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Oracle FastForward Flows For SCM - Analyst Briefing
1. Supply Chain Management
FastForward Flows
Don Klaiss
Senior Vice President, Supply Chain Management
Mark Israelsen
Group Vice President, Global Consulting Service Lines
2. Traditional Supply Chain
Raw Materials, Assemblies, Finished Goods
Orders, Payments
Quotes, Notifications, Invoices
Supplier
Component Distributor Customer
Supplier Manufacturer
Manufacturer / Retailer
Supplier
Information (forecasts, schedules, availability, inquiries…)
3. Supply Chain Management Goals
Lower Costs
– Reduce inventory, increase productivity
Increase Velocity
– Accelerate time-to-market and time-to-delivery
– Enable real-time visibility across the supply chain
Drive Revenue
– Create more innovative and competitive products
– Meet customer quality and delivery commitments
5. SCM Opportunity with Oracle 11i
Customers
Suppliers
Develop
Sell
Plan
Collaborative
Market Finance Assets
Projects HR Procure
Hub Subcontractors
Service
Manufacture
Fulfill
Distributors
Carriers
Automate All Processes Within Your Company
Extend Automation Across Your Supply Chain
6. How Do You Get There Fast?
Implement
FastForward Flows for SCM,
Not Point Solutions
7. What are FastForward Flows for SCM?
Roadmap for Becoming an E-Business
Integrated Supply Chain Management Solutions
– Leading e-business practices for planning, procurement,
manufacturing, order fulfillment
Closed-Loop Business Processes
– Extend automation internally and externally
Rapid Implementation Services
– Attractive for any size company
8. Why FastForward Flows for SCM?
A Rapid Time-to-Benefit Opportunity
Lower Costs
– Simplified and standardized business processes
Reduce Risk
– Fixed-price, fixed-time, fixed-scope implementation
Get There Fast
– Up and running as fast as YOU can go
9. How Do You Get Started?
It Depends…Where are you today?
Oracle Non-Oracle Non-Oracle
Customers Customer Customer
With Financials, With limited With extensive
Distribution, or legacy data and legacy data and
Manufacturing applications applications
- - -
Get there in as Start with FFF for Start with
few as 90 Days Financials move Foundation
with FFF for SCM to FFF for SCM Services move to
FFF for SCM
11. FastForward Flows for SCM
Fulfill Order to Cash
Manufacture Demand to Build
Plan Forecast to Plan
Procure Procure to Pay
12. Oracle Order to Cash
Functional Overview
Complete Business Flow
Web Store
Price Planning
Configure
Call Center Check
Availability Purchasing
Sales Tailorable,
Capture
Workflow Manufacturing
Driven Schedule
Service Process
Financials
Contract Invoice/
Release Payment Plan Warehouse/
Ship & Shipment Trans Mgmt
XML/EDI Track
Integrated
Logistics
Multi-Channel
Demand
Self-Service Order Tracking
Carrier Management
13. FastForward Flow: Order to Cash
Business Processes
Capture Generate
Inventory
Orders from Manage Credit Customer
Transactions
Channels Invoices
Enter Sales Manage Cycle
Manage Holds
Order Collections Counting
Release for Apply Cash Physical
Price
Picking Receipts Inventory
Process
Order Pick and Ship Process Period
Customer
Promising Sales Orders Close
Returns
14. FastForward Flow: Order to Cash
Business Processes
Receive,
Production
Accept or
Requisitions
Reject Material
Procure to Pay
Authorize
Manage
Supplier
for Direct
Requisition
Invoice
Materials
Issue
Generate
Included in
Purchase
Payment
Order FastForward Flow
Order to Cash
Authorize
Purchase Close Period
Order
15. FastForward Flow: Order to Cash
Components
Foundation Order to Cash Additional Capabilities
Financials Order Management iStore
Inventory Configurator
Bill of Materials Advanced Pricing
Global Order Promising
Purchasing
Shipping Warehouse Management
Mobile Warehouse Apps
Supply Chain Intelligence
Start Here… Get There in as Few as 30 Days!
Purchasing Intelligence
16. Empirix is a leading provider of integrated test and
monitoring solutions for business-critical Web, voice, and
network apps
– Empirix delivers products, services and support to over 2,000
customers worldwide
FastForward used to implement several components of the
E-Business Suite Online
– Financials, Order Management, Inventory, Purchasing in 87 days
– Bills of Material, Work in Process, Engineering in 82 days
Implemented in 87 days
Automated the Order to Cash Business Flow
17. FastForward Flows for SCM
Fulfill Order to Cash
Manufacture Demand to Build
Plan Forecast to Plan
Procure Procure to Pay
18. Oracle Demand to Build
Functional Overview
Personalization, High Quality
Demand Products
Variability Sample
Analyze
Adjust
Order
Management Mixed
Mixed
Mode
Mode
Product
Development Suppliers
Discrete/
Repetitive/ Flow
Planning Lob-based
Lob-
CTO Subcontractors
ETO
Purchasing /
MTS
Warehouse Mgmt
Process Project
Supply Efficient Partner
Variability Manufacturing Collaboration
19. FastForward Flow: Demand to Build
Business Processes – Discrete Manufacturing
Create Release
Generate and Complete
Engineering Production
Issue Forecast Work Orders
BOM / Routing Schedule
Move
Estimate Issue Work
Generate MPS Assemblies to
Product Cost Orders
Stock
Create,
Issue Material Define and
Evaluate and
Generate MRP to Update
implement
Work Orders Standard Cost
ECO
Release Perform Work
Release to Period Close
Procurement & Record
Mfg. for WIP
Schedule Operations
20. FastForward Flow: Demand to Build
Components – Discrete Manufacturing
Foundation Demand to Build Additional Capabilities
Financials Engineering Product Dev Exchange
Order to Cash Bill of Materials Manufacturing Scheduling
MPS / MRP Shop Floor Management
Capacity Quality
Cost Management Mobile Supply Chain Apps
Work in Progress Manufacturing Intelligence
Start Here… Get There in as Few as 50 Days!
21. FastForward Flow: Demand to Build
Business Processes – Process Manufacturing
Develop Release
Set, Confirm Complete
Product Procurement
Product Costs Batch
Specifications Schedule
Release
Develop Generate and
Production Inspect Goods
Formulae Issue Forecast
Batches
Run Material
Develop Process Batch
and Capacity Close Batch
Routings Orders
Plan (APS)
Assemble Update Actual
Recipe and Update MPS Inspect Goods Costs / Update
Validity Rules Subledger
22. FastForward Flow: Demand to Build
Components – Process Manufacturing
Foundation Demand to Build Additional Capabilities
Financials Product Development Configurator
Order to Cash Formula Management Product Dev Exchange
Production Planning Advanced Planning
Production Execution Laboratory Management
Cost Management Manufacturing Scheduling
Quality
Manufacturing Intelligence
Start Here… Get There in as Few as 50 Days!
23. Agility Communications is a fiber optics component
manufacturer
– Agility is the first and currently only tunable laser company to
ship production quantities to multiple customers and the first
to ship samples to more than 30 customers
Multi-site implementation of Manufacturing, Shop Floor
Manufacturing, Inventory, Order Management, Financials
Implemented Demand to Build in 31 days, Ahead of Schedule
Increased Operational Efficiencies
24. FastForward Flows for SCM
Fulfill Order to Cash
Manufacture Demand to Build
Plan Forecast to Plan
Procure Procure to Pay
25. Oracle Forecast to Plan
Functional Overview
Customer Forecast Supplier Capacity
Tier 2
Tier 1
Portal Portal
Process
Marketing Single Plan
Automation
Forecast
Sales
Forecast
Consensus
Mfg. Forecast
t = hours
Forecast
26. FastForward Flow: Forecast to Plan
Business Processes
Develop Revise and
Planning Consume Adjust Plan
Models Forecasts
Establish Simulate Plan
Collect
Planning with
Planning Data
Procedures Constraints
Collect Run Implement
Historical Production Revised
Sales Data Plan Constraints
Generate and Analyze Plan Release
Review Exception Production
Forecasts Messages Schedule
27. FastForward Flow: Forecast to Plan
Components
Foundation Forecast to Plan Additional Capabilities
Financials Demand Planning Inventory Optimization
Order to Cash Advanced SC Planning Global Order Promising
Demand to Build* Constraint Based Optimization Manufacturing Scheduling
Supply Chain Exchange
Supply Chain Intelligence
Start Here… Get There in as Few as 40 Days!
*Foundation Demand to Build required for Manufacturers Only, Distributors only need Financials and Order to Cash
28. FastForward Flows for SCM
Fulfill Order to Cash
Manufacture Demand to Build
Plan Forecast to Plan
Procure Procure to Pay
29. Oracle Procure to Pay
Functional Overview
Collaboration
RFx Quotes Portal
Auction Bids Suppliers
Self-Service
Self-
Requisitions Offers Counters
Indirect / Contracts Orders
Services / Catalogs Changes
Sourcing Ship Notices
Invoices
Approval
Production Purchase Messaging:
Requirements Order XML / EDI
Receipt
Maintenance Process Payment / EFT/Check
Banks
Requests
Automation Reconciliation Statement
Direct
Spend Procurement Supplier
Integrated Intelligence Analysis Productivity Performance
30. FastForward Flow: Indirect Procure to Pay
Business Processes
Perform
Authorize
Manage Accounts
Purchase
Requisitions Payable Period
Orders
Close
Perform
Authorize Receive Goods
Purchasing
Requisitions & Services
Period Close
Issue a Manage Import
Purchase Supplier Sub-ledger
Sub-
Order Invoices Journal Entries
Change a
Generate
Purchase Close Period
Checks
Order
31. FastForward Flow: Procure to Pay
Components
Foundation Procure to Pay Additional Capabilities
None iProcurement iSupplier Portal
Purchasing Exchange Marketplace
Payables Sourcing
Purchasing Intelligence
Start Here… Get There in as Few as 45 Days!
32. Classmates is a personal networking service connecting
over 25 million friends, family, and military colleagues
– Consistently ranked in the top 25 web properties by
Nielsen/NetRatings
– 80,000 to 100,000 new members added each day
FastForward used to implement Purchasing and
Financials as an online service
– Customer went live in just 60 days
– Applications are maintained by Oracle
Implementation completed 30 days ahead of schedule
Automated the Procure to Pay Business Flow
33. Deployment and Maintenance Options
Our Place: Hosted Environment
– Immediate project start-up
– 24 hour continuous delivery
– Available as an Online Service via a web browser
– Online maintenance
Your Place: Traditional, Local Environment
– Onsite consultants
– Onsite hardware and software
– Onsite or Online maintenance
36. Partial FastForward Customer List
Akamai Technologies McData
Agility Modo Eyewear
Blue Nile Myriad Genetics
Celox NetZero.com
Classmates Online OnSite RX
Empirix Realty One
Equator Technologies Retek Inc.
Franke USA Holdings, Inc Serta
Frontier Airlines, Inc. Sipex
37. FastForward enabled us to go live in 75 days
-- on time and on budget. With the Oracle
E-Business Suite we increased our sales
volumes by 200% with no additional staff.
Darrel Cavens
Chief Technology Officer, Blue Nile
39. FastForward Flows for SCM
Closed Loop, Modular Business Processes
Leverage Leading E-Business Practices
Reduce Cost and Risk
Rapid Time to Benefit
Notes de l'éditeur
Key activities within the supply chain are actually managed as business process flows. The plumbing that seamlessly manages this capability is the single, common schema and collaborative platform. I2 and the others will tell you that they can do all these activities, but can they support the business flows? No, not without an integrated platform.
In the new integrated supply chain, achieving these goals means mastering new skills…as noted in the slide.
If you make these changes, the benefits are significant...
So, to summarize, the internet has re-defined the operation of the supply chain. To compete and survive, every company needs a plan to become an e-Business.
Oracle Consulting, working with development, developed FastForward Flows allowing our customers to implement Supply Chain Business Flows quickly. Business Flows cross organizational and application boundaries in every organization. FastForward Flows allow you to implement our software to address common business processes from end to end rather than implementing point solutions that must be pieced together. The FastForward Flows provide an incremental approach for implementing the E-Business Suite and we have found that customers prefer to implement in phases. We’re pleased to announce 4 new Consulting offerings that allow customers to address Supply Chain Management right away
For this slide, emphasize yellow phrases as they answer the question. The White phrases support the points, but are not necessary to mention. FastForward Flows for SCM provide you with a roadmap for building your E-Business. Fast Forward Flows provide: Integrated SCM Solutions Closed Loop Business Processes Rapid Implementation This new approach allows us to move upmarket because it provides a solution that is appropriate for all companies.
The benefits our customers experience: Lower Cost - Drive efficiency through entire business operations by avoiding customization Predetermined implementations means better control over IT Costs Reduced Risk - Predictable implementations Reduced complexity Faster implementations FastForward Flows can be implemented in as few as 90 days Allows customers to realize ROI more quickly
Oracle Consulting provides services that allow companies to start building a solid foundation right away - regardless of whether they are new or existing customers. Our foundation services include: Strategic services such as E-Business Planning Session and Executive Workshops allow companies to evaluate and develop their E-Business Strategy. Tactical services include detailed topics such as: Chart of Accounts Workshop ( to set up Chart of Account segments and codes) Trading Community Architecture Workshop - (guidance for setup of prospect and customer data in a trading community model ) Multi-Org Workshop (review and application of leading practices to define the organizational structures and relationships of an enterprise within Oracle Applications)
Now for an overview of the new solutions….
We are happy to announce four FastForward Flow offerings critical to Supply Chain Management. They are: Order to Cash Demand to Build Forecast to Plan Procure to Pay
The Oracle Order Management solution incorporates: Multi-Channel Demand Complete Business Flow Tailorable, Workflow Driven Process Self-Service Integrated Logistics
First, we have Order to Cash. Walk through a few of the steps in the process or give a high-level example. Companies need to collect orders, invoice customers and ultimately collect cash. The Order to Cash flow will allow them to address the steps listed here... (Do not try to go through every step.)
Please note that Procure to Pay for Direct Materials is included in this flow.
Don Klaiss will jump in here.
Reference support for “Automated the Order to Cash Business Flow” pulled from customer success story on Oracle.com: The result was that Empirix met its target date and was running on all applications targeted for Phase 1 on January 1, 2001. The applications included General Ledger, Accounts Payable, Accounts Receivable, Order Management, Cash Management, Purchasing, Inventory, Human Resources Management System (HRMS), and Advanced Benefits. Empirix was now able to operate as an entity fully independent from Teradyne; that is, it could hire employees; order materials; book, ship, and invoice orders; pay suppliers; create financial statements; and otherwise operate on its own. Mark Key points: Empirix adopted our business processes. They implemented in 87 days AND Automated the Order to Cash process
Next, we have Demand to Build Pause
The Oracle Manufacturing solution incorporates: Efficient Manufacturing to address Personalization, Demand Variability and Supply Variability High Quality Production Partner Collaboration
Again - Here are the steps included in the process Mention a few of the steps
Starting w/ a Foundation, customers can implementDemand to Build I as little as 50 days. Given the power of Oracle applications, additional capabilities can be added at the customer’s request.
Key points: OC utilized a flow-based approach Implemented Demand to Build in 31 days - File notes: This customer is a Demand to Build - Discrete reference. I’ve highlighted 4 points that I believe are relevant. I can pursue hard facts from Hugh and Chris - please advise as to potential wording of facts From Consulting HealthCheck Report (not a marketing document) prepared by Hugh Scher; Project Manager is Chris Dixon: Goals: establish the fundamental technology and business applications infrastructure; optimize resource utilization through technology; provide flexible scalability for future growth; integrate the value chain; enable a smooth transition to eCommerce for future Business-to-Business transactions; facilitate the company's transition to a global eCommerce company fully-automate the manufacturing plant Implemented Manufacturing solution in approx. 54days (under 3 months) and 12 days under schedule Addressed disparate software tools and systems and provided an easy and cost effective ability to scale the enterprise in the future.
Next we will outline the FastForward Flow for Forecast to Plan. Pause
Oracle provides a collaborative, holistic, e-business planning process that allows you to include all of your trading partners in the planning process, reduce the number of steps in the planning process, and dramatically reduce the cycle time of the planning process
The business process allows customers to start with the Develop Planning Models step and end with the Release Production Schdule step.
Customers that Start with the Foundation that includes: Financials Order to Cash or Demand to Build can implement Forecast to Plan in as little as 40 days. Again, at customer request, we can implement additional capabilities.
Finally, the Procure to Pay FastFOrward Flow.
The Oracle Procurement solution incorporates: Process Automation across the entire procure-to-pay business flow for both indirect procurement (including services) and direct procurement Sourcing new products via RFx, auctions, quotes, bids, and counterbids Collaboration with Suppliers Integrated Intelligence captures all transactions and provides information regarding spend analysis, procurement productivity and supplier performance.
Key points: Automated Procure to Pay Business Flow Completed Implementation 30 days ahead of schedule Other file notes: Added Nielsen ranking above From Press Release: The purchasing module issues all purchase orders for the company's business partners, providing Classmates' accounting staff with one source for desktop procedures. (This could be an “Automated the Procure to Pay Business Flow” fact) Implementation completed 30 days under schedule Couldn’t dig up much more. I’ll start “smiling and dialing” on Monday.
Customers have the option to have Oracle implement, host and maintain the application at Oracle or to choose to have Oracle implement at the customer site and take over maintenance of the application.
A few of our customers who have benefited from our rapid implementation approach. (Do not read throught the names.)
One customer, Blue Nile, was able to increase sales by 200% without increasing their staffing levels. They realized a major increase in productivity with the E-Business Suite.