oracle order management cloud · pdf file3 overview this guide describes the new and improved...

Oracle Order Management Cloud

What’s New in Release 10

July 2015

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TABLE OF CONTENTS

OVERVIEW ............................................................................................................................................................. 3

GIve Us Feedback ............................................................................................................................................................... 3

RELEASE FEATURE SUMMARY ................................................................................................................................ 4

ORDER MANAGEMENT CLOUD SERVICE ................................................................................................................. 5

Oracle CPQ Cloud provides a complete Quote –to- Cash Flow .......................................................................................... 5

ORDER MANAGEMENT CLOUD .............................................................................................................................. 7

Monitor Order Progress And Manage Execeptions ........................................................................................................... 7 Proactively Manage Potential Problem Orders .................................................................................................................. 8 Automate Change Order Processing .................................................................................................................................. 9 Enrich Orders For Fulfillment ........................................................................................................................................... 10 Customize Order Processing to Meet Your Requirements .............................................................................................. 10 Recover From Order Processing Errors ............................................................................................................................ 11

GLOBAL ORDER PROMISING CLOUD SERVICE ....................................................................................................... 13

Calculate accurate promise dates in real time ................................................................................................................. 13 Allocate limited supply to the correct customers ............................................................................................................ 18 Refine promising strategies to improve results ............................................................................................................... 20 Check Availability to Fix problems That might occur during order fulfillment ................................................................. 22 Manage Global Order Promising in the Cloud ................................................................................................................. 25

REVISION HISTORY ............................................................................................................................................... 26

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OVERVIEW

This guide describes the new and improved functionality in Oracle Order Management Cloud, Release 10. Each section includes a brief description of the feature, the steps that you must take to enable and begin using the feature, the tips or considerations that you must keep in mind, and the resources that are available to help you.

GIVE US FEEDBACK

We welcome your comments and suggestions to improve the content. Please send feedback to [email protected].

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RELEASE FEATURE SUMMARY

Some of the new Release 10 features are automatically available to users after the upgrade and some require action from the user, the company administrator, or Oracle.

The table below offers a quick view of the actions required to enable each of the Release 10 features.

Action Required to Enable Feature

Feature Automatically

Available

End User Action

Required

Administrator Action

Required

Oracle Service Request Required

Order Management Cloud Service

Use Cloud Fulfillment with Oracle CPQ Cloud for the Quote to Cash Flow

Order Management Cloud Monitor Order Progress and Manage Exceptions Proactively Manage Potential Problem Orders Automate Processing of Change Orders Enrich Orders for Fulfillment Customize Order Processing to Meet Your Requirements

Recover from Order Processing Errors Global Order Promising Cloud

Calculate Accurate Promise Dates in Real Time Allocate Limited Supply to the Correct Customers

Refine Promising Strategies to Improve Results Use a Dynamic User Interface to Fix Fulfillment Problems

Manage Global Order Promising in the Cloud

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ORDER MANAGEMENT CLOUD SERVICE

ORACLE CPQ CLOUD PROVIDES A COMPLETE QUOTE-TO-CASH FLOW

By using the predefined integration that exists between Oracle Configure, Price, and Quote (CPQ) Cloud Service, Oracle Order Management Cloud Service, Oracle Global Order Promising Cloud Service, and Oracle ERP (Finance) Cloud Service, you can support the complete quote -to -cash business flow in the cloud. Starting with Release 10, each source order must originate in the Oracle CPQ Cloud Service. It is our intent to expand this functionality to other order sources in later releases.

This integration supports the following flows:

• Convert an Oracle CPQ Cloud Service quote to an order. • Fulfill and bill an order directly through Oracle Inventory Management Cloud Service and Oracle

Enterprise Resource Planning (ERP) Cloud Service. • Receive status updates for each order. • Process kits. • Process multilevel, pick to order (PTO) configurations. • Process new order types. • Revise and cancel order types. • Process recurring billing charges, including status changes and real-time updates that occur in

financial systems. • Schedule orders for delivery.

Oracle CPQ Cloud can send a quote to Order Management Cloud that includes standard items, kits, and PTO configurations. Order Management Cloud can create an order for this quote, reply with a confirmation, and then orchestrate fulfillment tasks for this order, such as scheduling, reserving, shipping, and billing. It also updates the fulfillment line status while it does this work, and then sends it periodically to Oracle CPQ Cloud.

If Order Management Cloud receives an order that includes a recurring fee, then Receivables creates a recurring billing invoice for these lines. A single order might contain lines that include one-time charges, and other lines that include recurring charges.

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Fig.1: Order Management Work Area That Monitors Orders

STEPS TO ENABLE

No steps are required to enable this enhancement.

Key Resources

Oracle Supply Chain Cloud Help Center: Implementing Order Management

Return to Release Feature Summary

http://docs.oracle.com/cloud/latest/scmcs_gs/index.html

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ORDER MANAGEMENT CLOUD

Order Management Cloud improves the order to cash process. It includes predefined integrations, centrally managed orchestration policies, global availability monitoring, and fulfillment monitoring that can help increase customer satisfaction and order profitability.

MONITOR ORDER PROGRESS AND MANAGE EXCEPTIONS

Order Management Cloud provides a single a single work area that you can use to view the progress of an order, order status, and exceptions that might cause problems in fulfilling an order. This work area displays a summary of statuses and exceptions according to customer, product, or supplier, and it allows you to drill into the data to view more details. Jeopardy alerts proactively identify orders that might not meet fulfillment dates. These alerts allow you to identify issues in time to take corrective action. Analytic information provides the data that you require to make informed choices.

You can use this work area to monitor the progress of each order:

• View order statuses and exception conditions. • Filter orders according to customer, product, fulfillment location, supplier, status, or age. • Use a Gantt chart that includes timelines to monitor processes. • Fix exceptions one or more lines at a time. • Use embedded intelligence to resolve exceptions.

Fig. 2: Order Management Work Area That Monitors Order Statuses and Exceptions

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STEPS TO ENABLE


KEY RESOURCES

• Oracle Supply Chain Cloud Help Center: Implementing Order Management


PROACTIVELY MANAGE POTENTIAL PROBLEM ORDERS

You can monitor each order against a fulfillment date, predict whether or not the order is on schedule to meet the fulfillment date and, if not, take corrective action before the order misses the fulfillment date. You can locate the problem, identify the root cause, and then adjust order fulfillment parameters to fix the problem. You can also modify dates and attributes that affect process planning.

Fig. 3: Page That Allows You to View Orchestration Processes and Locate Problem Orders

STEPS TO ENABLE



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KEY RESOURCES



AUTOMATE CHANGE ORDER PROCESSING

Change order management allows you to define compensation patterns and roll-back steps so that you can consistently control change order processing. You can adjust the fulfillment processing steps that the changes in an order affect. You can define rules that specify how to automatically handle changes so that a user is not required to intervene in every change that occurs.

You can use change order management to do the following work:

• Specify the attributes that affect a change order and that automatically recognize a change order.

• Coordinate change order tasks with external fulfillment systems. • Specify the tasks in the process that the change order affects. • Cancel orders, add lines to orders, and change order quantity.

Fig. 4: Page That Allows You to Manage Change Orders

STEPS TO ENABLE


KEY RESOURCES




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ENRICH ORDERS FOR FULFILLMENT

You can decompose an incoming sales order and add information to it that improves fulfillment. For example, you can add or modify attributes or add more products so that Order Management Cloud can efficiently fulfill the order. You can use a rule editor to define the rules that specify how to decompose an order, how to modify order attributes, and how to define order lines.

You can do the following work to customize how Order Management Cloud transforms a sales order into a fulfillment order:

• Define product transformation rules according to product structure. • Use fulfillment item relationships to define product transformation rules. • Define product transformation business rules, such as: product to product, product to

attribute, transactional attribute to product, attribute to attribute, context to product, or context to attribute.

STEPS TO ENABLE


KEY RESOURCES



CUSTOMIZE ORDER PROCESSING TO MEET YOUR REQUIREMENTS

You can define the orchestration process steps that are required to fulfill an order. You can create a new process, or you can modify a standard fulfillment process that comes seeded with OM that matches your business requirements. The process definitions allow you to define the following types of order processing that your organization requires:

• Use standard, conditional, parallel, or interrelated flows for order lines • Define change order rules that automatically modify order fulfillment • Define rules that calculate the order completion date according to the requested date • Define common statuses to use across the quote-to-cash process

As part of your order processing definition, you can add more information to plan processes, calculate lead times, modify order compensation steps, and so on. You can view the process definition as a flow diagram in a development environment, and then deploy it to a production environment.


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Fig. 5: Example of an Orchestration Process Definition

STEPS TO ENABLE


KEY RESOURCES



RECOVER FROM ORDER PROCESSING ERRORS

You can use a central work area to recover orders that include error conditions or exception statuses. You can filter the orders according to processing errors, investigate the root cause of the errors, and then correct them to resolve the errors.

You can do the following work to recover from an error:

• Query and examine a subset of orders according to criteria that you specify. • Take action on a single order, or on multiple orders at the same time. • Schedule a background process that automatically recovers errors according to parameters

and filters that you define.


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Fig. 6: Page That You Can Use to Recover Orders That Are in Error

STEPS TO ENABLE


KEY RESOURCES




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GLOBAL ORDER PROMISING CLOUD SERVICE

Oracle Global Order Promising Cloud (GOP) provides order promising functionality for orders that Oracle Order Management Cloud (OM) manages. GOP can promise orders automatically in real-time, or you can use the GOP user interface to manually manage promising. You can create rules in GOP that determine different types of order promising behavior for different items, organizations, customers, or regions. You can specify different promising strategies, from simple order promising according to lead time, to more sophisticated order promising according to supply searches. GOP can concurrently support these strategies. GOP uses a sophisticated architecture that is available 24 hours a day, and seven days a week. This architecture makes sure GOP can provide promising results quickly and continuously throughout the order promising process.

You can use the GOP user interface to manually promise a single order or a batch of orders in the most optimal way. The Check Availability page provides a quick view into fulfillment problems and metrics for a single order or for a batch of orders. You can also use this page to simulate a what-if condition. You can modify order attributes and their priorities, and then evaluate the potential promising results. Analytics can help you to determine how the latest promising results compare to the existing results. GOP can create multiple availability options for an individual order, and then choose the most suitable option according to cost and benefit tradeoffs. Contextual reports allow you to view the latest availability information, where you can drill into supply for individual orders and view the order promising rules that determine promising results for an order.

CALCULATE ACCURATE PROMISE DATES IN REAL TIME

You can use a data collection process in different Fusion modules to set up the static data that Order Promising requires for various items, such as customers or suppliers. This process also collects transaction data from Fusion, such as on-hand inventory and purchase orders that are the supply inputs to GOP. To achieve accurate order promising, it is critical that GOP promising use the most current supply chain data that is available. Enhancements in Release 10 make it easier to provide this data to GOP.

The data collection process collects the required data, and then GOP uses sourcing rules to specify the locations in the supply chain where GOP searches for the supply that it uses to promise an order. It also uses available to promise (ATP) rules to specify how GOP searches for supply in an organization.

You can use the Manage Sourcing Rules task to set up sourcing rules. Global sourcing rules define the organizations that GOP can use to fulfill an order, including the organization to use when shipping a product to a customer. For example, the following global sourcing rule specifies to fulfill orders from organizations D1 and D2.

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Example of a Global Sourcing Rule

You can use an assignment set to define and assign multiple global sourcing rules to different hierarchical levels in an enterprise. For example, assume you configure GOP to fulfill the orders for an item from organization D1 first, and then from D2 second, except one of your customers requires that GOP fulfill orders from D2 first, and then from D1. The following rules demonstrate how you can create and assign two different sourcing rules that meet this requirement. One rule fulfills product only according to the item, and another rule fulfills product according to the item and the customer. For example, these rules configure GOP to fulfill orders for At Home Solutions Inc from D2 first, but to use D1 first for all other customers.

Example of Assigning of Sourcing Rules at Different Assignment Levels

GOP uses an assignment hierarchy that allows you to create sourcing assignments at multiple levels. It also allows you to override them at the following, more detailed levels:

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• Global • Region • Demand Class • Customer • Customer / customer site • Category • Category - Region • Item • Category – Demand Class • Category- Customer • Category - Customer / customer site • Item-Region • Item-Demand Class • Item – Customer • Item - Customer / customer site

GOP uses the sourcing rule that resides at the most detailed level when it determines the organizations that it uses to fulfill an order.

USE ATP RULES TO SPECIFY FACTORS THAT GOP USES WHEN IT SCHEDULES ORDERS

An ATP rule can use one of the following promising modes. Each mode specifies the factors that GOP uses when it schedules an order.

Mode Description

Infinite Availability GOP assumes that the supply for an item is infinite. It uses only calendar constraints when it schedules an order, such as the calendars for shipping, receiving, and the carrier.

It is recommended that you use infinite availability with items that typically do not include supply problems, and that are almost always available in stock.

Lead Time GOP uses the calendars and lead-times for the item when it schedules an order. It does not use the current supply chain availability. For example:

• If the Requested Date for an order occurs after the item lead time, then GOP promises that the delivery for the order will occur on time.

• If the requested date occurs before the item lead time occurs, then GOP delays the order and promises it after the lead time of the item occurs. Fusion Product Information Management

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Mode Description specifies different lead times and collects and uses them in GOP.

It is recommended that you use lead time with an item that is made to order and that uses reliable suppliers, or when an item is procured from suppliers who possess reliable lead times.

Supply Chain Availability GOP uses the supply that is currently available in the supply chain when it schedules an order.

It is recommended that you use supply chain availability in the following situations:

• With fast moving items

• When items are in scarce supply when compared to demand

• When items include shared or constrained components

• When you must track supply availability

This mode requires the data collection process to collect transaction data and load it into GOP. Examples of transaction data include on-hand data, purchase order data, and so on.

The following page includes a rule that uses Supply Chain Availability.

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Example of an ATP Rule

You can create and assign multiple ATP rules to different hierarchical levels in the ATP Rule Assignment tab. This tab allows you to associate a large number of items with a single ATP rule, and then use another ATP rule to define different behavior for specific items. GOP will choose the most specific ATP rule when it determines how to search for the supply that an organization contains.

Example of a Hierarchical Assignment of an ATP Rule

STEPS TO ENABLE

Do the following:

1. Use the data collection process to set up and collect the data that GOP requires to promise orders.

Data collection gets this information from Fusion Inventory, Shipping, and other Fusion modules. You must do this collection before you configure GOP rules and use GOP.

2. Use the following setup tasks to set up sourcing and ATP rules:

• Manage ATP Rules

• Manage Sourcing Rules

• Manage Assignment Sets

TIPS AND CONSIDERATIONS

Use the following guidelines when you set up sourcing and ATP rules:

• GOP only promises items that an ATP rule assigns. You must make sure that an ATP rule assigns every item.

• To minimize the data setup work that you must perform, you can use categories or organizations to assign items.

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• Make sure all the sourcing rule assignments that Order Promising requires reside in a single assignment set. Make sure the Order Promising Sourcing Assignment Set profile also specifies this set.

• Make sure you restart GOP so that any changes you make to sourcing rules or ATP rules are active and ready for use.

KEY RESOURCES

• Oracle Value Chain Execution Cloud Help Center: Using Order Promising • Oracle Value Chain Execution Cloud Help Center: Implementing Order Management

ALLOCATE LIMITED SUPPLY TO THE CORRECT CUSTOMERS

GOP commits supply for each order when it processes the order according to a first in first out (FIFO) sequence. To override this FIFO sequence, you can use a demand class to reserve some supply for orders that come from important customers or from a demand channel, such as online orders. You can use a demand class to represent a customer, a group of customers, demand channels, sales organizations, and so on. You can use the Manage Planning Allocation Rules setup task to create the planning allocation rules that specify how to allocate supply to each demand class.

You can use a demand class to promise supply only to orders that the same demand class references. You can define rules in Fusion Order Management Cloud that set the Demand Class attribute on each order. For example, the following allocation rule uses a demand class named HighPriorityCust that allocates 40% of the supply of an item to this demand class.



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Example of an Allocation Rule

In this example, GOP will allocate 40% of the supply in each week to the HighPriorityCust demand class. Only orders that include a value of HighPriorityCust in their Demand Class attribute can access the supply that this rule allocates to this demand class.

Example of the Demand Class Attribute on a Fulfillment Line

You can use the Allocation Assignment tab to hierarchically assign an allocation rule to a category, item, or organization. You can specify each location according to percentage, ratio, or absolute value. You can specify to override an allocation rule. If no supply remains for the demand class that an order references, then you can modify the value of the Demand Class attribute to some another class that does still possess supply. You can do this override in order management, or you can use Check Availability in GOP.

STEPS TO ENABLE

You must do the following work to allocate supply:

1. Define a demand class outside of Oracle Fusion, and then use a data collection process to load it into GOP.

2. Set the Demand Class attribute for each order.

3. Create or modify allocation rules.

4. Restart GOP. This restart makes sure the modifications that you make to allocation rules are available in GOP.


Use the following guidelines when you set up allocation rules:

• If no supply exists, or if only a low amount of supply exists for a demand class, then modify the Demand Class attribute of an order so that it references a demand class that possesses adequate supply. You can use order management or Check Availability in GOP to modify this attribute.

• GOP allocates supply for the orders that order management already scheduled from the same demand class. GOP does this work every time it starts. So, only the remaining allocation is available for new, incoming orders.

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• GOP aggregates supply for each item-organization according to one week, and then allocates it to demand classes in weekly increments. Each week starts on Monday.

REFINE PROMISING STRATEGIES TO IMPROVE RESULTS

Each ATP rule includes attributes that refine order promising behavior and that improve promising results. You can specify the supply types that GOP must consider when it promises orders. For example, if your supplier schedules are:

• Reliable, then you can enable Purchase Orders so that GOP promises fulfillment according to the quantity that the purchase order requests.

• Not reliable, then you can configure GOP so that it promises fulfillment only from the supply that is currently available.

ATP Rule Criteria That Refines Order Promising Behavior

Profitable to Promise is a promising strategy that you can use to configure GOP so that it overrides sourcing preferences and chooses a low cost option to fulfill an order. Standard material cost and shipping cost are examples of low cost options. However, note that GOP gives the highest priority to fulfilling the order on time. It chooses a lower priority, lower cost source instead of a higher priority source only if each of these lower priority sources can promise the order on time, or with a delay that is comparable that would be incurred when using the higher cost source.

If GOP cannot locate a sufficient supply for the requested item in a fulfillment organization, then it can examine the supply that exists at upstream warehouses or suppliers. This technique is known as Capable to Promise (CTP). GOP can use the following types of CTP.

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Type of CTP Description Transfer CTP Transfer supply from an upstream organization. Buy CTP Transfer supply from a supplier. Make CTP Use the supply that is available at an organization when promising

fulfillment. To use Make CTP, you must do the following work:

• Enable the Search Components and Resources feature on the ATP rule.

• Use Oracle Product Information Management Cloud to create the structure of the requested item

• Use a data collection process to collect this structure into GOP.

You can enable Transfer CTP and Buy CTP to improve promising. To enable these features, you must set up sourcing rules that reside locally at the upstream organizations.

The ATP Time Fence specifies a duration. If the duration expires, then GOP will look for supply that does not already exist in an ATP supply organization. It will attempt to promise the order through Transfer CTP, Buy CTP, or Make CTP. This feature helps to preserve supply that is currently available for orders that include dates that occur in the near term.

You can also modify order attributes that determine how GOP promises the order. You can set these attributes when you create the order, or order management might set them when it schedules the order. GOP comes predefined to reference the order attributes, by default. For example, if the Organization attribute of an order is set to Requested Ship-from Organization, then GOP restricts the search that it does only to the Requested Ship-from Organization fulfillment organization. This configuration might cause suboptimal promising because other organizations might exist that possess supply that is sufficient to promise the order on time, but GOP does not consider them. To explore improved promising possibilities, you can use Check Availability in GOP to remove the organization or to modify the organization on an order.

You can also use the following order attributes to control allocation.

Order Attribute Description Allow Substitution Allow GOP to look for supply across substitute items. Allow Splits Allow GOP to split fulfillment across different organizations, items, or

dates to improve promising results. Requested Shipping Method

Allow GOP to consider faster shipping methods to improve promising results.

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Order Attributes That Refine Promising Results

After you update the order attributes, you can click View Availability Options to view the potential promising options that GOP creates according to the attributes that you modified.

Multiple Availability Options for an Order

The Option summary provides a quick indication of the differences that exist between the alternate option and the current promising option. To compare performance across alternatives, and to evaluate cost and delay tradeoffs, you can use the fields that describe fulfillment cost and the days of delay that might occur with each option. You can click Select and Schedule to save the data for the alternate option.


Changing order attributes in Check Availability does not affect the existing promise for an order unless you use the Schedule action to commit the new results. This action also saves any modifications that you make to the order attributes.

CHECK AVAILABILITY TO FIX PROBLEMS THAT MIGHT OCCUR DURING ORDER FULFILLMENT

You can use Check Availability to identify problems that might affect order promising, take actions to resolve these problems, or compare new promising results against the existing promising results.

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You can navigate to the Check Availability page from OM to promise new orders or to reschedule orders that are already promised. If you navigate to Check Availability in the context of multiple orders, then you can select the sequence that GOP uses to promise these orders. This sequence determines the priority that GOP uses when it allocates supply to orders. It can significantly impact order promising results. GOP comes predefined to use this prioritization according to Requested Ship Date, by default.

Defining Schedule Priority When Promising Batches of Lines

You define the schedule priority, and then view the Check Availability page.

Analytics That Display Fulfillment Problems That Exist in Orders and Order Batches

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Analytics in the Check Availability page allow you to quickly compare the proposed schedule to the original schedule. The pie charts in the above screenshot indicate much worse fulfillment performance for the proposed schedule when compared to the original schedule. The Days of Delay on individual orders measures the lateness for individual orders. GOP uses the original schedule until you click Schedule to save the new schedule.

You can manually increase the priority of an order and recheck availability to improve schedule performance for an order that resides in a batch of orders. GOP reallocates supply from other lines to the line that you prioritize.

Using Override Priority to Prioritize Orders in Batches

GOP use a shipment set to promise multiple lines that must ship together on the same date from the same organization. In some situations, insufficient supply for a few lines might delay the promise for an entire shipment set. You can use Check Availability to remove one or more lines from a shipment set so that GOP can promise the remaining lines of the set on time. You can drill into the Review Supply Availability report in the context of a shipment set to view the supply that is available for all the lines that the set contains. You can use this report to quickly identify lines that might cause supply problems, and then remove them from the shipment set.


Use the following guidelines when you use Check Availability to fix fulfillment problems that might occur during order fulfillment:

• GOP comes predefined to maintain the promised date on existing orders that are already scheduled. You can manually reschedule an order to override this behavior.

• The results that Check Availability displays are valid for 10 minutes, by default. Check Availability does not set aside the supply that it displays. If more than one user uses Check Availability at the same, and if these users use it to check availability for the same item and organization, then Check Availability might display the same promising results for each user. However, in reality, it cannot promise the same inventory for the same item to different

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orders at the same time. To avoid this situation, you can set the Timeout for Check Availability Results feature to a smaller value.

MANAGE GLOBAL ORDER PROMISING IN THE CLOUD

Oracle Order Management Cloud uses public web services that call internal GOP services to check availability, to schedule orders, and to cancel orders. GOP provides an architecture that is available seven days for each week, and 24 hours each day. This uptime makes sure that order promising is always available. If you refresh GOP with the latest supply chain data, then the old GOP instance continues to promise orders for the prior version of the supply. It then reschedules these orders in the new instance.

Release 10 automates the process of restarting GOP, which makes it easier to refresh the data that GOPuses. Release 10 also allows you to extract the GOP data store so that you can debug problems. The GOP data store is an XML data repository that GOP uses for order promising.

STEPS TO ENABLE

Run the following scheduled processes.

Scheduled Process Description Refresh and Start the Order Promising Server

Refreshes GOP with the latest data.

Extract Global Order Promising Data Store

Extracts the GOP data store.


Use the following guidelines when you refresh data:

• You must restart GOP to refresh the data that it contains. If you collect data but do not restart GOP, then GOP might not display the latest data.

• You must restart GOP at least one time each day to make sure the system date that GOP uses is accurate. To automate this restart, you can set up a scheduled process named Refresh and Start the Order Promising Server so that it runs at midnight every day. Make sure you select the Fulfillment Lines parameter when you set up this scheduled process.

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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

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oracle order management cloud · pdf file3 overview this guide describes the new and improved...

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