Oracle MDM Partner Summit
Supplier Hub…
Supplier Management Update
Mark Peachey
Director, Product Strategy
20/21/22 May 2014
Oracle HQ
1
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 Supplier Management – It’s Different!
Agenda
 Business Update - How Are We Doing?
 Product Updates - What Have We Done?
 Roadmap - Where Are We Going?
 Customers - What Are They Doing?
2
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Supplier Management
Invitation
Self Registration
Profile &
Pre-Qualification
o
Increase Accuracy of Spend
Analysis
o
Lower Supplier Collaboration Costs
o
Improve Supplier Performance
o
Reduce Supplier Management
Costs
o
Simplify Supplier Selection and
Reduce Risk
o
Enhance Supplier Compliance
o
Streamline Procurement Processes
Identify
Compliance &
Risk Assessment
Enable
Identify
Contracts
Retire
Exchange
Documents
Supplier
Master Data
Collaborate
Administer
Change
Management
Profile, Classification,
Bank Detail, etc.
Retire
BUYER
3
Recurring
Assessments
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Performance Analysis & Mgmt
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SUPPLIER
SM - Critical to Procure-to-Pay Automation
Organizations are Focused on Reducing Manual Effort
Apply
Auto-Source
Rules
Apply
Agreement
Terms &
Conditions
Create
Purchase
Order
Dispatch
Electronic
PO to
Supplier
AutoApprove
Minor
Changes
Receive
Goods or
Services;
Inspect
Receive
Electronic
Invoice
Pay
Supplier
(EFT)
Transaction Execution
Procure-to-Pay Automation
e.g. Procurement Orchestration
Program Management
Free Staff for Higher-Value Activities
4
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e.g. Supplier Development
Efficient Business Document Exchange
Reduce Process Errors, Manual Effort, and Lag Time in Transactions
Supplier Registration & Profile Management
Forecast & Schedules
ver1
ver2
Orders
Change Orders
Shipment Notices & Work Confirmations
Invoices & Payments
BUYER
SUPPLIER
Time Cards
Catalogs
5
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Efficient Business Document Exchange
Reduce Process Errors, Manual Effort, and Lag Time in Transactions
ver1
ver2
Oracle Supplier Network
Transaction Delivery for High
Volume Suppliers
BUYER
SUPPLIER
iSupplier Portal
Low Volume Collaboration
Inquiry for All
Supply Base
6
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MDM for Suppliers
Unify and Share Critical Info about an Organization's Supply Base
Legacy
Legacy
Trusted
Supplier
Data
Consolidate Supplier Information
Flexible data import formats across heterogeneous
systems, advanced attributes and relationships
models, and configurable rules governing a ‘golden’
supplier record
Cleanse and Enrich Supplier Info
Embedded data-quality tools, fuzzy matching
de-duplication and intelligent merge, and integration
to third party data sources like D&B and Trillium
Share Supplier Info across Silos
Comprehensive business events, syndication and
federation services, and real-time message delivery
7
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Improve Pricing, Reduce Costs
Benefits of a Unified Supplier Master
 Reduce price of goods & services
– Consolidated supplier master critical for effective spend analysis
– Model supplier relationships to determine true spend
– Effective use of spend ‘budget’ in contract negotiations
 Streamline administration to cut costs
– Manual data maintenance; time-consuming & expensive
– Inconsistent supplier data > high levels of repetition
– Avoid rework caused by ‘stale’ profile data
8
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Improve Collaboration Efficiency
Streamline Coordination with Suppliers
 Drive down collaboration costs
– Reduce/remove costs of processing paper documents
 E-Invoicing is typical focus – but outbound also key
 Transition significant number of suppliers to electronic connection
 Opportunity to refresh role of AP team
 Shift document/data validation towards supplier
– Avoid validation failures following document delivery
 Shrink cycle times for order changes & invoices
– Avoid shipping errors
– Enable invoice discounting opportunities
9
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Control Relationship Costs
Streamline Supplier Support & Avoid Pricing Pressure
 Minimize ‘social’ costs of supplier relationships
– Provide suppliers with real-time ad hoc inquiry access
– Reduce number of unnecessary contact events
– Enable shift to value-add/strategic activities within Procurement
department
 Reduce customer ‘friction’ for suppliers
– Minimize doing-business costs for suppliers
– Collaboration platform ensures efficient relationship
– Everybody gets a scorecard!
10
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Manage the Unexpected
Prepare-for & Manage Supply Chain Disruptions
 Improve ability to deal with Supply Chain disruptions
– Enable effective contingency planning
– Speed-up reaction time to unexpected events
– Modeling of extended (N-tier) supply chain
 Provide better risk foresight
– Synthesize risk information across organization
– Eliminate redundant risk & compliance checks
– Pool tribal data from all available sources for better insight
 Individual knowledge, tracking xls, email
11
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Plan for Business Growth
Foundation for Strategic Planning
 Leverage supply base knowledge for effective strategic planning
– Validate growth plans
– Assess new market opportunities
– Inform acquisition strategies
12
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 Supplier Management – It’s Different!
Agenda
 Business Update - How Are We Doing?
 Product Updates - What Have We Done?
 Roadmap - Where Are We Going?
 Customers - What Are They Doing?
13
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Licensing - TTM Revenue
Strong rebound in
Q3 performance
(cf. Q3FY13)
Over 140 licensed
customers
More than 60 deals
generated $100k+
license revenue
14
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Licensing - Product Split
Sales by Quarter
SLM sales continue
to outpace SDH
~ 2:1
Risk/Compliance
more critical than
Data Quality
15
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FY14 - Top Deals
Rank
1
Customer Name
7-ELEVEN
OneVoice Industry
Retail
2
KIER LIMITED
Engineering & Construction
3
WORLD FUEL SERVICES
CORPORATION
Oil & Gas
4
5
LOGITECH INC
CITY OF CHICAGO
High Technology
Public Sector
6
AMWAY (CHINA) COMPANY LIMITED
Life Sciences
SLM & SDH
7
OTSUKA AMERICA PHARMACEUTICAL
Life Sciences
INC
SLM & SDH
8
CHENIERE ENERGY, INC.
Oil & Gas
SLM & SDH
9
THE KROGER CO.
Retail
SLM & SDH
10
BIOGEN IDEC
Life Sciences
11
ORIGIN ENERGY SERVICES LIMITED
Professional Services
12
MIDEA GROUP CO.,LTD
Industrial Manufacturing
16
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Apps
SLM & SDH
SLM & SDH
SDH
SLM
SLM
SLM
SLM & SDH
SLM
SH & SLM – Customer Base
17
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Analysts and Press
 OpenWorld & Value Chain Summit
– SLM/SDH Update
 Highest attended Procurement track sessions at both events
– Positive coverage from SpendMatters:
“At Oracle OpenWorld this week, one of the most popular procurement sessions I went to was a
breakout session on Oracle’s Supplier Lifecycle Management (SLM) and Oracle Supplier Hub
products, with over 100 attendees. Based on all of our discussions with customers and others at
OpenWorld, there is very significant demand for these products at the moment.
The addition of these two products… provides differentiation for E-Business Suite in comparison
to Ariba.”
[ http://spendmatters.com/2013/09/26/product-roadmap-update-oracle-e-business-suite-supplier-lifecycle-management-oracle-supplier-hub/ ]
 Excellent Gartner case study of Cummins SDH/SLM project has been
published
– Oracle has acquired distribution rights (see Marketing ppt)
18
Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
Confidential – Oracle Highly Restricted
 Supplier Management – It’s Different!
Agenda
 Business Update - How Are We Doing?
 Product Updates - What Have We Done?
 Roadmap - Where Are We Going?
 Customers - What Are They Doing?
19
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Product Development Update
 Shipped: 12.1.3+
– Mandatory internal requirements
– Updated Approval Management; support for parallel approvals, action-required notifications
– Enhanced supplier registration flow; guided navigation, contact-address association
– Reactivation of rejected supplier requests
– Unified Supplier Change Business Event
 Close to Release: 12.1.3+/12.2.4
– Boilerplate updates
– Streamlined supplier merge process
– Enhanced pre-Qualification templates / conditional questions in RFx templates
– Update Evaluation reponse
20
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Consolidated
SLM User
Interface:
Planned Home
page for Supplier
Admins
21
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Planned:
Assessment
Creation
22
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Planned:
Assessment
Setup Pages
23
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Evaluations
Evaluations
Planned:
Supplier SLM
“Home” page
24
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Evaluations
Planned:
Home page for
evaluators
incorporated
into
iProcurement
25
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Supplier Hub
Unified Supplier Profile Business Event
 Problem
– Several business events for different attributes
 Some attributes raise AP event, and some raise TCA event
 In some cases, both AP and TCA events are raised
 Inconsistent behavior
 Users have to subscribe to several events
– No event raised for some attributes
 Banking Information, Tax Details, Business Classification, Products &
Services, etc.
26
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Supplier Hub
Unified Supplier Profile Business Event
 Solution
– Introduces a new unified Supplier Profile Business Event
 Name: oracle.apps.pos.supplier.profile
 Whenever a supplier or any of its entities (address, site, contact, etc.) is
created or updated, this event will be raised
– The event parameters will contain the details on which supplier and which
entity raises the event
27
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Supplier Hub
Unified Supplier Profile Business Event
Entity Name
SUPPLIER
-
-
 Event Parameters
ADDRESS
party_site_id
hz_party_sites
SUPPLIER_SITE
vendor_site_id
ap_supplier_sites_all
– VENDOR_ID
CONTACT
party_id
hz_parties
BUSINESS_CLASSIFICATION
classification_id
pos_bus_class_attr
– PARTY_ID
PRODUCTS_SERVICES
classification_id
pos_sup_products_services
TAX_DETAILS
vendor_site_id
ap_supplier_sites_all
– TRANSACTION_TYPE
TAX_REPORTING
vendor_site_id
ap_supplier_sites_all
BANKING_DETAIL
-
-
PAYMENT_DETAILS
ext_pmt_party_id
iby_pmt_instr_uses_all
– ENTITY_NAME
CONTACT_POINT
contact_point_id
hz_contact_points
EMAIL_DOMAIN
email_domain_id
hz_email_domains
– ENTITY_KEY
PARTY_RELATIONSHIP
relationship_id
hz_relationships
GENERAL_CLASSIFICATION
code_assignment_id
hz_code_assignments
IMPORT
batch_id
pos_imp_batch_summary
MERGE_SUPPLIER
batch_id
hz_merge_batch
MERGE_SITE
vendor_site_id
ap_supplier_sites_all
(CREATE/UPDATE/DELETE)
28
Entity’s Base Table
Entity Key
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Supplier Hub
Unified Supplier Profile Business Event
 Other flows that also raise this event:
– Supplier Import
– Supplier Merge
 Exception
– For UDA, this new event will not be raised, the following events will be
raised by the UDA Framework instead (existing behavior):
 oracle.apps.pos.sdh.ext.preAttributeChange
 oracle.apps.pos.sdh.ext.postAttributeChange
29
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
 Supplier Management – It’s Different!
Agenda
 Business Update - How Are We Doing?
 Product Updates - What Have We Done?
 Roadmap - Where Are We Going?
 Customers - What Are They Doing?
30
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Oracle Applications: Current Release and Roadmap
Oracle E-Business Suite: Supplier Lifecycle Management & Hub
New Features
Supplier Management
What’s Next
0-12 month planning cycle
Supplier Management
Future Directions
Post 12 month planning cycle
Supplier Management
• Enhanced Qualification Approval Routing
- Support for parallel approvals, approval
groups and FYI reviewers
• Dynamic Qualification Template Criteria
- Based on supplier profile pre-qualification
questionnaire is automatically updated
• Automated RFI process
• Mandatory Internal Requirement
• Consolidated SLM user interface
• Compliance Documentation Tracking
• Contact Address Association
• Enhanced Search for Supplier Registrations
• Historical tracking of Supplier Profile
• Keyword Search
• Approval History on Supplier Profile
• Extensible Supplier Contact Directory
• Control default user creation
• Provide Rejection Reason LOV
• Site Tagging for D&B Extract
• Reinstate a rejected supplier
• IBAN Support
• Expose Cross Reference Data in Batch Mgmt
• Streamlined Prospective Supplier Registration
• Streamlined Supplier Merge UX
• VAT Compliance for iSP Invoicing
• View Prospective Supplier Registration Status
• Unified Profile Change Business Event
• Dynamic Invitation Lists
• Support Approval Management for RFI Internal
Evaluation
• Update Evaluation after submission
- Evaluation can be updated after
submission and before the RFI is
completed
Copyright © 2013, Oracle and/or it’s affiliates. All rights reserved.
Safe Harbor: The preceding is intended to outline our general product direction. It is intended for information purposes onl y, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be
relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Moving Forward - Candidate Features
 Supplier Lifecycle Management
–
Improved tools for managing & tracking document attachments
–
Automated RFI Evaluation process
–
Dynamic invitation lists
–
Event-based RFx triggers (automated audit, performance tracking etc.)
–
Smart classifications
–
Consolidated Supplier Profile Change History View
Virtual CAB Meeting
-oTargeted for (late) June
-oCustomers & Partners
 Supplier Data Hub
32
–
Support UDA for supplier contact, New Contact Tab like Org and Person- a separate Tab
–
Search for Extended Supplier Contracts and Contact Attribute
–
Cross system reference- expose source systems in the UI- for Supplier Site Add AP_SUPPLIER_SITES to HZ_ORIG_SYS_REFS
–
Simplified "Enable As Supplier" option (no DQM) for customers without SDH
–
Supplier site flagging for the D&B extract process
–
Visualize Relationship viewer
–
Real Time Address Validation
–
Hierarchy Management
–
D&B purchase Attributes to be viewed after purchase
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
 Supplier Management – It’s Different!
Agenda
 Business Update - How Are We Doing?
 Product Updates - What Have We Done?
 Roadmap - Where Are We Going?
 Customers - What Are They Doing?
33
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Customer Status
 Live
 Planning Deployment
–
Ameren SLM
–
Ahold
–
Huawei SDH+SLM
–
NHS (UK)
–
Cummins SDH+SLM
–
Cochlear
–
TDIC SLM
–
Colruyt SDH+SLM
–
City of Nashville / City of Chicago SLM
–
NBN Co. SDH
–
TJX SLM
 Implementing
34
–
Nucor SDH
–
State Street Bank SDH+SLM: Using D&B enrichment
–
Black & Veatch SLM+SDH
–
Jacobs Engineering SDH?
–
Oracle GSI SLM: Multi-country rollout
–
Sandia National Labs SLM
Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
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About Ameren…
■
■
■
■
■
■
■
■
■
■
Electric Customers
Gas Customers
Service Area
Generation
Electric System Miles
Gas System Miles
Total Assets
Total Revenues
Employees
Fully Regulated
2.4 Million
~1 Million
64,000 Sq Mi
10,300 MW
85,400
21,000
$22 Billion
$6.6 Billion
~8,500
Presenter Introduction:
Chris Nelms leads the operations team charged with the
ongoing strategic implementation of processes & systemic
changes around the source-to-settle program (S2S) which
include further enablement of electronic supply chain
collaboration. A licensed PMP, he holds an MBA and two
Bachelor of Science Degrees.
Historical Supplier Situation…
Supplier Insurance Maintenance
■ 2009 Corporate Project Oversight Committee (CPOC) formed
■ Insurance requirements were increased in rigor during this approximate
time frame
■ Browz (www.browz.com) was implemented to handle insurance
certifications for all services suppliers with =/> $25K annual volume
■ All other services suppliers are handled manually in MS Access that
containing the summary abstraction of the insurance in force for each
supplier.
■ Access DB allowed for single user only
■ Roughly 5000 services suppliers maintained in Access
■ Re-certifications tend to be received at CY mid year and year end
■ Always a backlog of data entry on insurance. Always.
New Supplier Addition Process…
■
Any Requisitioner in any Business Line can request any supplier
■
No real supplier vetting process in place
■
▪
Buyers rationalization – Easier to setup than to research
▪
In most cases the new supplier was just added, no questions asked
If a supplier insists on a credit application being completed:
▪
Ameren has no credit department per se
▪
Personal involvement
▪
Hard push back on every request, insisting that due diligence in finding an existing,
registered supplier be engaged
▪
If after due diligence we were compelled to add the supplier, we provide a standard
response including trade references and other descriptive information about the company
■ Nothing really discouraging the addition new suppliers based on request
alone
■ New suppliers crept in incrementally over time
Supplier Maintenance Costs…
This reference from the AMR shocked us:
“…companies are spending up to $1,000 per supplier
annually…however, when information, enabled by
technology, becomes visible across the organization, costs
per supplier quickly dwindle to below $150 per supplier.”
- AMR Research, June 2009
■ We didn’t know if this high end cost applied to us
■ We did know we were not considering the cost of supplier maintenance as
such
■ We did know there were efficiencies Oracle AP and Purchasing by
themselves were not addressing
Functionality Areas…
Insurance Certification Management
■
Allows multiple users into the DB simultaneously
■
Effectively reduces the cycle throughput of maintenance and update by at least half
■
Justification for entire SLM module was covered by productivity improvements on
this single point
■
In conjunction with extensive supplier search and grouping capability, improves
supplier selection and grouping for sending mass actionable eMail notifications
Insurance Certification Lookup/Reference
■
Buyers and Sourcing people no longer rely on worksheet index to determine if valid
insurance is in force
■
They review directly in Oracle with an image of the certificate available
Functionality Areas…
Functional Certification Management
■ In addition to Insurance which is handled separately, SLM handles these
certificate types as well for Ameren:


Abatement (general) certified

Asbestos certified

Health / Environmental certified

Training certified

ASME certified
The certificate area is wide open to accommodate a wide variety of
certification management needs and can be augmented later as business
needs change
Functionality Areas…
CyberSecurity Certificate Retention
■ IT developed an elaborate (50+) question CyberSecurity Questionnaire
■ Use applicable for some IT suppliers only
■ Approval of CyberSecurity aspect separate from Purchasing/Sourcing
approval
■ SLM will contain the questionnaire as a stand alone attachment only on CS
approved suppliers
Functionality Areas…
■
Qualification Management (Supplier Diversity)
▪
SLM engages the Sourcing RFI process when users send requests for update
out to suppliers
▪
Registered suppliers can then update their information directly on SLM
▪
Diversity takes these qualifications in via approval
▪
A third party is used to validate supplier qualifications twice per year
Q&A
43
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
The preceding 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 relied upon in making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
44
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
45
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
46
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.