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Oracle Global Order Promising Ds

The document discusses how Oracle Order Management Cloud's global order promising features can help companies meet customer expectations by checking availability and scheduling delivery from all potential supply sources. It allows companies to promise orders based on inventory, production capacity, purchases, and more to gain a competitive advantage in fulfillment.

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Sutirtha Sinha
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0% found this document useful (0 votes)
35 views4 pages

Oracle Global Order Promising Ds

The document discusses how Oracle Order Management Cloud's global order promising features can help companies meet customer expectations by checking availability and scheduling delivery from all potential supply sources. It allows companies to promise orders based on inventory, production capacity, purchases, and more to gain a competitive advantage in fulfillment.

Uploaded by

Sutirtha Sinha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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To attract and keep customers, you must tap every source of supply to

deliver on time, every time, at the lowest cost. The global order promising
features of Oracle Order Management Cloud can help you meet the most
demanding customer expectations by checking availability and scheduling
delivery based upon actual supply across all potential sources, including
production capacity and purchases from suppliers. Global order promising
can also limit access to hot items and intelligently manage the order Key Business Benefits
backlog when demand outstrips availability, so you can keep your • Source from a wide range of
fulfillment locations, including
fulfillment operations on track. stores, warehouses, plants and
supplier sites
GAIN COMPETITIVE ADVANTAGE FROM BETTER FULFILLMENT • Promise against both current
and future supply
From consumers to corporate purchasing departments, today’s buyers leverage all available channels
to find the best price and availability. To respond competitively, you can’t just quote standard lead • Automatically select the lowest
cost source and delivery method
times. You need to compare the actual stock, production capacity, delivery options and costs of every
that meets the customer’s needs
potential source of supply.
• Plan drop shipments, back-to-
back orders and internal
material transfers
• Prevent delays by splitting order
lines or substituting items when
necessary
• Control availability of high-
demand products by customer
or channel

Key Features

• Real-time availability checking


and order scheduling
Figure 1. Global order promising matches incoming orders to all available supply sources • Profitable-to-promise selection
among potential fulfillment
Global order promising gives you a competitive advantage by managing the availability of supply locations
across your entire fulfillment network. It lets you set sourcing rules that match your business needs, • Capable-to-promise sourcing to
from global defaults all the way to individual item-organization combinations. For example: make, transfer or buy supply to
fill demand
• A retailer picks regularly stocked items at a local store, but then uses a central DC or suppliers to
• Interactive order prioritization
deliver a broader, “endless aisle” assortment of specialty goods.
and what-if alternative selection

• An industrial manufacturer ships all orders above a certain size directly from the plant, saving • Assemble-to-order, configure-to-
distribution center stock for smaller, short-term orders. order and pick-to-order item
promising
• A high technology firm forwards their make-to-order demand to contract manufacturing partners for • Tight integration with other
production and drop shipment to the customer. Oracle SCM Cloud applications

1 DATA SHEET / Global Order Promising


PROMISE ORDERS WITH COMPLEX FULFILLMENT SCENARIOS

Effective order promising can “save the sale” when a fixed lead time promise date would have been
too conservative, or when current stock is limited, but more can be produced, transferred or bought to
meet demand. Just as importantly, it can prevent unrealistic promise dates that lead to late deliveries,
especially in complex fulfillment scenarios.
Potential Sources of Supply
Capable to Promise (CTP) Sourcing and Scheduling You can promise orders based on
any combination of:
Global order promising uses capable-to-promise (CTP) to plan internal material transfers,
manufacturing work orders and purchases to move, make or buy supply to fill an order when it is not • On hand
on-hand. For back-to-back items, it pegs the supply orders to the sales orders so any rescheduling • In-transit supplies
respects existing material reservations.
• Internal material transfers

CTP calculations can include multiple levels of component sourcing, transfer and assembly. They can • Manufacturing work orders
also be based upon planned supply from Oracle Supply Planning Cloud or an external planning • Purchase orders
solution. This allows you to schedule demands beyond your execution horizon. It also maximizes the
• Supplier requisitions
planning system’s flexibility to adjust total supply to meet demand, so you are not limited by what is
already in the process of being purchased, procured or transferred. • Planned supply

Configure to Order (CTO) Item Promising


When items are assembled or picked to order based upon a product model with multiple configuration
options, Global order promising considers each required option’s availability and lead time, as well as
option-dependent sources. If an item is already on-hand that matches the configuration being ordered,
it can fulfill the order.

Drop Shipments
Global order promising can model promising scenarios that include drop shipments from a supplier
directly to the customer. To derive an accurate promise date, it takes into account:

• Available transit modes

• Supplier-to-customer delivery lead times and calendars

• Supplier order processing time and capacity

SELECT THE LOWEST COST DELIVERY METHOD THAT MEETS THE NEED
Costs Considered in Promising
If there are multiple sources and delivery methods that can meet the customer’s delivery date, Global
• Standard cost at internal
order promising selects the one with the lowest total fulfillment cost. Called “profitable-to-promise,” this organizations and supplier
feature can improve margins while maintaining customer satisfaction. locations
• Transfer cost between
organizations and from supplier
to internal organizations
• Transit cost from ship-from
location to customer site, by ship
method

Figure 2. Track the margin, cost and delay impact of promising decisions

2 DATA SHEET / Global Order Promising


You can update the standard cost of the inventory as well as delivery costs to reflect updated supply
prices or deplete excess stock. Real-time analytics compare before-and-after cost, margin and delay.

RESPOND TO CHANGING BUSINESS CONDITIONS

Global order processing can handle most orders in “lights out” fashion, automatically enforcing your
fulfillment policies. However, complex orders may need special attention, and you may need to
reschedule orders to respond to changing business conditions. What-if availability checking screens
help you compare fulfillment alternatives to select a preferred alternative to address issues.

Intelligent Choices

• Guided navigation – backlog


management puts the most
critical orders at the top of your
to-do list

• Intelligent resolution - review


Figure 3. Select from multiple fulfillment alternatives
and select among multiple
fulfillment alternatives
Enhanced Backlog Management
A dedicated backlog management interface gives you the tools to identify, prioritize and reschedule
past-due orders. You can select alternate fulfillment locations by changing individual lines or making
mass changes across multiple orders at a time. You can also review the sourcing strategy used for
each line, along with the available and allocated supplies for each item and fulfillment location. Supply
status can be refreshed at regular intervals to reflect the latest conditions.

A highly configurable interactive dashboard gives you an at-a-glance picture of your overall promising
performance as the system continues to schedule orders.

Figure 4. Review order promising effectiveness

Order Line Splitting and Item Substitution


When there isn’t enough supply available at any single location, global order promising can split an
order line so the total quantity is divided between two fulfillment centers. You can also ship a part of an
order line on time, while scheduling whatever is not available to a future date. You can substitute items
under certain conditions if the ordered item is not available.

3 DATA SHEET / Global Order Promising


LIMIT AVAILABILITY OF HIGH DEMAND ITEMS
Related Products
Sometimes you want to reserve a portion of supply for specific customers when long-term contracts • Oracle Supply Planning Cloud
are in place. Or you need to set aside supply for in-store business when online orders are picked from plans material and capacity and
stores. Global order promising uses demand classes to identify a specific quantity, percentage or ratio responds to demand, availability
of supply with a particular customer or channel. Orders that do not specify the demand class do not and resource issues as they
have access to the supply that’s associated with it. You can override these allocation rules when occur.
necessary to deal with customer escalations or backlog issues. • Oracle Supply Chain
Execution Cloud handles
manufacturing, maintenance,
TRANSFORM YOUR ENTIRE ORDER-TO-CASH PROCESS
shipping/receiving and stock
Global order promising is just one part of Oracle’s comprehensive, Cloud-based order-to-cash management operations.
solution. • Oracle Procurement Cloud
integrates sourcing, contracts
and purchasing of goods and
services from suppliers.

Figure 5. Oracle Order Management Cloud solution capabilities

Oracle Order Management Cloud supports omnichannel customers by connecting your sales,
fulfillment and finance organizations. Integration of these key business functions improves order
accuracy, drives fulfillment efficiency and ensures consistency in pricing, order status reporting and
billing, leading to more profitable sales and higher customer retention. (Global order promising can
also provide availability checking and scheduling for external order management solutions via built-in
web services.)

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4 DATA SHEET / Global Order Promising

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