Oracle iProc. Presentation

7/27/2019 Oracle iProc. Presentation

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Internet Procurement


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Oracle iProcurement Centralize PurchasingControl, Decentralize Execution

Procurement policy based self-service enablement

Support requests for all goods and services

Productive user interface for self-service audience

Self-service receiving for improved payment accuracy


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Manage the Spend, not the TransactionsBut, do buyers have the time?

SuppliersBuyersRequesters

Manufacturing

Maintenance

R&D

G&ACreate POs

DocumentApprovals

Communicate
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Automate TransactionsFlag Exceptions

SuppliersRequesters

Manufacturing

Maintenance

R&D

G&A

ImplementControls

Manage SupplyBase

Analyze Spend

FinancialControls

Role-BasedSecurity

ApprovalWorkflow

CorporatePolicy
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Define rules for corporate policy based automationFlexib le workf low s to conf igure you r ru les

Approvals

Rules-based approval list Cost-center, location, commodity

controls

Flexible approval hierarchies

Approve via email or online

Automatic PO creation

Contract buys vs. one-off

Approved supplier usage

Standard vs. non-standard items

Emergency POs

Automatic approval and communication

Charge Accounts & Budgets

Person, CC, location, itemcommodity controls

Project tracking and reporting

Full budgetary control usingencumbrance accounting

Approved Suppliers and Items

Identify approved suppliers foritems / commodities

Establish approved item/pricingcontracts and represent as catalogs

Control requester access toauthorized catalogs


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Remote:Catalog Hubs

Remote:Supplier Hosted

LocalCatalogs

Content Management ModelsMult ip le opt ion s to support di f ferent i tem types

Direct Materialand MissionCritical MRO

Demand driven by MRP

Inventory level tracked

Items under lot/serial/revision control

Items under existing long term agreements

Dynamic pricing & availabilityConfigurable itemsLarge selection of itemsInventory not tracked in buying org.

Catalog Content Management

Indirect and

Non-Critical

MRO

Indirect and

Non-Critical

MRO

Static item and pricing informationApproval controls for price changesInventory not tracked in buying org.


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Supplier Hosted CatalogsUsers pu nchout to catalogs m aintained on supp l ier websi tes

iProcurement Firewall Catalog content onsuppliers website

Access company specific catalogs on supplier website

Item configuration rules for CTO items Real time pricing and availability Information

Support Oracle XML and cXML formats for punchout


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Catalogs Hosted on Catalog Content Hubshttp:/ /www.exchange.oracle.com/

Immediate access to wide variety of catalogs

Suppliers author catalogs on content hub

You approve changes to items and pricing

Control requesters access to available catalogs

iProcurement

Firewall

Catalog Content Hub


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Single Point of Entry for All Request TypesGuide users to appropriate Store based on request type

Office supplies

IT equipment

IndustrialSupplies

Professionalservices

Temporarystaffing

Maintenance

Promotionalitems


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Purchase requisitions

Local or remote catalogs

Non-catalog requests for non-standard goods

Internal requisitions Internal catalogs for standard

items

Source based on availability

Inter- or intra-company requestswith cross-company accounting

Order Items from Suppliers or Internal Warehouses


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Simple and Advanced search for items in Catalog

New self-guidingsearch offerstargeted results forself-service users

Advanced searchfor attribute specificcriteria

Control catalog

access to usersbased on usage


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Request for Services using Smart FormsFlexible temp lates to capture service detai ls

Flexible templates todefine authorized

service terms andrates

Professional andgeneral businessservices

Minimize data entry,default values fromtemplates

Capture additionalservice details duringrequest creation

Configure approvalrules based on smartforms


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Maintenance Requests for Assets

Assets

Supplier

Order

Request

Maintenance

Schedule

Rule Based

Engine

Ship ToMaintenance

Location

Define maintenanceschedules for assets

Create requisitions forwork orders frommaintenance workbench,search MRO catalogs forrequired items

Track progress againstwork orders

Receive and deliveritems directly tomaintenance location


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Financial Considerations for all BusinessEnvironments

Flexible cost allocation

Automatic account defaults basedon business rules

Security-based override capabilities

Distribute charges across multipleaccounts/cost-centers

Allocate charges to expense ormaterial accounts based on usage

Budgets & Encumbrance Accounting

Control spending using budgets andencumbrance accounting

Track spending limits and spend-to-date

Real-time validation of funds duringrequest creation

Approvals based on budget ownership

Project-based requests

Request goods and services forspecific projects

Allocate costs to multiple projectaccounts and budgets

Track and report against projects

Requests charged to specific Grants

Capture grant award information onindividual requests

Allocate costs across multiplegrants

Default grants information ontorequest lines to minimize data entry


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Easy-to-use interface Familiar amazon.com-like interface

Create and submit requisitions in justa few clicks

Productivity enhancement tools tominimize data entry

Shopping lists (Favorite and Public)

Saved shopping carts

Copy requisitions

Productive User Interface for Self-serviceAudience


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Requester Supplier A Website

Exchange.Oracle.com

TransparentPunchout*

Simplify catalog searching using TransparentPunchoutEliminate guesswork from catalog s earching

User sees all search results, irrespective ofcatalog source, on this familiar page

*Patent Pending

Local Catalogs


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Full visibility into entire Procurement lifecycleSelf-service access frees up buyers time

View approval statusand history

Related POs andassociated status

Real-time tracking ofin-transit shipments

View Receipt historyand associatedexceptions

Invoice and paymentinformation


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Rules-based Online ApprovalsEliminate paper appro vals, impro ve auditabi l i ty

Centralized approvalengine servicesapproval needsacross apps.

Automatic approvalrouting based on

business rules

Approvers canapprove via email orfrom work list

Nominate proxy

approvers when onvacation

Full approval trail withrelevant commentscaptured for auditneeds


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Requester initiatedreceipts using self-

service screens Single-click simplicity

Record packing slip,waybill information

Track in-transitshipments and

receive against them Automatic invoicing

based on receipt

System initiated receiptsusing workflow

Automatic notificationon due date

Requesteracknowledges receiptvia response

Automatic receipt

generation based onresponse

Self-service receiving of goods and servicesIncreased payment contro l with 3-way matching


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Record receipt exceptions, reconcile paymentsaccurately using 3-way match

Return to Vendor

Self-service screens to returndefective goods to supplier

Reference RMA code

Real-time updates to on-handquantities

Automatically generate debit memosfor reimbursement

Full receipt history audit trail toresolve discrepancies

Receipt Corrections

Correct data entry errors by issuingcorrections

Factor corrections into receipt audittrail for accurate reporting

Receive

Return Correct


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Summary


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Procurement policy based self-service enablementBuyers manage the spend, no t individual transact ions


Single entry point fo r requests, sing le business ru les repos itory

Productive user interface for self-service audienceQuicker customer adopt ion, smoother ro l louts

Self-service receiving for improved payment accuracyIncreased contro l with 3-way match


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OracleSourcing

Information Age Applications

Maximize Savings and Sourcing Bandwidth


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OracleSourcing


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DemandCollection

IndirectGoods

DirectMaterials

Engineered

Goods

Services ApprovalRouting

TouchlessBuying

AutomatedPayment

Enforce Policy Compliance

Budget-BasedProcurement

ContractManagement

SupplierPerformance

Reduce Spend on Goods and Services

CategoryManagement

OnlineSourcing

SpendAnalysis

Streamline Procurement Processes

SupplierCollaboration

Settlement

Orders

ProfileManagement

Supplier

Network

Logistics

SupplierPortal

Oracle Advanced ProcurementThe Integrated Suite that Dramatical ly Cuts A l l Supp ly ManagementCosts


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Oracle Sourcing

Sourc e More of

Your Spend

Source for Lowest

Total Cost

Create Imm ediate and

Long -Term Savings

Structured EventSupport

Cross-FunctionalCollaboration

KnowledgeCapture / Re-use

Total Cost

Analysis

Real Time

Decision Support

EnterpriseIntegration

RapidDeployment

ChangeManagement

AutomatedNegotiations, BidMgmt and Award

Make Savings Stick

IdentifyOpportunities& Suppliers

ConductOn-Line

Negotiations

Analyze& Award

Approve& Issue

DefineStrategies &Negotiations

PurchasingContract

MgmtFinance Marketing OtherOperations

Integration


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Oracle Sourcing Overview

Blanket

Agreements

Requisitions

Spreadsheets(1000 lines+)

Demand CollaborativeSourcing Process

BlanketAgreements

PurchaseOrders

Outcome

Global

Agreements

RFI /

Survey

RFQ

Auction

Suppliers

SignedContract

UpdateCatalog

SourcingTemplates

PurchasingData

Contracts


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Oracle SourcingEnables You To

Source More of Your Spend

Source for Lowest Total Cost

Create Immediate and Long-Term Savings

Exploit More Savings Opportunities


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Exploit More Savings Opportunities

Sourcing Resources

PercentageofSpend

UnderContract

Oracle EnabledSourcing

TraditionalSourcing Approach

Structured Event Creation

On-Line Negotiation Support

Efficient Change Management

System Generated Awards

Automated Bid Comparison


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Structured Sourcing Event CreationGreatly Reduce Preparat ion Time and Manual Effort

ExpiringAgreement

1-ClickRenegotiation

Instantly create new sourcing event from previous agreements

Renewal

Driven

RFx, Auction

RFx, AuctionRequisitionsSourcingTemplate

Request

Driven

Aggregate requests across the enterprise to leverage buying power


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Efficient Online Negotiations: SupplierSlash Cyc le Time by Impro ving Commun ications

Suppliers can reviewall requirements

before bid submission

Suppliers review contract termsearly in the sourcing cycle


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Efficiently Manage ChangeQuickly Create New Round o r Amendment

Create and Publish New Rounds or Amendments Online Full Audit Trail Including Net Change Comparison

If Suppliers Accept, Their Quotes Roll Forward

RFQ 1234

Buyer

RFQ 1234-1New Round orAmendment

Supplier

AcknowledgeChanges

PublishChanges


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Optimized, Policy-Compliant AwardRecommendation

System Generated RecommendationsEliminate Time-Consum ing Manual Analysis

Multiple Sites Dozens of Bid Lines

Company Policy Complex Bids

Maximum of5 Vendors

Minimum 60%to incumbent

supplier

$100k AnnualMaximum

Sourcing Rules Budget Constraints Supply Base Rules

MultipleSuppliers

Model multiple businessconstraints and supplier inputs

Award Optimization Engine


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Facilitated Online Bid ComparisonMake Faster Award Decis ions

Utilize structured bid data- Automatic bid scoring

- Consistent format for side-by-side comparison ofcompeting bids

Provide online analysis forfast, accurate awards

- Multiple chart and graphformats (e.g., scatter plot,bar, pie)

- Flexible award methodsenable selection ofsuppliers, bid lots orspecific line items

- Business and regulatorycompliance policies (e.g.,

multi-sourcingrequirements, minority

View awardsummary forpurchaserecommendation,approval, and

compliance details


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Cross Functional Collaboration


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Cross-Functional CollaborationCombine Expert ise for Higher Quali ty at Lower Price

CommodityManager

Best delivery terms

Handling instructions

Define requirements

Implementation planningProjectManager

Suppliers

SourcingManager

Finance /Legal

Constraints Costs estimates

Marketknowledge

Best

paymentterms

Corporatepolicy andprocedure

Latest BOM,

specs anddrawings

Design

Requestor(eg., Mfg,

HR)

ContractManager

Logistics

Domainknowledge

Supplier

performance


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Sourcing Knowledge CaptureDrive Optimal Resu lts by Re-Using Best Pract ices

New Sourcing Event

Bidding Rules

Sourcing Policy Rules

Negotiation Event Style

Scoring Methods

Sourcing Templates

Supplier Lists

Pricing Factors

Knowledge fromPast Sourcing

Events

Leverage Proven Practices

Replicate Buyer Expertise Retain Knowledge across

the Organization


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Example:Template-Based Scoring Criteria

Exclude from

supplier shortlist

Weighted scoring Header Line Attribute group


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Total Cost and Complete Bid AnalysisEvaluate Tangib le and Intang ible Costs

*Bid vs. Transformed Bid

Latin AmericanSupplier

$14 vs. $26*

EuropeanSupplier

$16 vs. $23*North American

Supplier$21 vs. $21*

AsianSupplier

$20 vs. $23*

Example:

Supplier C Bid

$14System Added

Freight $6

Tariff $ 4

Risk $ 2

Transformed Bid =

Capture Total Cost- Tangible (e.g., freight)

- Intangible (e.g., switchingcosts)

- Buyer and Supplier Entered

Evaluate TransformedBids

-

View Transformed or Un-Transformed


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C i t t E ti d C li


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Consistent Execution and ComplianceRealize Sus tainable Savin gs via Integration

Sourcing

Purchasing

iSupplierPortal

ProcurementContracts

Transfer negotiated terms and pricing to execution

Drive contract compliance and track deliverables Monitor contract utilization and supplier performance

Enable suppliers to openly compete for business

Seamlessly execute negotiated agreements

Leverage common source of master / reference data

E l O Cli k PO C ti


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Example:One-Click PO CreationCreate Purch asing Documents Direct ly from Award

Awarded

Quotes

Receive

Goods orServices

Create

Agreements/POs

Pay

Supplier

Workflow Enablement

Copy all pricing, contractand deliverable information

Eliminate manual entry and

associated errors


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Example:Real-Time DeliverableMgmtEasi ly Mon i tor Comp l iance Across theEnterpr ise

Ensure supplier compliance and consistent evaluation- Sourcing deliverables-

Contractual deliverables Enable buyers to be proactive

- e.g., Contract milestones or expirations

Review status ofdeliverables

Track notes andcorrespondence

Drill intodetails

Link to sourcedocument


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Business Targets Contract Utilization

Quality PerformanceConsumption Trends

Expose needfor new orrevised

contract

Evaluatesupplier andcontract

performancebefore renewal

Track KPIs

includingrice chan e

Example:Contract IntelligenceEvaluate Compliance and Identi fy Opportunities


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Seamless Data Flows

RFIsRFQsBuyers AuctionsTemplatesAttributesEtc.

ProcurementData

SourcingData

Integrated Flows

Requisition to RFx/Auction CreationRequisition allocation upon awardRemoval of requisition from requisition pool

during negotiationReturn of requisition to requisition pool on

cancellation/partial allocationNegotiation number viewable in iProcurementContract to RFx/Auction creation for renewalsContract created from awardPO created from awardSourcing accessed from single iSupplier PortalSupplier search of the Supplier Master and ASL

RequisitionsPOsContracts

Etc.


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Shared Data

RequisitionsPOsContracts

Etc.

RFIsRFQsBuyers AuctionsTemplatesAttributesEtc.

ProcurementData

SourcingData

Shared Data

Operating UnitsBuyersBuyer Approval

HierarchyUOMShip to AddressesBill to AddressesCurrencyPayment TermsAttachment RepositoryPurchasing Categories

Inventory Items withrevision

Contract Variables System and User-

Defined Supplier Responses

Contract Deliverables Contractual &

NegotiationContract ClausesContract TemplatesSuppliersApproved Supplier List

Supplier ClassificationSupplier Commodities

O l S i


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Cross-functional collaboration,

sourcing knowledge capture / re-use,and total cost analysis

Source forLowest Total Cost

Easy sourcing event creation,

management of on-line negotiationsand bids, with automatic system-generated recommendations

Source Moreof Your Spend

Oracle Sourcing

Rapid deployment capabilities with

modular integration to AdvancedProcurement, and real-time decisionsupport including deliverable mgmt

Create Immediate

and Long-TermSavings


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Information Age Applications