Leading Cookware Manufacturer Gibson Overseas, Inc. Acquires more Customers and Improves Operational Performance after Modernizing Oracle Cloud ERP, SCM and PLM Applications

Client - Gibson Overseas Inc.

Industry - Retail and Distribution; Tabletop, Houseware, Dinnerware

About the Client

Gibson Overseas, Inc. is a U.S. based multi-category manufacturer of dinnerware, cookware, cutlery, and kitchen tools and gadgets. Gibson’s all-inclusive services - design, marketing, manufacturing, and customized packaging options – have helped to establish the brand as a leading resource for the world’s best retailers. Gibson sells its innovative products through private labels including Pioneer Woman, Laurie Gates, Oster, Sunbeam, Crockpot, Mr. Coffee and Gibson Elite.

Gibson operates in one-million square foot warehouses in Los Angeles and San Bernardino, California with additional facilities in Canada. The company was founded in 1979 and is headquartered in Commerce, California with a showroom in New York, New York.

Products & Services

  • Implementation of the following Oracle Cloud Applications:
    • Financials – General Ledger, Payables, Receivables, Tax, Fixed Assets, Cash Management.
    • Supply Chain – Procurement, Order Management, Demand and Supply Planning, Inventory, Costing, Landed Cost, Product Development Cloud, Product Data Hub
    • EDI with around 100 partners and dozens of formats
  • Oracle PaaS – Java Cloud Service, Database Cloud Service, Data Visualization Cloud Service (DVCS) and Oracle SOA for integrations
  • Trade Promotion and Claims Management (Jade Global proprietary solution)
  • Jade Trade Management Solution, 3PL integrations
  • EDI integrations using SOA, OIC, PAAS, GSX, CommerceHub, etc
  • Oracle Transactional Business Intelligence (OTBI) with 50+ complex reports
  • Oracle FR Studio and Custom Reporting using PAAS data

Business Requirements

  • Adopt Modern, Digital, and Scalable Cloud Applications to support high growth
  • Seamless cross-functional business processes: Order to Cash, Procure to Pay, Record to Report, Plan to Procure and EDI integration with Partners like Walmart, Target, BBB, Macy’s, Costco, Yusen, etc.
  • Standardize business processes, eliminate customizations where possible, and provide integrated “MUST HAVE” customizations such as – EDI orders, shipping, trip functionality and label printing
  • Supply chain and demand planning Self-service robust reporting solution

Business Challenges

Gibson’s business model is extremely time critical by nature; new products are designed yearly and sometimes even seasonally. Its products are required to hit the shelves of major retailers in line with respective seasons. Even a minor delay can lead to less than forecasted sales, entire orders getting cancelled, or inventory left stranded on shelves because the customer chose a competitor’s products. On the other hand, Gibson’s customers commit to orders late in the sales cycle. This is compounded with low product margins, high shipping and inventory carrying costs, and little room for errors.

As a result, Gibson’s supply chain material and information flow is time sensitive. The more automated and systemic these material and information flows become, the more likely Gibson is to make money on its sales and avoid suffering a loss.

Prior to working with Jade Global, Gibson was using an old version of an Oracle E-Business Suite (EBS) application that required an upgrade. The processes implemented in EBS were not scalable. In addition, the system was constraining the speed at which Gibson wanted to expand its business offerings and customer base, due to extensive customizations built within EBS.

Several Gibson’s EBS processes were highly manual and inefficient. The processes were built around system constraints, rather than business best practices. The onboarding of a new supplier or a customer on their EDI integration platform was always a major project, becoming a bottleneck in the business growth. Gibson was paying hefty penalties to its customers because of the delays and inaccuracy in the processes and communications through their EDI integrations.

Another major requirement at Gibson was to improve the speed of new product creations and releases in the system. At the time Gibson started working with Jade Global, the company needed a manual integration between the PLM (Agile) system and EBS. Automating that flow of PLM data back and forth between ERP and PLM systems would have required a costly integration and continuous maintenance.

Finally, Gibson needed a modern Warehouse Management System that would provide real-time mobile transaction processing and improved visibility to inventory in its warehouses.

Business Challenges

  • Large order creations through EDI (thousands of lines in a single order)
  • Heavy customizations within the existing EBS footprint (mainly in Order-to-Cash) were difficult to maintain
  • Multiple functionalities required real-time integrations between custom applications (GXS, ProcessWeaver and Loftware) and Oracle Cloud
  • Label printing, shipping documents, and business reporting were challenging due to disparate systems and data elements

The Solution: Oracle Cloud SaaS and PaaS Applications

Jade Global worked collaboratively with the Gibson to redesign its business processes using industry best practices, Oracle Cloud application features, and a Cloud roadmap. Jade established a phased approach to migrate Gibson to a modern, digital, and scalable Cloud platform. Comprised of onsite and offsite/offshore team members, Jade Global provided Gibson the most cost-effective and best value service. The Jade Global team included industry experts, Cloud functional and technology stack experts, and analysts to configure, build and test the solution. The key approach during the design phase was to eliminate any customization requirements by trying all efforts to adopt Cloud application standard features with the right configurations.

For instances where there were no Cloud features available or a costly product subscription was required, Jade Global designed PAAS extensions to provide Gibson with greater business benefits and process efficiencies. Figure 1 below summarizes the Oracle Cloud Saas and Paas Application framework. Examples of such extensions include Trip Functionality, Shipping Automations, and Backflush Automations. Jade Global also implemented the Jade proprietary Trade Management Solution for Retail and High-Tech Industries to manage trade promotions, budgets, and channel-claims with business-critical approvals built-in. Figure 2 summarizes how Jade Global’s Trade Management Solutions and Middleware were used to bridge Gibson’s ERP Applications.

Figure1 image

Figure1

 

Figure2 image

Figure2

 

 

For third party application and external partner integrations, Gibson had been using Oracle’s SOA Cloud and Integration Cloud Services in conjunction with PAAS objects for efficiently storing and processing data during integration. Third Party Application Integrations included ProcessWeaver, UPS, Fedex, Loftware and Agile PLM. External Partner integrations included EDI directly or through GXS and Commerce Hub platforms with customers and through Yusen Logistics portal for suppliers and 3PLs. All of these integrations were built with real-time data exchange capabilities.

 

The Jade team also analyzed the need for data migrations to enable business continuity after Cloud implementations. Jade helped Gibson migrate its data to Cloud using the Jade Global “Oracle Cloud Migrator” (OCM) solution. The data migrated included master data entities such as org. structure, chart of accounts, employees and their roles, product information (items, costs, product structures, categories, routings, etc.), customers (accounts, sites, site-uses, contacts, etc.), suppliers (approved suppliers, sites, banks, etc.), sourcing rules, price lists, assets, trade promotion budgets, etc. Gibson’s active master data was the only data extracted with each data entity. This process followed Gibson’s business logic to filter the right active data. Jade also helped with migration of open transactions such as GL balances, asset depreciations, open AP invoices, open AR invoices, receipts and claims, open POs, open SOs, on-hand inventory, WIP, supply-demand data, etc. to allow Gibson to continue its business in the Cloud without hiccups. The history of transactions were maintained in Oracle EBS applications with “view only” access for the business to audit old transactions.

Furthermore, Jade enabled Oracle Transactional Business Intelligence (OTBI) to provide real-time insight into business processes. OTBI is a robust and easy to use, real-time analysis tool. Instead of exposing the complexity of data structure to Gibson’s business users, OTBI organizes reportable data objects into functional subject areas that business users can easily relate to. Users simply drag and drop data from functional subject areas and use different graphical views to interactively explore or visualize data. Combined with Oracle Financial Reporting Studio (FR Studio) and custom reporting, Gibson’s financial data was reduced into simple and easy to manage reports in a variety of formats that different business leaders and the financial department can quickly obtain to get vital financial information. Jade recreated complex customer-facing documents and user reports to enable a seamless business transition to Cloud.

High Level Global Trade Management Solution Diagram.

Figure3 image

Figure3

Figure 3 outlines the high level Global Trade Management (GTM) solution created for Gibson

The Solution

  • Oracle Financials – General Ledger, Payables, Receivables, Cash Management, Fixed Assets, Taxes
  • Supply Chain – Procurement, Order Management, Demand and Supply Planning, Inventory, Manufacturing, Costing, Landed Cost Management, Product Development Cloud, Product Data Hub
  • EDI with approximately 100 partners and dozens of different formats including 180, 810, 820, 850, 856, 860, 865, etc.; both inbound and outbound with customer dictated formats and additional attributes in each report
  • Integrations with GXS, ProcessWeaver, Loftware, Fedex and UPS
  • PAAS Extensions for Trip Functionality and Shipping Automations
  • Trade Management Solution for Trade Promotion and Channel Claims Management
  • Item Status and Performance Report to provide historical and forecasted sales along with key attributes of every item in a user readable format built in PAAS
  • 5+ PLM extensions for process agility and speed (Phase 2)
  • 40+ complex customer facing documents
  • 60+ complex OTBI reports
  • 2 rounds of user training
  • WMS Cloud - Logfire (Phase 2)

Business Benefits

  • Streamlined complete end-to-end business processes
  • Significantly improved business speed, scalability, and agility, allowing Gibson to service additional customers and business growth
  • Faster onboarding of new suppliers on the EDI platform, expanding supply base and reducing procurement spend and overheads
  • Speed of operations and communication flow prevent thousands in penalty costs per year
  • Total cost of ownership for business applications improved by over 35%
  • Automatic upgrades reduced support costs related to patching and upgrades
  • Integrated PLM, ERP, SCM, WMS applications with EDI integrations
  • Platform to automate and migrate additional business processes to modern Cloud applications

End-user Training, Change Management and Long-Term Support

No matter how advanced a technology software is, it is ineffective if the staff isn’t properly trained on how to use it! As part of Jade Global’s Cloud implementation approach, Jade provided user training and change management assistance to Gibson’s end-users. The change management planning ensured staff at Gibson had a positive experience adopting the new technology platform and business processes. The process involved identifying and creating a comprehensive plan that incorporated everything from IT training, executive technology briefings, end-user training and communication protocols. As with all its customers, Jade provides continued long-term sustaining support in the Cloud following the implementation. Jade has been supporting Gibson’s applications since 2015.

Business Value Delivered

With its modern and digital Cloud platform, Gibson has been able to grow rapidly and acquire more customers and share of the customer spend. Similarly, Gibson can quickly onboard additional suppliers, helping to reduce procurement and logistic spend. Gibson’s seamless ERP consolidation and integration improved operational efficiency, overall employee productivity, data flow, quality of management information, and led to significant cost savings. The integrated PLM and ERP applications allow Gibson to eliminate delays in product releases, potential revenue losses and obsolescence costs. Multi-phased implementation of Oracle Cloud SaaS and PaaS Applications resulted in faster business benefits and better adoption of Cloud processes.

Jade streamlined Gibson’s complete end-to-end business processes with the enablement of Oracle OTBI, FR Studio and Custom Reporting, and migrating master and transactional data from EBS to Cloud. Jade’s user training and change management assistance to Gibson’s end-users resulted in dramatic business performance improvements. After undergoing personnel training, Gibson’s team was equipped with the skills and technological know-how to build business critical reports and work more efficiently with its new Cloud applications.

The key extensions implemented during this project, such as trade management and shipping automations, allowed further improvements in business productivity and speed of operations.

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