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How Oracle VCP and DRP Help in Driving the Correct Load with OTM?

How Oracle VCP and DRP Help in Driving the Correct Load with OTM

Have you ever wondered how your package is delivered to you at the right time and at the right location? Well, there’s a lot that goes into it, from planning the routes to managing the inventory, and it all starts with a software application called Oracle VCP.

VCP stands for Value Chain Planning, and it’s a suite of applications that helps companies plan their supply chain operations effectively. One of the critical applications within VCP is DRP, which stands for Distribution Requirement Planning. DRP helps companies plan their inventory and distribution requirements based on demand forecasts and existing stock levels.

But how does DRP help in driving the correct load? Well, once the inventory and distribution requirements are determined, the information is passed on to Oracle Transportation Management (OTM) for further action. OTM is responsible for planning the transportation routes and ensuring that the right load is shipped to the right location at the right time.

However, OTM alone cannot ensure efficient supply chain management. That’s where VCP comes in. VCP recommends the correct signals and quantities required for a shipment, considering all the real constraints. This information is then passed on to OTM to plan the routes and ensure that the correct load is delivered.

Without VCP, OTM can plan routes, but with VCP’s recommendations, it can do wonders. The approach is flexible and doable, as it takes into account all the real constraints like lead time, transportation cost, and more.

In conclusion, driving the correct load is a crucial aspect of supply chain management, and it’s only possible with the help of applications like VCP and OTM. While OTM is responsible for planning the transportation routes, VCP ensures that the correct signals and quantities are recommended to drive the correct load. So, the next time you receive a package on time, remember the technology and applications that made it possible!