jeff johnson, managing director redgalaxy consulting...

Jeff Johnson, Managing DirectorRedGalaxy Consulting Group

“Without changing our patterns of thought, we will not be able to solve the problems that we created with our current patterns of thought.” – Albert Einstein

March 13, 2014Winter 2014 NCOAUG Training Day

Oracle Value Chain applications provide the underlying technology platform to manage your global supply chain. However, to realize the full benefits of real-time visibility of goods traversing the supply chain, integration is required with 3rd party logistics providers, suppliers, distributors, retailers, and in some cases end customers and product users. RedGalaxy will review case studies for companies who have achieved this level of visibility and discuss the benefits achieved and continuous improvement opportunities.

Outline

• Supply Chain Visibility Definition

• Current Business Challenges

• Evolution & Maturity Curve

• Supply Chain Visibility Control Tower

• RedGalaxy Point-of-View

• Discussion of Examples: Zebra Technologies

Abstract & Outline

“End-to-end supply chain visibility (E2ESCV) provides controlled access and transparency to accurate, timely, and complete event and data – transactions, content, and relevant supply chain information – within and across organizations and services operating supply chains.” – Gartner

Definition of End-to-End Supply Chain Visibility

Source: Aberdeen Group, May 2013

Growing Complexity Reflected In Numbers

Growing globally• 85% reporting import shipments• 88% reporting export shipments

Growing multi-channel complexity• 65% bypass own DCs and ship direct

via others (suppliers, 3PLs)• 45% have direct-to-home delivery

model• 65% shipping direct-to-consumer• 60% shipping to or through a

traditional DC• 45% shipping through 3PL or e-

fulfillment provider• 45% shipping through break-bulk

facility (i.e., cross dock, DC flow-through facility to either store or end customer

• 44% shipping direct-to-store• 35% shipping through a fee port,

freeport zone or transition point for customs

Massive, disruptive change in many industries• Technologies• Regulation• Political• Environmental

Increasing customer expectations • Customer requiring shorter lead

times with persistent supply lead times • Late delivery penalties • Complex supply chain dependencies • Expect same high service levels from all channels

Requirement to plan for and manage risks • Global supply chain are growing longer and more complex • Increasingly volatile business conditions• Planning horizons are shortening

Today’s Challenges Demanding Better Supply Chain Visibility


Inconsistent communications

Siloed processes

Disjointed tools and systems

Internally focused

Lack the “Voice of the Customer”

Additional Internal Impediments

Need to optimize the numbers of trading partners,suppliers, carriers, logistics services providers (LSPs)

The need to reduce, proactively allocate, or manageinventory held at various stages in the supply chain

The business mandate to reduce supply chainexeuction costs

Increased stakeholder and customer demand foraccuracy and timeliness of inbound / outbound

shipment events

Need to improve supply chain operational speed and /or accuracy

Growing global operations / complexity (e.g. longerlead times and lead-time variability, or need to gain

visibility)

13%

15%

26%

30%

43%

45%

Top Pressures to Improve Supply Chain Visibility


63% indicated supply chain visibility (SCV) was a high priority for improvement and another 28%indicated is was a medium priority– Aberdeen, May 2013

The demand is there. . .

Yet . . .By 2016, less than 20% of companies will be able to provide end-to-end supply chain visibility. – Gartner, February 2014

Evolution of Supply Chain Visibility

Tracking

Event Management

Sense and Respond

Basic Coverage1990s

Extended Coverage2010+

Where are my materials?Where is my order?

Is my supply chain flowing according

to plan?

How do I operate the network profitably?

Broader Coverage2000s Source: Gartner, February 2014

Supply Chain Visibility Maturity Model

Stage 1

Silos

Stage 2

Internal collaboration

Stage 3

External communication

Stage 4

Externalpartner

collaboration

Stage 5

Network collaboration

& optimization

Limited Integrated Extended Collaborative Strategic

External FocusInternal Focus

Standardize& Integrate

Extend &Communicate

Scale &Collaborate

Partner &Optimize

Source: Gartner, February 2014

Increase B2B connectivity / visibility intosupplier-side processes with suppliers, 3PLs,

trading partners

Improve timeliness and accuracy of dataexchange about supply chain transactions

Streamline processes for easier monitoring,enhanced usability, or efficiency

Improve internal cross-departmental visibilityand integration into supply chain transactions

and costs

21%

26%

40%

44%

Top Supply Chain Visibility Strategic Actions


Gartner Supply Chain Visibility Framework

Va

lue

Ge

ne

rati

on

Many to ManyEXCHANGE

Closed-loopAutomation

Sensitivity AnalysisBI/Analytics Human

Judgment

Plan and Execute Sense and Respond

ModelingSimulation, what-if, trade-offs, optimization

Business CollaborationMulti-directional communication, process collaboration & interchange

VisibilityPresentation / UI

Technology CollaborationData objects & transactions, data integration, rules engine, events, workflow

ConnectivityArchitecture: single – multichannelP

latf

orm

/Fo

un

da

tio

n Co

llab

ora

tion

Hu

b

Supply ChainPROGRAM

One to ManyPORTAL

One CompanyENTERPRISE

Source: Gartner, February 2014

The complexity of End-to-End SCV demands a comprehensive approach

A control tower is defined as a set of integrated processes and technologies that support a seamless flow of product from the source to end consumer, regardless of global complexity, or sales and logistics preferences of customers. – Aberdeen Group, May 2013

A control tower is a physical or virtual dashboard to provide accurate, timely, and complete logistics events and data from within and across organizations and services operating supply chains to coordinate all related activities. – Gartner, February 2014

Supply Chain Visibility Control Tower

Supply Chain Operations Center

RedGalaxy Supply Chain Operations Center

SCOC Dashboard

Scenario Management

Event Monitoring

Performance Analytics

Other Execution Applications

Other Planning Applications

Demand Plan

Supply Plan

IntegratedBusiness

Plan

POS

Firm Orders

Trade Promo PlanGTM

DecisionSupport

emailEDI

WMS

Fulfilled Order

TransportationProcurement

PredictiveAnalytics

ExceptionReporting

UtilizingOBIFoundationSuite &Endeca

FusionMiddleware

FusionMiddleware

Payment

ReceiptCost

Budget

Deepak KaulDirector, Information TechnologyZebra Technologies

Zebra Confidential: For Internal Use Only

WHO IS ZEBRA?

We are a high-tech manufacturer of products and solutions that identify,

track and manage assets, transactions

and people

15

Our extensive portfolio includes bar

code, receipt, kiosk and RFID printers

and supplies, as well as real-time

location solutions

CERTIFIED

PARTNERFounded over 40 years ago

Headquartered in Lincolnshire, IL USA

Products are distributed out of 9 facilities globally

Presence in more than 100 countries

~1 billion in annual sales

Our printers and Enterprise

Connector solution allow labels

to be printed based on XML

coming directly for Oracle


ZEBRA’S SUPPLY CHAIN “FUN FACTS”

There are 112,000 items planned in ASCP

7 distribution / manufacturing centers on the Oracle footprint

• locations in USA, United Kingdom and Netherlands

• APAC DCs migrating onto footprint in 2013

• support product distribution, printer reconfiguration,

label converting and service

• ranging from 15,000 to 110,000 square feet in size

3 new product design centers on the Oracle footprint

We ship ~130,000 delivery lines a quarter through Oracle;

made up of over 18,000 unique items

Customer presence in more than 100 countries

16


ZEBRA’S ORACLE FOOTPRINT

17

Since 2007, Zebra has overhauled

its internal systems, replacing an

infrastructure that was built in the early

‘90s for a company that had different

needs and was a fraction of the

current size

Our WMS implementation is part of

a much larger program to deploy

Agile, Siebel, Oracle R12, and

the PIP Integrations to support the

Order-to-Cash and Forecast-to-Pay

processes


ZEBRA’S SYSTEMS MIGRATION

18

Original State, 2007

Columns Are the Business Units

Blue Indicates an Oracle Solution

Cells Represent the System / Application

Rows Are Business Function


ZEBRA’S SYSTEMS MIGRATION

19

The future

state is

based on

standard

functionality

and

integrations

using an

Oracle suite

of solutions

Columns Are the Business Units

Blue Indicates an Oracle Solution

Cells Represent the System / Application

Rows Are Business Function

Future State


ORACLE SUPPLY CHAIN MANAGEMENTAPPLICATION FOOTPRINT

20

Value Chain Execution

• Inventory

• WMS

• MSCA

Advanced Procurement

• Purchasing

• iProcurement (indirect only)

Manufacturing

• Discrete Manufacturing

• MSCA

Order Orchestration & Fullfillment

• Order Management / Siebel

Reporting

• OBIEE w/ Noetix

Value Chain Planning

• ASCP

• Demantra Demand Management

• Production Scheduling

• APCC

• Demantra RTSOP**

• Strategic Network Optimization**

• Inventory Optimization**

• Global Order Promising**

• Collaborative Planning**

Reporting

• APCC

* Currently implementing

** Future Plans


THE ORIGINAL, STAND ALONE SOLUTION

Along with the deployment of Merlin, Zebra

also deployed our VSS solution where each

Oracle staging locator was given a digital

voice and users could look at a virtual map

to find the exact location of the locator on

the distribution center floor. Monitors were placed around

21

the perimeter of the staging area and

guided the pickers to the location of

the shipment based by having a

dedicated RFID tag for each staging

locator in Oracle.


RTLS INTEGRATION DIAGRAM

22

DATAB

ASE

11g

Oracle WMS Zebra RTLS/VSSOracle SOA Suite


RTLS INTEGRATION BUSINESS BENEFITS

23

• Reduced staged order search time from

between 2 – 8 minutes per drop to zero!

• Improved order throughput in the

warehouse, record revenues shipped first

month after go-live

• Increased achievement of shipping by

“customer promise date”

• Reduced number of orders shipped to

wrong address

• Made our CFO happy with an ROI of

109% and 5-1/2 month payback period

RedGalaxy’s Global Oracle Practice Management Team

Alex MartignagoCEO/President

[email protected](O) 312-300-2082(M) 314-603-4930

Jeff JohnsonManaging Director - ERP


Praveen GuptaManaging Director - HCM


Rod HeightManaging Director - Public Sector


Ted MayoVice President - Sales

[email protected]

(M) 713-443-9546

200 West Madison St.

STE 1040

Chicago, IL 60606

O: 312-300-8040www.RedGalaxyConsulting.com

Our mission: to help you

meet the future by

providing transformative

technology and

delivering incredible

value at a great price.

Dan GarrettDirector - BIPM

[email protected](M) 214-415-6363

mailto:[email protected]







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