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Introduction to Order Management Cloud Service -Welcome to the future with Oracle

Posted on July 13th, 2015 by Sanjit Anand ||Email This Post Email This Post

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In Release 10, there is a new product called Oracle Order Management Cloud Service.

This is an application available on Oracle cloud as a service to enable quote to cash process flow. This Module is typically used to designed toimprove order execution across quote to cash process.

It includes predefined integrations, centrally-managed orchestration policies, fulfillment monitoring and exception management, and global availability that can help increase customer satisfaction and order profitability.

Fig 1 below , is an example of the complete flow, with customer quotes being created in Configure, Price, and Quote Cloud (also known as CPQ Cloud) and fulfilled through order management, getting the order shipped, and finally billing system through Financial cloud.

Order Management Cloud

You can submit a quote request from CPQ Cloud, the quote is converted to an order within Order Management Cloud.

The order created is carried forward through user defined orchestration steps to carry out various fulfillment steps like scheduling, reservation, shipping, and billing.

The order may contain standard items, multilevel pick to order models and kits.

During fulfillment, the fulfillment line status updates are sent to the order originating system (CPQ).

This diagram also shows Order Management Cloud with Global Order Promising Cloud (also known as GOP Cloud).

GOP Cloud provides you the ability to check the availability of supply and schedule orders in a way that minimizes delays while reducing fulfillment costs.

After the order is shipped to the customer, invoice or billing details can be sent to Financials Cloud for billing and collecting. Interactive dashboards provide a centralized monitoring capability to view order status, locate any errors and take corrective actions.

Fig 1(a) Illustrates the data flow thats uses Q2C as below:

FOM illustrates the flow that uses Q2C

ENABLING ORDER TO CASH

Here are flow of data in and out to CPQ cloud, SCM cloud and Financial Cloud

Typical Flow [Functional Architecture ] Fig 2: consist of flow of data in and out to CPQ cloud, SCM cloud and Financial Cloud

Flow of Data

 

 

 

 

 

 

  • Conversion of a CPQ Quote to an order, fulfill and bill the order directly through Inventory Management Cloud and Enterprise Resource Planning Cloud, and receive status updates
    • The quote created in CPQ may contain standard items, kits, and multilevel pick to order configurations.
    • The quote is configured and pre-priced in CPQ.
    • An order is created in Order Management Cloud for each quote submitted from CPQ.
    • Shippable line is processed using the seeded ship order process. Bill only process is seeded to process invoice and credit only line
  • Process standard items, kits, and multilevel pick to order configurations (also know as PTO configuration)
  • Process new, revise, and cancel order types
  • Process one time and recurring billing
    • Thats means, you can determine how often and how variable the price on the charge is to be levied using price type like NRC or MRC
    • With One time billing, the customer pays for the goods once [ NR]
    • With Recurring billing, the customer pays a fixed amount on a recurring basis. For instance, the desktop PC warranty is charged per month [ MRC]
    • This also have capaablity for recurring billing cancellation request thats is modeled as a return order for credit only in Order Management Cloud. You can Opt to choose to cancel for the entire or partial duration of the contract.
  • And provide a single view of orders across all channels

You need to take a note on two things from Technical side for two major capabilities:

  1. Extensibility capabilities – Thats means Order Management Cloud supports descriptive flex-fields for orchestration process and task type.
  2. Reporting capabilities , thats means order Management Cloud supports various types of reports, which includes
    • Online Transaction Processing (aka OLTP) reports [ Currently available 9]
    • Oracle Business Intelligence Applications (aka OBIA) reports [ Currently available 11]
    • Oracle Transactional Business Intelligence (aka OTBI) reports. [ Currently available 2]

KEY FEATURE /OFFERING IN RELEASE 10

Monitor Order Progress And Manage Execptions
With centralized monitoring and exception management capabilities, you can quickly view statuses, identify problems, investigate root causes of problems, and take corrective action. For example, you can:

  • Monitor the status and exceptions of orders that must be fulfilled
  • Display orders according to customer, product, fulfillment location, supplier, status, or age
  • Deliver proactive alerts for order lines that might become exceptions
  • Identify and display order lines that are at risk of not meeting promise dates
  • Display process execution data, including milestones and visual alerts for jeopardy items
  • Fix exceptions, one or more lines at a time
  • Use embedded business intelligence to resolve exceptions

Proactively Manage Potential Problem Orders

To increase customer satisfaction and the on-time order fulfillment rate, you can define a fulfillment completion step that is part of the fulfillment process. This step dynamically computes the expected fulfillment date during order processing, and then raises alerts that identify orders that might not meet fulfillment dates. With this capability, you can identify issues with sufficient lead-time and take corrective actions that are timely, accurate, and effective. You can do the following:

  • Locate the problematic process step before the fulfillment date is compromised
  • Perform process planning according to dates that you choose and updates to attributes
  • Deliver alerts for order lines that might become exceptions
  • Identify order lines that are at risk of not meeting promise dates

Automate processing of Change Orders

To reduce the amount of time required to process changes, you can use change order management to control how to change orders during order fulfillment. Change order management ensures that change orders are handled consistently, and that compensation steps such as rescheduling inventory or performing rollbacks are automatically applied. Using change order management, you can:

  • Identify differences, such as a change in quantity between the current order and the change order, that determine how that change is processed.
  • Define the process steps that a change order affects, and then adjust the fulfillment process so that it meets the conditions that the changed order requires
  • Keep fulfillment systems synchronized with changes. Send notifications of pending changes so that fulfillment systems stop processing the current order until the changes are received

Automate processing of Change Orders

 

 

 

 

 

 

 

 

 

Enrich Orders For Fulfillment

To realize faster and lower-cost order processing, you can reduce the number of order touches that slow down order processing.

You can add fulfillment information, such as attributes or product details, to an order to assist with processing. Product transformation is effected using a combination of product relationships, product structures, transactional item attributes, and business rules. Various types of product transformation are supported, for instance, product to product, and attribute to product, among others.

You can separate a complex order into individual, interrelated fulfillment plans.

You can then assign different processes to order lines that use fulfillment logic that is tailored to the needs of each order line, thereby fulfilling products and services as efficiently as possible.

Define Order Processing Your Way

Using a non-technical process definition interface, you can decrease the costs associated with defining business processes and functional implementation costs.

You can use predefined fulfillment processes, or easily create custom fulfillment processes that meet your specific business requirements. When you define order processing, you can:

  • Create order line flows that use standard, conditional, parallel, or interrelated logic
  • Define change order rules
  • Define rules that can calculate order completion dates according to request dates
  • Define common statuses to use for all quote-to-cash processes

Recover From Order Processing Errors

  • You can use the Order Management work area to reduce the time required to locate, investigate, and recover from order processing errors. This work area provides a single dashboard where you can manage a single order or a group of orders. You can:
  • View process execution, including milestones and visual alerts
  • Fix exceptions one or more lines at a time, or assign lines to fulfillment processes
  • Take bulk action to recover from one or more errors

A good step for Oracle. An integrated cloud solution for order management it’s a key feature to increase flexibility in front office activity.

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