Top 30 Interview Questions for Oracle Fusion SCM Professionals
Oracle Fusion Supply Chain Management (SCM) is one of the most sought-after skills in today’s enterprise technology landscape. If you are preparing for a role in Oracle Fusion SCM, it’s essential to be ready for technical, functional, and scenario-based questions.
Below is a curated list of the top 30 interview questions for SCM professionals, designed to help you excel in interviews.
1. What is Oracle Fusion SCM?
A: Oracle Fusion SCM is a comprehensive suite of supply chain management applications in Oracle Cloud. It integrates procurement, inventory, order management, costing, and manufacturing to optimize business processes.
2. What are the key modules in Oracle Fusion SCM?
A: Key modules include Procurement, Inventory, Order Management, Manufacturing, Product Lifecycle Management (PLM), and Costing.
3. What is the difference between Oracle EBS SCM and Oracle Fusion SCM?
A: Oracle Fusion SCM is cloud-based, provides real-time analytics, and has modern UI and integration capabilities, whereas EBS is on-premise with limited scalability.
4. Explain the procurement process in Oracle Fusion SCM.
A: The procurement process includes requisition creation, approval, purchase order creation, receipt, and invoice processing, ensuring efficient vendor management.
5. What is the role of inventory management in Oracle Fusion SCM?
A: Inventory management tracks stock levels, manages transfers, monitors item costs, and ensures materials are available for production and sales.
6. What is a supply chain network in Oracle Fusion SCM?
A: It is a configuration of organizations, sites, and intercompany relationships that defines how goods, services, and information flow across the business.
7. What are the different costing methods available?
A: Standard Costing, Average Costing, FIFO, and LIFO are supported in Oracle Fusion Cost Management to determine inventory value and product costs.
8. How does Oracle Fusion SCM handle demand management?
A: It uses forecasting, planning, and replenishment tools to ensure that supply meets demand efficiently.
9. Explain the role of Oracle Fusion Order Management.
A: Order Management automates sales order processing, pricing, fulfillment, and invoicing for a seamless customer experience.
10. What is the purpose of procurement contracts in Oracle Fusion SCM?
A: Procurement contracts define terms with suppliers, helping organizations standardize purchasing, control costs, and ensure compliance.
11. How are suppliers managed in Oracle Fusion SCM?
A: Suppliers are maintained through supplier registration, qualification, approval, and performance monitoring.
12. What is a purchase requisition?
A: A purchase requisition is a request to procure goods or services internally before creating a purchase order.
13. What are approval workflows in Oracle Fusion SCM?
A: Approval workflows ensure that all procurement, inventory, and order transactions go through defined business rules before execution.
14. Explain the difference between internal and external procurement.
A: Internal procurement sources goods/services within the organization, whereas external procurement involves vendors outside the organization.
15. What are supply chain planning tools in Oracle Fusion?
A: Tools like Demand Planning, Supply Planning, and Replenishment Planning help optimize inventory levels and meet customer demand.
16. How does Oracle Fusion SCM integrate with other modules?
A: SCM integrates with Finance, HCM, and Project Management to ensure seamless flow of information across business processes.
17. What is the significance of costing in Oracle Fusion SCM?
A: Costing helps determine product profitability, control inventory value, and make informed pricing decisions.
18. How do you handle intercompany transactions?
A: Intercompany transactions manage transfers of goods/services between legal entities within the same organization, ensuring proper accounting.
19. What are key reports in Oracle Fusion SCM?
A: Inventory Reports, Procurement Reports, Cost Analysis Reports, and Order Management Reports provide insights into supply chain performance.
20. How do you track purchase orders in Oracle Fusion SCM?
A: Through Purchase Order Inquiry, Status Tracking, and Approval Workflows, users can monitor orders end-to-end.
21. What is the difference between subinventory and locator?
A: Subinventory is a logical division of inventory, whereas locator is a physical location within a subinventory.
22. How is a purchase order matched to an invoice?
A: Oracle Fusion supports three-way matching between purchase orders, receipts, and invoices to ensure accuracy in payments.
23. What is the role of item master in SCM?
A: The item master stores all product-related information including descriptions, units of measure, cost, and sourcing rules.
24. Explain the difference between standard and blanket purchase orders.
A: Standard POs are for one-time purchases, whereas blanket POs are for recurring purchases over a period with agreed terms.
25. What is the process for receiving goods in Oracle Fusion?
A: Goods are received via Receiving Transactions, matched to purchase orders, and inventory is updated.
26. How do you handle backorders in Oracle Fusion SCM?
A: Backorders are managed through order promises, rescheduling, and priority-based allocation to meet customer demand.
27. What is the role of supply chain collaboration?
A: Collaboration with suppliers and partners ensures timely deliveries, accurate forecasts, and efficient supply chain execution.
28. How is product lifecycle management handled?
A: PLM tracks product definitions, approvals, changes, and documentation from inception to retirement.
29. What are key challenges in Oracle Fusion SCM implementations?
A: Challenges include data migration, system integration, change management, and user adoption.
30. How do you optimize SCM performance in Oracle Fusion?
A: By automating workflows, using analytics, monitoring KPIs, and continuous process improvement, organizations ensure efficiency and cost-effectiveness.
Conclusion
Preparing for Oracle Fusion SCM interviews requires a strong understanding of both functional and technical concepts. By reviewing these 30 questions, professionals can confidently approach interviews, demonstrate expertise, and increase their chances of securing roles in Oracle Fusion Supply Chain Management.
