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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Overview for Oracle Landed Cost Management with Endeca OAUG Cost Management Webinar
Mario Nobre Director, LCM Product Management EBS Supply Chain Management Development November, 2014
Oracle ConfidenMal
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Safe Harbor Statement The following is intended to outline our general product direcMon. It is intended for informaMon purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or funcMonality, and should not be relied upon in making purchasing decisions. The development, release, and Mming of any features or funcMonality described for Oracle’s products remains at the sole discreMon of Oracle.
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Program Agenda
LCM Overview & Value ProposiMon
SoluMon Flow
Landed Cost Analysis
New FuncMonaliMes Highlight
Customer Update
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What is Landed Cost Management?
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Tradi;onal: Total cost of an item once it has arrived at the Buyer’s door Modern: Having full visibility into extended supply chain costs, with the power to use this informaMon as a strategic decision support, accounMng and profitability tool within the organizaMon
Warehousing and Handling Fees
TransportaMon & Insurance
Purchase Price
Customs DuMes, Taxes & Fees
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What Happens When You Cannot Understand, Predict, Plan
‘Risks’ of Hidden Supply Chain Costs
Purchase Price Transporta;on
Insurance
ExpediMng Fees/Warehousing
Customs Du;es & Taxes
Unexpected Fuel Surcharge Other Accessorial Fees
Unplanned Customs Storage
Visible
LANDED COST EXPECTATIONS
Hidden
IT Staff
60% Margin Expected
EXAMPLE IMPACT
0% or Nega;ve Margin Realized
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Landed Cost Roles in Supply Chain
Analytics
Planning
Execution Financials/Costing
Periodic Repor;ng & Measurement Use landed cost data to track KPIs, metrics and uncover trends to address in supply chain processes
From PO Crea;on to Receipt EffecMvely esMmate planned costs and
revise based on order/shipment changes
At Invoicing Receive and process invoices, update inventory valuaMon based on actual data Compare actuals to esMmate for variances
Prior to PO Cost simulaMons used upfront to
strategically support sourcing acMviMes
Landed Cost Lifecycle
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EBS Landed Cost Management
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Analy;cs Execu;on
Planning
• Cost Visibility into the Supply Chain – Accurately reflect the inventory cost – Financials integraMon for quickly view outstanding liabiliMes • Product Profitability
– OpMmize product margins
• Improve global procurement decisions – Decision support for strategic sourcing iniMaMves
– Source efficiently with visibility into cost components
Financials /Cos;ng
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Landed Cost Management SoluMon Flow Oracle E-‐Business Suite
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Business Flow Track Landed Cost throughout the Flow
Receive Goods Capture Invoices Create PO
imulate • Model the landed cost before approval
• Account for esMmated cost in inventory value
EsMmate • Adjust item cost based on invoice amount
Actual
Ship Goods
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S
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• Apply pre-‐defined cost model to derive landed cost for a purchase order
• Drive purchasing decision using simulated landed cost
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Simulate Landed Cost
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Receive Goods
• LCM as a service – Receiving is the first step – LC shipments are automaMcally created based on receipts • Landed costs are calculated with no user intervenMon
• LCM as pre-‐receiving – LC shipments is created first • Accommodate complex shipments with mulMples suppliers • Full flexibility for users can add, delete, or modify system-‐generated charges
– Receipts are created using the LC shipments as source of informaMon
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LCM and Receiving Integra;on EsMmate
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LCM as a Service
Receive Goods
• Receipts are created based on purchase orders
• LC shipments are automaMcally created based on receipt’s informaMon
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• The landed cost components are computed in the ELC • Item price • Charge amounts • Non-‐recoverable tax amounts
• Item valuaMon based on esMmated landed cost
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EsMmate Landed Cost
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• MulMple suppliers in a single LC shipment
• IdenMcal landed cost calculaMon
• Item valuaMon based on esMmated landed cost
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EsMmate Landed Cost in Pre-‐Receiving Flow
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LCM as Pre-‐Receiving
Receive Goods
• The receipts are created based on the LC shipment data
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Capture Invoices • Enter Invoices – Item invoices – Charge invoices (any currency)
• Match invoices to receipts
• Match on receipt drives the communicaMon to LCM
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Actual Landed Cost • Adjust LC based on invoice
• Capture charges in any currency
• Post variances to item cost
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Landed Cost Analysis
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Landed Cost Analysis • Metrics bar
• LC components cloud
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• Total item Actual LC • CumulaMve actual
amount
• EsMmated and actual history
• Detailed informaMon on Landed Cost Shipments table
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Landed Cost Analysis
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• Unit Actual LC • Variance history
• EsMmated versus Actual • Variance percent
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Landed Cost Analysis
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• Compare landed costs • Of categories, single
item, etc. • Across mulMple
dimensions such as suppliers, countries, etc.
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Landed Cost Analysis
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• Compare landed costs • Supplier site country
perspecMve
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Landed Cost Analysis
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• Unplanned charges
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Landed Cost Analysis
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New FuncMonaliMes Highlight
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New FuncMonaliMes Highlight • Set LC calculaMon for specific items • Review shipments before receiving in LCM as a service • Update esMmated amounts before invoicing • Payables matching enhancements • Cost Management Components for Endeca
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New FuncMonaliMes Highlight
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Calcula;on For Specific Items
• Landed cost is calculated only for items in the category set
• Implemented on 12.2.2
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New FuncMonaliMes Highlight
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Review shipments before receiving in LCM as a service
• Review the cost components before its posted into the inventory value
• Define rules to idenMfy specific receipts which must be reviewed
• Implemented on 12.2.2
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New FuncMonaliMes Highlight
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Update Es;mated Amounts
• Update esMmated amounts before invoicing – Via shipments workbench – Via mass update API (12.2.4)
• Implemented on 12.2.2
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New FuncMonaliMes Highlight
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Payables Matching Enhancements
• Match charge invoices in any currency
• Use landed cost informaMon to find candidate receipt lines
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New FuncMonaliMes Highlight
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Payables Matching Enhancements
• Review landed cost informaMon during charge invoices matching
• ValidaMon framework for charge invoice matching
• Implemented on 12.2.4 – Available for 12.1.3
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
New FuncMonaliMes Highlight
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Cost Management Extensions for Endeca
Period Health Check
TransacMon AccounMng Register
Monitor Daily OperaMons
Landed Cost Analysis
Real-‐Mme InformaMon Discovery & Analysis
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Customer Update
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Customers Overview • Sold to 230+ customers around the world FY15-‐Q1
• Top Selling Industries – Wholesale & DistribuMon – Natural Resources – Industrial Manufacturing, AutomoMve
– Consumer Goods – Foods and Beverages
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108
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APAC
LAD
NA
MEA
Europe
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Q&A
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