Contenu connexe Similaire à Overcoming Order Fulfillment Challenges in Manufacturing, High-Tech & Retail (20) Overcoming Order Fulfillment Challenges in Manufacturing, High-Tech & Retail1. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.1
Overcoming Order Fulfillment Challenges in
Manufacturing, High-Tech & Retail
Brad Kerr Michael Pearcy
Senior Director, Oracle Senior Manager, Capgemini
2. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.2
Agenda
Fulfillment Challenges
Order Fulfillment Survey Findings
Architecture for Order Orchestration
Best Practices
Case Studies
Q&A
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Order Fulfillment 2013 Survey
Methodology
Conducted by Peerless Research Group on behalf of Supply Chain
Management Review and Logistics Management. Sponsored by Oracle
and Capgemini.
Surveyed 589 supply chain executives in manufacturing, high-tech and
retail businesses around the globe
Summary Findings
Managing order management systems and fulfillment processes is becoming more
multifaceted and complicated
The complexity of order management systems, the ongoing challenge of keeping customers
satisfied, adhering to delivery schedules, and combating rising costs are among the major
issues companies now face
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Order Fulfillment Challenges
Acquisitions
Evolving
Business
Models
Channel
Expansion
Integration
Automation
Customer
Satisfaction
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79%
of companies have
3 or more order
capture and
3 or more order
fulfillment systems*
* Supply Chain Management Review 2013 Order Fulfillment Survey
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* Supply Chain Management Review 2013 Order Fulfillment Survey
50%
of manufacturers have acquired
another company or been
acquired in the last three years
45%
increased customer demand for
multiple channels during last 12
months
* Supply Chain Management Review 2013 Order Fulfillment Survey
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Retailers maintain
an average of
4
different types of
selling channels
Supply Chain Management Review 2013 Order Fulfillment Survey
38%
of retailers lack the
software
capabilities &
integration
necessary to offer
multi-channel
fulfillment
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Only 22%
of retailers
leverage their
store inventory
to fulfill online
orders
Supply Chain Management Review 2013 Order Fulfillment Survey
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Fulfillment – Melding Planning and Execution
Strategic Planning
Tactical Planning
Operational
Planning
Execution
Feasibility Optimality
Fulfillment
Order
Promising
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Fulfillment – Melding Planning and Execution
Strategic Planning
Tactical Planning
Operational
Planning
Execution
Fulfillment
Order
Promising
Only 1 in 3 companies feel good
about their order promising
Source: Oracle / Capgemini
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Fulfillment – Melding Planning and Execution
Strategic Planning
Tactical Planning
Operational
Planning
Fulfillment
Order
Promising
Execution
Delivery delays and resultant expediting is
the largest driver of fulfillment costs
Source: Oracle / Capgemini
… think that exception handling
needs improvement
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53%
of high-tech
companies
collaborate with
partners on
demand
forecasting
Supply Chain Management Review 2013 Order Fulfillment Survey
High-tech
companies do not
meet allocations
commitments
50%
of the time
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Web
Call
Center
EDI Internal MobileCatalog
Logistics
Ware
house
Partners
3rd
Party
Finance
Orders ,Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Siloed
Processes
Custom
Point
Integrations
Inconsistent
User
Experience
Monolithic
App
Deployment
Lack of
Standards
Increased
Inventory
Slower
Time to
Market
Increased
Time to
Revenue
Decreased
Order
Accuracy
Increased
Order Cycle
Time
Falling
Customer
Satisfaction
Today’s Environment
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How have companies tried to solve this?
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Today’s Solution Options
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
ERP
Ware
house
Partners Store Finance
Middleware
Niche
Sufficient
Technology?
Logistics
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ERP Solution Challenges
Limited Flexibility
Hard to Integrate
Master Data
Tight Coupling
ERP
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Ware
house
Partners Store FinanceLogistics
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Middleware Solution Challenges
Middleware
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Ware
house
Partners Store FinanceLogistics
Lack of Objects
High $ Implement
High $ Maintain
Not Order Aware
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Coding Required
Coupled with Legacy
Old Tech Platform
Proprietary Toolset
Niche
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Ware
house
Partners Store FinanceLogistics
Niche Solution Challenges
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So, what’s the answer?
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Architecture for Order Orchestration
Business Intelligence
Enrichment Orchestration Task Services &
Interfaces
Order Promising
Runtime Orchestration Work Area
Rule based fulfillment
process assignment
Declarative data
transformation
Automated process
planning & jeopardy
determination
Automated change
management
Rules based dynamic
integration
Dynamic data
transformation
Visibility into global
supply
Profitable to Promise
calculation
Centralized Order Tracking Visual process analysis Backlog Management
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BEST PRACTICES
&
CUSTOMER SUCCESS
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Focus on creating a consistent customer
experience across all channels
Invest in a technology platform to enable
these changes and to ease the adoption
of new business processes
Embrace multi-channel fulfillment to up-
sell and cross-sell between product lines
Best Practices for Manufacturers
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Leading Aerospace Manufacturer
• Address high operating
costs due to labor
intensive processes
• Build efficient processes in
an environment with
redundant & disparate
systems & processes
• Increase inventory turns
by improving visibility to
multiple inventory systems
• Resolve issues related to
fragmented product data
Oracle Fusion SCM:
• Fusion Distributed Order
Orchestration
• Fusion Global Order
Promising
• Fusion Product Hub
• Oracle BPM
• Capgemini
Challenge Solution
Intelligent, touch free
order routing
Seamless integration with
legacy systems via DOO
Increased visibility to
multiple warehouses using
GOP
Process driven solution
leveraging BPM
Consolidated part master
files using FPH
Results
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Collaborate with customers on allocation
commitments to key customers
Enforce these allocation commitments at
the time of order execution
Integrate these allocations into the
promise dates provided to customers
Best Practices for Automotive / High-Tech
Companies
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Oracle Fusion SCM:
• Fusion Distributed Order
Orchestration
• Capgemini
• Aging and inflexible
mainframe systems
• Desire for system
improvement over course
of global rollout
• Need for flexible system
for quick implementation
of new delivery models
• Desire to incorporate 3rd
party and partner order
fulfillment capabilities
Challenge Solution
Centralized management
of order execution process
Enables systematic rollout
by progressively replacing
legacy systems with target
solutions
Industrializes integration
and implementation of
new services
Enables the establishment
of 3rd party delivery
models with limited effort
Results
Leading Automotive Tire Manufacturer
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Make better use of all inventory assets
Consider exploiting in-store inventories
as part of a multi-channel fulfillment
strategy
Best Practices for Retailers
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•Needed a scalable
order orchestration
system to help it move
from a grocery retail
model into a multi-brand
business
• Flexible order and
delivery options
Oracle Fusion SCM:
• Fusion Distributed
Order Orchestration
• Fusion Global Order
Promising
• Capgemini
Challenge Solution
Leading UK Supermarket Chain
Enabled eCommerce
orders across brands
Provided support for
multiple delivery
methods (home
delivery, in-store &
locker pickup)
Flexibility to source
products from stock or
direct ship vendors
Results
28. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.28
Oracle & Capgemini Deliver
BenefitsFeatures
• Global view of supply
• Proactive exception monitoring/ resolution
• Single, consolidated view of order status
• Consistent process definition & execution
• Highly adaptable, flexible business
processes
• Available To Promise scenarios
• Standards based SOA integration
framework & declarative web-based admin
• Proactive jeopardy management tools
Improved Customer Satisfaction
More accurate order promising
Faster exception response
Single face to customer
Faster time to Revenue
Reduced fulfillment time
Faster time to market for product
Optimized fulfillment priorities
Lower Cost of Ownership
Increased architectural flexibility
Decreased costly expediting
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Questions &
Answers
Notes de l'éditeur Key message: Contributing to the complexities of order management processes are the multiple, disparate order capture and fulfillment systems companies operate.
This makes it difficult to see a complete picture but more importantly it prevents companies from having a single view of their customers. The way businesses have responded to the change is to apply the same approaches that worked before but with incremental improvements
Get into a price war
Increase marketing spend on traditional channels
Reduce operational and support costs
These approaches have lacked the agility, insight and differentiation needed to be sustainable in fluctuating economies and transformational market shifts
The Majority of US executives surveyed in the recent 2012 Global Customer Experience Disruptive Study by Okeeffe & Company
Stated that they need to update their company core values to include the most appropriate customer experience to all customers
And that is why customers are now fighting back.
They are leveraging these new trends to their advantage and demanding the brand relationships they were promised
C-level US Executives estimate that the potential revenue loss to their organization as the result of not offering a positive, consistent, and brand-relevant customer experience is as high as 21% of their annual revenue
YET the biggest obstacles organizations faced in regards to delivering the best possible customer experience was from lack of funding!
(2012 Global Customer Experience Disruptive Study: O'Keeffe & Company)
Bottom line…
Disruptive change, increasing complexity and ineffective execution creates an inability to grow or even sustain your business
Not only do you lose the loyal customers you had
You hurt your brand which prevents you from getting new customers
And cause your employees to be disenchanted and disengaged
The reason why businesses are failing is because the necessary transformation is hard, uncomfortable and can be complicated – so they resist and avoid it at their peril.
Results –
Centralized orchestration processes & reduced supply chain lead times
Intelligent and automated routing of orders & Decreased order entry & processing errors
Web-based parts catalog and customer portal
Product De-duplication Results –
Centralized orchestration processes & reduced supply chain lead times
Intelligent and automated routing of orders & Decreased order entry & processing errors
Web-based parts catalog and customer portal
Product De-duplication