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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 1

Implementing Sales and Operations
Planning (S&OP) Cloud
Key Setups

Kevin Elder
Vivek Srivastava
SCP Product Management

July 2018

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 4

Agenda

1 Overview of key setups

2 Key setup details
3 Troubleshooting
4 Summary of key setups
5 Questions?

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 5

“Supply Planning (Cloud) ran fine with
the same setup.”

“It was a component defined in my

BOR, I did not think it was a problem.”

– Anonymous feedback

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 6

Overview
Operating Plan Value, New Product Vitality,
Desired Result and Revenue and Margin % are available

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Overview
Operating Plan Value, New Product Vitality,
Symptom and Revenue are not available

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Overview
Symptom

No data for supply

planning measures
such as Total
Demand and
Constrained Forecast

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 9

Overview
S&OP Supply Chain Networks

Supplier Mfg Ship-from Customer Supplier Mfg Ship-from Customer

Org Org Site Org Org Zone

Shipping lanes must exist between:

• Suppliers and organizations
• Organizations and organizations
• Organizations and customers
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 10
10
Overview
Key Setups

• Bill of Resources (BOR)

• Approved Supplier List (ASL)
• Sourcing Rules and Assignments
• Shipping Methods
• Item Price and Revenue

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 11

Key Setups
Bill of Resources (BOR)
• Plan at appropriate level of detail for
strategic planning
Tablet
• Focus on critical components and
resources using flat Bill of Resources T1 T2
Tablet

• Ensure supply and capacity can meet

strategic needs C4 C4
C1 C4 C3

C3

C1 C1

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Key Setups
Bill of Resources (BOR) Similar in design to the
Item Structures table
except both components
and resources are modeled

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Key Setups
Bill of Resources (BOR)

• BOR rows required for ‘Make’ items at manufacturing organizations

– For each assembly item and organization combination, specify either a component
item or resource that is consumed in the process. A BOR must have at least one row.
– A subassembly consumed in an assembly item must also be defined as an assembly
item in the BOR.
– The category (parent) level of end items can also be modeled.
• BOR rows not required for ‘Buy’ end items
• FBDI template: ScpBillOfResourcesImportTemplate.xlsm
– https://docs.oracle.com/en/cloud/saas/supply-chain-management/18b/oefsc/FBDIOverview.html

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 14

Key Setups
Bill of Resources (BOR)
• Create / Edit BOR for Simulations
– Create a Bill of Resource in a Simulation
Set to include in Plan Options
– Overlay or augment the collected BOR
– Run the plan to satisfy demand and
generate component item and resource
capacity requirements
• Simplifies the process of managing
bills of resources used for running new
supply simulations
Create and Edit Bills of Resources for Simulations (update
18A) - https://cloud.oracle.com/readiness?offering=scp

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 15

Key Setups
Approved Supplier List (ASL)

• ASL links items to suppliers and supplier sites

• FBDI template: ScpApprovedSupplierListImportTemplate.xlsm
– https://docs.oracle.com/en/cloud/saas/supply-chain-management/18b/oefsc/FBDIOverview.html

• BOR components must be in ASL

• Purchased end items too

Supplier Mfg Ship-from Customer

“It was a component defined in my BOR, I did not think it was a problem.”
Org Org Site
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Key Setups
Approved Supplier List (ASL)

• <insert>

Verify the Suppliers table

contains Supplier Items
for the components used
in your S&OP plan.
- In Plan Inputs
- In an open plan tab

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Key Setups
Sourcing Rules and Assignments

• Shipping lanes in S&OP Cloud allow for material flow between Suppliers,
Organizations, and Customers
• There must be sourcing rules and sourcing assignments to:
– buy component items from suppliers
– make assembly / subassembly items at organizations
– transfer assembly / subassembly items from organizations
– transfer end items from organizations to customers

Supplier Mfg Ship-from Customer

Org Org Site
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 18
Key Setups
Sourcing Rules and Assignments
• Assignment Set is required
• Define sourcing at detailed or aggregate levels
• Only sourcing rules of rank 1 will be considered
• When defining category level sourcing assignments, the assignment level cannot be
lower than the level defined in the plan in the respective dimensions
Plan Level: Customer Dimension
Site Zone
Plan Level: Item Item or Category Item or Category
Product Site or Zone Zone
Dimension Category Category
Category
Site or Zone Zone

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 19

Key Setups
Sourcing Rules and Assignments

• For additional details on setting up assignment sets…

– Specify Different Item Catalogs for Different Sourcing Rules (update 18A) - https://cloud.oracle.com/readiness?offering=scp

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 20

Key Setups
Sourcing Rules and Assignments

• There must be sourcing rules and sourcing assignments to buy component

items from suppliers

Assignment Set - Supplier Sourcing Supplier Mfg Ship-from Customer

Org Org Site
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 21
Key Setups
Sourcing Rules and Assignments

• There must be sourcing rules and sourcing assignments for assembly /

subassembly items to ‘make at’ and ‘transfer from’ organizations

Supplier Mfg Ship-from Customer

Assignment Set - Organization Sourcing
Org Org Site
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 22
Key Setups
Sourcing Rules and Assignments

• There must be sourcing rules and sourcing assignments to transfer end

items from organizations to customers

Supplier Mfg Ship-from Customer

Assignment Set - Customer Sourcing
Org Org Site
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 23
Key Setups
Shipping Methods

• Shipping Methods are required when defining ‘Transfer from’ sourcing

rules between:
– Organizations
– Organizations and customers

Shipping Method is the

combination of Carrier +
Mode of Transport +
Service Level.

Shipping Method is
required.
Sourcing Rule – ‘Transfer from’ Organization to Customer

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 24

Key Setups
Shipping Methods
Interlocation Shipping
Networks using Shipping
• Shipping Networks need to use a Shipping Method Methods between
locations. For example,
from organization to
customer zone.

Supply Network Model – Interlocation Shipping Networks

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 25

Key Setups
Item Price and Revenue
• Revenue is calculated by using Item List Price (Selling Price in Items table)
• Price Lists can still be included in plan options
• Price should display the Price List value (if primary)
• However, the Adjusted Price will reflect what the engine is using
Selling Price in Items table is used for
calculation of Revenue

For Item AS6647331, Selling Price is 299

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Key Setups
Item Price and Revenue
Revenue=Constrained Forecast*Final Price

For Item AS6647331 and Customer Site 1032:

Revenue=10,617*299=3,174,483

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 27

Troubleshooting
Review Plan Messages

• Check the Review Plan Messages table for warning messages related to
possible data setup issues

Make note of the item

and organization
combinations.

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Troubleshooting
Review Plan Messages

• Component item
– Check ASL (Suppliers table) and sourcing assignment from supplier to organization
with ‘Buy from’ sourcing rule (Assignment Set)
• Subassembly item
– If modeled as component in another assembly item and manufactured then must
check for a BOR assembly (Aggregate Bill of Resources table). Also check for sourcing
assignment at organization with ‘Make at’ sourcing rule (Assignment Set).
– If purchased then same checks as component item

“It was a component defined in my BOR, I did not think it was a problem.”

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 29

Troubleshooting
Review Plan Messages

• End item
– For manufactured end item, check for a BOR assembly (Aggregate Bill of Resources
table) and for sourcing assignment at organization with ‘Make at’ sourcing rule
(Assignment Set). Refer to prior slide for items that are component items in the BOR.
– For purchased end item, check ASL (Suppliers table) and sourcing assignment from
supplier to organization with ‘Buy from’ sourcing rule (Assignment Set).
– For both manufactured and purchased end items, check for sourcing assignment at
organization with ‘Transfer from’ sourcing rule (Assignment Set) from organizations to
organizations and to customers. Check for a Shipping Method used in the ‘Transfer
from’ sourcing rules and they exist in the Interlocation Shipping Networks tab (Supply
Network Model page) between locations.
“It was a component defined in my BOR, I did not think it was a problem.”

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Troubleshooting

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 32
Troubleshooting

Set Usage Quantity to

0 and Save the data

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 Run simulation plan:
Plan Supply without
data refresh and check
S&OP output

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Summary
Key Setups

• Bill of Resources (BOR)

• Approved Supplier List (ASL)
• Sourcing Rules and Assignments
• Shipping Methods
• Item Price and Revenue

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 35

Summary
Key Setups

• ‘Make’ end item

– Model assembly item in BOR and ‘Make at’ sourcing
– BOR components require ASL and ‘Buy from’ sourcing
– ‘Transfer from’ sourcing for organizations and to customers
– ‘Transfer from’ sourcing rules require shipping methods

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 36

Summary
Key Setups

• ‘Buy’ end item

– No need to model in BOR
– Require ASL and ‘Buy from’ sourcing from suppliers
– ‘Transfer from’ sourcing for organizations and to customers
– ‘Transfer from’ sourcing rules require shipping methods

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 37

Summary
Key Setups

Data for supply

planning measures
such as Total
Demand and
Constrained Forecast

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 38

Questions?

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 39

Safe Harbor Statement
The preceding is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 40

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 41