Enhanced Order Fulfillment using Oracle Global Order Promising

Navneet Goel
Development Manager Oracle Corporation

Traditional Approach
Customers Suppliers
Tier 2

Multi-step planning processes, high latency, limited collaboration

Tier 1

Response 1:
Maintain Excess Inventory

Response 2:
Marketing Forecast Distribution Plans Production Manufacturing Plans Plans

Reserve Production Capacity

Response 3:
Sales Forecast

Expedite Everything!

Mfg Forecast
Demand Planning Process

?
t = weeks
Supply Planning Process

Supply Chain Built on Inventory

A Better Way

Move to a More Competitive Model

Customers Suppliers
Tier 2

Oracles APS: zero latency, real-time collaboration

Internet

Tier 1

Portal Collaborative Planning Process

Collaborative demand plan Automated exceptions

Portal
Collaborative supply plan Automated exceptions

Enable closed loop

planning processes across your value chain

Marketing forecast

Single holistic plan

Automated exceptions

Provide total supply chain

visibility

Sales forecast Mfg forecast Consensus forecast t = hours

Supply Planning Process

Make better decisions React immediately to

changes in supply chain

Demand Planning Process

Build your Supply Chain on Information not Inventory

Agenda
APS Overview/ Architecture Oracles ATP flavors Set up
Profile Options Key Concurrent Requests

Core GOP features GOP Computation Diagnostics Q&A/ Feedback

APS Architecture
Trading partners Internal Users

Portals
Internet

Oracle ERP
Oracle ERP 10.7 Oracle ERP 11.0 Oracle ERP 11i

Order Promising Engine Analytical Workspaces A P I S

KPIs

Workflows

Plans

XML EDI Flat file

Advanced Planning

Legacy Systems

Oracles ATP Flavors

Setup via profile INV: Capable to Promise
ATP based on Collected Data (ODS)
Single Level ATP Supports simple supply chain

ATP/CTP based on Planning Data (PDS)

Single Level ATP CTP across supply chain using Sourcing/BOM/Routings Based on ASCP plan in APS Supports complex supply chain model

Collection Based ATP (ODS)

Single Level ATP in requested org/ Global ATP Need to run Data Collection
Complete Net Change

ATP Rule determines:

Supply/Demand to be included Infinite Supply Fence

May use a Supply Schedule, e.g., MPS

Planning Based ATP (PDS)

Promise orders based on:
Material availability Manufacturing capacity Supplier capacity End-Item/Component Substitution Product Family Infinite Supply Time Fence

Manage commitments to key customers

Re-schedule and re-sequence your backlog

Planning Based ATP (PDS)

Global statement of availability
All facilities, material, resources, and suppliers Region-Based Sourcing Summary Based ATP

Allocate available supply

By channel, customer, or product Priority and stealing rules Time phased

GOP Setup
Profile Options ATP Flag Setup Sourcing/ BOM/ Routings ATP Rule
Time Fence supply/demand sources (ODS)

Plan Options Request Date Type Ship/Arrival Sets

Profile Options
INV: Capable To Promise INV: External ATP MRP:ATP Assignment Set MRP: Calculate Supply Demand MRP:Include Substitute Components MSC:ATP Assignment Set MSC: ATP Debug Mode MSC: Enable Allocated ATP MSC: Class Hierarchy MSC: ATP Allocation Method MSC: Enable ATP Workflow MSC: Enable ATP Summary Mode MSC: Plan co-products

Concurrent Request/Set
System Administrator Responsibility
Gather Schema Statistics Create APS Partitions

OM Responsibility For ODS ATP (no APS)

ATP Data Collection Load ATP Summary Based on Collected Data

Concurrent Request/Set
Run from Advanced Supply Chain Planner Responsibility
Planning Data Collection Launch ASCP Plan Create ATP Partitions (Only during upgrade) ATP Post Plan Process Refresh Allocation Hierarchy Materialized View Analyze Plan Partitions

Core GOP Features

Global Availability - Example

Customer1, Site1 Requests Item A
Rank 1 Rank 2

A/Org1 (M1) Assignment Set

Type Item Item A SR SR-A

A/Org2 (M2)
Sourcing Rule(SR-A)
Type Org/Sup Percent Rank Transfer M1 100% Transfer M2 90% 1 2

Cum ATP
Org M1 M2 Day10 80 90 Day11 85 95 Day12 Day13 90 100 100 110

ATP Request Info: Request Qty 100, Request Date Day10, Latest Acceptable Date Day12

ATP Result: Qty 100 from M2 on Day12

Global Availability
Availability Information across warehouses Best option based on
Availability Rank

Sourcing via Region-based rules Computes Delivery LT and Ship/Arrival Date Supports calendar for
Shipping Receiving Carrier/In-transit

Region Level Sourcing

Multiple levels of Geographical Hierarchy Region based Inter-Location Transit times/ ship methods for customer-site and shipping warehouse Enable sourcing/ lead time calculation for new customers Supports flexible hierarchical setup via assignment set/ sourcing rules Profiles
MRP: ATP Assignment Set MSC: ATP Assignment Set

GOP with No Downtime (24X7 ATP)

Zero downtime
No downtime when underlying supply chain plan is refreshed No SO is lost, automatically re-promise SO against new plan

Open, reliable, and scalable

Engine runs inside the database, No memory models to load! Multi-threaded Integrated with OM, Quoting, iStore, etc. Easy integration with legacy systems

Capable to Promise (CTP) - Example

A (Customer 1, Site 1)
1 day lead-time 5 day lead-time

A (Org 1)

A (Org 2)

B (Org 1)

R1 (Org 1)

B (Org 2)

R2 (Org 2)

5 day lead-time

4 day lead-time

B (Supplier 1)

B (Supplier 2)

Capable to Promise (CTP)

Increased order fill rate using extra manufacturing and supplier capacity CTP finds availability using make/buy/transfer info by request date (Backward Scheduling) Forward Scheduling involves look ahead CTP, determines when orders for items can be fulfilled Recursive check against BOM

Allocated ATP
Group/ Prioritize Customers per business need thru
Demand Class Customer Class Hierarchy

Material may be allocated to these groupings using

Pre-defined allocation rules Forecast quantities as honored by ASCP Plan

Stealing of supplies from lower priorities prior to CTP Ensure target supply to key customers

Allocated ATP
Manage commitments to key customers
Allocate availability to more profitable channels

End-Item Substitution
Improved demand fulfillment/ inventory utilization Supports
Single or Bi-directional Substitution, chaining Time phased Substitution, substitution window Rule Based/ Customer Specific substitution

Availability of Requested vs. Substitute Item CTP for Requested vs. Substitute item Exception/ Workflow Notification for Item Substitution Stealing prior to Substitution with Allocated ATP

Product Family ATP

2 Flavors
based on ATPable PF Item Only (Pre-11.5.10) using member item within Aggregate Time Fence and PF item outside Aggregate Time Fence (11.5.10)

Plan must contain PF Item as well Forecasting may be done either for PF or member item CTP will be done on member item, if needed, for timephased PF ATP Supports Allocated ATP

Supplier Capacity
Supplier Capacity may be checked during CTP
defined in ASL Infinite Capacity after last date in ASL

Sourcing Rule/Assignment Set per ASCP Plan Creates Planned Orders for Supplier-Site in ASCP Plan Planned Orders may be released prior to next plan run

Resource Batching
Batch process: Same work on multiple items for a pre-set amount of time by same resource simultaneously, like heat treatment, sand blasting, etc. Resources are constrained by product of time and weight or volume, i.e., capacity multiplied by time. Only for constrained plans with routings Setup: Enable batchable flag, Capacity UOM in ERP Profile: MSO: Global Batchable Flag in APS

Summary Based ATP

Supports enhanced performance with accuracy Profile: MSC: Enable ATP Summary Mode Post-plan process generates summarized data Run Concurrent program periodically for incremental summary

GOP Computation
Netting

Net Supply-Demand for a given day/time period Use surplus from past to cover existing shortage Use future surplus to cover existing shortage Carry over the availability Steal supplies from lower priority tiers for new demands

Backward Consumption

Forward Consumption

Accumulation

Stealing (for AATP)

GOP Computation
Example
Supply Demand Net Qty Backward Forward Cum Qty D1 10 4 6 0 0 0 D2 10 18 (-8) (-2) 0 0 D3 10 6 4 4 2 2 D4 10 7 3 3 3 5

Summary

Pegging Info

31

Supply/Demand Details

32

ATP Period Info

33

Diagnostics Setup
Input Data Profile Options Item Attributes Regions/Zones Sourcing setup Lead Times Infinite Time Fence ATPable Plan Info BOM/ Routings Allocation Method/ Rule/ Percentage/ Priority Resource Batching End Item Substitutes Component Substitutes

Diagnostics Debug/Trace File

Set user profile (MSC: ATP Debug Mode) before invoking ATP/ Scheduling as:
Functional issues: Debug Only Performance: DB Trace Only or Debug & DB Trace

Provide debug (session-<n>) or trace/tkprof file (from DB trace location) Re-set profile to 'None' to avoid any performance issues

Questions/ Feedback

Navneet.Goel@oracle.com

Reference - Acronyms
Industry Standard
ATP (Available To Promise) GOP (Global Order Promising) CTP (Capable To Promise) PTO (Pick to Order) CTO (Configure To Order) ATO (Assemble To Order) CTD (Capable To Deliver) BOM (Bill of Materials) BOR (Bill of Resources)

Oracle Specific
APS (Adv. Planning & Scheduling) ASCP (Advance Supply Chain Plan) ODS (Operational Data Store) PDS (Planning Data Store) LAD (Latest Acceptable Date) AATP (Allocated ATP) ATF (Aggregate Time Fence)