Integrated Business Planning Bridging the Gap Between Budgets ...
Integrated Business Planning Bridging the Gap Between Budgets ...
Integrated Business Planning Bridging the Gap Between Budgets ...
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© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 1 | October 2010<br />
<strong>Integrated</strong> <strong>Business</strong> <strong>Planning</strong><br />
<strong>Bridging</strong> <strong>the</strong> <strong>Gap</strong> <strong>Between</strong> <strong>Budgets</strong><br />
and Reality<br />
Deb Bene’, Emerson and Mark Gordon, Oracle
Key Takeaways<br />
• Value Chain <strong>Planning</strong> implementation is a journey, not a project –<br />
each phase has its own short time to value, but one should have a<br />
long term vision.<br />
• Start Anywhere – Focus on <strong>the</strong> highest bang for your buck within<br />
each BU/Region and don’t wait for ERP Implementation or upgrade<br />
• Pick your critical “green” KPIs – one cannot be perfect at all<br />
measures – which KPIs defines you as a company, and meet your<br />
strategy?<br />
• Create transparency between All departments, Sales, Marketing,<br />
Finance, and SC and align your Supply with your Opportunities<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 2 | October 2010
<strong>Business</strong> <strong>Planning</strong> Challenges<br />
Changing market demands<br />
• Demanding customers<br />
• Product proliferation<br />
• Shorter product lifecycles<br />
• Continuous innovation<br />
Inefficient Operations<br />
• Increasing operating costs<br />
• Capacity constraints<br />
• Supply chain lead times<br />
Sales<br />
Marketing Operations Finance<br />
Sales<br />
Data<br />
Marketing<br />
Data<br />
Operations<br />
Data 1<br />
Operations<br />
Data N<br />
Finance<br />
Data 1<br />
Finance<br />
Data N<br />
Deteriorating financial health<br />
• Eroding margins<br />
• Cost volatility<br />
• Lack of insight into profit drivers<br />
• Loss of corporate value<br />
Economic Downturn<br />
• Falling demand<br />
• Lack of credit and capital<br />
• Need to conserve cash<br />
• Decreasing competitive position<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 3 | October 2010
Manage a Unified Plan Across <strong>the</strong> Enterprise<br />
Many critical planning processes, too many spreadsheets<br />
Revenue <strong>Planning</strong><br />
Excess & Obsolete<br />
Inventory Exposure<br />
Finance<br />
Profit <strong>Planning</strong><br />
Working Capital<br />
<strong>Planning</strong><br />
Marketing<br />
New Products <strong>Planning</strong><br />
SKU Rationalization<br />
Supply Chain<br />
Supply Chain <strong>Planning</strong><br />
Demand <strong>Planning</strong><br />
Sales & Operations <strong>Planning</strong><br />
Financial <strong>Planning</strong> &<br />
Goals<br />
Strategic <strong>Planning</strong><br />
Operating<br />
Plan<br />
Product Forecasts<br />
Promotion Plans<br />
New Product Launch<br />
Product Life Cycle Plans<br />
<strong>Business</strong> Plans<br />
R&D<br />
Suppliers<br />
Collaborative <strong>Planning</strong><br />
Design Collaboration<br />
Sales Forecasts<br />
Market Requirements<br />
Sales Forecasts<br />
Sales<br />
Forecast Collaboration<br />
Key Account <strong>Planning</strong><br />
Product Requirements<br />
Product Allocation<br />
Partners<br />
Customers<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 4 | October 2010
Oracle Vision for Next Generation<br />
Sales & Operations <strong>Planning</strong><br />
Today<br />
Demand-Driven S&OP<br />
• Supply and Demand<br />
balancing<br />
• Most decision making at<br />
distinct Demand, Supply<br />
and Executive Review<br />
meetings<br />
• Periodic and reactive<br />
Next Generation<br />
<strong>Integrated</strong> <strong>Business</strong><br />
<strong>Planning</strong> Solution<br />
• Profitable response –<br />
balance opportunities and<br />
Risk<br />
• Achieve consensus<br />
operational plan through<br />
continuous, interactive<br />
decision making and<br />
alignment with financial plans<br />
• Financial scenarios<br />
• Base financial plan<br />
• Financial what-if<br />
Execute and<br />
measure <strong>the</strong> plan<br />
Approve and publish<br />
<strong>the</strong> plan<br />
<strong>Integrated</strong> Scenario Analysis<br />
Supply what-if<br />
Base supply plan<br />
Demand consensus<br />
Demand shaping what-if<br />
Base demand plan<br />
Collect sales and market input<br />
Financial what-if<br />
Base financial plan<br />
Next Generation S&OP<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 5 | October 2010<br />
5
Oracle’s <strong>Integrated</strong> <strong>Business</strong> <strong>Planning</strong> Process<br />
Provides critical link between operations, sales and finance<br />
Performance<br />
Management<br />
Financial<br />
Targets<br />
Sales and Operations <strong>Planning</strong><br />
Sales<br />
Forecast<br />
Strategic<br />
Network<br />
Optimization<br />
Demand<br />
Management<br />
Supply<br />
Chain <strong>Planning</strong><br />
Inventory<br />
Optimization<br />
• <strong>Planning</strong> driven from key performance indicators to engage managers and<br />
planners<br />
• Aggregate roll up for financial reconciliation; supports $ to units synchronization<br />
• Workflow coordinates <strong>the</strong> process and drives consensus process to ga<strong>the</strong>r sales<br />
forecast, customer demand, financial plans and operational plans<br />
• Works with Oracle ERP and legacy ERP applications<br />
• What-if simulation scenarios to examine alternative plans<br />
• Strategic supply chain analysis and inventory planning<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 6 | October 2010
Sales & Operations<br />
<strong>Planning</strong><br />
Deb Bene’<br />
<strong>Business</strong> Solutions Mgr.<br />
Emerson Program Management Office<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 7 | October 2010
Emerson At-A-Glance<br />
$20.9 Billion in sales (2009)<br />
NYSE: EMR<br />
Diversified global<br />
manufacturer<br />
and technology provider<br />
Approximately 129,000<br />
employees worldwide<br />
Headquarters in<br />
St. Louis, Mo.<br />
Manufacturing and/or sales presence in more than 150 countries<br />
255 manufacturing locations, 155 outside <strong>the</strong> U.S.<br />
No. 94 on 2009 FORTUNE 500 list of America’s largest corporations<br />
Founded in 1890<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 8 | October 2010
2009 Emerson<br />
Summary<br />
Sales<br />
Employees<br />
2009<br />
$20.9B<br />
129K<br />
International Sales Have<br />
Exceeded 50% Since 2007<br />
Mfg Plants<br />
US & Canada 100<br />
Europe 70<br />
Asia 46<br />
ROW 39<br />
Total 255<br />
Consumer<br />
Appliance &<br />
Tools<br />
Climate<br />
Technologies<br />
Network Power<br />
Electronics<br />
Asia<br />
2009 Sales by Segment<br />
Europe<br />
ROW<br />
Process<br />
Management<br />
Industrial<br />
Industrial<br />
Automation<br />
2009 Sales by Geography<br />
United<br />
States<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 9 | October 2010
Emerson Is a Leader in Its Core Global <strong>Business</strong>es &<br />
Markets<br />
#1 AC & DC Power Systems<br />
#1 OEM Embedded Power<br />
#1 Precision Cooling Systems<br />
#1 Control Valves<br />
#1 Measurement Devices<br />
#1 Compressors<br />
#1 Controls<br />
#1 Alternators<br />
#1 Fluid Control<br />
#1 Ultrasonic Welding<br />
#1 Garbage Disposers<br />
#1 Appliance Components<br />
#1 Fractional Motors #1 Storage Solutions #1 Plumbing Tools<br />
#1 Wet/Dry Vacuums<br />
#1 Pressing Tools/Jaws<br />
#1 CCTV Inspection Systems<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 10 | October 2010
Emerson’s Products and Brands<br />
Emerson Process Management<br />
Valves & Regulators<br />
Systems & Solutions<br />
Measurement<br />
Emerson Network Power<br />
<strong>Integrated</strong> DC Power Cabinets<br />
Transfer Switches<br />
DC Power Systems<br />
Enterprise Monitoring<br />
High Density Precision Cooling<br />
Precision Cooling<br />
UPS<br />
RF Connectors<br />
Mobile Chargers<br />
OEM Power<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 11 | October 2010
Emerson’s Products and Brands<br />
Emerson Industrial Automation<br />
Valve Controls<br />
Sheaves, Sprockets<br />
Solenoid Valves<br />
Pneumatic Valves<br />
Variable Speed Drives<br />
Gearing<br />
Bearings<br />
Generators<br />
Electric Motors<br />
Motion Controls<br />
Plastic & Metal Joining<br />
Emerson Appliance Motors and Tools<br />
Appliance<br />
Motor<br />
s<br />
Storage Solutions<br />
Professional Tools<br />
Thermal Sensors &<br />
Controls<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 12 | October 2010
PMO Scope of Services<br />
Applications Strategy for Standard Programs<br />
• Data and Configuration Standards<br />
• Process Design & Best Practices<br />
• Deployment Models & Roadmaps<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 13 | October 2010<br />
Application Services<br />
• Service Management<br />
• Implementation and Support Services<br />
• Subject Matter Expertise (Project Assistance)<br />
• Strategy & <strong>Planning</strong><br />
• Implementation<br />
Corporate Applications Management<br />
Project Governance<br />
• IT Project Lifecycle Process<br />
• Risk Management (SOX Compliance)<br />
• Service Model<br />
• Project Metrics
Demand <strong>Planning</strong> and S&OP – Maturity and Technology Roadmap<br />
Maturity<br />
Levels<br />
Phase 1 Phase 2 Phase 3 Phase 4<br />
Advanced<br />
(Optional)<br />
Technology<br />
Enabler<br />
MS Excel and O<strong>the</strong>r data<br />
consolidation tools<br />
Demantra Demand Management<br />
Demantra Real Time S&OP<br />
Technology<br />
Description<br />
Manual<br />
collection of<br />
demand and<br />
manually input<br />
to Excel<br />
•Dissimilar<br />
data formats<br />
Minimum<br />
version<br />
control<br />
•Multi-source<br />
collection and<br />
visibility of<br />
demand and<br />
supply data<br />
•Consolidates data<br />
into Excel or o<strong>the</strong>r<br />
data consolidation<br />
tools with version<br />
management<br />
•Share drive and<br />
email coordination<br />
•Consolidation<br />
of demand data<br />
•Capability to<br />
perform “What if<br />
Scenarios”<br />
•Integration ERP<br />
system(s)<br />
•Use manual<br />
process for<br />
Consensus FC<br />
•Component<br />
Forecasting<br />
(<strong>Planning</strong> BOM)<br />
•Collaboration<br />
•Use Work flows<br />
for approvals<br />
•Integration of<br />
Supply-data to<br />
understand<br />
supply impact of<br />
each plan<br />
•Facilitate End-to-<br />
End Demand<br />
Analysis<br />
•Define Key<br />
<strong>Business</strong> Metrics<br />
Demantra Adv<br />
Forecasting<br />
•Use of Causal<br />
factors,<br />
econometrics<br />
•Advanced<br />
statistical<br />
analysis (If<br />
applicable)<br />
Demantra introduced during Phase 3 level to build<br />
integration of demand driven value stream.<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 14 | October 2010
Vision: <strong>Integrated</strong> Supply Chain to Drive Enterprise<br />
Excellence<br />
Demand<br />
Plan<br />
S&OP<br />
Global Supply Chain Planner<br />
Marketing F/A & S/A SC Planner<br />
Build<br />
Plan<br />
Material<br />
Plan<br />
Global Supply Chain<br />
5-Year<br />
End of Pipe Metrics<br />
External Customer<br />
RDSL =<br />
PDSL =<br />
Purchasing<br />
(IPO)<br />
Suppliers<br />
(Material Plan Execution)<br />
In Bound<br />
Logistics<br />
Distribution & Product Co.<br />
Customer<br />
Internal Operations<br />
ITO =<br />
Customer<br />
Care<br />
Final Assembly<br />
Sub-Assembly<br />
Out Bound<br />
Logistics<br />
Customer<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 15 | October 2010<br />
Buyers<br />
(IPO)<br />
(Build Plan Execution)
Established a Consistent, Actionable Consensus<br />
<strong>Planning</strong> Process: “One Plan”<br />
POR<br />
$<br />
Plan<br />
Upside<br />
SC Planners<br />
WA<br />
Marketing<br />
Project<br />
Pursuit<br />
Team<br />
Historical<br />
Demand<br />
Market<br />
Intelligence<br />
Mega<br />
Project<br />
Input<br />
Demand Plan<br />
Unit<br />
($ & Unit)<br />
Plan<br />
Build Plan<br />
Material<br />
Plan<br />
Planned<br />
Order<br />
(Supplier<br />
Forecast)<br />
Firmed PO<br />
(Actual PO)<br />
Supplier<br />
iSupplier Portal<br />
Demand Plan<br />
• Model Family<br />
Volume & Mix<br />
(monthly Model<br />
Family forecast)<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 16 | October 2010<br />
Build Plan<br />
• Weekly<br />
Production<br />
Plan by<br />
Production<br />
Line<br />
Master Scheduling<br />
• Mix Percent<br />
• Weekly Material Plan<br />
to support Build Plan<br />
(option piece parts)<br />
MRP<br />
• FDS<br />
• MOQ<br />
• Safety Stock<br />
• Default PO LT<br />
etc<br />
16
Key Messages : Sales & Operation <strong>Planning</strong><br />
• Reduces operations cost by<br />
optimizing asset management<br />
through better planning<br />
• Is <strong>the</strong> key driver in managing and<br />
reducing complexity<br />
• Increases sales and customer loyalty<br />
by improving RDSL & PDSL<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 17 | October 2010
Reduces Operations Cost by Optimizing Asset<br />
Management through Better <strong>Planning</strong><br />
• Demand Management Tool – Demantra<br />
› Demand Plan<br />
- Statistical Forecast Aligned with Country <strong>Planning</strong><br />
› Hub Build Plan<br />
- Linkage with Demand Plan and Capacity<br />
› Primary Producer Build Plan<br />
- Linkage with Hub Build Plans<br />
› Material Plan<br />
- Improve Option forecast<br />
• Global <strong>Planning</strong> Organization<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 18 | October 2010
Established President Led Closed Loop Manual<br />
S&OP Process<br />
Week 1 Week 2 Week 3 Week 4<br />
America<br />
AP<br />
Global<br />
World Area<br />
S&OP Review<br />
EMEA<br />
World<br />
Area<br />
World<br />
Area<br />
Sales<br />
Plan<br />
Historical Sales Data +<br />
Project Template<br />
In Demantra<br />
Global<br />
Product<br />
Marketing<br />
World<br />
Area<br />
Factory<br />
Build<br />
Plan<br />
F/A<br />
Primary<br />
Producer<br />
Build Plan<br />
S/A<br />
Material Plan/ Option<br />
Mix<br />
Supplier Plan<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 19 | October 2010
Our Complex Product Offerings of Model Family and<br />
Options has been a Challenge to Improve Part Forecast<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 20 | October 2010
Implemented Demantra Software to Improve Forecast<br />
Accuracy and Enable Plan Linkages<br />
Historical<br />
data<br />
Multiple<br />
causal<br />
factors<br />
Seasonality<br />
Causal<br />
Analysis<br />
Outlier<br />
Detection<br />
Bayesian<br />
Estimator<br />
Bayesian<br />
Optimizer<br />
Promotion<br />
Events<br />
Combined<br />
model<br />
Trend<br />
Cyclical<br />
Patterns<br />
Forecast<br />
• Statistical Forecasting<br />
› Bayesian-Markov Mixed Model<br />
› Causal Forecasting<br />
• Consensus <strong>Planning</strong><br />
• Linkage <strong>Between</strong> Demand, Build, &<br />
Material Plan<br />
› Option Mix is Defined for Individual<br />
Model and Applied to its Respective<br />
Model Family Growth<br />
• Econometrics<br />
Results:<br />
‣ Result of 5 sites that are supported by<br />
Demantra (Global <strong>Planning</strong>) and IPO<br />
(Centralized Buying):<br />
‣ <strong>Business</strong> declined by 8.3%<br />
‣ Raw inventory reduced by 35%<br />
‣ Material Fill rate improved by 43%<br />
Closed Loop President Led Process<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 21 | October 2010<br />
21
There is still significant risk in <strong>the</strong> S&OP<br />
Plan versus Pd10 POR, $Min Q4<br />
*Includes 3 days sales accrual for September 28 - 30. ($1.4M / day Americas, $500k / day AP, $700k/day Europe)<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 22 | October 2010
Demantra <strong>the</strong>n Links World Area Demand<br />
Plan to Hub Build Plan…<br />
1. Demand Plan +/- Intracompany<br />
demands<br />
2. Smooth out large buckets of backlog<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 23 | October 2010<br />
3. Do not plan builds and material for<br />
finished goods
Hub Build Plans are fur<strong>the</strong>r Linked to<br />
Production Lines, incorporating Capacity<br />
Actual Build<br />
Max Capacity<br />
Min Capacity<br />
Build Plan<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 24 | October 2010
Demantra Fur<strong>the</strong>r Connects <strong>the</strong> Hub Build Plan to <strong>the</strong><br />
Primary Producer Build Plan<br />
Primary Producer Plan is Tightly Linked<br />
to Hub Plans<br />
40%<br />
30%<br />
Primary Producer<br />
Plan is Independent<br />
of <strong>the</strong> Hub Plans<br />
Oracle ASCP<br />
15%<br />
15%<br />
Planned<br />
Order to<br />
RTC<br />
Planned<br />
Order to<br />
RTC<br />
Wessling MRP SMMC MRP Beijing MRP<br />
Planned<br />
Order to<br />
RTC<br />
RTC Total WW Supply<br />
5<br />
%<br />
F/A<br />
Forecast<br />
RTC S&OP<br />
F/A<br />
Forecast<br />
Wessling S&OP<br />
F/A<br />
Forecast<br />
SMMC S&OP<br />
F/A<br />
Forecast<br />
Beijing S&OP<br />
Global Supply<br />
Chain Planner<br />
F/A<br />
Forecast<br />
Oracle ASCP<br />
RTC S&OP<br />
F/A<br />
Forecast<br />
Wessling MRP SMMC MRP Beijing MRP<br />
Wessling S&OP<br />
F/A<br />
Forecast<br />
SMMC S&OP<br />
F/A<br />
Forecast<br />
Beijing S&OP<br />
After Demantra<br />
RTC Planner<br />
Wessling<br />
Planner<br />
SMMC<br />
Planner<br />
Before Demantra<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 25 | October 2010
Option Forecast Based on Part Usage and Highest<br />
Usage Model Growth Rate (Before Demantra)<br />
Flange Mix<br />
Historical Usage<br />
Historical Mix %<br />
225 770 500<br />
15% 52% 33%<br />
Forecast based on<br />
Highest Usage<br />
Growth Rate<br />
1495 X (1+10%) =2173<br />
326 + 1130 + 717<br />
=2173<br />
Disconnect<br />
Forecast<br />
Growth Rate<br />
500<br />
20%<br />
1100<br />
10%<br />
75<br />
825%<br />
300<br />
7%<br />
3051SC<br />
3051C Rev 1 3051C Rev 5<br />
3095<br />
Forecast Mix does not Account for Different Model Growth Rates<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 26 | October 2010
Option Mix is Defined for Individual Model and Applied to its<br />
Respective Model Family Growth (After Demantra)<br />
3051SC<br />
3051C Rev 1 3051C Rev 5<br />
3095<br />
Direct<br />
Connect<br />
Model Forecast<br />
Growth Rate<br />
500<br />
20%<br />
3051SC Flange Mix<br />
1100<br />
10%<br />
Rev 1 Flange Mix<br />
75<br />
825%<br />
Rev 5 Flange Mix<br />
300<br />
7%<br />
3095 Flange Mix<br />
Model<br />
Family Mix %<br />
10% 25% 40%<br />
20% 45% 10%<br />
15% 40% 20%<br />
0% 30% 45%<br />
Flange Forecast<br />
395 + 1038 + 629<br />
=2062<br />
Forecast Mix Completely Accounts for Each Model Mix<br />
Change and Growth Rate<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 27 | October 2010
Key Messages : Sales & Operation <strong>Planning</strong><br />
• Reduces operations cost by optimizing<br />
asset management through better<br />
planning<br />
• Is <strong>the</strong> key driver in managing and<br />
reducing complexity<br />
• Increases sales and customer<br />
loyalty by improving RDSL & PDSL<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 28 | October 2010
Managing <strong>the</strong> Complexity through<br />
Product Segmentation<br />
ATO<br />
BTO<br />
ETO<br />
PTO<br />
On-Demand<br />
Specials<br />
Buyouts<br />
(Fast Track)<br />
A#, T#, MA#,<br />
N#, R#,<br />
W#, K#, D#, P#,<br />
F#, V#…<br />
Service<br />
Level<br />
RDSL PDSL PDSL PDSL<br />
<strong>Business</strong><br />
Driver<br />
Speed<br />
Availability<br />
Product Variety<br />
Premium Price<br />
Customization<br />
Premium Price<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 29 | October 2010
Vision: <strong>Integrated</strong> Supply Chain to Drive<br />
Enterprise Excellence<br />
Demand<br />
Plan<br />
Global Supply Chain Planner<br />
Marketing F/A & S/A SC Planner<br />
S&OP<br />
Build<br />
Plan<br />
Material<br />
Plan<br />
Global Supply Chain<br />
5-Year<br />
End of Pipe Metrics<br />
External Customer<br />
RDSL =<br />
PDSL =<br />
Purchasing<br />
(IPO)<br />
Suppliers<br />
(Material Plan Execution)<br />
In Bound<br />
Logistics<br />
Distribution & Product Co.<br />
Customer<br />
Internal Operations<br />
ITO =<br />
Customer<br />
Care<br />
Final Assembly<br />
Sub-Assembly<br />
Out Bound<br />
Logistics<br />
Customer<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 30 | October 2010<br />
Buyers<br />
(IPO)<br />
(Build Plan Execution)
E-Global Supply Chain – Global Buying<br />
BMMC<br />
GTMC<br />
Supplier<br />
RTC<br />
Global Buyer<br />
Wessling<br />
SMMC<br />
BMMC<br />
RTC<br />
GTMC<br />
SMMC<br />
ASCP<br />
Portal / CP<br />
Portal<br />
Supplier<br />
Wessling<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 31 | October 2010
Implementing Systems to Enable<br />
<strong>Integrated</strong> Supply Chain Why is this critical to <strong>the</strong><br />
company?<br />
• Improving <strong>the</strong> SPEED and<br />
SYNCHRONIZATION of<br />
our Supply Chain results<br />
in competitive advantage<br />
• FY 12 Key Strategic Plan<br />
Measures it Improves<br />
– Service Level (RDSL<br />
and PDSL)<br />
– Inventory reduction<br />
(DOH)<br />
– Increased Profit (cost<br />
reduction)<br />
– Share Gain (customer<br />
satisfaction)<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 32 | October 2010
VCP <strong>Business</strong> Processes & Solutions<br />
Supply Chain <strong>Planning</strong><br />
Inventory Management<br />
Inventory Optimization<br />
DRP<br />
Inventory<br />
Reduction<br />
VCP<br />
Profitable<br />
Revenue<br />
Growth<br />
Deal Management<br />
TPM (CG)<br />
DSR<br />
Assortment Opti<br />
Price Management<br />
Assets<br />
Sales & Operation <strong>Planning</strong><br />
<strong>Integrated</strong> <strong>Business</strong> <strong>Planning</strong><br />
Manufacturing Insights<br />
Optimization<br />
&<br />
Utilization<br />
Sourcing Optimization<br />
Assets Optimization<br />
Network Optimization<br />
Plant Resource Management<br />
Production Scheduling<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 33 | October 2010
SUCCESSIVE<br />
REFINEMENT<br />
Executive Dash<br />
Boarding<br />
Sync with<br />
Finance<br />
Cycle continues …<br />
<strong>Business</strong> as Usual<br />
“How do I<br />
schedule my plant<br />
to maximize ROA”<br />
DRIVE<br />
EFFICIENCY<br />
(PLANT LEVEL)<br />
Executive S&OP Review<br />
“Where are my<br />
issues?”<br />
COMMAND AND<br />
CONTROL<br />
5<br />
1<br />
4<br />
Imbalance<br />
End to End VCP<br />
Command &<br />
Control<br />
Sales and Account Teams<br />
Demand Review<br />
“Can I impact <strong>the</strong><br />
market demand?”<br />
SENSE AND<br />
CREATE<br />
DEMAND<br />
2<br />
3<br />
Demand Management<br />
Consensus Demand<br />
Supply Review<br />
“Will network changes<br />
help me meet demand<br />
more profitably?”<br />
MANAGE RISK<br />
PLAN NETWORK<br />
SET RULES<br />
Sourcing rules, etc<br />
Plant Specific Plan<br />
Manufacturing<br />
Operational Supply Demand Balancing<br />
“Am I assured that I'm deploying and<br />
producing in alignment with my S&OP plan?”<br />
EXECUTE PLAN & MANAGE<br />
EXCEPTIONS (E2E)<br />
Sourcing &Supply Chain<br />
<strong>Planning</strong><br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 34 | October 2010
World Class Supply Chain Solutions<br />
Complete. Open. <strong>Integrated</strong>. Modular<br />
Focus on return on assets<br />
Optimize inventory holdings and<br />
deploy inventory networks<br />
Use advanced statistics and<br />
causal factors<br />
Real-Time Sales and Operations<br />
<strong>Planning</strong><br />
Focus on return on assets<br />
Optimization<br />
Eliminate<br />
spreadsheets<br />
Manage rolling forecasts<br />
Collaborate with all constituents<br />
on one number<br />
Use basic statistics, alerts, and<br />
seeded worksheets<br />
Deploy fast MRP across multiple<br />
ERP instances<br />
Optimize networks and sourcing<br />
decisions<br />
Collaborate with customers<br />
Constraint based supply chain<br />
planning<br />
Executive dashboards and<br />
reporting<br />
Manage rolling forecasts<br />
Collaborate with all constituents<br />
on one number<br />
Use basic statistics, alerts, and<br />
seeded worksheets<br />
Deploy fast MRP across multiple<br />
ERP instances<br />
Optimize networks and sourcing<br />
decisions<br />
Collaborate with customers<br />
Constraint based supply chain<br />
planning<br />
Executive dashboards and<br />
reporting<br />
Manage rolling forecasts<br />
Collaborate with all constituents<br />
on one number<br />
Use basic statistics, alerts, and<br />
seeded worksheets<br />
Deploy fast MRP across multiple<br />
ERP instances<br />
Incremental Value<br />
Effectiveness Efficiency<br />
Competitive Necessity<br />
From less complex to best in class<br />
Competitive Advantage<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 35 | October 2010<br />
Evolve at your own pace to a best in class solution
Key Takeaways<br />
• Value Chain <strong>Planning</strong> implementation is a journey, not a project<br />
– each phase has its own short time to value, but one should<br />
have a long term vision.<br />
• Start Anywhere – Focus on <strong>the</strong> highest bang for your buck<br />
within each BU/Region and don’t wait for ERP Implementation or<br />
upgrade<br />
• Pick your critical “green” KPIs – one cannot be perfect at all<br />
measures – which KPIs defines you as a company, and meet<br />
your strategy?<br />
• Create transparency between All departments, Sales, Marketing,<br />
Finance, and SC and align your Supply with your<br />
Opportunities<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 36 | October 2010
Additional Information About<br />
Oracle Value Chain <strong>Planning</strong> visit<br />
www.oracle.com\goto\vcp<br />
Questions: deb.bene@emerson.com<br />
Mark.gordon@oracle.com<br />
Thank you!<br />
© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 37 | October 2010
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