Ebook Your Complete Guide To Modern Supply Chain Management

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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

Learn More about SCM CloudData Analytics and SCM:Getting from Insightto ActionThe most successful organizations don’t just assess demand; they actuallypredict and anticipate what their customers want, as well as where demand willbe greatest.Armed with these predictive insights, a company can remove the element ofchance from its innovation and commercialization, planning, manufacturing,logistics, and inventory-carrying decisions. It can also improve customerexperience by enabling the same rapid fulfillment and delivery practices thatdefine the very best consumer ecommerce brands today.A modern, cloud-based SCM solution is built on three capabilities that ensureyou can plan, implement, and respond to supply chain events in real time:1. Orchestration: Supply chain decisions that drive coordinated changesacross every system, every transaction, and every relevant trading partner.2. Responsiveness: Sequential and batch planning is a recipe forwaiting—and for waste. Cloud-based SCM, by managing the exceptions,uses a continuous monitoring and response model to execute decisions andimplement changes virtually in real time.3. Clarity: Cloud-based SCM integrates your planning and reporting data topresent a single view of the truth. Decision-makers get the confidence thatthey’re always solving the right problems, at the right time and place.SCM Cloud EssentialsView the infographicChapter 4: Data Analytics for SCM: Getting from Insight to ActionYour Complete Guide to Modern SCM9

Learn More about SCM CloudSCM Cloud EssentialsModern SCM uses three capabilities to ensure that data-driven insights cansupport fast and effective supply chain execution.1. Orchestration2. ResponsivenessNetwork Juggling disparatetechnologyand andScheduling3. ClarityTo:Supply Chain ityOracle Supply ChainPlanning CloudLeveraging singlecloud technology forend-to-end processesThe Result: Unified planning, analytics,and process orchestration with easierimplementation, use, and upgradesSales &OperationsPlanningChapter 4: Data Analytics for SCM: Getting from Insight to ActionSource toSettlePlan toProduceOrder toCashYour Complete Guide to Modern SCM

Learn More about SCM CloudSCM Cloud EssentialsModern SCM uses three capabilities to ensure that data-driven insights cansupport fast and effective supply chain execution.1. Orchestration2. Responsiveness3. ClarityPlanPlanSimulateFrom:From waiting onsequential anddisconnectedbatch planningTo:To continuouslyrespondingto changesAnalyzeThe Result: Rapid monitoring, simulation,and response capabilities enhance thequality and speed of hapter 4: Data Analytics for SCM: Getting from Insight to ActionYour Complete Guide to Modern SCM

Learn More about SCM CloudSCM Cloud EssentialsModern SCM uses three capabilities to ensure that data-driven insights cansupport fast and effective supply chain execution.1. Orchestration2. Responsiveness?3. ClarityFrom:From reconcilingmultiple plansand receivingdelayed reportsTo:To dynamicallyanalyzing and actingon one versionof the truthExternalDataThe Result: End-to-end visibility withflexible segmentation improves plannerproductivity and business agilityGlobal Supply Network ModelERP 1LegacyERP 2Chapter 4: Data Analytics for SCM: Getting from Insight to ActionERP 1LegacyERP 2Your Complete Guide to Modern SCM

Learn More about SCM CloudEmbrace AI to Discover the Valuein Big Data“Analysis paralysis” is a risk for any company that taps into the massive storesof structured and unstructured data readily available today. AI (what Oraclerefers to as “adaptive intelligence”) avoids this dilemma by assessing relevanceand business value, and identifying correlations that might otherwise gounnoticed, rather than simply crunching numbers.Consider one example of how AI informs supply chain action:Oracle AdaptiveIntelligence AppsHow Adaptive Intelligence Apps Link Insightsto Action for SCMAI learns and adapts based upon outcomes—i.e., how you adjust recommendedactions and upon supplier/partner responses to recommended actions.Data and InsightsDecisions and ActionOracle Data CloudBest-fit candidate profiles5 billion anonymousconsumer/business profiles45,000 dimensions togroup profilesBest-fit suppliersBest freight providersInventory optimizationDelivery optimizationOrganizational DataSupplier historyFinancial ratiosOutstanding invoicesTargeted dynamic discountingDynamic payment-term decisionsInvoice discount ratesReal-time cash flow optimizationIdentificationand toalertingto potentiallyIdentify and alertpotentiallyfraudulent suppliersChapter 4: Data Analytics for SCM: Getting from Insight to ActionYour Complete Guide to Modern SCM10

Learn More about SCM CloudSCM Cloud Sharpens YourCompetitive EdgeAny time a business considers a technology investment, one question takescenter stage: Do the numbers make sense? According to research data froma number of sources, the answer across a wide range of potential businessbenefits is an unqualified “Yes.”Supply Chain Excellenceby the NumbersSuccess with SCM Cloud: Examplesfrom the FieldIndividual customer examples provide another perspective on the benefits ofsolutions such as Oracle SCM Cloud. Supply chain excellence can appear inany number of ways—but ultimately, the numbers always tell the same story.Nature’s Bounty Co. acceleratedinnovation by adopting OracleSCM CloudWatch the videoLearn moreBlocPower uses Oracle SCMCloud to help fight climate changewith IoTWatch the videoChapter 5: SCM Cloud Sharpens Your Competitive EdgeYour Complete Guide to Modern SCM11

Learn More about SCM CloudSupply Chain Excellenceby the NumbersDifferent organizations naturally have different priorities for how they improvesupply chain performance and how those gains benefit the business as awhole. With a modern SCM solution like Oracle SCM Cloud, however, thebenefits are clear whether your priority is operational efficiency, cost reduction,customer experience, or even revenue impact (1):Operational Efficiency GainsCompanies that take a more strategic approach, creating an optimalmanufacturing and distribution network (2):Improve plant output by up to 25%Improve inventory turns by up to40%96% of the time28% increase in supply chain team productivityExperience on-time and in-full deliveriesOperational Speed & AgilityDecrease stock shortages by 10% to 30%36% faster product delivery; 90% reduction in cycle timeIncrease gross margins by 6% to 10%Cost SavingsAverage total cost savings 35%; average material cost savings 6%Business Performance Gains1.6% average revenue growth; 6% average gross profit growth(1) IDC, Making Supply Chain Operations More Effective and Efficient by Moving to the Cloud withOracle SCM Cloud, June 2018(2)Chapter 5: SCM Cloud Sharpens Your Competitive EdgeBain & Company, “Turn Your Supply Chain into a Competitive Weapon,” December 12, 2017Your Complete Guide to Modern SCM

Learn More about SCM CloudWinning Big with SCM Cloud:4 Examples of Game-ChangingBusiness BenefitsNahdi MedicalVinomofoGrew vehicle utilization rates by an average of 5% to 10%Sped up order fulfillment by up toIncreased speed of communicating proof of delivery by an average10 hours per shipmentAchieved 99.6% order fulfillment accuracyAchieved a 96% satisfaction rating for shipments receivedRead the customer success storyPanduitSaved US 1 million annually by cutting interbranch freight byReduced fleet expenses as a percentage of sales by nearly4 percentage pointsRead the customer success storyChapter 5: SCM Cloud Sharpens Your Competitive EdgehoursRead the customer success storyMutual MaterialsIncreased fleet utilization by increasing tons per delivery byCut order pick-up window to 23x, improving customer satisfaction75%11.61%Reduced transportation spend by 15%Slashed transportation-related overhead costs by20%Cut transportation-related procurement spend by10%Read the customer success storyYour Complete Guide to Modern SCM12

Learn More about SCM CloudOracle: Your Partner on thePath to SCM SuccessAll products that make up the Oracle SCM Cloud are delivered using secureand massively scalable Oracle-owned and operated cloud platforms. Eachproduct is fully integrated and connected; each offers a modern, personalizeduser experience.Insights That Support ActionOracle SCM Cloud provides the advanced reporting and analytics capabilitiesrequired to implement a modern, demand-driven supply chain. It also providesthe end-to-end visibility and process orchestration that enable an agile,responsive, and efficient approach to SCM.An SCM Investment That PaysCloud ensures your SCM applications are always up to date, deliveringthe platform necessary to adopt new innovations such as IoT, AI/ML, andblockchain. Do the research, run the numbers, and discover the true value ofan investment in Oracle SCM Cloud.End-to-End Visibility for Business Process ExcellenceProduct LifecycleManagement CloudSupply ChainPlanning CloudProcurementCloudOracle SCM Cloud enables you to take control of complex, global supplychains. Gain the end-to-end visibility you need to implement a variety ofintegrated business processes:1. Ideation to Commercialization2.

cost, complexity, and risk. Modern SCM, on the other hand, enables innovative, proactive, and continuously improving supply chain practices. The essential elements of a modern, cloud-based SCM system reflect and reinforce the concept of building tomorrow’s supply chain, today. our Complete Guide to Modern SCM 7 Learn More about SCM Cloud

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