The document discusses the challenges of order fulfillment in manufacturing, high-tech, and retail industries. It finds that managing complex order management systems and multi-channel fulfillment is difficult. Many companies have multiple order capture and fulfillment systems from acquisitions. Meeting customer demand across growing sales channels while controlling costs is a key issue. The document proposes an order orchestration architecture using Oracle Fusion SCM to help companies better integrate systems, gain visibility across inventory, and improve order promising and fulfillment.

1. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.1
Overcoming Order Fulfillment Challenges in
Manufacturing, High-Tech & Retail
Brad Kerr Michael Pearcy
Senior Director, Oracle Senior Manager, Capgemini

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Agenda
 Fulfillment Challenges
 Order Fulfillment Survey Findings
 Architecture for Order Orchestration
 Best Practices
 Case Studies
 Q&A

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Order Fulfillment 2013 Survey
Methodology
 Conducted by Peerless Research Group on behalf of Supply Chain
Management Review and Logistics Management. Sponsored by Oracle
and Capgemini.
 Surveyed 589 supply chain executives in manufacturing, high-tech and
retail businesses around the globe
Summary Findings
 Managing order management systems and fulfillment processes is becoming more
multifaceted and complicated
 The complexity of order management systems, the ongoing challenge of keeping customers
satisfied, adhering to delivery schedules, and combating rising costs are among the major
issues companies now face

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Order Fulfillment Challenges
Acquisitions
Evolving
Business
Models
Channel
Expansion
Integration
Automation
Customer
Satisfaction

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79%
of companies have
3 or more order
capture and
3 or more order
fulfillment systems*
* Supply Chain Management Review 2013 Order Fulfillment Survey

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* Supply Chain Management Review 2013 Order Fulfillment Survey
50%
of manufacturers have acquired
another company or been
acquired in the last three years
45%
increased customer demand for
multiple channels during last 12
months
* Supply Chain Management Review 2013 Order Fulfillment Survey

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Retailers maintain
an average of
4
different types of
selling channels
Supply Chain Management Review 2013 Order Fulfillment Survey
38%
of retailers lack the
software
capabilities &
integration
necessary to offer
multi-channel
fulfillment

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Only 22%
of retailers
leverage their
store inventory
to fulfill online
orders
Supply Chain Management Review 2013 Order Fulfillment Survey

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Fulfillment – Melding Planning and Execution
Strategic Planning
Tactical Planning
Operational
Planning
Execution
Feasibility Optimality
Fulfillment
Order
Promising

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Fulfillment – Melding Planning and Execution
Strategic Planning
Tactical Planning
Operational
Planning
Execution
Fulfillment
Order
Promising
Only 1 in 3 companies feel good
about their order promising
Source: Oracle / Capgemini

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Fulfillment – Melding Planning and Execution
Strategic Planning
Tactical Planning
Operational
Planning
Fulfillment
Order
Promising
Execution
Delivery delays and resultant expediting is
the largest driver of fulfillment costs
Source: Oracle / Capgemini
… think that exception handling
needs improvement

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53%
of high-tech
companies
collaborate with
partners on
demand
forecasting
Supply Chain Management Review 2013 Order Fulfillment Survey
High-tech
companies do not
meet allocations
commitments
50%
of the time

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Web
Call
Center
EDI Internal MobileCatalog
Logistics
Ware
house
Partners
3rd
Party
Finance
Orders ,Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Siloed
Processes
Custom
Point
Integrations
Inconsistent
User
Experience
Monolithic
App
Deployment
Lack of
Standards
Increased
Inventory
Slower
Time to
Market
Increased
Time to
Revenue
Decreased
Order
Accuracy
Increased
Order Cycle
Time
Falling
Customer
Satisfaction
Today’s Environment

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How have companies tried to solve this?

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Today’s Solution Options
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
ERP
Ware
house
Partners Store Finance
Middleware
Niche
Sufficient
Technology?
Logistics

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ERP Solution Challenges
Limited Flexibility
Hard to Integrate
Master Data
Tight Coupling
ERP
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Ware
house
Partners Store FinanceLogistics

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Middleware Solution Challenges
Middleware
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Ware
house
Partners Store FinanceLogistics
Lack of Objects
High $ Implement
High $ Maintain
Not Order Aware

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Coding Required
Coupled with Legacy
Old Tech Platform
Proprietary Toolset
Niche
Web
Call
Center
Direct
Channel
Sales
Mobile
Field
Service
Orders, Changes, Cancellations, Status
Source Selection, Splitting, Monitoring/Updates
Ware
house
Partners Store FinanceLogistics
Niche Solution Challenges

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So, what’s the answer?

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Architecture for Order Orchestration
Business Intelligence
Enrichment Orchestration Task Services &
Interfaces
Order Promising
Runtime Orchestration Work Area
 Rule based fulfillment
process assignment
 Declarative data
transformation
 Automated process
planning & jeopardy
determination
 Automated change
management
 Rules based dynamic
integration
 Dynamic data
transformation
 Visibility into global
supply
 Profitable to Promise
calculation
Centralized Order Tracking Visual process analysis Backlog Management

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BEST PRACTICES
&
CUSTOMER SUCCESS

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Focus on creating a consistent customer
experience across all channels
Invest in a technology platform to enable
these changes and to ease the adoption
of new business processes
Embrace multi-channel fulfillment to up-
sell and cross-sell between product lines
Best Practices for Manufacturers

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Leading Aerospace Manufacturer
• Address high operating
costs due to labor
intensive processes
• Build efficient processes in
an environment with
redundant & disparate
systems & processes
• Increase inventory turns
by improving visibility to
multiple inventory systems
• Resolve issues related to
fragmented product data
Oracle Fusion SCM:
• Fusion Distributed Order
Orchestration
• Fusion Global Order
Promising
• Fusion Product Hub
• Oracle BPM
• Capgemini
Challenge Solution
 Intelligent, touch free
order routing
 Seamless integration with
legacy systems via DOO
 Increased visibility to
multiple warehouses using
GOP
 Process driven solution
leveraging BPM
 Consolidated part master
files using FPH
Results

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Collaborate with customers on allocation
commitments to key customers
Enforce these allocation commitments at
the time of order execution
Integrate these allocations into the
promise dates provided to customers
Best Practices for Automotive / High-Tech
Companies

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Oracle Fusion SCM:
• Fusion Distributed Order
Orchestration
• Capgemini
• Aging and inflexible
mainframe systems
• Desire for system
improvement over course
of global rollout
• Need for flexible system
for quick implementation
of new delivery models
• Desire to incorporate 3rd
party and partner order
fulfillment capabilities
Challenge Solution
 Centralized management
of order execution process
 Enables systematic rollout
by progressively replacing
legacy systems with target
solutions
 Industrializes integration
and implementation of
new services
 Enables the establishment
of 3rd party delivery
models with limited effort
Results
Leading Automotive Tire Manufacturer

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Make better use of all inventory assets
Consider exploiting in-store inventories
as part of a multi-channel fulfillment
strategy
Best Practices for Retailers

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•Needed a scalable
order orchestration
system to help it move
from a grocery retail
model into a multi-brand
business
• Flexible order and
delivery options
Oracle Fusion SCM:
• Fusion Distributed
Order Orchestration
• Fusion Global Order
Promising
• Capgemini
Challenge Solution
Leading UK Supermarket Chain
 Enabled eCommerce
orders across brands
 Provided support for
multiple delivery
methods (home
delivery, in-store &
locker pickup)
 Flexibility to source
products from stock or
direct ship vendors
Results

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Oracle & Capgemini Deliver
BenefitsFeatures
• Global view of supply
• Proactive exception monitoring/ resolution
• Single, consolidated view of order status
• Consistent process definition & execution
• Highly adaptable, flexible business
processes
• Available To Promise scenarios
• Standards based SOA integration
framework & declarative web-based admin
• Proactive jeopardy management tools
Improved Customer Satisfaction
More accurate order promising
Faster exception response
Single face to customer
Faster time to Revenue
Reduced fulfillment time
Faster time to market for product
Optimized fulfillment priorities
Lower Cost of Ownership
Increased architectural flexibility
Decreased costly expediting

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Questions &
Answers

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