Oracle Internet Procurement

1. Internet Procurement

2. Oracle iProcurement – Centralize Purchasing
Control, Decentralize Execution
 Procurement policy based self-service enablement
 Support requests for all goods and services
 Productive user interface for self-service audience
 Self-service receiving for improved payment accuracy

3. Manage the Spend, not the Transactions…
…But, do buyers have the time?
SuppliersBuyersRequesters
Manufacturing
Maintenance
R&D
G&A
Create POs
Document
Approvals
Communicate

4. Automate Transactions…Flag Exceptions
SuppliersRequesters
Manufacturing
Maintenance
R&D
G&A
Implement
Controls
Manage Supply
Base
Analyze Spend
Financial
Controls
Role-Based
Security
Approval
Workflow
Corporate
Policy

5. Define rules for corporate policy based automation
Flexible workflows to configure your rules
Approvals
 Rules-based approval list
 Cost-center, location, commodity
controls
 Flexible approval hierarchies
 Approve via email or online
Automatic PO creation
 Contract buys vs. one-off
 Approved supplier usage
 Standard vs. non-standard items
 Emergency POs
 Automatic approval and communication
Charge Accounts & Budgets
 Person, CC, location, item
commodity controls
 Project tracking and reporting
 Full budgetary control using
encumbrance accounting
Approved Suppliers and Items
 Identify approved suppliers for
items / commodities
 Establish approved item/pricing
contracts and represent as catalogs
 Control requester access to
authorized catalogs

6. Oracle iProcurement – Centralize Purchasing
Control, Decentralize Execution
 Procurement policy based self-service enablement
 Support requests for all goods and services
 Productive user interface for self-service audience
 Self-service receiving for improved payment accuracy

7. Remote:
Catalog Hubs
Remote:
Supplier Hosted
Local
Catalogs
Content Management Models
Multiple options to support different item types
Direct Material
and Mission
Critical MRO
Demand driven by MRP
Inventory level tracked
Items under lot/serial/revision control
Items under existing long term agreements
Dynamic pricing & availability
Configurable items
Large selection of items
Inventory not tracked in buying org.
Catalog Content Management
Indirect and
Non-Critical
MRO
Indirect and
Non-Critical
MRO
Static item and pricing information
Approval controls for price changes
Inventory not tracked in buying org.

8. Supplier Hosted Catalogs
Users punchout to catalogs maintained on supplier websites
iProcurement Firewall Catalog content on
supplier’s website
 Access company specific catalogs on supplier website
 Item configuration rules for CTO items
 Real time pricing and availability Information
 Support Oracle XML and cXML formats for punchout

9. Catalogs Hosted on Catalog Content Hubs
http://www.exchange.oracle.com/
 Immediate access to wide variety of catalogs
 Suppliers author catalogs on content hub
 You approve changes to items and pricing
 Control requesters’ access to available catalogs
iProcurement
Firewall
Catalog Content Hub

10. Single Point of Entry for All Request Types
Guide users to appropriate “Store” based on request type
 Office supplies
 IT equipment
 Industrial
Supplies
 Professional
services
 Temporary
staffing
 Maintenance
 Promotional
items

11.  Purchase requisitions
– Local or remote catalogs
– Non-catalog requests for non-
standard goods
 Internal requisitions
– Internal catalogs for standard
items
– Source based on availability
– Inter- or intra-company requests
with cross-company accounting
Order Items from Suppliers or Internal Warehouses

12. Simple and Advanced search for items in Catalog
 New self-guiding
search offers
targeted results for
self-service users
 Advanced search
for attribute specific
criteria
 Control catalog
access to users
based on usage

13. Request for Services using “Smart Forms”
Flexible templates to capture service details
 Flexible templates to
define authorized
service terms and
rates
 Professional and
general business
services
 Minimize data entry,
default values from
templates
 Capture additional
service details during
request creation
 Configure approval
rules based on smart
forms

14. Contractor requests for Temporary Assignments
 Contractor requests
for administrative
and professional
needs
 Requests based on
controlled access to
approved suppliers
and contracted rates
 Review candidates
submitted by
suppliers
 Finalize candidate
and terms, flexible
approvals for budget
and candidate
selection
 Fast-track process
for simple requests

15. Maintenance Requests for Assets
Assets
Supplier
Order
Request
Maintenance
Schedule
Rule Based
Engine
Ship To
Maintenance
Location
 Define maintenance
schedules for assets
 Create requisitions for
work orders from
maintenance workbench,
search MRO catalogs for
required items
 Track progress against
work orders
 Receive and deliver
items directly to
maintenance location

16. Financial Considerations for all Business
Environments
Flexible cost allocation
 Automatic account defaults based
on business rules
 Security-based override capabilities
 Distribute charges across multiple
accounts/cost-centers
 Allocate charges to expense or
material accounts based on usage
Budgets & Encumbrance Accounting
 Control spending using budgets and
encumbrance accounting
 Track spending limits and spend-to-
date
 Real-time validation of funds during
request creation
 Approvals based on budget ownership
Project-based requests
 Request goods and services for
specific projects
 Allocate costs to multiple project
accounts and budgets
 Track and report against projects
Requests charged to specific Grants
 Capture grant award information on
individual requests
 Allocate costs across multiple
grants
 Default grants information onto
request lines to minimize data entry

17. Oracle iProcurement – Centralize Purchasing
Control, Decentralize Execution
 Procurement policy based self-service enablement
 Support requests for all goods and services
 Productive user interface for self-service audience
 Self-service receiving for improved payment accuracy

18.  Easy-to-use interface
– Familiar “amazon.com-like” interface
– Create and submit requisitions in just
a few clicks
 Productivity enhancement tools to
minimize data entry
– Shopping lists (Favorite and Public)
– Saved shopping carts
– Copy requisitions
Productive User Interface for Self-service
Audience

19. Requester Supplier A Website
Exchange.Oracle.com
Transparent
Punchout*
Simplify catalog searching using Transparent
Punchout
Eliminate guesswork from catalog searching
User sees all search results, irrespective of
catalog source, on this familiar page
*Patent Pending
Local Catalogs

20. Full visibility into entire Procurement lifecycle
Self-service access frees up buyers’ time
 View approval status
and history
 Related POs and
associated status
 Real-time tracking of
in-transit shipments
 View Receipt history
and associated
exceptions
 Invoice and payment
information

21. Rules-based Online Approvals
Eliminate paper approvals, improve auditability
 Centralized approval
engine services
approval needs
across apps.
 Automatic approval
routing based on
business rules
 Approvers can
approve via email or
from work list
 Nominate proxy
approvers when on
vacation
 Full approval trail with
relevant comments
captured for audit
needs

22. Oracle iProcurement – Centralize Purchasing
Control, Decentralize Execution
 Procurement policy based self-service enablement
 Support requests for all goods and services
 Productive user interface for self-service audience
 Self-service receiving for improved payment accuracy

23.  Requester initiated
receipts using self-
service screens
– Single-click simplicity
– Record packing slip,
waybill information
– Track in-transit
shipments and
receive against them
– Automatic invoicing
based on receipt
 System initiated receipts
using workflow
– Automatic notification
on due date
– Requester
acknowledges receipt
via response
– Automatic receipt
generation based on
response
Self-service receiving of goods and services
Increased payment control with 3-way matching

24. Record receipt exceptions, reconcile payments
accurately using 3-way match
Return to Vendor
 Self-service screens to return
defective goods to supplier
 Reference RMA code
 Real-time updates to on-hand
quantities
 Automatically generate debit memos
for reimbursement
 Full receipt history audit trail to
resolve discrepancies
Receipt Corrections
 Correct data entry errors by issuing
corrections
 Factor corrections into receipt audit
trail for accurate reporting
Receive
Return Correct

25. Summary

26. Oracle iProcurement – Centralize Purchasing
Control, Decentralize Execution
 Procurement policy based self-service enablement
Buyers manage the spend, not individual transactions
 Support requests for all goods and services
Single entry point for requests, single business rules repository
 Productive user interface for self-service audience
Quicker customer adoption, smoother rollouts
 Self-service receiving for improved payment accuracy
Increased control with 3-way match

27. Oracle
Sourcing
Information Age Applications
Maximize Savings and Sourcing Bandwidth

28. Oracle
Sourcing

29. Demand
Collection
Indirect
Goods
Direct
Materials
Engineered
Goods
Services Approval
Routing
Touchless
Buying
Automated
Payment
Enforce Policy Compliance
Budget-Based
Procurement
Contract
Management
Supplier
Performance
Reduce Spend on Goods and Services
Category
Management
Online
Sourcing
Spend
Analysis
Streamline Procurement Processes
Supplier
Collaboration
Settlement
Orders
Profile
Management
Supplier
Network
Logistics
Supplier
Portal
Oracle Advanced Procurement
The Integrated Suite that Dramatically Cuts All Supply Management
Costs

30. Oracle Sourcing
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 OtherOperations
Integration

31. Oracle Sourcing Overview
Blanket
Agreements
Requisitions
Spreadsheets
(1000 lines+)
Demand Collaborative
Sourcing Process
Blanket
Agreements
Purchase
Orders
Outcome
Global
Agreements
• RFI /
Survey
• RFQ
• Auction
Suppliers
Signed
Contract
Update
Catalog
Sourcing
Templates
Purchasing
Data
Contracts

32. Oracle Sourcing
Enables You To…
 Source More of Your Spend
 Source for Lowest Total Cost
 Create Immediate and Long-Term Savings

33. Exploit More Savings Opportunities
Sourcing Resources
PercentageofSpendUnderContract
Oracle Enabled
Sourcing
Traditional
Sourcing Approach
Structured Event Creation
On-Line Negotiation Support
Efficient Change Management
System Generated Awards
Automated Bid Comparison

34. Structured Sourcing Event Creation
Greatly Reduce Preparation Time and Manual Effort
Expiring
Agreement
1-Click
Renegotiation
Instantly create new sourcing event from previous agreements
Renewal
Driven
RFx, Auction
RFx, AuctionRequisitions
Sourcing
Template
Request
Driven
Aggregate requests across the enterprise to leverage buying power

35. Efficient Online Negotiations: Buyer
Slash Cycle Time by Eliminating Manual Processes
View new incoming supplier
messages and incomplete tasks
Drill into individual
sourcing events
View responses and monitor
bidding activity in real-time

36. Efficient Online Negotiations: Supplier
Slash Cycle Time by Improving Communications
Suppliers can review
all requirements
before bid submission
Suppliers review contract terms
early in the sourcing cycle

37. Efficiently Manage Change
Quickly Create New Round or Amendment
• Create and Publish New Rounds or Amendments Online
• Full Audit Trail Including Net Change Comparison
• If Suppliers Accept, Their Quotes Roll Forward
RFQ 1234
Buyer
RFQ 1234-1
New Round or
Amendment
Supplier
Acknowledge
Changes
Publish
Changes

38. Optimized, Policy-
Compliant Award
Recommendation
System Generated Recommendations
Eliminate Time-Consuming Manual Analysis
• Multiple Sites
• Dozens of Bid Lines
Company Policy Complex Bids
Maximum of
5 Vendors
Minimum 60%
to incumbent
supplier
$100k Annual
Maximum
• Sourcing Rules
• Budget Constraints
• Supply Base Rules
Multiple
Suppliers
Model multiple business
constraints and supplier inputs
Award Optimization Engine

39. Facilitated Online Bid Comparison
Make Faster Award Decisions
• Utilize structured bid data
- Automatic bid scoring
- Consistent format for side-
by-side comparison of
competing bids
• Provide online analysis for
fast, accurate awards
- Multiple chart and graph
formats (e.g., scatter plot,
bar, pie)
- Flexible award methods
enable selection of
suppliers, bid lots or
specific line items
- Business and regulatory
compliance policies (e.g.,
multi-sourcing
requirements, minority
• View award
summary for
purchase
recommendation,
approval, and
compliance details

40. Oracle Sourcing
Enables You To…
 Source More of Your Spend
 Source for Lowest Total Cost
 Create Immediate and Long-Term Savings

41. Cross-Functional Collaboration
Combine Expertise for Higher Quality at Lower Price
Commodity
Manager
• Best delivery terms
• Handling instructions
• Define requirements
• Implementation planningProject
Manager
Suppliers
Sourcing
Manager
Finance /
Legal
• Constraints
• Costs estimates
• Market
knowledge
• Best
payment
terms
• Corporate
policy and
procedure
• Latest BOM,
specs and
drawings
Design
Requestor
(eg., Mfg,
HR)
Contract
Manager
Logistics
• Domain
knowledge
• Supplier
performance

42. Sourcing Knowledge Capture
Drive Optimal Results by Re-Using Best Practices
New Sourcing Event
Bidding Rules
Sourcing Policy Rules
Negotiation Event Style
Scoring Methods
Sourcing Templates
Supplier Lists
Pricing Factors
Knowledge from
Past Sourcing
Events
• Leverage Proven Practices
• Replicate Buyer Expertise
• Retain Knowledge across
the Organization

43. Example: Template-Based Scoring Criteria
Exclude from
supplier shortlist
Weighted scoring
• Header
• Line
• Attribute group

44. Total Cost and Complete Bid Analysis
Evaluate Tangible and Intangible Costs
*Bid vs. Transformed Bid
Latin American
Supplier
$14 vs. $26*
European
Supplier
$16 vs. $23*
North American
Supplier
$21 vs. $21*
Asian
Supplier
$20 vs. $23*
Example:
Supplier “C” Bid
$14
System Added
Freight $
6
Tariff $ 4
Risk $ 2
Transformed Bid =
• Capture Total Cost
- Tangible (e.g., freight)
- Intangible (e.g., switching
costs)
- Buyer and Supplier Entered
• Evaluate Transformed
Bids
- View Transformed or Un-
Transformed

45. Total Cost and Complete Bid Analysis
Balance Price, Quality, Promise Date, etc.
Preferred quotes
represent an
optimal balance of
price, quality,
promise date, etc.
Display quote
price and score
based on all
attributes

46. Oracle Sourcing
Enables You To…
 Source More of Your Spend
 Source for Lowest Total Cost
 Create Immediate and Long-Term Savings

47. Rapid Deployment
Start Saving Immediately
• Implementation in days or weeks -- not
months!
• Incrementally implement capabilities
Supplier
Enablement
Simple
RFx /
Auctions
Off-the-Shelf
Integration
Complex
RFx /
Auctions
Start with a few key activities
Quickly enable suppliers to participate in sourcing events
Grow into advanced capabilities as needed
Automate complete business process using integrated
Advanced Procurement platform

48. Consistent Execution and Compliance
Realize Sustainable Savings via Integration
Sourcing
Purchasing
iSupplier
Portal
Procurement
Contracts
• Transfer negotiated terms and pricing to execution
• Drive contract compliance and track deliverables
• Monitor contract utilization and supplier performance
• Enable suppliers to openly compete for business
• Seamlessly execute negotiated agreements
• Leverage common source of master / reference data
• …

49. Example: One-Click PO Creation
Create Purchasing Documents Directly from Award
Awarded
Quotes
Receive
Goods or
Services
Create
Agreements/
POs
Pay
Supplier
Workflow Enablement
• Copy all pricing, contract
and deliverable information
• Eliminate manual entry and
associated errors

50. Example: Real-Time Deliverable
Mgmt
Easily Monitor Compliance Across the
Enterprise
• Ensure supplier compliance and consistent evaluation
- Sourcing deliverables
- Contractual deliverables
• Enable buyers to be proactive
- e.g., Contract milestones or expirations
Review status of
deliverables
Track notes and
correspondence
Drill into
details
Link to source
document

51. Business Targets Contract Utilization
Quality PerformanceConsumption Trends
Expose need
for new or
revised
contract
Evaluate
supplier and
contract
performance
before renewal
Track KPIs
including
Example: Contract Intelligence
Evaluate Compliance and Identify Opportunities

52. Seamless Data Flows
 RFIs
 RFQs
 Buyers Auctions
 Templates
 Attributes
 Etc.
Procurement
Data
Sourcing
Data
Integrated Flows
 Requisition to RFx/Auction Creation
 Requisition allocation upon award
 Removal of requisition from requisition pool
during negotiation
 Return of requisition to requisition pool on
cancellation/partial allocation
 Negotiation number viewable in iProcurement
 Contract to RFx/Auction creation for renewals
 Contract created from award
 PO created from award
 Sourcing accessed from single iSupplier Portal
 Supplier search of the Supplier Master and ASL
 Requisitions
 POs
 Contracts
 Etc.

53. Shared Data
 Requisitions
 POs
 Contracts
 Etc.
 RFIs
 RFQs
 Buyers Auctions
 Templates
 Attributes
 Etc.
Procurement
Data
Sourcing
Data
Shared Data
 Operating Units
 Buyers
 Buyer Approval
Hierarchy
 UOM
 Ship to Addresses
 Bill to Addresses
 Currency
 Payment Terms
 Attachment Repository
 Purchasing Categories
 Inventory Items with
revision
 Contract Variables
 System and User-
Defined
 Supplier Responses
 Contract Deliverables
 Contractual &
Negotiation
 Contract Clauses
 Contract Templates
 Suppliers
 Approved Supplier List
 Supplier Classification
 Supplier Commodities

54. Cross-functional collaboration,
sourcing knowledge capture / re-use,
and total cost analysis
Source for
Lowest Total Cost
Easy sourcing event creation,
management of on-line negotiations
and bids, with automatic system-
generated recommendations
Source More
of Your Spend
Oracle Sourcing
Rapid deployment capabilities with
modular integration to Advanced
Procurement, and real-time decision
support including deliverable mgmt
Create Immediate
and Long-Term
Savings

55. Information Age Applications