Order Management

Advanced Fulfillment Processes

SCM Cloud Implementation Workshop

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 Agenda

• Advanced supply chain fulfillment techniques

overview
• Supply Chain Orchestration Overview
• Key Setups in Supply Chain Orchestration

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Overview of Requirement

Functional Scope Key Features Requested

• Vision has implemented a full • Vision has a large customer base

suite of Oracle offerings and allows order capture through
including HCM, Financials, SCM various modes
• Vision uses various fulfillment

•
and CX Cloud.
Vision has complex
vision processes to increase the
customer satisfaction along with
requirements across process improved margins
areas and is requesting the Vision Corporation has a strong • Vision uses back to back, drop
implementation partner to help presence in US, UK and APAC shipments, internal material
them with support needed for regions with active presence in transfers, consigned inventory
successful implementation. other countries as well. and contract manufacturing
They have a diversified portfolio
techniques for some of the
of products like hardware, products it sells
software, computers and
accessories manufactured in
house, and procured through
suppliers as well.

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 Fulfillment Processes - Overview
Robust advanced fulfillment options seamlessly integrated across the Oracle Cloud with back to back and
drop shipments. Integrated end to end flows enabled cross product solutions with IMT, Consigned
Inventory and Contract Manufacturing
Drop Shipments
Back-to-Back Orders
Consigned
Buy Order Inventory
OEM
Buy/Make Ship
Supplier
Supplier / Customer
MFG Supplier Customer
Ship

Pay the
Ship supplier
Order Ship

OEM MFG request Customer Request Stock OEM

CM Product Warehouse X Warehouse Y

Consume consigned stock

Contract Manufacturing Internal Material Transfers

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 Back to Back Fulfillment
Back-to-back fulfillment is where supply is procured and then received at a warehouse only after an order
is placed. The supply is reserved against a sales order until shipping.

Booking of order launches

predefined process  Automated
selection of source
You Your system automatically creates of supply, internal
and reserves supply or external
 Reservation of
Customer places an supply until
order with you External Your Your fulfillment
Supplier Factory Warehouse  Automated, rule-
based response to
supply changes
Ships to your customer

Customer Fulfillment Warehouse

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 Drop Ship Flow
Drop ship is a flow where the seller relies on a supplier or contract manufacturer to build, store, and ship
each sales order to the customer. The retailer doesn't maintain an inventory of the goods that each sales
order references.

Booking of order launches

predefined Drop Ship process  Modify Drop Ship
process to align with
You your business needs
 Honor customer
Your system automatically request for specific
places an order with supplier supplier
Customer places an order  Jeopardy
with you management
 Works for both
standard and
configured items
Supplier ships directly to your
customer

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 Internal Material Transfer Flow
An internal material transfer is an automated or manual transfer request of materials within or between
organizations. Transfer orders transfer inventory for interorganization, intraorganization, and
intercompany flows. Transfer orders represent demand and supply in a single document.

Purchase  Unified flow for Intra-

Order
organization, Inter-
organization, and
Planning Intercompany transfers
Inventory
SO  Transfer Order serves as
a single document for
demand and supply sides
Orchestration
(Execution Rule) Transfer  Integrated fulfillment and
Order
receiving
Spreadsheet
Upload  Balance internal and
External demands

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 Consigned inventory flow
Consigned inventory refers to items that are in the possession of one party, but remain the property of
another party by mutual agreement.

Buyer Supplier
Consignment agreement between  Consignment agreement
buyer and supplier includes the terms of the
consignment arrangement
Consignment order sent to
 Buyer owns inventory once it
supplier is consumed
 Supplier is paid on
Consignment Inventory consigned inventory usage
received by buyer  Consumption advice used
for financial settlement
Consumption advice sent to  Payables provides ability to
supplier match consumption advice
to supplier invoice
Invoice sent to buyer  Supplier visibility to
consignment process
Payment sent to supplier through Supplier Portal

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 Contract Manufacturing flow
Contract manufacturing is a business process in which an organization, known as the original equipment
manufacturer (OEM), outsources manufacturing to another organization, known as the Contract
Manufacturer, to manufacture a specific part or a full product.

Automatically launch
You release plan or book SO to contract manufacturing
create supply process
 Fully integrated contract
manufacturing process
You  Make-to-stock or make to
Work Purchase Order order
Order  Complete visibility into your
partner’s operations
Manufacturing System  Plan and supply components
to Contract manufacturer
Customer places
order with you
 Ship directly from Contract
manufacturer

Contract
Customer
Manufacturer
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 Agenda

• Advanced supply chain fulfillment techniques overview

• Supply Chain Orchestration Overview
• Key Setups in Supply Chain Orchestration

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 Supply Chain Orchestration Overview
Supply chain orchestration provides a business process-based interface to execute and manage complex
supply-creation processes across multiple products.

 Receive supply requests from

multiple applications, such as
Planning Central, Inventory Min/Max
Centralized
Solution Planning, Order Management, and
Global Order Promising (GOP)
 Launch and manage complex
business processes
Executes &  Automate change management to
Monitors match supply to demand
 Observe a 360 degree view of the
supply-creation process
Exceptions  Create rules for business process
& Change
Management management
 Enable central control and
decentralized execution

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What is the difference between Supply and Order orchestration?

Supply Orchestration
Warehouse

Optimized to Orchestrates the

orchestrate the delivery of goods to
creation and delivery the end customer.

Order Orchestration
of supply to an Order Orchestration
internal warehouse. is always in response
May or may not be in to a Sales Order.
response to a Sales
Order. Customer

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Supply orchestration vs Order Orchestration Process Flow

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 How Supply Orchestration Works
Supply Orchestration uses orchestration processes and web services to create and manage supply.

Step Description
1. Send Request Other applications like Planning, OM, INV, FBDI
can send a request to create supply.
2. Transform and Transform the supply request to a supply order.
assign Run predefined rules or rules that you create like
Defaulting and enrichment rules, Document
creation rules.
3. Orchestrate The orchestration process contains steps that
supply order create supply and do fulfillment tasks. It does
Process planning, Change management and
Tracking.
4. Communicate The flow calls a web service and uses it to send
and receive messages to and from each fulfillment
system.
5. Fulfill The fulfillment system uses supply to create and
fulfill the item, like WO, PO, TO in Manufacturing,
Procurement or Inventory system.

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 Supply Chain Orchestration Architecture
The Oracle Fusion Supply Chain Orchestration application forms a link between the applications requesting
supply and those fulfilling supply and has various activities in the interim.

OBR Rules Orch

Process
Repository

Standard Execution
Planning
Contract Mfg Decompose Orchestrate Execute Systems
• Transform • Process Tasks • To execution
Inventory SCO • Enrich • Change systems • PO
Interface • Exc. Rule • Exception • From execution • WO
GOP Assign Proc • TO
B-to-B Supply •
OM • Reserve
B-to-B Demand

SCO Supply
Run “Process Supply Chain Order
Orchestration Interface” to
process interface data

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Supply Chain Orchestration Entities

Entities Supply Order: Contains all supply order lines created to fulfill a specific supply request.

Supply Order Line: Contains information about individual supply requests.

Supply Order Tracking Line: The tracking line monitors the process needed to fulfill a supply
request with a specific supply type

Supply Transfer Order Details: Contains information for transfer supply requests. Captures Transfer
Order execution document details from Fusion Inventory when the tracking line supply type is
Transfer.
Supply Buy Order Details: Contains information for buy supply requests. Captures Purchase Order
execution document details from Fusion Purchasing when the tracking line supply type is Buy.

Supply Make Order Details: Contains information for make supply requests. Captures Work Order
execution document details from Fusion Manufacturing when the tracking line supply type is Make.

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Supply Chain Orchestration – Change Management
• Prevent excess inventory build up by
matching supply to demand
• Reduce cost for handling exceptions by
automating change management
• Reduce errors associated with manual
changes

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 Agenda

• Advanced supply chain fulfillment techniques overview

• Supply Chain Orchestration Overview
• Key Setups in Supply Chain Orchestration

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 Supply Chain Orchestration – Setup Summary
Supply Chain Orchestration implementation provides a set of predefined, out-of-the-box supply-related
data. Optionally the tasks can be used to extend as required.

Setup Tasks Description

Manage Supply
Edit only the name of each predefined lookup that's enabled for extensibility
Orchestration Lookups
Manage Supply
Create attachment categories that meet your business requirements. The predefined
Orchestration Attachment
categories support the predefined business processes in Oracle Fusion SCM cloud
Categories
Manage Supply Order
Defaulting and Create rules that determine when to route a transfer order through Order Management
Enrichment Rules
Manage Supply Execution
Create supply execution rules that determine when to create a purchase order for a
Document
transfer order request. Supply orchestration uses transfer, by default
Creation Rules
Manage Custom Enterprise
Scheduler
If you do not need a user-defined schedule, you can omit this setup
Jobs for Supply Chain
Orchestration

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 Manage supply order defaulting and enrichment rules
Set up rules that manage your supply orders. If a supply order meets the rule criteria you set, then attributes
can be modified, and documents can be transformed.

Route TO through OM
Rules determine whether a transfer order is:
 Passed to the Inventory Management Cloud. This is the
default option
 Routed through the Cloud Order Management system
• An Order Management user gets visibility into
internal orders
• An Order Management user can prioritize between
internal and external orders.
 Setup is performed in the Visual Builder UI
 Rules can be based on any set of parameters: Suggested
practice is to use the Item and Org parameters.

Limitation:
Back-to-Back transfer orders cannot be routed through the
order management system.

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Manage supply order defaulting and enrichment rules – Use cases
1
Transfer
order
shipped
through Planning Create defaulting rules Sales order created,
OM recommendation for to route the TO through which can be shipped to
Transfer Order Order Management the destination org

Set the WO 2
status to
released
Create defaulting rules
If the supply document Work order available for
to set the WO status to
is Make (Work Order) subsequent operations
released

Set specific
3
attribute on
the supply
document Create defaulting rules to
Supply document Attribute updated on the
update attribute like supply document
created by SCO
Shipment priority as High

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 Manage supply execution document creation rules
Create a rule that determines the type of supply to transfer between inventory organizations. Specify the
business process and document type to use between organizations.

Notes

 Supply Orchestration uses a transfer order

between inventory organizations to create supply,
by default. Your legal or business requirements
might need a buy transaction. Set up a rule that
creates a purchase order instead of a transfer order
 Set up the rule at design time. Supply
Orchestration applies the rule at run time when it
creates supply
 Rules run automatically. Improve accuracy and
timeliness, and reduce cost because you don't
need to do it manually
 Extend your set up to accommodate change in
your business environment, such as business
growth, reorganization, merge, or acquisition.

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 Apply Supply Chain Orchestration rules for Transfer Orders
Transfer orders represent demand and supply in a single document. Transfer orders support interorganization,
intraorganization, and intercompany transfers. The transfer order serves as the orchestration document representing
demand and supply for an internal material transfer.

Manage Item Back-to-Back Planning

Quantity UI
Supply Request Create Document Service
Price & Tax (SFO)
Web Service (SCO)
Spreadsheet Min-Max
Requisition Lines
Upload Planning

TO/ PO
Transfer Manage Supply Order
Sources Enrichment Rules
Manage Execution
Document Creation
Inventory Transfer
Rules Purchase Order Order

Order Management

Shipping

Receiving Costing & Accounting

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Business Cases – SCO Rules
Requirement to
transfer material
between Atlanta and
Chicago
Defaulting and enrichment rule – route the Transfer
order through Order Management
Business Benefit –
View of internal
Customer = Atlanta
SO orders and external
Requesting Org Shipping Org Ship From = Chicago orders in the OM
Atlanta Chicago UI

OR
Transfer Request

Ship From : Chicago Business Benefit –

Ship To : Atlanta Supplier = Chicago Organization is a
PO separate profit
Ship To Location = Atlanta center

Document creation rule to create a PO instead of a

Transfer Order

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Appendix

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