Spotlight on

Oracle Supply Chain Management Cloud

PHOTO
UPDATE 20A

JON CHORLEY, CSO & GVP, Product Strategy

Hello and Welcome. My name is Jon Chorley and it’s my pleasure to bring you this overview
of the some of the new and enhanced capabilities in Oracle Supply Chain Management Cloud,
Update 20A.

Update 20A is one of our biggest releases ever and so we’ve a lot to cover. Let’s begin.

Central to this release is Project-Driven Supply Chain, which is an end-to-end solution across
Oracle’s SCM Cloud and ERP Cloud applications. This solution is designed to support those
business processes of manufacturing and asset-intensive companies, where supply chain
must work in the context of a specific Project.

Examples include: Telecom network build out and maintenance, high-tech and industrial
turnkey installations, as well as the delivery of complex products and services to unique
customer requirements.

In such cases, all activities of supply chain, including order management, procurement,
material management, manufacturing, sales and service, are segregated by a specific project.
This ensures end-to-end integrity of supply and their associated costs.

An integrated project-driven supply chain solution benefits sales, project management, design
and engineering, logistics, manufacturing, and finance functions, resulting in improved
operations efficiency and company profitability.

Project-specific manufacturing requires that inventory be segregated and valued by project to

comply with the sales contract. Also that the costs associated with supply chain activities must
be captured as project expenditures and billed based on the rules in the project contract.

Update 20A’s Project-Driven Supply Chain, or PDSC solution, allows you to accomplish this
segregation within each organization. This allows you to simultaneous support within each
organization, or combination of organizations, all supply chain processes for each project.
Project-enabled organizations can also simultaneously support non-project striped material
and processes, further enhancing your flexibility.

You can also use PDSC in an asset-intensive context to manage the build of assets such as
cellular networks or gas pipelines, while conforming to the budgets and schedule of a corporate
plan, and complying with regulatory requirements.

As noted PDSC is a pervasive capability spanning all aspects of Supply Chain, from Procurement
to Inventory to Manufacturing to Ordering to Shipping and to Costing – as well as integration
to ERP Projects and Project Accounting. It is a powerful extension to Oracle Supply Chain
Management Cloud, illustrating the deep digital integration of Oracle’s overall Cloud solutions,
and will deliver benefits to many customers, industries and use cases.
Now on to Supply Chain Planning Cloud where Update 20A delivers two new major product
capabilities – Replenishment Planning and Backlog Management.

Replenishment Planning is delivered as part of Demand Management Cloud. Industries such

as distribution, healthcare, and consumer-oriented enterprises must restock hundreds or
thousands of inventory locations on an ongoing basis. This also applies in other industries
for any components, such as supplies and consumables, that are not managed as dependent
demand. The sheer number of products and locations makes it difficult to maintain the right
level of supply, especially when demand changes.

The new replenishment planning capability in Demand Management Cloud helps you do that
and to improve fill rates and reduce stock outs.

Replenishment planning features helps you predict consumption and plan replenishment in a
more manageable way. The system assigns item locations to inventory policy segments based
on their requirements, and then uses forecasted or historical demand to decide when and how
much to replenish.

While most of the process is automated, you’re still in control. You can monitor exceptions,
make changes to policies, and analyze and adjust parameters for individual items and locations
as needed.

A graphical workbench helps you identify root causes and simulate the best way to minimize
stockouts as well as overstocks with the least disruption.

The second major new capability is Backlog Management. This is delivered as part of Supply
Planning Cloud.
When demand exceeds supply, or when short supply product becomes partially available, you
need to fill your most important orders first. Conventional order promising systems schedule
orders on a first-come, first-served basis, but Update 20A’s new backlog management capability
in Supply Planning Cloud, prioritizes your entire backlog of open orders based upon flexible
business rules. Higher-priority orders get the first access to available supply, but existing
scheduled dates are preserved whenever possible.

For example, you can choose to fill the highest revenue orders or those for the most critical
customers or channels before those that are less strategic. Backlog Management lets you
simulate different alternatives, make adjustments, and compare the financial and scheduling
impact of each scenario before you update order fulfillment dates in Oracle Order Management
Cloud or on-premise execution systems. You can also run the solution in “lights out” mode to
improve scheduled dates based upon updated supply availability.

Now on to the Product Management and Quality areas. Update 20A adds a host of additional
capabilities on top of the already significant 19D Update.

Update 20A allows you to view quality issues and actions in the context of the item/organization
directly from the Items page in the Product work area. This simplifies your ability to get a well-
rounded view of an item without having to switch between the Quality and the Product work
areas.

New and more flexible Quality inspection features allow you to optimize inspection data
collection by switching between selective sampling and 100% inspection for materials with
high value or higher probability of defects. In addition, you can adapt the inspection process
based on the which serialization strategy is in use at your company.
In the Product Development area, previously you had to return the change order to an open
status to add approvers. With Update 20A you may now add Approvers to a change order
while it is in progress – and you make this Ad-Hoc without the need to change the normal list
of approvers.

Several changes have been made to improve the productivity of the Structure View utilizing a
new side panel.

This allows you to quickly navigate to additional information or to reference designators, move
up or down the structure to add or edit additional information or reference designators, while
in the context of your component, and to easily identify whether a component has reference
designators or navigate to the side panel from the new reference designator icon.

Setting the appropriate security for internal and external parties on products and components
is critical to the successful implementation of Product Management. To provide the greatest
possible flexibility on how this may be managed, Update 20A introduces new REST Services to
Manage Security Grants for Items and Trading Party Items at the instance or set level.

Now on to Inventory and Order Management processes where many changes were made to
support PDSC.

For your project-enabled organizations, you can receive project-specific material and maintain
the project-specific designation throughout the lifecycle of the good. This means you can view
on-hand balances for each project and task, reserve project-specific material for project-specific
orders or transfers, then pick and ship the project-designated material all while maintaining
project-specific valuation.
This integrates with updates in 19A which supported the ability to Capture and Ship with a
project stripe, thus providing a complete flow. Update 20A provides the same ability when you
import orders using file-based data import (FBDI), ADF web services, and REST APIs.

Now on to some non-PDSC related changes in this area.

In certain circumstances, your organization may need to ship more than or less than the ordered
quantity. Update 20A now allows you to over-ship or under-ship using shipment tolerances,
where you can specify the percentage over or under the ordered quantity that can ship for an
item on an order line. This helps reduce exception conditions for faster order processing.

The country of origin of material is important for companies that source or ship goods
internationally, creating the need to track and report on countries of origin to support regulatory
requirements and international trade programs.

With update 20A, country of origin can be optionally tracked during receipt in inventory on-
hand balances and transactions, in manufacturing transactions and product completions, in
shipping execution, and finally reported in costing.

On now to Logistics. In Oracle Transportation Management Cloud, Logistics Network Modeling,

delivered in earlier updates, allows you to perform strategic and tactical analyses of your
transportation network using real-world operational data. Update 20A further expands the set
of business objects that users can choose to apply scenario data changes, giving users more
power and flexibility to model and optimize logistics networks.
In Oracle Global Trade Management, we continue to focus on expanding support for trade
agreements. In Update 20A, we extended the workflow to perform automated analysis of
transactions. To improve productivity Tariff Eligibility Screening is enhanced allowing users to
review many records simultaneously. Finally, Campaign Management improvements enable
sending automated reminders to your suppliers, and a new campaign workbench for managing
everything.

Switching now to Manufacturing, the most major new capability in Update 20A is Manufacturing
support for Project-Driven Supply Chain which allows any work order to be striped and
associated with a Project. However, as this was covered earlier, we’ll take that all as read.

Manufacturing Update 20A introduces the ability add a count point, or an automatically
transacted operation, to a work order that is already in released status. This enables you to
better handle quality issues that trigger rework, customer-driven or capacity-driven changes,
or any other changes to the standard sequence of operations while the work order is in-flight.

In Costing, Update 20A also adds a number of new capabilities. First is an enhanced desktop
integration spreadsheet upload process that enables you to create and edit costs, review errors,
and trigger the import process, all from your spreadsheet.

Update 20A also allows you to optionally compress the lot or serial-level data to the sub-
inventory or organization level to improve usability and processing performance.

The Process Period End Validations scheduled process now allows you to efficiently review
period-end validation issues for a user-defined group of cost organizations or for all your
authorized-cost organizations.

The final Costing related change in Update 20A is the support of costing of description-based
purchase order receipts associated with maintenance work orders. These will use the purchase
order line description as the item description.

In Supply Chain Financial Orchestration Update 20A, you may now use any item catalog
categories as qualifiers in Supply Chain Financial Orchestration, including those that are not
tied to the Financial Orchestration functional area, allowing you to model your financial flows
based on category values at any level of the category hierarchy.

Now on to Maintenance, where the principle changes in Update 20A are related to support
for PDSC flows. This enables you to perform maintenance activities on several projects, using
project-owned material, and capture all costs as project expenditures.

Update 20A further expands our Integrated Field Service capability, which brings together
Engagement Cloud, Supply Chain and Field Service, by adding the support of Depot Repair
flows. These are the flows related to the repair and return of a customer’s product.

The Manage Depot Repair UI efficiently manages the entire flow of work in your repair
organization, and provides complete visibility into the overall status of your repairs, linking
the inbound and received returns to the associated service request, repair work order, service
charges, shipment order, and invoice.
Additionally, the Depot Repair Workbench is available to drill down into the details of a specific
repair, which provides a complete, 360-degree view of the entire repair process for a specific
asset. This insight helps you quickly and easily repair and return your customer’s asset, debrief
the work performed, and properly bill for the services rendered.

Let’s now look at capabilities related to Oracle Blockchain and IoT applications. First, Blockchain.
Oracle Intelligent Track and Trace now provides pre-built integrations with Oracle Procurement
Cloud and Oracle Transportation Management Cloud to allow bringing in documents and
artifacts such as a bill of lading. These help with visibility and traceability of supply chain
transactions within the enterprise or across a multi-tier enterprise supply chain.

Oracle IoT Applications have introduced multiple enhancements for improved visualization of
sensor data, based on our experience in real-world customer projects. IoT Applications now also
support uploading and interacting with 3D CAD models for a much improved user experience.
In addition, to simplify management of large numbers of assets, a new bulk asset management
capability is also available.

The integration between IoT Applications and Maintenance Cloud has been improved to
support automatic import and synchronization of assets from Maintenance into IoT Asset
Monitoring and IoT Production Monitoring. The integration now also supports importing DFFs
that can be used to search and filter in IoT Asset Monitoring.

For full details of what’s in Oracle Supply Chain Cloud, Update 20A, please review the What’s New
and New Feature Summary Documents on Oracle.com/readiness and these other resources.

My name is Jon Chorley, and thank you for watching.

 Resources
Oracle Cloud
Oracle Cloud Readiness Content
Oracle Cloud Customer Connect
Oracle Documentation