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Enabling Smart Supply Chain Strategies with “Beyond ERP” Approach

RathinakumarOracle SCM Edge Applications, Asia Pacific

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Agenda

Drivers for Profitable Value ChainWhy Beyond ERP ?Smart Supply Chain StrategiesOracle Solution Beyond ERP enabling

Smart Supply Chain StrategyQ&A

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3

WinnersHigher Cash Flow, Profits, P/E

• Integrated Demand, Supply, Design Chains

• Information & Value Chain Focus

• Predict-Adapt-Align PrinciplesDemand

Supply

Product

Demand

Supply Product

Demand

ProductProduct

Laggard

Leader

Leader

Op

era

tiona

l Exc

elle

nce

Per

fect

Ord

er,

Cyc

le T

imes

, To

tal S

CM

Cos

t

Innovation ExcellenceTime to Value, Return on R&D

Laggard

Source: AMR, May 2008

Demand Supply

Product

Drivers for a profitable value chain

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Why “ Beyond ERP “ ?

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The Challenges We’re Hearing

Companies spend 80% of their IT budgets just to keep the lights on

!

Shift IT Spending from Operationsto Strategic Investments

Operations

Strategic Investment

Operations

Strategic Investment

Savings

Annual IT Spend

The gap between business needs and IT’s ability to support them is growing

!

Bus

ines

s P

erfo

rman

ce Business Needs

1993 2000 2007

The gap is increasing!

IT Response

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Companies still struggle to improve these Critical KPIs – ERP alone is inadequate

Forecast Accuracy , On Time

Delivery , Speed of Collaboration

Time to Market , New Products Revenue,

ROHS/WEEE Compliance &Product Quality, Design for “X”

Target Cost , R&D cost,

Cost of Recall , Logistics Cost,

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Business Process LifecycleWhere does ERP play a role ?

Consolidate

Scale

Outsource

RetireInvent

Adapted from “Beyond the Fault line by Geoffrey Moore”

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Business Process LifecycleERP helps in Productivity probably

ProductivityCompetitive Advantage

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Ch

asm

Demand Sensing

Social CRM

CRM Loyalty

Demand Planning

Product Lifecycle

Transportation

Governance & Compliance

Supply Chain Planning

Procurement

Manufacturing

HCMFinancials

CRM Sales and Marketing

Need Collaborative ApplicationsInnovation is Outside The 4 Walls

ERPERPCOLLABORATIVE

APPLICATIONS

Maturity Path from Introduction

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Where are you in this Technology Adoption cycle ?

Early

Adopters

Early

Majority

Late

Majority

Laggards

Early

Market

Mature

Market

Saturated

Ch

asm

Differs by:

Geography

Product / Service

Industry

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How Can These Challenges Be Addressed?By Shifting the Center of the Universe!Enterprise Infrastructure CentricERP Centric

Enterprise Architecture

• Primary investment in ERP with tight integration to non-ERP processes

• Shifting investment towards• Infrastructure Platform• “Outside-in” Business Processes

• Focus on standardization • Focus on differentiation

• Driving long and expensive projects • Flexible, modular and more responsive to the needs of the business

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Supply Chain Edge Products forCompetitive Advantage

Standardize

Commoditize

12.1Industry Enhancements

9.1Integrated Talent Management

9.0Industry Enhancements

A9.2Project Based Industries

Differentiate Design

Demand

Supply

ServiceNumetrix

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Smart Supply Chain StrategiesAlign Demand,Supply & Product

Cycles

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Where Did It All Start…….? Where Did It All Start…….?

Demand Supply

Product

Focus on supply

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Where Did It All Start…….Add Applications ….! Where Did It All Start…….Add Applications ….!

Demand

Supply

ProductFocus on

supply

CR

M

PLM

ERP

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And NOW !! Demand Driven Value NetworkFrom Supply Push to Demand Driven

• Aligned and Synchronised Demand, Supply and Product Cycles

• Ability to sense and shape demand to make a Profitable Demand Response

• Embedded Innovation

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Align and Synchronise Demand ,Supply and Product Cycles

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Strategies – Demand Driven Value NetworkWhat does ERP support in this ?

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Oracle’s Vision for Customersto think Beyond ERP

Enable Innovation across Product Value Chain

Align Supply and Demand profitably with Value Chain Planning Solutions

Improve Logistics Processes with “Value Chain Execution “ solutions

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Oracle Provides Higher Value To Customer with these “Beyond ERP”

Smart Supply Chain Applications

Demand Supply

Product

NumetrixNumetrix

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End-to-End Product Value Chain

SourcingSourcing

SuppliersSuppliers

ERP/FINERP/FIN MfgMfg ServiceService

eCommerceeCommerce

CRMCRMCRMCRM

Order MgmtOrder Mgmt

Data PoolData Pool

Customer

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Product Lifecycle ManagementMaximize Profitability at each Lifecycle Phase

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Products Companies – Profits Leak Across the Product Lifecycle

RealizedMargin

PlannedMargin

Lostcustomer

loyaltySlow ramp to

volume

Lost productivity

Late tomarket

Scrap& Rework

Missed product

costtargets

High materialcosts

Quality Issues

Limited Re-Use

Delayedresponses

Part & Supplier

ProliferationExcess & Obsolete Inventory

Line outages

Increasedexpeditecharges

Product Compliance

Increased

warranty costsDisparate

Resources

Lost Intellectual Capital

QSR / QSITPart 11

Missed Launches and Ramp

Lower Product Quality

Poor Product Innovation

Unmanaged Product Costs & Risk

Unleveraged Supply Networks

High Cost of Compliance

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PLM Business Imperatives

Manage Product Cost & Risk

AccelerateProduct

Innovation

Ensure Product Quality &

Compliance

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Oracle Product Value Chain SolutionEnabling Product Data and Lifecycle processes across the value chain (design chain, supply chain and demand chain)

Concept Design Prototype Release Service EoLProduction Sales

Agile

eCommerceeCommerce

CRMCRMCRMCRM

Order MgmtOrder Mgmt

Data PoolData PoolERP/FINERP/FIN MfgMfg ServiceServiceSourcingSourcing

Design/CADDesign/CAD

Oracle Product MDM(Product Hub)

Oracle Agile AIA Design to Release PIP

Oracle MDM PIP

Oracle Agile Business Intelligence

Oracle Agile Product Portfolio Management

Oracle Agile Product Collaboration

Oracle Agile Engineering Collaboration/CAD Integrations

Oracle Agile Product Quality Management

Oracle Agile Product Governance and Compliance

Oracle Agile Product Cost Management

Oracle Product Data Quality

AgileEnterprise

PLM

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Med-Device PharmaIndustrial Retail Hardlines

Retail Grocery

Retail Softline

CPGHi-Tech F&B

Oracle Enterprise PLM Industry Coverage

Concept Design Prototype Release Service EoLProduction Sales

Product Hub – Data Governance, Data Mapping & Integrations

Product Collaboration – Item, BOM and Change Mgmt Specification Mgmt

Engineering Collaboration/CAD

Product Compliance

Product Cost Mgmt

Product Portfolio Mgmt

Formula & Recipe Mgmt

Nutritional Labeling

Supplier Collaboration

Product Quality Mgmt

New Prod Dev

Formula Mgmt

Drug Clinical

Mfg

Story Boarding

Private Label Sourcing

Customer Needs Mgmt

Industry Strategy

Mo

du

le E

xp

an

sio

n

Fabric & Trim Mgmt

Packaging & Label mgmt

LegendRed = Oracle

Blue = RoadmapGray = Partner & Future

Variant Mgmt

Product Quality Mgmt

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ERP Agnostic PLM Leadership

Cisco Apple

GSK

PhilipMorris

International

TysonFoods

Coca Cola

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Agile PLM leads with Industry Vertical Solutions

Source: December 2007 AMR Report – PLM Landscape – Evolving to Enable Value Chain

Excellence

HighLow

Vendor Focus

Aras

Arena Systems

Infor

Dassault

PTC

Engenuity

Oracle / Agile

Selerant

Siemens (UGS)

Process/Discrete

Process

Process/Discrete

Process/Discrete

Process

SAP

Vendor

Autodesk

Formulation

Formulation

Formulation

Formulation

Formulation

CAD or Formulation

Customer Needs

Management

Product Data Management

Product Portfolio

Management

Direct Material Sourcing

Collaborative Product Design

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Open Enterprise PLM Leader

Sample Agile/Oracle Apps Customers Sample Agile/SAP Apps Customers

Cisco Apple

Philip MorrisInternational

TysonFoods

Coca Cola

30% of Agile Instalbase

is on SAP ERP

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Taiwan

China

APAC Customers100 + PLM Customers

VN & LSecuremetersVMCThermaxRanbaxy

VN & LSecuremetersVMCThermaxRanbaxy

INDIA

CharteredBheringerST ElectronicsBiosensersIMISanminaFlextronics

CharteredBheringerST ElectronicsBiosensersIMISanminaFlextronics

ASEAN

Global Customers a lot ….Global Customers a lot ….

Flextronics,Sanmina,Siemens,Tyco,Jabil,Heinz, HP, Tyco Health Care,PMI etc

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Oracle’s Vision for Customersto think Beyond ERP

Enable Innovation across Product Value Chain

Align Supply and Demand profitably with Value Chain Planning Solutions

Improve Logistics Processes with “Value Chain Execution “ solutions

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Oracle Value Chain Planning Solution

Sense demand in real-time and shape for revenue growth• 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 • Shape demand via integrated promotions planning• Manage new product introductions and marketing to shape demand and maximize revenue

Profitably align supply and demand to corporate goals– Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process

– Connect financial and operational planning via integrated business planning– Quickly simulate alternate business scenarios

– Involve all key decision makers into an integrated iterative process

Improve agility and react quickly to supply chain events– Design your supply chain for agility

– Plan your extended value chain with holistic supply planning and scheduling– Quickly respond to supply chain events with event-driven planning

Continuously monitor enterprise and supply chain performance

Complete ● Open ● Integrated ● Modular

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Oracle Value Chain Planning SolutionComplete ● Open ● Integrated ● Modular

Demand SignalRepository

DemandManagement and

AdvancedForecasting

CollaborativePlanning

ProductionScheduling

Global OrderPromising

Service Parts

Planning

Trade PromotionPlanning andOptimization

Advanced SupplyChain Planning

StrategicNetwork

Optimization

RT Sales and OperationsPlanning

Adv. PlanningCommand

Center

• Single source of truth• Integrated with ERP

Deductions andSettlement

ManagementRapid Planning

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Profitably align supply and demand

* Planned for future

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AIA

AIAAIA

LegacySystems

Integrated with other Key Solution Assets

AIA

AIA

AIA

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APAC

3737

VCP customers across all industries

DiscreteManufacturing

ProcessManufacturing

Consumer Goods /

Distribution

High Tech

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We have the Best Acquired Products - VCP

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Oracle’s Vision for Customersto think Beyond ERP

Enable Innovation across Product Value Chain

Align Supply and Demand profitably with Value Chain Planning Solutions

Improve Logistics Processes with “Value Chain Execution “ solutions

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Improve on time deliveries Improve customer service Improve fulfillment & planning

coordination Reduce order cycle time Improve carrier coordination Reduce returns

Reduce freight and logistics costs Reduce stockout losses Streamline transportation systems Reduce inventory carrying costs Reduce labor costs Reduce inventory levels & carrying

costs

Reduce Working CapitalReduce Operating Costs

Increase Revenue

Increase Operating Income

Increase Capital Efficiency

Increase Volume Increase Market Share

Increase Shareholder Value

Why Logistics Matters

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From Traditional Order Fulfillment to Integrated Value Chain Execution

Order ExecutePlan Monitor Settle

Loosely Connected Applications

• Local silos of optimization

• Predetermined flow

• Manual exception handling

I N T E G R A T I O N

• Globally Optimized

• Collaborative Flows

• Flexible Business Processes

Wave PlanningAsset

Mgm

t Load Config

C O L L A B O R A T I O N

Choreographed Applications

Dock Scheduling

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Oracle Value Chain Execution VisionThe Information Driven Value Chain

Order Management & Orchestration

ServiceProduction

Integrated B

usiness Intelligence

Order Capture Solution(s)

Inte

grat

ed O

ptim

izat

ion

Transaction Integration Process Synchronization Analytics Converged Optimization

Global Trade

Fleet Mgmt

Integrated via Oracle’s Applications Integration Architecture (AIA)

Warehouse Management

Transportation Management

Automation & RFID

Labor

Quality

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Order

Global Visibility

Supply Chain Event Management

Business Intelligence (Analytics & Reporting)

Freight Forwarding and Brokerage

Plan Monitor

Fleet Management

Coo

pera

tive

Rou

te P

lann

ing

Tra

nspo

rtat

ion

Sou

rcin

g

Settle

Oracle Transportation ManagementBroad and Deep Global Transportation Platform

Execute

Con

trac

t M

anag

emen

t

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We have the Best Acquired Products – OTM

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Sample APAC Customers – OTM

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Manufacturing Distribution

Retail

LogisticsService

Providers

Manufacturing Distribution

Retail

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Facts before we Conclude • Product leadership in PLM , PIM , OTM and Demantra

• 30 to 40 % customers of PLM and OTM in SAP installbase

• More reference customers than SAP

• SAP Struggle to compete with us in the Edge Products

• 1300 + Customers in PLM , 500 + customers in OTM

• Vertical PLM products for F&B,Pharma,High Tech ,Med Dev.

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…Provides Higher Value To Customer

Demand Supply

Product

NumetrixNumetrix

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