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John Bermudez, Group Vice President Application Strategies

John Bermudez, Group Vice President Application Strategies. ERP or APS: What It’s Going To Be The Supply Chain Backbone. John Bermudez -- Vice President, Enterprise & Supply Chain Research AMR Research 2 Oliver Street Boston, MA 02109 617-574-5111. About AMR Research. Founded in 1986

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John Bermudez, Group Vice President Application Strategies

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  1. John Bermudez, Group Vice PresidentApplication Strategies ERP or APS: What It’s Going To Be The Supply Chain Backbone John Bermudez -- Vice President, Enterprise & Supply Chain Research AMR Research 2 Oliver Street Boston, MA 02109 617-574-5111

  2. About AMR Research • Founded in 1986 • Focus Exclusively on Enterprise Applications and Infrastructure • More Than 700 Clients • Evaluation / Selection / Negotiation • $2B in software selections in 1998 • Co-Founded Supply Chain Council • http://www.supply-chain.com • http://www.AMRResearch.com

  3. ATP Product Configuration Web Storefront Sales Force Automation Order Management Demand Planning Supply Chain Planning Inventory Purchasing Accounting Supply Chain Collaboration Production Scheduling Shipment Scheduling Factory Planning Warehouse Management ERP The Supply Chain Backbone Supply Chain Monitoring and Control Transportation Planning Common Data Warehouse

  4. Customer Supplier Operations Management Buyer Logistics Procurement Manufacturing Sales Logistics Merchandising Management Customer Supplier Buyer Sales Merchandising Procurement Operations Manufacturing Logistics Logistics Management Management Business Process Integration

  5. Business Drivers • Customers are more demanding • Supply chain complexity will increase • Customer/Consumer direct • More specialists and outsourcing • Virtual companies • Master of the supply chain is a master of the universe • Pro-active VMI • Consumer direct • Automotive modular assembly • Make-to-order • Technology breeding opportunity and threats

  6. Suppliers Suppliers Suppliers Suppliers Suppliers Suppliers Retailers Retailers Consumers Consumers Consumers Distribution Center Distribution Center Distribution Center Distribution Center Mfg Plant Mfg Plant Consumer Goods Supply Chain Co-Packer

  7. Manufacturing Plant Manufacturing Plant Suppliers Suppliers Component Suppliers PCB Assemblers Semiconductor Suppliers Valued-Added Distributor Retailers Customers Customers Customers Distribution Center Distribution Center Subcontract Manufacturer Electronics Supply Chain

  8. Manufacturing Plant Manufacturing Plant Suppliers Suppliers Component Suppliers PCB Assemblers Semiconductor Suppliers Valued-Added Distributor Customers Customers Customers Retailers Distribution Center Distribution Center Subcontract Manufacturer The Supply Chain Challenge Corporate Headquarters PeopleSoft Oracle SAP MAPICS Hyperion Siebel Sterling Trilogy Promis Tecsys SAP i2 EXE JD Edwards Baan Manugistics Extricity SAP MK-MANMAN SSA Harbinger Optum QAD E3

  9. Systems Challenges • Interconnect vast mix of systems • Support existing and new supply chain • Are re-configurable to meet needs for continuous change and improvement • Optimize the resources of the enterprise to meet demand • Allow consolidation of customer orders across autonomous units • Leverage technology to the best competitive advantage • Top down and bottom up planning

  10. ATP Product Configuration Web Storefront Sales Force Automation Order Management Demand Planning Supply Chain Planning Inventory Purchasing Accounting Supply Chain Collaboration Production Scheduling Shipment Scheduling Factory Planning Warehouse Management ERP The Supply Chain Backbone Supply Chain Monitoring and Control Transportation Planning Common Data Warehouse

  11. Corporate Headquarters PeopleSoft Factory Planning Warehouse Management Product Configuration Sales Force Automation ATP Order Management Oracle SAP MAPICS Hyperion Siebel Sterling Trilogy Promis Manufacturing Plant Manufacturing Plant Suppliers Valued-Added Distributor Semiconductor Suppliers Component Suppliers Suppliers PCB Assemblers Customers Customers Demand Planning Supply Chain Planning Retailers Customers Tecsys SAP i2 EXE JD Edwards Baan Manugistics Extricity SAP MK-MANMAN Distribution Center Distribution Center SSA Supply Chain Collaboration Harbinger Subcontract Manufacturer Optum QAD E3 Supply Chain Backbone Vision

  12. Factory Planning Warehouse Management Product Configuration Sales Force Automation ATP Order Management Manufacturing Plant Manufacturing Plant Suppliers Suppliers Valued-Added Distributor Semiconductor Suppliers PCB Assemblers Component Suppliers Supply Chain Planning Demand Planning Customers Customers Retailers Customers Distribution Center Distribution Center Supply Chain Collaboration Subcontract Manufacturer The Supply Chain Backbone Reality Corporate Headquarters PeopleSoft Oracle SAP MAPICS Hyperion Siebel Sterling Trilogy Promis Tecsys SAP i2 EXE JD Edwards Baan Manugistics Extricity SAP MK-MANMAN SSA Harbinger Optum QAD E3

  13. The Supply Chain Backbone • High Return On Investment Applications • Supply chain planning and optimization • Available to promise (ATP) • Supply chain collaboration • Transportation planning • Product configuration • Order management • Warehouse management

  14. As Worlds Collide? Supply Chain Execution ERP Supply Chain Planning

  15. As Worlds Collide • Convergence of many software vendors: • Supply chain planning • Supply chain execution • Order management • ERP • Middleware • Each group claims unique value proposition

  16. Manufacturing Plant Manufacturing Plant Suppliers Suppliers Component Suppliers PCB Assemblers Semiconductor Suppliers Valued-Added Distributor Customers Customers Customers Retailers Distribution Center Distribution Center Subcontract Manufacturer The ERP Approach Corporate Headquarters PeopleSoft Oracle SAP MAPICS Hyperion Siebel Sterling Trilogy Promis Tecsys SAP i2 EXE JD Edwards Baan Manugistics Extricity SAP MK-MANMAN SSA Harbinger Optum QAD E3

  17. ATP Product Configuration Web Storefront Sales Force Automation Order Management Demand Planning Supply Chain Planning Inventory Purchasing Accounting Supply Chain Collaboration Production Scheduling Shipment Scheduling Factory Planning Warehouse Management ERP Supply Chain Planning Approach Supply Chain Monitoring and Control Transportation Planning Common Data Warehouse

  18. Where Do We Go From Here? • Does supply chain backbone concept survive? • If so, who wins & where do I invest my IT dollars? • Does SAP wipe out other supply chain management providers? • Does supply chain planning & execution vendors merge? • Will there be a $1B supply chain vendor?

  19. ATP Product Configuration Web Storefront Sales Force Automation Order Management Demand Planning Supply Chain Planning Inventory Purchasing Accounting Supply Chain Collaboration Production Scheduling Shipment Scheduling Factory Planning Warehouse Management ERP Supply Chain Execution Approach Supply Chain Monitoring and Control Transportation Planning Common Data Warehouse

  20. Where Do We Go From Here? • Does supply chain backbone concept survive? • If so, who wins & where do I invest my IT dollars? • Does SAP wipe out other supply chain management providers? • Does supply chain planning & execution vendors merge? • Will there be a $1B supply chain vendor?

  21. ATP Product Configuration Web Storefront Supply Chain Planning Order Management Demand Planning Sales Force Automation Inventory Purchasing Accounting Supply Chain Collaboration Factory Planning ERP Shipment Scheduling Production Scheduling Warehouse Management Does Supply Chain Backbone Concept Survive? • Yes • e-Business is key driver • Driven customer dynamics • Need to steer supply chain processes • Improvements needed • Bottom up planning • Incorporate the Internet Supply Chain Monitoring and Control Transportation Planning Common Data Warehouse

  22. Manufacturing Plant Manufacturing Plant Suppliers Suppliers Component Suppliers PCB Assemblers Semiconductor Suppliers Valued-Added Distributor Customers Customers Retailers Customers Distribution Center Distribution Center Subcontract Manufacturer If So, Who Wins & Where Do I Invest My IT Dollars? • Highly fragmented • SCP vendor provide steering • SCE & ERP provide engine • Invest in what you can use now • Its gets better next year Corporate Headquarters PeopleSoft Oracle SAP MAPICS Hyperion Siebel Sterling Trilogy Promis Tecsys SAP i2 EXE JD Edwards Baan Manugistics Extricity SAP MK-MANMAN SSA Harbinger McHugh Optum QAD E3

  23. Manufacturing Plant Manufacturing Plant Suppliers Suppliers Component Suppliers PCB Assemblers Semiconductor Suppliers Valued-Added Distributor Retailers Customers Customers Customers Distribution Center Distribution Center Subcontract Manufacturer Does SAP Wipe Out Other Supply Chain Management Providers? • SAP SCOPE is here to stay • Supply chain is bigger than SAP • BAPI connected R/3 is not the answer • SCP moves from enterprise to supply chain • SAP expands market? Corporate Headquarters SAP SAP SAP BAPIs SAP SAP SAP SAP BAPIs SAP SAP SAP SAP SAP SAP

  24. ATP Product Configuration Sales Force Automation Supply Chain Planning Order Management Web Storefront Demand Planning Inventory Purchasing Accounting Supply Chain Collaboration Production Scheduling Shipment Scheduling Factory Planning Warehouse Management ERP Does Supply Chain Planning & Execution Vendors Merge? • Yes • Market opportunities will drive merger activity • Users view real-time planning and execution is one requirement Supply Chain Monitoring and Control Transportation Planning Common Data Warehouse

  25. ATP Product Configuration Sales Force Automation Supply Chain Planning Order Management Web Storefront Demand Planning Inventory Purchasing Accounting Supply Chain Collaboration Production Scheduling Shipment Scheduling Factory Planning Warehouse Management ERP Will There Be a $1B Supply Chain Vendor? • The market potential is enormous • Current potential very low • Gloves are off • ???????????????????????? Supply Chain Monitoring and Control Transportation Planning Common Data Warehouse

  26. What’s Next? • Internet changes everything • e-Business is key driver • Support for supply chain processes beyond the enterprise • Supply chain collaboration blends with E-commerce • More mergers and acquisitions • Supply chain planning and execution continue to blend • Buy only what you can implement now Next year everything will be better

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