oracle r12 supply chain management solution: cisco's business
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Oracle R12 Supply Chain Management Solution: Cisco's Business Transformation Case Study
Saravanan N IT Systems Engineer
Cisco Inc
Sep 25, 2013
Rachna Mittal Lead Consultant (Consulting & SI)
Infosys Ltd
Agenda
Cisco Value Chain
Cisco’s Agile & Flexible Supply Chain Transformation
Supply Chain transformation using Oracle Value chain Enabler’s
Supply chain solution highlights
Recap
Questions & Answers
Customer Profile
About Cisco
• Worldwide leader in networking
• Founded 1984
• FY13 revenue of $48B
• ~70,000 employees
• >165 countries
• >150 acquisitions
Broad range of products, solutions
and services
Strategy
Solve our customers’ most important business challenges by delivering intelligent networks and technology architectures built on integrated products, services, and software platforms
Vision
Change the way the world works, lives, plays, and learns. To Lead Every Move We Make with Networked IT
Agenda
Cisco Value Chain
Cisco’s Agile & Flexible Supply Chain Transformation
Supply Chain transformation using Oracle Value chain Enabler’s
Supply chain solution highlights
Recap
Questions & Answers
Customer Profile
Cisco Value Chain Evolution Through Market Transitions
Cisco Owned Manufacturing
Outsourced Manufacturing
Lean Manufacturing Customer Value Chain
1980s 1990-2000 2001-2009 2010-2013
Core vs. Context Separation
of Activities
Pull-Based Manufacturing
and
Inventory Reduction
Collaboration
Large Scale Services
Cisco Value Chain Is Complex and Global
CTO Partners
BTS Partners
3PL Partners
Key Stats
• > 1000 Suppliers
• ~ 35, 000 Components
• ~ 33,000 Products
• 5 Mfg Partners, Local sites in Brazil,
Russia
•
Offerings
• Hardware
• Software
• Services
• Bundles
Business Models
• CTO Fulfillment
• BTS Fulfillment
• Any Node Any Product distribution
• S/W Supply Chain
Agenda
Cisco Value Chain
Cisco’s Agile & Flexible Supply Chain Transformation
Supply Chain transformation using Oracle Value chain Enabler’s
Supply chain solution highlights
Recap
Questions & Answers
Customer Profile
Imperative for Company Growth,
Revenue Uplift, Global
Consistency, Simplification,
Speed, and Scalability
Enable new business models such as Software as a Service (SAAS) and bundling
Capitalize on revenue opportunities through full buy and sell capabilities in emerging markets
Provide a single foundational platform mitigating current
resiliency issues and promoting scalability
Align with industry standards and best practices
Without a dramatic change in the way Cisco transacts business, Cisco risks leaving substantial revenue on the
table and increasing vulnerability to competitors.
Drivers of Supply Chain Transformation
Improve acquisition efficiency, accelerating Cisco’s time-to-value and time-to-monetization from
acquired entities
Enhanced business capabilities such as Build
to Stock (BTS)
Extended access to emerging
markets
Supply chain shift from Work Order
to Purchase Order based model
What is SC Transformation?
Ability to rapidly integrate acquired
companies
Supply Chain Transformation Initiative Simplicity. Scale. Speed.
Upgrade of Enterprise
Resource Planning (ERP) System
Foundational technology to
enable new business models
What business results are expected?
…to Operations
Reduced touches – estimated 25% reduction in manual touches
Quicker time to market – estimated 30% reduction in time to market
Scalability and agility
Enhanced acquisition efficiency
Dramatically improved system resiliency
…to Cisco employees
Shift from contextual to core work
Elimination of known inefficiencies and painful workarounds through increased automation
Enhanced international career opportunities
…to Customers and Partners
New Business Models
More self-service options
Increased satisfaction levels and ease of doing business
Up to a 73% reduction in cycle times
New ways to structure deals: enhanced contracting, progress-based billing, solutions selling, New Business Models
Increased global market share – BRICM and emerging market penetration
Increased profitability through a 12% target reduction in the cost-to-serve ratio
Ability to focus on high-value customers through a tiered engagement model
…to Cisco’s Growth & Profitability
Approach And Methodology Common process flow and global design adherence
Adopt Standardization and best practices
Apply Localization Rules if applicable
Out of Box processes
Change Management
Program Management for lane enablement
On-time shipment, SLA measurement
Load testing, Data generator
Fine Tuning supply chain Processes
Monitoring tools, Seamless transactional flow
Industry Tailored Business Flows pre-built
Template & Questionnaire approach
Integration with upstream / downstream / other products
EDI /Rosetta net Integration Pack for most common industry
requirements
E2OPEN integration with trading partners
Documentation standards -Oracle A.I.M Naming Standards
Configuration, documents and templates
Self Service Solution Videos
Global Design
Partner Enablement
Performance and Monitoring
Pre-Built Industry Processes
Integration Framework
Toolkit
Supply
Chain
Solution
Agenda
Cisco Value Chain
Cisco’s Agile & Flexible Supply Chain Transformation
Supply Chain transformation using Oracle Value chain Enabler’s
Supply chain solution highlights
Recap
Questions & Answers
Customer Profile
Final Config, Pack & Ship
Target Landscape
Logistics Partner / Cariers
Inventory
receipt Stage
shipment
Ship Label
Manufacturing Partner
Backlog
Build
Pack & Ship
Manufacturing & Distribution
Inbound Signal & Ship Instructions
Master Data Sync Up
Billing Advices & Returns
Rcpt Confirm Ship Confirmation
Forecast & Build Signal
Fleet
Information Milestone
Report
B
2
B
I
n
te
rf
a
c
e
Order Scheduling Payables
Order Management Supplier Returns
Master Data Management Cost Management
Procurement Flow Manufacturing
Sourcing & Negotiation Work In Process
Shipping LPN Track & Trace LPN
Flexible Routing Return to Mfg
Pick Release Ship Confirm
Shipping Control Route Options
Rate Shopping Freight Pricing
Event Management Change Plan
• Procurement
• Order Management
• Bills Of Material
• Flow Manufacturing
• Oracle Transportation
Management
• Inventory Management
• Shipping Execution
• Costing
Transportation Management
Port Supplier
Hub Destination
3PL ODM
Mfg
Partner Origin
3PL CISCO
Static Route to Flexible Route Options
Single Leg
Domestic
Direct Ship
Single Leg
International
Multi Leg
International
Manufacturing
Partner 3PL Origin
Warehouse
3PL destination
Warehouse Customer
Oracle Transportation Management & Oracle Shipping Execution
Customer
Cisco’s Logistics Optimization Solution
Agenda
Cisco Value Chain
Cisco’s Agile & Flexible Supply Chain Transformation
Supply Chain transformation using Oracle Value chain Enabler’s
Supply chain solution highlights
Recap
Questions & Answers
Customer Profile
Customer
3rd Party Logistics / Carrier
Mfg Partner
Manufacturing
Partner Site
Quality
Inspection
Assemble Test
Purchase Order
Creation (Partner Systems)
Cisco’s Order Flow
Purchase Order
Procurement Material Sourcing
Customer
Pack-out and
Label Print
Ship/Deliver
Service Rep
Multiple Channels
Oracle
PO Creation Order
Booking & Scheduling
CISCO
Supply Chain Solution C
isc
o
3P
L W
are
ho
us
e
Receive shipment
Plan
PO
Receipt
Receive
Inbound
Change
(in OTM)
PR to CM
w/OTM IB Ship
Instructions Qualify for Full
ShipSet / Create
Delivery
AR Integration
Ca
rrie
r/B
rok
e
r
Pick up
Import & export
filling
Confirm Arrival
Stage product
( Level SID)
Milestone Updates
CM
WAIT for
Carrier
Update
Y
N
Move inv SLC
subinventory
OTM Plan OB Order
Update
Plan
Generate
Docs
Print Docs
Handover to
Carrier Ship Confirm
Ship Confirm
Deliver
Rec
eip
t
Sh
ip P
lan
Sh
ip
Co
nfi
rm
Ship to WH/ASN
Pick
Release
Delayed
RR
Mil
es
ton
es
OTM Shipping
Controls
Receive Shipment
Plan
Prepare Shipment
4B2
3B18
3B2 3B3 In
bo
un
d
3B2
OTM Inbound
Send
Plan
3B18
3B18
Build
Integration Architecture
Data
Source/
Destination
Business
Process
Orchestration
AS2
Gateway Partner
AS2
GW
Logging
DB
CCIX(J2EE Env)
Errors/Logs
CISCO Environment Partner Environment
Backend
System
AS2 Document JMS Request Queue
JMS
Response
Queue
Response
(Sync MDN)
Event Pull
Delivery Status
Update
Request
1 3A4
2
3 3B2 ASN 4
Supply Chain Flow- An Example Order booking and PO to Contract manufacturer
Cisco Order Flow Starts with
customer order booking which
interacts with OTM and derives
the Route Code based on the
Order information
3A4 is sent to the contract
Manufacturer with the PO
number, route and item
information
On completion of the order CM
sends Advance Shipment
Notice to the 3PL Logistics for
build completion via 3B2
message
Purchase Order is created with
the Contract Manufacturer
6 4B2 Inbound
5
7
8
Shipment receipt and LPN assignment
The Logistics Partners receives
the goods and sends a 4B2-
Shipment Receipt Message
Workflow depicts the supply line
eligibility for the order line. The
Order with reservations and
LPN assignment goes to
awaiting shipping
The LPN DFF for the cartons is
used for tracking the movement
of the Goods
The reservations are now intact
for the order line in Intransit
Subinventory and LPN assigned
to the delivery
9
10
11
Inventory movement and delivery creation
12
Validation process seamlessly
create delivery and interface to
OTM through middleware
The LPN Subinventory Status is
changed to FG Subinventory
The delivery creation takes
place after Subinventory
Transfer
The Subinventory Transfer
takes care of the movement
from Intransit to Finished good
Subinventory
OTM: Planning and Supply chain event management
13
15 16
14
OTM Shipment plan creates the
trips and stops in EBS
OTM helps in planning the
order so that it can optimize the
movement of the order from the
origin to the end customer
Supply Chain events like the
carrier picking up the goods and
leaving the origin etc. sent by
3PL and Carrier can be tracked
in the system
The delivery is Now picked
after Trip creation with
reservation at Staging
Subinventory and 3B18 is
sent
3B2 Ship Confirm 3B18
Order Ship confirm
17 18
After customs and trade
compliance validations, The
3B18-Shipment Plan is sent to
the carrier and 3PL partners
Once the goods are picked up
and shipped out for customer
delivery a 3B2 Ship confirm
notification is sent to Cisco
Based on 3B2 SC Received ,
the delivery gets shipped along
with associated trip and stops
closed
E2E workflow of Typical Cisco Sales order
19
20
Implementation Challenges
People
Process
Partnership
System
Program Management
Implementation Challenges
SME Coverage Industry Standards
Simplicity, Speed, Scale
Vanilla Theme
Partner Enablement
Process
Harmonization
Change Management
Agenda
Cisco Value Chain
Cisco’s Agile & Flexible Supply Chain Transformation
Supply Chain transformation using Oracle Value chain Enabler’s
Supply chain solution highlights
Recap
Questions & Answers
Customer Profile
CTO BTS
Any Node Any Product Distribution Direct Customer Ship
Purchase Order Based Fulfillment Model Flow MFG and Consigned Inventory
Process
Heavy Assembly and Test Operations Light Postponement and VMI
G-Hubs, Fulfillment & Logistics Center Consolidated to 3PL Node
Footprint
Fulfillment Lead Time 17 Days Fulfillment Lead Time 3-5 Days
Cycle Time to Replenish 52 Days Cycle Time to Replenish 36 Days
SLA
Final Configuration based Payment Periodic Consumption based Payment
Critical Component (PCBA) Planning Top Assembly based Planning
Cisco’s Flexible Fulfillment Models
Accelerators Technical Know How Functional Value
Adds What it means for
Partner & Customer • Playbooks comprising of pre-
configured process flows,
configuration documents
• Partner message simulator
• Design Templates and Test
Scripts
• Training guides
• System Performance,
scalability for high volume
• Standardize the Partner
Integration Processes and
messages
• Integrating OTM with Third-
Party systems based on
Industry standards processes
• Global rollout strategy for
partner enablement
• Best practices and Oracle OOB
solution
• Standard B2B communication
• Business Process Re-
engineering & Automation
supported by business benefits
• Faster time to market for new
business models
• Pre-built accelerators reduces
time and cost to enable new
partners
• 10-15% reduction in TCO
• Accelerate Cisco’s ability to
bring products to new
geographies
Value Proposition
Industry Benchmark As per Gartner Study, Cisco is well-positioned to
capitalize on major trends driving increased long-term
IT investment. In close partnership with IT, its supply
chain team is focused on proactively enabling Cisco to
break into new markets for its hardware, software and
services-based solutions. Cisco is now thinking about
supply chain as a menu of service offerings and taking
a segmented approach to delivering the right
services for each business at the right cost structure.
Source: Gartner (May 2013)
Agenda
Cisco Value Chain
Cisco’s Agile & Flexible Supply Chain Transformation
Supply Chain transformation using Oracle Value chain Enabler’s
Supply chain solution highlights
Recap
Questions & Answers
Customer Profile
If you have any questions, please contact
Saravanan N sarn@Cisco.com
Rachna Mittal ramittal@infosys.com
TOMORROW
starts here.
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