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Performance-Driven Supply Chains with Sales and Operations Planning. Sales and Operations Planning in Life Sciences. Your Panel. Paul Homchick, Sr. Director Supply Chain, Oracle Valerie Kwiatkowski, CIO, ICU Medical Erin Bunkley , Divisional VP Planning & Integrated Logistics, Pharmavite

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sales and operations planning in life sciences
Sales and Operations Planning in Life Sciences

Your Panel

  • Paul Homchick, Sr. Director Supply Chain, Oracle
    • Valerie Kwiatkowski, CIO, ICU Medical
  • Erin Bunkley, Divisional VP Planning & Integrated Logistics, Pharmavite
  • Mike Kuban, Director Enterprise Solutions, Pharmavite
program agenda
ICU Medical Overview
  • Pharmavite Overview
  • Panel Discussion
ProgramAgenda
pharmavite
Pharmavite
  • Pharmavite business
    • Manufacturer of vitamins and nutritional supplements
    • Nature Made™ brand sold thru major mass retailers , clubs and drug store chains
    • 1989, purchased by Japanese Otsuka Pharmaceutical Co.
    • Since 1994, Nature Made products are the top-selling broad-line brand of vitamins in

the United States

  • Key Business Challenges
    • Multiple MRPs, disconnected factory & material planning
    • Increasing inventory and critical material shortages
    • No capacity visibility into the planning process
    • Sourcing and Make / buy simulation & execution problems
    • No management visibility, reporting, dashboards
  • Oracle footprint
    • JDE 8.12, PDP, MRP and Demantra 6.0
    • ASCP 12.1.2
    • Demantra 7.3
    • Hyperion 11.1.1
    • OBIEE 10G
characteristics of our supply chain
Characteristics of Our Supply Chain
  • Pharmavite’s supply chain consists of multiple facilities in Southern California.
    • San Fernando facility produces bulk tablets and soft gels
    • Valencia facility packages finished goods
    • Contract
    • Distribution centers in Valencia & Indianapolis ship to customers
    • New site under construction in Opelika, Alabama
  • The complex nature of our products and stringent quality standards have created planning challenges. Additionally, the fragmented nature of our current supply chain adds complexity.
  • In January of 2013, we are opening a new facility in Opelika, Alabama which will make our planning process even more challenging.
process system organization alignment
Process, System, Organization Alignment
  • Project entailed much more than a new system implementation but a fusion of:
    • New processes and policies
    • Roles & responsibilities
    • Organizational alignment
    • New metrics

Forecast

Distribution Center Split

Displays

FG

Components

Bulk

Raw Materials

why oracle value chain planning
Why Oracle Value Chain Planning?
  • Pharmavite made a commitment to Oracle as a strategic partner for the following reasons:
    • Functionality of Oracle applications is equal and often better than competitive set
    • Synergy of applications across a single vendor drives ITS efficiencies
    • VCP provides an integrated supply chain solution from demand planning to supply planning to finite scheduling
    • VCP suite offers scalable solutions that support the future growth of Pharmavite
high level process integrations
High Level Process & Integrations
  • Sales and Operations Planning
    • Monthly process that drives operational and financial planning
  • Demand Management
    • Customer and product driven forecasting based upon trends, market activities and promotional schedules
  • Supply Planning
    • Capacity constrained master schedule that plans supply across the supply chain to meet customer service targets

Hyperion

Demantra

key capabilities
Key Capabilities
  • Advanced forecasting tool - Demantra
    • Leverages JDE data to drive increased forecast accuracy
    • Provides capability for promotions management
  • Single, global supply planning system - ASCP
    • Ability to peg supply and demand though all levels of BOM
    • Production / Capacity management
    • Purchasing
  • Reduced material expedites and sourcing delays
  • Safety Stock methodology and solution (Demantra & ASCP)
  • Leverage Simulations Sets for What-if Scenarios
    • Model temporary capacity changes
    • Sourcing decisions
    • Demand changes
lessons learned
Lessons Learned
  • Data & Integration challenges
  • Customizations
  • Automation of Nightly/weekly programs
  • Performance
    • Worksheet
    • Batch Programs
  • Training
    • Business Super User
    • IT Support
  • Change Management
  • Consulting Partner
    • Supply Chain Fusion (Avata)
slide12

About ICU Medical

  • Designs and manufactures some of the world's safest, most reliable medical devices and systems for infusion therapy, oncology, and critical care applications.
  • Existing Systems Footprint
    • Oracle EBS 11.5.10
    • Demantra 7.3.1
    • ASCP R12.1
    • OBIEE and APCC
    • Hyperion 11.1.1
  • Product Lines Include
    • IV Sets
    • Closed Delivery Systems for Hazardous Drugs
    • Needleless I.V. connectors
    • Catheters and Cardiac Monitoring Systems
why oracle value chain planning1
Why Oracle Value Chain Planning

Reasons for selection

  • Oracle is our platform of choice
    • Existing skillset (business & IT)
  • Overall breadth of functionality
    • Demantra – cross-functional demand planning
    • ASCP- holistic optimization planning and scheduling with exception alerting
    • APCC – real time analytics & dashboards
  • Integrations
    • Demantra Hyperion
    • EBS  ASCP
icu medical landscape
ICU Medical Landscape

Slovakia

Mfg

San Clemente, CA

HQ, R&D, Sales

Salt Lake City

Mfg

Encenada, Mexico

Mfg

design

manufacturing

implementation
Implementation

UPS Distributions

(ULO, URA)

FNL Distributions

IT Distributions / MFG

DE Distributions / MFG

Fcst, Orders

Internal Demand

Customer Shipment

Ships sub-assemblies

Ships sub-assemblies

EDA, Mexico

(Mfg / Dist.)

Salt Lake City, UT

(Mfg / Dist.)

Slovakia

(Mfg)

  • Oracle VCP Footprint
    • Phase I: Demantra DM and Advanced Supply Chain Planning
      • Leverage Capacity Constraint Based ASCP planning across all manufacturing facilities
    • Phase II: APCC, Demantra / Hyperion Integration, S&OP Process
key business challenges
Key Business Challenges
  • Lack of a forecasting process, collaboration and knowledge of systems
    • Data manually gathered, unorganized and extremely time consuming
    • No forecast metrics or analysis
    • Time is spent gathering data, not for analysis & decision making
  • Changing business conditions
    • Moving toward direct delivery to end customerespecially in Europe
    • Realigning relationships with distributors
  • Finished Goods and Sub-assembly manufacturing with systems But limited business expertise to take full advantage of capabilities
  • Limited end-to-end supply chain visibility (reporting, dashboards)
  • Maintaining on-time delivery and inventory levels
  • Improving operational efficiency
key implementation objectives
Key Implementation Objectives

Start with Building Blocks

Demand Planning

Supply Planning

S&OP

  • Establish a connected supply chain with the visibility, leading forecast and supply planning processes and systems to scale and manage the evolving business
  • Create a cross-functional consensus forecast reducing the effort and cycle time
    • Consolidate the data & processes onto one platform – Demantra
    • Provide direct visibility to customer forecasts within the consensus process
    • Create comprehensive metrics to measure forecast performance
    • Define roles and responsibilities, role clarity, approvals and security
  • Establish a single, global supply plan with visibility and consideration of the capacity constraints
  • Enable and evolve the S&OP process by establishing the necessary reporting / dashboards for S&OP as well as supply chain
high level process architecture
High Level Process & Architecture

ASCP

Oracle EBS Data Inputs

Ops Planning

Capacity Planning

Demantra

Sales

Supply Chain

Global Demand

Plan

Sales

Forecast

APCC

Exec Team

S&OP Dashboards

Hyperion

key benefits
Key Benefits
  • Demand Forecasting / Demand Planning
    • Institutionalized a clear forecasting process supported by a single system (Demantra)
    • Ability to establish a total, global view of the forecast ($/units)
    • Engaged other functional areas into the forecast process
  • Supply Planning
    • Single supply plan encompassing the entire supply chain
    • Capacity constrained plan providing clear visibility ahead of time to address issues
    • All manufacturing is looking at the same number (single source of truth)
  • S&OP
    • Reduced cycle time in the yearly budgeting process by having a single platform HyperionDemantraASCP
    • APCC has been very successful
lessons learned1
Lessons Learned
  • Change Management
  • Process change
  • Executive Support
  • Resource availability
  • Data, Data, Data….especially with Capacity Planning
  • Choose the right implementation partner

Optimal Process & System

  • Don’t do it all at once - (Crawl, Walk, Run)
  • Especially with ASCP Capacity Constraints
  • Don’t underestimate the people, process and technology complexities when moving to a capacity constraint based planning environment

Phase III

Phase I

Phase II

The Process & System Evolution

oracle value chain summit february 4 6 2013 bringing people and supply chains together
Oracle Value Chain Summit | February 4–6, 2013Bringing People and Supply Chains Together

Hyatt Regency San Francisco

Maintenance

Manufacturing

Procurement

Product Lifecycle Management

Value Chain Execution

Value Chain Planning

6 Distinct Pillars

180 Sessions in 17 Tracks

All in One Great Location

  • Why attend?
  • Actionable business content
  • Focus on your specific domain
  • Insightful keynotes
  • Customer, Partner, Oracle & 3rd Party Sessions
  • Demo and Partner Pavilion
  • Ideal for networking in your peer community
    • This Summit is designed for you,
    • the Value Chain Professional
    • in your organization

http://www.oracle.com/goto/vcs

For more information: