© 2008 Oracle Corporation – Proprietary and Confidential 1

2 Purpose: This document provides an overview of features and enhancements included in Oracle E-Business Suite Release It is intended solely to help you assess the business benefits of upgrading to Release 12.1 and to plan your I.T. Projects. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement or other applicable contract with Oracle, with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without Oracle’s prior written consent. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. This 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 is always at Oracle’s sole discretion. This document is not considered part of the applicable program documentation. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

Oracle E-Business Suite Release Transfer of Information Oracle Demand Signal Repository Functional Overview Exception Management

© 2008 Oracle Corporation – Proprietary and Confidential 4 Agenda Exception Management Overview Setup and Process New Features Out of Stock Exceptions Overstock Exception Reorder Point Exception Sales Forecast Accuracy Exception New Item Not Selling Exception In-Flight Promotion Exception Promotion Price Deviation Exception Exception Management Dashboard & Reports Customizing Exceptions Description Business Benefit Additional Resources

© 2008 Oracle Corporation – Proprietary and Confidential 5 Overview

© 2008 Oracle Corporation – Proprietary and Confidential 6 Exception Management Overview Automatically sifts through vast amounts of customer data stored at the BU/SKU/day level to quickly detect potential problems in key business processes. Exceptions are created for the following conditions: Out of Stock (On-Hand = 0) Out of Stock Imputed Overstock Reorder Point Sales Forecast Accuracy New Item Not Selling In-Flight Promotion Promotion Price Deviation

© 2008 Oracle Corporation – Proprietary and Confidential 7 Exception Management Overview (continued) Common Characteristics of Exceptions Exceptions are written at the SKU/BU/Day or Week level For example, sales forecast accuracy is based on week (not day) Every exception has an associated quantity and monetary amount which represents the impact on the business For example, in the case of out of stock exceptions, the quantity and amount represents lost sales Forecast (if supplied) is the basis for target sales If forecast is not available, expected sales is used

© 2008 Oracle Corporation – Proprietary and Confidential 8 Exception Management Overview (continued) A pre-built iBots exists for each exception type. iBots are run after loading new fact data. Each iBot executes a query which locates exceptions based on an established set of criteria. An exception is written for each record returned by the query. Exceptions can be re-analyzed by re-running the iBots Cleans up old exceptions that are no longer applicable Generates new exceptions Exception management dashboard & reports are available to view the exceptions that have been generated.

© 2008 Oracle Corporation – Proprietary and Confidential 9 Set Up & Process

© 2008 Oracle Corporation – Proprietary and Confidential 10 Exception Management Setup and Process Review/Modify Exception Thresholds (optional) Review / Modify Exception Criteria (optional) Set Up & Configure OBIEE Scheduler SETUP STEPS Load DSR Reference Data Run iBots / Create Exceptions Refresh Exception Management Materialized Views View Exceptions using Dashboard Refresh Fact Materialized Views Generate Additional Measures (optional) Load DSR Fact Data PROCESS

© 2008 Oracle Corporation – Proprietary and Confidential 11 Exception Management Setup – Step 1: Load DSR Reference Data Manufacturer Data Organization Business Calendar Item Hierarchy Customer Data Organization Item Hierarchy Replenishment Rules Detailed Set Up (TOI’s) “Loading the DSR Repository” “Miscellaneous Enhancements”

© 2008 Oracle Corporation – Proprietary and Confidential 12 Exception Management Setup – Step 2: Review Exception Thresholds Defines a minimum threshold where probability is high if actual sales is below threshold based on expected sales. Expected Sales Forecast (if available) Non-Promoted: Median of previous five same-day periods Promoted: Median of promoted daily sales in past 180 days Used in OOS Imputed Exception Threshold Table DDR_R_EXCPTN_SLS_THRSHLD

© 2008 Oracle Corporation – Proprietary and Confidential 13 Exception Management Setup – Step 3: Review Exception Criteria Exception Analyzer Query One for each exception type Exception written for each row Filter criteria determines: Number of days to analyze Whether an exception exists First 8 columns must be: Mfg Org Code Rtl Org Code Business Unit ID Transaction Date Mfg SKU Item ID Rtl SKU Item ID Exception Qty Exception Amt

© 2008 Oracle Corporation – Proprietary and Confidential 14 Exception Management Setup – Step 4: Set up Scheduler iBots are executed using the OBIEE scheduler Set Up Instructions Refer to Oracle® Business Intelligence Infrastructure Installation and Configuration Guide (chapter 10) Need to create a file named “dbConnections.properties” containing connection information File should be copied to $HOME/OracleBI/web/javahost/lib

© 2008 Oracle Corporation – Proprietary and Confidential 15 Exception Management Process – Step 1: Load DSR Fact Data Fact Data Point of Sale Inventory Sales Forecast Detailed Set Up (TOI’s) “Loading the DSR Repository”

© 2008 Oracle Corporation – Proprietary and Confidential 16 Exception Management Process – Step 2: Refresh Materialized Views Refresh Fact MVs Complete Refresh Fast Refresh Detailed Set Up (TOI’s) “Loading the DSR Repository”

© 2008 Oracle Corporation – Proprietary and Confidential 17 Exception Management Process – Step 3: Generate Additional Measures Additional Measures Expected Sales Associated Threshold Avg Daily Sales (last 4 wks) New Item Not Selling Process Flow ADDNL_SALES_MEASURES Parameters Calculate In Flight Promo Calculate New Item Not Selling Calculate OOS Imputed Customer Organization Offset Days

© 2008 Oracle Corporation – Proprietary and Confidential 18 Exception Management Process – Step 4: Run iBots Exception iBots FCSTACC – Forecast Accuracy IFPL – In-flight Promotional Lift NPISALES – New Product Introduction OOSIM – Out of Stock Imputed OOSOH – Out of Stock On Hand OVRSTCK – Overstock PPD – Promotional Price Deviation REORDR – Reorder Point Conditional request tab Related Exception Analyzer Advanced tab Program which writes/purges exceptions Parameters Exception Type Exception ID Offset Days

© 2008 Oracle Corporation – Proprietary and Confidential 19 Exception Management Process – Step 5: Refresh Exception MVs Refresh Exception MVs Complete Refresh Fast Refresh

© 2008 Oracle Corporation – Proprietary and Confidential 20 Exception Management Process – Step 6: View Exceptions

© 2008 Oracle Corporation – Proprietary and Confidential 21 Out Of Stock (On Hand = O) Exception

© 2008 Oracle Corporation – Proprietary and Confidential 22 Out Of Stock (OH = O) Exception Description The OOS On Hand exception detects out of stock conditions where reported on hand less than or equal to zero. Exception Criteria On-Hand Qty <= Zero And store is authorized to sell the SKU Exception Quantity Forecast: Sales Forecast Qty – Actual Sales Qty No Forecast: Expected Qty – Actual Sales Qty Exception Amount Forecast: Sales Forecast Amt – Actual Sales Amt No Forecast: (Expected Qty * Avg. Selling Price) – Actual Sales Amt Additional comments No exception if inventory is not reported (e.g., Qty is Null)

© 2008 Oracle Corporation – Proprietary and Confidential 23 Out Of Stock (OH = O) Exception Business Benefit Early detection of out of stocks provides the ability to respond quickly and get inventory to the stores to reduce the amount of lost sales due to out of stocks.

© 2008 Oracle Corporation – Proprietary and Confidential 24 Out of Stock Imputed Exception

© 2008 Oracle Corporation – Proprietary and Confidential 25 Out Of Stock Imputed Exception Description The OOS Imputed exception identifies potential out of stock conditions based on deviation from expected sales. Exception Criteria Actual Sales Qty < Min Threshold based on Expected Sales Example: Expected Sales is 30. Associated threshold is 16. If Actual Sales Qty < 16, then an exception is written Exception Quantity Expected Sales Qty – Actual Sales Qty Exception Amount (Expected Sales Qty * Avg Selling Price) – Actual Sales Amt Additional Comments Exceptions are created if On-Hand Inventory > 0 or not reported.

© 2008 Oracle Corporation – Proprietary and Confidential 26 Out Of Stock Imputed Exception Business Benefit Detects potential of out of stocks in cases where inventory levels may be inaccurate. Address inventory issues early to reduce the amount of lost sales due to inaccurate inventory levels.

© 2008 Oracle Corporation – Proprietary and Confidential 27 Overstock Exception

© 2008 Oracle Corporation – Proprietary and Confidential 28 Overstock Exception Description The Overstock Exception detects when on-hand quantity is above the customer’s maximum on-hand quantity limit from their inventory replenishment rules. Exception Criteria On-Hand Qty > Maximum Qty OH (replenishment rules) Exception Quantity On-Hand Qty – Maximum Qty OH (replenishment rules) Exception Amount Exception Quantity * Average Selling Price

© 2008 Oracle Corporation – Proprietary and Confidential 29 Overstock Exception Business Benefit Visibility into a customer’s compliance with their own inventory replenishment rules. Allows manufacturers to see where inventory levels are excessive and collaborate with the customer to optimize inventory placement.

© 2008 Oracle Corporation – Proprietary and Confidential 30 Reorder Point Exception

© 2008 Oracle Corporation – Proprietary and Confidential 31 Reorder Point Exception Description The Reorder Point Exception detects where inventory levels are below the customer’s reorder point. Exception Criteria (On-Hand Qty + Back Order Qty) < Reorder Threshold Exception Quantity Reorder Threshold - On-Hand Qty - Back Order Qty) Exception Amount Exception Quantity * Average Selling Price Additional comments No exception is written if both on-hand qty and back order qty are null.

© 2008 Oracle Corporation – Proprietary and Confidential 32 Reorder Point Exception Business Benefit Visibility into a customer’s compliance with their own inventory replenishment rules. Allows manufacturers to see where inventory levels are too low and collaborate with the customer to optimize inventory placement.

© 2008 Oracle Corporation – Proprietary and Confidential 33 Forecast Accuracy Exception

© 2008 Oracle Corporation – Proprietary and Confidential 34 Forecast Accuracy Exception Description The Sales Forecast Accuracy Exception detects when sales forecast accuracy varies from the customer’s goals and thresholds. Exception Criteria Sales Forecast Qty and Actual Sales Qty must not be null Threshold: Forecast Accuracy % < Forecast Accuracy Threshold No Threshold: Forecast Accuracy % < Forecast Accuracy Goal Exception Quantity ABSOLUTE (Sales Forecast Qty – Actual Sales Qty) Exception Amount ABSOLUTE (Sales Forecast Amt – Actual Sales Amt) Additional Comments No exception is written if both goal and threshold is absent. Calculated at the weekly (not daily) level Calculated for completed weeks (not current week) Uses the manufacturer week ending date

© 2008 Oracle Corporation – Proprietary and Confidential 35 Forecast Accuracy Exception Business Benefit Visibility into a customer’s sales performance based on their own sales forecast. Allows manufacturers to collaborate with customers that have poor forecasting accuracy to help improve accuracy.

© 2008 Oracle Corporation – Proprietary and Confidential 36 New Item Not Selling Exception

© 2008 Oracle Corporation – Proprietary and Confidential 37 New Item Not Selling Exception Description The New Item Not Selling Exception reports on new items introduced at the store within the last 30 days that have not had sales. Exception Criteria New item (see below) and no prior sales And store is authorized to sell the SKU Exception Quantity Sales Forecast Qty Exception Amount Sales Forecast Amt Additional Comments 30 day window is not configurable by the end user (requires programming changes)

© 2008 Oracle Corporation – Proprietary and Confidential 38 New Item Not Selling Exception Business Benefit Daily monitoring of items recently introduced at a store to quickly spot issues and make corrections to improve sales.

© 2008 Oracle Corporation – Proprietary and Confidential 39 Promotional Price Deviation Exception

© 2008 Oracle Corporation – Proprietary and Confidential 40 Promotional Price Deviation Exception Description The Promotional Price Deviation Exception reports where promotion price is discounted more than 10% of average selling price Exception Criteria POS sales record is flagged as promoted ABSOLUTE (Avg Selling Price – Promoted Price) > Promotional Price * 10% Exception Quantity Actual Sales Qty Exception Amount Exception Qty * (Avg Selling Price – Promoted Price)

© 2008 Oracle Corporation – Proprietary and Confidential 41 Promotional Price Deviation Exception Business Benefit Daily monitoring of sales to spot issues with promotion compliance.

© 2008 Oracle Corporation – Proprietary and Confidential 42 In-Flight Promotion Exception

© 2008 Oracle Corporation – Proprietary and Confidential 43 In-Flight Promotion Exception Description The In-flight Promotional Lift Exception reports on promoted items whose sales is less than 110% of average sales. Exception Criteria Actual Sales Qty < 110% * Avg Daily Sales for last 4 weeks Exception Quantity Sales Qty – (110% * Avg Daily Sales for last 4 weeks) Exception Amount Exception Qty * Avg Selling Price

© 2008 Oracle Corporation – Proprietary and Confidential 44 In-Flight Promotion Lift Exception Business Benefit Daily monitoring of promotional sales not showing any increase (a.k.a. lift) in order to make any changes in promotion execution.

© 2008 Oracle Corporation – Proprietary and Confidential 45 Exception Management Dashboard

© 2008 Oracle Corporation – Proprietary and Confidential 46 Exception Management Dashboard Example

© 2008 Oracle Corporation – Proprietary and Confidential 47 Exception Management Dashboard Example (continued)

© 2008 Oracle Corporation – Proprietary and Confidential 48 Top Exceptions Reports

© 2008 Oracle Corporation – Proprietary and Confidential 49 Top Exceptions by Product Category Description

© 2008 Oracle Corporation – Proprietary and Confidential 50 Top Exceptions by Customer Description

© 2008 Oracle Corporation – Proprietary and Confidential 51 Exceptions by Product Category & Customer Reports

© 2008 Oracle Corporation – Proprietary and Confidential 52 Exceptions by Product Category Description

© 2008 Oracle Corporation – Proprietary and Confidential 53 Exceptions by Customer Description

© 2008 Oracle Corporation – Proprietary and Confidential 54 Inventory Position Details

© 2008 Oracle Corporation – Proprietary and Confidential 55 Inventory Position by Product Category Description

© 2008 Oracle Corporation – Proprietary and Confidential 56 Inventory Position Details by Customer Description

© 2008 Oracle Corporation – Proprietary and Confidential 57 Forecast Accuracy Details

© 2008 Oracle Corporation – Proprietary and Confidential 58 Forecast Accuracy by Prod Category Description

© 2008 Oracle Corporation – Proprietary and Confidential 59 Forecast Accuracy by Customer Description

© 2008 Oracle Corporation – Proprietary and Confidential 60 Item Distribution Details

© 2008 Oracle Corporation – Proprietary and Confidential 61 Item Distribution by Product Category Description

© 2008 Oracle Corporation – Proprietary and Confidential 62 Item Distribution by Customer Description

© 2008 Oracle Corporation – Proprietary and Confidential 63 Promotional Price Deviation (PPD) Details

© 2008 Oracle Corporation – Proprietary and Confidential 64 PPD by Product Category Description

© 2008 Oracle Corporation – Proprietary and Confidential 65 PPD by Customer Description

© 2008 Oracle Corporation – Proprietary and Confidential 66 Additional Resources

© 2008 Oracle Corporation – Proprietary and Confidential 67 Additional Resources For more release information on MetaLink ment?p_database_id=NOT&p_id= https://metalink.oracle.com/metalink/plsql/ml2_documents.showDocu ment?p_database_id=NOT&p_id= For more information about Oracle Applications For more information about Education For more information about Support For MetaLink information For Oracle Product documentation:

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© 2008 Oracle Corporation – Proprietary and Confidential 69