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.