OBIA7961SV2 :

Oracle BI Applications
Order Management and Order Fulfillment
Functionality and Script

Last update: December 29, 2009

Oracle Business Intelligence Applications

General information about the demo:

This demo illustrates how Oracle Supply Chain and Order Management Analytics can
provide important insight into the performance of key areas such as Order
Management, Inventory Management and Order Fulfillment. The insight gained from
these analyses can be transformed into strategic decisions and actions that can lead to
improved efficiency in customer satisfaction, financial performance and profitable
results.
This demo is built around an enterprise called Vision, which is a large computer
hardware manufacturing company that rose to market leadership based on its leading
edge technology. In this demo we assume that Vision has four sales organizations:
Vision Operations, Vision Industries, Vision Financial Services and US Federal
Government.
We pick up the demo scenarios where the CEO has tasked Eileen Smith, VP of sales
operations, to perform the following:

Improve order revenue

Improve on-time delivery and order fulfillment performance resulting in customer
satisfaction

This demo happens at close of business on June 30, 2009, which is the end of the second
quarter of 2009.

Oracle Business Intelligence Applications

1. Script for Order Management Demo

1

What to say and do

In this demo, well see Oracles Order Management Dashboard
of the Supply Chain and Order Management Analytics
application. This application delivers deep customer insight
into order and inventory data so you can make better
decisions in each stage of the order lifecycle. Oracle Supply
Chain and Order Management Analytics enables you to assess
inventory levels, determine likely product fulfillment needs
before the order has been booked, quickly identify potential
order backlog issues, and stay on top of critical accounts
receivable (A/R) and daily sales outstanding (DSO) issues. By
leveraging actionable and fact-based insights, you can
transform your current Supply Chain and Order Management
processes to improve financial performance and customer
satisfaction.
The Oracle BI Applications (OBI Apps) are complete, pre-built
solutions with ETL, data schema, meta-data, reports, and
dashboards.
The pre-built dashboards and reports are delivered via
Business Intelligence Enterprise Editions (OBI EE) 100% thin
client dashboard interface.
Notice that with the OBI Apps, your organizational role
determines your level of data access through security
integrated with the transactional system.
Next Step: Log in as: esmith/esmith

Screen Shot

Oracle Business Intelligence Applications

What to say and do

Well start this demonstration with the Order Management
dashboard, which provides Sales Executives, Order
Management managers, Sales Operations and Sales
Representatives with rich insight into the revenue
performance of the sales organization through actionable
insight on Orders, Revenue, Trends, Margins, Discounts,
Cancellations, Returns and Customers.

Eileen gets to the Overview page of the Order Management

dashboard. This page contains key metrics and reports that
give her a complete summary of the Order Management
process, including order revenue, invoice revenue, GL
revenue, average order size, percent discounts and return
amount, etc.
Upon close scrutiny of Cumulative Order Revenue versus Last
Quarter report, she finds that this quarters revenue is
significantly behind last quarters revenue, as can be seen
from the narrowing gap between cumulative order revenue
and quarter ago cumulative order revenue for Q1 and Q2 of
2009. She immediately realizes that there could possibly be a
downward trend in order revenue. She is not sure though if
there is a downward trend and if there is one, why. So she
decides to go through some of the Order Management
dashboard content to help her uncover the root of the
problem and take corrective action to resolve the issue.

Notice how Eileen can effortlessly change the filters located on

the top of the page selecting a desired sales organization,
product or time period. In this case Eileen can limit her review
to Vision Operations by pulling down the Sales Org. Name
filter, selecting US Federal Government, Vision Financial
Services and Vision Industries and moving them to the right
(Click OK after selecting Vision Operations as shown and
then, to refresh the data in the page click the Go button
located by the parameters.)

Screen Shot

Oracle Business Intelligence Applications

What to say and do

Screen Shot

In the same report she had examined before she notices that
the narrowing gap between cumulative order revenue and
quarter ago cumulative order revenue for Q1 and Q2 of 2009
is more acute for Vision Operations. Also. She notices a
growing gap between this and the previous period cumulative
invoices (See report Cumulative Order and Invoice Revenue),
which point at possible fulfillment issues.
She clicks on the guided navigation link Trends below the
Cumulative Order Revenue versus Last Quarter report. (Show
the guided navigation links through the demo. Guided
Navigation Links are located below selected reports. They
highlight possible exception situations and provide links to
other reports or pages that may help explain the root of the
noted exception.)

In the Trends page Eileen confirms that Vision Operations has

experienced a sharp reduction in orders (if you change the
parameters to include the other sales organizations you will
see that they have also seen reductions in orders although not
as sharp as those of Vision Operations).
Further to that, she notices that Vision Operations
cancellations have been going up to over 15% of order amount
and Returns have been going up to over 10% for the last two
quarters.
Looking at the Average Products per Order Trend report, she
notices that the average number of products in an order has
come down close to 1 product per order from an earlier
average of more than 2 products per order. This is a reason
behind the reduction in average order size, which has come
down from the earlier levels of $35,000 to the current level of
$15,000.
Glaring at the Average Order Size and Discount Trends report,
she notices that discounts have gone up from 10% to about
18% in recent times and realizes that increasing discounts
along with reduced number of products per order (Indicating
less cross-selling) have brought down the average order size
for the last two quarters.
In conjunction with trend issues on this page, she is now
interested in knowing the effectiveness of sales force. She
navigates to the Effectiveness page of Order Management
dashboard by clicking the corresponding tab.

Oracle Business Intelligence Applications

What to say and do

In the Effectiveness page she examines the performance of
the sales regions across sales organizations in cross-selling to
maintain a high average order size. She studies the reports in
this page and makes note that the North America, Asia Pacific.
EMEA and North America Federal sales regions have not
been as effective and the other regions in cross-selling. They
may need further training on products.
In this page she can also compare the performance of the
different sales organizations. She notices how Vision
Operations has been discounting orders more heavily than the
other organizations for the 2008 2009 period selected. The
average number of products per order is also lower than that
of the top sales organization, which is Vision Industries. Vision
Operations needs to make a better job at cross selling
products and at selling them based on their features and not
just discounting prices.
She then decides to take a peek at the products with highest
and lowest order margin so the training can be aligned
towards cross-selling of high margin products. She clicks on
the Margin Analysis tab.

Eileen takes a glimpse on Top Ten Products By Order Margin

report and notes down that Envoy Delight Laptop (22.7%) and
Standard Desktop Packaging (23.3%) products, which yield the
highest order margin.
She makes a note with the list of top margin products and
decides to talk to the Sales Training department so that the
sales force can be trained how to sell and/or cross-sell those
products better.
In the Top Ten Products By Net Order Margin she also takes
note of products Standard Laptop Overlay (3.2%) and Deluxe
Desktop Manual (8.7%), which have low net order margins.
[Optional: As part of the demo you can also click the link
Bottom Ten Products by Order Margin to go to this report.
Click Return when done to come back to the page+.

Screen Shot

Oracle Business Intelligence Applications

What to say and do

Still in the Margin Analysis page, she takes a look at the
products that contribute towards lost order margins due to
returns. She decides to talk to the product managers about
the Envoy Deluxe Custom Laptop (22.6% lost margin) and
Sentinel Standard Desktop TPD (22.9% lost margin), which are
experiencing the largest percent lost margin due to a lot of
returns.
She realizes that she needs to talk to the product managers of
the products experiencing a lot of returns about how to
minimize returns and reduce lost margin.

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Eileen can check the performance of any single product by just

selecting it in the corresponding filter menu. (For example,
choose product Envoy Deluxe Laptop -or any other product
that you would like to demo- by selecting it in the Product
Name filter and moving it to the left panel of the shuttle. The
click OK and once you are back in the page click the Go
button by the filters)

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As a result of selecting a product, Eileen can see margin data

just for that product and for the time period indicated in the
filters. Rolling down the cursor over the bars in the graphs, the
exact values of the graphs pop up in the screen.

Screen Shot

Oracle Business Intelligence Applications

12

What to say and do

Summary (Order Management)

Screen Shot

What you have seen today is a demonstration of how Oracle

Supply Chain and Order Management Analytics can enable
organizations to make better and timely decisions by
delivering insight driven analytics to the enterprise.
We witnessed how Eileen Smith, VP of Sales Operations,
detected the flagging Order Revenue and went on to analyze
the downward trends in average order size and number of
products in an order. She then examined the sales force
effectiveness in average order size and cross-selling. She took
note of the Sales Orgs and Regions that need to be trained to
better cross-sell and increase the average order size. She
scanned through the highest and lowest margin producing
products to determine which products to train sales force on.
This clearly depicts how Oracle Supply Chain and Order
Management Analytics help you detect a problem, uncover
the reasons and take corrective actions to address the crisis.
Oracle BI Applications provide pre-built solutions that
dramatically decrease the cost and risk of analytics
implementation. Oracle BI Applications present a robust,
flexible environment that allows end users, not IT developers,
to quickly create their own reports, dashboards, alerts and
indicators through an easy to use web interface. This
technology, combined with our robust back-end infrastructure
and pre-configured analytic applications, allows organizations
of all sizes

Oracle Business Intelligence Applications

2. Order Fulfillment Demo

1

What to say and do

In this demo, well see Oracles Order Fulfillment Dashboard of
the Supply Chain and Order Management Analytics
application. This application delivers deep customer insight
into order fulfillment and inventory data so you can make
better decisions in each stage of the order lifecycle. Oracle
Supply Chain and Order Management Analytics enables you to
assess inventory levels, determine likely product fulfillment
needs before the order has been booked, quickly identify
potential order backlog issues, and stay on top of critical
accounts receivable (A/R) and daily sales outstanding (DSO)
issues. By leveraging actionable and fact-based insights, you
can transform your current Supply Chain and Order
Management processes to improve financial performance and
customer satisfaction.
The Oracle BI Applications (OBI Apps) are complete, pre-built
solutions with ETL, data model, meta-data, reports, and
dashboards.
The pre-built dashboards and reports are delivered via
Business Intelligence Enterprise Editions (OBI EE) 100% thin
client dashboard interface.
Notice that with the OBI Apps, your organizational role
determines your level of data access through security
integrated with the transactional system.

Next Step: Log in as: : esmith/esmith

Well start this demonstration with the Order Fulfillment
dashboard. This dashboard provides Supply Chain Executives,
Order Fulfillment Managers and Sales Operations with holistic
insight into Order Fulfillment and inventory performance of
the organization through actionable analytics on Orders,
Backlogs, Shipping Performance, inventory balances, Invoicing,
Sales Cycle and Exceptions.

Screen Shot

Oracle Business Intelligence Applications

What to say and do

As she logs in, Eileen Smith sees the Overview page of the
Order Fulfillment dashboard. She sees data for all sales
organizations in Vision.
When navigating the Order Management dashboard This page
contains the key metrics and reports that give her a complete
summary of what is happening with Order Fulfillment process,
including Financial Backlog, Operational Backlog, Delinquent
Backlog, and Invoicing, etc.
Eileens primary concern is her firms ability to fulfill orders
and to achieve a timely recognition of sales revenue. She
starts carefully analyzing various measures that reveal the
customer order fulfillment and revenue recognition
performance for this organization.
Upon close scrutiny of On Time Shipping Trend report, she
finds that this quarters on time shipping performance is
barely over 90%, below the usual 100%. This is further
validated by the existence of late shipments in Q1 and Q2 of
2009, as depicted in Late Shipping Trend report.

That explains the increase in Order to Ship Days lag from 15

days to over 50 days in the last 4 quarters, as witnessed in the
Order to Invoice Cycle Times Trend report. As revealed in the
Backlog Trends report, the Operational backlog has gone up to
$3 millions and $7 millions in Q1 and Q2 of 2009 from less
than a million USD earlier. Similarly, the Financial backlog has
gone up to $1.5 millions in Q1 of 2009 from about half a
million USD previously. She immediately realizes that there is
demand for products but they are unable to ship the product
on time.
She clicks on the guided navigation link Order and Invoice
Amount (Exceptions) below the Late Shipping Trend report to
look at products contributing to backlogs.

10

Screen Shot

Oracle Business Intelligence Applications

What to say and do

In the Order and Invoice Revenue by Product report, Eileen
can see that Envoy Deluxe Laptop and Envoy Standard Laptop
products contribute the largest gaps of $3.2 millions and $2.4
millions respectively, between order and invoice revenue. She
notices that Envoy Ruggedized Laptop and Desktop Dual Core
products also contribute significantly over a million USD to the
difference between order and invoice revenue. (Click Return
to go back to the page)
She then decides to look at the products that have the Highest
Fulfillment Lag. She navigates back to Overview page of Order
Fulfillment dashboard and clicks on the Fulfillment tab.

She scans the page to see the vital measures of order

fulfillment performance. She notices that the Ship On time
Quantity has been going down and Ship Late Quantity has
been going up in Q1 and Q2 of 2009, as depicted in Shipping
Performance Trend.
Then she takes a peek at the Top 10 Products with Highest
Fulfillment Lag report and immediately notices that among
these 10 are also the Envoy Standard Laptop and Envoy
Ruggedized Laptop that she previously noted down in the
Order and Invoice Amount (Exceptions). These are the same
set of products that contribute the most towards the gap in
order and invoice revenue. (The Envoy Deluxe Laptop,
although not in the top 10, also has a high fulfillment lag of
over 50 days as you can see by selecting this product in the
Product Name filter). If you filter on Envoy Deluxe Laptop,
use the browser back button to return to viewing all top 10
products and continue with the demo.
She takes note of these 10 products with longest Order To
Ship Days Lag for her subsequent discussion with VP of supply
chain to highlight order fulfillment issues with these products.

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Screen Shot

Oracle Business Intelligence Applications

What to say and do

In this same page she also observes that the top ten revenuecontributing customers like Infinity Brands, New York
Electronics, etc with total order value over $13 millions have
significant Order To Ship Days Lag of over 30 days each.
In conjunction with order fulfillment issues on this page, she is
now interested in knowing the total operational backlog.
She clicks on the Backlog page and navigates to the Backlog
page (Click on the Backlog tab).

*Optional step before going to the Backlog page: Notice how

easy it is to drill down into details. Click any customer name in
the Top Revenue Contributing Customers with Fulfillment
Time report and youll arrive to a page showing the activity
for that customer, including number of orders per quarter,
total order per quarter and a list of all order and invoices for
the selected period of time. When you are done showing this
report you can click the browser back button to come back to
the Fulfillment page to continue with the demo+

In the Backlog page Eileen takes a look at the vital measures

of sales orders backlog like Current Backlog and Inventory,
Current Backlog by Location, Backlog Trend and Current
Blocked, Delinquent and Unscheduled Backlog report.
She takes a peek at the Current Backlog and Inventory report
and immediately notices the operational backlog as well as
physical inventory available to meet the demand.
Upon close scrutiny she finds that Envoy Deluxe Laptop and
Envoy Standard Laptop products that she had noted earlier
(Which contributed to significant gaps between order and
invoice revenue because they had significant fulfillment lag),
have a considerable gap between demand and supply. For
example, Envoy Deluxe Laptop has only 254 units available
against a demand of 2,232 units. Similarly, Envoy Standard
Laptop has only 654 units available against a demand of 2,418
units. In Contrast, Envoy Ruggedized Custom Laptop has 2,000
units available against a demand of only 271 units. Clearly,
there is a mismatch in the production and supply strategy with
regard to demand. Why are we producing so much of the
Envoy Ruggedized Custom Laptop that the market is not
currently demanding? She ponders gracefully.

12

Screen Shot

Oracle Business Intelligence Applications

10

What to say and do

She is interested in Current Backlog by Location report.
Looking at the largest backlog at Galway location (Click the bar
for Galway in the Current Backlog by Location report) she
decides to look at the table view and looks at the total
operational backlog. Note that the same mismatch between
inventory and backlog happens at this location.
(Click Return to go back to the page)

She looks pensive realizing her firms operational inability to

fulfill customer demand worth over 7 million dollars.
(In Backlog Trends report. hover over Operational Backlog
Amount for 2009 Q2)
She decides to hammer out this issue of the alignment of
production schedules against customer demand with the VP of
supply chain.

13

Screen Shot

Oracle Business Intelligence Applications

What to say and do

11

Screen Shot

Summary:
What you have seen today is a demonstration of how Oracle
Order Fulfillment Analytics can enable organizations to make
better and timely decisions by delivering insight driven
analytics to the enterprise.
We witnessed how Eileen Smith, VP of Sales Operations,
detected the growing backlogs and went on to analyze the
products that contributed the most towards gap in order and
invoice revenue. She then examined the products that have a
significant fulfillment lag and, not surprisingly, finds many of
the same products that she had noted earlier. She scans
through the backlog and available inventory for products and
realizes that most of the products she had noted down dont
have sufficient inventory to address the backlogs they have.
She is able to then decode on working with the VP of Supply
Chain on a coherent Inventory Management strategy that
aligns with demand for products. This clearly depicts how
Oracle Supply Chain and Order Management Analytics help
you detect a problem, uncover the reasons and take corrective
actions to address the crisis.
Oracle BI Applications provide pre-built solutions that
dramatically decrease the cost and risk of analytics
implementation. Oracle BI Applications present a robust,
flexible environment that allows end users, not IT developers,
to quickly create their own reports, dashboards, alerts and
indicators through an easy to use web interface. This
technology, combined with our robust back-end infrastructure
and pre-configured analytic applications, allows organizations
of all sizes to rapidly implement analytics solutions to meet
their current needs, while at the same time providing a
scalable infrastructure that can adapt to their needs in the
future.

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