Supply Chain Management (SCM) :Techno-functional Guide

This article is an easy guide for Techno-functional consultant to understand SCM from Implementation

as well as Oracle Application product Prospective.Lets start the topic with some of high points of

earlier post .

As mention in earlier post a Supply Chain is a network of retailers, distributors, transporters,

storage facilities and suppliers that participate in the sale, delivery and production of a

particular product.o Make a note a supply chain is product specific, not company specific

Supply chain management (SCM) is a systematic approach to manage the entire flow of

information, materials, and services from raw material suppliers through factories and

warehouses to the end customer.

Moreover , SCM involves the flows of material, information and finance in a network consisting

of customers,suppliers, manufacturers, and distributors.

You should be

clear with

Flow that SCM

can manage :o The

flow of

actual

materials, the top middle bars

From suppliers  : flows of raw materials, intermediate products, finished goods

Reverse material flows  : returns, repairs, servicing, recycling, disposalo and the information flows

From suppliers  : manufacturing capacity, delivery schedules, promotions they

have going

Reverse flows  : sales, orders, inventory, quality, promotionso And finally, there are financial flows:

From suppliers : Credits, consignment, payment terms, invoice

Reverse Flows  : payments, consignment

Supply Chain Management is the management of the entire value-added chain, from the

supplier to manufacturer right through to the retailer and the final customer.

SCM has three primary goals: Reduce inventory, increase the transaction speed by exchanging

data in real-time, and increase sales by implementing customer requirementsmore efficiently

The need for SCM is because effective Supply Chain Mgt. is the next logical step towards

increased profits and market share.

Supply Chain Management (SCM) in line manager prospective is "let's-keep-things-moving-

efficiently".

What is Oracle's SCM Solution for Customer

Oracle Supply Chain Management (SCM) basically integrates and automates all key supply chain

activities starting from design, planning, and procurement to manufacturing and fulfillment.It depends

upon how the company or Line managers planning to use these application module in there business

line. For better understanding from Product point, lets understood on eight key area as per figure:

Here are the details with underline Product which is potentially used.

1.Develop : SCM start with developing new products where Product specifications are created.

Oracle Product Life cycle Management(PLM)

Oracle Advanced product Catalog (EGO )

2.Market :Marketing and Sales generates demand for the Product by publicizing its features and how

it would address customer priorities. In the process, Marketing also gets customer feedback and

communicates to Product development group. These are application potentially can be used.

Telesales (AST)

Trade Management (OZF)

Incentive Compensation (CN)

Order Capture (ASO)

Partners Online (POL) *

* Oracle Partners Online (POL) is also known as Oracle Partners Online (PRM).

3. Plan :Planning is the strategic portion of SCM. You need a strategy for managing all the resources

that go toward meeting customer demand for your product or service.

Advanced Supply Chain Planning (MSC)

Global Order Promising (GOP )

4.Sell & Manage Orders :Maintain and manage the customer orders, order holds, notes and release

the orders to warehouse for fulfillment based on requested date, product availability and customer

credit limit.

Order management (OM)

Advanced Pricing (QP)

Configurator (CZ)

iStore (IBE)

5.Procure :Here you normally choose the suppliers that will deliver the goods and services you need

to create your product. Develop a set of pricing, delivery and payment processes with suppliers and

create metrics for monitoring and improving the relationships.

Purchasing (PUR)

iProcurement(iPROC)

6.Manufacture :Schedule the manufacturing activities necessary for production, testing, packaging

and preparation for delivery.

Cost Management (CST)

Process Manufacturing (GMA)

Project Manufacturing (PJM)

Quality (QA)

Work in Process(WIP )

7.Fulfill & Release Management :Coordinate the receipt of orders from customers, develop a

network of warehouses, pick carriers to get products to customers and set up an invoicing system to

receive payments.

Shipping Execution (WSH)

Inventory Management (INV)

WareHouse Management System (WMS)

Transportation Execution (FTE )

8.Service & Maintain :Create a network for receiving defective and excess products back from

customers and supporting customers who have problems with delivered products.

Depot Repair (CSD)

Field Service (CSF)

Install Base (CSI)

Service Contracts (OKS)

Service Fulfillment Manager (XDP)

Spares Management(CSP )

Oracle Product Acronym Listing can be re-validated from Robert's Blog.

This does not cover the Financial flow with SCM.Will take a detail discussion in some other post.

SCM Oracle Solutions

SCM Of Oracle E-Business Suite does covers each area of SCM as discussed in other post. Here is how

best can describe as involvement of all five key participant.

Within SCM these are the business Process that can be fit with these application Module.

1)Procure to Pay

Here is flow that can be best understood with Oracle Modules Involvement.

Under this Business Process Oracle module can be potentially used as

Oracle Purchasing(PUR)

iProcurement(iProc)

iSupplier Portal(isupplier)

Payables(AP)

Purchasing Intelligence(for BI)

Check out earlier Post for P2P details.

2) Order to Cash

 

Here is flow that can be best understood with Oracle Modules Involvement.

Under this Business Process Oracle module can be potentially used as

Oracle Order Management (OM)

Oracle Inventory (INV)

Shipping Execution (WSH)

Advanced Pricing (QP)

Oracle Configurator (CZ)

Warehouse Management (WMS)

Receivables(AR)

Check out earlier Post for O2C, 1 & 2 details.

3) Lead to Service

Under this Business Process Oracle module can be potentially used as

CRM Foundation (JTF)

Sales Online (ASF)

Marketing Online (AMS)

Customer Care (CSC)

Install Base (CSI)

Depot Repair (CST)

Service Contracts (OKS)

iStore (IBE)

iSupport (IBU)

Field Service (CSF )

4) Forecast to Plan

Under this Business Process Oracle module can be potentially used as

Material Planning (MRP)

Advanced Supply Chain Planning (ASCP)

Collaborative Planning

5) Demand to Build

Under this Business Process Oracle module can be potentially used as

Demand Planning (MSD)

Bills of Material (BOM)

Work in Process (WIP)

Cost Management (CST)

Flow Manufacturing (FLM )

Complete Order to Cash (O2C) Techno-Functional flow in R12

Order to Cash   Cycle in Brief:

The Order to Cash Process flow starts with entering the order with a standard item into system. When you enter an order, the item are validated in oracle inventory, the price is calculated for the items using the pricing engine; the availability of the items are checked and may be reserved. Once all the required fields are entered on both the header and the lines, you can book the order. When you click on the Book Order button, the API OEXUBOKB.pls, checks if the order is eligible for booking. If eligible the order is booked and the order header status would change to booked. The next step is the pick release with which you move the items from the warehouse to the staging area. The next step is to ship confirm, to indicate that the items are loaded on to the carrier from the staging area. When you run Ship Confirm, the system decrements inventory and updates sales order line status. This information is then transferred through the Auto Invoice to Account Receivables for invoicing. Then you sent the invoice to your customer for the items shipped and then perform the cash management and bank reconciliations.

Order Management receives detailed item information from the Inventory application and price list information from the Pricing application. Orders and returns can be entered manually or imported through an EDI, CRM, or external source. Once in the system the order

is ready to be pick released and shipped, if needed by the Shipping application. It can then proceed through the Auto Invoice program into the Oracle Receivables application to be invoiced. All of the accounting information is transferred to the General Ledger by the Inventory and Receivables applications.

The required fields to enter on the sales order header are the customer name or number and order type. Other values such as Ship-To Address, Bill-To Address, Shipping Method, and Price List default. The order number is generated based on the order type. The required fields to enter on the sales order lines are Ordered Item and Quantity. Again, based on defaulting rules and setups in Pricing, Inventory and Shipping, the other values would default on the sales order line.

Setup steps for executing the   Order to Cash   flow with a standard item:

         Prior to order entry, the items should be created / defined in inventory module using the master items screen and assigned to the shipping organization. Check the blog post for the related setups

         Add the item to the price list or create a new price list.

         Transaction Type must be defined

         Document Sequence must be assigned to the document category.

         Customers must be defined

         Salespersons must be defined

         Shipping Roles should be granted to the user.

         Ensure that the items are available in your shipping sub inventory or perform miscellaneous transactions to augment the same.

Following are some useful related links:

Check the blog post for tables involved in various stages of O2C

Check the blog post on queries involved in Order management

Order to Cash   flow with tables involved in various stages:

Order to Cash   flow with statuses at various stages:

All possible flow statuses of the order/line:

• OE_ORDER_HEADERS_ALL.flow_status_code: Order Header (Entered) Booked Order (Booked)  Closed Order (Closed)

• OE_ORDER_LINES_ALL.flow_status_code: Order Line (Entered)  Booked Order (Awaiting Shipping)  Pick Released(Picked/Staged)  Ship Confirmed (Shipped)  INV/OM interfaced (Fulfilled) Close Order (Closed)

1.    Enter the order header, line details and Book it:

Responsibility: Order Management Super User, Vision Operations (USA)

Navigate to Orders, Returns  Sales OrdersOpen the Sales Orders Window

Order Number: 66413

  

2.    Schedule order:

         Check if the order lines are scheduled or not. If any of the order line is in BOOKED status, it means that the order line is not yet scheduled.

         Run the Schedule Order concurrent program to schedule the order. After the concurrent program is scheduled the order line will move to Awaiting Shipping status.

         Still if the order lines do not go to Awaiting Shipping, check for any holds on the order line/ header. Release the holds (if any) and re-run theSchedule Order program.

         You can even schedule the order line in the following way: Right click on the order line and progress the line to schedule it. Check the OM scheduling related setups

Order tables:

OE_ORDER_LINES_ALL.visible_demand_flag: visible_demand_flag= Yes lines will be made available as Demanded to Planning

Shipping tables: The shipping tables get populated after order scheduling.

WSH_DELIVERY_DETAILS.released_status: monitors the shipping process of the order line

WSH_DELIVERY_ASSIGNMENTS: Assigns delivery details to a delivery and/or a parent delivery detail.

Once the order is booked from the application, following changes occur in the backend

  OE_ORDER_HEADERS_ALL (flow_status_code as BOOKED, booked_flag updated to Y)

  OE_ORDER_LINES_ALL (flow_status_code as AWAITING_SHIPPING, booked_flag updated Y)

  Since the order is now booked, delivery details of the order are created in WSH_DELIVERY_DETAILS table. WSH_DELIVERY_DETAILS has delivery lines and LPNs.

                           OOL.line_id = WDD.source_line_id

  These delivery details information can been viewed form ‘Shipping Transactions Form’ and the delivery status in the application will be as ‘Ready to Release’

  WSH_DELIVERY_DETAILS.released_status =’R’

  WSH_DELIVERY_DETAILS.Release_Status can have any of the below valid values

  WSH_DELIVERY_ASSIGNMENTS (WDA) assigns delivery details to a delivery and/or a parent delivery detail (LPN).

WDA.delivery_detail_id = WDD.delivery_detail_id

  WSH_DELIVERY_ASSIGNMENTS.delivery_id will be NULL as still pick release operation is not performed as final delivery is not yet created.

  At the same time when order is booked ‘Demand interface program’ is triggered in the background and demand of the item with specified quantity is created and these demand information is stored in MTL_DEMAND.

MTL_DEMAND.demand_source_line = OOL.line_id

3.    Pick Release the Sales Order

         Navigate to the Shipping Transaction Form (Shipping  Transactions)

Enter the following in the Query Manager window and click Find

From Order Number = 66413 To Order Number = 66413

         You can find the data in Shipping transaction screen (WSH shipping tables) only when order is scheduled.

         On the Shipping Transaction Form select Launch Pick Release from the Action menu and click on GO button. 

         If Auto Pick confirm is not selected while pick release, then we have to manually do the transact move order process. In fact pick confirm also triggers the transact move order process in which the inventory is moved from item sub inventory to staging area.

Order line status becomes ‘Picked’ on Order and ‘Staged/Pick Confirmed’ on Shipping Form.

  MTL_MATERIAL_TRANSACTIONS_TEMP (Record gets deleted from here and gets posted to

MTL_MATERIAL_TRANSACTIONS)

  OE_ORDER_LINES_ALL.flow_status_code =’PICKED’

  MTL_MATERIAL_TRANSACTIONS is updated with Sales Order Pick Transaction 

MMT.trx_source_line_id  = OOL.line_id

  MTL_TRANSACTION_ACCOUNTS is updated with accounting information

  WSH_DELIVERY_DETAILS. released_status=‘Y’ (‘Released’)

  WSH_DELIVERY_ASSIGNMENTS, MTL_ONHAND_QUANTITIES are updated accordingly

Note: Pick Confirm step can be eliminated if ‘Auto Pick Confirm’ is selected as ‘YES’ while

performed manual pick release. If Pick release is done through shipping transactions form

and if you want to perform auto pick confirm then picking rules setup has to be done.

4.    Ship Confirm the Sales Order

         Navigate to the Shipping Transaction Form (Shipping   Transactions)

         Enter the following in the Query Manager window and click Find

From Order Number = 66413 To Order Number = 66413

         On the Shipping Transaction Form navigate to the Delivery Tab and select Ship Confirm from the Action menu and click on GO button. Ship confirm process triggers the Interface Trip Stops concurrent program.

o    OE_ORDER_LINES_ALL.flow_status_code =‘SHIPPED’

o    WSH_DELIVERY_DETAILS. released_status=‘C’ (‘Shipped’)

o    Data from MTL_TRANSACTIONS_INTERFACE is moved to MTL_MATERIAL_TRANACTIONS and MTL_MATERIAL_TRANSACTIONS is updated withSales Order Issue transaction.

o    Data is deleted from MTL_DEMAND, MTL_RESERVATIONS and WSH_NEW_DELIVERIES

o    Item reduced from MTL_ONHAND_QUANTITIES

MTL_TRANSACTION_ACCOUNTS is updated with accounting information.

Following are the pick release status:

Table: WSH_DELIVERY_DETAILS

Column: RELEASED_STATUS

Possible Values:

B: Backordered- Line failed to be allocated in InventoryC: Shipped -Line has been shippedD: Cancelled -Line is CancelledN: Not Ready for Release -Line is not ready to be releasedR: Ready to Release: Line is ready to be released

S: Released to Warehouse: Line has been released to Inventory for processingX: Not Applicable- Line is not applicable for Pick ReleaseY: Staged- Line has been picked and staged by Inventory

Check the blog post for the detailed pick release status

  

         Verify the details on the Confirm Delivery window and click OK and close the window.  

5.    Run the Interface Trip Stop – SRS Program

         The Interface Trip Stop (ITS) will be trigger at the time of Shipping if check box “Defer Interface” is not check. ITS can also be executed from concurrent request.

Interface Trip Stop has two main components:

1.    Update the Order Management Data (oe_order_lines_all)

2.    Trigger the Inventory Interface (to Update the Inventory tables)

         ITS updates the following fields on oe_order_lines_all table:

         Shipped_quantity

         Shipping_quantity

         Actual_shipment_date

         Inventory Interface will be trigger only if the first part, that means related to OM has successfully completed and flag OE_INTERFACED_FLAG = ‘Y’ on WSH_DELIVERY_DETAILS.  If value of this flag is N/P then Inventory Interface will never be triggered. And even if you try to submit the Inventory Interface from SRS, delivery detail with oe_interfaced_flag =’N’ will never be picked up.

o    oe_interfaced_flag = Y -- signifies ITS has interfaced shipping data to OM

o    inv_interfaced_flag = Y -- signifies ITS has interfaced shipping data to INV

Navigate to Shipping Interfaces window (Shipping  Interfaces  Run)

Select the Interface Trip Stop - SRS Program from the LOVs

On the parameters window enter

Mode = All

Click on the OK button and then on the Submit button:

6.    Run the Master AutoInvoice Program

Navigate to the Run AutoInvoice window, (Interfaces  AutoInvoice)

Select the AutoInvoice Master Program from the LOV

On the parameters window enter

Invoice Source = ORDER ENTRY

Default Date = Enter Today’s Date

(Low) Sales Order Number = 66413

(High) Sales Order Number = 66413

Then click OK and Submit button.

7.    View the Transaction created by the AutoInvoice Program

         Navigate to the Additional Line Information window, (Orders, Returns Order Organizer)

         On the Find Order window, query your order number = 66413

         On the Order Organizer window, navigate to Lines Tab and click on Actions button and select the Additional Line information and click OK.

8.    On the Additional Line Information window, navigate to Invoices / Credit Memos Tab and click on the Invoice Details button. This would open Transactions window, where you can see the invoice details.

Following is an important Query which gives the joining between OM, WSH, AR TablesSELECT ooh.order_number

              ,ool.line_id

              ,ool.ordered_quantity

              ,ool.shipped_quantity

              ,ool.invoiced_quantity

              ,wdd.delivery_detail_id

              ,wnd.delivery_id

              ,rctl.interface_line_attribute1

              ,rctl.interface_line_attribute3

              ,rctl.interface_line_attribute6

              ,rct.org_id

              ,rct.creation_date

              ,trx_number

              ,rctl.quantity_ordered

              ,rct.interface_header_context

  FROM oe_order_headers_all ooh

             ,oe_order_lines_all ool

             ,wsh_delivery_details wdd

             ,wsh_new_deliveries wnd

             ,wsh_delivery_assignments wda

             ,ra_customer_trx_all rct

             ,ra_customer_trx_lines_all rctl

 WHERE ooh.header_Id=ool.header_id

      AND wdd.source_header_id=ooh.header_id

      AND wdd.delivery_detail_Id=wda.delivery_detail_id

      AND wda.delivery_id=wnd.delivery_id

      AND rctl.interface_line_attribute1=to_char(ooh.order_number)

      AND rctl.interface_line_attribute6=to_char(ool.line_id)

      AND rctl.interface_line_attribute3=to_char(wnd.delivery_id)

      AND rctl.customer_trx_id=rct.customer_trx_id

      AND rct.interface_header_context='ORDER ENTRY'

O2C: Accounting Entries:

Transaction Event Debit Credit Module

Enter Sales Order

No Accounting EntryOrder Mgmt

Book Order

Pick Release Order

Ship goods to customerCost of Goods Sold a/c

Inventory a/c Inventory

Issue InvoiceReceivables a/c

Revenue a/cReceivables

Collecting Payment Cash/Bank a/cReceivables a/c

Receivables