Fusion - Inventory Management

Inventory Management
SCM Cloud and Inventory

Overview
SCM Cloud Implementation Workshop

Agend
a
• SCM Cloud & Inventory
Overview
2 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Content
Oracle Supply Chain Management
Cloud
A comprehensive suite of Supply Chain &
Manufacturing
applications with exceptional user
experience, digital by design and fully
integrated with
the rest of the Oracle Cloud family.
SCM Cloud helps you bring new products

to market and effectively manage
procurement, manufacturing, inventory,
and logistics.

Content
Oracle SCM Cloud Product
Offerings
Supply Chain
Planning
Product Lifecycle Inventory & Cost Maintenance Quality
Management Management Management Management
Procurement Manufacturin Order Logistics

g Management
Product Master Data

Management
Globalizations & Localizations

Mobile Analytics/Dashboards Integrations Internet of
Things

Content
Inventory
Management
Key Capabilities Complete physical and financial
• Materials Management management
• Cost Management of goods across the Supply Chain
• Supply Orchestration
• Supply Chain Financial
Orchestration
Business Benefits
• Decrease logistics & inventory
costs
• Improve inventory cost
visibility & accuracy
• Improve warehouse efficiency
• Streamline financial &
physical material flows
Content
Materials
Management
Manage
Master
Data
Receiving Maintain
Manage
Shippin
Inventor Availabilit g
Put y Pack
Receiv Inspec y Reserv Pic
Awa Accuracy Inventor &
e t e k
y y Ship
Manage
Replenis
Material
h
Inventory Request
s

Content
Cost
Management
Cost Transaction Cost Accounting Reporting
Plannin Capture Processing
g
• Manufacturing • Landed cost • Transaction • Receipt • External regulatory

cost • Receipts costing accounting • Product margins
estimation • Pre-accounting • Cost accounting
• Inventory • Business Intelligence
• Cost rollup • Error handling • Inventory
• Expenses • Accrual
• Standard • Audit trails valuation
• Shipments reconciliations
cost update • Supplier accruals
• Returns • Standard,
average & FIFO • Transfer to GL
• Work orders
• Budget
checking &
encumbrance

Content
Supply
Orchestration
Provides advanced fulfillment support to optimize your flow of
goods,
reduce fulfillment costs, and increase your overall margin.
Key Flows
Enabled
Configure Contract
Back to Back
to Manufacturin
Order g
Internal Material Min-Max Planning

Transfers Planning Requests

Content
Supply Chain Financial
Orchestration
Separate physical
• Support complex, global corporate
movement and structures without compromising supply
financial chain efficiency
ownership
• Parties involved and nature of

Model Supply
trade relationships
Chain • Transfer pricing rules
Financial • Intercompany documentation
Flows and accounting
• Monitor and audit financial

Monitor and orchestration transactions
Report

Content
Building Blocks of Supply Chain Management

Agenda
• Manage Inventory Organizations, Subinventories

and Locators
• Setup Unit of Measures
• Maintain Calendars
• Manage Items and Structures
• Manage Catalog and Categories

1 Content
Enterprise Structure
Legal
Reporting
Units
Inventory
Enterprise Legal Business Units Departments
Organization
Entities s
Calendar, Currency,
Ledger Accounting Method and Chart of Accounts
• An enterprise is a collection of legal • A business unit is an organization

entities sharing common control and within an enterprise that performs one or
management many business functions that can be rolled
up in a management hierarchy
• A legal entity is a real-world enterprise
structure that has property rights and • Use business units for:
obligations that can be enforced through – Processing Transactions
courts of law – Management Reporting
• Legal entity is responsible for – Security of
– paying and collecting transaction-based taxes; Transactional Data
– Reference Data
– submitting detailed transaction and accounting
reports to the authorities; Definition and Sharing
– complying with local regulations applicable to • Every employee is associated with

financial processing and reporting Legal Entity and Business Unit
Content • Department has one or more workers
Organization Structure
An inventory organization is a logical or physical entity in the enterprise

that is used to store definitions of items or store and transact items.
Organization
• Logical entity - Item Master Organization, Validation Organization
• Physical entity – Manufacturing Facility, Warehouse, Distribution
Center
A physical location within the organization to stock the
•products.
Group inventory – Raw Material, Finished Goods, Defective material,
WIP, Inspection
Subinventories
• Create:
– Storage subinventories – used to store material and is reflected in on-
hand
– Receiving subinventories – optional, temporarily storage for material
before placing in a storage subinventory. Material is not reflected in on-
hand quantity.
A locator is a physical area within a
subinventory where you store material.
Locators
• Subinventory may optionally contain locators
• Create multi segment locators – Row, Rack, Bin Aisle
etc.
• Locator Control :
– Dynamic
13 Copyright © 2023, Oracle and/or its affiliates | PTT Created –locators Previously defined locator
Content
Implementation Considerations
Create Multiple Organizations vs One Organization – Multiple Subinventories, referential

points:
Multiple Multipl
One Org –
Orgs More than one Business Subinventories
e
Same business function in
Function in a single multiple facilities
facility. Eg: MFG and
Distribution functions Eg: Only distribution
function
Same business function but

Same business function, in
multiple distinct locations,
locations which are in the
processes and geographies
vicinity, similar processes
with need for explicit
controls
Unique Accounting, Financial
needs, Ownership (3PLs, Logical, Physical grouping of
Contract Manufacturers, material without specific
External entities etc) and needs from financial
specific client requirements controls

Content
Types of Organizations
ITEM ORGANIZATION
Considerations:
Item organizations contain only • Intended for use as master organization for an enterprise
definitions of items. Use item • Item organizations contain only definitions of items
organizations in implementations • Material storage or movement is not physically or financially
when the storage or movement of tracked
inventory does not need to be • Usage can be changed to inventory management
physically or financially tracked. • Ideal for deployments where inventory management may not
be installed
INVENTORY ORGANIZATION:
Considerations:
Inventory organizations are used to • Use inventory organizations when the storage or movement of
store and transact items. An inventory needs to be physically and financially tracked. Inventory
inventory organization is associated organizations can represent facilities such as manufacturing
with a business unit, legal entity, and centers, warehouses, or distribution centers.
primary ledger. • Requires financial and accounting setups
• Parameter definition, including lot, serial number, and item
sourcing rules

Content
Item Organization vs Inventory Organization
Business Feature Item Management Inventory Management
Financial and Accounting Information No Yes
Perform Inventory Transactions No Yes
Manage Item Quantities No Yes
Lightweight Organization Yes No
Edit Usage of Organization Yes No

Content
Demo : Item Organization
Navigate to Setup and Maintenance > Product Management > Item Organizations > Manage Item
Organizations

Content
Demo : Inventory Organization
Navigate to Setup and Maintenance > Product Management > Inventory Organizations > Manage
Inventory Organizations

Content
Demo : Inventory Organization

Content
Item Grouping Behavior
Feature Description Attributes
Definition Organization An item definition organization is an item Can be updated

organization that stores the item attribute
values.
Reference Organization A reference organization is an item Read only
organization that collects the item attribute (except packs)
values from the item definition organization. Item
is editable only in the definition organization.
• Reduction in the data migration time

• Reduction in item data volume for large, complex organizations
Benefits of • Reduction in data maintenance effort. Any attribute change to a
Reference definition
Organization organization is available to all the reference organizations automatically.
• Improvement in the performance of item query, keyword searches,
and transactions for large, complex organizations
• Reduction in Global Order Promising collections delays and size
limits
Reference - https://download.oracle.com/ocomdocs/global/apps_18C/scm/Use_Item_Definition_Grouping/index.html
Content
Item Grouping Behavior – Use Case
Attributes Atlanta Inv Org Seattle Inv Org
Ite Purchasable Yes Yes

m
Customer Ordered Yes Yes
Item Grouping Behavior - Definition Item Grouping Behavior - Reference

Attributes Atlanta Inv Org Seattle Inv Org Attributes Atlanta Inv Seattle Inv Org
(Def – Atlanta) (Def – Org (Def – (Reference – Atlanta)
Seattle) Atlanta)
Purchasable Yes No Purchasable Yes Yes (Non – editable)
Customer Yes No Customer Yes Yes (Non – editable)
Ordered Ordered
Table Table
view
Org Items EGP_SYSTEM_ITEMS_B EGP_ITEM_ORG_ASSOCIATIONS Org Items EGP_SYSTEM_ITEMS_B view
EGP_ITEM_ORG_ASSOCIATIONS
Atlanta 10000 10000 rows 0 rows Atlanta 10000 10000 rows 0 rows
Seattle 10000 10000 rows 0 rows Seattle 10000 0 rows 10000 rows

Content
Organization Conversion
Convert a Definition You can't convert a definition organization to a reference organization if any of the
Organization to a following conditions are met:
Reference  The revision code or effective date for an item are different in the reference and
Organization definition organizations
 The supplier-organization association for an item is different in the reference and
definition organizations
 The item-category assignments for organization-controlled catalogs are different in
the reference and definition organizations
 The status of change order for an item is anything other than Completed or Failed
 The structures are common from an organization other than definition
organization.
 The definition organization is a manufacturing plant
Convert a Reference You can edit your items in a definition organization only. If you want to edit any items in a
Organization to a reference organization, then you have to first covert the reference organization to a definition
Definition Organization organization. After the conversion, you can maintain a copy of the item record in the new
definition organization. You initiate the conversion through a scheduled process and there
are no validation checks for the conversion.
Change a Definition You can convert a definition organization to a reference organization only after you have
Organization of an realigned all its associated reference organizations to another definition organization. You
Associated can also convert all the associated reference organizations to a definition organization.
Reference
Organization
Content
Agenda
• Manage Inventory Organizations, Subinventories and

Locators

Content
Unit of Measure Overview
UOM
Each
UOM Class Base UOM
Box of Belongs to Quantity Contains
Each
4 a UOM a Base
Class
or Count UOM
Doze Box of
n 8
Base UOM is used

A unit of measure (UOM) is a Unit of measure
to perform
value that specifies the quantity classes represent
conversions
of an item. Units of measure groups of units of
between units of
are used by a variety of measure with similar
measure in the
functions and transactions to characteristics.
class. For this
express the quantity of items. Each unit of measure
reason, the base
belongs to a UOM
UOM should
class.
represent the other
UOM in the class,
24 Copyright © 2023, Oracle and/or its affiliates | PTT Created and be the
Content
Unit of Measure Overview
A unit of measure standard conversion defines the factor by which the unit of
Standard measure
is equivalent to the base unit of measure, that you defined for the unit of measure
class.
conversion
Defining a unit of measure standard conversion lets you perform transactions in units
other than the primary unit of measure of the item being transacted. The standard
unit of measure conversion is used for an item if an item-specific unit of measure
conversion hasn't been defined.
A UOM intraclass conversion specifies the conversion between a unit of measure,

Intraclass the From UOM, and the base unit of measure of the same class.
conversion
A UOM interclass conversion defines the conversion between the source base unit of
measure ("From Base UOM") in one unit of measure class ("From Class") and the
Interclass conversion destination base unit of measure ("To Base UOM") in a different unit of measure
class ("To Class").

Content
Unit of Measure – Use Case
Vision is a distributor shipping out beverages which are typically shipped in a Case of 24, Box of 12
or 6. There are a few variants of the fruit flavored beverage cans which are always shipped out in
cases which have 16 units. For each UOM there is need to also setup the weight conversion.
UOMs Intraclass conversion
Fruit flavored
beverage UOM =
Case
Case of Box of 12 Box of

6  Case has a standard conversion of 1 Case = 24 Ea
24
 Create UOM with Quantity class which has a base UOM of Each  For this item create Intraclass conversion from Case to
 Create UOMs and setup UOM standard conversions with Base UOM Ea. 1 Case = 16 Ea
Each
Interclass conversion
Item From Base UOM UOM Class Conversion To Base UOM To UOM Class
Iced Tea Case Case Quantity 1000 Gram Weight
Orange Juice BX 12 Box of 12 Quantity 500 Gram Weight

Content
How Item Level UOM Conversion Settings behave?
When defining an item, the type of unit of measure conversion to be used can be
specified.
Item Setup
Item Only uses unit of measure conversions unique to this item. If none exist, you can
Specific
only transact this item in its primary unit of measure.
Uses standard unit of measure conversions for this item if an item-specific

Standard conversion is not available.
Uses both item-specific and standard unit of measure conversions. If both exist for
Both the
same unit of measure and item combination, the item-specific conversion is used.

Content
Agenda

Locators

Content
Schedule Overview
A Schedule (Calendar) is comprised of Workday pattern and exceptions. Workday

pattern is comprised of Shifts.
Shift Workday
pattern
A shift is a period of time, A workday pattern is a collection

typically expressed in hours, of shifts for a specific number of
and it can be defined by a start days. You can create time, A schedule is defined by a
time and an end time, or a duration, and elapsed workday start date, an end date, and a
duration. A shift can be for a patterns sequence of workday
work period or an off period. Schedul patterns to be followed
You can create time, duration, e
between those dates. A
and elapsed shifts schedule can also contain
exception dates that override
the availability of resources to
which the schedule is
assigned.
Exceptions
An exception is a record of a date

that overrides the availability of a
resource to which a schedule has
29 been assigned.
Copyright © 2023, Oracle and/or its affiliates | PTT Created
Content
Calendar Features
Calendars are global and shared.

 Calendars may be assigned to any business object.
 Exceptions made to a calendar affect every object.
Calendars are time agnostic.

• The start and end times for a workday are for the business object that uses
it.
• A warehouse in New York and another in Dublin can share the same
calendar start and end times.
• Working time is local to the assigned business object.
• An existing schedule can be extended by providing a new end date
further in the
future.

Content
Agenda

Locators

Content
Items
Items are used to represent products and services that you sell or transact and components that
make up your products and services.
• Organization • Item Attributes

• UOM • Item Revision
• Item Class • Item Association
• Life Cycle • Item
Phases Relationships
Prerequisites Item
s
Catalogs
Structure
and
s
Categories
• Structure • Manage
Type Categorie
• Create from s
Copy, • Manage
Common or Catalog
Create New
Content
Item Management
Product Information Management work area can be used to manage a broad range of common
tasks related to Item creation and maintenance.
Item Management Data Governance Data Consolidation

• Define Product • Manage Product Revisions • Manage Imports
• Manage Product Specifications • Manage New Product Definition • Manage Import Batches
• Manage Product Relationships and Approval • Manage Supplier Collaboration
and • Manage Product Change Orders • Manage Trading Partner Products
Associations • Manage Product Rules • Standardize Product and Service
• Manage Product Packs Data
• Manage Product Structures
• Manage Product Attachments
• Manage Product Revisions
• Manage Catalogs
• Manage Product Security

Content
Create Items
Creation options:
• UI
• FBDI
• Web services
ADFDi – Data
Singl
•
correction
Creat e Copy Setup •
during import
Mass changes
e Securit
Multiple
Items Item y
s
• Apply Templates
• Assign to Organizations • Public Items can be
• Create Relationships Copy following: created in Item class
• Add Attachments • Attributes, where public check box is
• Associate Catalogs and Relationships, enabled. All internal users
Categories Structures, Organization have access to Public
items
• Setup attributes – Main, Assignment, • Item Data security can
Operational, Additional Attachments, Catalog be setup for Private
and Transactional Category Assignments items

Content
Item Terminologies
Main Attributes- Describe essential Related Items – A relationship between

aspects of the item. two items
Relationships
Attributes
Operat ional Attributes – They determine Trading partner Item Relations - A

the behavior of the item wrt other relationship between an item and a
applications like PO, OM etc Trading Partner Item, such as a
customer item, a competitor item, or a
manufacturer part number.
Additional attributes - are based on
descriptive flexfields and are used to
capture detailed information about an GTIN - relationship between an internal
item item and Global Trade Item Number.
User defined attributes and groups – Source System Item Relationships -

are based on Extensible Flexfields relationship between an internal item and
source system item that enables you to
map and identify items that have been
Transact ional Attributes - These consolidated from multiple source
attributes are defined at the item class systems into a single master item.
and their attribute value is captured at
the time of a transaction by
downstream applications Item Cross-References - Cross-reference
types define relationships between items
and entities, such as old item numbers.
Content
Demo : Create Item
Navigate to Product Management > Product Information Management > Tasks > Create Item

Content
Agenda

Locators

Content
Catalogs and Categories
A catalog is a collection of categories that you use to classify items. You can organize the
categories into a hierarchy that represents a taxonomy.
Catalog - A catalog is a collection of categories

that are organized to define a classification of
items. The top most level of a catalog is the
catalog root. All categories for the first level in
the category hierarchy are associated with the
catalog root through the catalog category
association component.
Category - A category is a component of a

catalog that represents a set of items. You
can associate a category to a catalog through
the catalog category association.

Content
Types of Catalog
Functional Catalogs Product Catalogs
• Functional area catalogs are • Product catalogs are used to

primarily used to support Oracle support additional processes and
Fusion application internal integration with external
processes applications
• These are created and managed • These are created and managed in
from Functional Setup Manager the PIM Work Area using the
using the Manage Functional Manage Catalogs task
Area Catalog task

Content
Demo : Manage Functional Catalogs
Navigate to Setup and Maintenance > Product Management > Catalogs > Manage Functional Area Catalogs

Content
Key Considerations
The following are some of the important considerations during implementations.
 Allow Multiple Item Category Assignment – Setup at the Category level

 Controlling Item Assignment - You also control item assignment by selecting the value
of the Controlled at check box on the Edit Catalog page. If you select the Master
Level value and the organization context is a master organization, then the assigned
items are automatically assigned to all child organizations that are associated with the
master organization.
 Category Moves – Move the category to a new parent
 Category Sharing - Category sharing allows the reuse of categories or a category
hierarchy across catalogs.
 Direct Sharing - Direct sharing means directly associating the category to the catalog.
Direct sharing allows a category to have multiple instances in multiple catalogs.
 Sharing by Reference - Sharing by reference means adding a category by reference into
the catalog. Sharing by reference allows a category and the items assigned to that
category to be added to one or more catalogs. If the category is a parent category, the
complete hierarchy for that category is shared. The shared categories and assigned items
are read-only in the catalogs where they are added.

Content
Manage and View
Inventory
SCM Cloud Implementation

Workshop
Agenda
• Manage Item Availability

• Reservations

Content
Manage Item Quantities
Navigate to Supply Chain Execution > Inventory Management > Tasks > Manage Item Quantities
View “Available to Transact”
and “Available to Reserve” On Hand,
quantities Receiving,
andInbound
quantitie
s
Drill down to
specific
subinventories and
locators
View Item, Lot,

Number,
Serial Inbound,
Release 21C and Consigned
details
Link to an External Page fr
om Manage Item Quantities
by Dynamically Passing Att
ributes

Content
Material Locations and Availability
Material
Locations
Inboun Receivin On
d g Hand
Availabilit
y
= - -
On Reservation Pending
Hand s transaction
s
Content
Demo Use Case
Check on the current stock situation for a particular
item.

Content
Business Scenario
Quantity Type On Hand

Total 997
Available to Transact ?
Available to Reserve ?

Content
Business Scenario
Quantity Type On Hand

Total 997
Available to Transact 996
Available to Reserve 995

Content
Actions available from the Manage Item Quantities Page
Request
Request Request
Miscellaneou
Movement Movement
s Transaction
Request Request Issue
Transfer
Request Manage
Edit Lot Grade
Transfer Material
Order Status
Request View Item

View Supplier
Cycle Cross
Lots
Count References

Content
Agenda
• Manage Item
Availability
• Reservations

Content
Reservations
Reservation is a link between a supply document and a demand document.

It represents a guaranteed allotment of material to a specified demand
document.
Supply Demand Types

Types
• On-hand • Sales Order
Quantity • Transfer Order
• Purchase • Shipment
Requisitions Reservatio Request
• Purchase Orders
n

Content
Review Item Supply and Demand
The Review Item Supply and Demand

user interface allows Warehouse
Managers and Inventory Planners to:
• Plan for the resources
• Make informed decisions for
maintaining the inventory levels

Content
Demo Use Case
Create a manual reservation to block quantity for a critical
customer.

Content
Navigate to Supply Chain Execution > Inventory Management > Tasks > Manage Reservations and Picks
Create Reservations > Create User-Defined Demand

Content
Material Request to
Delivery

Workshop
Agenda
• Manage Material
Requests
• Process and Ship Material
• Record Delivery

Content
Inventory Transactions
An Inventory Transaction is an item movement into, within, or out of inventory. Every material
movement has a corresponding set of accounting transactions that Oracle Fusion Cost
Management automatically generates.
Inventory transactions can be processed with or without supporting documentation.
Without Documents With Documents

• Miscellaneous Transactions • Purchase Order Receipts
• Subinventory Transfers • Movement Requests
• Direct Interorganization Transfers • Transfer Orders

Content
Miscellaneous Transactions
• Transactions used to issue material to, or

receive material from, general ledger
accounts into an inventory organization.
Business Scenarios
• Load on-hand balances (conversion)
• Receive items that were acquired
without purchase orders
• Issue items to individuals,
departments, or projects
• Scrap items by issuing them to
scrap accounts
• Enter adjustments and Navigation: Supply Chain Execution > Inventory
corrections to system quantities Management > Create Miscellaneous Transaction
due to theft, vandalism, shelf-
Release 21C
life expiration, or inaccurate Improved Item Search capabilities
record keeping

Content
Overview of Material Transfers
SOURCES
Web
Transaction Type Description INV UI Other FBDI
Service
Transfer material within your current
✅ ✅ ✅
Subinventory Transfer inventory organization between
subinventories, or between locators within
the same Subinventory
✅ ✅
Request and execute the movement of Min-
Movement Request Max
material within an inventory
organization. PAR
✅ ✅ ✅
Interorganization
Transfer material between inventory
Transfer
organizations.
Back-to-
Automatically or manually request and execute Back Min-
✅ ✅ ✅
Internal the transfer of material within or between Max PAR
Material inventory organizations for intraorganization, SC
Transfer interorganization, and intercompany flows. O
SSP
SC
P
During picking and prior to staging for
✅ ✅
Overpick and Move shipping, transfer material in excess of
61(20D onwards)
Copyright requested
© 2023, Oracle and/or its picked
affiliates | PTT Created quantity to an
Content
Subinventory Transfer
• Transactions used to transfer material

within an organization between two
subinventories, or between two locators
within the same subinventory
Business Scenarios
• Transfer from bulk storage
subinventories to front loading
picking locations
• Rebalancing inventory
locations for space
Navigation: Supply Chain Execution > Inventory
management Management > Create Subinventory Transfer
• Transferring between asset
and expense
subinventories
• Transferring between tracked
and non
tracked subinventories

Content
Movement Request
• Requests to move material within an

inventory organization with documentation
• Types of movement requests:
• Requisition movement requests
• Replenishment movement requests
• Pick Wave movement requests
Release 22D Navigation: Supply Chain Execution > Inventory

Use Approvals for Management > Manage Movement Requests
Tools > Scheduled Process
Movement Requests Picks > Confirm Pick Slips
Use Approvals for Movement 2. Run the Print

1. Create a 3. Physically
Movement 4. Confirm pick
Requests – Readiness Training Video movement
Request
move
slips
request material
Pick Slip
Report

Content
Interorganization Transfer
• Immediately transfer material

between inventory organizations
Interorganization Direct Shipment

• Move inventory directly from a
shipping organization to a destination
organization.
Interorganization In-Transit Shipment
• Material is moved to in-transit inventory
before being received at the destination.
Setup : Manage Interorganization Parameters
• Receipt and put-away is performed at the Navigation: Supply Chain Execution > Inventory
destination inventory organization Management > Create Interorganization Transfer
Change to Org Destination > Receipts > Receive Expected

Shipment

Content
System Configuration – Restrict the Movement/Usage of Inventory
Material Status enables you to Material

control the movement and usage of Status ag
Us
material for portions of your e
inventory.
Profile Option:
Material Status Availability
Enforced
Review Material Status Usage:
Material Status Where Used
Report
Disallowed
Transaction
s
Allowed
Transactions

Content
Material Transfers – Summary/Cheat Sheet
Inter Inventory Expense Sales Creatio

Transaction Intraorg Interorg Reserve Pick Ship Receive Return
compan Destinatio Destinatio n
y n n Orde options
r
via
✅ ✅
Subinventor non- FBDI
y Transfer X X asset X X X X X X Web Services
subs
only
✅ ✅ ✅ ✅
Movemen Min-Max
t Request X X X X X X X Web
Services
✅
via
✅ ✅ ✅
Interorganization non- FBDI
Transfer X asset X X X X X Web Services
subs
only optional
Requisitio
✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅
n Min-
Internal Material
Max
Transfer
Planning
optional FBDI
Web
Services
✅ ✅
Optional
Overpick
and Move X X X X – part X X X X Web Services
of
picking

Content
Agenda
• Manage Material
Requests
• Process and Ship
Material
• Record Delivery

Content
Shipping Process Flow and User Roles
Order
Warehous Fulfillment, Reserve Manage and
e Process Inventor Release Pick
Manager Sales Order y Waves
Warehous Pick Confirm

e Loads
Operator
Communicate Shipping Order

Messages and Updates Fulfillment,
with Trading Partners Process Bills
Process and Receivable
Shippin Confirm
Shipments Financial Control
g Agent Capture Shipping
and Reporting,
Costs and Cost to
Record Cost
Charge
Accounting

Content
Agenda
• Manage Material
Requests
• Process and Ship
Material
• Record Delivery

Content
Receiving and Receipt Routing Options
Supplier Inventory
Shipment Destinatio
s n
Internal
Receiv Put
Shipment
e Away
s
Customer Expense
Inspec
Returns Destinatio
t
n
Direct Delivery (1 Step) Inspection Required (3 Steps)

• Goods are received and delivered in one step • Goods are received.
• Inspection either accepts or rejects the goods.
Standard Receipt (2 Steps) Quality results can be entered at this time.
• Goods that are accepted are put away in the
• Goods are received in one step. third step. Goods that are rejected are returned to
• Put-away is performed in the second step. the supplier or scrapped.

Content
Inventory
Management
Replenish Inventory

Workshop
Agenda
• Min Max Planning

• Min-Max Use cases

Content
Min-Max Planning Overview
Use min-max planning to maintain inventory levels for all items or for selected
items. Min-max planning requires specification of minimum quantity and
maximum quantity inventory levels for the items. When you print the Min-Max
Planning report, the inventory level for an item, on-hand quantities plus on-order
quantities, is considered.
Set Minimum
Perform Min-Max planning at
Inventory Organization level or Subinventory level
Level for the
item and (on-hand quantity – demand) + (quantity on order) < minimum
quantity
reorder
when total available quantity
Set Maximum for reorder quantity = maximum quantity - total available
Inventory quantity
Level for the
item Quantity on order - is the sum of purchase order quantities, requisition quantities, and
where in- transit shipments and includes work orders as supply at the organization level.
Quantity on order represents supplies that you have not yet received in your
organization.
ESS Job – Print Min Max Planning and Demand channels include Sales orders and Transfer order sources
Report
Content
Attribute Settings for Min-Max
Planning
• Min-max minimum
quantity
Attributes you define for
items, item • Min-max maximum
subinventories, or quantity
inventory
organizations: • Minimum order quantity
• Maximum order quantity
• Fixed lot multiple
• The preprocessing days and processing days are used to set
the need by date on purchase order requests.
• The postprocessing days is used during min-max processing
Lead time
when determining the supply date cutoff for purchase orders.
attributes The purchase order supply is included as a source of supply
when calculating the total available quantity if the due date plus
the postprocessing days is less than the supply cutoff date run-
time parameter entered when initiating min-max processing.

Content
Replenishment Sources
Organization Level Subinventory Level
Planning Planning
Supply Sources Supply Sources
 Purchase Requisition for Buy items  Purchase Requisition for Buy items
 Work Orders for Make items (Build in  Movement Requests
WIP  Transfer Orders (Transfer enabled)
enabled)
 Transfer Orders (Transfer enabled)
* Transfer Order or Movement
Request generation rule:
 If the source type
is Organization, and you are
using the same organization
to which the subinventory
belongs, then min-max
planning generates an
intraorganization transfer
order
 If the source type is
Content Subinventory, then min-max
Supply and Demand
Sources
 Inventory Sources of Supply and Demand
Inventory on-hand balances are always used in replenishment calculations. In addition, inbound
and outbound transfer order supply and demand can also optionally be included as available
supply (inbound) and as existing demand (outbound) in replenishment calculations. When
performing min- max processing at the subinventory level, movement requests for sub-inventory
transfers and account issues are also included in min-max supply and demand calculations.
 Purchasing Sources of Supply and Demand
Current on-order supply on purchase orders and requisitions can optionally be included as
available supply in min-max calculations.
 Order Management Sources of Supply and Demand
Current demand on sales order can optionally be included as available supply in min-
max calculations.
 Manufacturing Sources of Supply and Demand
Current on-order supply on work orders can optionally be included as available
supply in min-max
calculations. In addition, component demand on these work orders can optionally be
included as demand in min-max calculations having the effect of reducing the available
balance in the organization.
Content
Agenda
• Min-Max Planning
• Min-Max Use cases

Content
Use Case 1 - Sourcing using Movement
Request
Vision is a distributor who procures Laptops from a Supplier into Stores and moves it to other
subinventories in the organization. Vision needs to replenish Completed Subinventory using Min-
Max.
Demo FG
Shipped Receive Subinventory
by d in
Supplier Stores
Lapto subinventor
ABC Distributed
p y to other Completed
Corp subinventori Subinventory
es
Needs to use
Min- Max to
Setup Tasks
replenish from
 Manage Subinventories and Locators Stores
Item Laptop
> Manage Item Subinventories
Min Quantity 1
1. Run “Print Min-Max Planning Report” Max Quantity 50
2. Movement request is created visible in Inventory work area. Complete
the movement request pick to get the supply Fixed Lot Multiple 7
Source from Stores
Content
Considerations - Demo Use
Case
Scenario Remark
s
What would be the Sourcing Type for maintaining Min
Supplier, Organization or
Max in Stores Subinventory?
Subinventory?
You run the “Print Min-Max Report” and it creates the

Movement Request for replenishment. Another user Would there be duplicate Movement Requests
also runs the same report with the same parameters. created?
The movement request is created for replenishment But there is no onhand in Stores for the required
from reorder
Stores to Completed subinventory. quantity. What can be done?
You have setup the Min Max quantity attributes in the

Would the system try to check for possible
Item- subinventory UI but the Sourcing was left
sources?
blank.
You setup the Sourcing Type to Supplier. But the Supply Check the Procurement attributes are correctly setup for
Order errors out. the
items
Content
Use Case 2 – Source from
Supplier
Vision is a distributor who procures Laptops from a Supplier into Stores and moves it to other
subinventories in the organization. Vision needs to replenish Completed Subinventory using Min-
Max.
FG
Shipped Receive Subinventory
by d in
Supplier Stores Distributed

Lapto to other Completed
ABC subinventor Subinventor
p subinventori
Corp y es y
Item Laptop Needs to Setup Tasks

use Min-  Manage Subinventories and Locators > Manage Item Subinventories
Min Qty 50
Max to
Max Qty 200 replenish 1. Run “Print Min-Max Planning Report”
Source from Supplier ABC Corp Supplier 2. Run “Process Supply Chain Orchestration Interface”
3. Review the supply order for the item in “Manage Supply Lines” in Supply
Chain
Orchestration
4. Note work and
the requisition areaconvert to PO or if BPA exists PO gets auto
created. Receive the PO to get the supply
Content
Use Case 3 – Source from Work
Order
Vision also assemble Laptops in the Atlanta facility. They want to ensure enough quantity is
always
available at the organization level.
Assemble
d by Item Laptop
Min Qty 50
Max Qty 200
Source from Organization
Needs to
Atlanta
Lapto use Min- Organization Atlanta
MFG Max to
p
Facility replenish at
Org level
Setup Tasks
 Manage Items > Planning Specifications
 Item should be Make and Work Definition setup should exist
1. Run “Print Min-Max Planning Report”

2. Run “Process Supply Chain Orchestration Interface”
3. Review the supply order for the item in “Manage Supply Lines” in Supply Chain Orchestration
work
area
4. Note the Work Order # and complete the same to get the supply
Content
Use Case 4 – Source from Transfer
Order
Vision also assemble Laptops in the Atlanta facility and transfers to other organizations. They
want to
ensure enough quantity is always available at the distribution organization level (Seattle).
Assemble Transferre
d by Item Laptop
d to
Min Qty 1
Max Qty 50
Source from Organization
Needs to
Atlanta Seattl use
Min-Max Organization Atlanta
Lapto
MFG e to
p Distribution replenish
Facility at
Cente Org
level
r
Setup Tasks
 Manage Items > Planning Specifications
 Item should be Transfer Order enabled in OM specifications
1. Run “Print Min-Max Planning Report”

2. Run “Process Supply Chain Orchestration Interface”
3. Review the supply order for the item in “Manage Supply Lines” in Supply Chain Orchestration
work
4. area
Note the Transfer Order and complete the transfer from Atlanta to Seattle to get the
supply
Content
Maintain Inventory Accuracy

Agenda
• Overview
• Cycle Count and ABC
Analysis
• Physical Inventory

Content
Overview
Inventory records should be accurate in the system and match to the physical
state of the products in the warehouse. Accuracy is needed in all types of
industries like Manufacturing, Distribution, Retail, Health care etc.
Benefits of Inventory Accuracy
 Retain high customer satisfaction by minimizing

delays
 Avoid disruptions in production operations due to
missing items
 Improve reliability in the supply chain
 Improve Operating efficiency
 Reduce operating costs and maintain margins
 Maintain high service levels

Content
Options to Maintain Accuracy
Two options exist: Cycle counting and Physical Inventory

Counting.
Day Day Day Month Month Year
1 2 3 1 2 1
1. Laptop Qty – 100 100
90 50 150
System onhand 95
2. Sleeve Qty - 1000 1000 900 800 800 250
Stores ory
Subinvent
1. Laptop Qty – 100 100 95 89 48 110
2. Sleeve Qty - 1000 1000 900 800 780 150
Physical onhand
in the
warehouse Physical
Cycle Count
Inventory (Bi-
(Periodic)
annually/ Yearly)
 A small subset of inventory in a specific location  Physical inventory is performed bi-annually

is counted on a specific date /annually where all inventory items are counted
 Provide an ongoing measure of inventory  The warehousing operations are stopped
Cycle accuracy and can be tailored to focus on Physical while performing the physical inventory
Count items with higher value, higher movement Inventory counts
volume, or that are critical to business  Each and every item in the warehouse is
processes. typically
 Cycle counts are less disruptive to daily counted and the items to be counted are
operations known
 Cycle count adjustments are done to sync  Physical inventory adjustments can be
86 physical
Copyright © 2023, anditssystem
Oracle and/or onhand
affiliates | PTT Created with approvals processed to sync the actual and system
Content onhand with approvals
Agenda
• Overview
Analysis

Content
Cycle Counting – Setup Basis
ABC Item categories

Classes
You can assign items associated with
With ABC classification of your items as specific item categories to a cycle
the basis for deciding the count count. All items belonging to those
frequency, your A class items get item categories are included in a
counted more frequently compared to cycle count regardless of the
B or C class items. subinventory or locator they're
stored in.
For this method, you specify ABC
assignment groups and ABC This lets you define the items in the
assignment group synchronization cycle count based on common
options. grouping criteria already established
in Oracle PIM.

Content
Cycle Counting – Setup
Basis
Use ABC Analysis or Item

categories while setting up
Cycle Count
Item
ABC
Categorie
Analysis
s

Content
Overview of ABC Analysis
ABC analysis is an inventory categorization technique, which determines the relative value of a
group of inventory items based on a user-specified valuation criterion.
Using ABC analysis you can identify items that will have a significant impact on overall inventory
cost, while also identifying different categories of stock that will require different management
and controls. ABC refers to the ranking you assign your items in order of their estimated
importance suggesting that inventories of an organization aren't of equal value, such as items
classified as:
 A items are very important for an organization and are very tightly controlled and
accurate records are maintained
 B items are important, but less important than A items and more important than C
items
and are less tightly controlled and good records are maintained
 C items are marginally important with the simplest controls possible and minimal
records are maintained

Content
Use Case – Perform ABC Analysis
Perform ABC Analysis on products in Stores subinventory using onhand as the

criteria. Class A – Highest Priority
Class B – Medium Priority
Prior to ABC
Class C – Low Priority
Analysis # Decisions to Consider Task
Product Onhand Class n
1 How to determine relative ranking of each Create an ABC class
Laptop 14” 11
item?
Laptop 10” 5 Create an ABC
2 How to arrange the items in the descending
Laptop 15.6“ 20 order based on the defined criteria? classification
Tablet 7” 10 set Product Onhand
3 How to associate ABC classes with ABC Create ABC Laptop 15.6“ 20
Stores classification sets? assignment groups Laptop 14” 11
Subinventory Tablet 7” 10
4 How to associate items to ABC classes within Perform ABC
an ABC assignment group? assignments Laptop 10” 5
Product Onhand Class Class Item Sequence or %

Laptop 15.6“ 20 A A 15%
Laptop 14” 11 B B 60%
Tablet 7” 10 B C 25%
Laptop 10” 5 C

Content
Define a Cycle
Count
Definitio Runtim
Create Cycle Count n e
Schedule Cycle
Count
Generate
Count by Count
Enable Cycle Count No Ye
ABC Class Sequences
by Item Category s
?
Select Select
Subinventories Count Inventory
Subinventories
Items
Define Schedules Select ABC

and Approvals Assignment Group
Define Defines Schedules

Parameters and Approvals Reject Counts
Recount /
Define Item Define Investigate
Categories Parameters Discrepancie
s
Define Items in Define Classes

Review Approve Counts
Item Categories and Items
Done

Content
Cycle Count – ABC Classification Use Case
Vision has various Organizations and uses different accuracy methods for each of them. Vision wants to setup
an automatic cycle count (CC) for Stores subinventory in one of their Organization. They want to use ABC
Classification to group the items and want to setup different counts per class of items.
Requirement
Level: Approval for
Setup
Stores Frequency - adjustment of +/-
automatic CC
subinventory Daily 5% deviation
schedules
Criteria
Use top 15% of Use next 30% Remaining 55%
: Criteria – Use items as Class A of items as B of items as C
Use ABC current class and count
and count them 12 class and count
Classificatio onhand atleast 6 times
times a year them once per
n a year year
Additional Should allow manual Flexibility to Allow specific high value

requirement counts on adhoc add/remove items to be always
s basis items included

Content
Cycle Count – Formula
The system uses a formula to decide which combination of items and class is selected in the schedule for a
given day.
Counts per year
Items in a
Formula to derive for
class
the number of the class
items per schedule Number of working days in the year as
per the Schedule (Calendar)
associated
Consider the following items, classes for a Cycle count setup for a subinventory.
Class Number of Counts Items selected for the Result Round upwards 3 A Class
Items in per year schedule
class
items 3 B
A 54 12 = ( 54 * 12 ) / 262 2.4732 3
Class items 1
C Class item
B 124 6 = ( 124 * 6 ) / 262 2.8396 3
C 177 1 = ( 177 * 1 ) / 262 0.6755 1
Would be
Number of working days in the year = 262
selected for
counting
Content
ABC Analysis – Content Scope, Valuation Scope Scenario
Onhand Scenario
Item Stores All other Organization
Subinventory subinventorie Total
s
Laptop 5 Ea 25 Ea 30 Ea
Tablet 10 Ea 10 Ea 20 Ea
Headset 40 Ea 40 Ea
ABC Criteria – Current

Onhand
Content Scope - Content Scope – Subinventory Content Scope – Subinventory
Organization Stores Valuation Scope - Stores Valuation Scope -
Subinventory Organization
Item Organization Ranking Item Stores Ranking Item Stores Organization Ranking
Total Subinventory Subinventory Total
Laptop 30 Ea Rank 2 Laptop 5 Ea Rank 2 Laptop 5 Ea 30 Ea Rank 1

Tablet 20 Ea Rank 3 Tablet 10 Ea Rank 1 Tablet 10 Ea 20 Ea Rank 2
Headset 40 Ea Rank 1 Headset Headset

Content
Cycle Count – Item Category Use Case
Vision has various Organizations and uses different accuracy methods for each of them. Vision wants to
setup an automatic cycle count (CC) for Stores subinventory in one of their Organization. They want to use
Item Category to group the items and want to setup different counts per class of items.
Requirement
Level:
Stores Setup No approval needed
automatic Frequency -
subinventory for adjustments
CC schedules Daily
Criteria
Tablet category Components Remaining
: Criteria – Use
Use items should be and peripherals category of
current counted 12 times are to be items are to be
Item onhand a year counted 6 counted once a
Categor times a year year
y
Additional Should allow manual Flexibility to Allow specific high value
requirement counts on adhoc add/remove items to be always
s basis items included

Content
Agenda
• Overview
Analysis

Content
Overview
Physical inventory is a process where a business physically counts its entire

inventory.
Inventory All On-Hand items Enter Counts

Organization in Inventory

Content
Inventory Accuracy Reports
Report Name Description
Cycle Count Listing report This report lists all items currently due for cycle counting.
The report is used as the document you give to employees
performing the cycle counts.
Physical Inventory Tags report This report lists all items to count in the physical inventory.
This report is used as the document you give to employees
performing the physical inventory.
Physical Inventory Tag Listing report This report lists all default and blank tags that were
generated and all the dynamic
tags that you entered.
Physical Inventory Missing Tag Listing report This report lists the tags that are missing from a specified
range of tag numbers.
The report also shows what information was printed on the
tag to aid in the search. A tag is considered missing when
it has not
been entered.

Content

Fusion - Inventory Management

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Fusion - Inventory Management

Uploaded by

Copyright:

Available Formats

Inventory Management

SCM Cloud and Inventory

SCM Cloud Implementation Workshop

2 Copyright © 2023, Oracle and/or its affiliates | PTT Created

SCM Cloud helps you bring new products

3 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Procurement Manufacturin Order Logistics

Product Master Data

Globalizations & Localizations

4 Copyright © 2023, Oracle and/or its affiliates | PTT Created

6 Copyright © 2023, Oracle and/or its affiliates | PTT Created

• Manufacturing • Landed cost • Transaction • Receipt • External regulatory

7 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Internal Material Min-Max Planning

8 Copyright © 2023, Oracle and/or its affiliates | PTT Created

• Parties involved and nature of

• Monitor and audit financial

9 Copyright © 2023, Oracle and/or its affiliates | PTT Created

SCM Cloud Implementation Workshop

• Manage Inventory Organizations, Subinventories

1 Copyright © 2023, Oracle and/or its affiliates | PTT Created

• An enterprise is a collection of legal • A business unit is an organization

– complying with local regulations applicable to • Every employee is associated with

An inventory organization is a logical or physical entity in the enterprise

Create Multiple Organizations vs One Organization – Multiple Subinventories, referential

Same business function but

14 Copyright © 2023, Oracle and/or its affiliates | PTT Created

15 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Business Feature Item Management Inventory Management

Financial and Accounting Information No Yes

Perform Inventory Transactions No Yes

Manage Item Quantities No Yes

Lightweight Organization Yes No

Edit Usage of Organization Yes No

16 Copyright © 2023, Oracle and/or its affiliates | PTT Created

17 Copyright © 2023, Oracle and/or its affiliates | PTT Created

18 Copyright © 2023, Oracle and/or its affiliates | PTT Created

19 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Feature Description Attributes

Definition Organization An item definition organization is an item Can be updated

• Reduction in the data migration time

Attributes Atlanta Inv Org Seattle Inv Org

Ite Purchasable Yes Yes

Item Grouping Behavior - Definition Item Grouping Behavior - Reference

21 Copyright © 2023, Oracle and/or its affiliates | PTT Created

• Manage Inventory Organizations, Subinventories and

23 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Base UOM is used

A UOM intraclass conversion specifies the conversion between a unit of measure,

25 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Case of Box of 12 Box of

26 Copyright © 2023, Oracle and/or its affiliates | PTT Created

Uses standard unit of measure conversions for this item if an item-specific

27 Copyright © 2023, Oracle and/or its affiliates | PTT Created

• Manage Inventory Organizations, Subinventories and

28 Copyright © 2023, Oracle and/or its affiliates | PTT Created

A Schedule (Calendar) is comprised of Workday pattern and exceptions. Workday

A shift is a period of time, A workday pattern is a collection

An exception is a record of a date

Calendars are global and shared.

Calendars are time agnostic.

30 Copyright © 2023, Oracle and/or its affiliates | PTT Created

• Manage Inventory Organizations, Subinventories and

31 Copyright © 2023, Oracle and/or its affiliates | PTT Created