SCM 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. 20031025 Hiroshi_Minoura@i2.com Slide 1 i2 Technologies i2 Technologies, Inc. i2 Adidas Hewlett-Packard Barnes&Noble Home Depot BestBuy IBM Boeing Motorola Coca Cola International Nokia DELL P&G Ford Motor POSCO General Electric Samsung General Motors Siemens Solectron 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 4 2 VCM 2 ERPSCM 2 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 2 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 5 i2 1/2 A B / / VMI / / C AV EMS / D PC Web EDI Foundry OEM Web /Fax EMS OEM PL OEM 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 3 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 6 1
2/2 VAC Manage Buy Internal PL EMS 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 7 Sell DC EDI EDI Web /Fax VMI VMI /Fax EMS) LT Web VAR/SI 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 10 C B VAC A B C A A B C D E F A DB EC F A DB GE C H I D GE HF I D GE HVAC F G H I I G H X How to Manage? SCM Forrester SCM Forrester PDCA SCM AMRResearch 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 8 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 11 SCM Past Future Firewall ROA ROI Profit Brand Manager Value Chain Orchestrator (SCP) (SCP) Firewall (SCE) VMI 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 12 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 9 2
i2 Optimization : Dynamic Constraint Management Reverse FLOW DOE Backbone Fulfillment(Sales & After-Sales) Opt SCM SCM Forrester S ou Resource Response Buffer SCM SCM Forrester SCM Forrester r c i n g S pe n d O pt S U P P L I E R S FP End Supply Chain Logical Domain Production Opt Logistic Opt Value Chain Logical Domain < OLT DP End AATP End F I N A L O R D E R R E V & P R O FT O pt Pricing Opt Promo Opt Markdown Opt C U S T O M E R 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 13 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. i2 FiveOptimizations Fulfillment Optimization Spend Production Revenue & Profit Optimization Optimization Optimization Logistics Optimization Supply Chain Operating Services ERP ERP/ ERP 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 14 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 17 i2 Six EAI WAN WAN WEB B 2 X WEB B2X 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 15 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 18 3
i2 i2 Demand Manager 1/2 i2scm i2 Demand Manager* / i2 Supply Collaboration* Fcst Fcst i2 Supply Chain Planner* i2 Demand Fcst Collaboration* / / / VMI ATP i2 Demand Fulfillment* ATP AATP i2 Factory Planner* ATP /ERP Slide 22 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. PP MMSlide 19 SD 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. POS 2) 2 2 i2 Demand Manager 2/2 1 1 2 3 4 5 6 12 500 400 300 200 100 Jan Feb Mar Apr May Jun 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 20 [Unit ] 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 23 i2 Demand Manager i2 Demand Manager(DM) 1/2 Pickbest SKU or Tim e Prod uct Pickbest A B C UI 24 DB RDBMS Demand Planneri2 DB Geogr Watchpoint aphy 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 21 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 24 4
Demand Manager(DM) 2/2 i2 Supply Chain Planner i2 Factory Planner Supply Chain Planner SCP Factory Planner FP SUPPLIER-JAPAN FACTORY-JAPAN JAPAN_DC Procure 1 Day 1 Day 1 day Comp_1 3 day Comp_1 ASSY FINISH MOVE DLVR Procure SFG- KXL- KXL- i2 RW20AN Comp_2 3 day Comp_2 RW20AN RW20AN Line-1 Procure 1 day Comp_3 3 day Comp_3 ASSY FINISH MOVE DLVR Procure 1 Day SFG- 1 Day KXL- 2 day Comp_4 15 day Comp_4 RW11AN RW11AN MOVE KXL- RW11AN FP (Factory Planner) SUPPLIER-ASIA FACTORY-Philippine ASIA_DC Procure RP Comp_1 3 day Comp_1 2 day Procure MOVE DLVR 1 Day 1 Day Comp_2 3 day Comp_2 KXL- ASSY FINISH RW20AN Procure SFG- KXL- 2 day Comp_3 3 day Comp_3 RW11AN Line-2 RW11AN MOVE Procure 1 day DLVR Comp_4 15 day Comp_4 MOVE C625 SCP (Supply Chain Planner) 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 25 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 28 i2 Factory Planner Demand (Order, Forecast, etc.) Demand (Order, Forecast, etc.) ( ) ( ) Master Production Schedule Material Requirement Planning / Capacity Requirement Planning PlantSupplier Planning PlantSupplier Planning / / 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 26 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 29 A : Location : Operation : Capacity Operation : Item Buffer : Buffer Item Item 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 27 1/7 i2 Factory Planner CESTCLST CESTCLST 5 4 3 2 1 EPST CEST CLST LPST EPST Earliest Possible Start Time LPST Latest Possible Start Time JIT CEST Constrained Earliest Start Time EPST CLST Constrained Latest Start Time LPST 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 30 5
2/7 CESTCLST 5/7 EPST CEST WIP JIT CLST LPST EPST CEST & Min WIP & Max Util) CLST LPST 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 31 Min WIP 1 2 3 4 5 6 7 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 34 3/7 A A B B C C 6/7 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 32 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 35 4/7 7/7 Factory Planner Resource Criticality Resource Criticality A B Time 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 33 Time 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 36 6
LT DM DM LT Top DM: Demand Manager SCP: Supply Chain Planner 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 37 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 40 SCP 90% 90 LT LT 20023 2 20023 3 A B A 13.3% A 1. 1. 2. 2. 3. 3. B 4. 4. LT5. 6. 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 38 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 41 i2 Six 2 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 39 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 42 7
Distributed Order Management BPR 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 43 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 46 PO / i2 DOE 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 44 /PO / PO / PO 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 47 1/3 Buy Internal Inventory 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 45 Sell i 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 48 8
2/3 i2 Demand Fulfillment 3 GLOBAL ATP GLOBAL ATP - ALLOCATION ATP PROMISSING A1 A2 A3 SCP DF B1 B2 B3 2 DC1 A1 A2 A3 C1 C2 C3 All LT :2days LT2days 99% 90% 80% NA APAC EMEA B1 B2 B3 Korea Japan China Others 1 DC2 90% 90% 80% LT :2days LT2days GLOBAL C1 C2 C3 ATP D1 D2 D3 D4 D5 80% 80% 80% FP ATP** RP 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 49 * ATPAvailable To Promise 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 52 3/3 ( )= ( )= D D59 D600 A B C A30 A200 B10 B100 C50 C300 D D59 D600 2 2 2 D= A+ B + C D= A+ B + C RP i2 Demand Fulfillment Allocation Allocation Policy PerCommitted FirstComeFirstServed = ATP Member Rank ATP Fixed Split ATP Retain Allocation ATP Product Rank ATP 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 50 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 53 i2 Demand Fulfillment + - ROP/ROQ EOQ EOQ 100 100 1 ROP/OUTL Time Supply 10 A Min/Max Min On hand JIT 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 51 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 54 9
i2 Demand Fulfillment i2 Six ASAP ALL ON_TIME ASAP_ON_TIMEASAP_ALLALL_ON_TIME AATP Appropriation Substitution 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 55 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 58 i2 Six 3 Revenue and Price Optimization RPO i2 KPI GM ROI Enterprise Performance Planner Category Price Optimizer Promotions Optimizer Markdown Optimizer Sales Pricer Sales Configurator 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 56 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 59 i2 VA erfq CPFR) Supply Chain Collaboration Merchandise Planner(MP) Demand Manager(DM) Transportation Planner DC/TC DC/TC 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 57 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 60 Replenishment Planner(RP) Markdown Optimizer(MDO) Promotion Planner 10
i2 Six MDSV MD i2 Web EAI/ETL i2 ERP 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 61 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 64 i2 Merchandise Planner OMx IMx ERP SCM SRM (OS390) DCM ODS Explore MD ETL ( ) Informatica ( ) WebMethods TMOCN ETL:Extract Transformation and Load TMOCN:Trade Matrix Open Commerce Network Re-plan ODS:Operational Data Store FreightMatrix 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 62 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 65 i2 Markdowns Optimizer P1 Markdown P2 T2 T3 P3 Time Sell Through Start Date Date P3 P2 P1 T2 T3 Start Time Sell Through Date Date 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 63 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 66 11
i2 SCOS Core Components 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 67 As of 2002/Mid i2 CIS Integration, EAI(webMethods), ETL(Informatica) (Application Integrator / - Data Integrator) XCore DOE (Distributed Transaction Workflow Studio XML & Business Process Mangement) / - Workflow Studio* GUI (Design Studio) DOE High Tech Master Data Management* SRMContent Service (Master Data Management) Content Service - CGR Role-based portal Role UI + Login (Portals UI Infrastructure) Common Analytics Services Supply Chain InformaticaAnalytics - (Common Analytics Services) - Industrial&Automotive - BTO SCOSi2 + Process- Umbrella Branding - / Logistics and Fulfillment- 3PL - 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 71 ERPSCM 2 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 68 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 72 i2pm SCM VisibilityVelocity VAM/ MA SOA BR SCM SIA PSI / i2 / i2 / / / i2 / BR ERP SCM / i2 / - / / - i2 BR - DB - i2 - - - To-Be BR n (BR) BR 2 000,000 000,000 BR-n L/T XX% YY% BR 1 BR0 BR-3 KPI SCM As-Is BR-2 ERP KPI BR-1 KPI / / SCM ERP 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 69 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 73 12
SOA* End-To-End SOA Net Present Value (NPV) SAMPLE *SOA = Strategic Opportunity Assessment 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 74 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 77 Dell Supplier Collaboration, Factory Planning, Supply Chain Planning, Business Process Intelligence 2001 319 Factory Planner, PC Supply Chain Planner, Supplier Collaboration 1 110 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 75 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 78 Return to Agenda GartnerMagicQuadrant GartnerResearch 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 76 (Visibility ) DELL Visibility VMI) VMI FactoryPlanner SCP Supply Hub Collaboration Collaboration FactoryPlanner FactoryPlanner 2 DELL2 0 1.5 99% 1.5 2 4 Factory Planner CRITICAL: Time 0 : 1.5 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 79 13
SCM LT LC LC 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 80 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 83 Borden Foods.Inc 2 0.75 4 14,000 85 2 4 1 Creamette,Classico.Catelli 20025 i2 Demand Planner 30 2 Mthly Error 50% Cum Error Linear (Mthly Error) Error) 40 90 OA 30% 30 J F M A M J J A S O N D J F M A M J J A S O N 2002.7.1 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 81 Borden Foods Industry Average 35% Borden Goal 30% Borden Actual 28% 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 84 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. i2 2002117 Best Buy 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 85 14
i2cpfr CPFR Best Buy (CPFR) Dell (Collaboration) IBM (CPFR) Nortel (CPFR) Sun Microsystems (CPFR) Taylor-Made Golf (CPFR) Vanity Fair (CPFR) Replaced competing product Amazon.com Barnes & Noble Dillards Home Depot JC Penney Mitsui & Co. Ltd Nordstrom Office Depot Polo Ralph Lauren/Retail Sears Woolworths Pty 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 86 e-marketplace CPFR Transora* WWRE* C-StoreMatrix* E-GateMatrix* MyAircraft.com* istarxchange* e2open* RubberNetwork* SCM (Min change & Max Value) 1995-2003 i2 Technologies, Inc. ALL RIGHTS RESERVED. Slide 87 15