Logistics

Oracle Logistics Know More. Do More. Spend Less. Logistics Management At-a-Glance Source Planning & Execution • Network Design, Carrier Contracts • Carrier Selection, Freight Rating Destination Storage • Resource & Space Utilization • Pick, Pack & Ship Tracking • In-transit Shipment Status • Event Management, Notifications “Forward-thinking manufacturers use logistics strategically to reduce safety stock levels and improve customer service – and hence profits – through better information. Bottom line, logistics is a new game, and the old rules simply do not apply.” - Research Analyst, Logistics Resource Mgmt Executive White Paper Business Pressures Customer Expectations • How do I improve the speed and visibility of shipments? • How can I improve global order promise accuracy? Variable Demand • How do I account for higher volume from Internet selling? • What adjustments do I make in planning for mass customization? Planning & Execution Planning & Execution Storage Storage Tracking Tracking Destination Destination Source Source Increased Complexity • How can I manage product proliferation? • How do I balance global supply and demand to ensure on-time delivery? Margin Pressure • Where can I reduce costs to maintain competitive prices? • How do I differentiate my logistics offerings? Operational Challenges Your Company Planning Execution Carriers Warehouses Customer Fragmented Communication & Visibility Manual Processes Multiple, Non-Integrated Systems x Expediting and missed shipments A Need for Change Leading Business Trends • Fulfillment Processes Integrated with Partners • Streamlined Material Flow (e.g. Cross-Docking) • Mobile Solutions for Increased Visibility/Passive Tracking • Consolidation & Outsourcing of Shipping Activities • Reverse & Service Parts Logistics Management Logistics Management Opportunities On-Time Deliveries Improved Capacity Utilization Warehouse Labor Hours Direct Transportation Spend Total Inventory Shipping Errors 10-20% 5-10% 10-30% 5-25% 5% 80-100% Lilly, Intermec, eSync, Tompkins, Meta Group, Telia Networks How Oracle Delivers Oracle: Complete E-Business Suite Maintain Service Fulfill Make Procure Logistics Management All Product, Customer, & Supplier Information Finance HR Projects Automate Key Internal Business Processes Extend Automation to Your Trading Partners Drive Continuous Improvement with Real-Time Intelligence Develop Market Plan Order Sell Oracle Logistics Solution Global Customers Carriers / 3PLs Collaboration & Event Management Inbound Supply Source Plan Rate Book / Manage Pick & Tender Wrhs Label Pack & Ship Track Settle Integrated Planning & Execution Continuous Improvement On-Time OnPerformance Customer Satisfaction Carrier Analysis Outbound Demand Destination Oracle Logistics Solution Dimensional Considerations Time Dynamic Operational Tactical Strategic Facility Local Area Place Domestic International Logistics Management Mode Truck Rail Air Ocean Outbound Inbound Flow Intra-Org Returns Oracle Logistics Solution Enables You To… Integrate Planning and Execution Collaborate with All Trading Partners Streamline Global Shipments Drive Continuous Improvement Integrate Planning and Execution Seamless Flow of Information Strategic e.g. Distribution Network Network Design e.g. Performance e.g. Planned Shipments e.g. Load Plans Supply & Demand Planning Transportation Planning* e.g. Shipment Schedule e.g. Dock Scheduling e.g. Load Confirmation Transportation Execution Warehouse Management e.g. Actual Shipments e.g. Shipment Exceptions Event Management Operational Minutes Hours/Days e.g. Delivery Confirmation Weeks/Months Quarters Years * Coming in 11i.10 Minimize Inventory… Provide Single, Consolidated View of All Inventory • Provide inventory visibility In-Transit – – – In-transit inventory At trading partners Between operations • Enable postponement Warehouse Consolidated Inventory Status – Optimize inventory location (manufacturing, distribution centers, central warehouses) • Plan for demand and supply WIP / Planned Production variability …While Maximizing Service Levels Improve Customer Satisfaction • More Accurate Promise Dates – In-Transit – – Warehouse Promise orders based on material availability; supplier, manufacturing and transportation capacity Allocate supply & capacity by channel, customer or product Enable Capable to Deliver Consolidated Delivery Status • Increase Delivery Efficiency – – – Minimize expediting charges Eliminate manual transfer processes Improve warehouse pick and carrier delivery accuracy WIP / Planned Production • Proactively Respond to Exceptions Optimize Asset Usage Leverage All Assets to Reduce Operating Costs Warehouse Space Vehicles Slot based on space utilization People Deliver using full truck loads Capital Reduce manual labor Reduce capital invested Oracle Logistics Solution Enables You To… Integrate Planning and Execution Collaborate with All Trading Partners Streamline Global Shipments Drive Continuous Improvement Logistics Collaboration Share Information Real-Time with Trading Partners Your Company Capacity Rating Book Dispatch Track Invoice Carriers / 3PLs Customers Order ASN Track Payment Deliver Schedule Track Logistics Collaboration Reduce Uncertainty with Improved Visibility • Increase delivery status visibility • Improve customer service with better order promising • Decrease in-transit and delivery issue response time • Reduce planning cycle time and revisions • Reduce tender rejections Multiple Collaboration Methods Drive Lights-Out Connectivity Web • Online portal access for all trading partners • Secure remote access from any location XML • Support for OAGI XML standards • Secure, guaranteed, one-time only delivery • Trading partner specific data mapping EDI • Support for industry standards (X12, EDIFACT, etc) • Partnerships with major EDI translators Email • Interactive, easy access, no integration • Notification of activity on business documents Supply Chain Event Management Exception Monitoring and Notification Customer • Reduce communication latency Notifications and Corrective Action – – Notify all tiers simultaneously Get visibility to fulfillment, purchasing, inventory, and manufacturing events Identify exceptions faster Automate exception handling • Reduce expediting costs – Carrier Delay Shipper – • Reduce inventory – – Provide real time inventory visibility to suppliers Enable Vendor Managed Inventory Automate replenishment process • Improve fulfillment cycle time – Oracle Logistics Solution Enables You To… Integrate Planning and Execution Collaborate with All Trading Partners Streamline Global Shipments Drive Continuous Improvement Cost-Effective Global Deployment Think Locally, Act Globally • Deploy and manage on a single global instance • Support with single worldwide organization • Support for statutory and customary local requirements • Multi-lingual, multi-currency, multi-org, multi-national capabilities - 30 languages, all installable in same unicode instance Support International Trade Management Content via Standard Partnerships Compliance • Enable denied party screening • Provide embargo license detection • Identifies boycotts Benefits • Ensure regulatory compliance • Minimize government audits Export Screening Export, Import Documents • Prepares standard paperwork for shipping regulations (e.g. customs clearance paperwork) • Eliminates costly delays • Ensures on-time deliveries Oracle Logistics Solution Enables You To… Integrate Planning and Execution Collaborate with All Trading Partners Streamline Global Shipments Drive Continuous Improvement Drive Continuous Improvement Improve Performance Through Integrated Intelligence Establish Targets Perform Transactions Measure Results Logistics Plan Exceptions Adjust Plan Notifications Out of Tolerance? Daily Business Intelligence Real-Time Access to Complete Business Information What percentage of outbound shipments are delivered What is my variance in cost How are my expediting on-time? per shipment? costs changing? Which carriers are providing the best cost and service? How are inventory turns and quantities changing? – Manage By… – – Objective: Set institutional targets Fact: Provide performance-based metrics Exception: Continuously evaluate performance Warehouse and Transportation Intelligence*: Timely, Accurate, Relevant Flexible Time Periods Flexible Comparisons Real-Time RealResults • Daily updates on key performance indicators • Actionable information on savings and incremental revenue opportunities Links Performance Measures Reports • At a glance: - Graphs - On-time departure and delivery, cycle time Shipping cost / weight Inventory quantity, turns, and accuracy Pick-to-ship cycle time Warehouse labor costs * Coming in 11i.10 Oracle Logistics Solution Key Capability Summary Network Design • Define all characteristics of the distribution network • Specify details such as lanes, distribution centers, etc. • Supply and demand planning across network • Transportation planning including load planning, mode / carrier optimization, load configuration • Freight rating, automated mode/carrier selection • Load tendering, shipment pickup requests • Global track and trace, settlement • • • Automated, tailorable warehouse functions (e.g. pick, pack) RF barcoding support Advanced inventory management capabilities Supply Chain Planning Transportation Execution Warehouse Management Event Management • Monitor shipments • Handle exceptions and notify all trading partners Oracle Logistics Solution Integrated supply, demand, and transportation planning with transportation/warehouse execution Real-time information sharing, event management Integrate Planning and Execution Collaborate with All Trading Partners Single global instance, international trade management Streamline Global Shipments Integrated performance measurement and analysis Drive Continuous Improvement Oracle Logistics Products Maintain Finance HR Service Fulfill Inventory Management Warehouse Management Mobile Supply Chain Applications Transportation Logistics Intelligence All Product, All Product, Customer, Customer, & Supplier & Supplier Information Information Projects Make Procure Develop Market Plan Order Sell Evolution of Oracle Logistics Current Differentiators… …New with 11i.9… …Coming in 11i.10 • Built-in, not bolt-on - RF/mobile • VMI & consigned inventory technology & transaction • Task & labor plng control board integration • Delivery consolidation by • Flexible rules-based processes locator and / or LPN • Configurable material flows • Cluster picking & WIP picking • Inbound logistics – receiving, • eAM component picking inspections, directed put-away, • UPC & smart barcode support cross docking, ASN • Single mobile UI for all • Outbound logistics – dock receiving transactions assignment, pick wave selection, picking methods, cartonization / packing, shipment execution, trip & delivery planning • Advanced inventory mgmt – container & LPNs, lot/serial genealogy, status, Kanban • Reverse logistics – RMA receiving, supplier returns, refurbishment & recycling • Configurable picking & streamlined shipping UI’s • RFID-based transactions • UCC 128 / UCC 14 support • Work-plan based put-away • Catch weight support • Packing workbench • Over picking & bulk picking receiving transactions • Inbound transport logistics • Additional material handling • Freight payment & audit equipment integration • Delivery consolidation • Simplified rules engine def’n • Truckload rating and examples library • Transportation planning – load • Load tendering consolidation, continuous • Online tracking of ship status moves, automated mode and • Carrier selection & freight rating carrier selection • Automated shipping processes • International drop shipments • Non-conformance mgmt • Logistics-related analytics/KPIs The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality. Superior Architecture Foundation: Common Data Model A Single Source of Truth Logistics Purchasing Store all data in a single database Finance Common Data Model (9i Platform) Manufacturing Consolidate data from multiple systems Eliminate need for integration and redundant systems Scale to meet growth demands Planning Inventory Contracts Service Modular Architecture Implement Based on Your Business Priorities Implement by Business Flow – Start with one flow, demonstrate initial success – Add more flows to expand business coverage – Support changing business needs Time Flows are Seamlessly Integrated – Replace disparate systems – Eliminate data synchronization – Decrease time and cost to implement Tailorable Architecture Workflow Driven Business Rules • Flexible drag and drop interface • Workflow driven processes with common engine • Rules-based architecture requires no customization • Open APIs for extensibility Lower Total Cost of Ownership (TCO) Run on a Single Global Instance Roles: Roles: App Admin DB/AS Admin Sys Admin E-Business On Demand Needs: Needs: Availability Security Performance Change Problems You Manage: Oracle Manages: 50% Lower Cost 50% Better Svc Core Competence Predictable Cost Consolidate Data Centers and Databases HW Admin Low Cost Linux Hardware 3x faster, 5x cheaper Easy to Automate en Mass Highly Reliable Standardized Open Integration Platform • Business events infrastructure • Industry standard protocols • Centralized integration repository Oracle’s Experience with Linux Production midtiers Production DB Demo environments Development Outsourced Customers 100% Linux RAC Cluster (Unix) 100% Linux 90% Linux 70% Linux Simplify B2B Integration, Application Connectivity, and Process Management Customer Success A Few Logistics Customers American Power Conversion Corp • $1.4B world leader in IT equipment power protection – 16 manufacturing & 25 distribution sites worldwide, serving 120 countries Order Mgmt / Shipping, Manufacturing, Purchasing, Planning, Financials, HR Adding Mobile Supply Chain Apps, WMS, Configurator Upgraded from 10.7 to 11i Consolidated 13 systems into a single global instance 3200+ users (700 concurrently), 3600 order lines/day across 50+ organizations at 10 sites “Having an integrated set of application modules in a single instance…you get a global perspective in one place in real time.” -- Lisa Sipe, CIO, APC • Live on 11i -- single data center in Rhode Island – – – – – Integrated order/shipping info to reduce fulfillment cost/time Leveraging global ATP to improve on-time delivery performance Reduced raw material inventory by 56% $345M leader in high-performance enterprise Storage Area Network systems – – – 950 employees across the U.S., Europe and Asia Manufactures and markets high-performance switching equipment and heterogeneous network mgmt software Replaced Siebel and SAP with Oracle Warehouse Management, Configurator, Order Mgmt, Discrete Mfg, Purchasing, Financials, TeleService, Depot Repair, Service Contracts Projects a five-year cumulative ROI of 352% on Oracle E-Business Suite implementation Support complex ‘configure to order’ fulfillment process Live on 11i – – – On-time shipments increased from 79% to more than 97% Reduced total inventory 75% • Leader in wireless communications products and services – Over 6,000 employees at 40+ facilities in 18 countries Order Management, Warehouse Management • Currently implementing 11i – “Using Oracle WMS business based rules engine will ensure a rapid, low cost implementation since we do not have to customize it. The flexibility to match the way we work in a wireless environment, and the containerization of product represents a significant workload reduction.” – Tom Fisher, VP Information Technology Expect significant workload reduction and flexibility Predict rapid, low cost implementation without customizations Guided by Our Customers Logistics Customer Advisory Board Abbott Labs Agere Agilent Alcoa Dana Donaldson Esco FEMSA/Solistica Hafele IKON Israeli Air Force Knouse McGraw-Hill Millipore Pella Qualcomm Seagate Tektronix Toshiba (TABS) WC Bradley (Charbroil) Summary Oracle Logistics Solution Integrated Planning and Execution Trading Partner Collaboration Streamlined Global Shipments Continuous Improvement Know More. Do More. Spend Less.