SUPPLY CHAIN MANAGEMENT SYSTEMS Part II (Implementation)

7-2 LEARNING OUTCOMES 1.Describe the typical techniques of supply chain management systems 2.Define the functions of the typical techniques 3.Case study of AT & T : Oracle business suite

7-3 Typical Techniques Computer Assisted Ordering (CAO) – Based on data of Point of Sales (pos) systems POS data On hand-processing Logistics Center

7-4 Typical Techniques Continuous Replenishment Programs (CRP) – Vendor Managed Inventory (VMI) - Based on sales pattern and record Flow of Info. Flow of products Retail Manufacturer Retail

7-5 Typical Techniques Cross Docking system – Synchronized movement – can delete middle steps Dr. Jean-Paul Rodrigue

7-6 Cross Docking System shop Mixed types Pallet Singles type Pallet Divide and Combine products from single Pallet stocks Input Out

7-7 Case Study : Best Practices at AT&T Oracle Real Application Clusters (Oracle RAC) & Oracle E-Business Suite Bryon Rickey Ravi Kayarthodi September 20th, 2010

7-8 About AT&T  AT&T is one of the world’s largest Telecommunications companies  AT&T Global Headquarters is based in Dallas, TX  AT&T has approximately 290,000 employees  AT&T has more than 90 million wireless customers  AT&T has more than 16 million high speed internet subscribers  AT&T has more than 2.5 million U-verse subscribers  Exclusive U.S. provider of iPhone 3G / 3GS / 4

7-9 AT&T SCM: Architecture highlights  Oracle E-Business Suite Centric  Scale-up with cluster database on very large infrastructure  High availability with Oracle Data Guard, Oracle GoldenGate, and site level redundancy  Central inventory/financial management; utilizes product hub, planning/forecast with ASCP/Demantra  Order orchestration and brokering with in-house developed Oracle based application system  Internet deployment for interaction with external suppliers  Management reporting/profitability analysis; procurement and spend analytics  Industry leading warehouse/distribution management systems

7-10 AT&T SCM Platform: Financial Integration  Both Network and Retail SCM - financial counterparts are integrated in the same platform: Shared AP, AR, PA, FA, and GL  Supply Chain transactions leverage same referential data and accounting rules  Financial integration of supply chain transactions are seamless and are recorded real-time in the general ledger  No need for reconciliation between sub ledgers  Ability to forecast financial implications based on SCM forecasts  Online financial budgeting validation on purchasing and requisitions  Analytical GL Cube and Inventory Cube

7-11 Results  AT&T has saved more than $500 million and has improved its purchasing power by combining accounts with its vendors.  Estimated to save $1B in inventory costs, and $300M per year in reduced operating costs.  Warehouses have been able to keep inventories low without missing SLA, resulting reduced overall inventory costs.  Ability to identify sold merchandise, resulting in fewer fraudulent returns

7-12 Industry Recognition  2010 IDG’s CIO Award Recognizes organizations around the world that exemplify the highest level of operational and strategic excellence in information technology

7-13 Systems Architecture

7-14 AT&T SCM: E-Business Suite Centric

7-15 AT&T SCM: Key Systems Architecture Oracle E-Business Suite 11i Inventory PlanningPurchasingFinancials Corporate Asset TrackingDistribution Center Warehouse Mgmt Inventory Tracking Receipts Shipments EDI Audits Repairs AP POODP eAuction GL FAPAASCPOMRNF Moves

7-16 Opus Oracle 11i E-Business Environment Dealers/ iStore Dealers/ iStore Store Replenishment Store Replenishment Direct Fulfilment National Retailers National Retailers DSL and uVerse HSIA DSL and uVerse HSIA Store XBM/Insurance Dealer/NR Service Depots Sales Returns Order Management Order Management Forward Orders Upfront Reverse Company Owned Retail 416 CPU Cores & 1.7TB of Memory in DB Cluster 14TB of storage for transaction DB 3TB of storage for Archived DB Planning Purchasing Inventory Receivables Financials Oracle E-Business Suite 11i Apps EPL RU30 In the order management – Forward orders from Store Replenishment, dealers, technician orders and forecasted demand gets into SCM platform for processing. On the reverse order end we have Corporate Stores, returns, Service depots and so on