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PeopleSoft Proprietary and Confidential, Copyright 2003 PeopleSoft, Inc. For Internal Use Only, Do not distribute outside of PeopleSoft.

Supply Chain SolutionsSupply Chain SolutionsC-Level PerspectivesC-Level Perspectives

Jim Osborne, CPIMJim Osborne, CPIMSolution ArchitectSolution Architect


Make Sell

Plan

Source

Design

Deliver

Service

Supply ChainSolutions

• Demand Management• Strategic Planning• Sales & Operational Planning• Constraint Planning & Optimization• Business Analytics

• Product Lifecycle Management• Projects & Project Portfolio Mgt.• Production Line Design

• Warehouse Management

• Transportation Management

• Data Collection

• Supplier Relationship Management

• Strategic Sourcing

• eProcurement• Supplier Portals

• Customer Relationship Management

• Customer Portals

• Plant & Equipment Maintenance• Service & Warranty Management• Call Center

• Production Control• Scheduling / MES / LIMS • Lean / Demand Flow Mfg.

ERP versus BOB


Sales ForceAutomation

-SFA

OrderTracking/Tracing

ShipmentProcessing

WMS

OrderConfigurator

ERP

Supply Chain

Exec. Eng.

ProductionPlanning & Scheduling

Replenish/Purchasing

Inventory Mg.

SupplyChain

Planning (DRP)

Transportation Planning

ATP/CTP

Demand Planning

Marketing & Data-mining

PDM

CampaignManagement

Cust. Segm.& Valuation

Merge Instructions & Ship Documents Ship Instruction

& Confirmation

Mfg Lead Times& Capacities

FG Inv.

Adjstmnts.

Order ETA Commits

Sales Orders

BTR/BTFOrders

Pic

k D

ata

Del

iver

y N

otic

e

Shi

p &

Del

iver

y C

onfir

mat

ions

Inv.

Ava

il. (

Pre

lim.

AT

Ps) Ord

er L

ogis

tics

Par

amet

ers

Opt

imiz

ed T

rans

.

Lead

Tim

e

Outbound Order Shipment Wave Plan

Pick InstructionsSequenced Build Schedule

Inv. Avail./ Consumption (OK to Bill)

Repl. DOI Trigger, Parts & Components Requ.

Inv. Mfg. Lead Time & Capacity

Inventory On-hand &Inbound Intransit

SequencedBuild Sched.

JIT Component Pick/Ship InstructionsDispatch Confirmation

Shipment Pickup/Delivery Instructions (Bid)

Shipment Documents (Tender)Shipment Status (Track & Trace)

Shi

pmen

t S

tatu

s &

Exc

eptio

nsS

hip

Load

Del

iver

y C

onfir

mat

ion

Pro

d. T

rans

ition

s, P

rom

otio

nsP

rice

Leve

ls,

Ser

vice

Lev

els

Config. Business Rules

Shi

pmen

t Lo

ad

PredictedCustomer Behavior

ServiceLevels

Ord

er I

nfo/

Cus

tom

er /

Ord

er I

nfo

Valid BOMs

Customer Order History,Purchase InquiriesRMAs, Bug Fixes,

Prod. Info

CustomerInteraction Data

Aggregated DP Info,Campaign-based

Demand Forecasts

Invent. ExceptionsConstr. Forecasts

Constraint Forecasts

Uncostrained Forecasts

Cus

tom

er M

ster

Dat

a E

nhan

cem

ents

Campaigns

& Responses

AR

Inv

oici

ng

Pro

duct

Dat

a

Pro

duct

Dat

a

Quality Stati

Test Program

Qua

lity

Sta

tus

Quote History & RulesO

rder

Sta

tus

Pric

e Le

vels

, S

ervi

ce L

evel

s

Inv.Status, Inbound In-transit

Pick/Pack/ Ship InstructionsDispatch Confirmation

Order BuildConfirmation

Seq. Build SchedulePick Instructions Call DownsO

rder

Bui

ldC

onfir

mat

ion

Inv. On-hand

Inv.

Sta

tus

Material Specs,Purchase Plan, Price,T&C,Ratings

Invoice Match

Pur

chas

e/R

eple

nish

Ord

er

Mat

eria

l &

Cap

acity

Pla

n

Available Inv/CapacityInv/Capacity Consumption

Business Rules

Product DataTest Programs

Quality Stati

M.D.

Inv. On-hand

JIT

Pic

k &

Pac

k, D

eliv

er I

nstr

uctio

nsIn

v. O

n-ha

nd /

Dis

patc

h C

onfir

mat

ion

Available Inv/Capacity

Sales Orders

Replenish Requirements, PO Matching

Material & Capacity Plan

Mfg

.LT

& C

apac

ity

ConstrainedTP Plan

Car

rier

Par

amet

ers

Replenish DOI Trigger

Sales Orders

Test Quality

CustomerService

CustomerData

S

U

P

P

L

I

E

R

Finished GoodHub

(OEM/3PL)

SupplierComponent Hub

(OEM/3PL/)

Carrier/3PLIn-transit

Master Data -Products, Materials, Supplier, Customer

Merge Hub(3PL)

CUSTOMER

COMMUNICATOR

FieldSales

WebSales

ChannelPartnerSales

CallCenterSales

C

U

S

T

O

M

E

R

S

e-MailLetters

Fax

SupplierComponent

Sub-AssemblyFinished Goods

TradingExchanges

QuoteTracking

& Tracing

TradingExchanges

LIMS MES

80%6:1

Look familiar?


Wait a minute

• Some requirements are too complex or risky. Some requirements are too complex or risky.

• Leverage existing investments to minimize Leverage existing investments to minimize scope and time to benefit.scope and time to benefit.

• Reconciling individual value versus collective Reconciling individual value versus collective value is difficult because of timing.value is difficult because of timing.


• COO - responsible for business COO - responsible for business processes and people performing themprocesses and people performing them

• CIO - responsible for technology, CIO - responsible for technology, infrastructure and related support staffinfrastructure and related support staff

• CFO - has a fiduciary responsibility to CFO - has a fiduciary responsibility to shareholdersshareholders

C-level responsibilities offer differing perspectives


Chief Operations Officer perspective

What’sWhat’simportant to important to

the COO?the COO?

• Get the job doneGet the job done• Don’t get in the wayDon’t get in the way• Fast and reliableFast and reliable• Global visibilityGlobal visibility• Handle the entire processHandle the entire process• Standardized solutionsStandardized solutions• Analytics – ScorecardsAnalytics – Scorecards


Chief Information Officer perspective


the CIO?the CIO?

• IT Staff skillsIT Staff skills• SupportSupport• IntegrationIntegration• No modsNo mods• No redundant dataNo redundant data• Web clientWeb client• I18N I18N • 24 x 7 reliability24 x 7 reliability• Easy upgradesEasy upgrades



the CFO?the CFO?

• ShareholdersShareholders• Regulatory complianceRegulatory compliance• Single source of the truthSingle source of the truth• Global visibilityGlobal visibility• I18N and localizationI18N and localization• Business analytics & reportingBusiness analytics & reporting• Rock solid reliabilityRock solid reliability• Great economic valueGreat economic value

Chief Financial Officer perspective

Stock Price Stock Price PerformancePerformance


• The optimum solution provides increased The optimum solution provides increased shareholder value and reinforces C-level shareholder value and reinforces C-level core responsibilities.core responsibilities.

• How do you get everybody on the same How do you get everybody on the same page? page?

• Value assessmentValue assessment

The optimum solution


Why value assessment?

JUNE 07, 2004 (COMPUTERWORLD) – Among Fortune 1,000 JUNE 07, 2004 (COMPUTERWORLD) – Among Fortune 1,000 IT leaders surveyed:IT leaders surveyed:

• 82% say estimating IT benefits is a major challenge 82% say estimating IT benefits is a major challenge

• 68% don't track project benefits68% don't track project benefits

• 46% say they lack good metrics for measuring value 46% say they lack good metrics for measuring value

• 46% say IT staffers lack sufficient working knowledge 46% say IT staffers lack sufficient working knowledge of financial conceptsof financial concepts

• 28% say they lack staff and resources to gather and 28% say they lack staff and resources to gather and analyze dataanalyze data

• 74% don't track actual financial metrics after making 74% don't track actual financial metrics after making an investment decisionan investment decision

Source: 2002 survey of 130 Fortune 1,000 IT leaders by the Kellogg School of Management at Northwestern University and Diamond Cluster International Inc.


1.1. Business strategy and IT roadmapBusiness strategy and IT roadmap

2.2. BenchmarkingBenchmarking Understand key business & industry value driversUnderstand key business & industry value drivers Compare on key metricsCompare on key metrics

3.3. Define business process improvementsDefine business process improvements

4.4. Establish project benefits by linking Establish project benefits by linking business process improvements to valuebusiness process improvements to value

5.5. Explain financial impact of the projectExplain financial impact of the project Cash Flow, P&L, and Balance SheetCash Flow, P&L, and Balance Sheet Summary schedule – IRR, NPV, and Payback PeriodSummary schedule – IRR, NPV, and Payback Period

6.6. Determine the optimum solutionDetermine the optimum solution

Value assessment process


C-level perspectives of supply chain solutions

When considering Best of Breed versus ERP, When considering Best of Breed versus ERP, use value assessment to get your C-level use value assessment to get your C-level executives on the same page.executives on the same page.