Enhanced Order Fulfillment using Oracle Global Order Promising (GOP aka. ATP) Navneet Goel Development Manager Oracle Corporation

Demand Planning Process Supply Planning Process Traditional Approach Customers Suppliers Multi-step planning processes, high latency, limited collaboration Tier 2 Response 1: Maintain Excess Inventory Response 2: Reserve Production Capacity Response 3: Expedite Everything! Tier 1 Marketing Forecast Distribution Plans Production Plans Manufacturing Plans Sales Forecast Lets start with a discussion of the current state of typical order promising processes. Despite the importance of accurate and timely commitments to customers, most companies have very disconnected and manual processes for scheduling and committing customer orders. Typically, the customer needs to send in an order, or have a customer call in to an order entry clerk. The order management system is typically disconnected from the planning system, which is further disconnected from suppliers and carriers. This leaves two choices: Promise based on a standard lead time and hope products get delivered on time, or Call a planner and ask him to investigate when an order can ship. Implications of the traditional order promising model Poor on-time delivery performance Long manual scheduling processes Dependency on standard lead-times Excess inventory to buffer deliveries Potential lost sales Expediting ? Mfg Forecast t = weeks Demand Planning Process Supply Planning Process Supply Chain Built on Inventory

A Better Way There is a better way.

Move to a More Competitive Model Customers Suppliers Tier 2 Oracle’s APS: zero latency, real-time collaboration Tier 1 Internet Enable closed loop planning processes across your value chain Provide total supply chain visibility Make better decisions React immediately to changes in supply chain Portal Portal Collaborative Planning Process Collaborative supply plan Collaborative demand plan Automated exceptions Automated exceptions Marketing forecast Single holistic plan Automated exceptions Sales forecast Oracle can provide you a collaborative, holistic, e-business planning processes that can streamline your planning process and drive value to your top and bottom line. Customers or sales people can get accurate availability information from anywhere via the web or mobile devices, and the entire process of configuring, pricing, credit checking, and scheduling the order can be automatic and real time. Commitments to customers are provided immediately, and take into account all of the capabilities of your extended supply chain, including your suppliers and carriers. Specifically Oracle Global Order Promising enables you to: Provide customers 24x7 order promising from anywhere Improve reliability and accuracy of commitments to customers Increase customer satisfaction and increase revenue Consensus forecast Mfg forecast t = hours Demand Planning Process Supply Planning Process Build your Supply Chain on Information not Inventory

Agenda APS Overview/ Architecture Oracle’s ATP flavors Set up Profile Options Key Concurrent Requests Core GOP features GOP Computation Diagnostics Q&A/ Feedback Acronyms are listed at end, please refer for better clarity.

Order Promising Engine APS Architecture Advanced Planning A P I S Trading partners Internal Users Internet Oracle ERP Legacy Systems XML EDI Flat file Order Promising Engine Portals Analytical Workspaces KPIs Workflows Plans Oracle ERP 10.7 Oracle ERP 11.0 Oracle ERP 11i

Oracle’s ATP Flavors Setup via profile “INV: Capable to Promise” ATP based on Collected Data (ODS) Single Level ATP Supports simple supply chain ATP/CTP based on Planning Data (PDS) CTP across supply chain using Sourcing/BOM/Routings Based on ASCP plan in APS Supports complex supply chain model

Collection Based ATP (ODS) Single Level ATP in requested org/ Global ATP Need to run “Data Collection” Complete Net Change ATP Rule determines: Supply/Demand to be included Infinite Supply Fence May use a Supply Schedule, e.g., MPS Item types supported are: Standard items Product Family Pick-to-Order (PTO)/Assemble-to-Order (ATO) Models ATO Items/ Pre-configured Items Kits

Planning Based ATP (PDS) Promise orders based on: Material availability Manufacturing capacity Supplier capacity End-Item/Component Substitution Product Family Infinite Supply Time Fence Manage commitments to key customers Re-schedule and re-sequence your backlog Item types supported are: Standard items Product Family Pick-to-Order (PTO)/Assemble-to-Order (ATO) Models ATO Items/ Pre-configured Items Kits

Planning Based ATP (PDS) Global statement of availability All facilities, material, resources, and suppliers Region-Based Sourcing Summary Based ATP Allocate available supply By channel, customer, or product Priority and stealing rules Time phased Must have an ASCP plan set as ATPable Resource Batching

GOP Setup Profile Options ATP Flag Setup Sourcing/ BOM/ Routings ATP Rule Time Fence supply/demand sources (ODS) Plan Options Request Date Type Ship/Arrival Sets ATP Flag may be set at various levels: Item (ATP & Components flag) Resource Plan Supports Request Date Type: Ship Date (Capable-to-ship) Arrival Date (Capable-to-Deliver) One or more Lines in single call (from 1 or more Sales Orders) One or more Ship Sets/Arrival Sets in single call Plan Options Sourcing Optimization Demand Schedule Supply Schedule

Profile Options INV: Capable To Promise INV: External ATP MRP:ATP Assignment Set MRP: Calculate Supply Demand MRP:Include Substitute Components MSC:ATP Assignment Set MSC: ATP Debug Mode MSC: Enable Allocated ATP MSC: Class Hierarchy MSC: ATP Allocation Method MSC: Enable ATP Workflow MSC: Enable ATP Summary Mode MSC: Plan co-products INV: Extrenal ATP is applicable only for 10.7 & 11.0 sources

Concurrent Request/Set System Administrator Responsibility Gather Schema Statistics Create APS Partitions OM Responsibility – For ODS ATP (no APS) ATP Data Collection Load ATP Summary Based on Collected Data

Concurrent Request/Set Run from Advanced Supply Chain Planner Responsibility Planning Data Collection Launch ASCP Plan Create ATP Partitions (Only during upgrade) ATP Post Plan Process Refresh Allocation Hierarchy Materialized View Analyze Plan Partitions

Core GOP Features

Global Availability - Example Customer1, Site1 Requests Item A Rank 1 Rank 2 A/Org1 (M1) A/Org2 (M2) Sourcing Rule(SR-A) Assignment Set Cum ATP ATP Request Info: Request Qty 100, Request Date Day10, Latest Acceptable Date Day12 ATP Result: Qty 100 from M2 on Day12

Global Availability Availability Information across warehouses Best option based on Availability Rank Sourcing via Region-based rules Computes Delivery LT and Ship/Arrival Date Supports calendar for Shipping Receiving Carrier/In-transit

Region Level Sourcing Multiple levels of Geographical Hierarchy Region based Inter-Location Transit times/ ship methods for customer-site and shipping warehouse Enable sourcing/ lead time calculation for new customers Supports flexible hierarchical setup via assignment set/ sourcing rules Profiles MRP: ATP Assignment Set MSC: ATP Assignment Set

GOP with No Downtime (24X7 ATP) Zero downtime No downtime when underlying supply chain plan is refreshed No SO is lost, automatically re-promise SO against new plan Open, reliable, and scalable Engine runs inside the database, No memory models to load! Multi-threaded Integrated with OM, Quoting, iStore, etc. Easy integration with legacy systems

Capable to Promise (CTP) - Example A (Customer 1, Site 1) 1 day lead-time 5 day lead-time A (Org 1) A (Org 2) B (Org 1) R1 (Org 1) B (Org 2) R2 (Org 2) 5 day lead-time 4 day lead-time B (Supplier 1) B (Supplier 2)

Capable to Promise (CTP) Increased order fill rate using extra manufacturing and supplier capacity CTP finds availability using make/buy/transfer info by request date (Backward Scheduling) Forward Scheduling involves look ahead CTP, determines when orders for items can be fulfilled Recursive check against BOM

Allocated ATP Group/ Prioritize Customers per business need thru Demand Class Customer Class Hierarchy Material may be allocated to these groupings using Pre-defined allocation rules Forecast quantities as honored by ASCP Plan Stealing of supplies from lower priorities prior to CTP Ensure target supply to key customers

Allocated ATP Manage commitments to key customers Allocate availability to more profitable channels Another key area is the ability to manage during periods of scarce supply. Allocated ATP allows you to manage the channels, customers, or products you allocate supply to. This allows you to, for example, set aside availability to meet contracted commitments to key customers, or to share short supply fairly among all of your customers.

End-Item Substitution Improved demand fulfillment/ inventory utilization Supports Single or Bi-directional Substitution, chaining Time phased Substitution, substitution window Rule Based/ Customer Specific substitution Availability of Requested vs. Substitute Item CTP for Requested vs. Substitute item Exception/ Workflow Notification for Item Substitution Stealing prior to Substitution with Allocated ATP All or Nothing Substitution only during Order Promising ASCP plan may recommend mix of substitutes for a SO

Product Family ATP 2 Flavors Plan must contain PF Item as well based on ATPable PF Item Only (Pre-11.5.10) using member item within Aggregate Time Fence and PF item outside Aggregate Time Fence (11.5.10) Plan must contain PF Item as well Forecasting may be done either for PF or member item CTP will be done on member item, if needed, for time-phased PF ATP Supports Allocated ATP Post-plan process used to process PF item data

Supplier Capacity Supplier Capacity may be checked during CTP defined in ASL Infinite Capacity after last date in ASL Sourcing Rule/Assignment Set per ASCP Plan Creates Planned Orders for Supplier-Site in ASCP Plan Planned Orders may be released prior to next plan run

Resource Batching Batch process: Same work on multiple items for a pre-set amount of time by same resource simultaneously, like heat treatment, sand blasting, etc. Resources are constrained by product of time and weight or volume, i.e., capacity multiplied by time. Only for constrained plans with routings Setup: Enable batchable flag, Capacity UOM in ERP Profile: “MSO: Global Batchable Flag” in APS

Summary Based ATP Supports enhanced performance with accuracy Profile: “MSC: Enable ATP Summary Mode” Post-plan process generates summarized data Run Concurrent program periodically for incremental summary For high volume transactional situation if lot of orders need to be taken in short time Recommended: if majority of orders come thru EDI processing, Order Imports, etc user may not be interested in viewing/analyzing ATP Details

GOP Computation Netting Backward Consumption Forward Consumption Net Supply-Demand for a given day/time period Backward Consumption Use surplus from past to cover existing shortage Forward Consumption Use future surplus to cover existing shortage Accumulation Carry over the availability Stealing (for AATP) Steal supplies from lower priority tiers for new demands

GOP Computation Example D1 D2 D3 D4 Supply 10 10 10 10 Demand 4 18 6 7 Net Qty 6 (-8) 4 3 Backward 0 (-2) 4 3 Forward 0 0 2 3 Cum Qty 0 0 2 5

Summary Pegging Info

Supply/Demand Details

ATP Period Info

Diagnostics – Setup Input Data Profile Options Item Attributes Regions/Zones Sourcing setup Lead Times Infinite Time Fence ATPable Plan Info BOM/ Routings Allocation Method/ Rule/ Percentage/ Priority Resource Batching End Item Substitutes Component Substitutes

Diagnostics – Debug/Trace File Set user profile (MSC: ATP Debug Mode) before invoking ATP/ Scheduling as: Functional issues: “Debug Only” Performance: “DB Trace Only” or “Debug & DB Trace” Provide debug (session-<n>) or trace/tkprof file (from DB trace location) Re-set profile to 'None' to avoid any performance issues In ERP and APS, find debug file location using this SQL: SELECT ltrim(rtrim(value)) FROM (SELECT value FROM v$parameter2 WHERE name='utl_file_dir' ORDER BY rownum DESC) WHERE rownum < 2; Remove any session-0 file from this directory. Ensure proper write permissions for this directory. Provide ATP Debug/Trace/TKPROF files from both ERP and APS instance

Questions/ Feedback Navneet.Goel@oracle.com

Reference - Acronyms Industry Standard Oracle Specific ATP (Available To Promise) GOP (Global Order Promising) CTP (Capable To Promise) PTO (Pick to Order) CTO (Configure To Order) ATO (Assemble To Order) CTD (Capable To Deliver) BOM (Bill of Materials) BOR (Bill of Resources) Oracle Specific APS (Adv. Planning & Scheduling) ASCP (Advance Supply Chain Plan) ODS (Operational Data Store) PDS (Planning Data Store) LAD (Latest Acceptable Date) AATP (Allocated ATP) ATF (Aggregate Time Fence)