“this presentation is for informational purposes only and may not be incorporated into a contract...

Nadeem SyedVice PresidentSupply Chain Planning Development

Oracle Global Order Promising

Provide accurate and reliable commitments to your customers

“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

TRADITIONAL ORDER PROMISING ADAPT YOUR BUSINESS MODEL

The Problem With Existing PracticesAdapt new strategies

Average lead times are inaccurateGet visibility to all demand

and promise based on supply chainavailability and capabilities

Promises are either too aggressive or too conservative

Consider all of the constraints in your extended supply chain

Difficulty supporting mass customization Promise complex configurations

Difficulty supporting key customers requiring differentiated service

Provide reliable and accurate allocatedcommitments to customers

Difficulty supporting multiple methods of order capture globally, 24x7 Provide reliable zero downtime reliability


Traditional ApproachInaccurate order promising, poor visibility to supply chain constraints

Long planning cycles

Supply PlanningBatch Order Promising

Distribution plans

Sales

Mfg.

Paper orders

Tier 2

Tier 1

CUSTOMERS SUPPLIERS

Production plans

Manufacturing plans

Paper Paper“Best guess” promise date

Disconnectedsupply planningprocess

Poor customer service– Time consuming batch

order promising process– Low level of automation

Inaccurate promise dates– No visibility to global supply

chain constraints– No integration between

execution and planning

Reduced profitability– No ability to allocate supply

to your most profitable customers or channels

Customer support


A Better Approach: Global Order PromisingIntegrated promising, planning, and execution with zero downtime

Improved customer service– Real-time reliable order

promising process– High degree of automation

Accurate promise dates– Global visibility to

manufacturing, supplier, and transportation capacity

Increased profitability– Ability to allocate supply to

your most profitable customers or channels

– Measure accuracy to drive improvements

Constrained global supply plan

Supply Planning

Zero downtimeATP engine

Automated Exceptions

Real-time Order Promising

Singleholistic plan

Business Intelligence

Sales

Customer support

Mfg.

Manufacturing

PortalPortal

Tier 2

Tier 1

CUSTOMERS SUPPLIERS


How

Delivers


Oracle Advanced Planning Complete e-business planning solution

Collaborative Planning CP

Sales and Operations Planning

From short-term to long-term

From

det

ail t

o su

mm

ary

CPSC Exception Management

PSProduction Scheduling

ASCPDistribution Planning

GOPGlobal Order Promising

ASCPSupply Chain & Manufacturing Planning

IOInventory Optimization

DPDemand Planning

SCISupply Chain Intelligence

DevelopMarketSellOrderPlan

Procure

Make

FulfillService

Maintain FinanceHR

ProjectsAll Product,Customer,& SupplierInformation

SNONetwork Design


Oracle Global Order PromisingCustomer examples

Global leader in network infrastructure Every order for every router sold worldwide goes through GOP Complex order promising problem

– Product and channel allocation rules, Extensive use of ship sets in an assembly to order environment, High volumes

Semiconductor manufacturer Material and resource constraints (CTP) across virtual supply chain

– Sales people promise orders online in seconds– Reduced supply chain response time for critical products by 92%

World leader in hearing instrument components Global planning instance with2 Locations in the US, 1 Location in Europe, 5

Locations in Asia– Mixed mode manufacturing: make to stock, make to order, configure to order– Global order promising against 1 central plan


Promise accurately and reliably

Manage key customer and channel commitments

Promise orders globally with zero downtime

Promise complex configurations

Respond to changing conditions

Enables you to…



Promise More Accurately And Reliably

Promise orders based on:– Material availability– Manufacturing capacity– Supplier capacity– Transportation capacity

Global statement of availability– All facilities, material, resources, and

suppliers

Drive fulfillment decisions based on demand and supply plans

– Promise based on optimal supply decisions

Automatically recommend substitute products

With Supply Chain ATP, CTP, and CTD



Users can quickly configure the rules that control valid distribution points for customers

– Define available distribution points, including priority

Minimize setup by assigning detailed rules on an exception basis

– Rules can be customer, customer site, or region specific

– Automate where to ship products from

Sourcing rules and assignment sets



Configure availability check as extensive as needed for your business

– How many levels of the supply chain

– Which components– Critical bottleneck resources

only

Highly configurable


Global Capable To Promise (CTP)

OEM

Customers (East)

Typical scenarios

Check for availability across multiple levels of bill of materials, multiple echelons of a distribution network, or both simultaneously

SCENARIO 1 - MANUFACTURER

Customers

SCENARIO 2 - DISTRIBUTOR

Customers(West)

Customers(East)

DC West

Central DC

DC East

Suppliers

Rank 2

Rank 1Rank 1






Quickly respond to changing conditions

Enables you to…



Allocated Available to Promise

Allocate available supply and capacity

– By channel, customer, or product– Priority and stealing rules

Manage commitments to key customers

– Reserve availability for key customers

– Ensure spot demand does not jeopardize commitments

Manage allocations to customers, regions, or channels



Define allocation rules multiple ways

– By customer class– By demand class– Based on demand priorities in

the plan

Enforce demand priorities as decided in Sales and Operations Planning

– Priorities assigned in demand planning control supply planning

– Allocation can be based on supply plan

Defining allocation rules



S&OP Decision: “Allocate 40% of supply to High Tech and 60% of supply to Retail customers”

Example

WITHOUT Allocation WITH Allocation

Demand Sales order 20 High Tech

Supply Work order 25

Supply Purchase order

35

ATP for High Tech and Retail

40

New orders are promised as they come in;No guarantee that Retail customers will get 60% of the allocation

Demand Sales order 20 High Tech

Supply Work order 10 (40% * 25)


14 (40% * 35)

ATP for High Tech 4

Supply Work order 15 (60% * 25)


21 (60% * 35)

ATP for Retail 36

New orders are promised as they come in;Retail customers will get 60% of the allocation



World’s leading producer of aluminum Multiple business units use allocated available to promise

to manage their business Typical example: manage the allocation to classes of

demand– Contract demand: demand with a contractual commitment of availability to

customers – highest priority– Forecast demand: demand that customers have provided forecast visibility

but no commitment has been made – second priority– Spot demand: unforecasted demand or demand above customer forecast –

lowest priority

Customer example - Alcoa







Enables you to…



Run new plan

Zero Downtime Global Order Promising

Zero downtime– No order promising downtime

when underlying supply chain plan is refreshed

– No sales order is lost, automatically re-promise sales orders against new plan

Open, reliable, and scalable– Engine runs inside the database– No memory models to load!– Multi-threaded– Integrated with OM, iStore, and

Call Center– Easily integrate with legacy

systems

Guaranteed uptime and consistency via patent-pending architecture

Current plan

Promise Orders Promise Orders

Copy Run Copy

? ? ? ? ? ? ?

New planDowntime orInaccurate orders

Typical Approach

Oracle Approach

Current plan

Promise Orders Promise Orders

Run new plan

Copy RunSync &

Re-promise

New plan

Swap



Leader in test devices, chemical analysis tools, and semiconductors

– Performing multi-level capable-to-promise– Greatly reduced expedite orders with accurate order promising dates– Moved from batch to online order promising– Increased customer satisfaction of key strategic customers by using

allocated ATP– 24x7 worldwide order operation with ‘zero downtime’ CTP– Meet customer requirement by utilizing substitute components

Customer example – Agilent Technologies



Access from any place, anywhere, anytime– Order management– Configurator– Call Center– Quoting– i-Store– Legacy systems

Scalable and reliable – Database-centric architecture– Multi-threaded– 24x7 support– No ATP data is lost

Provide consistent availability for any method of order capture







Enables you to…



Promise Complex Configurations

Sub-Model

Sub-Model

ATOModel

ATOModel

Distributors

OEM

Sub-Model

ATOModel

Tight integration with Oracle Configurator and Order Management enables accurate order promising of complex configurations

Sourcing and availability can be dependent on the options selected during configuration

Multiple levels of models, including outsourced configurations are supported

Support mass customization

Customers

Suppliers


Promise Complex Configurations

Promise accurate availability for complex configurations

– Multiple levels across multiple organizations including outsourcing

– Option specific sources– Option dependent resources– Supplier capacities for models

Reuse existing configurations– Global ATP for ATO models and

ATO items– Match during ATP and

pre-configuration forecast consumption

Mass Customization


Promising Complex Configurations

Global manufacturer of ATMs, retail equipment and other complex products

– NCR promises all of their orders for complex configure to order products with Oracle Global Order Promising

– The configurations can span multiple levels of configured products produced by multiple manufacturing facilities

– Some configured products are outsourced to contract manufacturers– Planned orders created during the capable to promise check are released that

same day

Customer example – NCR Corporation







Enables you to…



Backlog Management

Provides ability to easily manage existing Sales Orders (SO)

– Filter and reprioritize selected SOs – Process the SOs in a batch mode– Take actions (reschedule / cancel) based on

system highlighted exceptions

Embedded simulation capability– Manually adjust the processing sequence– Schedule in a simulated mode– Accept changes based on the results of

simulation

Extensive graphical capability– Workbench for viewing results and taking

necessary actions– Tree structure and tabs for easy drill downs – Pegging information is readily available

Rapidly respond to changing conditions


Backlog Management

Initial order promising is FIFO for the individual order against total or allocated availability

Promise or re-promise a group of orders in a priority sequence

– Priority rules allow you to sequence orders by date, margin, or other rules

– Sequence can be overridden to prioritize specific important customer orders

Filters enable you to select the subset of your backlog to reschedule

Filter backlog orders

Rules-based sequencing

ATP Check

Reviewexceptions

Updateorders

Manage Backlog


Supply Chain and Manufacturing Planning

Collaborative Planning

Demand Planning DP

Inventory Optimization IO

Global Order Promising GOP

CP

ASCP

Sales and Operations Planning

Forecast

Customerforecast

Orderforecast

Constrained plans

Supplier capacity

Time-phased safety stocks

Forecast and demand variability

Supplycommits

Orderforecast

Network Design SNOForecast scenarios

Production Scheduling

Planned orders

Supply schedule

Sourcing rules

Sourcing rules

TodayComing

Leverage integration at incremental investmentIntegrated, yet Modular

PS

CUSTOMERS

PLANNING PROCESS

SUPPLIERS

Safety stock targets


Summary


Oracle Global Order PromisingIntegrated promising, planning, and execution with zero downtime

Constrained global supply plan

Supply Planning

Zero downtimeATP engine

Automated Exceptions

Real-time Order Promising

Singleholistic plan

Business Intelligence

Sales

Customer support

Mfg.

Manufacturing

PortalPortal

Tier 2

Tier 1

CUSTOMERS SUPPLIERS






Respond to changing conditions

Enables you to…



Integrated planning, promising, and allocation

Superior order promising architecture with zero downtime

Complex configuration support

Fully integrated with execution

Why Oracle !


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