Oracle ASCP Implementation Roadmap
Is it a way to get rid of Excel in a Global Supply Chain Planning team?
After implementing Oracle ASCP, can we expect a benefit on inventory and customer service levels?
This road map proposes a way to gather all of the planning data into one system (Oracle ASCP).
It highlights the business processes because planning is based on processes.
It emphasizes flow management because planning is all about flow management.
Oracle ASCP is the tool you need: flexible enough to be adjusted to your processes and your material flow management method.
Oracle ASCP Implementation Key Success Points
3 main points you need to keep on mind:
Global Plan: World Wide & Across Systems
Because you sell across the world, because planning is global: your world wide supply chain should be interfaced with Oracle ASCP:
– All of the distribution centers (main DCs, regional DCs) are linked to Oracle ASCP and their inventory position and on-going transactions are replicated. Whatever the supply chain choices: self owned facility or logistic partner.
– An EAI system is used to manage real time interfaces based either on web services or file transfers.
Building such an EAI system requires a strong collaboration between the different IT teams. The project in itself is a medium sized project: the basic architecture and the first interfaces can be built within 4 to 6 months.
This architecture allows gathering the planning data and is critical to avoid Excel consolidation of the supply chain data.
Close the Loop
Any missing piece of data will break the Supply Chain system and generate a wrong MRP calculation. As a consequence Excel would be back to fill the gap!
For example: the lack of in-transit quantities results in a fake demand during the transportation time. Or the lack of forecast related to service parts will result in shortages…
When implementing an ERP system one of the first lesson learned is the importance of Master Data Management: MDM teams and processes are established.
These processes should be complete: any Master Data and all of their dependencies. For example: Item Costs and Planning/Purchasing Sourcing rules should be taken care.
These processes should be global: manual or automatic consistency should be ensured across systems when creating a new product or a new customer.
As described by the APICS CPIM certification, processes are key in the planning system. The different process levels ensure a smooth decision system across the management levels of the company.
For example, managing capacities in a plant requires anticipated decisions when it comes to temporary or permanent hiring. This anticipation is prepared by the Sales & Operation Planning process. Decisions being applied at the Master Production Schedule level.
Strategic Inventory Positionning and Material Flow Management
Managing the material flow is key. Any method is good: Lean, TOC or Demand Driven MRP. These methods deeply impact the planning processes. They ensure keeping lead times and priorities under control. They avoid the MRP bad effects like simultaneous shortages and excess inventory in a product family. They are the only means to speed up the material flow and increase the service level.
The role of decoupling buffers:
On one side, managing the material flow results in a drastic simplification in the data model.
On the other side, Oracle ASCP is highly flexible and can be adjusted to different processes.
As a result, Oracle ASCP can easily support a lean process, for example.