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Oracle E-Business Suite Supply Chain Release 12.1 Delivering Value in Uncertain Times Kaity Rasmussen Oracle Sales Consultant

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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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Supply Chain Strategy For Release 12.1

Focus on Opportunities to Achieve Rapid Return Today

Invest in Ways to Standardize and Simplify with a Global Business Platform

Downturns can more than double the likelihood that a firm significantly changes its industry ranking. In addition, firms that make it into the top quartile during a downturn sustain their premium for an average of three years.

Source: Corporate Executive Board, 2008

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Value Chain Planning Strategy For Release 12.1

•  Oracle® Demantra: •  Demand Management •  Advanced Forecasting and Demand

Modeling •  Real-Time Sales and Operations Planning •  Predictive Trade Planning •  Trade Promotion Optimization •  Deductions and Settlement Management

•  Oracle® Advanced Planning Command Center •  Oracle® Advanced Supply Chain Planning •  Oracle® Collaborative Planning •  Oracle® Demand Signal Repository •  Oracle® Global Order Promising •  Oracle® Inventory Optimization •  Oracle® Production Scheduling •  Oracle® Service Parts Planning •  Oracle® Strategic Network Optimization

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•  Oracle® Demantra: •  Demand Management •  Advanced Forecasting and Demand

Modeling •  Real-Time Sales and Operations Planning •  Predictive Trade Planning •  Trade Promotion Optimization •  Deductions and Settlement Management

•  Oracle® Advanced Planning Command Center •  Oracle® Advanced Supply Chain Planning •  Oracle® Collaborative Planning •  Oracle® Demand Signal Repository •  Oracle® Global Order Promising •  Oracle® Inventory Optimization •  Oracle® Production Scheduling •  Oracle® Service Parts Planning •  Oracle® Strategic Network Optimization

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•  Oracle® Demantra: •  Demand Management •  Advanced Forecasting and Demand Modeling •  Real-Time Sales and Operations Planning •  Predictive Trade Planning •  Trade Promotion Optimization •  Deductions and Settlement Management

•  Oracle® Advanced Planning Command Center •  Oracle® Advanced Supply Chain Planning •  Oracle® Collaborative Planning •  Oracle® Demand Signal Repository •  Oracle® Global Order Promising •  Oracle® Inventory Optimization •  Oracle® Production Scheduling •  Oracle® Service Parts Planning •  Oracle® Strategic Network Optimization + Oracle Manufacturing Operations Center

+ Oracle Landed Cost Management

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Oracle Advanced Planning Command Center

•  Provide insight to key decision makers –  Close the loop with embedded analytics –  Bridge the gap between analytics and planning

through seamless integration with operational planning applications

–  Leverage pre-built dashboards with rich content and KPIs

•  Proactively respond to deviations in performance –  Identify root cause –  Define and evaluate alternative business scenarios –  Manage execution of scenarios; assign tasks to

planners and other stakeholders

•  Reduce decision making cycle time through process automation –  Use BPEL process flows to execute planning

processes –  Configure and adapt

Enable holistic view of supply chain performance

Analytical Data

Planning Dashboards and Reports

Business scenario planning

Planning process automation

Execute scenarios

Scenario and Activity Management

Forecasting Supply Planning

Web Service enabled planning processes

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Oracle Advanced Planning Command Center

•  Translates planning data to corporate metrics •  Forward looking perspective combined with past trends •  Not a data warehouse for “rearview mirror” analysis

–  Minimal data replication (archiving/publish of select summary data) •  Available with Oracle Advanced Planning 12.1 (May 2008) and runs on

top of: –  Demantra Demand Management, Demantra Real-Time Sales and Operations

Planning, Strategic Network Optimization, Inventory Optimization, Advanced Supply Chain Planning

–  Context sensitive drill-downs

Today

Summary information

Forward looking planning information

No need to build expensive “rear-view mirror only” disconnected data warehouse

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Compare scenarios – 360 degree visibility

Pre-built self-service dashboards for comprehensive management analysis with corporate metrics

Analyze across key demand, supply, capacity, finance, and exception metrics

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Monitor S&OP performance in real time

Compare alternate scenarios

Analyze key Planning metrics

Analyze profit and loss

Analyze constrained forecast

Self service S&OP dashboard for interactive management review

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Analyze specific product categories, organizations and resource groups

Check your shipment and production trends

Compare previous run to current run exceptions

Compare previous run to current run demand and supply metrics

Self service Supply Chain Plan Analysis dashboard

Monitor operational plans

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Pre-seeded rich content – KPIs 100+ dimensions and performance metrics

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Quickly identify problem and root cause

Sudden demand spike

Resource overloaded

Increase in late shipments

Supply shortage

Proactively respond to performance deviations

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Automate planning process execution

•  Assign owners to top level process notes •  Optionally skip steps

when resubmitting

Execute and configure your planning processes with BPEL Process Manager

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Oracle Demand Signal Repository

•  Near real-time data to better sense, shape and respond to demand •  Consistent data more easily leveraged across teams and applications •  Reduced manual effort and cost

•  POS sales •  Price •  Store inventory •  Promotional plans •  Store replen. rules •  Store forecasts

Retail Store Data DEMAND SIGNAL REPOSITORY

•  Data sources centrally cleansed, harmonized and aggregated

•  Pre-built dashboards and reports •  Powerful BI capabilities •  “Sense & Respond” event mgmt

CA

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Retail DC/ Distributor Data

•  DC shipments •  DC inventory •  DC replen. rules

Other External Data

•  Retail loyalty •  IRI/AC Nielsen •  3rd party demographic •  Causal (weather,etc.) •  RFID/EPC •  IMS, NDC, EDI (867, 852),

Scripts, Pedigree •  Unstructured text

SOA

-Bas

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SALES & OPERATIONS PLANNING

SUPPLY & DISTRIBUTION PLANNING

PRODUCT LIFECYCLE MANAGEMENT

TRADE PROMOTION PLANNING & OPT

Non-Oracle Applications

DEMANTRA DEMAND MANAGEMENT DEMANTRA SALES & OPERATIONS PLN

ORACLE SUPPLY & DISTRIBUTION PLN ORACLE PRODUCT LIFECYCLE MANAGEMENT

DEMANTRA TRADE PLANNING Pre-Built Integration

Leverage demand insights to drive profitable growth

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Oracle Demand Signal Repository

Capture

Manage

Analyze

Integrate

• Adaptors to capture a variety of data types and sources • Data cleansing tools to address data quality issues

• Extensible, retailer-based data model to maintain external data at the store/SKU level

• Routines to to harmonize data across multiple data aggregation levels and hierarchies

• Pre-built category management, key account management and scorecarding dashboards and reports

• Flexible, robust business intelligence and reporting capabilities

• Pre-built integration with key Oracle applications such as Demantra • SOA-based integration with other external applications via Oracle

Application Integration Architecture (AIA)

Respond • Rules-based exception management dashboard • Automated workflow to facilitate resolution of exceptions • User-defined, event-based triggers to initiate transactions in external

applications and enable “sense & respond” capabilities

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Typical benefits of an integrated system

•  Reduce inventory investment up to 60% •  Reduce service response missed up to 90% •  Reduce obsolescence and write-offs due to end-of-life •  Reduce same-day inventory requirements •  Reduce expediting cost •  Reduce customer repeat calls and technician visits •  Improve planner productivity •  Minimize backorders during product launches •  Permanently reduce cost of system integrations

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Oracle solutions for service planning

Multi-Indentured, Repair Constraints Multi-Echelon Distribution with Repair

Complex MRO Multi-Echelon Distribution, no Repair •  Maintain, repair, and overhaul complex equipment and installations

•  Repair work order hierarchies •  Rotables and serialization •  Long range and operational planning •  Leverage Complex MRO solution, Demand

Planning, and Advanced Supply Chain Planning •  Optionally configure Demantra Demand

Management for advanced forecasting

•  Use standard parts without part condition •  Use standard BOMs and routings •  Use standard work orders for assembly and

repair •  Release new buy and assembly orders to

Execution •  Leverage Demantra Demand Management for

forecasting •  Leverage Advanced Supply Chain Planning for

replenishment

•  Distribute, replenish (catalog driven) parts •  Fair share allocation •  Rebalancing of inventory in distribution

network (circular sourcing) •  Optimize cross-network loads •  Release recommendations to Execution •  Leverage Demantra Demand Management for

forecasting •  Leverage ASCP-DRP for replenishment/

redistribution

•  Use part condition (“good”, “bad”) •  Sourcing accounts for repair at, return to •  Define serviceable products and components •  Part criticality matrix linked to forecasting

rules •  Optimize redistribution and replenishment •  Account for supersession (repair to) in

forecasting and replenishment •  Unified forecasting and replenishment UI •  Release recommendations to Depot Repair

and Spares Management •  Leverage Service Parts Planning

Right solution for the right problem

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Oracle Service Parts Planning

•  Simultaneously forecast, replenish and redistribute your service parts across your service supply chain

•  More accurately forecast your service parts –  Demantra statistical forecasting engine inside for

highest accuracy –  Account for intermittent, seasonal, and fast moving

demand patterns –  Consider supersession –  Forecast spares demand for new products

•  Optimize the replenishment and redistribution of parts across the extended service network, integrated with Service Execution

•  Enable advanced forecasting, supplier collaboration, and inventory optimization –  Manage targeted service levels, representing SLAs,

and budgets (via IO) –  Manage service contract customer demand (via

Dem DM) –  Collaborate with new buy and repair vendors (via

CP)

Key capabilities

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Regional DCs Service technicians

Central DC

Repair depot

Customers

Supplier (Repair)

Supplier (New Buy)

On-hand Consigned

Repaired In repair

•  Spares Management plans field service engineer trunk stock replenishment •  Service Parts Planning plans supply network (up-to trunk stock locations)

–  Recognizes usages from field service

Oracle Service Parts Planning

Spares Management Service Parts Planning

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Oracle’s Service Parts Planning solution

Transform your service operations from cost to profit centers

�  Simultaneously forecast, replenish and redistribute your service parts across your service supply chain

�  More accurately forecast your service parts

�  Optimize the replenishment and redistribution of parts across the extended service network, integrated with Service Execution

�  Enable supplier collaboration, inventory optimization, and advanced forecasting processes

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Manufacturing Operations Center At-a-Glance

The Foundation for Continuous

Process Improvement

Automation and Process

Control Systems

ERP Systems

Users

PLC CNC Machines

DCS SCADA Systems

Advanced Process Control

Human Machine Interface

-  Prod Sched - Quality - Cost Mgmt …

Manufacturing Operations Data Model

Role-Based Dashboards

Contextual- ization Engine

Corporate BI

Cross-Plant KPIs

Historical Trends

Plant-Specific KPIs

Real-Time Updates

Device-Generated Data

Master Data

Reference and Transaction Data

Production Manager

Plant Mgr / VP of Mfg

MES Shop Floor Communication Drivers

Manual Data

- Output - Status - Process Parameters

Extensible Attribute Framework

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Role-Based Dashboards and KPIs Deliver Performance Measures by Responsibility

•  55+ KPIs, 90+ measures, reports and alerts out of the box

•  Pre-built role-specific dashboards •  Graphical views

-  Trend charts -  Graphs -  Tables

•  Embedded best-practice calculations and KPIs

•  Analytic workflows to drive actions

•  Drill-downs into details for root-cause analysis

•  Leverages OBIEE+ •  Configurable and customizable

-  Red-yellow-green indicators

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Overall Equipment Effec2veness (OEE)

Calendar Time

Planned Available Time

Actual Available Time

Expected Run Time Actual Run Time

Effective Run Time

OEE Time

Preventive Maintenance

Unplanned Downtime

Breaks, etc.

Unscheduled breaks, wait time

Efficiency Loss

Quality Loss

Quality Losses Speed Losses

Downtime Losses

OEE and Production

Loss Analysis

OEE = Availability Ratio X Efficiency Ratio * First Pass Yield

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Complete Support for Overall Equipment Effectiveness

1. Monitor Plant OEE 2. Drill down to bottom performing equipment

3. Make sure that it’s a trend not a one-off

4. What’s causing low OEE?

5 a. Low availability- high downtime? 5 a. Low efficiency? 5 a. Low first pass yield?

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Production Loss Analysis

Effective Production Capacity

Production Loss Analysis Pie Chart

Detailed Production Loss Analysis

Typical scheduled capacity 24 Hrs Effective Capacity

~17.8 Hrs

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Real-time Operational Dashboards Track Production and Identify Potential Bottlenecks

Meeting targets for current month §  Total Cost of Production & Variance §  Labor & Resource Productivity §  Order Fill Rates & Cycle Times §  Asset Utilization & Efficiency

Performance of Current Day or Shift §  Material availability & consumption §  Capacity available & utilization §  Performance to schedule/linearity §  Equipment downtime

Line/Equipment Performance Now §  Cycle time & operating efficiencies §  Machine breakdown §  Throughput by hour §  Line status & performance

VP- Operations Plant Manager

Prod. Manager Prod. Supervisor

Operator QA Engineer

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360º View of Equipment Performance Maximize Performance of Your Manufacturing Assets

Get a 360 degree view of the equipment performance

-  Production Supervisor -  Line Manager - Maintenance Supervisor

For

•  Equipment downtime •  Mean time to failure •  Effective run-time

•  Pressure •  Temperature •  Humidity

•  Quantity produced •  By hour, shift, week

•  Quantity rejected •  Quantity scrapped •  Defects by reason code

Process Parameters

Availability

Production Quality

Production Output

•  Energy Consumption •  Emissions •  Waste generation

Green KPIs

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Manufacturing Operations Center

v  Real-Time Intelligence for Plant Operations

v  Unified Plant Data Repository

v  Integration to shop floor systems and equipment

v  Supported by Oracle Analytics Platform & Engine

The Foundation for Continuous Process Improvement

Oracle Manufacturing Hub – Key Messages

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Landed Cost Management Description

•  Oracle’s Landed Cost Management application is a new product released on EBS r.12.1.

•  Landed Cost Management enables organizations to gain insight into all of the “real” costs associated with acquiring products including broker, terminal, insurance, and transportation fees as well as duties and taxes.

•  These costs are initially estimated and then updated with actual amounts as they become known.

•  Cost methods and inventory valuations are accurately maintained providing better visibility into an individual product’s profitability and an organization’s outstanding exposure.

•  Tightly aligned with Oracle Purchasing, Inventory/Receiving, and Financials.

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LCM Simple Example Inbound Shipment

Kansas City US Port Vessel Carrier HK Port Shipment to HK

Customer

$100 $2 $3 $20 $3 $2 $140

China Manufacturing Buyer

An additional 40% is added on to the purchase price

$5 Duties

$5 Broker Fees

Total Landed Cost

Issue PO

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Landed Cost Management At-a-Glance

Procurement

Landed Cost Workbench

- Rules-Based Charge Engine

- Real-time Cost Visibility

- Estimated Cost - Actual Cost - Cost Allocation

Costing

Receiving/Inventory

AP

Landed Cost Management

Advanced Pricing for LCM

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Landed Cost Management Version 12.1 Flow

Create PO

Receive Goods & Calculate Estimated Landed Cost

Receive Invoices (Trade Documents)

Calculate Actual Landed Cost

Update Inventory Valuation & Accounting

Estimated Landed Cost Actual Landed Cost

Landed Cost Management

Create Inventory Valuation & Accruals

• Landed costs can be initially estimated, either manually or through Oracle Advanced Pricing

• Costs are updated when actual invoices are received • Support for costing at the time of goods receipt as well as

within a “pre-receiving” process

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Review Estimated Landed Cost

Line Item

Estimated Landed Cost

Unit Landed Cost Cost

Components

Freight: 10% of value of

the item

Insurance: Flat fee - $200

prorated by quantity

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Review Actual Landed Cost

The impacts to actual LC from,

Products, Freight and Insurance

Invoices

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Increase Logistics Efficiency Manage all product cost components with Oracle Landed Cost Management

•  WHAT – A flexible, rule-based system for calculating estimated and actual landed costs

•  HOW – Integrates seamlessly with Receiving to calculate and pass all estimated or actual landed costs through to Inventory, Costing and Accounting systems

•  RESULTS – Optimize product margins, visibility into extended supply chain costs, and decision support for strategic sourcing initiatives

* New Product in 12.1

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In Summary

Focus on Opportunities to Achieve Rapid Return Today

Invest in Ways to Standardize and Simplify with a Global Business Platform

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Questions and Answers

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