Consumer Goods
Industry Challenges and
Introduction to Core Processes
Karl Steiner, Industry Lead,
Consumer Goods, North America
Key Take-Aways
• Understand the consumer goods industry core
challenges and business processes
• Understand why Oracle in Consumer Goods
• Understand which solution sets to position in
Consumer Goods
• Speak with Confidence about Oracle’s ability
to deliver value to CG Companies
• Sign People up for the Webinar!!
Agenda
The What
The Why
The How
•
•
•
•
Business Imperatives
Core Processes
Challenges
Business Drivers
• Why Oracle in Consumer Goods
• How Can You Uncover Opportunities
• How Can You Drive Value Using Oracle
Solutions
Agenda
The What
The Why
The How
•
•
•
•
Business Imperatives
Core Processes
Challenges
Business Drivers
• Why Oracle in Consumer Goods
• How Can You Uncover Opportunities
• How Can You Drive Value Using Oracle
Solutions
Key Business Imperatives
Customer Intimacy
Consumers and
Customers
Long Term
Sustainable
Competitive
Advantage
Products
Operations
Product Leadership
Operational Excellence
Consumer Goods Industry Challenges
Consumer
Reach and
Loyalty
Supply Chain Complexity
Innovation
Trade
Promotions
Cost Pressures
Sustainability
Moving Toward Outside-In Processes
“The leaders in the industry are winning because they are building
competitive capabilities from the “outside-in”: for example,
•
•
•
•
•
•
Joint value creation with retailers
Demand sensing and translation
Eliminating stockouts
Perfect product launches
Understanding consumer behaviors and
Using insights to shape demand.”
Tech Trends 2007,
“Application investments are shifting from back office to front office
with a focus on business intelligence and knowledge
management.”
“The focus is on using IT to fuel global growth, not reinvent the
corporation.”
Tech Trends 2008,
Agenda
The What
•
•
•
•
Business Imperatives
Core Processes
Challenges
Business Drivers
The Why
• Why Oracle in Consumer Goods
The How
• How Can You Uncover Opportunities
• How Can You Drive Value Using Oracle
Solutions
Oracle Presence in Consumer Goods
Innovation
Sales and
Marketing
Operations
Back Office
Processes
Enterprise
Architecture
Delivering Profitable Growth
What Our Customers
Are Asking For
Business
• Understand consumer insights
• Improve innovation
• Optimize promotions
• Improve brand loyalty
• Sense and respond to consumer
demand
• Eliminate stockouts
• Reduce supply chain costs
• Synchronize data
• Improve collaboration
IT
• Deploy high-impact solutions
incrementally and rapidly
• Work with existing investments
• Better utilize information
Where Oracle Is Investing
Integrated Business Planning
Front
office
to back
office
Innovation
Integrated
Sales and
Marketing
DemandDriven
Operations
Enterprise Architecture
Business
Mgmt and
Control
Delivering Profitable Growth
Integrated Business Planning
Integrate financial, sales and operational planning
Innovation
Front
office
to
back
office
Optimize return
on innovation
investment
Integrated Sales
and Marketing
Demand-Driven
Operations
Business Mgmt
and Control
Increase value
from consumer
marketing, brand
equity and trade
management
Deploy agile
operations to
support profitable
growth
Enhance
efficiency of
business
management and
control at a lower
cost of ownership
Enterprise Architecture
Improve business performance, process efficiency, employee productivity,
collaboration and scale
Innovation
Innovation Strategy
Integrated
Sales and
Marketing
New Product
Introduction
DemandDriven
Operations
Portfolio
Management and
Optimization
Business
Mgt. and
Control
Performance
Management
End-to-End Innovation Process
- Develop Innovation
Targeting
- Develop New Product
Business Planning
- Segment Customer/
Consumer
- Model Demand
- Integrate to Corporate
Strategy
- Manage NPI Projects
- Collaborate Internally
and Externally
- Manage, Validate and
Screen Ideas
- Manage Product
Structure
- Support ECM and
Document Mgt
- Manage Formulations
and BOMs
- Manage Packaging and
Labeling
- Ensure Compliance
and Quality
- Manage Suppliers
- Group Projects into
Portfolios
- Analyze Portfolio
Metrics Against
Innovation Objectives
- Deliver ConstraintBased Optimization of
Portfolios Against Key
Performance
Objectives
- Monitor Sales
- Evaluate Product
Performance
- Manage Product Cost
and Profitability
Analysis
Business Intelligence / Master Data Management / Middleware
Innovation
Sales and
Marketing
Strategy
Brand and
Category
Management
Integrated
Sales and
Marketing
Consumer
Marketing
DemandDriven
Operations
Trade
Management
Business Mgt.
and Control
Price
Management
Demand Signal
Management
End-to-End Sales and Marketing Process
- Integrate to
corporate
financial
planning and
strategy
- Develop and
allocate
budgets
- Analyze PY
performance
- Create Brand and
Category
marketing plan
- Develop trade
marketing
programs
- Develop
promotions,
merchandise and
displays
- Evaluate program
effectiveness at
the brand and
category level
- Create consumer
marketing plan
- Gather consumer
data
- Analyze consumer
data for
segmentation
- Develop and
execute consumer
campaigns
- Manage consumer
loyalty
- Coordinate with
Brand and
Category
marketing plan
- Manage quality
--Develop
Manage trade
promotion
productionplans
costs accounts
- Manage
Schedule
--Manage
trade
production
promotions
Manage
--Plan
and execute
contract
retail
coverage
manufacturing
- Interface
with
-deduction
Execute/ and
monitor
settlement
manufacturing
management
processes
systems
- Analyze price
performance
- Plan and optimize
pricing
- Provide pricing
recommendations
and negotiate with
customers
- Publish and
coordinate
customer price
lists
- Execute pricing
and enforce
policies
- Deliver pricing
intelligence
- Capture daily retail
data (PoS,
shipments,
inventory)
- Capture syndicated
data
- Analyze data for
performance
management at the
promotion,
category and brand
level
- Evaluate retailer
insights
Business Intelligence / Master Data Management / Middleware
Innovation
Demand
Management
Sales and
Operations
Planning
Supply
Chain
Planning
Integrated
Sales and
Marketing
Sourcing &
Procurement
DemandDriven
Operations
Manufacturing
Order
Fulfillment
Business Mgt.
and Control
Warehousing
Transportation
End-to-End Demand-Driven Operations Process
- Collect
demand data
- Collect future
marketing and
sales plans
- Forecast
demand
- Collaborate on
demand
forecast
- Collect supply
data
- Balance supply
and demand
- Create final
enterprise plan
- Monitor and
revise plan
- Determine
supply
network
constraints
- Select network
- Determine
supply/
demand
variability
- Determine
safety stock
levels
- Determine
order policies
- Create
inventory plan
- Create
production
plan
- Manage
supplier
negotiations
- Manage
supplier
agreements
- Manage
supplier and
item
information
- Manage
purchase
orders
- Track and
manage
delivery
- Manage
invoices
- Manage
payments
- Manage quality
- Manage
production
costs
- Schedule
production
- Manage
contract
manufacturing
- Execute/
monitor
manufacturing
processes
- Manage sales
orders
- Manage
demand
release
- Bill customers
- Manage
revenue
- Process
customer
payments
- Manage
returns
- Manage A/R
balances
- Receive loads
- Crossdock
- Put away
- Manage
inventory
- Manage waves
and pick
- Consolidate
orders
Business Intelligence / Master Data Management / Middleware
- Source
carriers
- Plan
shipments
- Manage
transportation
orders
- Schedule
appointments
- Load trucks
- Track
shipments
- Pay carriers
- Bill customers
Delivering Profitable Growth
Integrated Business Planning
Integrate financial, sales and operational planning
Innovation
Front
office
to
back
office
Optimize return
on innovation
investment
Integrated Sales
and Marketing
Demand-Driven
Operations
Business Mgmt
and Control
Increase value
from consumer
marketing, brand
equity and trade
management
Deploy agile
operations to
support profitable
growth
Enhance
efficiency of
business
management and
control at a lower
cost of ownership
Enterprise Architecture
Improve business performance, process efficiency, employee productivity,
collaboration and scale
Enterprise Performance Management
Integrated Business Planning
Analysis and Reporting
Goal Setting
Business Goals
Metrics and Scorecards
Financial Modeling
Long Range Targets
Integrated Business Plan
Financial Planning & Budgeting
Annual Targets
Aligned Plans
Integrated Operational Planning
Operational Policies
Baseline Plans
Functional Operational Planning
Execution Plan
Execution Status
Functional Execution
Application Foundation
Delivering Profitable Growth
Integrated Business Planning
Integrate financial, sales and operational planning
Innovation
Front
office
to
back
office
Optimize return
on innovation
investment
Integrated Sales
and Marketing
Demand-Driven
Operations
Business Mgmt
and Control
Increase value
from consumer
marketing, brand
equity and trade
management
Deploy agile
operations to
support profitable
growth
Enhance
efficiency of
business
management and
control at a lower
cost of ownership
Enterprise Architecture
Improve business performance, process efficiency, employee productivity,
collaboration and scale
Enterprise Architecture
Rationalize IT Spending
Division 1
Sales
CRM
Operations Accounting
Mfg
Order
Mgmt
Rigid
Division 2
Sales
Operations Accounting
CRM
Financials
Complex
Partner
System
Mfg
Order
Mgmt
Integration Architecture
Financials
Expensive
Flexible
Tailored
Extensible
Master Data Management
Clean data for the enterprise
‰ Consolidate/Federate shared
information into one place
ETL
SFA
Call
Center
Web
site
Fusion
App
Middleware
Application Integration Architecture
ERP 1
ERP2
Call
SCM
Fusion
App
‰ Cleanse data centrally
‰ Share data as a single point
of truth as a service
Partner
BI/
DW
MDM
¾Lower data management costs
¾ Better reporting
¾ Enterprise foundation for agility
& innovation
Legacy
ETL
Enterprise Visibility
Interactive
Dashboards
Sales
Reporting &
Publishing
Service &
Contact
Center
Ad-hoc
Analysis
Marketing
Proactive
Detection
and Alerts
Order
Management
& Fulfillment
Disconnected
Analytics
Supply
Chain
MS Office
Plug-in
Financials
Web
Services
Human
Resources
Oracle BI Applications
Oracle BI Apps
built on
Oracle BI EE Suite
• Common Enterprise Information Model
• Prebuilt Hierarchies, Drill Paths, Security, dashboards, reports
• Based on industry and analytic best practices
Packaged
ETL Maps
Universal
Adapters
IVR, ACD, CTI
Hyperion
MS Excel
Other Data Sources
CG Analytics
Insight Across All Customer Touchpoints
• Capture data from any source
(e.g., POS, Retail-Link, IRI/ACN)
• Graphically rich, intuitive UI;
tailorable
• Pre-built (yet extensible) analytics
• Support mobile / handheld devices
• Designed for tight integration with
customer interaction systems
• Role-based dashboards & reports:
Marketing
- Promotion profitability & ROI
- Trade fund management
- Store-level activity monitoring
Sales
- Trend tracking, actual vs. target
- Category analysis
- Out-of-stock potential
Enterprise Architecture
Rationalize IT Spending
Reduce Complexity and Cost
Shift IT Spending from Infrastructure
to Strategic Investment
• Fewer, more strategic vendors
• Standardize processes and consolidate
information
• Buy vs. Build
• Eliminate redundant and niche applications
• Risk and compliance are strategic issues
• Integrate performance management silos
• Modernize legacy applications
• Simplify infrastructure
• SaaS delivery model
Delivering Profitable Growth
Integrated Business Planning
Integrate financial, sales and operational planning
Innovation
Front
office
to
back
office
Optimize return
on innovation
investment
Integrated Sales
and Marketing
Demand-Driven
Operations
Business Mgmt
and Control
Increase value
from consumer
marketing, brand
equity and trade
management
Deploy agile
operations to
support profitable
growth
Enhance
efficiency of
business
management and
control at a lower
cost of ownership
Enterprise Architecture
Improve business performance, process efficiency, employee productivity,
collaboration and scale
Oracle Solutions for Consumer Goods
Integrated Sales
and Marketing
Innovation
Demand-Driven
Operations
End-to-End Comprehensive Consumer Goods Template
Integrated Business Planning
New Product Introduction
Consumer Marketing
Brand Management
Industry
Processes
Trade Management
Demand Signal Management
Manufacturing
Transportation Management
Business Management and Control
Enterprise Performance Management
Business
Transformation
Role-Based Dashboards
Business Process Integration
Master Data Management
Oracle Solutions for Consumer Goods
Integrated Sales
and Marketing
Innovation
Demand-Driven
Operations
End-to-End Comprehensive Consumer Goods Template
Hyperion
Agile
New Product Introduction
Siebel
Consumer Marketing
Siebel
Industry
Processes
Demantra
Integrated Business Planning
Siebel/Demantra/EBS TM/OBIEE
New Oracle Solution
Brand Management
Trade Management
Demand Signal Management
EBS/JDE
Manufacturing
OTM Transportation Management
EBS/JDE
EPM/BI
Business
Transformation
Business Management and Control
Enterprise Performance Management
Fusion Middleware
Fusion Middleware
MDM
Role-Based Dashboards
Business Process Integration
Master Data Management
Oracle Accelerate for Consumer Goods
Integrated Sales
and Marketing
Innovation
Demand-Driven
Operations
End-to-End Comprehensive Consumer Goods Template
Hyperion
Agile
New Product Introduction
Siebel
Consumer Marketing
Siebel
Industry
Processes
Demantra
Integrated Business Planning
Siebel/Demantra/EBS TM/OBIEE
New Oracle Solution
Brand Management
Trade Management
Demand Signal Management
EBS/JDE
Manufacturing
OTM Transportation Management
EBS/JDE
EPM/BI
Business
Transformation
Business Management and Control
Enterprise Performance Management
Fusion Middleware
Fusion Middleware
MDM
Role-Based Dashboards
Business Process Integration
Master Data Management
Key Stakeholders
Innovation
Integrated Sales
and Marketing
Demand-Driven
Operations
End-to-End Comprehensive Consumer Goods Template
CEO/CFO/COO/CIO
VP R&D/QA
VP Marketing
Industry
Processes
VP Sales
VP Operations
VP Supply Chain
VP Logistics
Business
Transformation
CEO/CFO/COO/CIO/VP HR
Agenda
The What
The Why
The How
•
•
•
•
Business Imperatives
Core Processes
Challenges
Business Drivers
• Why Oracle in Consumer Goods
• How Can You Uncover Opportunities
• How Can You Drive Value Using Oracle
Solutions
Discussion Points
CEO/CFO
•
•
•
•
•
How do you rank your most effective ways to immediately impact your top and bottom line performance?
What is the second largest line item in your corporate financials? (hint: TRADE PROMOTION FUNDS)
Can you tell a board member what the top three products bring in promotional ROI
What percentage of trade funds do you spend to gross revenues?
Are your trade marketing and promotion programs in compliance with regulations and laws?
Sales and
Marketing
•
•
•
•
•
•
Supply Chain
•
•
•
•
•
Administration/
Operations
• Are your approval routing systems able to give you immediate, intelligent and accessible executive approvals?
• Does your fund management have superior accounting integrity, flexibility to handle multiple funding types, and immediate
financial results analysis?
• Can your TPM system accommodate rules, terms and conditions for marketing programs that drive compliance throughout the
validation, audit and settlement process?
• Does your field sales and marketing team have access to financial and promotion activity on a real time basis?
• What is the turnaround time for claims and deduction processing?
• What is the “days outstanding” and aging curve for deductions?
Are you able to generate a consensus forecast with one number across all organizations in the company?
How do you generate your consumer insights?
What tools do you have in place that can analyze POS, syndicated and shipment data at all levels of the product hierarchy?
How do you align your brand and category marketing with trade promotion to achieve the highest ROI and consumer response?
How do you translate consumer demand signals to tactical and strategic response?
Are your company analytical tools enabling the highest quality and accuracy of visibility to your consumer and customer
activities?
• How long does it take you to go from budget to finalized promotional plan?
• What effective measurement indicators and metrics are in place for retail coverage planning and execution?
• How quickly can your teams react to a promotion that is performing out of compliance with the plan?
How do you align supply chain plans with brand, category, and trade promotion plans?
What are the key performance indicators and metrics you use to measure effectiveness of trade promotion?
Can you generate near real time measurements on supply chain execution?
Do you have tools to collaborate with the retailers and distributors to ensure alignment of objectives and compliance?
Can you rapidly and effectively communicate problems throughout the organization to provide immediate response and
solution?
• What is your current “out-of-stock” rate and how are you closing the gap?
• How closely aligned is your demand plan to actual supply performance?
What Customers are Achieving…
Used Siebel eCG to gain a +15% increase in sales
productivity, and an ROI of +15% within 1 year
Reduced new product development time by 30% with
Oracle Agile PLM
Increased order fill rate from 55% to over 95%, increased
inventory turns from 3x to 6x per year and reduced
logistics costs by 65% with Oracle Demantra
Reduced direct mail costs down by 57% and achieved
response rates of up to 62%
Reduced trade promotion planning time from 7 weeks to
2 weeks with Siebel TPM
Why Oracle in Consumer Goods
9 Significant industry presence
9 Complete – Open – Integrated
9 Oracle investments aligned with industry direction
(shift to front office)
9 Convergence of solutions, middleware and database
“Oracle’s applications licensing growth during FY 2008 was largely
attributable to improved sales of industry-focused solutions
beyond traditional enterprise resource planning (ERP).”
“A key decision criterion for enterprise applications is how
compelling and clear the vendor’s vision for the future is. Oracle’s
vision for the future of its apps business is now clearer and more
compelling than that of archrival SAP.”
Which Has The Better Apps Strategy: Oracle or SAP?
(Oct 2008)
Key Take-Aways
• Understand the consumer goods industry core
challenges and business processes
• Understand why Oracle in Consumer Goods
• Understand which solution sets to position in
Consumer Goods
• Speak with Confidence about Oracle’s ability
to deliver value to CG Companies
• Sign People up for the Webinar!!
CG University Miniseries
• Total of 10 30-minute webcasts with assessments
Topic
Owner
1
Consumer Goods – Industry Challenges and Introduction to Core Processes
Bernard Goor
2
Consumer Goods – Innovation
Bernard Goor
3
Consumer Goods – Integrated Sales and Marketing: Process Overview
Rob Hand
4
Consumer Goods – Integrated Sales and Marketing: Consumer Marketing
Karl Steiner
5
Consumer Goods – Integrated Sales and Marketing: Trade Management
Rob Hand
6
Consumer Goods – Demand Driven Operations: Process Overview
Paolo Maraziti
7
Consumer Goods – Demand-Driven Operations: S&OP
Mark Gordon
8
Consumer Goods – Demand-Driven Operations: Transportation Management
Kerry Wigginton
9
Consumer Goods – Positioning EBS/JDE
Herbert Klein
10
Consumer Goods – Enabling Business Transformation with Enterprise Architecture
Matt Johnson
• Location: Consumer Goods Industry Training Page
Questions
Customer Reference Slides
• Learn the high level message for each slide
• Confidently use it in a conversation
Integrated Business Planning
Global manufacturer and marketer of high-quality,
brand-name products for consumers throughout the world
Before
After
ƒ Manual processes using hundreds of
spreadsheets
ƒ Disconnected decision making within
functional silos
ƒ Lack of alignment across sales,
marketing and operations plans
ƒ Long planning cycle times due to
batch oriented planning modules
ƒ Integrated planning models across
sales, marketing and operations
ƒ Operational decisions based on
financial impact assessment
ƒ Improved alignment across demand
plan, sales promotion plan, capacity
plan and financial plan
ƒ Reduced planning cycle times in line
with business needs
H.J. Heinz optimizes trade spend to
maximize revenue and profitability
COMPANY OVERVIEW
CUSTOMER PERSPECTIVE
ƒ Heinz is a global US-based food company producing
“Siebel Systems has provided our
field organization a best-in-class
platform for planning and trade
management applications with
which to provide better service to
our customers with greater
visibility into business trends," -
condiments, meals and snacks and sell in over 50 countries.
ƒ More than 45,000 employees
CHALLENGES/OPPORTUNITIES
ƒ Ineffective sales processes and reporting
ƒ Inaccurate demand planning
ƒ Determining liabilities difficult because numerous planning
George Chappelle, vice president
and chief information officer, Heinz
spreadsheets exist
ƒ Out of stocks reduce profitability of promotions
ƒ Limitation of incentive in fixed fund scenarios
RESULTS
SOLUTIONS
ƒ +15% increase in sales productivity
ƒ Implementation of Siebel eCG
ƒ Trade Promotion Management, Trade Funds (Live accruals),
ƒ ROI of +15% within 1 year
ƒ 100% User adoption
ƒ Improved customer relationships
Analytics
ƒ 700 users, 250 remote users
ƒ 100% web-based
37
Organic Valley
Sales and Operations
Planning
From this:
to THIS:
COMPANY OVERVIEW
ƒ Organic Valley and it’s two sister companies, Organic
Prairie and Organic Logistics is one of the up and coming
CG suppliers in the rapidly growing natural and organic
foods industry. They were founded in 1988 in Lafarge, WI,
USA, and are forecasting a goal of $550M (USD) for 2008.
As a cooperative, they have over 1,200 farms supplying
them products ranging from dairy to soy, meat to produce
and eggs.
CHALLENGES/OPPORTUNITIES
Raw Material Challenges, with Lead-times of 1-3 years
Variable material quantities with little notice. Highly
perishable, 24-72 hours; Sourced from 1,000 farms
across 25 states. Finished Goods Challenges: Highly
perishable, 1-20 days; Co-pack +60 plants across US
and Ship to all 50 states
High Growth rate +20%. They are small and have a very
limited budget, with the inability to have a serious input to
the retail category decisions.
SOLUTIONS
ƒ Oracle Demantra
ƒ Predictive Trade Planning
ƒ Promotion Optimization
ƒ Deduction and Settlement Management
ƒ Demantra Analytics
ƒ Launched Project Viper in 2005, Implemented in July 2006
RESULTS
• Reduced overspend by +$6M to controlled
spend rate within budget
• Improved fill rate to 98.5%
• Dramatically reduced forecast variance
with more predictable outcomes (See
above chart)
• Outpaced the industry growth rate by 25%
• Reduced price impact analysis from 3 days
to 30 minutes!
• Improved supplier confidence with the right
product, the right store, and the right time
• Enabled the move from a regional supplier
to a national player
Land O’ Lakes – J.D. Edwards
COMPANY OVERVIEW
•
•
•
•
Leading producer of dairy & agricultural products
Industry:Consumer Products
Revenue: US$ 7.6 Billion – Farmer owned co-operative
7500 employees in 50 countries. HQ – St Paul Minnesota
CHALLENGES/OPPORTUNITIES
• Replace disparate IT systems with JDE E1 across the enterprise
• Develop standardized & integrated processes
• Reduce the number of systems & interfaces required to support the
business (Simplify and reduce risk)
• Reduce transportation cost
• Support the ability to locate and trace product from material receipt
to the customer
CUSTOMER PERSPECTIVE
RESULTS
• Benefits – $11M annual impact
• $0.5M one-time P&L benefit
• $16M one-time working capital
benefit
• $59M total 5 year benefit
• Core applications reduced by 60%
• Single integrated view of
customer, channel and inventory
across the supply chain
SOLUTIONS
•
•
•
•
•
•
Oracle – J.D Edwards EnterpriseOne 8.12 (Upgrade Live July 07)
Oracle _ PeopleSoft Internal Controls Enforcer
Oracle Transportation Management (Dairy foods go-live July 07)
Oracle Operational Planning
Oracle Freight Payment, Billing & Claims
Oracle HR/Payroll
Pending customer approval – Internal Use Only
Internal Use ONLY!
2006
© 2008 Oracle Corporation – ProprietarySeptember
and Confidential
Ghirardelli Confections
COMPANY OVERVIEW
•
•
•
•
Serves customers in North America
Manufacturere and Distibutor of Chocolate and confections
Employees: 700
Revenue: NA – Parent Lindt & Sprungli
CHALLENGES/OPPORTUNITIES
• Enable faster, more flexible reporting for improved financial
analysis and decision making.
• Improve data integrity to strengthen management reporting and
compliance with International Financial Reporting Standards.
• Improve inventory accuracy and customer satisfaction.
SOLUTIONS
Oracle / JDE
•
•
•
•
•
Financial Management
Supply Chain Management (Demand Consensus)
Logistics
Manufacturing
Warehouse Management
CUSTOMER PERSPECTIVE
“As customers become more
demanding and competition more
fierce, it is critical that we can
delineate between customer
requirements and needs, and JD
Edwards has the capability to help
us meet those needs.”
Margaret Neel Stratton,
Director of Logistics
RESULTS
• Faster, more flexible reporting improves
finanical analysis and decision making
• 50% reduction in time for financial month
closings
• Real time visibility into sales and
inventory to support rapid growth
• 99% increase in inventory accuracy
© 2008 Oracle Corporation – Proprietary and Confidential
Thermos
COMPANY OVERVIEW
• One of the most recognizable brand names in the consumergoods industry, Thermos L.L.C. manufactures a wide range of
insulated products.
CHALLENGES/OPPORTUNITIES
• Legacy systems a hodge-podge of incompatible software
• Inefficient warehouse and shipping operations
• Customers demanded faster turnaround and RFID
CUSTOMER PERSPECTIVE
“With Oracle E-Business Suite,
we’ve moved from a very complex
and costly IT infrastructure to an
integrated platform running on a
single instance.”
Alex Huang, Chief Operating Officer
SOLUTIONS
RESULTS
• Single-instance Oracle E-Business system
• Adopted most of EBS built-in business flows
• Integrate financial systems with operations
• Achieved ROI of 222%
• Investment paid for itself
immediately
• On track to realize benefits of
US $6.2 million
• Increased warehouse productivity
by 29%
• Cut inventory carrying costs
• Positioned to meet new standards
in retail industry
© 2008 Oracle Corporation – Proprietary and Confidential
H. J. Heinz
Innovation
COMPANY OVERVIEW
ƒ H. J. Heinz Company manufactures and markets processed
food products throughout the world. Principal products
include ketchup, condiments and sauces, frozen food,
soups, beans and pasta meals, infant food and other
processed food products, which are sold to consumers, as
well as foodservice and institutional customers.
ƒ Revenues (2006): $9.0 Billion; employees (2006): 33,000
CHALLENGES/OPPORTUNITIES
ƒ Proliferation of specifications (from finished products to
ingredients)
ƒ Limited visibility and security with data stored in multiple
manual systems
ƒ Inconsistent specification management process
ƒ Inconsistent and slow new product introduction process
SOLUTIONS
ƒ Agile Product Lifecycle Management for Process
ƒ Agile Product Data Management for Process
ƒ Agile Formulation and Compliance for Process
ƒ Agile Product Supplier Collaboration for Process
ƒ Agile New Product Development and Introduction for
Process
ƒ Launched Project Viper in 2000
ƒ Implemented in over 175 sites, in 21 languages/cultures,
with over 4,500 registered users
CUSTOMER PERSPECTIVE
"Agile Prodika [now Oracle] has greatly
improved our raw material, supplier, and
product intelligence. Information which used
to take weeks to gather is now a natural
extension of our day-to-day business
processes."
Deb Crosby, Chief Quality Officer
RESULTS
• Simplification and global standardization of
business processes
• Global information visibility with one single
“version of the truth” (data accessible in
seconds vs. weeks)
• SKU rationalization and reduction of
number of specifications (30% reduction in
SKUs)
• Faster new product introduction cycles
(reduced labeling cycle from 45 to 7 days)
• Improved supplier collaboration
© 2008 Oracle Corporation – Proprietary and Confidential
Welch’s Integrates TPM, Demand Planning,
and Promotion Analytics to Drive
One-Number Planning
COMPANY OVERVIEW
• Serves customers throughout the U.S. and in more than 35
countries and territories around the world
• World’s leading marketer of Concord and Niagara grape-based
products.
• Employees: More than 1,350
• Revenue: More than US $730Million
CHALLENGES/OPPORTUNITIES
• Manage, analyze, and understand the effectiveness
• of the thousands of trade promotions they ran annually
• Replace the complex, cumbersome, and error prone set of Excel
spreadsheets they were using to manage parts the process
• Reduce the hundreds of hours each month to complete and
consolidate
• Impact the productivity of their sales force in administering the
trade promotion process
• Reduce the associated risks with respect to their spending,
revenues, and profits
SOLUTIONS
Oracle / Demantra
• Trade Promotion Management
• Demand Planning
• EBS OPM
Pending customer approval – Internal Use Only
CUSTOMER PERSPECTIVE
“The ability to have Trade Promotion
Management really be embedded
with the demand plan and integrated
post-analysis, all in one tool -- that is
the one key that no other manufacturer
of this type of product could
accomplish.”
Larry Rencken,
Chief Information Officer
RESULTS
• One-number forecast, with increased SKUlevel accuracy
• 1% reduction in trade spending
• Millions of dollars saved in supply chain
costs
• Productivity improvements in Headquarters
Sales, Field Sales, and broker sales force
2006
© 2008 Oracle Corporation – ProprietarySeptember
and Confidential