An Oracle Applicatins White Paper April 2013 Oracle In-Memry Lgistics Cmmand Center n Oracle Engineered Systems Maximize Perfrmance f yur Lgistics Netwrk
Disclaimer The fllwing is intended t utline ur general prduct directin. It is intended fr infrmatin purpses nly, and may nt be incrprated int any cntract. It is nt a cmmitment t deliver any material, cde, r functinality, and shuld nt be relied upn in making purchasing decisins. The develpment, release, and timing f any features r functinality described fr Oracle s prducts remains at the sle discretin f Oracle.
Executive Overview... 2 Intrductin... 3 Oracle In-Memry Lgistics Cmmand Center Overview... 3 Strategic Scenari Management... 5 Operatinal Scenari Management... 8 Intrductin t Oracle Engineered Systems... 9 Oracle Exalgic Elastic Clud Intrductin... 10 Oracle Exadata Database Machine... 10 SPARC SuperCluster... 11 Oracle Engineered Systems and Oracle In-Memry Lgistics Cmmand Center... 11 Benefits f Oracle In-Memry Lgistics Cmmand Center... 13 Build a Resilient Supply Chain... 13 Imprve Supply Chain Agility... 14 Maximize Business Advantage and Imprve Cmpetitiveness: Operatinal Excellence... 15 Build a Sustainable Supply Chain... 15 Drive New Revenue and Imprve the Tp-line... 16 Lwer Ttal Cst f Ownership... 16 Faster Time t Value... 19 Cnclusin... 19
Executive Overview Supply chains and their assciated lgistics netwrks are becming increasingly cmplex with cmpanies facing business challenges such as glbalizatin, mni-channel cmmerce, supply chain risk mitigatin as well as mergers and acquisitins. Many cmpanies have deplyed primarily pint-based slutins t slve specific peratinal issues, generating ever mre data that prves increasingly difficult t effectively cnslidate and analyze frm an verall netwrk perspective. In this envirnment, strategic and peratinal scenari management is nw central t creating a rbust, resilient and prfitable lgistics netwrk. Unfrtunately, the tls that are currently available that are designed t address this challenge ften prve inadequate fr the cmplexities invlved. These tls typically utilize simplified mdels f the lgistics netwrk and perate n estimated aggregate csts using histrical data. Nt surprisingly, this type f analysis usually results in plicies that d nt translate effectively t real-wrld cnditins and are ften simply nt implementable. Oracle s slutin is different. Architected t take advantage f the extreme perfrmance f Oracle Engineered Systems, Oracle In-Memry Lgistics Cmmand Center (LCC) takes a unique and innvative apprach t strategic and peratinal scenari management. Leveraging the best-in-class lgistics platfrm f Oracle Transprtatin Management, Oracle In-Memry Lgistics Cmmand Center determines ptimal executin strategies by simulating actual lgistics peratins using detailed peratinal data, including netwrk infrastructure, csts, cntracts, service levels, capacities and cnstraints. This allws fr an accurate representatin f the results f each scenari and fr a realistic analysis that yields implementable respnse plicies. Oracle In-Memry Lgistics Cmmand Center allws custmers t mdel multiple scenaris simultaneusly and prvides packaged analytics that capture and visualize key peratinal statistics in a rich analytics framewrk with side-by-side cmparisns f the varius scenaris. In this whitepaper, we prvide an verview f Oracle In-Memry Lgistics Cmmand Center s capabilities and business value. 2
Intrductin The need fr lgistics netwrk scenari management is nt new, but recent events have brught a stark and urgent fcus n it. Fr example, supply chain resilience is a tpic that has surged in imprtance given the multiple threats t the supply chain in recent years. As recent events such as the Icelandic vlcan, the earthquake in Japan and the Thailand fld have shwn, sudden and unfreseen disruptins t the supply chain can seriusly impact a cmpany s ability t meet demand and endanger its business peratins. Indeed, such ccurrences are becming mre frequent and mre expensive 1. As cmpanies have fllwed Lean manufacturing strategies, mving t just-in-time management and drastically cutting inventry, s the supply chain has becme ever mre vulnerable t disruptin. Other threats such as prt clsures, wrkfrce strikes, scial unrest, terrrist attacks and highway shutdwns can have similar impacts. As a result, the ability t perfrm scenari analysis and determine pssible impacts t the lgistics netwrk and plan fr suitable respnses has becme an essential part f a cmpany s supply chain resilience strategy. Planning fr supply chain resilience ften ges beynd analyzing fr lgistics netwrk disruptins and security, and includes ther types f strategic netwrk scenari analysis. In the lgistics cntext, this can take the frm f analyzing fr scenaris such as a rise in fuel csts, change in rates frm transprtatin service prviders, exchange rate impact analysis, etc. These types f netwrk design analyses ensure ptimal peratin in the face f anticipated r unanticipated changes in business cnditins. While scenari analysis has traditinally been limited t the strategic level, there is tremendus value and interest in perfrming scenari analyses even at the tactical r peratinal level. This culd take the frm f evaluating alternate slutins under different bjective functins. Fr example, the bjective may nt always be t select the lwest cst transprtatin plan, it may be t select the plan that has the least envirnmental impact r the plan that leads t the highest custmer service level. Anther apprach is t perfrm what-if scenari analysis t determine the impact f relaxing different cnstraints that may be impacting fulfillment ability. Fr example, evaluating the cst versus benefit f relaxing certain rder pickup/delivery time windws r lcatin shipping/receiving windws. Operatinal scenari analysis can lead t tremendus cst savings and imprved fulfillment levels with minimal impact t the current netwrk cnfiguratin. Oracle In-Memry Lgistics Cmmand Center Overview The usual apprach t scenari analysis has been t emply slvers that abstract the actual lgistics netwrk t a theretical mdel cnsisting f ndes and links. Further, cnstraints are simplified t fit this linear, netwrk mdel f the lgistics netwrk. Csts are estimated and simplified and d nt 1 Cunting the Cst f Calamities, The Ecnmist, January 14, 2012, www.ecnmist.cm/nde/21542755 3
represent the true cmplex nature f transprtatin service prvider cntracts. These slvers then perfrm a flw analysis fr the different scenaris by representing the set f discrete real-wrld shipments ver different mdes, carriers, etc., as a cntinuus flw ver a nde-link netwrk. A cmmn cmplaint with using such tls is that the results d nt translate t the real wrld and the plicies are ften nt implementable. Furthermre, these types f tls are incapable f perfrming peratinal scenari analysis with all the rich details f actual netwrk cnfiguratin, transprtatin mdes, rates and resurces that it entails. Oracle In-Memry Lgistics Cmmand Center (LCC) takes a cmpletely new apprach t perfrming scenari analysis. It leverages the acknwledged market-leading lgistics platfrm f Oracle Transprtatin Management t determine the ptimal fulfillment strategy under different scenaris based n peratinal slves against actual peratinal data. LCC uses real data frm the lgistics netwrk and cntains a cpy f all the relevant peratinal data including actual netwrk cnfiguratin, mdes, carriers, rates, resurces, cnstraints, etc. In rder t analyze the impact f a particular scenari, it simulates the netwrk s peratin by running the same transprtatin plans that are run in practice and cllating the results t be analyzed in a user-friendly manner. This apprach f simulating actual peratins in full detail t determine the impact f the changes under each scenari prvides a truly accurate representatin f the results and allws fr a realistic analysis leading t implementable respnse plicies. LCC enables analysis f multiple scenaris in real-time, and prvides packaged analytics that capture and visualize key peratinal statistics in a rich analytics framewrk with side-by-side cmparisns f the varius scenaris. The key capabilities f Oracle In-Memry Lgistics Cmmand Center are: Integratin with Oracle Transprtatin Management t cpy relevant peratinal data t the LCC envirnment and make it available fr scenari analysis. Supprt fr bth strategic and peratinal scenaris. A number f packaged scenaris will be prvided where the user can chse the scenari, prvide relevant data inputs via simplified screens and then launch the analysis. Sme f the key scenaris are discussed in greater detail in the next sectin. As part f the nging radmap, additinal packaged scenaris will be prvided t cver an increasing variety f use cases which can be utilized ut-f-the-bx with minimal effrt. Experienced users will als have the ability t perfrm custm scenari analysis. Analyze multiple variatins in parallel t mdel a particular use case. Fr example, t mdel a netwrk disruptin the user may want t analyze different pssible respnse strategies as independent scenaris, then cmpare the results simultaneusly and select the mst apprpriate ne. Specify key criteria such as the rder sets, time duratin, etc. t cnstrain and shape the analysis in rder t better reflect the changing real-wrld peratinal cnditins. Extract key metrics and visualize them using an advanced analytics framewrk t better understand and cmpare netwrk perfrmance fr multiple scenaris side-by-side. LCC s 4
analytical capabilities are delivered using Oracle Business Intelligence Enterprise Editin, Oracle s best-in-class business intelligence technlgy. Packaged supprt fr a number f key perfrmance metrics and assciated dashbards that supprt a variety f slice-and-dice, drill-dwn and ad-hc query mechanisms t prvide a detailed understanding f netwrk perfrmance. In additin, the user has the ability t create custm metrics and visualizatins. Integrate key netwrk cnfiguratins back int the peratinal envirnment t enable easy implementatin f the plicies resulting frm the scenari analyses. This tw-way flw between the LCC and peratinal envirnments allws strategic scenari analyses t be perfrmed easily and regularly with minimal set-up. Als, timely peratinal scenari analyses can be easily utilized as part f the regular daily peratinal planning prcess. Stre scenari analyses indefinitely fr future reference. This allws fr past analyses t be referenced and utilized when similar risks r scenaris arise elsewhere in the netwrk. Als, the implementatin impact f plicies in practice can be easily cmpared with the scenari analysis that drve them, allwing fr cntinuus learning and imprvement f strategies. This apprach f simulating actual lgistics netwrk peratin using actual peratinal cnfiguratin will ptentially invlve, especially in the case f strategic scenaris, cnsideratin f a large amunt f data ver lng time hrizns in cmputatinally-intensive slves. T perfrm this in a timely and efficient manner, the Oracle In-Memry Lgistics Cmmand Center takes full advantage f the Oracle s Engineered Systems which are engineered fr extreme perfrmance. As an applicatin built n Oracle s Engineered Systems, Oracle In-Memry Lgistics Cmmand Center cmbines best-fbreed hardware and sftware cmpnents with game-changing technical innvatins. As a highavailability, extreme-perfrmance, purpse-built slutin, this apprach delivers a sphisticated simplicity that is cmpletely integrated thrughut every layer f the technlgy stack. This is a simplicity that translates int less risk and lwer csts t the business. In particular, LCC leverages the Oracle Exadata Database Machine and the Oracle Exalgic Elastic Clud, bth f which are described in mre detail belw. Sme f the key scenaris that the Oracle In-Memry Lgistics Cmmand Center enables are described briefly belw. Nte that these are just sme examples f the variety f scenaris that can be analyzed using LCC. As described earlier, custmers can als create their wn custm scenaris. Oracle plans t build ut these scenaris as a way f delivering cntinued added value t its custmers n an nging basis. Strategic Scenari Management Strategic scenari management allws yu t ptimize yur lgistics peratins fr the lng term. It typically invlves mdeling changes in key business cnditins and then analyzing the impact t the netwrk ver the lnger term. Resulting plicies may require a netwrk cnfiguratin change r a respnse strategy that culd have a high impact t the netwrk. This is balanced by the fact that they will ften lead t significant and high-value changes resulting in cnsiderable savings t the peratin. Indeed, the high-impact, high-value nature f these scenaris makes it imperative that they be 5
cnducted with due diligence and cnsideratin f accurate and cmprehensive real-wrld peratinal detail t generate implementable respnse plicies. We view the grund-breaking apprach taken by Oracle In-Memry Lgistics Cmmand Center f simulating the real-wrld peratinal netwrk with all the assciated detail as fundamental t generating accurate and implementable results. We further categrize these types f scenaris belw. Supply Chain Risk Management Sme examples f these types f scenaris are: Lgistics Netwrk Disruptin This invlves analyzing the impact f a significant disruptin f a prtin f the lgistics netwrk. Examples are: a natural calamity (earthquake, hurricane, fld) strikes key prtins f the netwrk and impacts lgistics in that part f the netwrk such as prt clsures r highway clsures which require alternate ruting strategies, etc. The aim f the analysis is t determine suitable respnse strategies. Indeed, multiple plans f actin may be analyzed and priritized s that they can be quickly and efficiently deplyed when necessary. Fuel Risk Mdeling With the ever vlatile price f fuel and its significant impact t transprtatin peratins, it has becme imprtant t analyze and plan fr its impact and derive suitable respnse strategies. LCC enables yu t quantify the actual impact t yur peratins under different fuel cst cnditins dwn t the full cst detail f each mve and derive the ptimal respnse t each. Fr example, it may be that a suitable respnse is t shift t mre fuel-efficient mdes which may then imply a need fr mre capacity with certain carriers n certain lanes and/r mre flexibility in delivery schedules, etc. Carrier Rate Change Mdeling The recent glbal recessin has had a significant impact t carrier capacities and rates. It is anticipated that as ecnmic grwth ccurs, these will change again. The need t anticipate and plan fr such changes is imprtant t all wh ship gds, especially thse with a cre-carrier prgram that cncentrates vlumes ver a limited set f service prviders. A lgistics service prvider, by cntrast, may be interested in gauging the impact f raising rates n certain custmers and hence determine the best strategy t change rate structures. Exchange Rate Risk Management 6
Glbal shippers are especially sensitive t exchange rate changes. Indeed, it is nt nly imprtant t understand the impact f changing exchange rates, but als t derive suitable lgistics strategies t minimize their impact t the bttm-line. With its detailed representatin f hw gds are actually shipped ver the glbal netwrk, LCC quantifies the financial impact f changing exchange rates in accurate detail and helps determine the ptimal lgistics respnse. Transprtatin Service Prvider Risk Management The recent severe recessin adversely impacted many service prviders, even driving sme f them ut f business. It is imprtant t understand and quantify the risk t fulfillment ability if a key service prvider is impaired r fails. LCC assists in the quantificatin f the impact f such an event and identificatin f suitable cntingency plans t minimize the resulting impact n service. Lgistics Netwrk Design Sme examples f these types f scenaris are: Strategic Netwrk Rute Evaluatin The cncept is t perfrm a strategic analysis t design the peratinal netwrk t execute efficiently withut having t mdel all the pssibilities within the peratinal envirnment. Fr example, custmers may want t determine the tp tw r three paths thrugh the netwrk fr each lane and use thse in daily peratins, rather than dynamically select frm all pssible permutatins each time. This will nt nly lead t mre efficient daily plans but als culd deliver mre streamlined peratins thrughut the netwrk resulting in ther peratinal efficiencies and savings. New Custmer/Line f Business Analysis Supply chains evlve a cmpany may make acquisitins, sign up new custmers, expand peratins in new gegraphic areas, etc. It is imprtant t understand the impact n the lgistics netwrk f any such activity. In the case f a lgistics service prvider, they may want t quantify the impact f adding a new custmer t their netwrk. In additin t understanding the impact f the new flws n the existing netwrk, custmers may want t quantify the synergies with the existing flws in the netwrk. By understanding bth the cst impact f the new additin and als the value r revenue generated by the new business, custmers can determine the best, mst prfitable way t incrprate the new vlumes. Furthermre, this analysis is als imprtant t determining the ptimum service level and cst mdel fr the new additin. A lgistics service prvider will want t use this 7
analysis t determine the best ffering (price and service) t make t the new custmer. Sustainable Netwrk Design LCC enables the simulatin f peratins and analysis f current envirnmental impact, helping t determine plicies t imprve the sustainability f the supply chain. Bth the cst and the envirnmental impact f different netwrk cnfiguratins, such as alternate rute and transprtatin mde ptins, can be evaluated. Apprpriate plicies t imprve sustainability can be determined and incrementally intrduced in the peratinal envirnment as apprpriate. Predictive Analysis The need t better understand and design the lgistics netwrk fr the future evlutin f the netwrk is imprtant t mst rganizatins. This can be achieved using LCC in tw ways. One apprach is t use frecasted demand t analyze the netwrk peratins. Anther is t use predictive analytics techniques t prject future vlumes, netwrk capacities, csts, etc, and cnduct the analysis n this basis. Lgistics-specific predictive techniques will be delivered as part f the array f tls available in LCC. Anther cnsideratin is t use this type f scenari analysis t shape and set future budgets. An accurate picture f actual netwrk peratins can be gained using predictive scenaris which can then frm the basis f a reasned budgetary analysis. By taking the nging peratinal data frm Oracle Transprtatin Management, LCC can then be used t cmpare budgeted versus actual csts. Operatinal Scenari Management Operatinal scenari management invlves analyzing multiple transprtatin ptins fr the current lgistics demand and determining the ptimal apprach. Typically, peratinal systems present the user with a single shipment plan based n a single bjective usually t minimize csts. Oracle In-Memry Lgistics Cmmand Center allws analysis, within the cntext f the daily business prcess, f different lgistics strategies simultaneusly fr the same peratinal data t determine what the best strategy is tday. This prvides a new way t ptimize peratins that is simply nt available frm any ther vendr. Executing the resulting slutin typically requires little t n netwrk change while prviding significant savings ver current peratins. We describe sme f these scenaris belw. Cnstraint Analysis Nt all cnstraints in the netwrk are necessarily hard cnstraints, and yet, they culd restrict the resulting slutin in a significant manner. Fr example, an rder time windw culd be vilated by a few minutes and, as a result, a much better cnslidated shipment wuld be pssible. Similarly, extending a lcatin s receiving r shipping windw, if flexible, may lead t a much better slutin. Typical peratinal systems hwever will view these cnstraints as fixed and thereby prduce a sub- 8
ptimal slutin as a result. Similar pprtunities exist with ther cnstraints such carrier capacity, mde cmpatibility cnstraints, etc. What if the custmer instead had the pwer t evaluate multiple slutins side by side, flexing sme f these cnstraints n-the-fly, and culd then decide hw t enfrce these cnstraints t yield the best slutin? Better yet, what if the system culd actually tell yu which f the cnstraints shuld be flexed, and in what sequence, and hw much culd be saved as a result? The cmputatinal pwer Oracle Engineered Systems enables the users f LCC t simultaneusly evaluate multiple strategies and, having selected the best ne, t deply it int the peratinal envirnment fr executin. Planning Algrithm Evaluatin In a typical implementatin, the planning apprach, with its assciated algrithm chices and parameter settings, is tuned based n a sample data set. Once a suitable set f chices are made, they ften stay cnstant ver the life f the deplyment, even if the peratinal envirnment has evlved. As a result, these settings quickly becme stale as the netwrk changes, as demand fluctuates and as business cnditins evlve. By cntrast, LCC can run and evaluate multiple algrithm chices and settings simultaneusly t determine which are ptimal fr tday s peratin. Furthermre, multiple slutins can be analyzed using different bjectives least cst versus best service versus maximum vehicle utilizatin versus minimal envirnmental impact, etc t determine which lgistics strategy shuld be executed tday. The simultaneus ptimizatin f scenaris based n different bjectives wuld be infeasible withut the extreme perfrmance f Oracle Engineered Systems. Operatinal Netwrk Chice Evaluatin These scenaris invlve evaluating multiple netwrk chices during the peratinal prcess t determine what strategy is best fr tday s demand. The pwer f LCC can be used t determine the impact f chsing ne netwrk path ver the ther, fr example: Ruting certain rders thrugh nn-standard/ptinal sea prts and/r airprts Dynamically evaluating the results f preferring certain mdes r carriers Changing certain rder pririties n-the-fly t impact shipment cnslidatin While there are sme similarities with the strategic netwrk design scenaris, the cncept here is t evaluate multiple netwrk chices at the peratinal level based n tday s data and within the cnfines f the peratinal flexibility prvided within the current netwrk. This apprach allws fr the simultaneus dynamic evaluatin f multiple peratinal scenaris, determining the ptimal slutin fr what will wrk best tday. This cntrasts with tls available frm ther vendrs where multiple netwrk chices are evaluated and nly ne, ptentially sub-ptimal, slutin is prvided. Intrductin t Oracle Engineered Systems Oracle Engineered Systems cmbine best-f-breed hardware and sftware cmpnents with gamechanging technical innvatins. Designed, engineered, and tested t wrk best tgether, Oracle Engineered Systems can pwer the clud r streamline data center peratins t make traditinal 9
deplyments even mre efficient. The cmpnents f Oracle Engineered Systems are preassembled fr targeted functinality and then as a cmplete system ptimized fr extreme perfrmance. By taking the guesswrk ut f these highly available, purpse-built slutins, Oracle delivers a slutin that is integrated acrss every layer f the technlgy stack a simplicity that translates int less risk and lwer csts fr yur business. Only Oracle can innvate and ptimize at every layer f the stack t simplify data center peratins, drive dwn csts, and accelerate business innvatin. Oracle Exalgic Elastic Clud Intrductin Oracle Exalgic Elastic Clud is an Oracle Engineered System n which enterprises deply Oracle business applicatins, Oracle Fusin Middleware r third-party sftware prducts. Exalgic cmes prebuilt with cmpute ndes, memry, flash strage and centralized strage, all cnnected using InfiniBand in a high redundancy architecture delivering five-nines availability, with fault tlerance and zer-dwn-time maintenance. Exalgic dramatically imprves perfrmance f Oracle Applicatins, Fusin Middleware and 3rd party applicatins withut requiring cde changes and reduces csts acrss the applicatin lifecycle, frm initial set-up t n-ging maintenance, as cmpared t cnventinal hardware platfrms. Oracle has made unique ptimizatins and enhancements in Exalgic firmware, Exalgic sftware, and in Oracle s middleware and Oracles applicatins. These include n-chip netwrk virtualizatin based n near zer latency Infiniband fabric, high-perfrmance Remte Direct Memry Access, wrklad management in Oracle Weblgic server and ptimizatins in Oracle Cherence and Oracle Traffic Directr. Exalgic includes supprt fr a highly ptimized versin f the Oracle VM, which significantly utperfrms cmparable virtualizatin slutins and is an ideal cnslidatin platfrm fr Oracle Applicatins. Templates t simplify install, deplyment and cnfiguratin f Applicatins n Exalgic are available. Oracle Exadata Database Machine Oracle Exadata Database Machine is Oracle s database platfrm delivering extreme perfrmance fr database applicatins including Online Transactin Prcessing, Data Warehusing, Reprting, Batch Prcessing, r Cnslidatin f mixed database wrklads. Exadata is a pre-cnfigured, pre-tuned, and pre-tested integrated system f servers, netwrking and strage all ptimized arund the Oracle database. Because Exadata is an integrated system, it ffers superir price-perfrmance, availability and supprtability. Exadata frees users frm the need t build, test and maintain systems and allws them t fcus n higher value business prblems. Exadata uses a scale ut architecture fr database servers and strage. This architecture maintains an ptimal strage hierarchy frm memry t flash t disk. Smart Scan query fflad has been added t the strage cells t fflad database prcessing. Exadata implements Smart Flash Cache as part f the strage hierarchy. Exadata sftware determines hw and when t use the Flash strage fr reads and write as well as hw best t incrprate Flash int the database as part f a crdinated data caching strategy. A high-bandwidth lw-latency InfiniBand netwrk running specialized database netwrking prtcls cnnects all the cmpnents inside an Exadata Database Machine. In additin t a high perfrmance architecture and design, Exadata ffers the industry s best data cmpressin t prvide a dramatic reductin in strage needs. 10
SPARC SuperCluster Oracle s SPARC SuperCluster is the wrld s mst efficient multi-purpse engineered system, delivering extreme efficiency, cst savings, and perfrmance fr cnslidating missin critical applicatins and rapidly deplying clud services. Oracle s SPARC SuperCluster represents a cmplete, pre-engineered, and pre-tested high-perfrmance enterprise infrastructure slutin that is faster and easier t deply than a cllectin f individual database and applicatin servers. The system cmbines innvative Oracle technlgy the cmputing pwer f Oracle s SPARC servers, the perfrmance and scalability f Oracle Slaris, the Sun ZFS Strage Appliance, the ptimized database perfrmance f Oracle Database accelerated by Oracle Exadata Strage Servers, and a high-bandwidth, lw-latency InfiniBand netwrk fabric int a scalable, engineered system that is ptimized and tuned fr cnslidating missin-critical enterprise applicatins Oracle s SPARC SuperCluster prvides bth the capacity fr grwth, as well as the fine-grained server virtualizatin needed t islate individual applicatin cmpnents. With multiple layers f enterprise applicatin infrastructure cnslidated nt a high-perfrmance, highly available SPARC SuperCluster system, deplyment speed, applicatin perfrmance, and availability can all be ptimized. Designed as a pre-cnfigured, pre-tested, and ready-t-deply SPARC SuperCluster engineered system, the slutin prvides a cmplete and ptimized infrastructure slutin fr applicatins, built arund rbust cmpute, netwrking, strage, virtualizatin, and management resurces. The result is a system that is rders f magnitude easier t manage, and up t five times faster t deply than alternatives, all while ccupying cnsiderably less real estate requiring less pwer. Furthermre, the SPARC SuperCluster system prvides full built-in redundancy resulting in a highly reliable infrastructure withut single pint f failure. An issue with ne cmpnent will nt impact ther cmpnents f the system ffering true islatin. Custmers can cnslidate multiple envirnments with minimum disruptin, withut fear f perfrmance degradatin, and the ability t achieve required service levels. Oracle Engineered Systems and Oracle In-Memry Lgistics Cmmand Center As nted previusly, unlike ther netwrk slvers that perate n aggregated and simplified mdels f the lgistics netwrk and emply high-level estimates f cst, Oracle In-Memry Lgistics Cmmand Center (LCC) simulates the impact f scenari changes n the lgistics netwrk by using a detailed representatin f the peratinal envirnment cmplete with the actual netwrk cnfiguratin, actual cnstraints and actual csts. It des this by running the same peratinal slves that are emplyed in the perating envirnment. This presents special challenges fr bth strategic and peratinal scenari management. Strategic scenari management entails analyzing the impact f scenari changes ver lng hrizns typically ver mnths and years. Indeed, multiple scenaris and respnse strategies will need t be tested simultaneusly t determine the ptimal respnse plicies. Each such scenari will require running many daily r weekly peratinal plans ver lng time hrizns and cllating the results int apprpriate analytics fr easy analysis by the user. There are several challenges here. First, each 11
scenari will have different changes t the netwrk cnfiguratin and will need t be represented accurately in its wn wrkspace s that the apprpriate peratinal slves can be run. Als, multiple scenaris will need t be executed simultaneusly requiring many different cmputatinally-intensive algrithms t be executed in parallel. Further, analytics invlving summarizing the slutin int visual representatins f multiple metrics needs t run in near real-time. Operatins scenaris management requires that fr each daily r weekly peratinal demand, r set f rders requiring a lgistic plan, multiple scenaris invlving changes t netwrk cnfiguratins r planbjectives need t be analyzed simultaneusly and the resulting slutin presented in prper detail fr the user r the system t determine the ptimal ne and deply fr executin. While the time hrizns here are shrter, there may very well be mre detailed scenari changes and pssibly multiple iteratins befre the apprpriate slutin t deply is chsen. Als, the need fr extreme perfrmance enabling seamless integratin int the daily peratinal prcess is crucial. All this requires bth extreme memry and data management and extreme perfrmance t execute the analysis in apprpriate timeframes. Only Oracle Engineered Systems prvide a unique platfrm fr these requirements. The pwerful cmbinatin f Oracle WebLgic, tuned t run faster n Exalgic, cmmunicating via InfiniBand t the Oracle In-Memry Lgistics Cmmand Center database n Exadata, using the Smart Scan and Flash Cache capabilities, yields unprecedented perfrmance gains in runtime fr these peratinal slves. Oracle Exalgic and Exadata enable this industry-leading perfrmance thrugh vertical integratin between hardware and sftware and the eliminatin f I/O bttlenecks thrugh Exabus technlgy. The use f InfiniBand as the netwrking fabric within Exadata ensures the lwest latency fr messages and the highest bandwidth fr data transfers. The Exadata Smart Scan capability speeds up the dataintensive queries f the transprtatin planning prcess by leveraging the prcessing pwer f Exadata Strage Servers t scan and filter ut results. By mving queries t strage instead f mving the data t the database servers, lng-running rder, rate and itinerary queries ften cmplete 10 times faster than n cnventinal systems. The Exadata Smart Flash Cache capability uses Flash memry t dramatically reduce the time t read and write database recrds. The intelligence in Smart Flash Cache transparently mves active database blcks frm disk t Flash in real time, thus ensuring that "ht" data, such as rates and itineraries, is in Flash memry when the next access ccurs. Blcks that shuld nt be in Flash are similarly recgnized, which maximizes the amunt f space in Flash fr active data. On Exalgic, the JVM makes mre efficient netwrk I/O calls using cllectins f chunked data resulting in higher thrughput fr LCC. The JVM ptimizes bject management with fewer cpies resulting in reduced garbage cllectin and less heap size, which in turns leads t superir verall applicatin perfrmance. LCC uniquely prvides the ability t cnfigure the applicatin cmpnents t use ne thread r hundreds f threads. On traditinal platfrms, scaling applicatins t this high level f threading typically expses the bttlenecks in the infrastructure. Netwrks becme flded, disk access grinds 12
the system t a halt, and thread cntext switching verhead is expsed. This is nt the case n the Oracle Exalgic and Exadata platfrm. When Oracle develpers tested LCC perfrmance n the Oracle Exalgic and Exadata platfrm, the multi-threaded prcessing did nt expse any bttlenecks in the infrastructure, but instead pinted t cntentin in java and applicatin cde. Oracle develpers made sme cde imprvements t LCC and t jrckit as a result f this perfrmance testing n the Oracle Exalgic and Exadata platfrm. They eliminated cntentin frm these highly threaded cnditins, bringing simultaneus peratinal slve perfrmance n the Oracle Exalgic and Exadata platfrm t levels never achieved befre n ther platfrms. Benefits f Oracle In-Memry Lgistics Cmmand Center At the macr level, Oracle In-Memry Lgistics Cmmand Center (LCC) prvides cmpanies with a means t quickly analyze and imprve lgistics netwrk perfrmance, bth in the shrt term and in the lng run. Frm a benefit quantificatin standpint, this culd translate int higher EBIT margin, imprved delivery perfrmance (On-time and In-full), and increased inventry turns. In Next- Generatin Supply Chains: Efficient, Fast and Tailred, PwC summarizes the results f their 2013 Glbal Supply Chain Survey 2. Based n the respnses frm ver 500 executives acrss the glbe, they dcumented the ptential benefit imprvement percentages by being a supply chain leader in the graphic belw (see figure 2) Figure 1: Cmpanies that fcus n imprving their supply chain perfrmance cnsistently utperfrm their peers financially T drive these imprvements in prfit, service and csts, the fllwing are examples f specific benefit levers enabled by LCC. Build a Resilient Supply Chain 2 Next-Generatin Supply Chains: Efficient, Fast and Tailred, PWC Glbal Supply Chain Survey 2013, http://www.pwc.cm/glbalsupplychainsurvey2013 13
The ability f LCC t analyze a variety f supply chain risk management scenaris allws the custmer t build resilience int their supply chain. Whether planning fr netwrk disruptins, fuel r cst risks, supplier r service prvider risk r any f the ther risk management scenaris (see figure 3 belw frm a recent Bz Allen Hamiltn study 3 ), LCC can determine the impact n the lgistics netwrk f each f these risks and determine the ptimal respnse strategies t minimize disruptin. A critically imprtant aspect f the apprach emplyed by LCC is t analyze the impact using realwrld data and peratinal slves, leading t strategies that are readily implementable when needed. Even mre imprtant is the ability t perfrm this multi-scenari analysis in a rapid manner. The mre high-quality scenaris that can be reviewed in a rapid manner, the better the likelihd f minimizing disruptins. The ability t prepare fr and respnd quicker t supply chain disruptins will g a lng way twards increasing prfit and custmer service, while minimizing nn-value-add lgistics csts. Imprve Supply Chain Agility Figure 2: Greatest supply chain risks t rganizatins The ability LCC prvides t simulate netwrk perfrmance under varius strategic and peratinal scenaris helps determine the best way t adapt the supply chain t these ptential changes. This results in imprved peratinal agility, respnsiveness, and quicker time t market. Fr example, imagine if the utput f a mnthly sales and peratins planning prcess reveals a 20% increase in demand next quarter due t a new prduct intrductin. Wuldn t it be advantageus t analyze the impacts f the demand increase acrss yur lgistics netwrk t identify and adapt t anticipated carrier capacity bttlenecks, cst spikes and service level issues? Anther example wuld be changes t yur key supplier base lcatins and/r ff-shre vs. near-shre manufacturing evaluatins. With its varius capabilities fr scenari management and lgistics-specific predictive analytics, LCC can assist in the design and structure f the lgistics netwrk fr future evlutin f the netwrk. This 3 Prepare t Bunce Back: The Imprtance f Incrprating Resilience int the Supply Chain, Bze Allen Hamiltn, http://www.bzallen.cm/insights/insight-detail/42376656 14
can be a particularly useful benefit when determining future budget impacts, evaluating merger/acquisitin pprtunities, r custmer/channel prfitability. Maximize Business Advantage and Imprve Cmpetitiveness: Operatinal Excellence Determining the best lgistics strategy based n bth strategic netwrk design and by evaluating multiple strategies during daily executin can ensure that the lgistics netwrk always perates in a manner designed t maximize business advantage, whether that be t reduce cst, maximize prfit, ptimize service, r meet sme ther business bjective. Imagine the ptential f being able t take tmrrw s lgistics/transprtatin requests, create multiple plans based n cst minimizatin r service maximizatin, and make actinable decisins based n crprate bjectives (bth lng and shrt term). Examples include: Relaxatin f lgistics cnstraints (such as equipment capacities r delivery windws) in a transprtatin plan in rder t lwer verall csts at the end f a fiscal reprting perid Creatin f transprtatin plans that fcus n custmer service levels and n-time delivery, instead f csts, after a new high-value custmer has been added t the supply chain. With this unique apprach, LCC enables the lgistics netwrk t be structured such that it perates in the mst efficient manner pssible, leading t strngly differentiated capability and distinct cmpetitive advantage. Build a Sustainable Supply Chain By accurately simulating lgistics netwrk peratins under different scenaris, LCC allws the quantificatin f the envirnmental impact f lgistics peratins and aids in the determinatin f strategies t build a sustainable supply chain. This allws cmpanies t identify suitable sustainability plicies that can be implemented and incrementally intrduced int the peratinal envirnment as needed. Nt nly des sustainability help prtect the envirnment, it als enables brand prtectin, intrductin int new markets with ec-friendly gds, cst reductins, and the ability t cmply with increasing gvernment regulatins. In the graphic belw, frm an Octber 2012 Accenture Outlk article 4 called Why a sustainable supply chain is gd business, bth shrt-term and lng-term value frm imprved sustainability prgrams have been identified. 4 http://www.accenture.cm/us-en/utlk/pages/utlk-jurnal-2012-why-sustainable-supply-chain-isgd-business.aspx 15
Figure 3: The Sustainability Payff Drive New Revenue and Imprve the Tp-line By emplying LCC t analyze hw best t leverage synergies with the existing netwrk, cmpanies can determine the business impact f adding new custmers and new businesses t the netwrk. Als, adding incremental demand and vlume, may present pprtunities t expand current distributin netwrks, intrduce new mdes, establish new service lead-time plicies, r create supplier backhaul prgrams, all while evaluating the impact t custmer service and the bttm line. This ability t analyze the impact f new custmers and identify which nes wuld be prfitable helps expand revenue surces and psitively impacts the tp-line. Lwer Ttal Cst f Ownership Gartner attributes 71% f a system s ttal cst f wnership t staffing (peple wh maintain systems) and implementatin (peple wh build and deply systems) 5. Oracle Exalgic and Exadata prvide dramatically reduced ttal cst f wnership by reducing the amunt f wrk that peple have t d. This allws rganizatins t fcus their limited resurces n activities that cntribute t the tp-line revenue. 5 Philip Winslw, Dr. Exalve: Hw I Learned t Stp Wrrying (abut Sun) and Lve Exalgic T, Credit Suisse, Nv. 23 2010 16
Figure 4: Ttal Cst f Ownership fr Infrmatin Technlgy Systems Oracle Exalgic and Exadata reduce the ttal cst f wnership in the fllwing three ways: The systems are pre-built s there is n need t design, prcure, assemble, deply, and tune each ne. The systems are easier t manage because f the hlistic management apprach that is taken with Oracle Enterprise Manager. Oracle als prvides Platinum Services, which is a free supprt entitlement under standard hardware supprt fr Exalgic and Exadata. Instead f being a cllectin f individual cmpnents, Oracle Exalgic and Exadata are single chesive systems prviding all the benefits f being single systems. Oracle Exalgic and Exadata are maintained, managed, mnitred, deplyed and tested as ne system. 17
Figure 5: Cmprehensive Lifecycle Management with Oracle Engineered Systems The cmpnents f Oracle Exalgic and Exadata are engineered t wrk well tgether, leading t such benefits as single file patches and strage t applicatin management thrugh Oracle Enterprise Manager. Oracle Enterprise Manager has even been mdified t wrk better with Oracle Exalgic and Exadata. In additin t prviding management and mnitring capabilities, Oracle Enterprise Manager 12c supprts static (self-service) and dynamic (real-time lad-based) prvisining. When it is used in this capacity, Oracle Exalgic is used as a pl f hardware resurces that can be either statically r dynamically prvisined fr different uses. Fr example, hardware in a single Oracle Exalgic system culd be prvisined t a preprductin envirnment fr testing, a prductin envirnment fr the primary transprtatin peratins, and then finally t a what-if develpment envirnment as a test bed fr new transprtatin capabilities. Prvisining in this manner is scaling ut an envirnment. This drives up resurce utilizatin, which allws fr a greater return n investment. Finally, Oracle als prvides Platinum Services, which is a free supprt entitlement under standard hardware supprt fr Oracle Exalgic and Exadata. Platinum Services prvides cmprehensive practive mnitring, a specialized supprt team, Phne Hme capabilities fr autmated service requests, free quarterly patching frm the perating system dwn, and SLAs as fllws: 1) 5 minute fault ntificatin, 2) 15 minute restratin r escalatin t develpment, and 3) 30 minute jint debugging with develpment. This reduces the lng-term ttal cst f wnership 18
The integrated nature f Oracle Exalgic and Exadata, the quality f the prducts n their wn, and the value f the integratins between these best-f-breed prducts allw fr unparalleled management, cnslidatin and time-t-market, leading t a reduced ttal cst f wnership. Faster Time t Value LCC has been designed, built, scaled, and tested frm the grund-up as a hardware and sftware package specifically and exclusively fr Oracle Engineered Systems. This enables highly accelerated implementatins because the In-Memry prducts were built nly fr the targeted platfrm and take advantage f unique capabilities f the stack thrughut the prduct design including develpment, testing, and perfrmance tuning. When custmers deply the system, the sftware and hardware are deplyed in unisn and perate as a chesive slutin, reducing verall cst f deplyment and wnership. In traditinal implementatins, Oracle sftware applicatins are installed and cnfigured n a custmer selected hardware system, and the time taken t install, tune and tailr the slutin fr a custmer s hardware can be time cnsuming and cstly, requiring expertise n the applicatin, expertise n the hardware, and the knwledge f the prper alignment between these tw slutin elements. This time delay has a direct cst in terms f the required wrk effrt t tune the hardware-sftware slutin in additin t an pprtunity cst in terms f delayed benefit realizatin. In additin, there is the risk f nt achieving the ptimal hardware-sftware cnfiguratin, which may result in subpar perfrmance and additinal csts and time delays assciated with revising the hardware cmpnents. Deplying LCC n Oracle Engineered Systems prvide a highly valuable alternative. Oracle Engineered Systems reduce the time-t-value and implementatin cst fr the business. LCC requires shrter deplyment and cnfiguratin times when using Oracle Engineered Systems since it will be available as an Oracle Virtual Machine (OVM) template. These OVM templates are ready t be deplyed n Oracle Engineered Systems as precnfigured, certified applicatin instances ready t run and cntain a full cmputing cnfiguratin pre-installed including Oracle Enterprise Linux, Oracle Weblgic Server, LCC, cmbined with settings, cnfiguratin, and tuning already dne. These OVMs can als be deplyed autmatically t an Oracle Exalgic machine using Oracle VServer that manages the OVM instances n an Exalgic machine. Cnclusin Strategic and peratinal scenari management is central t creating a rbust, resilient and prfitable lgistics netwrk. Unlike ther slutins that utilize highly simplified mdels f the netwrk, Oracle In-Memry Lgistics Cmmand Center takes a pwerful and mre effective apprach t strategic and peratinal scenari management. Oracle In-Memry Lgistics Cmmand Center (LCC) is the nly prduct available that utilizes the pwer f Oracle s Engineered Systems and leverages the best-in-class lgistics platfrm f Oracle Transprtatin Management. LCC uniquely determines ptimal lgistics strategies by simulating actual peratins using detailed peratinal data abut the netwrk. This allws fr an accurate representatin f the results f each scenari and fr a realistic analysis that yields implementable respnse plicies. The benefits f this new apprach t lgistics netwrks scenari 19
management include: increased supply chain resiliency and agility, cst and service imprvements thrugh peratinal excellence, imprved prfitability, and achievement f higher levels f supply chain sustainability. 20
Oracle In-Memry Lgistics Cmmand Center: Overview and Business Value March 2013 Authr: Srini Rajagpal Cntributing Authrs: Dminic Regan, Kerry Wiggintn Oracle Crpratin Wrld Headquarters 500 Oracle Parkway Redwd Shres, CA 94065 U.S.A. Wrldwide Inquiries: Phne: +1.650.506.7000 Fax: +1.650.506.7200 Cpyright 2013, Oracle and/r its affiliates. All rights reserved. This dcument is prvided fr infrmatin purpses nly, and the cntents heref are subject t change withut ntice. This dcument is nt warranted t be errr-free, nr subject t any ther warranties r cnditins, whether expressed rally r implied in law, including implied warranties and cnditins f merchantability r fitness fr a particular purpse. We specifically disclaim any liability with respect t this dcument, and n cntractual bligatins are frmed either directly r indirectly by this dcument. This dcument may nt be reprduced r transmitted in any frm r by any means, electrnic r mechanical, fr any purpse, withut ur prir written permissin. Oracle and Java are registered trademarks f Oracle and/r its affiliates. Other names may be trademarks f their respective wners. Intel and Intel Xen are trademarks r registered trademarks f Intel Crpratin. All SPARC trademarks are used under license and are trademarks r registered trademarks f SPARC Internatinal, Inc. AMD, Optern, the AMD lg, and the AMD Optern lg are trademarks r registered trademarks f Advanced Micr Devices. UNIX is a registered trademark f The Open Grup. 0113 racle.cm