1-2010Adv Proc in Discrete Manu

8/3/2019 1-2010Adv Proc in Discrete Manu

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EBS Advanced Procurement

Bill Tokheim

Director, Procurement Strategy

New Directions for Procurement and SourcingOrganizations
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The following is intended to outline our generalproduct direction. It is intended for informationpurposes only, and may not be incorporated into anycontract. It is not a commitment to deliver any

material, code, or functionality, and should not berelied upon in making purchasing decisions.The development, release, and timing of anyfeatures or functionality described for Oracles

products remains at the sole discretion of Oracle.


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Agenda

Managing in Downturn

Oracle Procurement Solution

Spend Analytics

Supplier Management

Procurement On Demand Q&A


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Measured Response in the Current Environment

Targeted technology investments candeliver up toten timesthe impact oftraditional IT cost reduction efforts


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Responding to Fluctuating Market

1

2

3

Reconsider Cap Ex

Hiring Freeze

Conserve Cash

Cut Spending

Risk and Compliance

Supplier Risk

Renegotiate Contracts

Spend Management

Effectiveness

1

2

3

CPOs being asked to do more with less

Immediate priorities for CPO


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Goal: Achieve World Class ProcurementDrive 60% Higher Savings from Procurement

# FTE down 48%Per $ Billion Spend

# Suppliers down 55%Per $ Billion Spend

0

20

40

60

80

100

120

Typical

Purchasing

World class

Purchasing

01,000

2,0003,0004,0005,0006,0007,0008,0009,000

Typical

Purchasing

World class

Purchasing

Technology Investment

$M Per $ Billion Spend

00.20.40.60.8

11.21.41.6

Typical

Purchasing

World class

Purchasing Source: Hackett Group & Oracle

Shift Investment in Procurement to

Higher-Value Activities

Better use of Information

Reduce Staff by Swapping Labor forTechnology

Cost of ProcurementAs % of Total Spend

0%0%

0%0%0%1%1%1%1%1%1%1%

Typical

Purchasing

World class

Purchasing

30% savings


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Focus on Opportunities toAchieve Rapid Return Today

Invest in Ways to Standardize andSimplify with a Global Business

Platform

Implications for Technology Strategy


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ORACLE PROCUREMENT SOLUTION


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Oracle Advanced Procurement SuiteComplete, Open, Flexible, and Integrated

Complete Open

IntegratedFlexible


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Indirect, Service, and Direct ProcurementDiffering Needs and Disparate Solutions

Supplier on Boarding

Time and Labor

Payments

Plan to Procure

Capacity Constraints & Sourcing Splits

Extended Enterprise On Time Delivery

Catalog Management

Source to Procure

Bids and Auction

Indirect

Service

Direct

Strategic SpendSpend

ClassificationSpend

Analytics Sourcing

Contracts

Management Supplier Mgmt

Procure - PayProcurement

iSupplieriProcurement Landed Cost Inventory Settlement

Expense - Settle iExpenses Expense Mgmt Invoices Payments Audit

New Solution


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View exceptions across multiple applications and operating units

Create, implement, and execute agreements

Analyze performance of procurement & suppliers

NegotiationsContracts &Agreements

Invoicing &Payment

SupplierManagementRequisitions

POExecution

Exceptions

Agreements

Performance Analysis

ProfessionalBuyersWork Center

Single Access Point for All Responsibilities

Where We Have Been (Release 12)Enable Command & Control for the Procurement Professional


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Professional Buyers Work CenterEnable Command & Control for the Procurement Professional

Intuitive UI andstreamlinedworkflows

Status at-a-glance

Multi-Org AccessControl for sharedservices

Extensive options

for personalization


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Drive Consistent Execution of NegotiatedTerms & Conditions in All Spend Categories

Procurement for Complex ServicesSource to Settle Support for Complex Payments

Requestfor

Service

Milestones Rates Advances Retainage Lump sums

Timecards

Receipts

Workconfirmatio

ns

Terms

Recoupmentof advances

Release ofretainage

Agreements

Invoices

Receipts

Facilitiesservices

Landscapingservices

Architecturalservices

Trackprojectdetails

Supplier Collaboration

NegotiateAgreement

Advances Receipts Invoice Payment

Negotiate

Payments:

Make

Payments:Examples: Validate: Match: Enforce:


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Streamline with Global PracticesAnd with Complete Procure-to-Pay Automation

Send Electronic

PO to Supplier

Receive ElectronicInvoice

Create

Purchase Order

Identify & QualifyVendors

Evaluate

Bids

Create & ApproveRequisition

Finalize Pricing

and Contract

Pay Supplier

(EFT)

Analyze

Performance

Receive Goods or

Services; Inspect

Award to Vendor

Adjust

Contracts

Sourceand

ContractStrategy

PurchasingExecution

Add Structure to Strategic Activities and

Execute Routine Transactions

Automatically


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Systematize Global Best PracticesWith Flexible Procurement Models

BU 1

SourceRequest Buy Pay

BU 2

BU 3

Decentralized

BU 1


Shared

Service

BU 2

Central Sourcing, Local Execution

BU 1


Shared

Service

BU 2

Automatedfinancial

reconciliation

Complete Shared Services

BU 1


Shared

Service

BU 2

Automated

financialreconciliation

Transfer to Local Business Unit


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

Punchout &transparentpunch-out

Catalog AdminBuyer

Supplier

Sourcing User

Requester

Buyer

Catalog

Bulkload /online author

& update

content

Upload andmaintaincontent

View, approve,add, edit, anddelete items

Add new itemsfrom award lines

Approvalworkflow

s

Reduce Maintenance Efforts and Drive Spend Visibility


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

PromotionalItems

Marketing Exec

Maintenance

Improve control over what end users can see & user buyingexperience

Execute organizational unit-specific procurement strategies

Reduce risks associated with sensitive categories

Catalog

Industrial MRO

Professionalbuyer

Partition content

into zones

Combine zones

to create stores

Grant access by OU

or responsibility

ContentZone1

A

Suppliers

Categories

C

B

X ZY

X

X

ContentZone2

A

Suppliers

Categories

C

B

X ZY

X

X

X

X

X


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Leading Companies Worldwide UseOracle Procurement Solutions

Thompson Travel Group


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reduced MRO item costs by 20%

sourced 50,000 items and reduced costs by 20%

increased purchasing volume discounts by 5%

reduced purchase order cycle time by 75%

reduced purchase order processing time by 86%reduced purchasing processing costs 89%

saved over $11M from Procurement & other EBS apps

saved over $1.1M annually via integrated procurement

saved over 25% on indirect goods purchases

implemented internet procurement in only 60 days

What Customers are Achieving

ThompsonTravelGroup


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Whats new in Procurement?

Landed Cost

Management

Supplier Mgmt.

&Supplier Hub

Contracts LifecycleManagement

Spend Analytics &

Classification

Inline & assisted Classification (Patent Pending)

Procurement and Spend Analytics

Supplier Life Cycle Management

Supplier Hub User Defined Attributes

Standalone Contracts Management

Simplified & Major Systems Acquisitions for Public Sector, E&C

Estimated and Actual Landed Costs

Integrated with Receiving and Invoicing

Targeted Investment in Strategic ProcurementEnhancements Across the Procurement Suite

Planned

Oracle SupplierNetwork

Improved Administration and Supplier On Boarding

Out of the box support for Oracle Enterprise Application


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SPEND ANALYTICS


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Spend ClassificationIntelligently classify and analyze purchasing trends

Improve accuracy of spend data Avoid manually classifying data;

Reduce cost of classifying data

Built for business users

Use UNSPSC or custom classification

Automated self learning; Built withOracle Data Mining

OBIEE based


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Classification and Analysis of SpendThe Oracle Solution

OBIA

Spend Classification

ERP

Spend Analytics

1. Extract

4. Analyze

2. Classify

3. Approve

Knowledge Base

In line classification


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SUPPLIER MANAGEMENT

*Part of Release 12.1.2


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Oracle Supplier ManagementComprehensive Solution for Supplier Management

Supplier Profile, Classification,Bank Detail, RelationshipMaintenanceOngoing

Assessments(eRFx/Survey)

Contract

SupplierSearch

Supplier Profile,Qualification, Credit/RiskAssessments ( D&B,eRFx/Survey )

SupplierInactivation

Invitation

Supplier Self-ServiceRegistration

Supplier PerformanceAnalysis and Management

SupplierHub

&


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Supplier MaintenanceAvoid the costs of fragmented data

Single channel & repository for maintainingsupplier master details

Self-service profile management for suppliers(extension of iSP features)

Data Quality tools to identify and merge duplicatedidentities across disparate systems

Consolidate & federate shared information acrossinstances

Oracle Supplier ManagementBenefits

Finding SuppliersImproved efficiency

Single searchable unified suppliermaster

Highly enriched content (unlimitedset of buyer-defined supplierattributes)

Can be embellished with 3rd party

content

Supplier QualificationStreamline process

Workflow to better coordinate across organization Collect gating details & stakeholder feedback

Templates to ensure process consistency

Supplier Assessment

Consolidate qualitative feedback Canvas internal teams on supplier

performance

Templates to ensure consistent assessment

Track key risk factors

Provides universal visibility of supplier status

Supplier ComplianceEliminate redundancy

Avoid separate teams repeating

similar checks Identify minimum hard (insurance,

diversity) & soft (labor practices)requirements

Track and monitor changes tocompliance status

Trusted

Master Data


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TrustedSupplier

Data

Oracle Supplier Lifecycle Management Oracle Supplier Hub

Legacy Legacy

Oracle Supplier Management SolutionProduct Offerings

Extend supplier definition Manage supplier qualification processes

across organization Perform ongoing risk & performance

assessments Track compliance information

Extend supplier definition Consolidate supplier details from

multiple legacy systems Data quality tools to cleanse records Use 3rd party services to enrich data Publish back to legacy systems

Profile and

Banking Details

Mfg Planning Forecasts Capacity Waterfall

Analysis

eRFx &

Auctions

VMI &ConsignedInventory

OrderCollaboration

ContractNegotiation

& Binding

Catalog

Authoring

Shipping & WorkConfirmations

SupplierSearch

SupplierQualification


SupplierPerformance

Mgmt

Invoicing, Inquiry &Dispute Resolution

O l S li H b
http://www.nokiausa.com/indexhttp://www.nokiausa.com/indexhttp://www.nokiausa.com/indexhttp://www.hira.or.kr/cms/rib_english/index.htmlhttp://www.symantec.com/index.jsphttp://www.wamu.com/http://www.hanjin.com/en/index.jsphttp://www.nokiausa.com/indexhttp://inovar.telecom.pt/http://www.kpn.com/http://www.tsa.gov/index.shtmhttp://www.westpac.com.au/internet/publish.nsf/Content/PB+HomePage


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Trusted

Master

Data

EBS

PeopleSoft

SAP

Custom Apps

Other

Hub consolidates & maintains complete, accurate and authoritative master data across theenterprise

Reduces maintenance costs - supplier profile updates only need to be applied once Ensures consistent business relationship - updated master information distributed to all

spoke applications

EBS

PeopleSoft

SAP

Custom Apps

BI

Oracle Supplier HubSingle Point of Governance


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Oracle Supplier HubSource System Management for Supplier Import

Data Hub provides Source System Management (SSM) Registration & cross-reference map tracking for connected source

(spoke) systems

Synchronize primary supplier definition across multiple spokesystems

Supplier HubMaster

A B

Identifier A: BB253

Identifier B: 8808

Data HubRegistry ID

3177

Source

System A

BB253

SourceSystem B

8808


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DesktopLaptop

Create single profile from multiple sources

US$ 1.1M

20,000 21,000

HubZone

Laptop

US$ 1.1M

21,000

Small Bus.HubZone

MergedRecord

Source 1(Purchasing)

Source 2(Payables)

Revenue

# of Employees

Business Classifications

Invoicing Terms Party level information for the master Supplier profile based on user choice from the identified duplicates.

User Defined Profile Attributes and Control level information of the selected master supplier record for themaster Supplier profile.

Business Classification, Product and Services, Bank Detail, General and Industrial Classifications added tothe master Supplier profile

Small Bus.

Net 45 Net 42 Net 42

Product and Services Desktop

Oracle Supplier HubMerging Supplier Profiles


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Oracle Supplier Lifecycle ManagementProspective Supplier Qualification

Significantly enhanced version of

iSP/Sourcing Registration process Templates for process consistency

Questionnaire scoring

AME to route Registration Packetthrough organization

Quality AssuranceTeamPurchasing

Dept

Production & DistributionTeam

FinanceDept

Supplier ManagementAdministrator

Product DesignTeam

Supplierregistrationpacket

Registration details used to determinestructure of approvers list

Enforces governance policies

Graphical view of approval status

Approvers can add feedback torequest


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Basic profile

Prospect

Probation

Incumbent

Obsolete

Oracle Supplier Lifecycle ManagementControlling Risk

Gather key assessment & risk factors peculiar to buying

organization Avoid data fragmentation

Avoid repetition of effort

Maintain on an on-going basis

ExtendedS

upplierProfi

le

Profile and

Banking Details

Mfg Planning Forecasts Capacity Waterfall

Analysis

eRFx &

Auctions

VMI &

ConsignedInventory

OrderCollaboration

Contract

Negotiation& Binding

CatalogAuthoring

Shipping & WorkConfirmations

SupplierSearch

SupplierQualification


SupplierPerformance

Mgmt

Invoicing, Inquiry &Dispute Resolution


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Buyers Suppliers

Supplier Network

Improve Collaboration with Oracle Supplier NetworkNew product features and planned improvements

Enhanced B2B Messaging (EIPP)

cXML, OAG, EDI *, CSV*

Punch In to iSupplier Portal, View Documents

Improved On Boarding

Automatic Buyer Registration, On Boarding Service *

Out of the boxintegration withE-Business suite*

Out of the box integration forOracle Enterprise Customers

New

* Planned


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PROCUREMENT ON DEMAND


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Powerful management Tools

Completely customizable

Tightly coupled with ERP Upgrade on own term

Spend ManagementSpend Management Vendors Asked You To Choose

Easy to use and fast to deploy Managed by business users

Isolated Spend Management& Procurement processes Limited functionality; forced

upgrade

vs.


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Procurement On DemandDeployment Options to Meet your Need

Example Deployment

Oracle Procurement On Demand


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Oracle Procurement On DemandComplete, Open, Flexible, Integrated

Community

Messaging

PlatformBusinessProcess &

Services


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Procurement On Demand CustomersOver 150 existing customers across all verticals


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Focus on Opportunities toAchieve Rapid Return Today

Invest in Ways to Standardize andSimplify with a Global Business

Platform

In Summary


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