Enhanced Order Fulfillment using Oracle Global Order Promising

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 • Response 1: Tier 1 Maintain Excess Inventory • Response 2: Distribution Plans Marketing Forecast Production Manufacturing Plans • Response 3: Expedite Everything! Sales Forecast Mfg Forecast Demand Planning Process Reserve Production Capacity ? t = weeks Supply Planning Process Supply Chain Built on Inventory

A Better Way

Move to a More Competitive Model Customers Suppliers Oracle’s APS: zero latency, real-time collaboration Tier 2 Tier 1 Internet Portal Collaborative demand plan Portal Collaborative Planning Process Collaborative supply plan Automated exceptions Marketing forecast Single holistic plan Automated exceptions Sales forecast Mfg forecast • Enable closed loop planning processes across your value chain • Provide total supply chain visibility • Make better decisions Consensus forecast Demand Planning Process t = hours Supply Planning Process • React immediately to changes in supply chain Build your Supply Chain on Information not Inventory

Agenda • APS Overview/ Architecture • Oracle’s ATP flavors • Set up – Profile Options – Key Concurrent Requests • • Core GOP features GOP Computation Diagnostics Q&A/ Feedback

APS Architecture Internal Users Trading partners Portals Internet Oracle ERP 10. 7 Oracle ERP 11. 0 Order Promising Engine Oracle ERP 11 i Analytical Workspaces A P I S XML EDI Flat file Legacy Systems KPIs Workflows Advanced Planning Plans

Oracle’s 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 Ÿ Ÿ INV: Capable To Promise INV: External ATP MRP: ATP Assignment Set MRP: Calculate Supply Demand Ÿ MRP: Include Substitute Components Ÿ MSC: ATP Assignment Set Ÿ MSC: ATP Debug Mode Ÿ MSC: Enable Allocated ATP Ÿ MSC: Class Hierarchy Ÿ MSC: ATP Allocation Method Ÿ MSC: Enable ATP Workflow Ÿ MSC: Enable ATP Summary Mode Ÿ 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 Customer 1, Site 1 Requests Item A Rank 1 Rank 2 A/Org 1 (M 1) A/Org 2 (M 2) Sourcing Rule(SR-A) Assignment Set Cum ATP Request Info: Request Qty 100, Request Date Day 10, Latest Acceptable Date Day 12 ATP Result: Qty 100 from M 2 on Day 12

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 (24 X 7 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, i. Store, 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) B (Org 1) R 1 (Org 1) 5 day lead-time B (Supplier 1) A (Org 2) B (Org 2) R 2 (Org 2) 4 day lead-time 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 Ÿ Netting – Net Supply-Demand for a given day/time period Ÿ Backward Consumption – Use surplus from past to cover existing shortage Ÿ Forward Consumption – Use future surplus to cover existing shortage Ÿ Accumulation – Carry over the availability Ÿ Stealing (for AATP) – Steal supplies from lower priority tiers for new demands

GOP Computation Ÿ Example Supply Demand Net Qty Backward Forward Cum Qty D 1 10 4 6 0 0 0 D 2 10 18 (-8) (-2) 0 0 D 3 10 6 4 4 2 2 D 4 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)