1. Supply Chain Orchestration Walter Cheung SCM Solution Manager

2. Agenda Solution Overview & Case Studies Design Demand Delivery Why Oracle Oracle Application Strategy

3. Value Creation Planning Global Business Intelligence: Visibility / Analytics Collaboration Demand Management Transportation Management Product Lifecycle Management Trade Promotion Management Design Demand Delivery

4. Orchestrating the Supply Chain From ERP To Design, To Demand, To Delivery Design Deliver Demand

5. Product Lifecycle Management

6. PLM Value Summary R & D Cost Reduction Cycle Time Reduction Cycle Time Reduction Quality Control & Compliance Quality Control & Compliance Greater productivity via collaborative development process with built-in quality and compliance management Consolidated “single version of the truth" for all product data eliminates unnecessary product proliferation Efficient collaboration across outsourced design and manufacturing sites, suppliers, and retailers Online design review and virtual prototyping of in- house or outsourced products and assemblies Increased product quality and cost avoidance through proactive issue identification and resolution Management of complex product structures while adhering to regulatory requirements

7. Micron Technology Inc. Corporate Background Worldwide design, fabrication, component, and module test/assembly facilities Semiconductor solutions: DRAM, PSRAM, FLASH, CMOS, Advanced Solutions Operations in 18 countries Over 20,900 employees worldwide 13,000 patents Sales of $4.9 billion in FY’05 Headquarters in Boise, Idaho

8. The Process in the past Production & Com’zation Development Product Changes End of Life Product Concept Product Proposal Sourcebooks (Excel) IPDF, Sourcebooks, MS Project, Excel/Word Templates PKP0P3P2P1P4 x.pdf file CBF/CBR, MIS (Eug), Excel (Gibco) Processes 8 wks Program Management Parts Management Multiple Releases (e.g. Stealth, Abs, Protein Kinases) Portfolio Mgmt Program Mgmt Part Mgmt NPAII Web Catalogue Business Issues Project management & Control Delay in new product launch to meet financial targets Quality control Labor intensive – Disjointed – Error Prone Catalog Copy, Flow(NA), Catalog Mgr(EU)

9. Objectives of the Agile Implementation Improve portfolio management Improve Time-to-Market product introduction Institutionalize Phase/Gate process Provide scheduling capabilities tied to deliverables Enable Executive visibility and sign-off Agile PPM/PC is replacing Micron’s internal system for tracking projects and milestones

10. Product Development Process DefinitionProductionDevelopment DP1DP2DP3DP4DP0 Marketing Apps Engineer Design Engineer Manufacturing Sales Decision Points

11. Implementation Approach 12 lead project managers fully engaged in testing, configuration, and system design All active projects loaded in system Multiple OOB reports used for milestone/decision point visibility Agile Analytics used for portfolio management around Decision Points throughout the Lifecycle Status of Documentation/Specification Deliverables on Gates Date trends Use of Process Extensions Enable project management Improve project collaboration

12. Integration between PPM and PC Product Collaboration used for Storing single version of product record Securing IP – right people have access to the data at the appropriate time in the product lifecycle Formal product record change management process Deliverables in PC tied to PPM to provide View of product pipeline across Business Units and product types Single source for all product documentation from different functional units Direct relationship of deliverables and due dates across the portfolio Enhanced collaboration across functional units Formal process for schedule changes in product lifecycle Formal process for “Go”/“No Go” decision meetings

13. Current Status In production for all Business Units Lead program managers are actively managing all project information in the system Broader roll-out planned following delivery of usability improvements on Agile roadmap Actively deploying to address semiconductor process development activities

14. Benefit Summary

15. Securely manage intellectual property and provide convenient access and distribution to company-wide information. Product Data Repository

16. BOM/Recipe Redline capabilities clearly communicate changes across the product network and speed the approval process. Collaborate with Partners on Product Records

17. Resolve Quality Issues

18. Visually inspect product change progress and make intelligent approval decisions. ECO Approval

19. Analyze Key PLM Metrics

20. 1,300+ Enterprise PLM Customers

21. Demand Management

22. Demantra Value Summary Responsive to Demand Change Forecast Accuracy Forecast Accuracy Improvement Improvement Evolve to Real Time Sales and Operations Planning Centrally capture and consolidate demand data for different role’s analytical needs Automate collaboration through workflow, exception alert Superior Bayesian- Markov Analytics leverage built-in intelligence to automatically select which level’s data to use for forecasting Out-of-the-box integration for Oracle EBS, JDE E1 Configurable user interface replaces for individual spreadsheets while ensuring enterprise database access and security

23. Streamlines Demand Chain Management Process No. 3 in total PC, No. 2 for Notebooks, fastest growth among the top 5 players Project Goal  Standardize the forecasting tool & processes throughout the company  Improve forecast accuracy resulting in better inventory mgmt.  More powerful and faster analytics  Oracle EBS  Oracle Demantra Demand Management  Oracle Demantra Sales and Operations Planning  Oracle Demantra Advanced Forecasting and Demand Modeling Business Challenges: Solution: Global demand management All real time – daily bookings and shipments Where am I lagging or ahead of forecast? Country/Region/HQ collaborative worksheet and populate real time Saves hours / days of pulling data from multiple sources Key expectation to drive forecast accuracy Better Inventory Turns and increased Customer service / order fulfillment

24. Demand Driven Transformation Collaborative, Demand Driven, Responsive Supply Planning Disconnected Process Customer Sales FCST Time FCST Time Marketing FCST Time FCST Factory Time FCST Purchasing Bull Whip Effect Bull Whip Effect Slow Response Slow Response Collaborative Planning Process Consensus Demand/Supply Plan Customer Sales Marketing Purchasing Supply Plan Shipment History NPI Plan FCST Today Time Sales History Trend Seasonality Financial Targets Low forecast accuracy Departmental orientation to demand forecasting Misalignment between metrics and objectives Not tied to Sales and Operations Planning process Supply Plan

25. Global Forecasting and Consumption Postpone fulfillment decision of supply planning Check availability before specifying shipping location Allocate supply to customers Generic forecasts Forecast without reference to shipping facilities Consume forecast based on Product Demand type Country Customer ZoneCustomerCustomer SiteDemand ClassGlobal (Item) Global Forecast Organization 1 Organization 2Organization 3 Ship from locations Ship to Forecast distribution Consume forecasts with respect to ship to Region Increase flexibility for fulfillment decisions

26. PeriodMonth1Month2Month3 MonthJuneJulyAugust Range TargetSF <15%SF < 30%SF > 30% PeriodMonth1Month2Month3 MonthJulyAugustSept Range TargetSF < 15% SF > 30% PeriodMonth1Month2Month3 MonthAugustSeptOct Range TargetSF <10%SF < 30%SF > 30% SF=sales forecast Current time = May Improve Forecast Control Process

27. Reduce Planning Cycle time by Collaborative Workbench

28. Reduce Planning Cycle time by Collaborative Worksheet

29. Response to Demand Change 29

30. Review Supply Information 30

31. Sales and Operations Planning Dashboard Enable executive level S&OP analysis for demand, supply, inventory, and profit Compare alternate scenarios Analyze key Planning metrics Analyze profit and loss Analyze constrained forecast

32. Sales and Operations Planning Dashboard Complements Demantra Real-Time Sales and Operations Planning Provide S&OP information to key senior decision makers Executives require a self-service tool Executives require 360 degree view of supply, demand, inventory, and cost details Details from demand management Details from supply planning Details from inventory planning Details from strategic planning Power users can leverage direct link to Demantra RTS&OP to perform detailed activities Shape demand Simulate constrained forecast changes Promotion lift analysis Collect Sales and Marketing Input Base Demand Plan Demand Shaping What-if Demand Consensus Base Supply Plan Supply What-if Integrated Scenario Analysis Approve and Publish “The Plan” Enact and Measure “The Plan” Demantra DM ASCP/SNO APCC Dem RTS&OP

33. Trade Promotion Management

34. Demantra Value Summary Visibility Promotion Planning and Measurement Promotion Planning and Measurement Deduction and Settlement Automation Historical sales decomposition into baseline and lift based on different promotions and causal factors Accurately shape demand by simulating different promotion scenario based on historical data Post event cost benefit review for promotions by account All accounts aggregated according to sales hierarchy for continuous monitoring and promotion ROI measurement Out-of-the-box integration for Oracle EBS, JDE E1 Reduce administrative costs and ‘days outstanding’ of deductions

35. Increased forecast accuracy at SKU level by more than 10 points $5 million reduction in supply chain costs Over $1 million reduction in trade spending Enables trade promotion planning to be integrated with RT S&OP Improved HQ and sales planning productivity Welch’s Food Inc. Welch’s is the food processing and marketing arm of the National Grape Cooperative Association and is the world’s leading marketer of Concord and Niagara grape-based products. As with most consumer packaged goods manufacturers, Welch’s trade marketing budget is the second largest cost line item after cost of goods sold, and it is essential that Welch’s uses trade funds as efficiently and effectively as possible. “ With Demantra’s unique functionality, we can better integrate the planning, execution, management, and analysis of all of our trade promotions and marketing, for a holistic view of the effectiveness of our business plans. With this better understanding of demand across the board, we are better equipped to meet our customers’ needs. George Jackman Director of Demand Management & Planning Welch’s Business Results:  Promotion planning synchronized with demand planning  Consistent planning of $100M trade budget and tactics  Oracle Demantra Demand Management  Oracle Demantra Sales and Operations Planning  Oracle Demantra Advanced Forecasting and Demand Modeling  Oracle Demantra Trade Promotion Management  Oracle Demantra Predictive Trade Optimization Business Challenges: Solution:

36. Integrated Sales Management Process  Annual Planning  Promotion effectiveness  Monitor Consumer Promotion  Trend Analysis  Annual Planning  Promotion effectiveness  Monitor Consumer Promotion  Trend Analysis  Account Planning  Trade Funds Management  Customer P&L  Promotion Planning  What-if Scenario Planning  Deduction Settlement Mgt  Account Planning  Trade Funds Management  Customer P&L  Promotion Planning  What-if Scenario Planning  Deduction Settlement Mgt  Volume Planning  Demand Planning  Responsive Replenishment  CPFR/VMI  Volume Planning  Demand Planning  Responsive Replenishment  CPFR/VMI  Access and Analyze  POS, EDI  3rd Party Data  Access and Analyze  POS, EDI  3rd Party Data  Business Planning  Promotion Planning  Consumer Level Forecasting  Business Planning  Promotion Planning  Consumer Level Forecasting Strategic Brand and Category Planning Account Planning Trading Partner Collaboration Sales, Marketing & Operations Planning Demand Visibility Integrated Sales Management

37. Annual Planning (Volume, Revenue, Trade Expense) Account Management (Actual YTD & Projected) Account Planning (Volume, Revenue, Trade Expense) Demand Planning ISM System (Demantra) ERP System Promo Info Deduction Matching Process Sales Forecast Adjusted Forecast Master Data & Transactional Data Order Management Annual Budgeting Revenue Plan Volume Plan Expense Plan ISM Conceptual Overview Trade Tactics & Guidelines

38. Promotional Planning Flow Real-Time Sales & Operations Planning Executive Input & Approval Customer Account Planning Replenishment Planning Account Manager & Buyer Input Trade Promotion Management Demand Planning Trade Marketing & Demand Planning Input Promotion Modeling & Optimization Demand Management Marketing and Management Input Collaboration Consensus from Internal & External Inputs Trade Expense Information flows across the organization with full visibility and integration.

39. Historical data Bayesian Estimator Forecast Multiple causal factors Combined model Bayesian Optimizer Causal Analysis Outlier Detection Promotion Events Seasonality Cyclical Patterns Trend Demand = constant + A1*CF1 + A2*CF2 + A3*CF3 +... Improve Forecast Accuracy Designed for planners, not programmers (“PhD in a box”) Demand history and causal factors maintained at lowest level

40. Most forecasting and planning done on one worksheet Configurable by account manager Single Screen Sales and Account Planning

41. Shape Demand by promotional campaign 41

42. Trade Promotion Management 42

43. Complete promotion effectiveness history detailed by: Territory Retailer and customer Category Analytics run against Syndicated and/or your historical data Lift factors and other causal data automatically generated Key metrics Average lift, revenue, profitability Comprehensive ‘Post Event’ Analytics

44. Easy drill-down from summary level Drill-down to select promotion Smart filter proposes match based on ship date and available budget Comprehensive Drilldowns to Settlement Detail

45. sadsasdasdfadfasdfasd 45 Demantra Momentum Continues Industrial Manufacturing Medical Devices Retail / Wholesale Media and Entertainment Consumer Durables Consumer Goods High Technology

46. Transportation Management

47. OTM Value Summary Reduce Transportation Spending Customer Service Improvement Customer Service Improvement Inventory Management Improvement Freight consolidation and load optimization least cost route and carrier selection Improve freight contract negotiation ability by visibility to historical demand and delivery performance result Better planning capability through visibility to different shipment options, lead time, cost Customer portal for in-transit inventory inquiry Proactive alert for late shipment Reduce safety stock inventory level in supply chain through improved on-time delivery performance

48. GE Healthcare Molecular Diagnostics Information Technology Pharmaceutical Solutions Imaging and Intervention Design, manufacture, sell, and service medical equipment Global organization with distributed supply chain

49. Problem of its Supply Chain… Business ProblemSolutions Frequent use of premium transportation methods Constraint-based ship method selection Shipments lost in vast vertical supply chain Platform to integrate air, ocean and truck status Lack of visibility to contract rate leakage No capability to tie expected rate and actual invoice Shifting Job duty from Account to Logistics Department Flexible work flow engine to monitor supply chain operation

50. Project Scope Greatest source of premium transportation cost Pilot in China, France, US 600 to 1,000 orders per year/site Primarily Domestic Shipments Pilot with top 10 suppliers Integration with Supplier Extranet Touching customer and sites directly Specialized Carriers (van’s & installers) Phase 1 Internal to Internal Inbound from Suppliers Outbound to Customers Mfg. Distribution Customers External Suppliers Distribution External Suppliers Mfg. Phase 2 Phase 3

51. Phase 1 Benefit Summary Expedited air reduction Benefit Use preferred carriers with Negotiated rates Increase consolidation opportunities for ocean shipments Goal 95% reduction in expedited air shipments Initial Results 99% TBD Selection of least expensive ship method to meet delivery date 95% of recommended ship method accepted 15 – 20% reduction in per kilogram cost Optimize ship method of small & medium packages 10% of opportunities, but now have the visibility Eliminate 100% Compliance Maximize Container 99% Acceptance 100% Preferred

52. Shipments Planning View User configurable summary view of shipments Weight and volume utilization Transportati on Planning

53. Performance Dashboard

54. Copyright © 2008, Oracle and/or its affiliates. All rights reserved. 54 Inventory Management Analytics

55. Logistics Service Providers Manufacturing Distribution Retail

56. Agenda Oracle Positioning Solution Overview Design Demand Delivery Why Oracle Oracle Application Strategy

57. More Value Less Complexity More Flexibility Less Cost More Choice Less Risk Comprehensive Industry Portfolio Standards-Based Architecture Designed to Work Together CompleteOpenIntegrated Oracle’s Application Strategy

58. Applications Enterprise Manufacturing Industries Retail Comms Banking Insurance Utilities Others Comprehensive Product Portfolio Acquisition of Best-in-Class CompaniesEnterprise Performance Management Identity Management Content Management Middleware Management Database Systems Management Technology ~ $35 Billion in 45 Acquisitions

59. Open Standards Support Choice Grow and Expand Your Business Analogy: How do standards for container sizes enable shipping? Leverage Existing Investments Support heterogeneous environments Offer New Business Services Adopt innovative new services quickly Source at best value Do It For Less Use lower cost labor, resources

60. Unrivaled Leadership in Open Standards BEPL RBAC