oracle demantra overview & utilization in a demand driven supply network curtis ardle february...
Post on 24-Dec-2015
237 Views
Preview:
TRANSCRIPT
Oracle Demantra Overview & Utilization in a Demand Driven Supply Network
Curtis Ardle
February 22, 2008
Emerging Solutions
• Myself
• Emerging Solutions– Founded 1997– Headquarter in Chicago– Office in Minneapolis– Oracle EBS Practice– PeopleSoft– Hyperion– 100% Reference-able Client List
Agenda
• Demand Driven Supply Chain Network– What is it?– Benefits– Best Practices
• Oracle Demantra– Demand Driven Adaptive Planning– Key Capabilities– Applications w/in Suite
• Conclusion
What is Demand Driven?
• It essentially is a supply chain driven by your customers.• It means running your company on more real time information.• Fundamental shift on how to do business.• Linking supply with demand with products.
SUPPLY
PRODUCT
DEMAND
Benefits Recognized
• For Your Company
• For Your Shareholders (w/ 10% improvement on perfect orders)
15% Less
Inventory
35% Shorter Cash to
Cash
17%Stronger
OrderFulfillmen
t
Gain2.5%
Profits
Gain5%
ROA
Gain$.50 EPS
*AMR Research: Hofman, Debra, “Mastering Supply Chain Excellence”
Best Practices
• Collaborate Internally & Externally
• Use Your Data
• Use Intelligence, not just Algorithms
• Establish and Execute S&OP
• Focus on Process First
Collaborate Internallyand Externally
Marketing
Sales
SCM
Finance
Use Your Data
Sales HistoryNational
Weather Service
Syndicated Data
Consumer Demographics
RFID
POS
•Promotion response
•Account for demographics
•Reduce latency, dampening
VMI
•Exception handling
Use Intelligence
Algorithms can never replace intelligence.
S&OP Management Meeting
Demand Meeting-Consensus forecast-Causal factors
Marketing / Sales Meeting-Product mix changes-Promotions-Sales quotas-Customer collaboration
Supply Meeting- Production plan-Inventory plan-Supplier collaboration
Balance supply and demand
Synchronize all operational plans
Sales & OperationsPlanning
Finance & Budgeting
Process Excellence
Systems can increase visibility
Good processes capitalize
on this visibility
What It Means- Demand Visibility
• Sensing– Utilize granular data– Know and utilize causal factors and product
attributes
• Shaping– Optimize promotion effectiveness
• Response– Validate business plans– S&OP to synchronize company
Forecast-Driven Planning
Predictive - use formulas and history to forecast demand
Uses “buffers” to absorb demand shocks
Expensive use of working capital
Oracle DemantraDemand Driven Planning
Demand-Driven Planning
Demand Sensing: Uses demand signals to plan and manage supply
Demand Shaping: Uses strategies and information to shape demand
Demand Response: Fulfillment based on customer requirements
Advanced Planning Solution
Best in Class Processes
Integrated Planning
Network Design
Demand Sensing / Shaping Postponement
OptimizationSupply
PlanningPromise,
Distribute, Replenish Worksheets,
Workbenches, Workflow
SC Risk Management
Demand Driven
NetworkS & OP
Operational Excellence
Internal & External
Collaboration
Role Based
Demantra Modules
• Demand Management
• Advanced Forecasting and Demand Modeling
• Real Time Sales & Operations Planning
• Trade Promotion Optimization
• Predictive Trade Planning
• Deduction & Settlement Management
Demand Management
• Core Application• Statistical Forecasting
– 9 Models– 23 Causal factors
• Attribute Based Forecasting– Analyze and group by
attributes– Business rules for product
level modeling
• Manage at any Level– Time– Product– Location
• New Product Introduction• Assumption Planning
– Supports qualitative forecasting
– Current & past assumptions modeled
• Shape modeling– Use comparable products– Generate and align to
demand
• Editing, Reporting, Analysis, Collaboration, Events & Exceptions
Advanced Forecasting and Demand Modeling
• Statistical Forecasting– Additional 6 models, – Unlimited causal factors
• Compute & Display – Live read-write capability– Individual causal contribution – Cross-correlations
• New Product Introduction
• Base & Lift Decomposition
Real-Time S&OP
• Worksheets & Workflows– Collaborative planning
• Balance Supply & Demand– All demand in one place– Plan across orgs with real-time data
• Synchronize– Assimilate Sales, Finance, Marketing and
Supply Chain– Ability to monitor variability– Measure performance and drive accountability
Predictive Trade Planning
• Define Promotions
• Compute Lift, Halo, & Cannibalization
• Scenario Evaluation
• Promotion Effectiveness Engine
• Base & Lift Decomposition
• Trade Planning Worksheets
Trade Promotion Optimization
• Optimum Promotions to Maximize ROI– Measure / Predict Lift, Cannibalization, Pantry
Loading– Automates promotion analysis– Run promotion scenarios and recommend best
promotions to run– Integrates with overall single demand plan
Deduction & Settlement Management
• Reconcile Deductions and Payments– Supports key methods– Smart matching– Auto matching
• Ease Administrative Burden
What It Means - Demantra
• Demantra in A Demand Driven Network– Collaborate Internally & Externally– Use Your Data– Use Intelligence, not just Algorithms– Establish and Execute S&OP– Focus on Process First
Demand Visibility
Demantra - Demand Driven
Sensing Shaping Responding
•Support Multiple Demand Sources
•Flexible Data Models
•Granular Visibility
•Support VMI & CPFR
•Bayesian Markov
•Mixed Model Forecasting
•Support Causal Factors
•Optimize Promotions
•Bottom Up, Top Down, Middle Out
•Attributes & Characteristics
•Chaining and Shape Modeling
•Collaboration
•Exception Handling
•Workflows and Worksheets
Questions?Questions?
Thank YouThank You
top related