AI Agent Enablement in Oracle Fusion Procurement

                     Configuration | Architecture | Business Value

                    What is AI in Oracle Fusion Procurement?

Embedded AI Capabilities:

Intelligent Document Recognition (IDR)

Autonomous Sourcing

Supplier Recommendations

Spend Classification

Generative AI (OCI + AI Studio)

  Types of AI Agents in Procurement

Requisition Advisor AI:

Supplier & Category Suggestions

Price Prediction & Contract Leakage Alerts

Autonomous Sourcing AI: PR to RFQ Automation

Invoice AI (IDR): Auto Data Extraction & Matching

Prerequisites Before Enabling AI

 Prerequisites Before Enabling AI

Latest Fusion Quarterly Update

Procurement & Sourcing Modules Enabled

6–12 Months Historical PO Data

Clean Supplier Master Data

Structured Categories & Approval Workflows

Step 1: Enable AI Features

Navigation: Setup & Maintenance → Procurement

Enable Intelligent Document Recognition

Enable Supplier Recommendation

Enable Smart/Autonomous Sourcing

Enable Generative AI (if licensed)

Step 2: Configure Data for AI Learning

Approved Supplier List (ASL) Setup

Closed PO & Negotiation History

Accurate Category Hierarchy

Supplier Performance Data

Step 3: Enable Autonomous Sourcing

Navigation: Setup → Sourcing Configuration

Define Negotiation Style

Configure Supplier Eligibility Rules

Enable Auto Publish (Optional)

Test with Category-Based Requisition

Step 4: Enable Generative AI Agent

Create Agent in Oracle AI Studio

Connect Procurement Subject Areas

Integrate via REST APIs

Deploy in Redwood Procurement UI

  Security & Compliance

Role-Based Access Control (RBAC)

Encrypted Data Transmission

Secure Supplier Portal Access

OCI Data Isolation

Full Audit Trail Tracking

 Testing & Validation Checklist

Create Item-Based & Category-Based PR

Validate Supplier Recommendation

Validate Price Prediction

Validate Auto RFQ Creation

Review AI Confidence Score

 Common Issues & Debug Steps

No Supplier Recommendation → Check PO History

AI Not Triggering → Verify Feature Enablement

Wrong Supplier Suggested → Check Category Mapping

RFQ Not Auto-Created → Verify Configuration

 Business Benefits

Faster Sourcing Cycle

Reduced Manual Effort

Improved Supplier Selection

Cost Optimization

Data-Driven Procurement Decisions

ROI Impact

30–50% RFQ Cycle Reduction

Improved Supplier Competition

Better Contract Compliance

Reduced Maverick Spend

 Demo Flow for Client Presentation

Create Requisition

Show AI Supplier Suggestion

Auto Convert PR to RFQ

Demonstrate Auto Scoring

Award Supplier & Review Audit Trail

Future Roadmap

Conversational Procurement AI

Predictive Price Forecasting

AI-Based Supplier Risk Scoring

Fully Autonomous Negotiation

 

The Use of AI in Oracle Fusion Maintenance and Manufacturing

Artificial Intelligence (AI) is transforming how organizations manage maintenance operations and manufacturing processes. In Oracle Fusion Cloud (SCM), AI is embedded across Maintenance, Manufacturing, Inventory, Procurement, and Supply Chain Planning to enhance decision-making, improve efficiency, and reduce operational risks.

For organizations implementing Oracle Fusion Maintenance and Manufacturing, AI is not just a futuristic concept — it is already integrated through predictive analytics, machine learning models, automation, and intelligent recommendations.

This article explains how AI is used in:

• Oracle Fusion Maintenance

• Oracle Fusion Manufacturing

• Practical Use Cases

• Business Benefits

• Implementation Considerations

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1. AI in Oracle Fusion Maintenance

Oracle Fusion Maintenance (Enterprise Asset Management) uses AI and Machine Learning to improve asset reliability, reduce downtime, and optimize maintenance cost.

1.1 Predictive Maintenance

Traditional maintenance models:

• Reactive (fix after failure)

• Preventive (time-based maintenance)

AI introduces:

• Predictive Maintenance

Using IoT sensor data and historical maintenance data, AI models predict:

• Asset failure probability

• Remaining useful life (RUL)

• Risk-based prioritization of work orders

Example:

If a production machine vibration level exceeds historical patterns, AI predicts potential bearing failure and automatically:

• Generates a work request

• Suggests spare parts

• Recommends technician skill set

This reduces unplanned downtime and emergency repairs.

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1.2 Intelligent Work Order Prioritization

AI analyzes:

• Asset criticality

• Failure history

• Production impact

• Safety risks

It can recommend:

• Which work order should be prioritized

• Which technician should be assigned

• Expected completion time

This helps maintenance managers make data-driven decisions rather than manual judgment.

---

1.3 Spare Parts Optimization

AI integrates with Inventory and Supply Planning to:

• Predict spare part consumption

• Optimize min-max levels

• Reduce excess inventory

• Avoid stockouts for critical components

For example:
If a compressor shows high failure frequency in last 6 months, AI increases recommended stocking level for its repair kit.

---

1.4 Failure Pattern Analysis

AI identifies patterns such as:

• Repeated breakdowns after preventive maintenance

• Supplier-specific spare quality issues

• Seasonal performance degradation

This enables root cause analysis and continuous improvement.

---

2. AI in Oracle Fusion Manufacturing

In Manufacturing, AI improves production efficiency, quality control, scheduling, and cost optimization.

---

2.1 Smart Production Scheduling

AI-driven planning considers:

• Resource capacity

• Machine availability

• Maintenance schedule

• Material availability

• Demand forecast

It can automatically recommend:

• Optimal production sequence

• Bottleneck mitigation

• Overtime planning

Example:
If a work center is overloaded, AI suggests load balancing across alternate resources.

---

2.2 Quality Prediction & Defect Reduction

AI analyzes:

• Historical production data

• Quality inspection results

• Supplier quality trends

• Operator performance

It predicts:

• Probability of defects

• High-risk batches

• Process deviations

Manufacturers can intervene early to avoid rework and scrap.

---

2.3 Automated Work Definition Optimization

AI can analyze:

• Production lead time

• Resource utilization

• Operation performance

It may recommend:

• Reducing operation steps

• Changing resource allocation

• Optimizing routing sequence

This helps improve overall equipment effectiveness (OEE).

---

2.4 Real-Time Manufacturing Intelligence

Through IoT + AI:

• Monitor machine performance

• Track downtime causes

• Detect abnormal production behavior

If production rate drops below historical benchmark:

• AI alerts supervisor

• Suggests probable root cause

---

3. AI Across Maintenance and Manufacturing Integration

The real power comes when Maintenance and Manufacturing are connected.

Example Scenario:

1. AI predicts asset failure.

2. Maintenance work order is generated.

3. Manufacturing schedule is automatically adjusted.

4. Supply planning recalculates production commitments.

5. Procurement triggers spare part replenishment.

This creates a self-adjusting intelligent supply chain system.

---

4. AI-Driven Automation in Oracle Fusion

Oracle Fusion Cloud uses embedded AI for:

4.1 Intelligent Document Recognition (IDR)

• Automatically processes supplier invoices.

• Reduces manual AP effort.

4.2 Smart Approvals

• Suggests approval routing.

• Identifies unusual transactions.

4.3 Chatbots & Digital Assistants

• Maintenance technicians can:

  • Ask asset history

  • Check work order status

  • Report issues via voice

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5. Business Benefits of AI in Maintenance & Manufacturing

Organizations achieve:

1. Reduced Downtime

Predictive maintenance prevents breakdowns.

2. Lower Maintenance Cost

Optimized spare inventory and better planning.

3. Improved Asset Life

Condition-based maintenance increases asset lifespan.

4. Higher Production Efficiency

Better scheduling and resource utilization.

5. Improved Quality

AI-based defect prediction reduces scrap.

6. Better Decision Making

Real-time dashboards and predictive insights.

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6. Implementation Considerations

As an Oracle Fusion Consultant, while implementing AI-driven capabilities, consider:

6.1 Data Quality

AI depends on:

• Clean asset master

• Accurate work order history

• Correct failure codes

• Proper item and serial tracking

Without structured data, AI models produce weak results.

---

6.2 Integration with IoT

For predictive maintenance:

• Machine sensors must be integrated

• Data collection frequency must be defined

• Exception thresholds must be configured

---

6.3 Business Process Readiness

AI improves decisions, but:

• Approval cycles must support automation

• Maintenance strategy must shift from reactive to predictive

• Users must trust system recommendations

---

6.4 Security & Governance

• Control AI-driven automation

• Maintain audit trails

• Validate recommendations before auto-execution

---

7. Future of AI in Oracle Manufacturing & Maintenance

Emerging capabilities include:

• Generative AI for troubleshooting guidance

• AI-driven simulation of production scenarios

• Automated root cause explanation

• Digital twins of manufacturing plants

• Voice-based maintenance reporting

Oracle Cloud updates (quarterly releases like 25A, 25B, 25C, etc.) continuously enhance embedded AI capabilities.

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Conclusion

AI in Oracle Fusion Maintenance and Manufacturing is not just about automation — it is about intelligent optimization.

By combining:

• Predictive analytics

• Machine learning

• IoT integration

• Automated workflows

Organizations can move from reactive operations to a data-driven, proactive, and self-optimizing manufacturing ecosystem.

For consultants and implementation teams, the key success factors are:

• Strong data foundation

• Process alignment

• Cross-module integration

• Continuous improvement mindset

AI is no longer optional in modern manufacturing — it is becoming a competitive necessity

     Preventive Forecast in Oracle Fusion Maintenance Program

Preventive Forecast in Oracle Fusion Maintenance is a planning and analytical capability that helps maintenance planners predict upcoming preventive maintenance (PM) activities based on predefined maintenance programs, asset usage, and calendar-based schedules. It enables organizations to proactively plan labor, materials, and downtime before failures occur.

Purpose of Preventive Forecast

The main objective of the preventive forecast is to:

• Anticipate future maintenance work orders
• Reduce unplanned breakdowns
• Optimize resource and spare parts planning
• Improve asset availability and reliability
• Support maintenance budgeting and capacity planning

Instead of reacting to failures, organizations can act proactively using forecasted maintenance demand.

How Preventive Forecast Works

Oracle Fusion Maintenance uses Maintenance Programs to generate forecasts. These programs define when and how preventive maintenance should occur.

1. Maintenance Programs

A maintenance program is assigned to one or more assets and includes:

• Maintenance activities
• Scheduling rules (time-based or usage-based)
• Effective dates and intervals

2. Forecast Generation Logic

The system evaluates:

• Asset installation date
• Last maintenance execution date
• Usage readings (meter-based assets)
• Calendar schedules

Based on this data, Oracle Fusion calculates future due dates for preventive maintenance activities.

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Types of Preventive Forecasts

1. Time-Based Forecast

Maintenance is triggered based on:

• Days
• Weeks
• Months
• Years

Example:
Inspect an air compressor every 30 days.

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2. Usage-Based Forecast

Maintenance is triggered based on:

• Meter readings (hours, cycles, kilometers, etc.)

Example:
Service a generator every 500 operating hours.

---

3. Combined Forecast

Uses both time and usage rules, and the earliest due condition triggers maintenance.

Example:
Perform maintenance every 6 months or 1,000 hours, whichever occurs first.

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Output of Preventive Forecast

The preventive forecast provides visibility into:

• Upcoming preventive work orders
• Estimated maintenance dates
• Required resources and materials
• Maintenance workload by asset or organization

This forecast helps planners decide when to release work orders and what resources are needed.

 

Detailed Step-by-Step Process for Creating Maintenance Programs

The Following Program Contain Weekly ,Biweekly and Monthly 

Click on Task and Click on Manage Maintenance Program

Click  on Create Program 

Enter all Require information 

Click on Save and Close

Program is Create and Click and Open 

Click on Work Requirement 

Weekly oil Change Plan 

Click on Create 

Enter all the Require information 

Create Weekly Calendar and Select 1 day as Sunday  

Add Work Definition and Enter 1 Cycle  

                By weekly Air Filter Work Order Creation 

Enter all Require  information 

Select Work definition and Enter cycle 2 because we want Create work order in 2nd week 

   Create a work order for air filter replacement and oil change on the same day, every four weeks, upon completion of each four-week cycle.

Enter all information

Select Concurrent Requirements Override Because we want Select merge to Create both 

Work order in same day 

Select work definition and Enter 4 cycle  

Click on save and Close

All The Plan is Created 

Now we Create Forecast 

Click on on ACTION 

Click  on Generate Forecast 

Forecast is Created

Work Order is Create 

    How can Redwood Inventory be enabled in Oracle Fusion                                                   Cloud?

Here’s the step-by-step way to enable Redwood inventory functionality in Oracle Fusion Cloud Inventory Management — based on the official Oracle documentation for Redwood features (the new modern UI experience in Fusion SCM):

Step 1

Click on Global Search and enter 

Manage Administrator Profile  and Click on Search 

Step 2

Please Enter %Item%Quant% Click on Search

Select Yes on Site level

Same like the above Please enable the below Profile task one by one 

Redwood Physical Inventories

ORA_INV_PHYSICAL_INVENTORIES_REDWOOD_ENABLED

Inventory Management Landing Pag

ORA_INV_INVENTORY_MANAGEMENT_LANDING_PAGE_REDWOOD_ENABLED

Inventory Transactions from Item Quantities

ORA_INV_VIEW_ITEM_QUANTITIES_REDWOOD_ENABLED

Step 3

Inventory Management Landing Pag

ORA_INV_INVENTORY_MANAGEMENT_LANDING_PAGE_REDWOOD_ENABLED

 Date 03-DEC-2025

How AI Is Transforming Oracle Fusion SCM Cloud: A  Complete Guide

Artificial Intelligence (AI) is reshaping modern supply chains, and Oracle Fusion SCM Cloud is at the forefront of this transformation. With built-in machine learning, predictive analytics, and automation capabilities, Oracle SCM Cloud helps organizations streamline operations, improve decision-making, and enhance customer satisfaction. As supply chains become more complex, AI in Oracle Fusion SCM Cloud offers the intelligence needed to stay ahead of disruption and build long-term resilience.

1. Smarter Demand Planning and Forecasting

AI-powered forecasting in Oracle Demand Management Cloud analyzes historical trends, market signals, seasonal patterns, and real-time data to generate accurate demand predictions. These insights help businesses reduce stockouts, minimize excess inventory, and improve service levels. AI continuously learns from new data, making forecasts more reliable over time.

2. Optimized Inventory and Warehouse Operations

Oracle Fusion SCM Cloud uses machine learning to recommend optimal inventory levels, safety stock, and replenishment strategies. AI-driven insights help avoid overstocking and understocking while maximizing warehouse efficiency. Intelligent automation also assists in managing picking, replenishment, and warehouse labor allocation.

3. Intelligent Procurement and Supplier Collaboration

In Oracle Procurement Cloud, AI simplifies sourcing and purchasing by automating supplier qualification, predicting supplier risks, and suggesting the best sourcing strategies. Intelligent algorithms analyze supplier performance, pricing trends, and delivery reliability, enabling procurement teams to make informed decisions faster.

4. Enhanced Order Management and Fulfillment

AI improves the entire order-to-cash process by predicting promising dates, identifying potential fulfillment bottlenecks, and recommending optimal shipping methods. With intelligent order orchestration and real-time insights, companies can improve customer experience while reducing fulfillment costs.

5. Predictive Maintenance and Manufacturing Optimization

Oracle Manufacturing Cloud integrates AI to detect machine failures before they occur. Predictive maintenance helps reduce downtime, extend equipment life, and optimize production scheduling. AI also identifies process inefficiencies and provides recommendations to improve throughput and quality.

6. Risk Management and Supply Chain Resilience

AI in Oracle Fusion SCM Cloud analyzes global events, supplier disruptions, logistics delays, and market volatility to provide early-warning alerts. This allows organizations to take proactive actions such as reallocating supply, adjusting orders, or shifting production strategies.

7. Automation of Routine Tasks

AI-powered automation reduces manual work across procurement, planning, logistics, inventory, and manufacturing. Tasks such as approvals, data entry, exception handling, and anomaly detection become faster and more accurate, freeing teams to focus on strategic initiatives.

Conclusion

AI is no longer optional for modern supply chains—it is essential. Oracle Fusion SCM Cloud leverages powerful AI and machine learning capabilities to create an intelligent, data-driven, and highly automated supply chain ecosystem. From forecasting and procurement to fulfillment and manufacturing, AI helps organizations become more efficient, resilient, and customer-focused.

As AI continues to advance, Oracle Fusion SCM Cloud will play a key role in enabling autonomous supply chains that adapt quickly, learn continuously, and deliver outstanding performance.

  AI in Oracle Fusion SCM Cloud Task List

    What is a Clause in Oracle Fusion Procurement, and how can it be configured?

  A Clause is a term or condition that can be created and reused in Oracle Fusion Contracts. It helps standardize the language and rules used in different contracts, making the process faster, more consistent, and compliant with company or legal requirements

Click  on Contract Management 

Click on Term Library

Click on Create Clause 

Enter all the information below and click on Save 

Enter The Clause Detail

Enter Instruction 

Click on Action and click on Submit for approval

Click on OK

Click on the Bill Icon and go to more tasks

Click on approve

Following the Configured Clause

 Date 11-jul-2025

  How can we hide the Create Supplier button from the Supplier page in Oracle Fusion?

To remove the 'Create Supplier' task or any other related tasks from the Classic User Interface (UI) on the Supplier page in Oracle Fusion, you can use a sandbox. This is done through the standard personalization method, where tasks can be hidden or removed from the UI by customizing the page components. The same method applies for removing any task in the Supplier work area

(I)  Click on the "Name"

(II) Click on the "Edit Global Page Template"

(i) Enter Send Box Name 

(ii) Select all tasks

(iii) Click on Create and  Sendbox

Note

If you don't know which task to use for which purpose, then select all

Send BOX is enabled

Sendbox is shown in Yellow Color at the top of the window

Goto home 

(i) Select, Click on "Procurement "

(iii) Click on "Suppliers" 

Click on "Name"

Click Edit Page

(i) Click on "Tool"

(ii) Select "Structure"

Click on "Procurement" to expand 

Click on "Supplier"

Click on "Penal Tabs"

Click on "Task" to Expand 

Click on Create Supplier

((i) Select "Visible No from LOV"

(ii) Click on "Save and Close"

                                 SendBox Publish 

(i) Click on "Create Supp"

(ii) Select "Publish"

Click on "Yes"

(i) Click on "Create Supp"

(ii) Select "leave Sendbox"

Click on Yes

Log out and Log in 

Click On "Suppliers"

In the Following Screen, the Create Supplier is hidden 

In the Same way, you can hide any Task 

Thank