Oracle E-Business SuiteTextile Industry

Solution

Heiner CuhlsSolutions Director

SEA

Oracle Corporation

Business Is ChangingDoes Your Business Need To Change ?

The Business Landscape

Markets Are ChangingCustomers Are Changing

AdidasAmerican Eagle Outfitters*Ann TaylorBrooks BrothersC&A BrenninkmeyerChildren’s PlaceColes-MeyerColumbia SportswearDisney Consumer ProductsDress BarnEspritFederated Department StoresFootlockerFruit of the LoomGNX/GlobalNetExchangeGander Mountain

Nine West Group*Neiman Marcus*NordstromPPRPolo Ralph LaurenRoadrunner SportSaks, Inc. ShopkoStage StoresTJX Cos*Talbot’s Inc.TargetVF Corp.Wal*Mart*Wet Seal

Yellow = Applications & Technology White = Technologie only

*Gap, Inc.GucciGuess*Gymboree*Hudson's Bay Co.House of FrazierJC PenneyKellwoodKohl’sLA GearLevy Strauss*LidsLimited Brands*LittlewoodsLiz Claiborne*Nike

Oracle’s Apparel Clients

The Textile Industry Value Chain

TextilesRow

Material To

Fabric

GarmentsFinished Products,Footwear

and Apparel

Transport Retail

Enormous Diversity

BrandProduct-

&Retail-

Marketing

The Oracle Textile / Garment Industry Template

TextilesRow

Material To

Fabric

GarmentsFinished Products,Footwear

and Apparel

Transport Retail

Enormous Diversity

BrandProduct-

&Retail-

Marketing

Industry Template

The Textile/Garment production process

Enormous Diversity

CottonRow-

material

SpinningYarn/

GreigeDyeing

WeavingKnitting

Dyeing/Printing

Fabric

FabricCutting

QualityManagement

SewingQuality

Management

IroningQuality

Management

PackingQuality

Management

Textile, technical asset based

Garment, labor based

The Garment application challenge

In every module or nothing

Order Productionplanning

Cost control

MRPrun

Shop-floor

From order entry to finished good no change to Article #

FabricCutting

QualityManagement

SewingQuality

Management

IroningQuality

Management

PackingQuality

Management

Garment

Style Color Size

Costing, Profit or Loss

In addition to standard costing of manufacturing Profit by Order Profit by Style Profit by Customer Cost tracking through manufacturing process Labor cost tracking and incentive payment Shop floor costing Costing by manufacturing process steps

Your Business

CustomerExpectations

CustomerExpectations

Cost Pressures

Cost Pressures

TechnologyRequirementsTechnology

RequirementsFierce

CompetitionFierce

Competition

Pressure today is ImmenseInside and Out

Brand, retail behavior & Industry practice

MarketOrderStyleColorSize

Order Split To ManyManufacturers

Order Split To ManySubcontractors

ATP, CTP, CTD gains credibility

narrow down the lead time, from 16 days to 5 days

ATP available to promise, CTP capable to promise, CTD capable to deliver

Gain CompetitiveAdvantage

ATP, CTP, CTD gains credibility

narrow down the lead time, from 16-20 days to 5 days

Is an MRP run possible, related to the high number ofItems and work order ?

ATP available to promise, CTP capable to promise, CTD capable to deliver

1.000.000items

10.000 work order/day

ATP, CTP, CTD gains credibility

narrow down the lead time, from 16-20 days to 5 days

MRP run in less than 18 min, any time !

ATP available to promise, CTP capable to promise, CTD capable to deliver

1.000.000items

10.000 work order/day

What makes my life complicated?

Observation at a number of companiesExternal challenges: Customer Claims

– Goods are defective– Not matching promised shipment / delivery time

Taking order “any how” not knowing the production capacity, “out of the stomach decision”

Production changes on the fly Subcontractor handling

What makes my life complicated?

Observation at a number of companiesInternal challenges: Goods receipt: Ware-house is a black box,

knowledge is with one worker Production: Except work order start and

packing, the production lines are a black box, knowledge with one or two worker/staff

Finished goods/shipping: Ware-house is a black box, knowledge is with one worker

Warehouse Organization

Introduce storage location, floor marking / identification

Anticipate and process discipline to track store away by location

Know what is where and follow principle, like FIFO

Production, make the black box transparent

Introduce simple P/O tracking by bar codes, shop floor tracking

Anticipate and process discipline to track P/O Know what is where and follow principle of

data entry in the system to achieve ATP CTP CTD

ATP available to promise, CTP capable to promise, CTD capable to deliver

Finished goods, storage location identification

Introduce simple finished-good tracking by barcode’s, shop floor / ware house tracking

Anticipate and process discipline Know what is where and follow principle of

data entry in the system to achieve ATP CTP CTD

ATP available to promise, CTP capable to promise, CTD capable to deliver

My goal: transparency, pro active rather than reactive, stay in “control”

Know my warehouse Know my production Know my shipment Reduce my lead time Gain Quality Gain Customer satisfaction Gain reliability Get more order

ATP, CTP, CTD gains credibility

narrow down the lead time, from 16 days to 5 days

ATP available to promise, CTP capable to promise, CTD capable to deliver

gain competitiveadvantage

Internal challenges

Cohesion amongst departments – conflicting goals

– Marketing – high order volume, steep delivery dates, low order size, minimal lead time

– Production – relaxed delivery schedule, infinite inventory, large order size

– Customer order change / switch on the run– Inventory and Purchasing – low stocks,

advance schedule– Subcontractor handling / controlling– Delivery complains / returns

Survival of the “Fittest”

By 2010, China’s share of the world garment exports will increase to 47% from 20% today

Less efficient manufacturers in South Asia and South East Asia, beneficiaries of the MFA quotas, will be hit hard by removal of the quotas

Harsh competitive climate

Central Bank Annual Report, 2002

What are the “Fittest” doing Concentrate on Customer -satisfaction / -loyalty

Concentrate on reliability of Quality and promised time of shipment

concentrate on moving up the value ladder by supplying niche markets; and / or moving from Textile to Garment

Opening new markets / segments due to Joint Venture

specializing in identified product categories;

linking with international fashion designers and obtaining feedback from buyers on sourcing strategies;

Introducing Supply Chain Management to their supplier / subcontractor and vendor

Central Bank Annual Report, 2002

Garment industry response

Forecast Demand for at least 2 months Centralize purchasing across all production

units Track and monitor inventory holding costs on a

group consolidated level Estimate and minimize wastage Handle value and production chain Communicate with subcontractor, ATP, CTP,

CTD Automate and implement systems that provide

online, real time information across the entire enterprise and supplier, subcontractor

Lack of Control

Obstacles to Business

Fragmented Processes

Order Mgmt Materials Mgmt

Departmental Silos

AccountsReceivable

Finance Purchasing

Accounts Payable

What would you rather do ?Business Objectives

Lower CostsReduce Inventory

Reduce Manufacturing & IT Costs

Lower CostsReduce Inventory

Reduce Manufacturing & IT Costs

Improve Cash & Financial Mgmt.Get Reports on Time

Gain Control of your Business

Improve Cash & Financial Mgmt.Get Reports on Time

Gain Control of your Business

Increase EfficiencyAccelerate Productivity & Cycle Time Gains

Enable Real-Time Visibility Across the Supply Chain

Increase EfficiencyAccelerate Productivity & Cycle Time Gains

Enable Real-Time Visibility Across the Supply Chain

Increase SalesIncrease existing sales

Process Orders Faster

Increase SalesIncrease existing sales

Process Orders Faster

E-Business SoftwareMid-Market perception

Complex, product offering is to rich

Costly to implement, 9 month or more

Failure of implementation, not achieving goals

For large companies only

Pre-configured Oracle business applications Tailored for Small & Mid-sized companies and

subsidiaries– Based in ASEA, operating/selling globally– In the garment industry

Enables business control, decision support Affordable, low risk

Preconfigured Applications

ProcureProcure

ManufactureManufactureFulfillFulfill

ServiceService

DevelopDevelop

PlanPlan

MarketMarket

SellSell

FinanceFinance

Projects HRProjects HR

MaintenanceMaintenance

ContractsContracts

E-Business SuiteMake

ENG/COSTING/ Quality

WIP/BOM/MRP

Fulfill

Inventory

Order Mgmt

ProcurePurchasing

Finance Cash

General Ledger

Receivables

Payables

Supports best practices in

Sales Purchasing Manufacturing Cash Management Inventory Management Financial Management Style, Color, Size Profitability by customer/order Profitability by product S / C / S

Make

ENG/COSTING/ Quality

WIP/BOM/MRP

Fulfill

Inventory

Order Mgmt

ProcurePurchasing

Finance Cash

General Ledger

Receivables

Payables

Processing orders is easy with Picking Tickets & Packing slips

Sell More EfficientlyComplete Order to Cash Automation

Pricing and Discounts

Give away only what you need

Sales Orders

Measure the impact of each order immediately

Shipping

Manage your shipments to optimize

stock levels and customer service

Cash Collection

Manage the collection process so you

collect as much cash as soon as possible

Reduce Purchasing CostsComplete Procure to Pay Automation

RequisitionCreate Requisitions based on planning

requirements

Purchase Order

The supervisor approves the request and it automatically

becomes a Purchase order.

ReceivingWhen the items arrive

you can receive against the

Purchase Order

PayYou control when you pay the invoice, and whether you send a cheque or electronic

funds transfer

Make with Confidence, ATP, CTP, CTD Order/Plan/Make and Deliver – knowing where it is at all times

Sales OrderMeasure the impact

of each order immediately

PlanningPlan the capacity of

the shop floor and the material required to

make it as many times per day as you

need. Be able to promise to your customers a firm completion date.

Shop FloorSee you Shop Floor Graphically. Know

Where your order is And when it will be

finished

ShipManage your

shipments to optimize stock levels and customer service

ATP available to promise, CTP capable to promise, CTD capable to deliver

Manage Your InventoryPrecise, Responsive Inventory Control

PlanAutomatically

replenish stock and identify excess stock

ReceiveControl how you receive and store

your stock

ShipManage your

shipments to optimize stock levels and customer service

Stock takeContinuously manage

stock accuracy

Control Your CashConfident, Predictable Cash Management

Cash ForecastConsolidate incoming

and outgoing cash onto one forecast

CollectManage the collection

process so you collect as much cash as soon as possible

PayYou control when you pay the invoice, and whether you send a

cheque or EFT

ReconcileReconcile your bank

statement

JournalsGet your routine

accounting automatically from sales, purchasing, stock adjustments and

bank reconciliation

Adjust

Enter additional adjustments and

allocations

ReportMonthly and annual

financial reports, plus all your taxation reporting needs

BudgetPrepare budgets for

your organizations by cost center

Know Your Financial PositionCurrent, Accountable Financials

Traditional Approach Ad Hoc Technology Purchases

Strategic Approach

Increase Business Value

Investing in IT

Scattered, fragmented infrastructure

Solve short-term needs , in-house development

Components function as one

Unified Architecture

Traditional IT InfrastructureKnow Less, Do Less, Spend More

Sales / MarketingData Mart

SCM / FulfillmentData Mart

Finance / PurchasingData Mart

Design Purchasing Sales Planning Shop Floor Financials

Reporting

TransactionProcessing

Schema 1 Schema 2 Schema 4Schema 3

Simple IT InfrastructureKnow More, Do More, Spend Less

100% Automated & Complete Business Alignment

Single Unified Database

TransactionProcessing

and Reporting

Design Purchasing Sales Planning Shop Floor Financials

Manufacturing

Material Management

Stock

Finance and Accounting

Update GL

Bank Reconciliation

Cash Forecast

Establish Budgets

Financial Reporting

Purchasing

Requisition

Supplier Negotiation

Purchase Order

Sales

Capture Order

Check Availability

Schedule Order

Check Credit

Update Inventory

Plan Inventory

Stock take

Cus

tom

er

Sup

plie

r

Accounts

CashPO

Acceptance

Goods Receiving

Match Invoice

Pay Supplier

Picking & Shipping

Invoice Customer

Collect Cash

Master Demand Schedule

Production Schedule and

Rough Cut Capacity Plan

Material Requirements

Plan

Work in Process

Forecasts

Pricing and Discounts

Get the Value Out of ITThe End of Broken Processes

1. Know More - Align business processes to function as one

2. Do More - Easy to install, easy to use, easy to maintain, easy to expand

3. Spend Less - Unify technology on a single, powerful business platform

Lowering your Costs…

Go ‘Live’ in 10-60 days Deploy on Low-cost Hardware US$ X,000

Total price US$X0,000Includes Software, Hardware, Implementation, Education, Support

The Oracle Advantage

Addresses your key Business Processes using best practices

Rapid, low cost implementation– Pre-installed, Pre-configured via a trusted Partner

Ready for Textile Industry Uses low cost Hardware Reduces your Total Cost of Ownership & above all…

Puts in your hands, the Power of Unlimited business control, at an affordable price

South Asia Textile requirements 1.Showroom & Sample Management System. 2.Color Laboratory Management System. 3.Textile Testing Laboratory Management

System. 4.Order Progress Tracking. 5.Stock Take with Bar Coding and PDA 6. Shade Band Approval Tracking  7. Extranet Access for Customer  8. Extranet Access for Supplier  9. L/C handling (Letter of Credit)

The offering

Textile Industry solution Production Transparency Subcontractor handling Fast and reliable implementation, 3 month Solution, Application, Implementation, IT-

Infrastructure Affordable price

Be ready / go live in September 2004 Project Milestones

SeptemberApril May June July August

Complete requirement study

Close Deal

Start project

Implement

Test run

Go live