Clayton builds a modern supply chain and finance ecosystem with Oracle

A leading home builder adopts Oracle Cloud Applications to revamp systems, optimize supply chain, and simplify financial processes.

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Our vision is to offer attainable housing solutions to every level of home buyer. Oracle Cloud Applications helped us consolidate our disparate landscape and provided a single, cloud-based, scalable platform we needed to be successful on that journey.

Steve QuanteVice President, Home Building and ERP Technology, Clayton

Business challenges

Clayton is the largest builder of modern manufactured housing in the United States. Beginning with a single location in 1956, the company has grown to more than 28 supply facilities, 40 homebuilding facilities and 380-plus retail home centers across the country. Its workforce of more than 21,000 employees shares one goal—to make the dream of home ownership possible for more individuals and families.

The company used an eclectic mix of home-grown and mostly legacy applications to support its supply chain, finance, and reporting needs. Clayton decided it needed to modernize its technology footprint to improve efficiency and bolster its aspirations of bringing housing to more people. Its legacy technology lacked sophisticated functionality, such as mobile capabilities and real-time visibility, to support evolving demands. In turn, this made strategic supply chain planning difficult and inaccurate.

The vertically integrated business model, consisting of different entities including, manufacturing, retail, and mortgage business units, added additional complexity, especially within the company’s supplier network. On the finance side, numerous sources of accounting data across disparate sub ledgers resulted in time-consuming financial reporting, with employees spending large chunks of time gathering data and reports.

Why Clayton chose Oracle

With a vision to modernize and transform whole areas of the organization, Clayton recognized that it needed a unified platform that had the power and adaptability to grow alongside the business. After comparing the top vendors in the market, the company selected Oracle Fusion Cloud Supply Chain & Manufacturing (SCM), Oracle Fusion Cloud Enterprise Resource Planning (ERP), and Oracle Fusion Cloud Enterprise Performance Management (EPM) for the single integrated suite of cloud-based applications.

Running on Oracle Cloud Infrastructure (OCI), with its world-class security, scalability, and performance, Oracle Cloud Applications stood out from the competition and made the choice easy for Clayton.

From a functionality standpoint, Oracle Cloud ERP would help consolidate sources of financial data from across the business into a single general ledger. It would also simplify accounting processes and provide greater visibility across all transactions. And no other vendor evaluated could match Oracle Cloud SCM’s ability to support the company’s dynamic supply and demand planning needs while increasing operational efficiency. Meanwhile, Oracle Cloud EPM would streamline reporting, budgeting, the financial statement close process, and analysis across departments to support connected planning, which would guide decision-making to drive the business forward.

Results

Taking a finance-first approach to its implementation with Oracle Cloud ERP and Oracle Cloud EPM, the company consolidated enterprise-wide financial data into a central platform, moving away from multiple definitions, formats, and management processes for accounting and budgeting data. The result was a simplified, robust platform that facilitated a single set of processes that was standardized across the organization.

Oracle Cloud ERP combined disparate subledger data from different business units—including financing, manufacturing, and retail—into a single chart of accounts. The company used Accounting Hub to consolidate several business units. The application’s scalability also supported high transaction volumes with faster processing speeds, while its flexibility allowed Clayton to adapt to evolving accounting standards and remain compliant with new regulations. The combined power of Oracle Cloud EPM enhanced and streamlined planning, budgeting, and reporting efforts, freeing employees from mundane tasks and allowing them to focus on more strategic finance activities to plan for growth. As a result, Clayton automated its financial close and reduced its reporting times.

After solidifying the finance and reporting side of the business, Clayton deployed Oracle Cloud SCM, which gave the company an all-in-one tool to efficiently manage its supply chain, manufacturing, and logistics operations. With previous systems, suppliers were doing business with multiple Clayton entities under different supplier numbers. This convoluted process created inconsistencies in data and made managing relationships difficult. With Oracle Procurement, the company adopted a single consolidated supplier record to improve vendor negotiations, maximize cash discounts, and simplify onboarding and vendor management.

Another supply chain priority was the consolidation of item data, because the same materials were being classified with different item numbers and descriptions across the enterprise. Oracle Product Hub housed a robust collection of all material data, allowing items to be classified consistently. This helped streamline manufacturing and simplified sourcing materials through a clearly defined process.

Partners

Clayton selected Grant Thornton as its implementation partner to modernize its finance and supply chain operations with Oracle Cloud Applications. The deployment of Oracle Cloud ERP and Oracle Cloud EPM was finalized in two years, while the deployment of Oracle Cloud SCM to over 40 home building and 28 supply facilities is in progress. Over a four-year period, Clayton and Grant Thornton supported a common goal of transformation and innovation with Oracle.

Published:June 12, 2024

About the customer

Founded in 1956, Clayton is committed to opening doors to a better life and building “happyness” through home ownership. A Berkshire Hathaway company, Clayton is a leading single-family, values-driven home builder dedicated to attainable housing, sustainable practices, and creating a world-class experience for customers and team members. The company’s portfolio includes a range of site-built, off-site, tiny, “CrossMod,” and modular housing. In 2023, Clayton built more than 52,000 homes across the country.