct FulfilmentDirect Fulfilment
National Retailers
National Retailers
DSL and uVerse HSIA
DSL and uVerse HSIA
StoreStore XBM/InsuranceXBM/Insurance Dealer/NRDealer/NRService DepotsService Depots SalesSales ReturnsReturns
Order Management
Order Management
Forward Orders
UpfrontUpfront
Reverse Company Owned Retail
416 CPU Cores & 1.7TB of Memory in DB Cluster
14TB of storage for transaction DB
3TB of storage for Archived DB
PlanningPlanning PurchasingPurchasing InventoryInventory ReceivablesReceivables FinancialsFinancials
Oracle E-Business Suite 11i Apps
11i DB
EPLEPL
RU30RU30
In the order management – Forward orders from Store Replenishment, dealers, technician orders and forecasted demand gets into SCM platform for processing.On the reverse order end we have Corporate Stores, returns, Service depots and so on