1. Supplier Management Overview Basier Aziz, MDM Product Strategy 2

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Supplier Management Overview

Basier Aziz, MDM Product Strategy

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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement

Supplier MDM Solution Overview

• What is it• Business Drivers• Supplier Hub Solution– Consolidate– Cleanse– Govern– Share

• Q&A

4

SuppliersBuyers

Supplier Hub

• Consolidates & maintains accurate Supplier master information across the enterprise

• Distributes as a single point of truth to all operational & analytical applications

Supplier Lifecycle Management

• Identification• Qualification and On-boarding• Maintenance and Assessments• Obsolescence

Trusted Supplier

Data

Trusted Supplier

Data

Introducing Oracle Supplier HubWhat Are We Offering?

Business Cases

Why:Why:Why:Why:

What:What:What:What:

So What:So What:So What:So What:

Consolidate Supplier records from multiple systems to

implement corporate responsibility program

24,000 Supplier records to be mastered in supplier hub

Complement existing Product hub forming a full MDM solution

Strong value proposition with combined Product Hub

and Supplier Hub

Evaluate supplier performance to complement sourcing activities

Synergies with EBS Procurement portfolio

Assessing supplier performance:• Defining criteria for evaluation• Defining evaluation plan• Generating evaluation report

Chinese Networking & Telco solutions provider

Large US retailer

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How much does decentralized data cost you?

In 1 Hour…• 240 businesses will change addresses • 150 business telephone numbers will change or be disconnected • 112 directorship (CEO, CFO, etc.) changes will occur• 20 corporations will fail • 12 new businesses will open their doors• 4 companies will change their name*

*Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics, Gartner, A.T Kearney, GMA Invoice Accuracy Study

What can centralizing the data do?

Reduce• purchase order errors• payment errors• sourcing cycle time• new product introduction cycle time• order to cash time• receipt and return processing errors• supplier-related financial risks• supplier-related collaboration costs• non-compliance risks• supplier information lookup times• report generation costs• costs by sun-setting legacy applications• MRO spending per employee• …

Trusted Master Data

Trusted Master Data

EBSEBS

AribaAriba

SAPSAP

Custom AppsCustom Apps

BIBI

TransportationTransportation

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Value Proposition for a Supplier Data Solution

1. to track & optimize enterprise spend

2. to monitor and to implement standards and regulations

3. to manage suppliers across the trade lifecycle

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Value Prop 1: Track & Optimize spend

? ?

? ?

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Value Prop 1: Track & Optimize spend

• Clean, trustworthy data creates visibility into spend

• Visibility into spend creates opportunities for reducing costs

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Value Prop 2: Monitoring and enforcing Standards

• Child labor• Environmental Standards• Minority-owned Businesses• Women-owned Businesses• HUBZone• Carbon footprint• etc.

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Value Prop 3: Streamlining Supplier-related Processes

• Stages in the relationship– Discovery– Vetting (Risk Assessment)– Trading– Re/evaluations– Obsolescence

• Supplier Self-Management

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Oracle Enterprise Master Data Management The most complete MDM offering on the market today

Data Governance Manager

Oracle Fusion Middleware

Analytical MDMAnalytical MDM

Operational MDM AppsOperational MDM Apps

OperationalSystems

Cus

tom

erC

usto

mer

OracleProduct

Hub

OracleProduct

Hub

Fin

anci

alF

inan

cial

Oracle / Hyperion Data Relationship

Management

Oracle / Hyperion Data Relationship

Management

OracleCustomer

Hub

OracleCustomer

Hub

EBSEBS

SiebelSiebel

SAPSAP


External Apps

External Apps

Pro

duc

tP

rod

uct

Ana

lytic

alA

naly

tical

Application Integration Architecture

OracleSite Hub

OracleSite Hub

PeopleSoftPeopleSoft

JDEJDE

BudgetingBudgeting

AnalyticalSystems

DWDW

BI &DatamartsBI &Datamarts

PlanningPlanning

Financial Consolidation

Financial Consolidation

DashboardsDashboards

OracleSupplier

Hub

OracleSupplier

Hub

Site

Site

Sup

plie

rS

uppl

ier

14

Supplier Management Leverages Established e-Business Suite Products

Customer HubCustomer Hub

Supplier Master Data

Supplier Master Data

EBSEBS

PeoplesoftPeoplesoft

SAPSAP


OtherOther

EBSEBS


SAPSAP


BIBI

5 - 10 Years Experience

TCA

Relationships

Hierarchies

Match/Merge

D&B Enrichment

Address Validation

Product HubAdvanced Search

User Defined Attributes

ProcurementVendor Master

Supplier Self-Service

RFIs/Deliverables

Supplier Management: the Solution

Trusted Master Data

Trusted Master Data

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Trusted Master Data

Trusted Master Data

EBSEBS


SAPSAP


OtherOther

• Consolidates & maintains complete, accurate and authoritative master data across the enterprise

• Distributes master information to all operational & analytical applications just in time

• Master Data Hubs enable organizations to• Govern data centrally, Risk & Improve Compliance• Optimize Business Processes• Rapidly deploy new applications• Know their Suppliers.• Synchronize with Partners and Spoke Systems• Provide solid foundation for accurate Spend Analysis

EBSEBS


SAPSAP


BIBI

Oracle Supplier HubLeveraging Proven MDM Infrastructure

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Oracle Supplier Hub: Master

Govern

CleanseS

hare

Co

nso

lid

ate Trusted

SupplierData

Trusted Supplier

Data

Master TrustedSupplier Data

AttributesRelationshipsClassifications

DocumentsLocations

Supplier Repository

Organization• D-U-N-S Number, Legal Structure, • Incorporation Year, Chief Executive Name • Total Employees, Annual Revenue• Business Classifications• Products and Services…

Banking Details• Account Number, IBAN, Currency, Type• Bank Name, Branch Name• …

Purchasing Terms and Controls• Ship-To Location Bill-To Location Ship Via• Pay On, Freight Terms• …

Invoicing Terms and Controls• Invoice Currency, Amount Limit• Match Options, Tolerance• Hold Options (All,Unmatched,Unvalidated)• Payment Terms, Terms & Pay Date Basis• …

Payment Controls• Method, Delivery Channel• Payment Format, Settlement Priority• …

Receiving Controls• Receipt Routing, Match Approval Level• Quantity Tolerance, Days Early/Late Receipt• …

Tax Details• …

StandardProfile details

Supplier Hub

Common• Applicable to All Suppliers

Supplier Type• Examples: Services, Distributor, Contract

Manufacturer• …

Business Classification• Examples: Women Owned, Small Business,

Minority Owned• …

Products & Services• Examples: Temp Labor, Professional

Services, Raw Materials• …

Address Country• Examples: US, China, India• …

User Defined• Examples: High Risk, Premium• …

ExtendedProfile details

Groupings• Relationships (e.g. subsidiary)• Hierarchies (e.g. D&B)• Classifications

Groupings

Questionnaires• Questionnaires (Supplier & Internal)• Deliverables

Questionnaires

Unstructured Data• Word, Excel, PDF, etc.

Unstructured Data

Oracle Supplier Management: Consolidate

ConsolidateConsolidate

Import Workbench

Import Workbench

Identification & Cross-

Reference

Identification & Cross-

Reference

BlendedRecord

BlendedRecord

GovernGovern

CleanseCleanse

Sh

areS

hare

SiebelSiebel

EBSEBS

SAPSAP

GDSNGDSN

OtherOther

Trusted Supplier

Data

Trusted Supplier

Data

Supplier Import WorkbenchConsolidate, Cleanse, Enrich

Multiple heterogeneous legacy systems containing highly inconsistent sets of supplier data

Data Quality Management tools

Supplier MasterExperian

Thomson

De-Dup Enrichment

Spoke

Spoke

Spoke

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Data ImportAggregate Product Data from Multiple Sources into Repository

Inte

rnal

& E

xter

nal S

ourc

e S

yste

ms

D&B

Legacy Apps

3rd PartyApps

SuppliersOnline

Batch

Su

pp

lier Rep

osito

ry

Cleanse &Match

SingleBlendedRecord

XML

Bulk Load

WSDL Web Service

End User Keyed

Generate “what if” reports forpre-import analysis

US $1.1M

20,000

Small Bus.

Laptop

US $1.1M

21,000

Small Bus., Hub Zone

Desktop, Laptop

BlendedRecordBlendedRecord

Source 1PurchasingSource 1Purchasing

Source 2PayableSource 2Payable

Net 42Net 42

Desktop

Net 45

HubZone

21,000

Supplier Data Quality ManagementBlended Supplier Profile

• Create data blending rules and combine all data sources

• Display “single source of truth” blended record to end users

Revenue

# of Employees

Business Classifications

Invoicing Terms

Product and Services

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

source (spoke) systems

– Synchronize primary supplier definition across multiple spoke systems

Supplier Hub Master

A B

Identifier A: BB253

Identifier B: 8808

Data Hub Registry ID

3177

Source System A

BB253

Source System B

8808

Supplier Import ManagementSource System Management

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Oracle Supplier Management : Cleanse

GovernGovern

CleanseCleanse

Sh

areS

hare

Co

nso

lid

ate

Co

nso

lid

ate

ParseParse

StandardizeStandardize

EnrichEnrich

ValidateValidate

Match &De-Duplicate

Match &De-Duplicate

Trusted Supplier

Data

Trusted Supplier

Data

Data Certification Party Purge

• Add structure to record creation & update process

• Promote user confidencein data

• Remove unwantedrecords to reducedata volume

Matching Engine Duplicate Resolution Address Validation *• Merge records and all

associated entities and transactions

• Extend merge routines to handle data extensions

• Run exhaustive searches using customizable engine

• Identify duplicates and prevent future occurrences

• Based on OAG Standards• Leverage pre-built adaptors

from leading address validation vendors

Broad Data Quality ToolsMaintain Clean, Accurate Enterprise Customer Data

Profiling*

• Deduce meaning from unstructured patterns

•Tel# is null 30% •25% of FName has 1 char

Standardize*• Create structured records from

less structured data• “Inc.” -> “Incorporated”,• “Holmes, Santonio” -> “Mr.

Santonio Holmes

*Additional Option

Data Quality Tools

Out-of-the-Box D&B Integration– Enhance existing Supplier party records with pre-built

integration– Search D&B for a supplier whose information the user

would like to import– D&B Information includes • Credit & Risk info• Relationship & Hierarchy info• Summary information• Supplier Evaluation scores• Supplier Risk Analysis

– Import data in real-time or batch mode

Out-of-the-Box Trillium Integration– Address Matching and Cleansing– Validation code returned that indicates match confidence

Supplier Data EnrichmentEnrich

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Oracle Supplier Management : Govern

CleanseCleanse

Sh

areS

hare

Co

nso

lid

ate

Co

nso

lid

ate

GovernGovern

On-BoardingOn-Boarding

SurveysSurveys

WorkflowWorkflow

Supplier Self-ServiceSupplier Self-Service

Trusted Supplier

Data

Trusted Supplier

Data

Supplier Profile ManagementSupplier User Defined Profile Attributes

Widgets, Inc. (Supplier)

Vision, San Francisco, USOperating Unit

Vision, Dallas, USOperating Unit, Inventory Organization

Vision, Atlanta, USOperating Unit

WI, New York, US

Supplier Organization Level UDA

(Supplier Party)

Supplier Address / Party Site Level UDA

(Supplier Party + Supplier Party Location)

Supplier Site Level UDA

(Supplier Party + Supplier Party Location + Buyer Operating

Unit)

Vision Computers (Buyer)

WI, Shanghai, China

Business ReferencesReference Name, Contact,

Bus. Volume, Yrs of Bus

Insurance InformationWorker Compensation

General LiabilityAutomobile Liability

Compliance InformationRoHS Compliant, WHEE Compliant

Logistics InformationStandard Delivery Time Guarantee

Transport Insurance TypeFreight Forward Detail

Production CapacityMachinery, Average Capacity, Max.

Capacity

Transaction Qualitative Evaluation (BI Summary)

Receipt Qualitative Evaluation PO Change Qualitative Evaluation

Invoice Qualitative Evaluation

Quality Control ProceduresFollows Documented Quality Control

ProcessQuality Instructions Easily Accessible

Process Adherence Audits

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A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A17 A18 A19 A27 A28 A29 A30 A35 A36 A37

Standard Profile

Attributes

Supplier Attributes:

Values:

Supplier Profile ManagementSupplier Profile Attribute Access Control

Strategic BuyerStandard Buyer Administrator Supplier User

Extended Profile

Attributes

Widgets, Inc. (Supplier)

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Supplier ManagementNew Supplier Qualification and Onboarding – Supplier Walk-in Registration

Suppliers

Commodity Manager

Finance / Legal Expert

Contract Manager

Compliance Officer

Prospective/New Supplier Registration

Request

Submit

Receive Packet Review

Questions

Add Profile Information

Request Information

Submit

Review

Questions

Credit Evaluation

(Resubmit)

Return/Reject

Review

Questions

Risk Evaluation

Return/Reject

ReviewProspect Party

Site Evaluation

Questions

Return/Reject

ApprovalProcess

Add CreditEvaluation

Add RiskEvaluation

Add Prospect Party Site Evaluation

Notification

Qualified and Approved

Relationship Contract

Sync Supplier Profile

Existing Supplier EvaluationSupplier Qualitative Evaluation and Assessment

Overall Supplier SatisfactionBuyer Ben

Buyer Santonio

Is Supplier flexible during negotiations?

Overall Supplier Satisfaction

Is Supplier flexible during negotiations?

Is Supplier responsive?

Is Supplier responsive?

Evaluated Suppliers

Evaluators

Any Quality complaints?

Any Quality complaints?

4

5

No

No

2

2

Yes

Yes

RFI

Widgets, Inc. Gadgets, Inc.

Data Hub Admin reviews &promotes to Supplier Hub

OU1OU1

OU3OU3

OU2OU2

Self-Service Supplier Profile Management

Supplier updatesprofile details

Supplier Locations

+

Contact Details

AttachmentsBanking Info

Business Classifications / Product & Service Details Updates applied

across multiple operating units

*

* Supplier Lifecycle Management Option

Single UI Access to Supplier Information

Data Data QualityQuality

User Defined User Defined AttributesAttributes

Standard ProfileStandard ProfileData & User Defined Data & User Defined ClassificationsClassifications

HierarchiesHierarchies

D&BD&B

Supplier Profile ManagementSupplier Profile Advanced Search

:

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Oracle Supplier Management: Share

GovernGovern

CleanseCleanse

Co

nso

lid

ate

Co

nso

lid

ate

EBSEBS

SAPSAP


BIBI

ShareShare

Publish &SubscribePublish &Subscribe

Transports &Connectors

Transports &Connectors

RegistryRegistry

Trusted Supplier

Data

Trusted Supplier

Data

ReportingReporting

Access &Search

Access &Search

UsersUsers

SiebelSiebel

Supplier Data PublicationPublish Supplier Data to Spoke Systems

Publish

Supplier Hub Master

Synchronize

Synchronize

Synchronize

Business EventsWebservices/APIs

Spoke

Spoke

Spoke

Infrastructure to Publish ‘Supplier Master’ data from Hub

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Value Proposition: THE Supplier Data Solution

1. to track & optimize enterprise spend

2. to monitor and to implement standards and regulations

3. to manage suppliers across the trade lifecycle

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AQ&

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Appendix

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