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Introduction to Supply Chain Management Modules in Oracle Cloud Applications:

 

Oracle has come up with Fusion Applications in 2011. Modules like CRM, HCM and Financials have proved successful. With blooming cloud market, Oracle Cloud is making a mark in the Supply Chain Management applications. Considering the complexity of Supply Chains, Oracle is coming up with improved functionality and features to cater the Client requirements.

 

Oracle Supply Chain Management Cloud has the following modules. For easy understanding high level differences between EBS and Cloud Apps are provided wherever necessary.

 

1. Product Management:

  

  Oracle comes up with Product Information Management module to handle product information. Product Hub offering is the product solution for Master Data management and Product Information Management. Product Hub is pre-integrated with other Oracle ERP cloud modules. The product is mature and feature-rich. Most of the EBS functionality is available in the Cloud today.

 

2. Order Management Cloud:

 

Oracle initially launched Order Management in the name of Order Orchestration, with Order Entry only through CPQ (product acquired by Oracle from BigMachines) cloud. From Release 11 of Cloud Apps, Order Management is launched, in which Sales Orders can be created within the native Cloud application itself. Order Management is completely re-architectured when compared to E-Business Suite. The new product is highly technical in terms of features and is completely built on FMW technology. (Oracle Fusion SOA Middleware). Having built on SOA, Fusion Order Management (FOM) has the ability to be integrated with any system via web services.

 

Distributed Order Orchestration (DOO) is the heart of Order Management Cloud, which orchestrates the sales orders and tracks the fulfillment lines till its completion. DOO can be integrated with third party systems for order capture or order fulfillment or both.

 

3. Pricing:

 

Pricing in Fusion Apps is also re-architectured. The new modules uses the latest Marketing principles to price an item in the system. The principles are defined based on the Customer Profile and the Segmentation. Pricing product provides the flexibility to create strategies to handle the customer segments in an efficient way. In comparison to EBS, the product looks new. The most heard features like Order qualifiers and modifiers are handled in a completely different way. Pricing runs on Matrices, Algorithm and the Service Mapping. The algorithm can be configured with custom fields (Flexfields) and derive the price.

 

4. Manufacturing:

 

Manufacturing is a late entry into the SCM applications stack. Released in R11, the manufacturing module handles Plant, Work Areas and Work Centers, Work definitions and Work Orders. However, the features are available only for managing, execution and monitoring of Discrete manufacturing. As of date, Oracle does not have any functionality to support Process Manufacturing.

 

5. Inventory and Costing:

 

Inventory management handles material transactions with in the warehouse. Inventory module has most of the features common in comparison to EBS. Features like Org transfers, move orders, physical inventory and cycle counting are present from the initial release of the Cloud Apps. The product gained strength in functionality from REL 11 with the introduction of advanced fulfillment techniques like Internal Material Transfers ( IR-ISO in EBS), Back-to-Back, Consigned Inventory flows. However, in this module inventory replenishment is restricted to only Min-Max planning so far.

 

Costing is a module that is re-architectured in comparison with EBS. The concept of entering costs next to inventory transactions can no more be seen. Oracle costing introduces the concept of Cost Organization and Cost books to handle cost scenarios. Average and Standard costing are supported till the latest release. Costing provides Cost Accounting and Landed Cost Management features as of latest release.

 

6. Global Order Promising:

 

GOP promises delivery of customers based on supplies spanning across modules like Inventory, Manufacturing (work orders) and Procurement (suppliers). It provides features that help customers with what-if analysis, check availability. Also offers, Capable to promise , Profitable to promise features to compare the promising methods. GOP uses the ATP and sourcing rules needed for handling the scheduling requests. Though offered as an additional license to OM, GOP is tightly integrated with the former module, making it easy to check the availability of the items during Order Entry itself.

 

7. Planning:

 

Supply Chain Planning (Value Chain Planning) is product solution to handle demand and supplies by forecasting demand and determining resource activities, material requirements. Planning offers Demand Management, Planning Central, Sales and Operations Planning and Supply Planning Cloud services. While Planning central provides basic features Demand and Supply Planning provides advanced functionality of supply-demand.

 

In the coming articles, let's get into more details discussing the features in each product.

 

Thank you for watching out this space.


Naveen Kumar

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