Oracle Planning Central – Streamlining Supply Demand Logistics

By Abhimanyu Bhardwaj

Planning Central is a modern demand and supply planning solution built from the ground up for the Oracle Cloud customers. Planning Central is a major upgrade for planners, who currently depend on spreadsheets or an MRP system. Planning Central Release 13, offers the capability to create one plan that can manage demand, inventory and manufacturing/supply plans at one go. This SaaS Planning Central System will collect data from other Oracle cloud systems like Order Management Cloud, Manufacturing Cloud, Procurement Cloud etc. driving centralized standard ownership and processes. Planning Central can help discrete manufacturing companies respond to today’s production and materials management challenges.

Organizations Decisions:

Now a day’s decision making is complex in many sectors, due to overlapping legislative requirements’, multiple decision makers and managers, social and environmental impacts etc. Today in real-world decisions are derived from underlying the assumptions. Decisions are imperative to surface assumption for making effective and sensible decisions in the real world. In this real-world Oracle Supply Chain Management Cloud is helpful in taking a worthiness decision. Organizations decision are different like: –

1. The strategic decision is the decision that is concerned with the whole environment in which the firm operates. In Oracle, Sales and Operations Planning module helps management to take decisions.

2. The Tactical decision, sometimes decisions are made based on the department’s respective goals. Oracle Demand and Supply Chain Management module helps to take the decision.

3. The Operational decision, refers to a more common change in the certain work process, reporting structure or job roles. Oracle Planning Central module helps to take respective decisions.

Planning Central is designed for demand-driven adaptive planning, making it better suited for the job than a typical MRP system.

Comparison between MRP System and Planning Central

MRP System

Planning Central

Forecasting

Manual

Statistical

Safety stock calculation

Manual

Statistical

Material requirements planning

Batch

Near Real Time

Capacity requirements planning

Batch

Near Real Time

Interactive demand and supply planning

NO

YES

What-if simulation

NO

YES

Dimensions and Hierarchies

Item/Org

Multiple

Planning data measures

Limited

Extensive

Business intelligence

NO

Real Time

Data manipulation and reconciliation

NO

YES

Back-to-back and drop ship orders

NO

YES

Planning Central Key Features

By using Planning Central we can configure the measures in pivot tables, graphs, and many other analysis views. It helps planner to address the daily business need, also it responds to late orders, material shortage, and other issues by prioritizing and releasing supply recommendations. It has flexible unconstraint material and resource planning. By planned order release process, we can recommend to the logistics, manufacturing and procurement team. Sometimes a business needs an overview to see the results of their requirement and by using Planning Central we can move between different aspects of a plan with just one click. Planning Central make use of the safety stock, inventory and forecast data to accomplish the task.

  • It’s a combine demand planning and supply planning engine

  • Planning Central have some seeded measures to figure out the crucial information by analyzing the data.

Planning Central have some unified data measures which help the planner to address the daily business needs.

Unified Data Measures

Unified Data Measures

Booking forecast

Dependent Demand

Shipment forecast

Independent Demand

Sales Forecast

Order Value

Booking History

Revenue

Shipment History

Price

Sales Order

Carrying Cost

Order Quantity

Gross Margin

On Hand

Gross Margin Percentage

Safety StockFill Rate

Fill Rate

Project on Hand

Inventory Turns

Project Available Balance

On Hand Days of Cover

Planned Orders

Service Level

Transfer Orders

Demand at Risk Value

Work Orders

Demand within Excess Horizon

Purchase Orders

Demand within Obsolescence Horizon

In Transit

Excess on Hand

Schedule Receipts

Excess on Order

Basic difference between Planning Central, Supply Planning and Demand Management Cloud

Oracle Planning Central Cloud

Oracle Supply Planning Cloud

Oracle Demand management Cloud

Planning Central solution for industrial, high technology and other discrete manufacturing companies.

Enhances operational efficiency and customer satisfaction by planning item, material and component supply, monitoring the supply performance and responding to demand, availability and resource issues as they occur. We can quickly simulate responses.

A modern, comprehensive supply chain planning application for accurately sensing, predicting and shaping customer demand for a broad range of industries.

Planning central combines forecasting, inventory and, supply planning with a multidimensional analytics framework so that we can balance supply and demand, while simultaneously deriving management insight into our supply chain.

It builds upon Oracle Planning Central Cloud, cloud-based foundation for supply planning.

Demand management is especially well-suited to companies that need to analyze and segment market demand manages demand variability or handle frequent product introductions, or plan demand of configured products.

We cannot make the measures also archive function is not present.

We can make the measures also archive function is present.

Input forecast and output planned orders, material plan, resource availability and, demand & supply pegging.

We can make the measures also archive function is present.

Input shipment history, booking history and output is primarily Forecast data.

Data Collection

In Planning Central, data collection is the first step of business flow. We can transform and collect the data from various Oracle Supply Chain Management cloud applications to the Planning Central schema.

Planning Business flow (Source: Oracle Document)

The data that we collect can be of three types:

Master data: Primary sourced from Oracle Supply Chain Management Cloud.

Demand data: Demand data have two potential sources: –

  1. Sales orders: That flow from the Oracle Order Management Cloud.

  2. The shipment history: From the Oracle Materials Management Cloud.

Supply data: Supply data are collected from three sources like: –

  1. Oracle Inventory Management Cloud

  2. Oracle Manufacturing Cloud

  3. Oracle Purchasing Cloud.

Supply and Demand data

Supply

Demand

On-Hand Qty.

Sales orders (–only when no reservations)

Purchase Orders (++).

Transfer order shipment lines (–only when no reservations)

Purchase Requisition’s (++).

Sales order reservations (–When the supply is not on-hand)

In-Transit Shipments (++).

Transfer order reservations (– when the supply is not on-hand)

Transfer orders (++ Only when No in-transit Shipments.)

User-defined reservations

Transfer order Qty in receiving (++).

Account reservations

Work Order Assembly (++).

Account alias reservations

Movement request Transfer Supply (++)

Cycle count reservations.

Movement request transfer demand (–)

Movement request issue (–)

Work order component (–)

Note (++) Increment the available Quantity.

Note (–) decrement the available quantity

Data collection modes from cloud source include

1.Net change Collection: –

  • Increment Data Collection.

  • Very fast, entity specific collection from Fusion sources.

Not supported for Item Costs, Resource Availability, Fiscal Calendars, Shipment, and Booking History data.

2.Targeted Collection: –

  • Purge and replace existing data.

  • Refresh all data for a selected business object.

3.Automatic Selection: –

Select the automatic collection type when you want the planning process to decide and automatically select an appropriate collection type for each of the entities.

Plan Execution

Planning Central is integrated with other Oracle Supply Chain Management cloud applications like procurement, manufacturing, order management etc. While the plan is executed, the integration helps to automatically release planned orders and reschedules of existing supplies. Sometimes for special requirements business needs to manually release the group of orders so it helps.

  • We can manage changes and cancellations.

  • We can manage back-to-back and drop ship orders.

Planners can do release orders manually or set up automatic release rules.

Conclusion

Planning Central Cloud release 13 is Oracle’s first step towards a centralized cloud-based planning system. There are more planning features like constrained based plan, demand sensing and shaping, planning which are yet to be added, but the beginning looks promising and the future is full of opportunities. Planning Central Cloud is pre-configured system and ready to use from the moment the account is provisioned by Oracle, instead of spending time procuring hardware, integrating applications, and configuring the software, the system can be live in weeks/Months. Planning Central has a lot of potentials which is definitely going to enhance user experience and improve supply planning in companies.


About the Author

Abhimanyu Bhardwaj is working with Trinamix Inc. as an Associate Business Analyst with rich experience in SCM Functional modules like Demand Planning, Manufacturing, Procurement and Order Management. His areas of expertise are Supply Planning and Planning Central.


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