SCM Modules in Oracle Cloud Applications were introduced as part of Oracle’s Fusion Applications in 2011, alongside other modules like CRM, HCM, and Financials that gained notable success. As the cloud market expands, Oracle Cloud is steadily gaining traction in the supply chain management sector. Given the complex nature of supply chains, Oracle continues to enhance its features and capabilities to address evolving client needs.

Oracle Supply Chain Management Cloud includes several modules. To make the concepts easier to grasp, key high-level differences between EBS and Cloud Applications are also highlighted where relevant. 

1. Product Management

Oracle offers the Product Information Management module to handle data related to products. Its Product Hub solution serves as a centralised platform for both Master Data Management and Product Information Management. This hub integrates smoothly with various modules within Oracle ERP Cloud. The solution is now well-developed and robust, offering features that closely mirror those available in EBS. 

2. Order Management Cloud

Oracle first introduced Order Management under the name “Order Orchestration,” where order entry was possible only through CPQ Cloud (originally from BigMachines, later acquired by Oracle). With Cloud Applications Release 11, Oracle released a native Order Management module that allows sales orders to be created directly within the application. Unlike the E-Business Suite version, this module has been completely redesigned. It’s a technically advanced solution, built entirely on Oracle Fusion Middleware (FMW), specifically using SOA architecture. This SOA foundation enables seamless integration with external systems through web services. 

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Distributed Order Orchestration (DOO) serves as the core component of Oracle Order Management Cloud. It manages the orchestration of sales orders and monitors fulfilment lines throughout their lifecycle. DOO also supports integration with external systems, enabling order capture, fulfilment, or both through third-party platforms. 

3. Pricing

In Oracle Fusion Applications, the pricing module has been redesigned from the ground up. It leverages modern marketing strategies to determine item pricing, factoring in customer profiles and segmentation. This method allows businesses to design pricing strategies that effectively target specific customer segments. Compared to EBS, this module introduces a fresh structure. Common elements like order qualifiers and modifiers are now managed using a different methodology. The pricing logic operates through matrices, algorithms, and service mappings. These algorithms can be customised with flexfields to dynamically derive pricing. 

4. Manufacturing

Manufacturing was introduced later within the Oracle SCM Cloud suite, becoming available with Release 11. This module supports the management of plants, work areas, work centres, work definitions, and work orders. Currently, it is designed specifically for discrete manufacturing processes, offering tools for execution, monitoring, and control. However, as of now, Oracle has not included functionality for process manufacturing within this module. 

5. Inventory and Costing

The Inventory module in Oracle Cloud manages material transactions within warehouses and includes many features similar to those found in EBS. From the initial cloud releases, it has supported capabilities such as organisation transfers, move orders, physical inventory, and cycle counting. With Release 11, the module saw significant functional enhancements, including advanced fulfilment methods like Internal Material Transfers (comparable to IR-ISO in EBS), Back-to-Back processing, and Consigned Inventory flows. However, inventory replenishment is currently limited to Min-Max planning within this module. 

The Costing module in Oracle Cloud has been completely redesigned compared to EBS. Unlike earlier systems, costs are no longer directly entered alongside inventory transactions. Instead, Oracle has introduced the concepts of Cost Organisations and Cost Books to manage various costing scenarios. Both Average and Standard Costing methods are supported in the latest release. The module also offers features for managing Cost Accounting and Landed Costs. 

6. Global Order Promising

Global Order Promising allows delivery promises to be made by evaluating supply availability from Inventory, Manufacturing (through work orders), and Procurement (from suppliers). It offers tools for availability checks, what-if simulations, and includes advanced features like Capable-to-Promise (CTP) and Profitable-to-Promise (PTP) to evaluate different fulfilment options. The GOP relies on ATP and sourcing rules to manage scheduling. While it requires a separate license from Order Management, it is closely integrated with it, allowing item availability to be verified directly during order entry. 

7. Planning

Supply Chain Planning, also referred to as Value Chain Planning, helps manage demand forecasts and align supply-side activities, including materials and resource planning. It includes cloud-based services like Demand Management, Planning Central, Sales and Operations Planning, and Supply Planning. Planning Central covers essential planning capabilities, while Demand and Supply Planning offer more advanced tools for balancing supply and demand efficiently. 

Conclusion

SCM Modules in Oracle Cloud Applications offer a modern, integrated suite of tools tailored to address the complexities of today’s supply chains. With continuous enhancements and a shift from traditional EBS structures, these cloud-based solutions provide businesses with the agility, visibility, and control needed to manage supply chain operations effectively. As Oracle continues to evolve its SCM capabilities, organisations can look forward to even more innovation and streamlined processes in the cloud.