E-Business Suite Outsourced

Manufacturing for Discrete

Industries
Gopal Ratnam
Sr. Director Product Management

Muralidharreddy Venkatasesha
Director Product Management


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Program Agenda
Outsourced Manufacturing Business Practices
Solution Overview
Demo
Resources Available
Q&A
Copyright 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 3
The following is intended to outline our general product direction. It is intended
for information purposes only, and may not be incorporated into any contract.
It is not a commitment to deliver any material, code, or functionality, and should
not be relied upon in making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracles products
remains at the sole discretion of Oracle.


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Outsourced Manufacturing Business Practices
OEM MP
B


C


A

Process
Inhouse
Process
Outside
Process
Inhouse
Manufacture Assembly
Ship Partial Product
Receive Finished Product
10
20
30
20
OEM
RMS
B
C

MP
*
Buy
Components
Virtual Sale of Components
B


C

Virtual Purchase of Assembly

A


B


C


A

Drop Ship
Components
OEM
RMS
B
C

MP
Buy
Components
Ship Components
B


C

Receive Assembly

A


B


C


A

Drop Ship
Components
* Applicable only for Japan, Korea, Taiwan
OEM
RMS
B
C

MP
Buy
Components
Sell Components (with Markup)
B


C

Buy Assembly

A


B


C


A

Drop Ship
Components
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Automated Orchestration
For Material Tracking and Financial Reconciliation
OEM Org Contract Manufacturer Org
Replenishment SO
Item : C, QTY:10Ea
Customer : MP
Replenishment SO
Item : B , QTY:20Ea
Customer: MP
Discrete Job
Assembly : A QTY
:10Ea
Interlock
Subcontracting Order
Assembly : A , 10Ea
Supplier : MP
ASCP
Auto receive Components
Receive
Receive
Replenishment PO
Item : C, QTY:10Ea
Supplier : OEM
Replenishment PO
Item : B, QTY:20Ea
Supplier : OEM

B


A


C

1 Ea 2 Ea
Process Receiving Transactions
Complete
Misc
Issue A
Receive
SHIP
SHIP
AP Invoice
AR Invoice
Pay to MP
$
AP/AR Netting
Copyright 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 6
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Key Performance Indicators
Visibility into Outsourced Manufacturing
Typical Business Questions
How many subcontracting orders are delayed and which
customers are impacted ?
Whats the value of our material at manufacturing partner
locations ?
Whats the value of goods in transit to manufacturing partner
locations?
Whats the value of defective finished goods received from
manufacturing partners ?
Whats the value of uninvoiced subcontracting orders ?
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Subcontract
Order Status
Main
Point
Inventory Balances
Quality
Financial Positions
1 2
4 3
EBS Outsourced Manufacturing
Four categories of visibility into outsourcing business
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9


View status of subcontract orders (delayed, on-time) and component allocations across manufacturing partners
Subcontract Order Status
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10


View quantity and value of components in-transit or at manufacturing partner locations
Inventory Balances
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11


View reasons for poor quality of outsourced products and their value across manufacturing partners.
Quality
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12


View financial positions of subcontract and replenishment orders for a manufacturing partner
Financial Positions
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E-Business Suite Outsourced Manufacturing
Business Benefits
Gain full visibility into the overall health of outsourced manufacturing
Quickly view and analyze financial transactions related to subcontract orders
Track quality issues related to supplied components and finished products
Monitor sales and procurement activities to meet on-time customer delivery

Collaborate effectively with approved suppliers and contract manufacturers
Analyze and negotiate service level agreements and pricing to optimize costs
Mitigate risks related to inventory bottlenecks across manufacturing partners

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Demo

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Resources

Copyright 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 16
The preceding is intended to outline our general product direction. It is intended
for information purposes only, and may not be incorporated into any contract.
It is not a commitment to deliver any material, code, or functionality, and should
not be relied upon in making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracles products
remains at the sole discretion of Oracle.


Copyright 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 17
Q&A

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