Spotlight on SALES AND OPERATIONS PLANNING
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1 ORACLE APPLICATIONS RELEASE 13 Spotlight on SALES AND OPERATIONS PLANNING JON CHORLEY, CSO & GVP, Product Strategy Oracle Script 1 00:13 I m Jon Chorley, Chief Sustainability Officer and Group Vice President of Supply Chain Product Strategy for Oracle. In this video, I d like to tell you about the exciting new solution for Sales & Operations Planning that Oracle is introducing in Release S&OP is a critical business process aimed at creating an aligned, balanced plan across different domains in the business. There is significant variation in how this process is managed from company to company, which leads to very different outcomes. S&OP is all about identifying performance gaps and closing those gaps, but only 25% of even best-in-class companies have the ability to do root-cause analysis, making it impossible to effectively address those performance gaps. S&OP is supposed to be a collaborative process involving Manufacturing, Finance and Marketing in addition to Sales and Supply Chain, yet about half of companies don t include Manufacturing or Finance or Marketing. Yet for those companies who do implement S&OP well which strong S&OP software 3
2 can help enable the results speak for themselves. S&OP can improve order fulfillment rates by 20 to 40%, and best in class S&OP processes result in 91% customer retention rates a lift of over 20% from S&OP laggards. 4 Simply put well run product companies have well run S&OP processes. And to run S&OP well you need strong analytical and collaborative tools. Here s how Oracle S&OP Cloud can help you achieve this to align your enterprise, make better decisions, and achieve your business goals. Let s have a look at each of these capabilities. 5 Let s start with: Align the enterprise. 6 It all begins with Best Practice Processes so when we set out to develop a nextgeneration S&OP solution, we placed a big emphasis on helping customers quickly adopt a best practices process for reaching alignment on an enterprise operating plan. We ve done this by building and embedding process templates for each of the five stages of S&OP -- from Product Review through Executive Review -- that guide customers through the process step by step. 7
3 To help organizations reach consensus during the S&OP process, the solution engages all the key stakeholders by facilitating collaboration, integrating their inputs, and generating a plan that reconciles operating and financial perspectives. 8 Now let s take a look at how you can make better decisions. 9 Oracle S&OP Cloud provide a set of bestpractice dashboards, reports, and KPIs so you gain better insights. And while we ve seeded these elements in the application to get you started quickly, the solution is highly configurable so you can tailor it to your needs. 10 Central to S&OP analysis is the ability to identify and resolve performance gaps between your operating plan and your business targets. 11
4 Performance thresholds allow you to identify problem areas, and then you can drill into detail to diagnose root causes and fix them. 12 Next let s explore how you can achieve business goals. 13 Coming up with a new operating plan requires simulating what-if alternatives. S&OP Cloud includes powerful simulation capabilities to plan at an aggregate level, and over strategic time frames. You can then compare plans to determine the best course of action. 14 Finally, once you ve made strategic S&OP decisions, you can drive these decisions into execution because S&OP Cloud is integrated with Oracle SCM Cloud. You can bi-directionally exchange demand and supply plans with Planning Central, Demand Management or Supply Planning Clouds. You can also leverage Supply Chain Collaboration to exchange supply commits and status with your supply base. And you can use S&OP Cloud to monitor your execution and stay on track. 15
5 To summarize: Oracle S&OP Cloud is a next generation S&OP Cloud service that, helps you Align your Business, Make Better Decisions, and Achieve your Business Goals. 16 Finally, Oracle S&OP Cloud, which can be deployed separately and work effectively with other supply & demand solutions yet is also part supply chain planning cloud suite of products, which together provide comprehensive, best in class, yet easy to use planning solutions to empower planners and improve business agility. 17 For more information on this and other Oracle Supply Chain Cloud solutions, please visit cloud.oracle.com and these additional resources. 18 Thank you for watching. 19
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