Oracle Fusion Supply Chain Management (SCM) is a critical enterprise application for managing procurement, inventory, order management, and costing. As organizations continue to transition to Oracle Cloud, the demand for skilled SCM professionals is increasing. Preparing for an Oracle Fusion SCM interview requires a strong understanding of functional and technical aspects.

In this guide, we have compiled the top 20 interview questions and answers to help you excel in your interview and advance your career.

1. What is Oracle Fusion SCM?

A: Oracle Fusion SCM is a cloud-based solution designed to manage the end-to-end supply chain process, including procurement, inventory, order management, costing, and planning. It provides automation, real-time insights, and seamless integration with other Oracle applications.

2. What are the key modules in Oracle Fusion SCM?

A: The major modules in Oracle Fusion SCM include:

• Procurement
• Inventory Management
• Order Management
• Costing
• Product Management
• Manufacturing
• Logistics

3. How does Oracle Fusion SCM differ from Oracle EBS SCM?

A: Oracle Fusion SCM is a cloud-native application with enhanced features such as:

• A modern, intuitive UI
• Embedded analytics and AI-driven insights
• Better integration with other Oracle Cloud applications
• Regular automatic updates without downtime

4. Explain the procurement process in Oracle Fusion SCM.

Oracle Fusion SCM Online Training

1 Year LMS Access Project Implementation
100% Job Assistance Latest Instance Access

Explore Curriculum

A: The procurement process involves:

• Requisition creation
• Purchase order (PO) generation
• Supplier approval and contract management
• Receipt and inspection of goods
• Invoice matching and payment processing

5. What is Self-Service Procurement in Oracle Fusion SCM?

A: Self-Service Procurement allows employees to create purchase requisitions using a user-friendly interface, reducing procurement cycle time and improving compliance.

6. What is the role of the Purchasing module in Oracle Fusion SCM?

A: The Purchasing module is responsible for managing purchase orders, supplier negotiations, and procurement contracts to ensure cost-effective sourcing.

7. What is Two-Way, Three-Way, and Four-Way Matching in Procurement?

• Two-Way Matching: Compares the PO and invoice before payment.
• Three-Way Matching: Compares PO, invoice, and goods receipt.
• Four-Way Matching: Includes the above three, plus inspection approval.

8. How is inventory managed in Oracle Fusion SCM?

A: Inventory is managed using key functionalities such as:

• Tracking item quantities and locations
• Managing stock movements and transfers
• Conducting cycle counts and physical inventories
• Supporting Just-in-Time (JIT) inventory management

9. What are the different types of inventory transactions?

• Miscellaneous Transactions
• Subinventory Transfers
• Inter-organization Transfers
• Receiving Transactions
• Cycle Counting Transactions

10. Explain the concept of Costing in Oracle Fusion SCM.

A: Costing helps track and analyze the cost of inventory and manufacturing operations using methods like Standard Costing, Actual Costing, and Average Costing.

11. What is the difference between Standard Costing and Average Costing?

A: 

• Standard Costing: Predetermined cost is assigned to items.
• Average Costing: Costs fluctuate based on purchase prices over time.

12. How does Order Management work in Oracle Fusion SCM?

A: Order Management automates the sales order lifecycle, from order creation and validation to fulfillment and invoicing, ensuring efficient processing and tracking.

13. What are the different fulfillment types in Oracle Order Management?

• Drop Ship Orders
• Back-to-Back Orders
• Internal Sales Orders
• Standard Sales Orders

14. How does Oracle Fusion SCM support Demand Planning?

A: It provides AI-driven demand forecasting, real-time inventory insights, and collaboration tools to optimize supply and demand balancing.

15. What is Supplier Qualification Management (SQM)?

A: SQM helps evaluate and onboard suppliers based on compliance, performance, and risk management criteria.

16. What are Business Units in Oracle Fusion SCM?

A: Business Units define operational structures within an organization and are used to segment transactions such as procurement, order management, and costing.

17. What are the key integration points of Oracle Fusion SCM with other Oracle Cloud applications?

• Oracle Fusion Financials for procurement and costing integration.
• Oracle Fusion HCM for managing workforce-related transactions.
• Oracle Integration Cloud (OIC) for connecting external applications.

18. How does Oracle Fusion SCM enhance supply chain visibility?

A: It provides real-time tracking, predictive analytics, and AI-powered recommendations to improve supply chain efficiency.

19. What is the role of Approval Workflows in Oracle Fusion SCM?

A: Approval workflows automate procurement, order, and supplier approvals to ensure compliance and operational efficiency.

20. How can you prepare for an Oracle Fusion SCM certification?

• Gain hands-on experience with Oracle Fusion SCM modules.
• Study official Oracle documentation and training materials.
• Take mock exams and practice scenario-based questions.
• Enroll in a structured Oracle Fusion SCM training program.

Conclusion

Mastering Oracle Fusion SCM is crucial for professionals aiming to build a strong career in supply chain management. By preparing with these top 20 interview questions, you can confidently navigate job interviews and showcase your expertise.

If you’re looking for in-depth Oracle Fusion SCM training with real-time projects and expert mentorship, enroll in Tech Leads IT’s Oracle Fusion SCM Online Training today!