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.