Oracle Retail

An Introduction
By
Rasheed Abdul
rasheedmit@gmail.com

Mahindra Satyam 2010

Oracle Retail introduction

What is Retail
Who is Retailer
History of Retailing
Role of a Retailer
Retail formats
Why Oracle Retail
Oracle Retail Suite introduction
Oracle Retail high-level Architecture
Common Retail Business terms
Competitive Landscape
ORMS at a glance

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RETAIL BASICS

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What is Retail

The business activities involved in selling goods and services to consumers for their
personal or household use comes under the sector called Retail.
The Retail includes every sale of goods and services to the final consumer.

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Who is Retailer

A retailer is someone or a business that sells products and services to the consumers
for their personal and family use.
The Retailers are the final link between consumers and manufacturers.

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History of Retailing

Apart from traditional exchange of goods among

people, in the mid of 19 th century certain
department stores established.

During 1860s 1910s general stores like J.C

Penny and food chains like Kroger and Atlantic &
Pacific were set up.

The 1820s 1920s saw the emergence of mail

orders and catalogs from retailers like Sears and LL
Bean.

The 1930s 1960s saw supermarkets, planned

shopping centers and discount store being set up.
This was the period when Walmart, Kmart and
Target were set up.

The 1980s 2000s was when retailing formats

changed drastically from the traditional formats. Eretailing and TV became popular modes of retailing
during this period.

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Role of a Retailer
The Retailer has several distinct roles to play

Providing Assortments

Breaking Bulk

Providing Services

Holding Inventory

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RETAIL FORMATS

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Retail Formats
There are several retail formats that exists today and the below are most common ones.

Ownership

Store based

Services Vs goods

Non store

Ownership
These retailers are classified based on their ownership of the store. Ownership can be
different types.
1. Independent (Any independent business runs on Owner over-dependency)
2. Chain (Amway)
3. Franchise (McDonalds, Subway)
4. Lease department (Starbucks, Noble)
5. Vertical marketing system (Apple)
6. Consumer cooperative (Ace Hardware, Margin free)
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Retail Formats (contd.)

Store based
The retail stores are categorized into two main types of stores Food stores and
General merchandise stores
Food Store retailers
Food store retailers focus mainly on food products such as ready to eat products and
food preparation items. Some of these retailers are
1. Convenience store (7 eleven)
2. Conventional Supermarket (Kroger, Hannaford)
3. Combined store (Food & drug)
4. Warehouse store (Sams club, Costco)

General merchandise stores

General merchandise retail stores sell a variety of merchandise, some format are
1. Full line discount store (Walmart)
2. Membership club (Costco)
3. Factory outlet (Adidas, Polo)
4. Traditional department store (J.C Penny, Nordstrom)
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Retail Formats (contd.)

Services Vs goods
Retail business also include service providers, like hotels, hair saloons etc. Transactions
takes place between service providers and customers where customer does not
purchase or acquire ownership of a tangible product.
Service retailing is of three types
1. Rented goods
2. Own goods
3. Non goods

Non Store Retailing

Retailing that takes place outside a retail outlet is known as non-store retailing. There are
variety of non-store retail formats.
1. Vending machines
2. Web based retailing
3. Home shopping
4. Catalogues
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ORACLE RETAIL

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Why Oracle Retail

To meet the customer satisfaction and to run the business in profitable margin, there
are lot of activities involved in retail business. Few of such activities are:
1. Product management
2. Order management
3. Inventory management
4. Planning
5. Market analysis
6. Price management
7. Customer support
8. Supply chain management
9. Sales forecasting
10. GL / Finance Accounting
All, in fact more than the above said activities are efficiently performed through Oracle
Retail product suite. The Oracle Retail product suite is especially and dedicatedly
designed to run the retail operations effectively.
Sources says that there are lot of activities that the Oracle Retail suite can perform
and not available in other retail applications such as SAP, JDA etc.
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Introduction to Oracle Retail Suite

The Oracle Retail ERP Suite has wide range of applications to perform the retail
business operations. The majorly used applications among that wide range can be
classified into 3 categories.
1. MOM (Merchandise Operations Management)
2. SCM (Supply Chain Management)
3. ISO (Integrated Store Operations)
MOM (Merchandise Operations Management)
The MOM comprises of certain crucial applications such as
ORMS Oracle Retail Merchandising System
Primarily supports Item / Product, Order, Inventory, Deals management and
the complete stock details to General Ledger.

posts

ORPM Oracle Retail Price Management

Primarily deals with Pricing, Promotions, Clearance activities.
OReSA Oracle Retail Sales Audit
Gathers sales information, audit and pass to ORMS and General Ledger.

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Introduction to Oracle Retail Suite (contd.)

OReIM Oracle Retail Invoice Matching
Matches supplier sent invoice with actual goods received and posts results
to Accounts Payable.
ORIB Oracle Retail Integration Bus
Integration system talks to different applications by subscribing / publishing
XML messages.
SCM (Supply Chain Management)
The SCM mainly consists of Warehouse management and certain supplier activities.
ORWMS Oracle Retail Warehouse Management System
The WMS is responsible for receiving the goods from the Supplier into the
warehouse and dispatching them to the stores. The terms such as ASN,
BOL, SHIPMENT etc evolved in this area of retail functionality.

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Introduction to Oracle Retail Suite (contd.)

ISO (Integrated Store Operations)
The ISO is a set of retail store applications to manage the store operations effectively.
This can also be named as 360 commerce applications.
ORPOS Oracle Retail Point Of Sale
The application used by the store sales team to handle item sales, returns

etc.

ORBO Oracle Retail Back Office

This application is mainly responsible for generating log file of the store
operations performed regularly.
ORCO Oracle Retail Central Office
This is the central application of ISO managed by the store manager to
sales and to generate reports whenever necessary. The sales history will be
maintained here for certain period.

track

ORSIM Oracle Retail Store Inventory Management

SIM manages the inventory levels at store line. Also, creates store orders if
necessary.

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Oracle Retail high-level Architecture

Invoice details

ReIM

Supplier and payment terms etc. info

RMS
(ReSA)

Finance
(GL / AP)

RPM

Pricing,
Promotion,
Clearance info

Store operations (RT Log file)

PO creation details

Pricing,
Promotion,
Clearance info

Supplier

RIB tables
Store orders

GL postings from ReSA, RMS

PO EDI file

ASN, Shipment

Receipt,
Shipment info

ASN, Receipt/Shipment

Invoice posting
To AP

RIB tables

RIB tables

ISO/SIM

RWMS

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Common Retail business terms

SKU:

Stock Keeping Unit is a business term used to represent an ITEM

Buyer:

Referred as a Merchandiser/Retailer and is responsible to monitor the business need and act accordingly

Supplier:

Referred as a Vendor/Manufacturer who supplies goods to the Warehouse / Store

Store:

A place where a customer can reach for purchasing goods for his / her need

Warehouse: Referred as Distribution Center where the goods can be stocked and moved to stores when needed
Customer:

Who buys the goods from the retailer for usage

Consumer: Who uses the purchased goods, most of the times customer and consumer referred same
PO:
Purchase Order is a requisition process of goods in the stores, it is raised by the retailer and
communicated to the Supplier.
Inventory:

A process of monitoring and managing the stock levels in the stores.

Transfer:
Process of movement of goods from one location to another, the location can be either store or
warehouse.
Allocation: Allocation is a process of movement of goods from warehouse to a chain of stores. Usually, the allocation
will be done when there is a need of goods fulfillment in the stores in respective seasons.
Deal:

Its an agreement between retailer and vendor for supplying the goods at a cost less than the market price.

Replenishment:

Its a process of fulfillment of the stock by raising purchase orders automatically when the stock levels are
going below a certain limit.

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Competitive Landscape
Merchandising/
Enterprise
Merchandise
Planning &
Optimization
Inventory
Planning &
Optimization

Stores &
Order Mgmt

WMS

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ORMS at a glance

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ORMS at a glance
Oracle Retail Merchandising System is the central part of Oracle Retail suite. To say the importance of this application,
people often remember ORMS as Oracle Retail.
ORMS application front-end is built on Oracle PL/SQL and forms & reports technology. The best concepts from this
technology has been used in development of ORMS. The base ORMS has pre-designed libraries that can be used in
developing any new screens for ORMS with minimal and organized coding.
ORMS Logon:

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ORMS at a glance (contd.)

RMS Start Menu

Menu bar

Tool bar Holds some

special actions such as
Reports etc.

Content pane Double click

on any action may open
another window related to it
and can posses certain
other options.

Folder pane Hitting any

item from this pane lists the
actions/commands in the
adjacent content pane.
May open a window
related to the option
chosen from any of the
two panes.

Searching It is an easy find option. Just type the action name that
you are searching for and hit search forward/backward buttons. You
will be navigated to the respective action.

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ORMS at a glance (contd.)

Exit ORMS:

Exists RMS
application, make
sure saving your
work!

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Q&A

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Thank You
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