Oracle 1z0-1073-24 Dumps Questions Answers

Back-to-Back Supply Creation Flows: Make & Transfer in Oracle Cloud

1. Overview of Back-to-Back Supply Creation Flows

Back-to-back (B2B) supply creation flows in Oracle Fusion Cloud allow businesses to generate supply only when a sales order is placed . The system creates supply documents dynamically based on sourcing rules and executes supply fulfillment through Manufacturing (Make Flow) or Inventory Transfer (Transfer Flow).

Each flow follows these key steps:

Sales Order Entry & Scheduling – A customer places an order that requires supply creation.

Supply Order Generation – The system determines whether to manufacture or transfer stock.

Supply Execution – The supply is produced (Make Flow) or transferred from another warehouse (Transfer Flow).

Receiving & Reservation – The supply is received and linked to the sales order.

Order Fulfillment – The sales order is shipped to the customer.

2. Back-to-Back Supply Creation: Make Flow (Manufacturing-Based Fulfillment)

The Make Flow is used when the item must be manufactured in-house because it is not available in stock or through procurement. The system creates a Work Order (WO) in Oracle Manufacturing Cloud and ties it to the sales order.

Step-by-Step Make Flow Process

Below is the step-by-step breakdown of the Back-to-Back Make Flow using Oracle Fusion Cloud applications.

Step 1: Enter & Schedule Sales Order

The customer places an order in Oracle Order Management .

The system checks stock availability in Oracle Inventory Cloud .

Since no stock is available, Oracle Supply Chain Orchestration (SCO) triggers a supply request.

Oracle Global Order Promising (GOP) determines that the item must be manufactured.

The sales order is scheduled for back-to-back fulfillment.

✅ System Action: The system marks the sales order for manufacturing and creates a supply order.

Step 2: Create & Request Work Order

Oracle Supply Chain Orchestration (SCO) generates a Supply Order .

The system determines that a Work Order (WO) is needed.

A Work Order (WO) is created in Oracle Manufacturing Cloud .

The Work Order is tied to the sales order to ensure the finished goods are allocated for this order only.

✅ System Action: The system creates a Work Order (WO) in Oracle Manufacturing.

Step 3: Execute Manufacturing Process

The Work Order goes through the standard production process .

Raw materials are issued from inventory.

Production activities are completed.

The final product is reported as complete in Oracle Manufacturing Cloud .

The Work Order is completed , and the finished goods are transferred to Oracle Inventory Cloud .

✅ System Action: The system marks the Work Order as complete and updates inventory.

Step 4: Reserve & Ship the Sales Order

The system reserves the manufactured stock against the sales order.

The order is picked, packed, and shipped from the warehouse.

Oracle Shipping Execution updates the order status.

An invoice is generated in Oracle Receivables .

The sales order is closed .

✅ Final Action: The system completes the order and ships it to the customer.

Oracle Fusion Cloud Modules Involved in Make Flow

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Back-to-Back Fulfillment in Oracle Inventory Cloud

Back-to-back fulfillment in Oracle Inventory Cloud is a supply chain process where supply is created only after a sales order is placed. This process links the demand (customer sales order) directly to the supply (procurement, manufacturing, transfer, or existing stock), ensuring efficient inventory management while meeting customer demands. Below is a detailed step-by-step explanation of the back-to-back fulfillment process.

1. Overview of Back-to-Back Fulfillment Process

The back-to-back (B2B) fulfillment process ensures that supply is created only when a customer order is received.

Supply is specifically reserved for the sales order until shipping.

This process helps reduce excess inventory while maintaining responsiveness to customer needs.

It supports four fulfillment strategies: Buy, Make, Transfer, and On Hand Reservation .

Back-to-back fulfillment is mainly used in discrete manufacturing environments.

2. Step-by-Step Back-to-Back Fulfillment Process in Oracle Inventory Cloud

The back-to-back fulfillment process consists of the following key steps:

Step 1: Process Sales Order

The sales order is created in Oracle Order Management .

The order is validated for correctness (items, quantities, prices, etc.).

The order is scheduled, and the system checks if on-hand inventory is available.

If no inventory is available, Oracle Supply Chain Orchestration initiates a back-to-back fulfillment request.

Step 2: Determine Supply Sources

Oracle Supply Chain Orchestration (SCO) determines the best supply source based on predefined rules and sourcing strategies.

The system evaluates the following supply options:

Buy : Procurement from an external supplier.

Make : Internal manufacturing or contract manufacturing.

Transfer : Movement of inventory from another warehouse or distribution center.

On Hand : Direct reservation of existing inventory.

Step 3: Create and Manage the Supply Order

A supply order is generated in Oracle Supply Chain Orchestration .

The order is assigned to the appropriate fulfillment method:

Buy Order : A purchase requisition is created in Oracle Procurement Cloud , and the supplier provides the required goods.

Make Order : A work order is created in Oracle Manufacturing Cloud , and production begins.

Transfer Order : A transfer request is initiated in Oracle Inventory Management , moving stock from another warehouse.

On-Hand Reservation : If stock is available, it is reserved against the sales order.

Oracle monitors the progress of the supply order until completion.

Step 4: Receive and Consolidate Supply in Warehouse

Once supply is procured, manufactured, or transferred, it is received in the fulfillment warehouse.

If it is a purchased item, a receipt is created in Oracle Receiving .

If it is a manufactured item, the work order is completed, and inventory is updated.

The system ensures that the received inventory is linked to the original sales order.

Step 5: Ship to Customer

The sales order is released for fulfillment.

A Pick Release process is initiated in Oracle Inventory Cloud to allocate stock.

The order is picked, packed, and shipped using Oracle Shipping Execution .

A shipping confirmation is generated, and an invoice is created in Oracle Receivables .

The sales order is marked as complete, and the supply order is closed.

3. Detailed Explanation of Back-to-Back Fulfillment Flows

1. Buy Flow (Procurement)

If the supply is sourced externally, the system generates a purchase order in Oracle Procurement Cloud.

The supplier delivers the goods, which are received in Oracle Receiving.

The inventory is updated, and the order is prepared for shipment.

The sales order is fulfilled once the goods arrive.

2. Make Flow (Manufacturing)

If the item is manufactured internally, a work order is created in Oracle Manufacturing Cloud.

Production is executed, and the finished product is stored in inventory.

The system reserves the item against the sales order.

The order is fulfilled when the product is available.

3. Transfer Flow (Warehouse Transfer)

If the item is available in another warehouse, a transfer order is generated in Oracle Inventory Cloud.

The inventory is moved to the fulfillment warehouse.

Once received, the inventory is reserved and prepared for shipment.

The sales order is completed upon shipment.

4. On Hand Flow (Inventory Reservation)

If the item is available in stock, the system directly reserves it.

The order moves to the shipping phase without additional procurement or manufacturing steps.

The pick, pack, and ship process is executed, and the order is fulfilled.

4. Key Benefits of Back-to-Back Fulfillment in Oracle Inventory Cloud

✔ Reduced Inventory Holding Costs – Stock is only procured, manufactured, or transferred when needed. ✔ Improved Order Fulfillment Efficiency – Orders are linked directly to supply, reducing delays. ✔ Better Customer Satisfaction – Customers receive products faster with reduced stockouts. ✔ Automated Supply Chain Coordination – Oracle Cloud applications ensure seamless integration between order management, procurement, manufacturing, and inventory. ✔ Flexibility in Sourcing – Users can choose between procurement, manufacturing, transfer, or existing stock to fulfill demand efficiently.

5. Oracle Cloud Modules Involved in Back-to-Back Fulfillment

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6. Example Use Case: Back-to-Back Fulfillment in Action

Scenario: A customer places an order for 100 units of Item XYZ , but there is no stock available in the warehouse.

Solution:

The system checks stock availability and identifies that back-to-back fulfillment is required.

The sourcing rules determine that procurement from an external supplier is the best option.

A purchase requisition is created in Oracle Procurement Cloud.

The supplier delivers the items, and they are received into inventory.

The inventory is reserved against the sales order.

The shipping process is initiated, and the order is delivered to the customer.

The sales order and supply order are closed.

Back-to-Back Supply Creation: On-Hand Flow in Oracle Cloud

1. Overview of Back-to-Back On-Hand Flow

The Back-to-Back On-Hand Flow is the simplest and fastest fulfillment method in Oracle Cloud because the required stock is already available in the fulfillment warehouse at the time of sales order entry.

Unlike Buy, Make, or Transfer Flows , no additional supply is created. Instead, Oracle Supply Chain Orchestration (SCO) directly reserves the available inventory against the sales order, making it ready for immediate shipment .

2. Step-by-Step Back-to-Back On-Hand Flow Process

Below is a detailed step-by-step breakdown of the Back-to-Back On-Hand Flow using Oracle Fusion Cloud applications.

Step 1: Enter & Schedule Sales Order

The customer places a sales order in Oracle Order Management .

The system checks inventory availability in Oracle Inventory Cloud .

Oracle Global Order Promising (GOP) determines that the required stock is already available in the fulfillment warehouse.

No procurement, manufacturing, or warehouse transfers are needed.

The sales order is scheduled immediately for fulfillment.

✅ System Action: The system identifies that on-hand stock is available and proceeds to reservation.

Step 2: Reserve Available Inventory

Oracle Supply Chain Orchestration (SCO) reserves the available stock against the back-to-back sales order.

The system ensures that this stock is allocated only to this order , preventing other orders from using it.

✅ System Action: The system reserves the required quantity for the sales order.

Step 3: Ship the Sales Order

The order moves directly to shipping in Oracle Inventory Cloud .

The warehouse team picks, packs, and ships the goods using Oracle Shipping Execution .

An invoice is generated in Oracle Receivables .

The sales order is closed after shipment.

✅ Final Action: The system completes the order and ships it to the customer.

3. Oracle Fusion Cloud Modules Involved in On-Hand Flow

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4. Benefits of Back-to-Back On-Hand Flow

✔ Fastest Fulfillment Process – No need for procurement, manufacturing, or transfers. ✔ Minimizes Order Processing Time – Orders can be shipped immediately after reservation. ✔ Eliminates Additional Costs – No purchase orders, work orders, or transfers required. ✔ Ensures Inventory Optimization – Uses available stock efficiently. ✔ Improves Customer Satisfaction – Quick shipping and fulfillment.

5. Real-World Use Case

Scenario: Electronics Retailer Fulfilling a Popular Smartphone Order

A retailer sells Smartphone XYZ and has 100 units in stock at its fulfillment warehouse.

Process Flow:

A customer places an order for 10 units of Smartphone XYZ .

Oracle Global Order Promising (GOP) identifies that stock is available .

Oracle Supply Chain Orchestration (SCO) reserves 10 units against the sales order.

The warehouse team picks, packs, and ships the smartphones.

The customer receives the order, and the system closes the sales order .

✅ Result: The order is fulfilled immediately without additional supply creation.