supply-chain-collab....
Implementation Methodology
The team responsible for implementing Oracle Retail
Value Chain Collaboration has developed and fine-tuned a path to
successful collaboration system implementations. Our proven
methodology is comprised of four major phases:
- •
Define Collaboration Strategy
- •
Develop Collaboration Program
- •
Launch Collaboration Program
- •
Rollout Collaboration Program
The objectives of the first phase are to
define the
collaboration strategy by company, and to align the value of
collaboration with the corporate goals and objectives of the
retailers and consumer electronics manufacturers.
During the second phase, the trading partners
prepare for collaboration, and develop a detailed deployment plan.
With the deployment plan in hand, the trading
partners are ready to implement the collaborative solution and
measure the results.
During the launch phase, file transmissions are
typically unidirectional from demand planning, merchandising,
enterprise resource planning (ERP) and Warehouse Management (WMS)
systems to the collaborative application platform. This reduces
project complexity and allows the project team to focus on
correcting the immediate business misalignments. Files are received
from both the buyer and the seller to enable inter-enterprise
comparison of past and future business expectations. Typical file
formats used for collaboration includes flat files, EDI, and XML.
Finally, the trading partners move the collaboration
initiative into a fully integrated, enterprise-wide solution
supporting a broader set of products, business processes,
distribution centers, and retail outlets. At this stage,
bidirectional data integration between the existing operational
systems and the collaborative platform is recommended to enable the
broad rollout implementation.
Supply Chain Collaboration Strategies for the Consumer
Electronics Industry Page 8
Proven Results
While specific results vary, Oracle Retail Value
Chain Collaboration customers have experienced results in the
following areas:
- •
Sustained inventory reduction by as much as 10 percent to 60
percent for both the buyer and seller
- •
Improved forecast accuracy by as much as 10 percent to 30
percent
- •
Enhanced store shelf stock rates by as much as 2 percent to 8
percent
- •
Increased sales by as much as 5 percent to 20 percent
- •
Reduction of logistics costs by as much as 3 percent to 4
percent
In addition to these tangible results, Oracle
clients have also reported improved conditions in the following
intangible categories:
- •
Reduction of the last-minute, costly expedition of product
shipments
- •
Reduction of lost sales opportunities
- •
Improved business relationships between buyer and sellers due to
joint supply chain visibility and shared planning
- •
Scalable business processes that allow for the same staff to
more efficiently manage more business relationships.
SUMMARY
To be successful, consumer electronics retailers and
manufacturers must maximize the efficiency of their demand and
replenishment processes, while minimizing the liability exposure of
changes to supply and demand. Supply chain collaboration management
is a process that supports retailers’ and manufacturers’ business
goals by managing large volumes of strategic supply chain time
series data by exceptions. This can help consumer electronics
retailers and manufacturers in the following areas:
- •
Enhancement of relationships between retailers and manufacturers
through collaboration.
- •
Improved supply chain responsiveness through the timely
correction of misalignments of demand and supply signals
- •
Enhanced coordination of promotional events through synchronized
events planning and execution between retailers and suppliers
- •
Better demand planning leading to higher forecast accuracy
results, which in turn lead to higher service levels and
increased sales
- •
Improved replenishment planning as inventory positions, sales,
lead times, and other supply chain planning data is taken into
consideration
Supply Chain Collaboration Strategies for the Consumer
Electronics Industry Page 9
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