Plan

Source
Source Make Deliver

Return Return Return Return

Enabling the SCOR Model with

Oracle Supply Chain Management
Agenda

 Introduction

 Supply Chain Best Practices

 Enabling the SCOR Model

Business Pressures
• Variability & Uncertainty
• Increased Global Competition
• Increased Customer Expectations
• Corporate Governance
• Compliance / Risk Management
• Accelerated Product Innovation
• Services as a Revenue Source
Internet
Suppliers Your Company
• Lean, Six Sigma Initiatives
- Lean, Demand-Driven Mfg.
- The “Lean Enterprise”
• Specialization & Outsourcing
• Supply Chain Integration
- Real-Time Visibility
- Value Chain Collaboration
• IT Rationalization / Simplification
Internet
Customers
The Future
Demand-Driven Supply Chains Focused on “Network Value”

• End-to-end process
integration
• Supply chains are all
connected
• Total supply chain
visibility
• Differentiated
through fulfillment
and services

Supply Chains Built on INFORMATION not Inventory

 Supply Chain Best Practices
Order Management
 Support multi-channel order
capture, including complex
configurations
 Improve order accuracy
and visibility
 Reduce order processing
time and costs
Supply Chain Planning
 Improve forecast accuracy
 Synchronize value chain
operations/increase velocity
 Minimize inventory costs
while improving service levels
Procurement
 Lower procurement
transaction costs
 Lower total purchasing spend
 Increase quality of goods/
services purchased
Manufacturing
 Reduce cost while
improving quality
 Reduce cycle times
 Enable manufacturing
agility: make vs. outsource
Logistics
 Minimize cost of
movement and storage
 Improve speed & accuracy
of delivery commitments
 Reduce shipping errors
Service
 Deploy lowest cost,
best fit service channel
 Decrease issue
resolution time
 Grow revenues via
differentiated services
Maintenance Mgmt
 Minimize asset downtime
 Reduce maintenance costs
 Improve safety and compliance
Product Lifecycle Mgmt
 Design more
competitive products
 Reduce product cost
 Accelerate time-to-market
Supply Chain Intelligence
 Measure and monitor key
performance indicators
in real-time
 Compare results, view trends
 Identify exceptions and
opportunities for continuous
process improvement
 Realizing Supply Chain Benefits
Increase… Decrease…
Engineering Changes 90%
Component Re-Use 50% Design Errors / Rework Cost 25%
Customer Service 35% CTO / ETO Order Errors 90%
Purchasing Volume Discounts 5% Inventory Levels 25%
Mfg Labor Productivity 20-50% Planning Cycle Time 75%
Equipment Capacity 30-40% PO Processing Cost 50%
Manufacturing Throughput 20-50% Indirect Material Cost 20%
On-Time Deliveries 10-20% Mfg Cycle Time 50-90%
Carrier Capacity Utilization 5-10% Unplanned Downtime 30-40%
Service Productivity 15-30% Warehouse Labor Hours 10-30%
Service Scheduling Efficiency 10-15% Direct Transportation Spend 5-25%
Maintenance Productivity 40-55% Shipping Errors 80-100%
Worker Safety 20-50% SLA Penalties 60-80%
Maintenance Wrench Time 20-50% Spares Inventory Cost 30-90%
MRO Cost 5-10%

Sources: AMR Research, Alcatel, Boeing, British Standards Institute, CIMdata, HP, Computer Service &
Support Magazine, CSM Magazine, eSync, Ingersoll-Rand, Intermec, Lilly, Meta Group, PwC ECO
Study, Society for Maintenance & Reliability Professionals, Telia Networks, Tompkins
 Achieving Efficiency with
Automation, Collaboration, and
End-to-End Business Flows…
 Automate Supply Chain Processing
Your Company
Specifications, Requirements,
Suppliers Drawings, Schedules Defects Customers
Develop
Negotiations,
Contracts Enable
Sales and Order Forecast, Sales and Order Forecast,
Supply Commits Plan Supply Commits

Orders, Prices,
Execution, Payments Promise Dates,
Source Billing, Payments

Outsourced
Product Specs.
Manufacturing Make

Drop Ship, Order Status

Carrier Mgmt Deliver
Spares Service Requests,
Replenishment Service Warranties

Schedule, Schedule,
Contracts Projects Status, Cost
Add Supply Chain Collaboration

Design Enable Plan Source Make Deliver

Integrated Intelligence, Performance Metrics, Exception Handling

Purchasing Collaborative Purchasing

Analysis Planning Execution Logistics
Outsourced
Product Sourcing Supply Shipment Manufacturing Order
Design Agreements Commits Tracking Promising
Quality
Contract Inventory Payment & Receivables
Management Replenishment Reconciliation

Customers Suppliers Carriers

Create End-to-End Business Flows
Suppliers Your Company Customers

Procure to Pay
Forecast to Plan
Plan to Manufacture
Order to Cash

Service

How You Organize • Business flows connect departments

• Integrated information makes it easier
How You WORK • Open architecture makes it available
 Driving Value
through Planning…
Drive Value through Planning

Revenue Cost
Level 2
Metrics
Service Opport- Asset
Inventory Efficiency
Level unities Utilisation

Faster
Consensus Better Inventory Better
Planning
Forecast Product Mix Postponement Scheduling
Cycles

Level 3 More accurate

Cheaper
Better
Process
Order VMI Supplier
Products Automation
Promising Utilisation
Processes
Better Better
Visibility Sourcing

Improved Collaboration and Integrated Performance Management

Enabling the SCOR Model
SCOR is Structured Around Five Distinct
Management Processes
Plan

Deliver Source Make Deliver Source

Source Make Deliver Source Make Deliver Source

Return Return Return Return Return Return

Return Return

Suppliers’ Customer’s
Supplier Your Company Customer
Supplier Customer
Internal or External Internal or External

SCOR Model
Building Block Approach
Processes Metrics
Best Practice Technology
Oracle Has a Complete Set of Integrated
Solutions that Enable the SCOR Model…

Illustrative only*: Does not include all Supply Chain applications. RosettaNet capability is relevant to the High Tech industry
Supply-Chain Operations Reference
Model (SCOR) 6.0 - Processes

Plan P1 Plan Supply Chain

P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns

Source Make Deliver

Customers
Suppliers

D1 Deliver Stocked Products

S1 Source Stocked Products
S2 Source MTO Products
S3 Source ETO Products
M1 Make-to-Stock
D2 Deliver MTO Products
M2 Make-to-Order
D3 Deliver ETO Products
M3 Engineer-to-Order
D4 Deliver Retail Products

Return Return
Source Deliver

Enable
 Plan
Plan

Source
Source Make Deliver

Return Return Return Return

Advanced Supply Chain Planning
Integrated, End-to-End Planning

Supply Chain Intelligence Throughout

Sales and Operations Demand Planning P1.1

Planning
From detail to summary

Inventory Optimization P1.2

Supply Chain and Manufacturing Planning P1.3, P2, P3, P4

Global Order Promising D1.2, D2.2, D3.3

Deployment Planning P4, P5, Dx.7

Manufacturing Scheduling M1.1, M2.1, M3.2

Transportation Planning Sx.1, Dx.5, DR1.3, SR2.4, DR2.4, DR3.3

SC Exception Management Throughout

SC EXCEPTION MGT
Collaborative Planning Throughout

Minutes Hours/Days Weeks/Months Quarters Years

From short-term to long-term

Collaborative Supply Chain Planning
Covers ALL Planning and Scheduling Processes
Customers Suppliers

Tier 2

Tier 1

Internet

Portal Portal
Collaborative Planning Process
Collaborative
Supply Plan
Collaborative
Demand Plan Automated
Automated
Exceptions Exceptions

Marketing
Forecast Single Holistic Automated
Plan Exceptions

Sales
Forecast

Consensus
Mfg Forecast
Forecast t = hours

Demand Planning Process Supply Planning Process

 Sales and Operations Planning
P1.3 - Balance Supply Chain Resources

INPUTS PROCESS
Determine new product plan
• Financial plan PLANNING and generate demand plan to
EPB
• Budget plan develop a consensus forecast

Run IO with consensus forecast

• Sales opportunities
CRM to determine inventory targets
• Trade promotions Inventory and
Demand Plan and postponement strategy
Service Levels
• Ship and book history Run ASCP with consensus
OM forecast and inventory targets
• Current order backlog
to determine supply plan

• Prod. and inv. history Exception Feed the supply plan and
SCM
• Production backlog Management Supply Plan constrained forecast into the
demand plan

CP • Customer forecasts Sales Plan Management review to

Production Plan Management
Bookings Forecast
evaluate and adjust plan
Reports

OUTPUTS
 Integrated Performance Management
throughout Planning and Execution
PLAN TO PERFORMANCE
• Planned utilization
ASCP • On-time delivery
• Planned margin
• Forecast accuracy
DP • Margin analysis
• Promotion effectiveness
• Service level analysis
IO • Plan versus profit
• Postponement savings
• Carrier contract utilization
TP • Cost per unit weight
• Cost per unit volume
CP • Supply commit variability
• Order forecast variability
PROCESS
BUSINESS INTELLIGENCE Identify key performance
measures and set targets
Calculate KPIs and compare to
Define targets Execute transactions plan; notify decision makers of
exceptions
Analyze exceptions based on
facts; take immediate corrective
action
Notify on
Measure performance
‘out of tolerance’
Perform trend analysis and
adjust business plan and targets
Management
reports
Role-based
portals
OUTPUTS
 Source
Plan

Source
Source Make Deliver

Return Return Return Return

Collaborate with Suppliers
Supplier Collaboration through a Single Portal

Suppliers  Execution – P2, S1, S2, S3

– Involve suppliers in your sourcing process
– Suppliers view or maintain agreements, orders, ASNs,
Portal receipts, returns, quality, delivery and shipment
schedules, invoices, and payments

 Planning – EP.4, ES, P2

Execution Planning
– Involve suppliers in your planning process
Vendor Managed Inventory – VMI, including exceptions
Exceptions – Waterfall analysis - compare customer forecasts with
Orders
supply commits
ASNs Forecasts – Global inventory and fulfillment visibility
– User-configurable exceptions
Receipts Capacity
 Seamless Integration
Invoices Pegging
– Generate replenishment orders in Purchasing
Payments Waterfall – Share products, suppliers, order modifiers, ASLs,
Analysis sourcing rules

Suppliers, products, order

modifiers, ASLs, sourcing Supplier collaboration through a single Portal
 Advanced Procurement
Demand Sourcing Collaboration
P1.4, P3.4

RFx Quotes Portal Suppliers

Auction Bids
Planning & Contracts / Catalogs
Scheduling Offers Counteroffers
ES.1, ES.3
ES.1, ES.2,
Orders
ES.9, P2, S3.1 Changes
Approval Ship Notices
Design & Invoices
Engineering P2.4
Purchase Order
P2.4, S1.1, S2.1, S3.1
Maintenance Messaging:
Requests Receipt XML / EDI
S1.2, S2.2, S3.4

Payment /
Procurement Reconciliation EFT/Check
Self-Service S1.5, S2.5, S3.7 Banks
Requisitions Statement

Integrated Intelligence Spend Procurement Supplier

ES.2, EP.2, EP.4 Analysis Productivity Performance
 Make
Plan

Source
Source Make Deliver

Return Return Return Return

 Lean Manufacturing & Outsourcing
Integrated
Cost Intelligence Productivity
Analysis
EM
Sample Analyze Adjust Quality Management

Lot / Serial Genealogy Tracking

Issue Mtl
M1.2
Queue
Outsource
Plan Schedule Release Mixed M1.3
Mode
P3.4 M1.1 M1.1 Move Discrete Flow
CTO M2
ETO M3
Make
MTS M1 M1.3
M1.6 M1.5 M1.4
Repetitive Process
Transfer Stage Package Receipt
M1.4 Inspect
M1.3
Grade
M1.3
Seamless S1.4, Collaboration
Integration D1.8
Order Warehousing / Contract
Management Transportation Suppliers Customers
Manufacturing
 Deliver
Plan

Source
Source Make Deliver

Return Return Return Return

 Demand-Driven Order Management
Customers
Suppliers

Collaboration

Web Store Planning P1,

Price P3
Configure D1.1, D1.2
D1.1, D1.2 Check
Call Center Purchasing P2
Availability
D1.3 P3,
Sales / Quotes Tailorable, Manufacturing
Capture M1.2
Workflow
D1.1, D1.2
Driven Schedule
Service Process Finance D1.13
D1.3
Invoice/
Contract Payment Warehouse
Plan D1.9
Release D1.13 Management
Ship & Shipment
Track D1.4-9 Transportation
XML/EDI D1.10 D1.10
Management

Multi-Channel Demand Integrated Logistics

Integrated Logistics
Enables Cross-Functional Process Optimization

Inventory
Optimization
Sales Plans Warehouse
P1.2-3
& Orders (Store & Manage)
(Plan & Monitor) D1.8-9
P4.4, D1.2-3
Supply /
Demand
Matching
Dynamic
P4.3 Stage &
Rerouting
& Drop Ship Cross Dock
S1.1 to D1.6 S1.2 to D1.4

Transport
(Move & Track)
D1.4-7, D1.10-11
 Logistics Management
Continuous
On-Time Customer Carrier
Improvement Performance Satisfaction Analysis
ED.2, ED.6

Carriers / 3PLs Customers

Collaboration &
Event Management

Pick,
Inbound Book / Re- Outbound
Plan Rate Move Store Pack, Track POD Settle
Tender plan
Supply Ship Demand
Source Destination
D1.5 D1.7 D1.7 D1.8 D1.10 D1.5 D1.13 D1.13
Integrated Planning & Execution

Seamless
Integration
Order Warehouse Purchasing /
Managemen Management Procurement
t
 Warehouse Management

RF Support Label
Assemble S1.4
RMAs Directed S1.4 Replenish
Receive Inspect
Purchases Putaway S1.4
Transfers S1.2 S1.3 S1.4 Tailorable
Cost Rules &
Workflow Move
D1.10 D1.9 D1.9 S1.4
Process
RTVs WIP
Orders Directed
Ship Pack Issues
Transfers Pick D1.9 Count
Transfer S1.4
S1.4
Seamless
Integration

Order
Planning Purchasing Manufacturing
Management
P2, P4, P5, S1.1 M1.2, D1.3,
EP.4, ED.4 M1.6 D1.8
 Return
Plan

Source
Source Make Deliver

Return Return Return Return

 Effective Service Delivery
Customer/Prod Info, Secure Intelligence
Knowledge Base Access

Rapid
Resolution Proactive Service

Agent Assisted Field Service

Delivery
Options
Self- Exchanges In-House Repair
Service Service Parts Logistics

Identify Plan & Repair / Close

Email Analyze Prioritize Debrief
& Verify Schedule Resolve & Bill
Workflow Automation

Phone Contract Entitlements / Warranties

Messaging Shipping / Human

(XML/EDI) Mfg Inventory Billing
Receiving Resources
 In-House

Manage Product Returns Exchanges

Repair

Support Complete Logistics & Repair Processing Needs

1. Direct Product Return

Identify In-House Repair
Generate
Resolution
RMA
Needs
Receive Estimate Plan Repair, Debrief
Store,
and and and Refurbish, and
Ship
Inspect Approve Schedule Reclaim Bill
2. Exchanges
Identify
Send Loaner
Resolution
or Exchange
Needs

Shipping / Mfg & Human

Receiving Contracts Resources Billing
Inventory

 Enable 3rd Party Repair

 Track Actual Repair Costs
 Update Product Configuration and Repair History
 Enterprise Maintenance Management
Maintenance Requirements Meter Readings

Usage
Engineering Specifications
Estimated Life

Production Schedules Inspection Limits

Dynamic
Plan
Adjustments Planned
Purchasing

HR: Skills

Execution: Workflow Driven

Create Inventory
Approve Dispatch Complete
Self-Service W/O

Maximize
Optimize
Benefits: Safety &
Utilization
Compliance
Integrated Product Lifecycle
Management
 Integrated Product Lifecycle Management

Portfolio Management *
Advanced Project Procurement
I Collaboration Management E
n Tools n
t Finance / t
e Engineering Develop
Costing e
r Service & r
n Maintain p
Market r
a Inventory
l Requirements Management I
Global s
Specifications e
Marketing Fulfill
Drawings Product &
Component Plan Manufacturing
Schedules I
Defects Catalog n
Orders t
E Manufacture Marketing e
x g
t  Sell
 r
e Customers Procure a
r  Sales
Configuration t
n Configuration I
a Sourcing
Management o
l n
Service
Suppliers Product Intelligence

* Not formally a part of the SCOR Model

Daily Business Intelligence
Oracle DBI: Real-Time Business Intelligence
Pre-Built Management Reporting Solution

Daily Business
Intelligence Role-Based
Portal Dashboards
Users • Order
Management
• Planning

Transaction Users Analysts Managers

• Purchasing
• Manufacturing
Needs • Shipping /
Transaction Management Receiving
Analysis
Reporting Reporting • Service
• Contracts
Unified • Maintenance
Data • Product
Transactions Summaries
Management
Example: Service Intelligence
Timely, Accurate, Relevant
Flexible Flexible • Daily updates on
Time Periods Comparisons
key performance
indicators
Real-Time
Results • Actionable
information on
savings and
Graphs incremental
Performance
revenue
Measures opportunities
Reports Links

• At a glance:
- Service request
status
- Contract renewals
& cancellations
- Open request aging
& backlog
- Percent escalated
Your One Source for SCOR