Value Chain Planning – Oracle
Either or? Try both
Many supply chain leaders view transformation as a series of necessary tradeoffs: We can reduce operational costs with a transformational project, but customer service may be affected. We can reduce working capital investments, but we may not be able to improve alignment with financial plans. We can either gain visibility into the supply chain, or increase our control over it. We may standardize our business processes and systems, but we may not be able to eliminate low-value steps.
And that’s just the beginning of a very long list.
But it doesn’t have to be that way. Today’s supply chains should be able to deliver many of the above and then some, even in the midst of transformation.
At Deloitte, we realize the importance of combining practical business strategy with deep technology experience. We have access to a virtually unmatched range of capabilities across consulting, financial advisory services, tax and risk management through our global network. This allows us to offer an integrated approach to service delivery. We understand how enterprise application strategies combine with business needs to aid organizations in generating more value from their technology portfolios. Learn more about the offering.
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Meet our people
- Brent Bruggeman, U.S. Oracle VCP Practice Director, Deloitte Consulting LLP
- Application Upgrades – Oracle
- CRM Transformation – Oracle
- Finance Transformation – Oracle
- HR Transformation – Oracle
- Supply Chain Transformation – Oracle
- Technology Services – Oracle
- Value Chain Execution – Oracle
Learn more about the offering
Up to the test?
Faced with choices like the ones listed above, it’s easy to see why some supply chain leaders may decide to stick with their current approach, using maneuvers like moving inventory around or assigning more budget to freight to compensate for lurking inefficiencies. Besides, the current approach isn’t broken - yet. But when your business needs to move quickly in some unexpected direction, the limitations of your current approach may become painfully evident. Supply chain transformation can help – if you know where to start.
How we can help
At Deloitte, we realize the importance of combining practical business strategy with deep technology experience. We have access to a virtually unmatched range of capabilities across consulting, financial advisory services, tax and risk management through our global network. This allows us to offer an integrated approach to service delivery. We understand how enterprise application strategies combine with business needs to aid organizations in generating more value from their technology portfolios.
We combine supply chain planning understanding, knowledge of applications such as Oracle Value Chain Planning (VCP), and implementation-related consulting experience with industry insights to help our clients create supply chain technology strategies designed to deliver results. Our award-winning relationship with Oracle and our Oracle VCP experience help us bring tested practices to our clients with the following services:
- Supply chain strategy and roadmap creation. Develop a broad supply chain strategy aligned with business goals, including specific technology steps to support the strategy. Create synchronized supply chain visions designed to help achieve supply-demand balance while improving financial performance. Integrate the financial organization for increased financial control and alignment.
- Sales and operations planning implementations. Designed to help clients achieve supply and demand balancing through a four-step sales and operations planning (S&OP) process. Align the planning organization with finance and develop executive support for strategic decisions.
- Demand planning, supply planning and production scheduling. Develop leading demand planning, supply planning and production scheduling processes designed to reduce non-value-added steps and allow for an efficient, measured, flexible, speedy and integrated execution.
- Proof of concept approach. Our proof of concept approach is designed to help clients develop a supply chain planning approach and roadmap that can demonstrate the value of a full implementation.
- Forecast accuracy improvements of as much as 40%
- Line and order fill-rate improvements of as much as 20%
- Inventory reductions of as much as 30%
- Supply chain cost reductions of as much as 25%
- Improved capacity utilization of as much as 20%
- Standardized processes, greater visibility and control
- Reduced planning complexity across the supply chain
- Tighter coordination between demand, supply and the company’s production capabilities
- Better decision making and analysis through the use of commonly defined metrics
- Less time spent on low-value-added steps such as data collection, and more time spent on analysis and decision making
- Stronger, more transparent relationships with partners
Seven ways to get more value now
Executing an effective supply chain transformation requires more than a broad knowledge of technology. It requires a broad approach to solving supply chain planning problems that can be executed from Day One. Here are a few things we’ve learned along the way:
Lead with clear business goals. Don’t let the bells and whistles of technology drive your project scope. Define and stay focused on the clear business objectives and align the technology choices to that vision. This will make “tough” technology decisions easier.
Commit and be consistent for better adoption. Transformation is not for the half-hearted. Consistency is critical. It can be effectively used to get the required buy-in from the organization.
Leverage built-in leading practices. Leading technology solutions have spent significant time and effort providing support for leading business processes. Using the “out-of-the-box” Oracle VCP capabilities in areas which are not market-differentiating or do not drive significant business benefits may keep costs down and can keep the focus on the business processes and information that matter.
Phase in the technology. A long-term phased implementation by functional area should be designed with a holistic approach that should not impact future roll-outs.
Build on integrated solutions. Enable the transformation by using leading integrated technologies. Transformation requires flexible and adaptive software solutions that can be integrated with ERP and legacy systems.
Take an industry-centric approach. Industry-specific requirements can drive significant increases in the time required to design and implement enabling technologies. Industry-centric solutions can help reduce the implementation cycle time and may reduce design risk.
Cover the bases. Transformation is not about one component such as technology implementation. The ability of the organization to bring the required components (such as process, change management, technology, implementation management, data readiness) together may determine the success of the transformation initiative. Work with an implementation provider with capabilities to manage these components using a sound methodology.
Value Chain Planning in action
- A multinational process manufacturer needed help with a supply chain transformation initiative. The scope included strategy, process re-design and technology implementation components aimed at forecasting, supply/inventory planning, S&OP and order fulfillment processes. We helped our client by establishing a supply chain team from our strategy, process, change and Oracle VCP practices, combining process manufacturing industry experience with specialized Oracle VCP experience. We also facilitated the people and organizational transformation by continually reaching out to the affected client organizations and regions. Oracle VCP products, including Demantra and Advanced Supply Chain Planning, were implemented.
- A $12 billion dairy cooperative needed help implementing a demand management solution using a demand-sensing approach for improved short-term and long-term forecast accuracy. We helped them implement an Oracle Demantra solution that enabled the client to continue reducing costs through improved forecast results. Targeted results 18 months after go-live included a 15% increase in forecast accuracy, inventory value reduction of 3% and safety stock reduction of 10%.
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.