JD Edwards EnterpriseOne Demand Scheduling Execution New Features and Functionality. An Oracle White Paper January 2004 (updated October 2005)
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1 JD Edwards EnterpriseOne Demand Scheduling Execution New Features and Functionality An Oracle White Paper January 2004 (updated October 2005)
2 JD Edwards EnterpriseOne Demand Scheduling Execution Overview... 3 Introduction... 3 Requirements Description... 3 Solution Overview... 4 Industries... 5 Demand Management... 5 CUM Management... 7 Net Schedules and Integration to Sales and Planning... 8 Packaging BOM... 9 Pack Records and Scanning... 9 ASN and Acknowledgements Other Capabilities Conclusion JD Edwards EnterpriseOne Demand Scheduling Execution Page 2
3 JD Edwards EnterpriseOne Demand Scheduling Execution This white paper explains the new features and functions contained in JD Edwards EnterpriseOne Demand Scheduling Execution 1.0. This new product provides a solution for the requirements of release accounting in a Tier 1 or Tier 2 automotive supplier. Fully integrated with the rest of JD Edwards EnterpriseOne, it provides important tools for maintaining compliance with customer requirements and reducing the amount of clerical activity required. OVERVIEW Oracle s JD Edwards EnterpriseOne Demand Scheduling Execution can reduce operating expenses by providing integrated and automated handling of demand and cumulative schedules, release shipping, and automotive advanced ship notices (ASNs). While specifically addressing the needs of the automotive industry, this functionality also applies to industries that have similar high volume shipments such as certain electronics and consumer product segments. INTRODUCTION The automotive industry has spent the last 20 years implementing one of the most sophisticated supply chain business models of any industry. A supply chain execution solution for this industry requires more functional capability than most other manufacturing industries. Suppliers need to handle high volume and very fast-paced supply chain demand passed to them by the original equipment manufacturers (OEMs). This demand is almost always passed to suppliers via Electronic Data Interchange (EDI). EDI in the automotive industry has little resemblance to EDI in other industries, because many automotive EDI transactions are not used in other industries. When automotive EDI does use the same transactions, the transactions are often used differently. Due to these differences, transactions cannot be simply mapped into applications like sales order entry. A large component of specialized logic is required to process the transaction, along with other contract-related data, to produce a sales order line that is compatible with an application suite like JD Edwards EnterpriseOne from Oracle. REQUIREMENTS DESCRIPTION The release accounting process as designed by automotive OEMs is designed to handle the communication of demand, contract status information, packing and scheduling requirements, shipment information, billing information and procedures, and all the EDI or data communication wrappers that go with this function. It also performs contract-tracking functions that are critical to the JD Edwards EnterpriseOne Demand Scheduling Execution Page 3
4 demand management and billing processes. It is designed to communicate demand to suppliers daily sometimes several times per day. This supply chain collaboration is unlike other industries in that the expectation is that the supplier will meet the schedule as transmitted by the OEM. There is no expectation on the part of the OEM that the supplier will return order promising information. There is no opportunity to use advanced planning in this supply chain collaboration model, other than to resolve capacity or material supply issues that would cause the supplier to miss the delivery demands of the OEM. The use of EDI is different from other industries because OEMs do not want to manage their supplier relationships by using discrete purchase orders. Suppliers must be able to receive demand schedules and forecasts transmitted from OEMs. A demand schedule is a direct representation of the need for parts to match the OEM s daily vehicle assembly schedule. Because these schedules change daily, in many cases, additional logic is required to determine how to apply changes to the schedule and whether the changes are allowable within the terms of the contract. There is also the need to reconcile what the supplier thinks they have shipped with what the OEM says they have received. In the automotive industry, the supply chain model is constantly being tweaked to improve efficiency. Usually these improvements are little more than changes in EDI transmission format or container label readability. Even though these changes are small, the frequency at which they occur can create large problems. The OEMs tend to make these changes with little warning to their suppliers but expect their suppliers to keep up with the OEM-mandated changes. The suppliers are not allowed to miss a shipment, regardless of OEM changes. The consequences of missing a shipment range from a one-time fine or a charge for every hour that the OEM line is delayed to a loss of a contract that could be worth tens of millions of dollars. Hence, an integrated release accounting package is absolutely critical to doing business with an OEM. This supply chain collaboration model is beginning to be accepted in other industries that handle very high volume shipments, like electronics and consumer products. Solution Overview JD Edwards EnterpriseOne Demand Scheduling Execution is an important new solution from Oracle for suppliers who need to conform to the automotive release accounting supply chain model. It builds on existing EnterpriseOne forecasting, sales order, shipping, and EDI capabilities to provide compatibility with OEM standards. It also provides a number of features that assist contract management, reduce clerical activity, and reduce costly errors. Though there are differences between North American, European, and Asian standards for the release accounting model, the general approach is similar. This JD Edwards EnterpriseOne Demand Scheduling Execution Page 4
5 similarity has allowed the capability from the outset to address worldwide requirements to be designed with one set of code. The EnterpriseOne Demand Scheduling Execution solution adds enhancements to EnterpriseOne s Sales Orders, Requirements Planning, Warehouse Management, Transportation Management, and Billing modules. It also adds a new module, Demand Scheduling (system code 40R), which provides contract management capabilities and acts as a buffer between the system 47 EDI tables and Sales Orders. Demand Scheduling Execution was release in September Figure 1: An overview of how the new and enhanced capabilities fit into the existing JD Edwards EnterpriseOne Financial Management and JD Edwards EnterpriseOne Supply Chain Management 8.9 products. INDUSTRIES Though EnterpriseOne Demand Scheduling Execution is a requirement for most automotive suppliers, it also provides solutions for other industries. Industries that have long-term contracts to supply an item to a customer are beginning to adopt this model. In particular, suppliers of white goods manufacturers, suppliers of food and beverage containers, and some electronic component suppliers are already required to accommodate this business model. Demand Management After mapping into the system 47 tables, the transactions from the OEM are turned into meaningful demand records and are written to the Demand Scheduling tables. This process turns cumulative schedule numbers into net schedules. Ship-to address, packaging, item, and engineering revision are all extracted for later use. Each demand record is identified as a firm or planned requirement. This process can be set to run as completely automated, reducing the cost of administering customer schedules. At the same time, tolerances and alerts will quickly bring the critical issues to light, helping you maintain reliable deliveries. JD Edwards EnterpriseOne Demand Scheduling Execution Page 5
6 Features for demand management include: Requirement-bearing transactions. Firm and plan requirements. Conversion of CUM (cumulative schedules) to net quantities. Demand data by Sold-to, Ship-to, and Item. Demand records that include time of day. Current and historical schedules. Removal of old demand. Demand addresses and contacts. Packaging information. Calculation of net variance. Comparison of new and old orders and forecasts, use of tolerances and alerts. Figure 2: A window in JD Edwards EnterpriseOne Demand Detail Revision. JD Edwards EnterpriseOne Demand Scheduling Execution Page 6
7 Figure 3: A window in JD Edwards EnterpriseOne Demand Rule Revision. CUM Management Cumulative numbers, or CUMs, are used to track how much of the total contract has been completed by the supplier. The customer transmits a CUM-received number to the supplier with each demand update. Demand Scheduling Execution tracks this number so that the supplier always knows how much product the customer has received. Subtracted from the CUM-shipped quantity, the result can tell the user how much product is in transit to the customer, reducing the clerical activity required to track shipments. CUM management also tracks the quantity of raw material purchased for which the customer guarantees payment. CUM management capabilities include the ability to count up, as required by the automotive industry, or down from a contract quantity for other industries. This capability provides nonautomotive industries with a contract-tracking solution that ensures that the supplier stays within the terms of the contract. As the system decrements the CUM-shipped quantity from the set contract total, it keeps track of exactly how much product is left to ship on the contract, reducing the risk and cost of overshipping. Features for CUM management include: CUM tracked: CUM shipped. CUM received. CUM required prior. Fabrication (high) CUM. Material (high) CUM. JD Edwards EnterpriseOne Demand Scheduling Execution Page 7
8 CUM tracking by: Sold-to Item Ship-to Purchase Order number Rev level Model year CUM history provided. Calculation of in-transit quantities. CUM rollback. CUM reconciliation. Comparison of customer and supplier CUMs. Information to research differences provided. Net Schedules and Integration to Sales and Planning The customer s pack-size preference can be set up by contract, which provides automated pack-size rounding calculations as part of generating a net schedule. When deliveries are rounded up to a pack size, shipping will start to deliver ahead of the schedule. Demand Scheduling Execution automatically corrects the shipment quantity when the amount ahead of schedule reaches a full pack size, which reduces the risk of overshipping and the need to track constantly if items are being shipped too far ahead of schedule. The new demand is compared with existing demand to calculate a net variance. If the variance exceeds a user-defined tolerance, an alert can be generated to a specific user, providing an advanced warning of a potential risk of not meeting the customer s schedule. After all these calculations are completed, the system will determine the next shipment quantity to write as a sales order line. If a sales order line already exists for that contract on the same day and time, the line is changed. All these functions can be set to run automatically on receipt of demand record. Features for net schedules and integration to sales and planning include: Standard pack calculations. Standard pack rounding. Ahead/behind calculations. Determination of the next shipment quantity. Identify releases with net quantity changes outside user-defined tolerances. Balance out code. JD Edwards EnterpriseOne Demand Scheduling Execution Page 8
9 Model year change over. Packaging BOM A packaging bill of materials (BOM) can be set up to define how the customer wants the shipment packed. At shipping time, the system will develop a list of carton recommendations based on the container BOM and pack rules. This list can be used later to eliminate the need to manually figure out how to pack the shipment. At the same time, the container information forms the basis of the variable data that is used to generate the ASN and acts as the basis for storing the carton labels when they are scanned. Features for packaging BOMs include: Container bill of materials: Define the shipping carton pieces. Define pieces in container and carton codes. Can define multiple layers. Create cartons for each unique configuration. Container recommendations: Calculated on shipment quantities. Created by using standard pack rules. Provisionpackaging information for ASN. Pack Records and Scanning At the time the pallet is staged, the labels can be scanned to add the detailed carton information to the database. Both individual carton and pallet master labels can be generated and scanned. At this time, expendable containers can be assigned to the shipment and will be recorded in the database to allow for charges to be automatically generated to the customer. If the customer requires the scan-to-verify process, the master pallet label can be scanned to comply with this requirement. A thirdparty partner supplies hardware and software for barcode printing and scanning. Features for pack records and scanning include: Provision for printing and scanning of labels. Pallet staging. Facilitation of the smart label concept. Scanning of labels will: Store scanned master and carton labels. Assign label numbers to shipment. JD Edwards EnterpriseOne Demand Scheduling Execution Page 9
10 Create carton detail. Provision for expendable containers. Label verification scan to verify. Figure 4: Flow diagram of shipping process. Steps in white can be automatically executed by the system. ASN and Acknowledgements The ASN has been enhanced to include the fields that are required to capture and transmit all the detail carton information captured during the scanning process, as well as shipment ID number and expendable container information. The ASN can be set to transmit automatically so that this important step is not missed. Functional acknowledgement and application advice transactions can be received and can trigger user-defined workflow to ensure that errors in transmission are quickly corrected. Features for ASM and acknowledgements include: ASN Information: SID number. Carton and packaging information. Expendable containers. Label numbers. Automatic launch of ASN. ASN tracking with workflow. Wait on acknowledgement. Acknowledgements and Application Advices can be received for: JD Edwards EnterpriseOne Demand Scheduling Execution Page 10
11 Invoice. ASN. Tracks status codes for: Accepted. Rejected. Accepted with errors. Figure 5: The ASN processing flow Figure 6: Ship notice detail revisions, which contain information used to generate the ASN. JD Edwards EnterpriseOne Demand Scheduling Execution Page 11
12 Other Capabilities In addition to the features mentioned previously, JD Edwards EnterpriseOne Demand Scheduling Execution also provides the following features: Record shipment seal numbers. Ability to handle authorized excess transportation charges. Automotive bill of lading. Performance of shipment consolidation by date and time. North American EDI Transactions/Messages: 830/DELFOR Material Release/Delivery Schedule/Forecast. 862/DELJIT Daily Ship Schedule/Delivery Just in Time. 866/DELJIT Production Sequence/Delivery Just in Time. 856/DESADV Advance Ship Notice/Dispatch Advice. 850/ORDERS Purchase Order. 824/APERAK Application Advice/Error and Ack. 810/INVOIC Invoice. 997/CONTRL Functional Acknowledgement/Control. CONCLUSION JD Edwards EnterpriseOne Demand Scheduling Execution provides a powerful new solution to automate much of the contract management and customer service processes for automotive suppliers. In doing so, it integrates EDI and bar code into the financial and supply chain management products in a way that reduces costs by eliminating clerical activity. Incoming EDI transactions automatically update sales order lines and planning. Inventory commitments are updated immediately, and much of the shipping process is streamlined because the system provides recommendations for packing and builds shipment details from the bar-code scanning process. This process helps ensure that the entire operation is working with one set of the most current information. The system's compelling capability is the reduction of effort and the improvement in accuracy that can be achieved through the use of EnterpriseOne Demand Scheduling Execution. From the receipt of EDI schedules through the automatic transmission of the ASN and handling of acknowledgements, the focus is to reduce effort and improve data accuracy. JD Edwards EnterpriseOne Demand Scheduling Execution Page 12
13 JD Edwards EnterpriseOne Demand Scheduling Execution: New Features and Functionality January 2004 Updated October 2005 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA U.S.A. Worldwide Inquiries: Phone: Fax: oracle.com Copyright 2004, 2005, Oracle. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle, JD Edwards, PeopleSoft, and Retek are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.
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