Industrial Manufacturing Heavy Equipment & Machinery Order ... · Industrial Manufacturing Heavy Equipment & Machinery Order Capture and Fulfillment Solutions ... higher-quality

Industrial Manufacturing Heavy Equipment & MachineryOrder Capture and Fulfillment SolutionsPresenter’s NamePresenter’s Title

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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement

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• Leadership in Heavy Equipment & Machinery

• Innovation in Industry Specific Solutions

• Results Achieved by Oracle Customers

Agenda

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Oracle’s in Heavy Equipment

& MachineryDid You Know?

8 of the top 10 Oil & Gas equipment companies run Oracle Applications

9 of the top 10 Fortune’s industrial & farm equipment Manufacturers run Oracle Applications

8 of the top 10 Industry Week’s leading machinery manufacturers run Oracle Applications

7 of the top 10 construction equipment manufacturers run Oracle Applications

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Challenges We’re Hearing….

Revenue Growth “With the much of the cost-cutting already done, how can I grow top-line revenue to increase profits?”

“80% of the world's top corporate CEOs declared that their primary objective has shifted from cost-cutting to revenue growth.”

IBM BCS, The Global CEO Study

“Pure and simple, lean is reducing the time from customer order to manufacturing and delivering products by eliminating non-value added waste in the production stream. The ideal of a lean system is a one-piece flow. A lean manufacturer is continuously improving in the direction of that ideal.”

“How can we implement Lean more effectively to improve margins in a complex product environment?”Eroding Margins

James Womack, “Lean Thinking”

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Challenges We’re Hearing….

Rapidly ChangingCustomer Demands

“How can we build a more responsive supply chain in a rapidly changing market?”

“Market leaders all have supply chains that are more responsive to customer demand.”

Yossi Sheffi, MIT, in the Economist, June 17, 2006

“Many discrete industrial organizations are finding great value in aftermarket services, including installation, after sale services, spare parts, warranty, and repair. Yet many other organizations fail to recognize the potential benefit this business can bring in revenue growth, profits, customer intimacy, and operational excellence.”

“How can we expand high margin aftermarket support opportunities?”

AftermarketGrowth

Jane Barrett, Eric Karofsky AMR – Jan. 2007

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Agenda

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Simplify Order Capture and Fulfillment

Requirement Oracle Capability The Oracle Difference

Optimize delivery of complex products with high transportation cost

TransportationManagement

World-class transportationplanning & execution

Improve channel performance through enhanced collaboration

Partner Relationship Management with Configurator/Guided Selling

Integrated best-of-breed configurator with a single set of rules for all user interfaces across all channels

Manage complex configured products throughout the order cycle

Configure to CashMost complete suite of capabilities to optimize configure to cash flow

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UnifiedChannelsUnified

Channels

Distribution

Telesales

Direct Channel

Web Channel

ProductivityProductivity FlexibilityFlexibility Analytics

InternalDepartments

InternalDepartments

Channel Manager Dashboard

Performance Management

Channel Process

Design Wins

Channel Tools

Templates & Multi-Channel

Complete and Accurate Information (360)

Sales/Contracts

Marketing/Pricing

Supply Chain

Finance

Receivables/Payables

OrderManagement

CustomerData

Partner Relationship ManagementImprove Channel Performance Through Enhanced Collaboration

RecruitRecruit SellSellManageManage MarketMarket MeasureMeasureSettle/Settle/CompComp

Segment & Personalize

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Sal

es C

hann

els

Sal

es C

hann

els

Tele Sales

Partners

Field Sales

Web Sales

Your Organization• Collaborative team selling• Customer and contact intimacy• Revenue maximization• Effective channel conflict mgmt

Your Customers• Consistent, higher-quality

experience across all channels• Self-service access and visibility to

new products

Your Partners• Up-to-date information access• Consistently support best practices

at all points of contact

Collaboration G

oalsC

ollaboration Goals

Coordinate Information Across ChannelsSeamlessly Share Information with Key Participants

• Customer• Products• Campaigns• Prices• Configuration• Approvals• Quotes• Orders

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Create & Configure

Order

CreateCampaign

Create Lead / Opportunity

Configure & Create Quote

GenerateForecast

Check Availability

Schedule

Invoice

Plan, Ship and Track

CR

M –

Cam

paig

n to

Ord

er F

low

SCM

–O

rder

to C

ash

Flow

Web Customers:• Customers• Partners

Partners:• Mfg Reps• Contractors

Sales:• Cust Svc Reps• Inside Sales

Guided Selling

Guided Buying

Configurator with Single Set of RulesSupport for Multiple Sales Channels

CommonCommon

ConfigurationConfiguration

ModelModel

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Channel Manager DashboardProvide Insight into Partner Channel Activity

• Key sales metrics and performance indicators

• Comparisons to prior year / quarter

• Links to workflow activities

• Instant visibility to partner performance

- YTD / QTD pipeline- Close rate- Access to

transaction detail- Trade funds

management

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COMPANY OVERVIEW$9B global diversified manufacturer, based in Hamilton, BermudaMajor brands include Bobcat, Club Car, Hussmann, Dresser-Rand, Thermo King, Schlage, and Kryptonite

CHALLENGES / OPPORTUNITIESManage sales and service through both direct and reseller channels via one integrated solutionShare customer information across its 30 operating units and 2,600 reps

SOLUTIONOracle’s Siebel:Call CenterOrder ConfiguratorPricingPartner Relationship Management

CUSTOMER PERSPECTIVE“Sales reps can now configure a product while on-site with a customer. Our customer order managers can then quickly check the order and push it directly to our manufacturing system. This process saves a great deal of time and has resulted in improved order accuracy.”Robert Martens, Director of CRM, Ingersoll Rand

RESULTS• Increased revenues by $6.2 million in

one year from cross-selling• Improved sales process by

automatically pricing configured orders and generating proposals

• Improved sales productivity and speed of service

Ingersoll Rand Increases Cross Sell Revenues by $6.2 Million

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Configure to CashManage Complex Configured Products Throughout Order Cycle

Forecast & Plan

Design

Configuration(Product and Pricing)

Opportunity Definition

Available to Promise

Schematics and Drawing Generation

Configured Quote

AutomaticOrder Creation

Match

Automatic Config Item,Bill & Routing Creation

Automatic SupplyOrder Creation

Manufacture & Reserve

Pick and Ship

Needs Assessment

Populate InstalledBase

Update Sales and Service Contracts

Customer Initiates Service Request

AssignField Tech

InitiateRMA

Define Service Rqmt And Dispatch Work

Repair &Debrief

Receive& Repair

FlowSchedule PO Work

OrderInternal

Req.

= OM & Logistics = Mfg= Maint. & Service

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Configure Complete, Complex SolutionsDynamically Configure Products Plus Services

Solution-Based Modeling• Enable the dynamic

configuration of systems at run-time

- Build complex model structures- Add, delete, and individually

configure sub-components- Connect sub-components (rules

are applied only when connection is made)

• Simplify maintenance of configuration models

- System models built on re-usable model components

- Component-level plus system-level rules ensures that solution will work

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract17

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BOM Model

Pre-Configured New Item “A”

Available for Order

Pre-Configured New Item “B”

Available for Order

Config “A”

Config “B”

CommonConfiguration

Model

UpdatedSales Catalog

• Derive new product from existing designs

• Add commonly requested configurations to standard catalog

• Forecast and stock common configurations

• Enter orders for stock configuration, or match based on models and options chosen

Auto-create Items, BOMs and RoutingsPre-Define Items for Frequently Used Configurations

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• Streamline Pick Process with Automated Task Management

- Match skills and equipment to tasks- Dispatch tasks to wireless device- Perform task sequencing to speed

pick process

• Perform Complex InventoryTransactions via LPN Support

• Accelerate Warehouse Material Flow Through Cross-Docking and Direct Ship Processes

• Support Compliance Labeling of Shipments with Numerous, Flexible Formats

Integrated Warehouse OperationsEnhance Pick Pack and Ship

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Hitachi Reduces Product Time to Market

COMPANY OVERVIEWSales, Manufacturing & Service for construction machinery & transportationLargest manufacturer of hydraulic excavators in the worldFounded 1949, HQ: Tokyo, Japan50 models offered; half-ton to 500+ ton ultra-large lines13,000+ employees; 84 companies

CHALLENGES/OPPORTUNITIESMarket trends towards globalization and meeting demands of customers on a worldwide basisRapidly growing markets with various product needs in emerging areasRequirement for standardization with consistency on sales ordersDirections to offer a Total Solution for complete coverage with lower TCO.

SOLUTIONSOracle ConfiguratorOracle iSupplier PortalOracle Order Management

CUSTOMER PERSPECTIVE“Using “Best Solution Partner’ as our brand concept (with Oracle EBS), we will undertake an intensive effort to make each employee around the world as much a part of the brand as our products…The business environment within which our group operates is undertaking dramatic change. We see this change as an opportunity and are committed to increasing corporate values by investing actively in our future growth with improving results.”2006 Annual Report, Hitachi ConstructionRESULTS• Improved information availability in the

sales process for configurations Reduced product time-to-market

• Out-of-the-box integration of back and front office provides superior efficiency, reliability and integrity from customer Order into the business process

• Single model deployed in Order process

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Comprehensive Transportation MgmtImprove On-time Delivery While Reducing Transportation Costs

Carriers /3PLs

Continuous Improvement

Integrated Planning & Execution

InboundSupplySource

OutboundDemandDestination

GlobalCustomers

Collaboration &Event Management

CarrierAnalysis

On-TimePerformance

CustomerSatisfaction

PlanPlan Book /TenderBook /Tender

ManageWrhs

ManageWrhs

Pick &Label

Pick &Label

Pack &

Ship

Pack &

Ship RateRate Track Track Settle Settle

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PlanningLevel

ExecutionLevel

Dashboard Level

Across……the entire supply chain: from raw materials to point-of-sale…all roles: suppliers, planners, service providers, customers, management…all phases: before (planning), during (execution), after (improvement)

Manufacturer

Customer

Consolidator

Shipper

Complete Logistics Network VisibilityBetter Logistics Decisions with Information

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Transportation Planning & OptimizationMaximize Fulfillment Service, Minimize Transportation Costs

• Plan for all in- / out-bound shipments using multiple modes (truck, rail, air, ocean)• Combine loads (consolidation) or split loads (deconsolidation) for local deliveries• Optimize container loading and fleet utilization via continuous moves

Algorithms

• Route• Mode• Timing

Optimized Decisions

View via graphical UI…

Engines & Rules

• Consolidation for: Multi-Mode, Multi-Leg, Common Leg, Multi Stop, LTL

• Multi-Tier Networks• Continuous Moves

• Service Time Calculation• Container Optimization• Itineraries & Profiles• Resource Capacity• Throughput, Rating

+

…to relate carrier selection & route optimization results

to actual execution

• Equipment• Consolidation• Service Provider

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Order / ShipmentDefinition

SelectionResults

• LTL / TL• Parcel• Ocean• Rail

Modes Criteria• Weight• Volume• Geographic

Regions

Selection Rules

Rates / ModesDatabase

• Easily compare shipment rates and capture accessorial charges• Establish carrier selection rules at customer site, customer, shipper

organization, and shipper enterprise levels• Analyze your freight cost versus charge and provide margin analysis

• Carrier• Mode• Service Level

(e.g. Next Day)• Freight Terms

Automated Rating and RoutingDetermine Optimal Carrier and Route

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• Graphical display of routing/status

• Leg specific shipment and order information

• Track costs/carrier performance

• View actual versus forecast

Real-time Visibility and AnalyticsBetter Decisions with Realtime Information

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Automated Payments and SettlementsImprove Cash Flow and Accounting Accuracy

Support Settlements & Payments Based on Plans Generated in TM or Other System

*Value-Added Tax and Non-Freight Related Charges

Carriers

Financial System

Shippers /Customers

• Allocate coststo orders & order lines for billing

• Apply appropriateGL codes based on order characteristics

• Calculate profit margin for each shipment

• VAT & NFRC*

• AR & AP Vouchers• Allocated costs

Invoices via web

or integration

Pay based on actual shipment activity and contract ratesA

uto-

Pay

Payments

Mat

ch &

Pay Match,

validate, and pay invoices; flag exceptions

Payments

Billsvia web

or integration

• Intra-company cost transparency

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Case New Holland Reduces Transportation Expenses

COMPANY OVERVIEWWorld Leader in agricultural & construction eqpt.Supports 11,000 dealers in 160 countriesIndustry: Agriculture and Construction ManufacturerNYSE listed CNH, majority owned subsidiary of Fiat S.p.A.Employees: 25,335Revenues: US $13 Billion

CHALLENGES/OPPORTUNITIESLack of shipment control (inbound and outbound)Legacy transportation systems in EuropeCost reduction opportunitiesNeed for more shipment visibility on global basis

SOLUTIONSOracle’s Transportation Mgmt

CUSTOMER PERSPECTIVE“CNH embraced an aggressive plan to insource its’ North American logistics operation and gain control of its’ global inbound transportation within a year. With the partnership of Oracle and the implementation of their OTM tool, this plan was successfully executed.”Kathy Acker, IT Director, Strategic Planning/Logistics and Supply Chain, Hitachi

RESULTS• Reduced Freight Costs, Inbound and

outbound transaction costs • Lower supporting headcount• Payment based on actual shipped weight• Supplier communications cross-flows

Shipment data (weight, supplier, carrier selection)

• Dealer destination charges• Increased Control of Carrier KPIs:

Service level, cost, quality

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Simplify Order Capture and Fulfillment Summary

• Best in-class Configurator for Complex Configured Product with single set of rules

• Provide complete integration with Operations, Service and Finance

• Coordinate multi-mode logistics across to reduce costs and improve on-time delivery

• Provide complete Logistics Network Visibility of in-bound and out-bound requirements

• Simplify Collaboration with Partners • Gain visibility of Lead/Quote activity across all

Channels• Guided Selling to simplify configuration of

Complex products

Improve ChannelPerformance

Manage Complex Configured Products

Optimize Delivery of Complex Products

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The Only Complete Heavy Equipment & MachinerySolution

PlatformPlatform

PeoplePeopleProcessesProcesses

PartnersPartners

ProvenCustomerResults

ProvenCustomerResults

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Heavy Equipment & Machinery Footprint

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Most ComprehensiveHighest RatedOnly vendor in Gartner and Forrester leader quadrants for all Middleware components.

Best-Selling••32,000+ Customers Deployed 32,000+ Customers Deployed

••70% of World70% of World’’s 50 Largest Firmss 50 Largest Firms

••$1B+ Business $1B+ Business

SOA Vendor of Choice

Source: Forrester Research ranking of Application Platform Servers, April 2005

Market-Leading Middleware Platform

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950 customers participating in Customer Advisory Boards

500 Industry & Product strategy council members

35 Fusion strategy council members

1300 participants in early customer adoption programs

425 user groups

30,000 applications customers

220,000 database customers

5000 middleware ISVs

1700 application ISVs

9000 database ISVs

30,000 middleware customers

29,000 developers, support engineers and consultants

Oracle’s People Advantage

275,000 customers

benefiting from shared innovation

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Agenda

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purchase order release efficiency improved over 700% and 800,000 items were loaded in a unified corporate catalog with Oracle E-Business Suite Procurement

Heavy Equipment & Machinery Customer Results

realized total productivity and growth benefits of $3.4Mil and reduced order processing time by 83% with Oracle E-Business Suite Order Management

gained $6.2M in incremental sales 1st year, improved sales productivity through automated pricing and proposal generation with Siebel CRM

increased service productivity; drove 50% of service requests to WebConsolidated more than 40 after-hours call centers into 1 with Siebel Service

increased Production of Plant by 33%, reduced pull sequences by 20% and reduced inventory by 23% with Oracle Flow Manufacturing

reduced inventory cost by $26M, reduced costs and increased order accuracy with Oracle Ebusiness Suite

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What Customers Are Saying….

“In our business, projects are large and extremely complicated, so high quality project management is essential to earn our customers' trust. We focused on finding a solution that provides the best business management capabilities and performance. . . that was the main reason we chose Oracle Projects.”

-- Mal-Ho Song, VP, Process Innovation Division

“As a result of Oracle E-Business Suite implementation, many processes have been streamlined. There is increased visibility, in real-time, into important business parameters. This, in turn, is contributing significantly in cost reduction” S.S.Godbole, General Manager, Projects

“We have totally eliminated the complexity of integration from the process of expanding our IT infrastructure – thanks to the built-in integration of Oracle’s E-Business Suite.”-- Chen Jun, IT Director

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The Oracle Difference

Only Oracle ….• Allows you to optimize channel performance with complete

Partner collaboration and execution capabilities

• Offers the most complete Configure-to-Order capabilities to meet the complex requirements of Heavy Equipment

• Configurator uses a single set of rules to manage the complex configurable product across all channels

• Provides integrated world-class Transportation Management and execution functionality to reduce transportation costs

Documents

Industrial Manufacturing Heavy Equipment & Machinery Order ... · Industrial Manufacturing Heavy Equipment & Machinery Order Capture and Fulfillment Solutions ... higher-quality