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Supplier Management Solutions Campofiorito Carmelo Financial Services Lead Industry Sales Consultant Complete, Open, Flexible, Integrated
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Page 1: Oracle Procurement Channel

Supplier Management Solutions

Campofiorito Carmelo

Financial Services Lead Industry Sales Consultant

Complete, Open, Flexible, Integrated

Page 2: Oracle Procurement Channel

The following 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

Safe Harbor Statement

© 2010 Oracle Corporation – Proprietary and Confidential

material, code, or functionality, and should not be

relied upon in making purchasing decision. The

development, release, and timing of any features

or functionality described for Oracle’s products

remains at the sole discretion of Oracle.

Page 3: Oracle Procurement Channel

“…companies are spending

between $585 and $1,000

per supplier annually…however, when information,enabled by technology, becomes visible across the

© 2010 Oracle Corporation – Proprietary and Confidential

enabled by technology, becomes visible across theorganization, costs per supplier quickly dwindle to

below $150

per supplier.”

AMR Research, June 2009

Page 4: Oracle Procurement Channel

Immediate Cost Saving Opportunities

“…companies are spending

between $585 and $1,000

per supplier annually…however, when information,enabled by technology, becomes visible across the

An Economic Dream: Supplier Information Technology’s Massive Cost-Saving Opportunity

© 2010 Oracle Corporation – Proprietary and Confidential

enabled by technology, becomes visible across theorganization, costs per supplier quickly dwindle to

below $150

per supplier.”

AMR Research, June 2009

Page 5: Oracle Procurement Channel

Supplier ManagementBusiness Challenges

Supplier Management Cost

• Mitigate risk and on-board suppliers quickly

• Provide self-service administration to suppliers

• Streamline communication with suppliers

Poor Visibility

• Track supplier performance evaluations, qualifications and deliverables

• Know which suppliers are dependable and cost effective

• Be assured that spend analytics is complete and accurate

© 2010 Oracle Corporation – Proprietary and Confidential

Compliance & Governance

• Assure that suppliers are meeting the code of conduct

• Ensure that suppliers are adhering to all laws, regulations & standards

• Provides visibility to viability of suppliers

Fragmented Data

• Unify duplicated, incomplete, inaccurate data held within multiple, disparate systems

• Consolidate & federate shared information across instances

Supplier Management

Page 6: Oracle Procurement Channel

eProcurement Footprint

© 2010 Oracle Corporation – Proprietary and Confidential

Page 7: Oracle Procurement Channel

Oracle Advanced ProcurementThe Integrated Suite that Dramatically Cuts All Supply Mgmt Costs

Spend Categories

Indirect

Goods

Approval Touchless Automated

Reduce Spend on Goods and Services

CategoryManagement

OnlineSourcing

SpendAnalysis

Streamline Procurement Processes

SupplierCollaboration

Orders

Logistics

SupplierPortal

© 2010 Oracle Corporation – Proprietary and Confidential

DirectMaterials

EngineeredGoods

Services ApprovalRouting

TouchlessBuying

Automated

Payment

Enforce Policy Compliance

Budget-BasedProcurement

ContractManagement

SupplierPerformance

Settlement

ProfileManagement

SupplierNetwork

Page 8: Oracle Procurement Channel

Complete Procure-to-Pay AutomationReduce Manual Effort and Free Staff for Higher-Value Activities

Transaction Execution

ProcureProcure--toto--Pay AutomationPay AutomationProcureProcure--toto--Pay AutomationPay Automation

Create Purchase Order

Dispatch Electronic PO to Supplier

Auto-Approve Minor

Changes

Receive Goods or Services; Inspect

Receive ElectronicInvoice

Pay Supplier(EFT)

Apply Agreement Terms & Conditions

Apply Auto-Source Rules

© 2010 Oracle Corporation – Proprietary and Confidential

Higher Value Activities

(e.g., program management)

ProcureProcure--toto--Pay AutomationPay AutomationProcureProcure--toto--Pay AutomationPay Automation

Higher Value Activities

(e.g., supplier development)

Page 9: Oracle Procurement Channel

Oracle Supplier Management SolutionHelps Complete the eProcurement Footprint (2 & 3)

© 2010 Oracle Corporation – Proprietary and Confidential

Page 10: Oracle Procurement Channel

Oracle Supplier Management SolutionHelps Complete the eProcurement Footprint (2 & 3)

© 2010 Oracle Corporation – Proprietary and Confidential

Page 11: Oracle Procurement Channel

Supplier Search

Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey )

Invitation

Supplier Self-Service

Registration

Supplier Directory

Oracle Supplier Lifecycle ManagementFunctional Overview

© 2010 Oracle Corporation – Proprietary and Confidential

Supplier Profile, Classification, Bank Detail, Relationship Maintenance

Ongoing Assessments (eRFx/Survey)

Contract

Supplier Inactivation

Supplier Performance Analysis and Management

SupplierMasterSupplierMaster

&

Page 12: Oracle Procurement Channel

Extensible Supplier ProfileCompany, Address, Site, Item Level Extensions

Computer Supplies, Inc.Computer Supplies, Inc.

CSI, New York, US

Supplier Organization Level

Supplier Address Level

CSI, Shanghai, China

Supplier Company

Insurance Information

Worker Compensation, Liability, Auto, EMR

Quality Systems

ISO 9001, ISO 14001, ASA 100, FAR 145

Compliance Information

Environmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant

Production Capacity

Machinery, Average Capacity, Max. Capacity

© 2010 Oracle Corporation – Proprietary and Confidential

Vision, San Francisco, US

Operating Unit

Vision, Dallas, US

Operating Unit, Inventory Organization

Vision, Atlanta, US

Operating Unit

Buyer Company

Supplier Site / OU Level

Vision Computer Vision Computer CorporationCorporation

Vision, San Jose, USInventory Organization

Vision, Fremont, USInventory Organization

Vision, Stratford, USInventory Organization

Logistics Information

Standard Delivery Time Guarantee

Transport Insurance Type

Freight Forward Detail

Item / Supplier Level

Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, RoHS Compliant, WEEE Compliant

Page 13: Oracle Procurement Channel

Access to Supplier ProfileControlling Who Can View / Edit What Supplier Information

A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A17 A18 A19 A27 A28 A29 A30 A35 A36 A37Supplier

Attributes:Values:

Computer Supplies, Inc.Computer Supplies, Inc.

© 2010 Oracle Corporation – Proprietary and Confidential

Strategic BuyerStandard Buyer Administrator Supplier User

Page 14: Oracle Procurement Channel

SuppliersBuyers• Consolidation & maintaining

accurate Supplier master information across the enterprise

• Supplier Data Enrichment

D&B out-of-the-box integration

(Credit&Risk info, Relationship& Hierarchy info, Summary Information, Supplier Evaluation Scores, Supplier Risk Analysis)

Supplier Master Data ManagementConsolidate, Cleanse, Enrich and Distribute Supplier Master Data

© 2010 Oracle Corporation – Proprietary and Confidential

Analysis)

• Supplier Data Quality Management

out-of-the-box integration (Address matching and Cleansing, Validation code returned that indicates match confidence)

• Distribution

as a single point of truth to all operational & analytical applications

Trusted

Supplier

Data

Trusted

Supplier

Data

Page 15: Oracle Procurement Channel

Supplier Master Data ManagementDelivers Consistency

© 2010 Oracle Corporation – Proprietary and Confidential

Page 16: Oracle Procurement Channel

Supplier Search

Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey )

Invitation

Supplier Self-Service

Registration

Supplier Registration and Qualification

SupplierSupplier

Oracle Supplier Lifecycle ManagementFunctional Overview

© 2010 Oracle Corporation – Proprietary and Confidential

Supplier Profile, Classification, Bank Detail, Relationship Maintenance

Ongoing Assessments (eRFx/Survey)

Contract

Supplier Inactivation

Supplier Performance Analysis and Management

&

SupplierMasterSupplierMaster

Page 17: Oracle Procurement Channel

Supplier Registration and QualificationProcess Flow

Computer Computer Supplies, Inc.Supplies, Inc.

New Supplier

� Prospect Self-Registration

Vision Computer Vision Computer CorporationCorporation

Admin

� Review request, Attach Questionnaire

Computer Computer Supplies, Inc.Supplies, Inc.

New Supplier

� Respond to Questionnaire

Prospect Supplier Request

Prospect Supplier Request

Duplicate checks

© 2010 Oracle Corporation – Proprietary and Confidential

Vision Computer Vision Computer CorporationCorporation

�Supplier Evaluation, Scoring, Shortlist and

Approval

� Supplier and Evaluator Response mastered as profile

Supplier Master Profile

SupplierMaster

� System Notification to New Supplier

Evaluation Team

Prospect Supplier Request

Page 18: Oracle Procurement Channel

Supplier Search

Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey )

Invitation

Supplier Self-Service

Registration

SupplierSupplier

Oracle Supplier Lifecycle ManagementFunctional Overview

© 2010 Oracle Corporation – Proprietary and Confidential

Supplier Profile, Classification, Bank Detail, Relationship Maintenance

Ongoing Assessments (eRFx/Survey)

Contract

Supplier Inactivation

Supplier Performance Analysis and Management

&

Supplier Profile Management

SupplierMasterSupplierMaster

Page 19: Oracle Procurement Channel

Supplier Profile ManagementProcess Flows

Flow #1

Supplier Self-Service

Profile Management

© 2010 Oracle Corporation – Proprietary and Confidential

Flow #2

Buyer Initiated

Profile Maintenance

Page 20: Oracle Procurement Channel

Supplier Search

Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey )

Invitation

Supplier Self-Service

Registration

SupplierSupplier

Oracle Supplier Lifecycle ManagementFunctional Overview

© 2010 Oracle Corporation – Proprietary and Confidential

Supplier Profile, Classification, Bank Detail, Relationship Maintenance

Contract

Supplier Inactivation

Supplier Performance Analysis and Management

&

Supplier Performance Management

Ongoing Assessments (eRFx/Survey)

SupplierMasterSupplierMaster

Page 21: Oracle Procurement Channel

Company ScorecardAuditing Supplier Performance for Company KPIs

• Quantitative assessment:How well is a Supplier meeting my KPIs?

– “To register all organic growers in countries as part of our target to ensure all organic growers are registered to Nature's Choice”

– “To audit all organic suppliers as part of our target to ensure that 100% of organic suppliers comply with Nature's Choice”

© 2010 Oracle Corporation – Proprietary and Confidential

suppliers comply with Nature's Choice”

• Qualitative feedback:What do my folks tell me about supplier performance?

– What do my Buyers think about this supplier?

– Do my requisitioners find the supplier easy to deal with and flexible when needed?

Page 22: Oracle Procurement Channel

Company ScorecardAuditing Supplier Performance for Company KPIs

• Quantitative assessment:How well is a Supplier meeting my KPIs?

– “To register all organic growers in countries as part of our target to ensure all organic growers are registered to Nature's Choice”

– “To audit all organic suppliers as part of our target to ensure that 100% of organic suppliers comply with Nature's Choice”

© 2010 Oracle Corporation – Proprietary and Confidential

suppliers comply with Nature's Choice”

• Qualitative feedback:What do my folks tell me about supplier performance?

– What do my Buyers think about this supplier?

– Do my requisitioners find the supplier easy to deal with and flexible when needed?

Page 23: Oracle Procurement Channel

Pre-mapped metadata, including embedded

best practice calculations and metrics for

Supply Chain, Supplier, and other Business

Users.

� Presentation Layer

� Logical Business Model

� Physical Sources

3Pre-built warehouse with 10 star-schemas

designed for analysis and reporting on

Procurement & Spend Analytics.

1

WHAT IS ORACLE BI APPLICATIONS?Procurement and Spend Analytical Components

© 2010 Oracle Corporation – Proprietary and Confidential

Pre-built ETL to extract data from over 3,000

operational tables and load it into the DW,

sourced from Oracle EBS and other sources.

2 A “best practice” library of over 250 pre-built

metrics, Dashboards, Reports and alerts for

Buyers, Cost center Managers, Inventory

Managers, Procurement Managers and

Supply Chain Executives.

4

Page 24: Oracle Procurement Channel

Oracle Procurement and Spend AnalyticsComplete Solution for the Purchasing and Procurement Organization

Procurement Performance

• Understand Procurement effectiveness and monitor

Spend Analyzer

• Understand spending patterns and savings opportunities with

increased visibility into direct and indirect spend, enabling

users to determine spend by commodities, products, services,

suppliers and contract usage.

© 2010 Oracle Corporation – Proprietary and Confidential

• Understand Procurement effectiveness and monitor

procurement performance on regular basis in order to identify

bottlenecks and proactively take corrective action before they

become major issues

Supplier Performance • Understand and track cycle times, supplier price performance,

supplier scorecard, delivery performance, and product receipt

quality. Decrease costs and procurement cycle times and

minimize working capital.

Page 25: Oracle Procurement Channel

Dashboard

Pages

Roles

Performance

Measures

Conditional Navigation

Highlighting

Configurable

Filters

Oracle Procurement and Spend AnalyticsProcurement and Spend Dashboard: an Example

© 2010 Oracle Corporation – Proprietary and Confidential

Reports based on

Multiple Sources

Flexible

View Selectors

Prebuilt Reportswith over 5200 metrics

Conditional Navigation

Guided

Navigation

Page 26: Oracle Procurement Channel

Oracle Procurement and Spend AnalyticsSupplier Performance Dashboard: an Example

© 2010 Oracle Corporation – Proprietary and Confidential

Page 27: Oracle Procurement Channel

Company ScorecardAuditing Supplier Performance for Company KPIs

• Quantitative assessment:How well is a Supplier meeting my KPIs?

– “To register all organic growers in countries as part of our target to ensure all organic growers are registered to Nature's Choice”

– “To audit all organic suppliers as part of our target to ensure that 100% of organic suppliers comply with Nature's Choice”

© 2010 Oracle Corporation – Proprietary and Confidential

suppliers comply with Nature's Choice”

• Qualitative feedback:What do my folks tell me about supplier performance?

– What do my Buyers think about this supplier?

– Do my requisitioners find the supplier easy to deal with and flexible when needed?

Page 28: Oracle Procurement Channel

Supplier Performance ManagementProcess Flow and Internal Assessment

© 2010 Oracle Corporation – Proprietary and Confidential

Page 29: Oracle Procurement Channel

• Improve Supplier Performance Management

• Reduce Supplier Management Costs

• Simplify Supplier Selection and Reduce Risk

Oracle Supplier Management SolutionSummary

© 2010 Oracle Corporation – Proprietary and Confidential

• Enhance Supplier Compliance Management

• Increase Accuracy of Spend Analysis

• Streamline Procurement Processes

Page 30: Oracle Procurement Channel

Oracle Supplier Management SolutionSolution Components

• Consolidate supplier details from multiple legacy systems

• Data quality tools to cleanse

Supplier Lifecycle Management Prebuilt BI Applications

© 2010 Oracle Corporation – Proprietary and Confidential

• Manage supplier qualification processes across organization

• Perform ongoing performance assessments

• Track compliance information

• Data quality tools to cleanse records

• Use 3rd party services to enrich data• Publish back to legacy systems

Supplier HUB

• Gain a single, consistent view of procurement information across functions & data sources

• Align strategy and execution across functions

• Use guided analytics and best practice analytic workflows to drive the best actions

Page 31: Oracle Procurement Channel

© 2010 Oracle Corporation – Proprietary and Confidential