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What can you sell out of SCM?Keith IpSCM Product Solutions Director
© 2007 Oracle Corporation – Proprietary and Confidential
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“Most procurement experts believe 15-20% of purchased materials and services can be saved
(billions of dollars in a large company) by centralizing procurement and leveraging a far-
flung corporation's buying power.”
Gene RichterPurchasing.com
6 Feb 2003
© 2007 Oracle Corporation – Proprietary and Confidential
Buying Professional
• Unwillingness & inability to enforce policy
• Low visibility into spending
Executive Mandates• Grow Revenue & Margin
• Cut Working Capital
• Aggressive Targets
Finance & BU Requirements• Improve Cash Mgmt &
Expenditure Planning
• Capture Early Payment Discounts
• Increase “Days Payable Outstanding”
Strategic Requirements• Bring New Products to Market
• Execute M&As
• Expand into new geographies
• Contract leakage
• T’s & C’s adherence
• Pricing Enforcement
Contract Compliance
• Maintain Service level to internals customers
• Inefficient, Manual, error prone processes
• Drive savings in new categories
Performance Improvement
Operating Unit Autonomy
Business Challenges
© 2007 Oracle Corporation – Proprietary and Confidential
Goal: World Class ProcurementDrive Improvements in Effectiveness & Efficiency
Source: Hackett Group & Oracle
Performance IndicatorTypical
Purchasing Organization
World Class Purchasing
Organization
% of Long-Term Contracts 37% 75%
Number of Suppliers per $B in Spend 322 10
Cost of Procurement as a % of Spend .96% .24%
Cost per Purchase Order $10.35 $1.52
Purchase Orders in Electronic Form 17% 80%
Cycle Time from Request to PO (hrs.) 50.2 1.4
Cut Transaction Costs by Swapping Labor for Technology
Shift Procurement Investment to Higher-Value Activities
© 2007 Oracle Corporation – Proprietary and Confidential
Software that automates low-value tasks has a very high Software that automates low-value tasks has a very high value, and makes the strategic activities possiblevalue, and makes the strategic activities possible
SupplySupplyOptimizationOptimization
AnsweringAnsweringSupplier QueriesSupplier Queries
HelpingHelpingRequestersRequesters
ManagingManagingContentContent
CreatingCreatingManual OrdersManual Orders
SpendSpendAnalysisAnalysis
StrategicStrategicSourcingSourcing
Project-Project-Based Based
ProcurementProcurement
InternalInternalBenchmarkBenchmark
DeliveryDelivery
ContractContractLifecycleLifecycle
MgmtMgmt
StrategicStrategic
HighHigh
MediumMedium
LowLow
Val
ue
Val
ue
The Continuing Importance of Procurement
© 2007 Oracle Corporation – Proprietary and Confidential
Supplier EnablementEmployee Self-Service
Spend Analysis
Procure-to-Pay
Strategic Sourcing Contract Mgmt
iSupplier Portal Supplier Network*
Purchasing Accounts Payable
iProcurementServices Procurement
Purchasing IntelligenceSourcing
Sourcing OptimizationProcurement Contracts
*Complimentary service component of Advanced Procurement Suite
Oracle Advanced Procurement Delivered via a Modular Product Suite
© 2007 Oracle Corporation – Proprietary and Confidential
PeopleSoft Enterprise SRMA Suite of Applications
Supplier EnablementSupplier EnablementEmployee Self ServiceEmployee Self Service
Spend AnalysisSpend Analysis
Procure-to-PayProcure-to-Pay
SourcingSourcing Contract ManagementContract Management
eSupplier ConnectioneSettlements
eSupplier ConnectioneSettlements
Purchasing Accounts Payable
Purchasing Accounts Payable
eProcurementServices Procurement
eProcurementServices Procurement
Supplier Rating SystemSpend Mart
Procurement Mart
Supplier Rating SystemSpend Mart
Procurement MartStrategic SourcingStrategic Sourcing
Supplier ContractManagement
Supplier ContractManagement
© 2007 Oracle Corporation – Proprietary and Confidential
A Few More EBS Procurement Customers…
Thompson Travel Group
© 2007 Oracle Corporation – Proprietary and Confidential
A Few More PeopleSoft SRM Customers…
© 2007 Oracle Corporation – Proprietary and Confidential
More Customers
Competitor Reference!
© 2007 Oracle Corporation – Proprietary and Confidential
For More Information
• Oracle OpenWorld Asia Pacific• http://www.oracle.com/global/ap/openworld/index.html
• Oracle Advanced Procurement• http://www.oracle.com/applications/procurement/intro.html
• Oracle Customer Successes• http://www.oracle.com/customers/cust_list_atoz.html
© 2007 Oracle Corporation – Proprietary and Confidential
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