42
E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E The material contained in this document is proprietary to Triniti Corporation (Triniti). This material may not be disclosed, duplicated or otherwise revealed, in whole or in part, without prior written consent. E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E “Building Efficiency Into Your Supply Chain For Survival In Today’s Economy” Amit Sharma Principal Consultant Triniti Corporation

Norcal Oaug Amit Sharma Triniti

Embed Size (px)

DESCRIPTION

Related Videos:- Supply Demand Planning:- http://www.youtube.com/watch?v=K66q2o1ED3c Demantra Vs Oracle Demand Planning http://www.youtube.com/watch?v=QwAzP3T6ut4 BUILDING EFFICIENCY INTO YOUR SUPPLY CHAIN FOR SURVIVAL IN TODAY’S ECONOMY =================== In today’s uncertain market with thinning demands and mounting inventories, execution efficiency should make it to the forefront of every companies business imperatives. This presentation focuses on adapting your supply chain practices to achieve them and survive in today’s tough economic times. Check out my profile at www.ezdia.com

Citation preview

Page 1: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

The material contained in this document is proprietary to Triniti

Corporation (Triniti). This material may not be disclosed, duplicated or

otherwise revealed, in whole or in part, without prior written consent.

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

“Building Efficiency

Into Your Supply Chain

For Survival In Today’s

Economy”

Amit Sharma

Principal Consultant

Triniti Corporation

Page 2: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Is it happening to you?

• Demand is thinning; Orders are being cancelled

• Inventories are mounting up

• Margins are shrinking

• Customers are looking for alternatives

• Suppliers don’t want to take risk

Is it happening to you?

If Yes,

You are not Alone !

Page 3: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

How can you

make that

difference?

Today’s economy has forced

companies to work extra ordinarily hard

to win the game

Page 4: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

The rules have changed !

Criterion Normal Economy Stressed Economy Organization

Response

Profit strategy Sales

Maximization

Cost

Minimization

Work out optimum

expense mix

Order to Cash Regular

cycles/Commitments

Irregular cycles Frequent credits

checks and lesser

response time

Demand to

fulfillment

Reliable forecasts With high quotient of

uncertainty

Better Demand

Management

IT and HR costs ROI based decisions Short terms based

decisions

Outsourcing and BPR

Procure to pay Best Quality /

reasonable cost

Good quality / best

costs

Optimize supplies

Share holders

Equity

Maximize value Maintain value Combination of all

above

Page 5: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Why should I change?

oYou don’t have your systems

aligned to your current objectives

oYou don’t have infinite cash

oOthers are changing

oEnd of the tunnel is not visible yet

oYou cant work in a standby mode

forever

Page 6: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Tune your system for new

economic challenges

The Step by Step Process

Page 7: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Demand Planning

• Switch from best /optimistic estimates to conservative estimates

• Use Forecast Expiration feature

• Enable Demand time fence in your supply chain plan

• Perform Forecast consumption at Higher Levels

• Use Global Forecasting & consume globally

• Re-evaluate your consumption Windows

Reexamining Forecast

• Perform Monthly Sales & Operations Planning

• Differentiate Customer forecast from Distributorforecast,

• Use POS data for Planning

• Re-evaluate your Allocations

Prioritizing your demands

Reduce the exposure to

excessive inventory

1.Increase available

cash on hand

2.Mitigate against E&O

Better customer

Management at

minimum Risk

Page 8: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Demand Planning Toolbox

Oracle ASCP Advanced Options

Oracle MRP Options

Oracle Trade Management

Oracle Demantra / ODP

Triniti Demand Prioritization

Demand Planning

Page 9: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Page 10: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Managing your Orders

• Using End Item Substitution

• Using Item Relationship cross-sell/ up-sell

• Using Back to Back shipments reducing stocks

• Using Drop Shipments reducing in-house inventory

• Re-using returns from the customers

Reducing Inventory Overhead

• Re-evaluate Qualifiers & Modifiers for Pricing

• Provide SMI (Supplier Managed inventory) for your customers

• Prioritize your demands to achieve highest customer satisfaction

• Share your production inventory data with your customers

Aggressive sales

• Perform stringent credit checks

Minimizing Risk

Reducing cash

tied up to unsold

units

Attract more

customer, get

business assurance

Avoid bad debts

Page 11: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

• Using Defaulting Rules to auto-populate priority for Planning systems

• Using Order Auto-schedule/ Auto-split using Prioritization

• Using EDI to automatically create Orders using Customer POs

• Drop Shipment / Back to back shipment

Process Efficiency

Orders Management toolbox

Triniti Demand Manager TDM

OM advanced Features

ASCP Advanced Features

EDI tools

Managing your Orders

Page 12: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Page 13: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Supply Chain Planning

• Putting Demand Time fence based on item properties

• Including your distributors in supply chain plan

• Eliminate high risk forecast from the Plan

Rationalizing Demand for the plan

• Re-examining safety stock drivers

• Reducing safety stock lead times

• Keeping safety stock only at the lowest possible level

• Converting Safety stock to transient

Reducing Safety stock levels

• Re-configuring LPs to reduce ending material

• Running plan optimized for cost reduction

Changing Objective for the Plan

• Lot for Lot based Planning

• Reducing the planning Horizon

• Using Order Modifiers

• Reconfiguring Planning inventory points (PIP)

• Configuring the engine for Make to Order scenario

• Reducing Release Time Fence

Control Starts

Page 14: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Supply Chain Planning

• Using Shipping Receiving calendars to minimize freight cost

• Using Component Substitution

• Use alternate Resources/Routings & sourcing

• Using Partial Demand Satisfaction Functionalities

Finding cheaper alternatives

Planning Toolbox

ASCP Advanced Features

ASCP Rule based Optimizer

ASCP Linear Programming Configuration

Planning Data Analyzer

PSI Balance – Workbench for Planners

Page 15: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Page 16: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Procurement

• Using supplier level order modifiers for ASL

• Reducing the order size

• Use Vendor Managed inventory (VMI)

Controlling material inflow

• Use available supplies with alternate suppliers

• Use RFQ to get better quotes beyond approved suppliers

Evaluating your supply base

• Use self service Requisition modules

• Use Pay on receipts and automatic release

• Use EDI for Purchasing documents exchange

• Using supplier collaboration / LiveShare/ e2Open to get real time information from the supplier

Applying automation

Page 17: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Procurement

• Implementing stricter PO approval/ control mechanism

• Use budgetary control while buying

Controlling the process

Purchasing Toolbox

Oracle Purchasing Features

3rd party integration software

Page 18: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Shop Floor Management

• Applying right Order modifiers

• Re-examining Planning Time Fences (PTF)

Reduce Order size

• Using Automatic WIP transaction

• Good costing & variance reporting

• Using Outside processing (OSP) to represent outsource work

• Automatically Supporting master data ( Routings/Co-products) using supplier/MES data

Automation

• Outsourcing for Automating & maintainingthe transactional data

BPO

Reducing

exposure to

inventory

Minimizing

Transaction

&

Administrati

on cost

Page 19: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Shop Floor Management

Shop Floor Toolbox:-

Shop Floor Open Interface

Advanced Reporting tools

Triniti’s supplier Integration toolkit

OSFM – OSP Features

Page 20: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Page 21: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

• Payments thru EFT

• AP Invoices thru Pay on Receive/EDI - AR invoices thru EDI

• Receipts thru EDI

• Statements / Dunnings as per requirements

• Automated E&O statements

• Automated Inter company transactions

Automation

• Utilizing Oracle Budgeting /Fund Check

• Using Minimum Tax strategy

• Single Day books closing

Control & Management

• Tying Cash forecasting to ASCP Plan

Cash forecasting

Financials

Improved working

capital

management

Spending funds

wisely

Informed

decisions

Page 22: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Planning Toolbox

Financial Parameters

Triniti Commercial Flow

Financial Out of box reports

• Integrate third party payment solutions

• Integrate third party POS solutions

Outsourcing

Financials

Page 23: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Page 24: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Management Reporting

• Inventory Trend report

• Supply Demand Dashboard

• Inventory Turn Key Parameters Report

Inventory Control

• High value transactions report

• Interactive E&O Report

Cash Flow Report

• Configurable to align with companies’ objective

• Planning Performance Report

• Purchasing performance Report

• Shipping Performance Report

Performance Report

• View & change simultaneously

Beyond Reports

Page 25: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Data Management

Timely

Reliable

AccurateAutomatic

Complete Create Data

Validate Data

Maintain Data

Purge Data

Page 26: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Reporting & Data Management

Data management Toolbox

PDA – Your data dashboard

Editable Viewer

OBI

Oracle Alerts

PDA: Taking the control

Page 27: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

How Actual Companies are

reacting

The Study

The Actual ResponseFrom Silicon Valley

A Study

Page 28: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Study Details

Time: January 2009

Participants: Selected Triniti Clients from Valley

Industry: Fabless Semiconductor

Methodology : Interviews /Questionnaire

Participates: Supply Chain Heads/ IT Heads

Page 29: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Participants

[D] Fabless

Semiconductor

Annual Revenue: 600M

[A] Fabless

Semiconductor

Revenue: 300 M

[B] Fabless

Semiconductor

Revenue: 300 M

[C] Fabless

Semiconductor

Revenue: 60 M

Page 30: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Factors affecting the response

• OEM/Generic

• Number of customers

• B2B Vs B2C

• Product life cycle

• Product mix - High value/Low value

• Size

Page 31: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Impact of Economy

Sales Growth

Cost/

Risk

Fabless

C

Fabless

D

Proactive

Shift to low cost

Maintaining

low cost

Less affected

by economy

Focus on

customer relations

Normal economy Current economy

Fabless

A

Fabless

B

Sales Growth Sales Growth Sales Growth

Page 32: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Areas of Improvements

Page 33: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Concentration

Reducing Cost

Reducing Risk

AutomationControl

Out-sourcing

Fabless C

Reducing Cost

Reducing Risk

Automation

Control

Increased Sales Focus

Out-sourcing

Fabless DFabless

C

Fabless

D

Fabless

A

Fabless

B

Reducing Cost

Reducing Risk

Automation

Control

Reducing Cost

Reducing Risk

Automation Control

Page 34: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Analyze your business

changes

Choose the right tools

So what do I take from here?

Choose the right partners

Align your system to

support your business

objectives

Page 35: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Triniti CorporationThe Global Solution Provider

Page 36: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Page 38: Norcal Oaug Amit Sharma Triniti

Triniti Products Suite

Demand

Planning

Order

Management

Supply

Chain

Planning

Procurement Mfg Finance MgmtData

Management

Triniti

Forecast

Manager

Demand

PrioritizationTriniti PDA

Auto Invoice

MatchingTriniti Lot

eDapter

Triniti

Commercial

Flow

Triniti KPI

Reports

Triniti

Product

Modeler

Automated

Shipping

Application

Output PDA

PSI Balance

Triniti Lot

Starter

Inter-

company Txn

Analyzer

Triniti Viewer

Triniti

Routing

eDapter

Delay

Delivery

Analysis tool

Triniti Die

ManagementTri2 TTT

Triniti Plan

Pre-

processing

Page 39: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

The missing area: The IT Cost

• Realizing that there is a demand

• Enter the demand in smallest possible lot size

Rationalizing Demand

• Don’t pay for Idle hours – Pay for Results

• Zero Recruitment overhead

• Zero Negotiation overhead

• Zero Liability

• VMI – Vendor Managed Intelligence

Supply – Pay on Use

• More than 20 Plug in play products on top of oracle E-business suite

• More than 250 out of the box reports to help you run & control your business

• Web 2.0 tools to manage the communication

Collaboration & Automation

Page 40: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

So if this is how you felt about today’s economy!

Page 41: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

We can make it

look like

This !

Page 42: Norcal Oaug Amit Sharma Triniti

E N A B L E R S O F T H E V I R T U A L E N T E R P R I S E

Together .. we can make it work

Contact Info :

[email protected]

[email protected]

21-Jan-2009