Set Up Drop Ship in Order Management

Set up Order Management so it supports your drop ship flow.

Summary of the Set Up

1. Set up Oracle Applications.

2. Enable features.

3. Manage items.

4. Manage sourcing rules.

5. Manage financial flows. For details, see Set Up Financial Flows for Drop Ship.

6. Specify preparer for procurement.

7. Manage suppliers and supplier sites.

8. Manage agreements.

9. Manage orchestration processes.

10. Manage agreements, orchestration processes, and test.

Note

• Each of these set ups are required except for Manage Agreements and Manage Orchestration Processes, which are optional.

• In this example, you enable the AS54888 Standard Desktop Computer for drop ship.

• This topic uses example values. You might need different values, depending on your business requirements.

Set Up Oracle Applications

Set up various Oracle applications so they support drop ship. For example, the Order Management offering references Global Order Promising to collect supply data from more than one source.

Here are the tasks you do to get started with setting up drop ship.

1. Define Blanket Agreement and ASL in Procurement. Sign in with a privilege that you can use to administer Oracle Procurement.

2. Create Drop-Ship Validation Org in Inventory Management. Sign in with a privilege that you can use to administer Inventory Management.

3. Do tasks in Global Order Promising.

   • Sign in with a privilege that you can use to administer Global Order Promising.

   • Manage Data Collections.

   • Define Item Processing Lead Times.

   • Manage Sourcing Rules and Manage ATP Rules. Set up sourcing rules and ATP rules so they support drop ship. For details, see Assignments and Promising Rules.

4. Do tasks in the Manufacturing and Supply Chain Materials Management offering.

   • Manage Trade Operations

   • Define Shipping Network

   • Define Transit Lead Times

   • Manage Assignment Sets

   • Maintain Supply Network Model

For details, see Oracle Fusion Cloud SCM Common Configuration Overview.

Enable Features

1. Sign into Order Management with administrative privileges.

2. Go to the Setup and Maintenance work area, then select the Order Management offering.

   For details, see Opt Into Features in Order Management.

3. Click Actions > Change Feature Selection.

4. On the Edit Features page, in the Drop Ship row, add a check mark to Enable, then click Done.

   Enabling this feature lets you access various attributes and to do the setup tasks you need to implement drop ship, such as in Financial Orchestration.

5. Click Actions > Go to Offerings.

6. In the Setup and Maintenance work area, go to the Procurement offering.

7. Click Actions > Change Feature Selection.

8. On the Edit Features page, in the Customer Sales Order Fulfillment row, add a check mark to Enable, then click Done.

   This feature allows Oracle Procurement to accept purchase requests for sales orders that a drop ship supplier fulfills, and to display some of the attributes that you use to set up drop ship.

Manage Items

Set up items so they can participate in drop ship.

1. Sign in with a privilege that you can use to administer Product Information Management.

2. Go to the Product Information Management work area, then click Tasks > Manage Items.

3. On the Manage Items page, search for the item you want to drop ship, such as Standard Desktop Computer.

4. In the search results, in the Item column for the item you must manage, click the link.

   For example, in the Standard Desktop Computer row, click AS54888.

5. On the Edit Item page, click Specifications, then click Purchasing.

6. In the Item Organization: Purchasing area, set the attribute.

   Attribute	Description
   Purchasable	Set to Yes. Allow this item to participate in a drop shipment.

7. If a blanket purchase agreement doesn't exist for the item, then, in the Pricing area, enter a number in the List Price attribute.

8. Click Save.

   Note

   • You specify the item as purchasable in the organization that's responsible for purchasing the item.

   • The Product Information Management work area comes predefined to set the Purchasable attribute to Yes, so you modify it only if you previously set it No.

   • Learn how to make a large number of items purchasable. For details, see Implementing Product Management.

Manage Sourcing Rules

Specify a sourcing rule that already includes details for the supplier and the supplier site. Global Order Promising evaluates the sourcing rule and considers the supplier calendar, supplier capacity, and supplier lead times when it promises the order.

1. Sign in with a privilege that you can use to administer Order Promising.

2. Go to the Global Order Promising work area, then click Tasks > Manage Sourcing Rules.

3. On the Manage Sourcing Rules page, search for the sourcing rule you must modify, such as DOO-DS-Rule.

4. In the search results, click the sourcing rule, then click Actions > Edit.

5. On the Edit Sourcing Rule page, verify the value.

   Attribute	Description
   Organization Assignment Type	Make sure the type is Global. If it isn't Global, then you can't use this sourcing rule.

6. In the Effective Start Date area, to add a sourcing rule for your drop ship flow, click Actions > Add, then set the values.

   Attribute	Description
   Organization	Leave empty. The Organization is typically the warehouse that stores inventory for a flow that doesn't include a drop ship.
   Type	Select Buy From. Global Order Promising interprets Buy From to indicate that this value must come from a drop ship supplier.
   Supplier	Select the supplier who will drop ship the item.
   Supplier Site	Select the site that the supplier uses to store the drop ship item. The supplier ships the item from this site.

7. Click Save and Close.

8. Click View Assignment Sets.

9. In the Assignment Sets dialog, select an assignment set, such as AYY-OP-ASET, then click Done.

10. On the Edit Assignment Set page, in the Sourcing Assignments area, click Actions > Add Row, then assign an item to the sourcing rule.

    Attribute	Description
    Assignment Level	Set to Item. This setting assigns the sourcing rule to the item.
    Item	Select the item that the supplier you specified in step 6 supplies. For this example, select AS54888.
    Sourcing Type	Set to Sourcing Rule. This value associates the sourcing rule with the assignment set so Order Management can use the rule to assign the item.
    Sourcing Rule or Bill of Distribution	Set to Drop Ship.

Sourcing Hierarchy

Click Sourcing Hierarchy on the Edit Assignment Set page to see how Promising decides to assign the sourcing rule. Here's the hierarchy that it uses for a drop shipment.

Rank	Description
1	Item, Customer or customer site
2	Item, Customer
3	Item, Demand Class
4	Item, Region
5	Category, Customer or customer site
6	Category, Customer
7	Category, Demand Class
8	Item
9	Category, Region
10	Category
11	Customer or customer site
12	Customer
13	Demand Class
14	Region
15	Global

1 is the highest ranking, and 15 is the lowest ranking. Promising assigns from 1 through 15, sequentially.

• Promising assigns the sourcing rule to the item's customer or customer site.

• If Promising can't assign the sourcing rule to the item's customer or customer site, then it assigns the rule to the item's customer.

• If Promising can't assign the sourcing rule to the item's customer, then it assigns the rule to the item's demand class.

• And so on.

Attributes for the Supplier

You can also specify other attributes for the supplier.

Attribute	Description
Supplier Calendar	Specify the working days for the supplier. Modify the calendar for each supplier site. The calendar you specify can be different from the calendar that the Supplier Site uses. Global Order Promising considers only working days when it calculates and incorporates lead times.
Supplier Capacity	Specify the supplier capacity according to item, supplier, and supplier site. Order Promising measures the supplier capacity that exists on the arrival date.
Supplier Lead Times	You specify and collect the lead times for item processing on the item master in Product Information Management. You can specify a lead time for each supplier in Global Order Promising.

Specify Preparer for Procurement

Specify an Order Management user who the buyer can contact to help resolve a problem that might happen with a fulfillment line that involves a drop ship supplier.

1. In the Setup and Maintenance work area, go to the task.

   • Offering: Order Management

   • Functional Area: Orders

   • Task: Manage Order Management Parameters

2. On the Manage Order Management Parameters page, click Preparer for Procurement.

3. In the Preparer for Procurement list, add a preparer, then click Save and Close.

   Order Management doesn't use the value for any other attribute as the preparer. For example, it doesn't use the Created By attribute on the order header or order line. It uses only the value you specify in Preparer for Procurement. For details, see Manage Order Management Parameters.

Manage Suppliers and Supplier Sites

Make sure the supplier data that you're providing is valid.

For example, assume your supplier's name is Penny Pack Systems:

1. Go to the Suppliers work area, then click Manage Suppliers.
2. On the Manage Suppliers page, search for Penny Pack Systems. Make sure the supplier exists and is active.
3. Make sure you have the privileges that you need to manage Accounts Receivable, go to the Accounts Receivable work area, then click Tasks > Manage Customers.
4. On the Manage Customers page, set the values, then click Search.

   Attribute	Value
   Customer Type	Organization Your supplier must be an organization.
   Organization Name	Penny Pack Systems

5. Verify that the search results contains Penny Pack Systems. If the results don't include your supplier, then click Actions > Create to add it.
6. In the Sites section, make sure the supplier site exists and that the Purpose attribute contains Purchasing or contains Sourcing.
7. If the Purpose doesn't contain Purchasing or Sourcing, then edit the site and set these values.

   Attribute	Value
   Procurement BU	Vision Operations You must use the same business unit that the supplier uses. For this example, assume it's Vision Operations.
   Status	Active The site must be active.
   Purchasing	Contains a check mark.

For background, see the Supplier Sites and Supplier Site Assignments topic in Using Procurement.

Manage Agreements, Orchestration Processes, and Test

Manage Agreements

Oracle Purchasing allows your buyer to create a blanket purchase agreement for items it will drop ship from the supplier. You must define an agreement for each supplier and supplier site, and associate one or more items with the agreement. You do this work when you set up purchasing.

This topic describes how to modify the setup so it supports drop ship. Purchasing uses the prices that the agreement specifies to set default values in the purchase documents. For details, see the Blanket Purchase Agreement Lines topic in Using Procurement.

You manage agreements differently for a drop ship that includes a configured item. For details, see Set Up Drop Ship for Configured Items.

Manage agreements.

1. Sign in with a privilege that lets you access the Purchasing work area.

2. Go to the Purchasing work area.

3. Click Tasks > Manage Agreements.

4. On the Manage Agreements page, select a value in the Procurement BU attribute, such as Vision Operations, then click Search.

5. In the search results, in a row that includes an agreement with a supplier who will drop ship your item, in the Agreement column, click the link.

6. On the Agreement page, click Actions > Edit.

7. On the Edit Document page, click Controls, then set the values.

   Attribute	Description
   Automatically Generate Orders	Set to a value. Contains a check mark. Purchasing will automatically convert each requisition that it sources from the blanket purchase agreement. It will convert each requisition to a purchase order. Doesn't contain a check mark. Your buyer must do the conversion manually in the Purchasing work area. Purchasing examines eligibility according to the requisition to purchase order even if Automatically Generate Orders doesn't contain a check mark. For example, it makes sure each attribute is valid. Buyer Supplier Supplier site Source agreement Item is purchasable in the inventory organization of the procurement business unit
   Automatically Submit for Approval	Make sure this option contains a check mark. If it doesn't, then Order Management will create the order with an incomplete status, and the buyer must manually submit it for approval.
   Use Customer Sales Order	Set the value. Contains a check mark. Purchasing will group requisition lines that reference the same sales order number. It will group them on a single purchase order. Doesn't contain a check mark. Purchasing won't group.

8. Click Save > Save and Close.

9. Repeat steps 5 through 8 for each supplier who participates in your drop ship flow.

Manage Orchestration Processes

Order Management comes predefined with the DOO_OrderFulfillmentGenericProcess orchestration process.

It contains branches that run under conditions.

• If the shipment is a drop shipment, then run the Create Shipment Request branch.

• If you enable the item in the inventory organization for back-to-back shipping, then run the back-to-back branch.

• If the first two conditions are false, then run the Create Reservation branch.

Use this orchestration process as the default process assignment in your Assign and Launch rule. You can also create your own orchestration process that meets your business requirements. For details, see Set Up Orchestration Processes.

Examine the predefined orchestration process.

1. Sign in with the privileges that you need to administer Order Management.

2. In the Setup and Maintenance work area, go to the task.

   • Offering: Order Management

   • Functional Area: Orders

   • Task: Manage Orchestration Process Definitions

3. On the Manage Orchestration Process Definitions page, search for DOO_OrderFulfillmentGenericProcess.

4. Examine the steps and branches.

5. If necessary, make a copy of this process, then modify it so it meets your business requirements, or create a new orchestration process and use DOO_OrderFulfillmentGenericProcess as a starting point.

Test Your Set Up

Create a sales order that uses drop ship.