High Technology Outsourced Manufacturing Services Solutions. Presenter s Name: Presenter s Title:
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1 High Technology Outsourced Manufacturing Services Solutions Presenter s Name: Presenter s Title:
2 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.
3 Agenda Leadership in High Technology Innovation in Outsourced Manufacturing Solutions Results Achieved by Oracle Customers
4 Oracle in High Technology Did You Know? 8 of the top 10 electronic manufacturing services companies run Oracle Applications All of the top 25 electronic OEMs run Oracle Apps 14 of the top 25 high technology distributors run Oracle Applications
5 Oracle in High Technology Did You Know? 8 of the top 10 semiconductor companies run Oracle Applications All of the top 10 fabless semiconductor companies run Oracle Applications 22 of the top 25 software companies run Oracle Applications
6 The Challenges We re Hearing! New Service Offerings: What new services can I offer to increase my revenue and margins? Offer]...services performed before the product hits floor, such as writing the embedded software for a mobile phone,...during the assembly process, advanced environmental testing or real-time quality reports to the customer...after the product ships, in the form of repair, warranty or support services... environmental testing of products or real-time reporting of manufacturing and quality to their OEM customers. Movers and Shakers (Asia/Pacific): ODMs, EMS Reign Supreme! OEM visibility: How do I retain control of my business, while meeting the demands of my OEM customers? OEMs these days want the management, visibility, and control as if they were doing their own manufacturing, but without the costs, risks, and logistics, which they are happy to leave to the EMS houses. EMSNOW
7 The Challenges We re Hearing! Mega-Site: How can I further reduce my cost and increase the speed at which I respond to my customers? The industrial campus boasts a growing roster of components producers and a cavernous distribution center... The complex has its own high-speed telecom network, power plants, and medical center--even a first-rate soccer field and a bus fleet... [The] site is just one of a number of manufacturing campuses the company owns or is building in countries such as China, Brazil, and Hungary. TFI Quarterly Forum! Multiple LOBs: How can I simultaneously manage multiple LOBs with different regulations, engineering, sourcing and manufacturing requirements? About 1900 of them are in this sub-$250m range... these EMS companies are not going after the super-high volume consumer products... These players are focused on the industrial, military, and medical segments...(they) position themselves as more of a flexible, responsive, and relationship based provider relative to the larger players. TFI Quarterly Forum
8 The Challenges We re Hearing! Shared Services: How can I leverage shared services to lower my cost and globally adopt best practices? Tapping into... strengths of shared services, the world's largest manufacturer of personal computer motherboards has anchored its HQ operations...what it calls a "strategic, multi-functional centre." These include procurement, sales, marketing, customer support, product management, administration and finance... Singapore's EMS Industry: Ascending The Value Chain
9 Analyst Quotes Oracle s Shop Floor Management, built specifically with the Semiconductor industry in mind, bridges the gap between the ERP system and the MES applications. Oracle provides the support for complex shop-floor transactions and tracks yield and product genealogy by bringing in the WIP data from multiple sources into a single repository so companies can see inventories and account for the cost accumulation as it moves through the operation. Oracle is well positioned to drive innovation to the high tech industry. The company s belief that it needs to maintain leadership across the high tech sector in order to stay in touch with innovative manufacturing developments for the rest of its business helps ensure Oracle s commitment to this industry. Oracle s High Tech Manufacturing team has packaged a product that exhibits depth of understanding of industry drivers for this segment.
10 Analyst Quotes Firms in high tech manufacturing, where customer service spans both front- and back-office processes, should consider Oracle, especially if they have already made investments in other Oracle modules, like financials. Oracle applications are also a good fit for midsized companies looking to implement a single vendor apps suite and for firms thinking about outsourcing. It is fantastic to see Oracle not just create a well integrated suite of technology across the front and back office, but also to articulate the value of SCM by making references to the customer. Clearly they are tackling the real-world business problems of how SCM meets CRM in an actionable way. Oracle s strong middleware platform and greater support of standards make it a better choice than SAP for customers who will rely on custom development as well as packaged applications.
11 Agenda Leadership in High Technology Innovation in Outsourced Manufacturing Solutions Results Achieved by Oracle Customers
12 Oracle Outsourced Manufacturing Services Solutions Drive Flexibility, Efficiency and Responsiveness Create New Revenue Streams Accelerate New Product Ramp Increase Supply Chain Responsiveness
13 Create New Revenue Streams Requirement Oracle Capability The Oracle Difference Provide logistics services Transportation and Warehouse Mgmt Best-in-class Demantra demand management with integrated sales and operations planning Provide design services coupled with procurement Strategic Sourcing, RoHS Compliance, RosettaNet Interface Uniquely links product compliance data, product information and partners regulatory databases Deliver private label product directly to retailers Sales & Operations Planning, Demand-Driven Replenishment Only enterprise software with integrated real-time S&OP and multi-tiered collaboration
14 Example: Oracle Transportation Management Provide Logistics Services Optimized Decisions Route Mode Timing Equipment Consolidation Service Provider Algorithms Multi-Leg Multi-Mode Consolidation Common Leg Consolidation Multi-Stop Consolidation Multi-Tier Networks LTL Consolidation Continuous Moves Engines & Rules Customer SOPs Service Time Calculation 3-D Container Optimization Itineraries & Profiles Resource Capacity Throughput Rating Support a Wide Range of Operational Needs - Container and trailer optimization & configuration - Complex rating scenarios - Appointment scheduling - Facility shipping specifics - Import, export, and domestic shipments - Carrier commitment and capacity
15 Sanmina Achieves Lower Cost with Reduced Instances COMPANY OVERVIEW Global provider of customized, integrated electronics manufacturing services for OEMs Primarily caters to the communications, personal & business computing, enterprise computing & storage, multimedia, industrial & semiconductor capital equipment, defense & aerospace, medical, and automotive industries US$11.0 billion revenue CHALLENGES / OPPORTUNITIES Many disparate system from growth by acquisition Siloed information in plants around the world 24x7 worldwide operations SOLUTIONS Oracle E-Business Suite Manufacturing Order Management E-Business Intelligence Human Resources Financial Purchasing Inventory Shipping RESULTS Reduced Infrastructure costs by 60% Improved operating efficiencies by 40% Reduced development costs by 35% Reduced deployment time by 50% Achieved industry leadership position in Days in Inventory and SGA% Cost
16 Oracle Outsourced Manufacturing Services Solutions Drive Flexibility, Efficiency and Responsiveness Create New Revenue Streams Accelerate New Product Ramp Increase Supply Chain Responsiveness
17 Accelerate New Product Ramp Requirement Oracle Capability The Oracle Difference Integrate OEM and supplier Product Information product information Management Hub Best-in-class product master data management Reduce product New Production development cycle time Introduction Only solution with standardized phase gate control & centralized program management Design mixed model production lines to meet quality and customer commitment Value Stream Mapping with Line Design & Balancing Only end-to-end lean / flow manufacturing solution with execution capabilities
18 Example: Value Stream Mapping with Line Design and Balancing Design Mixed Model Production Lines Define processes Model primary & alt. production paths Assign work content times Share processes & events between assemblies Perform mixed model calculations Balance line Define and associate processes with product families, items, or configurable models Link operations together as primary, feeder and / or rework processes For each process, create a detailed sequence of events, or estimate time Define standard processes and standard events, or common product family synchronizations Calculate line & operation takt, and req d resources; highlight imbalances Define balanced operations, add IPKs, add resources Graphical Line Designer Mixed Model Map Workbench
19 GDM Electronics Reduces Development Cycle Time COMPANY OVERVIEW Manufacturer of printed circuit boards and electronic products with projected average annual growth rate of 35% Headquartered in Belgium with production facilities in Slovakia and Romania CHALLENGES / OPPORTUNITIES Fragmented data slowed change management and time-to-market Paper-based processes made collaboration difficult and error-prone SOLUTIONS Oracle E-Business Suite - Product Lifecycle Management - Projects - Discrete Manufacturing Oracle Collaboration Suite CUSTOMER PERSPECTIVE We chose the Oracle solution over SAP because Oracle offers a flexible architecture, better product functionality, and a significantly lower overall cost. Oracle's ability to integrate all business processes in a single solution was another crucial factor. Oracle Product Lifecycle Management met our requirements exactly. Kris Laermans, Director RESULTS Created a single source of product information Reduced time for ECN approvals and implementation Enabled workflow-driven change management
20 Oracle Outsourced Manufacturing Services Solutions Drive Flexibility, Efficiency and Responsiveness Create New Revenue Streams Accelerate New Product Ramp Increase Supply Chain Responsiveness
21 Increase Supply Chain Responsiveness Requirement Oracle Capability The Oracle Difference Respond quickly to OEM Demantra Sales and demand changes Operations Planning Only enterprise suite with integrated, real-time sales and operation planning Optimize inventories for mega-sites and high-mix / low-volume manufacturing Strategic Inventory Optimization Uniquely incorporates risk and uncertainty when determining inventory levels and locations Optimize purchase price Strategic Sourcing & variance opportunities Purchasing Analytics Only enterprise solution that integrates real-time analytics with sourcing & purchasing
22 Demantra Sales and Operations Planning Respond Quickly to OEM Demand Changes Get real-time visibility to all demand signals - Move from a regimented periodic to a continuous demand planning process - Forecast at a more detailed level product line, products - OEM sales & marketing, distribution centers multiple units of measure and currencies - Include point of sale or shipping information in real time Leverage advanced analytics to accurately predict demand - Use any combination of quantitative or qualitative data to establish your base line forecast - High precision statistical forecasting, no statistical background required superior Bayesian-Markov forecast analytics - Forecast based on attributes and characteristics such as color, size, style, and so on Get quickly to an improved consensus number - Use multi-dimensional analysis to adjust, allocate, and rollup - Collaborate with internal and external constituents - Workflow driven forecasting exceptions ensures responsiveness - Track changes through comprehensive audit trails - Capture contract win assumptions with assumption based forecasting
23 Inventec Increases Responsiveness with ASCP and Collaborative Planning COMPANY OVERVIEW Global provider of hardware and software products Annual production quantity is 7 million notebook computers and 2 million servers US$3.5B revenue, wireless voice and data services CHALLENGES / OPPORTUNITIES Siloed information and manual processes Inability to scale operations Lack of e-business capabilities Inadequate infrastructure to compete in a rapidly evolution industry SOLUTIONS Oracle E-Business Suite Financials Collaborative Planning Advanced Supply Chain Planning iprocurement Purchasing Manufacturing Order Management CUSTOMER PERSPECTIVE Oracle is the only company to offer a fully integrated enterprise information solution so you get a full 360 degree view of your customers and your business. C. H. Lee, President RESULTS Eliminated 90% of manual effort in logistic processes Improved efficiency of shipping processes by 50% Reduced mfg lead-time from 12 days to 5 Reduced inventory by 56% Provided WIP visibility through all stages of assembly Reduced ECO approval cycle-time from 5 days to 2 days Reduced overall purchase cost by 20%
24 PCB Manufacturing is a Critical Link in the High Technology Supply Chain Some of our PCB customers High Technology Outsourced Svcs EMS ODM Distribution
25 Oracle Outsourced Mfg Services Solutions Summary Create New Revenue Streams Transportation and Warehouse Management Strategic Sourcing, RoHS and RosettaNet Interface Sales and Operations Planning, Demand-Driven VMI Accelerate New Product Ramp Product Information Management Hub New Product Introduction Value Stream Mapping with Line Design and Balancing Increase Supply Chain Responsiveness Demantra Sales and Operations Planning Strategic Inventory Optimization Strategic Sourcing and Purchasing Analytics
26 Oracle s Outsourced Mfg Services Footprint Oracle ISV Partners Customer Channels Sales & Marketing Customer Portal Services Sales Marketing Config Mgmt Sales Planning Analytics Mfg by Facility Customer Strategic Proc Human Resources Financials Discovery Manufacturing Line Efficiencies Design Services Product Quality Reuse of Components Manufacturing & Operations Mixed Mode Manufacturing Strategic Network Optimization Supply Chain Planning Warehouse Management Logistics & GTM Production Scheduling MES Strategic Proc. Scorecard Strategic Sourcing EDI Gateway Rosetta Net Connector Design Services Project Tracking PLM RoHS Compliance 3D Visualization & Markup Corporate Administration CPM Financials Human Resources Facilities Management Indirect Procurement Projects Compensation Helpdesk HR IT Infrastructure Analytics (e.g., Mobile Analytics, Delivers, Dashboards) Hubs (Product Hub) Universal Customer Master Integration Framework (e.g., BPEL) Technology (e.g., Database, Application Server, RAC, Oblix, TimesTen)
27 The Only Complete Outsourced Mfg Svcs Solution Platform Partners Results Process People Oracle Uniquely Delivers a Competitive Advantage by Leveraging People, Partners, Process, and Platform
28 People: Oracle s Ecosystem Creates Advantage 220,000 database customers 30,000 applications customers 30,000 middleware customers 29,000 developers, support engineers and consultants 1,700 application ISVs 5,000 middleware ISVs 9,000 database ISVs 275,000 Customers Benefiting from Shared Innovation 1,300 participants in early customer adoption programs 950 customers participating in Customer Advisory Boards 35 Fusion strategy council members 425 user groups 500 Industry & Product strategy council members
29 Process: Top to Bottom Support for Outsourced Mfg Services Support Training Consulting Applications Middleware Database #1 Enterprise Software Vendor ERP, CRM, SCM and more Most scalable, reliable, secure infrastructure Most complete range of on-demand and on-premise deployment options Built-In Capabilities for Outsourced Mfg Best-in-class transportation planning & execution Flow / lean-based mixed model production lines Demand-driven sales & operations planning Built in support for WEEE & RoHS compliance Out-of-the-box support for RosettaNet Largest Software Support Team 21,000+ development and support engineers 145+ countries
30 Platform: Oracle Fusion Middleware Leads the Market Best-Selling 32,000+ Customers Deployed 70% of World s 50 Largest Firms $1B+ Business #1 Middleware By Share Highest Rated Only Vendor in Gartner and Forrester Leader Quadrants for All Middleware Components Oracle Leads the Pack Most Comprehensive Industry's Most Comprehensive Platform for Developing, Deploying & Integrating Enterprise Apps Rich Functionality Strong Contenders Strong Performers Leaders Oracle J2EE Server & Dev Tools ORCL IBM SAP Others 45% Oracle 55% Current Offering Novell SAP Microsoft IBM SUN Microsystems Enterprise Service Bus Portal, Collab, Content Mgmt Source: Gartner s Market Share Application Integration & Architecture Fastest Growing Middleware Market Presence Weak Weak Strategy Strong Source: Forrester Research Ranking of Application Platform Servers BPEL Process Management Activity Monitoring Business Rules Engine 40% 30% 20% 39.6% Growth Rates 10% 0% 6.7% 7.1% Oracle IBM Total Mkt Source: Gartner s Market Share Application Integration & Architecture SOA Vendor of Choice Oracle Microsoft SAP IBM 0% 5% 10% 15% 20% 25% 30% SOA Management Business Intelligence Integrity Management
31 Agenda Leadership in High Technology Innovation in Outsourced Manufacturing Solutions Results Achieved by Oracle Customers
32 What Customers are Achieving used Oracle EBS shared services to reduce infrastructure cost by 60% reduced inventory by 56%, improved shipping efficiency by 50% and reduced manufacturing lead-time from 12 to 5 days with ASCP, Collaborative Planning and Discrete Mfg decreased time for ECN approval and implementation with PLM, Collaboration Suite and Product Data Hub used ASCP and Oracle EBS to improve partner collaboration, optimize production lines and JIT scheduling enabled real-time response to demand changes and accurate order promising using Oracle EBS & ASCP implemented Oracle EBS to provide a global operations view, improve inventory turns and customer responsiveness
33 The Oracle Difference Only Oracle Delivers enterprise software with a multi-tenant logistics solution Provides an end-to-end lean / flow manufacturing solution with execution capabilities Incorporates risk and uncertainty when determining inventory levels and locations
34
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