1 university of maribor faculty of organizational science procurement prototype with oracle...

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UNIVERSITY OF MARIBORFACULTY OF ORGANIZATIONAL SCIENCE

PROCUREMENT PROTOTYPE WITHORACLE E-BUSINESS SUITE PROGRAM

Marko Jordan

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Procurement prototype with Oracle E-Business Suite program Marko Jordan

• Description of the problem

• Working methods

• Current procurement process

• Target business process model

• Customizing the program

• Prototype execution

• Conclusions

Presentation overview

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• Researching the possibility to include purchases of slight value goods and consumer goods in their procurement system.

• These orders are now carried out via the telephone.

• The process is not properly documented and the review of orders is not clear.

• These orders are also not carried out with Oracle E-Business Suite.

Description of the problem


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• I was working with Oracle employees.

• I analysed current procurement processes.

• Reengineering of business processes (target business process model).

• I adjusted the program to meet the needs of target procurement process.

• I also worked with the supplier.

• Results analyses.

Working methods


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Current procurement process analysis

Regular stockchecking

Transferconfirmation by two

signers

Checking quantityand note signing

transfer composition

Odering of standardquantity bytelephone

Shortage of soft drinks

Order

Form of delivery

Signed form of delivery

InvoicePayment

Order notes

Transfer with quantity and price

Order

Payment

Neccessity

Form of delivery

Živila

Živila

Živila

Živila

Živila

Necessityassessment

Neccessity


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• We worked with the Oracle employees in accounting and in administration.

• Purchases of slight value goods and consumer goods (same example).

• We considered inputs and outputs of current procurement process.

• We also considered the current procurement process for regular orders.

• The prototype will be based on the target procurement business process model.

Target business process model


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Target business process model

Stock checking andrequisition creation

Verifying quantityand price inpo and fod

Receiving ordersand checking

quantity

Creation ofpurchase order

Approval orcomments of

high rank official

Checking payment

Quantity of order needed

Approval of purchase order Purchase order

Approved purchase order

Form of delivery

Note of Received goods

Signed form of delivery

Signed form of delivery (price and quantity )

Scaned invoiceInvoice

Notification of payment

Transfer order

Paid invoice

Necessity

Form of delivery

Purchase order

Paid invoice

Živila

Živila

Financialheadquar

tersDublin

Živila

Necessityassessment

Financialheadquar

tersDublin

Financialheadquar

tersDublin

Živila

Živila

Necessity


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Preparing the prototype

Jordan_ora, d. o. o.,

Jordan_admin, d. o. o.

Jordan_ziv, d. d.

Administracija (administration)

Računovodstvo (accounting)

Nadrejeni (higher rank official)

Dublin

Zivila

Account ManagerBuyerBuying ProfessionalCatalogue AuthorCompany AdministratorPurchasing ManagerSellerThird Party Catalogue Author

Job functions

Buyer

Buying ProfessionalPurchasing Manager

Company AdministratorBuying ProfessionalAccount Manager

Buying ProfessionalAccount Manager

Catalogue AuthorCompany Administrator

Log On ; Access To Do List ; Access Trading Partner Directory ; Get Password Assistance ; Register ; View About Page ; View Admin Page ; View All Charges ; View Billing Activity ; View Billing Tab ; View Buyer ; Negotiations Intelligence Reports ; View Buying ;View Buying Link ; View Catalog Purchases Intelligence Reports ; View Catalog Sales Intelligence Reports ;View Catalogs Tab ; View Company Information ;View Company's Orders ; View Intelligence Page ;View My Company Negotiations ; View My Company Responses ; View Negotiations ; View Negotiations Page; View Other Company Negotiations ; View Other Company Responses


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For Oracle Software d.o.o.

• User registration.• Adding job functions.• Defining approval order.• Approving the catalogue.

For Živila Kranj d.d.

• User registration and job functions.• Adding currency.• Catalogue authoring.• Managing customer groups.

Preparing the prototype


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In order to give a clearer analysis I divided the process:

• Process from need to order.

• Process from order to invoice.

• Payment status check.

Realization of the prototype solution


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Podpora nabavnega procesa s programom Oracle E-Business Suite Marko Jordan

Oracle Software d.o.o.

• Technology was used properly within possibilities.• It would be reasonable to consider the economy of this approach.• We may consider Oracle standard Business processes.• The next step is to use standard installation without limitation.• Talking with the suppliers before implementation.• Internal project of the Slovenian Oracle filiale.

Opinions


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Živila Kranj d.d.

• The company is participating in procurement process as the supplier.• The company uses similar methods for redesigning business processes.• Programs are tools for managing desired business processes.• The processes in the prototype solution are well designed.• Need to have access to financial module and workflow designer.• They accept the idea of standard business processes when they are well designed.• The number of items on screens could be a problem for the company.• Joining new suppliers to procurement system is very easy.

Opinions


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• To re-evaluate target business processes method economy.

• In future implementation process, the financial module would have to be used.

• Success of installation is dependable on suppliers’ participation.

• It is sensible to research possibilities of .xml catalogue changes.

Recommendations for future work


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• There are two approaches for business process reengineering.• to build solutions on existing business processes or target processes • to change processes according to software in-build business processes

• For business process support companies can • use use programs that are developed specifically for their needs or• existing software solutions.• companies can use integrated informational systems or specialized systems.

• In business collaboration• connectivity of different information systems is important.• solutions are common standards for interconnections (web).• use the informational systems program in entire supply chain.• one company can access parts of the other company’s software.

Conclusions


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Questions ?


1 university of maribor faculty of organizational science procurement prototype with oracle...

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