What is the Purpose of Internal Sales Order in OM ?

Why do we need Internal Requisitions and Internal Sales Orders?

Internal Requisitions (IR) and Internal Sales Orders (ISO) are used to transfer material from one inventory organization or warehouse to another, within the same company.

Why not use Inter Organization Transfer Feature?

IR and ISO provide us with a way to transfer material where we can introduce an approval mechanism for ordering material, and also track the transaction through documents. These features are not available in the Inter Organization Transfer utility.

The inventory organizations involved in the transaction may belong to the same Operating Unit or they may belong to different Operating Units.

The Data Flow for Internal orders

Why Back to Back Order or Drop-Shipment ?

Why Back to Back Order or Drop shipment ?

In B2B Order the shipment process is completed throu Order Management as a standard order after the item is received againts a Purchase order

Example: A order X from B

B Order Item X from C

C ship Item X to B

B Ships Item X to A

B bills A for the Order, C bills B for the order

Drop shipment is a method of order fulfillment where the organization taking the order may or may not maintain their own inventory for the drop shipped product, but fulfill their orders though 3rd party vendors who directly ship to the end customer ordering for the product.

Example:A orders item X from B

B orders Item X from C

C Shps Item X to A

B bills A for the Order, C bills B for the order

In B2B the source is Internal, the item would be procured after the order is created or after the demand is made

In Drop Ship the Source is External, inventory not effected Logial receiving, logical receiving is done against the ASN received from Supplier

B2B can be used across all showroom retailers and wholesale type of business to cater to challenge of maintaining stocks to handle unexpected large demands from certain customers where it is not in the best interest of such organizations to stock for them.

Drop Ship is suitable for agency typ eof business where companies book orders on behalf of other manufacturers and businesses not willing to do by themselves , also Suitable for MNCs which have a central warehouse design to meet customer demand over a large geographical area.

What does scheduling do?

Scheduling on order management 

1. Determines source (warehouse) for the sales order line based on the sourcing rules
2.It derives Schedule ship date, Schedule arrival date,  Delivery lead time and Shipping method.
3. Scheduling also set the VISIBLE_DEMAND_FLAG to Yes and makes order line visible to the planning applications .

We can schedule the line automatically by setting either of below options 

1. Setting Profile option - OM:AutoSchedule
2. Set the Autoscheduling check box while defining the Order Transaction type.
3. From Order UI , Sales order line Tools > Autoschedule.
4.Set scheduling Manually by 
Right click the line and then Select  progress Order.
Run Concurrent Program "Schedule Orders".
Use workflow to schedule line.
Select the Order line then Tools > Scheduling from Sales Order form

What 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.

This model organized and focused on the five primary management

1. PLAN
2. SOURCE
3. MAKE
4. DELIVER
5. RETURN

A typical supply chain involves the following stages or entities

1. Customers
2. Retailers
3. Distributors
4. Manufacturer/Enterprise
5. Vendors

What is Oracle’s SCM Solution for Customer

1. Design:
SCM start with designing & developing new products where Product specifications are created. Few Important applications play major role in this phase.

1.     Oracle Product Life cycle Management
2.     Oracle Advanced product Catalog
3.     Engineering & Bills of Materials

2. 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. These are application potentially can be used.

1.     Telesales
2.     Trade Management
3.     Incentive Compensation
4.     Order Capture
5.     Oracle sales

3. 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.

1.     Advanced Supply Chain Planning
2.     Global Order Promising
4. Sell & Manage Order: 
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.

1.     Order management
2.     Advanced Pricing
3.     Configurator
4.     iStore

5. Procure:
Here you normally 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.

1.     Purchasing
2.     iProcurement

6. Manufacture:
Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery.

1.     Cost Management
2.     Process Manufacturing
3.     Project Manufacturing
4.     Quality
5.     Work in Process

7. Fulfill & Release Management :
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.

1.     Shipping Execution
2.     Inventory Management
3.     Warehouse Management System
4.     Transportation Execution

8. Service & Maintain: 
Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

1.     Depot Repair
2.     Field Service
3.     Install Base
4.     Service Contracts

Oracle SCM Solutions
Oracle provides two streams to capture entire supply chain planning.
1.    Manufacturing: Consists of Inventory, Bills of Material & Work in process to capture details of every type of manufacturing like discrete, batch, mass production.
2.    Distribution: Consists of Inventory, Purchasing, and Order Management to capture entire procure to pay & order to cash business processes.