E-Business Presentation Title

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Internet Procurement
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Oracle iProcurement Centralize Purchasing
Control, 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 Transactions
But, do buyers have the time?
Suppliers
Buyers
Requesters
GA
Maintenance
Manufacturing
RD
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Automate TransactionsFlag Exceptions
Implement Controls
Manage Supply Base
Analyze Spend
Requesters
Suppliers
GA
Maintenance
Manufacturing
RD
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Define rules for corporate policy based
automation Flexible workflows to configure your
rules

• 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

• Approved Suppliers and Items
• Identify approved suppliers for items /
  commodities
• Establish approved item/pricing contracts and
  represent as catalogs
• Control requester access to authorized catalogs

• Charge Accounts Budgets
• Person, CC, location, item commodity controls
• Project tracking and reporting
• Full budgetary control using encumbrance
  accounting

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Oracle iProcurement Centralize Purchasing
Control, 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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Content Management ModelsMultiple options to
support different item types
Catalog Content Management
Local Catalogs
Demand driven by MRP Inventory level
tracked Items under lot/serial/revision
control Items under existing long term agreements
Direct Material and Mission Critical MRO
Remote Supplier Hosted
Dynamic pricing availability Configurable
items Large selection of items Inventory not
tracked in buying org.
Indirect and Non-Critical MRO
Remote Catalog Hubs
Static item and pricing information Approval
controls for price changes Inventory not tracked
in buying org.
Indirect and Non-Critical MRO
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Supplier Hosted CatalogsUsers punchout to
catalogs maintained on supplier websites
Firewall
iProcurement
Catalog content on suppliers 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 Hubs
http//www.exchange.oracle.com/
Catalog Content Hub
Firewall
iProcurement

• 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

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

• Office supplies
• IT equipment
• Industrial Supplies
• Professional services
• Temporary staffing
• Maintenance
• Promotional items

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Order Items from Suppliers or Internal Warehouses

• 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 requests with
  cross-company accounting

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Simple and Advanced search for items in Catalog

• New self-guiding search offers targeted results
  for self-service users
• Advanced search for attribute specific criteria
• Control catalog access to users based on usage

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Request for Services using Smart FormsFlexible
templates to capture service details

• Flexible templates to define authorized service
  terms and rates
• Professional and general business services
• Minimize data entry, default values from
  templates
• Capture additional service details during request
  creation
• Configure approval rules based on smart forms

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Contractor requests for Temporary Assignments

• Contractor requests for administrative and
  professional needs
• Requests based on controlled access to approved
  suppliers and contracted rates
• Review candidates submitted by suppliers
• Finalize candidate and terms, flexible approvals
  for budget and candidate selection
• Fast-track process for simple requests

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Maintenance Requests for Assets

• Define maintenance schedules for assets
• Create requisitions for work orders from
  maintenance workbench, search MRO catalogs for
  required items
• Track progress against work orders
• Receive and deliver items directly to maintenance
  location

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Financial Considerations for all Business
Environments

• Budgets Encumbrance Accounting
• Control spending using budgets and encumbrance
  accounting
• Track spending limits and spend-to-date
• Real-time validation of funds during request
  creation
• Approvals based on budget ownership

• Flexible cost allocation
• Automatic account defaults based on business
  rules
• Security-based override capabilities
• Distribute charges across multiple
  accounts/cost-centers
• Allocate charges to expense or material accounts
  based on usage

• Project-based requests
• Request goods and services for specific projects
• Allocate costs to multiple project accounts and
  budgets
• Track and report against projects

• Requests charged to specific Grants
• Capture grant award information on individual
  requests
• Allocate costs across multiple grants
• Default grants information onto request lines to
  minimize data entry

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Oracle iProcurement Centralize Purchasing
Control, 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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Productive User Interface for Self-service
Audience

• Easy-to-use interface
• Familiar amazon.com-like interface
• Create and submit requisitions in just a few
  clicks
• Productivity enhancement tools to minimize data
  entry
• Shopping lists (Favorite and Public)
• Saved shopping carts
• Copy requisitions

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Simplify catalog searching using Transparent
PunchoutEliminate guesswork from catalog
searching
Local Catalogs
TransparentPunchout
Requester
Supplier A Website
User sees all search results, irrespective of
catalog source, on this familiar page
Exchange.Oracle.com
Patent Pending
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Full visibility into entire Procurement lifecycle
Self-service access frees up buyers time

• View approval status and history
• Related POs and associated status
• Real-time tracking of in-transit shipments
• View Receipt history and associated exceptions
• Invoice and payment information

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Rules-based Online ApprovalsEliminate paper
approvals, improve auditability

• Centralized approval engine services approval
  needs across apps.
• Automatic approval routing based on business
  rules
• Approvers can approve via email or from work list
• Nominate proxy approvers when on vacation
• Full approval trail with relevant comments
  captured for audit needs

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Oracle iProcurement Centralize Purchasing
Control, 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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Self-service receiving of goods and
services Increased payment control with 3-way
matching

• Requester initiated receipts using self-service
  screens
• Single-click simplicity
• Record packing slip, waybill information
• Track in-transit shipments and receive against
  them
• Automatic invoicing based on receipt
• System initiated receipts using workflow
• Automatic notification on due date
• Requester acknowledges receipt via response
• Automatic receipt generation based on response

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Record receipt exceptions, reconcile payments
accurately using 3-way match

• Return to Vendor
• Self-service screens to return defective goods to
  supplier
• Reference RMA code
• Real-time updates to on-hand quantities
• Automatically generate debit memos for
  reimbursement
• Full receipt history audit trail to resolve
  discrepancies

Receive

• Receipt Corrections
• Correct data entry errors by issuing corrections
• Factor corrections into receipt audit trail for
  accurate reporting

Return
Correct
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Summary
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Oracle iProcurement Centralize Purchasing
Control, Decentralize Execution

• Procurement policy based self-service enablement
  Buyers manage the spend, not individual
  transactions
• Support requests for all goods and services
  Single entry point for requests, single
  business rules repository
• Productive user interface for self-service
  audience Quicker customer adoption, smoother
  rollouts
• Self-service receiving for improved payment
  accuracy Increased control with 3-way match

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Oracle Sourcing
Maximize Savings and Sourcing Bandwidth
Information Age Applications
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Oracle Sourcing
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Oracle Advanced ProcurementThe Integrated Suite
that Dramatically Cuts All Supply Management Costs
Reduce Spend on Goods and Services
DemandCollection
SupplierCollaboration
CategoryManagement
SpendAnalysis
OnlineSourcing
Streamline Procurement Processes
ApprovalRouting
TouchlessBuying
Automated Payment
Budget-BasedProcurement
ContractManagement
SupplierPerformance
Enforce Policy Compliance
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Oracle Sourcing
Source More of Your Spend
Source for Lowest Total Cost
Create Immediate and Long-Term Savings
Structured Event Support
Cross-Functional Collaboration
Rapid Deployment
Knowledge Capture / Re-use
Enterprise Integration
Change Management
Automated Negotiations, Bid Mgmt and Award
Total Cost Analysis
Real Time Decision Support
Integration
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Oracle Sourcing Overview
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Oracle SourcingEnables You To

• Source More of Your Spend
• Source for Lowest Total Cost
• Create Immediate and Long-Term Savings

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Exploit More Savings Opportunities
Oracle Enabled Sourcing
Automated Bid Comparison
Percentage of Spend Under Contract
System Generated Awards
Efficient Change Management
On-Line Negotiation Support
Structured Event Creation
Traditional Sourcing Approach
Sourcing Resources
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Structured Sourcing Event CreationGreatly Reduce
Preparation Time and Manual Effort
Expiring Agreement
1-Click Renegotiation
RFx, Auction
Instantly create new sourcing event from previous
agreements
Sourcing Template
RFx, Auction
Requisitions
Aggregate requests across the enterprise to
leverage buying power
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Efficient Online Negotiations BuyerSlash Cycle
Time by Eliminating Manual Processes
View responses and monitor bidding activity in
real-time
Drill into individual sourcing events
View new incoming supplier messages and
incomplete tasks
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Efficient Online Negotiations SupplierSlash
Cycle Time by Improving Communications
Suppliers review contract terms early in the
sourcing cycle
Suppliers can review all requirements before bid
submission
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Efficiently Manage ChangeQuickly Create New
Round or Amendment
Buyer
Supplier
RFQ 1234
RFQ 1234-1 New Round or Amendment
Acknowledge Changes
Publish Changes

• Create and Publish New Rounds or Amendments
  Online
• Full Audit Trail Including Net Change Comparison
• If Suppliers Accept, Their Quotes Roll Forward

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System Generated RecommendationsEliminate
Time-Consuming Manual Analysis
Company Policy
Complex Bids

• Multiple Sites
• Dozens of Bid Lines

• Sourcing Rules
• Budget Constraints
• Supply Base Rules

Award Optimization Engine
Model multiple business constraints and supplier
inputs
Optimized, Policy-Compliant Award Recommendation
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Facilitated Online Bid ComparisonMake Faster
Award Decisions

• Utilize structured bid data
• Automatic bid scoring
• Consistent format for side-by-side comparison of
  competing bids
• Provide online analysis for fast, accurate awards
• Multiple chart and graph formats (e.g., scatter
  plot, bar, pie)
• Flexible award methods enable selection of
  suppliers, bid lots or specific line items
• Business and regulatory compliance policies
  (e.g., multi-sourcing requirements, minority
  business preference)

• View award summary for purchase recommendation,
  approval, and compliance details

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Oracle SourcingEnables You To

• Source More of Your Spend
• Source for Lowest Total Cost
• Create Immediate and Long-Term Savings

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Cross-Functional CollaborationCombine Expertise
for Higher Quality at Lower Price

• Domain knowledge
• Supplier performance

• Market knowledge

• Constraints
• Costs estimates

• Best delivery terms
• Handling instructions

• Define requirements
• Implementation planning

• Best payment terms

• Latest BOM, specs and drawings

• Corporate policy and procedure

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Sourcing Knowledge Capture Drive Optimal Results
by Re-Using Best Practices
Bidding Rules
Supplier Lists
Sourcing Policy Rules
Sourcing Templates
Pricing Factors
Scoring Methods

• Leverage Proven Practices
• Replicate Buyer Expertise
• Retain Knowledge across the Organization

Negotiation Event Style
Knowledge from Past Sourcing Events
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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
Tangible and Intangible Costs
European Supplier 16 vs. 23
North American Supplier 21 vs. 21
AsianSupplier 20 vs. 23
Latin American Supplier14 vs. 26

• Capture Total Cost
• Tangible (e.g., freight)
• Intangible (e.g., switching costs)
• Buyer and Supplier Entered
• Evaluate Transformed Bids
• View Transformed or Un-Transformed
• Visible During Analysis and Award

Example Supplier C Bid 14 System
Added Freight 6 Tariff 4 Risk
2 Transformed Bid 26
Bid vs. Transformed Bid
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Total Cost and Complete Bid AnalysisBalance
Price, Quality, Promise Date, etc.
Display quote price and score based on all
attributes
Preferred quotes represent an optimal balance of
price, quality, promise date, etc.
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Oracle SourcingEnables You To

• Source More of Your Spend
• Source for Lowest Total Cost
• Create Immediate and Long-Term Savings

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Rapid DeploymentStart Saving Immediately
SimpleRFx / Auctions
Start with a few key activities
Supplier Enablement
Quickly enable suppliers to participate in
sourcing events
ComplexRFx / Auctions
Grow into advanced capabilities as needed
Automate complete business process using
integrated Advanced Procurement platform
Off-the-Shelf Integration

• Implementation in days or weeks -- not months!
• Incrementally implement capabilities

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Consistent Execution and ComplianceRealize
Sustainable Savings via Integration
Sourcing

• 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

iSupplier Portal
Procurement Contracts
Purchasing
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Example One-Click PO CreationCreate Purchasing
Documents Directly from Award

• Copy all pricing, contract and deliverable
  information
• Eliminate manual entry and associated errors

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Example Real-Time Deliverable MgmtEasily
Monitor Compliance Across the Enterprise
Review status of deliverables
Track notes and correspondence
Drill into details
Link to source document

• Ensure supplier compliance and consistent
  evaluation
• Sourcing deliverables
• Contractual deliverables
• Enable buyers to be proactive
• e.g., Contract milestones or expirations

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Example Contract Intelligence Evaluate
Compliance and Identify Opportunities

• Expose need for new or revised contract
• Evaluate supplier and contract performance before
  renewal
• Track KPIs including price change, returns, and
  delivery performance

Quality Performance
Consumption Trends
Business Targets
Contract Utilization
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Seamless Data Flows
Sourcing Data
Integrated Flows
Procurement Data

• Requisition to RFx/Auction Creation
• Requisition allocation upon award
• Removal of requisition from requisition pool
  during negotiation
• Return of requisition to requisition pool on
  cancellation/partial allocation
• Negotiation number viewable in iProcurement
• Contract to RFx/Auction creation for renewals
• Contract created from award
• PO created from award
• Sourcing accessed from single iSupplier Portal
• Supplier search of the Supplier Master and ASL

• RFIs
• RFQs
• Buyers Auctions
• Templates
• Attributes
• Etc.

• Requisitions
• POs
• Contracts
• Etc.

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Shared Data
Shared Data
Sourcing Data
Procurement Data

• Contract Variables
• System and User-Defined
• Supplier Responses
• Contract Deliverables
• Contractual Negotiation
• Contract Clauses
• Contract Templates
• Suppliers
• Approved Supplier List
• Supplier Classification
• Supplier Commodities

• Operating Units
• Buyers
• Buyer Approval Hierarchy
• UOM
• Ship to Addresses
• Bill to Addresses
• Currency
• Payment Terms
• Attachment Repository
• Purchasing Categories
• Inventory Items with revision

• RFIs
• RFQs
• Buyers Auctions
• Templates
• Attributes
• Etc.

• Requisitions
• POs
• Contracts
• Etc.

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Oracle Sourcing
Easy sourcing event creation, management of
on-line negotiations and bids, with automatic
system-generated recommendations
Source More of Your Spend
Cross-functional collaboration, sourcing
knowledge capture / re-use, and total cost
analysis
Source forLowest Total Cost
Rapid deployment capabilities with modular
integration to Advanced Procurement, and
real-time decision support including deliverable
mgmt
Create Immediate and Long-Term Savings
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