How Oracle SCM Modules Revolutionize Supply Chain Management?

Supply chain management (SCM) refers to the management of the chain that connects a firm and its buyers to get products and services. In the current world that is characterized by high competition and a fast changing market, it is very important to ensure that the supply chain processes are well managed to ensure that they are efficient, cost effective and customer oriented. This is where modern technologies, especially cloud solutions like Oracle SCM Supply Chain Management come into play. Oracle SCM Cloud is a group of modules that assists in optimization of various procedures in supply chain management such as purchasing, inventory, demand planning, and distribution. 

 

Oracle Supply Chain Management SCM

 

Since the disruptions of the global supply chain are becoming more and more frequent, the companies are in search of more efficient and adaptive solutions to these issues. The survey that was conducted by Deloitte in 2022 revealed that 79% of the organizations intended to use digital supply chain technologies to enhance flexibility and supply chain resilience. Oracle SCM cloud solution provides organizations with real time visibility, analytics and automation features that help to improve supply chain. 

 

In this article, we will explore the key Oracle SCM modules and how they contribute to improved supply chain processes. From procurement management to transportation and logistics, Oracle SCM modules offer an end-to-end solution for organizations that seek to be relevant in today’s business world. When applied, these modules assist companies in the achievement of cost reduction, improved efficiency and minimization of supply chain risks.  

 

Top 10 Oracle SCM Supply Chain Management Module 

 

1. Procurement Management 

 

Procurement can be considered as one of the most important sub-processes of supply chain management as it affects costs, suppliers and inventory. Oracle’s Procurement Cloud module is an application that helps organizations to handle procurement functions such as supplier assessment and acquisition, and purchase order management. 

 

The Procurement Cloud has other features such as supplier qualification, contract, and procurement analytics. If these functions are integrated in one location, it becomes easier to increase the level of transparency, reduce the cycle time and make proper purchasing decisions. Oracle SCM’s Procurement Cloud also integrates with other modules such as Inventory and Order Management to enable the efficient transfer of information in the chain. 

 

According to McKinsey’s research, with the help of proper digital procurement tools, companies can reduce procurement costs by 10-15%. Oracle SCM makes it possible for organizations to achieve these cost reductions while at the same time improving organizational performance. 

 

2. Inventory Management 

 

Stock control is crucial in making certain that the right quantities of stock are available in the store and not over stocked or under stocked. Oracle SCM’s Inventory Management module assists organizations to get a live update of the inventory in other locations and therefore improve on their decisions. 

 

The module uses complex analysis and artificial intelligence to predict demand, track the movement of inventory and control stock. Such real-time information helps the business to respond to changes in demand while at the same time, make sure that the business has the right stock of products at the right time. Economizing inventory can assist the companies to reduce the carrying costs while at the same time enhancing the service levels. 

 

A Statista survey conducted in 2023 reveals that 67% of the supply chain managers identified real-time inventory visibility as a critical element in their supply chain. Oracle SCM’s Inventory Management module contains the tools that can be used to gain this visibility and increase inventory performance significantly. 

 

3. Order Management 

 

The order fulfillment is one of the most critical activities in the supply chain since it impacts the customer. Order Management module of Oracle SCM is an end-to-end solution that deals with the process of capturing, validating, fulfilling and invoicing of the orders. 

 

The module provides complete visibility of the order status which in turn assists the businesses to monitor and regulate the orders in real time. This increases efficiency in the processing of orders and also reduces the likelihood of order fulfillment errors, which in turn increases customer satisfaction. Moreover, the module can record orders from different sources, which means that it can work with e-stores, call centers, and stores. 

 

The Order Management module of Oracle SCM is particularly useful for the companies that either deal with many orders or orders of different types. The automation of order processing reduces the chances of making mistakes, the time taken to complete an order and enhances the customers’ experience. 

 

4. Demand Management 

 

The forecasting of demand is a very important factor in supply chain management since it helps to ensure that supply is well coordinated to meet the needs of the customers. Oracle SCM’s Demand Management module is built on the use of advanced forecasting techniques, artificial intelligence, and history to give better demand forecasts. This puts the businesses in a position to be able to plan on their inventory, production and procurement activities. 

 

The Demand Management module of Oracle SCM helps the organizations to identify the demand signals and trends that would be of help in decision making and resource allocation. It also supports the concept of scenario modeling where an organization can model various demand scenarios and see the impact on the supply chain. 

 

According to McKinsey & Company, the organizations that use the advanced technologies to forecast demand can reduce the forecasting errors by between 20 and 50%. The Demand Management module of Oracle SCM provides the necessary information for planning, managing stock-outs and satisfying the customers. 

 

5. Product Lifecycle Management (PLM) 

 

Product management is a complex process that requires the interaction of several teams to design a product, build it, and launch it on the market and then dispose of it. Oracle SCM’s PLM module is useful in this by providing a central repository for product data, design changes and compliance. 

 

The PLM module makes it possible for the product development teams, procurement, and manufacturing departments to be well coordinated. This leads to the reduction of the time taken to bring the product to market, reduced costs of developing the product and improved quality of the final product. 

 

As per the IDC survey conducted, the companies that adopted the PLM technologies have reduced the product development cycle time by 15-25%. Oracle SCM’s PLM module enables organisations to accelerate the product development process while at the same time ensuring that the products developed meet the set standards and legal requirements. 

 

6. Manufacturing Management 

 

Production systems are important in that they help in the delivery of products on time and at the right cost. The Manufacturing Cloud module of Oracle SCM provides real time visibility to the businesses to manage and control the production schedules, resources and WIP. 

 

The Manufacturing Cloud is intended for discrete and process manufacturing businesses, which makes it rather flexible. It integrates effectively with other SCM modules to make sure that production planning is in sync with demand planning, inventory and purchasing. 

 

Manufacturing Cloud also helps companies to reduce the lead time of production, reduce waste and improve the manufacturing efficiency. This implies that there is a cut down on the costs and enhanced on time delivery performance. 

 

7. Logistics Management 

 

Transportation and logistics are two subcategories of supply chain management that have a direct impact on the delivery time, the cost of shipping and customer satisfaction. Logistics Cloud module of Oracle SCM provides the solutions to the businesses to plan the transportation routes, control the freight costs and deliver the consignments on time. 

 

The Logistics Cloud module has the capability of tracking shipment in real-time, therefore the location of the goods in the supply chain is easily identifiable. This helps the business to identify the areas of congestion, the best methods of delivering the products to the consumers and the time taken to do so. 

 

A survey conducted by Supply Chain Dive shows that 65% of the companies agree with the statement that real-time tracking of logistics is one of the most important aspects of supply chain management. The Logistics Cloud module of Oracle SCM provides the visibility and control that is needed to enhance logistics. 

 

8. Transportation Management 

 

Transportation Management is one of the modules of Oracle SCM that helps organizations to manage the transportation of products through the supply chain. The module also includes multi-modal transportation planning so that the companies can select the right mode of transportation which is cheaper and effective. 

 

The Transportation Management module also provides shipment tracking that enables tracking of delivery status, carrier relationships, and shipping expenses in real-time. By the use of transportation planning and control, one is able to reduce the cost of transportation, time of delivery and the general performance of the supply chain. 

 

KPMG survey conducted in 2022 revealed that 58% of the supply chain managers identified transportation cost as the main concern. The problem of inefficient transportation and high costs is addressed and solved by Oracle SCM’s Transportation Management module. 

 

9. Supply Chain Planning 

 

Supply chain planning is important in determining the availability of products, resources and costs in the supply chain. The Supply Chain Planning module of Oracle SCM provides facilities to build particular supply chain plans based on real time data and demand forecasts. 

 

The module is integrated with other SCM functions such as procurement, inventory, and manufacturing to make sure that the supply chain plans are aligned to the business objectives. It also includes scenario modeling through which the business can simulate various supply chain strategies and determine the effect on cost and service. 

 

According to a research done by Accenture, companies that use excellent supply chain planning technologies have the opportunity of reducing their inventory costs by 10-20%. Supply Chain Planning module of Oracle SCM provides the necessary information for planning and improving the supply chain. 

 

10. Supplier Collaboration 

 

This implies that supply chain is good when there is a good relationship with the suppliers. The Supplier Collaboration module of Oracle SCM enables the businesses to improve their supplier relationship management as it offers the means of communication, contract and supplier performance management. 

 

The module also allows real time communication with suppliers, which implies that businesses can be able to share forecasts, production schedule and inventory levels. This improves the tracking of the suppliers’ performance and helps the firms to manage the supply chain disruptions well. 

 

In the survey conducted by PwC, 68% of the companies said that supplier collaboration was imperative to improving the supply chain’s robustness. Supplier Collaboration module of Oracle SCM helps organizations to have better relations with suppliers and have a strong supply chain. 

 

Conclusion -  Oracle SCM  for Supply Chain Industry

 

Oracle SCM comprises a supply chain management solution that comes with a complete package of modules that are geared towards enhancing every process of supply chain management. These modules include procurement and inventory management, logistics and supplier collaboration, which assist businesses in increasing their efficiency, decreasing their expenses and satisfying their customers. 

 

For organizations that want to optimize on the functionality of Oracle SCM, training becomes critical. Vinsys offers Oracle SCM training course that equip supply chain professionals with the skills needed to implement and optimize Oracle SCM modules. Our training is designed by professionals of the field and offers practical work on live cases. 

 

Whether you are a beginner in Oracle SCM or looking to enhance your expertise, Vinsys offers flexible learning options that is Oracle training for individuals or Oracle corporate training for employees cater to your specific needs. Our training ensures that you can effectively handle supply chain management of your organization with Oracle SCM and ensure positive changes in the performance.   

 

Join Vinsys today and unlock the full potential of Oracle SCM!