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Oracle Fusion Supply Chain Management - Transforming Business Operations (Part-1)

Guest post by
Rajesh Rajagopalan, Senior Consultant, Infosys


Supply chain management is a core function of any organization which sells/buys/utilizes products and services. It empowers an organization to work on margin improvisation and improve on working capital. However, organizations in a quest to satisfy customer requirement, may end up piling up stocks, build redundancy in spare parts or consumables. An effective supply chain solution in an organization must address this in every aspect like stock procurement plan, stock rotation, demand planning, fulfillment and warehouse operations.

In this blog, I provide an overview of Oracle supply chain management of Oracle Fusion suite and briefly touch upon the supply chain industry trends. In the next part, I will bring forward our point of view on how Oracle Fusion supply chain management caters to these industry needs.

Oracle Fusion Supply Chain Management 11g Release1 includes the following modules:

  • Oracle Fusion Distributed Order Orchestration (DOO)
  • Oracle Fusion Product Master Data Management (PIM)
  • Oracle Fusion Logistics includes Inventory, Shipping and Receiving
  • Oracle Fusion Costing

Industry Trends

Highlighted are key drivers which have significant impact on Supply Chain function-

  • Distributed Warehouse Solution
    In current scenario for manufacturing industries, it is imperative that acquisitions/mergers will keep happening. Comes with it are Order Orchestration and Order Promising complication in sourcing of materials and the logistics handling to customers, that needs to happen from multiple locations spread across Geography's and systems.
  • Intuitive and Unified Interface for Order Capture
    Global Organizations have demand from Order entry UI to cater unique requirements apart from standard fields to capture. Globalization efforts by end-user organizations require more robust, integrated Supply chain Planning processes across more complex networks at a regional or a global level. 
    These unique requirements may be organization specific data like online information like the last quote given to the customer, previously known margin approved for that customer, a configuration previously ordered by the customer and the vendor from which the components are procured.
  • Intuitive Movement towards effective Master Data Management, Electronic data handling of item attributes
    Today, Organizations having different disparate systems operate with different product information across the globe. Organizations face difficulty in effectively managing the product attributes, which demands the need on more robust MDM system that is capable to provide user friendly attribute definition, security in maintaining the values.
  • Better Repair and return process with global sourcing of Parts
    Global sourcing of spare parts brings forth the challenge to maintain the link between the spare part and the final product sold.  The requirement from the ERP solution is to provide a "Bills of material" of the spare parts at the time of recording the repair or return order for an assembly.
  • Tighter Integration between sales opportunistic demands to supply chain planning
    There is a growing need in the industry that the sales forecasts captured are imported to the sales operations planning systems so that there is a seamless flow of data. A better picture from both sales (demand) and planning (supply) is needed that will go long way in performing supply chain management of a business.

Discussed above are the industry trends in the supply chain management sphere. In part-2, I will discuss how Oracle Fusion Supply Chain Management Applications would stack up with the above Industry Trends.


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