[PPT]VALUE CHAIN PLANNING Development Update Q1 …isdportal.oracle.com/sfdemo/SF_UPK/user2015/150608-bnault... · Web viewOpenWorld & Value Chain Summit SLM/SDH Update Highest attended

Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Highly Restricted1

Oracle MDM Partner Summit

Supplier Hub… Supplier Management Update

Mark PeacheyDirector, Product Strategy

20/21/22 May 2014Oracle HQ


Agenda Supplier Management – It’s Different! Business Update - How Are We Doing? Product Updates - What Have We Done? Roadmap - Where Are We Going? Customers - What Are They Doing?


Supplier ManagementInvitation Self Registration Profile &

Pre-Qualification

Recurring Assessments

Retire

Administer

Retire Performance Analysis & Mgmt

Identify

Enable

Supplier Master Data

Profile, Classification, Bank Detail, etc.

Contracts

Compliance & Risk Assessment

Exchange Documents

Change Management

Identify

Collaborate

B U Y E R

o Increase Accuracy of Spend Analysis

o Lower Supplier Collaboration Costs

o Improve Supplier Performance

o Reduce Supplier Management Costs

o Simplify Supplier Selection and Reduce Risk

o Enhance Supplier Compliance

o Streamline Procurement Processes

S U P P L I E R


SM - Critical to Procure-to-Pay AutomationOrganizations are Focused on Reducing Manual Effort

Transaction Execution

e.g. Procurement Orchestration Program Management

Procure-to-Pay Automation

e.g. Supplier Development

Apply Agreement

Terms & Conditions

Receive Electronic

Invoice

Apply Auto-Source

Rules

Create Purchase

Order

Dispatch Electronic

PO to Supplier

Auto-Approve

Minor Changes

Receive Goods or Services; Inspect

Pay Supplier

(EFT)

Free Staff for Higher-Value Activities

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.5

B U Y E R S U P P L I E R

Efficient Business Document ExchangeReduce Process Errors, Manual Effort, and Lag Time in Transactions

Change Orders

Forecast & Schedules

Shipment Notices & Work Confirmations

Orders

Invoices & Payments

Supplier Registration & Profile Management

ver1

ver2

Time Cards

Catalogs


B U Y E R S U P P L I E R

Efficient Business Document ExchangeReduce Process Errors, Manual Effort, and Lag Time in Transactions

Supply Base

Oracle Supplier NetworkTransaction Delivery for High Volume

Suppliers

iSupplier PortalLow Volume Collaboration

Inquiry for All

High Volum

e

Low Volum

e

ver1

ver2


MDM for SuppliersUnify and Share Critical Info about an Organization's Supply Base

Trusted Supplier

Data

Legacy Legacy Consolidate Supplier InformationFlexible data import formats across heterogeneous systems, advanced attributes and relationships models, and configurable rules governing a ‘golden’ supplier record

Cleanse and Enrich Supplier Info Embedded data-quality tools, fuzzy matching de-duplication and intelligent merge, and integration to third party data sources like D&B and Trillium

Share Supplier Info across Silos Comprehensive business events, syndication and federation services, and real-time message delivery

http://www.westpac.com.au/internet/publish.nsf/Content/PB+HomePage

http://www.tsa.gov/index.shtm

http://www.nokiausa.com/index

http://www.hanjin.com/en/index.jsp

http://www.wamu.com/

http://www.symantec.com/index.jsp

http://www.hira.or.kr/cms/rib_english/index.html


Improve Pricing, Reduce Costs

Reduce price of goods & services– Consolidated supplier master critical for effective spend analysis– Model supplier relationships to determine true spend– Effective use of spend ‘budget’ in contract negotiations

Streamline administration to cut costs– Manual data maintenance; time-consuming & expensive– Inconsistent supplier data > high levels of repetition– Avoid rework caused by ‘stale’ profile data

Benefits of a Unified Supplier Master


Improve Collaboration Efficiency

Drive down collaboration costs– Reduce/remove costs of processing paper documents

E-Invoicing is typical focus – but outbound also key Transition significant number of suppliers to electronic connection Opportunity to refresh role of AP team

Shift document/data validation towards supplier– Avoid validation failures following document delivery

Shrink cycle times for order changes & invoices– Avoid shipping errors– Enable invoice discounting opportunities

Streamline Coordination with Suppliers


Control Relationship Costs

Minimize ‘social’ costs of supplier relationships– Provide suppliers with real-time ad hoc inquiry access – Reduce number of unnecessary contact events– Enable shift to value-add/strategic activities within Procurement

department Reduce customer ‘friction’ for suppliers

– Minimize doing-business costs for suppliers– Collaboration platform ensures efficient relationship– Everybody gets a scorecard!

Streamline Supplier Support & Avoid Pricing Pressure


Manage the Unexpected

Improve ability to deal with Supply Chain disruptions– Enable effective contingency planning– Speed-up reaction time to unexpected events– Modeling of extended (N-tier) supply chain

Provide better risk foresight– Synthesize risk information across organization– Eliminate redundant risk & compliance checks– Pool tribal data from all available sources for better insight

Individual knowledge, tracking xls, email

Prepare-for & Manage Supply Chain Disruptions


Plan for Business Growth

Leverage supply base knowledge for effective strategic planning– Validate growth plans– Assess new market opportunities– Inform acquisition strategies

Foundation for Strategic Planning




Strong rebound in Q3 performance(cf. Q3FY13)

Over 140 licensed customers

More than 60 deals generated $100k+ license revenue

Licensing - TTM Revenue


SLM sales continue to outpace SDH~ 2:1

Risk/Compliance more critical than Data Quality

Licensing - Product Split

Sales by Quarter


Rank Customer Name OneVoice Industry Apps1 7-ELEVEN Retail SLM & SDH2 KIER LIMITED Engineering & Construction SLM & SDH

3 WORLD FUEL SERVICES CORPORATION Oil & Gas SDH

4 LOGITECH INC High Technology SLM5 CITY OF CHICAGO Public Sector SLM

6 AMWAY (CHINA) COMPANY LIMITED Life Sciences SLM & SDH

7 OTSUKA AMERICA PHARMACEUTICAL INC Life Sciences SLM & SDH

8 CHENIERE ENERGY, INC. Oil & Gas SLM & SDH

9 THE KROGER CO. Retail SLM & SDH

10 BIOGEN IDEC Life Sciences SLM

11 ORIGIN ENERGY SERVICES LIMITED Professional Services SLM & SDH

12 MIDEA GROUP CO.,LTD Industrial Manufacturing SLM

FY14 - Top Deals


SH & SLM – Customer Base


Analysts and Press OpenWorld & Value Chain Summit

– SLM/SDH Update Highest attended Procurement track sessions at both events

– Positive coverage from SpendMatters:“At Oracle OpenWorld this week, one of the most popular procurement sessions I went to was a breakout session on Oracle’s Supplier Lifecycle Management (SLM) and Oracle Supplier Hub products, with over 100 attendees. Based on all of our discussions with customers and others at OpenWorld, there is very significant demand for these products at the moment.The addition of these two products… provides differentiation for E-Business Suite in comparison to Ariba.”[ http://spendmatters.com/2013/09/26/product-roadmap-update-oracle-e-business-suite-supplier-lifecycle-management-oracle-supplier-hub/ ]

Excellent Gartner case study of Cummins SDH/SLM project has been published

– Oracle has acquired distribution rights (see Marketing ppt)

http://spendmatters.com/2013/09/26/product-roadmap-update-oracle-e-business-suite-supplier-lifecycle-management-oracle-supplier-hub/




Product Development Update Shipped: 12.1.3+

– Mandatory internal requirements– Updated Approval Management; support for parallel approvals, action-required notifications– Enhanced supplier registration flow; guided navigation, contact-address association– Reactivation of rejected supplier requests– Unified Supplier Change Business Event

Close to Release: 12.1.3+/12.2.4– Boilerplate updates – Streamlined supplier merge process– Enhanced pre-Qualification templates / conditional questions in RFx templates– Update Evaluation reponse


Consolidated SLM User Interface:

Planned Home page for Supplier Admins


Planned:Assessment Creation


Planned:Assessment Setup Pages


Planned:Supplier SLM “Home” page

Evaluations

Evaluations


Planned:Home page for evaluators incorporated into iProcurement

Evaluations


Supplier Hub

Problem– Several business events for different attributes

Some attributes raise AP event, and some raise TCA event In some cases, both AP and TCA events are raised Inconsistent behavior Users have to subscribe to several events

– No event raised for some attributes Banking Information, Tax Details, Business Classification, Products &

Services, etc.

Unified Supplier Profile Business Event


Supplier Hub

Solution– Introduces a new unified Supplier Profile Business Event

Name: oracle.apps.pos.supplier.profile Whenever a supplier or any of its entities (address, site, contact, etc.) is

created or updated, this event will be raised– The event parameters will contain the details on which supplier and which

entity raises the event



Supplier Hub

Event Parameters– VENDOR_ID– PARTY_ID– TRANSACTION_TYPE

(CREATE/UPDATE/DELETE)– ENTITY_NAME– ENTITY_KEY

Unified Supplier Profile Business EventEntity Name Entity Key Entity’s Base Table

SUPPLIER - -

ADDRESS party_site_id hz_party_sites

SUPPLIER_SITE vendor_site_id ap_supplier_sites_all

CONTACT party_id hz_parties

BUSINESS_CLASSIFICATION classification_id pos_bus_class_attr

PRODUCTS_SERVICES classification_id pos_sup_products_services

TAX_DETAILS vendor_site_id ap_supplier_sites_all

TAX_REPORTING vendor_site_id ap_supplier_sites_all

BANKING_DETAIL - -

PAYMENT_DETAILS ext_pmt_party_id iby_pmt_instr_uses_all

CONTACT_POINT contact_point_id hz_contact_points

EMAIL_DOMAIN email_domain_id hz_email_domains

PARTY_RELATIONSHIP relationship_id hz_relationships

GENERAL_CLASSIFICATION code_assignment_id hz_code_assignments

IMPORT batch_id pos_imp_batch_summary

MERGE_SUPPLIER batch_id hz_merge_batch

MERGE_SITE vendor_site_id ap_supplier_sites_all


Supplier Hub

Other flows that also raise this event:– Supplier Import– Supplier Merge

Exception– For UDA, this new event will not be raised, the following events will be

raised by the UDA Framework instead (existing behavior): oracle.apps.pos.sdh.ext.preAttributeChange oracle.apps.pos.sdh.ext.postAttributeChange




Safe Harbor: The preceding 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2013, Oracle and/or it’s affiliates. All rights reserved.

Supplier Management

• Enhanced Qualification Approval Routing- Support for parallel approvals, approval

groups and FYI reviewers

• Mandatory Internal Requirement

• Contact Address Association

• Keyword Search

• Control default user creation

• Reinstate a rejected supplier

• Streamlined Prospective Supplier Registration

• View Prospective Supplier Registration Status

• Unified Profile Change Business Event

• Update Evaluation after submission- Evaluation can be updated after

submission and before the RFI is completed

Supplier Management

• Dynamic Qualification Template Criteria- Based on supplier profile pre-qualification

questionnaire is automatically updated

• Consolidated SLM user interface

• Enhanced Search for Supplier Registrations

• Approval History on Supplier Profile

• Provide Rejection Reason LOV

• IBAN Support

• Streamlined Supplier Merge UX

Supplier Management

• Automated RFI process

• Dynamic Invitation Lists

• Compliance Documentation Tracking

• Historical tracking of Supplier Profile

• Extensible Supplier Contact Directory

• Site Tagging for D&B Extract

• Expose Cross Reference Data in Batch Mgmt

• VAT Compliance for iSP Invoicing

• Support Approval Management for RFI Internal Evaluation

New Features What’s Next0-12 month planning cycle

Future DirectionsPost 12 month planning cycle

Oracle Applications: Current Release and RoadmapOracle E-Business Suite: Supplier Lifecycle Management & Hub


Moving Forward - Candidate Features Supplier Lifecycle Management

– Improved tools for managing & tracking document attachments

– Automated RFI Evaluation process

– Dynamic invitation lists

– Event-based RFx triggers (automated audit, performance tracking etc.)

– Smart classifications

– Consolidated Supplier Profile Change History View

Supplier Data Hub– Support UDA for supplier contact, New Contact Tab like Org and Person- a separate Tab

– Search for Extended Supplier Contracts and Contact Attribute

– Cross system reference- expose source systems in the UI- for Supplier Site Add AP_SUPPLIER_SITES to HZ_ORIG_SYS_REFS

– Simplified "Enable As Supplier" option (no DQM) for customers without SDH

– Supplier site flagging for the D&B extract process

– Visualize Relationship viewer

– Real Time Address Validation

– Hierarchy Management

– D&B purchase Attributes to be viewed after purchase

Virtual CAB Meeting- o -

Targeted for (late) June- o -

Customers & Partners




Customer Status Live

– Ameren SLM

– Huawei SDH+SLM

– Cummins SDH+SLM

– TDIC SLM

– Colruyt SDH+SLM

– City of Nashville / City of Chicago SLM

– NBN Co. SDH

– TJX SLM

Implementing– Nucor SDH

– State Street Bank SDH+SLM: Using D&B enrichment

– Black & Veatch SLM+SDH

– Jacobs Engineering SDH?

– Oracle GSI SLM: Multi-country rollout

– Sandia National Labs SLM

Planning Deployment– Ahold

– NHS (UK)

– Cochlear

#C1

4LVAbout Ameren…

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■ Electric Customers 2.4 Million■ Gas Customers ~1 Million■ Service Area 64,000 Sq

Mi■ Generation 10,300 MW■ Electric System Miles 85,400■ Gas System Miles 21,000■ Total Assets $22 Billion■ Total Revenues $6.6 Billion■ Employees ~8,500■ Fully Regulated

Presenter Introduction:Chris Nelms leads the operations team charged with the ongoing strategic implementation of processes & systemic changes around the source-to-settle program (S2S) which include further enablement of electronic supply chain collaboration. A licensed PMP, he holds an MBA and two Bachelor of Science Degrees.

#C1

4LVHistorical Supplier Situation…

Supplier Insurance Maintenance■ 2009 Corporate Project Oversight Committee (CPOC) formed■ Insurance requirements were increased in rigor during this approximate

time frame■ Browz (www.browz.com) was implemented to handle insurance

certifications for all services suppliers with =/> $25K annual volume■ All other services suppliers are handled manually in MS Access that

containing the summary abstraction of the insurance in force for each supplier.

■ Access DB allowed for single user only■ Roughly 5000 services suppliers maintained in Access■ Re-certifications tend to be received at CY mid year and year end■ Always a backlog of data entry on insurance. Always.

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http://www.browz.com/

#C1

4LVNew Supplier Addition Process…

■ Any Requisitioner in any Business Line can request any supplier■ No real supplier vetting process in place

▪ Buyers rationalization – Easier to setup than to research▪ In most cases the new supplier was just added, no questions asked

■ If a supplier insists on a credit application being completed:▪ Ameren has no credit department per se▪ Personal involvement▪ Hard push back on every request, insisting that due diligence in finding an existing,

registered supplier be engaged▪ If after due diligence we were compelled to add the supplier, we provide a standard

response including trade references and other descriptive information about the company

■ Nothing really discouraging the addition new suppliers based on request alone

■ New suppliers crept in incrementally over time37

#C1

4LVSupplier Maintenance Costs…

38

This reference from the AMR shocked us:

■ We didn’t know if this high end cost applied to us

■ We did know we were not considering the cost of supplier maintenance as such

■ We did know there were efficiencies Oracle AP and Purchasing by themselves were not addressing

“…companies are spending up to $1,000 per supplier annually…however, when information, enabled by technology, becomes visible across the organization, costs per supplier quickly dwindle to below $150 per supplier.” - AMR Research, June 2009

#C1

4LVFunctionality Areas…

Insurance Certification Management■ Allows multiple users into the DB simultaneously

■ Effectively reduces the cycle throughput of maintenance and update by at least half

■ Justification for entire SLM module was covered by productivity improvements on this single point

■ In conjunction with extensive supplier search and grouping capability, improves supplier selection and grouping for sending mass actionable eMail notifications

Insurance Certification Lookup/Reference■ Buyers and Sourcing people no longer rely on worksheet index to determine if valid

insurance is in force

■ They review directly in Oracle with an image of the certificate available

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#C1


Functional Certification Management■ In addition to Insurance which is handled separately, SLM handles these

certificate types as well for Ameren: Abatement (general) certified Asbestos certified Health / Environmental certified Training certified ASME certified

The certificate area is wide open to accommodate a wide variety of certification management needs and can be augmented later as business needs change

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#C1


CyberSecurity Certificate Retention■ IT developed an elaborate (50+) question CyberSecurity Questionnaire■ Use applicable for some IT suppliers only■ Approval of CyberSecurity aspect separate from Purchasing/Sourcing

approval■ SLM will contain the questionnaire as a stand alone attachment only on CS

approved suppliers

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#C1


■ Qualification Management (Supplier Diversity)

▪ SLM engages the Sourcing RFI process when users send requests for update out to suppliers

▪ Registered suppliers can then update their information directly on SLM

▪ Diversity takes these qualifications in via approval

▪ A third party is used to validate supplier qualifications twice per year

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Q&A


The preceding 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

