2Objectives Understanding Business Processes Getting started with Oracle Applications
3Agenda Supply Chain Management Customer relationship Management Supply Chain Management - ProcessesSupply Chain Management - EntitiesSupply Chain Management - Cycles OverviewOracle Solution for SCM CyclesCustomer relationship ManagementFinancialsGetting Started with oracle ApplicationsModelling Enterprise in Oracle ApplicationsThe complexity of the course will determine the extend of chunking.
4Oracle E-Business Suite Business IntelligenceMarketingeBusiness PlatformCommon Application Architecture & SchemaSalesServiceStrategic Enterprise ManagementSupply ChainInternet ProcurementFinancialsHuman resourcesProjectsTravel Management
6What is Supply Chain Management? A supply chain is a network of supplier, manufacturing, assembly, distribution, and logistics facilities that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these products to customers.Supply chain management (SCM) is a systematic approach to manage the entire flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.Supply Chain Management is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer.SCM has three primary goals: Reduce inventory, increase the transaction speed by exchanging data in real-time, and increase sales by implementing customer requirements more efficiently.
7Supply Chain Management Processes Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.Developing new products is the starting point of a supply-chain cycle where Product specifications are created.Supply Chain Management Processes OverviewMarketing and Sales generates demand for the Product by publicizing its features and how it would address customer priorities. In the process, Marketing also gets customer feedback and communicates to Product development group.Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.DevelopService & MaintainMarketFulfillPlanSupply Chain Management Processes OverviewPlanning is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service.Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery.ManufactureSell & ManageOrdersProcureDevelop : Developing new products is the starting point of a supply-chain cycle where Product specifications are created.Market : Marketing and Sales generates demand for the Product by publicizing its features and how it would address customer priorities. In the process, Marketing also gets customer feedback and communicates to Product development group.Plan : Planning is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service.Sell & Manage Orders : Maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit.Procure : Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.Manufacture : Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery.Fulfill : Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.Services & Maintain : Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.Maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit.
8Supply Chain Management - Entities A supply chain is a network of suppliers, manufacturing, warehouse, distribution, and logistics facilities including the customers.SupplierSupply Chain Management Entities OverviewManufacturerCustomerProduct flow happens in a supply chain from supplier to manufacturer to distributor to retailer to customer where as cash & information flow happens in the reverse direction.ProductionFacilityRetailerDistributor
9Oracle Supply Chain Management Solutions • Oracle Product Lifecycle Management. Oracle Advanced product Catalog• Telesales• Trade Management• Incentive Compensation• Order Capture• Partners Online• Depot Repair• Field Service• Install Base• Service Contracts• Service Fulfillment Manager• Spares ManagementSupply Chain Management Processes OverviewDevelopService & MaintainMarket• Release Management• Shipping Execution• Inventory ManagementWMS• Transportation Execution• Advanced Supply Chain Planning• Global Order PromisingFulfillPlanOracle Supply Chain Management SolutionsManufactureSell & ManageOrders• Cost Management• Configure to Order• Process Manufacturing• Project Manufacturing• Quality• Work in ProcessProcure• Order managementAdvanced Pricing• Configurator• iStore• Purchasing• iProcurement
10Order & Product Flow Order Management Channel A Channel B Customer ProductsOrder ManagementOrdersChannel AOrdersChannel BCustomerOrdersOrdersChannel CManufacturingProductsProductDistributionProductsProductsProductionPlansPartsDemandForecastPart SupplySupply PlanningDemand PlanningComponentRequirement
11A Typical Supply Chain: IBM Europe PC Suppliers(International)1.2 Million PC/Yr.Glasgow U.K.WarehousePortPC AssemblyPlant13 TransshipmentPoints (TPs) in EuropeCountry-wide Distribution Centers (DCs)Retailers
12Supply Chain Management Cycles Overview Procure to PaySupplier sends required materialSupplierManufacturer requests RM and Std partsCustomer Places OrderManufacturer Ships GoodsManufacturerOrder to CashCustomerSupply Chain Management Cycles OverviewPlan to MakeDistributor maintains Stock & orders at timesShop floor executes job orderManufacturer ships goodsMfr Plans and releases Job OdrerRetailer Places OrderRetailerDistributor replenishes StockProductionFacilityDistributorReplenishment
13Oracle Solutions for Order to Cash Cycle O2C Cycle Oracle Oracle CheckAvailability,ScheduleOrderEnterOrder/LinedetailsReviewOrder Price&AdjustmentsPickReleasethe OrderConfirmShipBook theOracleOrderManagementOracleAdvancedpricingOracleGlobalATPOracleShippingExecutionOracleTransportationManagementOracle Solutions forOrder to Cash CycleOracleMobile SupplyChainApplicationOracleOrderManagementOracleShippingExecutionOracleWMSOracleINV
14Oracle Solutions for Procure to Pay Cycle P2P Cycle Oracle Oracle iProcurementOraclePurchasingOraclePurchasingCreate Quotation(Optional)CreateRequisitionCreate RFQCreate PurchaseOrderReceiveInspect& DeliverOracleINVOraclePurchasingOracleWMSOracle Solutions forProcure to Pay CycleOracleMobile SupplyChainApplicationOracleINVOraclePurchasing
15Oracle Solutions for Plan to Make Cycle P2M Cycle Oracle ASCP Oracle IssueComponentsfor the AssemblyDo Forecast andsetup ASCPPlanParametersAnalyze PlanOutputandRelease WorkorderProcess andMoveAssembly thru’all processingstepsComplete andIssue Assy to FGILaunchASCP PlanOracleASCPOracleASCPOracleASCPOracleDemand PlannerOracle Solutions forPlan to Make CycleOracleWMSOracleWIPOracleINVOracleINVOracleOSFMOracleWIP
17Customer relationship management (CRM) Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information.Oracle’s CRM Suite of Applications try to cater to the mantra of Information-Driven CRM by addressing various needs of Organizations. It is designed to help organizations.Align marketing, sales and service to overall corporate objectivesDrive profit through selling and service effectivenessMaximize collaboration across all customer-facing channels; direct, partner, service and ecommerceThe broad module level divisions offered in Oracle CRM Suite areOracle Marketing and SalesOracle Customer ServiceOracle Channel ManagementDaily Business Intelligence for CRM
19Financial ModulesOracle Financial comprises of the following main Finance ModulesGeneral LedgerAccounts PayableAccounts ReceivablesFixed AssetsCash Management
20Oracle Financials Suite InventoryPurchasingPayablesCash MgtReceivablesAssetsGeneral LedgerOrder
21Financial Modules-Overview Oracle General Ledger (GL):The central repository of all financial transactions.At the heart of any accounting system.A tool, for integrating sub-ledger activity, consolidating group-wide accounts and releasing statutory/analytical financial reports.Accounts Payable (AP)Payables, an expenditure management tool, used to streamline the procure-to-pay processPayable used to Manage Suppliers, Manage Disbursements & Manage PaymentsSaves money by enforcing various payment policiesEffective integration with Cash Management, Purchasing, General Ledger, Assets & ProjectsAccounts Receivables (AR)An invoicing and collections management application, used to streamlines order-to cash processReceivables manages invoicing, tax calculation, receipt application, collections, and revenue recognition,Effective Integration with Cash Management, Order Management, General Ledger & Projects
22Financial Modules-Overview (Contd.). Cash Management (CM)CM helps one to effectively manage and control cash cycle of the enterprise in order to ensure liquidity and improve profitability.Tool used to Manage the Cash Forecasting and reconciling the bank transactions from Receivables, Payables and General Ledger with the Bank Statements.Fixed Assets (FA)Asset management encompasses three primary activities:Physical Upkeep: Comprises asset location, asset condition and assignmentAsset Tracking: Covers the whole gamut from controlling leased, loaned and consigned items from acquisition to asset maintenance.Financial: Involves asset value, depreciation and taxation.To maintain and calculate the depreciation to the AssetsIntegrates with Purchasing, Payables , General Ledger & Projects
24Enterprise ModelingBusiness Group: represents the highest level in the organization structure. It secures human resources information, eg. when you request a list of employees, you see all employees assigned to the business group of which your organization is a part.
25Enterprise ModelingLedger: A financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calendar. Oracle General Ledger secures transaction information (such as journal entries and balances) by set of books.Legal Entity: is a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization.Balancing Entity: This is a segment in the Accounting Flexfield structure (usually Company segment) at which all accounting entries must balance.Each legal entity can have one or more balancing entities.You can use Flexfield Value Security rules to restrict data entry of balancing segment values by legal entity or operating unit
26Enterprise Modeling (Contd.). Operating Unit: is associated with a legal entity. Information is secured by operating unit for applications viz: Order Management, Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle Receivables and Oracle Cash Management.To run any of these applications, you choose a responsibility associated with an operating unit.Inventory Organization: is an organization for which you track inventory transactions and balances, manufactures or distributes products viz: manufacturing plants, warehouses, distribution centers, and sales offices.The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, MRP and receiving functions.
27Enterprise Modeling (Contd.). Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods or defective material. All material within an organization is held in Subinventories.A stock locator can be of Storage locator, Dock door or Staging lane type. Staging lane is used for staging after pick releasing, Storage locators store material. During load process material is transferred from staging lane to Dock door.
28Maintain Organizations All types of organizations can be defined using the Define OrganizationChoose a location where this organization exists.Enter what type(s) of organization is this, in organization classification viz.GRE/Legal Entity: Enter Legal Entity Accounting info like Ledger, Location.Operating Unit: Enter Operating Unit Information like Legal context, Ledger.Inventory Organization: Enter its Accounting Information like Ledger, Legal context & Operating Unit.
29Organizations Technical Architecture All organizations are maintained in HR_ALL_ORGANIZATION_UNITS table and organization classifications like Legal entity or operating unit information are stored in HR_ORGANIZATION_INFORMATION table. There are 3 views provided based on these 2 tables to easily find out the Legal entity, Operating unit and Inventory organization viz: HR_LEGAL_ENTITIES, HR_OPERATING_UNITS, ORG_ORGANIZATION_DEFINITIONS.ORGANIZATION_IDNAMEBUSINESS_GROUP_IDLOCATION_IDDATE_FROMINTERNAL_EXTERNAL_FLAGINTERNAL_ADDRESS_LINETYPEHR_ALL_ORGANIZATION_UNITSORG_INFORMATION_IDORG_INFORMATION_CONTEXTORGANIZATION_IDORG_INFORMATION1 ~ 20HR_ORGANIZATION_INFORMATIONOrganization_id in HR_LEGAL_ENTITIES is referred aslegal_entity_id in HR_OPERATING_UNITSlegal_entity in ORG_ORGANIZATION_DEFINITIONSOrganization_id in HR_OPERATING_UNITS is referred asoperating_unit in ORG_ORGANIZATION_DEFINITIONSHR_LEGAL_ENTITIESBUSINESS_GROUP_IDORGANIZATION_IDNAMEDATE_FROMDATE_TOSET_OF_BOOKS_IDVAT_REGISTRATION_NUMBERORGANIZATION_IDBUSINESS_GROUP_IDUSER_DEFINITION_ENABLE_DATEDISABLE_DATEORGANIZATION_CODEORGANIZATION_NAMESET_OF_BOOKS_IDCHART_OF_ACCOUNTS_IDINVENTORY_ENABLED_FLAGOPERATING_UNITLEGAL_ENTITYORG_ORGANIZATION_DEFINITIONSHR_OPERATING_UNITSBUSINESS_GROUP_IDORGANIZATION_IDNAMEDATE_FROMDATE_TOLEGAL_ENTITY_IDSET_OF_BOOKS_ID
30Location AddressesDefine Location name(code) and addresses for the locations you use within your enterprise. These are used for a variety of functions viz: receiving, shipping and billingEnter address style and address for the location.Enter ship to location code and other site use info.Associate the location code with an inv organization.HR_LOCATIONS_ALLLOCATION_IDENTERED_BYLOCATION_CODEADDRESS_LINE_1ADDRESS_LINE_2ADDRESS_LINE_3BILL_TO_SITE_FLAGCOUNTRYDESCRIPTIONDESIGNATED_RECEIVER_IDIN_ORGANIZATION_FLAGINACTIVE_DATEINVENTORY_ORGANIZATION_IDOFFICE_SITE_FLAGPOSTAL_CODE
31SubinventoriesSubinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods or defective material. All material within an organization is held in Subinventories.MTL_SECONDARY_INVENTORIESSECONDARY_INVENTORY_NAMEORGANIZATION_IDDESCRIPTIONDISABLE_DATEINVENTORY_ATP_CODEAVAILABILITY_TYPERESERVABLE_TYPELOCATOR_TYPEPICKING_ORDERMATERIAL_ACCOUNTMATERIAL_OVERHEAD_ACCOUNTRESOURCE_ACCOUNTOVERHEAD_ACCOUNTOUTSIDE_PROCESSING_ACCOUNTQUANTITY_TRACKEDASSET_INVENTORYSOURCE_TYPESOURCE_SUBINVENTORYPREPROCESSING_LEAD_TIMEPROCESSING_LEAD_TIMESTATUS_ID
32Item LocatorsMTL_ITEM_LOCATIONSA stock locator can be of Storage locator, Dock door or Staging lane type. Staging lane is used for staging after pick releasing, Storage locators store material. During load process material is transferred from staging lane to Dock door.INVENTORY_LOCATION_IDORGANIZATION_IDDESCRIPTIONDISABLE_DATEINVENTORY_LOCATION_TYPEPICKING_ORDERPHYSICAL_LOCATION_CODELOCATION_MAXIMUM_UNITSSUBINVENTORY_CODELOCATION_WEIGHT_UOM_CODEMAX_WEIGHTVOLUME_UOM_CODEMAX_CUBIC_AREAX_COORDINATEY_COORDINATEZ_COORDINATEINVENTORY_ACCOUNT_IDSUMMARY_FLAGENABLED_FLAGSTART_DATE_ACTIVEEND_DATE_ACTIVEPHYSICAL_LOCATION_IDPICK_UOM_CODEDIMENSION_UOM_CODELENGTHWIDTHHEIGHTLOCATOR_STATUSSTATUS_IDCURRENT_CUBIC_AREAAVAILABLE_CUBIC_AREACURRENT_WEIGHTAVAILABLE_WEIGHT
33Item SubinventoriesYou can assign items to a given subinventory such that the items are restricted to that subinventory.Thus, you can always issue and receive unrestricted items to any subinventory, but you can only issue and receive restricted items to their list of subinventories.You activate the list of subinventories for a restricted item by setting the Restrict Subinventories attribute when defining or updating item.MTL_ITEM_SUB_INVENTORIESINVENTORY_ITEM_IDORGANIZATION_IDSECONDARY_INVENTORYPRIMARY_SUBINVENTORY_FLAGPICKING_ORDERMIN_MINMAX_QUANTITYMAX_MINMAX_QUANTITYINVENTORY_PLANNING_CODEFIXED_LOT_MULTIPLEMINIMUM_ORDER_QUANTITYMAXIMUM_ORDER_QUANTITYSOURCE_TYPE
34MOAC (Multi org access control) Multiple Organizations provide security profiles which enable users to access, process, and report data in multiple operating units from a single responsibility.• In Security Profile form, assign multiple operating units to a security profile.
35MOAC (Multi org access control) You must set either the MO: Operating Unit or MO: Security Profile option for each application responsibility to use Multiple Organizations context sensitive applications.When you connect to the Oracle Applications, you sign on by entering your user name and password. Then, you choose a responsibility that is available to your user. After you choose your responsibility, there is an initialization routine that reads the values for only the information for those operating units that are assigned to your responsibility.If you set the MO: Security Profile profile option, you can also set an operating unit asthe default operating unit using the MO: Default Operating Unit profile option. This isuseful when you transact in multiple operating unit but frequently transact in oneoperating unit.
36Set your SQL session context for multiple OU‟s with the following: You can set your SQL session context for a single OU with the following:BEGINMo_global.set_policy_context('S',103);END;•The „S‟ means Single Org Context•2 is the ORG_IDSet your SQL session context for multiple OU‟s with the following:execute mo_global.set_org_access(NULL,64,‘ONT');•64 is the Security Profile you want to use•ONT is the application associated with the responsibility you will be usingThe following SQL will dump out the Security Profiles and Operating Unit Names assigned to themselect psp.SECURITY_PROFILE_NAME,psp.SECURITY_PROFILE_ID,hou.NAME,hou.ORGANIZATION_IDfrom PER_SECURITY_PROFILES psp,PER_SECURITY_ORGANIZATIONS pso,HR_OPERATING_UNITS houwhere pso.SECURITY_PROFILE_ID = psp.SECURITY_PROFILE_IDand pso.ORGANIZATION_ID = hou.ORGANIZATION_ID;
37ReferencesSupply chain Management - Strategy, Design and Operations by Sunil Chopra , Peter Meindl