You are on page 1of 41

Journey

to the Cloud
SES16241: Oracle Supply Chain

Jon S. Chorley
CSO & Group Vice President
Oracle, SCM Applica=ons Development
June 24, 2015

Copyright 2015, Oracle and/or its aliates. All rights reserved. |

Safe Harbor Statement


The following is intended to outline our general product direc=on. It is intended for
informa=on purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or func=onality, and should not be relied upon
in making purchasing decisions. The development, release, and =ming of any features or
func=onality described for Oracles products remains at the sole discre=on of Oracle.

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Cloud The New PlaUorm of Choice for Supply Chain


80% of organizations
are already using or
considering Cloud for
Supply Chain
Applications

2018

$4.4 billion

SaaS SCM Market (19%+ CAGR)


2013

$1.8 billion

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Oracle SCM Cloud Guiding Principles



Broader

Comprehensive Suite of
Supply Chain Applications
For Industrial & High Tech

Better

Faster

Exceptional
User Experience

Faster Implementation
Configurable & Extensible
Automated Upgrades

People

Technology

Idea to
Commercializa@on
Order to Cash

Plan to Produce

Source to SeAle

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Oracle SCM Path to the Cloud


Release Plan

Prior: R9
ERP: Financials, Indirect Procurement+AR, Sourcing & Procurement Contracts
Product Value Chain: Innovation Management, Product Development, Product Hub
Logistics: Transportation Management, Global Trade Management

Now: R10 (This Calendar Year)


Quote to Cash: CPQ Cloud & DOO Fulfillment on SCM Cloud)

Target is
Light Industrial and
High Tech Manufacturing

Future: R11 (Late This Calendar Year)


Order to Cash: Order Capture, Order Management, Pricing
and Configuration, Order Fulfillment (all on SCM Cloud)
Plan to Build: Discrete Manufacturing, Planning Central

Safe Harbor: The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be
incorporated into any contract. It is not a commitment Copyright
to deliver
any material, code, or functionality, and should not be relied upon in making
2015 Oracle and/or its aliates. All rights reserved. |
purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole

Oracle Procurement Cloud


A Complete Source to SeAle Solu@on
Contracts

Requisitions

Purchase
Orders
Receipts

Negotiations

Suppliers

Manage
Suppliers

Source

Contract

Purchase

SeWle

Sourcing

Procurement
Contracts

Supplier Qualica@on
Management

Supplier Portal

Self Service
Procurement

Purchasing

Payables

Procurement
Analy@cs

Invoices and
Payments

Collaborative Negotiations

Streamlined Procure to Pay

Enforceable Contracts

Supplier Qualification Management


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Oracle Inventory & Cost Management Cloud


Complete Physical and Financial Management of Goods Across the Supply Chain

Manage
Inventory

Receive
Materials

Store
Inventory
Management

Cost Inventory
Transactions

Transfer
Materials

Move
Supply Chain Financial
Orchestra=on

Pick & Ship

Cost
Cos=ng

Decrease logistics & inventory costs

Improve warehouse efficiency

Improve inventory cost visibility &


accuracy

Streamline financial & physical


material flows
Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Analyze
Performance

Oracle Transporta=on Management Cloud


Op@mize the Shipment of Goods Across the Global Supply Chain

Plan Orders &


Shipments

Source Carriers

Audit & Pay


Invoices

Plan
Transporta=on
Management

Monitor InTransit Status

Tender/Book
Shipments

Execute

Transporta=on
Opera=onal Planning

SeWle

Freight Payment,
Billing and Claims

Transporta=on
Intelligence

Reduce Freight Costs

Improve Supply Chain Visibility

Increase On-Time Delivery

Increase Logistics Efficiency


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Analyze
Performance

Oracle Global Trade Management Cloud


Accelerate
Cross-Border Trade Across the Global Supply Chain

Screen for
Restricted Parties

Classify
Products

Produce Customs
Filings & Documents

Classify
Global Trade
Management

Manage & Assign


Licenses

Determine
Trade Controls

Comply

Trade
Compliance

Customs
Management

Execute
Global Trade
Intelligence

Enforce Import/Export Compliance

Improve Supply Chain Reliability

Reduce Order Cycle Time

Lower Total Landed Costs


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Audit
Performance

Oracle Product Value Chain Cloud


Innovate, Develop and Commercialize the Most Protable Product & Services

Requirements

Ideas

Items & BOMs

Proposals &
Portfolios

Change
Management

Innovate

Develop

Innova=on
Management

Product
Development

Commercialize
Product
Hub

Improve Return on Innovation

Enforce Quality & Compliance

Reduce Development Time

Accelerate Time to Launch


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Catalogs

Innova=on Management
Manage Ideas, Requirements and PorUolio

Innova=on Idea=on:

Capture ideas from dierent sources and resources


Evaluate and create Proposals

Concept Design:

Ideas &
Proposals

Create high-level design leveraging exis=ng


components
Capture Requirements and link to Ideas and Designs

Concepts &
Requirements
Traceability

Innova=on PorUolio:

Develop nancial business case(s)


Analyze porUolio strategy to determine best
commercializa=on opportuni=es

Innovation
Portfolio

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Innova=on Management with


Project PorUolio Management
Coordinate project scheduling and execu@on

Project Execu=on Management

Project
Scheduling

Project Financial Management

Integrated project resource management


Collabora=ve project planning & scheduling
Social task management for team members

Resource Mgmt

Unparalleled nancial project management


Innova=ve, real-=me performance insight

Task Mgmt

Project Analy=cs and Insight

Transac=onal Business Intelligence (OTBI)


Project Performance Repor=ng

Project Financials

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Product Development
Control your Enterprise Product Data & Processes

Item Management:

BOMs

Securely manage and control the development product


record

Change Management:

Create, classify, nd and reuse items

BOM Management:

Items

AMLs

Collabora=vely manage engineering change orders to


capture design itera=ons

Product Readiness Insight:

Analyzing and grading Items, BOMs for supply chain,


release and sourcing readiness

Change Mgmt

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Product Hub
On-Board and Ready Products for Commercializa@on
On-Board
Product Data Onboarding:

Product Data Governance and Quality:

Enrich

Manage Product Catalogs and Enrich Product Data


Associate Digital Assets and Media

Product Data Publica=on:

Govern

Enforce Business Rules and Change Policies


Cleanse, Auto Classify and Standardize Product Data

Product Enrichment:

Transfer items from Product Development or


Onboard items from systems, vendors and data pools

Publish

Share accurate Product Data with Manufacturing &


Commerce or publish to external systems
Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Oracle Product Value Chain Cloud


Summary

Innova=ve, consumer-grade user experience

Unmatched breadth of capabili=es on the Cloud
Deployment by module and to complement legacy systems
Provides immediate entry point for a Path to the Cloud

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

16

Oracle Order Management Cloud


Op@mize Fulllment Across All Channels to Maximize Customer Service & Revenue

Configure
Products

Capture
Orders

Capture
Order
Management

Promise &
Schedule

Price
Orders

Promise
Global Order
Promising

Orchestrate
Fulfillment

Orchestrate

Congurator

Pricing

Increase Customer Satisfaction

Increase Revenue & Margin

Decrease Fulfillment Errors

Reduce Time to Market


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Analyze
Performance

Available Now: Ini=al Quote to Cash Solu=on


Order Management with CPQ Cloud for Order Capture

Order
Management

Sales

Quoting

SALES Cloud

CPQ CLOUD

Promise, Fulfill

SCM CLOUD

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Financials

ERP CLOUD

Fall 2015: Complete Quote to Cash Solu=on


Complete Mul@-Channel Order Management with na@ve Capture, Price & Congure

External Sources

Web Sales

COMMERCE CLOUD

Order
Management
Capture, Configure,
Price

Sales

Quoting

SALES Cloud

CPQ CLOUD

Manage

Promise, Manage, Fulfill

SCM CLOUD

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Financials

ERP CLOUD

Order Management
Capture Orders and Orchestrate Fulllment

Create, Revise and Return Orders

Select products, price, view availability & validate


Manage order revisions and return orders

Orchestrate Fulllment

U=lize exible business rules for order enrichment,


process selec=on & rou=ng
Implement congurable fulllment orchestra=on
processes

Manage Excep=ons

Create
Orders

Monitor orders for excep=ons with congurable


jeopardy condi=ons
Automate change order management

Enrich, Route
& Orchestrate

View Status &


Manage
Exceptions

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Pricing

Dene Pricing Strategies, Rules and Processes



Dene Targeted Pricing Strategies

Manage Pricing and Shipping Rules

Segment customers with like buying behavior


Group pricing rules to meet specic revenue objec=ves
Create date eec=ve pricing rules to calculate base,
list and net price of products and services
Dene shipping charge calcula=on based on price or
cost

Build Price Execu=on Processes

Build highly performant customized pricing processes


Leverage best prac=ce pricing process templates

Define
Pricing
Strategies
Create Pricing
and Shipping
Rules

Build Pricing
Processes

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Congurator
Design Congura@on Models and Rules

Build Congura=on Models

Congure Products and Services

Build, test and release congura=on models in


centralized design workbench
Design run=me user interface through visually editable
templates
Dynamically assemble run=me user interface based on
templates
View real =me pricing as product is congured

Leverage Constraint-based Rules Engine

Support for logic, numeric, accumulator comparison,


explicit compa=bility, property-based compa=bility
rules
Auto-complete technology (i.e. Finish it for me)

Build
Configuration
Models
Configure
Products and
Services

Leverage
Constraints
Technology

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Global Order Promising


Schedule Fulllment and Manage Backlog

Iden=fy the Best Source of Supply

Check availability based on current and future supply


Select the lowest cost source that meets requirements

Schedule Fulllment Ac=vi=es

Source

Plan material transfers, drop shipments, and back-to-


back orders for fulllment execu=on
Consider processing, transit and produc=on =me

Plan &
Promise

Manage Order Backlog

Allocate high-demand products to preferred


customers
Priori=ze and reschedule orders when condi=ons
change

Manage
Backlog

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Oracle Order Management


Summary

Global order hub: mul=-channel order capture & fulllment

Complements exis=ng capture & fulllment systems
Innova=ve, consumer-grade user experience
Provides immediate entry point for a path to the Cloud

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

24

Discrete Manufacturing
Enabling Ecient and Produc@ve Manufacturing Opera@ons

Work Definition

Work Areas,
Work Centers,
Resources

Standard Cost
Planning

Dene

Work Orders
Dispatch List /
Orderless Completions

Execute

Discrete Manufacturing

Cost
Cost Management

Visually Model Shop Floor Processes

Enforce Execution Compliance

Simplify Shop Floor Experience

Control Work Order Variances


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Work Order
Costing

Discrete Manufacturing
Quickly Establish Process Standards

Dene Plant Hierarchy & Process Standards

Manage

Dene working calendar & plant controls


Create work areas, work centers & resources
Dene standard or template opera=ons

Create

Design Your Produc=on Process

Visually create the process for each make item


Drag and drop resources & components
Determine shop oor controls
Collaborate with colleagues within the context of the
work deni=on

Collaborate

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Discrete Manufacturing
Eciently Manage Your Shop Floor While On the Go

Manage Produc=on

Quickly See Status & Take Ac=on


Create & Manage Work Orders
Print Travelers, Generate Parts List & View Produc=on
History

Manage

Execute Produc=on

Monitor

Two Clicks to Issue Materials, Charge Resources or


Complete a Job
Enforce Serialized Transac=ons
Report Orderless Comple=ons

Execute

Op=mized for use on a tablet


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Cost Management
Eec@vely Plan and Track Manufacturing Costs

Standard Cost Planning

Priori=ze work deni=ons used to cost


Eciently enter costs with spreadsheet import
Scalable cost rollup process

Work Order Cos=ng

Plan

Cost

Choice of standard or actual-based cost methods


Flexible user-dened account defaul=ng rules
Work order valua=on policies using cost proles

Manufacturing Cost Analysis


Hierarchical view of buy item standard costs

Analyze

Intui=ve repor=ng of work order cost variances


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Oracle Discrete Manufacturing


Summary

Innova=ve, consumer-grade user experience

Tablet-friendly design for shop oor work execu=on
Embedded performance analysis & repor=ng
Integral Part of the Supply Chain Cloud: Providing
Unmatched End to End Supply Chain Process Breath

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

29

Oracle Planning Central Cloud


Simple and Complete Manufacturing Planning


Materials

Inventory
Forecasts

Customer
Demand

Capacity

Plan

Monitor

Respond

Planning Central
Improve Customer Service

Increase Margins

Reduce Inventory Investment

Minimize Supply Disruptions


Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Supply Orders

Plan

Unied
Demand and Supply Planning
Sense

Sense and Forecast Customer Demand

Plan Supply

Sta=s=cally forecast bookings and shipments


Es=mate demand for new items
Calculate safety stock
Create unconstrained supply plans

Plan

Review Demand and Supply Changes

Determine material and capacity requirements


Evaluate changes from the last planning period

Review

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Monitor

Iden@fy
and Address Performance Issues
Summarize

Get an At a Glance Summary of Plan Health

Analyze Root Causes

Review a holis=c summary of plan metrics


Compare actual performance to objec=ves
Use advanced analy=cs to isolate problem areas
Iden=fy cause and eect with contextual data

Analyze

Resolve Excep=ons

Drill to the source of excep=ons


Make manual changes or adjust parameters to replan

Resolve

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Respond
Priori@ze and Publish Planned Orders for Execu@on

Identify

Iden=fy Opportuni=es to Improve

Priori=ze Ac=ons to Minimize Disrup=on

Address at-risk orders and hot demand


Take advantage of demand pull-in opportuni=es
Visualize the changes that have the greatest impact
Evaluate before-and-aoer revenue and margin

Prioritize

Publish Supply Orders

Filter and select proposed orders and requisi=ons


Export updated order recommenda=ons for execu=on

Publish

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Planning Central
Summary


Modern, simple, and complete manufacturing planning

Guided naviga=on and intelligent recommenda=ons
Support for outsourced manufacturing and supply
Congurable planning solu=on with unied demand-supply

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

34

Oracle Applica=ons:
SCM Cloud Current Release and Roadmap
Oracle Supply Chain Management Cloud: Overall
Current Release
Value Chain Execution Cloud
Order Management new product
Global Order Promising new product
Quote-to-Cash integrations with CPQ
Cloud
Global Trade Intelligence new product
Enhancement to OTM & GTM 6.3.6
Product Value Chain Cloud
IM: Idea tag cloud, Requirements traceability
PD: AML & attachment redline & change
mgmt
PH: Schedule, bulk load, GDSN, Enhanced
Catalog browsing, audit trail, GTIN validation

Whats Next

Future Directions

0-12 month planning cycle

Post 12 month planning cycle

Value Chain Execution Cloud


Order entry, pricing, returns, multi-channel
Configurator Cloud new product
Advanced Fulfillment flows
OTM & GTM Mobile applications and ADF
Uis
Enhancement to OTM & GTM 6.3.7
Product Value Chain Cloud
IM: Ideation Mobile Client, Reports, Bulk
import
PD: Enhanced cross-PVC BOM/ECS flow
Improved, Attachment Redlining
PH-: Digital Assets, Commerce Integration
Manufacturing Cloud
Discrete Manufacturing: Master Data,
Execution, Costing new product
Value Chain Planning Cloud
Planning Central new product

Value Chain Execution Cloud


Coverages & Subscriptions; Contract-based
Ordering; Asset-based Ordering
Oracle Commerce Integration
Mobile Inventory, 3PL/WMS Integrations
Enhancement to OTM & GTM 6.3.8
Product Value Chain Cloud
Enterprise Quality Management
Product Cost Management
CAD Data Management
3rd Party Commerce Adapters (Google/
Amazon)
Manufacturing Cloud
Discrete Manufacturing: Mobile, Exceptions,
Quality collections
Assets: Genealogy, Maintenance
Value Chain Planning Cloud
Sales & operations Planning new product
Demand Planning new product
Supply Planning new product
Value Chain Collaboration & Visibility new
product

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

35

Accelera=ng Your Path to the Cloud


Transforma=onal

Rapid Start-
Up Services

Incremental
Financial
Incen@ves
Integra@ons

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

36

Oracle is commiWed to your success


Execu=ve
Sponsorship
Oracle
Support
Customer
Feedback
Programs

Client Success
Specialist
Implementa=on
Success Manager
Oracle
Account
Team

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

Financial
Incen=ves
Rapid
Start-Up
Services
Packaged
Cloud
Integra=ons

Oracle Confidential

37

Cloud Implementa=on Strategy


Simplied, Accelerated, Scalable

Enable a rapid, cost-eec=ve


deployment of core func=onality in 8
10 weeks
Drive value, deliver ROI promptly,
then expand the solu=on and scale to
the needs of the business
Leverage our strong ecosystem of
partners to create pre-packaged
implementa=on accelerators
Copyright 2015 Oracle and/or its aliates. All rights reserved. |

38

Oracle SCM Cloud


Summary

Built for Cloud


Broadest Cloud Solu=on


Modern User Experience
Flexible Paths to the Cloud

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

39

Ques=ons & Answers

Copyright 2015 Oracle and/or its aliates. All rights reserved. |

www.oracle.com/scm

Copyright 2015 Oracle and/or its aliates. All rights reserved. |