Oracle Retail Merchandising System (RMS) - Overview

Welcome to Oretail forum. Let me first congratulate you on your zeal to learn Oracle Retail applications. This article is the continuation of parent article Oracle Retail Merchandising Systems - Deep Dive which you may want to follow. In this article, I'm going to cover the high-level overview of RMS System and we'll be trying to understand the following:

1)         Oracle Retail MOM Footprint

2)         Oracle Retail Merchandising Operation Management (MOM) Solutions

3)         Data Integrations between MOM Applications

4)         Overview of key Merchandising Operation Management applications

a.      Design & Webtrack

b.      Trade Management

c.       Price Management

d.      Sales Audit

e.      Invoice Matching

f.        Data Warehouse

g.      Active Retail Intelligence

5)         Oracle Retail Reference Model (RRM) and how to use it      

In order to understand Oracle Retail Merchandising System, we need to first have the understanding about Oracle Retail Merchandise Operations Management Suite and Oracle Retail Footprint. The Merchandise Operations Management (MOM) solutions enable retailers to coordinate their operations and maintain a single, comprehensive source of consistent and accurate data. This coordination allows retailers to provide consumers with the right product, at the right place and time, in the right quantities and for the right price.

RMS as part of the Oracle Retail Footprint

Oracle Retail Merchandise Operations Management suit consists mainly following applications:

• Design & Webtrack
• Trade Management
• Merchandising
• Price Management
• Sales Audit
• Invoice Matching
• Data Warehouse
• Active Retail Intelligence

Oracle Retail Merchandising System

ORMS is Oracle’s core transaction system and serves as the central focus point for information flowing throughout the enterprise. ORMS is a user-friendly system built using the Oracle database and is designed to handle retail needs for fashion or department stores, grocery stores, mass merchandisers, and hardlines stores.

Common Retail Challenges	RMS Benefits
Increase sales and gross margins while reducing inventory	Improved inventory tracking combined with robust ordering, transfer, replenishment and integrated allocation functionality provides greater control over products and inventories resulting in better sales and fewer markdowns which improves gross margin
Reduce inventory and increase customer satisfaction	Inventory tracking throughout the supply chain enables quicker inventory response and ensures a balance between inventory cost efficiencies and customer service levels.
Improve data accuracy	Consistent business information across the enterprise reduces error potential
Increase end-user productivity	Merchandising is the glue of Oracle Retail Product Suite, the daily operational functions of the retailer can be created, maintained and viewed in a single solution

Key Value propositions of Oracle Retail Merchandising System

·         Powerful, fully functional merchandise management system

o    Supports daily operations

o    Provides the foundation for other transaction-level systems as well as decision support and predictive solutions

o    Built on retail industry business practices

o    Provides Foundation data for all product types

o    Cost, Price & Promotion Management

o    PO & Distribution Management

o    Import Management

o    Multichannel, multi-vertical, and multi-country operations

o    Key application across all retail verticals (grocery, fashion etc.) and all channels (bricks and mortar, web etc.)

·         Single Source of Data (One version of truth) Across the Enterprise

o    The foundation and perpetual inventory within RMS serve as the system of record within the enterprise providing a single version of the truth.

o    Analytical reporting, exception management, planning, forecasting, distribution management, inventory management, point-of-sale etc.

·         Enables Other Processes with the Enterprise

o    The perpetual inventory/sales history within RMS is shared with other Retek applications such as Order Management, Planning, Forecasting, Allocation, AIP, Data Warehouse, etc…  RMS not only enables these processes by providing the relevant data but also ensures they are consistent and accurate as they utilize the same data set.

·         Enables Consistent Processes Across the Organization

o    Retailers no longer need to maintain multiple merchandising systems to support multiple channels or multiple countries.  RMS provides the ability to maintain these in a single system ensuring consistency in various merchandising processes (item management, procurement, etc…)

o    Use as the base application, and then layer on other applications for value-add

o    End-to-end, fully integrated merchandising

o    Real-time visibility to enterprise data

o    Proven scalability crucial for the data volumes of retail

o    Supports real-time inventory tracking

o    Global retailing support

o    Best-in-class functionality, driven by world-class retailers 

Below is high level ORMS life cycle: 

Data Integrations between Oracle Retail MOM Applications

Following is the single view table for the all the data integration between Oracle Retail Merchandise Operation Management Solutions:

send/receive	RMS	RPM	ReIM	ReSA	RTM	ARI	Allocation
RMS		Foundation data Item Competitor pricing information Deals Event notification	Foundation data Item PO Shipment Deals & Rebates Staggered A/c payable transactions	Current reference data using batches. Share the same Dbase	Import specific data is shared	NA	Foundation Item PO Transfer BOL ASN
RPM	Regular price changes promotions, Clearance price changes, initial pricing, price change execution		NA	Promotion information	NA	NA	Future retails Promotions
ReIM	Invoice matching results receiver cost adjustment Receiver unit adjustment Closing unmatched shipments	NA		Non-merchandise paid out transaction	NA	NA	NA
ReSA	Clean audited data with sales & returns	NA	Store level purchases Escheatment processing		NA	NA	NA
RTM	Share the same dbase instance	NA	Finalized customs entry Approved obligations			NA	NA
ARI	Only monitors data	Only monitors data	Only monitors data	Only monitors data	Only monitors data		Only monitors data
Allocation	Allocations POs created by 'what-if'allocations	NA	NA	NA	NA	NA

Describe other key applications in the Oracle Retail MOM Footprint

Other than RMS, Oracle Retail MOM Suite comprises of following applications:

1)      Design & Webtrack

•          Collaborative, web based product development solution to conceive, develop and finalize new product design

Common Retail Challenges	Benefits
Increase Profitability	Enables retailers the ability to expand the ratio of import to domestic products and shift to a more profitable private-label branding strategy through improved management of the product design process
Reduce cycle time; improve speed to market; Control and reduce product development costs	Optimizes time to market reducing sample iterations and eliminating redundant work. Visibility to all product and event details allows proactive management of product issues and facilitates a focused, organized product development and sourcing process.
Provide structure and organization to the business process	Technology supports product configuration, data analysis and comparisons enabling an organized, efficient product development and sourcing process
Improve communication and Supply Chain visibility	Centralized data improves visibility, internal and external communication through immediate supplier feedback, and allows accurate reporting on progress

Value of Oracle Retail Design & Webtrack

•          Platform Independence

•          Multiple Trading Partner Collaboration

•          Document Management

•          Flexible and Configurable

•          Easy Accessibility to Data and Integration to External Systems

2)      Trade Management

•          Create visibility to entire importing of product process for increased cost control and profitability

Common Retail Challenges	Benefits
Reduce operational costs and increase productivity	Centralized management of import information eliminates redundant data entry and maintenance, reducing confusion and errors associated with maintaining information in disparate systems and multiple spreadsheets; Provides retailers the scalability to grow import programs while leveraging their investment in their existing merchandising organization and Oracle Retail solution
Reduce Inventory Costs	Better visibility to total product cost helps retailers to drive cost out of their import supply chains and enables better buying decisions by: ·         Calculating and tracking more accurate landed costs of import purchases ·         Resolve potential delays proactively, reducing lost sales and markdowns ·         Improve custom compliance, avoiding delays and penalties
Improve Supply Chain Responsiveness	Centralized management of information exchanged throughout the import supply chain, improves the availability of timely, accurate information. The result is improved cooperation across departments involved in the import process, greater confidence in the accuracy of information, and faster and more effective decision-making.
Improve Profitability	With greater control of their international supply chain, retailers can grow their import programs to reduce costs and improve margins.

Value of Oracle Retail Trade Management

•          Provides an integrated suite of applications that automate the import process from end to end.

•          Provides a central repository of validated import data exchanged with partners throughout the retailer’s extended enterprise

•          Provides visibility to product movements and allows retailers to manage to on-time delivery

•          Supports accurate accounting of import costs and margin calculations

•          Supports consistent approach to compliance, reducing penalties and delays

3)      Price Management

•          Strategy-based solution enables automation and streamlines pricing decisions

Common Retail Challenges	Benefits
Establish and maintain pricing image	Single point of input and access to critical pricing foundation data, such as zone management, pricing guides, “ends in” and rounding rules, allow retailers to reduce pricing inconsistencies and maintain image.
Corporate control and visibility to information surrounding pricing decisions	Integration to important sales, inventory and foundation data gives retailers the ability to make pricing decisions with a view to critical information.
Decrease manual dependencies, and increase productivity	Managing by exception helps save time and provides visibility to pricing opportunities with the most favorable business impact.  Automation and suggestion of price changes by the system reduces manual process.
Wrong price, wrong time, wrong location	Strategy-based pricing within ORPM help retailers manage the product’s pricing lifecycle, whether it be a seasonally driven markdown, or a product highly susceptible to cost increases or competitor pricing.  This ensures that products are priced correctly, consistently and in line with what the local market demands.

Value of Oracle Retail Price Management

•          Fully integrated with Oracle Retail enterprise, resulting in faster implementation, reduction in interfaces and lower TCO

•          Single version of the truth and centralized visibility for critical information surrounding pricing decisions—we own the foundation.

•          Strategy-based pricing functionality enables automation and management by exception.

4)      Sales Audit

•          Data cleansing and loss prevention tool that optimizes feeds to downstream processes

Common Retail Challenges	Benefits
Real time or near real time access to audited sales data	Trickle-polling capability within Sales Audit provides the Oracle Retail product suite near-real time visibility to sales and updates stock on hand, reducing safety stock levels
Sales data integrity throughout the entire retail enterprise ·         ”Single version of the truth”	As the single point of entry for multi-channel point-of-sale data, Sales Audit provides a “Single version of the truth” by maintaining data integrity across the entire Oracle Retail suite
Reduce the Total Cost of Ownership (TCO)	Sales Audit is tightly integrated within the Oracle Retail product suite; therefore, the amount of custom interfaces required are substantially reduced
A highly configurable sales audit tool that allows the retailer to maintain their existing audit practices with the flexibility to adapt to new challenges	Flexible definition of audit totals and rules and interactive audit process permit the retailer to create a highly customized sales audit process, tailored to meet the retailer’s specific needs, while allowing for changes in a dynamic business environment

Value of Oracle Retail Sales Audit

•          Configurability of audit rules and totals

•          Proven scalability

•          Fully integrated enterprise solution in comparison to the point solution competitors…Total Cost of Ownership (TCO)

5)      Invoice Matching

•     Facilitates three-way matching, payment, and receivables collection processes

Common Retail Challenges	Benefits
Increase matching productivity	Highly automated processes minimize manual intervention through complex multi-dimensional matching engines while automated 'routing' provides efficient movement of information throughout the organization to support discrepancy resolution.
Improve inventory cost and gross margin accuracy	Timely identification and resolution of discrepancies helps ensure inventory adjustments can be made prior to sale of goods to improve gross margin accuracy.
Improve cash management	Invoice Matching helps retailers manage the payment process and maximize net cash on hand by ensuring timely discrepancy identification and routing based on cash discount or invoice due dates.
Reduce the Total Cost of Ownership (TCO)	Best practice for invoice matching is to perform the verification activity within the merchandise system where the foundation and merchandise data is readily available.  Invoice Matching lowers the total cost of ownership by minimizing interface development due to it’s tight integration with the Oracle Retail solution suite.

Value of Oracle Retail Invoice Matching

•          Discrepancy routing and resolution capabilities

•          Seamless integration between the merchandising and trade management solutions (e.g. supplier billing for RTVs, rebates and other deals, consignment, evaluated receipts and import obligations)

•          Proven scalability

•          Fully integrated enterprise solution in comparison to the point solution competitors…Total Cost of Ownership (TCO)

6)      Data Warehouse

•          Provides retail specific analysis through an integrated enterprise reporting solution

Common Retail Challenges	Benefits
Improve decision making	By putting historical and exception reporting as well as retail KPIs to work, retailers gain valuable business insight that is easily accessible and actionable, resulting in increased sales and margins.
Improve user productivity and confidence	One reporting source for critical and accurate information is available to all users for improved decision-making and critical user acceptance.
Improve customer relationships and profitability	Integration of sales, inventory and foundation data into ORDW allow retailers to gain insights into customer buying patterns and location level performance.
Improve data and information accuracy; implement corporate standards for reporting	ORDW’s flexible framework allow for retailers to publish metrics and templates for the user community to access, thus providing a single version of the truth and centralized source for reporting and analytics.

Value of Oracle Retail Data Warehouse

•          Retail specific data model, built by retailers for retailers

•          Proven scalability crucial for the data volumes of retail

•          Integration of data from core Oracle Retail applications

•          Central focal point for analytical reporting throughout the organization

7)      Active Retail Intelligence

•          A Rules based exception management solution for transaction and decision support systems 

Common Retail Challenges	Benefits
Increase productivity	Delivers the right information to the right people at the earliest opportunity. Provides actionable actions for routine processes and escalate alerts if not resolved within defined time frames
Reduce Hard copy reports	Reduces the need for creating and printing hardcopy exception reports by delivering the right information to the right people at the earliest opportunity using exception notifications. Enables ability to react to exception in a more timely manor
Maintain supported upgrade path and reduce development cost	Enables the ability to close the loop on business processes without costly modifications to code, which keeps the software on a supported upgrade path as well being able to change when business rules change

Value of Oracle Retail Active Retail Intelligence

•          Increases productivity by allowing users to manage problems by exception

•          Ensures timely follow-through on the most important business processes

•          Keeps an organization operating as efficiently as possible

•          Closes the loop between information and action

Oracle Retail Reference Model (RRM) and how to use it

The Oracle Retail Reference Model is a comprehensive collection of established, industry leading business processes which guide retailers and implementers on the use of Oracle applications to achieve greater business value. The processes support an implementation of merchandising, stores, planning, and supply chain products, and act as a guide for both the business and implementation teams. The designs are created for a generic retailer, but with inherent considerations for Hardlines, Fashion, Grocery, and Telecommunications. Process content is complimentary to customers who have licensed any Oracle Retail application. Ongoing updates and additions based on feedback, recent Oracle Retail releases, and new applications, ensure that the retailer always has updated, comprehensive, field proven processes for retail operations. Business process flows are created and maintained in Microsoft Visio

There are four general audiences for whom the processes are written: 

• Retail clients who have purchased and are implementing the Oracle Retail products
• Integrators and implementers who are implementing the Oracle Retail products
• Business analysts who want to understand how the systems can be applied to meet their business solutions

• System analysts and system operation personnel who need additional functional understanding of the Oracle Retail products

Targeting Levels of Detail by Audience

Name	Description	Target Audience
Retail Industry Model (Level 0)	A collection of functional areas to describe the retail enterprise as a whole, using Value Added Chain notation arranged according to Plan and Market, Make, Buy, Move and Fulfill, Sell and Service, and Enterprise Operations.	Executives
Business Process Area Models (Level 1)	Conceptual representation of one major business process area, using adaptation of Event-driven Process Chain notation. May be connected in a start-to-finish flow, organized as unconnected process areas, or any appropriate combination thereof	Executives Directors Senior Managers
Organizational Business Process Flows (Level 2)	Representations of logical part of a start-to finish business process, using adaptation of Event-driven Process Chain notation.
Business/System Process Flows (Level 3)	Represent the activities and tasks that are executed by actor and system to complete the process. Uses adaptation of Business Process Modeling Notation symbols.	Implementers Team Leads Users

The Business Process designs are intended to support an implementation of the merchandising, stores, and planning products. These designs are a guide for both the business and implementation teams. They explain some scenarios and factors that need to be considered for a successful implementation. The designs are created for a generic retailer, with some considerations made for Hardlines, Apparel (Softlines), Grocery, and Telecommunications. Hence, retailers may find that they wish to change the business processes to meet their unique needs, but the documents should provide a solid initial foundation.

You can find these detailed referenced models (all level1, 2 & 3) at My Oracle Support for following applications:

• Retail Merchandising System – RMS
• Retail Invoice Matching – ReIM
• Retail Sales Audit – ReSA
• Retail Price Management – RPM
• Retail Trade Management – RTM
• Retail Allocations
• Retail Demand Forecasting - RDF
• Retail Merchandise Financial Planning - MFP
• Retail Store Inventory Management System - SIM
• Retail Point of Service - POS
• Retail Back Office - BO
• Retail Central Office - CO
• Retail Markdown Optimization – MDO
• Retail Size Profile Optimization – SPO
• Retail Macrospace Management – MSM
• Retail In-Store Space Collaboration – ISSC
• Retail Warehouse Management System – WMS
• Retail Advanced Inventory Planning – AIP
• Retail Item Planning - IP
• Retail Item Planning with Clearance Optimization – COE
• Retail Returns Management - RM
• Retail Regular Price Optimization - RPO
• Retail Assortment Planning - AP
• Retail Replenishment Optimization - RO
• Retail Fiscal Management - RFM

This was all about understanding the high-level overview of Oracle Retail MOM Applications, integrations between all its applications and the Oracle Retail Reference Model. 

In next article. we are going to dive more in Oracle Retail Merchandising Systems and understand about Location Management under RMS foundations. 

You may also want to refer to parent article Oracle Retail Merchandising Systems - Deep Dive. Do drop a note/comment in case you have any question, comments or feedback. 

Note: source of images are Oracle/Google

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About Nagesh Mishra

Nagesh Mishra - A Passionate Oracle Retail Certified Professional with more than 17 years of overall experience in IT industry and more than 15 years of domain expertise in Oracle Retail Applications. Worked extensively in diversified fields of Product Implementation, Business Consulting, Pre-Sales, Application Software Development, Maintenance and Support and Re-Engineering Oracle Retail projects.