Jeff Johnson, Managing DirectorRedGalaxy Consulting Group
“Without changing our patterns of thought, we will not be able to solve the problems that we created with our current patterns of thought.” – Albert Einstein
March 13, 2014Winter 2014 NCOAUG Training Day
Oracle Value Chain applications provide the underlying technology platform to manage your global supply chain. However, to realize the full benefits of real-time visibility of goods traversing the supply chain, integration is required with 3rd party logistics providers, suppliers, distributors, retailers, and in some cases end customers and product users. RedGalaxy will review case studies for companies who have achieved this level of visibility and discuss the benefits achieved and continuous improvement opportunities.
Outline
• Supply Chain Visibility Definition
• Current Business Challenges
• Evolution & Maturity Curve
• Supply Chain Visibility Control Tower
• RedGalaxy Point-of-View
• Discussion of Examples: Zebra Technologies
Abstract & Outline
“End-to-end supply chain visibility (E2ESCV) provides controlled access and transparency to accurate, timely, and complete event and data – transactions, content, and relevant supply chain information – within and across organizations and services operating supply chains.” – Gartner
Definition of End-to-End Supply Chain Visibility
Source: Aberdeen Group, May 2013
Growing Complexity Reflected In Numbers
Growing globally• 85% reporting import shipments• 88% reporting export shipments
Growing multi-channel complexity• 65% bypass own DCs and ship direct
via others (suppliers, 3PLs)• 45% have direct-to-home delivery
model• 65% shipping direct-to-consumer• 60% shipping to or through a
traditional DC• 45% shipping through 3PL or e-
fulfillment provider• 45% shipping through break-bulk
facility (i.e., cross dock, DC flow-through facility to either store or end customer
• 44% shipping direct-to-store• 35% shipping through a fee port,
freeport zone or transition point for customs
Massive, disruptive change in many industries• Technologies• Regulation• Political• Environmental
Increasing customer expectations • Customer requiring shorter lead
times with persistent supply lead times • Late delivery penalties • Complex supply chain dependencies • Expect same high service levels from all channels
Requirement to plan for and manage risks • Global supply chain are growing longer and more complex • Increasingly volatile business conditions• Planning horizons are shortening
Today’s Challenges Demanding Better Supply Chain Visibility
Source: Aberdeen Group, May 2013
Inconsistent communications
Siloed processes
Disjointed tools and systems
Internally focused
Lack the “Voice of the Customer”
Additional Internal Impediments
Need to optimize the numbers of trading partners,suppliers, carriers, logistics services providers (LSPs)
The need to reduce, proactively allocate, or manageinventory held at various stages in the supply chain
The business mandate to reduce supply chainexeuction costs
Increased stakeholder and customer demand foraccuracy and timeliness of inbound / outbound
shipment events
Need to improve supply chain operational speed and /or accuracy
Growing global operations / complexity (e.g. longerlead times and lead-time variability, or need to gain
visibility)
13%
15%
26%
30%
43%
45%
Top Pressures to Improve Supply Chain Visibility
Source: Aberdeen Group, May 2013
63% indicated supply chain visibility (SCV) was a high priority for improvement and another 28%indicated is was a medium priority– Aberdeen, May 2013
The demand is there. . .
Yet . . .By 2016, less than 20% of companies will be able to provide end-to-end supply chain visibility. – Gartner, February 2014
Evolution of Supply Chain Visibility
Tracking
Event Management
Sense and Respond
Basic Coverage1990s
Extended Coverage2010+
Where are my materials?Where is my order?
Is my supply chain flowing according
to plan?
How do I operate the network profitably?
Broader Coverage2000s Source: Gartner, February 2014
Supply Chain Visibility Maturity Model
Stage 1
Silos
Stage 2
Internal collaboration
Stage 3
External communication
Stage 4
Externalpartner
collaboration
Stage 5
Network collaboration
& optimization
Limited Integrated Extended Collaborative Strategic
External FocusInternal Focus
Standardize& Integrate
Extend &Communicate
Scale &Collaborate
Partner &Optimize
Source: Gartner, February 2014
Increase B2B connectivity / visibility intosupplier-side processes with suppliers, 3PLs,
trading partners
Improve timeliness and accuracy of dataexchange about supply chain transactions
Streamline processes for easier monitoring,enhanced usability, or efficiency
Improve internal cross-departmental visibilityand integration into supply chain transactions
and costs
21%
26%
40%
44%
Top Supply Chain Visibility Strategic Actions
Source: Aberdeen Group, May 2013
Gartner Supply Chain Visibility Framework
Va
lue
Ge
ne
rati
on
Many to ManyEXCHANGE
Closed-loopAutomation
Sensitivity AnalysisBI/Analytics Human
Judgment
Plan and Execute Sense and Respond
ModelingSimulation, what-if, trade-offs, optimization
Business CollaborationMulti-directional communication, process collaboration & interchange
VisibilityPresentation / UI
Technology CollaborationData objects & transactions, data integration, rules engine, events, workflow
ConnectivityArchitecture: single – multichannelP
latf
orm
/Fo
un
da
tio
n Co
llab
ora
tion
Hu
b
Supply ChainPROGRAM
One to ManyPORTAL
One CompanyENTERPRISE
Source: Gartner, February 2014
The complexity of End-to-End SCV demands a comprehensive approach
A control tower is defined as a set of integrated processes and technologies that support a seamless flow of product from the source to end consumer, regardless of global complexity, or sales and logistics preferences of customers. – Aberdeen Group, May 2013
A control tower is a physical or virtual dashboard to provide accurate, timely, and complete logistics events and data from within and across organizations and services operating supply chains to coordinate all related activities. – Gartner, February 2014
Supply Chain Visibility Control Tower
Supply Chain Operations Center
RedGalaxy Supply Chain Operations Center
SCOC Dashboard
Scenario Management
Event Monitoring
Performance Analytics
Other Execution Applications
Other Planning Applications
Demand Plan
Supply Plan
IntegratedBusiness
Plan
POS
Firm Orders
Trade Promo PlanGTM
DecisionSupport
emailEDI
WMS
Fulfilled Order
TransportationProcurement
PredictiveAnalytics
ExceptionReporting
UtilizingOBIFoundationSuite &Endeca
FusionMiddleware
FusionMiddleware
Payment
ReceiptCost
Budget
Deepak KaulDirector, Information TechnologyZebra Technologies
Zebra Confidential: For Internal Use Only
WHO IS ZEBRA?
We are a high-tech manufacturer of products and solutions that identify,
track and manage assets, transactions
and people
15
Our extensive portfolio includes bar
code, receipt, kiosk and RFID printers
and supplies, as well as real-time
location solutions
CERTIFIED
PARTNERFounded over 40 years ago
Headquartered in Lincolnshire, IL USA
Products are distributed out of 9 facilities globally
Presence in more than 100 countries
~1 billion in annual sales
Our printers and Enterprise
Connector solution allow labels
to be printed based on XML
coming directly for Oracle
Zebra Confidential: For Internal Use Only
ZEBRA’S SUPPLY CHAIN “FUN FACTS”
There are 112,000 items planned in ASCP
7 distribution / manufacturing centers on the Oracle footprint
• locations in USA, United Kingdom and Netherlands
• APAC DCs migrating onto footprint in 2013
• support product distribution, printer reconfiguration,
label converting and service
• ranging from 15,000 to 110,000 square feet in size
3 new product design centers on the Oracle footprint
We ship ~130,000 delivery lines a quarter through Oracle;
made up of over 18,000 unique items
Customer presence in more than 100 countries
16
Zebra Confidential: For Internal Use Only
ZEBRA’S ORACLE FOOTPRINT
17
Since 2007, Zebra has overhauled
its internal systems, replacing an
infrastructure that was built in the early
‘90s for a company that had different
needs and was a fraction of the
current size
Our WMS implementation is part of
a much larger program to deploy
Agile, Siebel, Oracle R12, and
the PIP Integrations to support the
Order-to-Cash and Forecast-to-Pay
processes
Zebra Confidential: For Internal Use Only
ZEBRA’S SYSTEMS MIGRATION
18
Original State, 2007
Columns Are the Business Units
Blue Indicates an Oracle Solution
Cells Represent the System / Application
Rows Are Business Function
Zebra Confidential: For Internal Use Only
ZEBRA’S SYSTEMS MIGRATION
19
The future
state is
based on
standard
functionality
and
integrations
using an
Oracle suite
of solutions
Columns Are the Business Units
Blue Indicates an Oracle Solution
Cells Represent the System / Application
Rows Are Business Function
Future State
Zebra Confidential: For Internal Use Only
ORACLE SUPPLY CHAIN MANAGEMENTAPPLICATION FOOTPRINT
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Value Chain Execution
• Inventory
• WMS
• MSCA
Advanced Procurement
• Purchasing
• iProcurement (indirect only)
Manufacturing
• Discrete Manufacturing
• MSCA
Order Orchestration & Fullfillment
• Order Management / Siebel
Reporting
• OBIEE w/ Noetix
Value Chain Planning
• ASCP
• Demantra Demand Management
• Production Scheduling
• APCC
• Demantra RTSOP**
• Strategic Network Optimization**
• Inventory Optimization**
• Global Order Promising**
• Collaborative Planning**
Reporting
• APCC
* Currently implementing
** Future Plans
Zebra Confidential: For Internal Use Only
THE ORIGINAL, STAND ALONE SOLUTION
Along with the deployment of Merlin, Zebra
also deployed our VSS solution where each
Oracle staging locator was given a digital
voice and users could look at a virtual map
to find the exact location of the locator on
the distribution center floor. Monitors were placed around
21
the perimeter of the staging area and
guided the pickers to the location of
the shipment based by having a
dedicated RFID tag for each staging
locator in Oracle.
Zebra Confidential: For Internal Use Only
RTLS INTEGRATION DIAGRAM
22
DATAB
ASE
11g
Oracle WMS Zebra RTLS/VSSOracle SOA Suite
Zebra Confidential: For Internal Use Only
RTLS INTEGRATION BUSINESS BENEFITS
23
• Reduced staged order search time from
between 2 – 8 minutes per drop to zero!
• Improved order throughput in the
warehouse, record revenues shipped first
month after go-live
• Increased achievement of shipping by
“customer promise date”
• Reduced number of orders shipped to
wrong address
• Made our CFO happy with an ROI of
109% and 5-1/2 month payback period
RedGalaxy’s Global Oracle Practice Management Team
Alex MartignagoCEO/President
[email protected](O) 312-300-2082(M) 314-603-4930
Jeff JohnsonManaging Director - ERP
[email protected](O) 312-300-2086(M) 708-267-3028
Praveen GuptaManaging Director - HCM
[email protected](O) 312-300-2084(M) 847-756-7625
Rod HeightManaging Director - Public Sector
[email protected](O) 312-300-2083(M) 773-504-1193
Ted MayoVice President - Sales
(M) 713-443-9546
200 West Madison St.
STE 1040
Chicago, IL 60606
O: 312-300-8040www.RedGalaxyConsulting.com
Our mission: to help you
meet the future by
providing transformative
technology and
delivering incredible
value at a great price.
Dan GarrettDirector - BIPM
[email protected](M) 214-415-6363