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Implementing Order Management
Cloud
Tips and Best Practices (Part 13) – Drop Ship Order Fulfillment

Amit Ambekar
Senior Principal Product Manager, Product Management
Order Management Cloud

July 2019

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 3

Introduction to Tips & Best Practices Series
Objective Target Audience Topics

Provide recommendations for how to Customers and partners familiar with Focus on core functional setups in
implement Order Management the basics of implementing Order Order Management Cloud with
Cloud to achieve the best results in Management Cloud specific configuration tips and best
the fastest time practices

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 4

Agenda

1 Overview of Drop Ship functionality in Order Management

2 Implementation tips and best practices
3 Additional information
4 Questions / suggestions for future topics

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Overview of Drop Ship functionality in Order Management
What does it do?
– Allows companies to fulfill their sales orders using third party suppliers who ship the
sales orders directly to customers
Customer Examples

Can a buyer make modifications to purchase orders?

Can I fulfill multiple sales orders by combining them

into a single purchase order?

Can I make modifications to a sales order for which a

drop ship purchase order has been created?

Can I fulfill order lines in a ship set using a drop ship

supplier?

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

How does Drop Ship Order Fulfillment work?
Drop Ship Flow
System / FOM
Channel

Enter Sales Order

Orchestrate
Fulfillment

Assign Order to
Get Financial Create Drop Ship Accept PO Wait for Invoice
orchestration Schedule Order End
Agreement Requisition Events Shipment Customer
process
Plan Supply

Buy From Sourcing

Promise Order (from
Rule
Supplier)
Orchestration
Financial

Drop Ship
Execute Financial
Agreement
Flow
Procure product

Event based response

Create Dropship Purchase Order

Purchase Order
Ship Product
(Supplier)

Review Purchase ASN

Ship Product
Order
Create Receipt
(Logistics)

Create (logical)
Receipt
Shipment

Cost drop ship receipt,

Cost

Cost Shipment
book supplier accrual

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Drop Ship Order Fulfillment Related Setups
• Fulfill a customer order through
drop shipment
• Mark item as Purchasable in
Product Information
Management
• Enable drop ship financial flow
• Setup relationship between Business
Unit & Requisition Business Unit
• Order Promising for drop ship
• Setup Sourcing Rule of type ‘Buy
From’

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Drop Ship Order Fulfillment Related Setups
• Specify a procurer for
procurement
• At least one value should be
specified.
• Setup suppliers, supplier sites,
agreements in Procurement
• Setup Change of Ownership for
drop ship item
• Create ASN’s for drop ship receipts
• Match Account Payable Invoices

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Drop Ship Order Fulfillment flow
• A drop ship sales order results
in two documents in
procurement
• Purchase Requisition
• Purchase Order (PO)
• Sales order line goes to
‘Requisition Created’ status
when a requisition is created
• Sales order line goes to
‘Awaiting Shipping’ status
when a PO is created

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Drop Ship Order Fulfillment flow
• The following responses are
received from procurement:
• PO_IMPLEMENTED – PO Implemented
• PO_CO_IMPLEMENTED – PO Change
implemented
• PO_CO_RESCINDED – PO Change
Rescinded
• REQ_LINE_CANCEL – Requisition line is
returned
• Once a line is in Awaiting
Shipping, ASN information can be
received at any time from
Receiving.
• Logical receipt created in Receiving
• Full quantity OR partial quantity
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Agenda

1 Overview of Drop Ship Functionality in Order Management

2 Implementation tips and best practices
3 Additional information
4 Questions / suggestions for future topics

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 12

Drop Ship Order Creation
Tips and Best Practices

• Provide Supplier / Supplier Site Id during order

creation

• If not, supplier can be suggested by GOP based

on sourcing rules
o Provide Supplier Ship Date if GOP is not being
used.

• Drop ship flow supports standard items, kits,

models (ATO/PTO)
o Drop ship flow does not support non-shippable
items such as a coverage item, subscription, or
warranty

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Integration with Fusion Procurement
Tips and Best Practices

• Use EFF’s to send custom attributes to

procurement

• Use service mappings to send data to

procurement e.g. supplier price, notes to
suppliers.

• Use attachments to send information to

procurement i.e. shipping instructions, packing
instructions
• Attachments of type MISC only

• Do not use shipsets to group sales order lines to

purchase order

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Integration with Fusion Procurement
Tips and Best Practices

• The most commonly used setup is for the PO

creation in Procurement to be automatic.
o Automatically generate purchase orders
o Automatically submit for approval

• Sales order lines can be consolidated into one

or more purchase orders.
o Consolidation of sales orders across
customers & supplier sites is not currently
supported.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 15

Drop Ship Order – Changes to Sales Orders
Tips and Best Practices

• Processing constraints
o Update Fulfillment Line That Drop Ships
o Cancel Fulfillment Line That Drop Ships
o Update/Cancel order line when PO isn’t available
o Prevents changes when the PO is on hold, locked or closed for
receiving.
o Update Purchase Request Validation
o Either requested arrival date or scheduled arrival date has to
be provided for a drop ship line.

• Aggregator behavior
o change processing
o Aggregates fulfillment lines based on time & number of
lines.
o Default set to 10 minutes.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 16

Drop Ship Order – Changes to Sales Orders from OM
Tips and Best Practices

• A line in Requisition Created status can be cancelled from

OM.
o Line should not be part of a model.

• Only cancellation (of quantity not shipped) is allowed

after a line has been partially shipped.
o Cancellation should be initiated from OM.

• Convert a warehouse order to a drop ship order.

o Provide Scheduled Arrival Date for requisition creation

• OM does not support changes to quantity once ASN has

been received
o Check in Receiving for over-shipment
o As flow progresses to the next step.
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Drop Ship Order – Buyer Initiated Changes
Tips and Best Practices

• Buyer changes to requisition lines is not

supported.

• Buyer initiated changes to PTO/ATO models, Kits

are not supported.

• Schedule splits are allowed

o Do not combine a schedule split with a quantity
change or supplier change

• OM supports change of non-restricted attributes

e.g. buyer
o Restricted attributes are those that impact the
drop ship flow. (supplier, quantity etc.)

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Drop Ship Order – General Information
Tips and Best Practices

• Setup Ownership change based on your business

process
o ASN from supplier
o AP invoice match

• Returns to warehouse is supported in OM.

o Returns directly to supplier is currently not supported.

• Integration to OTBI ensures drop ship orders can be

reported on.

• Drop ship flow with Fusion Procurement

o Flow does not support a 3rd party drop ship application

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 Summary of Tips & Best Practices
Drop Ship Order Creation Changes to Sales Orders
• Provide Supplier / Supplier Site Id during order creation • Processing Constraints
• If not, supplier can be suggested by GOP based on sourcing • Aggregator for change processing – based on time
rules • Drop ship flow does not support non-shippable lines
• Drop ship flow does not support non-shippable lines

Integration to Procurement
• Use EFF’s & service mappings to capture/map custom attributes
• Use attachments to pass data to procurement i.e. shipping
instructions
• Do not use shipsets to group sales order lines into purchase orders
• Setup procurement to create PO’s automatically or create manually
using the Document Builder
• Consolidate sales orders into 1 or more purchase orders depending on
your business process

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 Summary of Tips & Best Practices
OM Initiated Changes Buyer Initiated Changes
• Requisitions can be cancelled, but no other changes are • Buyer changes to requisition lines is not supported.
allowed. • Buyer initiated changes to PTO/ATO models, Kits are not
• Only cancellation (of quantity not shipped) is allowed after a supported.
line has been partially shipped. • Do not combine a schedule split with a supplier or quantity
• Provide Scheduled Arrival Date when converting a warehouse change.
order to a drop ship order • Changes to non-restricted attributes are supported.
• No changes to quantity supported once ASN has been
received.

General Information
• Setup Ownership change based on your business process
• Returns process to warehouse is supported
• Use OTBI for reporting on drop ship orders
• Drop ship flow cannot be used with a 3rd party procurement
application.

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Agenda

1 Overview of Drop Ship Functionality in Order Management

2 Implementation tips and best practices
3 Additional information
4 Questions / suggestions for future topics

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 22

Where to find additional information - OM
– Oracle Help Center - Implementing Order Management Cloud
• https://docs.oracle.com/en/cloud/saas/index.html
– Navigate to Supply Chain Management – Order Management
– Select your update “Oracle Supply Chain Management Cloud 19B”
– Click Books (left menu) to find Implementing Order Management
– White Papers on My Oracle Support
– Drop Ship Setup Document (Doc ID 2538216.1)
– Order to Cash - Drop Ship Order Flow (Doc ID 2278649.1)

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 23

Agenda

1 Overview of Drop Ship Functionality in Order Management

2 Implementation tips and best practices
3 Where to find additional information
4 Questions / suggestions for future topics

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Discussion
Future Topics Questions
Understanding Shipsets in Order Management.

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Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 26