Oracle Sourcing

Oracle Sourcing

Oracle SourcingOracle ERP TrainingsOracle Sourcing Oracle Sourcing Functionality OverviewOracle Sourcing P2P CycleOracle Sourcing PaymentPurchase orderSupplierRequest for quote (RFQ)ReceiptsPurchaserequisitionDemandSourceOrderPay

Quotation

Receive

Demand: The procurement process generates and manages requests for the purchase of goods. The demand for purchase items may be a one-time event or may recur in either predictable or random time intervals.Source: The procurement sourcing process covers the business activities related to the search, qualification, and selection of suitable suppliers for requested goods and services. Order: The procurement ordering process includes purchase order placement by the buying organization and purchase order execution by the supplying organization. Receive: The receipt process acknowledges that a purchase order has been duly executed. For orders of physical goods, it will typically include the receipt, inspection and delivery of the goods to inventory or to another designated location. For orders of services, it will typically consist of a notification from the requester or the approving person that the service has been performed as agreed.Pay: The payment process consists of those activities involved in the payment for ordered goods and services.

3RFQ & QuotesOracle Sourcing Demand WorkbenchQuotationManualPrint/Send RFQRFQOracle Sourcingor iSupplier PortalSupplierlists

SupplierSource: RFQs and QuotationsOracle Purchasing provides you with request for quotation (RFQ), and quotation features to handle your sourcing needs. You can create an RFQ from requisitions, match supplier quotations to your RFQ, and automatically copy quotation information to purchase orders. Oracle Purchasing provides complete reporting to control your requests for quotations and evaluate supplier responses.Quotations can be:Entered manuallyCopied from an RFQImported using the Purchasing Documents Open InterfaceImported using the e-Commerce GatewayWith Oracle Purchasing, you can:Identify requisitions that require supplier quotations and automatically create an RFQ.Create an RFQ with or without approved requisitions so that you can plan ahead for your future procurement requirements.Record supplier quotations from a catalog, telephone conversation, or response from your request for quotation. You can also receive quotations electronically.Review, analyze, and approve supplier quotations that you want available to reference on purchase orders and requisitions. You can evaluate your suppliers based on quotation information.Receive automatic notification when a quotation or request for quotation approaches expiration.Review quotation information online when creating purchase orders or requisitions and copy specific quotation information to a purchase order or requisition.Source the items for which you negotiated purchase agreements automatically. If you created sourcing rules and approved supplier list entries for the items, supplier information can be entered automatically in the Requisitions window when you create requisitions. You can also place supplier information for items onto blanket purchase order releases.With Oracle Purchasing and Oracle Sourcing, you can:Initiate a buyers auction in Oracle Sourcing based on requisitions in Oracle Purchasing.Create RFQs and negotiations in Oracle Sourcing that result in purchase orders and purchase agreements in Oracle Purchasing.Collaborate on-line directly with suppliers to get the best terms and prices. With Oracle Purchasing and Oracle iSupplier Portal, you can:Enable suppliers to query RFQs and manufacturing planning statuses.Enable suppliers to maintain their production capabilities in Oracle Purchasing.Requisitions for goods and services:Are generated by applications like Inventory, Work in Process (WIP), Advanced Supply Chain Planning (ASCP) and Order ManagementMay be entered manually through Oracle Purchasing windowsMay be entered using Oracle iProcurementMay be imported from external systemsWith Oracle Purchasing, you can:Create, edit, and review requisition information on-line. You can enter suggested supplier information, delivery instructions, multiple accounting distributions, and notes to buyers, approvers, and receivers.Review the current status and action history of your requisitions. You always know who approves requisitions and whether they are in the approval, purchasing, receiving, or delivery stage.Route requisitions according to your approval structure. You can set authorization limits by amount, charge account, item category, and location.Review and approve requisitions that need your approval. You can see the full requisition detail and review the action history before you approve a requisition.Print requisitions (with status Approved, Cancelled, Rejected, In Process, Pre-Approved, and Returned) for off-line review and approval. You can always be able to track the status of requisitions through the approval process.Automatically source requisitions from outstanding blanket purchase agreements or quotations you have received from suppliers.Create requisitions quickly and easily for commonly purchased items.Provide attachments as notes on requisition headers and lines.Assign requisition lines to buyers and review buyer assignments for requisition lines.Forward all requisitions awaiting approval from one approver to an alternate approver. Within your security and approval constraints, you can reroute requisitions from one approver to another whenever you want.Source goods from your own inventory with internal requisitions.4RFQ & QuotesOracle Sourcing Demand WorkbenchQuotationManualPrint/Send RFQRFQOracle Sourcingor iSupplier PortalSupplierlists

SupplierSource: RFQs and QuotationsOracle Purchasing provides you with request for quotation (RFQ), and quotation features to handle your sourcing needs. You can create an RFQ from requisitions, match supplier quotations to your RFQ, and automatically copy quotation information to purchase orders. Oracle Purchasing provides complete reporting to control your requests for quotations and evaluate supplier responses.Quotations can be:Entered manuallyCopied from an RFQImported using the Purchasing Documents Open InterfaceImported using the e-Commerce GatewayWith Oracle Purchasing, you can:Identify requisitions that require supplier quotations and automatically create an RFQ.Create an RFQ with or without approved requisitions so that you can plan ahead for your future procurement requirements.Record supplier quotations from a catalog, telephone conversation, or response from your request for quotation. You can also receive quotations electronically.Review, analyze, and approve supplier quotations that you want available to reference on purchase orders and requisitions. You can evaluate your suppliers based on quotation information.Receive automatic notification when a quotation or request for quotation approaches expiration.Review quotation information online when creating purchase orders or requisitions and copy specific quotation information to a purchase order or requisition.Source the items for which you negotiated purchase agreements automatically. If you created sourcing rules and approved supplier list entries for the items, supplier information can be entered automatically in the Requisitions window when you create requisitions. You can also place supplier information for items onto blanket purchase order releases.With Oracle Purchasing and Oracle Sourcing, you can:Initiate a buyers auction in Oracle Sourcing based on requisitions in Oracle Purchasing.Create RFQs and negotiations in Oracle Sourcing that result in purchase orders and purchase agreements in Oracle Purchasing.Collaborate on-line directly with suppliers to get the best terms and prices. With Oracle Purchasing and Oracle iSupplier Portal, you can:Enable suppliers to query RFQs and manufacturing planning statuses.Enable suppliers to maintain their production capabilities in Oracle Purchasing.Requisitions for goods and services:Are generated by applications like Inventory, Work in Process (WIP), Advanced Supply Chain Planning (ASCP) and Order ManagementMay be entered manually through Oracle Purchasing windowsMay be entered using Oracle iProcurementMay be imported from external systemsWith Oracle Purchasing, you can:Create, edit, and review requisition information on-line. You can enter suggested supplier information, delivery instructions, multiple accounting distributions, and notes to buyers, approvers, and receivers.Review the current status and action history of your requisitions. You always know who approves requisitions and whether they are in the approval, purchasing, receiving, or delivery stage.Route requisitions according to your approval structure. You can set authorization limits by amount, charge account, item category, and location.Review and approve requisitions that need your approval. You can see the full requisition detail and review the action history before you approve a requisition.Print requisitions (with status Approved, Cancelled, Rejected, In Process, Pre-Approved, and Returned) for off-line review and approval. You can always be able to track the status of requisitions through the approval process.Automatically source requisitions from outstanding blanket purchase agreements or quotations you have received from suppliers.Create requisitions quickly and easily for commonly purchased items.Provide attachments as notes on requisition headers and lines.Assign requisition lines to buyers and review buyer assignments for requisition lines.Forward all requisitions awaiting approval from one approver to an alternate approver. Within your security and approval constraints, you can reroute requisitions from one approver to another whenever you want.Source goods from your own inventory with internal requisitions.5Vendor CommunicationOracle Sourcing YourCompany

Purchase requisitionRequest for quote (RFQ)Quotation or negotiationPurchase orderReceipts and returnsInvoices and paymentsSuppliers

You must define a supplier before performing most activities within Oracle Purchasing and Payables. Once defined you can:Optionally enter a recommended supplier on a requisitionUse a supplier to issue a request for quotationUse that same supplier when you enter a quotationUse supplier information for purchase ordersReceive goods or services from suppliersReturn goods to suppliersPay the supplier for the goods or services purchasedSet up suppliers to record information about individuals and companies you purchase goods and services from. You can also enter employees you reimburse for expense reports. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Most supplier information automatically defaults to all supplier sites to facilitate supplier site entry. However, you can override these defaults and have unique information for each site.6Oracle Sourcing Functionality OverviewOracle Sourcing

Key Business Flows of Oracle Sourcing

7Oracle Sourcing Product OverviewOracle Sourcing Oracle Sourcing Input Header DetailsCreate RFI, RFX or AuctionManage Collaboration TeamAdd RequirementsCreate LinesSet Controls & Event TimingSelect SuppliersReview & PublishHeaderManage Terms/ AttachmentsLinesControlsSupplier12345678Review & Acknowledge ParticipationCreate & Submit Proposal / BidSupplier ResponseOpen Invitation91011Review Supplier ResponseOpen Negotiation: Monitor Supplier ResponseClosed Negotiation: Award Negotiation1213RFI, RFX, Auction ProcessBuyer ActionSupplier ActionLegend9Oracle Sourcing

Select + GE(US) Sourcing Buyer + Sourcing+ Sourcing Homepage

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Oracle Sourcing We shall select New RFQOU : VisionOutcome:Standard POAuto create RFQ from RequisitionSelect lines from Already approved PR

Type New RFQ, New auctionOU: your current Operating UnitOutcome: Blanket PO, Complex PO, Standard

Select Lines for creating RFQ and Click Add

11Oracle Sourcing We shall select Standard Negotiation for this training

Type of Negotiations:Standard Negotiation is usually selected by may Vary in case of requirement

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Oracle Sourcing For Manual RFQ you may select from the main screen

Select Create RFI, RFQ or Auction

13Oracle Sourcing Entering Header Information

Oracle Sourcing Enter RFQ Title: ex. COMPUTER COMPONENTS 101Buyer shows the employee "Catherine Baker" tied to user CBAKER. The Organization field is "Vision Operations" and Outcome is "Standard Purchase Order".The Security Level field default value is set to Public.

Enter a Title Negotiation Style : Standard Negotiation Quote Style : Blind, Sealed Event : Blank Security Level : Public Description : Optional Operating Unit : Your Business Unit Outcome : Standard Purchase OrderEnter RFQ Title: ex. COMPUTER COMPONENTS 101Buyer shows the employee "Catherine Baker" tied to user CBAKER. The Organization field is "Vision Operations" and Outcome is "Standard Purchase Order".15Oracle Sourcing

Collaboration team Here you can add member of team, who can View, approve amend & score the Document before it is published

Internal users who have specific access to the negotiation Creator is added as default and cannot be removed Additional team members may be added if desired by clicking on Add Another Row and searching for team members- Access can be set for team members:- Full : can perform most activitiesOnly the owner can publish, close early, extend, create amendment- Scoring : members can contribute by scoring supplier responses- View Only : members can only view the negotiationNote: - (optional) Buyer can select if a member is an Approver by checking the box below Approver. Buyer can also assign Task and Target date.Collaboration team may be template driven

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Enter Ship to, Bill to locationIn case RFQ/Auction is created from PR this field is auto populated

Bill-to-Address , ship to address payment terms , Carrier, FOB, Freight terms Currency of Payment incase more payment in more than one currency is required

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Requirements are questions that the supplier should answer as part of supplier response

Requirements can be optional, required, or view onlyAnswers can be set drop down lists or open free responsesResponses can be auto-scoredTeam members with Full or Scoring access can rate the responses Check box for Requirements and Click Add Section and enter a Section Name Click Apply and Add Requirement Create a question Select Properties and ApplyOracle Sourcing 18Oracle Sourcing

Pre defined Requirement can be built in the system.In ACTIONS field LOV, choose Add Requirement ListSelect Supplier Header Info from list

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Additional header Attributes can be defines on requirement basisNote or Files can be sent to supplier20Oracle Sourcing Entering Line Information21Oracle Sourcing

Incase RFQ is created fromPR the selected items will bReflected as lines but Manual items can be added

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Oracle Sourcing Incase RFQ is created fromPR the selected items will bReflected as lines23Oracle Sourcing Define Controls24Oracle Sourcing

Restrict to Invited Supplier: Allow all suppliers to respond to the negotiation or specify that participation is by invitation only. If you specify that participation is by invitation only, you must invite at least one supplier to participate.Allow supplier to select the lines on which to respond: allow participants to respond to individual lines(s) in the negotiation, or specify that they must respond to all lines in the negotiation. Display best price to supplier.Require Full quantity: Specify that participants must submit responses for the full Quantity specified in the line. Alternatively, participants can submit responses for partial quantities. Allow multiple responses: Specify that responders must submit a single, best response in the negotiation, or may submit multiple responses during the negotiation open period. Require award approval: You can choose to require the award decision to be approved before a purchase order can be generated. Allow manual close before close date: Allow the negotiation to be closed before the close date. Otherwise, the negotiation cannot be closed until the close date. Allow manual extend when the negotiation is open: Allow a negotiation to be extended. When a negotiation is extended, new close date and time can be entered

25Oracle Sourcing Define Contract Terms26

Here contract terms can be created and applied to the RFQ.Contract terms can be used to specify legal and other requirements for the RFQOracle Sourcing Oracle Sourcing Add Suppliers28

Click on Suppliers tab from the left menu Click Add Supplier Enter supplier name and click Search Click Add to Invited Suppliers Repeat search for other suppliers as desired Click Apply Ensure that the Contact Name for the supplier is the contact in the supplier table If supplier or supplier contact not found, click on Register New Supplier. Oracle Sourcing 29Click on Suppliers tab from the left menu Click Add Supplier Enter supplier name and click Search Click Add to Invited Suppliers Repeat search for other suppliers as desired Click Apply Ensure that the Contact Name for the supplier is the contact in the supplier table If supplier or supplier contact not found, click on Register New Supplier. Oracle Sourcing

30After adding suppliers, click Review If changes are required, click Update If ready, click Publish

The invited suppliers will receive email notification to participate in the negotiationOracle Sourcing

31Oracle Sourcing Supplier Response32Oracle Sourcing Published negotiations will show up under Your Companys Open Invitations Click on the Negotiation Number

Sometimes suppliers cannot place their responses online since they have no online access. Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer has received all the quotes information, a surrogate quote can be entered into the negotiation33Oracle Sourcing Review the negotiation under Header, Lines and Controls Under Action select Acknowledge Participation (default) and click GO Enter Note to Buyer (optional) and click Apply

Sometimes suppliers cannot place their responses online since they have no online access. Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer has received all the quotes information, a surrogate quote can be entered into the negotiation34Oracle Sourcing Under Action select Create Bid and click GO Header: Enter details/Add Attachments (optional)Lines: Enter Bid Prices and click Continue

Sometimes suppliers cannot place their responses online since they have no online access. Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer has received all the quotes information, a surrogate quote can be entered into the negotiation35

Oracle Sourcing Review and click Submit

Confirm Screen

Sometimes suppliers cannot place their responses online since they have no online access. Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer has received all the quotes information, a surrogate quote can be entered into the negotiation36Oracle Sourcing Enter Surrogate Quote 37Oracle Sourcing

Sourcing Home Page -> Negotiations->Actions-> Create Surrogate Quote Sometimes suppliers cannot place their responses online since they have no online access. Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer has received all the quotes information, a surrogate quote can be entered into the negotiation38Oracle Sourcing Sourcing Home Page -> Negotiations->Actions-> Create Surrogate Quote

Sometimes suppliers cannot place their responses online since they have no online access. Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer has received all the quotes information, a surrogate quote can be entered into the negotiation39

Oracle Sourcing Accept Terms & condition on behalf of SupplierSometimes suppliers cannot place their responses online since they have no online access. Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer has received all the quotes information, a surrogate quote can be entered into the negotiation40Oracle Sourcing

Enter Header and line information as per Vendor QuoteQuote Received Time: This is the time when the buyer received quote from supplier. The Quote Received Time must be before current date, after RFQ Open Date and before the RFQ Close Date. Quote Valid: The date and time till when the quote will be valid. In ABL this field is mandatory. 41Oracle Sourcing After Entering Quote Value in the attributes tab click

Quote Received Time: This is the time when the buyer received quote from supplier. The Quote Received Time must be before current date, after RFQ Open Date and before the RFQ Close Date. Quote Valid: The date and time till when the quote will be valid. In ABL this field is mandatory. 42Oracle Sourcing Review Quotes and Award43Oracle Sourcing

Analyze by BidLive ConsoleClick on Published Negotiation From the Action drop down menu, select your option to review, for example select View Live Console or Analyze by Bid and click Go

From the Action drop down menu, select Close RFQCheck Close negotiation Immediately radio button

44Oracle Sourcing Oracle Sourcing provides following options: Analyze By Quote Analyze By Line Analyze By Spreadsheet

Award Optimization

45Oracle Sourcing If Graph Price is clicked, the resulting Monitor page shows the responses in a graph. If Analyze is selected the resulting Analyze Line: page displays additional information about the responses to that line, including that response's rank

46Oracle Sourcing - Select lines to award to each supplier by selecting the radio button- Click Recalculate Award button to update the award and savings amounts at the bottom of the screen When done, select Save Award from the Actions drop down and click GoReturn to the negotiation header by clicking on the Title link

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Select Complete Award to close the negotiation and award Purchase order to approved vendor

48Oracle Sourcing Create Reusable Invitation List49Oracle Sourcing -

On main sourcing page select item from reusable listClick create Invitation list 50Oracle Sourcing -

Enter Name of the List that will be shown on the screen Add description incase the Alias/ shortname is selected Click add Supplier to search for supplier

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When found Add Vendor to list along with required site.Select multiple sites where required

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Enter the required information like contact person email and apply to add to list

53Oracle Sourcing Create Reusable Attribute List54Oracle Sourcing -

Click Attribute list on main sourcing page under reusable listOn Reusable attribute list page click Create attribute list to add new or search for active and inactive list from this page

Enter Name that will be shown as attribute set as per requirementEnter Description as per requirementAttribute (up to 240 characters) Name your line attribute (for example: Mileage; PPM Defect Rate; Grade). Group Select an attribute group from the menu . Groups are used for categorizing attributes. Attribute Type Your attribute can be required (all suppliers must enter a value for this attribute when responding), optional (suppliers are not required to enter a value for this attribute when responding), or display only (displayed without allowing any response). Value Type Select the type of characters suppliers can enter for this attribute when responding: Text (letters/words, digits), Number (digits with decimals allowed), Date (numbers in date format), or URL (using the format http://www.oracle.com). The value type also governs the characters you can enter in the RFQ/Auction Value field. Note: Text is the most flexible value type. If you select Text, suppliers can enter letters as well as digits. If you select Numbers, participants can only enter digits; if you select Dates, suppliers can only enter digits in date format.Target Value (up to 4000 characters) Enter a target value for the line attribute (for example: Fewer than twelve thousand miles per vehicle; Fewer than eight defects per million parts manufactured). 55Oracle Sourcing -

Enter Name, description of the list Select active or inactive {only active will be visible on the attribute list screen}Enter Name of attributeSelect group Select if attribute is mandatory or optional Assign target value if it can be decided at the time of list

Multiple attributes can be added to single list

Enter Name that will be shown as attribute set as per requirementEnter Description as per requirementAttribute (up to 240 characters) Name your line attribute (for example: Mileage; PPM Defect Rate; Grade). Group Select an attribute group from the menu . Groups are used for categorizing attributes. Attribute Type Your attribute can be required (all suppliers must enter a value for this attribute when responding), optional (suppliers are not required to enter a value for this attribute when responding), or display only (displayed without allowing any response). Value Type Select the type of characters suppliers can enter for this attribute when responding: Text (letters/words, digits), Number (digits with decimals allowed), Date (numbers in date format), or URL (using the format http://www.oracle.com). The value type also governs the characters you can enter in the RFQ/Auction Value field. Note: Text is the most flexible value type. If you select Text, suppliers can enter letters as well as digits. If you select Numbers, participants can only enter digits; if you select Dates, suppliers can only enter digits in date format.Target Value (up to 4000 characters) Enter a target value for the line attribute (for example: Fewer than twelve thousand miles per vehicle; Fewer than eight defects per million parts manufactured). 56Oracle Sourcing Create Requirements and Cost Factors should be done by users for Practice57Oracle Sourcing Update Negotiations style58Oracle Sourcing -

Under administration select Negotiation style to update style as per requirement of the organizationTwo Major AreasHeader Lines

Requirements AutoExtend in Auctions Collaboration Team Team Scoring Proxy Bidding in Auctions Power Bidding and Quoting in Auctions and RFQs Supplier Registration and Pre-Qualification in RFI Supplier Evaluation Hide Terms Section Hide Abstract and Forms Section Hide Attachments Internal in RFI Enable Supplier Profile Attributes Region Integrate Requirements with Supplier Profile Attributes Integrate Header Attachments

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Select the type of document type the negotiation is applied

Requirements AutoExtend in Auctions Collaboration Team Team Scoring Proxy Bidding in Auctions Power Bidding and Quoting in Auctions and RFQs Supplier Registration and Pre-Qualification in RFI Supplier Evaluation Hide Terms Section Hide Abstract and Forms Section Hide Attachments Internal in RFI Enable Supplier Profile Attributes Region Integrate Requirements with Supplier Profile Attributes Integrate Header Attachments

60Oracle Sourcing Update Terms & conditions 61Oracle Sourcing -

On administration Page Select setup Negotiation Terms & conditionsThese terms can be entered in Multiple Languages as per requirement

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