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Complex Equipment
Drive Manufacturing Network Efficiency
Oracle Solutions for High Tech – Complex Equipment
Drive Manufacturing Network Efficiency
200%
150% 125%
100%
25%
50%
0%
Profitability Growth
Source: Performance Measurement Group,
A PRTM Company – Electronic Equipment Segment Data 2003
“Oracle is one of the leading applications Total SCM costs (as a % of revenue) for best-in-class electronic
in the market, and is worth considering if
equipment companies are almost half of their competitors
you are moving to a Configurator
configuration strategy. Integrating with 13.30%
15.00%
pricing, product development,
operations, ERP, order management and
order fulfillment systems while 10.00% 7.30%
addressing core business processes is
where Oracle's clients are seeing the
5.00%
most benefit today.”
This complexity is a continual source of error and delay. The specification process
itself introduces many errors--some parts may be incompatible, the configuration
may not meet performance requirements, parts may be missing, or parts may not
fit. Add to that the typically long order processing lead-times and communication
delays, both internally and externally, and the result is extra expense for order
checkers, rush orders on parts, manufacturing rework, and field service calls. In
addition, the number of suppliers to the complex equipment manufacturing
industry has increased considerably. And customers are demanding detailed
specifications and customizations more frequently than ever before. Managing this
explosion in configuration complexities has become a major challenge—one that
can make or break a company.
-- Don Wenninger, CIO, McDATA. Oracle’s configuration solution also provides an interactive guided selling solution
that insulates the customer from low-level technical definition, minimizing the time
the customer and the sales departments spend working on specifications; the
customer only has to specify high-level requirements. Oracle’s solution maps these
requirements to a set of product options. As the customer provides information,
follow-up questions and options are focused to include only the choices that satisfy
the customer requirements. During the configuration session, Oracle’s interactive
engine provides real-time feedback, ensuring that the final solution is valid and can
be sent to your manufacturing and supply chain applications. This process
accelerates order-processing times for custom configurations and results in the
delivery of an accurate, configurable order that meets the customer’s unique
requirements.
"The Oracle solution provides our Use a Single Data Source To Coordinate Customer Orders With Manufacturing
planners with instant access to global Another critical factor in managing configuration complexities is the need to
information and simulation tools for
coordinate the customer order at the front end with the manufacturing Bill of
reacting to changing market conditions.
Materials (BOM) at the back end. Most complex equipment manufacturers have
The result is more accurate plans, fewer
errors, and improved bottom line service
multiple data sources that lead to inconsistent information and an increase in order
to our customers." errors and maintenance costs. Moreover, order processing systems are only loosely
integrated with supply chain and manufacturing systems, which slows down order
-- Mike Dapcic, CIO, Mykrolis processing times.
Corporation.
Oracle is the only vendor that offers a single enterprise data source. The tight front-
to back-end integration lets companies automatically generate manufacturing
BOMs from customer orders. It also eliminates the need to keep multiple copies of
a configuration in order to synchronize customer, pricing, item, and other kinds of
data. Other solutions typically lack this seamless integration, and instead use
multiple configuration technologies to support front- and back-end operations.
Oracle’s solution lets you deliver accurate, configurable orders quickly and easily
and ultimately enables you to dramatically accelerate your order-to-delivery cycles.
100
77
75
Days
50 31
25
SUMMARY
With design-to-market cycles more compressed, configuration complexity
continuing to grow, competition increasing, and margins eroding, industry leaders
are struggling to find ways to survive the recent economic downturn and manage
change. By controlling configuration complexities, improving the responsiveness of
the supply chain to continuous changes, and enabling real-time collaboration across
the extended supply chain, Oracle’s supply chain solution enables complex
equipment companies to drive the manufacturing network efficiencies they need to
improve their bottom- and top-line performances.
NEXT STEPS
Oracle’s success in the complex equipment industry is founded upon its ability to
help high-tech companies such as Alcatel, APC, Mykrolis, and McDATA (to name
just a few) capture value and deliver sustainable results. For more information on
Oracle’s solution for driving manufacturing network efficiency, please visit
www.oracle.com/industries/high_tech or call your Oracle representative at 1-800-
ORACLE1.
Oracle Corporation
World Headquarters
500 Oracle Parkway
Redwood Shores, CA 94065
U.S.A.
Worldwide Inquiries:
Phone: +1.650.506.7000
Fax: +1.650.506.7200
www.oracle.com