Ebook Your Complete Guide To Modern Supply Chain Management

EbookYour Complete Guide toModern SupplyChain ManagementA Handbook for Innovation-Focused Business Leaders

Learn More about SCM CloudTable of ContentsSupply Chain Management for aDemand-Driven WorldData Analytics for SCM: Getting from Insightto ActionThe Limitations of Legacy SCMSCM Cloud Sharpens YourCompetitive EdgeA revolution in customer behavior and expectations has emerged as acatalyst for supply chain transformation. page 3Today’s demand-driven and increasingly dynamic supply chainsrequire capabilities that traditional, on-premises SCM systems simplyweren’t designed to deliver. page 5Tomorrow’s Supply Chain, TodayThe future of SCM is already here—and it’s based on a very differentattitude toward innovation, uncertainty, and change. page 7Table of ContentsToday’s supply chain leaders are learning that what you know isn’t asimportant as what you’re able to do with that knowledge. page 9More organizations are tapping the potential to turn SCM from acost-control tactic into a revenue-generating engine. page 11Oracle: Your Partner on the Path to SCM SuccessEnd-to-end visibility and insights that support action are just someof the ways Oracle SCM Cloud delivers demand-driven supplychains. page 13Your Complete Guide to Modern SCM2

Learn More about SCM CloudSupply Chain Managementfor a Demand-Driven WorldSupply chain has become the battleground for customer loyalty as companiesrespond to fast-changing demands and business conditions. New technologiesenable deeper visibility and more precise control in supply chain management(SCM) for both B2B and B2C brands, and companies that adopt modern,cloud-based SCM systems are being rewarded with efficiency gains, higherproductivity, and growing revenues and profits.2. Changing Expectations: Online companies such as Amazon and Deliveroodidn’t just reshape their industries; they also set off a revolution in B2B buyerexpectations for:Smaller and more frequent deliveriesFree-of-charge services with real-time visibility into the location and statusof goodsUnique and personalized product and service “experiences”These expectations require more agility and real-time processing thantraditional SCM technology and practices can deliver.It’s no surprise that the C-suite is paying more attention to SCM and raisingexpectations for top- and bottom-line contributions from supply chainmanagers. Two long-term trends are contributing to this shift:By the end of 2018, fullyone-third ofall companies1. Massive disruption: Over the past decade, market disruptors usedtechnology as a virtual battering ram—knocking down barriers to competitionand obliterating traditional order-to-deliver business models. This started inthe B2C sector and has spread to B2B. While the rate of change may varyacross industries, it’s now clear that there’s nowhere to hide from the realitiesof digital disruption.will find themselves disrupted bydigitally enabled competition.1IDC, Making Supply Chain Operations More Effective and Efficient by Moving to the Cloud with OracleSCM Cloud, June 20181Chapter 1: Supply Chain Management for a Demand-Driven WorldYour Complete Guide to Modern SCM3

Learn More about SCM CloudToday’s Reality: Customers DictateSCM SuccessBusinesses of all types and sizes—retail, wholesale, manufacturers,logistics service providers, distributors, B2C and B2B—are identifying hugeopportunities, and equally significant risks, around capabilities that allow themto control and impact customer experience.Few applications will play a bigger role in those efforts than SCM.3 However,legacy SCM systems were typically not built to meet modern requirements.They can be very good at performing activities for which they were preparedand optimized, but they simply don’t have the capabilities needed for today’scustomer-centric supply chains.Consumers are willing to pay up to 16% morefor a better customer experience.4Over the next decade,75% of online customers expect aresponse to an inquiry within five minutes.5Customers who switch due to poor service costcompanies approximately 1.6 trillion.6of industry growthwill be captured by companiesthat successfully engage directlywith customers.2Simon Ellis, “Sales & Marketing Report 2017: The Progress Report,” Consumer Goods Technology,June 2, 201723IDC, Is Customer Experience Now the Driving Force for the Supply Chain? November 20174PwC, “Experience is everything. Get it right.” March 26, 2018McKinsey & Company, Customer experience: Creating value through transforming customer journeys,Number 1, Winter 201656 Accenture,Chapter 1: Supply Chain Management for a Demand-Driven WorldDigital Disconnect in Customer Engagement, 2016Your Complete Guide to Modern SCM4

Learn More about SCM CloudThe Limitations ofLegacy SCMTraditional, on-premises SCM employs a linear and fairly rigid approach todesigning, sourcing, making, and delivering goods.The Supply Chain of the PastThe Linear Paradigm1. Seller/supplier control: Organizations built the products they believedcustomers would buy.2. “Push” distribution: Products were distributed via channel partners forsale to consumers.3. Single-channel purchasing: Customers typically purchased productsthrough a single retail outlet or sales StoreCustomerThis paradigm no longer works as the marketplace has become connected.Today’s demand-driven and increasingly dynamic supply chains requirecapabilities that legacy SCM systems simply weren’t designed to deliver.Chapter 2: The Limitations of Legacy SCMYour Complete Guide to Modern SCM5

Learn More about SCM CloudWhere Legacy SCMTechnology FailsFragility vs. agility: Agility is an incredibly valuable capability for today’s supplychains because fast adjustments mean less disruption and enhanced service.Traditional, on-premises SCM technology is often prone to displays of fragilityinstead: demanding interventions, modifications, and workarounds to keepfunctioning as customer and business requirements change.Demand and fulfillment: Third-party systems and processes to supportspecific channels are common in legacy SCM systems, and this createschallenges around visibility, service consistency, and an understanding of thetrue cost to serve. In an omnichannel environment, firms need (and customersincreasingly expect) a consistent and seamless experience across channelsand device types—a major challenge for systems architected for a singlechannel world.Fulfillment complexity: Agile businesses use multiple fulfillment modelsto reduce inventory costs, cut order lead times, and avoid lost sales. Here,too, a legacy SCM system may offer native support for certain fulfillmentmethods/channels but will rely on third-party tools, customizations, or bespokedevelopment to work with others.Time-to-market and/or customization bottlenecks: Same-day fulfillmentand customized products can be powerful differentiators, yet they can alsobe high-risk activities when integration gaps or data quality issues in legacySCM systems result in companies making promises their manufacturing andfulfillment systems can’t always keep.Working Toward a Friction-FreeSupply ChainOracle SCM Cloud users reported an average90% reduction in cycle time36% faster product deliveryCould your business benefit from these types of end-to-endefficiency gains?Source: IDC, Making Supply Chain Operations More Effective and Efficient by Moving to the Cloud withOracle SCM Cloud, June 2018.Visibility gaps: Buyers expect order and transaction data at their fingertips.Some of this information may be available using a legacy SCM system, butsome of it is likely to be inaccessible or inaccurate.Chapter 2: The Limitations of Legacy SCMYour Complete Guide to Modern SCM6

Learn More about SCM CloudTomorrow’s SupplyChain, TodayTraditional, on-premises SCM is tied to entrenched approaches; it forcesbusinesses into reactive and defensive postures; and it equates change withcost, complexity, and risk. Modern SCM, on the other hand, enables innovative,proactive, and continuously improving supply chain practices. The essentialelements of a modern, cloud-based SCM system reflect and reinforce theconcept of building tomorrow’s supply chain, today.“People look at supply chain in pieces and ithas to be looked at holistically. The way totruly analyze supply chain is point of order topoint of fulfillment and doing that in as lean away as possible.”—Karl Glassman, Chief Operating Officer, Leggett & PlattChapter 3: Tomorrow’s Supply Chain, TodayWhat Does a ModernSupply Chain Require?Unified OpenArchitecturePowerful Cloud-BasedApplicationsEasilyAccessible DataIntegrated EmergingTechnologiesComfortableRoad MapA Partner Who UnderstandsYour BusinessSecurityAutomatic Upgradesto the Latest ReleaseYour Complete Guide to Modern SCM7

Learn More about SCM CloudThe 6 Defining Traits ofSCM Cloud ApplicationsIntegrated. Integration creates more efficient, low-friction supply chainprocesses and provides end-to-end visibility into those processes soyou can solve problems instead of just moving them to another part ofthe enterprise.Intelligent. As well as exception-based processing, modern, cloud-based SCMincreasingly uses AI and machine learning to automate supply chain processesthat previously required human monitoring and manual intervention.Learn More About How Intelligent Applications EnableModern SCM. View the Adaptive, Intelligent Supply Chain videofor a deep-dive review of how technology is reshaping SCM—as adiscipline and as an enterprise application.Demand-driven. Analytics and reporting capabilities, for example,enable cost-effective manufacturing and distribution of customizedproducts or services.User experience. Cloud-based SCM is responsive and intuitive, and gives usersthe ability to personalize their workspaces so that data can be presented in away that naturally adds value.Agile. A cloud-based SCM system is not just responsive to change, butcan also be an enabler for change—in the marketplace, in customerpreferences, and in the environment where manufacturing anddistribution takes place. It gives you the information to understand in realtime what is changing and how to react.Open platform. Cloud-based SCM assumes that technology innovation willcontinue to drive rapid and often unpredictable change. It implements openstandards and modular architectures to accommodate upgrades andimprovements, to minimize change-related disruptions, facilitate integrationwith other applications, and always keep you on the current release.Chapter 3: Tomorrow’s Supply Chain, TodayYour Complete Guide to Modern SCM8