Enabling The Demand Driven Supply Network with Oracle APS : An Overview HungChang Fu, CPIM Solutions

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Enabling The Demand Driven Supply Networkwith
Oracle APS An OverviewHung-Chang Fu, CPIM
???Solutions Director, Oracle TaiwanAugust 2,
2006
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Todays Discussion

• What is a Demand Driven Supply Network
• How to go DDSN with Oracle APS
• Conclusions

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What is a Demand Driven Supply Network
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A Customer Case Study
Project Scope and Value Areas

• Ten Independently Run Operating Companies
• Global Supply Chains
• No pooling of demand (sourcing leverage) or
  supply (inventory management strategies)
• Zero visibility across operating companies into
  one anothers inventory positions

FXK
FX
TFX
THFX
PFX
VNO
FXM
FXAP
FXS
AG
FXA
FXN
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A Customer Case Study
Demand signals flowed to shared suppliers and
trading partners from each independent operating
company, adding complexity and creating a
transactional environment based in multiple,
smaller sized orders
Project Scope and Value Areas
-- Suppliers --
-- Operating Companies --
FXK
FX
Japan
FXM
TFX
US
THFX
PFX
China
AG
VNO
Europe
FXS
FXN
Others
FXA
FXAP
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A Customer Case Study
The Fuji-Xerox supply base managed and responded
to this disaggregated demand in smaller, less
efficient fulfillment transactions and shipments
.
Project Scope and Value Areas
-- Suppliers --
-- Operating Companies --
FXK
FX
Japan
FXM
TFX
US
THFX
PFX
China
AG
VNO
Europe
FXS
FXN
Others
FXA
FXAP
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A Customer Case Study
the end result is an operating environment that
fails to capitalize upon economies of scale and
scope. There was a better way to run this
regional supply chain going forward but it
required the institution of common practices,
processes, and a scalable set of technologies
Project Scope and Value Areas
-- Suppliers --
-- Operating Companies --
FXK
FX
Japan
FXM
TFX
US
THFX
PFX
China
AG
VNO
Europe
FXS
FXN
Others
FXA
FXAP
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A Customer Case Study
In response to the baseline operation, FXAP
instituted a regional supply chain management
strategy, underpinned by Oracles Advanced
Planning and Scheduling Suite of applications
Project Scope and Value Areas
-- Regional Hub --
-- Suppliers --
-- Operating Companies --
FXK
FX
Japan
FXM
FXAP Regional Center
TFX
US
THFX
PFX
China
AG
VNO
Europe
FXS
FXN
Others
FXA
FXAP
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A Customer Case Study
Over the course of the three year transformation,
Fuji-Xerox has stablized its supply chain flows,
leveraged its sourcing spend, consolidated its
inventory management strategy, rationalized its
SKU count, and compressed its order-to-receipt
cycle times
-- Regional Hub --
-- Suppliers --
-- Operating Companies --
FXK
FX
Japan
FXM
FXAP Regional Center
TFX
US
THFX
PFX
China
AG
VNO
Europe
FXS
FXN
Others
FXA
FXAP
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A Customer Case Study
Over the course of the three year transformation,
Fuji-Xerox has stablized its supply chain flows,
leveraged its sourcing spend, consolidated its
inventory management strategy, rationalized its
SKU count, and compressed its order-to-receipt
cycle times
-- Before --
-- After --
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A Customer Case Study
Regional Supply Chain Project Results

• Regional visibility of supply and demand
• Better lifecycle management of finished goods and
  component parts
• Reduced inventory levels
• Reduced inventory obsolescence
• Enhanced customer satisfaction
• Enhanced employee and organizational supply chain
  management skills
• Enhanced flexibility to re-configure supply chain
  operations to meet shifting demand patterns

FXK
FX
TFX
THFX
PFX
VNO
FXM
FXAP
FXS
AG
FXA
FXN
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Demand Driven Supply Network
Source AMR Research
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Key DDSN Capabilities

• Demand Understanding
• Supply Chain Visibility
• Integrate with NPDL
• Event Driven Planning Processes
• Real Time Order Response

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Benchmarking Results Find Leaders
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How to go DDSN with Oracle APS
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The Future - Oracle Information Architecture
Demand-Driven Supply Chains Focused on Network
Value
Information Access
Desktop
PDAs
Wireless
Web Portal
DDSN Business Processes
Development Framework
Enterprise Management
Legacy
Custom
3rd Party
Web Services
Data Hub
Applications
Legacy Systems
Standard, Global Business Definitions
Data Warehouses
Operational Databases
Grid Infrastructure
Apps Servers
Databases
Storage
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DDSN Capability Model
Orchestrate
Continually aim for perfection
Collaborate
Extend the definition value outside your own
company
Anticipate
Sensing and shape the demand
React
Respond to customer demand
Source AMR Research
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How To Go DDSN With Oracle Solutions
Orchestrate
Supply Network Design, Balanced Score Card
Collaborate
Collaborative Planning
Anticipate
Demand Management, Trade Promotion Management
React
Supply Chain Planning, Global Order
Promising, Production Scheduling Transportation
Planning
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Conclusions
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Why Oracle

• Superior Solution
• Support End-to-End DDSN processes
• Enable the Plan-Execute-Monitor-Measure cycle
• Out-of-the-box integration
• With ERP
• With Supply Chain Intelligence
• With Workflow
• Low TCO
• Oracle is committed to your success
• Vision
• Innovation
• Continuity