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Oracle Applications R12 Sourcing Training Dharma lingam Kandampalayam Shanmugam, OCP, PMP
Agenda Introduction Sourcing Flow & Overview Limitations Data Flow in Sourcing tables Q&A and Demo
Sourcing – What it is? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sourcing – Where it fits in P2P flow? Requisitions Purchase Orders Receiving  Payment Supplier Performance Catalog Content Management Supplier Management Ordering Sourcing Analysis Negotiations  & Awards
Sourcing At-a-Glance Identify Suppliers, Define Strategy Analyze and Award Conduct Negotiation Approve and Issue Define Negotiation Identify Opportunities Buying Professional Supply Base LOB Stakeholder Implement Agreement “ Strategic sourcing applications are providing the triggers  for cultural change, higher productivity and -- above all --  return on investment.”
Sourcing Flow Source More of Your Spend Source for Lowest Total Cost Create Immediate and Long-Term Savings Structured Event Support Cross-Functional Collaboration Knowledge Capture / Re-use Total Cost Analysis* Real Time Decision Support* Enterprise Integration Rapid Deployment Change Management Automated Negotiations, Bid Mgmt and Award* Make Savings Stick Identify Opportunities & Suppliers Conduct On-Line Negotiations Analyze & Award Approve & Issue Define Strategies & Negotiations  Purchasing Contract Mgmt Finance Marketing Other Operations Integration * Requires Sourcing Optimization
Sourcing Process Flow (Different View)
System Generated Recommendations* Eliminate Time-Consuming Manual Analysis Optimized, Policy-Compliant Award Recommendation ,[object Object],[object Object],Company Policy Complex Bids Maximum of 5 Vendors  Minimum 60% to incumbent supplier $100k Annual Maximum ,[object Object],[object Object],[object Object],Multiple Suppliers Model multiple business constraints and supplier inputs Award Optimization Engine * Requires Sourcing Optimization
3 business flows ,[object Object],[object Object],[object Object],[object Object]
Negotiation Documents – Types & Differences In Sourcing, the documents are called negotiations. There are 3 different types of negotiations: - RFI, RFQ, and Auction. # RFI RFQ Auction 1 Buyers can choose to define negotiation line items without price and quantity. This is especially useful, when trying to develop new suppliers for an item. RFQs enable buyers to request quotes from suppliers for  complex and hard-to-define items  or services such as make-to-order manufacturing items or construction projects. Auctions enable buyers to solicit bids for goods and services that are clearly defined, such as office furniture or memory chips. 2 ,[object Object],[object Object],[object Object],[object Object],RFQ consists of multiple rounds with competition focused on which supplier(s) can meet the specific requirements in addition to price. Auctions are typically focused on creating competition between sellers.
Negotiation Response Styles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Multi Attribute Weighted Scoring ,[object Object],[object Object],[object Object],[object Object]
Multi Attribute Weighted Scoring Requirements Weight Value (Score) Quote 990 Response Score Are you ISO certified? 25% Yes (100) No (0) No 0 Number of years in business 35% > 14 (100) 10-14 (75) 5-10 (50) < 5 (0) 15 35 Number of shipping locations 40% > 19 (100) 11-19 (50) 1-10 (25) 35 40 Total Score calculated by Oracle Sourcing 75
Team Scoring of Requirements ,[object Object],[object Object],[object Object],[object Object],Quality Control Team Technical Team Technical Capabilities (40% weight) Commercial Team Price (40% weight) Past Performance (20% weight) Quote 988 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Technical Capabilities = 34 Price = 32 Past Performance = 17 TOTAL SCORE FOR QUOTE:   83
Setup Details ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Setup Details – Profile Options ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Abstracts & Forms ,[object Object],[object Object],[object Object]
Limitations ,[object Object],[object Object],[object Object]
Technical Info - Data Flow in Tables
References ,[object Object],[object Object],[object Object],[object Object]
Thank You… A Q &

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Oracle Applications R12 Sourcing Training

  • 1. Oracle Applications R12 Sourcing Training Dharma lingam Kandampalayam Shanmugam, OCP, PMP
  • 2. Agenda Introduction Sourcing Flow & Overview Limitations Data Flow in Sourcing tables Q&A and Demo
  • 3.
  • 4. Sourcing – Where it fits in P2P flow? Requisitions Purchase Orders Receiving Payment Supplier Performance Catalog Content Management Supplier Management Ordering Sourcing Analysis Negotiations & Awards
  • 5. Sourcing At-a-Glance Identify Suppliers, Define Strategy Analyze and Award Conduct Negotiation Approve and Issue Define Negotiation Identify Opportunities Buying Professional Supply Base LOB Stakeholder Implement Agreement “ Strategic sourcing applications are providing the triggers for cultural change, higher productivity and -- above all -- return on investment.”
  • 6. Sourcing Flow Source More of Your Spend Source for Lowest Total Cost Create Immediate and Long-Term Savings Structured Event Support Cross-Functional Collaboration Knowledge Capture / Re-use Total Cost Analysis* Real Time Decision Support* Enterprise Integration Rapid Deployment Change Management Automated Negotiations, Bid Mgmt and Award* Make Savings Stick Identify Opportunities & Suppliers Conduct On-Line Negotiations Analyze & Award Approve & Issue Define Strategies & Negotiations Purchasing Contract Mgmt Finance Marketing Other Operations Integration * Requires Sourcing Optimization
  • 7. Sourcing Process Flow (Different View)
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. Multi Attribute Weighted Scoring Requirements Weight Value (Score) Quote 990 Response Score Are you ISO certified? 25% Yes (100) No (0) No 0 Number of years in business 35% > 14 (100) 10-14 (75) 5-10 (50) < 5 (0) 15 35 Number of shipping locations 40% > 19 (100) 11-19 (50) 1-10 (25) 35 40 Total Score calculated by Oracle Sourcing 75
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Technical Info - Data Flow in Tables
  • 20.