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Whats New in E-Business Suite Release 12: The Procurement Professionals Release
Michael Webb Snr Product Strategy Manager Fusion Procurement

Agenda

Procurement Challenges & Opportunities How Oracle Delivers A Look at Release 12

Procurement At-a-Glance

Manage Contracts, Categories & Suppliers Supplier Performance Expirations & Renewals Source Purchase Settle

Supplier selections Negotiations

Requisitions Approvals & Orders

Receiving Payments

Business Challenges
Executive Mandates Strategic Initiatives Finance & Legal Requirements

Cut costs Reduce resources Outpace inflation

Outsourcing Accelerated product


development

Regulatory compliance Budgeting & planning

Routine Tasks

Contract Compliance

Manual, time-consuming
& error prone processes Inability to manage exceptions

Contract leakage Adherence to terms

Buyer

and conditions

Business Unit A

HR

Facilities Operations Other

...

HR

Facilities Operations Other

...

Business Unit B

Supplier 1

Supplier 2

Supplier 3

Supplier 4

A Decade Of Procurement Innovation


Whats Wrong With This Picture?

Professional Buyer

Employees & Business Managers

Suppliers & IT Departments

Accounts Payable

Sourcing Mgrs & Budget Holders

HR & IT

Data Analysts & Category Managers

Legal and Contracts Managers

Data Analysts & Project Managers

Procureto-Pay

eProcurement

Supplier Enablement

eInvoicing

Sourcing

Services Procurement

Analytics

Contract Management

Spend Data Management

1995

2000

2005

The Future Of Purchasing & Supply


Sourcing Strategies Become a Critical Source of Competitive Advantage
Program Mgr Sourcing Mgr

New skills needed to operate in globally complex and uncertain world

Number of key suppliers fall

Senior mgmts expectations for purchasing grow


Buyer CPO Suppliers

Perf. metrics better aligned w/ company obj.

Rqmts for increased global & regional capabilities

Technology key to globalization and sourcing strategies enterprise wide

IT

Sales

More flexibility & external customer focus required to maximize supplier contributions

Source: Center For Advanced Purchasing Studies, THE FUTURE OF PURCHASING AND SUPPLY: A FIVE AND TEN-YEAR FORECAST

The Lives of Procurement Professionals Are Already Changing


Procurement Organization Focus
(% of Time Involved In Strategic Activities)
79% 67% 50% 52% 39% 67%

The CPOs Agenda


1. Improve supplier development & collaboration 2. Enhance and integrate procurement automation infrastructure 3. Adopt low cost country supply initiatives 4. Transition to a center-led procurement organization 5. Increase spend under management and improve spend compliance
Aberdeen Group, The CPO Agenda: Five Strategies for Organizational Transformation.

Leaders Followers

2 yrs ago

Now

2 yrs from now

A.T. Kearneys Assessment of Excellence in Procurement

Agenda

Procurement Challenges & Opportunities How Oracle Delivers A Look at Release 12

Oracle Advanced Procurement


The Integrated Suite that Dramatically Cuts All Supply Mgmt Costs

Spend Categories

Reduce Spend on Goods and Services


Spend Analysis Online Sourcing Category Management

Supplier Collaboration

Orders

Indirect Goods

Streamline Procurement Processes


Services Approval Routing Touchless Buying Automated Payment

Supplier Portal Logistics

Engineered Goods Contract Management Direct Materials

Settlement Budget-Based Procurement Supplier Performance Profile Management Supplier Network

Enforce Policy Compliance

Release 12 -- Rethinking the Routine


Automate Routine Tasks, Focus on High-Value Activities

Strategic

Oracle Advanced Procurement

Supply Optimization

High

Spend Analysis

Contract Negotiation

Value

Medium

Monitor & Review Controls

Internal Benchmark Delivery

ProjectBased Procurement

Low

Answering Supplier Queries

Helping Requesters

Managing Content

Creating Manual Orders

Oracle Purchasing Solution


Free Buying Professionals to Focus on Strategic Activities

Spend Categories

Supply Base Management


Pre-Defined Negotiated Policies Contracts Approved Blanket Supplier Lists Agreements Supplier
Information Drop Ship Details

Suppliers

Indirect Goods

Business Services

Services

Consumables & Supplies

Consolidate All Demand


Engineered Goods

Approve & Allocate

Generate Order Documents

Receive, Reconcile, and Pay

Flexible Procurement Automation


Exceptions Manual Approval

Engineer to Order

Direct Materials

Demand Workbench

Parts & Components

Agenda

Procurement Challenges & Opportunities How Oracle Delivers A Look at Release 12

Advanced Procurement R12


The Procurement Professionals Release

Unified Workcenter For All Procurement Responsibilities Improved Business Processes Flexibility and Utilization Expanded Supplier Management and Enablement

Role-Based Access to Dashboards


Provide Decision Makers With Immediate Access to Information
Role-Based Access

CPO

Supplier Mgmt

Budget Holder

Cost Center Spend Mgmt

Vendor Manager

Supplier Scoring

Example:
Commodity Manager Sourcing

Supplier Management

PO purchases amount Price change amount PO match invoice amount

Manual invoices rate Return transactions

Professional Buyers Work Center


Enable Command & Control for the Procurement Professional Professional Buyers Work Center

Exceptions Agreements Performance Analysis

Negotiations

Contracts & Agreements

Requisitions

PO Execution

Supplier Management

Invoicing & Payment

View exceptions across multiple applications and operating units Create, implement, and execute agreements Analyze performance of procurement & suppliers
Single Access Point for All Responsibilities

Professional Buyers Work Center (cont.)


Enable Command & Control for the Procurement Professional

Intuitive UI and
streamlined workflows

Status at-a-glance Multi-Org Access


Control for shared services

Extensive options
for personalization

Professional Buyers Work Center


Purchase Order Management

Easily Access All Levels of the Order

Directly Submit or Specify Additional Approval Details Prior to Submission

Professional Buyers Work Center


Purchase Order Management

View Schedules/Distributions across all Lines

Professional Buyers Work Center


Purchase Order Management

Optionally Enter Data in Single Page Format

Enter Schedule and Delivery Information along with Line Details

Advanced Procurement R12


The Procurement Professionals Release

Unified Workcenter For All Procurement Responsibilities Improved Business Processes Flexibility and Utilization Expanded Supplier Management and Enablement

Multiple Procurement Models


Select Model Appropriate for Each Spend Category
Request BU 1 BU 2 BU 3 Source Buy Pay BU 1 Shared Service BU 2 Request Source Buy Pay

Decentralized

Central Sourcing, Local Execution

Request BU 1 Shared Service BU 2

Source

Buy

Pay BU 1 Automated financial reconciliation

Request

Source

Buy

Pay

Shared Service BU 2

Automated financial reconciliation

Complete Shared Services

Transfer to Local Business Unit

Multi-Org Access Control

OLD PROCESS

Application Responsibility A

Application Responsibility B

Application Responsibility C

Operating unit X

Operating unit Y

Operating unit Z

NEW PROCESS Application Responsibility A

Operating unit X

Operating unit Y

Operating unit Z

Document Styles
Standard Style Definition

Standard Style:
Seeded style Least restrictive No Complex Payments support Documents accessible from both the Work Center and PO Forms Pre-R12 and new documents

Non-standard Styles:
Any new styles in R12 Documents accessible from Work Center only

Document Styles
Process Printed Document

Display Name from Style Used in External Facing Documents

Complex Requisition Approvals


Graphically View Approval Chain & Requisition Status
Parallel Approvals Position Hierarchy Support

Notify multiple approvers of


a requisition simultaneously

Define approval routing structures that remain stable


even if individuals / organizational structures change

Reduce approval cycle time

Minimize workflow maintenance

Support for Viewers

Keep people informed of business purchases and


decisions without requiring a response

Maintain key stakeholder engagement & oversight

Shareable Agreements
Expand Contract Utilization
Global Agreement Goods Volume Purchasing Based on Standard Agreement Local Agreement Volume Purchasing Based on Localized Agreement Business Unit 1

Business Unit 2

Services Local Amendments

Internal / External Approval

Business Unit 3

Centrally manage and share agreements within or across business units Capture base pricing, discounts, payment terms, volume agreements
(cumulative and retroactive pricing on received / invoiced goods supported)

Automatically utilize agreement and pricing to issue orders

Procurement for Complex Services


Source to Settle Support for Complex Payments

Supplier Collaboration

Request for Service Examples:

Negotiate Agreement Negotiate Payments:

Advances Make Payments:

Receipts

Invoice

Payment

Validate:

Match:

Enforce: Terms

Facilities

services Landscaping services Architectural services

Milestones Rates Advances Retainage Lump sums

Track project
details

Timecards Receipts Work


confirmations

Agreements Invoices Receipts

Recoupment
of advances

Release of
retainage

Drive Consistent Execution of Negotiated Terms & Conditions in All Spend Categories

Procurement for Complex Services


Define Progress Payment Schedule

Define progress payments - rate, lumpsum & milestone pay items

Suppliers provide timecards, receipts, and work confirmation information


that are matched with agreements and invoices

Settlement drives release of recoupment of advances & retainage

Advanced Procurement R12


The Procurement Professionals Release

Unified Workcenter For All Procurement Responsibilities Expanded Business Processes and Utilization Expanded Supplier Management and Enablement

Prospective Supplier Registration


Reduce Overhead with Self-Service Registration

Supplier Requests

Supplier Registration

Review & Approval

Use corporate website


to allow interested prospective suppliers to register

Configure qualification
details captured during registration

Use request details to


customize approval flow

Enable approvers to
update details

Define req. elements


of supplier profile

Notify suppliers via


email once registration request has been approved / rejected
* Requires iSurvey

Include customized
questionnaires* as part of registration

Supplier Management User-Interface


Streamlined Supplier Profile Management

To Do List for requests Create supplier Search or drill down to supplier details

Unified Catalog Architecture


Establish a Single Authoring, Ordering, & Maintenance Environment

Sourcing User
Add new items from award lines

Catalog Admin
Bulkload / online author & update content

Buyer Punchout & transparent punch-out

Supplier
Upload and maintain content

Catalog Catalog
Approval workflows

Requester

Buyer

View, approve, add, edit, and delete items

Reduce Maintenance Efforts and Drive Spend Visibility

Tolerance Based Auto-Approvals


Automate Processing of Routine Change Requests
Touchless Processing
Supplier Change Orders / Requests Supplier Portal
Within Requesters tolerance?

Exception Processing
Approver No
Route to Requesters hierarchy

Yes
Within Buyers tolerance?

Buyer No
Route changes to Buyer

OSN*/ XML / EDI

Yes
PO updated & submitted to approval workflow

eMail

Yes
PO changes within limits?

Purchasing Mgr No
Route changes to buyers hierarchy

PO Approved

Fax

Self-Service Supplier Scorecarding


Drive Improvements w/ Access to Supplier Performance Management

Supplier management KPIs

Spend analysis trend

Evolution of Oracle Advanced Procurement


Base Differentiators Self-service enterprise
requisitioning from suppliers or internal stock Integrated asset and production planning Self-service supplier inquiries and transactions, (e.g. VMI and self-invoicing) Flexible invoice matching including match to receipt Automatic invoice and debit memo generation Project- and budgetarybased purchasing Multi-attribute scoring for reverse auctions and RFQs Open platform for demand, orders, receiving, invoices Integrated spend and supplier intelligence Workflow-driven automation

New in 11i.9 Global agreements Supplier managed and


consigned inventory Requester and supplier change requests Supplier registration and profile management Collaborative sourcing Requester stores for secure content zones Patent-pending transparent punch-out One-click renegotiation of blanket agreements Expanded XML support including cXML for easing Ariba migrations Time-phased pricing for direct materials Commodity intelligence

New in 11i.10 Services procurement


contingent labor & bus services, negotiation through payment Procurement contracts global T&Cs standards, negotiation, doc & change mgmt, compliance Formula-based pricing & tiered discounts (Advanced Pricing) Retroactive pricing including automated invoice adjustments Negotiate with subjective scoring and what-if analyses Automatic bid scoring and award (Sourcing Optimization) Shared services procurement Requisition SmartForms LPN & lot/serial receiving Supplier managed banking

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

Evolution of Oracle Advanced Procurement


New in R12
PLUS Professional Buyers WorkCenter 2-way MS Word integration Complex requisition approvals w/
requestor-directed procurement, parallel & position hierarchy approvals

Shared services support Supplier catalog authoring Advanced pricing


integration

Work confirmations Retainage &


authorization of release

Team scoring of sourcing rqmts Procurement for complex svcs Prospective supplier registration Supplier mgmt user interface for
supplier profile management

Unified catalog architecture Content security w/ content zones Tolerance based change order autoapproval

eTax integration Document styles Negotiation styles Negotiation drafts Automatic scoring of
requirements

PO lifecycle tracking Non-PO invoices Clause usage &


compliance analysis

Supplier-managed
user admin

Self-service supplier scorecarding

Supplier knockout criteria Payment advances &


recoupment

Progress payments based


on milestones, rates, & lump sums

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

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 Oracles products remains at the sole discretion of Oracle.

Meet the Experts


at the Applications and Industries lounges -Oracle Open World 2007

Moscone West - 2nd floor (overlooks)


Oracle Advanced Procurement, Overlook 3, Monday 3:30p.m. -5:30 p.m. All Applications Tools & Technology Financial Services, Retail and Communications Industries CRM On Demand, Business Processing & Information Tech Outsourcing AppsLab & Web 2.0

Other Procurement Strategy Sessions


Monday November 12, 2007 3:15 p.m. Oracle E-Business Suite Advanced Procurement: Oracle Purchasing Overview and Release 12 Update Moscone West, 2003 4:45 p.m. Oracle E-Business Suite Advanced Procurement: Building the Business Case for Upgrades to Release 12 Moscone West, 2003

Tuesday November 13, 2007 3:15 p.m. Oracle E-Business Suite Advanced Procurement: Oracle iProcurement and Oracle Services Procurement Overview and Release 12 Update - Moscone West, 2003

Wednesday November 14, 2007 9:45 a.m. Oracle E-Business Suite Advanced Procurement: Oracle Sourcing and Oracle Sourcing Optimization Overview and Release 12 Update - Moscone West, 2003 Thursday November 15, 2007 1.00 p.m. Oracle E-Business Suite Advanced Procurement: Managing Complex Services with Release 12 Moscone West 2003

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