nooaug march 2012 procurement v3 - northern ohio...

INTERNAL USE ONLYINTERNAL USE ONLY

R12.x ProcurementNew Features for your Indirect Materials

R12.x ProcurementNew Features for your Indirect Materials

March 20th, 2012Fujitsu America, Inc.Mike GeorgeDirector, Consulting – Oracle Practice


� Introduction

�New Indirect Procurement Features & Benefits

�AME Case Study

�Catalog Administrator Case Study

�Q & A

Agenda

2


Fujitsu / Oracle Relationship

� Oracle Diamond Partner

� 32+ Specializations – Most of any partner

� 1 of few global end-to-end solution providers

� Systems Integration

� Middleware

� Hardware

� Global Reseller Agreement

� 20+ years strong and strategic relationship with Oracle

� Supporting Quote: “Oracle’s partnership with Fujitsu has never been stronger,” said Larry Ellison, CEO, Oracle Corporation. “We are entering a new phase with Fujitsu, aligning our engineering and worldwide distribution efforts with a focus on high-performance, highly-reliable systems.” –February 9, 2011.

� Original member of Fusion Inner Circle

� Part of Oracle Fusion Apps Partner Ramp Up Program

Copyright 2012 Fujitsu America, Inc. All rights reserved.3


PO Price Maintenance for Direct Materials

R12.x Procurement

Select Productivity Features

4


Professional Buyer’s Work Center

Copyright 2012 Fujitsu America, Inc. All rights reserved.

� Requisitions

� View and Process Requisitions into Orders or Sourcing Events

� Orders

� Create and Manage Purchase Orders

� Agreements

� Create and Manage Global Agreements

� Deliverables

� Manage Procurement Contract Deliverables

� Negotiations

� Access Oracle Sourcing

� Suppliers

� Create and Manage Supply Base

Feature DescriptionFeature Description

5


Multi-Org Access Control (MOAC)


OLD PROCESS

ApplicationResponsibility A

Operating unit X

ApplicationResponsibility B

Operating unit Y

ApplicationResponsibility C

Operating unit Z

NEW PROCESS

ApplicationResponsibility A

Operating unit Y Operating unit ZOperating unit X


6


Document Printing Enhancements


XML PublisherXML Publisher

XSL-FO

Purchasing XML

Purchasing Layout

PO Output

11.5.10

XML PublisherXML Publisher

XSL-FO

Purchasing XML

Purchasing Layout

PO Output in Multiple Formats

Release 12

New in Release 12.x

New in Release 12.x


7


Emailing To Supplier Attachments


Attachment Type11i10 and

BeforeR12.x

Notes to Supplier

Long/Short Text

Files (e.g. MS Word, Drawings)

URLs


8


Support for Purchasing Contractors


� 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

NoDo Not Allow Contingent Workers to Create and Approve Purchasing Documents


9


Requestor-led Purchasing


� Requestor Auto-Approval Tolerance for Requisitions

� Buyer Auto-Acceptance Tolerances for POs created from Requisitions

Feature Description – iProcurement Change ToleranceFeature Description – iProcurement Change Tolerance

10


Auto-Approval Tolerances for Change Orders


New tolerance attributes introduced

Set tolerances by document type

Eliminates need for Workflow Customizations


11


iProcurement Change Requests


– Requester’s and Supplier’s changes are routed to the requester’s approval hierarchy

– PO changes are routed to the buyer for approval

– Bypass approval for changes within tolerances12


What’s New in AME Approvals?


� Parallel Approvals� Several approvers can be simultaneously notified for a given

requisition, thus speeding up the requisition approval process

� Support for Viewers� Allows flexibility in keeping a person/role informed of business

purchases and decisions, without requiring a response

� Position Hierarchy Support� Allows customers to define approval routing structures that

remain stable even if individual employees leave their organization or transfer within it

� Graphical Approval Path UI Display� Provides preparers and approvers a simple and intuitive

graphical view of the approval chain and requisition status for a given requisition

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Graphical Approval List and History


� Configurable Rule-Based Approvals (e.g. Projects, Categories, Cost Centers, etc.)

� Parallel Approvals

� FYI Notifications

� Know where your request stands in the approval process

� Know how long your request has been in the approval process

14


PO Mass Document Close Process


� Purchasing� Mass Close of Purchasing Documents provides the ability to mass close

purchase orders using a variety of criteria and streamline the maintenance process

15


PO Mass Document Update Process


� Purchasing� Mass Update of Purchasing Documents provides the ability to mass

update buyer, approver, and deliver-to person information in Purchase Orders (and) preparer, requester, and approver on Requisitions to streamline organizational changes.

16


iProcurement Catalog Management


Catalog

Approve

iSP

Supplier

SourcingSourcing

Professional

Award

PBWC

Buyer

Bulkload /Online author

iP Admin

CatalogAdmin

PO

Buyer

iP

Requester

External Supplier Sites

Definitions:Buyer - Purchasing userSupplier - Supplies goods or services to the buying organizationCatalog Administrator - Performs catalog related activities within the buying organization

17


iProcurement Catalog Benefits


Catalog Management Enhancements:

� Buyers can delegate catalog management to suppliers and catalog administrators� Create/update content online

� Bulk-load content with improved error review capability

� Summary of all changes prior to submission

� Disposition at the line level provides control over price changes and item availability

� Approval, archive and version control

Benefits• Reduce the buying organization overhead in catalog management

• Streamline catalog creation and management

• Real-time availability for requesters after approval

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Case Study


The J.M. Smucker Company

AME Case Study

� Company History

� Significant growth through acquisitions

� Employee empowered workforce – both business and IT

� One of Oracle’s largest customers in the CPG industry

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Requisition Approval Challenges

� Support initial organizational rules� Capital Project approvers

� Hazardous Material approvers

� Streamline approval maintenance for 1500+� Plant / Organization transfers

� Job Title challenges

� Alignment to Approval Policy

� Alignment with Human Resources

� Audit Compliance Considerations



Future Process Flow



Existing Plant-Level Approvals

� Simplified Amounts ~ Defined by corporate

� Simplified People ~ Plant controller dictates authorization levels

� Simplified Concept ~ People-based approvals, not Job/Position-based


Big Thing – Main Problem (Maintenance)

22


Future Plant-Level Approvals


� Custom Form / Table to store spreadsheet data

� Same simplified spreadsheet concept with flexibility for both people and amounts

� Continued centralized data maintenance at corporate

23


People-Based AME Solution


� Standard AME processes and forms used

� Dynamic Approval Group calls custom code

� While the custom code is not supported, the method used to call it is (similar to a workflow modification)

� Employee / Supervisor list built based on Requester

� Looks to custom form / table to determine when a supervisor is found with appropriate authority – ignores Job & Positions that constantly change

24


AME Success Story – Smucker’sDescription of Initiative:� Implement Oracle AME to define approval rules for

requisitions

Business Drivers:� Defines approval rules for requisitions by tying

approvals to employee name

� Meets audit compliant needs

� Aligns to Finance approval policy

� Eases approval maintenance burden for 1500+ requisitioners

� Supports specific organizational rules, such as Capital Projects & Hazardous Materials

Planned:

• Ties requisition approvals to employee name

• Reduce time by Business Systems to manage & maintain approvals

• Provide reporting that is easy to use & understood by multiple groups

• Support ability to route requisition based on Requestor rather than Preparer

• Coordinated & successful testing with integration partners

• iProcurement users trained by 2/21 AME go-live

Post Implementation Evaluation:

• Quality: 5

• Benefits/Value: 5

• Partnership: 5

• “Oracle AME allows our Business Systems group to easily maintain the approvals tied to requisitioners across the organization by no longer being dependent on the job title, but the control of the employee name. It provides the necessary audit control/reporting as well as additional approval features to support Capital and Hazardous material.”

- Kristen Birkbeck

Actual:

• Alignment of requisition approvals to employee name

• Approvals align based on the Finance-approved approval matrices

• Greatly reduced time of maintaining approvals for Business Systems team

• Integration with Capital Projects: Capital Project Lead has visibility & approval over all projects tied to them

• Continues to use the employee-to-supervisor hierarchy

• AME supports both Domestic & Canada approvals

• All expectations of project delivered & met by go-live date

• Participants: Deb Janda, Linda Kreiger, Craig Wheeler, Kristen Birkbeck, Milind Pai, Mike Sterle

25


Case Study


Toyota Boshoku America

Catalog Administrator Case Study

� Company History

� Pioneer of Just-in-Time Manufacturing

� Historical use of custom systems due to complexity

� Decisions based on long-term philosophy even at the expense of short-term goals

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Efficient Business Model for PO

Contract Pricing is Established (Strategic)

� Specific Supplier / Item combinations

� Specific date-range applicability

Planner / Buyers release from their workbench (Tactical)� Review MRP / ASCP suggestions

� Select items and quantities to process

Supplier receive and fulfill orders (Tactical)� Purchase Orders automatically generated without additional intervention / manual

processing

� Purchase Orders automatically transmitted to Suppliers

Planner / Buyer Suppliers

Contract Pricing

Corporate Sourcing



Procurement Automation

Step 1

Create Requisition

Step 2

Automatic Document Sourcing

Step 3

Requisition Approval Workflow

Step 4

PO Create Documents Workflow

Step 5

PO Approval Workflow



Step 1: Create Requisition

Step 1Create

Requisition

Step 2

Automatic Doc Sourcing

Step 3

Requisition Approval

Step 4

PO Create Doc Workflow

Step 5


Activity

� Select Item

� Select Quantity

� Select Need-By Date

� Select Delivery Information

Sources

� Manual Creation

� Requisition Interface



Step 2: Automatic Document Sourcing

Activity

� Select Suggested Supplier (based on Source Rules)

� Select Source Document and Price (based on Approved Supplier List)

Sources

� Real-time via the Forms (automated behind the scene)

� Automated programmatically via the Requisition Interface

Key Points� Source Document must be Valid (Current and Approved)

� No Source Document = Static Price from Item Master (not Supplier-specific)

Step 1Create

Requisition

Step 2


Step 3


Step 4


Step 5




Step 3: Requisition Approval Workflow

Activity

� Approving the request

� Launches the PO Create Documents workflow (automatically creates a PO from the PR)

Sources� Manual Submission

� Automated via Requisition Interface Submission

Step 1Create

Requisition

Step 2


Step 3


Step 4


Step 5




Step 4: PO Create Documents Workflow

Activity

� Verify Requisition Line has a Valid Supplier

� Verify Requisition Line has a Valid Source Document

Sources

� Automated Workflow Processing

Key Point for Continuing� Source Document must be Valid (Current and Approved) – repeat

validation of Step 2

� No Source Document = Manual Buyer Intervention for processing (No Price Breaks, Retroactive Pricing, I/C TRX, Tracking Commits)

Step 1Create

Requisition

Step 2


Step 3


Step 4


Step 5




Step 5: PO Approval Workflow

Activity

� Approve the Purchase Order

� Transmit the Purchase Order

Sources� Automated Workflow Processing

Key Point� Buyer must have authority to approve the order

� Transmission method follows the default setup for the supplier

Step 1Create

Requisition

Step 2


Step 3


Step 4


Step 5




Successful Processing

� Buyers spend their time on meeting Strategic Goals opposed to tactical processing and error handling



Unsuccessful Processing

� The whole design becomes a dud…



High-level Design


Schedules, Orders

Releases

every42 minutes

Supplier

Custom Planning System

Oracle EBS Procurement

AP Invoicing

� EBS system of record

� Contractual Agreements and Pricing

� Supplier/Item Sourcing

� Planned releases become requisitions

� What, when, how many

� Immediate order transmission

36


Requisition to PO Design (Original)



Requisition to PO Design (Revised)



Root Cause Analysis:Invalid Source Document



Challenge:Release at Last Approved Price

�Maintenance

�Not dependent upon special timing of updates

�Ability to make multiple changes, save, and re-work at a later point in time (whether it took 1 minute or 1 week)

�Changing one line should not impact the entire Agreement

�Approvals

�Provide the ability for the Purchasing Manager to review changes prior to implementing



Catalog (Agreement) Management

Catalog

Approve

iSP

Supplier

SourcingSourcing

Professional

Award

PBWC

Buyer

Bulkload /Online author

iP Admin

CatalogAdmin

PO

Buyer

iP

Requester

External Supplier Sites

Definitions:Buyer - Purchasing userSupplier - Supplies goods or services to the buying organizationCatalog Administrator - Performs catalog related activities within the buying organization



Catalog 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

� Changes to catalog content and content security definitions occur in real-time. No “extractor” type concurrent program are required to enable catalog content or security modifications.



Maintenance Solution:Introducing Draft Tables

PO # Supplier Line # Item # Qty Price

1000 Fujitsu 1 f60000 1 $130.00

1000 Fujitsu 2 f61000 1 $60.00

1000 Fujitsu 3 f70000 1 $949.00

1000 Fujitsu 4 f71000 1 $358.00


PO # Supplier Line # Item # Qty Price Accept

1000 Fujitsu 4 f71000 1 $357.00

� Stores all requested changes and tracks status of acceptance

� Interim changes not applied to Base Tables until accepted

� (No more GBPA’s in Requires Re-Approval status)

Base Tables

Draft Tables with Changes

How it Works

43


Using the Draft Tables:Catalog Administrator



Approval Solution:Change Acceptance Options

� Is Review Required (prior to Workflow Approval)?

� Yes (Always)

� No (Never)

� Sometimes (When Price Changes Exceed Tolerance)



Differences Summary

�Workflow Notifications

�Changes easily identified• Standard Accept / Reject options



PO Difference Summary Notification Workflow


Auto-Approval

Tolerances

47


Approval Solution 1: (No Supervisor Required)



Approval Solution 2:(Supervisor Required)



Old to New

Buyer’s Workbenchvs.

Catalog Administrator

50


Other Considerations and Results

� Other Considerations

� Catalog Administrator versus Buyer’s Workbench – enforcing usage

• Still need ability to create New (Incomplete) documents

• Restrict ability to update Existing documents (or In Process occurs)

• Manual or Systematic Control with personalizations

� Change Order Approval Process

• Approval Limits

• Approval Tolerances for Agreements (new R12 form)

• Supervisor Approval Requirements and Workflow

� Results

� Manual re-work queue drastically reduced – Saving Time

� Orders now processed at correct (last approved) price and communicated directly from Oracle via iSupplier / EDI

� The larger benefit of ERP system acceptance – Oracle works!



Case Study


More Information

52


General Information

� My Oracle Support / Metalink

� PO Information Center (Note 1327702.1)

• Hot Topics & Diagnostics

• Documentation & TOI / RCDs

� My Oracle Support Community for Procurement

• News & Announcements

• Discussion Forums

• Procurement Webcasts

• Community Documents

� Oracle Diamond Partner – Fujitsu America

� Scott Jackson, Sr. Client Executive – local to Northern Ohio

• Cell: (330) 554-9317

• Email: [email protected]

� Working with Fujitsu & Oracle clients for more than 10 years
