Advanced Procurement
What’s New in E-Business Suite Release 12:
The Procurement Professional’s Release
Mary Burns
A Decade Of Procurement Innovation
What’s Wrong With This Picture?
Professional
Buyer
Procureto-Pay
Employees &
Business
Managers
eProcurement
1995
Suppliers & IT
Departments
Accounts
Payable
Sourcing Mgrs
& Budget
Holders
Supplier
Enablement
eInvoicing
Sourcing
2000
HR & IT
Services
Procurement
Data Analysts
& Category
Managers
Analytics
Legal and
Contracts
Managers
Data Analysts
& Project
Managers
Contract
Management
Spend Data
Management
2005
As niche start-ups drove action “at the edges”, the tools needed
for the daily business of procurement were taken for granted
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Agenda
• Procurement Challenges & Opportunities
• How Oracle Delivers
• A Look at Release 12
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Procurement
The Integrated Suite that Dramatically Cuts All Supply Mgmt Costs
Spend
Categories
Reduce Spend on Goods and Services
Spend
Analysis
Supplier
Collaboration
Category
Management
Online
Sourcing
Indirect
Goods
Orders
Streamline Procurement Processes
Supplier
Portal
Logistics
Services
Approval
Routing
Automated
Payment
Settlement
Engineered
Goods
Supplier
Network
Budget-Based
Procurement
Contract
Management
Direct
Materials
Touchless
Buying
Supplier
Performance
Enforce Policy Compliance
Profile
Management
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Reduce Spend on Goods and Services
Increase Sourcing Efficiency and Effectiveness
Purchase
Orders
RFQ
Global
Agreements
Requisitions
Online
Auction
• Online negotiations
• Online ‘expert’
collaboration
• Award optimization
Signed
Contracts
• Templates, standard
T’s & C’s
• Two-way MS Word
integration
• 1-click renegotiation
for agreements
Automatic
Implementation
Blanket
Agreements
Agreement
Creation
RFI /
Survey
Sourcing
Rules
• Automatic price &
terms enforcement
• Preferred supplier
enforcement
Exploit Savings Opportunities and use Open
Competition to Improve Price / Terms
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Streamline Procurement Processes
Reduce Manual Effort to Free Staff for Higher-Value Activities
Apply
AutoSource
Rules
Apply
Agreeme
nt Terms
&
Condition
s
Create
Purchas
e Order
Dispatch
Electroni
c PO to
Supplier
AutoApprove
Minor
Changes
Receive
Goods or
Services;
Inspect
Receive
Electroni
c
Invoice
Pay
Supplier
(EFT)
Transaction Execution
Procure-to-Pay Automation
Higher Value Activities
Higher Value Activities
(e.g., program management)
(e.g., supplier development)
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Enforce Policy Compliance
Identify and Rectify Policy Violations
• Configurable
Rejections
Indirect
& MRO
Purchasing
Professional
workflow &
automation
of routine
transactions
Return or
Modify Reqs
Approvals
Exceptions
BuyerAssisted
Direct
Materials
Purchasing
Transactions
Services
Demand
Sources
Designed Mat’ls
Demand
Queue
Rules
Config.
Automation
Document
Creation
Automatic
• Automatic
bubble-up of
exceptions
• Single point for
defining and
enforcing
purchasing
policy
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Release 12 -- Rethinking the Routine
Automate Routine Tasks, Focus on High-Value Activities
Strategic
Oracle Advanced
Procurement
Spend
Analysis
Value
High
Medium
Low
Supply
Optimization
Monitor &
Review
Controls
Answering
Supplier Queries
Contract
Negotiation
Internal
Benchmark
Delivery
Helping
Requesters
ProjectBased
Procurement
Managing
Content
Creating
Manual Orders
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Advanced Procurement R12
The Procurement Professional’s Release
 Unified Workcenter For All Procurement
Responsibilities
 Improved Support for Complex Goods & Services
 Expanded Supplier Management and Enablement
Professional Buyer’s Work Center
Enable Command & Control for the Procurement Professional
Professional
Buyer’s
Work Center
Negotiations
Contracts &
Agreements
Requisitions
• Exceptions
• Agreements
• Performance Analysis
PO
Execution
Supplier
Management
Invoicing &
Payment
• View exceptions across multiple applications and operating units
• Create, implement, and execute agreements
• Analyze performance of procurement & suppliers
Single Access Point for All Responsibilities
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Professional Buyer’s Work Center (cont.)
Enable Command & Control for the Procurement Professional
• Intuitive UI and
streamlined
workflows
• Status at-a-glance
• Multi-Org Access
Control for shared
services
• Extensive options
for personalization
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Two-Way MS Word Synchronization
Automatically Import Redline Changes for Superior Compliance
• Streamline internal
Contract
Administrator
Oracle Procurement Contracts
• Identify modified clauses
• Review changes in detail
• Accept / reject offline changes
XML
edits
collaboration and
supplier negotiation by
allowing key
stakeholders to be
involved in the contract
review process
• Improve contracting
XML
edits
efficiency while reducing
effort
• Minimize errors and risk
Legal
Stakeholders
Supplier
from manual updates
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Two-Way MS Word Synchronization (cont.)
Automatically Import Redline Changes for Superior Compliance
Accept or Reject
offline changes
Review each
change in detail
Identify modified
clauses at a glance
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Advanced Procurement R12
The Procurement Professional’s Release
 Unified Workcenter For All Procurement
Responsibilities
 Improved Support for Complex Goods & Services
 Expanded Supplier Management and Enablement
Complex Requisition Approvals
Graphically View Approval Chain & Requisition Status
Parallel Approvals
Position Hierarchy Support
• Notify multiple approvers of
• Define approval routing structures that remain stable
a requisition simultaneously
even if individuals / organizational structures change
• Reduce approval cycle time
• Minimize workflow maintenance
Support for Viewers
• Keep people informed of business purchases and
decisions without requiring a response
• Maintain key stakeholder engagement & oversight
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Team Scoring of Requirements
Technical Team
• John = 90
• Mary = 85
• Sue = 80
• Each team member
Technical Capabilities (40% weight)
Quote ABC
Commercial Team
• Sue = 75
• Doug = 80
• Tina = 85
Price (40% weight)
Quality Control Team
• Alan = 90
• Mark = 80
Technical
Capabilities
= 34
Price
= 32
Past
Performance
= 17
TOTAL SCORE: 83
scores the assigned
section
• Oracle Sourcing
calculates average
of individual score
sheets to determine
section score
• Sum of team scores
determines overall
response score (as
input to optimization)
Past Performance (20% weight)
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Procurement for Complex Services
Source to Settle Support for Complex Payments
Supplier Collaboration
Request
for
Service
Examples:
• Facilities
services
• Landscaping
services
• Architectural
services
Negotiat
e
Agreeme
nt
Negotiate
Payments:
• Milestones
• Rates
• Advances
• Retainage
• Lump sums
Advance
s
Make
Payments:
• Track project
details
Receipts
Invoice
Payment
Validate:
Match:
Enforce:
• Timecards
• Receipts
• Work
• Agreements
• Invoices
• Receipts
• Terms
confirmations
• Recoupment
of advances
• Release of
retainage
Drive Consistent Execution of Negotiated
Terms & Conditions in All Spend Categories
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Procurement for Complex Services
Define Progress Payment Schedule
Define progress payments - rate,
lumpsum & milestone pay items
• Suppliers provide timecards, receipts, and work confirmation
information that are matched with agreements and invoices
• Settlement drives release of recoupment of advances & retainage
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Advanced Procurement R12
The Procurement Professional’s Release
 Unified Workcenter For All Procurement
Responsibilities
 Improved Support for Complex Goods & Services
 Expanded Supplier Management and Enablement
Prospective Supplier Registration
Reduce Overhead with Self-Service Registration
Supplier Requests
• Use corporate website
to allow interested
prospective suppliers
to register
Supplier Registration
• Configure qualification
details captured
during registration
• Define req. elements
of supplier profile
• Include customized
questionnaires* as
part of registration
Review & Approval
• Use request details to
customize approval flow
• Enable approvers to
update details
• Notify suppliers via
email once registration
request has been
approved / rejected
* Requires iSurvey
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Supplier Management User-Interface
Streamlined Supplier Profile Management
To Do List for requests
Create supplier
Search or drill down to supplier details
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Unified Catalog Architecture
Establish a Single Authoring, Ordering, & Maintenance Environment
Sourcing User
Add new items
from award lines
Buyer
Catalog Admin
Punchout &
transparent
punch-out
Bulkload /
online author &
update content
Catalog
Supplier
Upload and
maintain content
Buyer
Approval
workflows
Requester
View, approve,
add, edit, and
delete items
Reduce Maintenance Efforts and Drive Spend Visibility
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Content Security with Content Zones
Provide the Right Content to the Right People
Suppliers
Content Zone 1
Partition content
into zones
B
  X
  
C
 
A
Combine zones
to create stores
X
Marketing Exec
X Y
Z
Categories
Suppliers
Content Zone 2
Catalog
X
X
B


X
X
C

X

A
X Y
Z
Categories
Grant access by OU
or responsibility
Promotional
Items
Professional buyer
Industrial MRO
Maintenance
• Improve control over what end users can see & user buying experience
• Execute organizational unit-specific procurement strategies
• Reduce risks associated with sensitive categories
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Tolerance Based Auto-Approvals
Automate Processing of Routine Change Requests
Touchless
Processing
Exception
Processing
Approver
Supplier Change
Orders / Requests
Within
Requester’s
tolerance?
Supplier Portal
Yes
Within
Buyer’s
tolerance?
OSN*/ XML / EDI
eMail
No
Buyer
No
Route changes to
Buyer
Yes
PO updated &
submitted to
approval
workflow
Yes
PO
Approved
Route to
Requester’s
hierarchy
PO changes
within limits?
Purchasing Mgr
No
Route changes to
buyer’s hierarchy
Fax
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Self-Service Supplier Scorecarding
Drive Improvements w/ Access to Supplier Performance Management
Supplier management KPIs
Spend analysis trend
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Evolution of Oracle Advanced Procurement
Base Differentiators…
• Self-service enterprise
requisitioning from suppliers
or internal stock
• Integrated asset and
production planning
• Self-service supplier
inquiries and transactions,
(e.g. VMI and self-invoicing)
• Flexible invoice matching
including match to receipt
• Automatic invoice and debit
memo generation
• Project- and budgetarybased purchasing
• Multi-attribute scoring for
reverse auctions and RFQs
• Open platform for demand,
orders, receiving, invoices
• Integrated spend and
supplier intelligence
• Workflow-driven automation
New in 11i.9…
• Global agreements
• Supplier managed and
consigned inventory
• Requester and supplier
change requests
• Supplier registration and
profile management
• Collaborative sourcing
• Requester “stores” for
secure content zones
• Patent-pending transparent
punch-out
• One-click renegotiation of
blanket agreements
• Expanded XML support
including cXML for easing
Ariba migrations
• Time-phased pricing for
direct materials
• Commodity intelligence
New in 11i.10…
• Services procurement –
contingent labor & bus services,
negotiation through payment
• Procurement contracts –
global T&Cs standards,
negotiation, doc & change
mgmt, compliance
• Formula-based pricing & tiered
discounts (Advanced Pricing)
• Retroactive pricing including
automated invoice adjustments
• Negotiate with subjective
scoring and what-if analyses
• Automatic bid scoring and
award (Sourcing Optimization)
• Shared services procurement
• Requisition “SmartForms”
• LPN & lot/serial receiving
• Supplier managed banking
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Evolution of Oracle Advanced Procurement
New in R12…
PLUS…
• Professional Buyer’s WorkCenter
• 2-way MS Word integration
• Complex requisition approvals w/
requestor-directed procurement,
parallel & position hierarchy
approvals
• Team scoring of sourcing rqmts
• Procurement for complex svcs
• Prospective supplier registration
• Supplier mgmt user interface for
supplier profile management
• Unified catalog architecture
• Content security w/ content zones
• Tolerance based change order
auto-approval
• Self-service supplier scorecarding
• Shared services support
• Supplier catalog authoring
• Advanced pricing
integration
• eTax integration
• Document styles
• Negotiation styles
• Negotiation drafts
• Automatic scoring of
• Work confirmations
• Retainage &
authorization of
release
• PO lifecycle tracking
• Non-PO invoices
• Clause usage &
compliance analysis
• Supplier-managed
user admin
requirements
• Supplier knockout criteria
• Payment advances &
recoupment
• Progress payments based
on milestones, rates, &
lump sums
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract