value chain planning for jd edwards - doag.org oracle difference: capture demand closer to the point...

Copyright © 2014 Oracle and/or its affiliates. All rights reserved.

Value Chain Planning for JD Edwards Oracle Supply Chain Management

Hans-H.Schulz Sales Consultant Oracle October 21, 2014


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Program Agenda

Why is Planning important?

Value Chain Planning for JDE

Benefits and Customer Results

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Program Agenda




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Business & Supply Chain Challenges In the 21st century

Increasing Customer Expectations

Globalization, Complexity & Risk

People & Talent Enablement

• Permanent volatility • Shrinking loyalty

• Shorter lifecycles • Long tail products

• Outsourced manufacturing

• Compressed delivery times

• Skill shortage • Employee

empowerment

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Expanding Product Portfolios


There is Ample Opportunity for Improvement How good are today’s planning processes?

Source: Supply Chain Digest – Supply Chain Planning Benchmark study 2014

55% 22% 10%

Have a modestly integrated planning process across the company

Report having many disconnected individual disjointed plans across the company

Have a highly-integrated supply chain planning environment top-down oriented

Say they have a highly-integrated supply chain planning environment both top-down and bottom-up oriented

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9%


Modern Value Chain Planning

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Value Chain Planning

Customer Centric Responsive

Performance Driven Empowered People

Sense demand more quickly and shape for revenue growth

Evolve to improved and continuous Integrated Business Planning from

Sales and Operations Planning

Powerful analytics give knowledge workers new insight to continuously monitor value chain performance

Improve agility by incorporating risk and postponement strategies and

quickly respond to events

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Program Agenda




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Value Chain Planning for JDE Customers

• Empower modern supply chains – Digital, Connected, Complete

• Deliver best practices and industry-specific capabilities – Thriving community of successful customers and business consultants

– Cross-trained implementation resources available at Oracle and partners

– VCP support engineers trained on JDE

• Provide flexible deployment options – On Premise

– Oracle Managed Cloud Service

– Business Process Service (SaaS through approved VCP partners)

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Market-leading applications with high degree of investment and innovation


MAKE THE FORECAST ACTIONABLE

INTEGRATE KEY DATA SOURCES

MODEL UNIQUE DATA RELATIONSHIPS

EVERYONE TALKS THE SAME NUMBER

Align data from multiple sources, closer to the point of consumption

Leverage pre-built integrations

Leverage extensible model for new business requirements

Capture behavior in your data – look for influencing factors

Manage exceptions – Outliers, trends, errors, cause and effect

Leverage advanced statistics to improve forecast accuracy

Involve all stakeholders – Move from periodic to continuous process

Hold everyone accountable – Audit and measure exceptions

Keep track of consensus and changes – Waterfall analysis

Drive short and mid term forecast into operations planning

Integrate with financial planning – Integrated Business Planning

Provide insight to your trading partners

Process – Demand sensing and consensus The Oracle difference: capture demand closer to the point of consumption

http://corporateportal.ppg.com/ppg


• Sense demand real-time, at more granular level, and closer to the point of consumption

• Aggregate forecasts are convenient but not always better

• Forecast predictions should adjust for and reflect differences in local, regional, SKU, time period, customer, and so on

Closer to point of consumption

Sense demand at the right level of detail

Item

Ship To A

Time Period 1

Time Period N

Demand history Promotion lift Seasonality Cannibalization Causal factors

Product Group

Item

Customer

Ship To B


• Look for influencing factors – Holidays, payment cycles, weather, price changes, order cycles

• Manage exceptions – Sparse data, volume shifts, short vs long term trends, outliers

• Leverage built-in intelligence – Automatically select which level’s data to use for forecasting

– Automatically select blend of forecast methods

– Use accuracy metrics such as MAPE, MPE, WMAPE

Model data relationships

Capture inherent behavior in your data


• Create consensus plan through continuous collaboration across sales, marketing, finance, supply chain and customers

• Each participant gets tailored view

• Combine top down business planning with precise bottom up forecasts

• Automate process with workflow

• Manage final approval process and exceptions - Track accuracy of forecast decisions, and review

Consensus demand

Everyone uses the same number


Marketing Manager: Category by Quarter

Operations Manager: Constrained Forecast

Sales Manager : Product family by month

Finance Manager: Revenue by Q

Personalize for each role


ENABLE BEST IN CLASS BUSINESS PROCESSES

REDUCE PLANNING CYCLE TIME

MAKE BETTER DECISIONS FASTER

EXECUTE TO PLAN

Plan your entire supply chain

Reduce the number of plans

Comprehensive manufacturing and distribution planning

Automate planning decision making, improve planner productivity

What if simulation and root-cause analysis

Improve operations analysis

Integrated planning and scheduling

Enforce planning decisions when promising orders

Collaborate with suppliers and automate replenishment (VMI)

Drive tactical planning processes based on S&OP plan

Design resilient supply chains and enable postponement

Monitor tactical planning processes

Process – Plan for profit and execute to plan The Oracle difference

http://corporateportal.ppg.com/ppg


Manufacturing Operations Analysis

Distribution

Simultaneously plan all manufacturing and distribution facilities

Reduce number of plans required

Simultaneously plan material and capacity

Plan for mixed mode manufacturing – A&D, project, configure-to-order, process, discrete, lean

Leverage detailed scheduling constraints

Product family and item level planning

Bills of distribution and transfer rules

Fair-share allocation

Inventory policies at multiple levels

Inventory rebalancing

Load consolidation and ship method selection

Global forecasting, local supply allocations

Include customer and supplier facilities

Evaluate plan output trends

Measure key corporate performance metrics tied to your tactical plans

Compare planning runs

Perform aggregate to detailed analysis

Slice and dice plan output along various dimensions (facility, supplier, customer, product category, demand channel, project)

Comprehensive supply and distribution planning


• Reduce latency – Reduce the number of plans required

– Multiple planners work on a single plan

• Evolve the planning model at your own pace – Make better decisions faster

– Analyze exceptions and related exceptions

– Define telescoping granularity: time, product, resource

– Leverage date-effective sourcing rules

– Use assignment sets for different sourcing scenarios

– Use item simulation sets

Simultaneous material and capacity planning across all organizations

Tactical supply planning


Mass edit item attributes for simulation

Analyze resource requirements

Analyze material requirements

View and release orders

Supply Planner Workbench


Plan summary

Distribution plan horizontal view

Find consolidation opportunities

Truck utilization targets

Distribution Planner Workbench


• Multi-level BOMs and inter-org lead times

• Resource, material, supplier constraints

• End item substitution, allocation

• Order backlog workbench and split order lines

Global Order Promising Integration to JDE 9.1 Real-time Order Promising

Call GOP from sales order entry screen in JDE


• Estimate planning % and calculate dependent demand in Demantra DM

• Promise Orders using GOP

• Plan for option-specific (lead time, sourcing, routing) supply in ASCP/RP

• Execute in JDE E1

Support for Configure-to-Order Holistic Planning for Models and Options

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Forecast PTO/ATO Models and specific

Configurations

Explode Forecast to Options

Consume forecast

Enter SO for Model and Options

(ATP/CTP)

Create configuration

Order or build configurations

and options Plan configurations and options

Order

history

Demand Management

Supply Planning

Ship to customer

Order Promising

Match, schedule, or unschedule

JD Edwards

Release

orders

Schedule

orders

Plan

orders Optionally, explode forecast to options

Supplier Collaboration

Publish order forecast for procured configs

Receive supply commit for procured configs

Predict attach rates (options’ mix) based

on relative sales

S&OP and Reporting

Reports to Analyze Demand & Supply of

Model, Options and BOM components



Value Chain Planning: Current Release and Roadmap

Demand Management • In-Memory Consumption-Driven Planning • Forecast simulation, NPI enhancements • Use management and control

Supply Chain Planning • Process effective dates & Shelf-life enhs. (ASCP) • Warehouse& premium capacity enhs. (ASCP) • Demand priority API, ship sets, CTB enhs. (RP) • Synchronous make-pack scheduling (PS)

Trade Promotions Management • Shipment consumption forecasting • Promotion planning analytics enhancements • Promotion creation and simulation enhs.

Sales & Operations Planning • Custom hierarchies synchronization w/ APCC

Maintenance and Service Parts Planning • SPP Integration to Enterprises Asset Mgmt.

Value Chain Planning Analytics • In-Memory Performance-Driven Planning • Enhanced integration with DM and DRP (APCC)

Demand Management • Customer specific price lists • Improved inventory and supply planning int. • Improved workflow and global instance support • Collect data above site level

Supply Chain Planning • Project-driven supply chain (ASCP w/ Primavera) • MRSL enhancements for distribution planning • JDE E1 integration enhancements • ECO use-up, Flow Manufacturing support (RP) • Enable filtering of Collection data (performance) • Improved resource utilization UI (ASCP)

Sales & Operations Planning • Load multiple supply plans in parallel

Maintenance and Service Parts Planning • Service parts planning Automotive enhs.

Value Chain Planning Analytics • High-volume detailed reporting for orders,

exceptions, and pegging • Plan health and exception summary scorecards

Demand Management • Customer-driven enhancements to Demantra • Project driven supply chain (w/ Primavera)

Supply Chain Planning • Customer-driven and UI enhancements • JDE E1 integration enhancements

Trade Promotions Management • In-Memory Consumption-Driven Planning

Integration

Sales & Operations Planning • Customer-driven enhancements

Maintenance and Service Parts Planning • Inventory policy planning • Replenishment against inventory policy (SPP) • Service parts planning enhancements

Value Chain Planning Analytics • Customer-driven enhancements • Usability and performance enhancements • In-Memory Performance-Driven Planning

Enhancements

Release 12.2.4 Aug 2014

What’s Next 0-12 month planning cycle

Future Directions Post 12 month planning cycle

Restricted to event use only. 25


Value Chain Planning Integration Overview

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JD Edwards EnterpriseOne

Planning Order Recommendations

Promotions and Settlement Payments

Master Data and Transaction Data


Demantra Demand Management (DM)

Demantra Advanced Forecasting and Demand Modeling (AFDM)

Demantra Predictive Trade Planning (PTP)

Demantra Trade Promotion Optimization (TPO)

Demantra Deductions and Settlement Management (DSM)

Demantra Real Time Sales and Operations Planning (RTS&OP)

Advanced Planning Command Center (APCC)

Advanced Supply Chain Planning (ASCP)

Inventory Optimization (IO)

Rapid Planning (RP)

Production Scheduling (PS)

Strategic Network Optimization (SNO)

Global Order Promising (GOP)

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. 28

Integration Details – Demand Planning

JDE E1 Updates


JDE E1 Forecast & Planning Extracts

Payments

Payment Requests

Deductions

Approved and Denied Deductions

Master and Transactional Data

Financials

Forecasting

Forecasts

Collected Data (ODS)

Demand Management and Advanced Forecasting

Sales and Operations Planning

Trade Promotion Planning and Optimization

Demand Signal Management

Canonical Data Model

Inventory Optimization Production Scheduling

Strategic Network Optimization Advanced Supply Chain

Planning Advanced Planning Command Center Collaborative Planning

Rapid Planning

Global Order Promising


Plan Data (PDS)

Order Management

Procurement

Inventory

Manufacturing

Configurator

Customers, Items, Sales History, Financial

Forecast, Planning Order Recommendations

PIP JDE E1 Extracts

VCP Collections

User Maintained Data A PIP repository for VCP data

Promotions and Settlement Payments


Integration Details – Advanced Planning

JDE E1 Updates


JDE E1 Forecast & Planning Extracts

Purchase Order, Transfer Order, Work Order Recommendations

Work Order Deletions

Master and Transactional Data

Financials

Forecasting

Collected Data (ODS)

Demand Management and Advanced Forecasting Sales and Operations Planning

Trade Promotion Planning and Optimization

Demand Signal Management

Canonical Data Model

Inventory Optimization

Production Scheduling

Strategic Network Optimization

Advanced Supply Chain Planning

Advanced Planning Command Center

Collaborative Planning

Rapid Planning


Plan Data (PDS)

Order Management

Procurement

Inventory

Manufacturing

Configurator

Orders (Work, Transfer, Purchase, Sales) Items, BOMs, Resources, Rtgs, Orgs,

Calendars, Suppliers, Customers

Create, Cancel, Reschedule Work Orders, Transfer Orders, Purchase

Orders

PIP JDE E1 Extracts

VCP Collections

User Maintained Data A PIP repository for VCP data

JDE E1 Order Promise Business Service

Global Order Promising Global Order Promising API

Sales Order Entry Interactive

VCP Release

Support for Configured

Items


Program Agenda




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Proven Solution Widely Adopted by JDE Customers

And more …

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Innovative Industry Applications

AEROSPACE & DEFENSE High Quality; Low Cost; Compliance • Project Driven Supply Chain • Supplier Collaboration • Integrated Business Planning

AUTOMOTIVE Lowest Cost, Highest Efficiency • Production Scheduling • Demand Driven Supply Chain • Supplier Collaboration

PROCESS INDUSTRIES Highest Quality and Utilization • Formula/Blending Optimization • Quality Yield Planning • Service Parts Planning for EAM

CONSUMER GOODS Customer-Centric Demand-Driven • Trade Promotion Optimization • Demand Sensing • Demand Shaping

RETAIL AND DISTRIBUTION Respond Profitably to Demand • Demand Signal Management • Inventory Optimization • Consumption Driven Planning

HIGH TECHNOLOGY Controlling Complex Supply Chains • Project Driven Supply Chain • Optimize Inventory • Rapid Planning

MANUFACTURING Maximize Efficiency • Production Scheduling • Demand Driven Supply Chain • Rapid Planning and Shop Floor Execution

COMMS, MEDIA & ENTERTAINMENT Demand Driven • Consumption-Driven Planning • Inventory Optimization • Customer-Centric and profitable delivery

MEDICAL DEVICES Compliance and Efficiency • Demand Driven Supply Chain • Inventory Optimization • Rapid Response to demand and

supply changes

PHARMACEUTICAL Compliance and Efficiency • Demand Driven Supply Chain • Inventory Optimization • Project Driven Supply Chain

SEMICONDUCTOR Planning for Extended Supply Chains • Supplier Collaboration • Binning Planning Support • Planning Quality Management

NATURAL RESOURCES Maximizing Uptime and Efficiency • Enterprise Asset Management • Service Parts Planning • Supply Planning

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Benefits of Value Chain Planning Reported customer results

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38% Reduction in

Inventory

30% Reduction in

working capital

90% Reduction in planning

cycle time

56% Improvement in

forecast accuracy

40% Better order fill rates

5% Improvement in

gross margins


Empower Modern Value Chain

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Core planning strategies to drive transformation

Drive growth through a customer centric supply chain

Control costs through a responsive supply chain

Execute strategy through Integrated business planning

Empower knowledge workers to deliver better results

Responsive

Customer- Centric

Empowered Strategy- Aligned

value chain planning for jd edwards - doag.org oracle difference: capture demand closer to the point...

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