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Creating Sustainable Competitive Advantage outside your Four Walls

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Presentation on theme: "Creating Sustainable Competitive Advantage outside your Four Walls"— Presentation transcript:

1 Creating Sustainable Competitive Advantage outside your Four Walls
KP Loke Director, Supply Chain Solutions Oracle Corporation Australia / New Zealand

2 Creating Sustainable Competitive Advantage outside your Four Walls
Influences Outside the 4 Walls Technology Longer Supply Chains Trading Partners The FMCG Company Politics & Legislation Business Techniques Choice Business Philosophies Local & Global Economics 2

3 <Insert Picture Here>
AMR Research Tech Trends 2007, March 2007 “The leaders in the industry are winning because they are building competitive capabilities from the “outside in”: for example, joint value creation with retailers, demand sensing and translation, eliminating stock-outs, perfect product launches, understanding consumer behaviors and using insights to shape demand.” “This approach contrasts isolated “inside-out” thinking, which strives for operations excellence in functional silos across the business without improving overall performance of the end-to-end value network.” 3

4 Creating Sustainable Competitive Advantage outside your Four Walls
Influences Outside the 4 Walls The Demand Chain Technology Longer Supply Chains Trading Partners The FMCG Company The Design Chain Politics & Legislation Business Techniques Choice The Delivery Chain Business Philosophies Local & Global Economics 4

5 What are the Major Enablers ?
Creating Sustainable Competitive Advantage outside your Four Walls More Competitive More Profitable What are the Major Enablers ? 5

6 3 Key Enablers Mass Collaboration Data Avalanche
Optimisation Techniques and Leading Edge Processes 6

7 <Insert Picture Here>
News Article 27-Dec-2007 <Insert Picture Here> Mass Collaboration could change ways companies operate The "company," as we've known it for almost a century, is about to go the way of vinyl albums, floppy disks and perked coffee A combination of the Internet, cheap computing, Web-based software, open-source projects such as Linux and new ways of thinking about management are mixing together to dramatically drop the transaction costs of doing business outside a company's walls 7

8 Service Oriented Architecture (SOA) is Enabling Mass Collaboration
ComputerProgram A ComputerProgram B EDI 1990s - 200X 200X & Beyond Service Oriented Architecture (SOA) Fine Grain Collaboration 8

9 3 Key Enablers Mass Collaboration Data Avalanche
Optimisation Techniques and Leading Edge Processes 9

10 Radio Frequency Identifier (RFID), GPS, Satellite Tracking
Data Avalanche Mobile Devices/ Wireless Broadband Radio Frequency Identifier (RFID), GPS, Satellite Tracking Granular Near-Real-Time Data Syndicated Data Spatial Data The ACOM has been designed to provide a national central repository for information on all prescription and non-prescription medicines, including complementary healthcare products, currently marketed in Australia. This includes details on the medicine’s active and equivalent ingredients, medication form, container type, unit of measure, poison schedule, plant part and plant preparation. Each medicine is also grouped into a virtual medicine, based on the product’s active ingredient, form and strength. “Near Realtime Data” 10

11 Granular Timely Market Data
Data Avalanche State and Store Level Raw Data Via the web. Regional Data or store clusters. Control / Test Store level analysis. Granular Timely Market Data The ACOM has been designed to provide a national central repository for information on all prescription and non-prescription medicines, including complementary healthcare products, currently marketed in Australia. This includes details on the medicine’s active and equivalent ingredients, medication form, container type, unit of measure, poison schedule, plant part and plant preparation. Each medicine is also grouped into a virtual medicine, based on the product’s active ingredient, form and strength. Spatial/ Global Positioning Data 11

12 Syndicated Data - Example 1
Data Avalanche GDSN provides a single point of truth for product information The ACOM has been designed to provide a national central repository for information on all prescription and non-prescription medicines, including complementary healthcare products, currently marketed in Australia. This includes details on the medicine’s active and equivalent ingredients, medication form, container type, unit of measure, poison schedule, plant part and plant preparation. Each medicine is also grouped into a virtual medicine, based on the product’s active ingredient, form and strength. Syndicated Data - Example 1 12

13 Syndicated Data - Example 2
Data Avalanche Australian Catalogue of Medicines (ACOM) The ACOM has been designed to provide a national central repository for information on all prescription and non-prescription medicines, including complementary healthcare products, currently marketed in Australia. This includes details on the medicine’s active and equivalent ingredients, medication form, container type, unit of measure, poison schedule, plant part and plant preparation. Each medicine is also grouped into a virtual medicine, based on the product’s active ingredient, form and strength The ACOM has been designed to provide a national central repository for information on all prescription and non-prescription medicines, including complementary healthcare products, currently marketed in Australia. This includes details on the medicine’s active and equivalent ingredients, medication form, container type, unit of measure, poison schedule, plant part and plant preparation. Each medicine is also grouped into a virtual medicine, based on the product’s active ingredient, form and strength. Syndicated Data - Example 2 13

14 Data Avalanche - Management and Control
Single Source of Truth Cust. Hub Prod. Hub Site Hub SOA / Middleware Technologies ACOM The ACOM has been designed to provide a national central repository for information on all prescription and non-prescription medicines, including complementary healthcare products, currently marketed in Australia. This includes details on the medicine’s active and equivalent ingredients, medication form, container type, unit of measure, poison schedule, plant part and plant preparation. Each medicine is also grouped into a virtual medicine, based on the product’s active ingredient, form and strength. Examples of Master Data Outside the 4 Walls Master Data Management (MDM) Inside the 4 Walls 14

15 Data Avalanche - Management and Control
Retail DC/ Distributor Data POS sales Price Store inventory Promotional plans Store replen. rules Store forecasts Retail Store Data DC shipments DC inventory DC replen. rules Retail loyalty AC Nielsen/ Synovate 3rd party demographic Causal (weather,etc.) RFID / EPC Unstructured text Other External Data Data Avalanche - Management and Control Examples of Transaction Data Outside the 4 Walls SOA / Middleware Technologies Data sources centrally cleansed, harmonised and aggregated “Sense & Respond” event management Capture Manage Analyze Respond Demand Signal Repository Integrate Trade Promotions Management Distribution Management Sales and Operations Planning Category Management Transaction Repository Inside the 4 Walls 15

16 Demand Signal Repository
An Avalanche of Data - Summary Customer Hub Design Chain Product Hub Demand Chain Site Hub Avalanche of Data Outside the 4 Walls Delivery Chain Demand Signal Repository 16

17 3 Key Enablers Mass Collaboration Data Avalanche
Optimisation Techniques and Leading Edge Processes 17

18 Optimisation Techniques and Leading Edge Processes
<Insert Picture Here> Optimisation Techniques Trade Promotions Optimisation Delivery Scheduling Optimisation Baysian-Markov Forecasting Technique Leading Edge Processes Product Lifecycle Management Promotion Management Transportation Management 18

19 Creating Sustainable Competitive Advantage outside your Four Walls
More Competitive More Profitable Mass Collaboration Data Avalanche Optimisation 19

20 The Design Chain While growth and innovation remain a top priority for Consumer Goods companies, the success rate was poor in 2006: More than 80% of new products launched failed to meet their goals More than 100,000 new products were launched last year, but only 1% or 2% of new consumer products become $100M (USA scale) brands Breakthrough innovation was rare; 56% of new products launched were current products or line extensions In the face of the Consumer Goods companies’ failure to innovate, retailers are becoming innovators and launching new products We already talked about the fact that innovation is critical to maintain steady top-line growth in Consumer Goods. Unfortunately, based on this AMR report, the industry’s success rate was poor in 2006: More than 80% of new products launched failed to meet their goals. More than 100,000 new UPCs were launched last year, but only 1% or 2% of new consumer products become $100M brands. Breakthrough innovation was rare; 56% of new products launched were current products or line extensions. In the face of the Consumer Goods companies’ failure to innovate, retailers are becoming innovators and launching new products. Now, what happens when Consumer Goods companies improve their innovation performance? 20 Source: AMR Research, “Part 2: How Can You Be Demand Driven If You Don’t Know Your Shopper?”, March 2007

21 Business Challenges and Pain Points
Typical Pain Points Longer & More Complex Supply Chains Managing innovation projects Latency and Inaccuracies in Manual Collaboration Disparate Data Sources. Latency and Inaccuracies in Data Available Lack of Specific Tools to Support Innovation Process Inability to meet launch dates Disconnected innovation activities Poor collaboration and approval processes No visibility into innovation projects globally Stale project and portfolio measurements Lack of involvement from value chain partners The FMCG Company Managing product and supplier data Disconnected data model Incomplete or inaccurate specifications Lack of global visibility and traceability Manual review and approval process Lack of visibility into global sourcing network Poor external collaboration Relentless Demand for More Choice Improving product formulation, packaging, labeling quality, compliance and safety Greater Legislative Compliance Lack of compliance screening Slow manual (re)formulation/ optimisation process Isolated packaging and labeling activities Manual packaging/labeling collaboration& apprvl No visibility & traceability into compliance/ quality Disconnected systems storing formulation, compliance, nutrition, quality and safety data 21

22 Design Chain - Old Paradigm
SUPPLIERS ARTWORK OUTSOURCED DESIGN PARTNERS CAD CAD Quark Quark Adobe Adobe ERP ERP SCM SCM CUSTOMERS Design Briefs REGULATORY Package Designs BODIES Samples Submission Files Value Chain Value Chain Artwork Files Enterprise Enterprise Formulas Ideas CAD Models Audits MARKETING Specifications LEGAL & CA Notes Notes Project Project EDMS EDMS Excel Excel Access Access Fortunately, these challenges converge to one root cause: the cross-functional team members participating in innovation projects often work on isolated activities using islands of information and disconnected systems requiring manual review and approval steps, leading to poor cross-functional coordination and rendering the product development process ineffective – all of this without visibility into all other innovation projects, past and present. R&D PROCUREMENT (Aust) R&D R&D PRODUCTION Excel Excel ERP ERP Recipe Recipe (USA) Mgmt Mgmt (Asia) CAD CAD Spec Spec ERP ERP SCM SCM MES MES MCAD MCAD DB DB 22

23 Objective of the Design Chain
More rapid innovation cycles Faster, Better, More Effective Innovation Product Launch Reduced development costs Product Launch Shorter time to market Higher sales and margins from new products Higher success rate of new products Reduced risk Cash flow The goal of innovation is to move from the red curve to the green curve (thereby capturing the value represented between the two curves), and repeat the green curve in faster cycles. This is a simple, but very powerful concept. Whoever gets to market first, at a lower cost, and with products that best meet consumer needs, wins the battle. In order to achieve this, companies need to Accelerate innovation to achieve a shorter time-to-market More effectively use the development funds (both in product and process) Reduce the risk associated with product launches and Improve the sales and margins of new products by better meeting customers ‘ expectations. The goal is better, faster, more effective innovation. Time 23

24 Design Chain - New Paradigm
Fortunately, these challenges converge to one root cause: the cross-functional team members participating in innovation projects often work on isolated activities using islands of information and disconnected systems requiring manual review and approval steps, leading to poor cross-functional coordination and rendering the product development process ineffective – all of this without visibility into all other innovation projects, past and present. Mass Collaboration Data Avalanche Optimisation 24

25 The H.J. Heinz Company COMPANY OVERVIEW
H. J. Heinz Company manufactures and markets a line of processed food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant food and other processed food products, which are sold to consumers, as well as foodservice and institutional customers. Revenues (2006): $9.0 Billion; employees (2006): 33,000 CHALLENGES/OPPORTUNITIES Proliferation of specifications (from finished products to ingredients) Limited visibility and security with data stored in multiple manual systems Inconsistent specification management process Inconsistent and slow new product introduction process SOLUTIONS Oracle Agile Product Lifecycle Management for Process Oracle Agile Product Data Management for Process Oracle Agile Formulation and Compliance for Process Oracle Agile Product Supplier Collaboration for Process Oracle Agile New Product Development Launched Project Viper in 2000 Implemented in over 175 sites, in 21 languages/cultures, with over 4,500 registered users CUSTOMER PERSPECTIVE “Oracle Agile Prodika has greatly improved our raw material, supplier, and product intelligence. Information which used to take weeks to gather is now a natural extension of our day-to-day business processes." Deb Crosby, Chief Quality Officer RESULTS Simplification and global standardisation of business processes Global information visibility with one single “version of the truth” (data accessible in seconds vs. weeks) SKU rationalisation and reduction of number of specifications (30% reduction in SKUs) Faster new product introduction cycles (reduced labeling cycle from 45 to 7 days) Improved supplier collaboration In 2000, Heinz launched a project called Viper and started deploying the Oracle PLM solution. Their challenges were very typical to the Consumer Goods and Food & Beverage industry: proliferation of specifications, limited visibility, inconsistent processes and slow time-to-market. The standardisation and simplification of processes, the creation of a single version of the truth, and improved supplier collaboration has led to a 30% reduction in SKU’s and all the productivity savings that go along with it, and an amazing reduction in the labeling cycle within the new product introduction cycle time from 45 days to 7! 25

26 26

27 McDonald’s Global information visibility
COMPANY OVERVIEW McDonald’s Corporation primarily franchises and operates restaurants in the food service industry. These restaurants serve a value-priced menu in more than 100 countries around the world. All restaurants are operated either by the Company, by franchisees or by affiliates and developmental licensees operating under license agreements. Revenues (2006): $21.6 Billion; employees (2006): 465,000 CHALLENGES/OPPORTUNITIES Islands of information and disconnected systems Inconsistent processes across regions Paper-based menu management, product management and supplier management SOLUTIONS Oracle Agile Product Lifecycle Management for Process Oracle Agile Product Data Management for Process OracleAgile Formulation and Compliance for Process Oracle Agile Product Supplier Collaboration for Process Oracle Agile New Product Development and Introduction for Process Launched Project Merlin in 2005 Implemented in North America, Europe and Australia with over 400 registered users CUSTOMER PERSPECTIVE “Our service provider for Merlin had to understand the technology needs; but more importantly, understand how the information would be used to support business processes and solve problems. Oracle Prodika understood this expectation without being asked … Other potential vendors talked about technology and functionality. Oracle Prodika talked to us about process optimisation.” Catherine Adams, Corporate VP, Worldwide Quality, Food Safety and Nutrition RESULTS Global information visibility Improved communication and coordination across regions and functions, and with suppliers Improved ability to design quality into new products, and manage conformance to design Streamlined new product development process In McDonald’s case, they are utilizing the Oracle PLM solution to help them with their inconsistent data and processes, by creating a more visible, more collaborative environment. This improved communications and coordination has helped McDonald’s to minimise their new product development process and build a higher level of quality and conformance into their new products. This transformation, identified as the “Merlin Project” recently received the highly respected McDonald’s 2006 Circle of Excellence Award, recognizing their contributions to advancing the McDonald’s vision. 27

28 Creating Sustainable Competitive Advantage outside your Four Walls
More Competitive More Profitable Mass Collaboration Data Avalanche Optimisation 28

29 The Demand Chain Demand Driven leaders typically have:
Source: AMR Benchmark Analytix 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Complete order fill rate % Gross margin % Customer retention Laggard Industry norm Best-in-class Current % performance Performance metric © 2004 AberdeenGroup Demand Driven leaders typically have: 15% less inventory 17% stronger order fulfillment 35% shorter cash-to-cash cycle times S&OP leaders outperform their competitors: Improved order fill rates Increased gross margin Higher customer retention And this important for the simple reason that companies that excel at sales and operations planning outperform their competition. Here are some sample benchmarks from two industry analyst studies. Which translates to: 60% better profit margins 65% better EPS 2-3X the ROA 29

30 Business Challenges and Pain Points
Longer & More Complex Supply Chains Typical Pain Points Stock outs & non-availability Excessive Inventory Low Service Levels Promotion’s negative ROI Loss of Revenue New Product Introduction Failure The FMCG Company Relentless Demand for More Choice Need Higher Service Levels at Lower Cost 30

31 Sense Demand “Real-Time”
Incremental forecasting Capture demand more frequently, closer to the point of consumption (eg POS data) Capture demand and forecast at more granular level (store, shelf, attributes, product characteristics) Achieve consensus demand number more quickly by involving all parties (including customers0 Quickly identify and react to demand changes and exceptions Moving to being more demand driven starts with sensing demand more real time. This includes sensing demand at a much more granular level and closer to the point of consumption. Oracle Demand Management enables you to consolidate demand data from many sources, and provides the scalability to enable collecting demand data at as detailed a level as you need. While it is completely integrated with the Oracle E-Business Suite and Oracle JD Edwards E1, it is open and flexible enabling you to bring in demand data from any external source as well. It is completely meta data driven, allowing you to bring in, consolidate, and view data at any levels of aggregation across unlimited hierarchies. It also provides workflow to automate collaboration and enable a management by exception paradigm. Demand changes get detected real-time and are instantly reflected to all constituents and exceptions are triggered automatically 20th Century Fox processes real time updates from 15,000+ stores daily 31

32 Improve Forecast Accuracy
Superior Bayesian-Markov Analytics Bayesian Estimator Historical data Bayesian combined model Multiple causal factors Forecast Estimator’s models Bayesian mix modeling 15 model library Auto-regressive moving average (ARMA) Regression integrated winters Logistic and logarithmic models Ridge regression, Markov chain regression Intermittent regression Unlimited causal factors Seasonality, weather, market indicators Base + price + multi-event lift decomposition Promotion effects Cross-product and cross-location effects Pre and post event Automatic outlier detection Trend long, short, dampening Missing data interpolation Shape modeling and auto-correction Regime change Fit and forecast validation It provides best in class Bayesian-Markov statistical modeling that represents the next stage in the evolution from trial and error, to best fit methods, to blended models that incorporate all the factors that influence demand for accurate prediction of future demand. 32

33 Promotion Optimisation
Competitive switching Long term growth Pre and Post promotion effect Cross product cannibalisation Baseline Optimisation option automates promotion selection User-defined boundaries for allowable promotions Optimisation on profit, revenue, volume or budget funds Use granular lift analytics Save account manager time over manual what-if analysis Analytics output always visible Volume and profitability of future promotions Impact of varying promotional tactics and price points Manufacturer and customer profitability Lift decomposed to identify cannibalisation, pantry loading, and halo effect An Avalanche of Data With optimisation, you can automate the selection of the best promotions within your budgets to meet your objectives. It provides detailed and accurate estimation of the impact of various tactics and price points on manufacturer and customer profitability 33

34 Demand Mgmt with Partner Collaboration
Collaborate with customers and measure impacts Improve demand visibility with customer collaboration Tailor worksheets to specific customer needs Worksheet can be attached to a task Direct alerts via application or Automate internal notification on customer input Field-level security tied to customer access privileges Another element of real time demand sensing is collaborating directly with customers. Oracle Demantra enables easy and effective collaboration with your customers enabling you to improve your prediction of demand. Customers can be provided secure access to only their data for more efficient collaboration. Partner Inputs: XML,EDI or Manual Partner Forecast Metrics 34

35 Case Study The Solution The Result An Avalanche of Data ……………
Oracle Demantra also enables a high degree of automation of the evaluation of demand data with tools like alerts, flexible worksheets, color coding to highlight areas of interest, all enabling a management by exception driven process to enable you to efficiently and effectively monitor and respond to customer demand. The Result An Avalanche of Data 35

36 Other Case Studies Dramatic increase in forecast accuracy
“Six months after implementing Demantra we have seen a dramatic increase in forecast accuracy. This resulted in an immediate 20% inventory reduction.” – Wendy Malloy, Inventory Planning Manager, Wilton Industries 45% increase in accuracy in 6 weeks “From an isolated process to a full Demantra solution - within six weeks of going live our ‘A-items’ improved 45% in accuracy. Today we load daily bookings against the forecasted plan and feed production management to align back-end production based on the true feed of real-time demand.” – Sagi Srinivas, Director, Supply Chain Systems, BiosenseWebster Integrated Forecasting and Promotions Planning We see the Demantra product doing far more than just trade promotions. The ability to have Trade Promotion Management really be embedded with the demand plan and integrated post-analysis, all in one tool -- that is the one key that no other manufacturer of this type of product could accomplish. - Larry Rencken, Chief Information Officer, Welch’s But more importantly, here are quotes from a few of the many satisfied Oracle Demand Management customers. 36

37 Creating Sustainable Competitive Advantage outside your Four Walls
More Competitive More Profitable Mass Collaboration Data Avalanche Optimisation 37

38 % of Companies Researched
The Delivery Chain 50% 42.1% Improvements in the delivery chain can save between 5-25% of cost 40% 28.9% 30% % of Companies Researched 20% 13.2% 13.2% 10% 2.6% 0% 1-5% 6-10% 11-20% 21-30% x > 30% Savings Opportunity Companies with Annual Transportation Spend > $10 Million Source: The Logistics Institute at Georgia Tech 38

39 Business Challenges and Pain Points
Longer & More Complex Supply Chains Typical Pain Points Increase Demand for accurate delivery status and cost information Demands for shorter cycle times and more frequent deliveries Market pressures to reduce delivered cost Tightening freight capacities and increasing accessorial costs Increasing complexity and lengthening supply chain Increasing Regulatory Compliance The FMCG Company Relentless Demand for More Choice Need Higher Service Levels at Lower Cost Greater Legislative Compliance 39

40 Support a Wide Range of Optimisation Needs
Shipment Planning and Optimisation Maximise Fulfillment Service, Minimise Transportation Costs Consolidation Service Provider Optimised Decisions Timing Equipment Route Mode Engines & Rules Algorithms Multi-Leg Multi-Mode Consolidation Common Leg Consolidation Multi Stop Consolidation Multi-Tier Networks LTL Consolidation Continuous Moves Service Time Calculation 3-Dimensional Container Optimisation Itineraries & Profiles Carrier Capacity Throughput Rating Support a Wide Range of Optimisation Needs Container and trailer optimisation & configuration Shipment assignment, stringing & continuous moves Fleet sizing & assignment (execution, strategic) International shipping Facility resource balancing Bid collaboration and optimisation

41 Carrier Bid Optimisation Secure Best Value from Service Providers
Transportation Service Providers Your Company Oracle Global Logistics Prepare bids using real history, forecasts, and actual orders Electronically send out bid packages Optimise results and send out awards Automatically load the winning contract into the execution environment Orders Lane Forecasts Receive Demand Bid Initiation Bid Packet Optimised Award Recommendation Accept Quote Analysis Quotes Contract Procurement Extract or interface lane forecast information Aggregate and manage lane forecast Distribute to and collaborate with service providers Receive and optimise bids Award and upload rates into operational tables Procurement (from portal) Prepare bids using real history and forecasted projections Send out bid packages Optimise results and send out awards Load the winning contracts automatically into the execution environment Load Execution Environment Award Notice Selected Carrier 41

42 Supply Chain Event Management
Data Avalanche Retailer 1 Port Port OEM Plant (Bangkok) (Sydney) Retailer 2 Alert! … Dealer msg “Partial Ship” Automated Action … 1) Order and routing change 2) Expedite replenishment order Alert! … Delayed in customs Automated Action … Split shipment of good Receive Proactive Notifications and Rapidly Adjust to Unforeseen Delays Utilise Event Management to Trigger Automated “Corrective Action” Flows 42

43 Intelligent Truck Scheduling and Regulatory Compliance
Break Start Time Break Completion Time (Break Duration) Data Avalanche 43

44 Kraft Foods Company Overview
Kraft Foods is the world’s second largest food and beverage company with 2006 net revenues of $34 billion.  Kraft is headquartered in Northfield, Illinois and has 104,000 employees and operations in 72 countries. What is the business problem we are solving? For daily shipment planning, Kraft utilises OTM's direct planning, bulk planning, shipment pooling, carrier commitments, carrier capacity and shipment tendering/execution.  Kraft plans to gradually bring up 180 planning sites on OTM throughout 2008. What components of OTM are we implementing? Freight Financials (Live in August 2006) Cooperative Routing (Live in January 2007) Transportation Planning and Execution( Live on Sept 21, 2007) Future plans Deploy transportation planning & execution to all 180 sites (2008) Cooperative Routing Execution (2008) Dock Scheduling (2008)  Other potential projects include ocean/vessel, procurement, planning and financials in Europe 44

45 CHALLENGES/OPPORTUNITIES
COMPANY OVERVIEW €37B international retailer based in Cheshunt Hertfordshire, U.K. 2,365 total stores throughout Europe and Asia selling 50K product lines (food retailing comprises over 2,000 stores) 367,000 total employees and 5 years of consecutive growth CHALLENGES/OPPORTUNITIES Non-invasively integrate logistics management and key support systems to minimise both internal and external IT resources Utilise factory gate pricing to reduce costs and gain complete control of inventory from supplier to store shelf for 6,000 daily shipments (70% of inbound freight) including the tracking of costs and performance service levels, order booking, and support for financial settlement Integrate demand (from order management system) and status (from warehouse management system) with transportation logistics ORACLE SOLUTIONS New deployment of Oracle Transportation Management solution Utilises Oracle E-Business Suite for Financials and Procurement, PeopleSoft Enterprise for HR, and Oracle Retail (Retek) for Merchandising PROJECT HIGHLIGHTS Automated 95% of all inbound scheduling resulting in improved availability, reduced stockholding, and increased vehicle / trip utilisation Automatically optimises loads & manages communication with carriers Eliminated EDI by enabling carriers and suppliers direct entry of shipment details (e.g., appointment, pick-up, out-gate times) RESULTS Improved on-time deliveries by 14% Supports 24 / 7 shipping operation with 9 planners Reduced cost per case by 10-15% (£500M in distribution costs) 45 April 2007

46 Increased freight managed in system by 400% in one year
COMPANY OVERVIEW AUD$4 B provider of integrated transportation & logistics services, based in Melbourne (Australia) Maintains a network of 450+ sites throughout the Australasian region and managed by 20,000 employees Utilise Oracle Transportation Management as a key component of their industry-focused Autologistics and Transport Operations Management (ATOM) and Energy solutions. RESULTS Increased freight managed in system by 400% in one year Supports multiple industries with a single instance Improved on-time delivery and customer satisfaction Streamlined operational processes with improved collaboration Enhanced supply chain efficiencies resulting in cost reductions Improved in-transit shipment visibility for better decision-making Supports industry-specific requirements for automotive, consumer packaged goods, and retail 46

47 Creating Sustainable Competitive Advantage outside your Four Walls
Influences Outside the 4 Walls More Competitive More Profitable The Demand Chain The Delivery Chain The Design Chain Technology Longer Supply Chains Trading Partners The FMCG Company Politics & Legislation Business Techniques Choice Business Philosophies Local & Global Economics Mass Collaboration Data Avalanche Optimisation 47


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