R12 Procurement

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R12 Procurement
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Agenda

• What is new in R12 Purchasing and iProcurement
• Intro to Sourcing, Procurement Contracts,
  iSupplier Portal
• QA

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iProcurement R12 enhancements

• 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
• 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

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Procurement R12 enhancements

• 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

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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
• Buyers 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.

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Enhanced Catalog Agreement Management Overview
Catalog
Definitions Buyer - Purchasing user Supplier -
Supplies goods or services to the buying
organization Catalog Administrator - Performs
catalog related activities within the buying
organization
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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
  real-time data

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Content Security EnhancementsDescription

• 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.

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Content Security EnhancementsPartition Content
11.5.10
Release 12

• Release 12 Content Zones Replace 11.5.10
  Catalogs.
• All Content Zones Support Operating Unit or
  Responsibility Security.

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iProcurement Content SecurityWhats New?

• Example Local Content Inclusion Rule

Supplier

• The rules
• Include items from supplier X
• Include items from category C
• Correspond to the red block
• of available content.

Supplier X
Supplier Y
....

Category
Category A
Category B
Category C
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iProcurement Content SecurityWhats New?

• Example Local Content Exclusion and Inclusion
  Rules

Supplier

• The rules
• Exclude Supplier X
• Include Category A
• Include Category C
• Results in red blocks of available content.
• Exclusion is useful when we need to exclude a
  single Supplier (e.g., X) from many others (e.g.,
  A-Z).

Supplier X
Supplier Y
....

Category
Category A
Category B
Category C
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iProcurement Content SecurityWhats New?

• Lets Look at how category rules are defined

Include specific categories
Include specific suppliers
Make content accessible to specific user groups
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iProcurement Content SecurityWhats 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).
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iProcurement Content SecurityWhats New?

• Lets Look at how supplier rules are defined

Include specific categories
Include specific suppliers
Make content accessible to specific user groups
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iProcurement Content SecurityWhats 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.
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iProcurement Content SecurityWhats 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
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iProcurement Content SecurityWhats New?
Assign Content Zone to specific Responsibilities,
Operating Units, or all Users.
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Content Security EnhancementsBenefits

• 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.

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Requester Driven Change Order Mgmt

• Change Order Approval and Routing Based on
  Tolerances
• Requesters and Suppliers changes are routed to
  the requesters approval hierarchy
• PO changes are routed to to buyer for approval
• Bypass approval for changes within tolerances

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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
  buyers 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

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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

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Usability EnhancementsParagraph Search Skin
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Usability EnhancementsParagraph Search Skin
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Usability EnhancementsSearch Skins Grid Format
The grid format allows users to differentiate
between similar items more effectively.
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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

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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.

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Advanced Approvals Enhancements Example Add
Viewers
Option to add Viewers to the Approval List
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Advanced Approvals Enhancements Example Add
Viewers
Viewer
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Usability EnhancementsBenefits

• 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 user-friendly layout
• Allows users to identify desired information
  quickly

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Usability EnhancementsBenefits

• 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

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Oracle Purchasing Delta Summary

• Professional Buyers 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

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Professional Buyers Work Center Feature
Description

• Requisitions
• View and Process Requisitions into Orders or
  Sourcing Events
• Orders
• Create and Manage Purchase Orders
• Agreements
• Create and Manage Blanket and Contract Purchase
  Agreements
• Deliverables
• Manage Procurement Contract Deliverables
• Negotiations
• Access Oracle Sourcing
• Suppliers
• Create and Manage Supply Base

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Professional Buyers Work Center Implementation
Considerations

• Requisition Management Profile Options
• PO Document Builder Default Document Type
• The document type that is defaulted into the
  document builder region.

Profile Value Description
Add to PO Add to an existing Purchase Order
New Auction Create a new Sourcing Auction
New PO Create a new Purchase Order
New RFQ Create a new Sourcing RFQ

• PO Default Requisition Grouping
• The default for grouping requisition lines onto
  a Sourcing RFQ/Auction or PO.

Profile Value Description
Default Group requisition lines using the default grouping. One or more requisition lines can associated with one purchase order line.
Requisition Group requisition lines using requisition grouping. One requisition line can be associated with one purchase order line.
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Professional Buyers Work Center Customization
and Extensibility Options

• Customers can create custom views using
  personalization feature in all inquiry pages.

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Professional Buyers Work CenterBenefits

• Increases Productivity
• 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.

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Enhanced Catalog AccessFeature 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

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Document StylesFeature Description
Assign Display Names to Document Types
Enable/Disable Features
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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.

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Multi-Org Access Control Feature Description
OLD PROCESS
Application Responsibility A
Application Responsibility B
Application Responsibility C
Operating unit Y
Operating unit X
Operating unit Z
NEW PROCESS
Application Responsibility A
Operating unit Y
Operating unit Z
Operating unit X
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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 -gt Global Security
  Profile (Function PERWSSCP-GLOBAL)

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Document Printing Enhancements Feature
Description
Purchasing Layout
PO Output
New in Release 12.0
Purchasing XML
11.5.10
Purchasing Layout
New in Release 12.0
PO Output in Multiple Formats
Purchasing XML
Release 12
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Communicate Document Attachments to Suppliers
Attachment Type 11i10 and Before r12
Notes to Supplier
Long/Short Text
Files (e.g. MS Word, Drawings)
URLs
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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

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Support for Contractor Purchasing UsersFeature
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
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Compliance to Packaging Constraints
1. Min-max creates Replenishment Request for 116
Eaches
New Process
Inventory

• 2. Apply Constraints
• Order Modifier
• UOM Conversion
• Rounding
• New Quantity 10
• New UOMCases of 12

Min-Max
3. PO placed for 10 cases of 12
REQIMPORT
Purchasing
4. PO complies to Supplier packaging constraints
PURCHASE ORDER
SUPPLIERS
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E-Business Tax Integration Feature Description

• Prior to E-Business Tax
• Basic tax setup tax codes and tax groups

• With E-Business Tax
• Comprehensive solution addressing complex tax
  requirements

• Single point tax solution across E-Business
  Suite
• Single interface tax setup and 3rd party
  integration
• Uniform services
• Single repository

• Fragmented tax solution across E-Business
  Suite modules
• Multiple tax engines
• Duplicate tax setup
• Fragmented data storage
• Duplicate 3rd party integration

Note Please refer to the e Business Tax TOI for
more information on this feature
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Model Complex Pricing for Blanket Line Items
Blanket Agreement
Pricing Transactions
Line Price
Pricing Engine
Price Break
Custom API
Requisitions
Price List
Leverage Oracle Advanced Pricing to model Complex
Pricing Scenarios
Formula
Modifiers
Orders
Oracle Advanced Pricing
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Mass Re-pricing of Purchasing DocumentsFeature
Description
Orders
Blanket Purchase Agreement
Advanced Pricing Price Lists, Modifiers
Revise Pricing Data
New in Release 12.0
Custom Pricing API
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Auto-Approval Tolerances for Change Orders
Eliminates need for Workflow Customizations
Set tolerances by document type
New tolerance attributes introduced
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Advanced Approvals Support for RequisitionsDescri
ption

• Parallel Approvals
• Notifications are sent out to multiple people
  simultaneously to speed up the approval process
• Position Hierarchy Support

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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.
  Sarbanes-Oxley 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

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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

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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

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Advanced Approvals SupportExample

• Business Rules
• If requisition lt 5,000, then requires approvals
  up to first two positions up based on position
  hierarchy
• If the items category is IT.EQUIPMENT then
  require approval from IT Approval Group
• IT Approval Group is in parallel to position
  hierarchy approval chain

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Advanced Approvals SupportExample 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.

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Advanced Approvals SupportExample 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.

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Advanced Approvals SupportExample Add Viewers
Option to add Viewers to the Approval List
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Advanced Approvals SupportExample Add Viewers
Viewer Icon
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Advanced Approvals SupportExample 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

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Sourcing At-a-Glance
Buying Professional
Identify Suppliers Opportunities
Conduct On-Line Negotiations
Analyze Award
Approve Issue
Define Strategies Negotiations
Supply Base
LOB Stakeholder
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Oracle Sourcing Sourcing Optimization
Source More of Your Spend
Source for Lowest Total Cost
Create Immediate Long-Term Savings
Contract Mgmt
Finance
Purchasing
Operations
Increase the Effectiveness Efficiency of
Strategic Sourcing
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Efficient Online NegotiationsSlash 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
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Facilitated Online Bid ComparisonMake 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
• Award approval by workflow

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Automatic Scoring of RequirementsQuickly
Identify the Best Qualified Suppliers
Requirements Weight Value (Score) Quote 990 Response Score
Are you ISO certified? 25 Yes (100) No (0) No 0
Number of years in business 35 gt 14 (100) 10-14 (75) 5-10 (50) lt 5 (0) 15 35
Number of shipping locations 40 gt 19 (100) 11-19 (50) 1-10 (25) 35 40
Total Score Calculated by Oracle Sourcing Total Score Calculated by Oracle Sourcing Total Score Calculated by Oracle Sourcing Total Score Calculated by Oracle Sourcing 75

• Automatically eliminate suppliers that score
  below minimum requirements
• Automatically exclude non-compliant suppliers
  from shortlists

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Centralized Terms LibraryEnsure Consistent
Contract Standards

• Capture standard contract clauses, variables,
  templates and deliverables
• Clearly define enforceable and automated standard
  policy and procedure
• Specify document format with flexibilityto
  accommodate regional variations
• Provide comprehensive revision control via
  notification-based workflow with approval rules

Central Terms Library
Support Compliance and Oversight Requirements
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Expert-Based AuthoringProduce Compliant Contracts

• Configurable rulesdrive terms selectionfor
  complex contracts
• Clauses default based on product, supplier,
  contract value, etc.
• Author high quality contracts with minimal legal
  supervision

Contract
IndustrySegment?
Template
Commercial
Government
...
Over 50k?
No
Yes
Draft

• Add Clauses
• High Value
• Insurance

Responses Drive Clause Selection
Contract
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Automated MS Word SynchronizationQuickly 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
• Improve contracting efficiency while reducing
  effort
• Minimize errors and risk from manual updates

Contract Administrator
Synchronize
Download
Legal Review
Supplier Acceptance
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Automatic Document GenerationEliminate Manual
Re-Keying

• Automatically substitute negotiated terms in
  printed document
• Easily tailor to each business units standard
  format logos, headers, layout, etc.
• Generate standard .pdf business document

Variable Substitution
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Clause Usage AnalysisSearch Contracts To Analyze
Clause Usage Modification

• Improved legal discovery on contracts across
  multiple organizations
• Better insight into effectiveness of current
  standard language usage
• Enhanced visibility into contract standards
  requiring revision

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Contract Deliverable TrackingMonitor Supplier
Performance

• 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

ExampleDeliverables
DefineDeliverable
SendNotification
Manage Deliverable
Escalate WhenNecessary

• Based on contract Ts Cs
• One-time and recurring
• Internal or external

• Notify individuals or groups
• Notify trading partners

• Track progress
• Indicate failure or completion
• Attach supporting documents
• View status change history

• Define escalation criteria
• Escalate to supervisor

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Manage Contract Deliverables Track Contractual
Responsibilities and Key Administrative Tasks
Deliverable status at a glance
Clearly defined ownership
Track internal commitments contractual
obligations

• Alert Any Compliance Risk and Highlight
  Non-Compliance
• Review Compliance Status Before Authorizing
  Payments
• Track Approval History

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Prospective Supplier Registration Reduce
Overhead with Self-Service Registration

• Use corporate website to allow interested
  prospective suppliers to register

• Configure qualification details captured during
  registration
• Define req. elements of supplier profile
• Include customized questionnaires as part of
  registration

• 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
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Supplier Management User-InterfaceStreamlined
Supplier Profile Management
To Do List for requests
Create supplier
Search or drill down to supplier details
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Q

A
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Thank You