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Four Quick Wins to Prepare for the Upturn Now

Even though manufacturing capacity utilization hit a 70-year low this year, manufacturers shouldn't let the depth of the current recession delay plans for capitalizing on an eventual upturn. After all, the Chicago Federal Reserve is now pointing to improvements in the closely watched Purchasing Manager's Composite Index and other signs for its prediction for solid economic growth in 2010.

What can manufacturers do now to prepare for those better economic times? Oracle is advising companies to concentrate on four specific “quick win” components of supply chain management that can significantly cut costs with a minimum of upfront investments in new technologies:

• Product lifecycle management: It’s key to cost containment because 85 percent of all sourcing decisions and costs are typically determined before new products become prototypes. Integrated PLM systems provide early visibility into these costs as well as the tools to closely manage them.



• Inventory management: Inventory reductions can yield direct bottom-line benefits. For example, LeapFrog, a vendor of technology-based learning products, increased its gross margins by about 10 percent through a $50 million reduction in inventories after implementing Oracle Planning Solutions.



• Procurement: Purchasing decisions also directly influence eventual profits. For example, Oracle estimates that companies using an advanced procurement planning application that yields a 5 percent reduction in purchase costs may see 50 percent increase in profit margins.



• Transportation: Improved shipping and logistics management can be one of the most effective tools for quick ROI. According to Oracle, more than 70 percent of companies that implement its transportation management solutions report a 6 percent savings, while almost 30 percent see even greater savings of 10 percent or more.

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Green Initiatives in the Reverse Supply Chain

Performance-Driven Manufacturing

Improving Shop-Floor Data Collection with Oracle Manufacturing Operations Center

Improving Plant Reliability and Uptime with Oracle Asset Lifecycle Management

The Benefits of Oracle's Warehouse Management Solution and RFID

New Best-in-Class Solutions in Supply Chain Planning - Part 1

New Best-in-Class Solutions in Supply Chain Planning - Part 2

Oracle Supply Chain Management

JD Edwards EnterpriseOne Supply Chain Management

Oracle Transportation Management

Industrial Manufacturing