r12 procurement. agenda what is new in r12 purchasing and iprocurement intro to sourcing,...

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R12 Procurement

Agenda

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

Portal• Q&A

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

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

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• Buyer’s 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.

Enhanced Catalog Agreement Management Overview

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

• 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

Enhanced Catalog Agreement Management Benefits

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.

Content Security EnhancementsPartition Content

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

Security.

CataiCataCatalog Smart Forms

Content Zone

Realms

11.5.10 Release 12

iProcurement – Content SecurityWhat’s New?

Ca

teg

ory

Supplier

....

Supplier Y

Supplier X

Cat

egor

y A

Cat

egor

y B

Cat

egor

y C …

• The rules: • Include items from

supplier X• Include items from

category C

Correspond to the red block

of available content.

Example: Local Content Inclusion Rule


Ca

teg

ory

Supplier

....

Supplier Y

Supplier X

Cat

egor

y A

Cat

egor

y B

Cat

egor

y C …

• 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).

Example: Local Content Exclusion and Inclusion Rules


Include specific suppliers

Include specific categories

Make content accessible to specific user groups

Let’s Look at how category rules are defined:


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).

Example: Include Specific Categories (local content):





Let’s Look at how supplier rules are defined:


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.

Example: Include Specific Suppliers (local content):





• Once content rules have been completed, the Content Zone may be assigned to all, or some, users:


Assign Content Zone to specific Responsibilities, Operating Units,

or all Users.

• 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.

Content Security EnhancementsBenefits

Requester Driven Change Order Mgmt

• Change Order Approval and Routing Based on Tolerances

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

• PO changes are routed to to buyer for approval• Bypass approval for changes within tolerances

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 buyer’s 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

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

Usability EnhancementsParagraph Search Skin

2 column layout ensures sufficient spacing with

item image

Price, UOM and action buttons appear on last rows of each

item description

Images may be hidden. When they are hidden,

three columns of descriptors appear

Usability EnhancementsParagraph Search Skin

3 columns format allows more

information to be displayed

Usability EnhancementsSearch Skins – Grid Format

The grid format allows users to differentiate between similar items more effectively.

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

Advanced Approvals Enhancements Example – Approval List

• 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.

Parallel Approval

Takes you to add approver/viewer, delete approvers

Advanced Approvals Enhancements Example – Add Viewers

Option to add Viewers to the Approval List

Advanced Approvals Enhancements Example – Add Viewers

Viewer

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

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

Oracle Purchasing – Delta Summary

• Professional Buyer’s 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

Professional Buyer’s 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

Professional Buyer’s Work Center Customization and Extensibility Options

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

• 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.

Professional Buyer’s Work CenterBenefits

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

Document StylesFeature Description

Enable/Disable Features

Assign Display Names to Document Types

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.

Multi-Org Access Control Feature Description

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

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 -> Global Security Profile (Function PERWSSCP-GLOBAL)

Document Printing Enhancements Feature Description

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 12.0

New in Release 12.0

Communicate Document Attachments to Suppliers

Attachment Type11i10 and

Beforer12

Notes to Supplier

Long/Short Text

Files (e.g. MS Word, Drawings)

URLs

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

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

NoDo Not Allow Contingent Workers to Create and Approve Purchasing Documents

Compliance to Packaging Constraints

REQIMPORT

Min-Max

PURCHASE ORDER

New Process

Inventory

SUPPLIERS

Purchasing

1. Min-max creates Replenishment Request for 116 Eaches

3. PO placed for 10

cases of 12

4. PO complies to Supplier packaging constraints

2. Apply Constraints • Order Modifier• UOM Conversion• RoundingNew Quantity = 10New UOM=Cases of 12

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

Requisitions

Blanket

AgreementPricing

Transactions

Orders

Pricing Engine

Oracle Advanced Pricing

Line Price

Price Break

Custom API

Price List

Formula

Modifiers

Leverage Oracle Advanced Pricingto model Complex Pricing Scenarios

Model Complex Pricing for Blanket Line Items

Benefits

• Bring Agreements with Complex Pricing Requirements Online• Accurate Pricing of Transactions without the need for Manual Overrides• Decrease Supplier over billing• Save Cost by ensuring all available discounts are applied

Blanket Purchase

Agreement

Mass Re-pricing of Purchasing DocumentsFeature Description

Advanced Pricing

Price Lists, Modifiers

Custom Pricing API

Orders

New in Release 12.0

Revise Pricing Data

Auto-Approval Tolerances for Change Orders

New tolerance attributes introduced

Set tolerances by document type

Eliminates need for Workflow Customizations

Advanced Approvals Support for RequisitionsDescription

• Parallel Approvals• Notifications are sent out to multiple people simultaneously

to speed up the approval process

• Position Hierarchy Support

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

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

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

Advanced Approvals SupportExample

• Business Rules:• If requisition < $5,000, then requires approvals up to first

two positions up based on position hierarchy

―If the item’s category is [IT.EQUIPMENT] then require approval from IT Approval Group

―IT Approval Group is in parallel to position hierarchy approval chain

Advanced Approvals SupportExample – Approval List

• 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.

Since req total is between 0 and 5000, the first 2 positions up (based on the Position Hierarchy

Rule) is generated

Approval Group returned in Approval List since Item Category

is [IT.EQUIPMENT]

Advanced Approvals SupportExample – Approval List

• 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.

Parallel Approval

Takes you to add approver/viewer, delete approvers

Advanced Approvals SupportExample – Add Viewers

Option to add Viewers to the Approval List

Advanced Approvals SupportExample – Add Viewers

Viewer Icon

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

Sourcing At-a-Glance

Buying Professional

Supply BaseLOB Stakeholder

“Strategic sourcing is emerging as the leading strategy to control costs, capture innovation, and maximize performance.”

Identify Suppliers & Opportunities

Conduct On-Line Negotiations

Analyze & Award

Approve & Issue

Define Strategies & Negotiations

Source More of Your SpendSource More of Your Spend

Source for Lowest Total Cost

Source for Lowest Total Cost

Create Immediate & Long-Term SavingsCreate Immediate & Long-Term Savings

Oracle Sourcing & Sourcing Optimization

PurchasingContract Mgmt FinanceOperations

Identify Suppliers & Opportunities

Conduct On-Line Negotiations

Analyze & Award

Approve & Issue

Define Strategies & Negotiations

Increase the Effectiveness & Efficiency of Strategic Sourcing

Efficient Online NegotiationsSlash Cycle Time by Eliminating Manual Processes

View new incoming View new incoming supplier messages supplier messages

and incomplete and incomplete taskstasks

Drill into individual Drill into individual sourcing eventssourcing events

View responses and monitor View responses and monitor bidding activity in real-timebidding activity in real-time

• 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

Facilitated Online Bid ComparisonMake Faster Award Decisions

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%

> 14 (100)10-14 (75)5-10 (50)

< 5 (0)

15 35

Number of shipping locations

40%> 19 (100)11-19 (50) 1-10 (25)

35 40

Total Score Calculated by Oracle Sourcing

75

• Automatically eliminate suppliers that score below minimum requirements

• Automatically exclude non-compliant suppliers from shortlists

Automatic Scoring of RequirementsQuickly Identify the Best Qualified Suppliers

Support Compliance and Oversight Requirements

Centralized Terms LibraryEnsure Consistent Contract Standards

Central

Terms

Library

Central

Terms

Library

• 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

No

IndustrySegment?

Yes

Add Clauses• High Value• Insurance

Over $50k?

CommercialGovernment

Responses Drive Responses Drive Clause SelectionClause Selection

.

.

.

Template

Contract

Contract

Draft

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

Legal Supplier

Automated MS Word SynchronizationQuickly and Accurately Integrate Offline Redline Edits into Contracts

Contract Administrator

Synchronize

Legal Review

Supplier Acceptance

Download

• 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

• Automatically substitute negotiated terms in printed document

• Easily tailor to each business unit’s standard format – logos, headers, layout, etc.

• Generate standard .pdf business document

Automatic Document GenerationEliminate Manual Re-Keying

Variable Substitution

Clause Usage AnalysisSearch Contracts To Analyze Clause Usage & Modification

All policy deviations are reported to approvers alongside clause deviations in the Contract Deviations Report, guiding approvers to exceptions in the contract along with the standard values.

• Improved legal discovery on contracts across multiple organizations

• Better insight into effectiveness of current standard language usage

• Enhanced visibility into contract standards requiring revision

Quickly determine Quickly determine number of incidentsnumber of incidents

Identify and view Identify and view contracts with non-contracts with non-standard clausesstandard clauses

• Based on contract T’s & C’s

• 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

• 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

Example

Deliverables

DefineDefineDeliverableDeliverable

SendSendNotificationNotification

ManageManageDeliverableDeliverable

Escalate WhenEscalate WhenNecessaryNecessary

Contract Deliverable TrackingMonitor Supplier Performance

• Alert Any Compliance Risk and Highlight Non-Compliance

• Review Compliance Status Before Authorizing Payments

• Track Approval History

Deliverable status Deliverable status at a glanceat a glance

Clearly defined Clearly defined ownershipownership

Track internal commitments Track internal commitments & contractual obligations& contractual obligations

Manage Contract Deliverables Track Contractual Responsibilities and Key Administrative Tasks

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