Transcript (PPT, Unknown) - Source to Settlement PeopleSoft User

Enterprise SRM
Procure to Pay Update
Tom Anthony
Sr. Director, Product Strategy
Legal
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 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.
2
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Thought of the Day
On Wednesday, at two minutes and three
seconds after 1:00 in the morning,
the time and date will be:
01:02:03 04/05/06
3
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Agenda Topics
•
•
•
•
Procurement in General
Enterprise SRM Update: 8.9, 9.0, and beyond
Fusion Overview: A Procurement Perspective
Activities between now and ‘08
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Business Challenges
Organizational Challenges
Increasing Savings Targets
• Insufficient policy influence
• Fragmented processes
• Staff consumed by routine
processing
• Same or greater % every year
• Resource constraints –
“save more with less”
• Inflation, currency fluctuation
Procurement
Organization
Compliance Concerns
External Pressures
• Low visibility
• Contract leakage
• Outsourcing
• Regulatory
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Goal: World Class Procurement
Drive 60% Higher Savings on Procurement
Investment
Performance
Indicator
Typical
Purchasing
Organization
World Class
Purchasing
Organization
Comparison Summary
FTE per $Billion
of Spend
104
54
48% Less Staff
Total Cost of
Procurement
(as % of Spend)
1.03%
0.72%
30% Lower Costs
Suppliers Per
$Billion of Spend
7,805
3,512
More Buying Power
Technology
Investment per
$Billion spend
$1.1 Million
$1.4 Million
Better Information
Shift investment in procurement to higher-value activities
Reduce staff by swapping labor for technology
Source: Hackett Group
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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Best Practices
Procurement
Best Practice
•Maximize Self-Service
•Enforce approval and tendering
policies
•Leverage Automated Sourcing Tools
•Control budgets via tolerance and
exception notifications
•Establish and monitor spend
objectives
•Utilize Procurement Cards
Benefit
•Focus on strategic activities
•Gain visibility and control over
spending
•Improve internal policy
compliance
•Maximize contract spend
•Leverage supplier base
•Improve productivity
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Best Practices
Payables
Best Practice
•Eliminate paper invoice (use
ERS, web-invoicing, XML/EDI)
•Enable supplier self-service
•Leverage auto-matching rules
•Enable duplicate invoice/vendor
setup checking
•Limit non-PO invoices
Benefit
•Improve internal policy
compliance
•Improve productivity
•Improve accuracy
•Take advantage of payment
discounts
•Reduce supplier inquiries,
increasing time analysts can
spend on more value-added
projects.
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Procurement Transformation
Strategic Value
High
Low
Strategic Procurement
Value Creation
Collaborative Procurement
Supply Optimization
All Categories, All Processes
Cost Procurement
Touchless Buying
Policy Enforcement
Contract Negotiation
Spend Management
Tactical Buying
Create Manual Orders
Answer Supplier Queries
Help Requesters
Manage Content
Low
Maturity
High
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
What Customers Are Achieving…
automated and streamlined procurement process
saved $120,000 per month with reduced payment times
reduced prices by 10-30%
buyers now focused on strategic activities
saved 20% of spend in Food and Beverage category
reduced inventory levels by 50%
saved $1.5 – $2M annually, positive ROI < 3 years
saved over $75M from contract consolidation
increased productivity led to multi-million dollar savings
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
PeopleSoft Enterprise SRM
The Integrated Suite That Dramatically Cuts
All Supply Management Costs
Demand
Collection
Reduce Spend on Goods and Services
Spend
Analysis
Category
Management
Online
Sourcing
Indirect
Goods
Orders
Streamline Procurement Processes
Services
Approval
Routing
Engineered
Goods
Touchless
Buying
Supplier
Portal
Logistics
Automated
Payment
Supplier
Network
Budget-Based
Procurement
Contract
Management
Direct
Materials
Supplier
Collaboration
Settlement
Supplier
Performance
Enforce Policy Compliance
Profile
Management
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
eProcurement 8.9:
Simplified Processing
Accelerate Self-service Adoption
• 3 step process
simplifies
requisitioning
• Line Level Approvals
• Mass approvals and
email-based
approvals
• Redesigned pages
provide more
information with
fewer clicks
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Services Procurement 8.9
Greater control and oversight
Capture More Spend,
More Efficiently
• Vendor-managed services
Extend Services Spend
Programs Across Globally
Improve Total Workforce
Management
• Skills matrix
• Global time and expense
reporting
• HCM Person ID
integration
• Deliverable-based expense
capture
• Multiple time-based work
order alerts
• Normalized terminology
with HCM
• Multi-resource work order
• Full rate sheet breakdown
structure, including expenses
• Integration to HCM
Talent Acquisition
Manager module
• Multi-project work order
• Improved notifications
13
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
PeopleSoft Enterprise SRM 8.9
The Contract Lifecycle Management Release
Exploit More Savings Opportunities
Central Clause Library
Source
and Award
Document Configurator
Contract
Amend,
Renew,
or Close-out
Collaborative Authoring
Online Negotiation
MS Word Integration
Convert Negotiated Savings
into Real Savings
Approval Workflow
Agreement Management
Version Control
Monitor
Performance
Execute
Increase Procurement Process Effectiveness
Contract Syndication
Now available for 8.8!
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
SRM 9.0 Planned Features
Extend Customer Investment
Contract Mgmt
Request for Contract
SLA Compliance
Contract and Library Upload /
Import
Misc. Customer Enhancements
Amount Only Requisitions
Shift and Assignment Support in
Services Procurement
Special Request, Favorites, and
Templates Enhancements
Greater Business Insight
Buyer Dashboard
Superior Ownership Experience
Archiving Documentation
Reopen Specific Closed
Requisitions and Purchase
Orders
XML upload for Sourcing event
creation
Supplier Contract Management 8.8
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Fusion Update
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Oracle’s Application Vision
• Applications driven by business processes
– From implicit to explicit processes
• Business Intelligence is not an afterthought
– Good BI needs to be in the DNA of applications
• Applications that can be configured and
integrated with ease
– Applications must increasingly fit in a heterogeneous
environment
• Applications that are cheaper to deploy and
operate
17
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Oracle’s Core Beliefs
• Industry Relevance is a must
– We have too know and manage industry processes in
minute detail
• Application customers want consolidation
• Standards always win
– At a business level (Rosettanet, HL7, SWIFT etc.)
– At a technology level (J2EE, WSI-*, XML etc.)
• Providing a full technology stack is an advantage
– Significantly reduces cost
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Fusion Overview
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development,
release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Recent Activities
Greatest Business Insight
Information You Can Trust
• Single data model for single
source of truth, but set for
heterogeneity
• Centralized data with additional
data hubs
• Embedded analytics
and management reporting
• Real-time operational analysis
and ability to take related actions
• Industry specific KPIs
• Open to third party data
Deep and Adaptive
Industry Processes
Information You Can Use
• Industry-based configuration
• Modularized services
• Broad API / web services support
• Enhanced interoperability through
standards-based, open platforms
• User experience personalization
• Standards-based extensibility
• Tailored business process flows
• BPEL Certification
Superior Ownership Experience
Information You Can Manage
• Automated, tailored installs
• Functional components for
individual upgradeability
• Minimal downtime upgrades
• Active system and business
monitoring
• Self-supporting, self-tuning
• In-place education
• Packaged integration…
from server technology,
middleware, to applications
Sample BI by Role
Key Questions
Sample Metrics
Procurement VP
Is enterprise spend
increasing/decreasing
?
% Spend Change vs
Sales Change; % NonPO Spend of total
spend; %
Contract/Non-Contract
Spend
Procurement Mgr
How much automation
is the procurement
dept achieving?
% of automated Pos
and sources; Average
Days to Approve REQ
and PO; %Reduction
of Cycle Time
Buyer / Commodity Mgr
What tasks need my
attention?
Overdue POs; Reqs to
be sourced; Contracts
Expiring
Supplier
How is my quality?
How is my on-time
performance? How is
my ship quantity
performance?
% Receipts Rejected;
% Late Shipments; %
Qty Received = Qty
Ordered
Role for BP/Product
SOA Example: Procure to Pay
Other
Apps
ALM
Oracle
SOA
Legacy
Purchasing
Requisition
1
PTP
Business
Process
Create
Requisition
1
Oracle
SOA
2
Supplier
Catalog
Punchout
Supplier
Websites
Employee
Directory
3rd Party
Tax
Legacy
Inventory
Get Approver
List
3
Availability
Check
4
Approve
Source
Availability
5
Check
5
Inventory
Management
6
Legacy PO/ALM
Calculate
Tax
Synch PO
Data
8
Create
PO
Dispatch
PO
7
Electronic
PO/ACK
Order
Management
Receive
ASN
9
Logistics
Create
Invoice
Invoice
10
Billing
Some Benefits to Enterprise Customers
Procurement
• XML Publisher (including eText)
• Reduced number of batch processes
• Improved Blanket Orders
• Contract Budget Checking
• Retainage
• Streamlined change requests
• Transparent punch out
• Payment terms negotiation
• Sourcing Line Grouping
Some Benefits to EBS Customers
Procurement
•
•
•
•
•
•
•
•
•
•
•
Graphical Hierarchies (Trees)
Shared reference data (Setid)
Streamlined Internal Orders
Landed Cost
Line Level Approvals
Encumbrance Accounting
Notes and Attachments
Improved Auto-sourcing Logic
Improved Sourcing Optimization
Sourcing Project Management
Word and Excel Integration
Everyone Will Get There
Why You Will be Successful…
• Best in class intellectual property from
PeopleSoft, Oracle, and JD Edwards
• Unparalleled level of investment,
including applications and server
technology divisions
• History of successful migration across
technologies
Automated Upgrades To Next
Releases And To Fusion
PeopleSoft Enterprise
JD Edwards EnterpriseOne
8.8
8.9
9
8.11
8.12
Oracle E-Business Suite
11i.10
12
Next
Release
Information Age Applications
Current
Release
Activities between now and ‘08
Breakout Sessions
• Ask “how do you”, “has anyone else”, …
• Take advantage of “lessons learned”
• Influence direction of Enterprise SRM
• Influence direction of Fusion
Customer Usage Surveys
• What is it?
– Online functional usage questions
• Why participate?
– Provides a source of guidance and input into
Fusion process
• Where do I find them?
– http://www.iouc.org/index.php?mo=st&op=ld&sid
=s1_005_fusion&stpg=57
Customer Usage Scripts
• What is it?
– Scripts that provide insight into the usage and customization
profile of your PeopleSoft system for Oracle’s analysis
• Why participate?
– Provides one source of guidance and input into Fusion process
• Where do I find them?
– http://www.peoplesoft.com/corp/en/support/user_groups/index.jsp
Login to Customer Connection
Click on Support
Click on User Group
Look under other resources on the right hand side and you will
find "SQR Script File and Instructions for Enterprise Customers”
• What have you found so far?
Purchasing Summary
• 57 purchasing customers in database
• Industry breakdown for those customers
–
–
–
–
–
–
–
–
–
–
–
–
Education and Research - 27
Financial Services - 6
Communications - 3
Public Sector - 7
Health Care - 4
Life Sciences - 1
Industrial Manufacturing - 2
High Technology - 2
Media and Entertainment - 1
Professional Services - 1
Consumer Products – 1
Blank - 1
Sample:
Purchasing Feature Usage Analysis
Feature
Correlated
ObjectName
Customer
Usage %
Key Volume Fact
Purchase Order Price
Adjustments
PO_VAL_ADJ where
number of rows >
number of
PO_LINE_SHIP rows
22 (38%)
Requisitions that
average at least 3
schedules per line
REQ_LINE_SHIP /
REQ_LINE > 2
0
Customers typically
have one requisition
schedule per line
Purchase orders that
average at least 2
distributions per
schedule
PO_LN_DISTRIB /
PO_LINE_SHIP > 2
0
Customers typically
have one PO
distribution per
schedule
PO Approval
Workflow
PO_APPROVAL_ WL
19 out of 57
(33%)
Between 10,000 and
165,000
Requisition Approval
Workflow
REQ_APPROVAL_WL
15 (26%)
Between 450 and
550,000
Q&A