2Back-to-Back Fulfillment

This chapter contains the following:

Introduction

The back-to-back fulfillment process is one in which specific sales order demand triggers supply creation, and a link is established between the sales order and the supply.

Note: Back-to-back flow is currently supported only for discrete manufacturing.

The following figure provides a high-level flow diagram showing the back-to-back supply creation and fulfillment process flow.

Back-to-back supply creation and fulfillment process
flow

Back-to-back fulfillment is where supply is procured and then received at a warehouse only after an order is placed. The supply is reserved against a sales order until shipping. This process provides support to create and link supply after a sales order is entered and scheduled, allowing you to reduce your inventory while maintaining the ability to respond to customer demands.

You create supply for a back-to-back order using one or more of the following back-to-back flows:

  • Buy: Procurement from an external supplier.

  • Make: Production in an internal manufacturing facility (includes in-house manufacturing and contract manufacturing).

  • Transfer: Transfer from another warehouse.

  • On hand: Reservation of on-hand supply in the fulfillment organization.

Note: For information about back-to-back flows for contract manufacturing, see the Implementing Contract Manufacturing chapter in this guide.

After the supply is received into the fulfillment warehouse, the back-to-back order is ready for shipment to the customer.

How Back-to-Back Fulfillment Works

The back-to-back process flow is one in which specific sales order demand triggers supply creation and a link is established between the sales order and the supply. An organization procures goods from an internal or external supplier or source to a specific warehouse from where you can combine those goods with others to create a single shipment to the customer. Back-to-back supply processes are similar to regular supply processes that deliver supply to a warehouse except for one difference; the back-to-back supply is always reserved to an order management fulfillment line.

At a high level, you can think of back-to-back fulfillment as a three-step process:

  1. Creation of a customer sales order (source of demand).

  2. Creation and fulfillment of supply document (source of supply) to the fulfillment warehouse.

  3. Shipment of sales order from the fulfillment warehouse to the customer.

However, the back-to-back flow is truly a highly integrated process flow involving several Oracle Fusion applications. The following figure shows the back-to-back process flow in detail. An explanation for each number follows the figure.

Back-to-back fulfillment cross-product flow

Explanation of Callouts

  1. The back-to-back flow begins with order capture. Typically, an order entry specialist enters a customer sales order for an item that's designated for back-to-back fulfillment. After the sales order is entered and scheduled, Oracle Fusion Global Order Promising is invoked.

  2. Global Order Promising performs two key functions:

    1. First, Global Order Promising promises orders for back-back items by choosing the best possible sources across the supply chain, while considering sourcing rules, available-to-promise (ATP) rules, and other constraints.

      Note: ATP calculations are currently supported only for discrete manufacturing.
    2. Second, Global Order Promising releases supply recommendations (or the supply picture) to Oracle Fusion Supply Chain Orchestration. These supply recommendations are based on how Global Order Promising pegs supply against the back-to-back demand.

      After the sales order fulfillment line is scheduled, Oracle Fusion Order Management releases the fulfillment line information (or the demand picture) to Supply Chain Orchestration.

  3. Supply Chain Orchestration processes the demand picture from Order Management and the supply picture from Global Order Promising to create a supply order in Supply Chain Orchestration.

  4. Supply Chain Orchestration also triggers the creation of supply documents in the supply execution application. Depending on how sourcing rules are defined and how Global Order Promising sends its supply recommendations, the supply document can be a purchase order in Oracle Fusion Procurement, a work order in the Oracle Manufacturing Cloud solution, or a transfer order in Oracle Fusion Inventory Management.

    Note: Back-to-back purchase order creation requires the initiation of a purchase requisition, which is then converted (automatically or manually) to a purchase order.
  5. Supply Chain Orchestration tracks the creation of the supply document and immediately initiates a reservation request to tie the sales order demand with the supply document.

  6. The reservation of supply to demand is made in Inventory Management and ensures that the incoming supply isn't allocated incorrectly or diverted to any other demand source.

    Note: Global Order Promising respects the pegging between the supply document and the sales order during subsequent reschedules for the order.
  7. Supply Chain Orchestration tracks the status of the supply document and sends updates to order management.

  8. After the supply is received into stock (purchase order receipt and put away, transfer order receipt and put away, or work order completion), the reservation switches from the supply document to on hand that has been created by the supply document receipt.

  9. The sales order is now ready to be shipped to the customer. Order Management requests shipment to the customer and then interfaces with receivables for billing. Supply Chain Orchestration tracks the process until the goods are shipped to the customer.

Back-to-Back Supply Creation Flows

You can set up Oracle Fusion applications that support back-to-back fulfillment to trigger one of several supply creations flows (buy, make, transfer, and on hand) after a sales order is entered and scheduled. Each variant of the back-to-back flow differs in the supply document that's created and the supply execution application in which the document is created. Depending on the source of the item, supply is provided from manufacturing, procurement, or inventory. Then, after the supply is received into the fulfillment warehouse, the back-to-back order is ready for shipment to your customer.

The following table describes the supply creation flows and associated supply document supported for each flow when using back-to-back fulfillment.

Supply Creation Flow Supply Document Description

Buy

Purchase Order

Procurement from an external supplier.

Make

Work Order

Production or assembly at an internal manufacturing location.

Transfer

Transfer Order

Transfer from another warehouse.

On-hand Available

Request Reservation Only

Reservation of on-hand supply (in cases where on hand available in the fulfillment warehouse).

Back-to-Back Supply Creation Buy Flow

The supply document for a back-to-back buy flow is a purchase order. Based on supply recommendations from Oracle Fusion Global Order Promising, a purchase order is created and reserved against the sales order. When the purchase order is received by the supplier, on hand is created to ship out the back-to-back sales order.

The following figure shows the back-to-back supply creation buy flow.

Back-to-back buy supply creation flow diagram

Back-to-Back Supply Creation Make Flow

The supply document for a back-to-back make flow is a work order. As soon as the work order is created in Oracle Fusion Manufacturing, it's tied to the back-to-back sales order in the form of a reservation in inventory. The work order goes through the regular production process and the work order completion transaction issues finished goods to inventory.

Note: Back-to-back flow is currently supported for only discrete manufacturing.

The following figure shows the back-to-back supply creation make flow.

Back-to-back make supply creation flow diagram

Back-to-Back Supply Creation Transfer Flow

The supply document for a back-to-back transfer flow is a transfer order. The transfer order is created in inventory and reserved against the back-to-back sales order. When the transfer order is ready to be fulfilled, an interorganization shipment moves goods from the source organization to the destination organization. An interorganization receipt in the destination organization (which is also the fulfillment warehouse on the back-to-back sales order) creates on hand to fulfill the sales order.

The following figure shows the back-to-back supply creation transfer flow.

Back-to-back transfer supply creation flow diagram

Back-to-Back Supply Creation On-Hand Flow

The back-to-back on-hand available (ATP) flow is the simplest in terms of the number of steps that constitute the flow. This flow occurs where on hand supply is available in the fulfillment warehouse for the ordered back-to-back item at the time of order promising. Because on-hand goods already exist in the form of on hand, Oracle Fusion Supply Chain Orchestration directly sends a request to reserve the on hand quantity against the back-to-back sales order. You can ship the sales order immediately after the reservation is created.

The following figure shows the back-to-back supply creation on-hand flow.

Back-to-back on-hand supply creation flow diagram

Oracle Applications That Support Back-to-Back Fulfillment

There are several Oracle Fusion applications that support back-to-back fulfillment, however, some additional setup is required.

The following table lists those applications, a brief description of their importance in back-to-back fulfillment, and when you must perform additional setup for the applications. The supply flow columns indicate which applications support which flows, and the comments describe at a high-level the product-specific back-to-back setup that's required for the flows to work. For setup instructions, see Setting Up Back-to-Back Fulfillment: Roadmap.

Oracle Fusion Application Make Supply Flow Buy Supply Flow Transfer Supply Flow On-Hand Supply Flow Comments For More Information

Oracle Fusion Product Model

Yes

Yes

Yes

Yes

You must identify items for back-to-back orders. This is a mandatory first step in implementing back-to-back fulfillment. Depending on your supply demand needs, setup of additional applications might also be necessary.

Enabling Items for Back-to-Back Fulfillment: Procedure

Oracle Fusion Global Order Promising

Yes

Yes

Yes

Yes

You must create available-to-promise (ATP) rules so that Global Order Promising can send scheduling information (when product can ship and where from) to Oracle Fusion Order Management. In addition, you must also set up sourcing rules so that Global Order Promising can send Oracle Fusion Supply Chain Orchestration buy, make, transfer and on hand recommendations for where to obtain supply to fulfill the sales order.

Configuring Global Order Promising to Support Back-to-Back Fulfillment: Explained

Oracle Fusion Supply Chain Orchestration

Yes

Yes

Yes

Yes

Supply Chain Orchestration provides predefined back-to-back processes for all supply creation flows (buy, make, transfer, and on hand).

Configuring Supply Chain Orchestration to Support Back-to-Back Fulfillment: Explained

Oracle Manufacturing Cloud solution

Yes

No

No

No

For each item that will be fulfilled through back-to-back make flow, you must set up a work definition to describe the manufacturing process to build that item. This definition also allows automatic creation of the work order.

Configuring Manufacturing to Support Back-to-Back Fulfillment: Explained

Oracle Procurement Cloud

No

Yes

No

No

By default, Procurement isn't configured for back-to-back fulfillment. However, you can set up Procurement to support back-to-back fulfillment to:

  • Execute buy order recommendations through purchases orders

  • Automate purchase order creation for back-to-back order items and submit for approval

Also, if you want to automate purchase order creation, you must create blanket purchase agreements for your back-to-back order items.

Enabling Procurement to Support Back-to-Back Fulfillment: Explained

Automating Purchase Order Creation for Back-to-Back Items: Explained

Oracle Procurement Cloud Implementing Procurement guide

Oracle Fusion Order Management

Yes

Yes

Yes

Yes

There's no setup required beyond the normal order-to-cash (OTC) setups. Order Management has predefined processes for back-to-back fulfillment that are automatically assigned.

Supply Chain Management Cloud, Implementing Order Management guide

Oracle Fusion Inventory Management

Yes

Yes

Yes

Yes

There's no setup required for Inventory Management specific to back-to-back. However, this application plays an important role in back-to-back fulfillment. Inventory Management creates transfer orders for internal transfers and reserves supply against demand for all supply creation flows.

Inventory Management documentation

Implement Back-to-Back Fulfillment

Considerations for Implementing Back-to-Back Fulfillment

Back-to-back fulfillment offers organizations a wide range of business benefits. It's best suited for items that organizations choose not to stock for multiple reasons.

The following table provides points to consider before implementing back-to-back fulfillment.

Consideration Comments

Cost-effective fulfillment for high-cost, non-stocked, slow-moving products

Back-to-back fulfillment is best suited for items that your organizations choose not to stock. A request for supply is created only after a sales order is scheduled for items you have designated for back-to-back fulfillment. This fulfillment process flow also offers your organizations the flexibility to extend their product offerings even if they don't directly stock goods.

Prevents loss or misallocation of supply

The essence of the back-to-back process flow is the firm link that exists between the demand document (sales order) and the supply document (purchase order, transfer order, or work order). This link between sales order and supply document is crucial in preventing misallocation or diversion of supply for other demands.

Provides organizations with more centralized control over the fulfillment process

Fulfillment decisions are controlled centrally for back-to-back flows. This allows your organizations to designate items to be back-to-back enabled and apply sourcing rules to determine supply creation options.

Provides 360 degree visibility of the supply creation and fulfillment process

Back-to-back fulfillment allows for visibility to demand, supply, and exceptions in the fulfillment flow. This high-level visibility provides your order fulfillment and supply chain operations managers with up-to-date information and enhances their responsiveness to exceptions. Reducing incidence of fulfillment delays is a key factor in back-to-back fulfillment.

How You Set Up Back-to-Back Fulfillment

This topic describes what actions you must take to set up (or configure) Oracle Fusion applications to support back-to-back fulfillment. You can set up back-to-back processing to coexist with business processes for standard and drop ship fulfillment flows. These predefined end-to-end flows are highly integrated across the Oracle Fusion applications.

The most important aspect of implementing back-to-back fulfillment is identifying items as back-to-back enabled in Oracle Fusion Product Model. For those items, a supply request is created only after scheduling of a sales order. This execution establishes a firm link between the demand document (sales order) and the supply document (purchase order, transfer order, or work order).

Use the steps in the following table to implement back-to-back fulfillment. The first step is mandatory. You might need additional setup or configuration depending on your business requirements. Perform the remaining steps as they pertain to your specific needs.

Action Offering or Application Comments For More Information

1. Enable items for back-to-back fulfillment.

Oracle Fusion Product Model

This is a mandatory step.

Enabling Items for Back-to-Back: Procedure

2. If you have a business requirement to build product for back-to-back orders, you must configure Oracle Fusion Global Order Promising to support make supply creation flows.

Oracle Fusion Global Order Promising

You must set up Global Order Promising to support all back-to-back supply creation flows. Configuring Global Order Promising to support back-to-back fulfillment is similar to configuration for standard order promising. However, for make recommendations, you must set up sourcing rules so that your manufacturing facilities are set to local rules.

Configuring Global Order Promising to Support Back-to-Back Fulfillment: Explained

3. If you have items designated for back-to-back make flows, you must create work definitions for those items in the Oracle Manufacturing Cloud solution. Work definitions provide the operation, resource, and component requirement details required for the creation of work orders.

Oracle Manufacturing Cloud solution

Manufacturing requires no setup specific to back-to-back manufacturing of a standard item or configured item. However, if you have items that are designated as make flows, the standard item or assemble-to-order (ATO) model item must have at least one work definition defined using a work definition name that has the Used in Planning check box enabled.

Configuring Manufacturing to Support Back-to-Back Fulfillment: Explained

Implementing Manufacturing chapter in this guide

4. (Optional) Configure Oracle Fusion Supply Chain Orchestration to define whether an internal material transfer request that originates from a back-to-back sales order is to be fulfilled by a transfer order or a purchase order.

Oracle Fusion Supply Chain Orchestration

By default, Supply Chain Orchestration creates an internal transfer order in response to a transfer recommendation from Global Order Promising. Optionally, you can define supply execution document creation rules to execute the transfer recommendation through creation of a purchase order instead. For example, you might have financial reasons for executing internal material transfers by way of a purchase order.

Configuring Supply Chain Orchestration for Back-to-Back Fulfillment: Explained

5. Set up Procurement to support back-to-back fulfillment by enabling the Customer Sales Order Fulfillment feature in the Procurement offering.

Oracle Fusion Procurement

This is a mandatory step to support back-to-back buy recommendations as well as when you have set up internal transfer recommendations to be executed through purchase orders.

Enabling Procurement to Support Back-to-Back Fulfillment: Procedure

6. (Optional) If you want to automate purchase order creation for back-to-back orders, you must create blanket purchase agreements for each item you have designated for back-to-back fulfillment.

Oracle Fusion Procurement

NA

Automating Purchase Order Creation for Back-to-Back Items: Procedure

7. For Oracle Fusion Order Management, no additional setup or configuration specific to back-to-back fulfillment is necessary.

Oracle Fusion Order Management

Order Management comes predefined with the following orchestration process:

DOO_OrderFulfillmentGenericProcess

This process is assigned to sales orders for back-to-back items. It is recommended that you familiarize yourself with this process.

For more information on Order Management and back-to-back fulfillment, see the How Order Management Orchestration Works in the following Back-to-Back Fulfillment section.

Supply Chain Management Cloud, Implementing Order Management guide

8. If you plan to outsource your manufacturing process for back-to-back fulfillment, follow instructions for contract manufacturing. The contract manufacturing solution supports complete outsourcing of the manufacturing process to fulfill a customer sales order.

Oracle Manufacturing Cloud solution

This highly integrated flow is referred to as a back-to-back contract manufacturing flow.

Configuring Manufacturing to Support Back-to-Back Fulfillment: Explained

Implementing Contract Manufacturing chapter in this guide

9. If your business requirements include configurable product, familiarize yourself with configurator modeling.

Oracle Fusion Configurator

NA

Oracle SCM Cloud Configurator Modeling guide

How Order Management Orchestration Works in Back-to-Back Fulfillment

This section provides supporting documentation for a step in the Setting Up Back-to-Back Fulfillment roadmap. Order Management orchestrates three different types (branches) of shipment fulfillment flows (standard, back-to-back, and drop ship). The back-to-back branch in Order Management is selected after the sales order line is scheduled for shipment from a warehouse. If the scheduled warehouse has the indicator Enable Back-to-Back Fulfillment set to Yes for the ordered item (enabled in Product Model), Order Management automatically routes the order line to the back-to-back process branch. For more information on setting this attribute, see Enabling Items for Back-to-Back Fulfillment: Procedure.

In the back-to-back process branch, Order Management sends the item to Supply Chain Orchestration. Then, Order Management sends the item, quantity, and ship-from warehouse information to Supply Chain Orchestration so that Supply Chain Orchestration can make sure there's ample supply available in that warehouse by the scheduled ship date. Order Management, in turn, receives supply status updates from Supply Chain Orchestration (appears in the Supply Details tab).

For more information about Order Management orchestration and the shipment fulfillment flows, see Supply Chain Management Cloud, Implementing Order Management guide.

Enable Items for Back-to-Back Fulfillment

The most critical setup that drives the back-to-back process is the Back-to-Back Enabled indicator on the item. During item creation, organizations must determine if a customer-ordered item in a warehouse or organization is to be fulfilled by the back-to-back process. The Back-to-Back Enabled indicator is defined for specific items in an organization. By default, the back-to-back setting is disabled.

The back-to-back setting is used for driving many back-to-back process steps and application logic. For example, Oracle Fusion Order Management and Oracle Fusion Supply Chain Orchestration use this option to assign the back-to-back orchestration processes. Oracle Fusion Global Order Promising uses this option to determine when a supply request is to be sent to Supply Chain Orchestration, and so on.

To enable an item for back-to-back fulfillment, do the following:

  1. From the Tasks list in the Product Information Management work area, select Manage Items, and then search for the item for which you want to enable for back-to-back fulfillment.

  2. Select the Specifications tab, and then from Item Organization, select Sales and Order Management.

  3. Change the Back-to-Back Enabled check box to Yes. The item is now enabled for back-to-back orders.

Depending on your business requirements, you might also need to set up or configure other Oracle Fusion applications for back-to-back fulfillment. For more information, see Setting Up Back-to-Back Fulfillment: Roadmap.

How You Configure Global Order Promising to Support Back-to-Back Fulfillment

This topic provides supporting documentation for a step in the Setting Up Back-to-Back Fulfillment roadmap. If you have a requirement to build products to meet your supply demand for back-to-back orders, you must configure Oracle Fusion Global Order Promising.

The Global Order Promising Rules tasks that you configure in the Order Promising work area in the Manufacturing and Supply Chain Materials Management offering are:

  • Manage ATP Rules

  • Manage Sourcing Rules

  • Manage Assignment Sets

Configuring Global Order Promising to support back-to-back fulfillment is similar to configuration for standard order promising. However, there are additional needs specific to back-to-back order promising. The following table provides the configuration settings you must apply.

Task Name Settings Comments

Manage ATP Rules

Select Supply chain availability search for the Promising Mode

NA

Manage ATP Rules

Enable Search Components and Resources

This is mandatory for back-to-back make recommendations.

Manage ATP Rules

Select the Supply Types you want supported

NA

Manage ATP Rules

Set the Infinite Availability Time Fence Definition to a large value

If the flow is required to support long-lead items, set this attribute. Otherwise, make this value consistent with the planning time fence for the enterprise.

Note: If Global Order Promising doesn't find sufficient supply until the Infinite Time Fence, it assumes there's an infinite supply for the manufactured item. Therefore, Global Order Promising doesn't generate any recommendations.

Manage Sourcing Rules

Choose Local for the Organization Assignment Type

Depending on the general setup, ranking of sources, and the ability to provide supply in the required lead time, Global Order Promising recommends make, transfer, or on hand supply recommendations.

Manage Sourcing Rules

(Optional) Enter the Start Date and End Date for Sourcing Rule Effective Dates

NA

Manage Sourcing Rules

Define supply sources in the Sources table

NA

Manage Assignment Sets

Provide the following attributes:

  • Assignment Level

  • Item

  • Define the sourcing rule within the assignment set (in the Sourcing Rule or Bill of Distribution column)

Global Order Promising supports assignment at multiple hierarchical levels.

Tip: For a manufactured item, you must associate the item with a "Make At" sourcing rule specified for the organization for which the item will be manufactured.

Global Order Promising looks through sourcing to determine what type of supply recommendation to generate at the fulfillment organization. The following table shows the supply generation recommendations for various scenarios.

Scenario Supply Recommendation

Available-to-promise (ATP) supply available at fulfillment organization

Generate ATP (on-hand) recommendation

Supply available at upstream organization defined in the local sourcing rule

Generate transfer recommendation

Supply available through components and resources at fulfillment organization

Generate make recommendation

Supply available at supplier defined in local sourcing rule at fulfillment organization

Generate buy recommendation

For more information about working with these tasks, see ATP Rules, Allocation Rules, and Sourcing Rules: How They Work Together in the Oracle SCM Cloud Using Global Order Promising guide.

How You Configure Manufacturing to Support Back-to-Back Fulfillment

This topic provides supporting documentation for a step in the Setting Up Back-to-Back Fulfillment roadmap. Depending on your business needs, you might need to configure Oracle Fusion Manufacturing for back-to-back fulfillment.

Oracle Fusion Manufacturing doesn't require setup that's specific to back-to-back manufacturing of standard or configured items. However, for Oracle Fusion Global Order Promising to recommend a back-to-back make supply source, work definitions must be defined in Manufacturing and collected by Oracle Fusion Planning. Therefore, for any item that's designated as a candidate for a back-to-back make flow, you must create work definitions and setup operations that constitute the work definition. The work definition also provides automatic creation of the work order. You configure these settings using the Work Definition task list in the Manufacturing application.

Make sure to select the Used in Planning check box in the Work Definitions Names task when creating new work definitions names for back-to-back items. This enables Oracle Fusion Planning Central to plan back-to-back item components and resources.

Note: Back-to-back flow is currently supported for only discrete manufacturing. You only need to create new work definition names if no applicable names have been defined. For information about creating new work definitions, see the Implementing Manufacturing chapter in this guide.

Set Up Supply Chain Orchestration for Back-to-Back Fulfillment

The orchestration processes that Supply Chain Orchestration uses for back-to-back fulfillment come predefined. In most situations, you can use them without modification.

Supply Chain Orchestration automatically assigns an orchestration process to the order for each item where you set the Back-to-Back Enabled option to Yes in the Product Information Management work area. Order Promising recommends to use make, buy, transfer, or on-hand to create supply when it schedules fulfillment.

If your user manually creates a supply request, then Supply Chain Orchestration combines demand details from Order Management with the supply recommendation from Order Promising when it creates the supply request document.

Use Purchase Order Instead of Transfer Order

Orchestration uses a transfer order to process an internal transfer from one warehouse to another warehouse, by default. However, you might need to use a purchase order to process an internal transfer. For example, to address a financial reason.

As an option, set up a rule that creates the supply document so it changes the behavior of the supply demand. The rule determines whether to use a transfer order or a purchase order to fulfill a transfer request that starts in a back-to-back sales order.

Enable Procurement to Support Back-to-Back Fulfillment

This topic provides supporting documentation for a step in the Setting Up Back-to-Back Fulfillment roadmap. You must enable the customer sales order fulfillment feature in the Oracle Procurement Cloud offering for the back-to-back fulfillment flow to work within Procurement.

Note: Make sure you have created your suppliers and supplier sites in the Procurement application. For more information about suppliers and supplier sites, see Oracle Procurement Cloud Using Procurement guide.

By default, Procurement isn't configured for back-to-back fulfillment. Use the following procedure to enable this feature.

  1. In the Setup and Maintenance work area, select the Procurement offering.

  2. In the Setup and Maintenance work area, select the Procurement offering, and then click the Actions drop-down list and select Change Configuration.

  3. On the Configure: Procurement page, click the Features icon.

  4. On the Features page, select the Customer Sales Order Fulfillment check box.

  5. Click Done.

For more information about configuring the Procurement offering, see the Oracle Procurement Cloud Implementing Procurement guide.

Optionally, you can automate purchase order creation for your back-to-back orders. For more information, see the Oracle Procurement Cloud Implementing Procurement guide.

How You Automate Purchase Order Creation for Back-to-Back Items

This topic provides supporting documentation for an optional step in the Setting Up Back-to-Back Fulfillment roadmap. Automating creation of purchase orders for back-to-back items can save you time and effort, especially when there's a high volume of transactions. You enable automation controls for purchase order creation in the set up for the governing blanket purchase agreements.

There are three prerequisite requirements before you can automate purchase order creation for your back-to-back order items.

  • You must have enabled back-to-back fulfillment for Oracle Fusion Procurement. For details, see Enabling Procurement to Support Back-to-Back Fulfillment: Procedure.

  • Suppliers and supplier sites must have been created. Each supplier site must be set up with a Procurement business unit that's a service provider for the requisitioning business unit that's ordering the item. The supplier's site assignment page must list the requisitioning business units for the site. For more information on creating suppliers and supplier sites and creating Procurement business units, see the Oracle Procurement Cloud Implementing Procurement guide. For more information on managing suppliers and supplier sites, see the Implementing Drop Ship section in the Supply Chain Management Cloud, Implementing Order Management guide.

After the prerequisite requirements are met, you can create blanket purchase agreements to automate purchase order creation for back-to-back order items. When creating the blanket purchase agreements, make sure to set the following automation control options:

  • Automatically generate orders. This option enables automated conversion of purchase requisitions to purchase orders.

  • Automatically submit for approval. This option enables automated submission of purchase orders for approval.

For more information on creating blanket purchase agreements, see the Oracle Procurement Cloud Using Procurement guide.

Back-to-Back Fulfillment Cross-Product Features

Cross-Product Features Compatible with Back-to-Back Fulfillment

Back-to-back fulfillment provides a variety of cross-product features within the Oracle Fusion application offerings. These features are available by default.

You can set up back-to-back processing to coexist with business processes for drop-ship and standard fulfillment flows. The fulfillment method you use for an ordered item is chosen at runtime, based on the available data. These predefined end-to-end flows are highly integrated across the Oracle Fusion applications.

Feature Description Oracle Fusion Applications Supported

Promising Back-to-Back Orders

Allows you to promise orders based on sourcing rules and lead time to make, buy, or transfer the item. Also, you can initiate back-to-back fulfillment based on item-organization combination.

Oracle Fusion Order Management, Oracle Fusion Global Order Promising

Automate Supply Orders

Automatic creation of a work order, transfer order, or purchase order that's then reserved to the sales order line. This feature provides visibility to the sales order and customer information on the reserved supply. Additionally, the supply chain manager has visibility to the sales order to which the supply order is reserved.

Order Management, Oracle Fusion Supply Chain Orchestration, Oracle Fusion Procurement, Oracle Fusion Manufacturing, Oracle Fusion Inventory Management

Automatically Reserve Inventory

Ability to automatically reserve inventory to the sales order when it's put into inventory, ensuring it can't be used to fulfill another customer order.

Supply Chain Orchestration, Inventory Management, Oracle Fusion Logistics

Manage Change in Real-Time

Makes adjustments based on supply and demand changes, and gives your supply chain manager the ability to re-source the supply if necessary.

Order Management, Supply Chain Orchestration, Procurement, Manufacturing, Inventory Management

Provide Fulfillment Visibility

Gives the order manager visibility to work order, transfer order, or purchase order status and automatically notifies the order manager when there are issues (such as when the supply doesn't meet customer request).

Order Management, Supply Chain Orchestration, Procurement, Manufacturing. Inventory Management, Oracle Fusion Receiving