Order Management Dropship

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Order Management Dropship

Transcript of Order Management Dropship

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 1

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 2

    Oracle Advisor Webcast Program

    Current schedule

    Archived recordings

    Doc ID 740966.1

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 3

    Future Advisor Webcasts

    For Today's Webcast,

    We suggest you review and bookmark the following

    KM Document in My Oracle Support:

    Note:1279531.1 How To Process Drop Shipments

    For Standard Items [Video]

    Join us for Upcoming Logistics and Master Data

    Management Community Webcasts.

    For complete details on all upcoming Oracle

    Advisor Webcast Events, please review:

    Document 740966.1, Oracle Advisor Webcast

    Schedule in MOS

    Advanced Catch-Weight with WMS October 23rd, 2013 at 1 pm ET, 12 pm CT, 10 AM PT See Note 1583954.1

    Upcoming Webcasts

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 4

    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 decision.

    The development, release, and timing of any features or

    functionality described for Oracles products remains at the

    sole discretion of Oracle.

    Safe Harbor Statement

  • Oracle Advisor Webcast

    Inventory Drop Shipments

    Jean-Claude Nguyen, James Spaith, Steve

    Cooper, Veena Raina and Binh Nguyen

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 6

    Objectives

    To provide general overview of Drop Shipment Process To demonstrate Drop Shipment Process for Standard Items To provide basic understanding of the data flow from Order

    Management and Purchasing into Inventory

    To discuss table mapping for those modules or products affected To provide basic troubleshooting techniques for Drop Shipment orders

    stuck in MTL_TRANSACTIONS_INTERFACE and other tables

    To discuss on a high level some of the diagnostics used by Oracle Inventory Support to troubleshoot stuck Drop Shipment orders, and to

    understand the process

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 7

    Agenda

    General Overview of Drop Shipments

    Basic Requirements

    Demo For Drop Shipment Process

    Drop Shipment Data Flow

    Drop Shipment Table Mapping

    Recommended Diagnostics for Troubleshooting

    References and Additional Information

    Q & A

    In this presentation we will discuss the following topics:

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 8

    General Overview Of Drop Shipment Process

    Drop shipping functionality enables you to take an

    order from your customer and fulfill it directly from your

    suppliers site. Order Management enables you to enter drop ship sales orders and lines for standard,

    model and kit, and configured items, although you

    currently cannot perform a drop shipment for Ship

    Model Complete (SMC) PTOs.

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 9

    General Overview Of Drop Shipment Process

    You can receive orders for items that you do not stock or for which you lack

    sufficient inventory, and have a supplier provide the items directly to your

    customer. The benefits of drop shipping include:

    No inventory is required

    Reduced order fulfillment processing costs

    Reduced flow times

    Elimination of losses on non-sellable goods

    Elimination of packing and shipping costs

    Reduced inventory space requirements

    Reduced shipping time to your customer

    Enables you to offer a variety of products to your customers

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 10

    General Overview Of Drop Shipment Process

    When processing drop shipments for orders, you can:

    Optionally receive an electronically processed Advanced Shipping Notices (ASN)

    Automatically perform logical receipts upon notification of shipment

    Perform Drop Ship for both make and buy items, and automatically default the source type of External for order lines which need to be

    drop shipped

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 11

    General Overview Of Drop Shipment Process

    The supply and demand details for drop ship orders

    are not visible to Oracle Planning applications.

    Therefore, it is recommended that you associate

    separate logical (dummy) organization for shipping

    drop ship orders; the logical organization should not

    be included in your planning processes.

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 12

    General Overview Of Drop Shipment Process

    Its not uncommon to see companies use drop ship items in normal inventory organizations. This is fine as long as

    the company is not using MRP or Min-Max. The reason

    for this is because Min-Max and MRP are designed to

    consider all supply as expected increases in on- hand

    quantity while in actuality, supply tied to drop ship orders

    will increase the on-hand quantity and then the on-hand

    quantity will immediately be decremented for the quantity

    received.

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 13

    General Overview Of Drop Shipment Process

    Since this false supply can throw MRP and Min-max off for the quantities listed on drop ship purchase orders, its recommended that drop ship inventory organizations are

    created entirely separate from non-drop ship inventory

    organizations. The Order Management Users Guide mentions that drop ship organizations should be logical inventory organizations; which can be translated to say

    drop ship orders should only be conducted in drop ship

    inventory organizations.

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 14

    Demo For Drop Shipment Process for Standard Items

    Basic Item setup and required profiles

    Drop Shipment Order Flow 1. Enter an order for drop ship item

    2. Book the order

    3. Run Requisition Import

    4. Create a purchase order from the requisition

    5. Approve the purchase order

    6. Receive against the PO and create Sales Order Issue

    7. Demonstrate some common problems and troubleshooting techniques

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 15

    Live Demo

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. 16

    1

    OEXOEORD.fmb

    Sales Orders

    Create/Book

    Source Type = External

    Work Flow Background

    Process

    FNDWFBG

    wfengs.pls & wfengb.pls

    Requisition Import

    REQIMPORT

    pocirm.oc & pocis.opc

    Create Release

    PORELGEN

    porgcon.sql

    2

    3

    4

    POXBWVRP.fmb

    Auto Create Purchase Order

    POXPOEPO.fmb

    Approve Purchase Order

    5

    RCVRCERC.fmb

    Purchase Order Receipt

    RCVOLTM

    RVCTP or RTP

    Sales Order Issue

    Inventory

    Transaction Manager

    INCTCM

    Inventory

    Transaction Worker

    INCTCW

    Drop Ship Flow Diagram for Items Note 1279531.1

    The data flow for the inventory

    transaction manager/worker can

    be found in Note 74477.1

    LEGEND

    User/Action

    Form

    Button

    Package

    Table

    Annotation

    1 to Many

    Relationship

    1 to 1

    Relationship

    Data Flow

    OE_ORDER_HEADERS_ALL

    HEADER_ID (PK)

    ORDER_NUMBER

    OE_ORDER_LINES_ALL

    LINE_ID (PK)

    HEADER_ID

    PO_REQUISITION_HEADERS_ALL

    REQUISTION_HEADER_ID (PK)

    SEGMENT1 (Requisition Number)

    PO_REQUISITION_LINES_ALL

    REQUSITION_LINE_ID (PK)

    REQUISITION_HEADER_ID

    OE_DROP_SHIP_SOURCES

    DROP_SHIP_SOURCE_ID (PK)

    HEADER_ID

    LINE_ID

    REQUISITION_HEADER_ID

    REQUISITION_LINE_ID

    PO_HEADERS_ALL

    PO_HEADER_ID (PK)

    SEGMENT1 (PO Number)

    PO_LINES_ALL

    PO_LINE_ID (PK)

    PO_HEADER_ID

    OE_DROP_SHIP_SOURCES

    DROP_SHIP_SOURCE_ID (PK)

    HEADER_ID

    LINE_ID

    PO_HEADER_ID

    PO_LINE_ID

    MTL_SUPPLY

    PO_HEADER_ID

    PO_LINE_ID

    PO_DISTRIBUTIONS_ALL

    PO_DISTRIBUTION_ID (PK)

    PO_LINE_ID

    RCV_TRANSACTIONS

    TRANSACTION_ID (PK)

    RCV_SHIPMENT_HEADERS_ALL

    SHIPMENT_HEADER_ID (PK)

    RECEIPT_NUM

    RCV_SHIPMENT_LINES_ALL

    SHIPMENT_LINE_ID(PK)

    SHIPMENT_HEADER_ID

    PO_DISTRIBUTIONS_ALL

    PO_DISTRIBUTION_ID (PK)

    PO_LINE_ID

    PO_LINES_ALL

    PO_LINE_ID (PK)

    MTL_SUPPLY

    PO_HEADER_ID

    PO_LINE_ID

    MTL_MATERIAL_TRANSACTIONS

    TRANSACTION_ID

    MTL_RESERVATIONS

    RESERVATIONS_ID (PK)

    OE_ORDER_HEADERS_ALL

    HEADER_ID (PK)

    OE_ORDER_LINES_ALL

    LINE_ID (PK)

    MTL_MATERIAL_TRANSACTION_TE

    MP

    TRANSACTION_TEMP_D (PK)

    MTL_TRANSACTIONS_INTERFACE

    TRANSACTION_INTERFACE_ID (PK)

    MTL_MATERIAL_TRANSACTIONS

    TRANSACTION_ID (PK)

    MTL_RESERVATIONS

    RESERVATIONI