Oracle FastForward Flows For SCM - Analyst Briefing
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The document discusses Oracle's FastForward Flows for Supply Chain Management (SCM) which provides integrated SCM solutions and rapid implementation services. It describes how FastForward Flows can help companies lower costs, increase velocity, and drive revenue through closed-loop business processes that automate planning, procurement, manufacturing, and order fulfillment. Case studies show how companies implemented FastForward Flows for SCM like Order to Cash, Demand to Build, Forecast to Plan, and Procure to Pay in as little as 30 days to gain operational efficiencies and accelerate their digital transformations.
Oracle FastForward Flows For SCM - Analyst Briefing
- 1. Supply Chain Management FastForward Flows Don Klaiss Senior Vice President, Supply Chain Management Mark Israelsen Group Vice President, Global Consulting Service Lines
- 2. Traditional Supply Chain Raw Materials, Assemblies, Finished Goods Orders, Payments Quotes, Notifications, Invoices Supplier Component Distributor Customer Supplier Manufacturer Manufacturer / Retailer Supplier Information (forecasts, schedules, availability, inquiries…)
- 3. Supply Chain Management Goals Lower Costs – Reduce inventory, increase productivity Increase Velocity – Accelerate time-to-market and time-to-delivery – Enable real-time visibility across the supply chain Drive Revenue – Create more innovative and competitive products – Meet customer quality and delivery commitments
- 4. Supply Chain Management Opportunity Increase Forecast Accuracy 25-80% Productivity 30% Profit Margin 5-10% Reduce Inventory Carrying Cost 25-60% Order Fulfillment Time 30-50% Total Supply Chain Costs 25-50% Source: Pittiglio Rabin Todd & McGrath (PRTM)
- 5. SCM Opportunity with Oracle 11i Customers Suppliers Develop Sell Plan Collaborative Market Finance Assets Projects HR Procure Hub Subcontractors Service Manufacture Fulfill Distributors Carriers Automate All Processes Within Your Company Extend Automation Across Your Supply Chain
- 6. How Do You Get There Fast? Implement FastForward Flows for SCM, Not Point Solutions
- 7. What are FastForward Flows for SCM? Roadmap for Becoming an E-Business Integrated Supply Chain Management Solutions – Leading e-business practices for planning, procurement, manufacturing, order fulfillment Closed-Loop Business Processes – Extend automation internally and externally Rapid Implementation Services – Attractive for any size company
- 8. Why FastForward Flows for SCM? A Rapid Time-to-Benefit Opportunity Lower Costs – Simplified and standardized business processes Reduce Risk – Fixed-price, fixed-time, fixed-scope implementation Get There Fast – Up and running as fast as YOU can go
- 9. How Do You Get Started? It Depends…Where are you today? Oracle Non-Oracle Non-Oracle Customers Customer Customer With Financials, With limited With extensive Distribution, or legacy data and legacy data and Manufacturing applications applications - - - Get there in as Start with FFF for Start with few as 90 Days Financials move Foundation with FFF for SCM to FFF for SCM Services move to FFF for SCM
- 10. Solution Details
- 11. FastForward Flows for SCM Fulfill Order to Cash Manufacture Demand to Build Plan Forecast to Plan Procure Procure to Pay
- 12. Oracle Order to Cash Functional Overview Complete Business Flow Web Store Price Planning Configure Call Center Check Availability Purchasing Sales Tailorable, Capture Workflow Manufacturing Driven Schedule Service Process Financials Contract Invoice/ Release Payment Plan Warehouse/ Ship & Shipment Trans Mgmt XML/EDI Track Integrated Logistics Multi-Channel Demand Self-Service Order Tracking Carrier Management
- 13. FastForward Flow: Order to Cash Business Processes Capture Generate Inventory Orders from Manage Credit Customer Transactions Channels Invoices Enter Sales Manage Cycle Manage Holds Order Collections Counting Release for Apply Cash Physical Price Picking Receipts Inventory Process Order Pick and Ship Process Period Customer Promising Sales Orders Close Returns
- 14. FastForward Flow: Order to Cash Business Processes Receive, Production Accept or Requisitions Reject Material Procure to Pay Authorize Manage Supplier for Direct Requisition Invoice Materials Issue Generate Included in Purchase Payment Order FastForward Flow Order to Cash Authorize Purchase Close Period Order
- 15. FastForward Flow: Order to Cash Components Foundation Order to Cash Additional Capabilities Financials Order Management iStore Inventory Configurator Bill of Materials Advanced Pricing Global Order Promising Purchasing Shipping Warehouse Management Mobile Warehouse Apps Supply Chain Intelligence Start Here… Get There in as Few as 30 Days! Purchasing Intelligence
- 16. Empirix is a leading provider of integrated test and monitoring solutions for business-critical Web, voice, and network apps – Empirix delivers products, services and support to over 2,000 customers worldwide FastForward used to implement several components of the E-Business Suite Online – Financials, Order Management, Inventory, Purchasing in 87 days – Bills of Material, Work in Process, Engineering in 82 days Implemented in 87 days Automated the Order to Cash Business Flow
- 17. FastForward Flows for SCM Fulfill Order to Cash Manufacture Demand to Build Plan Forecast to Plan Procure Procure to Pay
- 18. Oracle Demand to Build Functional Overview Personalization, High Quality Demand Products Variability Sample Analyze Adjust Order Management Mixed Mixed Mode Mode Product Development Suppliers Discrete/ Repetitive/ Flow Planning Lob-based Lob- CTO Subcontractors ETO Purchasing / MTS Warehouse Mgmt Process Project Supply Efficient Partner Variability Manufacturing Collaboration
- 19. FastForward Flow: Demand to Build Business Processes – Discrete Manufacturing Create Release Generate and Complete Engineering Production Issue Forecast Work Orders BOM / Routing Schedule Move Estimate Issue Work Generate MPS Assemblies to Product Cost Orders Stock Create, Issue Material Define and Evaluate and Generate MRP to Update implement Work Orders Standard Cost ECO Release Perform Work Release to Period Close Procurement & Record Mfg. for WIP Schedule Operations
- 20. FastForward Flow: Demand to Build Components – Discrete Manufacturing Foundation Demand to Build Additional Capabilities Financials Engineering Product Dev Exchange Order to Cash Bill of Materials Manufacturing Scheduling MPS / MRP Shop Floor Management Capacity Quality Cost Management Mobile Supply Chain Apps Work in Progress Manufacturing Intelligence Start Here… Get There in as Few as 50 Days!
- 21. FastForward Flow: Demand to Build Business Processes – Process Manufacturing Develop Release Set, Confirm Complete Product Procurement Product Costs Batch Specifications Schedule Release Develop Generate and Production Inspect Goods Formulae Issue Forecast Batches Run Material Develop Process Batch and Capacity Close Batch Routings Orders Plan (APS) Assemble Update Actual Recipe and Update MPS Inspect Goods Costs / Update Validity Rules Subledger
- 22. FastForward Flow: Demand to Build Components – Process Manufacturing Foundation Demand to Build Additional Capabilities Financials Product Development Configurator Order to Cash Formula Management Product Dev Exchange Production Planning Advanced Planning Production Execution Laboratory Management Cost Management Manufacturing Scheduling Quality Manufacturing Intelligence Start Here… Get There in as Few as 50 Days!
- 23. Agility Communications is a fiber optics component manufacturer – Agility is the first and currently only tunable laser company to ship production quantities to multiple customers and the first to ship samples to more than 30 customers Multi-site implementation of Manufacturing, Shop Floor Manufacturing, Inventory, Order Management, Financials Implemented Demand to Build in 31 days, Ahead of Schedule Increased Operational Efficiencies
- 24. FastForward Flows for SCM Fulfill Order to Cash Manufacture Demand to Build Plan Forecast to Plan Procure Procure to Pay
- 25. Oracle Forecast to Plan Functional Overview Customer Forecast Supplier Capacity Tier 2 Tier 1 Portal Portal Process Marketing Single Plan Automation Forecast Sales Forecast Consensus Mfg. Forecast t = hours Forecast
- 26. FastForward Flow: Forecast to Plan Business Processes Develop Revise and Planning Consume Adjust Plan Models Forecasts Establish Simulate Plan Collect Planning with Planning Data Procedures Constraints Collect Run Implement Historical Production Revised Sales Data Plan Constraints Generate and Analyze Plan Release Review Exception Production Forecasts Messages Schedule
- 27. FastForward Flow: Forecast to Plan Components Foundation Forecast to Plan Additional Capabilities Financials Demand Planning Inventory Optimization Order to Cash Advanced SC Planning Global Order Promising Demand to Build* Constraint Based Optimization Manufacturing Scheduling Supply Chain Exchange Supply Chain Intelligence Start Here… Get There in as Few as 40 Days! *Foundation Demand to Build required for Manufacturers Only, Distributors only need Financials and Order to Cash
- 28. FastForward Flows for SCM Fulfill Order to Cash Manufacture Demand to Build Plan Forecast to Plan Procure Procure to Pay
- 29. Oracle Procure to Pay Functional Overview Collaboration RFx Quotes Portal Auction Bids Suppliers Self-Service Self- Requisitions Offers Counters Indirect / Contracts Orders Services / Catalogs Changes Sourcing Ship Notices Invoices Approval Production Purchase Messaging: Requirements Order XML / EDI Receipt Maintenance Process Payment / EFT/Check Banks Requests Automation Reconciliation Statement Direct Spend Procurement Supplier Integrated Intelligence Analysis Productivity Performance
- 30. FastForward Flow: Indirect Procure to Pay Business Processes Perform Authorize Manage Accounts Purchase Requisitions Payable Period Orders Close Perform Authorize Receive Goods Purchasing Requisitions & Services Period Close Issue a Manage Import Purchase Supplier Sub-ledger Sub- Order Invoices Journal Entries Change a Generate Purchase Close Period Checks Order
- 31. FastForward Flow: Procure to Pay Components Foundation Procure to Pay Additional Capabilities None iProcurement iSupplier Portal Purchasing Exchange Marketplace Payables Sourcing Purchasing Intelligence Start Here… Get There in as Few as 45 Days!
- 32. Classmates is a personal networking service connecting over 25 million friends, family, and military colleagues – Consistently ranked in the top 25 web properties by Nielsen/NetRatings – 80,000 to 100,000 new members added each day FastForward used to implement Purchasing and Financials as an online service – Customer went live in just 60 days – Applications are maintained by Oracle Implementation completed 30 days ahead of schedule Automated the Procure to Pay Business Flow
- 33. Deployment and Maintenance Options Our Place: Hosted Environment – Immediate project start-up – 24 hour continuous delivery – Available as an Online Service via a web browser – Online maintenance Your Place: Traditional, Local Environment – Onsite consultants – Onsite hardware and software – Onsite or Online maintenance
- 34. Momentum
- 35. More than 500 FastForward Customers
- 36. Partial FastForward Customer List Akamai Technologies McData Agility Modo Eyewear Blue Nile Myriad Genetics Celox NetZero.com Classmates Online OnSite RX Empirix Realty One Equator Technologies Retek Inc. Franke USA Holdings, Inc Serta Frontier Airlines, Inc. Sipex
- 37. FastForward enabled us to go live in 75 days -- on time and on budget. With the Oracle E-Business Suite we increased our sales volumes by 200% with no additional staff. Darrel Cavens Chief Technology Officer, Blue Nile
- 38. Summary
- 39. FastForward Flows for SCM Closed Loop, Modular Business Processes Leverage Leading E-Business Practices Reduce Cost and Risk Rapid Time to Benefit
Editor's Notes
- #3: Key activities within the supply chain are actually managed as business process flows. The plumbing that seamlessly manages this capability is the single, common schema and collaborative platform. I2 and the others will tell you that they can do all these activities, but can they support the business flows? No, not without an integrated platform.
- #4: In the new integrated supply chain, achieving these goals means mastering new skills…as noted in the slide.
- #5: If you make these changes, the benefits are significant...
- #6: So, to summarize, the internet has re-defined the operation of the supply chain. To compete and survive, every company needs a plan to become an e-Business.
- #7: Oracle Consulting, working with development, developed FastForward Flows allowing our customers to implement Supply Chain Business Flows quickly. Business Flows cross organizational and application boundaries in every organization. FastForward Flows allow you to implement our software to address common business processes from end to end rather than implementing point solutions that must be pieced together. The FastForward Flows provide an incremental approach for implementing the E-Business Suite and we have found that customers prefer to implement in phases. We’re pleased to announce 4 new Consulting offerings that allow customers to address Supply Chain Management right away
- #8: For this slide, emphasize yellow phrases as they answer the question. The White phrases support the points, but are not necessary to mention. FastForward Flows for SCM provide you with a roadmap for building your E-Business. Fast Forward Flows provide: Integrated SCM Solutions Closed Loop Business Processes Rapid Implementation This new approach allows us to move upmarket because it provides a solution that is appropriate for all companies.
- #9: The benefits our customers experience: Lower Cost - Drive efficiency through entire business operations by avoiding customization Predetermined implementations means better control over IT Costs Reduced Risk - Predictable implementations Reduced complexity Faster implementations FastForward Flows can be implemented in as few as 90 days Allows customers to realize ROI more quickly
- #10: Oracle Consulting provides services that allow companies to start building a solid foundation right away - regardless of whether they are new or existing customers. Our foundation services include: Strategic services such as E-Business Planning Session and Executive Workshops allow companies to evaluate and develop their E-Business Strategy. Tactical services include detailed topics such as: Chart of Accounts Workshop ( to set up Chart of Account segments and codes) Trading Community Architecture Workshop - (guidance for setup of prospect and customer data in a trading community model ) Multi-Org Workshop (review and application of leading practices to define the organizational structures and relationships of an enterprise within Oracle Applications)
- #11: Now for an overview of the new solutions….
- #12: We are happy to announce four FastForward Flow offerings critical to Supply Chain Management. They are: Order to Cash Demand to Build Forecast to Plan Procure to Pay
- #13: The Oracle Order Management solution incorporates: Multi-Channel Demand Complete Business Flow Tailorable, Workflow Driven Process Self-Service Integrated Logistics
- #14: First, we have Order to Cash. Walk through a few of the steps in the process or give a high-level example. Companies need to collect orders, invoice customers and ultimately collect cash. The Order to Cash flow will allow them to address the steps listed here... (Do not try to go through every step.)
- #15: Please note that Procure to Pay for Direct Materials is included in this flow.
- #16: Don Klaiss will jump in here.
- #17: Reference support for “Automated the Order to Cash Business Flow” pulled from customer success story on Oracle.com: The result was that Empirix met its target date and was running on all applications targeted for Phase 1 on January 1, 2001. The applications included General Ledger, Accounts Payable, Accounts Receivable, Order Management, Cash Management, Purchasing, Inventory, Human Resources Management System (HRMS), and Advanced Benefits. Empirix was now able to operate as an entity fully independent from Teradyne; that is, it could hire employees; order materials; book, ship, and invoice orders; pay suppliers; create financial statements; and otherwise operate on its own. Mark Key points: Empirix adopted our business processes. They implemented in 87 days AND Automated the Order to Cash process
- #18: Next, we have Demand to Build Pause
- #19: The Oracle Manufacturing solution incorporates: Efficient Manufacturing to address Personalization, Demand Variability and Supply Variability High Quality Production Partner Collaboration
- #20: Again - Here are the steps included in the process Mention a few of the steps
- #21: Starting w/ a Foundation, customers can implementDemand to Build I as little as 50 days. Given the power of Oracle applications, additional capabilities can be added at the customer’s request.
- #24: Key points: OC utilized a flow-based approach Implemented Demand to Build in 31 days - File notes: This customer is a Demand to Build - Discrete reference. I’ve highlighted 4 points that I believe are relevant. I can pursue hard facts from Hugh and Chris - please advise as to potential wording of facts From Consulting HealthCheck Report (not a marketing document) prepared by Hugh Scher; Project Manager is Chris Dixon: Goals: establish the fundamental technology and business applications infrastructure; optimize resource utilization through technology; provide flexible scalability for future growth; integrate the value chain; enable a smooth transition to eCommerce for future Business-to-Business transactions; facilitate the company's transition to a global eCommerce company fully-automate the manufacturing plant Implemented Manufacturing solution in approx. 54days (under 3 months) and 12 days under schedule Addressed disparate software tools and systems and provided an easy and cost effective ability to scale the enterprise in the future.
- #25: Next we will outline the FastForward Flow for Forecast to Plan. Pause
- #26: Oracle provides a collaborative, holistic, e-business planning process that allows you to include all of your trading partners in the planning process, reduce the number of steps in the planning process, and dramatically reduce the cycle time of the planning process
- #27: The business process allows customers to start with the Develop Planning Models step and end with the Release Production Schdule step.
- #28: Customers that Start with the Foundation that includes: Financials Order to Cash or Demand to Build can implement Forecast to Plan in as little as 40 days. Again, at customer request, we can implement additional capabilities.
- #29: Finally, the Procure to Pay FastFOrward Flow.
- #30: The Oracle Procurement solution incorporates: Process Automation across the entire procure-to-pay business flow for both indirect procurement (including services) and direct procurement Sourcing new products via RFx, auctions, quotes, bids, and counterbids Collaboration with Suppliers Integrated Intelligence captures all transactions and provides information regarding spend analysis, procurement productivity and supplier performance.
- #33: Key points: Automated Procure to Pay Business Flow Completed Implementation 30 days ahead of schedule Other file notes: Added Nielsen ranking above From Press Release: The purchasing module issues all purchase orders for the company's business partners, providing Classmates' accounting staff with one source for desktop procedures. (This could be an “Automated the Procure to Pay Business Flow” fact) Implementation completed 30 days under schedule Couldn’t dig up much more. I’ll start “smiling and dialing” on Monday.
- #34: Customers have the option to have Oracle implement, host and maintain the application at Oracle or to choose to have Oracle implement at the customer site and take over maintenance of the application.
- #37: A few of our customers who have benefited from our rapid implementation approach. (Do not read throught the names.)
- #38: One customer, Blue Nile, was able to increase sales by 200% without increasing their staffing levels. They realized a major increase in productivity with the E-Business Suite.