SHIPPING CONCEPTS

Objectives
After studying this presentation, you should be able
to do the following:
Understand Shipping Process in industry
Understand Shipping Terms
Understand Shipping execution in Oracle
Applications
Shipping Execution Change Orders
Trips Stops
Create LPNs/ Containers
DIRECT SHIPPING
Put Material away from the Manufacturing Area
Bring the same material from storage area for
packing and loading to trucks
E.g Maruti , Flex Industries


SHIPPING WITH PICK RELEASE
Direct Shipping Scenario not applicable in all
scenarios
What Happens in the case of a spare parts
warehouse or where the inventory is kept for days
before shipping , In these cases the pick release is
required before the material can be shipped
WHAT IS PICK RELEASE ?
System to select the correct material to allocate
for a particular sales order on the basis of user
defined rules.
The assumption that forms a pick release is that
the material is on hand in a warehouse storage
location when the warehouse is ready to begin
processing for shipment.
Think of spare parts warehouse to understand the
concept of pick release.
In case of industries which make material which
are make to order , the material is already
allocated to a customer and hence redundant.
SHIPPING STEPS
Release Sales order (Look for Parameters)
Pick Release
Move Order - -Allocate/Detailing
Move Order - Transact
Assign ship line to delivery
Assign delivery to a trip / LPN
Ship Confirm
Backorder
Close Trips Optional
Release Sales Order
Releases orders from manufacturing to shipping
warehouse ; why ??
Order is interfaced to Shipping
Order becomes available for Shipping
Pick Release
Pick release Please refer pick release rules
Shipping Parameters
Pick release creates move orders , One move
order is created per pick release batch per
organization.
Move Orders will use the Picking Rules set up in
Oracle Inventory to locate the material required to
fulfill the Move Order Line. Together with item sub
inventory defaults (required if the staging sub
inventory is locator controlled), the Picking Rules
suggest the staging transfer transaction lines with
appropriate source information that will be
required to obtain enough material in the staging
You can now determine the number of pick release
steps the system will prompt them to employ in
order to move material from Pick Release to Ship
Confirmation.
Move orders
A Move Order is a request for a sub inventory
transfer or account issue
Pick Wave Move Orders are pre-approved requests
for sub inventory transfers to bring material from
its source locations in the warehouse to a staging
Sub inventory.

Move Order Line Allocating
In order to release the Move Order lines created at
Pick Release to the warehouse and print pick slips
the lines must be allocated. The process by which
the Picking Engine generates transaction line
suggestions is called Allocating
Allocating process for a Pick Wave Move Order
Line also creates a high level (organization level)
Reservation for the item(s) if no Reservations
previously existed.
Choose to do allocation immediately after the
Move Order Lines are created or to postpone this
step until a later point in time.
Move Order Line Allocating

Allocating the order lines immediately after they
are created is called auto-allocation.
Postponing the allocation process is referred to as
manual-allocation.
You can set up a default detailing mode in the
Shipping Execution organization parameters. This
default can be overridden at each Pick Release.
Pick Confirmation
The Move Order Line Details (transaction lines)
created by the detailing process must be
transacted to confirm the material drop-off in
staging. This process is called Pick Confirmation
Execute the sub inventory transfer that moves the
material from its source location in the warehouse
to the Staging location
Transfers the high level Reservation to a detailed
Reservation (including lots, sub inventory and
locators) in the Staging location.
Report a missing quantity or change the
transaction line if the picker chose to use material
from a different lot, serial, locator or sub
inventory.
Pick Confirmation
The Pick Confirm transactions can occur
immediately after the lines are detailed. This
option is called auto pick confirm. You can set
up a default Pick Confirm policy in the Inventory
organization parameters. This default can be
overridden at each Pick Release.
Material transacted only to the staging sub
inventory and reserved
AND CAN STILL BE CANCELLED AND
TRANSACTED BACK TO THE INVENTORY
Staging Locations
The destination sub inventory on the Pick Wave Move
Order is the staging Location into which the picked
material should be deposited.
Each organization should designate at least one staging
sub inventory. Each batch created at picks Release will
have the same destination staging sub inventory.
The default staging sub inventory and locator to be
used for all Pick Wave Move Orders are Specified
through Oracle Shipping Executions Shipping
Parameters form..
Ship Confirm
Material picking process ends when the items are ship
confirmed out of Inventory.
Ship confirming the items removes the existing
Reservations and performs the sales order issue
transaction.
You may choose to ship confirm only part of the Sales
Order quantity. In this case, the balance of the sales
order may be backordered. Backordering at Ship
Confirm automatically splits the Sales Order into two
lines.
The first line represents the shipped quantity
The second line represents the backordered
quantity.
Release Statuses
Not Ready for Release
This status occurs when a delivery line is manually
imported into Shipping Execution using the Import
Delivery Line program prior to the line reaching the
shipping workflow in OM.
Ready for Release
This status occurs when an order line has reached the
Shipping Workflow activity in Order Management
meaning the line has been booked, scheduled and
imported into Shipping Execution.
Submitted to Warehouse
This status is displayed when Pick Release is run. The
Pick Release process creates a Move Order Header &
Mover Order Line in Inventory. This is a common status
for users that perform a two-step pick release process.
This status indicates that inventory allocation has
occurred however pick confirmation has not yet taken
place.
Release Statuses
Backordered
The status of Backordered is assigned to a line under
the following circumstances.
1) The Pick Release process attempted to allocate inventory
to the line and all or a partial quantity of the item was not
available. In this case the system automatically
backorders the discrepant quantity.
2) At Ship confirm the user enters a shipped quantity for an
item that is less than the original requested quantity.
3) The user Backorders and entire delivery.
4) The user records a missing quantity by transferring a
reservation to cycle count.
Release Statuses
Staged
The line receives the status of staged once inventory
has been allocated and pick
Confirmed
The allocation step and the pick confirmation step
can be done manually or automatically based on
business needs. This is determined by a set up step
in Shipping Parameters.
Shipped
The Shipped status indicated that the delivery that the
line is assigned to has been set to in transit and that
the OM and Inventory interfaces have run.


Release Statuses
Not Applicable
The Not Applicable status applies to non-shippable
order lines. An example would be lines that are
invoiced but not physically shipped. Items such as
service and warranty would have statuses of Not
Applicable
Cancelled
The cancelled status applies when the order line has
been cancelled in OM.

Order Line Changes Management in
Shipping
Order changes are allowed as long as orders are not
booked or interfaced with Oracle Shipping Execution.
However, once orders are interfaced in Shipping and
Pick Released there are limitations to changes allowed.
The objectives of the Line Change Management design
is to allow most of the Sales Order changes up until the
Delivery lines are Staged or Ship Confirmed.
Only change requests entered after the Sales Order
Lines are Booked and interfaced with Shipping
Execution (Shipping) are validated by the change logic
in Shipping. Order Attribute changes propagate in
Shipping based on the Shipping change logic.
Shortcuts within Shipping Execution
Many steps in shipping are routine and repetitive
In such scenario , it makes sense to automate most of
the processes involved
Use Pick Release Rule
Use Ship Confirm rules
Shortcuts within Shipping Execution
Release Sales Orders SRS
The Release Sales Orders SRS allows you to pre-
determine the picking criteria used when the system
considers lines eligible for pick release. Other criteria in
this concurrent program determine the operations
performed on the order lines submitted for release, such
as, allocation,pick confirm, packing, appending
deliveries, assigning deliveries, and staging location.
One of the most important features of the Release Sales
Orders SRS is that you can create a moving pick window.
By creating a picking window, you setup the system to
consider orders for pick release within +/- x number of
days of the system date and then schedule the Release
Sales Orders concurrent program to run at intervals that
suit your business needs. The system will then initiate
pick release automatically each day without user
intervention

Shortcuts within Shipping Execution
Auto Pack Deliveries SRS
The Auto-Pack Deliveries SRS allows the system to
perform pack planning on delivery lines assigned to
deliveries.
If you typically pack items into containers, then this
concurrent program can be used to perform this
operation on multiple deliveries on an ad hoc basis or
scheduled to occur automatically.
Shortcuts within Shipping Execution
Process Deliveries SRS
The Process Deliveries SRS serves a dual function, it
allows the system to assign delivery lines to deliveries
and it allows the system to assign deliveries to trips.
One variation on assigning delivery lines to deliveries is
that the program can be setup to first append lines to
existing deliveries, and if no eligible open deliveries
exist, then the system will create a new delivery before
assigning the delivery line.
The benefit of this concurrent program is that it allows
the system to automatically group matching delivery
lines into deliveries, and matching deliveries into trips,
thereby eliminating the manual effort and creating fewer
deliveries and trips in the system. By having fewer
shipping entities to manage, system performance stays
efficient.
Shortcuts within Shipping Execution
Ship Confirm Deliveries SRS
The Ship Confirm Deliveries SRS allows the system to
select deliveries whose assigned delivery lines are all
staged. The system then ship confirms the deliveries.
You can schedule this concurrent program so that the
process is initiated automatically.
The benefit of this concurrent program is that you can
ship confirm many deliveries simultaneously, either as a
manual or automatic process, which will help eliminate
processing steps.
You can also prevent individual deliveries from being
ship confirmed during the Ship Confirm Deliveries
process. In the Shipping Transactions form, query the
delivery that you want to exclude from being selected by
the Ship Confirm Deliveries SRS and uncheck the Enable
Auto Ship Confirm field.

Shortcuts within Shipping Execution
Use Pick and Ship Action
If your shipping process is simple, then you can take
advantage of the Action Pick and Ship. This feature is
selected from the Action menu within the Shipping
Transactions form at the delivery line level or delivery
level.
When this action is initiated then the shipping entity is
simultaneously pick released and ship confirmed.
A couple of prerequisites apply before you can use this
feature. A Ship Confirm Rule must be specified in the
Shipping Parameters for the organization and the user
must have the privilege granted for Pick and Pack.

Shortcuts within Shipping Execution
Use Pick , Pack and Ship Action
Pick, Pack, and Ship is a feature very similar to Pick and
Ship, except that it automates another step in the
process. When this action is selected
From the Action menu, then the delivery line(s) is pick
released, systematically packed, and ship confirmed.
A couple of prerequisites for packing to occur are that
the shipping parameter for Auto-pack options must be
selected and that a container-item relationship must be
predefined prior to selecting the action. If no container-
item relationship is defined then the delivery line will be
picked and shipped without packing.
Confirm Rule must be specified in the Shipping
Parameters for the organization, a container-item
relationship must be defined
the user must have the privilege granted for Pick, Pack,
and Ship.

Shortcuts within Shipping Execution
Use Pick , Pack and Ship Action
Pick, Pack, and Ship is a feature very similar to Pick and
Ship, except that it automates another step in the
process. When this action is selected
From the Action menu, then the delivery line(s) is pick
released, systematically packed, and ship confirmed.
A couple of prerequisites for packing to occur are that
the shipping parameter for Auto-pack options must be
selected and that a container-item relationship must be
predefined prior to selecting the action. If no container-
item relationship is defined then the delivery line will be
picked and shipped without packing.
Confirm Rule must be specified in the Shipping
Parameters for the organization, a container-item
relationship must be defined
the user must have the privilege granted for Pick, Pack,
and Ship.