Contracts Lifecycle Purchasesing & IProcuremen_t5_02_B

7/30/2019 Contracts Lifecycle Purchasesing & IProcuremen_t5_02_B

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R12 Procurement

AB Oracle P2P Consultant
http://e/data/Accounts/Documents%20and%20Settings/mburns/bpeterse/Local%20Settings/pmoberg/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/Temporary%20Internet%20Files/HQ%20Buildings/buildings.JPGhttp://e/data/Accounts/Documents%20and%20Settings/mburns/bpeterse/Local%20Settings/pmoberg/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/Temporary%20Internet%20Files/HQ%20Buildings/buildings.JPG


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Agenda

What is new in R12 Purchasing and iProcurement

Introduction to Sourcing, Procurement Contracts,iSupplier Portal

Q&A


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iProcurement R12 enhancements

Enhanced catalog authoring

Difference summary for catalog changes

Unified catalog

Approval, revision control and archive for catalog data

Content security content zonesAdvanced approval support - OAM

Position hierarchy based approvals

Parallel approvals

Support for FYI notifications

Graphical display of approval chain

Enhanced requester driven change order management

Requester directed sourcing

Multiple search result layouts updated paragraph or grid display


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Procurement R12 enhancements

Professional Buyers Work Center

Procurement for Complex Services

Multi Org Access Control (MOAC)

E Business Tax

Document Publishing Enhancements

Communicate document attachments to suppliers OSN rapid supplier enablement

Maintain sourcing rules / ASL form agreement items

Support for contractor purchasing users

Compliance to packaging conditions

Auto approval tolerances for change orders Model complex pricing for blanket line items

Advanced approval support for requisitions

New user interface for purchasing setups


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Enhanced Catalog Agreement ManagementDescr ipt ion

Catalog Authoring Capability for Buyers, Suppliers andCatalog Administrators

Online Authoring and File Upload from Buyer Work Center, iSupplier andiProcurement Catalog Administration Responsibilities

Industry standard formats for upload mode including OAG XML, cXML, CIFand text files, with improved error review process

Difference Summary for Catalog Changes Display changes between the revised vision and the last approved version.

Visual indication for added, changed and delete lines

Approval, Revision Control and Archive Buyer can review difference summary during approval Buyers acceptance with line level disposition for all changes or only for

those that exceed price tolerance. Purchasing Approval Hierarchy, Revision Control and Archival capabilities

are added to catalog content

Real-time catalog update Extractor will be obsoleted.


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Enhanced Catalog Agreement ManagementOverview

Catalog

Approve

iSP

Supplier

SourcingSourcing

Professional

Award

PBWC

Buyer

Bulkload /

Online

author

iP Admin

Catalog

Admin

PO

Buyer

iP

Requester

External

Supplier Sites

Definitions:Buyer - Purchasing userSupplier - Supplies goods or services to the buying organizationCatalog Administrator - Performs catalog related activities within the buying organization


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Improve Catalog Management

Reduce the buying organization overhead in catalogmanagement

Buyers can delegate catalog management to suppliers and

catalog administrators Online catalog authoring for quicker catalog update

Difference Summary to highlight the changes

Version control of catalog data

Streamline catalog creation and management Catalog perpetually up-to-date and based on real-

time data

Enhanced Catalog Agreement ManagementBenefi ts


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Content Security EnhancementsDescr ipt ion

Control What Catalog Content To Show Catalog Administrators can partition local catalog content into

Local Content Zones based on items Supplier, Supplier Site, Item

Category and Browsing Category information.

Support for inclusion and exclusion rules. Ability to include Inventory items.

Once defined, Content Zones may be made accessible to users ofspecific Responsibilities or Operating Units.

Content Zones may be assigned to multiple Stores. Stores may contain multiple Content Zones.


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Content Security EnhancementsPart i t ion Con tent

Release 12 Content Zones Replace 11.5.10 Catalogs.

All Content Zones Support Operating Unit or Responsibility

Security.

CataiCataCatalog Smart Forms

Content Zone

Realms

11.5.10 Release 12


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iProcurement Content SecurityWhats New?

Category

Supplier

....

SupplierYSupplierX

CategoryA

CategoryB

CategoryC

The rules:

Include items from

supplierX

Include items from

category C

Correspond to the red

block

of available content.

Example: Local Content Inclusion Rule


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Catego

ry

Supplier

....

SupplierY

SupplierX

Category

A

Category

B

Category

C

The rules:

Exclude SupplierX

Include Category A

Include Category C

Results in red blocks of

available content.

Exclusion is useful when

we need to exclude a singleSupplier (e.g., X) from many

others (e.g., A-Z).

Example: Local Content Exclusion and Inclusion Rules


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Include specific suppliers

Include specific categories

Make content accessible tospecific user groups

Lets Look at how category rules are defined:


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Create Category Specific

Stores (e.g., Legal Forms

and Services) by creating

one or more category

specific Content Zones

Include content for some

users (e.g., Buyers) thatshould not be available to

the general public (e.g.,

Novice Requesters).

Example: Include Specific Categories (local content):


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Include specific

suppliers


Make content accessible tospecific user groups

Lets Look at how supplier rules are defined:


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Include items on GBPA,

BPA, Quotation, Requisition

Templates from specificsuppliers.

Segregate Inventory and

Externally Sourced content

into separate Stores bycreating multiple Content

Zones with different

inclusion settings.

Example: Include Specific Suppliers (local content):


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Include specific suppliers


Make content accessible

to specific user groups

Once content rules have been completed, the Content Zone

may be assigned to all, or some, users:


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Assign Content Zone to specificResponsibilities, Operating Units,

or all Users.


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Increase Security Inclusion and Exclusion rules provide more control over

content.

Responsibility and Operating Unit assignments enable

specific user sets to access specific catalog content.

Improve Usability Single feature-set replaces and enhances functionalities

previously provided by Realms, System Profiles, Catalogs,and Extractor.

Content Security EnhancementsBenefi ts


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Requester Driven Change Order Mgmt

Change Order Approval and Routing Based onTolerances

Requesters and Suppliers changes are routed to the

requesters approval hierarchy

PO changes are routed to to buyer for approval Bypass approval for changes within tolerances


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Requester Driven Change Order MgmtBenefi ts

Enhanced Requester Driven Change OrderManagement Streamlines the Change Order Process

Tolerances to indicate when a requester initiated change should

be routed to the requester hierarchy for approval Tolerances and options to determine the need for buyers

approval

Auto-approval for minor changes

Flexible Tolerances

Simple user interface for managing tolerances instead of usingworkflow attributes

Minimum/Maximum increment by amount or percentage

Multiple attributes: document amount, unit price, line amount,need by date, promise date


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Usability Enhancements

Search & Browse within Stores Paragraph and Grid Layouts

Grid Format allows requesters to differentiate betweensimilar items effectively.

Item Details and Comparison Page Layout Enhanced

Create and maintain multiple Favorites Lists. List of Values (LOVs) capability are enhanced.

Provides users with tools to find the values they are lookingfor easily and effectively

Enhancements include: Sorting Capability

Expanded Search Criteria


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Usability EnhancementsParagraph Search Skin

2 column layout ensures

sufficient spacing withitem image

Price, UOM and action buttons

appear on last rows of each

item description

Images may be hidden.

When they are hidden,

three columns ofdescriptors appear


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Usability EnhancementsParagraph Search Skin

3 columns format

allows more

information to be

displayed


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Usability EnhancementsSearch Sk ins Grid Format

The grid format allows users to differentiate between

similar items more effectively.


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Usability Enhancements

Advanced Approvals Enhancements Parallel Approvals

Notifications are sent out to multiple people

simultaneously to speed up the approval process Support for Viewers

FYI notification, approval is not needed

Position Hierarchy Support

Graphical Approval Path UI Display


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Advanced Approvals EnhancementsExample App roval List

A requisition for furniture totaling $4,500 is created. The req will need to beapproved by the position hierarchy chain and the Facilities ManagementGroup.

Parallel Approval

Takes you to addapprover/viewer,

delete approvers


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Advanced Approvals EnhancementsExample Add Viewers

Option to add Viewers to the

Approval List


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Advanced Approvals EnhancementsExample Add Viewers

Viewer


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Usability EnhancementsBenefi ts

Increase Flexibility Users can specify their search results layout preference: Paragraph or

Grid

Users can maintain and manage multiple favorites lists

Users have more options when searching using List of Values (LOVs)

Improve Ease of Use Updated user interface provides requesters with more intuitive and user-

friendly layout

Allows users to identify desired information quickly


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Usability EnhancementsBenefi ts

Speed up Approvals Process While Still MaintainingOversight Requisition can be routed to multiple approvers simultaneously

Increase Flexibility for Setting up Approval Routes

Voting Regime allows enterprises the flexibility in defining approval rules

Reduce Setup Efforts Approval rules can be defined once and be leveraged across multiple

products, requiring less maintenance work

Provide Intuitive Graphical View of Approval List Graphical View for Approval List provides users with quick view of theapproval list and status


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Oracle Purchasing Delta Summary


Enhanced Catalog Access Document Styles

Multi-Org Access Control

Document Publishing Enhancements

Communicate Document Attachments to Suppliers

Maintain Sourcing Rules/ASLs for Agreement Items Complex Services Procurement

Support for Contract Purchasing Users

Supplier Packaging Constraints

E-Business Tax

Model Complex Pricing for Blanket Line Items Mass Re-pricing of Purchasing Documents

Auto-Approval Tolerances for Change Orders


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Professional Buyers Work CenterFeature Description

Requisitions

View and Process Requisitions into Orders or Sourcing Events Orders

Create and Manage Purchase Orders Agreements

Create and Manage Blanket and Contract Purchase Agreements Deliverables

Manage Procurement Contract Deliverables

Negotiations Access Oracle Sourcing

Suppliers

Create and Manage Supply Base


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Professional Buyers Work CenterCustomization and Extensibility Options

Customers can create custom views using personalizationfeature in all inquiry pages.


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Increases Productivity

Central Place for Buyers to Perform Day-to-Day Tasks

Optimized for Shared Service Centers

Streamlined Interface Increases Efficiency Pre-Seeded or Custom Views for quicker access to information

and prioritize tasks

Designed for Procurement Professionals, the PBWCCombines Ease-of-Use with Power Capabilities to Track,Manage and Control all Strategic and Tactical Activities.


Benefits


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Enhanced Catalog AccessFeature Description

iProcurement like Search Capabilities for Purchasing Users

Add Catalog Items to Purchase Orders and Agreements

Replace non-catalog requests with lines from the catalog


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Document StylesFeature Description

Enable/Disable

Features

Assign Display Names

to Document Types


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Document StylesImplementation Considerations Document Styles is a new concept in Release 12. It is a configuration tool that reduces the

complexity of the application by allowing procurement managers to control the availablefunctionality and the display of PO documents.

A document style is mandatory on a PO document. The style setting controls the documentdisplay on the HTML UI for document creation, update, and viewing of individual document, aswell as the allowable values during the document creation and update.

A style can only be applied at the start of document creation. It cannot be replaced with

another style or removed from a document. Standard Style: This will be the only seeded style and will be used for upgrade of the documents created

prior to R12.

Non-standard style:

Any new styles created in R12 are considered non-standard.

Purchasing documents with these styles can only be created and

processed through the Work Center.


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Multi-Org Access ControlFeature Description

OLD PROCESS

Application

Responsibility A

Operating unit X

Application

Responsibility B

Operating unit Y

Application

Responsibility C

Operating unit Z

NEW PROCESS

Application

Responsibility A

Operating unit Y Operating unit ZOperating unit X


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Multi-Org Access ControlImplementation Considerations

New Profile OptionsEntire Purchasing functionality requires the Multi Org Access

Control (MOAC) setups to be configured correctly. The following

new profile options need to be set for MOAC

MO: Security Profile - the group of operating units that

can be accessed in HTML Orders MO: Default Operating Unit - the default OU that should

be used when creating new POs.

If customer is not leveraging MOAC, they can continue to use R11i

profile option MO: Operating Unit.

Select Human resources responsibility to create the security profile

(Security -> Global Security Profile (Function PERWSSCP-GLOBAL)


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Document Printing Enhancements

Feature Description

XML PublisherXML Publisher

XSL-FO

Purchasing

XML

Purchasing

Layout

PO Output

11.5.10

XML PublisherXML Publisher

XSL-FO

Purchasing

XML

Purchasing

Layout

PO Output

in Multiple Formats

Release 12

New in

Release 12.0

New in

Release 12.0


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Communicate Document Attachments

to Suppliers

Attachment Type11i10 and

Beforer12

Notes to Supplier

Long/Short Text

Files (e.g. MS Word, Drawings)

URLs


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Maintain Sourcing Rules/ASLs for

Agreement Items

New Concurrent Program Introduced

Designate agreement usage in SpecificRegions or Plants

Extend rule effectivity after renewingBlanket Agreements

Maintain rules for all Operating Unitsenabled to buy off an Agreement


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Support for Contractor Purchasing

Users

Feature Description Allow Contingent Workers to Participate in PurchasingActivities

Raise and Approve Requisitions

Create, Maintain, and Approve Purchase Orders

Receive Goods and Services

New Profile Option

HR: Expand Role of Contingent Worker

Profile Value Description

YesAllow Contingent Workers to Create and Approve

Purchasing Documents

NoDo Not Allow Contingent Workers to Create and

Approve Purchasing Documents


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Compliance to Packaging Constraints

REQIMPORT

Min-Max

PURCHASE ORDER

New Process

Inventory

SUPPLIERS

Purchasing

1. Min-max creates

Replenishment Requestfor 116 Eaches

3. PO placed for 10cases of 12

4. PO complies to

Supplier packagingconstraints

2. Apply Constraints

Order Modifier

UOM Conversion

Rounding

New Quantity = 10New UOM=Cases of 12


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E-Business Tax IntegrationFeature Description

Prior toE-Business Tax

Basic tax setup tax codesand tax groups

WithE-Business Tax

Comprehensive solutionaddressing complex taxrequirements

Single point tax solution acrossE-Business Suite

Single interface: tax setupand 3rd party integration

Uniform services

Single repository

Fragmented tax solutionacross E-Business Suitemodules

Multiple tax engines

Duplicate tax setup

Fragmented data storage

Duplicate 3rd partyintegration

Note: Please refer to the e Business Tax TOI for more information on this feature


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Requisitions

Blanket

AgreementPricing

Transactions

Orders

Pricing Engine

Oracle

Advanced Pricing

Line Price

Price Break

Custom API

Price List

Formula

Modifiers

Leverage Oracle Advanced Pricingto model Complex Pricing Scenarios

Model Complex Pricing for Blanket

Line Items

Benefits

Bring Agreements with Complex Pricing Requirements Online

Accurate Pricing of Transactions without the need for Manual Overrides

Decrease Supplier over billing

Save Cost by ensuring all available discounts are applied

Mass Re-pricing of Purchasing


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Blanket Purchase

Agreement

Mass Re-pricing of Purchasing

DocumentsFeature Description

Advanced Pricing

Price Lists, Modifiers

Custom Pricing API

Orders

New inRelease 12.0

Revise PricingData


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Auto-Approval Tolerances for Change

Orders

New tolerance

attributes introduced

Set tolerances by

document type

Eliminates need

for Workflow

Customizations

Ad d A l S f


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Advanced Approvals Support for

Requisitions

Description Parallel Approvals

Notifications are sent out to multiple people simultaneouslyto speed up the approval process

Position Hierarchy Support

Ad d A l S t f


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Requisitions

Parallel Approvals In 11.5.10, approvers for a given requisition are

notified sequentially

To satisfy regulatory requirements (e.g. Sarbanes-

Oxley Act), organizations may need to involve moreapprovers

With parallel approvals, several approvers can besimultaneously notified for a given requisition, thus

speeding up the requisition approval process Parallel approvals can be setup within an approval

group or for individuals

Ad d A l S t f


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Requisitions

Voting Method A Voting Method is a way of sequencing the

approvers within an approval group/chain of authority

Types of voting methods Consensus

All approvers must respond. Approvers will receivenotifications in parallel

First Responder Wins

Approvers will receive notifications in parallel, but only theaction of the first approver to respond will be recorded

Ad d A l S t f


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Requisitions

Position Hierarchy Support In addition to the Employee/Supervisor Hierarchy

support, the integration with Oracle ApprovalManagement (AME) also supports Position Hierarchy

Approval routing structures using positions andposition hierarchies remain stable, even if individualemployees leave their organization, or transfer withinit

Ad d A l S t


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Advanced Approvals Support

Example

Business Rules: If requisition < $5,000, then requires approvals up to first

two positions up based on position hierarchy

If the items category is [IT.EQUIPMENT] then require

approval from IT Approval Group

IT Approval Group is in parallel to position hierarchyapproval chain

Ad d A l S t


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Example Approval List

A requisition for computers totaling $4,500 is created. The req will need tobe approved by the position hierarchy chain and the IT Approval Group.

Since req total is between 0 and 5000, the first 2

positions up (based on the Position Hierarchy

Rule) is generated

Approval Group returned in

Approval List since Item Category

is [IT.EQUIPMENT]

Ad d A l S t


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Example Approval List

A requisition for computers totaling $4,500 is created. The req will need tobe approved by the position hierarchy chain and the IT Approval Group.

Parallel Approval

Takes you to add

approver/viewer,

delete approvers

Ad d A l S t


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Example Add Viewers

Option to add Viewers to the

Approval List

Ad d A l S t


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Example Add Viewers

Viewer Icon

Ad anced Appro als S pport


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Example View Req Status

The Approval Graphical View shows the following:

Tom Gallant has approved the requisition

The requisition is currently pending approvals from the IT ApprovalGroup and Maria Menudo

Sourcing At a Glance


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Sourcing At-a-Glance

BuyingProfessional

Supply BaseLOB Stakeholder

Strategic sourcing is emerging as the leadingstrategy to control costs, capture innovation,and maximize performance.

Identify Suppliers& Opportunities

Conduct On-Line Negotiations

Analyze &Award

Approve &Issue

Define Strategies& Negotiations

Oracle Sourcing & Sourcing


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Source Moreof Your Spend

Source forLowest Total Cost

Create Immediate &Long-Term Savings

Oracle Sourcing & SourcingOptimization

PurchasingContract Mgmt FinanceOperations

Identify Suppliers& Opportunities

Conduct On-Line Negotiations

Analyze &Award

Approve &Issue

Define Strategies& Negotiations

Increase the Effectiveness & Efficiency of Strategic Sourcing

Efficient Online Negotiations


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Efficient Online NegotiationsSlash Cycle Time by Eliminating Manual Processes

View new incomingsupplier messages

and incompletetasks

Drill into individualsourcing events

View responses and monitorbidding activity in real-time

Facilitated Online Bid Comparison


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Use Bid Data to ReduceManual Effort

- Knock-out criteriaenforcement

-Automatic bid scoring

- Side-by-side comparison

Analyze Online forFaster, Better Awards

- Enable selection ofsuppliers, lots, or specificlines through flexibleawards

- Enforce policy compliance(e.g., multi-source rqmts,MBWE suppliers)

Use Award Summary &Recommendation

- View award details-

Facilitated Online Bid ComparisonMake Faster Award Decisions

Automatic Scoring of Requirements


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Requirements

Weight

Value(Score)

Quote990

Response

Score

Are you ISOcertified?

25%Yes (100)

No (0)No 0

Number ofyears inbusiness

35%> 14 (100)10-14 (75)

5-10 (50)

< 5 (0)

15 35

Number ofshippinglocations

40%

> 19 (100)

11-19 (50)

1-10 (25)

35 40

Total Score Calculated by Oracle Sourcing 75 Automatically eliminate suppliers that score below minimum

requirements

Automatically exclude non-compliant suppliers from shortlists

Automatic Scoring of RequirementsQuickly Identify the Best Qualified Suppliers

Centralized Terms Library


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Support Compliance and Oversight Requirements

Centralized Terms LibraryEnsure Consistent Contract Standards

Central

TermsLibrary

Capture standard contract clauses, variables,templates and deliverables

Clearly define enforceable and automatedstandard policy and procedure

Specify document format with flexibilityto accommodate regional variations

Provide comprehensive revision control vianotification-based workflow with approval rules

Expert-Based Authoring


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No

Industry

Segment?

Yes

Add Clauses High Value Insurance

Over $50k?

CommercialGovernment

Responses Drive

Clause Selection

.

.

.

Template

Contract

Contract

Draft

Expert Based AuthoringProduce Compliant Contracts

Configurable rules

drive terms selectionfor complex contracts

Clauses defaultbased on product,supplier, contract

value, etc.

Author high qualitycontracts withminimal legalsupervision

Automated MS Word Synchronization


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Legal Supplier

yQuickly and Accurately Integrate Offline Redline Edits into Contracts

ContractAdministrator

Synchronize

Legal

Review

Supplier

Acceptance

Download

Streamline internalcollaboration and suppliernegotiationby allowing keystakeholders to be involvedin the contract review

process Improve contracting

efficiency whilereducing effort

Minimize errors and risk

from manual updates

Automatic Document Generation


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Automaticallysubstitutenegotiated termsin printeddocument

Easily tailor toeach business

units standardformat logos,headers,layout, etc.

Generatestandard .pdf

businessdocument

Eliminate Manual Re-Keying

Variable Substitution

Clause Usage Analysis


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g ySearch Contracts To Analyze Clause Usage & Modification

Improved legal discovery on contracts across multiple organizations Better insight into effectiveness of current standard language usage

Enhanced visibility into contract standards requiring revision

Quickly determinenumber of incidents

Identify and viewcontracts with non-standard clauses

Contract Deliverable Tracking


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Based oncontractTs & Cs

One-time and

recurring Internal or

external

Notifyindividuals orgroups

Notify trading

partners

Track progress

Indicate failureor completion

Attach supportingdocuments

View statuschange history

Define escalationcriteria

Escalate tosupervisor

Generate monthly milestone progress reports

Provide a prototype within 3 months of contract signing

Perform site visit and inspection

Provide proof of compliance to industry standards

Example

Deliverables

DefineDeliverable SendNotification ManageDeliverable Escalate WhenNecessary

gMonitor Supplier Performance

Manage Contract Deliverables


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Alert Any Compliance Risk and Highlight Non-Compliance

Review Compliance Status Before Authorizing Payments

Track Approval History

Deliverable status

at a glance

Clearly defined

ownership

Track internal commitments

& contractual obligations

gTrack Contractual Responsibilities and Key Administrative Tasks

Prospective Supplier Registration


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p pp gReduce Overhead with Self-Service Registration

Supplier Requests

Use corporate websiteto allow interestedprospective suppliersto register

Configure qualificationdetails capturedduring registration

Define req. elementsof supplier profile

Include customizedquestionnaires* aspart of registration

Supplier Registration Review & Approval

Use request details tocustomize approval flow

Enable approvers toupdate details

Notify suppliers viaemail once registrationrequest has beenapproved / rejected

* Requires iSurvey

Supplier Management User-Interface


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pp gStreamlined Supplier Profile Management

Create supplier

To Do List for requests

Search or drill down to supplier details