oracle supplier management complete, open, flexible, integrated

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Oracle Supplier ManagementComplete, Open, Flexible, Integrated

Safe Harbor Statements

The following 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.

• Introductions (9.00 AM – 9.10 AM)

• Why Supplier Management? (9.10 AM – 9.30 AM)

• Functional Overview (9.30 AM – 10.00 AM)

• Supplier Lifecycle Management Demo (10.00 AM – 10.30 AM)

• Break (10.30 AM – 10.45 AM)

• Supplier Lifecycle Management Demo (10.45 AM – 11.30 AM)

• SLM Exercises (11.30 AM – 12.30 PM)

• Lunch (12.30 PM – 1.30 PM)

• Supplier Hub Demo (1.30 PM – 3.00 PM)

• Break (3.00 PM – 3.15 PM)

• SH Exercises (3.15 PM – 4.15 PM)

• SLM and SH Technical Overview (4.15 PM – 4.45 PM)

• Wrap up (4.45 PM – 5.00 PM)

Agenda


Why Supplier Management ?

1

2

3

Reconsider Cap Ex

Hiring Freeze

Conserve Cash

Cut Spending

Risk and Compliance

Supplier Risk

Renegotiate Contracts

Spend Management

Effectiveness

1

2

3

CPOs being asked to do more with less

Immediate priorities for CPO

Responding to Fluctuating Market

• Track Potential Risks Arising from 3rd Party Relationships

– Strategic Risk– Reputation Risk– Operational Risk– Transaction Risk– Credit Risk– Compliance Risk– Other Risks

• 3rd Party Relationship Oversight – Periodic Performance Monitoring

Compliance & GovernanceFDIC Regulation - Managing 3rd Party Relationships in Financial Institutions

• Corporate business practices extended up supply chain– Legal / Regulatory– OFAC / SDN Watch List– Environmental / Carbon Footprint– Accreditation– Ethical / Marketing– Manufacturing Quality Standards– IRS EIN Verification

Environmental Policies

Compliance & GovernanceRisk Mitigation

Child Labor Laws

ISO 9000 / ISO 14000

OFAC - SDN List

• Managing Corporate Social Responsibility– United Nations Declaration of Human Rights– U.N. Convention on the Rights of the Child– International Labor Organization (ILO) conventions– Electronic Industry code of conduct – International Organization for Standardization – Occupational Health and Safety Assessment– Health and Safety Executive

– …

• Quantitative assessment:How well is a Supplier meeting my KPIs?– “To register all organic growers in countries as

part of our target to ensure all organic growers are registered to Nature's Choice”

– “To audit all organic suppliers as part of our target to ensure that 100% of organic suppliers comply with Nature's Choice”

• Qualitative feedback:What do my folks tell me about supplier performance?– What do my Buyers think about this supplier?– Do my requisitioners find the supplier easy to

deal with and flexible when needed?

Company ScorecardAuditing Supplier Performance for Company KPIs

• Diversity a growing global trend– Procurement spend allocated to different

supplier classifications– “Good corporate citizen”– Key requirement for U.S. Federal & State

governments

• Growing global trend– London 2012 Olympics– “…open to a diverse range of suppliers including

Small and Medium-sized Enterprises (SMEs), social enterprises, and businesses owned by BAME people, women and disabled people.”

Identifying OpportunitiesVendor Classification Status

How much does unstructured data cost you?

In 1 hour…• 240 businesses will change addresses • 150 business telephone numbers will change or be disconnected • 112 directorship (CEO, CFO, etc.) changes will occur• 20 corporations will fail • 12 new businesses will open their doors• 4 companies will change their name*

*Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics, Gartner, A.T Kearney, GMA Invoice Accuracy Study

Supplier Management Cost• Mitigate risk and on-board suppliers

quickly

• Provide self-service administration to suppliers

• Streamline communication with suppliers

Poor Visibility• Track supplier performance evaluations,

qualifications and deliverables

• Know which suppliers are dependable and cost effective

• Be assured that spend analytics is complete and accurate

Compliance & Governance• Assure that suppliers are meeting the

code of conduct

• Ensure that suppliers are adhering to all laws, regulations & standards

• Provides visibility to viability of suppliers

Fragmented Data• Unify duplicated, incomplete, inaccurate

data held within multiple, disparate systems

• Consolidate & federate shared information across instances

Supplier Management

Supplier ManagementBusiness Challenges


Oracle Supplier Management Solution

Enabling More Effective Supplier ManagementWhat’s New in Procurement & MDM

Results:

Consolidate & Cleanse Supplier Information for Effective Spend Analytics

• Foundation stone to improve accuracy of analytics results

Manage Suppliers through Entire Supplier Lifecycle

• Streamlines qualification process

• Improves Sourcing effectiveness

• Enables controlled assessment

Reduce Cost of Supplier Management

• Maintain single supplier definition

• Eliminate redundant compliance checks

Procurement

Supply Supply ChainChain

HumanHumanCapitalCapital

Master DataManagement

FinancialsFinancials

ApplicationsApplicationsTechnologyTechnology

E-Business Suite

Oracle Supplier Management Solution

Supplier Profile, Classification, Bank Detail, Relationship Maintenance

Ongoing Assessments (eRFx/Survey)

Contract

Supplier Search

Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey )

Supplier Inactivation

OBSOLETE

InvitationSupplier Self-Service

Registration

Supplier Performance Analysis and Management

SupplierMaster

SupplierMaster

&

• Registration and Onboarding

• Supplier Profile Management

• Qualification and Notification Management

• Compliance and Profile Audit

• Supplier Assessment and Performance Management

Supplier Lifecycle

Management

Consolidate - Data Import Mgmt, Source System Mgmt, Cross Reference

Cleanse - Matching, D&B Data Enrichment

Master - Supplier Classifications & Relationships

Share - Data Publication and Synchronization, Web services, Security

Govern - Hierarchy Mgmt, Task Mgmt, Classification Mgmt

Supplier Hub

Oracle Supplier MDMSupplier Lifecycle Management & Supplier Hub

Supplier Lifecycle

Management

Supplier Lifecycle

Management

Supplier Hub

Supplier Hub

LegacyLegacy

Oracle Supplier Management SolutionDeployment Options

(a) Supplier Management with Stand-alone MDM instance

(a) Supplier Management with Stand-alone MDM instance

(b) Supplier Management with Existing EBS Instance(b) Supplier Management

with Existing EBS Instance

Oracle Enterprise Master Data ManagementThe most complete MDM offering on the market today

Data Governance Manager

Oracle Fusion Middleware

Analytical MDM

Analytical MDM

Operational MDM AppsOperational MDM Apps

Operational

SystemsC

usto

mer

Cus

tom

er

OracleProduct

Hub

OracleProduct

Hub

Fin

anci

alF

inan

cial

Oracle / Hyperion

Data Relationship Management

Oracle / Hyperion

Data Relationship Management

OracleCustomer

Hub

OracleCustomer

Hub

EBSEBS

SiebelSiebel

SAPSAP

Custom AppsCustom Apps

External AppsExternal Apps

Pro

duc

tP

rod

uct

Ana

lytic

alA

naly

tical

Application Integration Architecture

OracleSite Hub

OracleSite Hub

PeopleSoftPeopleSoft

JDEJDE

BudgetingBudgeting

Analytical

Systems

DWDW

BI &DatamartsBI &Datamarts

PlanningPlanning

Financial Consolidation

Financial Consolidation

DashboardsDashboards

OracleSupplier

Hub

OracleSupplier

Hub

Site

Site

Sup

plie

rS

uppl

ier

17

“…companies are spending…between $585 and…$1,000 per supplier annually…however, when information, enabled

by technology, becomes visible across the organization, costs per supplier quickly dwindle to below $150 per

supplier.” AMR Research, June 2009

Oracle Supplier Management SolutionSummary

Improve Supplier Performance Management Reduce Supplier Management Costs Simplify Supplier Selection and Reduce Risk Enhance Supplier Compliance Management Increase Accuracy of Spend Analysis Streamline Procurement Processes


Functional Overview



Contract

Supplier Search



OBSOLETE


Registration


SupplierMaster

SupplierMaster

&

Supplier DirectorySupplier Directory

Supplier Directory

Supplier ProfileFixed Attributes + Extensible Attributes

Supplier Profile

Company Level

Address Level

Site/OU Relationship Level

Item/Supplier Relationship Level (PIM)

Extensible Attributes

Insurance InformationWorker Compensation, Liability, Auto, EMR

Compliance InformationEnvironmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant

Quality SystemsISO 9001, ISO 14001, ASA 100, FAR 145

Production CapacityMachinery, Average Capacity, Max. Capacity

Logistics InformationStandard Delivery Time Guarantee

Transport Insurance Type

Freight Forward Detail

Supplier Item Number, Order to Ship Lead Time, Supplier Capacity,

RoHS Compliant, WEEE Compliant

Organization• D-U-N-S Number, Legal Structure • Incorporation Year, Chief Executive Name • Total Employees, Annual Revenue• Business Classifications• Products and Services• …

Banking Details• Account Number, IBAN, Currency, Type• Bank Name, Branch Name• …

Purchasing Terms and Controls• Ship-To Location Bill-To Location Ship Via• Pay On, Freight Terms• …

Invoicing Terms and Controls• Invoice Currency, Amount Limit• Match Options, Tolerance• Hold Options (All,Unmatched,Unvalidated)• Payment Terms, Terms & Pay Date Basis• …

Payment Controls• Method, Delivery Channel• Payment Format, Settlement Priority• …

Receiving Controls• Receipt Routing, Match Approval Level• Quantity Tolerance, Days Early/Late Receipt• …

Tax Details• …

Fixed Attributes

Unstructured Data• Word, Excel, PDF, etc.

Unstructured Data

Questionnaires• RFI/Questionnaires (Supplier & Internal)• Deliverables

Questionnaires

Computer Supplies, Inc.

Vision, San Francisco, US

Operating Unit

Vision, Dallas, US

Operating Unit, Inventory Organization

Vision, Atlanta, US

Operating Unit

CSI, New York, US

Supplier Organization Level

Buyer Company

Supplier Address Level

Supplier Site/OU Level

Vision Computer Corporation

Vision, San Jose, US

Inventory Organization

Vision, Fremont, US


Vision, Stratford, US


CSI, Shanghai, China

Supplier Company

Insurance InformationWorker Compensation, Liability, Auto, EMR

Quality SystemsISO 9001, ISO 14001, ASA 100, FAR 145

Compliance InformationEnvironmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant

Logistics InformationStandard Delivery Time Guarantee

Transport Insurance Type

Freight Forward Detail

Item/Supplier Level Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, RoHS Compliant, WEEE Compliant

Production CapacityMachinery, Average Capacity, Max. Capacity

Extensible Supplier ProfileCompany, Address, Site, Item Level Extensions

22

A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A17 A18 A19 A27 A28 A29 A30 A35 A36 A37

Standard Profile

Attributes

Supplier Attributes:

Values:


Strategic BuyerStandard Buyer Administrator Supplier User

Extended Profile

Attributes

Access to Supplier ProfileControlling who can view/edit what Supplier Information

23



Contract

Supplier Search



OBSOLETE


Registration


SupplierMaster

SupplierMaster

&

New Supplier Registration and

Qualification

New Supplier Registration and

Qualification

New Supplier Registration and Qualification

24


New Supplier

Prospect Self-Registration

Vision Computer

CorporationAdmin

Review request, Attach Questionnaire


New Supplier

Vision Computer

Corporation

Supplier Evaluation, Scoring, Shortlist and

Approval

Supplier and Evaluator Response mastered as profile

Supplier Master Profile

SupplierMaster

SupplierMaster

System Notification to New Supplier

Evaluation Team

Respond to Questionnaire

Prospect Supplier Request



New Supplier Registration and Qualification Process Flow

25

Duplicate checks



Contract

Supplier Search



OBSOLETE


Registration


SupplierMaster

SupplierMaster

&

Supplier Profile Management

Supplier Profile ManagementSupplier Profile Management


Supplier

Updates using self-service Portal

Vision Computer

CorporationAdmin

Reviews and Approves Changes

SupplierMaster

SupplierMaster

Profile Changes Mastered

Supplier Profile ManagementFlow#1 – Supplier self-service Profile Management

27

Address

+Bank details Contacts

Business Classification

Products& Services

Other Extensible Attributes

Attachments

Vision Computer

CorporationAdmin

Creates Questionnaire


Supplier

Vision Computer

Corporation

Review, Evaluate, Score

On Completion, Master the Supplier and

Evaluator Responses


SupplierMaster

SupplierMaster

Evaluation Team

Responds to Questionnaire

Questionnaire

Supplier Profile ManagementFlow#2 – Buyer Initiated Profile Maintenance

Questionnaire

28

ItemMasterItem

Master

Supplier Profile Attributes

Item-Supplier Profile Attributes


Contract

Supplier Search



OBSOLETE


Registration


SupplierMaster

SupplierMaster

&

Supplier Performance ManagementSupplier Performance Management


Supplier Performance Management

Vision Computer

CorporationAdmin

Create Evaluation Questionnaire

Vision Computer

Corporation

Supplier Performance

Evaluation, Score

On Completion, Evaluator Response mastered as profile


SupplierMaster

SupplierMaster

Internal Evaluation Team

Supplier Performance ManagementProcess Flow

Supplier Internal Evaluation

30

Overall Supplier SatisfactionBuyer Joe

Buyer Ed

Is Supplier flexible during negotiations?

Overall Supplier Satisfaction

Is Supplier flexible during negotiations?

Is Supplier responsive?

Is Supplier responsive?


Electronic Supply

Evaluated Suppliers

Invited Evaluators

Any Quality complaints? No Yes

Any Quality complaints? No Yes

Internal RFI / Questionnaire

Supplier Performance ManagementInternal Assessment

31



Contract

Supplier Search



OBSOLETE


Registration


SupplierMaster

SupplierMaster

&

Supplier Master Data Management

Consolidate across multiple heterogeneous legacy systems containing inconsistent sets of supplier data

Data Quality Management tools

Supplier HubExperian

Thomson

De-DupeSupplier

Master RecordEnrichment

Spoke

Spoke

Spoke

Supplier Master Data ManagementConsolidate, Cleanse, Enrich Supplier Master

33

– Registration & cross-reference for source (spoke) systems

SupplierHub

A B

Identifier A: BB253 Identifier B: 8808

Data Hub Registry ID

3177

Source System A

BB253

Source System B

8808

Supplier Master Data ManagementSource System Management

34

Desktop,Desktop,LaptopLaptop

• Create a single Supplier master profile from multiple sources

US$ 1.1MUS$ 1.1M

20,00020,000 21,000

HubZoneHubZone

LaptopLaptop

US$ 1.1MUS$ 1.1M

21,00021,000

Small Bus.Small Bus.HubzoneHubzone

MergedRecordMergedRecord

Source 1(Purchasing)

Source 1(Purchasing)

Source 2(Payables)

Source 2(Payables)

Revenue

# of Employees

Business Classifications

Invoicing Terms

Small Bus.Small Bus.

Net 45 Net 42Net 42 Net 42Net 42

Product and Services DesktopDesktop

Supplier Master Data ManagementData Quality Management

35

Out-of-the-Box D&B Integration• Search D&B for Prospect Trading Party Information• Evaluate Prospect Supplier Credit & Risk using D&B

Vendor Management Product• Enhance existing Supplier party records with pre-built

integration• Import data in real-time or batch mode• Choose from different D&B data packets/products

Out-of-the-Box Trillium Integration• Address Matching and Cleansing

Supplier Master Data ManagementData Enrichment and Validation

36

Relationship Role Company Name

Parent Company

Best Supply Corporation

Subsidiary Of Best Supply Americas

Child Business Entity Of Best Computer Supply

Child Business Entity Of Best Electronic Supply

Subsidiary Of Best Supply Europe

Supplier Master Data ManagementSupplier Hierarchy

View and Manage Supplier Hierarchies

Browse Relationships through multiple hierarchies

• D&B Hierarchy• Partner Relationship Hierarchy• Custom Relationship Hierarchy…

Address:

29261 South Frost Road, Liingston, LA - (225) 686-1967

DUNS #: 73-292-4932

Address:

1801 12th Avenue, Seattle, WA - (206) 325-0489

DUNS #: 37-389-0394

Address:

2300 West Whitendale, Visalia, CA - (559) 732-8892

DUNS #: 84-948-8736

Address:

9260 Bay Plaza Boulevard, Tampa, FL - (813) 744-5862

DUNS #: 47-298-8376

Address:

C/ Gran De Gràcia, 15, 08012 Barcelona, Spain - 933 682 383

DUNS #: 46-98-7648

Supplier Master Data ManagementSupplier Relationship Classifications

Classify Your Suppliers

General Classifications: Classify suppliers based on the way they are referenced within your organization

•Supplier Preference Category•Supplier FDIC Risk Category•Supplier Watchlist

Classification Scheme Classification Code

Supplier Preference

Category

Supplier FDIC Risk

Category

Supplier Watchlist

Platinum

Gold

Bottle Neck

Strategic Risk

Financial Risk

Compliance Risk

Operational Risk

OFAC – SDN List

UN Consolidated List

Unauthorized Banking List

Best Computer Supply

Computer Parts Supplies

Electronic World Supplies

Supplier Master Data ManagementSupplier Relationship Tasks

Relationship Tasks and Notes

Manage corrective actions using tasks and notes. Share them with suppliers.

• Assign tasks to internal and supplier users

• Add attachments, due-date and status to tasks

• Control visibility of notes

Task Assignee Attachments Due Date

Status

Invite Supplier to Sourcing Event for MDK385

Buyer

Ms. Catherine Baker, Sourcing Professional

Product SpecsTerms and Conditions

Apr-15-2010

Open

Submit Compliance Documents Supplie

r

Mr. Edmund Murphy, Supplier Contact

Code of Conduct Document

May-31-2010

Completed

Note Visibility

User Date Entere

d

Note Type

Discussed delivery performance issues

Public Mr. James Bradley

Apr-15-2010

Feedback

Schedule Q3 Business Review Private Ms. Henna Jackson

May-31-2010

Meeting

Publish Profile

Supplier Hub

Synchronize

Synchronize

Synchronize

Business Events

Webservices / APIs

Spoke

Spoke

Spoke

Supplier Master Data ManagementPublish Supplier Master Data to Spoke Systems

40

Infrastructure to Publish

‘Supplier Master’ data from Hub: