Oracle Supply Chain Management Cloud: Order to Cash

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1 Oracle Supply Chain Management Cloud: Order to Cash (includes Order Management, Pricing, Configurator, Global Order Promising, Inventory Management, Supply Chain Financial Orchestration, and Advanced Fulfillment) Release 11 Release Content Document December 2015 Revised: June 2016

2 TABLE OF CONTENTS REVISION HISTORY... 3 ORDER TO CASH... 4 MULTICHANNEL ORDER MANAGEMENT... 4 ORDER MANAGEMENT... 6 Capture Orders... 6 Integrate for Complete Order-to-Cash Process... 7 PRICING... 8 Create Targeted Pricing Strategies and Customer Segmentation... 8 Manage Pricing and Shipping Rules... 8 Configure and Customize Pricing Processes CONFIGURATOR Centrally Manage Configurator Models Simplify Configuration of Complex Solutions Integrate with Order Management GLOBAL ORDER PROMISING Promise Orders with Complex Fulfillment Scenarios Integrate Order Promising with Manufacturing Promise Orders for Configure-to-Order Items Use an Updated User Interface to Manage Backlog and Rescheduling Update Supply in Real Time Promise Orders Using Data From External Sources INVENTORY MANAGEMENT Fulfill Orders in Complex Fulfillment Scenarios Deploy Materials Management Locations More Quickly Support Internal and External Manufacturing Integrate to External Warehouse Management Systems and 3PLs SUPPLY CHAIN FINANCIAL ORCHESTRATION Use Simplified Setup and Monitoring ADVANCED FULFILLMENT ADVANCED FULFILLMENT... ERROR! BOOKMARK NOT DEFINED. Use Configure-to-Order Flows Use Supplier-to-Customer Drop Ship Flows Use Back-to-Back Flows Use Internal Material Transfer Flows SUPPLY CHAIN ORCHESTRATION SIMPLIFIED SETUP Quickly Set Up Common Components and Facilities Quickly Set Up Cost Management

3 REVISION HISTORY This document will continue to evolve as existing sections change and new information is added. All updates are logged below, with the most recent updates at the top. Date What s Changed Notes 25 MAY 2016 Global Order Promising: Promise Orders Added new feature in Update 6 (June). Using Data From External Sources 02 FEB 2016 Inventory Management: Integrate to Added new feature. External Warehouse Management Systems and 3PLs 15 DEC 2015 Initial Document Creation 3

4 ORDER TO CASH The Order-to-Cash business flow provides an end-to-end solution that integrates your sales, fulfillment, and finance organizations. This integration improves order accuracy, drives fulfillment efficiency, and eliminates billing errors, which results in more profitable sales and increased customer retention. To facilitate this business flow, Oracle provides a multichannel order management capability that supports a central order hub for multichannel environments, and includes services for order capture and fulfillment orchestration, pricing, product configuration, inventory management, and order promising. Advanced fulfillment capabilities use innovative supply orchestration architecture that support advanced fulfillment services, such as configure-to-order, drop ship, back-to-back order, and internal material transfer flows. MULTICHANNEL ORDER MANAGEMENT As the nexus of order capture and fulfillment functions, Oracle Order Management Cloud supports global, multichannel, order-to-cash processes. You can use it as the order hub for your organization to centralize and manage multiple order capture channels, promise orders, orchestrate fulfillment policies, monitor order status, and manage exceptions: Enter orders. Enter sales orders directly in Oracle Fusion Order Management, import them from an external capture system, or import them from external capture system and then edit them. For example, you can import orders from an e-commerce system, and then modify them in Order Management. Use a common order format. Use a standard format to convert all orders for easy search and viewing. For example, a user can search for Product A across orders that other uses created Order Management, and across orders that an administrator imported from an e- commerce site, call center or through electronic data interchange (EDI). Use orchestration fulfillment policies. An orchestration policy routes and manages orders across multiple fulfillment systems. For example, you can use a schedule, ship, and bill process to route order lines to two different enterprise resource planning (ERP) systems. Get centralized status updates. Normalize status updates from multiple fulfillment systems. Return normalized status updates to external capture systems. For example, return a SHIPPED order status to an e-commerce system even if one warehouse system returns a Shipped status for an order line, but another warehouse returns an SHP status for the same line. Get analytic summaries. Get a summary view of statuses and exception orders. For example, you can view a graph that displays a summary of orders that are at risk of missing a promise date. Configure order promising. Use Oracle Fusion Global Order Promising to collect supply data from multiple sources and to configure rules that select the best fulfillment location for demand from any channel. You can select according to future availability, expected delivery date, and preferred delivery method. Allocate scarce supply according to customer, channel, or to resolve order exceptions. 4

5 Manage change orders. Use change order logic to make sure change orders are processed and revised consistently across all orders. For example, if Order Management receives a quantity change from an imported order, and if the product has not shipped, then it uses change logic that allows the change, and then rolls back the fulfillment process so that it can reschedule and send a new ship request to the external fulfillment system. Use heterogeneous deployment. Use a mixture of cloud and on-premise environments for your capture systems and fulfillment systems. For example, you can import orders from a cloud capture system, and then fulfill them to an external, on-premise ERP system. 5

6 ORDER MANAGEMENT Oracle Fusion Order Management provides a central order hub for multichannel environments so that it can improve order capture and fulfillment across the order-to-cash process. You can capture, price, and configure orders directly in Order Management. You can receive orders from external sources, modify them in Order Management, and then process them for fulfillment. You can use prebuilt integrations with other Oracle Cloud services, centrally managed orchestration policies, global availability, status monitoring, and exception order management. CAPTURE ORDERS Order Management includes capture functionality that makes sure you select the correct product at the correct price to enhance customer experience and reduce operation costs: Enter order header information. Enter information for customer, contact, PO number, sales credits, and so on. Use predefined rules that automatically enter default values for these fields, or create custom rules. Select and add products. Search for items, view price and availability, and then add products to the order. Configure products. Search for a configurable item that includes multiple components that you can configure, such as a desktop computer, view components and pricing during configuration, validate your configuration, and then add it to the order. Price your order and order lines. Price each order line before you add it to the order, calculate tax, display price breakdown, and then view order totals while you create the order. Manage order lines. Copy or delete order lines, enter custom attributes, manage attachments, and apply and release holds. Select shipment details. Select a shipping address, shipping contact, priority, request date, shipping warehouse, and the shipping method. View availability according to request date and shipping method. Select billing and payment preferences. Select the bill-to account, contact, and payment terms. Select billing preferences for recurring services. Validate and submit. Use predefined or custom validations to validate your order at any time, view and correct errors, and then submit the order for fulfillment. View fulfillment status. Receive and view automatic fulfillment updates for each order line. Navigate to detailed fulfillment information so that you can examine the fulfillment process steps and timelines, including fulfillment sources, orders lines that are at risk of not meeting a promise date, and to view alternate supply options that you can use to resolve order exceptions. Search and view orders. Quickly search to find and drill to specific orders. Use an advanced search to add your own search criteria. View a graphic summary of important issues, and then drill to a list of orders that matches the issue. Quickly navigate to important tasks, such as creating an order. 6

7 Revise orders. Cancel an order. Add, cancel, or modify order lines, and view change history. Use predefined business rules, or create your own to make sure only valid changes are allowed. Create return orders. Create, edit, or revise an order that includes returns to an existing customer order. Set default values for the order header and return line attributes according to the original order information. Validate returns on-demand or when you submit the order. Import orders. Import orders from multiple capture applications, including e-commerce, quoting, and EDI. Import orders from a Microsoft Excel spreadsheet or flat file. Allow imported orders to be revised or processed for fulfillment only (no changes to price, quantity, etc). INTEGRATE FOR COMPLETE ORDER-TO-CASH PROCESS Order Management comes already integrated with other Oracle Cloud applications so that you can use a set of advanced fulfillment processes that can speed time to market and lower implementation costs. Order Management and Oracle Fusion Inventory Management use fulfillment orchestration to fulfill orders that you enter directly in Order Management or that you import from some other source. Order Management also provides a set of web services that you can use to integrate with other Oracle and third-party cloud and on-premise applications that your supply chain requires to complete the order-tocash process: Integrate cloud processes. Integrate cloud processes, including order to cash, quote to cash, drop ship, back-to-back, configure to order, and internal orders. The integration includes predefined processes and simplified set up. Integrate applications. Oracle Cloud solutions that come integrated with Order Management include Oracle Inventory and Cost Management Cloud, Oracle Manufacturing Cloud, Oracle Procurement Cloud, Oracle Product Master Data Management Cloud, Oracle Financials Cloud, and Oracle Configure, Price, and Quote Cloud. Integrate web services. Use web services to perform batch and real-time order import, send a request to a fulfillment system, receive a status from fulfillment systems, and integrate to other cloud and on-premise systems. Inventory, shipping, receiving, finance, and order management are examples of fulfillment systems. 7

8 PRICING Oracle Fusion Pricing provides a flexible price management capability that you can use to create targeted pricing rules and processes that support your corporate pricing practices. The price administration functionality allows you to design pricing rules that meet your specific revenue and business objectives so that you can price products and services for each customer segment. The pricing architecture allows you to configure and customize predefined logic so that you can implement pricing processes that run the pricing rules that your deployment requires. CREATE TARGETED PRICING STRATEGIES AND CUSTOMER SEGMENTATION Pricing enables you to effectively implement and enforce corporate pricing strategies so that they meet your business and revenue objectives. You can group pricing rules in a pricing strategy to create specific pricing behavior. You can assign customers who use similar buying practices to a pricing segment, and then associate this segment with a pricing strategy that meets the business and revenue goals that you set for this segment: Define a customer pricing profile. Use predefined attributes to define customer buying behavior, such as customer value, revenue potential, cost to serve, customer rating, and size. You can customize these attributes during implementation. Group customers into pricing segments. Identify a targeted group of customers according to a common set of pricing attributes and customer pricing profile. Create pricing strategies. Group pricing and shipping rules in a pricing strategy that achieves a goal for selling and pricing products. These rules can control strategies for price lists, cost lists, discount lists, shipping charge lists, and currency conversion. If multiple rules exist, then you can specify the sequence to use when evaluating them. Assign pricing strategies to pricing segments. Assign pricing strategies to pricing segments so that you can define customer targets according to different sales scenarios. For example, you can use a pricing strategy that uses higher discounts when selling to new customers through a direct sales channel. You can use the pricing matrix infrastructure to customize the conditions and attributes that determine the pricing strategy. MANAGE PRICING AND SHIPPING RULES Pricing allows you to create date effectivity rules that calculate price and shipping charges for a product or service. You can apply multiple charges to a product or service. For example, you can charge a onetime sales charge and a service fee that recurs monthly. A charge can include charge components that represent price points, such as base price, list price, and net price that contribute to the final price. You can create pricing rules that calculate the base price, price adjustments, discounts, return charges, and shipping charges. You can use currency conversion and rounding rules to manage pricing for different currencies. Pricing enables you to control how it displays the price breakdown and totals. 8

9 CREATE BASE PRICES AND LIST PRICES Group pricing rules on a price list. Create price lists that manage product and service pricing for a sets of customers or a time period. Create price lists for pricing segments, for General Services Administration (GSA) checks, or for lists that control minimum and maximum prices. You can also use import and export to create and maintain price lists. Add charges to a price list. Create pricing charges that calculate a one-time or recurring base price, or that adjusts a base price to determine other price points at runtime such, as list price. Create tiered adjustments. Create price adjustments that adjust the base price according to the item quantity or extended amount on the transaction line or header. You can use multiple adjustment types, such as discount amount, discount percent, markup amount, markup percent, and price override. Create adjustments based on attributes. Create price adjustments that adjust the base price according to a set of conditions that you model as attributes through the pricing matrix infrastructure. Create pricing rules for a configurable model. Create pricing rules and adjustments for a configurable model at the root model item or, for pricing rules only, at the component level. Aggregate charges at run-time to create a rollup charge on the configuration. CREATE PRICES FOR DISCOUNTS Group adjustment rules on a discount list. Create a discount list that defines discounts that apply to an item or to all items according to a specific charge or type of charge. For example, give a 10% discount on all one-time charges. Create simple discount rules, discount rules based on attributes, or discount rules that use tiered adjustments. Create discounts for a configurable product model. Create discount charges that apply to a root item, a component, or to the aggregated rollup charge on the configuration. Create simple adjustments for root items and components. Create more complex adjustments that use attributes and tiered adjustments only for the root item. CREATE PRICES FOR SHIPPING AND RETURNS Create shipping charges. Create shipping charges for one or more items, for standard or configured items, and add them to a shipping charge list. Create a returns price list. Add return charges to a returns price list. For example, add restocking fees to a returns price list. Customize the price logic so that it adds these charges to a return transaction. CREATE PRICES FOR MULTIPLE CURRENCIES Create currency conversion rules. Create currency conversion rules for a pricing strategy that allows customers to price in multiple currencies while maintaining prices or adjustments in a single currency. SET UP PRICING Assign rounding rules to currencies. Assign rounding rules to currencies that specify how to round prices according to the transaction currency. For example, customers in the United States might prefer prices that end in.97 or.99, while customers in China might prefer 9

10 prices that end in.88. You can create rules that round according to precision, nearest, multiple, and range. Manage charge definitions. A charge is a calculated priced value for a product or service. You can specify a charge definition that includes the price type as one-time or recurring, charge type, and charge subtype. You can specify whether or not to apply the charge to the product price, shipping, or return charge. You can use predefined charge definitions or create new ones. Manage price elements. Specify the price element that calculates a charge component that defines a price point for the charge. For example, specify a price element that determines the base list price, list price, and net price. You can specify a price element for the price, adjustment, cost, margin, or tax. Create customized pricing elements that capture different points in the price calculation. Manage pricing basis. A pricing basis is a reference or an aggregated value that defines the charge and charge components to include in the adjustment qualification. For example, if a tiered adjustment applies according to the value of the products ordered, then the pricing basis could include all net price charge components for one time sales charges. You can use a pricing basis in an adjustment that uses an attribute or tier. Configure display of the price breakdown. Use the Pricing Results Presentation template to configure how Pricing displays the price breakdown, including the details of the charges and charge components. You can specify the price elements to display and how to display them. Configure pricing totals. Configure the pricing totals to calculate and display. Pricing includes predefined totals that determine how to aggregate and display pricing, tax, and shipping charges in Oracle Fusion Order Management. For example, total list price, discount, total net price, shipping, total tax, total credit, and pay now. USE PRICING MATRICES A pricing matrix allows you to define a set of conditions and results in a tabular matrix. The matrix is used in pricing rules that determine prices based on a set of conditions. Define a matrix class. Modify a predefined matrix class or create a custom one that specifies the attribute to measure in a condition, such as sales channel or transaction type, and the attribute to return if the condition is met, such as pricing strategy. Map matrix class to matrix type. Assign a matrix class to a matrix type to determine the matrix to use. Define the conditional attributes that are available for the pricing rule. For example, assign a matrix class according to attributes that measure size and color to a matrix type that you use when you set up pricing rules that reference those attributes. Use matrix types in pricing rules. Use the conditional rules and results that you define in the pricing matrices to create pricing rules. For example, specify pricing rules that are based on attributes and that select pricing segments and strategies. CONFIGURE AND CUSTOMIZE PRICING PROCESSES Use a highly configurable and easily extensible infrastructure to create pricing processes that meet your business needs. The pricing infrastructure includes pricing algorithms and service mappings. 10

11 DEFINE PRICING ALGORITHMS Create high performing, custom pricing logic according to predefined pricing processes: Customize the pricing process. Use predefined pricing algorithms to create a pricing process that meets your business requirements. Copy existing algorithms, edit steps, reuse and resequence existing steps, or add new steps. Model pricing processes. Use modular pricing algorithms to define your pricing processes. For each algorithm, define procedural pricing logic in a sequence of steps to represent your business requirements. Define functions. Embed additional business logic in functions that reference objects or scripts. Test and release pricing process. Create versions, test, and then publish the modifications that you make in pricing algorithms. CREATE SERVICE MAPPINGS A service mapping provides a predefined, customizable map between consumers, such as Oracle Fusion Order Management or Oracle Fusion Configurator, and Pricing: Customize the predefined service mappings. Use the pricing service mappings that come predefined with the product to integrate with pricing consumers. Modify these mappings or create custom mappings that meet your integration needs. Model pricing entities and attributes. View and customize the predefined entities, attributes, or constraints that the pricing process and pricing rules use. For example, add attributes that determine discount eligibility. Define the source data for pricing entities and attributes. Define the source data to use with pricing entities and attributes. For example, customize the Price Request service to source additional attributes from the sales order. Customize predefined or create pricing services. View and customize the services that integrate the pricing process. For example, customize the service that determines the pricing strategy. 11

12 CONFIGURATOR Oracle Fusion Configurator is a powerful selling and configuration product that enables you to model products and services that are configurable, multi-option, and customizable. Using the underlying constraint-based technology, complex customizable products can be modeled as a series of rules and options that guide customers to the correct solutions and ensure that only valid configurations can be created. This integrated and flexible process eliminates order errors and rework costs. It automates the order-to-production process to reduce overall sales cycle times. Configurator includes the following components: Configurator modeling capability that uses constraints to develop rules and options that define valid configurations for each product. Configurator runtime view that references configurator models to display a dynamic user interface that captures the configuration selections that a user makes for an order. You can optionally use a simple definition that references the product structure. A process that translates selections into a fulfillment activity, such as manufacturing or picking. CENTRALLY MANAGE CONFIGURATOR MODELS Configurator provides an intuitive development environment that you can use to create and maintain configuration models. The configurator modeling environment allows a product configurator manager to manage the full development life cycle for a configurator model, from importing the model structure into the modeling environment, to designing, testing, and releasing the configurator model to production: Capture Snapshots. Capture a snapshot of the model and related data that exists during a point in time. Continuously synchronize this data from the common product model. Use workspaces. Use a conceptual work area to modify and test each draft model before you release it into production. Add guided selling features and options. Supplement the model with guided selling features and options that provide questions and answers that help the user configure the solution and provide a simple, positive user experience. Define model behavior. Use different types of rules, such as default rules, constraint rules, or search decisions that control how the model can be configured. Design a customized user experience. Use a what you see is what you get (WYSIWYG) user interface editor to conditionally control page layout and content at runtime, such as pages, areas, items, text, images, and so on. Test your model. Simulate and test business logic, model behavior, and model the overall user experience prior to release. Manage model versions. Manage versions of configuration models. Control the supplemental structure, rules, and user interfaces for each version. 12

13 Release model modifications. Incrementally release delta modifications that you make on the model into production. Use comprehensive impact analysis and validation before you release the model to make sure the model maintains a high degree of quality. SIMPLIFY CONFIGURATION OF COMPLEX SOLUTIONS Configurator provides a dynamic, runtime user interface as a task flow in the Oracle Application Development Framework. You can embed this task flow in your hosting application. The user interface uses templates that allow you to rapidly develop and deploy your solution: Leverage templates in your user interface. Use a variety of predefined templates, with features such as radio button groups, check boxes, and drop-down lists, that enable users to make selections and enter information in your user interface. Use more complex tabular controls to manage multi-item and multi-instance selections. Leverage templates to generate user navigation flows. Use predefined templates that specify the user interface flow according to commonly used layout and navigation options, such as single page, step-by-step navigation, dynamic tree, and so on. Specify additional item characteristics. Use transactional item attributes that are part of the item class to specify additional item characteristics during runtime product configuration. Calculate prices for configuration. Display prices for selections in the configuration user interface so that the user can make informed decisions. View configuration results. Display a summary of final selections in the user interface, including pricing details and totals for the configuration. INTEGRATE WITH ORDER MANAGEMENT Oracle Fusion Order Management calls the Configurator runtime user interface directly from the order. The user makes selections, the constraint engine verifies them, and then Configurator returns details of the configuration to the order. The user can view configuration details in the order, and can restore the configuration to make changes or revise the order, as necessary. Configurator can support a complete configure-to-order flow in the context of Order Management, supplying all aspects of the configuration rules, user interaction, order capture and translation. It can also provide the backend and integration services that are required to fulfill the order for finished products and manufacturing for configurations that other sources capture, such as through Oracle Configure, Price, and Quote Cloud. 13

14 GLOBAL ORDER PROMISING Oracle Fusion Global Order Promising is an optional component of Oracle Order Management Cloud that intelligently matches order demand with available supply. As each order arrives, Global Order Promising selects the best fulfillment location, taking current and future availability, expected delivery dates, and preferred delivery methods into account. Each supply strategy can include manufacturing items to meet demand, or use back-to-back orders to purchase items that are not stocked in-house, and then ship them to the customer. Global Order Promising can also allocate scarce supply to specific customers or channels. PROMISE ORDERS WITH COMPLEX FULFILLMENT SCENARIOS Model and schedule order lines that use back-to-back orders to fulfill demand, extending capable to promise (CTP) to plan and peg associated transfer, manufacturing, or purchase orders. If conditions change, then re-promise orders according to the actual progress and lead times of the back-to-back orders. You can also schedule drop shipments from a supplier directly to a customer to reduce transit time and costs. These new features for complex fulfillment allow you to do the following: Create supply. Recommend to create purchase orders, transfer orders, or manufacturing work orders to fulfill sales order demands. Use back-to-back orders. Peg demand to a corresponding supply order, so that any sales order rescheduling honors the back-to-back supply reservation. Schedule drop shipments. Consider supplier capacity, the lead times that are required to ship product from the supplier to the customer, and transit modes when scheduling drop shipments. Use internal material transfers. Reduce supply from the source organization and increase supply at the destination organization when scheduling internal material transfers. Integrate internal and external demands. Reschedule internal transfer orders and external orders that already exist when demand changes. INTEGRATE ORDER PROMISING WITH MANUFACTURING Promise items that you manufacture in house or that a contractor manufactures for you. Use Oracle Manufacturing Cloud work definitions to identify appropriate resource capacity or work-in-process materials to fulfill orders. Global Order Promising considers the reservations that exist for internal supply and for supply that a contractor manufactures. PROMISE ORDERS FOR CONFIGURE-TO-ORDER ITEMS Improve the accuracy of promise dates and refine the sourcing of complex items that include multiple components and options, including assemble-to-order (ATO), pick-to-order (PTO), and hybrid configureto-order (CTO) items. Adjust the sources and lead times for components depending on the configuration options that the order line specifies: 14

15 Model configure-to-order supply. Model option classes, options, and mandatory components. Calculate appropriate lead times for the different configurations that exist in multilevel, assemble-to-order (ATO) scenarios. Source according to options. Source according to the different types of demand structures that exist for different assemble-to-order and configure-to-order models. Match existing configurations. Receive information about matching configurations from order capture solutions so you can promise orders from existing configurations before creating new supplies. USE AN UPDATED USER INTERFACE TO MANAGE BACKLOG AND RESCHEDULING Enhance customer service and productivity with a new order promising user interface that highlights performance issues, prioritizes order lines for rescheduling, and streamlines mass actions: Monitor promising performance. Monitor important performance indicators, such as the total number and value of order lines promised, the percentage of order lines promised on time, and the gross margin percentage of promised lines. Simulate demand. Simulate expected demands to determine their impact on supply availability. Perform root-cause analysis. Isolate performance problems, uncover demand trends, identify lines that are significantly delayed or backordered, and detect changes in margin. Manage backlog. Use multiple selection criteria to prioritize lines for rescheduling. Perform mass maintenance. Make mass changes to lines to fix issues more efficiently. Substitute items, update sourcing assignments, or set the transit mode. UPDATE SUPPLY IN REAL TIME Refresh the supply data that resides in memory so that Global Order Promising can use the most up-todate availability information when it promises each order: Refresh data. Directly update the promising model that resides in memory with supply documents and reservations to promise orders more accurately. Refresh scoping. Limit real-time supply updates to categories, items, and organizations that you select. Refresh schedules. Use a scheduled job to refresh data at regular intervals. PROMISE ORDERS USING DATA FROM EXTERNAL SOURCES Promise orders against supplies that are maintained in external systems. You can use file-based uploads to: Upload on-hand inventory: Upload available on-hand inventory for use as a supply source by Global Order Promising. 15

16 Upload purchase orders, purchase requisitions, purchase orders in receiving, and intransits: For example, if you have purchase supplies, you can upload the purchases for use as a supply source by Global Order Promising. Upload suppliers and supplier sites: Suppliers and supplier sites are required to upload purchased supply. Upload transfer orders: If you have inbound transfers that should be considered as a supply by Global Order Promising, then you can upload the transfers. Upload ATP rules and ATP rule assignments: Upload ATP rules for use by Global Order Promising. Collect other data: Upload other entities, such as calendars, organizations, carriers, currencies, units of measure, and cross-references that map reference entity names (such as unit of measure names) from the values used in the external system to the values used in Oracle Supply Chain Management Cloud. 16

17 INVENTORY MANAGEMENT Oracle Fusion Inventory Management offers a complete materials management solution that allows your company to successfully manage the flow of goods: inbound, within the warehouse, and outbound. This functionality optimizes the flow of material so that it meets customer demand in a cost-effective manner. FULFILL ORDERS IN COMPLEX FULFILLMENT SCENARIOS Inventory Management improves efficiency in your supply chain and optimizes working capital. It centrally manages internal inventory transfers across the Oracle SCM Cloud. Internal material transfers is an end-to-end, cross-supply chain solution that orchestrates transfers according to business rules. You can manage transfers separately, or combine them with sales orders to improve customer service: Support drop ships that travel from supplier to customer. If your supplier ships goods directly to your customer, then visibility of the fulfillment event automatically starts when Inventory Management receives the advance shipment notification (ASN) from the supplier. The process records the virtual receipt of these goods, updates the purchase order so that your supplier can be paid, and starts the update process that fulfills your customer order, including billing and subsequent payment from your customer. Fulfill supply chain orders in a back-to-back environment. Inventory Management supports situations where you request supply from one of the following sources of supply so that you can satisfy your customer order: o A supplier o A production facility o Another distribution center It automatically reserves supply for the customer order, which results in streamlined fulfillment for the order. It can reserve supply that is purchased, made, or transferred. Fulfill demand in a configure-to-order (CTO) environment. Inventory Management streamlines handling of orders that include configured products. It treats these orders in the same way that it treats an order for a standard purchased or manufactured product. It models them internally in the same why that it models a finished good. This approach eliminates the need for special processes or procedures that can slow down a configure-toorder environment. Your customers, transportation providers, and export partners need to understand the details of each unique configuration. So, these details display on shipping documents which helps to avoid transportation, export, and customer confusion. Use packing slips that meet regional requirements. To support requirements in different regions of the world, consecutive packing slip numbers improve audit capability for shipments. Draft and final version support for each packing list provides an easy way to make sure documents are correct before they are sent. More attributes on the shipment allow you to use more fields that are related to shipping and transportation. Use internal material transfers. Inventory Management includes a new Transfer Order document that manages the transfer of goods between your stocking locations. It includes shipping statuses and receiving statuses in one location. To improve warehouse efficiency, it 17

18 leverages the fulfillment processes and receiving processes that your warehouse operations already use when it fulfills customer orders or receives purchase orders. DEPLOY MATERIALS MANAGEMENT LOCATIONS MORE QUICKLY Realize benefits of your implementation more quickly and deploy more stocking locations more quickly. You can use a streamlined setup that includes more predefined values for commonly used configurations, more predefined default values for required fields, and automatic creation for related setup tasks. SUPPORT INTERNAL AND EXTERNAL MANUFACTURING Inventory Management seamlessly and efficiently manages inventory so that it can support internal and contract manufacturing facilities: Support and monitor goods in manufacturing facilities. Warehouse operations support your production operations. They issue raw materials to the shop floor, return raw materials from the shop floor, record scrap, and complete finished goods into inventory. These capabilities provide complete visibility and support for inventory transactions. Get visibility into contract manufacturing operations. Inventory Management and Oracle Manufacturing Cloud provide improved visibility into and support of manufacturing that third parties perform. They can model production and inventory transactions at third-party locations, and can provide integrations that ship or receive raw materials and finished goods into and from third parties. INTEGRATE TO EXTERNAL WAREHOUSE MANAGEMENT SYSTEMS AND 3PLS Inventory Management seamlessly and efficiently manages inventory to support companies that run third-party warehouse management systems or outsource their warehousing to logistics service providers (3PLs). Inventory Management supports a central integration framework across Oracle Fusion Purchasing, Oracle Fusion Order Management, and Inventory Management. Communicate expected receipts and receive confirmation of receipts. Inventory Management communicates the following to warehousing operations: expected receipts from suppliers, from internal locations, and from customers returning material. From warehousing operations, Inventory Management receives receipt confirmations, including details of the actual receipts. Communicate shipment requests and receive confirmation of shipped orders. Inventory Management communicates the required information for warehouse operations to pick, pack, and ship product to customers and internal locations. From warehousing operations, Inventory Management receives shipment confirmations, including details of the actual shipments. Receive inventory transactions. Inventory Management receives, from warehousing operations, details about inventory transactions used to count, move, and update the status of material in a facility. 18

19 SUPPLY CHAIN FINANCIAL ORCHESTRATION Oracle Fusion Supply Chain Financial Orchestration is a configurable application that manages the financial relationships that result from the trade that occurs between internal parties. This functionality allows you to separate your physical flow of goods from the financial accounting of these goods. It includes the following new features: Define multinode financial flows. Model and automate multiple ownership changes for a single movement of goods so that you can account for supply chain functions that are centralized without sacrificing supply chain speed. You define a relationship between your internal parties that controls each ownership transfer, that specifies the transfer price to use, and specifies the documentation and accounting that the sale requires. Support Advanced Fulfillment Flows. Define financial flows for supplier-to-customer drop shipments, internal material transfers, and configured products. USE SIMPLIFIED SETUP AND MONITORING Supply Chain Financial Orchestration setup incorporates the buy and sell terms setup directly into the financial orchestration flow, reducing one setup task and improving visibility into your supply chain relationships. You can also use a single page to manage event exceptions and to monitor event orchestration, giving you a complete view of the status of your financial orchestration tasks. 19

20 ADVANCED FULFILLMENT In an effort to reduce cycle times, deliver an excellent customer experience, and increase revenues, Release 11 supports advanced fulfillment strategies, such as configure-to-order, drop-ship, back-toback, and internal material transfer flows. Fueled by a powerful and innovative supply orchestration architecture, Release 11 has unsurpassed fulfillment capabilities for supply chains that must exploit the cloud. Now you can utilize the same flexible fulfillment options in the Oracle Supply Chain Management Cloud that are available in traditional, on-premise, order-to-cash solutions. USE CONFIGURE-TO-ORDER FLOWS Efficiently fulfill each configured order through the new configure-to-order (CTO) process. This streamlined, end-to-end process simplifies fulfillment for a configured product, and provides complete visibility for every step. It uses an intelligent design that reduces item proliferation, reduces replicated data, improves item management, and improves on-time order fulfillment: Capture and manage customer orders for configured products. Select and configure assemble-to-order (ATO) products during the sales order process. View the model price and availability information during this process. Price the configuration at the model level and at the selected option level. You can offer multilevel, multiorganization, configured products that are assembled for each order. You can offer a combination of pick-to-order and assemble-to-order configurations. Automatically create items for specific configurations. When the user finishes selecting options for the model, new algorithms quickly determine whether or not a match for this item definition already exists. If not, then an algorithm creates the new item and the core structure that this item requires. The application dynamically creates views to the item structure or manufacturing work definition throughout the supply chain, depending on the information that the user requires. A planner or production operator can access the complete view whereas, a sales representative, buyer, supplier, or customer can access a sales view. A warehouse user views the final stockable or shippable product, and can drill into the sales view. Promise and source configurations. Promise and source customer orders for a configured product. Ensure that the configuration is sourced from the right location that is capable of fulfilling the configured product order. Plan demand and supply for the configure-to-order process. Forecast the demand for the configure-to-order model. Consume orders for the configured product from model forecasts. Derive the demand on lower level options and option classes according to predefined planning percentages. To make sure options are available in a timely manner to manufacture the configured product, offset the required lead times. Automatically create supply for configured products. Automatically create supply for configured products to reduce cycle times for configured orders. You can procure this supply through drop ship, procured back-to-back, manufactured back-to-back, transferred back-to-back, or on-hand inventory. Each configured product uses the same process that any procured or manufactured product uses. A special procedure or manual procedure for a configured product is not necessary. You can monitor the configure-to-order process from 20

21 beginning to end, from creating the supply through procurement, to internal transfers or inhouse manufacturing. You can visually monitor progress and manage exceptions that might jeopardize order fulfillment. Maintain configured item data. Automatically include modifications that occur to the models in the item master to unique configurations, and immediately include modifications that occur in the model structures in the dynamic item structures. To minimize setup, maintenance, and setup proliferation, each unique configuration references other setups that reside at the model level. Support transactional item attributes. The configure-to-order process supports transactional item attributes to match to existing configurations and for in-house manufacturing. You can easily send transactional item attributes that users select during order entry to manufacturing, and you can use them to determine work order operations. USE SUPPLIER-TO-CUSTOMER DROP SHIP FLOWS Effectively manage the physical and financial aspects of your supplier-to-customer drop shipments, helping you reduce costs, accelerate order fulfillment cycle times, and improve working capital: Promise drop shipments. Configure sourcing rules so that they identify the products that can drop-ship from a trusted supplier directly to your customer. Promise and source a customer order directly to your supplier. Plan drop shipments. Forecast each product that drop-ships to your customers, and consume the drop-shipped orders from the forecast. Honor the reservations for dropshipped orders. To plan for the delivery of orders to customers, use the transit times that exist between the supplier and customer site, and use the calendars that measure time at supplier, supplier shipping, carrier, and customer receiving sites. Automatically create purchase orders. Automatically create a purchase order that instructs your supplier to ship directly to your customer. Improve visibility to customer order information for your buyer and supplier. Use real-time change management. Keep your buyer, supplier, and sales order manager up to date with instant updates to the purchase order that reflect customer order changes. Automatically update the sales order with purchase order changes. Get visibility to fulfillment. Give your order manager visibility to purchase order status and notify them when a problem occurs, such as when your supplier cannot meet customer demand. Automate accounting. Receive notification that the supplier shipped the goods, and then automate documentation and accounting of the ownership change from your supplier, to you, and then to your customer. Use this capability in conjunction with agreements in Oracle Fusion Supply Chain Financial Orchestration to support the multiple, internal ownership changes that your global business agreements require. 21

22 USE BACK-TO-BACK FLOWS The new back-to-back flow allows you to build, transfer, and buy according to customer order specifications, helping to reduce inventory while providing a wide variety of product choices for your customers: Planning and promising back-to-back orders. Forecast back-to-back orders and consume the orders from forecasts. Honor the supply reservations for back-to-back orders. To do planning, use the transit times that exist between the supplier and the receiving organization and the calendars that measure time at the supplier, carrier, receiving organization, and customer sites. You can decide, for each item or for each combination of item and organization, whether or not to use back-to-back orders. Promise your orders according to the sourcing rules and the lead time that is required to make, buy, or transfer the item. Automate supply orders. Automatically create a work order, transfer order, or purchase order that the application reserves for the sales order line. Provide visibility to your sales order and customer information on the reserved supply. Give your supply chain manager visibility to the sales order where the supply order is reserved. Manage change in real-time. Instantly adjust the supply and demand changes, giving your supply chain manager the ability to re-source the supply, if necessary. Provide fulfillment visibility. Give your order manager visibility to the work order status, transfer order status, or purchase order status. You can immediately notify the order manager when a problem occurs, such as when the supply cannot meet the customer request. Automatically reserve inventory. Automatically reserve inventory for a sales order when it becomes available in inventory, making sure that no other order can use it. USE INTERNAL MATERIAL TRANSFER FLOWS To improve efficiency in your supply chain and to optimize working capital, you can centrally manage internal inventory transfers across the Oracle Supply Chain Management Cloud. Internal material transfer (IMT) is an end-to-end solution that orchestrates transfers according to business rules. It can orchestrate across multiple supply chains. You can manage transfers separately, and you can also combine them with sales orders to improve customer service: Use multiple transfer sources. Create internal transfer requests according to current or anticipated changes to demand and supply that occur in Planning Central. Specify inventory min-max planning and back-to-back orders. You can also upload transfer requests from external sources through a spreadsheet. Configure transfer processing. Configure the business rules that orchestrate transfer through either a new transfer order document or a purchase order. Use a simplified transfer process. Use intraorganization, interorganization, or intercompany transfer processes through a new transfer order document that handles the physical movement of inventory between shipping and receiving organizations. You can now pick, ship, receive, deliver, or return items through the same transfer order document. 22

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