automating the procure to pay process

8/14/2019 Automating the Procure to Pay Process

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Automating theAutomating the

Procure to Pay ProcessProcure to Pay Process

Garbage at the Speed of LightGarbage at the Speed of Light

oror

Billion Dollar Company SyndromeBillion Dollar Company Syndrome

Paul CyphersPaul Cyphers

COLLABORATE 07COLLABORATE 07

April 19, 2007April 19, 2007


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222007 Solution Beacon, LLC. All Rights Reserved.

Overview of PresentationOverview of Presentation

uu Automating ProcessesAutomating Processes

uu SuppliersSuppliers

uu Items and CatalogsItems and Catalogs

uuRequisitions/QuotationsRequisitions/Quotationsuu Purchase Orders/ContractsPurchase Orders/Contracts

uuReceivingReceiving

uu InventoryInventory

uu Processing InvoicesProcessing Invoicesuu AccountingAccounting

uuReportingReporting


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A u t o m a t in g B u s in e s s P ro c e s s e sA u t o m a t in g B u s in e s s P ro c e s s e s


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Procure to Pay ProcessProcure to Pay Process

PerformSpend

Analysis

EstablishContracts

EstablishSupplier

Catalogs

Sourcing

Operational

Purchasing

Accounts Payable

Treasury

Accounting

Remit toInformation

Create

Supplier

Budget

Information

Perform

QuotationProcess

Establish

Procurement

Sources

Identify Purchase

RequirementMaterial ListsDesigns and

Specifications

IdentifyContractSources

Develop

SourcingL i s t s

SelectRequisition

Templates

ProcurementL i s t s

Generate

Requisition

DecideAwardee

Route for Review

and Approvalof Request

ApprovedRequisition

EstablishPurchase

Prices /D isc .

Complete

Supplier RequestF o rm

Created BlanketRelease

Establish and

UpdateContracts and

Agreements

ExistingContract

Update SupplierInfromation

Update Supplier

Site Information

Update PaymentInformation

Project

Accounting

Existing orDuplicate

PerformQuotation

Process

Create PurchaseOrder

Generate

PurchasingDocuments

UpdatedPurchasing

Information

General

Ledger

Accounting

Cost

Control

Accounting

BudgetReportingFixed Asset

GeneratePurchasing

Analysis

ApprovePurchasing

Documents

ProcessInvoices

Supplier

U p -to

D ate ?

Hold and

Variance ProcessPayment

Register

Create

PaymentBatch

Correct ?

LocateProduct

Catalog

Approved Supplier

Lists andContracts

Issue

Payment

DisbursementRegister

Obtain ItemInformationfrom Manf .

TransmitPurchasing

Documents

Maintain ItemMaster

Information

Supplier

Provides

Goods orService

Receiving

Process

Matching

and ApprovalProcess

PurchasingCorrection

Process

Y e s

Y e s

N o

Specs

TaxAccounting

InventoryControl

Project Cost Control

Cash

Management

N o

ElectronicInvoices

C

C

MonitorPerformance

A

A

Start

B

B

Start

Start

N o

Budgets

Commitment

Reports

Cash FlowReport

Invoice Information

D

D

Y e s


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Procurement PrioritiesProcurement Priorities

uuStrategic lever for bottom line improvementStrategic lever for bottom line improvement

uuAssess for insight and opportunitiesAssess for insight and opportunities

uuSource for cost savingsSource for cost savingsuuEnable buyers and suppliers to turn contracts intoEnable buyers and suppliers to turn contracts into

commercecommerce

uuTransact though management tools in order toTransact though management tools in order to

capture savings, compliance and efficiencycapture savings, compliance and efficiencyuuManage continuous improvement in order toManage continuous improvement in order to

maximize procurement performancemaximize procurement performance


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Automation OpportunitiesAutomation Opportunities

uuBusiness ProcessesBusiness ProcessesWorkflow, BPELWorkflow, BPEL (10%)(10%)

uuEnterprise Service Bus/Web ServicesEnterprise Service Bus/Web Services (30%)(30%)

uuBatch Processing and InterfacesBatch Processing and Interfaces (50%)(50%)

uuAutomation ToolsAutomation Tools (100%)(100%)

ll Automate, Integrate and AccelerateAutomate, Integrate and Accelerate


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Tools for AutomationTools for Automation

uuBusiness Process Management Suite (BPMS)Business Process Management Suite (BPMS)

ll Business Process Modeling (BPM)Business Process Modeling (BPM)

ll Business Activity Monitoring (BAM/BPA)Business Activity Monitoring (BAM/BPA)

uuEnterprise Service Bus (ESB)Enterprise Service Bus (ESB)

llWeb servicesWeb services

ll SQL Programs / InterfacesSQL Programs / Interfaces

uuAutomation ToolsAutomation Toolsll Scheduling ToolsScheduling Tools

ll Automation ToolsAutomation Tools


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Oracle Modules (Advanced Procurement)Oracle Modules (Advanced Procurement)

uu SourcingSourcingimproves strategic sourcingimproves strategic sourcing

uu iSupplier PortaliSupplier Portalsecure portal with suppliersecure portal with supplier

uu Supplier NetworkSupplier Networkelectronic transaction serviceelectronic transaction service

uu iProcurementiProcurementseamless ordering with web interfaceseamless ordering with web interface

uu PurchasingPurchasingstreamline processing along with compliancestreamline processing along with compliance

uu Approval ManagerApproval Managerenhanced approval processenhanced approval process

uu Procurement ContractsProcurement Contractscreates and enforces contractscreates and enforces contracts

uu Service ProcurementService Procurementcontrol and oversight of servicescontrol and oversight of services

uu eCommerce GatewayeCommerce Gatewayallows for electronic transferallows for electronic transfer

uu Purchasing IntelligencePurchasing Intelligenceprovides reports for complianceprovides reports for compliance


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S u p p lie r s a n d E m p lo y e e sS u p p lie r s a n d E m p lo y e e s

D a t a G e n e r a t io nD a t a G e n e r a t io n


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Supplier ManagementSupplier Management

uuSupplier Registration (iSupplier)Supplier Registration (iSupplier)

ll Initial setup and contact updatesInitial setup and contact updates

uuEliminate Supplier Setup form by using BPEL toEliminate Supplier Setup form by using BPEL toexecute process flowexecute process flow

ll Provides immediate update processProvides immediate update process

uuPeriodic updates using batch updatesPeriodic updates using batch updates

uuAllow for immediate updatesAllow for immediate updatesuuUse of data hubs release 12 and TCA approachUse of data hubs release 12 and TCA approach


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Business Process Execution LanguageBusiness Process Execution Language

uuAutomate data generation flowAutomate data generation flow

uuImmediate updates vs. nightly batchImmediate updates vs. nightly batch

updatesupdates

uuEliminate Supplier form for both additionsEliminate Supplier form for both additionsand updatesand updates

uuUpdate supplier information across multipleUpdate supplier information across multiple

systemssystemsuuNotify relevant parties when completedNotify relevant parties when completed

uuBuild rules into processBuild rules into process


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Data HubsData Hubs

uuProvides central data repository for master filesProvides central data repository for master files

uuProvides for sharing consistent informationProvides for sharing consistent information

between applicationsbetween applications

uuDesigned to work with APIsDesigned to work with APIs

uuPart of Fusion MiddlewarePart of Fusion Middleware

uuCurrently for Customers and ItemsCurrently for Customers and Items

uuSuppliers part of Release 12Suppliers part of Release 12TCA modelTCA model


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Enhanced Supplier ManagementEnhanced Supplier Management

uuCloser and enhanced relationship with suppliersCloser and enhanced relationship with suppliers

uuViewed as integral part of supply chainViewed as integral part of supply chain

uuEnhanced sharing of information between entitiesEnhanced sharing of information between entitiesuuSharing information more readily and electronicallySharing information more readily and electronically

uuBuilt in supplier contracts and long termBuilt in supplier contracts and long term

relationshipsrelationships

uuMaximized interaction with supplierMaximized interaction with supplier

uuElectronic communicationElectronic communicationiSupplieriSupplier


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I t e m s a n d C a t a lo g sI t e m s a n d C a t a lo g s


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Item Master/Item Master/

Product Lifecycle ManagementProduct Lifecycle Management

uuMaintaining item master is data maintenanceMaintaining item master is data maintenance

challenge and is ever increasingchallenge and is ever increasing

uuFront end of purchasing processFront end of purchasing process

uuData hub especially with PLM, enhanced ItemData hub especially with PLM, enhanced Item

Master processMaster process

uuGreat application for the use of BPELGreat application for the use of BPEL

uuSupply Chain focus on product lifecycleSupply Chain focus on product lifecyclell Extensive quoting and purchasing integrationExtensive quoting and purchasing integration

uuEssential for most modules in procurement suiteEssential for most modules in procurement suite


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SourcingSourcing

uuEnhanced procurement processEnhanced procurement process

uuUsually part of enhanced supply chainUsually part of enhanced supply chain

uu

Seeded functionality and module in OracleSeeded functionality and module in OracleuuProvides lists of items and preferred suppliersProvides lists of items and preferred suppliers

uuDrives preferred supplier spendingDrives preferred supplier spending

uuShould be tied to procurement contractsShould be tied to procurement contracts

uuAutomation opportunity for efficiencyAutomation opportunity for efficiency

uuRequires maintenance and attentionRequires maintenance and attention


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Supplier CatalogsSupplier Catalogs

uuRequires item strategyRequires item strategy

uuSeeded functionalitySeeded functionality

uuData from multiple sourcesData from multiple sources

uuCan simplify item master processCan simplify item master process

uuCan be updated using EDI 832 (Catalog and Price)Can be updated using EDI 832 (Catalog and Price)

uuXML becoming preferred methodXML becoming preferred method

uuSupplier maintained contentSupplier maintained content

uuiProcurement PunchiProcurement Punch--outout

uuSome organizations using supplier numbers onlySome organizations using supplier numbers only


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R e q u is it io n s a n d Q u o t a t io n sR e q u is it io n s a n d Q u o t a t io n s

D a t a I n t e g r a t io nD a t a I n t e g r a t io n


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Requisition ImportRequisition Import

uuSignificant automation featureSignificant automation feature

uuImports requisition data from numerous sourcesImports requisition data from numerous sources

llOther modules, applications and data sourcesOther modules, applications and data sources

uuProvides for single source of dataProvides for single source of data

ll Eliminates duplicate entryEliminates duplicate entry

uuAlternative to iProcurementAlternative to iProcurement

uuProvides validation and standard formatProvides validation and standard formatuuRemaining steps in process can be automatedRemaining steps in process can be automated

and/or controlled as much as possibleand/or controlled as much as possible


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Self Service PurchasingSelf Service Purchasing

uuiSupplieriSupplier

uuiProcurementiProcurement

uuiExpense, PCard integrationiExpense, PCard integration

uuiPaymentiPayment

uuXML PublisherXML Publisher

uuBudgetsBudgets

ll CommitmentsCommitments

ll Purchasing SpendPurchasing Spend

uuProjects and HR integrationProjects and HR integration


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iProcurementiProcurement

uuSelf service requisitioning, simple or complexSelf service requisitioning, simple or complexllOther alternatives availableOther alternatives available

uuServes wide range of usersServes wide range of users

uuFinally viable as 11.5.10Finally viable as 11.5.10

uuSupplier motivated to assist with integrationSupplier motivated to assist with integration

uuCan be expensive based on licensingCan be expensive based on licensing

uuExtensive personalizationExtensive personalization

uuEssential to driving automationEssential to driving automation

uuKey to getting data right (i.e. account generator)Key to getting data right (i.e. account generator)


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P u r c h a s e O r d e r s /C o n t r a c t sP u r c h a s e O r d e r s /C o n t ra c t s


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Quotation ProcessQuotation Process

uuRequires management, extensive data entryRequires management, extensive data entry

uuSignificant source of dataSignificant source of data

uuDependent on spend analysisDependent on spend analysis

uuBeginning of contract and automation processBeginning of contract and automation process

uuLinks into RFI and RFQ processLinks into RFI and RFQ process

uuHolds significant data for strategy and decisionsHolds significant data for strategy and decisions

uuCan be electronically importedCan be electronically imported

uuUsed in both standard and blanket processesUsed in both standard and blanket processes


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Standard Purchase OrdersStandard Purchase Orders

uuMost often used process, primarily manualMost often used process, primarily manual

uuCan AutoCreate from requisitions but still requiresCan AutoCreate from requisitions but still requires

reviewreview

uuManual requisitions often input at this pointManual requisitions often input at this point

uuCertain data fields can be updated throughCertain data fields can be updated through

automationautomation

uuOften requires second approval processOften requires second approval processuuOften requires many manual steps or workaroundsOften requires many manual steps or workarounds

uuRequires extensive down stream processingRequires extensive down stream processing


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Automatic Blanket ReleaseAutomatic Blanket Release

uuGreatest opportunity for automationGreatest opportunity for automation

uuRequires extensive setup initiallyRequires extensive setup initially

ll Tied to item number and pricing (Advanced Pricing)Tied to item number and pricing (Advanced Pricing)

uuProvides consistent downstream informationProvides consistent downstream information

uuAutomate the AutoCreate processAutomate the AutoCreate process

uuWill combine multiple requisitionsWill combine multiple requisitions

uuDoes not require approval processDoes not require approval process

uuNeeds additional automation checksNeeds additional automation checks


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Services ProcurementServices Procurement

uu Long been problematic for Oracle PurchasingLong been problematic for Oracle Purchasing

uu Advanced Procurement SuiteAdvanced Procurement Suite

llOracle ServicesOracle Services

llOracle Procurement ContractsOracle Procurement Contracts

ll Interfaces with existing modulesInterfaces with existing modules

uuProvides better system processProvides better system process

uuEnforce Contracted Pricing with Embedded TermsEnforce Contracted Pricing with Embedded Termsand Conditions, Contract Authoringand Conditions, Contract Authoring

uuControl and oversight for services spendingControl and oversight for services spending


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R e c e i v i n gR e c e i v i n g


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Self Service ReceivingSelf Service Receiving

uu Limited automation opportunitiesLimited automation opportunities

uu Necessary requirement for controlNecessary requirement for control

uuSOX misconceptionsSOX misconceptions

uu Performed in different waysPerformed in different ways

ll iProcurementiProcurement

ll iSupplier/SANiSupplier/SAN

ll EDI/ASNEDI/ASNuuImpacts to matching and accrual processesImpacts to matching and accrual processes

uuCan be automated through receiving APICan be automated through receiving API


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Evaluated Receipt SettlementEvaluated Receipt Settlement

uuQuick pay for only those items receivedQuick pay for only those items received

ll Pay on ReceiptPay on Receipt

uuSupplier negotiated receiving processSupplier negotiated receiving process

ll Requires trust and proper data exchangeRequires trust and proper data exchange

ll Designed for high volumeDesigned for high volume

uuTied to contractsTied to contracts

uuSupercedes the matching processSupercedes the matching processuuRequires minimal setup by supplierRequires minimal setup by supplier


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I n v e n t o r yI n v e n t o r y


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Inventory TransactionsInventory Transactions

uuHand Held Transactions (Eliminate manual)Hand Held Transactions (Eliminate manual)

ll Inventory movesInventory moves

ll Issues and receiptIssues and receipt

uuAutomate multiple step processesAutomate multiple step processes

uuExecute replenishment programsExecute replenishment programs

uuMaster carton and RFID transactionsMaster carton and RFID transactions

ll Cross DockingCross Docking


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Inventory CountingInventory Counting

uuCycle CountingCycle Counting

uuPhysical InventoriesPhysical Inventories

uuSerialized TransactionsSerialized TransactionsuuLocator TransactionsLocator Transactions

uuSpot ChecksSpot Checks

uuFixed AssetsFixed Assets


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P r o c e s s in g I n v o ic e sP r o c e s s in g I n v o ic e s


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Pay on ReceiptPay on Receipt

uuQuick pay based on receivingQuick pay based on receiving

uuMust be contractualMust be contractual

uuAssociated with Advance Ship NoticeAssociated with Advance Ship Noticell EDI 865EDI 865

ll iSupplieriSupplier

uuWell Established ProcessWell Established Process

uuMust have reconciliation processMust have reconciliation process


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Invoice ApprovalsInvoice Approvals

uuStandard PracticeStandard Practice

ll Copies made and passed for signature (NonCopies made and passed for signature (Non--POs)POs)

uuBest PracticeBest Practice

ll Accounts Payable receives all invoices, entered intoAccounts Payable receives all invoices, entered into

systemsystem

ll Controlled within systemControlled within system

uuInvoice Approval WorkflowInvoice Approval Workflow

uuApproval Manager enhances the processApproval Manager enhances the process

uuTime to process is the significant metric (>10 days)Time to process is the significant metric (>10 days)


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A c c o u n t i n g A c c o u n t i n g

D a t a R e p o r t in gD a t a R e p o r t in g


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Project AccountingProject Accounting

uuMaterial transactions to projectsMaterial transactions to projects

ll Drop shipsDrop ships

ll ExpensesExpenses

uuRequisitions capturing project informationRequisitions capturing project information

uuServices contracts tied to project performanceServices contracts tied to project performance

uuTaxable versus nonTaxable versus non--taxable transactionstaxable transactions

uuUseUse--taxtaxuuExtensive contracts tied to purchasing processExtensive contracts tied to purchasing process


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Fixed AssetsFixed Assets

uuCapitalized TransactionsCapitalized Transactions

ll Receiving services and freight after the factReceiving services and freight after the fact

uuTied to asset accountingTied to asset accounting

ll Account GeneratorAccount Generator

uuIn and out of serviceIn and out of service

uuAsset move transactionsAsset move transactions

uuAsset inventoriesAsset inventoriesuuCoupled with other asset applicationsCoupled with other asset applications


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Accrual AccountingAccrual Accounting

uuMost ignored process in the procure to pay cycleMost ignored process in the procure to pay cycle

uuRequires complete understanding of systemRequires complete understanding of system

uuRequires defined processRequires defined process

ll ReceivingReceiving

llMonth EndMonth End

ll ReconciliationReconciliation

uuOften requires custom reportsOften requires custom reportsuuNeeds to be managed upstreamNeeds to be managed upstream

uuOften done outside systemOften done outside system


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Month End CloseMonth End Close

uuGreat opportunity for automationGreat opportunity for automation

uuRequires synchronization between AP and PORequires synchronization between AP and PO

uuNeed to check multiple parametersNeed to check multiple parameters

ll Period ClosePeriod Close

ll Pending TransactionsPending Transactions

ll Invoice SweepInvoice Sweep

llInvoice HoldsInvoice Holds

uuBeginning of Close ProcessBeginning of Close Process


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ReportingReporting

uuRun Standard Set of ReportsRun Standard Set of Reports

uuXML PublisherXML Publisher

uuBudget Reporting (New Feature)Budget Reporting (New Feature)

uuDiscoverer reportsDiscoverer reports

ll Commitment reportsCommitment reports

ll Budget ReportsBudget Reports

ll Purchasing SpendPurchasing Spendll Spend AnalysisSpend Analysis


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Action PlanAction Plan

uuMap Business ProcessMap Business Process

uuEstablish Priorities for automationEstablish Priorities for automation

uuDecide on which protocol to useDecide on which protocol to useuuPrepare implementation planPrepare implementation plan

uuExecute in a logical sequenceExecute in a logical sequence

uuDonDont try to do it allt try to do it alluuMake sure it works and obtains desiredMake sure it works and obtains desired

resultsresults


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T h a n k y o u !T h a n k y o u !P a u l C y p h e r s

p c y p h e r s @ s o lu t io n b e a c o n . co m

w w w . s o l u t i o n b e a c o n . c o m

R e a l S o lu t io n s f o r t h e R e a l W o r ld .

Questions and AnswersQuestions and Answers

V i s i t O u rB o o t h # 3 3 9

t o R e g is t e r f o r aW o r ld C l a s s

W e e k e n d T r ip !


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G o t O r a c l e ?

G e t t h e B o o k !

I n s t a llin g , U p g r a d i n g a n dM a i n t a i n i n g

O r a c l e E - B u s i n e s s S u i t e

A p p l ic a t io n s 1 1 . 5 . 1 0 +

I t s a v a i l a b l e i n t h e O A U GB o o k s t o r e o r o n l i n e !

S ig n u p f o r t h eS o l u t i o n B e a c o n N e w s l e t t e r

w w w . s o l u t i o n b e a c o n . c o m