Transcript R12 Procurement <Insert Picture Here>

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R12 Procurement
Agenda
• What is new in R12 Purchasing and iProcurement
• Intro to Sourcing, Procurement Contracts, iSupplier
Portal
• Q&A
iProcurement R12 enhancements
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Enhanced catalog authoring
Difference summary for catalog changes
Unified catalog
Approval, revision control and archive for catalog data
Content security – content zones
Advanced approval support - OAM
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Position hierarchy based approvals
Parallel approvals
Support for FYI notifications
Graphical display of approval chain
• Enhanced requester driven change order management
• Requester directed sourcing
• Multiple search result layouts – updated paragraph or grid display
Procurement R12 enhancements
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Professional Buyers Work Center
Procurement for Complex Services
Multi Org Access Control (MOAC)
E Business Tax
Document Publishing Enhancements
Communicate document attachments to suppliers
OSN – rapid supplier enablement
Maintain sourcing rules / ASL form agreement items
Support for contractor purchasing users
Compliance to packaging conditions
Auto approval tolerances for change orders
Model complex pricing for blanket line items
Advanced approval support for requisitions
New user interface for purchasing setups
Enhanced Catalog Agreement Management
Description
• Catalog Authoring Capability for Buyers, Suppliers and
Catalog Administrators
• Online Authoring and File Upload from Buyer Work Center, iSupplier and
iProcurement Catalog Administration Responsibilities
• Industry standard formats for upload mode including OAG XML, cXML, CIF
and text files, with improved error review process
• Difference Summary for Catalog Changes
• Display changes between the revised vision and the last approved version.
Visual indication for added, changed and delete lines
• Approval, Revision Control and Archive
• Buyer can review difference summary during approval
• Buyer’s acceptance with line level disposition for all changes or only for
those that exceed price tolerance.
• Purchasing Approval Hierarchy, Revision Control and Archival capabilities
are added to catalog content
• Real-time catalog update
• Extractor will be obsoleted.
Enhanced Catalog Agreement Management
Overview
Sourcing
Sourcing
Professional
PBWC
PO
Buyer
Award
iP Admin
Catalog
Admin
Bulkload /
Online
author
Buyer
Catalog
iP
External
Supplier Sites
Approve
iSP
Supplier
Requester
Definitions:
Buyer - Purchasing user
Supplier - Supplies goods or services to the buying organization
Catalog Administrator - Performs catalog related activities within the buying organization
Enhanced Catalog Agreement Management
Benefits
• Improve Catalog Management
• Reduce the buying organization overhead in catalog
management
• Buyers can delegate catalog management to suppliers and
catalog administrators
• Online catalog authoring for quicker catalog update
• Difference Summary to highlight the changes
• Version control of catalog data
• Streamline catalog creation and management
• Catalog perpetually up-to-date and based on realtime data
Content Security Enhancements
Description
• Control What Catalog Content To Show
• Catalog Administrators can partition local catalog content into
Local Content Zones based on items’ Supplier, Supplier Site, Item
Category and Browsing Category information.
• Support for inclusion and exclusion rules.
• Ability to include Inventory items.
• Once defined, Content Zones may be made accessible to users of
specific Responsibilities or Operating Units.
• Content Zones may be assigned to multiple Stores.
• Stores may contain multiple Content Zones.
Content Security Enhancements
Partition Content
11.5.10
Release 12
Catai
Cata
Catalog
Smart Forms
Content Zone
Realms
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Release 12 Content Zones Replace 11.5.10 Catalogs.
All Content Zones Support Operating Unit or Responsibility
Security.
iProcurement – Content Security
What’s New?
Example: Local Content Inclusion Rule
Supplier
Supplier X
Supplier Y
Category
…
Category C
Category B
....
Category A
• The rules:
• Include items from
supplier X
• Include items from
category C
Correspond to the red
block
of available content.
iProcurement – Content Security
What’s New?
Example: Local Content Exclusion and Inclusion Rules
Supplier
• Exclude Supplier X
• Include Category A
• Include Category C
Supplier X
Results in red blocks of
available content.
....
Category
…
Category C
Category B
• Exclusion is useful when
we need to exclude a single
Supplier (e.g., X) from many
others (e.g., A-Z).
Supplier Y
Category A
• The rules:
iProcurement – Content Security
What’s New?
Let’s Look at how category rules are defined:
Include specific categories
Include specific suppliers
Make content accessible to
specific user groups
iProcurement – Content Security
What’s New?
Example: Include Specific Categories (local content):
Create Category Specific
Stores (e.g., Legal Forms
and Services) by creating
one or more category
specific Content Zones
Include content for some
users (e.g., Buyers) that
should not be available to
the general public (e.g.,
Novice Requesters).
iProcurement – Content Security
What’s New?
Let’s Look at how supplier rules are defined:
Include specific categories
Include specific
suppliers
Make content accessible to
specific user groups
iProcurement – Content Security
What’s New?
Example: Include Specific Suppliers (local content):
Include items on GBPA,
BPA, Quotation, Requisition
Templates from specific
suppliers.
Segregate Inventory and
Externally Sourced content
into separate Stores by
creating multiple Content
Zones with different
inclusion settings.
iProcurement – Content Security
What’s New?
• Once content rules have been completed, the Content Zone
may be assigned to all, or some, users:
Include specific categories
Include specific suppliers
Make content accessible
to specific user groups
iProcurement – Content Security
What’s New?
Assign Content Zone to specific
Responsibilities, Operating Units,
or all Users.
Content Security Enhancements
Benefits
• Increase Security
• Inclusion and Exclusion rules provide more control over
content.
• Responsibility and Operating Unit assignments enable
specific user sets to access specific catalog content.
• Improve Usability
• Single feature-set replaces and enhances functionalities
previously provided by Realms, System Profiles, Catalogs,
and Extractor.
Requester Driven Change Order Mgmt
• Change Order Approval and Routing Based on
Tolerances
• Requester’s and Supplier’s changes are routed to the
requester’s approval hierarchy
• PO changes are routed to to buyer for approval
• Bypass approval for changes within tolerances
Requester Driven Change Order Mgmt
Benefits
• Enhanced Requester Driven Change Order
Management
• Streamlines the Change Order Process
• Tolerances to indicate when a requester initiated change should
be routed to the requester hierarchy for approval
• Tolerances and options to determine the need for buyer’s
approval
• Auto-approval for minor changes
• Flexible Tolerances
• Simple user interface for managing tolerances instead of using
workflow attributes
• Minimum/Maximum increment by amount or percentage
• Multiple attributes: document amount, unit price, line amount,
need by date, promise date
Usability Enhancements
• Search & Browse within Stores
• Paragraph and Grid Layouts
• Grid Format – allows requesters to differentiate between
similar items effectively.
• Item Details and Comparison Page Layout Enhanced
• Create and maintain multiple Favorites Lists.
• List of Values (LOVs) capability are enhanced.
• Provides users with tools to find the values they are looking
for easily and effectively
• Enhancements include:
• Sorting Capability
• Expanded Search Criteria
Usability Enhancements
Paragraph Search Skin
2 column layout ensures
sufficient spacing with
item image
Images may be hidden.
When they are hidden,
three columns of
descriptors appear
Price, UOM and action buttons
appear on last rows of each
item description
Usability Enhancements
Paragraph Search Skin
3 columns format
allows more
information to be
displayed
Usability Enhancements
Search Skins – Grid Format
The grid format allows users to differentiate between
similar items more effectively.
Usability Enhancements
• Advanced Approvals Enhancements
• Parallel Approvals
• Notifications are sent out to multiple people
simultaneously to speed up the approval process
• Support for Viewers
• FYI notification, approval is not needed
• Position Hierarchy Support
• Graphical Approval Path UI Display
Advanced Approvals Enhancements
Example – Approval List
Takes you to add
approver/viewer,
delete approvers
Parallel Approval
• A requisition for furniture totaling $4,500 is created. The req will need to be
approved by the position hierarchy chain and the Facilities Management
Group.
Advanced Approvals Enhancements
Example – Add Viewers
Option to add Viewers to the
Approval List
Advanced Approvals Enhancements
Example – Add Viewers
Viewer
Usability Enhancements
Benefits
• Increase Flexibility
• Users can specify their search results layout preference: Paragraph or
Grid
• Users can maintain and manage multiple favorites lists
• Users have more options when searching using List of Values (LOVs)
• Improve Ease of Use
• Updated user interface provides requesters with more intuitive and userfriendly layout
• Allows users to identify desired information quickly
Usability Enhancements
Benefits
• Speed up Approvals Process While Still Maintaining
Oversight
• Requisition can be routed to multiple approvers simultaneously
• Increase Flexibility for Setting up Approval Routes
• Voting Regime allows enterprises the flexibility in defining approval rules
• Reduce Setup Efforts
• Approval rules can be defined once and be leveraged across multiple
products, requiring less maintenance work
• Provide Intuitive Graphical View of Approval List
• Graphical View for Approval List provides users with quick view of the
approval list and status
Oracle Purchasing – Delta Summary
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Professional Buyer’s Work Center
Enhanced Catalog Access
Document Styles
Multi-Org Access Control
Document Publishing Enhancements
Communicate Document Attachments to Suppliers
Maintain Sourcing Rules/ASLs for Agreement Items
Complex Services Procurement
Support for Contract Purchasing Users
Supplier Packaging Constraints
E-Business Tax
Model Complex Pricing for Blanket Line Items
Mass Re-pricing of Purchasing Documents
Auto-Approval Tolerances for Change Orders
Professional Buyer’s Work Center
Feature Description
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Requisitions
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Orders
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Manage Procurement Contract Deliverables
Negotiations
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Create and Manage Blanket and Contract Purchase Agreements
Deliverables
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Create and Manage Purchase Orders
Agreements
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View and Process Requisitions into Orders or Sourcing Events
Access Oracle Sourcing
Suppliers
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Create and Manage Supply Base
Professional Buyer’s Work Center
Customization and Extensibility Options
• Customers can create custom views using personalization
feature in all inquiry pages.
Professional Buyer’s Work Center
Benefits
• Increases Productivity
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Central Place for Buyers to Perform Day-to-Day Tasks
Optimized for Shared Service Centers
Streamlined Interface Increases Efficiency
Pre-Seeded or Custom Views for quicker access to information
and prioritize tasks
• Designed for Procurement Professionals, the PBWC
Combines Ease-of-Use with Power Capabilities to Track,
Manage and Control all Strategic and Tactical Activities.
Enhanced Catalog Access
Feature Description
• iProcurement like Search Capabilities for Purchasing Users
• Add Catalog Items to Purchase Orders and Agreements
• Replace non-catalog requests with lines from the catalog
Document Styles
Feature Description
Assign Display Names
to Document Types
Enable/Disable
Features
Document Styles
Implementation Considerations
• Document Styles is a new concept in Release 12. It is a configuration tool that reduces the
complexity of the application by allowing procurement managers to control the available
functionality and the display of PO documents.
• A document style is mandatory on a PO document. The style setting controls the document
display on the HTML UI for document creation, update, and viewing of individual document, as
well as the allowable values during the document creation and update.
• A style can only be applied at the start of document creation. It cannot be replaced with
another style or removed from a document.
• Standard Style: This will be the only seeded style and will be used for upgrade of the documents created
prior to R12.
• Non-standard style:
• Any new styles created in R12 are considered non-standard.
• Purchasing documents with these styles can only be created and
processed through the Work Center.
Multi-Org Access Control
Feature Description
OLD PROCESS
Application
Responsibility A
Application
Responsibility B
Application
Responsibility C
Operating unit X
Operating unit Y
Operating unit Z
NEW PROCESS
Application
Responsibility A
Operating unit X
Operating unit Y
Operating unit Z
Multi-Org Access Control
Implementation Considerations
• New Profile Options
Entire Purchasing functionality requires the Multi Org Access
Control (MOAC) setups to be configured correctly. The following
new profile options need to be set for MOAC
• MO: Security Profile - the group of operating units that
can be accessed in HTML Orders
• MO: Default Operating Unit - the default OU that should
be used when creating new POs.
• If customer is not leveraging MOAC, they can continue to use R11i
profile option ‘MO: Operating Unit’.
• Select Human resources responsibility to create the security profile
(Security -> Global Security Profile (Function PERWSSCP-GLOBAL)
Document Printing Enhancements
Feature Description
XSL-FO
Purchasing
Layout
XML Publisher
PO Output
New in
Release 12.0
Purchasing
XML
11.5.10
New in
Release 12.0
XSL-FO
Purchasing
Layout
XML Publisher
PO Output
in Multiple Formats
Purchasing
XML
Release 12
Communicate Document Attachments
to Suppliers
Attachment Type
Notes to Supplier
Long/Short Text
Files (e.g. MS Word, Drawings)
URLs
11i10 and
Before
r12
Maintain Sourcing Rules/ASLs for
Agreement Items
• New Concurrent Program Introduced
• Designate agreement usage in Specific
Regions or Plants
• Extend rule effectivity after renewing
Blanket Agreements
• Maintain rules for all Operating Units
enabled to buy off an Agreement
Support for Contractor Purchasing
Users
Feature Description
• Allow Contingent Workers to Participate in Purchasing
Activities
• Raise and Approve Requisitions
• Create, Maintain, and Approve Purchase Orders
• Receive Goods and Services
• New Profile Option
HR: Expand Role of Contingent Worker
Profile Value
Description
Yes
Allow Contingent Workers to Create and Approve
Purchasing Documents
No
Do Not Allow Contingent Workers to Create and
Approve Purchasing Documents
Compliance to Packaging Constraints
1. Min-max creates
Replenishment Request
for 116 Eaches
New Process
Inventory
2. Apply Constraints
•
Order Modifier
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UOM Conversion
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Rounding
New Quantity = 10
New UOM=Cases of 12
Min-Max
REQIMPORT
Purchasing
PURCHASE ORDER
SUPPLIERS
3. PO placed for 10
cases of 12
4. PO complies to
Supplier packaging
constraints
E-Business Tax Integration
Feature Description
Prior to E-Business Tax
With E-Business Tax
• Basic tax setup – tax codes
and tax groups
• Comprehensive solution
addressing complex tax
requirements
• Fragmented tax solution
across E-Business Suite
modules
• Single point tax solution across
E-Business Suite
– Multiple tax engines
– Duplicate tax setup
– Fragmented data storage
– Duplicate 3rd party
integration
– Single interface: tax setup
and 3rd party integration
– Uniform services
– Single repository
Note: Please refer to the e Business Tax TOI for more information on this feature
Model Complex Pricing for Blanket
Line Items
Blanket
Pricing
Agreement
Transactions
Line Price
Pricing Engine
Price Break
Custom API
Requisitions
Price List
Leverage Oracle Advanced Pricing
to model Complex Pricing Scenarios
Formula
Modifiers
Orders
Benefits
Oracle
Advanced Pricing
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Bring Agreements with Complex Pricing Requirements Online
Accurate Pricing of Transactions without the need for Manual Overrides
Decrease Supplier over billing
Save Cost by ensuring all available discounts are applied
Mass Re-pricing of Purchasing
Documents
Feature Description
Orders
Blanket Purchase
Agreement
Advanced Pricing
Revise Pricing
Data
Price Lists, Modifiers
Custom Pricing API
New in
Release 12.0
Auto-Approval Tolerances for Change
Orders
Eliminates need
for Workflow
Customizations
Set tolerances by
document type
New tolerance
attributes introduced
Advanced Approvals Support for
Requisitions
Description
• Parallel Approvals
• Notifications are sent out to multiple people simultaneously
to speed up the approval process
• Position Hierarchy Support
Advanced Approvals Support for
Requisitions
Parallel Approvals
• In 11.5.10, approvers for a given requisition are
notified sequentially
• To satisfy regulatory requirements (e.g. SarbanesOxley Act), organizations may need to involve more
approvers
• With parallel approvals, several approvers can be
simultaneously notified for a given requisition, thus
speeding up the requisition approval process
• Parallel approvals can be setup within an approval
group or for individuals
Advanced Approvals Support for
Requisitions
Voting Method
• A Voting Method is a way of sequencing the
approvers within an approval group/chain of authority
• Types of voting methods
• Consensus
• All approvers must respond. Approvers will receive
notifications in parallel
• First Responder Wins
• Approvers will receive notifications in parallel, but only the
action of the first approver to respond will be recorded
Advanced Approvals Support for
Requisitions
Position Hierarchy Support
• In addition to the Employee/Supervisor Hierarchy
support, the integration with Oracle Approval
Management (AME) also supports Position Hierarchy
• Approval routing structures using positions and
position hierarchies remain stable, even if individual
employees leave their organization, or transfer within
it
Advanced Approvals Support
Example
• Business Rules:
• If requisition < $5,000, then requires approvals up to first
two positions up based on position hierarchy
― If the item’s category is [IT.EQUIPMENT] then require
approval from IT Approval Group
― IT Approval Group is in parallel to position hierarchy
approval chain
Advanced Approvals Support
Example – Approval List
Approval Group returned in
Approval List since Item Category
is [IT.EQUIPMENT]
Since req total is between 0 and 5000, the first 2
positions up (based on the Position Hierarchy
Rule) is generated
• A requisition for computers totaling $4,500 is created. The req will need to
be approved by the position hierarchy chain and the IT Approval Group.
Advanced Approvals Support
Example – Approval List
Takes you to add
approver/viewer,
delete approvers
Parallel Approval
• A requisition for computers totaling $4,500 is created. The req will need to
be approved by the position hierarchy chain and the IT Approval Group.
Advanced Approvals Support
Example – Add Viewers
Option to add Viewers to the
Approval List
Advanced Approvals Support
Example – Add Viewers
Viewer Icon
Advanced Approvals Support
Example – View Req Status
• The Approval Graphical View shows the following:
•Tom Gallant has approved the requisition
•The requisition is currently pending approvals from the IT Approval
Group and Maria Menudo
Sourcing At-a-Glance
Buying
Professional
Identify Suppliers
& Opportunities
Define Strategies
& Negotiations
LOB Stakeholder
Conduct OnLine Negotiations
Analyze &
Award
Approve &
Issue
Supply Base
“Strategic sourcing is emerging as the leading
strategy to control costs, capture innovation,
and maximize performance.”
Oracle Sourcing & Sourcing
Optimization
Source More
of Your Spend
Identify Suppliers
& Opportunities
Operations
Source for
Lowest Total Cost
Define Strategies
& Negotiations
Create Immediate &
Long-Term Savings
Conduct OnLine Negotiations
Contract Mgmt
Analyze &
Award
Purchasing
Approve &
Issue
Finance
Increase the Effectiveness & Efficiency of Strategic Sourcing
Efficient Online Negotiations
Slash Cycle Time by Eliminating Manual Processes
View responses and monitor
bidding activity in real-time
Drill into individual
sourcing events
View new incoming
supplier messages
and incomplete
tasks
Facilitated Online Bid Comparison
Make Faster Award Decisions
• Use Bid Data to Reduce
Manual Effort
- Knock-out criteria
enforcement
- Automatic bid scoring
- Side-by-side comparison
• Analyze Online for
Faster, Better Awards
- Enable selection of
suppliers, lots, or specific
lines through flexible
awards
- Enforce policy compliance
(e.g., multi-source rqmts,
MBWE suppliers)
• Use Award Summary &
Recommendation
- View award details
Automatic Scoring of Requirements
Quickly Identify the Best Qualified Suppliers
Requirement
s
Weigh
t
Are you ISO
certified?
25%
Number of
years in
business
35%
Number of
shipping
locations
40%
Value
(Score)
Yes (100)
No (0)
> 14 (100)
10-14 (75)
5-10 (50)
< 5 (0)
> 19 (100)
11-19 (50)
1-10 (25)
Quote
990
Respon
se
Score
No
0
15
35
35
40
• Automatically eliminate suppliers that score below minimum
Total Score Calculated by Oracle Sourcing
75
requirements
• Automatically exclude non-compliant suppliers from shortlists
Centralized Terms Library
Ensure Consistent Contract Standards
• Capture standard contract clauses, variables,
templates and deliverables
Central
Terms
Library
• Clearly define enforceable and automated
standard policy and procedure
• Specify document format with flexibility
to accommodate regional variations
• Provide comprehensive revision control via
notification-based workflow with approval rules
Support Compliance and Oversight Requirements
Expert-Based Authoring
Produce Compliant Contracts
Contract
• Configurable rules
drive terms selection
for complex contracts
Industry
Segment?
Template
Government
• Clauses default
based on product,
supplier, contract
value, etc.
Commercial
.
.
.
Over $50k?
No
Yes
• Author high quality
contracts with
minimal legal
supervision
Draft
Responses Drive
Clause Selection
Add Clauses
• High Value
• Insurance
Contract
Automated MS Word Synchronization
Quickly and Accurately Integrate Offline Redline Edits into Contracts
• Streamline internal
collaboration and supplier
negotiation
by allowing key
stakeholders to be involved
in the contract review
process
Contract
Administrator
Synchronize
Download
• Improve contracting
efficiency while
reducing effort
Legal
Review
Legal
• Minimize errors and risk
Supplier
Acceptance
from manual updates
Supplier
Automatic Document Generation
Eliminate Manual Re-Keying
• Automatically
substitute
negotiated terms
in printed
document
• Easily tailor to
each business
unit’s standard
format – logos,
headers,
layout, etc.
• Generate
standard .pdf
business
document
Variable Substitution
Clause Usage Analysis
Search Contracts To Analyze Clause Usage & Modification
Quickly determine
number of incidents
Identify and view
contracts with nonstandard clauses
• Improved legal discovery on contracts across multiple organizations
• Better insight into effectiveness of current standard language usage
• Enhanced visibility into contract standards requiring revision
Contract Deliverable Tracking
Monitor Supplier Performance
Example
Deliverables
Define
Deliverable
• Based on
contract
T’s & C’s
• One-time and
recurring
• Internal or
external
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Generate monthly milestone progress reports
Provide a prototype within 3 months of contract signing
Perform site visit and inspection
Provide proof of compliance to industry standards
Send
Notification
• Notify
individuals or
groups
• Notify trading
partners
Manage
Deliverable
• Track progress
• Indicate failure
or completion
• Attach supporting
documents
• View status
change history
Escalate When
Necessary
• Define escalation
criteria
• Escalate to
supervisor
Manage Contract Deliverables
Track Contractual Responsibilities and Key Administrative Tasks
Track internal commitments
& contractual obligations
Clearly defined
ownership
Deliverable status
at a glance
• Alert Any Compliance Risk and Highlight Non-Compliance
• Review Compliance Status Before Authorizing Payments
• Track Approval History
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
Supplier Management User-Interface
Streamlined Supplier Profile Management
To Do List for requests
Create supplier
Search or drill down to supplier details