Presentation on theme: "Consumer Packaged Goods Industry"— Presentation transcript:
1Consumer Packaged Goods Industry Oraclein theConsumer Packaged Goods IndustryPhil FriedmanVice-presidentCPG & Process Industries.
2Industry DynamicsManufacturers see cutting trade spending as a key opportunity to increase bottom line profitabilityRetailers demand that manufacturers collaborate to plan, forecast, and manage inventory to ensure right product, right time, right place right cost.Retailers and Manufacturers agree on the need to adapt and adopt data and process standardsConsumers demand and the FDA is enforcing food quality and safety regulations
3The New Consumer Goods Value Chain Ingredients/Material to Consumer Supply BaseUCCNetCatalogueManagerPricing /TradeEngineRaw MaterialsSupplier-Prepackaged / sub-contactorMaterialsProductionDistributor /BrokerPackaging MfgRegulatoryComplianceConsumer GoodsManufacturersProductionVMIRetailersWarehousePackage & ShipRetailClub’sDistribution & RetailRFID TagLoyaltyProgramIntelligenceConsumerSBT
4What are CPG Executives Looking For Meet all the needs of complianceSarbanes-Oxley’s impact from Trade ManagementQuality and safety regulationsBig-box Supply ChainStandardsLower Cost of OwnershipReduces need to grow IT organizationsReduces complexity of managementReduces the number of skill sets requiredEliminates support for integrationSingle point of accountability and vendor managementDrive to single version of the truthSingle data source for customer and item mastersEasier to implement data qualityAligns access of information with the velocity of the businessPartner with a company willing to make investmentsSupport R&D drive solutions not research.
5What is Oracle doing to meet the Needs and Challenges ComplianceOut of theBoxWhat is Oracle doing to meet the Needs and Challenges.
6Compliance Out of the Box An integrated out of the box application and technology solution built with CPG specific business flows that enable mid-tier CPG companies meet the requirements from large retailers (I.e. Wal*Mart) encompassing:RFID ComplianceItem Synchronization ManagementFood Safety and TracabilitySingle Source Customer ManagementTrade Promotions and Settlement ManagementPartner CollaborationOperational and planning Analytics.
7The Top CPG Opportunities for Driving Shareholder Value Regulatory ComplianceDriving business effectiveness by managing through a single version of the truthCollaboration – UCCNet a partner to achieving supply chain excellenceRFID – When and whatPromotion management – Sarbanes-Oxley
8The Administration and Legislators Know That Their Constituents are Scared and Right to be So What are are your consumers saying…Is my product safe?Can I trust the manufacturers?What is my Government doing?Congress – More rules, less effectiveness, more costs BUT !!!FDA and others – Can they really be the enforcement agency here???I think I’m confident but I’m not sure
9What the FDA and other Regulators Will Be Looking For IssuesTracability – Do I know the original source and destinationAccountability – Can I identify the individuals who make decisions and take actionAuditability – Can I retrieve and report on process informationResponsiveness – Can I handle issues in a timely mannerFull life cycle tracking and work flow--aligned with process stepsTight alignment and integration with employee informationWork flow and reporting engine that has been verified as FDA compliantInformation driven reportingSolutions Capabilities
10Oracle’s Enabling Solution Auditability, Traceability, Accountability Lot SourceIngredients & ResourcesIntermediate or Bulk ProductsFinished ProductSupplierCustomersWhere UsedImprove Recall Responsiveness / CostComply with FDA GxP and Safety RegulationsTrace Materials Enterprise-Wide to Analyze Vendor QualityLot GenealogyThe manufacturing process begins with the supplier who provides the raw materials needed for production. The production process creates intermediate, bulk, and eventually finished products which are then sold to customers.When the customer experiences a problem with the quality of the finished product, the ingredients that were used in the intermediate, bulk, and finished product are determined through the Lot Source inquiry.The Where Used Inquiry is performed to determine the products in which the lot was used.
11The Top CPG Opportunities for Driving Shareholder Value Regulatory ComplianceDriving business effectiveness by managing through a single version of the truthCollaboration – UCCNet a partner to achieving supply chain excellenceRFID – When and whatPromotion management – Sarbanes-Oxley
12Architecture to Drive a Single Version of the Truth FinanceGL / AR / AP / AssetsCollections / PaymentsSalesAdvanced PricingConfiguratorGlobal ATPIncentive Comp.ServicesSupportField ServiceDepot RepairMarketingTrade Mgmt.FulfillmentWarehouseTransportationPartnersHRManufacturingAdvanced PlanningProcurementExchangeProjectsProduct DesignLife Cycle Mgmt.Strategic EnterpriseMgmt.Balance ScorecardsActivity Based CostingActivity Based Mgmt. Value Based Mgmt.ContractsSales / ServicesLease / RightsProperty Mgmt.GlobalCustomers, Products,Business Intelligence& Everything Else!
13The Top CPG Opportunities for Driving Shareholder Value Regulatory ComplianceDriving business effectiveness by managing through a single version of the truthCollaboration – Item Synchronization and underlying standards- a partner to achieving supply chain excellenceRFID – When and whatPromotion management – Sarbanes-Oxley
15Advanced Product Catalog Based on the Oracle Item Master IntelligenceCollaborationAutomationMarketPlanSellProcureManufactureFulfillWarehouseTransportationMaintainServiceInventory OptimizationDevelopGlobalProduct & ComponentCatalogEnables...Component ReuseSecure Collaboration with Customers & SuppliersFull Global Operation...30 LanguagesAll CurrenciesAll LocalizationsLeverages Oracle Database...Text & Parametric Search with Text & Partitioned Index TechnologyScalability & Performance...in a Single Global InstanceOracle 11i e-Business Suite delivers all the tools needed to help companies transition to become an e-Business.The applications are 100% Internet based - which means that all you need to access the applications is a web browser on your desktop. But more importantly, the applications themselves have been developed with built-in support for all the new internet-enabled e-Business practices.
16Based on an Established Foundation Anatomy of Oracle Item Master UCCnet Attributes Modeled HereCategory =Canned BeverageSpecific Attribute ValuesItem 1Item 2Item 3Item NERP OperationalAttributesFlex-FieldUser-DefinedBase Oracle Application attributes for inventory, planning, distribution, sales, etc….Traditional method of extending Oracle Application attributesNew method of extending Oracle Application attributes
17Oracle Advanced Product Catalog Seeded UCCnet Attribute Groups Basic InfoItem Information Provider, Brand GLN, Brand Owner Name, Data Pool Name, Brand Name, Short Description, Additional Trade Item Description, Trade Item Unit, UPC Code Type, UPC Code, Public/PrivateMeasurementNumber of Item Contained By parent Item, Gross Weight, Gross Weight UOM, Height, Height UOM, Width, Width UOM, Depth, Depth UOM, Volume, Volume UOM, Number of Trade Item Contained in the package, Net Weight, Net Weight UOMSizeSize Code List Agency, Size Code Value, Size DescriptionDatesFist Order Date, First Ship Date, First Arrival Date, Last Order Date, Last Ship Date, Last Arrival DateDimensionsSize, Size UOM, Height, Width, Length, Linear UOM, … …Item per Pallet, Layers per Pallet, No of Inner Containers… …Order IncrementsOrder Increment, Order Increment UOMMiscellaneous InformationColor, POS Description, Days to Expiration… …Purchasable, Orderable, Min Order Quantity, Max Order Quantity
18The Top CPG Opportunities for Driving Shareholder Value Regulatory ComplianceDriving business effectiveness by managing through a single version of the truthCollaboration – UCCNet a partner to achieving supply chain excellenceRFID – When and whatPromotion management – Sarbanes-Oxley
19Manufacturer / Retailer Schism A Tale of Two Worlds High inventory accuracyDisciplined processesGood logistics systemsOptimized for case/palletEarly in Supply ChainNo In-store Inventory visibilityReactive processesPoor In-Store disciplineNeeds SKU/Shelf info for valueLate in Supply ChainRFID – another cost of doing businessRFID - a way to increase profitsAcceptance now, but pushback will increase as costs mountRetailers must generate value through shared informationE.g. Pull Planning, Reduced Chargebacks, Promotion Effectiveness, …Manufacturers can differentiate by creating strategic relationships
20RFID Strategy Maximize RFID ROI through Top-to-Bottom Integration Application ServerData Base and ToolsDeliver a robust, hardware agnostic RFID platform which elevates the application development interface to standard technology and the processing of true business eventsLeverage data base extensibility, scalability and event management capabilities to support the data and transaction volumes associated with this technologyTable stakesApplicationsLeverage the above technology to deliver functionality with realistic ROI and to create platform for future expansionValue point
21Oracle Application Server 10g RFID Events and Edge Processing HandheldScanner / Reader(with Driver)Naming / PML ServicesOperational DataDistributionStream DataMinimized & NormalizedBackendApplicationsFiltering & Device IntegrationFixed Sensors (e.g. RFID)Lightstack, Message Boards, or Notification Devices (e.g. SMS, Pager)
22RFID Planned for 11i.10Interface to readers, clean & filter data, then pass ID's to applicationRFID MiddlewareAccess objects associated with the ID's (e.g. LPN's on Delivery), then raise correct Business Event based on RulesDrive load through RFID Reader inShipping DockLoad of pallets and/or cartons with RFID Tags for each LPNRFID Event ProcessorProcess the Business Event (e.g. LPN Ship)Picked & Staged Material for DeliveryApplication API'sConfirm success or failure (e.g. trigger green light or sound buzzer)Response & Exception HandlingLoad Delivery, rescan or divert materialOracle ConfidentialThis presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
23The Top CPG Opportunities for Driving Shareholder Value Regulatory ComplianceDriving business effectiveness by managing through a single version of the truthCollaboration – UCCNet a partner to achieving supply chain excellenceRFID – When and whatPromotion management – Sarbanes-Oxley
24The Impact of Regulation It is a mistake to ignore FASB and Sarbanes-Oxley It has been a tough year…Royal Ahold is decimated by SEC Investigations on Promotion Allowances:$500 million had to be restated due to new FASB changesCEO and CFO resigned, now face criminal chargesSEC found irregularities in Promotion Allowance accountingEntire board forced to resignFleming forced to take $645 million chargeNow bankruptStock formerly trading at $20 now at 14¢!SEC sends notice to General Mills of “review” intentionsForerunner to formal investigation?SEC sends “notices” to Frito-Lay, Dean Foods and KraftIn connection with Fleming relationships…and it promises to be just the start!
25A Hard Price to Pay! Royal Ahold reports a 2002 loss of $4.8 Billion! Rite Aid faces accounting fraud charges of nearly $1 Billion!Bristol-Myers/Squibb’s FASB revenue reversals were nearly $1.4 Billion in 2002Hits (to profit and ethics) Just Keep On Coming!“The FBI is opening three to five investigations a month of suspected fraud of $100 million or more by executives at publicly traded companies, a pace that indicates the scandals that have rocked corporate America for the past 18 months show no signs of abating.” [Boston Globe 5/6/03]
26Oracle Trade Management Solution CustomersControl Financial RisksIncrease EfficiencyEnableCollaborationLower CostIncrease SalesIncrease ROISupplyChainSalesMarketingFinanceProductsTrade ManagementSingle Viewof Customers& ProductsTrade PlanningBudgetManagementClaimsIndirect SalesDataPromotionsA complete approach revolves around a single view of your customers and your products and allows the users to plan their budgeting process, prepare their corporate plans for dissemination to the field sales where promotional activity with customers take place. It includes the tools necessary to evaluate the effectiveness of campaigns, the ability to capture information to handle the expected deductions and , hopefully resolve claims before they become deductions.With full integration to financial applications AR, GL your budgeting costs are captured and posted correctly enabling you to start the entire process once more.What is Oracle TMA SOLUTION that helps companies with REAL business needs:Ensure Effective Use of FundsImprove Trade Promotions ProfitabilityReduce Claims and Deduction CostsAll the while maintaining Control, Efficiency and Visibility into the processesClaimsARAPGLInventoryOrder ManagementAdvanced PricingMarketingPRM
27Mission Statement:To be the global leader as the premier provider of fully integrated ebusiness technology, applications and analytic solutions to enable demand driven, business process efficiency and effectiveness for the Consumer Products industry.and…To be acknowledged as a trusted business solution partner to our clients in the industry.
28Oracle’s Commitment to The Consumer IndustryTop down leadership commitment to CPGInvestment in people and product1,300 Developers focusing on key capabilitiesCompliance with Retailers - UCCnet, RFID, OM, APS,WMSCompliance with Sarbanes Oxley – TMCompliance with FDA – Poecess ManufacturingDeep industry domain knowledge expertsIndustry thought leadershipExtensive experiencing developed while working at CPG companiesPhilip Morris, Kellogg’s, Coca ColaFocused Customer Advisory BoardsStrong partner development relationshipsFocused sales and support organization
29Oracle’s Global Consumer Customers ACCOConAgraKnouse FoodsPetra Food GroupSunny Queen FarmsADM Alliance NutritionCoty CosmeticsKoninklijke Theodorus Niemeyer B.V.Poore BrothersSuntory WaterAgrotechDardanelLand O LakesSunrich FoodsThermos CorpAlcoa ConsumerDeckers OutdoorsMaster LockPremio FoodsTimexAllian Food ServicesDel Monte Fresh FoodsMattelRepublic WindowsToraniAnimexEstee LauderMehsana Milk ProducersRoyal ApplianceTropicanaArnotsFostersMitsukanRudolph FoodsUnilever RocketAtariFruit of the LoomMoosehead BreweriesSammontanaUni-PresidentNational GrowersGalamNantucket NectarsSan PellegrinoValsparBacardiHallmarkNature's SunshineSchreiber FoodsViking RangeBimbo BakeriesHatsun Agro ProductsNow Natural FoodsSeafreshWarner Brothers ConsumerBlue BellHelen of TroyGlobal Home ProductsSherwin WilliamsWaterpikBradford SoapHerbalife Int.OpusSmithfield FoodsWC BradleyCanonIglooP&GSnack Brand FoodsWells DairyCharbroilJM SmuckersPell CorpSolo CupWest Farm FoodsCoca Cola AmatilJohn I. HaasPellaStarbucksWeyl BeefCoca Cola EgyptKellogg's EuropePepsiCoSteriliteZhujiang BeerApplicaWelch’sMeow MixDel Monte GroceryParamount FarmsIlly Coffee11i is helping many companies adopt internet best practices.
30Growing CPG Family of Customers ParamountFarmsSun RichFoodsMooseheadBreweryAtariBradford SoapHerbalifeElma ChipsAccoWelch’sCoca-Cola Bottling Co. (Egypt)ApplicaMeowmixWell’s DairySmucker’s HRSherwin Williams HRSuntory WaterGlobal ProductsPremio FoodsSolo CupHelen of TroyDel Monte Freshilly CoffeeNational GrapeGrowersNCHHighlight 3-5 case studies. Outline sales strategy, and how we prosecuted the deal, and what were the leading apps that swung the deal.
31CPG Targeted Business Flows Oracle’s commitment to the CPG IndustryIndustry LeadershipGMA Forum Leadership councilCGIT Thought LeadershipDevelopment Customer advisory BoardsCo-development with industry leaders driven by CPG business flowsUCCNet certified memberCPFR / VICSRosettaNet Board (Part of UCC)ePCStandardsOrganizationsGMAAdvisory BoardConsumer confidenceNRFUCCNetVICS Technology CouncilCPG Targeted Business FlowsGMA – Grocery Manufacturers Association UCCNet – Uniform Code Council NetworkNRF – National Retail Federation VICS – Voluntary Interindustry Commerce Standards
32Business Flow Inventory Consumer Goods - Food and Beverage:Business Flow InventoryMarketing &PlanningProduct Design& DevelopmentSupply ChainPlanningManufacturingOrderManagement &LogisticsChannelManagementMarketingMarketing Plan to Fund AllocationCreate and Execute Marketing EventCreate and Execute Web CampaignCreate and Execute Consumer CampaignCreate and Execute Integrated CampaignStrategic Planning/Product LifecycleAnalysisMarket Analysis to Strategic PlanMarketing Analysis to Calendar and Budget CreationMarket Analysis to Product Concept/Line ExtensionResearch andProductDevelopmentNew Product Concept to ReleasePackage Design/New Package Plan to UtilizationDemandForecasting andPlanningCustomer Collaboration to Consensus ForecastForecast to PlanSupplier Collaboration to CommitmentSupplierRelationshipManagementSupplier Negotiation to AgreementRequisition to ReceiptInspection to DispositionSupplier Return to SettlementSupplier Invoice to PayProcessManufacturingPlan to ScheduleSchedule to ProduceLab Quality ControlInspection to AcceptanceLot Control/GenealogyManagementQuality Issue to ResolutionOrder FulfillmentConsignment to SettlementCustomer Return to SettlementOrder Submission to VerificationOrder Verification to PlanWarehouseManagementPick to ShipPlan to Customer PickupInventory TransferIssue to Stock ReconciliationTransportationPlan to PickShip to DeliveryDelivery to SettlementPlan to Store DeliveryCarrier Negotiation to AgreementCarrier Invoice to SettlementSales ForceAutomationSettlement to CompensationRetail ManagementKey Account Negotiation to PlanCreate and Execute Trade PromotionDeduction and Claim ResolutionCategory Analysis to PlaneCommerce (B2Band B2C)Click to Order (Buy)Click to Order (Try)Consumer Inquiry/ Issue to ResponseEnterpriseMgmtBusinessIntelligenceFinancials /TreasuryTaxAccountingHRProjectsFixed AssetsService
35Oracle’s Representative CPG Supply Chain Customers by Product Order ManagementBimbo BakeriesPella Corp.Alcoa ConsumerJohn I. HaasCoca Cola EgyptWaterpikViking RangeUnilever RocketUni-PresidentPepsiCoAtariMaster LockPell CorpRoyal AppliancesSunny Queen FarmsTimexHerbalife Int.Schreiber FoodsSupply Chain PlanningAlcoaCannonRudolph FoodsPepsiCo PakistanKellogg’s EuropeProcurementBimbo BakeriesWaterpikRudolph FoodsAlcoa ConsumerPella CorpOdwallaAtariCannonJohn I. HaasPepsiCo Int.Suntory WaterTropicana EuropeViking RangeStarbucksProcess ManufacturingJM SmuckersWeyl BeefSmithfield FoodsWest Farm FoodsFostersTropicana BelgiumSeafreshSammontanaWells DairyUni-PresidentSchreiber FoodsAlcoaToraniLogisticsRoyal AppliancesViking RangePella CorpThermos CorpIglooRepublic WindowsServiceCannon USASuntory WaterSchreiber FoodsMaintenance MgmtAlcoaProduct Lifecycle MgmtPepsiCo PakistanSupply Chain AnalyticsJohn I. HaasRudolph FoodsCannonRandy Runk This slide will ensure that each of the members knows the products that we offer. Note that the Future programs are noted – all others are in production release
37Evolution of Oracle Applications in CPG Consumer Capabilities: Deep functionalityEvolution of Oracle Applications in CPGCurrent Differentiators……11i.9……Coming in 11i.10Process ManufacturingRecipe DevelopmentCatch-WeightsShelf-Life & Status ControlCo- / By-ProductsReal Time Order Promising and VisibilityMulti-Channel Order CaptureAdvanced PricingEDI Transactions for POs, Ship Notices, Invoicing & WarehousingClaims & Deductions MgmtLot TraceabilityFunds ManagementPromotional PlanningProcess Manufacturing21 CFR Part 11 ComplianceHACCP Quality Test PointsAutomatic Lot GradingManufacturing SchedulerContinuous Real-Time Demand PlanningIntegrated Maintenance and Production PlanningHigh Volume Order ProcessingEnhanced Blanket Orders and ReleasesRetroactive Promo AdjustmentsPromotional ROI Calculations3rd Party POS Data Import (to Calc Promotional Accruals)Transportation ExecutionCollaborative SourcingAdvanced Product CatalogProcess ManufacturingComputer-Aided FormulationLot-Specific CostingEnvironmental TestingReserve Mfg to Sales OrdersStability StudiesTransportation PlanningEnhanced Co-Product PlanningShort Term Deployment PlanningBusiness Account PlanningIntegrated Sales ContractsQuick Ship User InterfaceCustomer Consigned InventoryRetroactive Pricing in PurchasingGlobal Procurement and Drop ShipmentsChannel Budget ManagementEnhanced Management and Resolution of Promotional Claims.The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality.
38Evolution of Oracle Applications in Non-Durables Consumer Capabilities: Deep functionalityEvolution of Oracle Applications in Non-DurablesCurrent Differentiators……11i.9……Coming in 11i.10Mixed Mode ManufacturingInventory Postponement OptimizationSupplier Collab & VMICollaborative PlanningSupply Chain Exception MgmtReal Time Order Promising and VisibilityMulti-Channel Order CaptureAdvanced PricingEDI Transactions for POs, Ship Notices, Invoicing & WarehousingClaims & Deductions MgmtLot TraceabilityFunds ManagementPromotional PlanningDiscrete ManufacturingFlow SequencingWIP Serial TrackingResource Centric Scheduling WorkbenchContinuous Real-Time Demand PlanningIntegrated Maintenance and Production PlanningEnhanced Blanket Orders and ReleasesRetroactive Promo AdjustmentsPromotional ROI Calculations3rd Party POS Data Import (to Calc Promotional Accruals)Transportation ExecutionCollaborative SourcingAdvanced Product CatalogHigh Volume Order ProcessingDiscrete ManufacturingOption-Dependent Sourcing for CTOSelf-Svc Entry of Quality Data, Non-Conformances & CARsTransportation PlanningShort Term Deployment PlanningBusiness Account PlanningIntegrated Sales ContractsScarce Inventory AllocationQuick Ship User InterfaceCustomer Consigned InventoryRetroactive Pricing in PurchasingGlobal Procurement and Drop ShipmentsChannel Budget ManagementEnhanced Management and Resolution of Promotional Claims.The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality.
39Summary Committed to the CPG Space Understand the key issues facing the industryProvide focused solutionsBuilding the future with key partner participation