Optimizing Supply Chain Processes with Oracle SCP – NexInfo

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• Oracle NexInfo Supply Chain Planning Webinar
  for Net Suite

• Kyle McGraw Oracle

• August 30, 2023

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Todays Journey
Time (CST) Topic Duration (Min)
100 115 PM Introduction and Keynote by Kyle 15
115 145 PM Oracle Fusion Supply Chain Planning Applications Content by Naveen Saxena (NexInfo) 30
145 155 PM Customer Sakura Presentation by Sandeep 10
155 200 PM QA 5
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• Experience in Demand Planning, Inventory
  Coordination, and Process improvement

• Knowledge of Supply Chain Planning,
  Manufacturing, Quality, and Maintenance

• Lean Six Sigma Certified

• Kyle McGraw

• Solution Engineer

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How fast can you react to Supply and Demand
Changes?
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How Fast Can You React to Supply and Demand
Changes?
Disruptions are Increasing the Pace of Change and
Exposing Capability Gap
DISRUPTIONS
Disruptive Events
The Pace of Change
Technology Convergence
Brand Reputation
Competition Innovation
Changing Customer Expectations
Capability Gap
Security Compliance
Ability to respond
Simulations to manage changing business
conditions
CONSTRAINTS
Quality Speed of Decisions
Process Siloes
Legacy Apps Infrastructure
Sources Gartner CSCO Survey, 2017 BCG MIT
Sloan Mgmt review, Sep 2017 IDC 2015 Global IoT
Decision Maker Survey
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Copyright 2023, Oracle and/or its affiliates.
All rights reserved..
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Oracle Fusion Cloud Supply Chain Planning

• One platform for all your planning needs

Sales Operations Planning
Supply Planning
Demand Management
Supply Chain Collaboration
Copyright 2022 Oracle and/or its affiliates.
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Oracle Fusion Cloud Supply Chain Planning

• Demand Management

Sales Operations Planning
Supply Planning
Demand Management
Supply Chain Collaboration
Anticipate Demand Accurately
Demand Planning

• Collaborative Forecasting
• Comparative analysis

Predictive Demand Modeling Forecasting and shaping

• Demand Sensing
• Segmentation and affinity analysis

Interactive Demand Shaping What-if scenarios
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Analytical models
19 Models Automatically applied, validated and
combined using Bayesian Learning
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Multiple Linear Regression
Logistic Regression
Moving Average/Exp. Smoothing
Non-Linear Regression
Intermittent
Markov Chain Monte Carlo
Copyright 2022 Oracle and/or its affiliates.
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Sense demand changes
Forecast considering pattern changes
Uplift due to event (weather,)
Regime changes
External events
Automatically detect anomalies
Demand Shock Start
Shock Expected End
Demand shocks
Outliers
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Oracle Cloud Supply Planning
Respond rapidly to changes in demand and supply
Sales Operations Planning
Supply Planning
Improve Operational Efficiency
Supply Chain Collaboration
Monitor Supply Problems Identify and address most
important problems
Plan Entire Supply Chain Plan across multi-tier
supply chain in real time
Respond to Changes Simulate potential responses,
Identify execute best response
Unify Planning Processes Plan demand supply
together
Copyright 2021, Oracle and/or its affiliates.
All rights reserved..
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Integrate with the enterprise and beyond
SalesForecasts
New Items/ECOs
ProductDevelopment
Sales
Supply Chain Planning
SalesOrders
NetSuite Order Management
Customers
PurchaseRequisitions
Receipts
WIP
On Hand
NetSuite Procurement
PurchaseOrders
Capacity
WorkOrders
Shipments
NetSuite Inventory
NetSuite Manufacturing
Copyright 2022 Oracle and/or its affiliates.
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Integrate with the enterprise and beyond
Enterprise Performance Management
OperationalPlans
FinancialPlans
Supply Chain Planning
SalesForecasts
New Items/ECOs
ProductDevelopment
Sales
Sales Operations Planning
OrderForecasts
Supply ChainCollaboration
SalesOrders
NetSuite Order Management
ForecastCommits
Customers
Suppliers
PurchaseRequisitions
Receipts
WIP
On Hand
NetSuite Procurement
PurchaseOrders
Capacity
WorkOrders
Shipments
NetSuite Inventory
NetSuite Manufacturing
Copyright 2022 Oracle and/or its affiliates.
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Improving your Enterprise Performance
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50
increase in Return on Fixed Assets (RoFA)
lower frozen time periods
higher WIP inventory turns
a measure of supply chain flexibility
Sources APQC Research McKinsey Research
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Accelerating the Pace of Change
Forecast considering pattern changes
Uplift due to event (weather,)
Backlog Management
Replenishment Planning
Automatically detect anomalies
Demand Shock Start
Shock Expected End
Production Scheduling
Quarterly Updates and Enhancements
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• LETS GO!

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• Oracle NexInfo Supply Chain Planning Webinar
  for Net Suite

• Naveen Saxena NexInfo

• August 30, 2023

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Introduction

• Naveen Saxena
• Supply Chain Planning Consultant - NexInfo

• 15 years of industry experience and specialized
  in Business transformation, Process and Solution
  Design, Program Management in Supply Chain
  Planning
• Specialist with experience in leading Oracle
  Cloud Supply Chain Implementation Projects across
  High tech, Manufacturers, Distributors,
  Retailers, Service based companies . Recommending
  industry best practices implementing Business
  Optimization initiatives for Enterprise Customers
  across industry domain

• Naveen Saxena

• Supply Chain Planning Consultant

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• Demand Management

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Demand Management
Sense Predict and Shape Demand for better
outcomes
Predict Demand to Manage Variability Forecasting
and shaping
Analyze Demand by Segment Affinity analysis
Evaluate the impact of demand changes Comparative
analysis
Shape Demand to Achieve Business
Objectives What-if scenarios
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• Replenishment Planning

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Replenishment Planning
Reduce inventory and improve customer service
levels at distribution and store level
Inventory Policy Analysis Accurately match
policy to demand patterns
Segment Analysis Automatically classify items,
locations
Automated Replenishments Set and forget routine
replenishments
Replenishment Workbench Monitor, simulate and
update
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• Supply Planning

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Supply Planning
Optimize resources for service and cost with
automated planning decisions
Intuitive Insights Across the entire supply
chain
Resolve Capacity Constraints Fulfill demand on
time
Diagnostic Capability Easy root cause analysis
Recalculate Action Local impact of demand and
supply changes
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Constraint-based Supply Planning

• Balance material and plan resources while meeting
  customer demand

Resources are overloaded

• Constrained Supply Planning will explore all
  possible alternatives to meet demand on time when
  encountering capacity constraints
• Build ahead
• Use alternate resources
• Use substitute components
• Use alternate work definitions and item
  structures
• Use alternate sources and suppliers
• After exhausting all these choices, if there is
  still not sufficient capacity to meet demand on
  time
• A capacity overload will be generated on the
  primary fulfillment path

Resource load after using alternate resources
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Constraint-based Supply Planning

• Perceive linked events, demands and supplies
  across the supply chain

• The Build Plan helps you analyze the end-to-end
  supply chain relationships that span end items,
  components, suppliers and resources
• Easily identify inventory and capacity shortages,
  find the root causes and modify the plan to
  resolve issues
• Reduce the cycle time between insight and action
  by enabling order level edits within the Build
  Plan
• Powerful selector tool
• Visualization of pegging relationships
• Ability to highlight exceptions on-demand
• Flexible supply chain navigation
• End item down
• Component up
• Resource centric

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Constraint-based Supply Planning

• Perform material and resource adjustments in the
  Plan and look at the impact on overall plan output

• Recalculate a subset of the plan output in
  response to a user-initiated change
• Supply and demand quantities and dates
• New planned order
• Change work definition
• Change resource or supplier capacity
• Change activity timings
• Firm components or resources
• Recalculate action
• Is a near real time process
• Performs a local recalculation of plan output
• Recalculates a subset of planning measures and
  order attributes

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• Backlog Management

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• Sales and Operations Planning

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Sales and Operations Planning

• Link strategy to operations
• Achieve financial targets

Evaluate alternative scenarios
Execute on plan

• Plan new products
• Manage throughout lifecycle

• Run rapid simulations
• Plan at aggregate level

• Sense and shape demand
• Respond to changing markets

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• Sandeep Sindol Sakura Finetek USA

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Introduction

• Sandeep Sindol
• Senior IT Manager, Sakura Finetek USA, Inc.

• Senior IT Manager with 20 years of experience
  working in IT
• Leads development, enhancements and maintenance
  of Oracle ERP and other SaaS and on-premise
  software applications used throughout the Sakura
  organization
• Responsible for maintaining the complete IT
  infrastructure that includes software, hardware
  and network infrastructure.
• Passion for staying informed and learning about
  emerging technologies to provide cost effective
  solutions that meet business expectations but
  require minimal resources

• Sandeep Sindol

• Senior IT Manager
• Sakura Finetek USA, Inc.

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About - Sakura Finetek USA

• Sales, Marketing, RD, Manufacturing in Torrance,
  CA.
• 3 Global regions - USA, The Netherlands and
  Japan
• Privately held in Japan since 1871
• 270 employees including a direct sales force of
  30 in USA
• Over 100 M in annual sales
• FDA registered manufacturing facility
• An ISO 13485 / MDSAP certified manufacturer and
  supplier
• USA region manage North, Central and South
  Americas

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Agenda

• Challenges faced in Supply Chain Management
• Implementing Oracle Supply Chain Planning
• Key Benefits and Success Metrics

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Challenges faced in Supply Chain Planning

• Two types of manufacturing Instrument
  Reagent, both are using the Discrete
  Manufacturing
• 2K finished goods SKU, 7K Make SKUs
  (sub-assemblies) and 25K component SKUs raw
  materials (spare parts, accessories and
  consumables)
• Instrument manufactured at our facility has
  complex BOM Structure, 10 BOM levels. Involves
  1700 different components, 8000 quantities
  required. It has 7 Assembly Lines
• Fulfill customer sales order in full and on-time
  was issue because of inventory on-hand not
  available.
• Manufacturing was falling behind because of raw
  material shortages.
• Improve Supply Chain visibility.
• Reduce Planning Time

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One of the BOM for Instrument Manufacturing
Row Labels Count of Item Sum of Extended Quantity
7 4 63
6 85 457
5 558 2,555
4 455 973
3 511 3,806
2 100 142
1 4 4
Grand Total 1,717 8,000
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Business Case
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Implementing Oracle Supply Chain Planning

• Supply Chain Planning cloud becoming stronger and
  stable.
• Users excited about functionality and modern look
  UI
• Complete visibility across the organization with
  respect to Supply and Demand.
• Critical items are defined with Safety Stock
  levels
• Supply and WO recommendation.
• Substitute parts recommendation.
• Planning exception handled.
• IT was excited about cloud
• Short implementation timelines

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Key Benefits and Success Metrics

• Simulate potential responses and identify and
  execute best response
• Improved Demand Forecasting
• Cost Savings Lowered inventory cost by up to
  57 (5M)
• Enhanced Inventory Management
• Optimized Supply Planning (Forecasts, Lead Times
  Supplier Constraints)
• Collaborative Planning across departments
• Improved operation efficiency
• Scalability
• lt30 Mins to complete the whole MRP Plan for one
  BU and is scheduled to run weekly.
• Dashboards and Graphs

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