EDI Supply Chain : Market to Order

 

Market to Order

 

• Explain the concepts of the Market to Order business processes.

• Create a customer.

• Create a prospect.

• Create an opportunity.

• Create an activity for an opportunity.

• Create a sales quotation.

• Generate a sales order from a sales quotation.

• Create a price book.

• Create a discount book.

• Create and process a sales contract.

 

What Is Market-To-Order?

Market-To-Order (MTO) is a manufacturing process where a customer places an individual order with a company. The company produces the item to meet the customer's specifications. This production system is usually used for custom orders, where a customer may order a product with a unique design, size, color, or other features.

• MTO differs from the mass production process, where a company produces a standard product to the exact specifications. MTO can quickly fill orders for multiple customers.
• The MTO system treats each order as an individual project and must be created from scratch. It can be time-consuming and expensive. But it allows companies to provide customers with products tailored to their exact specifications.
• The MTO system can be used in various industries. These include manufacturing, electronics, automotive, and textiles.
• For example, luxury car manufacturers often use Market-To-Order systems to allow customers to customize their vehicles. These systems enable customers to customize their vehicles with different colors, trim levels, and engine options.
• Other companies may offer custom-made furniture or clothing. These can be made-to-order according to each customer's specifications.
• Companies that use the MTO approach tend to benefit from lower inventory costs. They also tend to have higher customer satisfaction and higher profits.

The MTO system offers many advantages for businesses, such as quickly adapting to changing customer needs and tastes. It also allows companies to reduce inventory costs since they don’t have to keep large quantities of finished goods on hand.

Additionally, MTO systems help businesses improve customer service. MTO systems enable companies to improve customer service by providing personalized products and services. This process can be costly and time-consuming.

Market-To-Order Examples

Market-To-Order (MTO) is a manufacturing process that explicitly produces goods at the customer's request. It is the opposite of a make-to-stock (MTS) process, which produces goods even without an existing customer order.

As such, Market-To-Order processes are rare. It is due to the added complexity of manufacturing for specific requests. However, it is still an essential and valid production process for certain types of products. Here are some examples of Market-To-Order processes.

Customized Clothing: Customized clothing is an excellent example of an MTO process. A customer may request a specific type of clothing with particular measurements, materials, and colors.

Much like furniture, the entire process must be adjusted to meet the customer’s needs. The process may involve selecting suitable materials and designing the clothing. Then having it sewn according to the customer’s specifications.

Food Service: Market-To-Order is also commonly used in restaurants and other food service establishments. This allows customers to customize their orders by adding or removing certain ingredients. This system ensures that customers always get the exact meal they want.

Specialty Parts: Specialty parts are often made-to-order as a manufacturer does not stock them. These parts are typically produced to meet a specific customer’s needs and may involve a particular type of material and design.

For example, a customer may order a custom-made part for a car engine, which must be produced according to the customer’s specifications.

Market-To-Order processes can be complex and require significant customization. However, they are still essential and valid production processes for certain types of products. The examples above illustrate some of the most common types of MTO production processes.

Market-To-Order Planning Process

The Market-To-Order Planning process is ideal for businesses that produce customized goods and services. It allows them to tailor their offerings to individual customers. The main steps in the Market-To-Order Planning Process are:

1. Define Customer Requirements

The first step in the Market-To-Order Planning process is to define the customer's requirements. It involves understanding the customer's needs, wants, and expectations and then translating those into an actionable plan.

• It requires close communication between the customer and the production team.
• It ensures that the customer's needs are clearly understood and addressed.
• This step should involve analyzing customer feedback, previous experiences, and other relevant information. It is done to ensure the customer's expectations are met.

2. Develop a Plan

After gathering the customer's requirements, the next step is to develop a plan to meet their needs. It involves creating a timeline, budget, and resources needed to complete the project.

It should include establishing milestones and targets. It will ensure progress is tracked and measurable. It's also essential to account for any potential risks or obstacles during the project.

3. Develop a prototype

The next step is to develop a product prototype, which will be used to test the product's design and performance. This prototype should be tested to ensure it meets the customer's requirements. This step is critical to ensure the product is suitable for the customer's needs.

4. Develop a Production Schedule

The next step is to create a production schedule. It involves determining the order of operations. It includes assigning tasks to team members and setting deadlines. It's essential to ensure that the production schedule is realistic and achievable while considering potential risks or delays.

5. Implement the Plan

It involves ensuring that the plan is followed and that team members are accountable for their tasks. It's also essential to monitor progress and make adjustments as needed.

This step should involve regular communication between team members. It ensures everyone is on the same page and that potential issues are addressed promptly.

6. Monitor and Adjust

It involves regularly checking in with team members to track progress and ensure that the plan is followed. It also involves making adjustments to ensure the project stays on track. This step should involve regular communication between the customer and the production team. It is to provide the customer's needs are met.

7. Create a Delivery Plan

The final step in the Market-To-Order planning process is to create a delivery plan. It involves determining the best way to ship the product to the customer and any associated costs. It's essential to ensure that the delivery plan is cost-effective and efficient.

It is essential to take into account any potential risks or delays. The delivery plan should also include any special instructions or requirements that must be followed to ensure successful delivery.

By following these steps, businesses can ensure that their customers get exactly what they need in a timely and efficient manner.

Why Do Businesses Use the Market-To-Order Strategy?

Businesses use this strategy to manufacture products in response to customer demand instead of producing goods in anticipation of customer demand.

Through Market-To-Order, businesses can better serve their customers. They can provide personalized goods that meet their needs and expectations.

• It eliminates the need to maintain large inventories. It can reduce costs as businesses don't have to pay for storage or warehousing fees.
• It can also help reduce inventory obsolescence risk, as businesses only produce goods when a customer orders.
• With this strategy, businesses can meet the specific needs of their customers by providing personalized goods that meet their exact specifications. It can differentiate them from their competitors and give them a competitive advantage.
• Businesses can reduce production lead times by producing goods when needed. They can also get goods to their customers more quickly.
• It can increase customer satisfaction and loyalty, as customers receive their goods more quickly. Market-To-Order also allows businesses to remain flexible and agile.
• The Market-To-Order strategy is a strategy that is used by businesses to make products. It gives companies a greater degree of control over the production process.
• By controlling the production process, companies can ensure that the products they provide meet their quality standards. They can also ensure that their products are made to their specifications.

By producing goods in response to customer demand, businesses can quickly adjust to changes in the market. They can also meet the changing needs of their customers. It can help companies remain competitive in a rapidly changing environment.

Customization for Market-To-Order Manufacturing

Customization for Market-To-Order manufacturing is customizing a product to meet a customer's unique needs. This process involves altering the design, material, and manufacturing processes to accommodate an individual's or business's specific needs.

Customization for Market-To-Order manufacturing is beneficial to both the customer and the manufacturer. The product is tailored to the customer's specific needs, making it more cost-effective and efficient. For the manufacturer, the process reduces costs by eliminating the need for inventory and the demand for costly mass production.

Design and Material Selection:

The design and material selection process is a critical part of customization for Market-To-Order manufacturing.

• The customer will work with the manufacturer to choose the right design, materials, and manufacturing processes to meet their needs. It often involves working with the customer to create a prototype. Then testing the product to ensure it meets the customer's specifications.
• The manufacturing process is a crucial part of customization for Market-To-Order manufacturing. The manufacturer will use the customer's specifications to choose the right equipment and manufacturing processes.
• It often involves using specialized equipment and processes, such as CNC machining and 3D printing, to produce the product.

Quality control is an integral part of customization for Market-To-Order manufacturing. The manufacturer must ensure the product meets the customer's specifications and is of the highest quality. They may use automated quality control systems to ensure that the product meets the customer's requirements.

Automation for Market-To-Order Manufacturing

Automation for Market-To-Order manufacturing is a process used to automate the production of custom-made products. It is used to ensure that the products are of high quality and are delivered on time.

• Automation for Market-To-Order manufacturing can improve efficiency and reduce costs.
• Automation can also increase the speed of production.
• It helps to reduce human error and provides a level of consistency in the product that would take a lot of work to achieve with manual processes.
• Automation for Market-To-Order manufacturing involves the use of robots and computer-controlled systems.
• These systems are programmed to perform specific tasks such as cutting, welding, and assembly. The robots can work quickly and accurately to create products with the required specifications.

Automation for Market-To-Order manufacturing can be expensive to install and maintain. Additionally, robots may need help completing more complicated tasks like welding.

Automation tools:

ERP Systems: Enterprise resource planning (ERP) systems are one of the most popular automation tools for Market-To-Order manufacturing.

ERP systems are designed to provide a comprehensive view of the entire production process. It involves everything from raw material ordering and inventory tracking to order processing and shipping. ERP systems can integrate with existing business processes. They provide powerful analytics to help manage production operations.

Manufacturing Execution Systems: Manufacturing execution systems (MES) are automated manufacturing process management systems. They are designed to monitor and control the production process in real-time.

MES solutions track and control resources such as machines, materials, and personnel. MES solutions are used to maximize production efficiency. MES systems can automate making-to-order production processes' scheduling, tracking, and management.

Automated Data Collection: Automated data collection is a powerful automation tool for Market-To-Order manufacturing. Automated data collection solutions allow for real-time data capture and analysis of production processes.

It enables manufacturers to track and control all aspects of the production environment. Automated data collection solutions are designed to improve accuracy and reduce errors. They also increase production efficiency.

7 Benefits of Using the Market-To-Order Strategy

Over the past few years, the Market-To-Order (MTO) strategy has become increasingly popular in the manufacturing industry. The Market-To-Order (MTO) strategy can be highly beneficial to an organization. Here are six benefits of using the MTO strategy.

1. Increased Product Variety

Businesses can offer a wider variety of products to meet customer needs by making products to customer orders. This makes it easier for companies to differentiate their products from competitors and attract more customers.

2. Reduced Inventory Costs

Since products are not made in anticipation of customer demand, businesses can reduce inventory costs. They don't need to store large quantities of finished products. It can help companies to save money and improve their bottom line.

3. Improved Cash Flow

Using the Market-To-Order strategy can also help improve a company's cash flow. By only producing goods after an order has been placed, companies can ensure that they are not spending money on producing items that may not be sold. It can help companies maintain a healthy cash flow and ensure they are not investing in unsold inventory.

4. Enhanced Product Quality

By making products to order, businesses can ensure that they meet the customer's exact requirements. It can help improve product quality and increase customer satisfaction.

5. Reduced Wastage

As products are only made when there is a customer order, businesses can reduce waste. They don't need to store large amounts of finished products which may not be sold. It can help reduce the waste associated with producing items that may not be sold.

6. Improved Efficiency

Using the Market-To-Order strategy can also help improve the efficiency of a manufacturing process. Businesses can reduce their lead times by making products to order and meeting customer deadlines easier. Additionally, the Market-To-Order strategy can reduce the time spent on packaging and shipping. The item is produced only after an order is placed.

7. Increased Customer Satisfaction

The Market-To-Order strategy can help increase customer satisfaction by allowing companies to produce goods that meet the exact specifications of the customer's order.

It can result in a better overall customer experience, as customers will receive exactly what they ordered on time. The Market-To-Order strategy can also help companies build a reputation for excellent customer service.

Overall, the Market-To-Order strategy can provide many benefits to companies in the manufacturing industry. These benefits make the Market-To-Order strategy an attractive option for many manufacturers.

Challenges of Market-To-Order Manufacturing

Market-To-Order or MTO manufacturing is a popular production system in modern manufacturing. While this system offers many advantages, there are also some key challenges. These challenges must be addressed to make MTO manufacturing successful. This section will discuss the most common challenges of MTO manufacturing.

1. Extended Lead Times

A significant challenge of MTO manufacturing is that it often takes longer to produce a finished product than it would with a make-to-stock production system.

Each product must be custom-made to meet the customer's exact specifications. It requires more time and resources. As a result, MTO manufacturers must be prepared to quote longer lead times to their customers.

2. Increased Production Complexity

MTO manufacturing is much more complex than other production systems due to its highly customized nature. Each product must be designed and produced according to specific customer requirements.

These can be difficult to manage and track. Manufacturers must also be prepared to troubleshoot any issues that arise during production. These products are often highly specialized.

3. Restricted Production Quantities

MTO production is usually limited to small-batch production, as most customers only require a few items. It can be challenging for manufacturers as their production capacity is limited, and they may need help to meet large orders. Manufacturers must understand their customers' needs and be prepared to meet them accordingly.

4. Limited Automation

Automation is often used to streamline production and reduce costs. But this is not always possible with MTO manufacturing. Due to the highly customized nature of these products, automated manufacturing processes are often only feasible sometimes.

It can be challenging for manufacturers as they must rely on manual processes, which can be time-consuming and costly.

There are some challenges associated with MTO production. Manufacturers must address these challenges to make their operations successful. By understanding the challenges and addressing them appropriately, manufacturers can ensure that their MTO operations are successful.

Market-To-Order vs. Make-to-Stock

When managing a successful supply chain, businesses must consider their production strategies. Two of the most common strategies are Market-To-Order and make-to-stock. Although these strategies may seem similar, they have some distinct differences.

Make-to-Stock: Make-to-stock (MTS) is a production strategy in which goods are manufactured in anticipation of customer demand. MTS is a widely used strategy among manufacturers, as it helps to ensure that customer needs are met on time.

• MTS helps to reduce costs by eliminating the need for companies to maintain large inventories of raw materials, as the items are already produced. It helps to reduce overhead costs, as it removes the need for additional storage and transportation costs.
• MTS helps to increase efficiency by enabling companies to respond quickly to customer orders. It is especially beneficial for companies that operate in fast-paced markets. They need to meet customer needs quickly.
• MTS helps to improve quality by enabling companies to standardize production processes. It ensures that products are consistently produced with the same quality standards.

Difference between MTO and MTS

Production Model: At a high level, Market-To-Order production models are built to meet customer needs. This model is more flexible and allows companies to create custom products based on customer specifications.

In contrast, make-to-stock models are designed to produce and store products that are already in demand. This model is more efficient and cost-effective but less customized than the Market-To-Order model.

Inventory: Market-To-Order production models don't require the company to maintain an inventory of products. It allows the company to save on costs associated with storing and maintaining inventory.

On the other hand, make-to-stock models require the company to maintain an inventory of products. It increases the costs associated with production.

Lead Time: Market-To-Order production models tend to have longer lead times. It is due to the customization involved in creating the product. In comparison, make-to-stock models are more efficient and can have shorter lead times.

Flexibility: Market-To-Order production models are more flexible and can quickly adapt to changing customer needs. In comparison, make-to-stock models are more rigid and cannot accommodate changes as easily.

Cost: Market-To-Order production models tend to be more expensive due to the customization involved. On the other hand, make-to-stock models are more cost-effective. It is due to the efficiency and lower costs associated with maintaining an inventory.

Risk: MTO production strategies have higher risk since there is no guarantee that goods will be sold after production. MTS production strategies have lower risk since goods are produced before customer orders. So there is less chance of them going unsold.

Both Market-To-Order and Make-to-Stock production strategies have their advantages and disadvantages. Understanding their differences is essential to make the right choice for your business. To learn in-depth on this refer to our article on Market-To-Order vs. Make-To-Stock.

Best Practices for Market-To-Order Manufacturing

For Market-To-Order manufacturing to be successful, it is crucial to follow certain best practices. Here are the seven best practices for Market-To-Order manufacturing:

Understand Your Customers' Needs

The first and foremost step in Market-To-Order manufacturing is deeply understanding your customers' needs. It helps to determine the exact specifications that need to be fulfilled to produce the product.

It is also essential to understand the customer's timeline and budget. It ensures that the product can be delivered within the specified deadline.

Establish Clear Communication

Clear communication between the customer and the company is essential for Market-To-Order manufacturing. It will ensure that the customer is well-informed about the process and that their expectations are met. It is also crucial to ensure that the customer is regularly updated about the product's progress.

Use Technology to Track the Manufacturing Process

Technology can be used to track the progress of the manufacturing process. It will help ensure the product is delivered on time and to the expected standards. It will also help identify potential issues and make necessary changes to the process if required.

Adhere to Quality Standards

Quality should be given utmost importance during Market-To-Order manufacturing. It is essential to ensure that the product is of the highest quality and meets the customer's specifications. It will help to maintain customer satisfaction and trust in the company.

Establish Flexible Production Schedules

Establishing flexible production schedules is critical to ensure that the product can be delivered on time. It is vital to adjust quickly to changes in customer specifications and timelines. It will help ensure that the product is delivered per the customer's expectations.

Adopt Lean Manufacturing

Lean manufacturing is a process that helps to optimize the manufacturing process and reduce waste. It will help ensure the product is made efficiently and with minimal wastage. It will also help to reduce costs and ensure that the product is delivered on time and within budget.

Maintain Inventory

Maintaining an inventory of the components and materials required for the product is essential. It will help to ensure that there is no shortage of supplies and that the product can be delivered on time. It is also crucial to have a backup supply of components in case of any delays in the manufacturing process.

Following the above best practices will help to ensure that the product is made efficiently and delivered on time. It will also help to maintain quality standards and customer satisfaction.

Industry Trends in Market-To-Order Manufacturing

Market-To-Order manufacturing is an industry that has been rapidly evolving over the past few years, with new trends emerging every day. As the industry continues to grow and develop, it's crucial to stay up to date on the latest trends. It is so that businesses can stay competitive and profitable. Here are the most important industry trends in Market-To-Order manufacturing:

1. Automation

Automation is one of the most prominent trends in Market-To-Order manufacturing. Automation has the potential to increase efficiency, reduce costs, and improve quality. Automation can be used to streamline processes, reduce manual labor, and increase the speed of production.

It can result in higher output and faster delivery times. Automation can also reduce energy consumption and the number of materials used, resulting in cost savings. Automation can also help reduce waste, improve safety, and increase productivity.

2. Additive Manufacturing

Additive Manufacturing also known as 3D printing, is a form of additive manufacturing. It is becoming increasingly popular in the manufacturing sector. Additive manufacturing has the potential to revolutionize the industry. Its ability to produce complex parts quickly and cost-effectively.

Additive manufacturing offers the ability to produce parts with complex geometries and unique features. It would otherwise be impossible to achieve with traditional manufacturing methods. This technology can also reduce lead times and eliminate the need for tooling, resulting in significant cost savings.

3. Cloud Computing

Cloud computing is becoming an increasingly important trend in Market-To-Order manufacturing. Cloud computing offers manufacturers the ability to access and store data from anywhere.

It can improve collaboration and communication between departments. It also provides access to analytical tools that can be used to optimize operations. Cloud computing can also automate processes, reduce costs, and increase efficiency.

4. Digital Manufacturing

Digital manufacturing is another trend gaining traction in the sector. Digital manufacturing uses digital tools and technologies to improve product design, production, and management.

It includes the use of 3D modeling and simulation, as well as data analytics and artificial intelligence. Digital manufacturing can reduce the time to market. It can also improve product quality and increase efficiency.

5. Collaborative Platforms

Collaborative platforms are becoming increasingly important in the manufacturing sector. Collaborative platforms allow manufacturers to connect with customers, suppliers, and partners. This will enable manufacturers to share data and insights. This can help to streamline the manufacturing process.

It can also reduce costs and improve communication and collaboration. Collaborative platforms also offer the ability to monitor and control production in real-time. It enables manufacturers to respond quickly to changes in demand.

To remain competitive, manufacturers must stay abreast of the latest developments and trends in the sector. These trends have the potential to revolutionize the industry. It will result in improved efficiency, reduced costs, and higher-quality products.

7 Understanding the Process Integration for Order Lifecycle Management

This chapter describes the process integration for Order Lifecycle Management (OLM) and discusses a typical topology and order capture flow. It also describes the Qualify Customer Order and Deliver Customer Order subflows and design considerations for product definition and mapping.

Order Lifecycle Management Overview

The process integration for OLM extends from the time a quote or order is created to the time when the goods and services are delivered and billed. The Oracle Communications Order to Cash Integration Pack for Siebel customer relationship management (Siebel CRM), Oracle Communications Order and Service Management (OSM), and Oracle Communications Billing and Revenue Management (BRM) (the integration) works with participating applications to accomplish this process for customer relationship management, order management, billing, and service fulfillment. Integration to other fulfillment system types such as supply chain management and workforce management can be added as an extension project at implementation time.

Figure 7-1 illustrates the functional flow.

Figure 7-1 Order Lifecycle Management Functional Flow

The functional flow for OLM is as follows:

1. Capture Customer Order: A customer order is captured and, if necessary, validated in Siebel CRM. When the order capture is complete and the order is validated, the system submits it to OSM in the central order management (COM) role for delivery. In Figure 7-1, the two arrows from Capture Customer Order to Fulfill Customer Order show the Qualify Customer Order and Deliver Customer Order subflows.
2. Recognize, Map, and Enrich: OSM recognizes customer orders (both Qualify and Deliver request types) as Oracle Application Integration Architecture (Oracle AIA) customer orders, maps them to fulfillment patterns, and enriches them with fulfillment metadata.
3. Decompose and Orchestrate: OSM decomposes and orchestrates the customer orders, dividing the order into suborders called order components. Order components have cross-order components, cross-order lines, and cross-order dependencies that reflect the specific demands of the communications service provider.
4. Generate Orchestration Plan: The outcome of decomposition and orchestration is an order orchestration plan. The fulfillment flow that is produced orchestrates fulfillment requests to different fulfillment providers (such as fulfillment system instances or stacks) using preconfigured fulfillment functions, like Sync Customer, Initiate and Fulfill Billing, and Provision Order. The OSM Order to Activate PIP cartridge product provides ready-to-use automatic integration with AIA web services. When BRM) pre-built integration option is in use, the integration forwards the billing related requests (Sync Customer, Initiate and Fulfill Billing) generated in OSM to BRM. The Sync Customer Account integration flow also uses the Siebel CRM pre-built integration option to get customer account details.
5. Manage OLM Events: OSM manages OLM events. For cancel and revision requests, OSM generates and executes compensation plans to match a change. OLM manages order data and status updates, and order fallout.
6. Update Customer Order: Throughout the fulfillment process, OSM maps fulfillment function responses to common statuses, which are then aggregated into order line statuses and order header status values. OSM updates Siebel CRM with relevant customer status and milestone values when order lines reach their point-of-no-return (PONR) to prevent the submission of new revisions. OSM also updates Siebel CRM with any enrichment to order lines that occurs during fulfillment.
7. Create/Update Trouble Tickets: OSM detects, reports, and resolves order fulfillment fallout incidents such as system, validation, and fulfillment errors. AIA also reports any integration errors to OSM. OSM then creates trouble tickets in Siebel CRM for error notification, reporting, and management.

Note:

OSM delivers pre-built cartridges for use with the integration and provides an Oracle AIA Emulator, which you can use to emulate an order. See Oracle Communications Order and Service Management Cartridge Guide for Oracle Application Integration Architecture for more information about how to install and deploy the delivered cartridges and the emulator.

Note:

This guide focuses on the automated integration points among Siebel CRM, OSM COM, OSM Service Order Management (SOM), and billing. This guide does not cover process details within OSM SOM, for example, service design, assign, and activation.

Order Lifecycle Management Business Flows

The process integration for OLM enables the following business flows:

• Process Sales Order Fulfillment:
• Enabled using either the Oracle Communications Order to Cash for Siebel CRM and OSM Pre-Built Integration option or the Oracle Communications Order to Cash for Siebel CRM, OSM, and BRM Pre-Built Integration option.
• Used when submitting orders from Siebel CRM to OSM for order fulfillment processing.
• Synchronize Fulfillment Order Billing Account:
• Enabled using the Oracle Communications Order to Cash for Siebel CRM, OSM, and BRM Pre-Built Integration option.
• Used when interfacing orders to create customer data in BRM.
• Bill Fulfillment Order:
• Enabled using the Oracle Communications Order to Cash for Siebel CRM, OSM, and BRM Pre-Built Integration option.
• Used when interfacing orders to create transaction data in BRM.
• Provision Order and Update Fulfillment Order:
• Enabled using either the Oracle Communications Order to Cash for Siebel CRM and OSM Pre-Built Integration option or the Oracle Communications Order to Cash for Siebel CRM, OSM, and BRM Pre-Built Integration option
• Used when provisioning orders in OSM in the SOM role, and updating orders and statuses in OSM in the COM through explicit order updates from OSM in the SOM role.
• Update Sales Order:
• Enabled using either the Oracle Communications Order to Cash for Siebel CRM and OSM Pre-Built Integration option or the Oracle Communications Order to Cash for Siebel CRM, OSM, and BRM Pre-Built Integration option
• Used when sending order updates from OSM in the COM role to Siebel CRM.

Typical Topology

Figure 7-2 illustrates a typical deployment topology for the integration. An order management system is at the center of the integration deployment

Figure 7-2 Typical Oracle Communications Order to Cash Deployment Topology

The figure shows order captures systems passing orders to the order management system that is central to the integration deployment. The order management system then decomposes the order into suborders called order components, each of which targets a particular fulfillment provider.

The topology in the figure uses the following fulfillment providers:

• Three billing providers based on customer segment: wholesale, residential, and business.
• Three provisioning stacks based on service family and geography: VoIP, UK Broadband, and Broadband.
• Two shipping providers, one for in-house products and another for partner supplier products.
• One workforce management provider
• One customer relationship management (CRM) service provider for trouble ticketing

Order Capture Overview

Figure 7-3 shows a typical order capture flow. The flow can vary by service provider for many reasons, including service family, customer segment, and line of business.

Order-based system interactions between different business support systems (BSS) and operational support systems (OSS) generally require order decomposition and orchestration to go through the order management layer. The process integration for OLM features integration points for the following systems interactions:

• Qualify Customer Order: validates the availability of a service design and the capacity to fulfill the customer order
• Deliver Customer Order: fulfills the products and services purchased by the customer or fulfills actions on existing customer assets.

Figure 7-3 Typical Order Capture Flow

Figure 7-3 shows the typical order capture flow. The CRM swim lane shows the typical order activities for the CRM system. The OLM swim lane shows the Qualify Customer Order and Deliver Customer Order subflows connected to the CRM activities.

A typical order capture flow is as follows:

1. New customer accounts are created or existing customer accounts are updated. Customer information might also be captured earlier, for example, when an opportunity or quote is created or updated during order capture.
2. (Optional) A credit check is run on the new customer.
3. The customer makes product choices and the CRM system validates the products.
4. The CSP prices the selected products and product options.
5. (Optional) When physical goods are chosen, the CRM system checks the availability to purchase (ATP).
6. (Optional) For some services, such as phone numbers, the CRM system reserves the resource.
7. (Optional) The orders passes through technical service qualification
8. (Optional) An appointment with an engineer is scheduled for the customer.
9. The order is submitted and the delivery process starts.

About the Deliver Customer Order Subflow

Figure 7-4 shows six swim lanes, one for each of the following applications: Siebel CRM, OSM, BRM, OSM Provisioning, Network Inventory (Service and Resource Inventory), and Activation. Each swim lane includes the typical application activities and user interactions that are part of that application. Arrows between such activities represent the typical sequence of events within the same application. Arrows across swim lanes represent system interactions across applications. The O2C hexagons between swim lanes represent existing integration points. See the legend in Figure 7-4 for other details.

Figure 7-4 Deliver Customer Order Subflow

This flow starts with a new order, an order revision, future-dated order, or a follow-on order submitted from Siebel CRM to OSM. OSM performs the following activities:

1. Transforms and enriches the order by mapping order lines to fulfillment flows and enriching them with fulfillment metadata and other relevant data.
2. Decomposes and routes the order by dividing the order into suborders, which are called order components. Order components can have cross-order components, cross-order lines, and cross-order dependencies. The outcome of decomposition is an order orchestration plan that is executed at the computed fulfillment start time to meet the requested delivery date. The produced fulfillment flow orchestrates fulfillment requests using preconfigured fulfillment functions, such as synchronizing the customer into BRM, initiating and fulfilling billing, provisioning the order, shipping the order, and installing the order. The OSM decompose and route order function also generates compensation plans that are associated with revision orders. Figure 7-4 illustrates a simple flow; orchestration plans are typically more complex, as shown in Figure 7-5.

Figure 7-5 Complex Deliver Customer Order Subflow

3. Manages order fallout by creating trouble tickets in Siebel CRM.

The integration provides for detection, reporting, and resolution of order fulfillment fallout conditions such as validation, and fulfillment errors using Siebel CRM trouble tickets. System errors (such as an unreachable system) are handled differently.

4. Manages order status by mapping fulfillment function responses to common statuses which are aggregated into order line statuses and order header status values. OSM updates Siebel CRM with relevant customer status and milestone values. It also updates Siebel CRM when order lines reach their point of no return to prevent the submission of new revisions.

About the Qualify Customer Order Subflow

Figure 7-6 shows six swim lanes, one for each of the following applications: Siebel CRM, OSM, BRM, OSM Provisioning, Network Inventory (Service and Resource Inventory), and Activation. Each swim lane includes the typical application activities and user interactions that are part of that application. Arrows between such activities represent the typical sequence of events within the same application. Arrows across swim lanes represent system interactions across applications. The O2C hexagons between swim lanes represent existing Oracle Communications Order to Cash pre-built integration points. See the legend in Figure 7-6 for other details.

Figure 7-6 Qualify Customer Order Subflow

This flow starts with a request to qualify the technical validity of a customer order submitted from Siebel CRM to OSM. OSM performs the same four functions detailed for the Deliver customer order with one key distinction: the metadata used and the fulfillment flow produced is for qualifying the customer order rather than delivering the customer order. Deliver order flows and Qualify order flows produce different order and order line status updates.

Product Definition and Mapping Design Considerations

The product and service definition methodology has the greatest effect on time to market and on the cost of an Oracle Communications Order to Cash deployment. Often, CSPs define products and services in different departments to serve the best interests of individual departments. This approach creates a challenge for bridging the gaps at run time. A balanced approach that requires departments to make calculated compromises that result in simplified overall product life cycle and order life cycle business flows is recommended.

Figure 7-7 aligns with Tele Management Forum (TMF) terminology and guidelines.

Figure 7-7 Product Model

A balanced model produces a catalog with product specifications represented by the least number of entities. Product specifications represent unique capabilities with commercial value but only sold through product offerings. A more technical definition is that product specifications are types of products.

The product model shown covers the three TMF SID key entities: product, service, and resource.

Product offerings represent tangible and intangible goods and services made available for a certain price to the market in the form of product catalogs. Product offerings take one of three possible forms-simple offerings, bundled offerings, and promotional offerings:

• Simple offerings are product offerings of a single good or service.
• Bundled offerings are a grouping of two or more simple offerings into a single offer.
• Promotional offerings are time-bound, contract-bound, or discounted combinations of simple and bundled offerings.

A key element of the Oracle methodology is a one-to-one mapping of every order line to a product specification. This approach is key to achieving fast time-to-market and low-cost operations. The Oracle solution facilitates this mapping by associating product offerings with a product class in Siebel CRM or Oracle Product Hub for Communications through the Fulfillment Item Code attribute.

Order management systems act on customer orders. Customer orders are composed of order lines. Each order line is represented by an action and a subject. Actions are verbs that represent the nature of the customer request, such as ADD to purchase an offering, UPDATE to modify a customer's subscription to an offering (for example, Customer Asset), and so on. A subject is the target of the action and can represent an offering, an asset, a discount, and so forth.

In the service fulfillment layer, a product specification can map to one or more technical services. A technical service is composed of one or more technical services and resources. The mapping from a customer order to a service order requires specific metadata modeled on products, product specifications, and service and resource configurations.

Figure 7-8 illustrates how the order management system takes advantage of the product model to map customer order lines to fulfillment flows according to the Oracle methodology. Other approaches may be plausible, but you must maintain a balanced approach that facilitates achieving the business objectives of fast time-to-market, and low-cost operations.

Figure 7-8 Mapping Customer Order Lines to Fulfillment Flows

At run time, order capture copies key product offering attributes to each order line. These attributes include Fulfillment Item Code, Product Type Code, and Billing Type. OLM uses these attribute values to determine the corresponding product specification. The order header Fulfillment Mode attribute value determines the fulfillment requested type (for example, Deliver or Qualify). The intersection of a product specification and fulfillment request type determines the fulfillment actions and dependencies involved. When combined for all order lines in an order, an order fulfillment plan is generated dynamically.

Data Requirements

The data requirements for Siebel CRM orders for the process integration for OLM are as follows:

• An order must be of type Sales Order.
• Any price list specified on an order must match one created in Siebel CRM and configured in the PRICELIST domain value map (DVM). The default price list must also be configured in the AIAConfigurationProperties.xml file.
• If a price list is specified in the order header, any order lines that do not specify a price list will use the price list in the order header. If no price list is specified in the order header, each order line must specify a price list, with the exception of order lines for discounts synchronized from BRM as simple products in Siebel CRM. Price list information is not sent for billing discounts.
• Service bundle lines or account-level product lines must have a service account, a billing account, and a billing profile.
• Service bundle lines and simple service bundle lines must have a service ID before they are interfaced to a billing system.
• Order lines referencing the same service account cannot reference different billing accounts. Refer to the solution constraint about having a single parent for subordinate accounts.
• On any new order or change order for a service account, if the billing account is different from the billing account used on a previous order for the same service account, then all existing services paid for by the original billing account must appear on the order as updates to be paid by the new billing account.
• The following enterprise business object (EBO) attributes are mandatory for integration with OSM:
• Order header: Order ID, Order Number, Revision, Fulfillment Mode, Order Type
• Order line: Line ID, Base Line ID, Action Code, Product Name, Product Type