SCM Adv Procurement

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Advanced Procurement
Whats New in E-Business Suite Release 12The
Procurement Professionals Release
Mary Burns
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A Decade Of Procurement InnovationWhats Wrong
With This Picture?
As niche start-ups drove action at the edges,
the tools needed for the daily business of
procurement were taken for granted
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Agenda

• Procurement Challenges Opportunities
• How Oracle Delivers
• A Look at Release 12

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Oracle Advanced ProcurementThe Integrated Suite
that Dramatically Cuts All Supply Mgmt Costs
Reduce Spend on Goods and Services
Spend Categories
SupplierCollaboration
CategoryManagement
SpendAnalysis
OnlineSourcing
Orders
Indirect Goods
SupplierPortal
Streamline Procurement Processes
Logistics
ApprovalRouting
TouchlessBuying
Automated Payment
Services
Settlement
EngineeredGoods
SupplierNetwork
Budget-BasedProcurement
ContractManagement
SupplierPerformance
ProfileManagement
DirectMaterials
Enforce Policy Compliance
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Reduce Spend on Goods and ServicesIncrease
Sourcing Efficiency and Effectiveness
BlanketAgreements
PurchaseOrders
RFI /Survey
GlobalAgreements
RFQ
Requisitions
Signed Contracts
SourcingRules
OnlineAuction
Automatic Implementation
Agreement Creation

• Automatic price terms enforcement
• Preferred supplier enforcement

• Online negotiations
• Online expert collaboration
• Award optimization

• Templates, standard Ts Cs
• Two-way MS Word integration
• 1-click renegotiation for agreements

Exploit Savings Opportunities and use Open
Competition to Improve Price / Terms
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Streamline Procurement ProcessesReduce Manual
Effort to Free Staff for Higher-Value Activities
Create Purchase Order
Dispatch Electronic PO to Supplier
Auto-Approve Minor Changes
Receive Goods or Services Inspect
Receive ElectronicInvoice
Pay Supplier(EFT)
Apply Agreement Terms Conditions
Apply Auto-Source Rules
Higher Value Activities (e.g., program management)
Higher Value Activities (e.g., supplier
development)
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Enforce Policy ComplianceIdentify and Rectify
Policy Violations

• Configurable workflow automation of routine
  transactions
• Automatic bubble-up of exceptions
• Single point for defining and enforcing
  purchasing policy

Rejections
PurchasingProfessional
Return or Modify Reqs
Indirect MRO
Approvals
Exceptions
Buyer-Assisted
DirectMaterials
Purchasing Transactions
Services
DemandSources
Demand Queue
Document Creation
RulesConfig.
Automatic
Automation
Designed Matls
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Release 12 -- Rethinking the Routine Automate
Routine Tasks, Focus on High-Value Activities
SupplyOptimization
Oracle AdvancedProcurement
Strategic
ContractNegotiation
SpendAnalysis
High
Value
Project- Based Procurement
Monitor ReviewControls
Internal Benchmark Delivery
Medium
Answering Supplier Queries
HelpingRequesters
Managing Content
Creating Manual Orders
Low
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Advanced Procurement R12The Procurement
Professionals Release

• Unified Workcenter For All Procurement
  Responsibilities
• Improved Support for Complex Goods Services
• Expanded Supplier Management and Enablement

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Professional Buyers Work CenterEnable Command
Control for the Procurement Professional
Professional Buyers Work Center

• Exceptions
• Agreements
• Performance Analysis

Invoicing Payment
Supplier Management
Contracts Agreements
PO Execution
Negotiations
Requisitions

• View exceptions across multiple applications and
  operating units
• Create, implement, and execute agreements
• Analyze performance of procurement suppliers

Single Access Point for All Responsibilities
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Professional Buyers Work Center (cont.)Enable
Command Control for the Procurement Professional

• Intuitive UI and streamlined workflows
• Status at-a-glance
• Multi-Org Access Control for shared services
• Extensive options for personalization

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Two-Way MS Word SynchronizationAutomatically
Import Redline Changes for Superior Compliance

• Streamline internal collaboration and supplier
  negotiation by allowing key stakeholders to be
  involved in the contract review process
• Improve contracting efficiency while reducing
  effort
• Minimize errors and risk from manual updates

Contract Administrator

• Oracle Procurement Contracts
• Identify modified clauses
• Review changes in detail
• Accept / reject offline changes

XML edits
XML edits
Legal
Supplier
Stakeholders
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Two-Way MS Word Synchronization
(cont.)Automatically Import Redline Changes for
Superior Compliance
Accept or Reject offline changes
Review each change in detail
Identify modified clauses at a glance
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Advanced Procurement R12The Procurement
Professionals Release

• Unified Workcenter For All Procurement
  Responsibilities
• Improved Support for Complex Goods Services
• Expanded Supplier Management and Enablement

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Complex Requisition Approvals Graphically View
Approval Chain Requisition Status

• Position Hierarchy Support
• Define approval routing structures that remain
  stable even if individuals / organizational
  structures change
• Minimize workflow maintenance

• Parallel Approvals
• Notify multiple approvers of a requisition
  simultaneously
• Reduce approval cycle time

• Support for Viewers
• Keep people informed of business purchases and
  decisions without requiring a response
• Maintain key stakeholder engagement oversight

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Team Scoring of Requirements

• Each team member scores the assigned section
• Oracle Sourcing calculates average of individual
  score sheets to determine section score
• Sum of team scores determines overall response
  score (as input to optimization)

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Procurement for Complex ServicesSource to Settle
Support for Complex Payments
Supplier Collaboration
Request for Service
Negotiate Agreement
Advances
Receipts
Invoice
Payment
Negotiate Payments
Make Payments
Validate
Match
Enforce
Examples

• Milestones
• Rates
• Advances
• Retainage
• Lump sums

• Timecards
• Receipts
• Work confirmations

• Terms
• Recoupment of advances
• Release of retainage

• Agreements
• Invoices
• Receipts

• Facilities services
• Landscaping services
• Architectural services

• Track project details

Drive Consistent Execution of NegotiatedTerms
Conditions in All Spend Categories
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Procurement for Complex ServicesDefine Progress
Payment Schedule
Define progress payments - rate, lumpsum
milestone pay items

• Suppliers provide timecards, receipts, and work
  confirmation information that are matched with
  agreements and invoices
• Settlement drives release of recoupment of
  advances retainage

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Advanced Procurement R12The Procurement
Professionals Release

• Unified Workcenter For All Procurement
  Responsibilities
• Improved Support for Complex Goods Services
• Expanded Supplier Management and Enablement

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Prospective Supplier Registration Reduce
Overhead with Self-Service Registration

• Use corporate website to allow interested
  prospective suppliers to register

• Configure qualification details captured during
  registration
• Define req. elements of supplier profile
• Include customized questionnaires as part of
  registration

• Use request details to customize approval flow
• Enable approvers to update details
• Notify suppliers via email once registration
  request has been approved / rejected

Requires iSurvey
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Supplier Management User-InterfaceStreamlined
Supplier Profile Management
To Do List for requests
Create supplier
Search or drill down to supplier details
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Unified Catalog ArchitectureEstablish a Single
Authoring, Ordering, Maintenance Environment
Sourcing User

Add new items from award lines

Buyer

Catalog Admin
Punchout transparent punch-out
Bulkload / online author update content
Catalog

Supplier
Approval workflows
Requester

Upload and maintain content

Buyer
View, approve, add, edit, and delete items
Reduce Maintenance Efforts and Drive Spend
Visibility
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Content Security with Content ZonesProvide the
Right Content to the Right People
Combine zones to create stores
Grant access by OU or responsibility
Partition content into zones
Marketing Exec
Promotional Items
Professional buyer
Industrial MRO
Maintenance

• Improve control over what end users can see
  user buying experience
• Execute organizational unit-specific procurement
  strategies
• Reduce risks associated with sensitive categories

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Tolerance Based Auto-ApprovalsAutomate
Processing of Routine Change Requests
Exception Processing
Touchless Processing
Approver
Supplier Change Orders / Requests
Route to Requesters hierarchy
No
Supplier Portal
Yes
Buyer
No
Route changes to Buyer
OSN/ XML / EDI
Yes
PO updated submitted to approval workflow
eMail
Yes
Purchasing Mgr
No
Route changes to buyers hierarchy
PO Approved
Fax
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Self-Service Supplier ScorecardingDrive
Improvements w/ Access to Supplier Performance
Management
Supplier management KPIs
Spend analysis trend
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Evolution of Oracle Advanced Procurement
New in 11i.9
Base Differentiators
New in 11i.10

• Self-service enterprise requisitioning from
  suppliers or internal stock
• Integrated asset and production planning
• Self-service supplier inquiries and transactions,
  (e.g. VMI and self-invoicing)
• Flexible invoice matching including match to
  receipt
• Automatic invoice and debit memo generation
• Project- and budgetary-based purchasing
• Multi-attribute scoring for reverse auctions and
  RFQs
• Open platform for demand, orders, receiving,
  invoices
• Integrated spend and supplier intelligence
• Workflow-driven automation

• Global agreements
• Supplier managed and consigned inventory
• Requester and supplier change requests
• Supplier registration and profile management
• Collaborative sourcing
• Requester stores for secure content zones
• Patent-pending transparent punch-out
• One-click renegotiation of blanket agreements
• Expanded XML support including cXML for easing
  Ariba migrations
• Time-phased pricing for direct materials
• Commodity intelligence

• Services procurement contingent labor bus
  services, negotiation through payment
• Procurement contracts global TCs standards,
  negotiation, doc change mgmt, compliance
• Formula-based pricing tiered discounts
  (Advanced Pricing)
• Retroactive pricing including automated invoice
  adjustments
• Negotiate with subjective scoring and what-if
  analyses
• Automatic bid scoring and award (Sourcing
  Optimization)
• Shared services procurement
• Requisition SmartForms
• LPN lot/serial receiving
• Supplier managed banking

CONFIDENTIAL All capabilities and dates are for
planning purposes only and may not be used in any
contract
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Evolution of Oracle Advanced Procurement
New in R12

• PLUS
• Shared services support
• Supplier catalog authoring
• Advanced pricing integration
• eTax integration
• Document styles
• Negotiation styles
• Negotiation drafts
• Automatic scoring of requirements
• Supplier knockout criteria
• Payment advances recoupment
• Progress payments based on milestones, rates,
  lump sums

• Professional Buyers WorkCenter
• 2-way MS Word integration
• Complex requisition approvals w/
  requestor-directed procurement, parallel
  position hierarchy approvals
• Team scoring of sourcing rqmts
• Procurement for complex svcs
• Prospective supplier registration
• Supplier mgmt user interface for supplier profile
  management
• Unified catalog architecture
• Content security w/ content zones
• Tolerance based change order auto-approval
• Self-service supplier scorecarding

• Work confirmations
• Retainage authorization of release
• PO lifecycle tracking
• Non-PO invoices
• Clause usage compliance analysis
• Supplier-managed user admin

CONFIDENTIAL All capabilities and dates are for
planning purposes only and may not be used in any
contract
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