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Advanced Fulfillment with R12

Advanced Fulfillment with R12. Susan Flierl Product Strategy Director. The Safe Harbor .

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Advanced Fulfillment with R12

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  1. Advanced Fulfillment with R12 Susan Flierl Product Strategy Director

  2. The Safe Harbor 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.

  3. Agenda • Overview • Inventory Management • Mobile Supply Chain Applications • Warehouse Management

  4. Materials Management Spectrum Warehouse Control System (part of Oracle WMS) Highly Automated Facilities Automate physical inventory handling High Oracle Warehouse Management Warehouse Management Implement a true “execution system” using system directed tasks and task management Mobile Supply Chain Applications RF / Barcode Only Improve accuracy and reduce latency of existing transactions Product / Order Complexity Inventory Management Manual Desktop Inventory Record transactions and track balances Low Transaction Velocity / Volume Small Large

  5. inventory management

  6. Advanced Inventory featuresDelivering on Core Principles: Fulfillment Excellence Profitable Fulfillment Design supply chain for tax efficiencies with Advanced Intercompany Invoicing Pay on Use with Consigned Inventory from Supplier Purchase To Order with Drop Shipments • Maximize revenue where taxes are lowest • Sell through intermediate legal entities • Improve working capital • Reduce stock write offs • Reduce lead time • Improve working capital • Improve customer delivery performance

  7. Consigned Inventory from SupplierBusiness Process • Modules required • Oracle Purchasing • Oracle Inventory Management • Oracle iSupplier Portal (to publish Consumption Advice) • Oracle Collaborative Planning (for Vendor Managed Inventory)

  8. Consigned Inventory - deferring the transfer of ownership of and payment for goods until materials are used VMI - a means of optimizing supply chain performance in which the supplier has access to the customer’s inventory data and is responsible for maintaining the inventory level required by the customer Consigned Inventory & Vendor Managed Inventory (VMI) Separate business processes often used in combination Consigned Consigned VMI Upon Use Change in ownership Regular Sale VMI Standard Customer Supplier Inventory replenishment

  9. Drop Ship Business Process Order Flow PO SO Customer OEM Supplier PO Supplier 2 Physical Flow Shipment Customer Facility Supplier Facility Shipment Supplier 2 Facility • Common practice for standard and configured items • Source type of external on sales order line indicates that it is a drop shipment. • “Ship from” location on the sales order line is a supplier site • One SO results in one PO per supplier. Customer information is shared with the supplier.

  10. Drop ShipProcess Flow • Modules required • Oracle Order Management • Oracle Purchasing • Oracle Inventory Management

  11. Tax efficient supply chains PHYSICAL MOVEMENT Customer’s Cleveland Plant • Support global corporate structures without compromising supply chain efficiency • Single movement of goods triggers multiple internal financial transactions Shanghai Plant Shipment FINANCIAL OWNERSHIP Acme China Acme Singapore Acme US US Customer Invoice Invoice Invoice Order Order

  12. Advanced Intercompany InvoicingShipping Flow Selling (End) Operating Unit Intermediate Operating Unit(s) Shipping (Start) Operating Unit Material Flow Invoicing Flow Customer OU1 OU2 OU3 • Any number of intermediate operating units can send & receive intercompany invoices triggered by a drop shipment • This flow can model regional distribution business units, marketing organizations and any other internal operating unit that should receive proceeds from the sale

  13. Advanced Intercompany InvoicingProcurement Flow Procuring (Start) Operating Unit Receiving (End) Operating Unit Intermediate Operating Unit Material Flow OU1 OU2 OU3 Supplier Invoicing Flow • Any number of intermediate operating units can send & receive intercompany invoices triggered by a purchase order that spans multiple operating units • This flow can model shared procurement services and any other internal operating unit that should be invoiced for the purchase

  14. mobile supply chain applications

  15. Oracle Mobile Supply Chain Applications Single global instance, mobile applications, built-in integration, barcode and RF capabilities Rapid ROI Leverage setup already in place for EBS SCM Applications. No functional setup required Built-in, Not Bolt On Mobile, point-of-use barcode scanning reduces operator errors & data latency Increased Data Accuracy

  16. Oracle Mobile Supply Chain ApplicationsComprehensive Support for Basic Execution Functions Inventory / WMS Discrete Manufacturing Process Manufacturing • Receiving, Inspection & Delivery • Purchase Orders, Internal Requisitions, Transfers • Counting • Cycle, Physical & PAR • Replenishment & Moves • Pick & Ship • Label Printing & Inquiries • Issue Components • Resource Transactions • Operation Moves • Completion • Scrap • Inspection • Quality Plan Results • Batch Allocations • Resource Usage • Release Step • Complete Step • Ingredient Issue • Batch Yield

  17. Mobile User Interface OptionsImproved Look and Feel, Equivalent Performance

  18. Hardware and Systems IntegrationOut-of-the-Box Connectivity with Leading Providers Voice Automation RF Hardware Manifesting Int’l Trade Management Automated Data Collection Labeling Oracle MSCA &Inventory Mgmt

  19. Avoid Typical Costs of Mobility Characteristics Benefits • Same application for all certified devices • Automatically adapts to any form factor • Maximum flexibility of RF device selection • Lower support costs RF Device Independence • Support for XML-enabled printer or print server • Support industry standard barcodes • Leverage investment in existing hardware • Avoid relabeling at receipt Printer & Label Flexibility

  20. Warehouse management

  21. Oracle Warehouse Management SolutionA Complete Warehouse Execution System RF Support Label Assemble Receive Inspect RMAsPurchasesTransfers Replen-ish Cross DockPutaway TailorableRules &Workflow Process Cost Move Global Visibility WIPIssues Ship Pack Directed Pick Count RTVs OrdersTransfers Transfer SeamlessIntegration Transportation Purchasing Manufacturing Fulfilment

  22. Improve Warehouse Management FunctionsIncrease Efficiency of All Resources Warehouse Efficiency Inventory Utilization Resource Utilization Worker Productivity • Automate Warehouse Processes • Optimize Task Assignments • Reduce Worker Travel Time • Optimize Total Warehouse Space • Maximize Use of Equipment • Optimally Locate Inventory to Reduce Travel Time • Reduce Inventory Carrying Costs • Streamline • Material Flow • Reduce Inventory Obsolescence • Automate Replenishment

  23. License Plate Number SupportPerform Complex Inventory Transactions Multiple Packages and Products Single Unique Numberfor All Information = • Container and LPN* Support • Supports Infinite Nesting Levels • Perform Complex Moves via a Single Scan • Fully Integrated with ASNs • Barcode Support • Automatically Track AllRelated Product Information • Capture All Informationwith a Single Scan Improves Efficiency,Accuracy, and Tracking Worker Productivity *License Plate Number

  24. Directed Picking and Put AwayAutomatically Suggest Optimal Locators Receipt Locator Locator Locator Pick BusinessLogic • Slot Dynamically Based on Velocity, Size, Etc. • Control Hazardous Materials / Co-mingling • Handle Task Exceptions with Reason Codes • Optimize the Use of Storage Locations with Dynamic Slotting • Minimize Inventory Fragmentation • Reduce Chance of Obsolescence

  25. Comprehensive Wave PlanningAdvanced Tools to Manage Work on the Floor Wave Rules Analytics Pick Ship Pack • Create Wave • Plan & Analyze Wave • Release Wave • Task Planning • Monitor Wave Execution

  26. Dispatch Tasks To RF Devices Support Multiple Picking Methodologies Match Skills and Equipment to Tasks Perform Task Sequencing and Interleaving Automated Task ManagementCreate, Organize, Dispatch Tasks to Optimal Resource Task Queue Pick Wave Split Merge Sort Create & Allocate Task • Create Paperless, Streamlined Processes • Align Pick Plan with Business Mix • Reduce Safety Issues and Training Costs • Significantly Reduce Travel Time

  27. Automated Compliance LabelingMeet Customer Specific Requirements • Support Numerous Types and Variations of Labels • LPN, LPN content, LPN summary, material, serial, location, shipping, shipping contents, WIP contents • Print & Scan industry standard product barcodes: UCC-128, EAN-8, EAN-13, UPC, EAN/UCC-14 • Flexible to Meet Your Business Needs • Design and rendering choices • Highly flexible configuration • Adapts to changing requirements • Data Transmitted via XML Directly to Printer or via Middleware of Choice • Out of the Box Support for Epcglobal Compliance Mandates Including SGTIN-64 / SGTIN-96

  28. RFID-Initiated Shipping and ReceivingProcess Transactions with No Manual Intervention (3) Interface to readers, clean and filter data, then pass IDs to application RFID Middleware (2) Drive load through RFID Reader in Receiving Dock (1) Load of pallets and / or cartons with RFID tags on each (4) Access objects associated with the ID's (e.g. LPN's on ASN) then raise correctBusiness Event RFID Event Processor • Share RFID information with your supply chain partners using inbound and outbound ASN • Out of the box DoD compliance including generation of DoD-64 & DoD-96 (5) Access associated source docs(e.g. the PO’s ASN) (6) Process the Business Event, (e.g. Receipt of pallet or carton) Application APIs Response& Exception Handling (7) Confirm success or failure (e.g. trigger green light or sound buzzer) (8) Putaway,rescan ordivert material

  29. WMS and Process ManufacturingLeverage Attributes Designed for CPG, Life Sciences & Chemicals Process Manufacturing Support in Warehouse Management • New Process Inventory Controls • WMS Transaction Support in Process Organizations • Task Dispatching For Ingredient Picking • Ingredient and Product Labeling Process Manufacturing Support in Inventory • Common Inventory Definition (Shared with Discrete Mfg) • Single Source of Inventory Balances Across Products • Improved Support for Process Manufacturing Industries • Dual unit of measure tracking • Material status control • Enhanced lot control • Material aging workflows

  30. Distributed Deployment OptionsDisconnected and Integrated Host System(s) (EBS or Non-EBS) Order Management Master Data Management Procurement Financials Integration Framework Integrated but decoupled WMS Instances Remote Warehouse European DCs Manufacturing Plants LSP Warehouse

  31. Device and Material Handling IntegrationOut-of-the-Box Connectivity with Leading Providers Voice Automation RF / RFID Hardware Manifesting Material Handling Automated Data Collection Labeling Oracle WMS &Inventory Mgmt

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