Information Driven Value Chain Steve Gwizdala Value Chain Planning – Solutions Specialist

1. Information Driven Value ChainSteve GwizdalaValue Chain Planning – Solutions Specialist

2. What is Value Chain Planning? Enterprise-wide Business Planning that links: • Strategic and Tactical Decision Making • Design/Development with the Supply Chain • Financial Planning with Supply Chain Planning

3. Oracle Value Chain Planning Solution Complete, best-in-class e-business planning process platform Service Parts Planning Demand Signal Management Order Promising Demand Management Risk Management Plant Scheduling and Monitoring Performance Management Sales and Operations Planning Collaboration and Vendor Managed Inventory Trade Promotion Management • Single source of truth • Integrated with ERP • SOA enabled Supply and Distribution Planning

4. ADVANCED PLANNING Oracle Advanced Planning Solution Enables best-in-class processes that solve key planning problems BUSINESS PLANNING & PROCESS MGMT • Business planning scenario mgmt & automation • Business planning analysis dashboards SALES AND OPERATIONS PLANNING RISK MANAGEMENT • Balance demand, supply, budgets • Evaluate both strategic and tactical decisions • Design profitable supply chain • Mitigate risk for (un)planned events PROMOTION MANAGEMENT • Run most profitable promotions • Promotion lift analysis • Execute promotions via Siebel(1) DEMAND SIGNAL MGMT SENSE AND SHAPE DEMAND • Enables Retailer and Mfg-er collab. • Demand and market intelligence • Improve forecast accuracy thru better statistics • Continuous consensus planning process • New product introductions OPERATIONAL EXCELLENCE DISTRIBUTION AND SUPPLY PLANNING • Integrated supply chain execution • 24x7 order promising • Supplier collaboration and VMI • Integrated multi-method manufacturing execution • Manage internal and external repair orders, new buy parts, and part redistribution transfers • Plant level detailed scheduling • Rebalance inventory position at lowest cost • Multi-facility constrained replenishment planning • Distribution planning AFTERMARKET SERVICE PLANNING • Multi-echelon service supply chain • Simultaneous forecasting, replenishment, distrib. (1) Requires Oracle Siebel AIA Connector for Consumer Goods

5. ADVANCED PLANNING Oracle Advanced Planning Solution Enables best-in-class processes through best-in-class products BUSINESS PLANNING & PROCESS MGMT • Oracle Advanced Planning Command Center SALES AND OPERATIONS PLANNING RISK MANAGEMENT • Demantra Real-Time Sales & Operations Planning • Oracle Strategic Network Optimization • Oracle Strategic Network Opt. • Oracle Inventory Optimization PROMOTION MANAGEMENT • Demantra Predictive Trade Planning • Demantra Trade Promotion Opt. • Demantra Deduction & Settlement Management DEMAND SIGNAL MGMT SENSE AND SHAPE DEMAND • Oracle Demand Signal Repository • Demantra Demand Management • Demantra Advanced Forecasting and Demand Modeling OPERATIONAL EXCELLENCE DISTRIBUTION AND SUPPLY PLANNING • Oracle Global Order Promising • Oracle Collaborative Planning • Oracle Production Scheduling • Manufacturing Operations Center • Oracle Advanced Supply Chain Planning AFTERMARKET SERVICE PLANNING • Oracle Service Parts Planning

6. Oracle Strategic Network Optimization Consider all costs and constraints that impact the decisions Answering the tough questions: • How do I manage my supply chain risk more effectively? • What impact do changing costs have on my inventory, production and/or sourcing strategy? • Can I meet demand profitably? • Where should I hold how much inventory, when? • Should I close down a facility? • How could I react to a disruption in supply due to unforeseen events? • What are my most profitable channels or products to invest in? • What is the impact of mergers and acquisitions on my supply network and capital asset budget? • Capacity Constraints (Hard and Soft) • Supply constraints • Manufacturing constraints • Transportation constraints • Storage and inventory constraints • Target service levels • Dynamic safety stock • Costs ($): Variable and Fixed • Transportation (inbound, outbound) • Storage and inventory carrying costs • Fixed costs (startup, shutdown, operating) • Material supply • Manufacturing and labor • Price (for profit optimization)

7. CHANNEL DATA Oracle Demantra Demand Management Real-time demand sensing and collaborative consensus forecasting • Sense demand real-time • Sense demand more frequently, closer to the point of consumption • Capture demand and forecast at more granular level (store, shelf, attributes, product characteristics) • Achieve consensus demand number more quickly by involving all constituents at the same time, including customers • Quickly identify and react to demand changes and exceptions • Improve forecast accuracy • Leverage advanced statistics for more accurate demand number • Use any combination of quantitative or qualitative data to establish your base line forecast • High precision statistical forecasting, no statistical background required – Superior Bayesian-Markov forecast analytics • Forecast based on attributes and characteristics • Leverage Advanced Forecast Modeling for promotion lift decomposition and causal analysis • Shape demand for profitability • Plan new product introductions • Plan promotions and sales incentives • Identify cross selling opportunities • Evolve to real-time S&OP • Profitably balance supply, demand, and budgets Collaboration Workbench Marketing forecast Order history Customer sales Shipments Demand Hub and Seeded Worksheets

8. Supply Chain and Distribution Planning Product family and item level planning Alternate components, resources, processes, suppliers, facilities, and ship methods End-item substitution Critical items and resources; aggregate resources Bills of distribution and transfer rules Redistribution (circular sourcing), load consolidation, allocation rules Include customer and supplier facilities Manufacturing Planning Sequence dependent setups/changeovers Simultaneous resources Batch resources Alternate resources Minimum transfer quantities Complex, network routings By-products and co-products Line rates and take times Suppliers Transportation Manufacturing Transportation Distributors Transportation Customers Oracle Advanced Supply Chain PlanningHolistic Planning and Optimization providing one solutions for supply chain, distribution and manufacturing planning

9. Oracle Collaborative Planning Improve global visibility and react quickly to changes through collaboration with trading partners • Increase global visibility and reduce supply shortages • Multi-enterprise visibility • Monitor supplier performance • Implement vendor managed and consigned inventory • Provide value-add services as a competitive differentiator • Reduce inventory carrying costs through automation • Reduce planning cycle time through multi-enterprise planning • Collaborative supply planning • Comprehensive waterfall analysis • React quickly to supply chain exceptions • Seeded and user configurable exceptions • Fully integrated with Oracle E-Business Suite

10. Oracle Production Scheduling Maximize shop floor throughput and optimize resource utilization • Maximize throughput of bottleneck resources • Automatic detection of bottlenecks • Minimize setup with intelligent sequencing • Improve shop floor performance • Minimize the effect of unplanned downtime • Easy identification of issues • What-if rescheduling • Drag and drop • Quickly determine the best schedule • Fast easy simulation • Scenario comparison and key performance indicators • Implement quickly by leveraging out-of-the-box integration • Integrated manufacturing planning and scheduling • Fully integrated with Oracle E-Business Suite

11. Increases flexibility and reduce costs by moving inventory away from the customer to the point of postponement Accounts for demand, supply, and lead-time variability when determining the point of postponement and inventory levels Synchronizes inventory levels and policies across the supply chain Helps you move from a push model to a pull model Increases visibility to supplier and contract manufacturer inventory Oracle Inventory Optimization Respond quickly to demand, supply, and lead time fluctuations Old way Push Inventory Central DistributionCenters Regional Distribution Centers Contract Manufacturers Final Assembly Suppliers Customers Newway PostponeInventory

12. Oracle Service Parts Planning Manage both forward and reverse material flows • Simultaneously forecast, replenish and redistribute your service parts across your service supply chain • More accurately forecast your service parts • Demantra statistical forecasting engine inside for highest accuracy • Account for intermittent, seasonal, and fast moving demand patterns • Leverage composite forecasting (shipments, usages, returns) • Use service failure rates • Optimize the replenishment and redistribution of parts across the extended service network, integrated with Service Execution • Integrate with other Advanced Planning products for additional business processes • Manage spare parts at customer locations (via CP) • Manage service contract customer demand (via Dem DM) • Manage targeted service levels and budgets (via IO) • Produce parts in manufacturing facilities (via ASCP)

13. Get the right answers Self service, pre-built Rich content and KPIs Seamless integration with planning apps Forecasting Oracle Advanced Planning Command Center Business Insight for Supply Chain Executives Planning Analytics for Supply Chain Decision Makers Pre-Built Dashboards and Reports Analyze Analytical Data Plans and Archived Plans Analyze and compare scenarios and plans Business scenario planning • Decide which scenarios to plan • Compare baseline to alternative scenarios • Assign scenarios to planners for execution Scenario and Activity Management Plan Execute scenarios Archive plans Preconfigured Planning Processes Execute automated processes Planning process automation • Notify constituents of assigned activities • Link processes for manual or automated execution • Auto-archive plans Supply Planning Orchestrate Web Service enabled Planning Processes

14. Oracle Manufacturing Operations Center Contextualize Plant Floor Data and Synchronize with ERP • Consistent mfg information for all users • Convert equipment data into useful business info • Ensure rapid response to manufacturing issues Provide Real-Time Intelligence forPlant Operations • Deliver performance metrics & trends by role • Easily build dashboards to your unique needs • Identify performance improvement opportunities Leverage Next Generation Manufacturing Operations Architecture • Leverage existing plant IT infrastructure • Enable gradual upgrade of plant systems • Simplify IT support for your core mfg strategy The Foundation for Continuous Improvement in Manufacturing Operations

15. reduced ending level inventory from $200M to $50M, saving $8M annually by automating supply chain processes reduced monthly inventory levels for largest customer by over $1M per month and scenario analysis from days to 2 hours increased forecast accuracy from 50 to 85%, and reduced planning cycle time from 21 to 5 days improved on-time delivery to 98% improved inventory turns by 37% reduced order fill rate from 55% to 95%, increase inventory turns by 100%, reduced price protection claims by 40% reduced inventories by $350M, carriers from 200 to 12 yielded a $12 million reduction in average inventory, improved forecast accuracy from 35% to 73%, improved fill rate from 80 to 93% reduced order cycle time by 30%, raw material inventory by 17% increased service level by 12% for same inventory investment Sample customers achieving significant benefits 15

16. Many customers across all industries Discrete Manufacturing Process Manufacturing Consumer Goods / Distribution High Tech 16

17. Oracle Value Chain Planning Solution Predict market requirements and manage supply chain risk Sense demand closer to the point of consumption with real-time visibility to demand events Improve forecast accuracy through advanced analytics and improved consensus forecasting Predict impact of risk to your network by simulating planned and unplanned supply chain events Account for variability in your inventory positioning and postponement strategy Enables leading edge and transformational business processes MONITOR and MANAGE with Embedded Analytics • Shape demand for profitability • Drivedemand via promotions planning • Manage new product introductions and marketing to shape demand and maximize revenue • Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process • Align operational plans with corporate goals • Plan your extended value chain with holistic supply and distribution planning • Synchronize plans and actions across the extended enterprise • Improve supply chain visibility and align trading partners via collaboration • Transform your service operations from cost to profit centers 17

18. Questions