Slide 3 - Oracle Supply Chain Management Cloud Release 11
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Hello, my name is Ashok. Welcome to the Release Training for the new Oracle SCM Cloud Supply Chain Orchestration product. In this session, we’ll introduce you to this new product and its capabilities.
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Slide 4 - Agenda
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We’ll give an overview of Supply Chain Orchestration Cloud, followed by more detail to explain how you can use them and the business value they bring.
Then, we’ll walk you through a demonstration.
Next, we’ll explain what you need to consider before enabling these capabilities in your business and what you need to know to set them up.
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Slide 5 - Why Supply Chain Orchestration?
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The current release of SCO has predefined processes. Two examples of seeded processes are depicted in the slide. These are make-to-stock contract manufacturing process and Back-to-Back Procurement process.
In the contract manufacturing process, the steps include creating a manufacturing work order and a matching Purchase Order. The work order is used to track the progress in the contract manufacturer’s plant, and the purchase order serves as the contractual agreement between the Enterprise and the contract Manufacturer. These documents are linked to ensure that the states of these documents are automatically synchronized. This synchronization is facilitated by SCO.
In the back-to-back process, the supply document is created and reserved to the sales order. This reservation is maintained until fulfillment.
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Slide 6 - Create Supply As Per Multiple, Pre-defined Processes
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The feature - Create Supply As per Multiple, Pre-defined Processes - enables Enterprises to automatically route supply request to the pre-determined process and track the process through its life cycle.
For example, when planned orders are received from Planning Central, SCO determines if the supply is to be created in-house using standard processes or it is to be outsourced to a Contract Manufacturer.
If the supply is to be created using a standard process, SCO sends the request to the appropriate execution system. On the other hand, if the supply is to be created by the Contract Manufacturer, SCO launches the predefined, plan-to-produce contract-manufacturing process to create the supply.
Supported flows also include back-to-back contract manufacturing; back-to-back make, buy, or transfer; and Internal material transfer.
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Slide 7 - Create Supply As Per Multiple, Pre-defined Processes
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This feature enables users to select the most effective supply-creation process. For example, Enterprises can reduce costs and extend product offerings by engaging Contract Manufacturers with specialized capabilities for specific items.
Whenever supply for these specific items is needed, the supply-creation request is routed to the suitable Contract Manufacturer. This enables Enterprises to not have to spend capital on building manufacturing plants or on maintaining inventory.
By outsourcing specialized capabilities to manufacturing partners, Enterprises can also reduce the fulfillment time
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Slide 8 - Configure Supply Execution Rules
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This feature - Configure Supply Execution Rules - enables Enterprises to set up rules that determine how to execute the transfer of goods between two inventory organizations.
When planning balances supply and demand by inventory organizations, it could recommend transfer of goods from one inventory organization that has excess supply to another that has the demand.
But, there are several legal and business considerations that govern how a transfer is executed: as a transfer, or as Buy/sell. These cases may arise if the transfer of goods happens across Legal Entities, or across Business Units, or across international boundaries.
You can define these rules in SCO and apply them during run time to determine whether to create a transfer order or a purchase order
The default behavior is to create a Transfer Order.
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Slide 9 - Configure Supply Execution Rules
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Automating the execution rules ensures that the transfers comply with all legal and business constraints.
It provides the extensibility and configurability to accommodate expansion, reorganization, and mergers and acquisitions.
Automating the rules also improves accuracy and reduces cost by eliminating manual intervention.
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Slide 10 - Automate Change Management
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Automated Change Management enables systems to respond to changes that occur on the demand side or the supply side.
Supported supply-side changes include the following:
• Increase or decrease in supply quantity
• Cancellation of supply orders, which is essentially a reduction in quantity to zero
• Changes in dates on which supply will become available, and
• Split of supply; that is, total quantity would become available in more than one delivery
How SCO responds to these changes depend on the type of change and the business process. For example, if the business process is back-to-back purchase and the supplier reduces the order quantity, the automated change management module would first attempt to create new supply to fill the gap. If new supply cannot be created in time to meet the demand, then SCO will raise an exception in the order management system.
On the other hand, if the process is contract manufacturing, the system will only raise the exception and leave the task of finding an alternate source of supply to the Planner or Order Manager
A comprehensive set of change management rules address the demand-side changes include:
• Cancel in demand
• Increase or decrease in demand quantities, and
• Change in need-by dates for the demand
When demand side changes occur, SCO’s change management system attempts to alter the supply to match the demand. If supply cannot be changed to satisfy the new conditions, SCO notifies the fulfillment system of the exceptions.
Just as in supply-side change management, the exact logic of change management depends on the business processes that are being used for creating the supply.
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Slide 11 - Automate Change Management
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Automated change management ensures perfect-order fulfillment without manual intervention. It prevents buildup of excess inventory by reducing the supply to match the demand. It also reduces costs that would otherwise be associated with manual management of changes, and it reduces errors that are inevitable if manual management is used.
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Slide 12 - Enable 360o Visibility For End-to-end Supply Processes
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This feature - Enable 360o Visibility For End-to-end Supply Processes - enables users to have complete visibility into the supply-creation tasks.
It gives users the ability to see all supplies that are being created to satisfy a demand, the progress of each of the supply-creation flows, and their current states and statuses. It provides complete visibility into the current state of all associated execution documents. Examples of execution documents are manufacturing work order, purchase order, transfer order, and reservation.
This feature enables management-by-exception by flagging supplies that are at risk. The exceptions are classified into three categories: Errors, Exceptions, and Jeopardy.
Error refers to the case when a technical or functional error prevents the completion of a transaction. For example, if the creation of a reservation fails.
Exception refers to the cases when changes in a supply cause it to be mismatched to the demand. For example, if the demand is for 100 quantity and the supply has reduced to 80, and the change management system has failed find alternate supply. In this case, the system will raise an exception.
Jeopardy refers to the cases when supply is delayed beyond its need-by date.
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Slide 13 - Enable 360o Visibility For End-to-end Supply Processes
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Visibility into the supply-creation flows is crucial for ensuring high customer satisfaction by creating accurate supplies on time. It allows for expedient exception handling by ensuring that appropriate level of details and the context is presented to the decision makers. It facilitates better use of Enterprise resources by promoting management by exception and by providing a single point of entry for navigating up and down the value chain to identify and address exceptions, errors, and jeopardy.
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Slide 14 - Summary of Capabilities (1 of 2)
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Now let's go over the features that I just covered
• Supply Chain orchestration has the ability to receive supply requests from various systems through standardized interface and service. This feature enables customers to implement a uniform way of taking input from different systems, thus providing consistency. The supported sources of supply request are Planning Central, Global Order Promising, and Inventory minimum/maximum planning. In addition, cloud customers can send inter-Org transfer requests via a spreadsheet upload.
• Supply Chain orchestration Provides Enterprises the ability to create supply through pre-defined business processes, such as: Back-to-Back make, buy or transfer; Contract Manufacturing (planned and demand-specific); and Internal Materials Transfer.
• Supply Chain orchestration Provides Enterprises the ability to define rules that will determine how certain business processes will be executed. For example, Enterprises can define rules to execute a transfer via a Transfer Order or a Purchase Order.
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Slide 15 - Summary of Capabilities (2 of 2)
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The Automate change management feature of supply chain orchestration compensatesfor any changes that arise from the supply side or the demand side. Rules are designed to not create excess inventory and to reduce perturbation to the enterprise. It automatically finds an alternate source of supply when supply exception happens.
Supply Chain Orchestration Provides end-to-end visibility into the supply-creation process with status updates, exceptions, and jeopardy. It also provides the ability to Resubmit a supply order for processing when errors happen, or to Cancel a stuck flow. It Flags supply to enable exception-based management. The capabilities also include the ability to Drill-down to execution documents toidentify the sources of exceptions. The landing page contains Comprehensive analytics that indicate the overall state of supply-creation activities.
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Slide 23 - Functional Architecture
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The functional architecture of SCO is depicted in the five layers in this slide.
The SCO processes start with the receipt of a supply request. There are several sources of requests:
Planning Central sends standard planned orders to make, buy or transfer. A batch of planned orders may also include contract manufacturing orders. These are characterized by make orders in a plant that represents a Contract Manufacturer.
Back-to-Back Orders - also known as Promised Orders- come in two parts. The demand picture comes from the Order Management system and the associated supply data comes from Global Order Promising. These two are combined by SCO to launch a request
The requests are written onto SCO’s Interface table
The Decomposition layer of SCO reads the payload from the interface table and creates an object called Supply Order. The decomposition process also transforms attributes of the payload, if necessary. For example, if the Planning system sends supplier or Organization IDs that are internal to the Planning System, the decomposition process will convert them into enterprise-specific IDs.
The decomposition process also interprets the execution rules and assigns and launches the orchestration process. The process determines how supply will be created, for example back-to-back or contract manufacturing.
The orchestration layer executes the steps of the assigned business process. It calls the Business Services layer to launch appropriate tasks such as create a PO or cancel a PO or create a WO and reserve the WO. The Business service layer creates appropriate payload and invokes the end-point URL to request services from the appropriate Supply Execution systems. When changes or updates happen in the supply execution systems and these systems raise a notification pertinent to SCO, the Business Services layer captures the notifications and processes them.
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Slide 24 - Technical Architecture
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Non-cloud users can integrate with SCO through the spreadsheet load capability. This integration capability enables customers to manually create transfers for movement of goods from one Fusion organization to another. Supply Chain Orchestration leverages the External Data Integration Services (standard Fusion ERP cloud interface) and capabilities of Fusion Universal Content Management (UCM) to support spreadsheet-based upload of supply requests for transfers.
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Slide 25 - Technical Architecture
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This diagram represents the technical architecture of Supply Chain Orchestration. The Decomposition layer is an ADF-based entity that reads and processes Oracle Business Rules (OBR) based rules. It persists the transformed requests into a repository that is represented by Supply Order Data Model.
The Orchestration layer has various modules, including the Engine that launches the BPEL processes. The Status framework enables capture, transformation, and rollup of Statuses that come from the execution systems. The Change Management module processes the seeded logic of change processing. Exception management computes and sets exceptions. The Process Planning module enables forward and backward scheduling of the orchestration processes to determine the start and end dates of each process step.
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Slide 26 - Implementation Advice
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In this implementation advice section, we will go through what you need to consider before enabling these features in your business, and what you need to know to set them up.
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Slide 27 - Feature Impact Guidelines
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This table depicts key implementation information for the features covered in this training.
It shows that:
• All features are automatically available after installation.
• These feature can be accessed using the shipped job roles – the exact job roles are detailed later in this section.
• Even though there are defaults, users can optionally setup the execution rules.
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Slide 28 - Setup Summary
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The setup for Supply Chain Orchestration is achieved by choosing the Functional area under the Manufacturing and Supply Chain Materials Management Offering.
Here are some things you need to know about the tasks that are under the Define-Supply-Chain-Orchestration-Foundation task group:
• In Manage Supply Orchestration Lookups, you can only change names and values of the seeded lookups.
• You can define new Attachment categories if required by your business processes but the seeded values support the seeded business processes in Oracle SCM cloud.
• You can use Manage Supply order Defaulting and Enrichment Rules to determine when a transfer order will be routed through the order management system.
• You can use Manage Supply Execution Document Creation Rules to determine when a transfer will be executed as a buy because the default is a transfer.
• Use Manage Custom Enterprise Scheduler Jobs for creating custom ESS schedule, but we suggest you use the seeded one and change the schedule from the Navigator.
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Slide 29 - Manage Supply Execution Document Creation Rules Details
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Here is the Oracle Business Rules (OBR) page where you can use to set up the execution rules. Setting the OBR rules requires some expertise with the application. Therefore, I will not get into the details of how to use it. Once you learn how to create the rules, you can use the supplied parameters to create new rules that determine which combination of parameters will cause a transfer request to be executed as a Purchase Order
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Slide 30 - Manage Supply Order Defaulting and Enrichment Rules Details
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Here is the OBR page where you can set up the enrichment rules.
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Slide 31 - Setup Best Practices
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For managing execution document creation rules, the best practice is to set them up based on the ship-from and ship-to organization combination. Because the organization could belong in different business units or legal entities, the business rules will represent how they do business with each other.
For the enrichment rules, set these up only for items that are of high value and whose inventory needs to be watched closely. Routing transfers through the order management system incurs additional transaction overhead which should be avoided when not necessary.
To improve the performance of your ERP, we recommend scheduling the SCO ESS runs in off-peak period and after Planning has released Planned Orders or you could synchronize with the Planning releases
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Slide 42 - Job Roles
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The product ships with one Job Role, Supply Chain Operations Manager.
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Slide 43 - Business Process Model Information
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The business processes associated with the new capabilities are detailed here.