Internet Procurement

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

Manage the Spend, not the Transactions

But, do buyers have the time?

Requesters

Buyers

Suppliers

G&A Create POs Maintenance Document Approvals

Manufacturing

R&D

Communicate

Automate TransactionsFlag Exceptions

Implement Controls

Manage Supply Base

Analyze Spend

Requesters

Suppliers

G&A
Corporate Policy

Maintenance

Role-Based Security
Approval Workflow

Financial Controls

Manufacturing

R&D

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 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

Charge Accounts & Budgets Person, CC, location, item commodity controls Project tracking and reporting Full budgetary control using encumbrance accounting

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

Content Management Models

Multiple options to support different item types
Catalog Content Management
Local Catalogs
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.

Remote: Supplier Hosted

Indirect and Non-Critical MRO

Remote: Catalog Hubs

Indirect and Non-Critical MRO

Static item and pricing information Approval controls for price changes Inventory not tracked in buying org.

Supplier Hosted Catalogs

Users punchout to catalogs maintained on supplier websites

iProcurement

Firewall

Catalog content on suppliers 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

Catalogs Hosted on Catalog Content Hubs

http://www.exchange.oracle.com/

Catalog Content Hub

iProcurement

Firewall

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

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

Order Items from Suppliers or Internal Warehouses

Purchase requisitions

Local or remote catalogs Non-catalog requests for nonstandard goods

Internal requisitions

Internal catalogs for standard items Source based on availability Inter- or intra-company requests with cross-company accounting

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

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

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

Maintenance Requests for Assets

Rule Based Engine Maintenance Schedule Define maintenance schedules for assets Create requisitions for work orders from maintenance workbench, search MRO catalogs for required items Track progress against work orders Order Assets Receive and deliver items directly to maintenance location

Request

Ship To Maintenance Location

Supplier

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 Project-based requests Request goods and services for specific projects Allocate costs to multiple project accounts and budgets Track and report against projects Budgets & Encumbrance Accounting Control spending using budgets and encumbrance accounting Track spending limits and spend-todate Real-time validation of funds during request creation Approvals based on budget ownership 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

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

Productive User Interface for Self-service Audience

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

Simplify catalog searching using Transparent Punchout

Eliminate guesswork from catalog searching

Local Catalogs

Transparent Punchout* Requester Supplier A Website

User sees all search results, irrespective of catalog source, on this familiar page

Exchange.Oracle.com

*Patent Pending

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

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

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

Self-service receiving of goods and services

Increased payment control with 3-way matching
Requester initiated receipts using selfservice 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

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

Summary

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

Oracle Sourcing
Maximize Savings and Sourcing Bandwidth

Information Age Applications

Oracle Sourcing

Oracle Advanced Procurement

The Integrated Suite that Dramatically Cuts All Supply Management Costs

Demand Collection

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

Budget-Based Procurement Supplier Performance

Supplier Network

Settlement

Enforce Policy Compliance

Profile Management

Oracle Sourcing
Identify Opportunities & Suppliers Define Strategies & Negotiations Conduct On-Line Negotiations Make Savings Stick

Analyze & Award

Approve & Issue

Source More of Your Spend Structured Event Support Change Management Automated Negotiations, Bid Mgmt and Award

Source for Lowest Total Cost Cross-Functional Collaboration Knowledge Capture / Re-use Total Cost Analysis Integration

Create Immediate and Long-Term Savings Rapid Deployment Enterprise Integration Real Time Decision Support

Contract Mgmt

Purchasing

Finance

Marketing

Operations

Other

Oracle Sourcing Overview

Demand
Blanket Agreements

Collaborative Sourcing Process

RFI / Survey RFQ

Outcome
Purchase Orders Blanket Agreements Update Catalog Global Agreements

Suppliers

Requisitions

Auction

Spreadsheets (1000 lines+)

Sourcing Templates

Purchasing Data

Contracts

Signed Contract

Oracle Sourcing
Enables You To

Source More of Your Spend

Source for Lowest Total Cost Create Immediate and Long-Term Savings

Exploit More Savings Opportunities

Percentage of Spend Under Contract

Oracle Enabled Sourcing

Automated Bid Comparison System Generated Awards Efficient Change Management On-Line Negotiation Support Structured Event Creation

Traditional Sourcing Approach

Sourcing Resources

Structured Sourcing Event Creation

Greatly Reduce Preparation Time and Manual Effort
Expiring Agreement 1-Click Renegotiation

RFx, Auction

Renewal Driven

Instantly create new sourcing event from previous agreements

Requisitions

Sourcing Template

RFx, Auction

Request Driven

Aggregate requests across the enterprise to leverage buying power

Efficient Online Negotiations: Buyer

Slash Cycle Time by Eliminating Manual Processes

Drill into individual sourcing events

View responses and monitor bidding activity in real-time

View new incoming supplier messages and incomplete tasks

Efficient Online Negotiations: Supplier

Slash Cycle Time by Improving Communications
Suppliers review contract terms early in the sourcing cycle

Suppliers can review all requirements before bid submission

Efficiently Manage Change

Quickly Create New Round or Amendment
Buyer
RFQ 1234

Supplier

Publish Changes

RFQ 1234-1
New Round or Amendment

Acknowledge Changes

Create and Publish New Rounds or Amendments Online Full Audit Trail Including Net Change Comparison If Suppliers Accept, Their Quotes Roll Forward

System Generated Recommendations

Eliminate Time-Consuming Manual Analysis
Company Policy Complex Bids

Sourcing Rules Budget Constraints Supply Base Rules

Minimum 60% to incumbent supplier $100k Annual Maximum

Multiple Sites Dozens of Bid Lines

Award Optimization Engine

Model multiple business constraints and supplier inputs

Multiple Suppliers

Maximum of 5 Vendors

Optimized, PolicyCompliant Award Recommendation

Facilitated Online Bid Comparison

Make Faster Award Decisions
Utilize structured bid data
- Automatic bid scoring - Consistent format for sideby-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

Oracle Sourcing
Enables You To

Source More of Your Spend

Source for Lowest Total Cost Create Immediate and Long-Term Savings

Cross-Functional Collaboration
Combine Expertise for Higher Quality at Lower Price

Requestor
(eg., Mfg, HR)

Commodity Manager
Suppliers

Domain

Market knowledge knowledge Supplier performance Define requirements Implementation planning Best
payment terms

Constraints Costs estimates

Best delivery terms Handling instructions Latest BOM,
specs and drawings

Project Manager

Sourcing Manager

Logistics

Corporate
policy and procedure

Finance / Legal

Design Contract Manager

Sourcing Knowledge Capture

Drive Optimal Results by Re-Using Best Practices
Bidding Rules Supplier Lists Sourcing Policy Rules Sourcing Templates Pricing Factors Scoring Methods Negotiation Event Style

New Sourcing Event

Knowledge from Past Sourcing Events

Leverage Proven Practices Replicate Buyer Expertise Retain Knowledge across

the Organization

Example: Template-Based Scoring Criteria

Exclude from supplier shortlist

Weighted scoring Header Line Attribute group

Total Cost and Complete Bid Analysis

Evaluate Tangible and Intangible Costs

North American Supplier $21 vs. $21* Latin American Supplier $14 vs. $26*

European Supplier $16 vs. $23*

Asian Supplier $20 vs. $23*

Capture Total Cost

- Tangible (e.g., freight) - Intangible (e.g., switching costs)

Example:
Supplier C Bid $14
System Added

Freight 6 Tariff Risk

$ $4 $2

- Buyer and Supplier Entered

Evaluate Transformed
Bids
- View Transformed or Un*Bid vs. Transformed Bid Transformed

Transformed Bid =

Total Cost and Complete Bid Analysis

Balance Price, Quality, Promise Date, etc.

Display quote price and score based on all attributes

Preferred quotes represent an optimal balance of price, quality, promise date, etc.

Oracle Sourcing
Enables You To

Source More of Your Spend

Source for Lowest Total Cost Create Immediate and Long-Term Savings

Rapid Deployment
Start Saving Immediately
Simple RFx / Auctions Supplier Enablement Start with a few key activities

Quickly enable suppliers to participate in sourcing events

Complex RFx / Auctions

Off-the-Shelf Integration

Grow into advanced capabilities as needed

Automate complete business process using integrated Advanced Procurement platform

Implementation in days or weeks -- not

months! Incrementally implement capabilities

Consistent Execution and Compliance

Realize Sustainable Savings via Integration
Sourcing

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

iSupplier Portal

Purchasing

Example: One-Click PO Creation

Create Purchasing Documents Directly from Award

Workflow Enablement

Awarded Quotes

Create Agreements/ POs

Receive Goods or Services

Pay Supplier

Copy all pricing, contract

and deliverable information Eliminate manual entry and associated errors

Example: Real-Time Deliverable Mgmt

Easily Monitor Compliance Across the Review status of Enterprise deliverables

Drill into details

Link to source document

Track notes and correspondence

Ensure supplier compliance and consistent evaluation

- Sourcing deliverables - Contractual deliverables

Enable buyers to be proactive

- e.g., Contract milestones or expirations

Example: Contract Intelligence

Evaluate Compliance and Identify Opportunities
Expose need for new or revised contract
Consumption Trends Quality Performance

Evaluate supplier and contract performance before renewal Track KPIs including

Business Targets

Contract Utilization

Seamless Data Flows

Procurement Data
Requisitions POs Contracts Etc.

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

Sourcing Data
RFIs RFQs Buyers Auctions Templates Attributes Etc.

Shared Data

Shared Data Procurement Operating Units Data

Requisitions POs Contracts Etc. Contract Variables System and User Buyers Defined Buyer Approval Supplier Responses Hierarchy Contract Deliverables UOM Contractual & Ship to Addresses Negotiation Bill to Addresses Contract Clauses Currency Contract Templates Payment Terms Attachment Repository Suppliers Purchasing Categories Approved Supplier List Supplier Classification Inventory Items with Supplier Commodities revision

Sourcing Data
RFIs RFQs Buyers Auctions Templates Attributes Etc.

Oracle Sourcing
Easy sourcing event creation, management of on-line negotiations and bids, with automatic systemgenerated recommendations Source More of Your Spend

Cross-functional collaboration, sourcing knowledge capture / re-use, and total cost analysis

Source for Lowest Total Cost

Rapid deployment capabilities with modular integration to Advanced Procurement, and real-time decision support including deliverable mgmt

Create Immediate and Long-Term Savings

Information Age Applications