Using Oracle iSupplier Portal to Improve Supplier

Communication

by Bill Pick, Fujitsu America

Agenda

■Supplier communication challenges■Benefits of iSupplier Portal■Features & functionality■VMI/Consignment using iSupplier■Implementation considerations■What’s new in R12■Q&A

Supplier Communication Challenges

iSupplier Portal Benefits

■ Enhanced on-line (closed-loop) collaboration■Purchase Orders/Blanket Purchase Agreements■Delivery information■Shipping/Planning schedules (with Supplier Scheduling)■Invoices/Payment status■Change requests (split shipments, delivery dates, quantities, etc.)■Advance Shipment Notices (ASN’s)■Vendor Managed Inventory (VMI)/Consignment■Complete PO History

■Simplified fulfillment process reduces administrative cost■Reduced effort to maintain supplier details

Features/Functionality

■Supplier users register and can only access their supplier data■“DMZ” server architecture allows internet access to iSupplier outside of company network■Suppliers can perform tasks in these areas:■ Order Tasks■ Shipment Tasks■ Invoice and Payment Tasks■ Product Data Tasks■ Inventory Management Tasks■ Forecast Schedule Inquiry

iSupplier Portal Home Page

iSupplier Portal Home Page

■ View Notifications (5 most recent ones are displayed)■ Supplier can click on notifications to review/perform

actions in Oracle■ Immediate on-line communication of most recent activity

regarding the supplier■ Perform search for PO’s, Shipments, Invoices, Payments■ “Drill down” into specific orders or shipments for more

details■ Click on links for other commonly accessed screens

within iSupplier Portal

Change Orders

Change Orders

■ Supplier can request PO changes on-line■Supplier Order Line Number■Supplier attachments (i.e. C of C, Material Data Sheets, etc.)■Supplier Item Number■Quantity ordered■Promised Date of a Shipment■Split Shipment line into 2 or more shipment lines■Change Reason■Action (Change or Cancel)

View PO Revision History

■ For any given PO/release, can■Compare current revision to original PO/release■Compare current revision to previous revision■Show all PO/release changes

Advance Shipment Notices (ASN’s)

Advance Shipment Notices (ASN’s)

■Supplier can communicate shipment details electronically before shipment reaches your dock■Receiving can query by ASN Shipment numbers and automatically capture all details in receipt■Reduced data entry time at receiving ■Reduced receiving errors■Improved dock-to-stock cycle time

■High-volume suppliers can also create ASN’s via spreadsheet upload to iSupplier

Advance Shipment Notices (ASN’s)

Invoice/Payment Visibility

Invoice/Payment Visibility

■Supplier can create, submit, and view details of all invoices submitted■Invoices can be automatically matched to open purchase orders, with exceptions routed appropriately■Payment status for all invoices can be viewed and messaging capability provided for disputes

Vendor-Managed Inventory

■ Business practice where company delegates key inventory management functions to one or more of its suppliers.

■ Vendor initiates replenishment request based on agreed upon criteria

■ Benefits:■ better inventory turns■ fewer stock-outs ■ reduced production down times

Vendor-Managed Inventory Process Flow

Consigned Inventory

■ Inventory is in the possession of one party (a dealer, agent, distributor, and so on), but remains the property of another party (such as the manufacturer or primary contractor) by mutual agreement.

■ Consigned Inventory from Supplier means you receive and maintain goods still belonging to your suppliers

■ Benefits:■ Reduced Lead Times■ Improved Inventory Turns

■ VMI and Consignment are independent but often work together

VMI/Consignment High-Level Process

■ Set item attributes for VMI/consignment■ Set Up ASL Item-Supplier attributes■ Suppliers perform material request (optional)■ Create Blanket PO & Release (or Std PO)■ Receive shipment from supplier into normal subinventory■ When needed, transfer or issue material■ Create consumption advice (automatic)■ Manual Invoice or Pay on Receipt (automatic)

VMI/Consignment Item Attributes■ Replenishment Point Minimum Quantity (Vendor Managed)

This is the minimum quantity allowed before replenishment occurs.

■ Replenishment Days of Supply (Vendor Managed)This is the minimum allowed days of supply before replenishment must occur.

■ Maximum Order Quantity (Vendor Managed)This is the maximum quantity allowed for replenishment reorder

■ Order Quantity Maximum Days of Supply (Vendor Managed)This is the maximum allowed days of supply for replenishment reorder.

■ Fixed Quantity (Vendor Managed)This is a fixed quantity for reorder.

■ Release Authorization RequiredAuthorization is required before a sales order is created. You can set the authorization as follows:

• Customer: You must obtain release authorization from the customer.• Supplier: You must obtain release authorization from the supplier.• None: Release authorization is not required.

■ ConsignedIf selected, the item is consigned, meaning residing at your location, but owned by the supplier.

■ Auto Expire ASNIf selected, the advanced shipment notice for the item expires.

VMI/Consignment Item Attributes

ASL Supplier-Item Attributes

■ The information that you enter here enables use of the Vendor Managed Inventory (VMI) and Consigned Inventory functionality within Purchasing.

■ For VMI check VMI Enabled and:1. Enter the UOM that the following minimum and maximumquantities represent.2. Enter the Minimum quantity level for this item.3. Enter the Maximum quantity level for this item.4. If Supply Chain Exchange (SCE) is enabled, check the AutomaticAllowed box to enable the replenishment method approvalselection below. 5. Select the replenishment Approval method of Automatic, Supplierand Buyer, or Buyer. This field is only enabled if SCE is enabledand VMI Automatic Allowed is checked.

■ For consigned inventory check Consigned from Supplier and: 1. Enter the number of days allowed before billing in Billing Cycle(Days).2. The system will display the Last Billing Date.

ASL Supplier-Item Attributes

Consignment Functionality

■ Receipts & RTV’s work the same, except no consumption advice (billing) until used

■ Retroactive pricing works the same■ SO issue, WIP issue, Inter-org transfer, and Misc. issue

always consume consigned materials; other types can be set up to also consume consigned material

■ When consumed, material is valued at current blanket PO pricing at the time

■ If you reverse a transaction, it does not become consigned again automatically

■ Aging-based ownership transfer automatically transfers consigned material if not used within set time frame

■ Can do manual billing or pay on use

iSupplier Visibility w/VMI & Consignment

■ View inventory on-hand, min & max quantities for enabled items

■ Trigger replenishment requests■ Consigned inventory aging■ Consigned shipments & receipts■ Consumption advice■ Consigned returns

Implementation Considerations

■ Use of VMI functionality requires Inventory, Purchasing, and Collaborative Planning 11.5.8 or higher (CP license is included with iSP just for VMI-11.5.10)

■ If ASL exists with either VMI enabled or Consigned checked, cannot update:

■ Outside Processing Item from No to Yes■ Asset Item Type from null to non-null value■ Transactable from Yes to No■ Stockable from Yes to No

■ Supplier-Item Attribute VMI/Consignment settings override item attribute VMI/Consignment settings

New iSupplier Functionality in R12■ Complex contract payments (i.e. progress payments)■ Supplier change order request enhancements■ Multi-order change requests■ Tolerance-based auto-approval of change requests■ Ability to route change requests to requestor■ Change requests for services

■ Streamlined supplier on-boarding■ Enhanced Supplier Profile Management■ Enhanced Inbound Logistics (integration w/OTM)■ Supplier Scorecard – integration with DBI■ Supplier self-service catalog authoring■ Multi-org access controls■ Dispute resolution for GLOG invoices (12.1)■ Third Party Payments (12.1)

Summary

■ iSupplier Portal can■ Streamline & improve communication with Suppliers and

REDUCE errors, delays, and waste■ Empower suppliers to be responsible for maintaining accurate

order information and obtain accurate information on their own■ Free up Purchasing resources to work on more strategic

activities

■ Functionality such as ASN’s, VMI, and Consignment can improve cycle time and reduce inventory

■ R12 provides enhanced functionality and improved ease of use to iSupplier Portal

Questions??