Oracle Internet Procurement
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The document discusses Oracle iProcurement, which aims to centralize purchasing controls while decentralizing purchasing execution through self-service. It allows enabling procurement policy-based purchasing, supporting requests for all goods and services through a single entry point. It provides a productive user interface for requesters with tools to streamline purchasing. It also discusses self-service receiving to improve payment accuracy through three-way matching.
Oracle Internet Procurement
- 2. Oracle iProcurement â Centralize Purchasing Control, Decentralize Execution ï Procurement policy based self-service enablement ï Support requests for all goods and services ï Productive user interface for self-service audience ï Self-service receiving for improved payment accuracy
- 3. Manage the Spend, not the Transactions⊠âŠBut, do buyers have the time? SuppliersBuyersRequesters Manufacturing Maintenance R&D G&A Create POs Document Approvals Communicate
- 4. Automate TransactionsâŠFlag Exceptions SuppliersRequesters Manufacturing Maintenance R&D G&A Implement Controls Manage Supply Base Analyze Spend Financial Controls Role-Based Security Approval Workflow Corporate Policy
- 5. Define rules for corporate policy based automation Flexible workflows to configure your rules Approvals ï Rules-based approval list ï Cost-center, location, commodity controls ï Flexible approval hierarchies ï Approve via email or online Automatic PO creation ï Contract buys vs. one-off ï Approved supplier usage ï Standard vs. non-standard items ï Emergency POs ï Automatic approval and communication Charge Accounts & Budgets ï Person, CC, location, item commodity controls ï Project tracking and reporting ï Full budgetary control using encumbrance accounting Approved Suppliers and Items ï Identify approved suppliers for items / commodities ï Establish approved item/pricing contracts and represent as catalogs ï Control requester access to authorized catalogs
- 6. Oracle iProcurement â Centralize Purchasing Control, Decentralize Execution ï Procurement policy based self-service enablement ï Support requests for all goods and services ï Productive user interface for self-service audience ï Self-service receiving for improved payment accuracy
- 7. Remote: Catalog Hubs Remote: Supplier Hosted Local Catalogs Content Management Models Multiple options to support different item types Direct Material and Mission Critical MRO Demand driven by MRP Inventory level tracked Items under lot/serial/revision control Items under existing long term agreements Dynamic pricing & availability Configurable items Large selection of items Inventory not tracked in buying org. Catalog Content Management Indirect and Non-Critical MRO Indirect and Non-Critical MRO Static item and pricing information Approval controls for price changes Inventory not tracked in buying org.
- 8. Supplier Hosted Catalogs Users punchout to catalogs maintained on supplier websites iProcurement Firewall Catalog content on supplierâs website ï Access company specific catalogs on supplier website ï Item configuration rules for CTO items ï Real time pricing and availability Information ï Support Oracle XML and cXML formats for punchout
- 9. Catalogs Hosted on Catalog Content Hubs http://www.exchange.oracle.com/ ï Immediate access to wide variety of catalogs ï Suppliers author catalogs on content hub ï You approve changes to items and pricing ï Control requestersâ access to available catalogs iProcurement Firewall Catalog Content Hub
- 10. Single Point of Entry for All Request Types Guide users to appropriate âStoreâ based on request type ï Office supplies ï IT equipment ï Industrial Supplies ï Professional services ï Temporary staffing ï Maintenance ï Promotional items
- 11. ï Purchase requisitions â Local or remote catalogs â Non-catalog requests for non- standard goods ï Internal requisitions â Internal catalogs for standard items â Source based on availability â Inter- or intra-company requests with cross-company accounting Order Items from Suppliers or Internal Warehouses
- 12. Simple and Advanced search for items in Catalog ï New self-guiding search offers targeted results for self-service users ï Advanced search for attribute specific criteria ï Control catalog access to users based on usage
- 13. Request for Services using âSmart Formsâ Flexible templates to capture service details ï Flexible templates to define authorized service terms and rates ï Professional and general business services ï Minimize data entry, default values from templates ï Capture additional service details during request creation ï Configure approval rules based on smart forms
- 14. Contractor requests for Temporary Assignments ï Contractor requests for administrative and professional needs ï Requests based on controlled access to approved suppliers and contracted rates ï Review candidates submitted by suppliers ï Finalize candidate and terms, flexible approvals for budget and candidate selection ï Fast-track process for simple requests
- 15. Maintenance Requests for Assets Assets Supplier Order Request Maintenance Schedule Rule Based Engine Ship To Maintenance Location ï Define maintenance schedules for assets ï Create requisitions for work orders from maintenance workbench, search MRO catalogs for required items ï Track progress against work orders ï Receive and deliver items directly to maintenance location
- 16. Financial Considerations for all Business Environments Flexible cost allocation ï Automatic account defaults based on business rules ï Security-based override capabilities ï Distribute charges across multiple accounts/cost-centers ï Allocate charges to expense or material accounts based on usage Budgets & Encumbrance Accounting ï Control spending using budgets and encumbrance accounting ï Track spending limits and spend-to- date ï Real-time validation of funds during request creation ï Approvals based on budget ownership Project-based requests ï Request goods and services for specific projects ï Allocate costs to multiple project accounts and budgets ï Track and report against projects Requests charged to specific Grants ï Capture grant award information on individual requests ï Allocate costs across multiple grants ï Default grants information onto request lines to minimize data entry
- 17. Oracle iProcurement â Centralize Purchasing Control, Decentralize Execution ï Procurement policy based self-service enablement ï Support requests for all goods and services ï Productive user interface for self-service audience ï Self-service receiving for improved payment accuracy
- 18. ï Easy-to-use interface â Familiar âamazon.com-likeâ interface â Create and submit requisitions in just a few clicks ï Productivity enhancement tools to minimize data entry â Shopping lists (Favorite and Public) â Saved shopping carts â Copy requisitions Productive User Interface for Self-service Audience
- 19. Requester Supplier A Website Exchange.Oracle.com Transparent Punchout* Simplify catalog searching using Transparent Punchout Eliminate guesswork from catalog searching User sees all search results, irrespective of catalog source, on this familiar page *Patent Pending Local Catalogs
- 20. Full visibility into entire Procurement lifecycle Self-service access frees up buyersâ time ï View approval status and history ï Related POs and associated status ï Real-time tracking of in-transit shipments ï View Receipt history and associated exceptions ï Invoice and payment information
- 21. Rules-based Online Approvals Eliminate paper approvals, improve auditability ï Centralized approval engine services approval needs across apps. ï Automatic approval routing based on business rules ï Approvers can approve via email or from work list ï Nominate proxy approvers when on vacation ï Full approval trail with relevant comments captured for audit needs
- 22. Oracle iProcurement â Centralize Purchasing Control, Decentralize Execution ï Procurement policy based self-service enablement ï Support requests for all goods and services ï Productive user interface for self-service audience ï Self-service receiving for improved payment accuracy
- 23. ï Requester initiated receipts using self- service screens â Single-click simplicity â Record packing slip, waybill information â Track in-transit shipments and receive against them â Automatic invoicing based on receipt ï System initiated receipts using workflow â Automatic notification on due date â Requester acknowledges receipt via response â Automatic receipt generation based on response Self-service receiving of goods and services Increased payment control with 3-way matching
- 24. Record receipt exceptions, reconcile payments accurately using 3-way match Return to Vendor ï Self-service screens to return defective goods to supplier ï Reference RMA code ï Real-time updates to on-hand quantities ï Automatically generate debit memos for reimbursement ï Full receipt history audit trail to resolve discrepancies Receipt Corrections ï Correct data entry errors by issuing corrections ï Factor corrections into receipt audit trail for accurate reporting Receive Return Correct
- 25. Summary
- 26. Oracle iProcurement â Centralize Purchasing Control, Decentralize Execution ï Procurement policy based self-service enablement Buyers manage the spend, not individual transactions ï Support requests for all goods and services Single entry point for requests, single business rules repository ï Productive user interface for self-service audience Quicker customer adoption, smoother rollouts ï Self-service receiving for improved payment accuracy Increased control with 3-way match
- 27. Oracle Sourcing Information Age Applications Maximize Savings and Sourcing Bandwidth
- 28. Oracle Sourcing
- 29. Demand Collection Indirect Goods Direct Materials Engineered Goods Services Approval Routing Touchless Buying Automated Payment Enforce Policy Compliance Budget-Based Procurement Contract Management Supplier Performance Reduce Spend on Goods and Services Category Management Online Sourcing Spend Analysis Streamline Procurement Processes Supplier Collaboration Settlement Orders Profile Management Supplier Network Logistics Supplier Portal Oracle Advanced Procurement The Integrated Suite that Dramatically Cuts All Supply Management Costs
- 30. Oracle Sourcing Source More of Your Spend Source for Lowest Total Cost Create Immediate and Long-Term Savings Structured Event Support Cross-Functional Collaboration Knowledge Capture / Re-use Total Cost Analysis Real Time Decision Support Enterprise Integration Rapid Deployment Change Management Automated Negotiations, Bid Mgmt and Award Make Savings Stick Identify Opportunities & Suppliers Conduct On-Line Negotiations Analyze & Award Approve & Issue Define Strategies & Negotiations Purchasing Contract Mgmt Finance Marketing OtherOperations Integration
- 31. Oracle Sourcing Overview Blanket Agreements Requisitions Spreadsheets (1000 lines+) Demand Collaborative Sourcing Process Blanket Agreements Purchase Orders Outcome Global Agreements âą RFI / Survey âą RFQ âą Auction Suppliers Signed Contract Update Catalog Sourcing Templates Purchasing Data Contracts
- 32. Oracle Sourcing Enables You To⊠ï Source More of Your Spend ï Source for Lowest Total Cost ï Create Immediate and Long-Term Savings
- 33. Exploit More Savings Opportunities Sourcing Resources PercentageofSpendUnderContract Oracle Enabled Sourcing Traditional Sourcing Approach Structured Event Creation On-Line Negotiation Support Efficient Change Management System Generated Awards Automated Bid Comparison
- 34. Structured Sourcing Event Creation Greatly Reduce Preparation Time and Manual Effort Expiring Agreement 1-Click Renegotiation Instantly create new sourcing event from previous agreements Renewal Driven RFx, Auction RFx, AuctionRequisitions Sourcing Template Request Driven Aggregate requests across the enterprise to leverage buying power
- 35. Efficient Online Negotiations: Buyer Slash Cycle Time by Eliminating Manual Processes View new incoming supplier messages and incomplete tasks Drill into individual sourcing events View responses and monitor bidding activity in real-time
- 36. Efficient Online Negotiations: Supplier Slash Cycle Time by Improving Communications Suppliers can review all requirements before bid submission Suppliers review contract terms early in the sourcing cycle
- 37. Efficiently Manage Change Quickly Create New Round or Amendment âą Create and Publish New Rounds or Amendments Online âą Full Audit Trail Including Net Change Comparison âą If Suppliers Accept, Their Quotes Roll Forward RFQ 1234 Buyer RFQ 1234-1 New Round or Amendment Supplier Acknowledge Changes Publish Changes
- 38. Optimized, Policy- Compliant Award Recommendation System Generated Recommendations Eliminate Time-Consuming Manual Analysis âą Multiple Sites âą Dozens of Bid Lines Company Policy Complex Bids Maximum of 5 Vendors Minimum 60% to incumbent supplier $100k Annual Maximum âą Sourcing Rules âą Budget Constraints âą Supply Base Rules Multiple Suppliers Model multiple business constraints and supplier inputs Award Optimization Engine
- 39. Facilitated Online Bid Comparison Make Faster Award Decisions âą Utilize structured bid data - Automatic bid scoring - Consistent format for side- by-side comparison of competing bids âą 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 âą View award summary for purchase recommendation, approval, and compliance details
- 40. Oracle Sourcing Enables You To⊠ï Source More of Your Spend ï Source for Lowest Total Cost ï Create Immediate and Long-Term Savings
- 41. Cross-Functional Collaboration Combine Expertise for Higher Quality at Lower Price Commodity Manager âą Best delivery terms âą Handling instructions âą Define requirements âą Implementation planningProject Manager Suppliers Sourcing Manager Finance / Legal âą Constraints âą Costs estimates âą Market knowledge âą Best payment terms âą Corporate policy and procedure âą Latest BOM, specs and drawings Design Requestor (eg., Mfg, HR) Contract Manager Logistics âą Domain knowledge âą Supplier performance
- 42. Sourcing Knowledge Capture Drive Optimal Results by Re-Using Best Practices New Sourcing Event Bidding Rules Sourcing Policy Rules Negotiation Event Style Scoring Methods Sourcing Templates Supplier Lists Pricing Factors Knowledge from Past Sourcing Events âą Leverage Proven Practices âą Replicate Buyer Expertise âą Retain Knowledge across the Organization
- 43. Example: Template-Based Scoring Criteria Exclude from supplier shortlist Weighted scoring âą Header âą Line âą Attribute group
- 44. Total Cost and Complete Bid Analysis Evaluate Tangible and Intangible Costs *Bid vs. Transformed Bid Latin American Supplier $14 vs. $26* European Supplier $16 vs. $23* North American Supplier $21 vs. $21* Asian Supplier $20 vs. $23* Example: Supplier âCâ Bid $14 System Added Freight $ 6 Tariff $ 4 Risk $ 2 Transformed Bid = âą Capture Total Cost - Tangible (e.g., freight) - Intangible (e.g., switching costs) - Buyer and Supplier Entered âą Evaluate Transformed Bids - View Transformed or Un- Transformed
- 45. Total Cost and Complete Bid Analysis Balance Price, Quality, Promise Date, etc. Preferred quotes represent an optimal balance of price, quality, promise date, etc. Display quote price and score based on all attributes
- 46. Oracle Sourcing Enables You To⊠ï Source More of Your Spend ï Source for Lowest Total Cost ï Create Immediate and Long-Term Savings
- 47. Rapid Deployment Start Saving Immediately âą Implementation in days or weeks -- not months! âą Incrementally implement capabilities Supplier Enablement Simple RFx / Auctions Off-the-Shelf Integration Complex RFx / Auctions Start with a few key activities Quickly enable suppliers to participate in sourcing events Grow into advanced capabilities as needed Automate complete business process using integrated Advanced Procurement platform
- 48. Consistent Execution and Compliance Realize Sustainable Savings via Integration Sourcing Purchasing iSupplier Portal Procurement Contracts âą Transfer negotiated terms and pricing to execution âą Drive contract compliance and track deliverables âą Monitor contract utilization and supplier performance âą Enable suppliers to openly compete for business âą Seamlessly execute negotiated agreements âą Leverage common source of master / reference data âą âŠ
- 49. Example: One-Click PO Creation Create Purchasing Documents Directly from Award Awarded Quotes Receive Goods or Services Create Agreements/ POs Pay Supplier Workflow Enablement âą Copy all pricing, contract and deliverable information âą Eliminate manual entry and associated errors
- 50. Example: Real-Time Deliverable Mgmt Easily Monitor Compliance Across the Enterprise âą Ensure supplier compliance and consistent evaluation - Sourcing deliverables - Contractual deliverables âą Enable buyers to be proactive - e.g., Contract milestones or expirations Review status of deliverables Track notes and correspondence Drill into details Link to source document
- 51. Business Targets Contract Utilization Quality PerformanceConsumption Trends ïExpose need for new or revised contract ïEvaluate supplier and contract performance before renewal ïTrack KPIs including Example: Contract Intelligence Evaluate Compliance and Identify Opportunities
- 52. Seamless Data Flows ï· RFIs ï· RFQs ï· Buyers Auctions ï· Templates ï· Attributes ï· Etc. Procurement Data Sourcing Data Integrated Flows ï· Requisition to RFx/Auction Creation ï· Requisition allocation upon award ï· Removal of requisition from requisition pool during negotiation ï· Return of requisition to requisition pool on cancellation/partial allocation ï· Negotiation number viewable in iProcurement ï· Contract to RFx/Auction creation for renewals ï· Contract created from award ï· PO created from award ï· Sourcing accessed from single iSupplier Portal ï· Supplier search of the Supplier Master and ASL ï· Requisitions ï· POs ï· Contracts ï· Etc.
- 53. Shared Data ï· Requisitions ï· POs ï· Contracts ï· Etc. ï· RFIs ï· RFQs ï· Buyers Auctions ï· Templates ï· Attributes ï· Etc. Procurement Data Sourcing Data Shared Data ï· Operating Units ï· Buyers ï· Buyer Approval Hierarchy ï· UOM ï· Ship to Addresses ï· Bill to Addresses ï· Currency ï· Payment Terms ï· Attachment Repository ï· Purchasing Categories ï· Inventory Items with revision ï· Contract Variables ï· System and User- Defined ï· Supplier Responses ï· Contract Deliverables ï· Contractual & Negotiation ï· Contract Clauses ï· Contract Templates ï· Suppliers ï· Approved Supplier List ï· Supplier Classification ï· Supplier Commodities
- 54. Cross-functional collaboration, sourcing knowledge capture / re-use, and total cost analysis Source for Lowest Total Cost Easy sourcing event creation, management of on-line negotiations and bids, with automatic system- generated recommendations Source More of Your Spend Oracle Sourcing Rapid deployment capabilities with modular integration to Advanced Procurement, and real-time decision support including deliverable mgmt Create Immediate and Long-Term Savings