Thursday, April 19, 2012

Introduction to VCP

Value Chain Planning (VCP) is a suite of products which enable companies to efficiently design,plan and service their value chains.


Below figure depicts some of the modules available in VCP.






  • Oracle Demantra Demand Management
  • Oracle Service Parts Planning
  • Oracle Inventory Optimization

  • Demantra
                  This module is used for Forecasting. The Demantra Engine, takes input as past sales history (for Analytical Forecast), install base history (for Leading Indicator Forecast) and generates the forecast for the future.

  • Service Parts Planning
                  Any service organization, which involves movement of Usable parts to all its warehouses, and receiving of Defective parts for repair purpose can implement service parts planning. It ensures the availability of a part at the right time and at the right location to serve the customers.

  • Inventory Optimization
                 This module is used for planning the time phased safety stock for each part at every organization. Inventory Optimization ensures the right amount of inventory to hold at each organization there by reducing the inventory carrying cost besides other benefits.


Basic Flow:




Let us explore the Service Parts Planning (SPP) and Inventory Optimization (IO) modules and get a better understanding of each module.