oracle advanced procurement the integrated suite that dramatically cuts all supply management costs...

Oracle AdvancedProcurement

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The Integrated Suite that Dramatically Cutsall Supply Management Costs

Information Age Applications

Procurement At-a-Glance

SourceSource PurchasePurchase SettleSettle

• Supplier Selections

• Negotiations

• Requisitions

• Approvals & Orders

• Goods Receiving

• Payments

• Supplier Performance

• Expirations & Renewals

Manage Contracts & SuppliersManage Contracts & Suppliers

Business Challenges

ProcurementProcurementOrganizationOrganization

Increasing Savings Targets• Same or greater % every year• Resource constraints –

“save more with less”• Inflation, currency fluctuation

Increasing Savings Targets• Same or greater % every year• Resource constraints –

“save more with less”• Inflation, currency fluctuation

Compliance Concerns• Low visibility• Contract leakage• Regulatory pressures

Compliance Concerns• Low visibility• Contract leakage• Regulatory pressures

Organizational Challenges• Insufficient policy influence• Unintegrated processes• Staff consumed by routine

processing

Organizational Challenges• Insufficient policy influence• Unintegrated processes• Staff consumed by routine

processing

Competitive Pressures• Outsourcing• Faster new product introduction• Global competition

Competitive Pressures• Outsourcing• Faster new product introduction• Global competition

• Save Money– Maximize buying power– Increase contract utilization– Avoid unnecessary

expenditures

• Increase Productivity– Reduce manual workload– Increase responsiveness– Improve supplier performance

ProfitProfitMktgMktg COGSCOGSR&DR&DG&AG&A

Improved Procurement = Improved ProfitsSavings Greatly Impact the Bottom Line

Why Are Cost Savings Hard to Achieve? Routine Tasks Hinder Strategic Activities

SupplySupplyOptimizationOptimization

AnsweringAnsweringSupplier QueriesSupplier Queries

HelpingHelpingRequestersRequesters

ManagingManagingContentContent

CreatingCreatingManual OrdersManual Orders

SpendSpendAnalysisAnalysis

ContractContractNegotiationNegotiation

Project-Project-Based Based

ProcurementProcurement

InternalInternalBenchmarkBenchmark

DeliveryDelivery

Monitor &Monitor &ReviewReview

ControlsControls

StrategicStrategic

HighHigh

MediumMedium

LowLow

Val

ue

Val

ue

Procurement Transformation

High

Str

ate

gic

Va

lue

Maturity

Cost ProcurementTouchless Buying Touchless Buying

Policy EnforcementPolicy Enforcement

Contract NegotiationContract Negotiation

Spend ManagementSpend Management

Cost ProcurementTouchless Buying Touchless Buying

Policy EnforcementPolicy Enforcement

Contract NegotiationContract Negotiation

Spend ManagementSpend Management

Tactical BuyingCreate Manual OrdersCreate Manual Orders

Answer Supplier QueriesAnswer Supplier Queries

Help RequestersHelp Requesters

Manage ContentManage Content

Tactical BuyingCreate Manual OrdersCreate Manual Orders

Answer Supplier QueriesAnswer Supplier Queries

Help RequestersHelp Requesters

Manage ContentManage Content

Strategic ProcurementValue CreationValue Creation

Collaborative ProcurementCollaborative Procurement

Supply OptimizationSupply Optimization

All Categories, All ProcessesAll Categories, All Processes

Strategic ProcurementValue CreationValue Creation

Collaborative ProcurementCollaborative Procurement

Supply OptimizationSupply Optimization

All Categories, All ProcessesAll Categories, All Processes

Low

High

Low

What Customers are Saying…

“We have already realized significant savings from implementing Oracle iProcurement 11i and anticipate more.”

-- Gary Reiner, Senior VP and CIO

“Using Oracle Advanced Procurement and Oracle Financials has enabled us to transform the

purchasing department to a value-added organization, resulting in over $74 million in documented cost savings.” -- Ralph Maier, Director of Purchasing Services

“Our supply chain review and internet-based procurement system have helped us save over $5.4 million in the first three years. This is a considerable amount when you consider that our annual spend is about $19 million.” -- Robin Skeggs, CFO and GM of Support Services

What Customers are Saying…

“Oracle iProcurement is allowing us to drive more spending into established vendor contracts. This is helping us reduce transaction costs while increasing our knowledge of what is being purchased.” --Tami Brown, Purchasing Manager

“We conservatively expect our Oracle Internet Procurement initiative to reduce our maintenance, repair, and operating spend by 10%, resulting in millions of dollars in savings and a substantial positive impact on earnings.”

-- Bill Lawson, CIO

“Smarter use of e-procurement solutions has already generated savings. These savings will grow as we make increased use of Oracle’s built-in analytical tools to analyze our spend more closely and prevent contract leakage.”

-- David Rabey, Director of Purchasing and Supply

What Customers are Achieving…

reduced MRO item costs by 20%

sourced 50,000 items and reduced costs by 20%

increased purchasing volume discounts by 5%

reduced purchase order cycle time by 75%

reduced purchase order processing time by 86%

reduced purchasing processing costs 89%

saved over $11M from Procurement & other EBS apps

saved over $1.1M annually via integrated procurement

saved over 25% on indirect goods purchases

implemented internet procurement in only 60 days

ThompsonTravelGroup

http://www.technip.com/english/index.htm

http://www.irco.com/

http://www.pella.com/

A Few More Customers…

ThompsonTravelGroup

How OracleHow OracleDeliversDelivers

DemandDemandCollectionCollection

IndirectIndirectGoodsGoods

DirectDirectMaterialsMaterials

EngineeredEngineeredGoodsGoods

ServicesServices ApprovalRoutingApprovalRouting

TouchlessBuyingTouchlessBuying

Automated PaymentAutomated Payment

Enforce Policy ComplianceEnforce Policy Compliance

Budget-BasedProcurementBudget-BasedProcurement

ContractManagementContractManagement

SupplierPerformanceSupplierPerformance

Reduce Spend on Goods and ServicesReduce Spend on Goods and Services

CategoryManagementCategoryManagement

OnlineSourcingOnlineSourcing

SpendAnalysisSpendAnalysis

Streamline Procurement ProcessesStreamline Procurement Processes

SupplierSupplierCollaborationCollaboration

SettlementSettlement

OrdersOrders

ProfileProfileManagementManagement

SupplierSupplierNetworkNetwork

LogisticsLogistics

SupplierSupplierPortalPortal

Oracle Advanced ProcurementThe Integrated Suite that Dramatically Cuts All Supply Mgmt Costs…

Oracle Advanced ProcurementEnables You To…

Reduce Spend on Goods and Services

Streamline Procurement Processes

Enforce Policy Compliance




Packaged Spend AnalysisSpot Savings Opportunities Immediately

? Are we leveraging volume discounts from our suppliers? Where is there contract leakage? Which departments have the most unsourced spending

? Are we leveraging volume discounts from our suppliers? Where is there contract leakage? Which departments have the most unsourced spending

COMM

ODITY

SUPPLIER

ORGANIZATION

Supplier

Organization

Commodity

Ad Hoc

• Analyze Spend by…- Item / Commodity- Supplier- Organization- Buyer- Geography- Time- Contract

• Monitor Pricing Trends & Commodity Performance

• Determine Contract Utilization

Exploit savings opportunities & use open competition to improve price/terms

BlanketAgreementsBlanketAgreements

GlobalAgreementsGlobalAgreements

Signed ContractsSigned Contracts

• Templates, standard T’s & C’s

• Advanced pricing

• 1-click renegotiation for agreements

PurchaseOrdersPurchaseOrders

SourcingRulesSourcingRules

• Automatic price & terms enforcement

• Preferred supplier enforcement

• Online negotiations

• Online ‘expert’ collaboration

• Award optimization

RFI /SurveyRFI /Survey

RFQRFQ

OnlineAuctionOnlineAuction

Aut

omat

ic Im

plem

enta

tion

Aut

omat

ic Im

plem

enta

tion

Agr

eem

ent C

reat

ion

Agr

eem

ent C

reat

ion

Online Negotiation & CollaborationIncrease Sourcing Efficiency and Effectiveness

Online Negotiation & Collaboration (cont’d)Increase Sourcing Efficiency and Effectiveness

Cut sourcing cycle time while making better award decisions

• Online bid analysis and scoring

• Award allocation rules

• Template-based contract authoring

• Online bid analysis and scoring

• Award allocation rules

• Template-based contract authoring

Embedded Terms EnforcementEnforce Contracted Pricing and Terms

• Negotiate pricingand terms

• Author purchasing contracts

• Enforce contract deliverables

• Direct self-service orders to preferred suppliers at contracted pricing

• Create purchasing transactions at contracted pricing

SourcingSourcingSourcingSourcing ContractsContractsContractsContracts iProcurementiProcurementiProcurementiProcurement PurchasingPurchasingPurchasingPurchasing

Automatically implement negotiated pricing and terms in every transaction

Embedded Terms Enforcement (cont’d)Enforce Contracted Pricing and Terms

Deliverable status at a glance Compliance tracking during negotiation and after award Supplier and internal compliance monitoring

Review StatusReview Statusof Deliverablesof Deliverables

Example DeliverablesExample Deliverables- Monthly milestone progress reportsMonthly milestone progress reports- Provide a prototype within 3 months of contract signingProvide a prototype within 3 months of contract signing- Perform site visit and inspectionPerform site visit and inspection- Proof of compliance to industry standardsProof of compliance to industry standards

Complete Procure-to-Pay AutomationFree Staff for High-Value Activities

Send ElectronicSend Electronic

PO to SupplierPO to Supplier

Receive ElectronicReceive ElectronicInvoiceInvoice

CreateCreate

Purchase OrderPurchase Order

Identify & QualifyIdentify & Qualify

VendorsVendors

EvaluateEvaluate

BidsBids

Create & ApproveCreate & Approve

RequisitionRequisition

Negotiate MasterNegotiate MasterPurchase AgreementPurchase Agreement

Pay SupplierPay Supplier

(EFT)(EFT)

AnalyzeAnalyze

PerformancePerformance

Receive Goods or Receive Goods or

Services; InspectServices; InspectSelect VendorSelect Vendor AdjustAdjust

ContractsContracts

SourcingStrategy

PurchasingExecution

Add structure to strategic activities & execute routine transactions automatically

BU 1

SourceRequest Buy Pay

BU 2

BU 3

Decentralized

BU 1


SharedService

BU 2

Central Sourcing, Local Execution

BU 1


SharedService

BU 2

Automatedfinancialreconciliation

Complete Shared Services

Example: Multiple Procurement ModelsSelect Model Appropriate for Each Spend Category

BU 1


SharedService

BU 2

Automated financialreconciliation

Transfer to Local Business Unit

Self-service ordering in a familiar web shopping interface

Smart Forms to structure non-catalog orders

Purchasing-controlled content for guided user choice (e.g., preferred vendors)

Configurable approval flows with accounting enforcement

Self-service order tracking and order changes

Complete process automation

Policy-Driven Self-Service RequisitioningAutomate and Control Employee Buying

Example: Employee-Initiated Changes

Change quantity, Change quantity, date, price or date, price or

cancel linecancel line

• Change request approvalChange request approval• Buyer review and PO updateBuyer review and PO update• Automatic supplier notificationAutomatic supplier notification

Self-service order tracking

Self-service order changes with Purchasing approval

Self-service receiving triggers invoicing

Eliminate routine order inquiries and change requests to Purchasing

Structured Supplier CommunicationsReduce Process Errors, Manual Effort, and Lag Time

SuppliersSuppliersBuyerBuyer

Change Orders

Forecast & Schedules

Shipment Notices

Orders Orders

Invoices & Payments

Supplier Qualifications

v.1v.1

v.2v.2

Time Cards

Structured Supplier Communications (cont’d)Reduce Process Errors, Manual Effort, and Lag Time

SuppliersSuppliersBuyerBuyer

Supplier Portal: Online Self-Service

Messaging: Lights-Out Connectivity

• XML• EDI• E-Mail

Supplier Portal

Structured Supplier Communications (cont’d)Reduce Process Errors, Manual Effort, and Lag Time

Quick DocumentQuick DocumentSearchSearch

Alerts & Alerts & NotificationsNotifications

Most Recent Most Recent OrdersOrders

Access toAccess toComplete ProcureComplete Procure

to Pay Datato Pay Data

Most Recent Most Recent ShipmentsShipments

Zero training paradigm

Global view with security

Simple and advanced search

Attachments

Excel import and export

Exception-Based EnforcementIdentify and Rectify Policy Violations

Purchasing Transactions

DemandQueue

DemandQueue

Return or Modify Reqs

Document Creation

Document Creation

RulesConfiguration

RulesConfiguration

AutomaticAutomationAutomation

ApprovalsApprovals

RejectionsRejections

PurchasingProfessional

ExceptionsExceptions Buyer-Assisted

Indirect Indirect

& MRO& MRO

DirectDirectMateriaMateria

lsls

DemandDemandSourcesSources

Designed Mat’lsDesigned Mat’ls

ServiceServicess

Configurable automation of routine transactions

Automatic bubble-up of exceptions

Pre-built, configurable approval flows

Exception-Based Enforcement (cont’d)Identify and Rectify Policy Violations

Single point for defining and enforcing Purchasing policy Pre-modeled best practice procurement processes Built-in preferred supplier and contract usage enforcement

Items withoutItems withoutcontract coveragecontract coverage

Items with under-Items with under-utilized contractsutilized contracts

Budget-Based ProcurementAlign Financial and Procurement Policies

Project Budgetor Grant

Project Budgetor Grant

Project Project DemandDemand

RetunedRetunedororModified Modified ReqsReqs

FundsAvailable?

FundsAvailable?

YesYes

NoNo

Update with Spend Data

Document CreationDocument Creation

Payment -Invoices, Timecards

Payment -Invoices, Timecards

• Automatically update project budgets with spending data to ensure funds availability

• Seamless dataflow from Projects to Procurement to Payables

• Project Budgeting• Encumbrances• Grants Accounting

Oracle supports multiple financial control methods

*Requires Oracle Financials*Requires Oracle Financials

Budget-Based Procurement (cont’d)*Align Financial and Procurement Policies

Total Procurement VisibilityManage Supplier Performance

Management by Objective– Define key performance indicators– Setup business performance targets

Management by Exception– Calculate KPIs and compare to plan– Notify decision-maker of exceptions

Management by Fact– Analyze exceptions based on facts– Take immediate corrective action

Define Define TargetsTargets

PerformPerformTransactionsTransactions

MeasureMeasurePerformancePerformance

Out ofOut ofTolerance?Tolerance?

Notify Notify

Analyze & TakeAnalyze & TakeCorrective ActionCorrective Action

Total Procurement VisibilityManage Supplier Performance

• Daily updates on key performance indicators

• Actionable information on savings

• Pre-built portals with role-based access

• At-a-glance:- Contract leakage- Non-contract

purchases (sourcing opportunities)

- Purchasing trends- Payables leakage

LinksLinks

ReportsReports

Real-TimeReal-TimeResultsResults

GraphsGraphs

Flexible Flexible Time PeriodsTime Periods

Flexible Flexible ComparisonsComparisons

PerformancePerformanceMeasuresMeasures

Oracle Advanced Procurement

Integrated packaged spend analysis, online sourcing, and embedded pricing enforcement

Integrated packaged spend analysis, online sourcing, and embedded pricing enforcement

Full procure-to-pay automation with employee self-service and structured supplier communications

Full procure-to-pay automation with employee self-service and structured supplier communications

Budget-based procurement, exception-based enforcement and total spending visibility

Budget-based procurement, exception-based enforcement and total spending visibility

Reduce Spend on Goods and ServicesReduce Spend on

Goods and Services





Oracle Advanced ProcurementComplete Coverage Across All Purchasing Categories

IndirectIndirectGoodsGoods

DirectDirectMaterialsMaterials

EngineeredEngineeredGoodsGoods

ServicesServices

Project ManagementProject ManagementMarketing Marketing

FacilitiesFacilities

• Advertising and Print

• Shows and Promotions

Self-ServiceSelf-Service MaintenanceMaintenance

LogisticsLogistics

• Office Supplies

• Contingent Labor

• Travel and Entertainment

ProductionProduction

Information TechnologyInformation Technology

• Raw Materials

• Components

• Assemblies

• HVAC

• Janitorial

• Landscaping

• Utilities

• Furniture & Fixtures

• Full truck, LTL, Parcel, etc.

• Ocean, Air, & Rail

• Warehouse/Logistics Svcs

• Fleet & Maintenance Svcs

• Repair Supplies

• Replacement Parts

• Equipment

• Tooling

• Hardware, Software

• Leasing & Financial Services

• Professional Services

• Networking, Wireless

• Capital Expenditures

• Building & Construction

• Fleet Purchases

Complete Category ManagementComplete Category Management

Supplier EnablementSupplier EnablementEmployee Self ServiceEmployee Self Service

Spend AnalysisSpend Analysis

Procure-to-PayProcure-to-Pay

Strategic SourcingStrategic Sourcing Contract MgmtContract Mgmt

iSupplier Portal Supplier Network*iSupplier Portal

Supplier Network*Purchasing

Accounts PayablePurchasing

Accounts PayableiProcurement

Services ProcurementiProcurement

Services Procurement

Purchasing IntelligencePurchasing IntelligenceSourcing

Sourcing OptimizationSourcing

Sourcing OptimizationProcurement ContractsProcurement Contracts

Oracle Advanced Procurement Delivered via a Modular Product Suite

*Complimentary service component of Advanced Procurement Suite

Oracle Advanced Procurement An Example of Modular Adoption

TimeTime

Val

ueV

alue

Procure-to-PayProcure-to-Pay

Cut Unit Cost While Streamlining Processes

Cut Unit Cost While Streamlining Processes

Strategic Strategic SourcingSourcing

Supplier Supplier EnablementEnablement

Employee Employee Self-ServiceSelf-Service

Deploy Self Service To

Free-up Staff

Deploy Self Service To

Free-up Staff

Contract Contract ManagementManagement

Spend Spend AnalysisAnalysis

Create Savings, Drive Value, & Enforce

Compliance

Create Savings, Drive Value, & Enforce

Compliance

Focus early wins and ROI

Operate fully integratedor stand alone

Lower thetime & cost to implement & maintain applications

Develop

Market

Sell

Order

Plan

Procure

Make

Fulfill

Service

Maintain

Finance

HR

Projects

Contracts

Customers,Customers,

Suppliers,Suppliers,

Products,Products, ……

• Common data model enables a single source of truth

• Comprehensive suite of applications designed to work together

• Robust set of integration services based on open standards

• Modular deploymentby business flow

• Single global instance implementations

Oracle Advanced Procurement Part of a Unified Information Architecture

Evolution of Oracle Advanced Procurement Evolution of Oracle Advanced Procurement

New in 11i.9…New in 11i.9…Base Differentiators…Base Differentiators…

• Self-service enterprise requisitioning from suppliers or internal stock

• Integrated asset and production planning

• Self-service supplier inquiries and transactions, (e.g. VMI and self-invoicing)

• Flexible invoice matching including match to receipt

• Automatic invoice and debit memo generation

• Project- and budgetary-based purchasing

• Multi-attribute scoring for reverse auctions and RFQs

• Open platform for demand, orders, receiving, invoices

• Integrated spend and supplier intelligence

• Workflow-driven automation

• Self-service enterprise requisitioning from suppliers or internal stock

• Integrated asset and production planning

• Self-service supplier inquiries and transactions, (e.g. VMI and self-invoicing)

• Flexible invoice matching including match to receipt

• Automatic invoice and debit memo generation

• Project- and budgetary-based purchasing

• Multi-attribute scoring for reverse auctions and RFQs

• Open platform for demand, orders, receiving, invoices

• Integrated spend and supplier intelligence

• Workflow-driven automation

New in 11i.10…New in 11i.10…

• Global agreements

• Supplier managed and consigned inventory

• Requester and supplier change requests

• Supplier registration and profile management

• Collaborative sourcing

• Requester “stores” for secure content zones

• Patent-pending transparent punch-out

• One-click renegotiation of blanket agreements

• Expanded XML support including cXML for easing Ariba migrations

• Time-phased pricing for direct materials

• Commodity intelligence

• Global agreements

• Supplier managed and consigned inventory

• Requester and supplier change requests

• Supplier registration and profile management

• Collaborative sourcing

• Requester “stores” for secure content zones

• Patent-pending transparent punch-out

• One-click renegotiation of blanket agreements

• Expanded XML support including cXML for easing Ariba migrations

• Time-phased pricing for direct materials

• Commodity intelligence

• Services procurement – contingent labor & bus services, negotiation through payment

• Procurement contracts – global T&Cs standards, negotiation, doc & change mgmt, compliance

• Formula-based pricing & tiered discounts (Advanced Pricing)

• Retroactive pricing including automated invoice adjustments

• Negotiate with subjective scoring and what-if analyses

• Automatic bid scoring and award (Sourcing Optimization)

• Shared services procurement

• Requisition “SmartForms”

• LPN & lot/serial receiving

• Supplier managed banking

• Services procurement – contingent labor & bus services, negotiation through payment

• Procurement contracts – global T&Cs standards, negotiation, doc & change mgmt, compliance

• Formula-based pricing & tiered discounts (Advanced Pricing)

• Retroactive pricing including automated invoice adjustments

• Negotiate with subjective scoring and what-if analyses

• Automatic bid scoring and award (Sourcing Optimization)

• Shared services procurement

• Requisition “SmartForms”

• LPN & lot/serial receiving

• Supplier managed banking

Lower Total Cost of Ownership (TCO)

Run on a Single Global Instance

Consolidate Data Centersand Databases

E-Business On Demand

Low Cost Linux Hardware

App Admin

DB/AS Admin

Sys Admin

HW Admin

App Admin

DB/AS Admin

Sys Admin

HW Admin

Production Midtiers 100% Linux

Production DB RAC Cluster (Unix)

Demo Environments 100% Linux

Development 100% Linux

Outsourced Customers 70% Linux

Production Midtiers 100% Linux

Production DB RAC Cluster (Unix)

Demo Environments 100% Linux

Development 100% Linux

Outsourced Customers 70% Linux

Oracle’s Experience with LinuxOracle’s Experience with Linux

3x Faster, 5x CheaperEasy to Automate en MassHighly Reliable

Needs:Needs:Roles:Roles:OracleOracle

Manages:Manages:

50% Lower Cost50% Lower Cost

50% Better Svc50% Better Svc

Core CompetenceCore Competence

Predictable CostPredictable Cost

YouYouManage:Manage:

AvailabilityAvailability

SecuritySecurity

PerformancPerformancee

ChangeChange

ProblemsProblems

Standardized Open Integration Platform

• Business Events Infrastructure

• Industry Standard Protocols

• Centralized Integration Repository

Simplify B2B Integration, Application Connectivity,

and Process Management

Customers,Customers,

Suppliers,Suppliers,

Products, …Products, …

30 Languages

Multiple Currencies

Customers in 100+ Countries

All Languages Installable in Same Unicode Instance

Support for Statutory and Customary Local Requirements

Lower Total Cost of Ownership (TCO)Run on a Single Global Instance

CustomerCustomerCase StudiesCase Studies

Saved $74M in indirect procurement

Increased central purchasing productivity by 100%

Saved $74M in indirect procurement

Increased central purchasing productivity by 100%

• Leading Private Ivy League University– Largest private employer in Philadelphia with 12,300 employees– 22,300 students; 233,000 living alumni; 151 buildings over 269 acres– $495M annual purchasing spend; over 240,000 transactions

• Live on 11i– iProcurement, Financials, General Ledger, Payables,

Cash Management– Reduced invoice processing cost as much as 98% and processing

time by 40%– Raised Accounts Payable productivity by 20%– Lowered procurement prices by as much as 35%

$1B+ global manufacturer of electronic instruments and electric motors– 7,800 employees at 40 plants worldwide produce 50 million motors– 2,700 users at 27 sites

Chose Oracle over SAP and Baan

Live on 11i– iProcurement, Financials, Discrete Manufacturing, Inventory– Enabled buyers to more effectively leverage purchasing power– Significantly reduced administrative costs

“We conservatively expect our Oracle Internet Procurement initiative to reduce our maintenance, repair, and operating spend by 10%, resulting in millions of dollars in savings and a substantial positive impact on earnings.” -- Bill Lawson, CIO

Reduced procurement costs by 14% Standardized & streamlined processes with 20,000 global suppliers Oracle Procurement expected to handle $500M in annual spend

Reduced procurement costs by 14% Standardized & streamlined processes with 20,000 global suppliers Oracle Procurement expected to handle $500M in annual spend

Granted 35K users access to 800K approved catalog lines Achieved complete integration -- 100% electronic

Granted 35K users access to 800K approved catalog lines Achieved complete integration -- 100% electronic

$132B global business leader– 48 distinct operating units– 305,000 employees in over 100 countries

Live on Procurement 11i– Integrated with Oracle Inventory, Projects, HR– 8 separate operating units: Capital, Aircraft Engines, Medical

Systems, Plastics, Transportation, Lighting, NBC– Instituted in 5 languages

“We have already realized significant savings from implementing Oracle iProcurement 11i and anticipate more.”

-– Gary Reiner, Senior VP and CIO

SummarySummary




StrategicStrategic

HighHigh

MediumMedium

LowLow

Staff Consumption

Val

ue

Val

ue



ControlsControls


DeliveryDelivery






Rethinking the Routine

Rethinking the Routine Automate Routine Tasks, Focus on High-Value Activities




StrategicStrategic

HighHigh

MediumMedium

LowLow

Staff Consumption

Val

ue

Val

ue


Oracle AdvancedProcurementOracle AdvancedProcurement


ControlsControls


DeliveryDelivery






Goal: Achieve World Class ProcurementDrive 60% Higher Savings from Procurement

Shift investment in procurement to higher-value activitiesShift investment in procurement to higher-value activities

Reduce staff by swapping labor for technologyReduce staff by swapping labor for technologySource: Hackett GroupSource: Hackett Group

Performance Indicator

TypicalPurchasing

Organization

World Class Purchasing

Organization

Comparison Summary

FTE per $Billion FTE per $Billion of Spendof Spend 104104 5454 48% Less Staff48% Less Staff

Total Cost of Total Cost of ProcurementProcurement

(as % of Spend)(as % of Spend)1.03%1.03% 0.72%0.72% 30% Lower Costs30% Lower Costs

Suppliers Per Suppliers Per $Billion of Spend$Billion of Spend 7,805 7,805 3,5123,512 More Buying PowerMore Buying Power

Technology Technology Investment per Investment per $Billion spend$Billion spend

$1.1 Million$1.1 Million $1.4 Million$1.4 Million Better InformationBetter Information

Oracle Advanced Procurement

Reduce Spend on Goods and ServicesReduce Spend on Goods and Services

Streamline Procurement ProcessesStreamline Procurement Processes

Enforce Policy ComplianceEnforce Policy Compliance

Information Age Applications

oracle advanced procurement the integrated suite that dramatically cuts all supply management costs...

Documents

reduced costs

oracle financials

purchasing department

sayingwhat customers

cost savings hard

documented cost savings

routine tasks

ralph maier