source to settle(s2s): accelerate session id: your
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Session ID:
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10422
Source to Settle(S2S): Accelerate your Procurement Transformation With Oracle Cloud
25 Apr 2018 : 11.00 AM
Sanjit Anand
Who am I ?
• Sr BA Based working with Equinix
• First exposed to Oracle Financial with Rel 10!
• 17+ Years of experience in Global Implementation Projects and Managing
Oracle EBS
• Worked for EBS projects in High Tech ,Investment Bank, Financial service ,
Airlines , Health care , Manufacturing & Payment Processing domain.
• PMP Certified expert in leading the Planning and Deployment of a project
Agenda
• Introduction
• Source to Settle
• Procurement Transformation
• Oracle Procurement Cloud
What is Meant by Source –To-Settle
Spend Analysis SourcingContract
ManagementProcurement
Account Payable
Source Settleto
According to supply management experts Ardent Partners, the simplest and most effective way to gain greater value from source-to-settle process is to connect the total process into one integrated, automated system.
S2S is often divided between the sourcing and buying processes, which is sometimes described as planning and executing, or “Upstream” and “Downstream.”
The source –to-settle Value Chain
• Upstream : Strategic Sourcing
• Source to Contract (S2C) – the activity of identifying, negotiating, selecting
and contracting with your suppliers
– Spend Analysis - Process of collecting, cleansing, classifying and analyzing
expenditure data with the purpose of decreasing procurement costs, improving
efficiency, and monitoring compliance.
– Sourcing - Continuous procurement process of discovering, prioritizing, improving,
and re-evaluating sourcing activities
– Contract Management
The source –to-settle Value Chain
• Downstream ( P2P) –where the activity of raising purchase orders and paying
your suppliers )
– Procurement
– Invoicing & Account Payable (AP)
‘Upstream’ determines ‘Downstream (process linked together)
Strategic Sourcing - Spend Analysis
• Creates an understanding of the organization's spend structure and enables
decisions and action to be based on facts rather than intuition
• Gives solid foundation for sourcing Initiatives
– Examines Buying Behaviors
– Identified Saving Opportunities
– Actionable Intelligence
Managing spend via analytics will give you invaluable
insights which include:
• Knowing what your total spend is
• Who is spending and on what
• Which vendors supply multiple business units
• Which business units buy the same or similar goods
• and services
• What portion of your spend is with the core suppliers
(e.g., top 10) and the total number of one–off and small
value transactions suppliers
• How many transactions your organization processes
and the associated administrative cost
Strategic Sourcing - Sourcing/e-Sourcing
• Sourcing or e- sourcing delivers savings by automating and streamlining the
ongoing, long-term procurement of materials and services; providing the necessary
tools to find and qualify best suppliers - at the right price, quality and service, and
least risk.
– Leverage Spend Intelligence
– Identify Highest-Value Suppliers
– Negotiate saving
Questions to ask your organization• How many suppliers do you have? What is the %
increase?• What do you buy, from where and how?• How many tenders/ RFQs are raised per anum per FTE?• What % of total spend does this represent?• Do supplier evaluations typically involve a price only
metric?• How do you target the right suppliers in tendering or
RFQs?• How do you accurately identify and address policy non-
compliance?• Do you have standardized metrics enterprise-wide?• How many corporate contracts are in place?
• How much spend is exposed to supplier risk?
Strategic Sourcing - Contract Management
• Contract management is a subset of the strategic sourcing process
• This helps in
– Codify relationship
– Keep Engaging all stakeholders
– Drive visibility usage
– Enhance compliance
Contract Management System helps the Strategic Sourcing process, and bring lot of value to both CFO Organization and internal audit groups. Some example
• Automated alerts and reports on contract and supplier certification expiration
• Captures payment terms to support early payment discounts or improve cash flow
• Helps and give improved negotiation prep• Provides visibility to supplier rationalization
options
Procure-to-pay - Procurement/eProcurement
• Procurement
– Increase on contract spend
– Realizes negotiated saving
– Enhance compliance , Performance
– Drive efficiencies
Procure-to-Pay – Accounts Payable Automation
Current Pain State
• Paper invoices require re-keying into AP system which is time consuming
and error-prone.
• Tracking down POs and receipts is also time consuming, inefficient and
provides poor audit trail.
Here is Modern Approach and best practices
• Optical scanning converts paper invoices to electronic format for
automated PO matching with full audit trail
• Supplier enablement Options provide “paperless” process via electronic
invoicing further reducing manual effort
• Automated invoice Validation (matching) minimizes need for human
involvement
Procure-to-pay – Accounts Payable Automation
• Account Payable
– Drives efficiencies
– This Completes source –to-settle process
Morden Way of Working
• ‘Digitalisation’ Procurement
Source•Identify
•Tender
•Evaluate
•Negotiate
•Award
Contract• Execute Contract
•Operationalize Contract
• Contract Renewal Management
Procure
•PR Contract “call off”
• PR Approval Management
•PO Issue
•Supplier Performance Management
Payable
• Supplier Invoice Submission
• Requester Receipt
• Pay Supplier
• Supplier Spend Management
E- Registration Sourcing Contracting Procurement Account Payable
Supplier Portal
Business Objective
System data Flow
Process Flow
Why Source to Settle is new Thoughts for CPO
Seamless processes capture and retain value
– Efficiently
– Effectively
– Repeatable
– Scalable
Automation amplifies and accelerates the benefits
Why Source to Settle is new Thoughts for CPO
1. Enterprise's That leverage spend analysis into their sourcing Project save ,
on average , between 24% to 41% more per project
2. Eliminating any sourcing/contract process gap can reduce saving leakage
by up to 38%
3. Best-in-class enterprises report compliance rates that are 20%+ superior
4. Linking and automating the P2P process can reduce invoice cost by 40% to
70%
Source : IBM’s research
Why Source to Settle is new Thoughts for CPO
Procurement Leadership - Transformational Opportunities
– Automate The transaction Procure to Pay cycle
– Negotiate saving through sourcing and spend control
– Deliver better Pricing , Saving and value for the Business
– Build Business Leadership , influence and relationships
– Assess and Manage supplier Qualification and Risk
Procurement Transformation is relatively new concept and is usually positioned
within Wider Discussion of Change management and Transformational
Leadership (Day and Atkinson , 2004)
Procurement Transformation is the act of measuring where you are : defining where you want to go, establishing and executing a plan to get there.
Why Source to Settle is new Thoughts for CPO
Procurement Leadership -Transformational Opportunities
Process: Source to Settle▪ Define all Processes
People: Thinking Globally, Acting Locally▪ Up skilling & development of business resources
Technology Investment Required▪ Automation of repetitive manual effort and key workflows
= Transformation of the way
Oracle Procurement Cloud
• A complete source to settle solution
Negotiations
Invoices and Payments
RequisitionsContracts
Suppliers
Receipts
Procurement Contracts
SourcingSupplier Qualification
ManagementSupplier
PortalSelf Service
Procurement Purchasing Payables
Purchase Orders
Procurement /Spend Analytics
Manage Suppliers SourcingContract
ManagementPurchase Settle
Collaborative Negotiations | Enforceable Contracts | Streamlined Procure to Pay | Supplier Qualification Management
Oracle Procurement Cloud Family
Oracle Procurement Cloud Service is a complete source to settle solution
that includes the following products:
– Supplier Qualification Management
– Sourcing
– Procurement Contracts
– Supplier Portal
– Purchasing
– Self Service Procurement
– Payable
– Procurement Analytics
Supplier Qualification Management
– Qualify and assess suppliers to support
supplier programs, compliance, and
sourcing decisions
– Gather Supplier Information through
Internal and external Questionnaire
– Promptly alert when new information might
affect supplier qualifications, capabilities, or
risk
– Provide insight to supplier qualifications
and policy complianceEvaluate
Qualifications
Create Initiative and
Questionnaire
GatherResponses
Oracle Sourcing
Do you know how much of addressable spend is actually sourced ?
55%
What are current Pain Point
• Long cycle Time to author, review and approve RFX documents.
• Lengthy and manual bid analysis extends time to award and delays cost savings.
Modern Approach and Best Practice
• Guided authoring and terms libraries simplify document authoring
• Built-in social collaboration allows cross-Functional team input and faster approvals
• Embedded analytics monitor bidding process
• Award recommendation based on user-defined criteria enable faster Time to value
Identify Suppliers, Define Strategy
Analyze and Award
Conduct Negotiation
Define andApprove Negotiation
Implement Agreement
IdentifyOpportunities
Oracle Sourcing
Oracle Sourcing cloud is most interactive products with New standard for supplier negotiation
– Simplify document authoring, reviews and approvals
– Accelerate adoption of negotiation best-practices
– Improve standardization, collaboration, & compliance
– Minimize training and hands-on support
– Monitor supplier bidding activities in real-time
– Enhance negotiation strategies and improve results
Identify Suppliers, Define Strategy
Analyze and Award
Conduct Negotiation
Approveand Issue
Define andApprove Negotiation
Implement Agreement
IdentifyOpportunities
Buying Professional
Supply BaseLOB
Stakeholder
Procurement Contract
Current Pain Points
• Long cycle times to author, review and approve initial contract. Back and forth negotiation and language changes extends time to execution and delays cost savings.
How this Helps
• Guided authoring and terms libraries standardize agreements and simplify authoring• Standardize Contract and enforce Business Policies using pre-approved clause libraries ,
templates and approved alternatives
• Built-in social collaboration enables cross-functional team input and execution
• Deviation monitoring spotlights specific language changes to minimize review effort• Identify deviation from define standards , Highlight risks, and enforce appropriate document
approvals
• Contracts managed in searchable repository with amendment tracking and automated expiration alerts
• E-sign integration
Supplier Portal
Supplier portal is a platform for exchange of
transactional information with suppliers.
• Improve communications with suppliers
• Deliver best in class supplier collaboration
• Easy supplier setup and support
• Reduce errors and inquiries
• Faster issue resolution
Self Service Supplier Registration, “Know Your Supplier”
Self Service Procurement
• Ensure your negotiated pricing and terms are
automatically enforced to realize maximum
savings
• Enable employees to buy goods and services
with a consumer buying experience and mobile
• Robust search, browse across local content,
punch-out, locally indexed punch-out, smart
forms, shopping lists and information templates
• Enforce your business policies through controls
and approvals
Capture, manage, and reduce spend
Oracle Procurement and Spend Analytics
• With inbuilt reporting and close integration with Oracle BIApplications the
performance analytics play a key role for the organization.
• Inside applications with the introduction of “Who” sees “What” through a role
based approach. The real time reporting has become a major player in keeping
a check on the supplier and various stakeholders’ performance in a source to
settle cycle.
• With real time data and functionality to narrow down on the attributes reflecting
that data, it becomes easier for users to cut down on cost and increase on
revenue by addressing issues at a relatively higher pace.
Key Business Process
These are key Business Process that you can take advantage of Transformation:
Model Business Process
Self Service Procurement Manage Procurèrent Content , Catalogue Hiérarchie and Content zones
Create, Update , approve and amend Requisition
Tracking and Managing Requisition Life Cycle
Process Requisition lines to PO or RFQ
Budgetary Control
Sourcing Create , Amend, Award and Evaluate Negotiate
Capture Supplier Response
Addition of requirements and Cost factor
Manage Negotiate Life cycle
Purchasing Create , approve, amend and Dispatch Purchase orders
Manage supplier Profiles and Item Information
Buyer Dashboard
Self Service Receipts, warehouse Receipt
Key Business Process
These are key Business Process that you can take advantage of:Model Business Process
Supplier Portal Create Invoice , RFQ Response , Manage Accourt
Supplier Dashboard
Supplier Qualification Management Create and Manage supplier Qualification questions
Qualification Models
Qualification initiatives
Procurement and Spend Analytics Configurable Real Time Dash Board and Report
Conclusion : Finance System & Process Transformation
Digital -process
automation
Paper – reduce manual invention
“Embracing Digitalisation”Managing Too Many Suppliers
Confusing POs/Invoices Issued
Suppliers Not Paid on Time
Manual PR’s
Best use Digitalisation to work smarter:✓ Speed of Execution increased
by going digital!✓ Improve Dataset & Quality
Control. A better process!✓ Lower Costs.
Source to settle with Oracle Procurement Cloud bring productivitygains from workflow simplification , automation of data capture and processing enhancements across the finance organization will allow the reduction in Financial functional spend
No dynamics/Adhocdiscounting integration
Session ID:
Remember to complete your evaluation for this session within the app!
10422
Q & A
