Effective supply chain management is crucial for maintaining a competitive edge. Oracle Fusion Cloud Supply Chain Planning offers robust tools to optimize supply chain operations, allowing organizations to address challenges efficiently. Let’s explore the benefits of using constrained planning within Oracle’s system and how it can transform your supply chain strategy.

WATCH THE FULL DEMO | CONSTRAINED VS UNCONSTRAINED PLANNING

Oracle Demand and Supply Chain Planning is designed to provide supply planners with a comprehensive view of their operations. By comparing unconstrained and constrained plans, planners can identify potential risks and make informed decisions to mitigate them. In this demo, we follow the journey of Gideon Larkin, a supply planner, as he navigates through Oracle’s platform to optimize his supply plan.

Upon logging into the system, the planner’s dashboard is segmented into two key areas: info tiles at the top and detailed analysis tools below. The info tiles provide a snapshot of critical metrics such as revenue, margins, and demand at risk. These metrics are visually represented with conditional formatting—green indicates strong performance, while yellow suggests areas for improvement.

Below the info tiles, various graphs and tables offer a more granular look at these metrics. For instance, revenue is broken down by product category over time, displayed in a stack bar chart. This allows the planner to see not only the total revenue but also the contribution of each product category to that total.

One of the key metrics tracked in Oracle’s planning tool is demand at risk. This measure indicates which demands might not be met due to supply constraints. By clicking on the demand at risk info tile, the planner can access a heat map and an exception summary.

The heat map provides a dual view—revenue and demand at risk. The size of the box represents revenue, while the color intensity indicates the level of demand at risk. This visual tool helps planners quickly identify areas that require immediate attention. For instance, larger, darker blue boxes signal significant issues that could impact revenue if not addressed.

On the right side of the screen, the exception summary lists specific issues causing the demand at risk, such as lead times, resource constraints, or supplier capacity. By drilling down into these exceptions, the planner can pinpoint the root cause of the problem and take corrective action.

The real power of Oracle Fusion Cloud Supply Chain planning tool is showcased when comparing unconstrained and constrained plans. In an unconstrained plan, the system doesn’t account for limitations in resources or capacity, leading to a higher demand at risk. For example, an unconstrained plan might show a demand at risk of over 300,000 units.

Switching to a constrained plan, however, significantly reduces this risk—sometimes by an order of magnitude. In the demo, the constrained plan brought the demand at risk down to just 34,000 units. This dramatic improvement is achieved by using alternate resources, substitute components, and alternate suppliers to meet demands more effectively.

Resource shortages are a common challenge in supply chain planning. In the demo, the planner identifies a resource overload in the CTMACH1 machine, which is operating at 139% of its capacity. By switching to a constrained plan, the planner redistributes the load to an alternate machine, CTMACH2, reducing the utilization of CTMACH1 to under 100%.

This shift not only alleviates the overload but also ensures that the demand at risk is minimized. The constrained plan effectively balances the workload across available resources, demonstrating the value of flexibility in supply chain management.

Even with a constrained plan, some demands may still be at risk. The demo concludes by exploring the demand fulfillment feature, where the planner addresses the remaining at-risk demands. By adding resource availability, the planner improves the fulfillment rate from 90% to 100%, ensuring that all demands are met.

Finally, the demo touches on Global Order Promising (GOP), a tool that allows planners to check the feasibility of meeting new demands before they are entered into the system. By simulating an order and checking availability, the GOP tool confirms whether the demand can be fulfilled based on current supply and resource capacity.

Oracle Fusion Cloud Supply Chain Planning, with its powerful constrained planning capabilities, provides supply planners with the tools they need to optimize operations and reduce risks. By leveraging alternate resources and making data-driven decisions, organizations can ensure a more resilient and responsive supply chain. Whether you’re dealing with resource shortages or managing new orders, Oracle’s platform offers the insights necessary to maintain smooth and efficient operations.