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Oracle Fusion Applications Webinar

Oracle Fusion Applications Family Overview – Procurement, April

20th, 2010

Presenter: Vice President Tom Anthony

MR. TOM ANTHONY: Good morning, everyone. Welcome to the

Fusion Applications Foundation Series. This is the Oracle

Fusion Application Family Overview for Procurement. I am Tom

Anthony, Vice President of Procurement Product Strategy.

Today we are going to walk through Oracle Fusion Procurement,

what's there, what's great and walk through just the high

level functional differentiators of the product to give you a

good idea of what's in the solution, as well as show you some

demonstrations. With that, we'll jump right in.

Safe Harbor statement is standard in all of our presentations

to make sure that, as you know, any of these features and

functions can change by the time that we go live with the

release.

Let's begin with talking about what Fusion Procurement is.

Really, it's an integrated suite of procurement applications.

If you think about what we have in our market today across

our various products in procurement across E-Business Suite,

Peoplesoft and JD Edwards, really delivering to the market an

integrated suite of procurement applications is important

really to try and drive better procurement processes across

an analysis during supplier negotiations, creating and

enforcing contracts, working with your suppliers, managing

catalogs, allowing requisitions to be created, turned into

purchase orders, receiving to happen in payable.

Really, when we talk about Fusion Procurement, there is a

broad stroke of applications available to manage the end-to-

end process. The real goal is to help organizations drive

better procurement processes, drive down their costs and do

it in a way that is a little bit better from the usability

perspective, gives them better decision-making capabilities

and providing them tools for making decisions, giving them

better analytics in the tools and then streamlining the

actions within the application. Really, we are trying to

pull together what we consider to be best-in-class of

procurement functionality from all of our different products

that we had available and in some cases, actually rethinking

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how procurement has transformed over the last decade and

rethinking how Fusion applications should really deliver a

better procurement solution.

Before I dive into the different functional areas, I thought

it would be good to level set the different products that are

available in the Fusion Procurement Suite. I'll contrast

these to what's available in the different suites today to

give you a good comparison for what the module equivalences

are.

In Fusion Procurement, we've got our purchasing application

that is obviously equivalent to E-Business Suite purchasing,

Peoplesoft purchasing, JD Edwards purchasing, really geared

towards that buyer function for managing requisitions and

purchase orders, etc.

Then we've got self-service procurement, which is an

equivalent of iProcurement on E-Business side, eProcurement

on the Peoplesoft side, requisition self-service on the JD

Edwards side. So it's really geared towards employee self-

service for finding the goods and services that they need,

placing a requisition, getting that requisition approved and

then into the purchasing process from there.

We'll walk through each one of the modules in detail as we go

through. I wanted to give you that equivalency.

Sourcing is equivalent to Sourcing in E-business Suite,

Strategic Sourcing on the Peoplesoft side. It is a super set

of functionality that's in the operational sourcing on JD

Edwards.

Procurement contracts is equivalent to Procurement Contracts

in E-Business Suite. It is also the equivalent of Supplier

Contract Management on the Peoplesoft side. It's really

around managing and negotiating contracts.

Supplier Portal is the equivalent of iSupplier Portal on the

EBS side from a module perspective. It's equivalent to

eSupplier Connection on the Peoplesoft side, Supplier Self

Service on JD Edwards.

Then we've got spend and performance analytic. It's our OBIA

as well as additional functionality around reporting, getting

into that data warehouse and better decision-making tools

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across both where are you spending and also your operational

efficiencies.

With that said, I'm going to now walk through each one of the

different product areas represented here and give you what's

new, what's exciting in each one of these, to give you a leg

up as you go into the deeper TOIs in each one of these areas

and give you that overview and get your armed with what to

look for when you're hearing those TOIs.

If we start at Oracle Fusion purchasing, this is the core

transactional executional portion of procurement. What we

want to be able to do is provide a comprehensive purchasing

solution so you've got the ability to manage agreements with

your suppliers in the system, manage requisitions, manage

purchase orders, manage receipts, manage your suppliers and

your items and all those things to really do an end-to-end

rec to check process.

What we have done besides just looking at making sure that we

had good functional coverage there was we wanted to make sure

it had a very intuitive design. We wanted to look at what

are the typical interactions that a buyer has on a day-to-day

basis and provide them a better set of tools for not just

navigating through this system, but provide them the work

that they need to do and provide a very easy way to do that.

Increase, basically, that buyer productivity in the system

and reduce the learning curve that we've got using the

applications and just reinforce that.

As we brought in customers for testing over the last year,

using the application in a live fashion, it's been across the

board that the customers have really reinforced that they

find the application very usable. It's what they call

learnable. It really does come across the users as they see

the system and interact with the system, that we really have

taken this a step forward in productivity in interaction with

the system. It is an important thing.

The next concept that we have introduced into Fusion

purchasing is something we are calling center driven

procurement. We have had center lead initiatives. We have

had shared services initiatives. Really what center driven

procurement is about is that organizationally procurement

departments and procurement organizations have organized

themselves around having centers of category level expertise.

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There is a new role that has emerged in procurement called

the category manager. That category manager is responsible

for negotiating with suppliers, managing agreements, looking

for cost savings. We wanted to realize in our application

that sometimes those centers of procurement expertise are

centralized. Sometimes those are decentralized in the lives

of business. Sometimes those are even decentralized down to

individual location level areas of expertise.

We wanted to be able to model in our Fusion Procurement

applications better support for how procurement organizations

are managed, ride better information to those procurement

centers to how they do business, really support information

to help make them get better decisions, find better cost

savings, and really execute in a much more flexible manner

and give companies the opportunity to centralize and

decentralize procurement functions as it makes sense for

their business and not really tie them to organizationally

how they are aligned. That's our core concept. I'll

actually talk through a little bit more on the next slide on

that concept. It is an important one.

The next area is that we've unified the procurement approval

workflow. If you look at E-Business Suite, we've had a core

work flow. We've had AME. We've had on the Peoplesoft side

a core work flow and a work flow that was available in

eProcurement. We have had different work flow technologies

available with different functions. What we did--and this is

across all of Fusion, it's not just tied to procurement

itself--is that we've used a common technology platform for

procurement work flow to support things like FYI

notifications and parallel approvals, etc., and provided a

common way of approving documents, be it a requisition, a

purchase order, a purchase order change, an agreement, etc.,

across the flow. It really helps simply creating rules and

defining rules and policies and helps improve policy

compliance overall in our organization. It's another key

concept for Fusion Procurement.

The next area is document change management. Better ability

to control what changes are allowed and who can make changes

and whether those changes are internal changes or a supplier

facing changes is really what document change management is

all about. I will actually walk through that in more detail.

The concept is that you want to insure that people are

allowed to make the changes that they need to make in a

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controlled fashion to purchasing documents. That would be

like a purchase order or an agreement, have controls in place

and then be able to control whether that's change that's

internal, administrative, or a change that you do need to

notify the supplies. Why this is important is that you want

to make sure that if it's in internal change, like a change

to your accounting structure for example, you want to make

sure that you've got that change captured. You want to know

who changed it, when they changed it and even capture

potentially why they changed it. You don't want to

necessarily send that out to your supplier and say revision

to that purchase order. What tends to happen is if you do

that, then you get duplicate supplies. The supplier doesn't

know that it's a change to an existing order. They think

it's a new order and you get duplicate orders coming through.

What we wanted to make sure is that we've got a better way of

communicating those changes as well s tracking them. I'll

show you a little bit more details here in the next couple

slides.

The last area is really about improving buyer productivity.

We've got a buyer's work center that really drives and, in

general, you'll see a lot of different work centers here.

But for the buyer, we wanted to drive buyers to key areas

that need their attention directly from their work center

page. If they've got requisitions that need attention,

they've got purchase orders that need attention, agreements

that need attention, rather than having to navigate around to

different areas, we wanted to provide them one landing page

that really drives them to take action directly from there.

You will actually see that screenshot. As well as provide

them better embedded intelligence around how they are being

measured and giving them some information.

These are some of the key areas within Fusion purchasing. I

was going to dive into a couple areas in a little bit more

detail.

We talked about center driven procurement as a way of better

modeling how organizations are organized around category

expertise. I mentioned that organizations may centralize or

decentralize or have what is called center-lead. That

center-lead organization is an organization that is

responsible for negotiating and creating agreements with

suppliers but aren't necessarily responsible for executing or

turning reqs into purchase orders against that agreement.

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Usually they're doing that on behalf of an organization.

Typically they involve that organization in the decision

making and negotiation with suppliers but then allow the

organization that they are serving to execute.

We've got a way of modeling all those different types of

relationships. What we've done in Fusion, for those folks

that are very familiar with procurement, is we now have

distinct business functions that allow you to create distinct

business units around requisitioning business functions and

procurement business function and then for a transactional

ownership of a transaction they sold to business unit.

That separation of requisitioning in a procurement business

unit allows you to create kind of a source of demand being

direct to you and the servicer or a place that is servicing

that demand to be a procurement business unit. There is many

flavors within that. We've got the ability now for a

procurement business unit to service multiple requisitioning

business unit. So they can create agreements, for example,

within a procurement view that they can say which

requisitioning business units could buy off of that

agreement.

You can set up global agreements. You can set up very

organizational focused agreements or even location focus

agreements. As well as from a requisitioning business unit

perspective, they can be serviced by multiple procurement

units. They can have a local purchasing organization as well

as many centralized or even divisionally centralized

procurement organizations that buy for them. You might have

centralized legal span, centralized marketing span. You

might have decentralized or line of business packaging and

then location level raw material, for example, type of buying

going on.

The whole reason for this is that we wanted to give

organizations a flexibility for when they did localized or

centralized procurement functions, and we wanted to also

simplify, set up and reduce the data administration. As you

look at this model, no longer are you having to replicate,

for example, sold-to business units, which is what we do on

the E-Business Suite side. Replicate sold-to business units

by requisitioning line of business. You only have to define

that in the procurement view, write that agreement, then

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point to the different decentralized requisitioning business

units.

Similarly, on the Peoplesoft side, most direct customers

ended up creating one set ID because you couldn't model using

a set ID concept centralized, global suppliers, divisional

supplier, and localized suppliers. You'd have to create

multiple sets. It really helps to reduce data administration

and also improve the alignment of procurement departments.

The next area I want to talk about is informed actions. This

is around the buyer's work center. On this very small screen

shot, I hope you can see, that we're driving users to a

requisitioning summary area, an order summary area and

agreement summary area with different tabs for things like

negation required things that require attention, so that

we're really driving the user to take action directly from

within this, as well as providing them metrics on the right-

hand side to get better decision support. Really helping

users find the work they need to do very quickly, take action

on that and know how they’re being measured directly within

the application. So this is a pretty exciting way for users

to interact and we think it is really going to improve their

productivity as a buying organization.

Around unified approvals. I talked to this across all of

Fusion Applications, but specifically involved the ability to

improve the ability to route and manage approvals across the

organization. It's all rules based. We're underneath the

covers from a technology perspective. We're using business

process execution language--BPEL or BPEL, depending what part

of the country you are in. We support things like ad hoc

approvals, so if you need to add people that don't come up as

part of the rules engine and you need to add them. We

support ad hoc approvals We have FYI notifications so people

can be notified about a purchase but not necessarily approved

before you can turn it into purchase order. We've got a

graphical view of the approval chain with the ability to

preview approvals within the application. We've got a very

robust tool set for managing and defining those approval

processes so it's auditable as well, which is an important

aspect in today's procurement organizations.

We also have the ability to extend our approvals engine using

this tool set where you can actually utilize business

intelligence or even external web services to help drive your

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approval. If you think about approvals for a requisition

that's going to go to a supplier that is deemed high

financial risk, you may actually want to drive that approval

through a category manager or through senior management of

approval in procurement before you let that purchase go

through outside or you normal hierarchical approval. It's a

way to use information that's captured in BI to manage risk

in the applications as well as in leveraged approval. It's

another exciting way that we can leverage the technology in

Fusion.

In document change management, I touched briefly on this on

the overview slide. Really, we got the ability for multiple

roles. We've got the requester role, the buyer role or

supplier role. Each one of those types of folks could

request changes to a purchase order or to an agreement within

the constraints to guide obviously around approvals and

tolerances in your work flow.

You may or may not want to allow requester-initiated changes

or supplier-initiated changes, but it is a great way to allow

that to happen in a controlled fashion. If you want to have

suppliers author their own agreements, allow them to make

changes to descriptions if they have abates to item levels,

item information for example, or it they want to submit

changes to pricing, you can control that and if it's just a

description change, let that flow through without buyer

intervention. But if they change price, you do want to

enable buyer intervention. That's one way that we can

control the initiation of a change and make sure that that's

controlled.

Some of the key features is that we can route for approval

based upon who initiated the change. You may not want to

route necessarily a buyer-initiated change for approval, or

you might want to route a request for a supplier initiated

change for approval.

We have the ability to execute against either a purchase

order or agreement while you got changes pending. Think

about renegotiating long-standing agreements with suppliers.

Sometimes that negations process can take months. I've seen

them take three to six months to renegotiate, and you want to

make sure that you're executing against the last agreed-to

agreement in the application while you are still working

through updates and amendments and renewals.

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We have the ability to configure what we call an amendment

versus administrative change. We have the ability to track

revisions in the application and send out revisions that, as

I mentioned before, if it's something internally, you don't

want to send that out to your supplier. If it's a supplier

change, like I'm changing the item or I'm changing the

pricing or I'm changing the dates, that is something I do

want to send out to the supplier and get their response to.

We also have supplier either approval or rejection or

acknowledgement dates. We can revert back to a previously

approved version. If you started to renew or amend an

agreement with a supplier and those negotiations end up not

ending in a finalized approved agreement, we can revert back

to the last approved and really, there is no change to how

you executed.

We've got a complete document change history of everything

that changed, whether it was an internal administrative

change or a supplier facing change in the application with

who changed it, when they changed it and you have a complete

visibility to that document's history being a purchase order

agreement.

That was an overview of purchasing. I’m going to jump into

the next area here. For those of you getting slides, there's

a demo right around the corner.

Self-service procurement is the next area. Again, it's the

employee self-service for creating requisitions for goods and

services. Really we wanted again to have a very tightly

integrated self-service capability. We built a number of

these in the past across a different set of applications very

intuitive. Really, we got the ability to create and manage

requisitions and approvals. Things you'd expect to be able

to do in the application and really help manage employees

spend and drive them to preferred suppliers. Things that are

new and different.

If you think about rolling out an employee self-service

solution to thousands. I've seen deployments of over 100,000

users. The real trick is that classroom-based training

really doesn’t work. Because if you think about how often

you interact with self service procurement--I personally go

in maybe every six months to order things I need--if you try

to do classroom based training, by the time they need to use

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it, it's no longer really in their frame of mind and they

really need to be reminded how to do it.

We've got in the application embedded learning, really to

take lessons learned from our user productivity kit or UPK in

providing rich--not text based. I don't want to read a

manual. I want to see how to do things and get a visual

queue and really provide that embedded learning. I'll

actually show that you. We have the ability to really

provide a rich user assistance when they need it and really

minimize the training requirements involved in rolling this

out to the broad masses.

We've got a consumer centric user experience, so things you'd

expect to see when shopping on your favorite online sites.

We've got search capabilities, browse capabilities, compare

favorites, recent items to e-mail, all those great things.

Really to help encourage broad adoption, it should look very

similar to things they use from a consumer centric outside of

the work place. You'll see that when I do the demo here that

it's really something that most folks that do shop online

will be very accustomed to.

The next concept we have is a catalog superstore. We've got

the ability to basically categorize or associate categorize

to not just internally hosted content but you can categorize

now you punch out suppliers, your favorite items, your smart

forms, informational catalogs, in a way that allows them to

find whether the use search or the use browse, find the

concept that they need very quickly. I'll show you how that

works in the next slide in a quick example.

Lastly, we did quite a bit of work with our customers around

what types of analytics would they want to provide requesters

to help them make better buying decisions. You'll see that

we've got some analytics around for example cycle time, that

helps users set expectations for how long something might

take to receive so that they are not bothering the buyer

right away when the place that order.

Before I jump to the demo, just a real quick example on the

catalog superstore. In this example, typically you'd have

local content if you're loading up catalogs from your

suppliers, like Staples, etc. You can load that content.

But you have also got punch out suppliers. What you want to

be able to do is take things like Office Depot or Corporate

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Express that are office supply suppliers, associate them to a

category such as office equipment and accessories so that

anytime I do a search that it results in an underlying

category. If I was searching for scissors or staplers, not

just show them the local content, but show them that we have

punch out suppliers available in that category as well.

Similarly, we have the ability to do that with smart forms

and informational catalogs as well. It really gives the user

the ability to find what they need without necessarily having

to know where you put it in the catalog.

Without further adieu, I think I'm going to jump into a quick

demonstration of self-service procurement. I talked about,

as employee, now I've logged in. I've got into the system

and I need to place an order for goods and services. As I

mentioned, I might not necessarily know what to do. Across

all of our applications, anytime you see these--in Fusion

applications, anytime you see this little question mark, it's

a way to pull up different types of help from our embedded

help platform. We could have things like policies,

procedures, manuals.

Here I'm going to go into what's closer looking to a UPK, or

user productivity kit. I can hover over that, and I can see

information about this type of help. We actually have user

rating capabilities so you get feedback on is this a piece of

help that is actually useful by other people that have looked

at it, for example. This I can see is now a quick two or

three self-service shopping, so I'm going to go ahead and

click on placing an order.

We've got different versions of this. Some folks, when they

deploy a UPK, they do a see it, which allows users to walk

through visually a process. You can also do things like try

it, which allows you to interact with a mock system. It

walks them through step-by-step but they are taking action.

You can also test it or know it where you test proficiency.

You typically wouldn't see this in employee self service, but

in areas like buyer proficiency or category managed

proficiency or even supplier proficiency. It's an area

dependent test that they understand, for example, if you're

doing a negotiation with the supplier, they understand how

they enter a bid and those types of things.

Here we're going to go ahead and jump into see it. See it

walks basically the user through an interactive step-by-step

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flow. As I said before, you can also make this where they

have to take action. This walks that user through it and get

a good understanding of how to do a search. In this case,

we're walking through the whole process. Very rich content

once again at the point used to help better train the mass

amounts of users.

Now I've seen how to do it. Let me show you a couple other

concepts that you've got. We have the ability to browse.

Some users like to search. Some users like to browse, and

sometimes it matters on what they're buying. This end user

has the ability to browse the catalog from here. They can

manage their requisitions. They can see what we call

purchasing news, that there is new categories available, that

there is new policies that employees need to be aware of.

You can display that in the purchasing news. We've got

additional quick links up to the right.

I'm going to jump into the office supplies category. Within

here, typically what you'd expect to see. We've got a list

here of the things that are in this category. We've got

additional drill down. It's not just drill down, but it also

provides counts to let the user know what is the most

populated category within the system of browsing. I might

want to further drill down into desk supplies. You've got

additional views in this as well, if you wanted to view more

of a grid format versus this is what we call our paragraph

format, with your rich description. You've got your images,

all the additional information. You could edit to shopping

list, set it to your compare. It directs all those types of

things.

That's just one quick example of being able to drill down

from a browse perspective. We also have the ability to drill

in the search. If I do a search, for example, for printer

here, what it comes back with then is similar format that is

found in a search. If we had, for example, a punch out

supplier that was set up in the category of printers, it

would have shown up at the top as well as some other option.

Here we've got a couple of different printers to look at.

We've got a color photo printer and a color ink jet printer.

I want to see the actual differences between those two. Let

me add that to compare. Now it adds it to a little compare

bucket down here.

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I can do side-by-side comparisons. This is where some of the

embedded analytics kind of come into play. So we've got a

couple things to look at here. We've got our paragraph side-

by-side view of additional information. We've got the

ability to add new columns here as well. We also have two

things I want to point out. One is item popularity rank.

So we're looking in this category and showing this is the

number three out of number ten most ordered printer. This is

number five out of ten, just to give you a relative ranking

for what other folks in the organization are buying.

Then we also heard from our customers. They wanted to set

expectations for the user for how long something might take

to receive. So, for example, here you've got two different

printers. One takes seven days, one takes thirteen days.

What you want to avoid is that somebody orders something and

they are calling the buyer the next day saying hey, what's

the status. It really wastes time. Setting this high level

expectation for how long things take to get approved and

process and then fulfilled really just helps set expectations

and cut down on calls to the buyer.

I'll just go ahead and add it to the requisition. I can add

multiple things to my requisition. It adds up in your

requisition area to the right. Once I'm done, I can go ahead

and edit and submit.

We've got a one page check out where you can do things like

change or add your billing. Down below you've got project

information. Here, we're showing you again the average

requisition fulfillment time for the item. You can add to

your description any justification to your approvers, and you

could also preview your approvals and generate a PDF.

At this point, you just want to submit it. One of the things

we heard from our customers is that requesters still haven't

necessarily gotten rid of paper. So we have the ability to

generate a PDF directly after they've done the submission as

well. We're going to hit okay. If you hit okay, it's on the

requisition pool, and you're done.

I hope that showed some of the newer capabilities in self-

service procurement, some of the embedded analytics, etc.

Just to give you a high level play order. As I said, there

will be more detailed TOIs available as we progress in each

one of the areas that I'm demonstrating.

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Things that we saw: We saw the embedded learning, the

ability to rule out training to the masses. We saw what I

hope you would agree is a consumer centric user experience.

Very web-based look and feel for something you might see in a

consumer world. The catalog superstore grouping not just

internal content but all the content in allowing search and

browse and the embedded analytics to really help drive better

supplier comparisons and allow the requester to make better

buying decisions. I hope that gave you a good, quick feeling

for self-service procurement.

The next area I wanted to cover off was Fusion sourcing.

This is the tool that we use for negotiating with suppliers.

These negotiations could be used in things like request for

quote. It could be a request for a proposal, a request for

information, and we also support auctions. Really we try to

streamline the process what had in the past been a very

manual paper-based negotiation process. We streamline it,

make it available online.

What have we done here to make it new and unique? We've got

what we call smart sourcing, really providing category

managers the information that they need to make better

negotiating decisions. What things should I put out for bid?

What are their opportunities for cost savings? Whether our

suppliers are performing or not performing and take that into

account as a procurement service organization making better

buying decisions. We're really helping them to enhance how

do they negotiate and use these tools to better manage

negotiations with their suppliers.

We've got multiple negotiations styles and templates. Both

our EBS and Peoplesoft products support templates. What

negotiation styles does is that we've got an awful lot of

functional capabilities in our sourcing platforms today.

What negotiations styles does is it lets you tailor for the

type of negotiation you're doing, what functionality you want

to make available to the user. If you've got basically a

negotiation style that's going to be a very simple cost-only

auction, you really only want to show three out of the seven

available big steps of creating a negotiation. You don't

need to have a lot of the detailed constraint-based type of

functionality or multiple attribute based comparisons.

It's a way to streamline the functionality and application.

It's been very well received by the users that have been

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overwhelmed from the usability perspective of how many things

there might be to set up. Also help streamline the creation

of negotiations with suppliers.

We've got spreadsheet integration pretty robustly throughout

the application. You'll see some of that where both

suppliers can take a negotiation basically offline and do a

spreadsheet, fill out the information and upload it directly

back in. Then buyers have the capability for when they're

doing their analysis, download all the different supplier

bids into an excel worksheet, manage with their own

calculations, etc., and then upload in a Word decision. It's

the way that most people work today so we want to make sure

that we had robust capabilities for managing and interacting

spreadsheets.

We also have what we call a negotiation planning. We've got

a negotiation calendar that shows from both your view and

also your procurement organizations view what negotiations do

you have, not just ongoing, but what's upcoming. We've got a

calendar view that really helped familiarize everybody in

that department with what's going on and really provide a

better visibility to what types of negotiations are going on.

We also have improved our line negotiation monitor. We've

got a very nice graphical view of supplier negotiations,

being able to see what bids are coming in, where is the price

trending and be able to really monitor and manage it in real

time. You'll some of that.

We've also got a guided negotiation creation, a step-by-step

guide, based upon what negotiation style you're doing, a

step-by-step guide to walk the user how to create a

negotiation.

So with that said, let's go ahead and see the sourcing

product in action. Similar to what we saw from a requester

landing page, this is from a sourcing perspective. If you're

a category manager, in your negotiation these are the types

of things you are going to be pretty interested in. You've

got a negotiation calendar that I talked about showing you

the upcoming negotiations. You got recent activity. You've

got ongoing negotiation drafts, and I'll go into each one of

these areas.

If you are going to start at the negotiation calendar area,

each of these are different negotiations that occurring.

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We've got a day view, week view, month view with certain end.

You can mouse over and see additional information about when

is it closing, additional things like what's the title and

the status, etc. So it gives you a good view into--and these

are color coded based upon an auction and RFQ and different

types. Very quickly for users to see the information they

need.

In the recent activity area, if you think about negotiating

with suppliers, there is an awful lot of activity that could

be happening between suppliers submitting bids, things

ending. Rather than just provide folks with different areas

to navigate to and find work to do, really this recent

activity brings it right to the user to see that this is

something that has recently occurred. Not just show them

what occurred but be able to drill in, and here's a

recommended action.

Here we have a new response that came in from a supplier.

What you typically want to do is go view that response

versus, for example, you've got an award decision that's been

saved. You want to go complete it. Here we can go into the

response history. You can see the supplier. You can drill

into the response itself to show basically what the bids that

came in, how they are ranking, and different information.

It's a way to quickly see and take action within the

application and not really necessarily have to drill around

for the work to see.

If we go back in, let's walk through the process of creating

a draft. I'm going to jump into one that I saved a little

bit earlier and edit it. I'll show you what it looks like.

Up top, you see the--I talked earlier about a guided creation

process. Based upon the style I've got and I've got a very

complex style here. I've got a RFQ. Basically it's showing

all the different areas. So I've got a cover page, an

overview, requirements lines, terms that I can add, suppliers

and then a review at the end. So it's a way for the user to

see what they've completed and what's left to do.

One thing I didn't touch on from a technology perspective

with respect to procurement is that we support tagging. If

you think about negotiation with a supplier, different

purchase orders with the supplier that are linked together,

for example. I may want to tag these if it's related to a

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project I'm working on or a specific asset build out or what

not. I can tag negotiations, purchase orders, requisitions

and share those tags as well. Here, I want to tag this

negotiation. I can enter in. It's a test RFQ tag, and go

ahead and save it. Anytime I search for a test RFQ or what

not, this is now going to show up as a related document to

that tagged item.

This is our cover page. It's rich text format. You can add

additional variables in here. If you saved it as a template

and you have dates and parties, it will repopulate into here.

We can go into the overview. This is where you are going to

set up your controls so you can have a general overview, your

terms, your collaboration team. Then you can go back down

and you can say whether you are going to support waiting,

what kind of layout are you going to use, what are your price

tiering looking like, what are your rules for--are you going

to share this? What level of information are you going to

share to suppliers? It's all of your controls.

In the requirements area, this is where you can add things

like minority women owned business entity classifications.

You want to make sure that you're giving a preferred waiting

to that. You can set up multiple visa in the application,

and all of these you can drill into this. For example,

you've got a description, whether a response is required.

You've got multiple types and here I've got a simple yes/no

classification.

We can go into the line level detail. You can add multiple

lines. Each one of those lines can have a different

attribute as well. This is going to set up things like if it

was going to be quantity. Here I've just got a fixed price

services line for installation services, what I think the

estimated amount and the current price is, and that's what we

use for calculating savings. You can set up all your

different lines and suppliers are going to respond to. You

can then invite suppliers. In our supplier edition here, I

can search and add, do a selection for basically using any of

these criteria and you can actually look for additional

criteria as well.

You can search for these suppliers, go ahead and add them,

and it adds them to similar to what you saw on the

requisition self service, regional area off to the right

where you can add additional suppliers from your search

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results list, and then once you're done, go ahead and

continue, and it adds them onto the invited list.

Once you've done that, you can review. If you are familiar

with how Adobe lays out their document. This is a document

layout where you've got the different areas or what we call

the table of contents and you can drill around. If you drill

into requirements, you can see that area. It's just a quick

way to preview. You can also view your PDF or in this case,

you can publish it. When you publish that out to a supplier,

the supplier has the ability to--they'll get an e-mail. They

can click the link. They can go directly in and into their

responses online or as I mentioned before, we have

spreadsheet integration. A supplier can download a

spreadsheet. We've got this color coordinated where you've

got required fields versus optional fields. Color coded in

the application. You can only change the fields that make

sense. It things are a list of value, those lists of values

are provided directly within the spread sheet.

It really gives a nice offline way of interacting so that

you're not forcing supplier users to use an interactive

system approach. Suppliers can fill this out offline, submit

it back in and then as a buyer or a category manager, I can

go ahead and monitor the responses coming back in. If I've

got a supplier response that has been uploaded, I can view

that response. I can go into the details. I can take action

on it. We've got additional reports. You can see responses

by suppliers, savings by supplier, those types of things all

within the system.

That kind of gives you a monitoring view. I also wanted to

go in through and show you some of the wording scenario

capabilities. If you go into the award scenario, we've got

graphs to show how you are awarding. In this case, I had one

supplier bid so I've got one solid supplier. If I had split

suppliers to 50-50, you'd see two different splits, etc. in

your savings by supplier. Go ahead and select a line and

award that line. Here is where you can do your side by side

comparisons of different suppliers, what their pricings were,

the amounts, how they provided additional information,

attributes with respect to that line. You can basically do

an award analysis here. You can also download it into Excel

and do your own calculations.

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Once you've done your award scenarios, you go ahead and save

and close that. Basically, you've got a workbench here for

different award scenarios. It will recalculate your graph,

show your recalculated savings. When you're done, you go

ahead and complete that award and it finishes off the

process.

That was a real quick run through of some of the high level

features and functions of Sourcing. Things that we saw. The

negotiations styles and templates. The ability to turn off

and on that overview and creation area based on style is one

important feature. We've got the spreadsheet integration for

both suppliers and buyers. We saw the negotiation calendar,

providing a better visibility to negotiations. We quickly

showed the divided negotiation monitor that shows you

incoming supplier bids in real time, as well as that step-by-

step guided negotiation process. We give you a quick

overview of Fusion sourcing.

The next area I wanted to cover was Fusion supplier portal.

As you can expect, this is a way for suppliers to interact

with the system to get access to--from a web browser, to get

access to negotiations, agreements, purchase orders,

shipments, receipts, invoices, and really provide self

service to a supplier. We've got web-based supplier

collaborations so suppliers can not just view things, but

electronically transact, submit changes, etc., really

providing an online way of transacting, hopefully reducing

your errors and cost of doing business with the supplier.

Similar to what you saw on the category manager or buyer work

center, we've got a supplier work center as well, that when

they log in, directs them to key actions and activities that

they need to take within the system to really allow them to

see what they need to do, do it, and get on with their

regular daily course of business. We have supplier catalog

authoring. It's the ability for suppliers, because we have

our change management infrastructure, it's a way for

suppliers to automatically author their catalog content and

make changes in a controlled fashion that you can have buyer

intervention approval after you have submitted. We also have

supplier change order management so suppliers can initiate

changes to orders that they need to change, delivery dates or

quantities, etc. It's a way for them to submit it and drive

that to buyers for review and approval.

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We also have electronic invoice for presentment and payment

for suppliers to enter both PO and non-PO invoices

electronically. It's a way of reducing the costs of

invoicing and transacting with suppliers.

That's one of the key areas for electronically integrating

with suppliers. We also have our integration with Oracle

supplier network. If you've got a supplier that is very high

volume and you need to electronically send purchase order

documents or invoices, we can route them through the Oracle

supplier network directly into Fusion as well.

Similarly, how do we have this similar type of approach on

both EBS, and we are looking at the same thing for

PeopleSoft. We'll have the ability in Fusion to leverage

this B2B communication method as well. You've got a self-

service tool as well as a high volume tool for communicating

to suppliers.

We've got a quick example of interacting with suppliers from

catalog creations so a buyer can create an agreement,

framework, and say to the supplier go ahead and update your

catalog content. What happens today is that suppliers send

in an Excel worksheet and some buyer has to upload it, review

exceptions, etc. This is a way for self service to take hold

and allow the suppliers to do their own updating and

uploading catalog information, review it, send it back in for

buyer approval. That buyer can then review the changes and

things that they’ve sent back, maybe they can change it

themselves, send it back to the supplier, supplier can

acknowledge and then once both parties have agreed, then

that's available for example in self-service as a catalog

that employees can buy off of. This is quick example of the

type of collaboration we're allowing with suppliers using

supplier portal.

Next area I want to touch on in Enterprise Contract

Management. I talked about procurement contracts earlier

today. Procurement contracts is part of an enterprise

contract management framework so rather than procurement

contracts, you can leverage things like sales contracts or

just regular non-disclosure agreements, etc. They don't have

to be for contract execution. It allows you to manage the

contract negotiation approval, storage renewal, amendments,

ongoing visibility basically is improved across all the

different areas.

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We've got a common contract for repository for buy-side and

sell-side contracts in Fusion, which is pretty exciting for

our customers. It really improves contract visibility so

they can search for contracts for various parties or

suppliers. Special terms, so that if they have terms that

update that they want to make across all existing agreements,

they can quickly find out what agreements are using that

language, initiate an amendment and process for those and

really then track that they've updated that language. We've

improved the contracting processes as well as improving

contract compliance.

Once you've got these contracted standard terms and

conditions implemented, you know when people have redlined

out mandatory terms and conditions, we can manage that, track

approvals and really manage the risk of that contract. That

was a quick run-through of procurement contracts. A pretty

exciting area. Our customers are excited about being able to

manage both buy-side and sell-side contracts and the common

repositories as well.

Suspended performance analysis area. We have our procurement

and spend application in OBIA. We're leveraging that and

creating some additional metrics for Fusion really to help

improve your spend analysis, so to understand where your

spending, who you're spending it with, where are their

opportunities for savings, look at some ‘what if’ analysis,

looking at how your procurement organization is performing,

your analysis operational efficiencies, cycle times, etc., as

well as supplier performance and managing what their

performance is, being able to rate and rank suppliers and

evaluating and managing your supplier risk as well, It's an

exciting area that we're leveraging in Fusion, especially for

the category manager that is responsible for buying.

Some additional technology I didn't touch on was global

search. We have a global search capability across all of

Fusion that allows you to quickly search across in the

procurement area, suppliers, items, orders, requisitions for

really anything. It's like Google for enterprise, being able

to quickly find documents without drilling into the different

areas.

We've got the procurement news for news feeds and we also

have enterprise presence and messaging as part of our

contextual actions framework, where if you are a buyer and

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you have a request from a requester, you can quickly chat

with them online if they are online. We support multiple

technologies for that as well.

That was a quick run through of the different areas. I think

we touched on most of these from a highlight. This is just a

summary that we looked at. We believe this is going to be a

great solution for global. Because of our organizational

business models integrate for global customers in supporting

a global procurement organization as well as books that are

smaller. There is quite a bit of benefits there. We've got

the center driven procurement architecture. We've got

comprehensive business intelligence for both requesters and

buyers and category managers. We've got robust supplier

management. We've got great process automation across the

complete procure-to-pay as well as the negotiation

contracting process and a great set of best practices that

are built into the application as well.

Just to give you a quick feedback. We've had a number of

customers involved from early on in the design phase, from

gathering requirements and built out. We've had, in many

cases, weekly calls from various customers validating our

approach. We've had customers in last year to validate what

we saw. This is just a quick example of who we had. Really,

these are from the customers.

Some of the things I talked about as far as very intuitive.

These are some of the quotes that we had. Yes, it's very

intuitive. The concept of internal and external order

changes that we talked about is fantastic. Dock change

history was very much improved over that users current

system. Very easy to see. Very easy to use. You will see

that kind of theme running through here. Lastly, the

contextual information and embedded analytics really helped

drive users to making better decisions and getting the

information they need when they need it. It's pretty

exciting.

That was a quick run through of Oracle Fusion Procurement. I

really appreciate you taking the time to listen.