Leverage advanced Oracle Replenishment Planning Cloud capabilities to automate the inventory planning process
Managing an accurate level of inventory is crucial for any organization that manufactures, distributes, or sells physical items. Having excess inventory will expose the organization to higher holding costs, a higher risk of product obsolescence, a higher risk of product expiration, and myriad other problems. Having too little inventory will directly impact sales revenue, lost opportunities, and customer satisfaction. Traditional ERP systems provide the basic inventory planning capabilities, but the process often involves manual process intervention to calculate, set, and maintain inventory planning parameters.
Automate inventory policies with Replenishment Planning
The Oracle Replenishment Planning (RP) Cloud solution can help address these challenges. Using Oracle RP, flexible rules can be configured to automatically segment the product based on various segmentation rules. Once the products are segmented, inventory policies can be assigned to each segment. Automatic inventory policy parameter calculation can be set up based on historical demand or a statistical forecast generated by Oracle RP or Oracle Demand Management.
The Oracle RP planning engine can be set up to automatically generate the required replenishment signal based on the existing supply and demand picture. The replenishment signal can be integrated into Oracle ERP Cloud or another ERP system. The Oracle RP Policy Comparison feature enables an exception-based process for automatic policy adoption. A guardrail can be set up to automatically implement inventory policy changes. Policies that fall outside the guardrail will be tagged for manual user review and approval. The embedded Analytics and BI Reporting functionality enable ongoing monitoring of policy effectiveness and earlier course correction of the suboptimal inventory policies.
Replenishment Planning Best Practices
While setting up the system, the following rules will have to be initially created:
- Automatic product segmentation rules and automatic inventory policy calculations
- Automatic replenishment signal generators
- Built-in inventory policy comparison and management functionalities
- Embedded analytics and reporting capabilities
When implementing the Oracle Replenishment Planning solution, it is important to follow the best practices given below:
- Understanding the overall business requirements
- Creating and implementing product segmentation rules
- Creating and implementing inventory policies
- Creating and implementing inventory policy assignments and guardrails
- Setting up policy comparison rules
- Setting up embedded analytics and additional reports, as required
With more automation, improved process control, and rich analytics functionalities, business users can have tighter control over their inventory policy using Oracle’s Replenishment Planning solution. Policy parameter errors can also be greatly reduced. Analytical Tools help to identify when suboptimal inventory policies are in use. Through intervention and continuous inventory policy enhancements, improvement can be realized.
Inspirage understands these challenges and will help your business achieve seamless supply chain operations using Oracle’s Replenishment Planning Cloud solution. If you are unsure about moving to Oracle Cloud due to gaps between your business requirements and Oracle’s Cloud offering, it’s possible that we have already built a solution to bridge that gap. If not, we can customize something to fit. We will do the work behind the scenes, so you can focus on growing your business.
Please visit the Oracle Cloud Marketplace to see a complete listing of Inspirage Solutions.
As the Integrated Supply Chain Specialists, with recognition from Gartner, IDC, and winners of Oracle’s ERPM (Enterprise Resource Planning & Management) & Supply Chain Management Cloud Partner of the Year (Global) awards in recent years, Inspirage is uniquely qualified to be your success partner. Whether you are upgrading your on-prem system or have decided to move to the cloud where continuous improvement is built-in, our team is prepared to guide you on your transformational journey. Contact us to learn more.
