<Insert Picture Here>

What’s New in E-Business Suite Release 12:

The Procurement Professional’s Release

Michael Webb

Snr Product Strategy Manager – Fusion Procurement

• Procurement Challenges & Opportunities

• How Oracle Delivers

• A Look at Release 12

Agenda

Source Purchase Settle

• Supplier selections

• Negotiations

• Requisitions

• Approvals & Orders

• Receiving

• Payments

• Supplier Performance

• Expirations & Renewals

Manage Contracts, Categories & Suppliers

Procurement At-a-Glance

Business Challenges

Buyer

HR Facilities Operations

Supplier 2Supplier 1

. . .Other HR Facilities Operations

Supplier 4Supplier 3

. . .Other

• Contract leakage

• Adherence to terms and conditions

Contract Compliance

• Manual, time-consuming & error prone processes

• Inability to manage exceptions

Routine Tasks

Business

Unit A

Business

Unit B

Executive Mandates

• Cut costs

• Reduce resources

• Outpace inflation

Strategic Initiatives

• Outsourcing

• Accelerated product development

Finance & Legal Requirements

• Regulatory compliance

• Budgeting & planning

A Decade Of Procurement InnovationWhat’s Wrong With This Picture?

20051995 2000

Employees & Business Managers

Sourcing Mgrs & Budget Holders

Suppliers & IT Departments

Legal and Contracts Managers

Accounts Payable

Data Analysts & Category Managers

Data Analysts & Project Managers

HR & ITProfessional Buyer

Spend Data Management

Contract ManagementAnalytics

Services ProcurementSourcingeInvoicing

Supplier EnablementeProcurement

Procure-to-Pay

The Future Of Purchasing & SupplySourcing Strategies Become a Critical Source of Competitive Advantage

Source: Center For Advanced Purchasing Studies, THE FUTURE OF PURCHASING AND SUPPLY: A FIVE AND TEN-YEAR FORECAST

Number of key

suppliers fall

New skills needed to

operate in globally complex

and uncertain world

Sales

SuppliersBuyer

Senior mgmt’s expectations for purchasing grow

CPO

Perf. metrics

better aligned w/

company obj.

Technology key to

globalization and sourcing

strategies enterprise wide

More flexibility & external

customer focus required to

maximize supplier contributions

Rqmts for

increased global &

regional capabilities

IT

Program

MgrSourcing

Mgr

Aberdeen Group, The CPO Agenda: Five Strategies

for Organizational Transformation.

1. Improve supplier develop-ment & collaboration

2. Enhance and integrate procurement automation infrastructure

3. Adopt low cost country supply initiatives

4. Transition to a center-led procurement organization

5. Increase spend under management and improve spend compliance

The Lives of Procurement Professionals Are Already Changing

A.T. Kearney’s Assessment of Excellence in Procurement

The CPO’s AgendaProcurement Organization Focus(% of Time Involved In Strategic Activities)

2 yrs ago Now 2 yrs from now

50%

39%

67%

52%

79%

67%

Leaders

Followers

• Procurement Challenges & Opportunities

• How Oracle Delivers

• A Look at Release 12

Agenda

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

Spend

Categories

Indirect

Goods

Direct

Materials

Engineered

Goods

Services Approval

Routing

Touchless

Buying

Automated

Payment

Enforce Policy Compliance

Budget-Based

Procurement

Contract

Management

Supplier

Performance

Reduce Spend on Goods and Services

Category

Management

Online

Sourcing

Spend

Analysis

Streamline Procurement Processes

SupplierCollaboration

Settlement

Orders

Profile

Management

Supplier

Network

Logistics

Supplier

Portal

Answering

Supplier Queries

Helping

Requesters

Managing

Content

Creating

Manual Orders

Project-

Based

Procurement

Monitor &

Review

Controls

Strategic

High

Medium

Low

Value

Value

Release 12 -- Rethinking the Routine Automate Routine Tasks, Focus on High-Value Activities

Oracle AdvancedProcurement

Supply

Optimization

Spend

Analysis

Contract

Negotiation

Internal

Benchmark

Delivery

Oracle Purchasing SolutionFree Buying Professionals to Focus on Strategic Activities

• Pre-Defined

Policies

• Approved

Supplier Lists

• Negotiated

Contracts

• Blanket

Agreements

Spend

CategoriesSuppliers

Exceptions

• Supplier

Information

• Drop Ship

Details

Consumables

& Supplies

Engineer

to Order

Manual

Approval

Supply Base Management

Flexible Procurement AutomationFlexible Procurement Automation

Demand Workbench

Business

Services

Parts &

Components

Indirect

Goods

Direct

Materials

Engineered

Goods

Consolidate All DemandConsolidate All Demand

Receive, Reconcile,and Pay

Receive, Reconcile,and Pay

Services

Generate Order

Documents

Generate Order

Documents

Approve & Allocate

Approve & Allocate

• Procurement Challenges & Opportunities

• How Oracle Delivers

• A Look at Release 12

Agenda

Advanced Procurement R12The Procurement Professional’s Release

� Unified Workcenter For All Procurement Responsibilities

� Improved Business Processes Flexibility and Utilization

� Expanded Supplier Management and Enablement

Role-Based Access to DashboardsProvide Decision Makers With Immediate Access to Information

Commodity Manager

Example:

Supplier Management

Vendor Manager

• Manual invoices rate

• Return transactions

• PO purchases amount

• Price change amount

• PO match invoice amount

Role-Based Access

Budget Holder

CPO

Sourcing

Supplier Scoring

Cost Center Spend Mgmt

Supplier Mgmt

• View exceptions across multiple applications and operating units

• Create, implement, and execute agreements

• Analyze performance of procurement & suppliers

NegotiationsContracts & Agreements

Invoicing & Payment

Supplier Management

RequisitionsPO

Execution

• Exceptions• Agreements• Performance Analysis

Professional Buyer’s

Work Center

Single Access Point for All Responsibilities

Professional Buyer’s Work CenterEnable Command & Control for the Procurement Professional

Professional Buyer’s Work Center (cont.)Enable Command & Control for the Procurement Professional

• Intuitive UI and streamlined workflows

• Status at-a-glance

• Multi-Org Access Control for shared services

• Extensive options for personalization

Professional Buyer’s Work CenterPurchase Order Management

Easily Access All Levels

of the Order

Directly Submit or

Specify Additional

Approval Details Prior to

Submission

Professional Buyer’s Work CenterPurchase Order Management

View

Schedules/Distributions

across all Lines

Professional Buyer’s Work CenterPurchase Order Management

• Optionally Enter

Data in Single

Page Format

Enter Schedule and

Delivery Information

along with Line Details

Advanced Procurement R12The Procurement Professional’s Release

� Unified Workcenter For All Procurement Responsibilities

� Improved Business Processes Flexibility and Utilization

� Expanded Supplier Management and Enablement

BU 1

SourceRequest Buy Pay

BU 2

BU 3

Decentralized

BU 1

SourceRequest Buy Pay

Shared

Service

BU 2

Central Sourcing, Local Execution

BU 1

SourceRequest Buy Pay

Shared

Service

BU 2

Automated

financial

reconciliation

Complete Shared Services

BU 1

SourceRequest Buy Pay

Shared

Service

BU 2

Automated financial

reconciliation

Transfer to Local Business Unit

Multiple Procurement ModelsSelect Model Appropriate for Each Spend Category

Multi-Org Access Control

OLD PROCESS

Application

Responsibility A

Operating unit X

Application

Responsibility B

Operating unit Y

Application

Responsibility C

Operating unit Z

NEW PROCESS

Application

Responsibility A

Operating unit Y Operating unit ZOperating unit X

Document Styles Standard Style Definition

• Standard Style:

� Seeded style

� Least restrictive

� No Complex Payments

support

� Documents accessible from

both the Work Center and PO

Forms

� Pre-R12 and new documents

• Non-standard Styles:

� Any new styles in R12

� Documents accessible from

Work Center only

Document StylesProcess – Printed Document

Display Name from

Style Used in External

Facing Documents

Complex Requisition Approvals Graphically View Approval Chain & Requisition Status

Support for Viewers

• Keep people informed of business purchases and decisions without requiring a response

• Maintain key stakeholder engagement & oversight

Parallel Approvals

• Notify multiple approvers of a requisition simultaneously

• Reduce approval cycle time

Position Hierarchy Support

• Define approval routing structures that remain stable even if individuals / organizational structures change

• Minimize workflow maintenance

Shareable AgreementsExpand Contract Utilization

Global Agreement

• Centrally manage and share agreements within or across business units

• Capture base pricing, discounts, payment terms, volume agreements(cumulative and retroactive pricing on received / invoiced goods supported)

• Automatically utilize agreement and pricing to issue orders

Goods

Services

Business

Unit 1

Internal /External Approval

Local Amendments

Local Agreement

Volume Purchasing Based

on Standard Agreement

Volume Purchasing Based

on Localized Agreement

Business

Unit 2

Business

Unit 3

Drive Consistent Execution of NegotiatedTerms & Conditions in All Spend Categories

Procurement for Complex ServicesSource to Settle Support for Complex Payments

Request for Request for

ServiceService

• Milestones

• Rates

• Advances

• Retainage

• Lump sums

• Timecards

• Receipts

•Work

confirmations

• Terms

• Recoupment

of advances

• Release of

retainage

• Agreements

• Invoices

• Receipts

• Facilities services

• Landscaping services

• Architectural services

• Track projectdetails

Supplier Collaboration

Negotiate Negotiate

AgreementAgreementAdvancesAdvances ReceiptsReceipts InvoiceInvoice PaymentPayment

Negotiate Payments:

Make Payments:Examples: Validate: Match: Enforce:

Procurement for Complex ServicesDefine Progress Payment Schedule

• Suppliers provide timecards, receipts, and work confirmation information that are matched with agreements and invoices

• Settlement drives release of recoupment of advances & retainage

Define progress payments Define progress payments -- rate, rate,

lumpsum & milestone pay itemslumpsum & milestone pay items

Advanced Procurement R12The Procurement Professional’s Release

� Unified Workcenter For All Procurement Responsibilities

� Expanded Business Processes and Utilization

� Expanded Supplier Management and Enablement

Prospective Supplier Registration Reduce Overhead with Self-Service Registration

Supplier RequestsSupplier Requests

• 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

Supplier RegistrationSupplier Registration Review & ApprovalReview & 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-InterfaceStreamlined Supplier Profile Management

Create supplierCreate supplier

To Do List for requestsTo Do List for requests

Search or drill down to supplier detailsSearch or drill down to supplier details

Unified Catalog ArchitectureEstablish a Single Authoring, Ordering, & Maintenance Environment

Punchout &

transparent

punch-out

Catalog AdminBuyer

Supplier

Sourcing User

Requester

Buyer

CatalogCatalog

Bulkload / online author & update content

Upload and maintain content

View, approve, add, edit, and delete items

Add new items from award lines

Approval workflows

Reduce Maintenance Efforts and Drive Spend Visibility

Purchasing Mgr

Within Requester’stolerance?

Route to Requester’s hierarchy

PO updated & submitted to approval workflow

Route changes to Buyer

Route changes to buyer’s hierarchy

Within Buyer’s

tolerance?

Yes

No

No

No

Yes

Yes

PO Approved

Approver

Buyer

PO changes within limits?

Exception Processing

Touchless Processing

eMail

OSN*/ XML / EDI

Supplier Portal

Fax

Tolerance Based Auto-ApprovalsAutomate Processing of Routine Change Requests

Supplier Change Orders / Requests

Self-Service Supplier ScorecardingDrive Improvements w/ Access to Supplier Performance Management

Spend analysis trendSpend analysis trendSupplier management KPIsSupplier management KPIs

New in 11i.9…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

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

• 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

Evolution of Oracle Advanced Procurement

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

New in R12…

• Professional Buyer’s WorkCenter

• 2-way MS Word integration

• Complex requisition approvals w/ requestor-directed procurement, parallel & position hierarchy approvals

• Team scoring of sourcing rqmts

• Procurement for complex svcs

• Prospective supplier registration

• Supplier mgmt user interface for supplier profile management

• Unified catalog architecture

• Content security w/ content zones

• Tolerance based change order auto-approval

• Self-service supplier scorecarding

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

Evolution of Oracle Advanced Procurement

PLUS…

• Shared services support

• Supplier catalog authoring

• Advanced pricing integration

• eTax integration

• Document styles

• Negotiation styles

• Negotiation drafts

• Automatic scoring of requirements

• Supplier knockout criteria

• Payment advances & recoupment

• Progress payments based on milestones, rates, & lump sums

•Work confirmations

• Retainage & authorization of release

• PO lifecycle tracking

• Non-PO invoices

• Clause usage & compliance analysis

• Supplier-managed user admin

The preceding is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into any

contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decisions.

The development, release, and timing of any

features or functionality described for Oracle’s

products remains at the sole discretion of Oracle.

at the Applications and Industries lounges

-Oracle Open World 2007

� Oracle Advanced Procurement, Overlook 3, Monday 3:30p.m. -5:30 p.m.

� All Applications Tools & Technology

� Financial Services, Retail and Communications Industries

� CRM On Demand, Business Processing & Information Tech Outsourcing

� AppsLab & Web 2.0

Moscone West - 2nd floor (overlooks)

Meet the Experts

Other Procurement Strategy Sessions

Monday November 12, 2007

3:15 p.m. Oracle E-Business Suite Advanced Procurement: Oracle Purchasing Overview and Release 12 Update -Moscone West, 2003

4:45 p.m. Oracle E-Business Suite Advanced Procurement: Building the Business Case for Upgrades to Release 12 -Moscone West, 2003

Tuesday November 13, 2007

3:15 p.m. Oracle E-Business Suite Advanced Procurement: Oracle iProcurement and Oracle Services Procurement Overview and Release 12 Update - Moscone West, 2003

Wednesday November 14, 2007

9:45 a.m. Oracle E-Business Suite Advanced Procurement: Oracle Sourcing and Oracle Sourcing Optimization Overview and Release 12 Update - Moscone West, 2003

Thursday November 15, 2007

1.00 p.m. Oracle E-Business Suite Advanced Procurement: Managing Complex Services with Release 12

– Moscone West 2003

<Insert Picture Here>