When demand exceeds supply, first-come, first-served order fulfillment can reduce customer satisfaction and revenue. Oracle Fusion Cloud Supply Planning offers a better approach. Its order backlog management features prioritize and reschedule your open orders based upon your business objectives as supply and demand change.
Backlog management analytics summarize projected revenue, the number and value of late demands, as well as the gross margin for scheduled orders. You can easily drill through the summary graphs and charts to reschedule orders that have the greatest impact on your business.
Backlog management highlights the value of orders that you can reschedule to earlier dates, as well as those that no longer have supply available to meet their current shipment or delivery plan. You can use these intelligent recommendations to improve customer service, or to maximize the value of orders that you can ship within a fiscal period.
You can allocate available supply, use multiple criteria to reorder your order backlog, and simulate rescheduling. You can then review and adjust fulfillment options as needed. When you're satisfied with the results, you can accept and release updated schedule dates that reduce delivery delays, increase sales, and achieve your margin targets.
The most important orders should get priority when supplies are limited. Backlog management can rank competing demands by requested date, order creation date, revenue, and customer. You can add your own extensible attributes to the standard ones, and override rule-based priorities when needed to deal with exceptions or changing conditions.
While some orders are higher priority than others, it's also important to balance demand so key customers, regions, or channels have access to supply. You can control availability of scarce items using flexible allocation rules. Specific customers can have dedicated supply and share additional supply set aside for their region or channel. You have complete control over the allocation attributes and their relationships.
You can review the consumption of allocated quantities and specify that higher-priority allocation nodes can use some or all of lower-priority supply when needed. You can also override the rule-based allocation quantities to enhance results.
You may need to update an order's sourcing, shipment method, demand class or other fulfillment attributes to maximize availability. You can edit these attributes for groups of order lines in backlog management, simulate, and review the results of your changes. You can save the edits that best meet your objectives.
By default, backlog management preserves existing scheduled dates for orders as it identifies pull-in opportunities to minimize the need to communicate and negotiate changes to delivery dates. Alternatively, you can clear scheduling commitments to free up supply for higher priority order lines, and add notes to explain your decisions to other team members.
You can also automate order backlog planning using scheduled processes. Order lines are rescheduled using the specified demand priority rule, applying any allocation constraints. Any changed shipment dates, arrival dates, or sources can also be automatically released to order management for execution.
Order backlog management complements the real-time order promising features of Oracle Fusion Cloud Order Management. The updated firm order dates also drive supply planning. The result? More agile, responsive fulfillment that bridges that gap between order execution and planning.