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Today's interconnected, complex, and fast-moving world economy is forcing companies to reexamine what is required to run a competitive supply chain. Value chains are more global than ever before, competition is everywhere, and being able to communicate much faster about supply chain issues has become more important for everyone. The Gartner research in this newsletter, details the complexity of global supply chain planning, and the need for all organizations to improve their Sales and Operations Planning, including better visibility, demand planning, and supply planning.

Oracle offers a fully integrated and complete solution of eighteen Value Chain Planning products covering a complete spectrum of planning capabilities and enabling an industry-leading comprehensive Sales and Operations Planning solution. Read more

Roger Goossens
Vice President Supply Chain Management
Oracle


Key Challenges

  • It is often difficult to know when to expand to a global S&OP process. Complexity increases as companies transition from a totally local or regional operational footprint to begin sourcing globally. The complexity continues to grow when the make and deliver processes expand globally. As the operational footprint expands, the planning processes also need to expand.
  • Creating a balance between local and global requirements is not always easy. Successful global processes are created after, first, understanding the current global organizational structure and interactions, and then, designing the layered global sales and operations planning (S&OP) structure so that it facilitates effective business trade-offs for each level and part of the organization.
  • Companies often find it challenging to know when they are on the path to a successful global S&OP implementation. S&OP process facilitators will know when they get active pull from the organization to bring important decisions into S&OP and when the business sees the return in the financial and operational metrics.

Recommendations

Supply chain and S&OP leaders:

  • Assess your current process and how it supports profitable decision making globally.
  • Standardize the S&OP template, but tailor the design and the dialogue to the business needs — locally, regionally and globally.
  • Resource the global implementation appropriately, and allow time to progress through the change curve.
  • Use standardized metrics with defined goals that are reviewed on a regular cadence to help steer and navigate the process.

Oracle Value Chain Planning

  • Oracle Value Chain Planning delivers world-class Sales and Operations Planning
  • The Oracle Value Chain Planning solution provide organizations with the insight and tools needed to move beyond Sales and Operations Planning, to Integrated Business Planning (IBP), aligning global operations, and achieving profitable revenue growth through a range of best-in-class processes.

  • The strategic difference: Oracle Integrated Business Planning includes tools to consider supply chain risk management and postponement strategies in planning decisions.

    The tactical difference: today's rapidly changing supply chain conditions require improved visibility at a global level paired with the ability to perform rapid what-if analysis with diagnostic analytics. Oracle delivers with tactical event-driven simulation with embedded business metrics.

    Deliver promised financial performance: while a good S&OP process insures that operations are synchronized and proceeding smoothly, this is of limited value to senior managers unless those operations are achieving the strategic and financial goals of the enterprise. Oracle Integrated Business Planning ties financial strategic budgeting together with operations planning to insure that promised results are achieved.
  • Oracle Planning Applications Yield the Best Results
    • Leggett and Platt improved EBIT Margins by 51%, and generated over $2 B in cash from operations and divestitures
    • Plantronics: reduced inventory by 60% moving inventory turns from 2.5 to 5.6
    • Cisco reduced Inventory Days of supply by 20%
    • VTech improved order fill rate from 55% to 95%, increased inventory turns by 100%, and reduced price protection claims by 40%