2006 Oracle Corporation Proprietary and Confidential

<Insert Picture Here>

Why upgrade from MRP to Advanced Planning!
Leverage increased benefits from a stronger foundation
2006 Oracle Corporation Proprietary and Confidential
The following 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 to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracles
products remains at the sole discretion of Oracle.
2006 Oracle Corporation Proprietary and Confidential
EVOLVING CHALLENGES IMPACTS TO SUPPLY CHAIN
Why consider? A changing global landscape!
Globalization and global sourcing - leaner
supply networks, increased demand
variability, cost volatility
Increased customer expectations - faster
product life cycles with local market
requirements
Mergers and acquisitions, and continued
consolidation of suppliers and customers
Increasing compliance requirements such as
Sarbanes-Oxley
Capture demand signals more frequently and closer to the
point of sale drive to consensus demand number
Shape your demand with profitability and capacity as key
drivers
Implement real-time and collaborative sales and operations
planning process
Older business models are challenged
by the new decentralized global
network model
Move from static demand planning to demand
sensing and shaping
Introduces new challenges and
focus areas:
Materials and logistics are both primary constraints
Cross-enterprise synchronized view of demand signal
encompassing both supply and demand visibility
More scrutiny of material liability
Multi-tier decision support instead of enterprise plans
Analyze optimal flows for market response, changing
geo-political situations, and unplanned events
Rationalize suppliers to minimize risk
Determine postponement strategies
Conduct cost-to-serve and product portfolio analysis
Focus on more frequent supply network flow analysis
Business trends forcing you to move to demand driven adaptive planning
2006 Oracle Corporation Proprietary and Confidential
Sense
Demand
Respond to
Demand
Shape
Demand
Demand Driven Adaptive Planning
The demand driven company runs on real-time information
2006 Oracle Corporation Proprietary and Confidential
Demand Driven leaders have:
15% less inventory
17% stronger order fulfillment
35% shorter cash-to-cash cycle times
Which translates to:
60% better profit margins
65% better EPS
2-3X the ROA
0
50
100
150
200
250
300
350
Strong Weak
Perfect Order Inventory
Cash-to-Cash SCM Costs
Source: AMR Benchmark Analytix
Why Is Demand Driven Important?
Tangible benefits!
2006 Oracle Corporation Proprietary and Confidential
Long planning cycles
Suppl y Planning Demand Planning
Distribution
plans
Sales
Marketing
Mfg.
Response 1:
Maintain excess inventory
Response 2:
Reserve production capacity
Response 3:
Expedite everything!
Fax
Tier 2
Tier 1
CUSTOMERS SUPPLIERS
Supply Chains built on
INVENTORY
Production
plans
Manufacturing
plans
Paper Paper
?
Manual
Reconciliation
Different one
number
Cannot Enable with Disconnected Systems
2006 Oracle Corporation Proprietary and Confidential
Better Approach
Demand driven adaptive planning process platform
Real-time end demand visibility
Quickly sense and respond
to demand changes
Shape demand and align
business plans quickly
Manage your business with
real-time sales and operations
planning
Monitor performance to drive
continuous improvement
Supply Chains built on
INFORMATION instead of
Inventory
Consensus demand and
production plan
Holistic Suppl y Planning
Demand Hub & Multi-
dimensional anal ysis
Automated Exceptions
Real-Time S&OP
Single
holistic plan
Embedded Analytics
Sales
Marketing
Mfg.
Manufacturing
Portal Portal
Tier 2
Tier 1
CUSTOMERS SUPPLIERS
2006 Oracle Corporation Proprietary and Confidential
How
Delivers
2006 Oracle Corporation Proprietary and Confidential
Oracle Advanced Planning Solution
Complete, best-in-class e-business planning process platform
Future *
Integrated
Planning
Functions
Products
Platform
E1
EBS

Legacy
ERP
*
*
WFL
Common planning
data model
Connectors
Network
Design
Demand Sensing
And Shaping
Postponement
Optimization Holistic
Supply
Planning
Promise,
Distribute, and
Replenish
Execute to plan
Embedded
Analytics
Role-based Portals
Preconfigured
Worksheets and
Workbenches
Operational
Excellence
Real-Time
S&OP
Demand driven
adaptive planning
Multi-Enterprise
Collaboration
Trading Partners
Best in class
Business
Processes
Supply Chain
Risk Management
Strategic
Network
Optimization
Inventory
Optimization
Real-Time
Sales &
Operations
Planning
Demand
Management
& Advanced
Forecasting
Predictive
Trade
Planning &
Optimization
Advanced
Supply
Chain
Planning
Production
Scheduling
Global
Order
Promising
Collaborative
Planning
2006 Oracle Corporation Proprietary and Confidential
Demand driven adaptive planning
Sense demand better through advanced analytics, improved consensus
forecasting, and real-time visibility to demand events
Shape demand by enabling real-time sales and operations planning, and
promotions planning and optimization
Respond faster to demand through holistic supply planning, cross-enterprise
collaboration, and demand-driven VMI
Global supply chain design and risk management
Design your network holistically
Account for variability in your hedging strategy
Incorporate flexibility to enable fault tolerant supply networks
Drive operational excellence
Improve demand fulfillment through real-time distributed global order promising
Improve shop floor efficiency with real-time production scheduling
Drive continuous improvement with embedded analytics
Enables leading edge and transformational business processes
Oracle Advanced Planning
2006 Oracle Corporation Proprietary and Confidential
Why upgrade to Advanced Planning
Enables leading edge and transformational business processes
Where to start?
How to expand?
2006 Oracle Corporation Proprietary and Confidential
From standard MRP
Unconstrained material and resource planning
for a single manufacturing organization
Basic forecasting
Basic unconstrained available to promise
No collaboration with trading partners
It provides benefits (similar to how black-and-white TV provided benefits)
No future growth path !
2006 Oracle Corporation Proprietary and Confidential
to Unconstrained Advanced Planning
Improved planner productivity through a new
productivity enhancing UI, planner collaboration, and
workflow automation
Reduced planning cycle time by running fewer plans
Continuous improvement through integrated
business intelligence
Improved scalability and performance through
component architecture
Lay down a strong foundation for future growth, at similar cost!
Strong foundation for future growth path !
2006 Oracle Corporation Proprietary and Confidential
Strong Foundation For Future Growth
Leverage common infra-structure when expanding to other planning areas
APS Foundation (common data model, component architecture)
Oracle ERP
(different releases, multiple instances)
Oracle ERP
(same release, single instance)
MRP
Sense Demand
Respond to Demand
Shape Demand
Unconstrained resource and material planning
Constrained based planning
Distribution planning and constrained global order promising
Simple forecasting
Advanced statistics
Causals, attribute based forecasting
Real-time S&OP
Promotions and sales incentives
Design for Agility
Inventory hedging strategies
Supply chain risk analysis
Collaborate across Enterprises
Vendor managed and consigned
inventory
Multi-enterprise supply planning
Respond to Demand
2006 Oracle Corporation Proprietary and Confidential
Start with Unconstrained Supply Planning
Similar effort as deploying MRP Reuse all existing setup !
APS Foundation
Oracle ERPs
Sense Demand
Respond to Demand
Shape Demand
Unconstrained resource and
material planning
Constrained based planning
Distribution planning, GOP
Design for Agility
Use a single plan to plan your entire supply
chain to reduce planning cycle time
Simultaneous material and capacity planning
Plan process and discrete mixed models
Perform forecast consumption inline
Plan at aggregate level, as well as detailed
level in a single plan, with better accuracy
Time granularity in plan horizon
Account for yields
Leverage advanced problem solving and
analysis tools
Comprehensive exception management and
automation through workflow
Extensive pegging capabilities
Measure plan to target performance
Integrated performance management
Collaborate
2006 Oracle Corporation Proprietary and Confidential
Why ASCP instead of MRP
Master Production Scheduling

Component architecture

Integration with Oracle Shop Floor Management (semi-conductor support)

Integration with Oracle Process Manufacturing (process support)

Integrated performance management

Supply chain planning and Distribution Planning

(1)

In line forecast consumption

Personal and public queries

Audit trail and undo

Problem solving and analysis tools

New productivity enhancing user interface

Plan at aggregate level as well as detailed (hour, minute) level in one plan, for each plan time
period

Plan all locations, all manufacturing methods, all planning time horizons (short to long term) in
a single plan

Mixed mode manufacturing support

Capacity Requirements Planning

Material Requirements Planning

Rough Cut Capacity Planning
ASCP MRP Capabilities
(1) Requires CBO
2006 Oracle Corporation Proprietary and Confidential
Implementing Unconstrained Supply Planning
Install
1
Install ASCP using the 11i rapid install process
Decide on deployment (one instance, distributed)
Setup
2
Link Planning instance to ERP source instance
Define profile options (optional)
Collect
3
Run data collection process to collect ERP data for planning
Collect from one or more source instances (optional)
Plan
4
Define plan and plan options
Run plan
Analyze
5
Launch Planner Workbench to analyze plans
Similar effort as deploying MRP Reuse all existing setup !
2006 Oracle Corporation Proprietary and Confidential
Similar effort as deploying MRP Reuse all existing setup !
1. Link ERP source and Planning instance (one time)
Implementing Unconstrained Supply Planning
2006 Oracle Corporation Proprietary and Confidential
Implementing Unconstrained Supply Planning
Similar effort as deploying MRP Reuse all existing setup !
2. Collect ERP source data
2006 Oracle Corporation Proprietary and Confidential
Implementing Unconstrained Supply Planning
Similar effort as deploying MRP Reuse all existing setup !
3. Define plan and plan options
2006 Oracle Corporation Proprietary and Confidential
Implementing Unconstrained Supply Planning
Similar effort as deploying MRP Reuse all existing setup !
4. Run plan
2006 Oracle Corporation Proprietary and Confidential
5. Improved Plan Analysis
Personal queries for items,
resources, orders, and
exceptions
Multiple horizontal plan
definitions
Enhanced multi-level pegging
Bookmark and undo for
simulation (OLP)
Release based on rules
Improved Gantt Chart for order
and resource analysis
Item attribute simulation sets
Make your planners more productive right away
2006 Oracle Corporation Proprietary and Confidential
Adaptable Segment the Problem As Needed
Adapts to your current
business model
Single plan or multiple plans
Hub-and-spoke planning models
Evolve planning model at
your own pace
Re-configure easily by modifying
plan options instead of re-
implementing or re-modeling
Multiple models can co-exist
One holistic plan
One DPP, multiple MRP
Distribution Plan for all Distribution Centers
MRP Org 1 MRP Org 2 MRP Org 3
Supply chain plan
for all Organizations
Multiple production plans
MPS for BU 1
MRP
Org 1
MRP
Org 2
MRP
Org 3
MPS for BU 2
MRP
Org 4
MRP
Org 5
MRP
Org 6
2006 Oracle Corporation Proprietary and Confidential
Why upgrade to Advanced Planning
Enables leading edge and transformational business processes
Where to start?
How to expand?
2006 Oracle Corporation Proprietary and Confidential
How to Expand?
Focus on your most important business problem first
APS Foundation
Oracle ERPs
Sense Demand
Respond to Demand
Shape Demand
Unconstrained simultaneous
resource and material planning
Constrained based planning
Distribution planning, GOP
Design for Agility
Improve the quality of your plans
Constraint based optimization
Cost based optimization
Improve operational excellence
Constrained based order promising
Distribution planning
Improve demand sensing
Consensus demand management closer to the point of consumption
Leverage better statistics for more accurate forecasts
Use causal modeling and attribute based forecasting to improve
forecast number
Shape demand for profitability
Analyze the impact of promotions and sales incentives programs on
your demand predictions
Analyze the impact of new product introductions
Leverage sales and operations planning to balance demand, supply,
and budgets
Collaborate across multiple enterprises
Design your supply chain with agility in mind
Design your supply chain with cost and profitability as drivers
Align your inventory hedging and postponement strategy
Collaborate
2006 Oracle Corporation Proprietary and Confidential
Improve The Quality Of Your Plans
Improve plan quality
Automatically recommend alternative suppliers,
components, resources, facilities, and routings
Generate feasible plans that respect your material
and resource constraints
Make better decisions faster
Cost based optimization: maximize profit,
inventory turns, and customer service
Out-of-the-box optimization requires no
programming
Priority based decisions
Drag-and-drop rescheduling
Improve resource scheduling
Schedule simultaneous resources
Batch resources
Minimum transfer quantities
Sequence dependent changeovers
Constraint based and optimized planning
2006 Oracle Corporation Proprietary and Confidential
Global Forecasting and Inline Consumption
Postpone fulfillment
decision to supply planning
Check availability before
specifying shipping location
Allocate supply to customers
Generic forecasts
Forecast without reference to
shipping facilities
Consume forecast based on type
of demand
Zone Customer Zone Customer Customer Site Demand Class Global (Item)
Global Forecast
Organization 1 Organization 2 Organization 3
Ship from
locations
Ship to
Forecast
distribution
Consume forecasts
with respect to ship
to
Increase flexibility for your fulfillment decisions
2006 Oracle Corporation Proprietary and Confidential
Make better decisions faster
Level load
Choose alternatives
Make versus buy decisions
Late demand diagnosis
Out-of-the-box optimization
Use costs or decision rules
Start quickly
Planners define the problem to solve
Flexible defaulting
Reduce planner workload
Out-of-the-box Optimization
Optimization for planners, not programmers
2006 Oracle Corporation Proprietary and Confidential
Comprehensive Manufacturing Planning
Sequence dependent setup minimization
Contiguous operations
Resource charges
Simultaneous resources
Batch resources
Alternate resources
Minimum transfer quantities
Complex, network routings
By-products and co-products
Line rates and takt times
Setup and run
Example features
2006 Oracle Corporation Proprietary and Confidential
Expand to Production Scheduling
Complete, integrated Manufacturing Planning and Scheduling process
ATP
Check
GOP
Day 1 Day 2
Multiple facilities
Which plant makes what
products and when
Pre-builds based on capacity
shortages
Alternate facilities, suppliers
and processes
Day 3
Production Schedule Org 1
8am 12pm
Schedule a single facility
Sequence Production to meet
demands on this facility
Account for detailed
production constraints and
come up with an executable
schedule
4pm
PS Production Schedule Org 2
PS Production Schedule Org 3
Constrained dependent demands
independent demands
planned orders
ASCP Production Plan
PS Production Schedules
Production Plan Org 1, 2, and 3
Execution work orders
Process batches, and
Lots scheduled detailed
activities
2006 Oracle Corporation Proprietary and Confidential
Maximize production throughput
Optimize your shop floor; detect floating bottlenecks
Reduce WIP inventory by rapidly synchronizing multi-
stage production schedules
Account for complex setup and change-over
scenarios, machine breakdown, supply and resource
shortages, co- and by-products, alternate resources,
routings, and operations
Model all elements of your shop floor
Work centers, resources and resource groups, shift
capacity, operating costs
Lead times: setup, change-over, and run
Sequence dependent setups, contiguous operations,
production campaigns, batching
Implement most optimal schedule
seamless integration with Oracle EBS
Output best schedule for process (OPM), discrete
MFG), and semi-conductor (OSFM) manufacturing
Improve shop floor efficiency
Real-Time, Interactive Production Scheduling
2006 Oracle Corporation Proprietary and Confidential
<Insert Picture Here>
How To Expand
Improve operational excellence
APS Foundation
Sense Demand
Respond to Demand
Shape Demand Design for Agility
Collaborate
Constrained global order promising
Distribution planning
2006 Oracle Corporation Proprietary and Confidential
Promise orders based on:
Material availability
Manufacturing capacity
Transportation capacity
Supplier capacity
Global statement of availability
All facilities, material, resources, and suppliers
Drive fulfillment decisions based on
demand and supply plans
Promise based on optimal supply decisions
Allocate available supply and capacity
By channel, customer, or product
Priority and stealing rules
Manage commitments to key customers
Re-schedule and re-sequence your backlog
Improve demand fulfillment through 24x7 constraint based order promising
Real-Time Distributed Order Promising
2006 Oracle Corporation Proprietary and Confidential
Comprehensive Distribution Planning
Plan all distribution holistically
All central and regional distribution centers, customer and supplier
facilities, and manufacturing facilities
Bills of distribution and transfer rules
Product family and item level planning
Alternate components, resources, processes, suppliers, facilities, and
ship methods
End-item substitution
Determine optimal supply allocation from
plants to distribution centers using:
Fair share allocation
Inventory policy at multiple levels (max, target, safety stock)
Inventory rebalancing (circular sourcing)
Shipping method selection and load consolidation
Global forecast ->local allocation of supply across distribution network
Automatically generate transfers
Create internal transfers
Create consolidated shipments
Integrated with Oracle Transportation Management for carrier and mode
selection
Automate replenishment
Suppliers manage your DC inventories
Manage your customers inventory
Demand
Planning
Multi-Plant
Planning
Demand
Distribute
Distribution
Planning
Supply
Cross-enterprise synchronized view of supply and demand
2006 Oracle Corporation Proprietary and Confidential
Distribution Planner Workbench
Global visibility of suppliers, demands, and
constraints for faster decision making
Improved planner productivity
Automate routine decisions for fair share allocation, load
consolidation, and inventory balancing
Exception management to enable planners to focus on the
real problems
Embedded distribution plan metrics
Comprehensive multi-dimensional analysis
Inbound and outbound shipments by organization in the
horizontal plan
Allocation decisions by customer and organization
Find opportunities to improve load
consolidation
Integrated with Oracle EBS
Release and reschedule both internal requisitions and
internal sales orders simultaneously
Improve planner productivity All key data in a single place
2006 Oracle Corporation Proprietary and Confidential
<Insert Picture Here>
How To Expand
Improve demand sensing
APS Foundation
Sense Demand
Respond to Demand
Shape Demand Design for Agility
Collaborate
Simple forecasting
Advanced statistics
Causal factors, attribute
based forecasting
2006 Oracle Corporation Proprietary and Confidential
Get real-time visibility to all demand signals
Sales, marketing, manufacturing, customers, suppliers
Include point of sale information in real time
Move from a regimented periodic to a continuous demand
planning process
Leverage advanced analytics to accurately
predict demand
High precision statistical forecasting, no statistical
background required Superior Bayesian-Markov analytics
Use any combination of quantitative or qualitative data to
establish your base line forecast
Forecast based on attributes and characteristics
Get quickly to an improved consensus number
Use multi-dimensional analysis to adjust, allocate, and rollup
Collaborate with internal and external constituents
Workflow driven forecasting exceptions ensures
responsiveness
Support for flexible formulaic expressions
Automatically sync when working in offline mode
Improved demand management The first step to demand driven
Sense Demand Accurately Predict Demand
2006 Oracle Corporation Proprietary and Confidential
Easily navigate
through user
defined hierarchies
Configurable worksheets
display the data each
user needs to his job
Configurable reports,
charts and graphs can
be displayed anywhere
Color coding provides
visibility to exceptions
and areas of interest
Productivity enhancing UI
Sense Demand Accurately Predict Demand
2006 Oracle Corporation Proprietary and Confidential
<Insert Picture Here>
How To Expand
Shape demand for profitability
APS Foundation
Sense Demand
Respond to Demand
Shape Demand Design for Agility
Collaborate
Real-time S&OP
Promotions planning
New product
introductions
2006 Oracle Corporation Proprietary and Confidential
What is my most profitable product mix?
What incremental volume will result from a
marketing program?
How will it impact the sales of other
products?
What were the indirect effects such as
cannibalization and consumer stockpiling?
Do I have enough material and capacity to
satisfy the promotion demand?
Where do I have excess capacity and how
can I influence demand to consume that
excess?
How does a marketing program at a brand or
product family level impact a specific SKU?
Cannibalization
Pre- and post-effects
Competitive switching
Category growth
Baseline
Actual
0
500
1000
1500
2000
2500
3000
3500
4000
Period 1 Period 6 Period 11
C
a
s
e
s
Past Future
Shape Demand
Understand the financial and operational impacts of sales incentives
2006 Oracle Corporation Proprietary and Confidential
Shape Demand Promotions Optimization
Accurately estimate base volume and
components of promotional lift
Provides decomposition of incremental volume from
advertising, promotions, or sales incentives
Granular lift analytics
Incremental volume lift coefficients maintained at lowest level
Promotion optimization
Simulate volume and profitability of future promotions
Perform what-if analysis to understand the impact of varying
promotional tactics and price points
Optimize promotional events based on goals and constraints -
profit, revenue, units, budget, timing, margin
Decompose lift to understand cannibalization, pantry loading,
and halo effect
Baseline
Incremental
Long-Term
Growth
Pre and Post
Promotion
Effect
Cross product
Cannibalization
Typical Demantra
Baseline
Competitive
Switching
Select the most profitable promotion
2006 Oracle Corporation Proprietary and Confidential
Shape Demand New Product Introduction
Chain and view demand of comparable products
Automatically identify comparable products based on characteristics
Automatically detect outliers
Align forecast based on actual demand
Accurately forecast demand for new products based on existing data
2006 Oracle Corporation Proprietary and Confidential
View promotion details
and lift decomposition
in a single screen
View base, incremental volume,
history, projected, and promotion
Gantt in a single screen
Shape Demand Promotions Optimization
2006 Oracle Corporation Proprietary and Confidential
Shape Demand Real-Time S&OP
Identify financial and revenue goals
Analyze demand and develop sales
forecast
Synchronize plan across Finance,
Sales, Marketing, and Supply Chain
Determine potential market variables
Review supply and demand plans
Develop constrained plan
Monitor results and respond to
deviations
Create promotions and incentives
to shape demand and close gaps
Marketing
Manufacturing
Finance
Executives
Product
Development
Strategic plans Profitability
Promotional and
volume plans
Service levels
Demand plans Inventory levels
Capacity plans
Promotion
effectiveness
Phase in and phase
out products
Plan accuracy
Strategic
Tactical
Decisions
Sales
Make demand and supply decisions simultaneously
2006 Oracle Corporation Proprietary and Confidential
Shape Demand Real-Time S&OP
Analytics-based demand management
Capture all demand data in a central place
Use analytics and intelligence to develop a bottom-up forecast
Move to weekly forecasting
Workflow-driven collaborative planning
Enable a workflow driven multi-disciplinary collaborative process that
includes Manufacturing, Finance, Sales, Marketing, and external
stakeholders
Configurable planning platform adapts to business process
Web-based portal support internal and external collaboration
Profitably balance supply, demand, and budgets
Make allocation decisions while trading off service levels and cost
Balance needs of many customers in different channels
Examine throughput on the most critically constrained resources and
profitability by product family
Exception-based performance monitoring
Adjust demand or supply plan as conditions change
Drive continuous improvement
Create incentives and promotions to close gaps
Decisions drive ERP and supply chain execution
Integrate with EBS, E1, third party ERP
Leverage best-in-class Sales and Operations Planning from Demantra
2006 Oracle Corporation Proprietary and Confidential
Shape Demand Real-Time S&OP
Measure internal inputs
and
provide incentives to
generate better inputs
Measure internal inputs
and
provide incentives to
generate better inputs
Improve demand visibility
with customer
collaboration
Improve demand visibility
with customer
collaboration
All the detailed
information you need
to make the
RIGHT decisions
All the detailed
information you need
to make the
RIGHT decisions
Automatically detect
outliers while
forecasting for new
product introductions
Automatically detect
outliers while
forecasting for new
product introductions
Leverage best-in-class Sales and Operations Planning from Demantra
2006 Oracle Corporation Proprietary and Confidential
<Insert Picture Here>
How To Expand
Collaborate across multiple
enterprises
APS Foundation
Sense Demand
Respond to Demand
Shape Demand Design for Agility
Collaborate
VMI
Consigned
Supply collaboration
2006 Oracle Corporation Proprietary and Confidential
Plan your extended supply chain
Share forecasts and supply commits with
customers and suppliers
Get visibility to supplier capacity
Reallocate key components
Make alternate sourcing decisions
Reduce inventory cost and improve
fulfillment
Suppliers manage your inventory
Manage your customers inventory
React quickly to supply chain
exceptions
Waterfall analysis
User-configurable exceptions
Automated exception handling via workflow
Run plan
Optional
Forecast memory
Suppl y commit
boards
Suppl y commit memory
Demand boards
Run plan
Demand
systems
Suppl y
forecast
Consensus
forecast
SUPPLIER CUSTOMER YOU
CONTRACT
MANUFACTURER
Cross-enterprise synchronized view of supply and demand
Respond Multi-Enterprise Collaborative Planning
2006 Oracle Corporation Proprietary and Confidential
Receive items
Pay on receipt/use
Check
inventory
status
Ship items
VMI Agreement
(with supplier)
VMI Agreement VMI Agreement
Receive items
Pay on receipt/use
Ship items
VMI Agreement
(with customer)
Send consumption
advice
CUSTOMER YOU SUPPLIER
Generate ship-to
level forecast and
replenishment plan
Real-time POS driving adaptive forecasting and replenishment
Respond Demand Driven VMI
2006 Oracle Corporation Proprietary and Confidential
<Insert Picture Here>
How To Expand
Design for agility
APS Foundation
Sense Demand
Respond to Demand
Shape Demand Design for Agility
Collaborate
Postponement and
hedging strategies
SC Risk analysis
Supply network design
2006 Oracle Corporation Proprietary and Confidential
Answer the tough questions:
What impact do changing costs have on my
sourcing strategy?
What is the real total cost of outsourcing including
the impact on working capital and cash flow?
Where should my point of postponement be?
Where should I hold how much inventory, when?
How could I react to a disruption in supply due to
unforeseen events? Should I multi-source?
What are my most profitable channels or products
to invest in?
What is the impact of mergers and acquisitions on
my supply network and capital asset budget?
Design Resilient Supply Networks
Enable agile supply networks, aligned with your postponement strategy
2006 Oracle Corporation Proprietary and Confidential
Leverage resiliency in your supply chain for tactical responses
Design Resilient Supply Networks
Network modeling and alternates
Sourcing strategy
Cost modeling
Asset rationalization
Safety stock strategy
What-if simulations
Risk related to unplanned events
Design supply chains that are resilient
Strategic Network Optimization (SNO)
Network modeling and alternates
What-if simulations
Cost modeling
Asset rationalization
Risk related to
unplanned events
Inventory Optimization (IO)
Model distribution of variability
(demand, supply, lead time)
Budget and capacity constraints
Time-phased min,
max, and target
service levels
Inventory policies
Target inventory levels
Identification of point of postponement
Network structure
Sourcing rules
Suppliers and CMs
Mfg and Dis facilities
Shipment methods
Manage supply chain risk with profitability and postponement in mind
2006 Oracle Corporation Proprietary and Confidential
<Insert Picture Here>
Summary
2006 Oracle Corporation Proprietary and Confidential
Upgrade from MRP to Advanced Planning
Complete, best-in-class e-business planning process platform
Future *
Integrated
Planning
Functions
Products
Platform
E1
EBS

Legacy
ERP
*
*
WFL
Common planning
data model
Connectors
Network
Design
Demand Sensing
And Shaping
Postponement
Optimization Holistic
Supply
Planning
Promise,
Distribute, and
Replenish
Execute to plan
Embedded
Analytics
Role-based Portals
Preconfigured
Worksheets and
Workbenches
Operational
Excellence
Real-Time
S&OP
Demand driven
adaptive planning
Multi-Enterprise
Collaboration
Trading Partners
Best in class
Business
Processes
Supply Chain
Risk Management
Strategic
Network
Optimization
Inventory
Optimization
Real-Time
Sales &
Operations
Planning
Demand
Management
& Advanced
Forecasting
Predictive
Trade
Planning &
Optimization
Advanced
Supply
Chain
Planning
Production
Scheduling
Global
Order
Promising
Collaborative
Planning
Oracle Advanced Planning
Start with unconstrained supply planning
Expand quickly, leveraging the same foundation, to
solve your most important business problems first
Implement at a modular pace while not foregoing the
benefits of out-of-the-box integration
Enables leading edge and transformational business processes
2006 Oracle Corporation Proprietary and Confidential
Proven, best in class planning solution
Many live customers on multiple products, across a wide variety of industries
Large-scale, complex, worldwide deployments
For Planners, Not Programmers - Out-of-the-box optimization and predictive analytics
Superior architecture - scalable, database-driven demand and supply planning; common data
model across all engines, shared with execution
Provides significant value
Enables real-time demand driven dynamic supply planning
Enables customers to implement best practices such as RT S&OP, VMI, CPFR, Supply Chain
Risk Management, Inventory Postponement
Proven reductions of inventory and increases in forecast accuracy, customer service levels
Progress at your own pace, transition gradually
Quickly start with the most important problem
Integrated platform enables crawl-walk-run approach
Leverage out-of-the-box integration to rapidly extend planning footprint
Low risk, high value transition to a best-in-class planning solution
Key Takeaways
2006 Oracle Corporation Proprietary and Confidential
Q U E S T I O N S
A N S W E R S
2006 Oracle Corporation Proprietary and Confidential