Oracle Supply Chain Analytics Inventory & Supplier Performance Demo Script

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1 Oracle Supply Chain Analytics Inventory & Supplier Performance Demo Script Last Updated: June 08, 2006 Oracle Systems, Inc. 1

2 Overview This demo illustrates how Oracle Supply Chain Analytics can provide important insight into the performance of key areas such as Inventory, Sourcing, Spend and Supplier Performance. The insight gained from these analyses can be transformed into strategic decisions and actions that can lead to improved operational performance and profitable results. This demo is built around an enterprise called PCS Computing. PCS Computing is a large computer hardware company that rose to market leadership based on its leading edge technology. Recently the company has noticed a backlog issue with its hot new laptop not shipping to customers on time, and thus delaying the company s ability to recognize revenue. We pick up the demo scenario where the Supply Chain Operations Manager Sheridan Chase examines the inventory status of laptop items, and to determine the quickest way to build up supplies for the laptop items to help address the backlog issue. In this demo flow, you will be able to seamlessly explore business issues that extend into areas of Enterprise Sales as well as Human Resources Performance and Retention, thereby illustrating the ability of Oracle Business Analytics to bring together data from disparate source systems. Say / Show This Do This Oracle Systems, Inc. 2

3 1 Sign on as user SCHASE / SCHASE Oracle Systems, Inc. 3

4 2 Select dashboard: > Supply Chain > Inventory > Overview Review Inventory Snapshot Available report. The Supply Chain Operations Manager has just received a call from Sales that they are having trouble fulfilling demands for the notebook product line. So the Manager brings up the Inventory Overview page to begin researching the issue. Oracle Systems, Inc. 4

5 The information provided in the Inventory Snapshot Available report enables the Inventory Manager to make 2 important observations: 1. Envoy Deluxe Laptop product has only 500 available units, and has hit the Safety Stock level and needs replenishment. But a large amount of this product is currently held up in Inspection at the Galway plant. 2. In the same report, however, the Manager notices that excess inventory has accumulated for another product, Envoy Standard Laptop. If the Manager can get this quantity to move through Inspection quickly, then it can help address the fulfillment issue. The Manager wants to find out the cause of the Inspection bottleneck at Galway. 5 Click on the guided navigation link called "Trends" (located on the far right just above the reports). 6 To investigate whether Galway Plant's Inspection bottleneck issue is related to labor, material or capacity, the Oracle Systems, Inc. 5

6 SC Operations Manager first brings up the Galway HR Performance dashboard to analyze labor related information. In the Headcount Trend chart, the Manager observes that Headcount has dropped significantly, while Voluntary Terminations have increased. 7 Click on the guided navigation link called "Trends" (located below the Employee Expense Trend chart). In the Employee Expense Trend chart, the Manager observes a sharp increase in Overtime expense amount. These observations combine to indicate that the Galway plant is well under staffed. The Manager needs to determine the reasons that contribute to the decrease in staff level. Oracle Systems, Inc. 6

7 8 In the Turnover Trends chart, the SC Operations Manager sees a rising trend in voluntary termination in the most recent quarter. The Manager drills down further to get more termination details. Oracle Systems, Inc. 7

8 9 Drill by clicking on the last month (2005/03) in the Turnover Trends graph (point the mouse cursor close to the right edge of the graph and click). 10 Click on the Normal Retirement bar in the Termination Detail graph to drill further into a detail list of terminated employees. Oracle Systems, Inc. 8

9 11 Optional: Click on Employee Location Name column label to sort by location. Scroll down the page to see Galway plant and QA Inspectors. This detail Termination List report reveals that there is a large number of QA Inspectors who retired within the recent quarter. This explains why the Galway inspection center is so understaffed currently. With the insight gained through Oracle Supply Chain Analytics, the SC Operations Manager can take immediate actions by working with HR to bring back some of the retirees on contract basis, and to kick off a recruiting campaign to hire new qualified inspectors. The Manager can also respond to Sales that customer orders can be fulfilled. 12 With the fulfillment issue addressed, the SC Operations Manager prepares to investigate the other issue of excess Envoy Standard Laptop product. In this second portion of the demo flow, you will be showing Inventory, Sourcing and Supplier Performance Analyses within Oracle Supply Chain Analytics. In addition, you will be exploring business issues in Enterprise Sales and Finance, and reinforcing the message that Oracle Business Analytics can seamlessly bring together data from disparate source systems. Say / Show This Do This Oracle Systems, Inc. 9

10 13 Select dashboard: > Supply Chain > Inventory > Overview The SC Operations Manager sees that there is a large supply of Envoy Standard Laptop product (while backlog for this item was relatively low, as seen earlier in the Sales Backlog dashboard). He knows that a similar product, Envoy Deluxe Laptop, is a popular-selling item. If the Envoy Standard Laptop can be upgraded to be comparable to the Deluxe Laptop, then a promotional campaign can help to build demand for the Standard Laptop, and thus reducing the inventory level. The Operations Manager will begin by analyzing the difference in product makeup between the Deluxe and Standard laptops. 14 Select the guided navigation link called " Bill of Materials". Oracle Systems, Inc. 10

11 In the Finished Goods Bill of Material report, the SC Operations Manager sees that the only difference between the Deluxe and Standard laptops is the Wireless PCI Adapter. The Manager recalls that the Wireless PCI Adapter feature was cited by Electronics Weekly when it awarded the Envoy Deluxe Laptop its Product of the Year recognition. The Manager wants to recommend a sales promotion that would offer a free wireless PCI Adapter card with the Standard Laptop. This would build demand for the product, and move inventory through warehouse locations. The Manager will need to assess current inventory to ensure there is sufficient supply of the Wireless PCI Adapter item. Oracle Systems, Inc. 11

12 15 Select the guided navigation link called "Component Inventory by Product Type and Storage Location". The SC Operations Manager sees that currently there is very low supply (50 units) of the Wireless Card item. The Manager would need to expedite existing Purchase Orders and/or issue new purchases of the Wireless Card item in order to have sufficient supply to upgrade the existing Standard Laptops. The Manager next checks the committed purchase orders for the Wireless Card item. Oracle Systems, Inc. 12

13 16 Click on Return link at the bottom of the page. 17 Select the guided navigation link called "Committed Spend by Product / Supplier". Oracle Systems, Inc. 13

14 In the Committed Spend by Product/Supplier report, the SC Operations Manager sees that there are two open purchase orders for the Wireless PCI Adapter item sourcing from two different suppliers. Supplier D-Link has a higher price for the item, but can deliver with shorter lead time. Supplier Dell Inc offers a slightly better price, but has a longer lead time. The Manager wants to know which supplier has a better overall performance before selecting the order to be expedited. The Supply Chain Operations Manager will use the Supplier Performance dashboard to evaluate the suppliers. 18 Click on the Return link at the bottom of the report. Oracle Systems, Inc. 14

15 19 Select the guided navigation link called "Overview " to launch the Supplier Performance dashboard. The Supplier Scorecard shows that supplier D-Link has the best overall performance and has a 4-Star ranking. Supplier Dell Inc ranks lower across all measure categories. So, D-Link is the clear choice for the Supply Chain Operations Manager. Before moving ahead to expedite the purchase order, the SC Operations Manager wants to know the payment history with this supplier. Oracle Systems, Inc. 15

16 20 Click on the supplier name D- Link within the Supplier Scorecard to see Supplier Payables for this supplier. 21 Oracle Systems, Inc. 16

17 In looking across the charts, the SC Operations Manager sees that payments are being made to supplier D- Link, but there are overdue amounts that should be paid immediately in order to avoid being put on credit hold by D-Link. At this point, with the comprehensive information that the Manager has been able to gather, the following actions can be taken: 1. Alert Accounts Payable department to pay overdue amounts to supplier D-Link immediately. 2. Notify the Sourcing team to expedite the open purchase order with D-Link for the Wireless PCI Adapter item so that there would be sufficient supply to match the excess Envoy Standard Laptops for the promotional campaign. 22 Conclusion - Recap Business Benefits: Throughout the demo flow, we were able to explore information across various business functions -- Sales, Inventory, Manufacturing, HR, Sourcing, Spend, and Finance -- all in a seamless fashion. This highlights the key benefits of Oracle Enterprise Analytics: >> The power to bring together data from disparate source systems through pre-built adapters and robust data warehouse. >> The business intelligence in transforming data into meaningful information through a comprehensive set of delivered metrics, dashboards and reports. >> The flexibility to analyze information across business processes for the entire enterprise. >> The ability to enable all levels of an enterprise to turn the insight gained from these analyses into strategic decisions and actions -- leading to improved operational performance and profitable results. Oracle Systems, Inc. 17

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