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Tuesday, August 1, 2017

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Oracle Retail Merchandising System (RMS) - Organizational Hierarchy

Organizational Hierarchy in RMS

The organizational hierarchy allows you to create the relationships that are necessary in order to support the operational structure of a company. You can create a preferred organizational structure to support consolidated reporting at various levels of the company. Also, you can assign responsibility for any level of the hierarchy to a person or persons in order to satisfy internal reporting requirements.
The following default levels are used within RMS:

Company:
          Highest level of the organizational and merchandise hierarchy
          Only one company per instance can be defined.
          Shared by both the organizational and merchandise hierarchies


Chain:
          The first level below the company level in the organizational hierarchy.
          The definition of a chain is based on the needs of the company, but a chain can be used to group various store formats, concepts, and geographical locations within the organization.
          Typically used to distinguish brands or trading names within a company
          The application allows up to a ten digit id
          Chain attributes:
          Description (free form text)
          Manager name (free form text)
          Currency (used for reporting)



Field
Required
Functionality
Chain ID
Yes
Unique numeric ID assigned to a Chain, up to 10 digits.
Chain Name
Yes
Name used to best describe the Chain.
Manager Name
No
Identifies the Manager assigned to the Chain.
Currency Code
No
This field contains the currency code under which the Chain operates.

Area:
          The second level below the company level in the organizational hierarchy.
          The definition of an area is based on the needs of the company, but an area is used typically to define a geographical group within a chain
          Typically used to define a geographical grouping within a chain
          An area will only belong to one chain
          The application allows up to a ten digit id
          Area attributes:
          Description (free form text)
          Manager name (free form text)
          Currency (used for reporting)
          Location traits



Field
Required
Functionality
Area ID
Yes
Unique numeric ID assigned to a Chain, up to 10 digits.
Area Name
Yes
Name used to best describe the Area.
Manager Name
No
Identifies the Manager assigned to the Area.
Currency Code
No
This field contains the currency code under which the Area operates.
Chain ID
Yes
Contains the ID of the Chain of which the Area is a member.
Region:
          The third level below the company level in the organizational hierarchy.
          The definition of a region is based on the needs of the company, but a region can be used to group geographical locations within an area
          A region will only belong to one area
          The application allows up to a ten digit id
          Region attributes:
          Description (free form text)
          Manager name (free form text)
          Currency (used for reporting)
          Location traits

Field
Required
Functionality
Region ID
Yes
Unique numeric ID assigned to a Region, up to 10 digits.
Region Name
Yes
Name used to best describe the Region.
Manager Name
No
Identifies the Manager assigned to the Region.
Currency Code
No
This field contains the currency code under which the Region operates.
Area ID
Yes
Contains the ID of the Area of which the Region is a member.

District:
          The fourth level below the company level in the organizational hierarchy.
          The definition of a district is based on the needs of the company, but a district is used typically to group geographical locations within a region
          One district will only belong to one region
          The application allows up to a ten digit id
          District attributes:
          Description (free form text)
          Manager name (free form text)
          Currency (used for reporting)
          Location traits
Field
Required
Functionality
District ID
Yes
Unique numeric ID assigned to a District, up to 10 digits.
District Name
Yes
Name used to best describe the District.
Manager Name
No
Identifies the Manager assigned to the District.
Currency Code
No
This field contains the currency code under which the District operates.
Region ID
Yes
Contains the ID of the Region of which the District is a member.
Channel:
A channel grouping mechanism for a multi-channel environment. You can associate a channel with a location when you create or edit a store or virtual warehouse.
Channel ID’s are not considered part of the Organizational Hierarchy; they are an Attribute of the Hierarchy.

The multi-channel business structure is :
          Combination of brick and mortar stores, websites and catalog sales channels
          New channels on the horizon: kiosks in stores or airports, palm pilots, web-enabled phones, etc. 
          Retailers need to track the profitability of each channel. 
         To support profitability metrics, sales and inventories must be isolated by channel 
         RMS supports the segregation of sales and inventory by channel for both stores and warehouses
         RDW allows for reporting at the channel level

What makes an RMS installation multi-channel?
          System variable: retailer either is or is not multi-channel
          If there is any possibility multi-channel will be used, should be set up at install
          If install is multi-channel, a channel must be selected for each store and warehouse, BUT can be changed over time.

Do let me know if you have any questions or need any additional information about organization hierarchy in RMS. You may also want to refer to parent article Oracle Retail Merchandising Systems - Deep Dive for the complete details on RMS. Do drop a note/comment in case you have any question, comments or feedback. 

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.

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