SUPPLY CHAIN MANAGEMENTSYSTEMS

Part II (Implementation)

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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

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Typical Techniques

• Computer Assisted Ordering (CAO)– Based on data of Point of Sales (pos) systems

POS data

On hand-processing

Logistics Center

Logistics Center

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Typical Techniques

• Continuous Replenishment Programs (CRP)– Vendor Managed Inventory (VMI) - Based on sales pattern and

record

Flow of Info.Flow of products

RetailManufacturer

Manufacturer Retail

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Typical Techniques• Cross Docking system

– Synchronized movement – can delete middle steps

Dr. Jean-Paul Rodrigue

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Cross Docking System

shop shopshopshop shop

MixedtypesPallet

Singlestype

Pallet

Divide and Combine products from single Pallet stocks

Input

Out

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Case Study : Best Practices at AT&T

Oracle Real Application Clusters (Oracle RAC) & Oracle E-Business Suite

Bryon Rickey

Ravi Kayarthodi

September 20th, 2010

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About AT&T

AT&T is one of the world’s largest Telecommunications companies AT&T Global Headquarters is based in Dallas, TXAT&T has approximately 290,000 employeesAT&T has more than 90 million wireless customersAT&T has more than 16 million high speed internet subscribersAT&T has more than 2.5 million U-verse subscribersExclusive U.S. provider of iPhone 3G / 3GS / 4

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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

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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

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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

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Industry Recognition

2010 IDG’s CIO AwardRecognizes organizations around the world

that exemplify the highest level of operational and strategic excellence in information technology

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Systems Architecture

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AT&T SCM: E-Business Suite Centric

Oracle E-Business Suite 11i

Other Billing Systems

HR - Employee

EDI

Warehouse/Distribution System

Asset Tracking

Direct Fulfillment

Spreadsheet

Lease Management

Retail Planning

Construction

General Ledger Receivables

Accounts Payable Purchasing

Inventory

Order Management Assets

AT&T Corporate Systems

Tax

Projects

Archive Returns

Procurement partners

COR Stores

Planning/ Forecasting -

Network

Order Broker/Orchestrator

Legacy Procurement

Provisioning

Other Channels

External Facing; Suppliers and

Auctions

Technician Ordering

SO

AM

idd

lew

are

Procurement

3PL portal

TMS

Demand Planning

Profitability Analysis

Procurement & Spend Analytics

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AT&T SCM: Key Systems Architecture

Oracle E-Business Suite 11i

Inventory Planning Purchasing Financials

Corporate Asset TrackingDistribution Center

Warehouse Mgmt Inventory Tracking

ReceiptsReceipts

Shipments

EDI EDI

Audits

Repairs

APPOODP eAuction GL

FAPAASCPOM RNF

Moves

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OpusOpus

Oracle 11i E-Business Environment

Dealers/iStore

Dealers/iStore

Store Replenishment

Store Replenishment Direct FulfilmentDirect Fulfilment

National Retailers

National Retailers

DSL and uVerse HSIA

DSL and uVerse HSIA

StoreStore XBM/InsuranceXBM/Insurance Dealer/NRDealer/NRService DepotsService Depots SalesSales ReturnsReturns

Order Management

Order Management

Forward Orders

UpfrontUpfront

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

PlanningPlanning PurchasingPurchasing InventoryInventory ReceivablesReceivables FinancialsFinancials

Oracle E-Business Suite 11i Apps

11i DB

EPLEPL

RU30RU30

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