In which process does the system automatically select the source of supply, reserve supply until fulfillment and ship to the customer?

The Back-to-Back process is an end-to-end fulfillment flow where a customer's sales order directly triggers the creation of a supply order (such as a purchase order, work order, or transfer order). Oracle's supply chain orchestration automatically selects the best supply source based on predefined rules. The incoming supply is then logically reserved against the specific sales order. Once the supply is received into inventory, the system orchestrates the final shipment to the customer. This entire automated process of sourcing, reserving, and shipping is the core of Back-to-Back fulfillment.

A. Consigned Inventory: This refers to a supplier-owned inventory model where goods are stored at your site, and ownership transfers only upon consumption, not a specific fulfillment process tied to a sales order.

B. Internal Material Transfer: This process moves inventory between a company's own organizations or subinventories. It is an internal logistics function, not a customer fulfillment flow triggered by a sales order.

C. Drop Shipment: In a drop shipment, the supplier ships the goods directly to the end customer. Your company never takes physical possession of the inventory, which contradicts the described flow.

1. Oracle Fusion Cloud SCM

Implementing Order Management (Release 24B)

Chapter: Back-to-Back Fulfillment

Section: Overview of Back-to-Back Fulfillment.

This document states

"A back-to-back order is a sales order that initiates a supply creation process to fulfill the order. The supply is reserved for the sales order until you ship it." It further explains that the orchestration process automatically creates and links the supply document to the sales order.

2. Oracle Fusion Cloud SCM

Using Order Management (Release 24B)

Chapter: Drop Ship

Section: Overview of Drop Ship.

This source clarifies the Drop Ship process: "In a drop ship flow

you send the order information to a supplier. The supplier then ships the goods directly to your customer." This highlights the key difference from the back-to-back flow where you receive and ship the goods.

3. Oracle Fusion Cloud SCM

Using Inventory Management (Release 24B)

Chapter: Manage Consigned Inventory

Section: Consigned Inventory from a Supplier.

This reference defines consigned inventory: "With consigned inventory

your supplier places their inventory at your site... The supplier retains ownership of the inventory until you consume it." This confirms it is an inventory ownership strategy

not a fulfillment process.

4. Oracle Fusion Cloud SCM

Using Inventory Management (Release 24B)

Chapter: Manage Internal Material Transfers

Section: Overview of Internal Material Transfers.

This document describes the process as moving material "between two subinventories in the same inventory organization" or "between two different inventory organizations." This defines it as a purely internal stock movement.