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Improve Your Inventory Management

Your 6-step guide to optimize inventory in Oracle Fusion SCM.
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Improve Your Inventory Management
Challenges (11) Goals (11) 6 Steps Preview Outcomes Data FAQs (4)

Optimize Inventory Management in Oracle Fusion SCM for Peak Efficiency

Inventory operations often contain hidden inefficiencies and accuracy issues that hinder performance. Our platform helps you precisely identify bottlenecks in key processes like put-away, transfers, and picking. By revealing these inefficiencies, you can implement practical improvements that reduce carrying costs and enhance order fulfillment. Discover how to transform your operations.

Download our pre-configured data template and address common challenges to reach your efficiency goals. Follow our six-step improvement plan and consult the Data Template Guide to transform your operations.

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Unlocking Efficiency in Oracle Fusion SCM Inventory Management

Inventory management is the backbone of any supply chain, directly impacting customer satisfaction, operational costs, and overall profitability. In complex environments powered by robust systems like Oracle Fusion Cloud Inventory Management, achieving peak efficiency can be challenging. While Oracle Fusion SCM provides comprehensive tools for material transactions, cycle counts, and replenishment, the processes executed within the system often harbor hidden inefficiencies. These inefficiencies can lead to inflated carrying costs, stockouts, delayed order fulfillment, and compliance risks.

Optimizing your inventory processes within Oracle Fusion SCM is not merely about managing stock, it is about transforming your entire supply chain. When inventory processes are optimized, you ensure that the right products are in the right place at the right time, minimizing waste and maximizing throughput. Understanding the true flow of inventory, from initial receipt through various internal movements and eventual issue, is critical for identifying specific areas for improvement. This deep dive into your operational reality is precisely where process mining offers unparalleled value.

How Process Mining Illuminates Your Inventory Processes

Process mining acts as an X-ray for your inventory operations, providing an objective, data-driven view of how inventory batches or lots actually move through your Oracle Fusion SCM system. Instead of relying on assumptions or anecdotal evidence, process mining uses event logs from Oracle Fusion SCM to reconstruct the complete, end-to-end journey of every inventory item. By tracking each Inventory Batch/Lot as a case identifier, you gain a comprehensive understanding of its lifecycle.

This perspective allows you to visualize critical process steps, such as Goods Receipt Recorded, Quality Inspection Performed, Put-away Initiated, Put-away Completed, Stock Moved Internally, Picking Initiated, Picking Completed, and Goods Issue Recorded. You can observe the exact sequences, identify frequently occurring deviations from standard operating procedures, and precisely pinpoint where bottlenecks are causing delays. For instance, you can analyze the lead time between Put-away Initiated and Put-away Completed, or uncover why certain stock movements take longer than expected, impacting your ability to reduce Inventory Management cycle time.

Key Areas for Inventory Process Improvement

Through process mining, you can target specific areas for significant improvement within your Oracle Fusion SCM inventory operations:

  • Streamlining Goods Receipt and Put-away: Identify delays in receiving and put-away processes, which can tie up dock space and delay product availability. Uncover reasons for inefficient storage bin assignments and optimize material flow to reduce lead times.
  • Optimizing Internal Stock Movements: Analyze the frequency and reasons for internal stock movements. Excess transfers can indicate poor initial put-away strategies or inefficient warehouse layouts, increasing handling costs and potential for errors.
  • Enhancing Picking and Packing Efficiency: Pinpoint bottlenecks in the picking and packing stages, which directly affect order fulfillment speed. Discover patterns in picking routes or delays that can be resolved through better workforce management or process adjustments.
  • Improving Inventory Accuracy and Cycle Counting: Investigate the root causes of inventory discrepancies and analyze the effectiveness of your cycle counting processes. Understand why adjustments are frequently made after Inventory Count Performed, leading to better stock visibility and reduced shrink.
  • Reducing Goods Issue Delays: Identify factors contributing to late goods issues, ensuring products are shipped on time and customer service levels are maintained.

Measurable Outcomes of Inventory Process Optimization

By leveraging process mining to improve Inventory Management, you can expect tangible, measurable benefits across your organization:

  • Reduced Carrying Costs: By optimizing put-away, reducing lead times, and improving inventory turnover, you can significantly lower the costs associated with holding excess stock.
  • Enhanced Stock Accuracy: Better understanding of discrepancy causes and improved cycle count processes lead to more reliable inventory data, minimizing stockouts and overstock situations.
  • Faster Order Fulfillment: Streamlined picking, packing, and goods issue processes directly translate to quicker order processing and improved on-time delivery rates, boosting customer satisfaction.
  • Optimized Storage Utilization: Identifying inefficient put-away strategies and excessive internal movements helps you make better use of your warehouse space, reducing the need for costly expansions.
  • Improved Compliance and Audit Readiness: Gaining a clear, data-backed view of your processes helps ensure adherence to internal policies and external regulations, making audits smoother and reducing risks.

Embark on Your Inventory Optimization Journey

Improving Inventory Management with Oracle Fusion SCM through process optimization is a strategic imperative. By understanding the

Inventory Management Stock Control Warehouse Operations Supply Chain Optimization Material Handling Inventory Accuracy Replenishment

Common Problems & Challenges

Identify which challenges are impacting you

Receiving goods efficiently is critical, but slow put-away processes often lead to congestion in receiving docks, delaying the availability of inventory for sales or production. This inefficiency ties up valuable warehouse space and labor, increasing operational costs and potentially impacting lead times for dependent processes.ProcessMind analyzes the time taken from "Goods Receipt Recorded" to "Put-away Completed" for each "Inventory Batch/Lot" in Oracle Fusion SCM. It highlights specific "Warehouse Location" or "User Performing Action" involved in bottlenecks, revealing where delays consistently occur and suggesting process improvements to streamline stock movement.

Discrepancies between recorded inventory levels and actual physical stock can cause significant operational issues, including unexpected stockouts, overstocking, and incorrect order promises. This inaccuracy leads to lost sales opportunities, increased rush orders, and wasted resources spent on locating missing items or managing excess.ProcessMind uncovers the root causes of inventory inaccuracies by examining patterns in "Inventory Count Performed" and subsequent "Inventory Discrepancy Adjusted" events within Oracle Fusion SCM. It identifies frequent adjustment areas, specific "SKU Category" prone to errors, and underlying process deviations impacting data integrity.

Moving stock between different locations within a warehouse or between interconnected warehouses can be inefficient, leading to wasted labor, increased handling costs, and delays in making goods available where needed. Suboptimal routing or excessive transfers create unnecessary work and extend overall inventory lead times.ProcessMind maps the actual paths and durations of "Stock Moved Internally" activities for each "Inventory Batch/Lot" in Oracle Fusion SCM. It identifies redundant movements, bottlenecks at specific "Storage Bin" transfers, and opportunities to optimize internal logistics by analyzing the "User Performing Action" and "Movement Reason Code".

The time taken for picking items from shelves and then packing them for shipment directly impacts order fulfillment speed and customer satisfaction. Delays in these critical stages can lead to missed delivery windows, increased customer complaints, and potential penalties for non-compliance with service level agreements.ProcessMind visualizes the end-to-end "Picking Initiated" to "Packing Completed" cycle for each "Inventory Batch/Lot" in Oracle Fusion SCM. It pinpoints where delays occur, highlighting inefficient sequences, resource bottlenecks, or specific "Warehouse Location" causing slowdowns, enabling targeted improvements to accelerate order processing.

Holding excessive inventory ties up significant capital, incurs high storage costs, increases the risk of obsolescence or damage, and reduces organizational agility. This often stems from poor forecasting, slow inventory turnover, or inefficient disposition processes, directly impacting profitability and cash flow.ProcessMind analyzes the dwell time of each "Inventory Batch/Lot" from "Goods Receipt Recorded" to "Goods Issue Recorded" or "Stock Scrapped/Disposed" within Oracle Fusion SCM. It identifies inventory that sits idle for extended periods, assessing "Stock Value" and "Expiration Date" to highlight areas of slow-moving or at-risk stock.

Relying on frequent manual inventory adjustments, rather than addressing underlying issues, masks the true problems within the inventory management process. These adjustments consume valuable time, disrupt operations, and often indicate systemic failures in transaction recording, handling, or security, leading to persistent inaccuracies.ProcessMind analyzes the frequency, magnitude, and "Movement Reason Code" of "Inventory Discrepancy Adjusted" events for each "Inventory Batch/Lot" in Oracle Fusion SCM. It uncovers patterns in these adjustments, identifying specific "Warehouse Location", "SKU Category", or "User Performing Action" where discrepancies are most prevalent, allowing for root cause analysis.

The inefficient handling of returned goods can significantly detract from customer experience, leading to delays in refunds or replacements, and increased customer service inquiries. Furthermore, slow returns processing can leave valuable inventory in an indeterminate state, impacting its re-usability or timely disposition.ProcessMind tracks the complete lifecycle of items marked as "Return Goods Processed" for each "Inventory Batch/Lot" in Oracle Fusion SCM. It identifies bottlenecks in the return-to-stock or return-to-vendor process, highlighting specific steps, "Warehouse Location", or "User Performing Action" that contribute to extended lead times.

Delays in the quality inspection process, following goods receipt, can hold up critical inventory from being put away and becoming available for use or sale. This directly impacts production schedules, order fulfillment, and can lead to increased storage costs for goods awaiting clearance.ProcessMind analyzes the duration between "Goods Receipt Recorded" and "Quality Inspection Performed" for each "Inventory Batch/Lot" in Oracle Fusion SCM. It pinpoints specific inspection points, "SKU Category", or "User Performing Action" that consistently exhibit prolonged delays, helping to streamline the quality control workflow.

Deviations from standard operating procedures or regulatory guidelines in inventory handling can expose an organization to significant compliance risks, including fines, audits, and reputational damage. Unauthorized process steps or actions not conforming to internal policies can lead to financial and operational repercussions.ProcessMind provides full visibility into the actual sequence of "Typical Activities" for each "Inventory Batch/Lot" in Oracle Fusion SCM. It automatically detects and flags non-compliant process variants, such as skipped "Quality Inspection Performed" steps or unauthorized "Transaction Type" by specific "User Performing Action", identifying areas of risk.

Excessive rates of inventory scrap or obsolescence represent direct financial losses, as products become unusable or unsellable, impacting profitability and sustainability goals. This often results from poor inventory rotation, inefficient storage conditions, or extended processing times that allow goods to expire or become damaged.ProcessMind analyzes "Stock Scrapped/Disposed" events, correlating them with "Expiration Date", "Movement Reason Code", and "Stock Value" for each "Inventory Batch/Lot" in Oracle Fusion SCM. It identifies patterns, such as specific "SKU Category" or "Warehouse Location" contributing disproportionately to waste, allowing for proactive mitigation strategies.

If cycle counting processes are ineffective, they fail to accurately reconcile physical inventory with system records, perpetuating inaccuracies and diminishing confidence in inventory data. This leads to wasted effort in counting without achieving the primary goal of improving stock accuracy and reducing discrepancies.ProcessMind evaluates the efficiency and outcome of "Inventory Count Initiated" to "Inventory Count Performed" cycles for each "Inventory Batch/Lot" in Oracle Fusion SCM. It identifies repetitive counts for the same locations, high subsequent "Inventory Discrepancy Adjusted" rates, and variations in counting processes that contribute to persistent inaccuracies.

Typical Goals

Define what success looks like

This goal aims to significantly decrease the time it takes for received goods to be moved from the receiving dock to their designated storage locations. Faster put-away reduces congestion in receiving areas, improves inventory availability, and prevents stock damage from prolonged staging, directly impacting warehouse efficiency and order fulfillment speed in Oracle Fusion SCM.ProcessMind tracks the "Put-away Initiated" and "Put-away Completed" activities for each Inventory Batch/Lot, revealing average completion times and identifying specific bottlenecks or variations across different warehouses or product categories. By visualizing the process flow, ProcessMind pinpoints the root causes of delays, such as resource constraints or inefficient routing, allowing for targeted improvements.

Achieving higher inventory accuracy means the physical count of stock consistently matches the records in Oracle Fusion SCM. This prevents stockouts, reduces overstocking, minimizes write-offs, and ensures reliable data for planning and forecasting, leading to better customer satisfaction and significant cost savings across the supply chain.ProcessMind analyzes "Inventory Count Initiated," "Inventory Count Performed," and "Inventory Discrepancy Adjusted" activities for each Inventory Batch/Lot to identify patterns in adjustments and their root causes. It reveals which locations, SKUs, or processes contribute most to discrepancies, enabling focused efforts to tighten controls and improve data integrity, ultimately boosting the reliability of your inventory data.

This goal focuses on streamlining the movement of goods between different locations within the warehouse or across multiple warehouses managed by Oracle Fusion SCM. Faster and more efficient internal transfers reduce bottlenecks, minimize stock unavailability for picking, and lower operational costs associated with material handling, enhancing overall warehouse fluidity.ProcessMind maps the flow of each Inventory Batch/Lot through "Stock Moved Internally" activities, identifying unnecessary steps, re-routing, or delays in transfer execution. It highlights variations in lead times based on user, location, or reason code, allowing businesses to redesign transfer processes for maximum efficiency and reduce wasted time and resources.

Accelerating the picking and packing processes directly impacts order fulfillment speed and customer satisfaction. This involves reducing the time from "Picking Initiated" to "Packing Completed," ensuring that goods are prepared for shipment quickly and accurately, thereby improving throughput and meeting delivery commitments within Oracle Fusion SCM.ProcessMind provides a detailed view of the picking and packing journey for each Inventory Batch/Lot, pinpointing where delays occur within these critical activities. By analyzing the sequence and duration of "Picking Initiated," "Picking Completed," and "Packing Completed," it uncovers process variations, resource bottlenecks, or suboptimal layouts hindering efficiency, enabling targeted optimization.

This objective aims to reduce the financial burden associated with storing inventory, including warehousing, insurance, obsolescence, and capital tied up. By maintaining optimal stock levels in Oracle Fusion SCM, companies free up working capital, reduce waste, and improve profitability without compromising service levels or incurring stockouts.ProcessMind, by tracking Inventory Batch/Lot lifecycles, can reveal patterns of slow-moving or stagnant inventory by analyzing the time elapsed between "Put-away Completed" and "Goods Issue Recorded" or "Stock Scrapped/Disposed." It identifies SKUs, warehouses, or transaction types contributing to prolonged storage, enabling proactive adjustments to replenishment strategies and inventory policies.

Eliminating the need for frequent inventory adjustments signifies a highly accurate and stable inventory system within Oracle Fusion SCM. This goal focuses on addressing the underlying causes of discrepancies, such as receiving errors, picking mistakes, or data entry issues, leading to more reliable inventory records and reduced operational overhead.ProcessMind correlates "Inventory Discrepancy Adjusted" events with preceding activities like "Goods Receipt Recorded," "Put-away Completed," or "Goods Issue Recorded" for each Inventory Batch/Lot. It identifies recurring patterns, specific users, or locations that frequently initiate adjustments, pinpointing the true sources of inaccuracies and guiding efforts to implement preventative measures rather than reactive corrections.

Improving the speed and accuracy of handling returned goods enhances customer satisfaction and allows for quicker reintroduction of salable items into stock within Oracle Fusion SCM. This goal reduces the lead time from "Return Goods Processed" to final resolution, minimizing associated costs and maximizing recovery value for returned inventory.ProcessMind visualizes the complete "Return Goods Processed" flow for each Inventory Batch/Lot, identifying delays, reworks, or non-standard paths that hinder efficient processing. It allows for analysis of variations based on product type, reason for return, or user, providing insights to optimize workflows and reduce processing bottlenecks and costs.

This goal aims to significantly reduce the time taken for incoming goods or internal transfers to undergo and pass quality inspection, making stock available faster for put-away or consumption in Oracle Fusion SCM. Expedited inspections prevent bottlenecks, improve stock rotation, and ensure that only compliant goods enter the inventory, supporting timely order fulfillment.ProcessMind traces the path of each Inventory Batch/Lot from "Goods Receipt Recorded" or "Stock Moved Internally" to "Quality Inspection Performed," identifying the duration and variations in this critical step. It reveals specific inspection queues, resource limitations, or procedural deviations that cause delays, enabling data-driven decisions to accelerate throughput and improve overall flow.

Achieving full inventory compliance means all inventory-related activities adhere strictly to internal policies, regulatory requirements, and industry standards within Oracle Fusion SCM. This reduces risks of penalties, ensures proper handling of specific goods, and maintains audit readiness, safeguarding the company's reputation and financial health.ProcessMind's conformance checking capabilities analyze the actual execution paths of each Inventory Batch/Lot against predefined compliant models or rules. It highlights deviations from expected "Goods Receipt Recorded," "Put-away Completed," or "Stock Scrapped/Disposed" sequences, identifying non-compliant transactions, users, or locations that require intervention and corrective action.

Reducing the rate at which inventory becomes unsalable due to damage, expiration, or obsolescence directly improves profitability and reduces waste in Oracle Fusion SCM. This goal targets identifying and addressing the root causes leading to "Stock Scrapped/Disposed" events, preserving asset value and optimizing inventory lifecycle management.ProcessMind tracks Inventory Batch/Lot lifecycles up to "Stock Scrapped/Disposed" events, analyzing the preceding activities and time spent in inventory. It correlates scrap reasons with specific SKUs, suppliers, storage conditions, or process deviations, providing insights into where preventative measures, like improved handling or better forecasting, can significantly reduce losses.

Enhancing cycle counting effectiveness ensures that regular, small-scale physical counts accurately reflect inventory levels in Oracle Fusion SCM, reducing the need for full inventory write-downs and improving overall stock data reliability. This goal focuses on optimizing the frequency, selection, and execution of counts to maintain high accuracy with minimal disruption.ProcessMind analyzes the complete cycle counting process for each Inventory Batch/Lot, from "Inventory Count Initiated" to "Inventory Discrepancy Adjusted." It evaluates the efficiency of counting routes, identifies areas with consistently high discrepancies, and pinpoints where process variations or errors occur, allowing for data-driven adjustments to counting methodologies and schedules.

The 6-Step Improvement Path for Inventory Management

1

Download the Template
2

Export Your Inventory Data
3

Upload Your Inventory Dataset
4

Analyze Your Inventory Process
5

Implement Inventory Improvements
6

Monitor Inventory Performance
1

Download the Template

What to do

Access the pre-built Excel template designed for Oracle Fusion SCM Inventory Management data. This template provides the required structure for your inventory process data.

View Data Template Guide Download Template
Why it matters

Using the correct data structure from the start ensures accurate and efficient analysis, preventing rework and speeding up your improvement journey.

Expected outcome

A structured Excel template, ready to be populated with your Oracle Fusion SCM inventory data.

YOUR KEY INSIGHTS

Uncover Inventory Management Insights in Oracle SCM

ProcessMind visualizes your actual inventory movements, exposing hidden inefficiencies and operational bottlenecks. Gain clear insights into put-away, transfers, and picking processes to drive impactful improvements.
  • Visualize inventory flow end-to-end
  • Pinpoint put-away and picking bottlenecks
  • Identify causes of stock accuracy issues
  • Optimize fulfillment, reduce carrying costs
Discover your actual process flow
Discover your actual process flow
Identify bottlenecks and delays
Identify bottlenecks and delays
Analyze process variants
Analyze process variants
Design your optimized process
Design your optimized process

TYPICAL OUTCOMES

Tangible Improvements in Inventory Management

These outcomes represent the measurable benefits organizations typically achieve by optimizing their Inventory Management processes. Leveraging data from systems like Oracle Fusion SCM, process mining reveals inefficiencies, enabling targeted improvements and significant operational enhancements.

0 %
Faster Put-away Cycles

Average reduction in put-away time

Identify and remove bottlenecks in your put-away process, ensuring stock is available quicker. This directly improves stock visibility and operational flow.
0 %
Improved Inventory Accuracy

Reduction in inventory discrepancies

Pinpoint the root causes of inventory discrepancies and frequent adjustments. Achieve more reliable stock counts and reduce costly manual interventions.
0 %
Lower Holding Costs

Decrease in excess stock holding days

Optimize inventory turnover by identifying slow-moving stock and inefficient storage practices. This significantly reduces capital tied up in excess inventory.
0 %
Quicker Order Fulfillment

Faster picking and packing cycles

Streamline your picking and packing operations by eliminating unnecessary steps and delays. This accelerates order processing and enhances customer satisfaction.
0 %
Higher Process Compliance

Improvement in process adherence

Automatically monitor adherence to defined inventory management procedures and regulations. Reduce risks associated with non-compliant stock handling and reporting.

Results vary based on factors such as process complexity, existing system configurations, and data quality. These figures illustrate typical improvements observed across diverse implementations of process mining in Inventory Management.

FAQs

Frequently asked questions

Process mining analyzes event logs from your Oracle Fusion SCM system to visualize the actual flow of your inventory processes. It helps identify bottlenecks, inefficiencies, and compliance gaps that may be hidden in your data. By revealing these issues, it enables data-driven decisions to optimize put-away times, internal transfers, and overall stock levels.

You will need event logs that include an activity name, a timestamp for each activity, and a case identifier. For Inventory Management, the "Inventory Batch/Lot" serves as the primary case identifier, allowing tracking of individual inventory units. Relevant data can typically be extracted from tables recording inventory transactions, movements, and status changes.

The initial setup, including data extraction and generating the first process model, can often be completed within a few weeks, depending on data accessibility and complexity. The real value comes from continuous analysis and iterative improvements, making it an ongoing process. This allows for sustained optimization and adaptation to changing business needs.

You can expect tangible improvements such as a significant reduction in put-away completion time and enhanced inventory accuracy. Process mining also helps optimize internal transfer lead times, accelerate picking and packing cycles, and minimize excess stock holding costs. These insights lead to a more efficient and cost-effective inventory operation.

The main technical requirement is secure access to your Oracle Fusion SCM database to extract the necessary event log data. This typically involves using SQL queries, APIs, or existing reporting tools to pull information from relevant tables. A dedicated process mining tool is then used to ingest and analyze this extracted data.

Absolutely. Process mining excels at uncovering the root causes of problems like delayed put-away, inaccurate stock levels, and inefficient internal transfers. By visualizing every step and its timing, it highlights where delays occur, why adjustments are frequent, or where quality inspections become bottlenecks, providing actionable insights for resolution.

The Inventory Batch/Lot serves as the crucial case identifier because it allows the process mining tool to group all related events belonging to a specific batch or lot. This enables a complete, end-to-end view of that inventory unit's journey through the entire process. Without a consistent case identifier, events cannot be accurately linked to form a coherent process flow.

Process mining goes beyond simply identifying problems; it provides the granular, data-driven evidence needed to understand why issues occur. These insights directly inform and validate potential solutions and process redesign efforts. While the tool itself doesn't implement solutions, it equips your team with the intelligence to make informed decisions and measure the impact of changes.

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