PeopleSoft Enterprise Inventory Management 8.9 and 9.0 Enhancements Oracle Confidential

8.9 Inventory Enhancements Fulfillment Enhancements Pegging Vendor Managed Inventory Asset Lifecycle Management Interface Other Miscellaneous Enhancements Oracle Confidential

Inventory Management 8.9 Pain Points/Key Issues Fulfillment Rigid “Step by Step” Processing Batch vs. On-Line Multiple Steps for Single Function Shortage Backorder Handling Rigid Backorder / Cancel Handling in Reservations Multiple Demand Lines Due to Repeated Backordering Technical Issues Multiple Demand Tables COBOL Fulfillment Why are we doing this? Oracle Confidential

Inventory Management 8.9 Fulfillment Fulfillment Architecture: MSR Shortages & Backorders Reservations Picking & Shipping Fulfillment Architecture: Data Model/Table Changes State Processing Technology Changes Cobol  AE Oracle Confidential

Inventory 8.9 Fulfillment 8.8 Fulfillment Tables and States Order Entry Reserve/ Promise Material Allocate/ Pick/ Out to WMS Picking Feedback Confirm Shipping Deplete Demand_INF_INV Demand_INV Ship_INF_INV States 1 3 4 5 6 2 Unfulfilled Releasable Shipped Released Picked/ Confirmed Depleted Order Entry sets state to unfulfilled Reservations sets state to releasable. Order Entry sets for non-soft reserved Pick Plan, Ship order release (WMS), Pick extract file, and allocation process set Released State Online & Batch pick w/ confirm & ship notifications w/ confirm Ship Issues & Background shipping request Deplete request or added to ship request Oracle Confidential

Reserve/ Promise Material Allocate/ Pick/ Out to WMS Inventory 8.9 Fulfillment 8.9 Fulfillment Table and States Order Entry Reserve/ Promise Material Allocate/ Pick/ Out to WMS Picking Feedback Confirm Shipping Deplete IN_Demand States 1 3 4 5 6 2 Unfulfilled Releasable Shipped Released Picked/ Confirmed Depleted Order Entry sets state to unfulfilled Reservations sets state to releasable. Order Entry sets for non-soft reserved Pick Plan, Ship order release (WMS), Pick extract file, and allocation process set Released State Online & Batch pick w/ confirm & ship notifications w/ confirm Ship Issues & Background shipping request Deplete request or added to ship request Oracle Confidential

Inventory Management 8.9 Fulfillment Architecture MSR Shortages & Backorders Reservations Picking & Shipping Direct processing No need to run prerequisite processes Reserve Release Orders (Run Pick Plan) Pick & Ship Auto processing “Unit of work” passed to next step only if it passes rules of previous step Auto Reserve Auto Release Auto Pick/Confirm Auto Ship Auto Deplete Oracle Confidential

Inventory Management 8.9 Fulfillment Material Stock Request Architecture MSR Shortages & Backorders Reservations Picking & Shipping Material Stock Request Reaction to data model changes Created to any “state” Ex. Create MSR and a pick ticket will print Ex. Create MSR and get feedback whether it was reserved or not online Reservations not required for non-soft reserved orders Use of new reservations rules from MSR Default ordering UOM can be used Oracle Confidential

Inventory Management 8.9 Shortages & Backorders Fulfillment User established backorder rules Notification of shortages and backorders Manual backorder capability Separate Order Release and Shipping backorder rules Ability to push shortages downstream Shortage workbench Visibility of shortages and backorders on pick plan and shipping docs Fulfillment Architecture MSR Shortages & Backorders Reservations Picking & Shipping Oracle Confidential

Inventory Management 8.9 Backorder Rules Fulfillment Architecture MSR Create backorder Backorder criteria on Cancel Only Cancel backorder if shortage < X % or static value Manual backorder decision Hold line and notify user or role Allow shortage Do not create a backorder at Release time allow shortage to flow downstream Notification ability – ability to notify user or role of any of the actions Fulfillment Architecture MSR Shortages & Backorders Reservations Picking & Shipping Oracle Confidential

Inventory Management 8.9 Shortage Workbench Fulfillment Architecture Shortage workbench – ‘one stop shop’ for viewing and acting on shortages Allow Item or Order level view of shortages with ability to switch between views Actions include Create backorder, cancel backorder, ‘Steal’ from another line (Unreserve / Reserve) , Fair Share Reservations, De-Allocate, Item availability inquiry, Peg to incoming supply Fulfillment Architecture MSR Shortages & Backorders Reservations Picking & Shipping Oracle Confidential

Shortage Workbench Fair Share Allocation Oracle Confidential

Reservations Inventory Management 8.9 Fulfillment Reservations Line & Order Level Reservation Rules On-line Reservation A new program to perform on-line reservations from order entry points Non-soft items Option to Skip “Unfulfilled” State going directly to “Releasable” Release Kit Multiples Release downstream only multiples of Kits Fulfillment Architecture MSR Shortages & Backorders Reservations Picking & Shipping Oracle Confidential

Reservation Rules – Line Level Percentage and static values “criteria met” if > 90 % of line is reserved Date based criteria “criteria met” if today’s date > Ship date – 2 days Choice of dates : Ship date , Early ship date , Late ship date + or – a number of days Multiple Rules And/or relationships “criteria met” if percentage > 90% and today’s date > Early ship date OR release if today’s date > Ship date + 2 days Multiple actions Notification , Set ‘reserve criteria met’ , ‘Do not make reservation’ (will not tie up inventory) Fulfillment Architecture MSR Shortages & Backorders Reservations Picking & Shipping Oracle Confidential

Reservation Rules – Order Level Percentage Fill Ex. “Set to releasable” when Percentage fill is greater than 90% based on lines or units. Weight Ex. if order weight is 90% or greater of requested weight or a static value. Volume Ex. if order volume is 90% or greater of requested volume or a static value. Multiple Rules And/or relationships “Set to releasable” if order volume > 90% of requested volume OR order weight is >90% of unit weight AND percentage fill is greater than 75%. Multiple Actions Notify and/or “Set to releasable” when criteria is met Fulfillment Architecture MSR Shortages & Backorders Reservations Picking & Shipping Oracle Confidential

Inventory Management 8.9 Picking and Shipping Fulfillment Architecture MSR Reservations Shortages & Backorders Picking & Shipping Picking and Shipping New Order Release Process: Separated allocations processing from Pick Plan Print Option to assign Pick Plan ID at breaks in sort keys (Example, each new order gets a new Pick Plan ID) Show shortages and backorders on pick plan Override picking rules at order release time Rewrite Picking Feedback and Confirmations COBOL Ship & Deplete from Picking Feedback Page Many enhancements to Background Shipping Process Oracle Confidential

Inventory Management 8.9 What is Pegging… Pegging …The linking of demand and supply with a specific date and quantity Oracle Confidential

Inventory Management 8.9 Pegging Demand Side Supply Side Sales Order- Alternate Sources of Supply MSR, Inter-Unit Transfer Requests Putaway - Automatic reservation and optional hard allocation at putaway time Fulfillment - Picking looks at pegging location Supply Side Peg from Requisition, PO, and PID Pegging info on expected receipts report Visibility on receiving and MFG functions Pegging Workbench Manual pegging of demand and supply Pegging Inquiry Can be called from Demand/Supply functions Reports Exception report - dates,QOH,etc… Oracle Confidential

Inventory Management 8.9 Definitions VMI Definitions Foundation Processing Definitions Supplier Managed: Consigned Material in your warehouse, owned by your supplier (8.0) Vendor Managed: Consigned Material at your customer, owned by you, managed by you Vendor Managed: Non-Consigned Material at your customer, owned by the customer, managed by you Oracle Confidential

Inventory Replenishment VMI- Customer-Owned Customer Site Inventory Replenishment Customer Site PSFT Order Mgmt PSFT Billing PSFT A/R PSFT G/L Customer Site For Vendor Managed Inventory, we have planned a mechanism where you can elect to have the inventory at a remote location that is either owned by the manufacturer or by the customer. In this example we have the process whereby the customer has purchased the inventory but the manufacturer or distributor is managing the stocking levels at the customer’s location. We are designating each customer site where you wish to manage inventory as a sort of Inventory location. This way, each customer site may have their own replenishment rules and methods of communicating with our system. Our plan is to be able to receive usage information via various formats, including Point of Sale (POS) data. This information will be fed into the Inventory Replenishment process and sales orders created based on pre-defined criteria. The orders are shipped and then billed as normal with invoices going to the Customer for the replenishment orders generated to bring their inventory levels up to the correct stocking levels. Integration to any warehouse and shipping module is typically via our partner, and our partner for life is High Jump. We’ve been integrating to High Jump since the beginning of time. They are also our barcode solution as well. Simultaneous with creating the sales orders for fulfillment, we are also creating PO’s and transmitting them to the Customer Sites so they will have documents against which to receive their replenished inventory. (This is optional). Invoices are generated and mailed to the customer as part of the normal business process, which could optionally automatically create the AP Voucher via our Evaluated Receipt Settlement. Shipping

Inter-Unit Stock Request Inventory Replenishment VMI- Sell-Side Consigned Shipping Customer Site Inter-Unit Stock Request Customer Site Inventory Replenishment Billing A/R G/L Customer Site For consigned inventory in a Vendor Managed process, the inventory is owned by the Manufacturer and/or Distributor but resides at the Customer Site. As the customer consumes the inventory, consumption information is transmitted to the system (via EDI, POS data, etc), and again, with pre-defined algorithms, inventory at the customer site is decremented, a replenishment order is created and shipped to the customer via an inter-unit transfer. A “invoice only” sales order is also generated in the Billing system and the invoice for the “consumed” product is sent to the customer. Order Management

Inventory Management 8.9 Foundation VMI Definitions Foundation Processing Foundation New VMI BU Storage Locations Associated to a ship-to customer Replenishment attributes, owned/non-owned – defaults from ship-to Ship-to attributes: Replenishment settings, flags, etc… Sold-to attributes: Replenishment grouping options, flags, etc… Replenishment at item/ship to level New VMI Replenishment setup page, item set up attributes, etc…

Inventory Management 8.9 VMI Processing Definitions Foundation Receive item balances POS, EDI 852, receipts, adjustments, customer information Create Billing-Only order Calculate VMI replenishment parameters Create VMI replenishment request Send Order Acknowledgement (855) when order is created & reserved Oracle Confidential

Inventory Management 8.9 Asset Lifecycle Management (ALM) Interface Allocate and Issue material to a ALM work order. Pegging allowed on ALM Work Orders Pick List for ALM Work Orders Replenishment recognizes ALM demand Oracle Confidential

Inventory Management 8.9 Misc. Changes GTIN ATP Cobol  AE FAN Navigation Replenishment GTIN RFID, Partner Integration ATP Changes Will look at planned Orders as supply source Cobol written to AE: Replenishment parameter calculation Historical lead time calculation Calculate PAR average usage Replenishment Enhancements Reorder qty option at item level Include open demand within time fence Oracle Confidential

9.0 Inventory Enhancements Kitting Enhancements Inventory Fulfillment Changes Asset Lifecycle Management (ALM) Interface Enhancements Oracle Confidential

The following is intended to outline our general product direction 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 Oracle’s products remains at the sole discretion of Oracle. Oracle Confidential

Inventory 9.0 - Kitting Enhancements Ability to order a kit on a MSR Provide optional tools to perform kit re-explosion prior to or at Reservations Changes to Shortage, Pegging, and Fulfillment Workbenches to support kit parent visibility Provide parent/child visibility at picking feedback via a "Kit Display Page" Modify Existing fulfillment inquiries to support kit parent visibility Oracle Confidential

Inventory 9.0 - Fulfillment Changes Allow the printing of shipping documents from any point in the Fulfillment process Assignment of ship id from different points in the fulfillment process Auto-create Bill of Lading New Batch Reservations report . This includes the printing of the packing list, bill of lading, shipping document and export documents. Currently the Ship ID is assigned at shipping time. This is done in the batch shipping and in the on-line Shipping/Issues program. The ship id is needed on shipping documents so we need to be able to assign it earlier in the process. This is required in order to print the shipping docs from any point in the Fulfillment process. . Currently the user must go into Build Bill of Lading, and then separately go into Print Bill of Lading, and this creates a bottleneck for some customers. A new run control will be created where users can build and print the BOL at the same time. This will be for basic scenarios only using the information on the demand lines being shipped. to show what didn't get reserved didn't pass the line or order level rules etc. We do this currently with the online but not the batch. Users have no visibility as to why items were not reserved. Oracle Confidential

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