Beyond Order Orchestration: Plan and Execute with Allocation and Backlog Management Rajat Bhargav, Director, Product Strategy Danny Smith, Executive Director, SCM Solutions

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 2 Safe Harbor Disclaimer The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle Corporation.

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 3 Agenda The Business Problem The Desired Process Oracles Solution Q&A

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 4 Supply Chain Management Review 2013 Order Fulfillment Survey 53% of high-tech companies collaborate with partners on demand forecasting High-tech companies do not meet their allocations commitments 50% 50% of the time Inaccuracy of data and the inability to stick to the committed forecast impede the success of collaborative forecast compliance programs.

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 5 Allocation Process Statistical Forecast Statistical Forecast Collaborative Allocation Collaborative Allocation Promising Demand Allocation Rules Demand Allocation Rules Constrained Supply Supply Planning Customer Orders Run Statistical Forecast 2.Import forecast to collaborative environment 3.Create allocation plan (consensus) 4.Import allocation plan as forecast to supply plan 5.Run supply plan (constrain demand) 6.Import constrained supply plan into collaboration environment 7.Create final allocation plan and export for enforcement 8.Collect supply plan (stock and production) 9.Orders quantities are kept consistent with final allocation plan Excess order quantity is split and queued 2 2

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 6 Align Planning & Execution with Order Promising Order Promising Allocated ATP/CTP/PTP Multi-channel, Multi-division, Multi-partner ExecutionPlanning Feasible Optimal

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 7 Align Planning & Execution with Order Promising Order Promising Allocated ATP/CTP/PTP Multi-channel, Multi-division, Multi-partner ExecutionPlanning Feasible Optimal Only 1 in 3 companies feel good about their order promising Source: Oracle / Capgemini

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 8 Align Planning & Execution with Order Promising Order Promising Allocated ATP/CTP/PTP Multi-channel, Multi-division, Multi-partner ExecutionPlanning Feasible Optimal …. think that their exception handling needs improvement Delivery delays and resultant expediting are the largest drivers of fulfillment costs Source: Oracle / Capgemini

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 9 Promising Engine Allocation Availability Supply (Inventory and Production) Supply (Inventory and Production) Demand (Commitment) Demand (Commitment) Promising Rules Promise Date lead times shipping constraints service levels sourcing costs calendars

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 10 BUSINESS RULES BUSINESS PROCESS CHANGE MANAGEMENT PROACTIVE EXCEPTION MANAGEMENT ORDER PROMISING Distributed Order Orchestration Components

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 11 Configurable Business Rules Enrich orders for fulfillment Select optimal fulfillment process Assign fulfillment process to lines Route requests to appropriate fulfillment system Enable business users to configure rules without IT coding

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 12 Business Process Mapping Define unlimited global fulfillment processes Add wait times & prevent premature actions Support change order processing, process restart, and multiple processes per order Improve insights & decisions with in-context embedded analytics

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 13 Order Promising Create/Assign Sourcing & Promise Rules Profitable to Promise, Capable to Promise, Available to Promise Allocation by Demand Class (e.g. channel) Manage jeopardy conditions Perform what-if analysis for cost & delivery times with embedded analytics

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 14 Order Change Management Processing Constraints Order Change Request Reset Process to Re-execute Cost of Change? Update Allowed? Provides cost to change visibility for smarter updates Rules-driven decision making based on order attributes, user role or business process

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 15 Proactive Exception Management Jeopardy Management Is this a problem yet? Which customer is impacted? What is the orders priority? Which step is late? How late is the step? Who needs to be alerted? What is the cost to rectify?

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted % Open Standards Role-Based User Experience KNOW What You Need to KNOW DO What You Need to DO WHO WHO Can Help HOW HOW to Get it Done Unified Information Services Intelligent Business Processes Business Unit Employee Product Customer Date EffectivityLedger Organization Trees Territory … Java, BPEL, XML, HTML, AJAX, Portlet, RSS, Mobile, etc. 100% Open Standards

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 17 Current Situation without GOP Sub-optimal service, revenue, and margin Standard lead times Isolated stock visibility Availability limited to stock on hand CUSTOMER Plants Ware house Partners Store

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 18 The Solution: Fusion GOP Optimized delivery across all sources of supply Fusion Global Order Promising Visibility What-if Simulation Embedded Analytics Available to Promise (ATP) Capable to Promise (CTP) Profitable to Promise (PTP) CUSTOMER Plants Ware house Partners Store

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 19 Architected for flexibility – Supply chain definition – Promising rules Capabilities new to Fusion – Profitable to Promise – Alternate availability options – What-if simulation – Embedded analytics – In-memory performance Highlights Fusion Global Order Promising

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 20 Define sources and their priorities Specify internal orgs and suppliers / supplier sites Assign sourcing by item, category, item-org, customer, or geography/zone Key Features Create and Assign Sourcing Rules

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 21 Choose among 3 modes For supply chain availability mode, specify ATP, CTP, or PTP, and multiple attributes Assign rules by category, org, item, or item-org Key Features Create and Assign ATP Rules

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 22 Preserve scarce supply for most important orders Allocate by Demand Class Assign allocation rules by category, org, item, or item-org Key Features Specify and Assign Allocation by Demand Class

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.Oracle - Restricted 23 Graphic Section Divider