Transcript Creating Strong Supplier Relationships with Oracle
Creating Strong Supplier Relationships with Oracle iSupplier Portal (Release 12)
By Harshavardhan Limaye
© IT Convergence 2008
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Executive Summary
Management always seeks a competitive edge
Streamlining transactions with suppliers gives you an edge
How to streamline relations with supplier
Build a robust platform web portal solution
Transform tactical purchasing activities into a strategic supply chain management solution © IT Convergence 2008
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Executive Summary
This presentation describes the key business aspects of an Oracle iSupplier Portal implementation
Buyer’s perspective
Supplier’s perspective
Oracle functional experts will also learn about the key steps needed to enable
Major business flows as viewed on iSupplier Portal for:
Purchase Orders (PO) Acknowledgement
Advance Ship Notices (ASN)
Invoices
Each of the business flow is explained using screens from Oracle E-Business Suite Release 12 © IT Convergence 2008
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Why Do You Need Supplier Collaboration?
Expand organization boundaries
Traditional ERP modules provide tremendous benefits
However … they weren’t designed to be used by trading partners
Share master data and enable critical transactions with suppliers
Buying organization controls which data/transactions are shared
Eliminate manual effort and communications lag
Effective web based tool for Procurement managers © IT Convergence 2008
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Why Do You Need Supplier Collaboration?
View and Acknowledge Purchase Orders over the web portal 24x7
Manage Change Orders and split shipments
Buyer notifications
Submit Advance Ship Notices and Advance Shipment and Billing Notices
Submit Invoices and Credit memos to the Accounts Payables of the buying organization © IT Convergence 2008
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Why Do You Need Supplier Collaboration?
Integrate with Procurement Purchasing applications contracts like which Oracle Quality complement and Oracle
Supplier Profile and User Management
Support processes of Vendor Management Inventory (VMI) and consigned inventory © IT Convergence 2008
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Readiness For iSupplier Portal (Buying Organization)
Business elements that can determine success of a buying organization’s iSupplier Portal implementation are:
Supply chain strategy
Investment in technology and hardware
Security considerations
Identification of key suppliers for a phased implementation approach
Enabling transactions for complex inventory management processes © IT Convergence 2008
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Readiness For iSupplier Portal (Supplier Organization)
Business elements that can determine success of a supplier’s Organization using iSupplier Portal are:
Understanding process change and impact
System performance considerations
User training requirements
Sustaining operations requirements © IT Convergence 2008
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Purchase Order Acknowledgement…
This business flow is initiated when the buyer provides a value from the drop down list for ‘Acceptance Required’ under the Terms and Conditions window while creating the Purchase Order.
The various choices available for the buyer are:
None
Document
Document or Shipment
Signature (only applicable for Oracle Procurement Contracts) © IT Convergence 2008
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Purchase Order Acknowledgement…
Exhibit 1: Supplier user is required to acknowledge the entire PO from iSupplier Portal © IT Convergence 2008
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Purchase Order Acknowledgement…
Exhibit 2: The status of the purchase order is Acknowledgement.
’ ‘Requires
The supplier is required to acknowledge and then accept the order from the Portal © IT Convergence 2008
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Purchase Order Acknowledgement
Exhibit 3: Notification to the buyer with the supplier’s response © IT Convergence 2008
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Purchase Order Status…
An explanation of the various Purchase Order statuses on iSupplier Portal © IT Convergence 2008
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Purchase Order Status…
If a Buyer Uses PO Headers Summary > Tools > Control, the statuses which the buyer can assign to a purchase order are: © IT Convergence 2008
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Purchase Order Status
If a Buyer Uses PO Headers Summary > Tools > Control, the statuses which the buyer can assign to a purchase order are: © IT Convergence 2008
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Create or Upload ASN…
This business flow is initiated when a supplier notifies the buying organization, via the Portal, that a shipment is ready
The portal provides the ability to include shipments from multiple PO’s into a single ASN © IT Convergence 2008
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Create or Upload ASN…
Exhibit 4: How to upload the ASN information
Predefined templates © IT Convergence 2008
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Create or Upload ASN…
The downloaded file (.txt) can be opened and edited in Excel
This feature offers tremendous value to suppliers who send this shipping information to buyers on a regular basis
helps to integrate supplier side processes via an Excel sheet upload the status of ASN appears as Portal “pending” when viewed from the iSupplier © IT Convergence 2008
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Create or Upload ASN…
Exhibit 7: Notification to the buyer informs about the ASN © IT Convergence 2008
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Create or Upload ASN
The receiving Inventory organization submits a concurrent program in Oracle (Receiving Transaction Processor) to import this ASN into Purchasing.
Exhibit 8: Note that the Processing status code is blank © IT Convergence 2008
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Create Online Invoices…
iSupplier Portal supports creation of online Invoices for the buying organization
These can be imported into Oracle Accounts Payable.
iSupplier Portal allows creation of standard Invoices (PO invoices) and credit memos (Invoices without a PO).
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Create Online Invoices…
Exhibit 10: Confirmation message for the supplier user after Invoice submission © IT Convergence 2008
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Create Online Invoices…
The status of submitted Invoices can be reviewed from the iSupplier Portal from Finance > View Invoices
Exhibit 11: Status of Invoice in the approval process.
After the necessary approvals, the Invoice status changes to Approved © IT Convergence 2008
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Create Online Invoices
Exhibit 12: Payment status of an invoice This functionality of iSupplier Portal is extremely useful as:
Facilitates effective communication between the supplier and the Accounts Payables of the buying organization Dramatically reduce number of queries from suppliers regarding Invoices © IT Convergence 2008
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Conclusion
Why is Implementing Oracle iSupplier Portal is important?
Milestone in the process of moving towards world class supply chain management
The illustrations and explanations discussed in this white paper are aimed at:
Supply chain management professions and Oracle E-Business Suite specialists to provide a broad overview of how to successfully rollout Oracle iSupplier Portal
Buyers and commodity managers, those who are typically the first point of contact for all supplier inquiries
iSupplier Portal integration with other Oracle modules such as Purchasing and Accounts Payables © IT Convergence 2008
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