Outpace Change with Oracle SCM Cloud: Oracle OpenWorld 2019

ladies gell-mann please welcome to stage Rick jewel Oracle senior vice president of supply chain and manufacturing applications thank you thank you that was a great and little scary video but I think it's that it's it's very true the time is now for the Oracle supply-chain cloud and for a lot of the reasons that was in the Alex video we have 90 minutes together and again thank you all for coming I trust many of you are coming from the Larry session but well we have 90 minutes and we have kind of an action-packed 90 minutes to go through have a chance for me to talk a little bit about what we're doing and why it is time for the supply-chain cloud we've got four or five customer videos that we're going to show of our great customers who are doing work and what they've accomplished and the benefits they've accomplished I'm gonna have a couple of people from Deloitte come up and talk about what they've accomplished with some of our customers having Brandon from Titan international come up and tell me tell you his story as to what he has done with our applications in concert with RIT Oh applications and still have time at the end to do a demo of our brand new user experience called redwood so hopefully we can fit that all in and so let's get rolling so why transform and why think about the Oracle supply chain cloud why digital you know and these are just some quotes from people like McKinsey and others but what you can gain by thinking about a digital transformation you know you can gain 30 percent productivity and cost savings by going through a digitization forty percent and even more manufacturers are going to release a product as a service this year and if you aren't thinking about releasing products as the services you're already behind twenty two percent reduction in time for new product development and a 20 percent reduction in inventory due to the better looking at syndicated data and looking at other things that are available now that they can be brought into our planning systems to make for lower cost of inventory better forecasts than the light so a lot of very compelling things and compelling reasons this asks the question is your on-prem systems in the way I would put to you your on-prem systems are the biggest hindrance to you being able to digitally transform your organization it is a fact current on-prem systems are terribly fragmented and are barely able to even encompass the business processes that you have today much less thinking about the business processes of the future then there's what we call technical debt of which I think the 70% estimates probably low but the 70% of your IT budgets that are spent on maintaining the hardware maintaining your custom systems maintaining the customizations that you've built on top of other systems basically keeping the lights on in the organization and seventy percent of your budget is being used for that purpose and then lastly the general feeling and again these are surveys that were done in opinions but the inflexibility to really move forward to get into servitization of your products and the lack of flexibility for you to really be able to bring new processes new capabilities and thus generate additional revenue is very very difficult if not impossible because of the nature of the on-premise systems that we have today speaking of which here's the first of our videos again one of our great customers tricks on clev who have taken advantage of moving to the supply chain cloud to really come out and change their business change their business model of course they are continuing to sell to golf stores and pro shops but now they are they've gotten into a custom Club capability golf clubs specifically built for you direct consumer so let's go ahead and play this video please let's fix on Cleveland Gulfport golf club manufacturers they're also a ball manufacturer our golf clubs are worldwide known we have a full complement of products domestically we have about 6,000 customers and we're doing operations in 26 countries around the world 20% of our business is the custom products we offer a lot of product variations to the consumer because we have so many items it's a little difficult to keep all of them in stock all the time before adopting the auricle our problems were really being able to promise accurate dates to our customers it just was a tough ordeal because customer experience never had accurate information that they can always rely upon but with little more promising we were able to spin up our orders a run through their processes and within a reasonable time come back and have gates that we can give our customers that are proven to be reliable the instant results that we received and the comfortability that our dates are accurate that's a comfort to us that we haven't had one thing that we're really proud of right out the gate of our plantation is we've already seen anyone a half percent increase in our on-time shipments the integration gives us tools that we never had before and without the tools and without the progress that we've already seen we would never have that opportunity to go forward having the name Oracle behind the product definitely gave us confidence to go into a product that we knew we could trust in [Music] so the cost of not changing and the cost of not transforming is getting higher and higher every day and we use the old adage that those who don't remember the past are doomed to relive it well speaking of that only 60 companies that were in the fortune 500 65 years ago are still there at this point in time 50 years ago the life expectancy of a fortune 500 company was 50 years now the life expectancy of a fortune 500 company is 12 years and diminishing and the fact is is that the reasons why and why it's so rapidly accelerating is that as technology change happens so must business change and as business change supply chain is the most impacted by that supply chains deliver the products for the business model that you're running and you change those business models supply chains need to react immediately to that now that said I think everyone would agree that technology has in the last 10 to 20 years has probably changed more than it has in the history of man so the fact is is that technology is driving these changes and continues to accelerate it's imperative that you keep changing your business model and keep moving and that basically you have to get into a mindset that you continually innovate or you will be one of the ones who fall by the wayside again another customer video Broadcom who has taken advantage of our cloud capabilities they saw the need for a digital transformation so via acquisition they decided to change their business models into more of a product as a service business and through acquisition they are accomplishing that but at the same time building an infrastructure and a platform then that will scale for future acquisitions and future evolution and innovation so can we play this video please welcome designs manufacturers and delivers products for the wireless and wired communication sector covering stuff you see in smartphones to data centers before broken acquired rocket communications Broncos largely a company that designs and manufactures semiconductor components this is a business the CEO intends to grow so it needs to scale obviously a manual way of handling this is not going to work brocade has a line of business that Rock'em didn't have in a big way and that's talking about services services requires a different way of recognizing revenue or the books we chose Oracle revenue management cloud because we needed to be compliant scale and we needed a system to be cost effective in the long run after the brachot accretion we acquire completed associates which is largely 100 percent on software and services so because of that it had not implemented Oracle revenue management cloud then we would have to cable be there to be able to support it but when you come to dealing with a piece of equipment you're looking at equipment with 400 over different components that goes into it six sub assembly levels we a product like this you're gonna need a way to manage changes for its entire lifecycle we implemented the product life cycle management cloud so far he has met all the objectives that we wanted to be on implementation engineers need this kind of information t under to know when debating a change was the across the breadth of the products that you have PLM systems that we need to accommodate more for Rd ingenious but yet you want a system to enable the Rd to be able to do the job if it should leave the PLM process is much better I have a solution that can scale can handle products of complexities from high-volume semiconductor chips to complex devices with the Oracle solution in place we are positioned to scale successfully for orders which accusations so going back as I close up this first segment you know back to that 70% number of your budgets back to that boat anchor that you have and you know how can you really benefit by getting rid of this technical debt and I think it is reshaping reorganizing refocusing one going after best practices that are built into our software as far as 21st century business practices and adopting those best of best in breed practices if you will and get rid of the high cost customizations that you have done tom perm software secondly is really refocusing you know no longer have to support Hardware no longer maintain the software we do that for you and refocusing the IT organization itself on continuous innovation and I see many many companies that we work with as they go through this evolution making significant change to the IT organization much more business analyst oriented much more change agent oriented directly into each of the business units and driving innovation and driving change throughout the organization rather than just maintaining that boat anchor and similar to the Broadcom situation being able to really unify and align the entire organization the entire enterprise around that common goal that new set of business models and a willingness to continue to evolve to new business models as you will need to to continue to innovate to remain relevant wanted to give an example of what I think is one of the best examples of shedding that boat anchor and that's Western Digital a company here in the Bay Area for those of you on the where Western Digital a short-timer well a few years a couple of years ago acquired HGST and SanDisk making it now the the largest disk drive manufacturer in the world both selling to enterprises as well as direct to consumer thumb drives and the lake this was a situation of three companies of equal size now merging together to be a twenty billion dollar company they chose to shed all of the debt associated with once these acquisitions were complete they had six or seven ERP systems ebusiness suite sa P plus others they knew that if they went after the approach of taking one of the sets of systems and one of the set of business processes from one of the companies that they would have to transform two-thirds of the company and in fact would not set themselves towards the future to their credit they saw the need for a digital transformation for an entire business transformation for the new Western Digital so they decided to transform three thirds of the company and so they are on a journey that will end in late 2020 where they will have migrated all of their business processes created new business processes on a single instance of the Oracle cloud and will be able to jettison all of the ERP systems that they currently are running so a tremendous case of a huge amount of dollars being able to be shifted by bringing things to the cloud and shifting that money towards the consistent and constant innovation that they will have going forward with the company so with that I now would like to transition and ask for Adam and Jeff from Deloitte as well as Brandon Weber from Titan to come up on stage until some more about some of their customers okay all right good afternoon I'm out of muscle Melly I'm responsible for a Deloitte supply chain practice thanks for having us the world's changing rapidly knows no surprise to any of us and I'm reminded of that actually every Friday as one of my sons who happens to be 17 no driver's license no ambition to get a driver's license happily jumps into a stranger's cars with his friends waves goodbye and goes off to whatever they're gonna do hopefully safe Friday night and moves on openly flouting the rule that I think many of us grew up with never get in a stranger's car and we see that all the time in the ways we work I like to call it boundaries are blurring when I can go online and order a car to the component design it to the specifications I want have it delivered in the manner of I want who's the producer and who's the consumer in that situation if I can outsource in the supply chain virtually any part of it and gain the economies of scale or scope that come along with it what's the difference between a large organization and a small organization and in today's world who makes a better decision at any point in time a human or a machine or some hybrid of both perhaps the biggest boundary that's blurring is that digital and physical world where today off a shop floor I can take high-frequency data create a precise and accurate digital twin that can turn that data into information an insight where I can change the way operators work at any point in time driving business value what I like to do over about the next 15 minutes or so is just share how we see these boundaries blurring changing supply chains and then a couple of case studies or vignettes the term use case is popular today of what we're doing with clients in that space if we look at the supply chain I grew up with what you see on the left a linear supply chain consisting of multiple different nodes where as an operator you know yes we always thought about upstream and downstream impacts but really what we did was thought about optimizing within our own node and when I first walked into a factory in my early 20s one of my mentor said to me listen kid as long as you plan the work and then work the plan anybody from supply chain will recognize that things will be just fine here but today when we can see at any point in time because of those blurring boundaries what's happening on a shop floor or in some sort of logistics transformation mode or across the entire supply chain and through a derived alert recognize a constraint and then resolve it by redirecting some material flow around it where does planning end and execution begins those nodes are collapsing upon each other and when they do we think you wind up in what you see over on the left we call that a digital supply network where you can see end to end so you have visibility across the entire thing you can proactively manage your material flow and services across that digital supply network you could connect into your suppliers digital supply networks and into your customers D SNS as well and importantly you can decide at any moment or any point in time who the best resource is to do some form of work could be a machine could be a person could be a combination of the two and because of that you can make now network optimize decisions versus just node optimize decisions in the old world an important component of that and as you can see in the middle of the DSN is this notion that we call the digital core consists of six different components that I think everybody in this room would recognize and the important point to this is a lot of times when I get in supply chain discussions with other operators we talk about data and the importance of data and data is important but it not just about the data it's about your ability to collect it integrate it analyze it and then through that consume it in a user experience that allows a change to happen when a change happens you could do things like this so here is an example of applying some of what you've heard so far today in the context of suppliers procurement inbound logistics in shop floor the general challenge this particular client had is they bought about half a billion dollars in a given year of resin commodity product right generally the way they thought about it is they weren't going to do any better than the market it's a commodity so the name of the game was let's just bring in the resin so we have enough to make our finish good product if you look at the two pictures with the blue shading in in the middle of the page there it will tell the story of what happened they had something like eight hundred thousand variables to think through in order to most optimally buy the resin and three million constraints that's too hard for a human to figure out so what do we do we simplify and if you look at the left hand side of the page you'll see there seems to be a pattern the blue boxes represent that resin was actually bought and delivered on a given day the intensity of the blue boxes will tell you how much and the red lines just represent week mark offs and if you look at the left hand side you can see more or less a pattern because what the procurement people were doing as they thought through that supplier through factory supply chain was they were bringing in even amounts if you look at the right hand side when you put together components of the technologies we've been talking about and created some machine driven insight you'll notice a much deeper intense blue bar on the right-hand side of that chart and that's because ultimately the AI said the most likely scenario after having run about a thousand different scenarios is prices are going to go up over the next couple months and what we're going to do cause of that is we're going to drain storage over the course of this month and then we're gonna buy a whole lot at the end of the month when you can start to make decisions like that through the use of technology you can generate some of the results you see below here's an example that takes into account inbound logistics DCR warehouse operations outbound logistics and in this case stores similar challenge organization has thousands of stores hundreds of distribution points multiple different modes and ways to get out to those distribution points and in any given day of course out of a store goods are bought into a DC or a warehouse goods come and somebody is trying on any given day to balance up supply and demand and then figure out how do we get the goods out to the store well again too many variables for a human to solve so the way that problem has been solved in the past is what I would call static routing each week on the same day a truckload of stuff leaves some particular DC and brings it to the store based on what's forecasted to be sold whether or not that particular store actually needs those goods but what if on every day we can look at the entire network and understand exactly what's in store exactly what's in DC understand what equipment we had to deliver to those stores and run through a series of algorithms to say here today is the best exact way to replenish those stores I would call that dynamic routing and that's exactly what was set up using multiple technology components here and you can see the impact both on logistics costs and asset utilization which is basically maximizing out your trip the trailers and just an interesting anecdote here the system is able to pick up things as precise says you know what if we load up the truck this way it's 24 pallets which is almost a full trailer but if we do it this way just with better math it's 26 vision analytics or computer vision as I like to call it so most of the data in the world is unstructured right what do you do with that and how do you use it and as an operator you go into any manufacturing facility in the world people that have been in there will be able to say things like that piece of equipment doesn't sound right or that across the way they're on the shop floor doesn't look right what we're trying to do is replicate those senses but in an Augmented fashion with technology say you can create for somebody like me that grew up in the 1970s bionic men and women that can do their jobs better in this particular case the client had there were capacity constrained and they had problems getting to desired output levels with their machines but they didn't know why they weren't having catastrophic failures they didn't have maintenance people out there for a week breaking down equipment they just weren't quite getting there and they had this notion that they were getting a lot of micro stops 30 second problems in production two minute problems in production maybe ten minute problems in production the type of thing that often isn't logged and recorded and therefore you can't do a root cause analysis around it and solve it the answer was let's put a camera on it and using homography and other techniques let's understand when the machines are working and when they're not what they're producing from that unstructured data create a structured data event log that can then be sent into the cloud and can be analyzed which is exactly what happened in this particular place and when we did that you can see the results I should also say particularly on the shop floor a lot of us have old controls equipment that may not be networked may not be able to be networked so using some unstructured data solved like this and combining it with cloud technology is a simple and effective way of getting after those micro steps and then lastly let's walk into the the fun world of engineering and design and in manufacturing and procurement but center of the plate engineering here we have the classic problem of too many parts and because there's too many parts if you're building something Engineers kind of don't want to deal with that and they just reinvent the wheel and build something kind of like they had last year but new from ground up this particular client had seven different systems 18 different commodities they were looking at spending about half a billion dollars over the course of a year and importantly over 200,000 unique items and they desperately wanted to be able to leverage that procurement power that all of that money represents with their suppliers but they couldn't because they were fragmented and they wanted their engineers to be able to reuse those components versus always buying a new one right so they could speed up their design cycles too hard for a human to solve that the answer was let's be able to digitize some analog drawings that we have using a series of technologies and then let's put clustering algorithms on top of that so that now we can understand and identify like parts as well as near like parts similar form fit and function so that we could dramatically reduce the number of parts we have up out there increase the reusability and get some of those direct material cost savings that you see there I think what we'll wrap up with here is the you know we've been talking about boundary blurred boundaries blurring I think the biggest one that is blurring right now is really on us here in this room and that is classically as I started my career it was IT working with supply chain side by side but it divided that's coming together and when we want to generate results like this it really is incumbent upon us to recognize that blurring boundary and do this together and with that I think we'll roll the next video in this facility we manufacture the wheels for agriculture earthmover construction equipment anything off the road and customers are expecting a lot more out of us than they ever have with cost improvements system improvements quality improvements our biggest issue was inventory availability into our SAS service parts were coming off the line at a very rapid pace and we could not get them reported into the system at a timely manner it may be an hour or two hours by the time somebody can manually put those in which prevented our shipping processes from being done in efficient manner the most important criteria we had when making a IOT solution selection was that we wanted a package that was going to grow with us everyone's something that was maintainable and upgradable not something that was going to be custom application immediate benefits that we've seen from implementing IOT include timeliness and accuracy of the inventory we chose Oracle because we have multiple systems across our enterprise so we had perfect visibility to what was going on within our businesses and when we looked at what we wanted to do Oracle was making a huge investment in the cloud technology and it seemed like the best solution for us we selected Deloitte as our implementation partner over time they've become part of our team with the new ERP and SEM installation we have seen a faster response for getting data for our own analyzation more real-time data for shop floor transactions digital workflows we are able to have those now our inventory is more accurate and more available in a more timely manner so we can better support our customers going forward well we're going to take this now and move it to our other paint lines within our facility and this works as a perfect baseline to get that ready to go and to move that into our North American Tire facilities hi I'm chef Croxon I'm with Deloitte I lead our supply chain cloud practice and I was actually part of the team that that delivered the Titan project so we're very excited about this video I'm gonna go ahead and kind of introduce the Titan in case study and then I'm gonna turn it over to Brandon from Titan actually go a little bit deeper what I always like to tell people is that you know Titan is really a great example of someone who's embracing the digital supply chain journey about two years ago Titan decided to go all-in with the Oracle ERP and SCM and EPM cloud and then they went live in November of last year and what Titan has done is then taken that core ERP SCM cloud fan date Foundation and really used it as a springboard to take advantage of digital disruptors such as our PA and and IOT as we just saw in the case study there which is really the the way we describe the journey you know recommendations for all each of our manufacturing clients and so we're in the process now of now that we've got the ERP foundation up deploying IOT as well as our PA to help out with some of the regression testing and then Titan has additional aspirations to deploy that solution globally and then further take advantage of the additional digital disruptors available in the Oracle cloud so that's a little bit of a high-level review now I'm gonna turn it over to Brandon to kind of go deeper into the Titan story awesome thanks Geoff so you're three or four days away from the plant you kind of miss it so it's nice to see the video kind of where home is so that was kind of nice but thank you very much Jeff it's it's been a great two years but it's come with blood sweat and tears you know Titan about a thirty year old company started at Quincy Illinois at the wheel facility has grown into two billion dollar international wheel tire assembly and undercarriage company and that was done with blood sweat and tears now we're just adding a little bit of the cloud in there too so we're really excited about it's been it's been a great great two years and especially the last ten months has been rather exciting from the supply chain instance so I want to I want to over this real quick we call it project mosaic we have a nice mosaic picture and it has one little piece of the mosaic that's missing of course that represents everybody that's going to be touching the project and bringing everything together and so we call project mosaic you may see it out there in some of our presentations some of our t-shirts some different different things but what I wanted to talk about here is the reasons why and I want to dive into that left column okay the stuff on the right it has a lot of the fancy words you know I'm I'm a Midwest manufacturing guy and I started with GE I went to private equity and I've been with Titan for about four years so for me it's very simplistic it's it's it's a supply chain you buy it you ship it so that's why I'm gonna go through the left side feel free to read the right side and I'll touch on those but we're gonna go into the next two slides that will explain it further so the reason we picked Oracle cloud and we interviewed a lot and we were on the phone calls a lot and we went to different customer sites and other software sites a lot to find finally lando Oracle cloud but we had to create a reason why we're doing it we're just not going to go spend this money in this time to to say hey we did it what are we going to get so in the industrial world you have to make leaps especially being an OE supported supply chain we have to work with the John Deere is the case the Kubota is the big guys and if we don't have a structure and infrastructure that supports that eventually someone else is going to do it so we had to look at where we were and not look at tomorrow but we had to look way down the road so we created these business drivers down here you read through those E's and you start reflecting as I was getting these slides from Jeff earlier in the week reading through there and saying how are they running the business if they don't have financial visibility if they don't have data for decision making I want to say a caveat here we had that stuff but it was the blood sweat and tears to make every single one of those happen okay so financial visibility across the legal entities being a global company how do you roll ten fifteen ear peas up every month every year with a lot of blood sweat and tears that's all there is to it data for decision-making took a long time Adam talked about going to IT I know I've called IT and Stacy who was in the video many times hey I need this data hey I need this data when can you get me that data I don't have to call him anymore I don't know if he doesn't want to talk to me anymore but he doesn't independent and non-standard systems across the site I talked about the different ERP systems they were all over the place master data structure we had master data we had item masters we had supplier masters we have customer masters and those were pretty tightly controlled but as those in the supply chain that have dealt with the vendor master when you're trying to do things like city state zip code and then trying to figure out how you take an international format of an address and put it in a us-based system it's very difficult to create governance you know capital capitalization versus no capitalization these are little things but they make your data very very difficult okay so we have the data before it's just cleaner now barcode scanners we didn't have any with our implementation we added over 400 mobile devices to our 80 acre campus in Quincy manual supply and demand planning same thing okay it's it's replenishment right it's Kanban okay it's MRP and lead time safety stock etc but it was all done with planners in their head with tribal knowledge you walked in an organization hey how much of this do you have I don't know let me check the system that was a constant discussion all the time now all I do is look at the data in the KPIs and say hey why is this high why is this low and I think they got kind of get irritated I can see it now but it gives us a better result from a business business standpoint the site based finance operations of course if if and when I guess more win when we have global Oracle cloud you're talking about centralization of payables and receivables do you need a R and a P in every single location okay all of the blood sweat and tears switches because it's odd its automated inventory visibility this is my favorite one people talk about inventory reductions it always gets my attention but when you look at the the inventory you can see it now most people can say send me an on hand report by cost x quantity sum it up in Excel the problem is is we couldn't say where's it gonna be at the end of the month the end of the quarter the end of the year because you have n announce you have demand on on customer orders you have POS coming in it was always up and down so it taking about three days to run it three individual reports cross-reference them and then by then that date is outdated right this moment from my cell phone I can go in click on the supply panel plan and look where we're gonna be at the end of this month for a raw material inventory big deal especially when you get phone calls from your boss plant maintenance visibility poor sales order and tracking capability and the rework warranty all those are the things that are on our vision that made our business drivers we've done some of that but we're not we're not through all that yet we can see the customer orders and it used to be the old at the old call shipping I see head nods because that's that's how it works where's this order call the supervisor call shipping okay it's in the cloud now we can see it so I wanted to spend most of my time on those business drivers because we have truly executed in the last two years to go from there if I jump over the objectives I'm sure you guys read through them those are all the things I kind of touched touched on so let's let's take the before and after that I just explained kind of holistically of the whole thing and let's look at one solution overview that we put in the Texas kind of small so I'll go I'll go by color it's easier so the the first two green with Orrico SCM cloud you can see on their work orders being created in the cloud load sheets being created so they can make make the product in the shop we have with IOT we have a middleware if you would that's referred to on there is ignition so we still have some some integrated Excel uploads there touch list but they're still Excel uploads to load those up four or five and six you can see have an asterisks its Phase two for us so the one button complete or reject RF smart who is our our mobile technology partner printing out product labels on the fly instead of having to put them on the hook or lose them or pass them from the end of the line to the beginning of line in real-time production status actually having those displays those KPIs and of course the end result is that are the last two which we've seen in both the videos end up here how do the production managers see that very quickly so they know when things aren't going right and they can solve it okay so all the IOT and everything that we've done we've still got more coming and I think that's probably the most exciting part about this transformation for Titan is it's not hey let's fix it let's put it in place and now we're done okay it's a truly a continuous improvement last one here is just is the connected factory it's taking it on to that next level same color coding you got sensors you have data you have preventive maintenance prediction to do the same thing so our Miss machines stay up so the previous slide that I talked about can happen faster so I'll wrap up and I'll turn it turn it back over but all I want to say is with Oracle cloud with Deloitte RF smart we did Chronos we did you know the ignition we've got a lot of partners in here and you know I'm very excited being a Midwestern manufacturing kid to actually transform this company with the help of all the Titan team that's here and everybody I mentioned to move it from 30 years old blood sweat and tears running it on a green screen to basically open endless possibilities now with the cloud so I think I turn over to Rick thank you [Applause] great stories thank you and thank you Brandon that was that that was great okay let's keep talking about you know why is it time for the supply-chain cloud I hope Brandon's comments was one reason for it but some of the things we're working on and gets you up to speed with what we've done lately and what we're looking to do in the future first just from an adoption perspective and what we're seeing from customers adopting and our partners helping customers take on the products and the like some of what we're doing from a functional and industry perspective and then what we're doing from our perspective of continuous innovation for you our customers so talking relative to the adoption you know much broader adoptions much faster and certainly much more predictable now with the work that has been done by our great si so first we're 2,700 supply chain cloud customers and Counting of which over a thousand are live on some components of the supply chain cloud we have over 10,000 consultants certified and trained in the supply chain cloud applications so ready to help you implement the software from a number of our great sis it's reached an increased plateau of maturity relative to implementation paths and quick start templates ways to implement the products in a very rapid fashion by just leveraging the core 21st century practices and implement them and a very rapid value add sort of a capability and then Oracle and Deloitte and other sis have all developed tools and methodologies that will allow it to become much more predictable and basically to have a low cost and and a very low-risk implementation so again from when we talked a year ago at this time or at Mountain business experience we've reached another plateau as far as level of adoption ease of adoption and part of this is the beauty of the modularity of these applications and those of you who have heard me up here before you'll hear me talk about Web Services and rest api's and our philosophy for building those first even before we build the UI itself and that philosophy is paying off it allows these products to be integrated with other products that you may have but it also allows you to select your path as to how you want to move to the cloud there is not one and only one approach to doing such you can take any product in any fashion and the important element there is find the value and use those products initially and not wait until a long time at the end when you finally achieve value and benefits from the system so some of those paths that we have seen you know taking specific areas like planning like transportation like our great WMS cloud product PLM any area and and do that initially now we at Oracle obviously believe that the end goal is a complete transformation and by getting all of your operations all of your functions to the cloud is where we believe you will gain the biggest benefit but by going through this approach you can make for quick wins quick value as you step through the processes but getting to that end Enterprise transformation we've also seen models that are supported by our SI partners of going after a division first use that division as a model and a template for how then to address the rest of the enterprise so make the decisions in that division not only for the right for the division but then what is your overall global chart of accounts going to look like what is your logistics network going to look like what is the overall architecture going to look like and leverage that and do that gaining value by bringing up a division but then setting yourself up to get to the full enterprise transformation then we even see customers and again there are models the support at who start off with an edge if you will approach then move to a divisional approach and then move to the enterprise transformation and then there's certainly what some customers have done like Titan like Western Digital as I mentioned like Oracle ourselves where we've just gone directly into a full enterprise transformation and transformed our entire business the key point here again and what is unique with these cloud applications compared to competition is short cycle projects value gained and every single one of those projects and every step along the journey rather than the end of the road Death March I mean there are no more multi-year death marches although I would argue s AP hasn't quite figured that out yet but we do not believe that the multi-year Death March is the way to implement systems and supply chain systems and it is working for our customers talking about some of the the functional and in the industry enrichment and new functionality that we have added and will continue to add first being processed in mixed mode manufacturing in 19 B we released fixed formula manufacturing support for co-products bi products things like that and we've done it in a model of inside the same organization to enable true mix mode manufacturing so the ability to blend and mix certain products while you can also assemble and package those products both process functions as well as the street functions all operating on the same data model the same UI the same structure thus that you can do that in a common organization you can leverage all the intelligence and the machine learning that we've already built and provided you can leverage the quality that closed-loop quality capabilities that we have for issue 2 resolution and then by leveraging our the planning capabilities which we have targeted for 19 D 20 a timeframe and our planning applications for constraint based planning to be able to work around material and resource constraints and then to provide flexible sourcing and flexible manufacturing approaches whether you manufacture it or you let someone else manufacture your products and we are continuing on this journey to provide more mixed-mode more process functionality as well as from the mixed-mode project capabilities project capabilities I think what is interesting to me having been in the supply chain business for quite a while projects are no longer just for a and D anymore every customer seems to have some part of their business that they want controlled by projects and I think it is the collaborative nature it's the it's bringing products as a service to market it's the servitization of things that you are now creating contractual relationships and contractual obligations with your customers and people want to control those bi project and know the actual costs associated with it have you know consistent approaches with each customer and be able to live up to the obligations that are now part of today's contracts so with this new capability and we're you know the execution pieces coming in 20 a and planning shortly thereafter but full business flow support for projects be able to create and manage the initial project as they say be able to plan bi project using project specific resources and materials as well as pooled supplies everything is striped for your project work so project and task striping on all entities on all transactions throughout the process maintaining project integrity within your enterprise and then bringing that all back into our cost model and back into our projects capability to no actual costs actual transactions actual activity and then in turn be able to provide progress Billings if that's appropriate or project related Billings back to your customer so some exciting new functionality that I anticipate everyone using in some way shape or form available very very soon another area that is becoming the norm in this time is Channel revenue management the ability to support and control customer rebaiting customer promotions discounts and the like again coming from the that's new coordination this new collaboration and contractual obligations that are more and more in the 21st century between you and your suppliers you and your customers and the like we are developing this in concert with one of our great distribution customers and working initially around supplier ship and debit so the ability to create the initial agreement track the accruals that come in via the orders submit claims back to those suppliers and then the offsetting debit memo in the system as I say eminently available is supplier ship and debit support but then the plan is to extend that out continue to build it out to support both the buy side as well as the sell side and then I've mentioned planning quite a bit and our planning cloud products have advanced significantly since we talked to last and you know these first three areas all coming in the next couple of releases 19 D and 28 so first constraint planning I already mentioned this is so seated with process so the ability to work around constraint resources constrained material in accomplishing your plans capacity constraints replenishment planning be able to set the policies and then automate the actual replenishment activities backlog managment defining the order schedules in the situation where you need to deliver products to multiple different customers and living up to the commitments contractual or otherwise and obligations that you've made to your customers but having full visibility into your order backlog and being able to plan accordingly so that you can keep every customer that you have satisfied and then lastly production scheduling as I indicated constrained replenishment and backlog management coming in the next couple of releases production scheduling coming later on in 2020 but what's exciting for us there that will be built in the Redwood UX paradigm so talking about planning let's look at another customer li destri who is leveraging our supply chain planning clout to provide benefits to them themselves as well as some of their they are an outsourced manufacturer for a number of other customers companies and so the benefits that they are seeing so please play this video being a food producer we have to provide traceability from where that ingredient came in from the field to when it came into our plant - what jar we put it in pedestrian manufacturer of food beverage and spirits we bring in other ingredients we cook the pasta sauce we fill it in the containers really soup to nuts ATLA Destry our supply chain is actually very complex and really is a lifeblood of being a profitable company we start out with a lot of fresh ingredients a lot of you have a short shelf life I'm in a matter of days sometimes so it's got to be an exact just-in-time process to produce the materials we need with as little waste as possible using Oracle we're able to trace all our ingredients right to end product with Oracle demand management cloud we've been able to reduce our inventory through increased visibility and better forecast accuracy but even a bigger deal is really sustainability we hate to throw good products away and by having accurate forecast we've been able to reduce disposals by more than 50% saving millions of dollars a year one of the things I'm most proud of is really our track record with never having a recall majority of our production is for other people's brands so there's a trust that we have to build with that customer they are giving us their livelihood and they trust us to produce products that are worthy of their brands we've built a trust with our end consumers and with our customer base it's a family business it's been run like a family for more than 40 years Oracle is one of a larger the district family okay that's how it would talk to a little bit about the the functional and industry work that we're doing let's talk about some of the other innovation that we're doing first in something that we announced this week at open world is the availability of the Oracle Business Network so again something that would be available for every single one of our customers a central hub to enable b2b messaging and business the business transaction between you and your suppliers we already have over 10,000 suppliers loaded into the Oracle Business Network both doing indirect as well as direct procurement capabilities and uniquely unlike our competition we have no interest in monetizing this there is no charge to use the b2b hub and use Business Network and basically easy one-click connection easy onboarding of suppliers we have we have suppliers now lining up to onboard themselves as well as our customers being able to onboard if they aren't there already the suppliers that you have but then one-click connectivity fast and easy immediately be able to do business transactions and if you already are using a third-party network and as we know there are many industry focused networks leverage the Oracle Business Network and our integration to some of these third-party networks to be able to do business in that fashion so available now is all everything that I just talked about so focused right now is around procure-to-pay but expansion of the number of transaction sets that we will support and bring it to a number of other processes including the sell side of things so a very exciting announcement a lot of work that we've done to bring this to bear and something that again for free you all can leverage by simply becoming a customer in our cloud IOT we continue to advance in this area we have uniquely built applications for IOT no one else in the world or anywhere on this planet has built out-of-the-box fit for purpose IOT applications everyone has a I ought form as do we but we did not stop there we want we build applications we build business solutions so we have five fit for purpose IOT applications pre integrated with the supply-chain cloud out of the box immediately adding value and asset monitoring production monitoring fleet or geofencing you know a third party fleet if you do not operate your own as most don't worker from a worker safety perspective and then after market service monitoring out-of-the-box fit for purpose immediately available integrated to immediately begin to spot trends to define and detect anomalies to then make recommendations in the form of events back into the supply chain cloud or creating a maintenance work order if they give an asset or machine is about to have problems based on the anomaly detection but then eventually not only just preventative but predictive maintenance capabilities leveraging our machine learning algorithms some of the areas that we have and are continuing to expand in available soon in the planning space is segmentation customer segmentation supply chain segmentation recommendations based on activities based on external data based on historical data as well as defining AI based forecasts for new product introductions something already available in supply chain cloud in manufacturing detecting anomalies from the production and quality perspective identify work orders based on other activities going on the the given asset of a quality of previous runs down a given production line identify work orders at risk also already available and currently being leveraged by companies like Titan and others is the maintenance and service logistics so as I say predictive preventative maintenance automatically generating a maintenance work order for a given piece of equipment to be reviewed and potentially resolve the issue and then in transportation we've already provided ETA estimated time of arrival based on AI techniques and predicting that but looking to extend that into enriching and refining the actual lead times that you maintain in the system and with our IOT team working with our warehouse management cloud team getting to automated dock scheduling capabilities leveraging fleet monitoring the vehicle to do that to automatically have the warehouse set up and available when the truck literally the minute that it arrives so a lot of things continuing to happen around ml in this space IOT is very closely tied with our blockchain capabilities in that we build applications so it seems like every tight Ekpo knee in the world has a blockchain platform we did not stop there we built a fit for purpose track and trace blockchain application I I know of five or six we announced this product April I believe and I know of at least five or six proof of concepts that are going on now from variety of customers I have learned a form or proof of concepts in the last two days that are going on with our blockchain track and trace applications so we think there is you know obviously people are interested people are trying to explore and we will see what what value it can provide but just along those lines let's play this video please this is Steve Steve made this beer in this week you made it four hundred and sixty thousand eight hundred times these are Steve's four main ingredients they come from eight different sources and went into four different machines they were monitored for temperature and pressure when the beer was ready he put it on a truck actually five trucks each took a different route some did five day trips others took single multi-day runs 16 routes and all at the end of their routes they delivered Steve's beer to 16 different wholesalers then the wholesalers sent Steve's beer to retailers 1723 stores and all at the stores they were bought by customers seventy one thousand six hundred and fifty four customers and seventy one thousand five hundred and eighty two of them liked it but some didn't exactly sixty-two didn't and figuring out why is Steve's job the problem is while the journey of any single beer is simple the journey of many is complex really complex and figuring out what went wrong and where and how is hard unless you're using Oracle's purpose-built track and trace app for supply chains Oracle intelligent track and trace takes the complexity out of supply chain logistics using blockchain technology to track the movement of every ingredient every step in the brewing process every location every route and every handoff with alerts and other data from connected IOT devices at every stage of every beers journey from the fields to the store which is how Steve figured out where the problem was what it was and fixed it so now he can really get down to business [Applause] [Music] so blockchain very exciting space and you know I think we're learning with you as to what the applicable occations can be around this and just where blockchain goes but it's very exciting and then one last area before we get on to some of the demo that I spoke of earlier so the Oracle analytics for applications you know our vision for this is to have a hierarchy of the key supply chain metrics with costs to serve and the perfect order and things like that being at the very top of the hierarchy but then the ability to drill down into domain-specific dashboards and provide more analytics more KPIs within the domain specific areas as you can see them across the bottom as we have planned them out but this is an initiative across the board we certainly understand that once we have pre-populated this with information relative to our Oracle cloud applications we will be expanding that with with unstructured data and things coming from IOT as well as third-party feeds into that but again a data warehouse for you to be able to leverage in the cloud it would again be you know pre delivered connected to your instance ready and available for you to be able to be migrating data into the new data warehouse available from Oracle and initially around the supply chain space we are starting with procurement procurement spend areas order management fulfillment things like that but we will rapidly move through the remainder of the functional areas so with that I could take our next break here and and have Jennifer and Diego talk about recall management and I guess real quick before they they come up I just want to say that you know this is the use case here in the example is a healthcare provider recall management use case I realized that not everyone in the audience comes from health care provider come from other industries and the like but I would ask that you just watch this watch this demo from the perspective of the concepts the capabilities the paradigms that Jennifer and Diego will present and just imagine how this new UX can operate within your business processes and your business flows at your company so with that I'd like to introduce Jennifer and Diego oh thank you that was a great introduction hello everybody I'm Jennifer Dharma I'm heading up design for SCM and on stage with me is my colleague Diego Pantera neva Haas did I get that right you did a great press for the last hour to get that right so we had a plan if she couldn't not remember that she was going to reduce me just by Diego and I was going to finish the sentence so she did it awesome so what I wanted to share with you today is a demo before I get to that I wanted to give you a quick introduction to red one and I think at this point of the conference it's more of a recap of redwood we are as you can see as you're walking through the conference today we are having a design moment with a completely new look and feel we are in the midst of creating an entirely new design language and applying that across all of our cloud-based products and in doing so this gives us the opportunity to reimagine our user experience and as we continually aim to improve and bring best-in-class products to you so that's what we've done today so why recalls what I plan to show you and as Rick mentioned today is in the healthcare space and I know that most of you are not in the healthcare industry but we decided to start there because we thought that it's a great opportunity for us to identify unique use cases to help us drive innovation and ultimately bring back to you and all of your industry so with this in mind our healthcare customers have told us that exception management is one of their biggest pain points exceptions such as how do you resolve for a partially filled order or a backorder or inventory that's expired and within exceptions recalls was one of the biggest problems so that's where we started that's enough context it's get going so we're at a hospital let's call it supremo healthcare for now a supplier has recently sent in a recall notification now that can come in in many ways through digital forum through good old paper snail snail mail a document that's manually input putted or integration with notification systems such as rasmus that's used in the healthcare industry so once that is inputted into the system then we go to work in this case there's an inventory manager who receives a notification from Oracle here he's receiving it he's going about his day he's using on his mobile phone we push a notification to him he sees that there's a notification and we take him right into a text message where we can show him that there's a recall it's class two that gives him the opportunity to decide if he wants to take care of that right away in this case he wants to see more information about that so he clicks in to see more information and we take him right into a conversational UI and from here we start to assist him in how to resolve this problem from here he can see a brief summary of the recall including locations that are affected and the total total quantity that he needs to go and find and pull in this case at seventy-six boxes and our digital assistant starts to help him so how can I help you with this you can find a substitute or show affected Lots in this case inventory manager selects find substitutes and so from here we scour inventory that is on hand and have found that about half of the quantity is on hand so we're smart enough to understand that that's not all that you need for a substitute so we go and find a preferred supplier in contract that has an approved substitute that we know has available stock and we ask would you like me to add this to the order requisition so the inventory manager says yes ok I've added the item to the order requisition would you like me to notify the par counter so in the healthcare industry there are these things called par locations which are essentially sub inventory locations that are distributed all over the hospital floors and there are people called par counters whose entire job is to go around to all of these locations and count and verify to make sure that they have all the stock and the stock is the the rooms the par locations are filled with high volume low low-cost stock such as gauze band-aids things like that so would you like me to notify those Park County in this case yes so the system is smart enough to understand who is on staff for the specific locations and sends a notification to each of those par locations as the form of tasks and then the system says would you like to pin this because it knows that it's going to take a while to resolve this or a lot of people to collaborate so pinning it allows you to easily go back and monitor so in this case it says yes so the system creates a pin and ask is there anything that I can help you with so here we are we have taken you instantly into a conversational UI and we are already giving you the ability to analyze the situation and start taking care and work towards resolution by working with the system to smartly distribute tasks to all those affected so let's move on to the power counters view so before I start with my part of the demo just quick concepts that we gonna introduce like in building location tracking we're going to see that in the minute as I start a demo also very important concepts like optical character recognition if we go back in history the very first UPC barcode that was scan was on wrinkly company chewing gum package back in 1974 so the industry now that we have revolutionized the barcode industry it was our old in a strip and now with these new concepts that we're introducing we really want to have and write a new chapter in supply chain execution so with that being said let me start the demo I map our location I'm walking to my end up in this copy area as you can see I have my first my first task which is to start scanning the the item in the sky in this case a package of gloves that need to be recall so I'm going to start my scanning and as you guys can see this is a live demo although you guys are being recorded just in case are we going to keep it so really a here and this is going to go really fast so just couple concepts are really important to capture correct we have being able to scan barcodes and also if you can see most of the items that goes into the part locations that Jennifer was explaining usually usually the boxes will have a barcode for the item number but they will not have a barcode for the lot number or other information that is important to be able to scan and to be able to capture okay so what we wanted to do with and this is you in terms of how we want to be able to apply this technology is we want to be able to capture everything that is related to this item so the recall process can be done in a very in a very good manner okay so with that being said I'm gonna go ahead and and take a the product as you can see this is scanning it and what is telling me is that this first scan that I did is for a product that needs to keep is not a part of the recall process so I need to keep it but as you see the information that the system is looking is a lot number in specific not not the item the item barcode is looking for a specific barcode because in the part location you have multiple of these cases with the same as kayuu but a different lot number so again I'm gonna confirm that since it ends sky.another and I'm gonna grab another and another one and perform the same task okay so this is the one that it was meant to be recall a verification of the scan of the lot numbers Q this is the correct one I put that on my cart of course I complete my scan and I come I'm completely scan and that's asking me for another one because I have another one to do and I'm done so with that being said the test summary is completed I'm done I confirm it and now I can move to my nest that my next task to complete in my inmate tasking that I have assigned to me as a user so this is very exciting we're very excited about the Redwood concepts that you have introduced and like Rick said this is something that we want to be able to apply across all our supply chain execution our products and be able to have one single mobile experience for our users so that's part of the demo thank you thank you back to you Jane all right back to the slides please Thank You Diego thank you so again what we are doing is we're providing simple instructions we've sent a notification to the park owner we've created simple instructions to locate to scan to verify if the recall item is part of the lot to be pulled and sent simple instructions on what to pull and what not to pull and so the park owner then takes that recall items and we provide instructions on where to return it so back to the inventory manager the inventory manager receives an update from us and through text we send a simple text message that says here's a quick update on today's recall all 76 items have been pulled because we've been listening for all of the park owners to complete their tasks on hand substitutes have been distributed and an order requisition has been sent to Ava in this case this is the buyer so let's go to Ava's view so the buyer is also involved in helping to resolve this the buyer is busy when she is at her desktop version she goes to view exceptions and what we've done is we have ordered the exceptions and prioritize all of the exceptions in this list around the ones that need action so she doesn't have to go hunting and digging for the ones that need her attention now we already prioritized in this list she can see that she received a new exception she clicks into it and right off the bat we have provided a recommendation on what to do to resolve this in this case we have recommended an expedited shipping order so that if she places the order we can receive the substitute in time now the buyer wants to save cost in the healthcare industry expedited shipping starts to accrue a lot of extra cost so she wants to see if you can order this in standard shipping and if it's okay if it arrives a little bit late so she needs to reach out to the inventory manager now today what would happen is she would leave this experience she would go into email she would open she would make a phone call and she would reach out to the inventory manager outside of the system and so what we've done here is we're embedding that communication method inside the experience right here there's a drop-down you can see there is direct message so we were embedding slack we're embedding email we're even embedding the ability to make voice calls in this case the hospital uses slack and so right within this screen she can send a slack message to the inventory manager without leaving the experience so she sends the inventory manager a message saying the recommendation is that we expedite the shipping I'd like to save costs is it okay if it's late so Sam as he's going about his day and very busy he receives it through slack so he's not in the system right now he sees that message in slack he can see a little summary to get context of what she's referring to and in slack he messages her saying no I actually need it expedited I need it tomorrow sends that off and then she sees it even though he sent it in slack she sees it within this screen so we are we have the ability to communicate both inside and outside the system using the tools that people already use and this also allows her to go back and reference any decisions that were made based on this recall so she goes ahead and orders it there's a confirmation and now this exception has gone from needs action to it's being monitored so now she can monitor the shipping status so back to the inventory manager there are a lot of moving parts and a lot of collaboration that needs to occur to resolve this issue so the inventory managers view this is him looking at his exceptions on the desktop he can see that the item the recall that he's monitoring is pinned and so we automatically put it to the top for him to easily reference it so he goes and he wants to view and monitor this recall and what we do here is we go into this immersive view that gives him an at-a-glance view of everything that's occurring everything that's taking place and in this case we're showing him an at-a-glance view of all the locations that are affected and who has completed what task within each location so he can see that everyone has completed the task he can see on the left-hand side that what the system has sent notifications the system has sent including a purchase order was generated to replace the recall item so from here he can go and track this and he can see where that order is in the shipping process from point A to point B and not only can he see where it is in the process but he can also scrub into the future to see where it's planned to be shipped within the hospital and who is on staff to receive it now in the healthcare space oftentimes things get sent to receiving they get stuck nobody's there to sign it no one knows where the inventory is no one gets notified and here the inventory manager can get visibility into who is staffed or responsible for signing off he can scrub into the future even further and see who is on staff for the sign-off and then ultimately who will be delivering it to the sub inventory location so I'm really excited about the maps in particular because imagine when we get into manufacturing how we can zoom in even further on a manufacturing line zoom into a product and so on and so forth so with that I will hand over the stage to Rick thank you thank you that's cool stuff Thank You Jennifer Thank You Diego okay let me bring it home here you know we as supply chain professionals have gone through multiple iterations of things around supply chain and you know initially we we looked at trying to make things as efficient as possible and productive and lowering costs we then started to focus on quality and Six Sigma practices and and you know issued a resolution capabilities and then focusing on on integrating product development practices and and you know leveraging outsourced manufacturing and optimizing supply and things like that the problem that we have now is that the markets that we serve the products and services that we offer and the vehicles and that we deliver to our customers are all changing extremely rapidly simultaneously and what we really believe and what our vision is here is we need a more intelligent supply chain and that is what our focus is and it's really about detecting things that are going on inside of your enterprise and outside both good and bad and determining how to take advantage of them or to you know deal with the issues that are caused decide the best course of action as a result and then have the tools to fully execute on those decisions and that's what we're building here at Oracle with our intelligence supply chain cloud you know it all starts with data lots and and lots and lots of data I think we talked about that you know a few times today but it's it's data coming in from the machines coming in from the assets syndicated data coming in over the web consumer data you know Commerce data the light coming in from business networks you know first of all what's very key is determining what data is important and what is noise and then reacting to that data and that's really where the IOT applications that we have built come to play with providing digital twin simulations trend and anomaly detection as I mentioned before predictive capabilities and the like it's a really Drive than the decision process and that's where Rai and business analytics and planning applications come into play so analytics from the perspective of determining what is going on but then our aai machine learning applications to determine why those things are going on to determine the causal factors associated with that and make recommendations for improvements and then there is the planning products that you know bringing external data external causal factors demand forecast information developing those forecasts developing the demand plan supply chain planning then determining based on you know what material and resources are available what's the best way to supply that and of course having integrated business planning to make sure that the plans and the planned sales and the overall revenue and financial things associated with that are in sync so to make the right decisions but no decision is good unless you can execute on those decisions and what we certainly have is full end-to-end business functions in our core business applications to allow you to fully execute on those overall capabilities and the one point that I did miss as far as this external data in determining the No from the important events and the important data is that we need a unified data Lake that can not only maintain the structured data but the unstructured data and the semi structured time series data now my point here I mentioned just two minutes ago that this is our vision it's more than a vision it's reality this is what we have now and some of the things that we also have mentioned the global visibility aspect to it is dashboards whether it's web-based whether it's desktop whether it's mobile whatever it needs to be viewed by all people inside your enterprise and connected with your enterprise and have the necessary collaboration and then in turn blockchain transactions that can be reviewed by everyone within the tight circle to be able to come to the right conclusions so again the intelligent supply chain is that our vision but it's also reality today and I ask you to take a look at what you think at our intelligent supply chain cloud and see what it can do for you and for your enterprise and see what it can do to help you with the digital challenges along the way so again thank you very much and thanks for attending [Applause]

Channel: Oracle

Views: 2,521

Keywords: General Sessions, OpenWorld Keynotes (Full), Chief Sustainability Officer, Supply Chain Management, Applications, Keynote Presentation, Keynotes and Presentations, GEN5930, Supply Chain, CSO and GVP SCM Product Strategy, OOW 2019, Oracle Open World 2019, SVP, SCM Cloud, Richard Jewell, OOW2019, 40151176, Oracle OpenWorld, OOW, OW-19-16, SCM, Keynote, Senior Vice President, retire-2024, Oracle Cloud, Jon Chorley, Oracle Open World, Events, General Session

Id: y0Fdf2VXLdk

Length: 89min 33sec (5373 seconds)

Published: Wed Oct 23 2019