for the

complete solution.

Explanation:

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.

for the

complete solution.

Explanation:

Back-to-Back Fulfillment: Detailed Simulation in Oracle Cloud

Introduction

Back-to-back (B2B) fulfillment is a process where supply is created only after a sales order is placed.

The supply is specifically reserved for that order and remains linked until fulfillment is completed.

Unlike regular inventory processes, back-to-back fulfillment ensures that supply is directly tied to a

customer demand, optimizing inventory management while maintaining customer satisfaction.

Key Oracle Fusion Cloud Applications Involved

Back-to-back fulfillment integrates multiple Oracle Fusion Cloud applications, including:

Oracle Order Management (for sales order processing)

Oracle Procurement (for external supply sourcing)

Oracle Manufacturing (for in-house production)

Oracle Inventory Management (for warehouse operations and fulfillment)

Oracle Supply Chain Orchestration (for coordinating supply processes)

Oracle Shipping Execution (for shipping to customers)

Step-by-Step Back-to-Back Fulfillment Simulation

Step 1: Creation of a Customer Sales Order (Source of Demand)

A customer places an order for a product that is not available in stock.

The sales order is created in Oracle Order Management.

The system checks inventory availability in Oracle Inventory Cloud.

Since stock is unavailable, the Supply Chain Orchestration (SCO) module triggers a supply request.

The system determines the best supply source based on sourcing rules (Buy, Make, Transfer, or On-

Hand Reservation).

The sales order line is marked for back-to-back fulfillment, and a supply order is generated.

✅ System Action: The system reserves the sales order and waits for supply to be created.

Step 2: Creation and Fulfillment of Supply (Source of Supply to Warehouse)

Once the supply order is created, the system initiates one of the following supply methods:

Option 1: Buy (Procurement from Supplier)

The system generates a Purchase Requisition in Oracle Procurement Cloud.

The requisition is converted into a Purchase Order (PO) and sent to an external supplier.

The supplier fulfills the order and ships the goods to the fulfillment warehouse.

The warehouse receives the items using Oracle Receiving.

Option 2: Make (Manufacturing in-house or contract manufacturing)

The system generates a Work Order in Oracle Manufacturing Cloud.

The work order is scheduled, and production starts.

Once manufacturing is complete, the finished goods are moved to inventory.

Option 3: Transfer (Move from another warehouse or distribution center)

The system creates a Transfer Order in Oracle Inventory Cloud.

Stock is transferred from a different warehouse or location.

Once received, inventory is updated in the fulfillment warehouse.

Option 4: On-Hand (Reserve Existing Inventory)

If stock is available in the fulfillment warehouse, the system directly reserves the items.

No additional supply request is needed.

✅ System Action: The system updates the sales order and marks it ready for fulfillment once supply

is received.

Step 3: Shipment of Sales Order to the Customer

The order is released for picking in Oracle Inventory Cloud.

The picking process begins, and items are packed for shipping.

The shipping team processes the order using Oracle Shipping Execution.

A shipment confirmation is generated, and the order is shipped to the customer.

An invoice is created in Oracle Receivables.

The system marks the sales order as fulfilled and closed.

✅ Final Action: The customer receives the order, and the back-to-back fulfillment process is

completed.

Key Benefits of Back-to-Back Fulfillment in Oracle Cloud

✔ Optimized Inventory Management – Stock is acquired only when needed, reducing carrying costs.

✔ Improved Order Fulfillment Efficiency – Automated supply chain orchestration ensures smooth

operations.

✔ Enhanced Customer Satisfaction – Orders are processed quickly, reducing delays and backorders.

✔ Integrated Supply Chain Execution – Oracle Fusion applications work together seamlessly.

✔ Flexibility in Sourcing – Businesses can choose procurement, manufacturing, transfers, or

reservations based on demand.

for the

complete solution.

Explanation:

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.

for the

complete solution.

Explanation:

Set Up Back-to-Back Transfer Flow in Oracle Cloud

The Back-to-Back (B2B) Transfer Flow allows organizations to move inventory from one warehouse

(source) to another warehouse (destination) when stock is unavailable in the fulfillment location.

This setup ensures that Oracle Global Order Promising (GOP) can automatically determine the best

supply source and execute the transfer process efficiently.

1. Prerequisites: Enable Back-to-Back for Items

Before setting up the transfer flow, ensure that the item is Back-to-Back enabled in Oracle Product

Information Management (PIM):

Navigate to Oracle Product Information Management (PIM).

Search for the item you want to enable for back-to-back fulfillment.

In the item definition, enable the "Back-to-Back Enabled" attribute.

Save and publish the item updates.

✅ This ensures that the item can participate in the B2B fulfillment process.

2. Configure Global Order Promising (GOP) for Back-to-Back Transfer Flow

In Oracle Global Order Promising (GOP), configure the system to determine the best transfer source

when fulfilling back-to-back orders.

Step 1: Create a Global Sourcing Rule (Type: Transfer From)

Navigate to Oracle Global Order Promising (GOP).

Create a Global Sourcing Rule with the following details:

Type: "Transfer From"

Source Organization: Warehouse 1 (Requesting warehouse or fulfillment location).

✅ This rule ensures that items are sourced from Warehouse 1 whenever stock is available.

Step 2: Create a Local Sourcing Rule (Type: Transfer From)

Create a Local Sourcing Rule for Warehouse 1 as follows:

Type: "Transfer From"

Source Organization: Warehouse 2 (Stock-holding warehouse).

✅ This rule ensures that if Warehouse 1 does not have stock, the system transfers items from

Warehouse 2.

Step 3: Set Up an ATP Rule for Availability Check

Create an ATP Rule (Available-to-Promise Rule) with the following parameters:

Promising Mode: "Supply Chain Availability Search".

Enable attributes for supply chain availability search based on business needs.

Configure ATP search to consider on-hand stock, in-transit inventory, components, and resources if

needed.

✅ This ensures that GOP can evaluate stock levels across multiple locations.

Step 4: Assign ATP Rule to Organizations

Assign the ATP Rule to the appropriate organizations.

Ensure that the rule applies to Warehouse 1 and Warehouse 2 based on their roles in the sourcing

process.

✅ This enables availability checking when processing sales orders.

Step 5: Assign Sourcing Rules to Organizations

Assign the Global Sourcing Rule to the enterprise-wide sourcing assignment.

Assign the Local Sourcing Rule to Warehouse 1, specifying Warehouse 2 as the sourcing location.

Ensure that the assignment level for the global sourcing rule does not include a specific organization

(it should apply at a broader level).

✅ This ensures that Oracle GOP prioritizes sourcing stock from Warehouse 1 first and transfers from

Warehouse 2 if needed.

Step 6: Refresh and Restart Order Promising Server

Once the sourcing rules and ATP configurations are in place:

Refresh Oracle Global Order Promising (GOP) Rules.

Restart the Order Promising Server to apply sourcing and ATP rule changes.

✅ This step ensures that all updates take effect and are used in future order promising decisions.

3. Expected Behavior After Setup

If Warehouse 1 has stock → GOP reserves inventory and processes the sales order immediately.

If Warehouse 1 does not have stock → GOP triggers a transfer order to move stock from Warehouse 2

to Warehouse 1.

Once the transfer order is fulfilled and received, the sales order is shipped to the customer.

✅ This ensures automated order fulfillment with minimal manual intervention.

4. Benefits of Back-to-Back Transfer Flow in Oracle Cloud

✔ Optimized Inventory Utilization – Uses stock efficiently across multiple warehouses.

✔ Automated Stock Transfers – Eliminates manual intervention by automatically moving stock when

needed.

✔ Reduced Procurement Costs – Moves existing inventory instead of purchasing new stock.

✔ Faster Order Fulfillment – Reduces lead times by sourcing from internal stock before

procurement.

✔ Seamless Oracle Cloud Integration – Works across Oracle Order Management, Inventory, GOP, and

Supply Chain Orchestration.

Thank you for your visit.

The most precise method to fulfill the requirement for a specific item is to configure its individual attributes. The "Overpicking Enabled" attribute, found in the item's specifications within Product Information Management, allows users to pick a quantity greater than the requested quantity for that particular item during the pick confirmation process. This item-level control ensures that the overpicking capability is restricted only to "Item A" without affecting other items in the inventory organization, directly addressing the specific scenario.

A. Allow overpick in inventory organization parameters: This is a broader setting that enables overpicking for all eligible items within the entire inventory organization, not just for the specific "Item A" as required.

B. By default, confirm pick slip allows you to pick more than the requested quantity for lot-controlled items: This is incorrect. Overpicking is not a default system behavior for any item type; it must be explicitly enabled through configuration at either the item or organization level.

1. Oracle Fusion Cloud SCM

Using Inventory Management

Chapter: Pick Confirmation

Section: Overpicking:

"You can overpick a movement request for a specific item if the Overpicking Enabled item attribute is set to Yes. You can set this attribute in the Product Information Management work area." This directly supports option C as the correct

item-specific method.

2. Oracle Fusion Cloud SCM

Implementing Manufacturing and Supply Chain Materials Management

Chapter: Inventory Management

Section: Manage Inventory Organization Parameters:

"On the Manage Inventory Organization Parameters page

you can select the Allow overpicking for movement requests check box to enable overpicking for the entire organization." This reference confirms the existence of the organization-level setting (Option A) but highlights that it applies to the entire organization

making it less precise than Option C for this scenario.

3. Oracle Fusion Cloud SCM

Using Product Master Data Management

Chapter: Items

Section: Item Specification Attributes: Inventory:

This section details the "Overpicking Enabled" attribute. It states

"Controls whether you can overpick the item for a movement request. Select Yes or No. The default value is No." This confirms that overpicking is not a default behavior (disproving Option B) and is controlled at the item level (supporting Option C).