1 Introduction to JD Edwards EnterpriseOne Fulfillment Management

This chapter contains the following topics:

• Section 1.1, "JD Edwards EnterpriseOne Fulfillment Management Overview"

• Section 1.2, "JD Edwards EnterpriseOne Fulfillment Management Business Process"

• Section 1.3, "JD Edwards EnterpriseOne Fulfillment Management Integrations"

• Section 1.4, "JD Edwards EnterpriseOne Fulfillment Management Implementation"

1.1 JD Edwards EnterpriseOne Fulfillment Management Overview

JD Edwards EnterpriseOne Fulfillment Management addresses situations in which enterprises cannot fulfill all of the orders for their products. Their product supply may be less than the demand or manufacturing planning may not occur until the demand is known. Fulfillment Management can also help when there is variability in the manufacturing process. Enterprises have contractual arrangements or service levels with their customers regarding the performance around fulfillment. These rules may include line and order fill rates, number of shipments, and a cancellation policy for open orders.

The purpose of the JD Edwards EnterpriseOne Fulfillment Management system is to fulfill orders in accordance with criteria agreed upon between you and your customers. The JD Edwards EnterpriseOne Fulfillment Management system fulfills orders based upon criteria that you set, which enables you to:

• Generate priority order scores and then match available inventory to open orders.

• Use service level rules to define fill rates for customer orders and ensure compliance with stated fill rates before releasing orders.

• Implement an automated process that fulfills inventory to orders based on the rules.

• Review the fulfillment quantities and make necessary changes.

The JD Edwards EnterpriseOne Fulfillment Management system significantly reduces or eliminates backorders that occur because of inventory availability issues. The Fulfillment Management system expects very little fluctuation in inventory availability between the time the system releases order from fulfillment and subsequent hard commitment, picking, and shipping.

1.1.1 Features

This table describes features of JD Edwards EnterpriseOne Fulfillment Management:

Feature	Description
Order line selection	You can determine the types of order lines that the system enters into the fulfillment process.
Score	You can use basic scoring or advanced preference scoring to determine the score of order lines that is used in the fulfillment process.
Service level rules	You can specify how the system fulfills inventory for your customers by setting up service level rules. You can also override service level rules.
Rule evaluation	The system uses the rule evaluation flag to determine whether a material change has occurred which affects whether the service level rule requirements are met for the order line. This flag enables you to review changes that occur when sales orders are updated.
Auto fulfillment	You can run a batch process that assigns inventory to open sales order lines based on the score or other predefined criteria. You can schedule the Auto Fulfillment Processing report (R4277701) to run periodically to best fit your business needs.
Fulfillment rules	You can specify how the system assigns inventory by setting up rules based on score and inventory levels.
Auto fulfillment load balancer	Based on the number of concurrent auto-fulfillment processes that you specify, the system evenly divides the sales order lines selected for processing.
Fulfillment workbench	The fulfillment workbench enables you to adjust the inventory assigned to sales order lines interactively.
Release from fulfillment	The system validates that all rules have been met before moving the order lines to the next step in the sales order process.
Unfilled notification	You can set up the system to send notification messages when quantity is unfulfilled.

1.1.2 Benefits

The JD Edwards EnterpriseOne Fulfillment Management system drives operational improvements that help you manage supply, improve customer service, and decrease administrative costs.

The following table categorizes the benefits of using the JD Edwards EnterpriseOne Fulfillment Management system by operational area:

Operational Area	Benefit
Supply Management	Prioritize sales order lines. Prioritization criteria for sales orders lines determines how inventory is assigned which improves the ability to manage the supply of items. Assign inventory based on priority and service level rules. Assign partial quantities based on inventory levels. Cancel open balance quantities. Each sales order line can follow a different path through the sales order fulfillment cycle. Fulfillment rules enable inventory assignments based on score of the sales order line and safety stock levels of items. Increase flexibility for inventory assignments enables more effective management of limited supply items.
Customer Service	Improve order and line fill rates for priority customers. Scoring creates the ability to priority rank customer sales order lines based on five factors. Enforce targeted service levels. Reduce late orders for priority customers. Reduce back orders and lost sales. Track reasons for overriding standard service level rules. Increase customer satisfaction by decreasing backorders and lost sales due to inventory availability. Increase customer satisfaction with flexibility to interactively revise inventory assignments to sales order lines for stock items and kit parents. Enforce service level agreement information during the sales order fulfillment cycle. Increase customer satisfaction due to proactive discussion of order fulfillment status.
Administrative Costs	Enforce fill rates automatically. Reduce costly penalty fees and fines. Cancel open balances automatically based on rules. Reduce transportation costs by enforcing number of releases (shipments). Streamline administrative tasks by maintaining central control over service level information and integrating the rules into the sales order fulfillment cycle reduces the amount paid in penalty fees for noncompliance.

1.2 JD Edwards EnterpriseOne Fulfillment Management Business Process

This diagram illustrates the JD Edwards EnterpriseOne Fulfillment Management business process:

Figure 1-1 Diagram showing Fulfillment Management business process

Description of "Figure 1-1 Diagram showing Fulfillment Management business process"

The standard sales order management process includes five basic steps:

1. Enter sales orders.

2. Print pick slips.

3. Confirm shipments.

4. Print invoices.

5. Update sales.

Typically, when you enter a sales order, the system performs availability checking for items and then commits inventory to the items. Because item availability checking occurs during sales order entry, the system commits inventory using a first-in, first-served model. The JD Edwards EnterpriseOne Fulfillment Management system enables you to bypass availability checking at sales order entry and defer soft commitments against inventory. The fulfillment process integrates seamlessly within the sales order management process while not affecting the downstream processes for sales orders.

The fulfillment process also has five steps:

1. Select. Based upon advanced preference 41 (Fulfillment Entry) setup, the system determines whether a sales order line enters the fulfillment process. Factors that help determine whether the system enters a sales order line into the fulfillment process include document type, item, item group, customer, and customer group.

   
   

   Note: The system does not enter all orders lines into the fulfillment process unless you setup advanced preference 41 to do so.

   
   

2. Score and attach rules. You assign scores to order lines based upon user-defined setup. Scoring helps to determine the fulfillment priority. Scoring is an optional step in the process.

   The system uses two methods to score orders. You can set up advanced preferences to calculate weighted scores or use basic scoring to assign the priority.

3. Fulfill. This automated process assigns available inventory to orders based upon the priority criteria that you set up.

   The fulfill process can be iterative. You can run the process over the same orders multiple times until you have a plan to implement.

4. Review. You can interactively review the system-generated fulfillment plan and modify it as necessary.

5. Release. This batch process moves the lines to the next step in the sales order process (for example, print pick slip). The system can notify a user-defined party when the order lines are not completely filled.

   The JD Edwards EnterpriseOne Fulfillment Management system should significantly reduce or eliminate backorders that occur due to limited availability of items. The system is intended to process inventory commitments before sending sales orders to the warehouse for picking and shipping. Ideally, you should have limited fluctuation in item availability from the time order lines are released from fulfillment and processed by the warehouse.

1.3 JD Edwards EnterpriseOne Fulfillment Management Integrations

The JD Edwards EnterpriseOne Fulfillment Management system integrates with these JD Edwards EnterpriseOne products:

Figure 1-2 Diagram showing the integration of JD Edwards EnterpriseOne Fulfillment Management systems

Description of "Figure 1-2 Diagram showing the integration of JD Edwards EnterpriseOne Fulfillment Management systems"

The JD Edwards EnterpriseOne Fulfillment Management system works with other distribution and logistics systems to ensure that customer demand is met. Supply and demand components must balance to ensure that demand is met. The key to success is integration and the proactive use of distribution and logistics information.

1.3.1 JD Edwards EnterpriseOne Address Book

The JD Edwards EnterpriseOne Address Book system from Oracle stores current customer information, such as address, contact information, phone and fax numbers, billing instructions, and default shipping and invoicing information.

1.3.2 JD Edwards EnterpriseOne Advanced Pricing

JD Edwards EnterpriseOne Advanced Pricing enables you to group customers and items so you can accommodate different market sectors and product lines; you do not have to define adjustments for each item or customer. You can define price groups by customers, items, customer groups, or item groups. You also can identify customers by Sold To, Ship To, or Parent addresses.

1.3.3 JD Edwards EnterpriseOne Data Interface for Electronic Data Interchange

The JD Edwards EnterpriseOne Data Interface for Electronic Data Interchange (EDI) system (code 47) acts as a staging area for moving data in and out of the JD Edwards EnterpriseOne system. In addition to exchanging EDI data, you can use this data interface for general interoperability and electronic commerce needs when a file-based interface meets business requirements.

1.3.4 JD Edwards EnterpriseOne Demand Scheduling Execution

You use the JD Edwards EnterpriseOne Demand Scheduling system to manage requirements for shipment and production schedules between customers and suppliers. Firm or planned demand requirements enable you to receive, interpret, validate, or forecast net order information for shipments and to automatically communicate shipment details to the supplier or customer. The system interprets and receives information using EDI documents that are transmitted from customers to suppliers, and then populates the appropriate demand scheduling tables to create records, sales orders, and forecasts. You set up the demand scheduling system to manage all of this information.

1.3.5 JD Edwards EnterpriseOne Inventory Management

The JD Edwards EnterpriseOne Inventory Management system from Oracle stores item information for the JD Edwards Fulfillment Management, Sales Order Management, Procurement, Manufacturing, and Supply Chain Management systems from Oracle. JD Edwards EnterpriseOne Inventory Management also stores sales and purchasing costs and quantities available by location and tracks holds for locations from which items should not be sold. Any change in inventory valuation, count variances, or movement updates the general ledger.

1.3.6 JD Edwards EnterpriseOne Sales Order Management

You can enhance customer service by using the JD Edwards EnterpriseOne Sales Order Management system to create order templates and recurring or blanket orders. Also, this system provides additional customer service support through online displays that provide:

• Pertinent order, inventory, transportation, and financial information.

• Net profitability of a product line when promotions, discounts, and allowances are applied.

1.3.7 JD Edwards EnterpriseOne Transportation Management

You can integrate the JD Edwards EnterpriseOne Sales Order Management and JD Edwards Fulfillment Management systems with the JD Edwards EnterpriseOne Transportation Management system from Oracle to provide carrier and shipment functionality.

1.3.8 JD Edwards EnterpriseOne Warehouse Management

JD Edwards EnterpriseOne Warehouse Management is an integral part of manufacturing and distribution processes. It works with other JD Edwards EnterpriseOne systems to manage inventory and the products that companies produce and ship.

1.4 JD Edwards EnterpriseOne Fulfillment Management Implementation

This section lists the steps that are required to implement the JD Edwards EnterpriseOne Fulfillment Management system globally, sales specifically, and application specifically.

1.4.1 Other Sources of Information

In the planning phase of the implementation, take advantage of all Oracle sources of information, including the installation guides and troubleshooting information.

When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Fulfillment Management, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs simultaneously.

See Also: JD Edwards EnterpriseOne Tools Software Updates Guide.

1.4.2 Global Implementation Steps

The suggested global implementation steps for JD Edwards EnterpriseOne Fulfillment Management:

1. Set up global user-defined codes (UDCs).

   See JD Edwards EnterpriseOne Tools System Administration Guide.

2. Set up companies, fiscal date patterns, and business units.

   See "Setting Up Organizations" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.

3. Set up next numbers.

   See "Setting Up Next Numbers" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.

4. Set up accounts and a chart of accounts.

   See "Creating the Chart of Accounts" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.

5. Set up General Accounting constants.

   See "Setting Up the General Accounting System" in the JD Edwards EnterpriseOne Applications General Accounting Implementation Guide.

6. Set up multi-currency processing, including currency codes and exchange rates.

   • See "Setting Up General Accounting for Multicurrency Processing" in the JD Edwards EnterpriseOne Applications Multicurrency Processing Implementation Guide.

   • See "Setting Up Exchange Rates" in the JD Edwards EnterpriseOne Applications Multicurrency Processing Implementation Guide.

7. Set up ledger type rules.

   See "Setting Up Ledger Type Rules for General Accounting" in the JD Edwards EnterpriseOne Applications General Accounting Implementation Guide.

8. Enter address book records.

   See "Entering Address Book Records" in the JD Edwards EnterpriseOne Applications Address Book Implementation Guide.

9. Set up inventory information such as branch/plant constants, default locations and printers, manufacturing and distribution AAIs, and document types.

   See "Setting Up the Inventory Management System" in the JD Edwards EnterpriseOne Applications Inventory Management Implementation Guide.

10. Set up shop floor calendars.

    See "Setting Up Shop Floor Calendars" in the JD Edwards EnterpriseOne Applications Shop Floor Management Implementation Guide.

11. Set up order activity rules.

    See "Setting Up Order Activity Rules" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

1.4.3 Sales-Specific Implementation Steps

The required implementation steps to use the JD Edwards EnterpriseOne Fulfillment Management and Sales Order Management systems:

1. Set up UDCs for JD Edwards EnterpriseOne Sales Order Management.

   See "Setting Up UDCs" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

2. Set up constants.

   See "Setting Up Constants" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

3. Set up AAIs for JD Edwards EnterpriseOne Sales Order Management.

   See "Setting Up AAIs for Sales Order Management" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

4. Set up commission information.

   See "Setting Up Commission Information" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

5. (Optional) Create order templates.

   See "Creating Order Templates" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

6. Set up order hold information.

   See "Setting Up Order Hold Information" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

7. (Optional) Set up self-service information.

   See "Setting Up Self-Service Information for Sales Order Management" JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

8. Set up customer billing instructions.

   See "Setting Up Customer Information" JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

9. Set up UCC 128 compliance information.

   See "Setting Up UCC 128 Compliance" JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

10. Set up base prices, base pricing structures, complex price groups, and standard price adjustments.

    See "Setting Up Base and Standard Pricing" JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

11. Set up return material authorization defaults and return material authorizations.

    See "Generating Returned Material Authorization" JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

12. Set up basic and advanced preferences.

    See "Activating Preferences" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.

1.4.4 Application-Specific Implementation Steps

This table lists the required implementation steps for the JD Edwards EnterpriseOne Fulfillment Management system:

1. Activate the JD Edwards EnterpriseOne Fulfillment Management system.

   See Activating Fulfillment Management.

2. Set up Fulfillment Management (advanced preference 41).

   See Setting Up Preference Detail Values for Fulfillment Entry (41).

3. (Optional) Set up fulfillment rules.

   See Setting Up Fulfillment Rules.

4. (Optional) Set up service level rules.

   See Setting Up Service Level Rules.

5. (Optional) Set up advanced preference scoring.

   See Setting Up Advanced Preference Scoring Details.

6. (Optional) Set up basic scoring.

   See Setting Up Basic Scoring Information

7. (Optional) Set up rounding rules.

   See Setting Up Fulfillment Rounding.

8. (Optional) Set up message notification.

   See Setting Up Fulfillment Message Notifications.