Oracle Supply Chain Management

Cloud: Plan to Produce

(includes Manufacturing, Planning, Inventory
and Cost Management, Supply Chain
Financial Orchestration, and Advanced
Fulfillment)

Release 11

Release Content Document

December 2015
TABLE OF CONTENTS
REVISION HISTORY .................................................................................................................................................4

PLAN TO PRODUCE ................................................................................................................................................5

MANUFACTURING ..................................................................................................................................................5
Define the Discrete Manufacturing Process ......................................................................................................... 5
Use Adaptable Operation Models for Manufacturing Plants ............................................................................................. 5
Visually Design the Discrete Manufacturing Process ......................................................................................................... 6
Coordinate Engineering Modifications and Communicate Them to Manufacturing ......................................................... 6
Use Spreadsheets to Import Work Definitions .................................................................................................................. 6
Run Discrete Manufacturing Processes ................................................................................................................ 7
Manage Work Orders......................................................................................................................................................... 7
Use Simplified Reporting for Production Tasks .................................................................................................................. 7
Maintain Tight Control of Serialized Products ................................................................................................................... 7
Plan for Production Costs................................................................................................................................................... 8
Integrate Seamlessly with Services .................................................................................................................................... 8
Use Embedded Social Collaboration in Manufacturing ........................................................................................ 8
Run Contract Manufacturing Processes ............................................................................................................... 8
Run Configure-to-Order Processes ....................................................................................................................... 8
PLANNING ............................................................................................................................................................9
Integrate Demand and Supply Planning............................................................................................................... 9
Forecast Demand ............................................................................................................................................................... 9
Calculate Safety Stock ...................................................................................................................................................... 10
Plan Supply....................................................................................................................................................................... 10
Customize Your Plan Scope to Meet Business Needs ...................................................................................................... 11
Monitor Supply Chain Performance ................................................................................................................... 11
Monitor Plan Performance at the Aggregate Level.......................................................................................................... 11
Use Guided Navigation to Analyze Root Causes .............................................................................................................. 12
Use Spreadsheet Tools to Analyze Data........................................................................................................................... 13
Configure Embedded Analytics ........................................................................................................................................ 13
Respond to Changing Conditions ....................................................................................................................... 13
Simulate Alternative Supply Chain Scenarios................................................................................................................... 14
Simulate Supply and Demand Scenarios and Get Intelligent Recommendations ............................................................ 14
Manage by Exception ....................................................................................................................................................... 14
Use Notes to Collaborate with Other Planners ................................................................................................................ 14
Use Oracle Social Network to Collaborate with Cross-Functional Users ......................................................................... 15
Integrate Planning and Fulfillment..................................................................................................................... 15
Collect Data from Integrated Oracle Supply Chain Management Cloud Products ........................................................... 15
Collect Data from External Data Sources ......................................................................................................................... 15
Release Recommendations to Fulfillment Systems ......................................................................................................... 16
COST MANAGEMENT............................................................................................................................................. 17
Use Standard Cost Estimation and Rollup .......................................................................................................... 17
Cost the Manufacturing of Work Orders ............................................................................................................ 17
Manage Compliance to Cost Standards ........................................................................................................................... 18
Use the WIP Inventory Valuation Report ......................................................................................................................... 18
Control Budgets and Perform Encumbrance Accounting ................................................................................... 18
Control Budgets for Receipt Transactions........................................................................................................................ 18
Use Encumbrance Accounting for Receipt Transactions .................................................................................................. 18

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 Use Landed Cost Management .......................................................................................................................... 19
Apply Landed Cost Charges to Purchase Order Receipts ................................................................................................. 19
Enter Landed Cost Charges in a Trade Operation ............................................................................................................ 19
Allocate Charges and Taxes to Receipts ........................................................................................................................... 19
Accrue Landed Cost Charges and Taxes ........................................................................................................................... 20
View Landed Cost of Purchase Order Receipts ................................................................................................................ 20
Apply Actual Landed Cost Charges to Receipts .................................................................................................. 20
Flag Third-Party Invoices That Require Landed Cost Processing ...................................................................................... 20
Interface Supplier Invoice Adjustments From Payables ................................................................................................... 20
Automatically Match Invoice Lines to Receipts ............................................................................................................... 20
SUPPLY CHAIN FINANCIAL ORCHESTRATION ................................................................................................................ 21
Use Simplified Setup and Monitoring .............................................................................................................................. 21
INVENTORY MANAGEMENT .................................................................................................................................... 22
Fulfill Orders in Complex Fulfillment Scenarios ............................................................................................................... 22
Deploy Materials Management Locations More Quickly ................................................................................................. 23
Support Internal and External Manufacturing ................................................................................................................. 23

ADVANCED FULFILLMENT .................................................................................................................................... 24

Use Contract Manufacturing Flows.................................................................................................................................. 24
Use Configure-to-Order Flows ......................................................................................................................................... 25
Use Supplier-to-Customer Drop Ship Flows ..................................................................................................................... 26
Use Back-to-Back Flows ................................................................................................................................................... 26
Use Internal Material Transfer Flows ............................................................................................................................... 27
SUPPLY CHAIN ORCHESTRATION .............................................................................................................................. 29
SIMPLIFIED SETUP ................................................................................................................................................ 31
Quickly Set Up Common Components and Facilities ....................................................................................................... 31
Quickly Set Up Cost Management ................................................................................................................................... 31

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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

15 DEC 2015 Initial Document Creation

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PLAN TO PRODUCE
The Plan-to-Produce business flow is now available in Release 11. Several new products in the Oracle
Manufacturing Cloud and Oracle Supply Chain Planning Cloud solutions enable you to plan, schedule,
and manage your discrete manufacturing operations and optimize your supply chain. Advanced
fulfillment features, such as contract manufacturing and back-to-back shipments, optimize the flow of
your organization’s transactions, and enable you to capture and analyze landed costs. A simplified setup
helps you quickly set up supply chain common components, as well as basic features of inventory,
manufacturing, and cost management.

MANUFACTURING

Oracle Manufacturing Cloud delivers core discrete manufacturing capabilities in the Cloud that allow
you to efficiently set up, manage, and operate your production operations, and to connect through
social collaboration tools. Oracle Manufacturing Cloud supports both in-house manufacturing and
contract manufacturing.

DEFINE THE DISCRETE MANUFACTURING PROCESS

Manufacturing engineers can use an intuitive interface that includes visualization and web-based tools
to build a foundation of manufacturing plant data, and to design a discrete manufacturing process for
the products being built in the plant.

USE ADAPTABLE OPERATION MODELS FOR MANUFACTURING PLANTS

Reduce the time required to configure the manufacturing plant using a standardized data model for
production operations that you can adapt to changing business processes and market conditions.
Improve access to data so that a manufacturing engineer can define, view, and update the
manufacturing plant data and the relationships that exist between entities, including the following
items:

• Manufacturing Plant. Define a plant where you can specify manufacturing setup data, run
manufacturing processes, and support materials management. Configure plant parameters
that determine the behavior of work definitions, work orders, and work execution. Use a
plant calendar that schedules production resources.
• Manufacturing Calendar. Define a manufacturing calendar that includes work days, shifts,
and exceptions.
• Work Areas. Define work areas that represent locations in the plant, where multiple work
centers comprise each work area.
• Work Centers. Define each work center, such as a department or production line, where
manufacturing operations are performed. Each work center is comprised of production
resources that maintain capacity and availability.

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 • Production Resources. Define the generic equipment or labor resources that your
organization uses in production. Define resource calendar exceptions, such as training,
according to day or shift. Define and view resource rates in Oracle Fusion Cost
Management.
• Standard Operations. Create a predefined library of standardized production operations
and their resources and usages so that you can add them to work definitions and work
orders. Automatically propagate subsequent changes that occur to a standard operation to
the work definitions that reference it.

VISUALLY DESIGN THE DISCRETE MANUFACTURING PROCESS

Visually design a work definition that represents the discrete manufacturing process, materials, and
resources needed to make a standard or assemble-to-order product. Use drag-and-drop interactions
and data visualization views to build a sequence of operations, and to specify how each operation is
executed (for example, use push or pull components, count point or backflush materials, automatic
resource charging, and product serialization).

Determine primary and alternate production processes according to planning priorities, costing
priorities, and calculations that determine the manufacturing lead times that your supply chain requires
to fulfill the product. Use work definition versioning to monitor and implement the changes that occur
to the manufacturing process. Print a report of the work definition, including count point operations and
material and resource requirements. You can share this report internally in your organization and
externally with contract manufacturers.

COORDINATE ENGINEERING MODIFICATIONS AND COMMUNICATE THEM TO MANUFACTURING

Coordinate the modifications and revisions that engineers make to item structures, and communicate
these modifications to manufacturing. Quickly assess how these modifications impact the work
definitions that reference the item structure, and then revise them accordingly.

USE SPREADSHEETS TO IMPORT WORK DEFINITIONS

Quickly create or update work definition data, including operations, items, and resources. Use a
Microsoft Excel spreadsheet to create and update this data in Oracle Manufacturing Cloud. View and
correct data validation errors that occur during upload.

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RUN DISCRETE MANUFACTURING PROCESSES

Focused on enhancing the productivity of both the production supervisor and the production operator,
Oracle Manufacturing Cloud helps manage and execute production activities with an enhanced user
experience for standard and configured products. All you need is a tablet to manage production.

MANAGE WORK ORDERS

The first thing a production supervisor needs to know at the start of the day is: What needs to be done
today? Oracle Manufacturing Cloud helps the supervisor focus on the shop floor activities that must be
finished today. It manages the schedules and work order exceptions that affect work order
performance.

You can view and manage all aspects of production, such as create standard work orders, create
nonstandard work orders, update or edit work order operations, update or edit priorities, edit and
manage work order status, pre-assign serial numbers, view production progress, monitor production
history, and print component lists and work order travelers.

USE SIMPLIFIED REPORTING FOR PRODUCTION TASKS

Improve productivity by allowing operators to get reports on materials, resources, and operation
completion with only two clicks, and provide access to more detailed information, if required.

The dispatch list gives your operators a single location where they can view production priorities and
run production tasks for their work center and their shift. The operator can start and end the day with
only the dispatch list and perform all production activities for work orders, such as completing
operations, resolving material problems, returning materials, charging resources, printing production
documents, printing labels, printing report rejections, handling scrap, and so on.

Use out-of–the-box integration with scanning devices to get touchless reporting data on material
transactions for components that are controlled by serial numbers or lot numbers.

MAINTAIN TIGHT CONTROL OF SERIALIZED PRODUCTS

Maintain tight control over your serialized products. Specify the operation in a work order where your
manufacturing floor must begin tracking serial numbers for a finished good. Ensure that after this point,
your shop floor operator charges all the materials and resources that your processes use to an individual
finished goods serial number.Go Lean with Orderless Completion

Manage and run production processes without using work orders. Report product completions, report
returns, report scrap, and use the item work definition to automatically backflush all materials and
charge all resources.

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PLAN FOR PRODUCTION COSTS

Effectively manage your cost planning and product costing activities so that they support your
company’s production operations.

INTEGRATE SEAMLESSLY WITH SERVICES

Integrate with third-party systems to report when material consumption and operations are complete.
Use prebuilt Microsoft Excel templates to create and update work orders, and to report materials,
charge resources, and report operation completions.

USE EMBEDDED SOCIAL COLLABORATION IN MANUFACTURING

Use the following capabilities to leverage the power of social collaboration in your manufacturing
operations:

• Stay connected with work definitions and work orders to get updates
• Collaborate in real time, and in multiple threads, with internal and external partners
• Resolve shop floor problems and share recommended practices through social collaboration

RUN CONTRACT MANUFACTURING PROCESSES

Contract manufacturing provides real-time visibility into the production progress that occurs at the
contract manufacturer site, and can also monitor components that an original equipment manufacturer
(OEM) supplies to the OEM site. To monitor milestone operations at the contract manufacturer site, you
can define your contract manufacturer and related entities in the Oracle Manufacturing Cloud. When
the last operation of the work order finishes, you can automatically receive the finished goods from the
contract manufacturer. For more information about contract manufacturing, see the Advanced
Fulfillment section of this document.

RUN CONFIGURE-TO-ORDER PROCESSES

Define and fulfill configured products with ease. You can simply and easily define the production
process that will be used to build the unique configurations for an assemble-to-order product. After
taking an order for a configuration, automatically create a configured item, automatically and
dynamically create the work definition for the configured item, and automatically create the work order
to build the configured item.

For more information about configured items, see the Advanced Fulfillment section of this document.

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PLANNING

Oracle Fusion Planning Central is a modern supply chain planning solution for industrial, high
technology, and other discrete manufacturing companies. It combines forecasting, inventory, and
supply planning with a multidimensional analytics framework so that you can balance supply and
demand, while simultaneously deriving management insight into your supply chain. You can use
Planning Central to do the following:

• Accurately forecast demand

• Plan for manufacturing of products and procurement of components
• Respond effectively to the changes that occur in supply and demand

You can use social collaboration to significantly improve the speed and the quality of decisions. You can
use embedded analytics and intelligent recommendations to communicate complex supply chain
information in a simple business format. Planning Central uses tight integration with other Oracle
Supply Chain Management Cloud applications to bridge the gap between planning and execution. With
Planning Central, you can automatically release orders to execute material transfers, factory work
orders, or purchase requisitions.

INTEGRATE DEMAND AND SUPPLY PLANNING

Increase forecast accuracy, reduce inventory levels, and increase customer service levels for your
enterprise. You can forecast demand and plan for supply in an integrated environment, and almost in
real time.

FORECAST DEMAND

The following features enable you to accurately forecast demand, and therefore minimize inventory:

• Automated forecast generation. Use an accurate statistical forecasting engine to automate

forecast generation for shipments or bookings. Planning Central offers built-in techniques
for outlier detection, and it uses cutting edge statistical forecasting methodology to
determine the best forecast incorporating seasonal trends and minimize forecast error.
• Enter forecast overrides. Enter overrides to the forecasts to incorporate additional insights
to the forecast. The manually entered forecasts are monitored independently of the
statistical forecasts to maintain data accuracy for measurement purposes. You can disable
manual entry for the time periods where it is not advisable to change the forecasts.
• Manage forecasts at aggregate levels. Analyze and enter forecasts at appropriate levels of
the hierarchy. Planning Central intelligently disaggregates each forecast that enters a higher
level of the hierarchy according to historical proportions. A Product Family forecast is an
example of a higher-level forecast. Planning Central uses the appropriate aggregation
mechanism, such as sum, average, and so on, to aggregate information when you view
forecasts and other information at different levels of the hierarchy.

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 • Incorporate data that drive forecasts. Automatically consider factors, such as seasonality,
that can affect forecast accuracy. For example, a planner can modify the price of a product,
and then view how these modifications affect the forecast.
• Measure forecast accuracy. Use automated calculations that determine forecast accuracy
and fix forecast quality problems. Planning Central uses predefined measures for mean
absolute percentage error (MAPE), mean absolute deviation (MAD), and forecast bias.
• Simulate new product introduction. To efficiently simulate new product introduction,
Planning Central can use the history of a similar product to create the forecast for a new
item.

CALCULATE SAFETY STOCK

Increase customer service levels while minimizing the inventory that is required to hedge against
unexpected variations in demand. Planning Central can calculate the required buffer stock as follows:

• Automatically calculate safety stock levels. Planning Central considers demand variability
when it calculates safety stock. It also uses the MAD, MAPE, and arrival rate forecast errors,
and the service levels that are defined for an item at a facility or alternatively a common
service level for the entire plan.
• Manually set safety stock levels. You can manually set safety stock levels for an item, either
in the Product Information Management work area or in Planning Central, when an
automated calculation is not appropriate. Planning Central can also use a “days of cover”
paradigm to calculate a safety stock level that varies according to time. You can also import
safety stock levels.

PLAN SUPPLY

Balance supply and demand to reduce inventory and prevent out-of-stock situations. Planning Central
offers an unconstrained supply planning engine that includes advanced analytical and visualization
capabilities so that you can quickly identify a supply and demand imbalance, and then quickly resolve it.

• Use sourcing rules to model the supply chain. Plan for the entire supply chain. Use flexible
rules to source material from the full supply chain.
• Consume forecasts. Consume forecasts with orders to get the net demand picture. Spread
forecasts when the granularity of the timeframes that Planning Central uses to plan demand
are higher than the granularity of the timeframes that it uses to plan supply.
• Recommend new supplies and reschedule or cancel existing supply orders. Planning
Central plans to the schedule date on the order, and it will recommend new supply orders.
It nets orders from forecasts and uses the fixed and variable lead times on the item, and
then reschedules or cancels existing orders. It might include the following
recommendations:
o Create or reschedule a purchase order to source material from a supplier.

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 o Create or reschedule a transfer order to move material from another organization in
your supply chain.
o Create or reschedule a manufacturing order to manufacture the product.
Planning Central use various schedules to calculate the dates for replenishment, including
shipping schedules, receiving schedules, and carrier schedules.
• Consider business rules. Planning Central considers effectivity dates on components,
expiration dates on inventory lots, and reservations on on-hand inventory, work orders,
purchase orders, and transfer orders to sales orders.
• Automatically calculate resource requirements. Plan and analyze resource requirements.
The definitions for manufacturing the product, such as resources, work centers, and
manufacturing calendars in Oracle Manufacturing Cloud, are used as input when doing this
calculation.
• Consider safety stock requirements. Planning Central makes sure that the projected
inventory over time is not less than the stocking levels specified.

CUSTOMIZE YOUR PLAN SCOPE TO MEET BUSINESS NEEDS

Control the scope of planning so that it meets business needs. Easily change the scope to adapt to
changing business conditions:

• Create a named plan. Create and name a plan. Identify the locations, items, and hierarchies
to use for data analysis.
• Define planning scope. To transcend traditional demand and supply planning roles, you can
plan for supply and demand in one plan. You can also create a standalone plan, one each for
forecasting, manufacturing, and production, as required. If you use a standalone plan, then
Planning Central allows you to use the forecast from a demand plan in a supply plan, or to
feed the statement of demand from the manufacturing plan to the production plan.
• Use fine grained access control. Control access to a plan to authorized users and limit
planner access only to the data that their responsibility allows.

MONITOR SUPPLY CHAIN PERFORMANCE

To improve planner productivity, reduce the time required to identify problems. Identify the highest
priority problems to fix.

MONITOR PLAN PERFORMANCE AT THE AGGREGATE LEVEL

Use summary views of data, including color coding, to identify any deviation from enterprise goals, and
to quickly interpret enterprise plan performance. Examine future business performance and narrow
down problems through an integrated plan summary view. Each infotile of the summary provides one-
click access to charts and graphs that can help you indentify the root cause. To investigate further, you
can drill from the summary charts into detailed data.

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Access predefined infotiles that display a snapshot of plan performance, such as revenue, margin,
forecast attainment, forecast error, demand at risk, inventory turns.

USE GUIDED NAVIGATION TO ANALYZE ROOT CAUSES

Reduce the time required to analyze the root cause of a problem and to support corporate reporting
tasks. Leverage over 50 prepackaged tables and graphs that you can modify to meet your requirements:

• Analyze root cause. Drill down from the predefined, aggregate infotiles to predefined
worksheets that display detailed information that can help you identify the root cause. Use
the predefined worksheets to analyze and validate your hypotheses, and to navigate in
context to related data.
• Analyze, update, and view forecast modifications. Use the predefined Forecast Analysis
worksheet to analyze and modify each forecast at multiple levels of the hierarchy.
• Analyze, update, and view supply and demand in aggregate timeframes. Use the
predefined Material Plan worksheet to manage supply and demand. This worksheet helps
you to understand the supply and demand picture aggregated in timeframes, and to
understand where and when supply and demand is out of balance. You can view the
projected supply and demand trends, including potential future inventory levels.
• Optimize resource usage. Use the Resource Plan worksheet to optimize resource
requirements and availability. This worksheet helps you understand resource utilization
over time, and to take remedial action for over capacity and under capacity situations.
• Analyze, update, and view supply and demand in detail. Analyze demand and supply
pegging at the detailed levels, such as sales orders, purchase orders, transfer orders, and
planned orders. Use the supply and demand pages to release orders back to Oracle
Procurement Cloud and Oracle Manufacturing Cloud.
• Analyze other data. Use other predefined worksheets to analyze planning data such as
items, item structures, work definitions, resources, resource capacity, resource
requirements, supply chain bills, suppliers, and supplier capacity.

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USE SPREADSHEET TOOLS TO ANALYZE DATA

Use popular spreadsheet tools to analyze, edit, and update planning data, and to improve productivity:

• Analyze plans offline. Download data from a table for offline analysis.
• Edit plans and synchronize modifications to the system. Edit the downloaded data, make
mass updates in Microsoft Excel, and then upload changes. This capability is available for
demand, supply, and items.

CONFIGURE EMBEDDED ANALYTICS

Use a visual, configurable user interface to increase your productivity. Enable guided problem analysis
with in-context drill-throughs between worksheets:

• Configure the layout of the page to meet your preferences. Specify the tables and charts to
display to facilitate holistic analysis. For example, you can analyze the material plan and the
resource plan at the same time.
• Configure planning dimensions and hierarchies. Quickly analyze large data sets through a
common set of planning dimensions and hierarchies that support aggregate data analysis.
Analyze supply and demand on multiple dimensions. The dimensions for analysis include
product, customer, geography, resource, supplier, and time.
• Configure tables for multidimensional data analysis. You can analyze demand, inventory,
and supply data in a single table. This capability provides consistent views, and allows you to
compare and analyze efficiently, including using different units of measure and monetary
value.
• Create new data analysis worksheets. Create new worksheets, and include data
visualization tools like tree maps, sunburst charts, and line and bar graphs in these
worksheets to facilitate easy problem identification. You can also use existing worksheets as
a baseline to create variants that meet specific planning needs. Share these variants with
other users or make them private.
• Configure navigation between charts and graphs and use guided navigation. Specify the
worksheets that you can drill to, with context, from an existing worksheet or graph element.
• Configure favorite lists, saved query criteria, and analysis sets. Reduce the time that is
required to bring the correct data into worksheets for further analysis.

RESPOND TO CHANGING CONDITIONS

Use what-if planning to prioritize actions and solve problems. Take advantage of intelligent
recommendations to reduce the time required to develop solutions.

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SIMULATE ALTERNATIVE SUPPLY CHAIN SCENARIOS

Identify the best course of action to take to solve long-term supply chain problems. Isolate
modifications and apply them to a plan. Model what-if modifications to key item attributes, such as
ordering policies, or to the sourcing rules and assignment sets that define the supply network.

SIMULATE SUPPLY AND DEMAND SCENARIOS AND GET INTELLIGENT RECOMMENDATIONS

Identify the best course of action to take to solve short-term supply chain problems. Modify order dates
and quantities, and then rerun the plan with the modified data to determine whether or not your
change solved the problem:

• Analyze demands that are at risk. Identify the most important orders that are at risk of
being late. Planning Central prioritizes the recommended supply order modifications
according to their demand impact. You can accept some or all of them, and then rerun the
plan to make sure no other problems exist before you release your modifications to the
fulfillment system.
• Simulate hot demand. To understand the impact of accepting a hot demand, add simulated
orders to the plan and view the effects that they have on your existing plan.
• Simulate order pull-in. Assess the feasibility of pulling in existing orders to meet corporate
financial targets.

MANAGE BY EXCEPTION

Determine how varying the plan affects performance thresholds so you can tackle the most important
exceptions:

• Configure the thresholds for reporting on exceptions. You can create reports for over 25
types of exceptions. You can specify the thresholds to use.
• Configure exception sets. Identify the exceptions that are important for your plan. Planning
Central will calculate and report only these exceptions.
• Analyze plan exceptions. View the exceptions and drill directly from the exception to
relevant data so that you can understand the circumstances that are causing the exception,
and so you can create an action plan that resolves it.

USE NOTES TO COLLABORATE WITH OTHER PLANNERS

Collaborate with the planning community so that you can make informed planning decisions. You can
annotate the data that you modify to help other users understand your assumptions and reasons for the
modifications. You can associate notes with the following items:

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 • A plan
• Data in a plan, such as items, organizations, or customers
• A table that contains planning combinations

For example, you can attach a note to a shipment forecast for an item or organization in a specific week
so your peers know why you modified the forecast.

USE ORACLE SOCIAL NETWORK TO COLLABORATE WITH CROSS-FUNCTIONAL USERS

Collaborate with the extended community using Oracle Social Network. You can also examine historical
conversations to uncover the clues that can help you solve current problems:

• Start a conversation centered on a plan. Any number of interested participants can

comment on this conversation.
• Add comments. You can add a comment to an Oracle Social Network conversation on the
plan when you work in Planning Central.

INTEGRATE PLANNING AND FULFILLMENT

To reduce implementation timelines and reduce total cost of ownership, you can use the out-of-box,
two-way integration that exists between Planning Central and other Oracle Supply Chain Management
Cloud applications. You can also incorporate supplementary data from other data sources.

COLLECT DATA FROM INTEGRATED ORACLE SUPPLY CHAIN MANAGEMENT CLOUD PRODUCTS

Use predefined integration with other Oracle Supply Chain Management Cloud applications to reduce
implementation complexity. To reduce the potential data latency that exists between fulfillment and
planning systems, use a multi-threaded process that improves data synchronization time:

• Use preconfigured integration. Get the data that planning requires from Oracle Product
Master Data Management Cloud, Oracle Manufacturing Cloud, Oracle Procurement Cloud,
Oracle Inventory and Cost Management Cloud, and Oracle Order Management Cloud.
• Optimize data collection to reduce planning cycle time. Use targeted data collection,
where data represents a business entity, or use data collection according to net change,
where you use data that changed since the last run. To collect a subset of the data, you can
use filters that specify the data to collect. For example, to reduce the number of items
collected, you can filter according to the organizations being planned, or to reduce the
order history collected, you can filter according to date ranges.

COLLECT DATA FROM EXTERNAL DATA SOURCES

To improve decision making in Planning Central, you can use data from other sources that you may
have. You can:

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 • Upload forecasts. If you use another system for forecasting, then you can upload these
forecasts. The forecast can be used to create your supply plan.
• Upload sales order history.
• Upload safety stock levels.
• Upload supplier capacity and planned order supplies. For example, if your organization
gets supply commits from a supplier, then you can upload this data to Planning Central.
• Collect other data. Upload other entities, such as item costs, planners, demand classes,
causal factors, approved supplier lists, sourcing rules, sourcing assignment sets, calendars,
organizations, carriers, currencies, units of measure, and other mapping information that is
cross-referenced.

NOTE: Planning Central requires you to use other components of the Oracle Supply Chain Management
Cloud in this release, including: Oracle Order Management Cloud, Oracle Product Master Data
Management Cloud, Oracle Manufacturing Cloud, Oracle Procurement Cloud, and Oracle Inventory and
Cost Management Cloud.

RELEASE RECOMMENDATIONS TO FULFILLMENT SYSTEMS

Release plans to fulfillment systems so they take effect:

• Automatically release orders for fulfillment. Release orders when the supply planning cycle
completes according to predefined parameters.
• Manually release orders. Modify information, such as due dates and quantities, prior to
release.

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COST MANAGEMENT

Oracle Fusion Cost Management delivers essential cost management capabilities that enable you to
effectively manage the cost planning and product costing activities that your company materials
management and manufacturing operations require when running these operations in the Cloud.

USE STANDARD COST ESTIMATION AND ROLLUP

Use a cost planning framework that allows cost accountants to estimate, roll up, and publish standard
costs for your company components, assemblies, and products:

• Iteratively estimate manufacturing standard costs. Cost Management provides your cost
accountants with the tools that they need to plan and monitor manufacturing costs and
variances to plant standards. A cost accountant can create cost planning scenarios and cost
plans that specify the standard costs of manufactured items. Cost Management then uses
these scenarios and plans to estimate standard cost and the cost rollup process for a
manufacturing plant.
• Import material costs spreadsheets. Use costs that were previously defined in a
spreadsheet to quickly enter the standard costs of your materials. Download your existing
material costs to a spreadsheet where you can quickly modify material cost estimates so
that they reflect the current or projected material prices and commodity prices that your
suppliers quote. Upload your updated material and commodity costs so that you can publish
them in cost rollup and standard costs for an upcoming period.
• Prioritize work definitions in cost rollups. Determine the work definitions to use to set
frozen standard cost for a manufactured item. If multiple work definitions are defined for an
item, then the cost accountant can specify the work definition to use when rolling up and
publishing standard costs for the item.
• Use graphical views of rolled-up cost. When the cost rollup of the manufactured items in a
cost planning scenario finishes, the cost accountant can view their rolled up cost graphically,
and can view them through the levels that their work definitions define. The graph view
includes unit and total material cost, resource and overhead cost according to operation,
and costs according to level.

COST THE MANUFACTURING OF WORK ORDERS

Cost Management costs work order transactions and can provide the cost accountant and
manufacturing manager with the information they need to control the material and resource costs
incurred during the manufacturing process:

• Use comprehensive reporting of work order costs. Cost the material and resource
transactions and display total cost for a work order, including the manufacturing overhead
that a cost accountant specifies and adds to the work order cost. Cost Management

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 monitors work order costs across the entire lifecycle of the work order, from initial charges
to work order close.
• Valuate partial work order completions. To streamline your period end close process, you
can specify to include the value of work-in-process that exists in your work orders at a point
in time that you specify. Work-in-process includes material and resources charged to a work
order that remain unused, or that are used in partially completed assemblies.
• Valuate work order scrap. Flexibly define accounting policies for scrap transactions that
occur in the manufacture of an assembly. The cost accountant determines whether or not
to expense the scrap that occurs in work orders for an assembly in the current accounting
period, or to add this expense to the cost of assemblies that are completed.

MANAGE COMPLIANCE TO COST STANDARDS

Effectively identify the manufactured items that do not comply with plant cost standards. View work
order costs and current manufacturing cost standards to determine the root causes for cost variances.

USE THE WIP INVENTORY VALUATION REPORT

A new report displays material, resource, and overhead charges to a work order, scrap cost, total cost,
and, where applicable, standard cost and standard cost variances.

CONTROL BUDGETS AND PERFORM ENCUMBRANCE ACCOUNTING

Cost Management supports budgetary control, encumbrance accounting, funds check, funds
reservation, funds inquiry, budget inquiry, and reporting for procure-to-pay and project transactions.

CONTROL BUDGETS FOR RECEIPT TRANSACTIONS

Budgetary control for funds in the receipt accounting that Cost Management uses are forced passed. It
reserves funds according to the transaction amount that is available on the receipt and the funds
balance that is currently available. To perform fund check and fund reservation for purchase orders that
include project details, it adds project burden amounts to the transaction amount. Cost Management
supports the following transaction types:

• Receipt delivery to inventory and expense destinations

• Correction to receipt delivery
• Retroactive price adjustment
• Return to receiving

USE ENCUMBRANCE ACCOUNTING FOR RECEIPT TRANSACTIONS

You can perform budgetary control without creating encumbrance accounting entries, and you can
perform encumbrance accounting entries without doing budget checking. If you use budgetary control,

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and if you set the budgetary control validation status to funds reserved, then Cost Management uses
receipt accounting that performs encumbrance accounting, and the receipt accounting process
liquidates the reserve for the encumbrance account, and then sends the actual journal entries for the
receipt.

USE LANDED COST MANAGEMENT

Oracle Fusion Landed Cost Management enables procurement professionals and cost accountants to
incorporate the shipment service charges that come from a third party. It incorporates these charges
with the cost of individual purchase order receipts. This capability improves financial reporting and fiscal
regulatory compliance, and it more accurately measures and reports the product cost trends and
margins.

APPLY LANDED COST CHARGES TO PURCHASE ORDER RECEIPTS

You can create and use trade operations to manage the capture and allocation process used for landed
costs. These operations define and add the landed cost charges to the material supplier cost of the
purchase order receipts:

• Manage trade operations. Enter the amount of third party service charges and taxes that
apply to the shipment of goods from your suppliers. Specify the purchase orders where
landed cost charges and taxes apply. Allocate the amounts of trade operation charges to the
receipts that are associated with the purchase orders in the trade operation.
• Manage routes. Assign a route name in the trade operation to facilitate landed cost analysis
of goods that move through your supply chain. Group multiple trade operations into a single
route.
• Manage charges. Define the charges that a user can enter in a trade operation. You can also
specify the default allocation basis and allow taxes to be automatically calculated on the
charge.

ENTER LANDED COST CHARGES IN A TRADE OPERATION

Manually enter the charges and charge amounts that are related to one or more purchase order
shipments that a trade operation specifies. Use predefined charge templates or upload spreadsheets
that include charges to streamline how you capture landed cost charges. Enter charges for individual
schedule lines in each purchase order.

ALLOCATE CHARGES AND TAXES TO RECEIPTS

Enter landed cost charge and tax amounts in a trade operation, and allocate them to purchase order
receipt items according to the allocation basis that the trade operation defines.

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ACCRUE LANDED COST CHARGES AND TAXES

Add landed cost charge amounts that come from service suppliers who are third parties in a trade
operation. You add them to the cost of a related purchase order receipt and accrue them to an account
that the subledger accounting rules specify.

VIEW LANDED COST OF PURCHASE ORDER RECEIPTS

Search and view the total landed cost of purchase order receipts, including material cost from the goods
supplier, third party service charges, and nonrecoverable taxes. Quickly view landed cost trends of
recent purchase order receipts for items that reside in an inventory organization.

APPLY ACTUAL LANDED COST CHARGES TO RECEIPTS

The cost accountant can optionally adjust estimated amounts for landed cost service charges in
purchase order receipts so that they reflect the actual amounts that third-party service suppliers
invoice.

Define the charge references that a supplier invoice contains so that the references can be used to
associate an invoice line with a receipt. For example, a freight invoice line can reference the bill of lading
number that is associated with a receipt of goods from a material supplier.

FLAG THIRD-PARTY INVOICES THAT REQUIRE LANDED COST PROCESSING

The payables specialist can flag the freight invoices and invoices for other services that require
processing in Landed Cost Management when processing supplier invoices.

INTERFACE SUPPLIER INVOICE ADJUSTMENTS FROM PAYABLES

You can interface supplier invoices that require landed cost with Landed Cost Management so that it
can adjust the receipt cost in the purchase order to reflect the actual cost that the third party invoices.

AUTOMATICALLY MATCH INVOICE LINES TO RECEIPTS

Automatically match and allocate invoice line amounts to purchase order receipts according to the
matched references that the invoice and the receipt contain. Manually allocate invoice line amounts
that are not matched to receipts.

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SUPPLY CHAIN FINANCIAL ORCHESTRATION

Oracle Fusion Supply Chain Financial Orchestration is a configurable application that manages the
financial relationships that result from the trade that occurs between internal parties. This functionality
allows you to separate your physical flow of goods from the financial accounting of these goods. It
includes the following new features:

• Define multi-node financial flows. Model and automate multiple ownership changes for a
single movement of goods so that you can account for supply chain functions that are
centralized without sacrificing supply chain speed. You define a relationship between your
internal parties that controls each ownership transfer, that specifies the transfer price to
use, and specifies the documentation and accounting that the sale requires.
• Support Advanced Fulfillment Flows. Define financial flows for supplier-to-customer drop
shipments, internal material transfers, and configured products.

USE SIMPLIFIED SETUP AND MONITORING

Supply Chain Financial Orchestration setup incorporates the buy and sell terms setup directly into the
financial orchestration flow, reducing one setup task and improving visibility into your supply chain
relationships. You can also use a single page to manage event exceptions and to monitor event
orchestration, giving you a complete view of the status of your financial orchestration tasks.

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INVENTORY MANAGEMENT

Oracle Fusion Inventory Management offers a complete materials management solution that allows
your company to successfully manage the flow of goods: inbound, within the warehouse, and outbound.
This functionality optimizes the flow of material so that it meets customer demand in a cost-effective
manner.

FULFILL ORDERS IN COMPLEX FULFILLMENT SCENARIOS

Inventory Management improves efficiency in your supply chain and optimizes working capital. It
centrally manages internal inventory transfers across the Oracle SCM Cloud. Internal material transfers
is an end-to-end, cross-supply chain solution that orchestrates transfers according to business rules. You
can manage transfers separately, or combine them with sales orders to improve customer service:

• Support drop ships that travel from supplier to customer. If your supplier ships goods
directly to your customer, then visibility of the fulfillment event automatically starts when
Inventory Management receives the advance shipment notification (ASN) from the supplier.
The process records the virtual receipt of these goods, updates the purchase order so that
your supplier can be paid, and starts the update process that fulfills your customer order,
including billing and subsequent payment from your customer.
• Fulfill supply chain orders in a back-to-back environment. Inventory Management supports
situations where you request supply from one of the following sources of supply so that you
can satisfy your customer order:
o A supplier
o A production facility
o Another distribution center
It automatically reserves supply for the customer order, which results in streamlined
fulfillment for the order. It can reserve supply that is purchased, made, or transferred.
• Fulfill demand in a configure-to-order (CTO) environment. Inventory Management
streamlines handling of orders that include configured products. It treats these orders in the
same way that it treats an order for a standard purchased or manufactured product. It
models them internally in the same why that it models a finished good. This approach
eliminates the need for special processes or procedures that can slow down a configure-to-
order environment. Your customers, transportation providers, and export partners need to
understand the details of each unique configuration. So, these details display on shipping
documents which helps to avoid transportation, export, and customer confusion.
• Use packing slips that meet regional requirements. To support requirements in different
regions of the world, consecutive packing slip numbers improve audit capability for
shipments. Draft and final version support for each packing list provides an easy way to
make sure documents are correct before they are sent. More attributes on the shipment
allow you to use more fields that are related to shipping and transportation.

22
 • Use internal material transfers. Inventory Management includes a new Transfer Order
document that manages the transfer of goods between your stocking locations. It includes
shipping statuses and receiving statuses in one location. To improve warehouse efficiency, it
leverages the fulfillment processes and receiving processes that your warehouse operations
already use when it fulfills customer orders or receives purchase orders.

DEPLOY MATERIALS MANAGEMENT LOCATIONS MORE QUICKLY

Realize benefits of your implementation more quickly and deploy more stocking locations more quickly.
You can use a streamlined setup that includes more predefined values for commonly used
configurations, more predefined default values for required fields, and automatic creation for related
setup tasks.

SUPPORT INTERNAL AND EXTERNAL MANUFACTURING

Inventory Management seamlessly and efficiently manages inventory so that it can support internal and
contract manufacturing facilities:

• Support and monitor goods in manufacturing facilities. Warehouse operations support

your production operations. They issue raw materials to the shop floor, return raw materials
from the shop floor, record scrap, and complete finished goods into inventory. These
capabilities provide complete visibility and support for inventory transactions.
• Get visibility into contract manufacturing operations. Inventory Management and Oracle
Manufacturing Cloud provide improved visibility into and support of manufacturing that
third parties perform. They can model production and inventory transactions at third-party
locations, and can provide integrations that ship or receive raw materials and finished goods
into and from third parties.

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ADVANCED FULFILLMENT
In an effort to reduce cycle times, deliver an excellent customer experience, and increase revenues,
Release 11 supports advanced fulfillment strategies, such as configure-to-order, drop-ship, back-to-
back, and internal material transfer flows. Fueled by a powerful and innovative supply orchestration
architecture, Release 11 has unsurpassed fulfillment capabilities for supply chains that must exploit the
cloud. Now you can utilize the same flexible fulfillment options in the Oracle Supply Chain Management
Cloud that are available in traditional, on-premise, order-to-cash solutions.

USE CONTRACT MANUFACTURING FLOWS

Streamline and effectively manage your extended supply chain to reduce cost, improve on-time
delivery, and improve visibility. Automate and orchestrate the end-to-end contract manufacturing
process for make-to-stock and make-to-order processes. Allow for a touchless fulfillment of your
contract manufacturing process that includes your raw material supplier, contract manufacturer,
customer, and the enterprise:

• Promise and plan for product manufacturing. Plan outsourced manufacturing locations as if
they were in-house manufacturing plants, and make sure customer service levels remain
high. Provide accurate promise dates for orders that the contract manufacturer builds.
Forecast demand for products built at contract manufacturer locations. Plan for supply,
taking into consideration work-in-process and on-hand inventory. Plan for the components
you supply to the contract manufacturer. Automatically create the documentation that is
required to manufacture the product when you release the planned orders.
• Automatic supply creation and fulfillment. Automatically create the purchase requisitions
and purchase orders that your contract manufacturer requires so that they can build the
finished goods on your behalf. Automatically create a work order that references the
purchase order so that you can monitor manufacturing progress and record costs.
Automatically send shipment requests to the contract manufacturer that instructs them to
ship the finished goods to your customer or back to your warehouse.
• Monitor production progress. Interact with your contract manufacturer to get periodic
progress of production and consumption of materials for real time visibility.
• Automatically manage changes that occur in the supply chain. Automatically adjust to
changes in supply and demand, and allow your supply chain manager to re-source the
supply, if necessary. To keep the supplier up to date, automatically update the purchase
order so that it reflects customer order changes, and update the customer regarding delays
or changes that occur with the contract manufacturer.
• Plan and account costs. Plan, account, and manage the costs of elements that are
associated with a product that a contract manufacturer builds.

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USE CONFIGURE-TO-ORDER FLOWS

Efficiently fulfill each configured order through the new configure-to-order (CTO) process. This
streamlined, end-to-end process simplifies fulfillment for a configured product, and provides complete
visibility for every step. It uses an intelligent design that reduces item proliferation, reduces replicated
data, improves item management, and improves on-time order fulfillment:

• Capture and manage customer orders for configured products. Select and configure
assemble-to-order (ATO) products during the sales order process. View the model price and
availability information during this process. Price the configuration at the model level and at
the selected option level. You can offer multilevel, multiorganization, configured products
that are assembled for each order. You can offer a combination of pick-to-order and
assemble-to-order configurations.
• Automatically create items for specific configurations. When the user finishes selecting
options for the model, new algorithms quickly determine whether or not a match for this
item definition already exists. If not, then an algorithm creates the new item and the core
structure that this item requires. The application dynamically creates views to the item
structure or manufacturing work definition throughout the supply chain, depending on the
information that the user requires. A planner or production operator can access the
complete view whereas, a sales representative, buyer, supplier, or customer can access a
sales view. A warehouse user views the final stockable or shippable product, and can drill
into the sales view.
• Promise and source configurations. Promise and source customer orders for a configured
product. Ensure that the configuration is sourced from the right location that is capable of
fulfilling the configured product order.
• Plan demand and supply for the configure-to-order process. Forecast the demand for the
configure-to-order model. Consume orders for the configured product from model
forecasts. Derive the demand on lower level options and option classes according to
predefined planning percentages. To make sure options are available in a timely manner to
manufacture the configured product, offset the required lead times.
• Automatically create supply for configured products. Automatically create supply for
configured products to reduce cycle times for configured orders. You can procure this
supply through drop ship, procured back-to-back, manufactured back-to-back, transferred
back-to-back, or on-hand inventory. Each configured product uses the same process that
any procured or manufactured product uses. A special procedure or manual procedure for a
configured product is not necessary. You can monitor the configure-to-order process from
beginning to end, from creating the supply through procurement, to internal transfers or in-
house manufacturing. You can visually monitor progress and manage exceptions that might
jeopardize order fulfillment.
• Maintain configured item data. Automatically include modifications that occur to the
models in the item master to unique configurations, and immediately include modifications
that occur in the model structures in the dynamic item structures. To minimize setup,

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 maintenance, and setup proliferation, each unique configuration references other setups
that reside at the model level.
• Support transactional item attributes. The configure-to-order process supports
transactional item attributes to match to existing configurations and for in-house
manufacturing. You can easily send transactional item attributes that users select during
order entry to manufacturing, and you can use them to determine work order operations.

USE SUPPLIER-TO-CUSTOMER DROP SHIP FLOWS

Effectively manage the physical and financial aspects of your supplier-to-customer drop shipments,
helping you reduce costs, accelerate order fulfillment cycle times, and improve working capital:

• Promise drop shipments. Configure sourcing rules so that they identify the products that
can drop-ship from a trusted supplier directly to your customer. Promise and source a
customer order directly to your supplier.
• Plan drop shipments. Forecast each product that drop-ships to your customers, and
consume the drop-shipped orders from the forecast. Honor the reservations for drop-
shipped orders. To plan for the delivery of orders to customers, use the transit times that
exist between the supplier and customer site, and use the calendars that measure time at
supplier, supplier shipping, carrier, and customer receiving sites.
• Automatically create purchase orders. Automatically create a purchase order that instructs
your supplier to ship directly to your customer. Improve visibility to customer order
information for your buyer and supplier.
• Use real-time change management. Keep your buyer, supplier, and sales order manager up
to date with instant updates to the purchase order that reflect customer order changes.
Automatically update the sales order with purchase order changes.
• Get visibility to fulfillment. Give your order manager visibility to purchase order status and
notify them when a problem occurs, such as when your supplier cannot meet customer
demand.
• Automate accounting. Receive notification that the supplier shipped the goods, and then
automate documentation and accounting of the ownership change from your supplier, to
you, and then to your customer. Use this capability in conjunction with agreements in
Oracle Fusion Supply Chain Financial Orchestration to support the multiple, internal
ownership changes that your global business agreements require.

USE BACK-TO-BACK FLOWS

The new back-to-back flow allows you to build, transfer, and buy according to customer order
specifications, helping to reduce inventory while providing a wide variety of product choices for your
customers:

26
 • Promise back-to-back orders. You can decide, for each item or for each combination of item
and organization, whether or not to use back-to-back orders. Promise your orders according
to the sourcing rules and the lead time that is required to make, buy, or transfer the item.
• Plan for back-to-back orders. Forecast back-to-back orders and consume the orders from
forecasts. Honor the supply reservations for back-to-back orders. To do planning, use the
transit times that exist between the supplier and the receiving organization and the
calendars that measure time at the supplier, carrier, receiving organization, and customer
sites.
• Automate supply orders. Automatically create a work order, transfer order, or purchase
order that the application reserves for the sales order line. Provide visibility to your sales
order and customer information on the reserved supply. Give your supply chain manager
visibility to the sales order where the supply order is reserved.
• Manage change in real-time. Instantly adjust the supply and demand changes, giving your
supply chain manager the ability to re-source the supply, if necessary.
• Provide fulfillment visibility. Give your order manager visibility to the work order status,
transfer order status, or purchase order status. You can immediately notify the order
manager when a problem occurs, such as when the supply cannot meet the customer
request.
• Automatically reserve inventory. Automatically reserve inventory for a sales order when it
becomes available in inventory, making sure that no other order can use it.

USE INTERNAL MATERIAL TRANSFER FLOWS

To improve efficiency in your supply chain and to optimize working capital, you can centrally manage
internal inventory transfers across the Oracle Supply Chain Management Cloud. Internal material
transfer (IMT) is an end-to-end solution that orchestrates transfers according to business rules. It can
orchestrate across multiple supply chains. You can manage transfers separately, and you can also
combine them with sales orders to improve customer service:

• Use multiple transfer sources. Create internal transfer requests according to current or
anticipated changes to demand and supply that occur in Planning Central. Specify inventory
min-max planning and back-to-back orders. You can also upload transfer requests from
external sources through a spreadsheet.
• Configure transfer processing. Configure the business rules that orchestrate transfer
through either a new transfer order document or a purchase order.
• Use a simplified transfer process. Use intraorganization, interorganization, or intercompany
transfer processes through a new transfer order document that handles the physical
movement of inventory between shipping and receiving organizations. You can now pick,
ship, receive, deliver, or return items through the same transfer order document.
• Get visibility to order promising and planning. For planned items, Oracle Fusion Global
Order Promising and Oracle Fusion Planning Central include complete visibility to transfers
from creation to receipt of the transfer.

27
• Transfer consigned inventory. Configure transfer to remain consigned or assume ownership
of inventory.
• Automate transfer pricing. Automatically apply transfer price and tax throughout the
transfer.
• Centralize transfer management. Use the new Manage Transfer Orders page to monitor
and maintain transfers. Support the changes that occur to the transfer until shipment.
• Configure transfer flow. Create shipment requests and shipping documentation directly
from the transfer order. Automatically update shipments and receipts through the transfer
order.
• Integrate sales order fulfillment. As an option, configure rules that send transfer orders to
Oracle Order Management Cloud to combine visibility of internal and external orders.
• Flexible return transfers. Support physical return of goods or accounting return.
• Configure transfer accounting. Separate the physical transfer flow from the financial flow.
Configure Oracle Fusion Supply Chain Financial Orchestration to define the parties that are
involved in the ownership transfer, and specify the kind of supporting documentation and
accounting that is required.
• Monitor trade flow costs. Provide clear audit trails of transfer prices and costs for
shipments across your business units.

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SUPPLY CHAIN ORCHESTRATION

Oracle Fusion Supply Chain Orchestration provides the backbone infrastructure that delivers end-to-end
supply execution and management across the Oracle Supply Chain Management Cloud. Supporting
various business processes and flows, Supply Chain Orchestration receives supply requests from
multiple Oracle SCM Cloud products. You can run business process steps and tasks across the Oracle
SCM Cloud, according to predefined orchestration flows. Supply Chain Orchestration provides visibility
and alerts when exceptions or jeopardy conditions occur. It improves the efficiency of the supply chain
and helps to reduce the cycle time that is required to get supply where it is needed so that it meets
demand. Supply Chain Orchestration allows you to create both standard and configured products.

The following capabilities are part of the Supply Chain Orchestration framework:

• Automatically create supply for each predefined process. You can use the following
predefined flows:
o Procured back-to-back
o Transferred back-to-back
o Internally manufactured back-to-back
o Outsourced contract manufactured back-to-back
o Plan-to-produce contract manufacturing

In addition, Supply Chain Orchestration also models the internal material transfer (IMT)
processes. To provide a single integration point, Oracle Fusion Planning Central and Oracle
Fusion Inventory Management min-max planning capabilities send their buy, make, and
transfer supply requests to Supply Chain Orchestration. Supply Chain Orchestration uses
the orchestration process and business rules to determine the Oracle Cloud system that
must run the request.

• Configure supply chain rules. You can use Oracle Business Rules to configure and manage
the documents that Supply Chain Orchestration uses when it routes a flow to the Oracle
SCM Cloud. Release 11 includes predefined business rules that are ready to use. You can
configure them to implement custom processing. You define the business conditions that
determine the rule to use.
• Use real-time change management. Immediately adjust changes in demand or supply to
minimize risk in the supply chain. Support changes in supply and demand and automatically
take corrective action or, if an action cannot be run, then send an alert to the Oracle SCM
Cloud.
• Get full visibility to end-to-end supply processes. Enjoy constant visibility into the Oracle
SCM Cloud processes that create supply. Use summary views to monitor progress, view
errors, and manage exceptions that might jeopardize supply from meeting demand. Use the
Supply Chain Orchestration work area to view errors, take corrective action, resubmit to
continue processing, or drill into supply details to monitor each task and task progress.

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Open documents directly from the Supply Chain Orchestration work area to view important
information.

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SIMPLIFIED SETUP
Use quick setup tasks to set up Oracle Supply Chain Management Cloud common components, as well
as basic features that support inventory management, manufacturing, and cost management. You can
quickly get an instance up and running to use for a conference room pilot. Refer to the Quick Start Guide
for Manufacturing and Supply Chain Materials Management for details about the steps required to get a
new instance up and running.

QUICKLY SET UP COMMON COMPONENTS AND FACILITIES

Quickly and efficiently complete the setups required to start using your supply chain solution. Quick Setup
guides you through the setup process, reuses existing setups, asks important questions, and, for some tasks,
provides default values for setups according to recommended practices. With Quick Setup, you can:

• Set up your calendar. Set up shifts, workday patterns, and schedules.

• Set up units of measure. Set up UOM classes, units of measure, and conversions.
• Set up inventory organizations and manufacturing plants. Set up master item organization and
inventory organizations or manufacturing plants, and set inventory organization and
manufacturing plant parameters.
• Automatically predefine required receiving, inventory, and shipping tasks for your
organization:
o Manage inventory configuration. Manage subinventories, locator structure, inventory
transaction reasons, material statuses, ABC classes, ABC classification sets, ABC
assignment groups, and pick slip grouping rules.
o Manage receiving configuration. Manage receiving parameters.
o Manage shipping configuration. Manage rules that release pick waves and release
sequence rules.
• Automatically default required setups for manufacturing plants:
o Create default manufacturing plant data. Create default work area, work center, labor,
and equipment resources.

QUICKLY SET UP COST MANAGEMENT

The Oracle Fusion Cost Management rapid implementation template enables you to quickly and
efficiently complete setup tasks that are related to costing in one step. After creating one or more
inventory organizations or manufacturing plants, open the Cost Management rapid implementation
template, enter a small number of important attributes, and then the setup process automatically
performs the following setup tasks:

• Manage cost organizations

• Manage cost book

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 • Manage cost organization relationships
• Manage cost element
• Manage cost component
• Manage cost component mappings
• Manage valuation structures
• Manage cost profiles
• Manage default cost profiles

---

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