advanced procurement mary burns what’s new in e-business suite release 12: the procurement...

Advanced Procurement

Mary Burns

What’s New in E-Business Suite Release 12:The Procurement Professional’s Release

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

A Decade Of Procurement InnovationWhat’s 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

20051995 2000

Employees & Business Managers

Sourcing Mgrs & Budget Holders

Suppliers & IT Departments

Legal and Contracts Managers

Accounts Payable

Data Analysts & Category Managers

Data Analysts & Project Managers

HR & ITProfessional Buyer

Spend Data Management

Contract ManagementAnalytics

Services ProcurementSourcingeInvoicing

Supplier EnablementeProcurement

Procure-to-Pay


• Procurement Challenges & Opportunities

• How Oracle Delivers

• A Look at Release 12

Agenda


Oracle Advanced ProcurementThe Integrated Suite that Dramatically Cuts All Supply Mgmt Costs

Spend Categories

IndirectGoods

DirectMaterials

EngineeredGoods

Services ApprovalRouting

TouchlessBuying

Automated Payment

Enforce Policy Compliance

Budget-BasedProcurement

ContractManagement

SupplierPerformance

Reduce Spend on Goods and Services

CategoryManagement

OnlineSourcing

SpendAnalysis

Streamline Procurement Processes

SupplierCollaboration

Settlement

Orders

ProfileManagement

SupplierNetwork

Logistics

SupplierPortal


Exploit Savings Opportunities and use Open Competition to Improve Price / Terms

BlanketAgreements

GlobalAgreements

Signed Contracts

• Templates, standard T’s & C’s

• Two-way MS Word integration

• 1-click renegotiation for agreements

PurchaseOrders

SourcingRules

• Automatic price & terms enforcement

• Preferred supplier enforcement

• Online negotiations

• Online ‘expert’ collaboration

• Award optimization

RFI /Survey

RFQ

OnlineAuction

Reduce Spend on Goods and ServicesIncrease Sourcing Efficiency and Effectiveness

Au

tom

atic

Im

ple

men

tati

on

Ag

reem

ent

Cre

atio

n

Requisitions


Streamline Procurement ProcessesReduce Manual Effort to Free Staff for Higher-Value Activities

Transaction Execution

Higher Value Activities(e.g., program management)

Procure-to-Pay AutomationProcure-to-Pay Automation

Create Purchase

Order

Dispatch Electronic PO to Supplier

Auto-Approve Minor

Changes

Receive Goods or

Services; Inspect

Receive Electronic

Invoice

Pay Supplier(EFT)

Apply Agreement

Terms & Conditions

Apply Auto-Source Rules

Higher Value Activities(e.g., supplier development)


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

Purchasing Transactions

Return or Modify Reqs

AutomaticAutomation

Approvals

RejectionsPurchasingProfessional

Exceptions Buyer-Assisted

Indirect & MRO

DirectMaterials

DemandSources

Designed Mat’ls

Services

DemandQueue

Document Creation

RulesConfig.


AnsweringSupplier Queries

HelpingRequesters

ManagingContent

CreatingManual Orders

Project-Based

Procurement

Monitor &Review

Controls

Strategic

High

Medium

Low

Val

ue

Val

ue

Release 12 -- Rethinking the Routine Automate Routine Tasks, Focus on High-Value Activities

Oracle AdvancedProcurement

SupplyOptimization

SpendAnalysis

ContractNegotiation

InternalBenchmark

Delivery

Advanced Procurement R12The Procurement Professional’s Release

Unified Workcenter For All Procurement Responsibilities

Improved Support for Complex Goods & Services

Expanded Supplier Management and Enablement




• View exceptions across multiple applications and operating units

• Create, implement, and execute agreements

• Analyze performance of procurement & suppliers

NegotiationsContracts & Agreements

Invoicing & Payment

Supplier ManagementRequisitions

PO Execution

• Exceptions• Agreements• Performance Analysis

Professional Buyer’s

Work Center

Single Access Point for All Responsibilities

Professional Buyer’s Work CenterEnable Command & Control for the Procurement Professional


Professional Buyer’s 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


• 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

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

Oracle Procurement Contracts

• Identify modified clauses

• Review changes in detail

• Accept / reject offline changes

XML edit

s

Legal SupplierStakeholders

XML edit

s

Contract Administrator


Two-Way MS Word Synchronization (cont.)Automatically Import Redline Changes for Superior Compliance

Review each Review each change in detailchange in detail

Accept or Reject Accept or Reject offline changesoffline changes

Identify modified Identify modified clauses at a glanceclauses at a glance


Complex Requisition Approvals Graphically View Approval Chain & Requisition Status

Support for Viewers

• Keep people informed of business purchases and decisions without requiring a response

• Maintain key stakeholder engagement & oversight

Parallel Approvals

• Notify multiple approvers of a requisition simultaneously

• Reduce approval cycle time

Position Hierarchy Support

• Define approval routing structures that remain stable even if individuals / organizational structures change

• Minimize workflow maintenance


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)

Technical Team

Technical Capabilities (40% weight)

• John = 90• Mary = 85• Sue = 80

Commercial Team

Price (40% weight)

• Sue = 75• Doug = 80• Tina = 85

Quality Control Team

Past Performance (20% weight)

• Alan = 90• Mark = 80

Quote ABCQuote ABC

Technical Capabilities

Price

Past Performance

TOTAL SCORE: 83

= 34

= 32

= 17


Drive Consistent Execution of NegotiatedTerms & Conditions in All Spend Categories

Procurement for Complex ServicesSource to Settle Support for Complex Payments

Request for Request for ServiceService

• 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

Supplier Collaboration

Negotiate Negotiate AgreementAgreement AdvancesAdvances ReceiptsReceipts InvoiceInvoice PaymentPayment

Negotiate Payments:

Make Payments:Examples: Validate: Match: Enforce:


Procurement for Complex ServicesDefine Progress Payment Schedule

• Suppliers provide timecards, receipts, and work confirmation information that are matched with agreements and invoices

• Settlement drives release of recoupment of advances & retainage

Define progress payments - rate, Define progress payments - rate, lumpsum & milestone pay itemslumpsum & milestone pay items


Prospective Supplier Registration Reduce Overhead with Self-Service Registration

Supplier RequestsSupplier Requests

• 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

Supplier RegistrationSupplier Registration Review & ApprovalReview & Approval

• 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


Supplier Management User-InterfaceStreamlined Supplier Profile Management

Create supplierCreate supplier

To Do List for requestsTo Do List for requests

Search or drill down to supplier detailsSearch or drill down to supplier details


Unified Catalog ArchitectureEstablish a Single Authoring, Ordering, & Maintenance Environment

Punchout & transparent punch-out

Catalog AdminBuyer

Supplier

Sourcing User

Requester

Buyer

CatalogCatalog

Bulkload / online author & update content

Upload and maintain content

View, approve, add, edit, and delete items

Add new items from award lines

Approval workflows

Reduce Maintenance Efforts and Drive Spend Visibility


Content Security with Content ZonesProvide the Right Content to the Right People

Promotional Items

Marketing Exec

Maintenance

• Improve control over what end users can see & user buying experience

• Execute organizational unit-specific procurement strategies

• Reduce risks associated with sensitive categories

CatalogCatalog

Industrial MRO

Professional buyer

Partition content into zones

Combine zones to create stores

Grant access by OU or responsibility

Co

nte

nt

Zo

ne

1

A

Su

pp

liers

Categories

C

B

X ZY

X

X

Co

nte

nt

Zo

ne

2

A

Su

pp

liers

Categories

C

B

X ZY

X

X

X

X

X


Purchasing Mgr

Within Requester’s tolerance?

Route to Requester’s hierarchy

PO updated & submitted to

approval workflow

Route changes to Buyer

Route changes to buyer’s hierarchy

Within Buyer’s

tolerance?

Yes

No

No

No

Yes

Yes

PO Approved

Approver

Buyer

PO changes within limits?

Exception Processing

Touchless Processing

eMail

OSN*/ XML / EDI

Supplier Portal

Fax

Tolerance Based Auto-ApprovalsAutomate Processing of Routine Change Requests

Supplier Change Orders / Requests


Self-Service Supplier ScorecardingDrive Improvements w/ Access to Supplier Performance Management

Spend analysis trendSpend analysis trendSupplier management KPIsSupplier management KPIs

New in 11i.9…Base Differentiators…• 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

New in 11i.10…• 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 T&Cs 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

Evolution of Oracle Advanced Procurement


New in R12…

• Professional Buyer’s 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


Evolution of Oracle Advanced Procurement

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

• Work confirmations

• Retainage & authorization of release

• PO lifecycle tracking

• Non-PO invoices

• Clause usage & compliance analysis

• Supplier-managed user admin

advanced procurement mary burns what’s new in e-business suite release 12: the procurement...

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