Post on 04-Apr-2015
PurchasingEnable Buying Professionals to Focus on Strategic Activities
Presenter’s NamePresenter’s Title
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle At-a-Glance
Globally…
#1 in Database
#1 in Supply Chain Mgmt
#1 in Customer Relationship Mgmt
#1 in Human Capital Mgmt
#1 in Industries- Retail
- Public Sector
- Professional Services
- Financial Services
- Communications
• 286,000 total customers• 235,200 database customers• 37,500 applications customers• 24,000 SMB apps customers• 53,800 middleware customers
• 19,500 partners
• 74,000 employees
• 14,000 developers
• 7,500 support staff
Founded in 1977. Headquarters in Redwood Shores, CA with operations in 145 countries.
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Agenda
• Business Challenges
• Oracle’s Leadership Position
• Solution Overview
• Customer Success
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Buying Professional
Suppliers
• Order Changes• Supply Commits • Supplier Performance
• Specifications• Purchase Releases• Approved Requisitions
ComplianceSpend Visibility
Demand Orders
Supply Base Mgmt
Budget Holder
Purchasing At-a-Glance
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Enforce Compliance• Track contract compliance and
ensure that contracted pricing appears on every order?
• Drive the right supplier allocation on purchase orders?
Improve Supply Mgmt• Exploit high value
opportunities and identify the next round of savings?
• Proactively tackle spending occurring in lines of business?
Drive Cost Reduction• Make staff more productive
& stretch purchasing budget?• Drive reductions in errors
and manual processing?
Increase Efficiency• Drive touchless buying to
eliminate the risks and lag time associated with paperwork?
• Focus efforts on areas that provide the biggest savings?
Business PressuresHow Do I …
Procurement Org
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Shift Investment in Procurement to Higher-Value Activities
Reduce Staff by Swapping Labor for Technology
Source: Hackett Group & Oracle
Performance Indicator
TypicalPurchasing
Organization
World Class Purchasing
Organization
Comparison Summary
FTE per $Billion of Spend 104 54 48% Less Staff
1.03%
7,805
0.72%
$1.1 Million
3,512
30% Lower Costs
More Buying Power
Better Information$1.4 Million
Total Cost of Procurement
(as % of Spend)Suppliers Per
$Billion of Spend
Technology Investment per $Billion spend
Goal: Achieve World Class ProcurementDrive 60% Higher Savings from Procurement
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Agenda
• Business Challenges
• Oracle’s Leadership Position
• Solution Overview
• Customer Success
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
What Customers are Saying…
“Oracle Procurement has helped reduce the number of calls from the Pella Division’s corporate purchasing department and vendors by as much as 95%. All needed information is now on the PO.”
-- Tracey Buck, Coordinator of Facilities Mgmt
“With Oracle, our purchasing team’s focus changed from managing paper to analyzing purchasing trends and negotiating best prices with vendors. Oracle
helped enforce contractual compliance by making only goods from approved suppliers available to our staff. Contract leakage is downfrom 65% to 15%, and we anticipate a further reduction.”
-- Peter Rentell, Head of Contract Management
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
What Customers are Achieving…
saved $74M since 1999
saved $5.9M in two years
decreased PO processing costs by 59%
cut purchasing costs by 50%
reduced buyer workload by 60%
cut PO cycle time by 90%
cut PO cycle time by 86%
eliminated 43 legacy req-to-pay and finance systems
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
A Few More Customers…
Al GhurairGroup
ChangAnAutomobile Group
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Agenda
• Business Challenges
• Oracle’s Leadership Position
• Solution Overview
• Customer Success
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced ProcurementThe Integrated Suite That Dramatically Cuts All Supply Mgmt Costs
Spend Categories
IndirectGoods
DirectMaterials
EngineeredGoods
Services ApprovalRouting
TouchlessBuying
Automated Payment
Enforce Policy Compliance
Budget-BasedProcurement
ContractManagement
SupplierPerformance
Reduce Spend on Goods and Services
CategoryManagement
OnlineSourcing
SpendAnalysis
Streamline Procurement Processes
SupplierCollaboration
Settlement
Orders
ProfileManagement
SupplierNetwork
Logistics
SupplierPortal
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Purchasing SolutionFree Buying Professionals to Focus on Strategic Activities
• Pre-Defined Policies
• Approved Supplier Lists
• Negotiated Contracts
• Blanket Agreements
Spend Categories Suppliers
Exceptions
• Supplier Information
• Drop Ship Details
Consumables & Supplies
Engineer to Order
ManualApproval
Supply Base Management
Flexible Procurement AutomationFlexible Procurement Automation
Demand Workbench
Business Services
Parts & Components
IndirectGoods
DirectMaterials
EngineeredGoods
Consolidate All DemandConsolidate All Demand
Receive, Reconcile,
and Pay
Receive, Reconcile,
and Pay
Services
Generate Order
Documents
Generate Order
Documents
Approve & Allocate
Approve & Allocate
Oracle Purchasing
Automate Entire Procure-to-Pay Cycle
Improve Supply Base Management
Adapt to Any Purchasing Practice
Enables you to…
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Flexible Procurement AutomationEliminate Paper and Wasted Time
• Efficiently Process Demand with Least Manual Work via Demand Workbench
• Automatically Allocate Spend to Suppliers via Embedded Sourcing Rules
• Speed Receiving and Settlement via Integration to Financials
Demand / Approved Requisitions
Payment
Suppliers
Purchasing Professional
Financials Integration
Exception Processing
Automatic Processing
Settlement
Consolidate Demand
Receive & ReconcileReview /
ApproveCreate & Route PO
Source & Allocate
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Demand WorkbenchEfficiently Process Demand with Least Manual Work
Demand Workbench
View, search, sort, reassign, or reject demand from work queues
Determine supply source via ASL and policy rules
Auto-create by gathering lines from multiple requisitions
Manage Buyer Workload and Eliminate Error-Prone Manual Re-Keying
Requisitions PO Execution
Buyer
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Global contracts & blanket agreementsDemand plan, one-
time purchases
Approval logic (optional)
Supplier profiles
Approved supplier lists
Rules-Based Auto-Sourcing
Engine
• Configurable allocation logic with flexible hierarchies
• Define for item, commodity, cost center location
Determine the Right Supplier Allocation and Create Orders Without
Buyer Intervention
• POs
• Blanket release
• RFQs
• etc.
Consolidated Demand
Goods & Services
Purchasing Documents
Embedded Sourcing RulesMake Buyers More Productive By Executing Touchless Buying
*Oracle Supplier Network
• Supplier Portal
• OSN* / XML / EDI
• Fax
Automatic Communication
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
• View exceptions across multiple applications and operating units• Create, implement, and execute agreements• Analyze performance of procurement & suppliers
Negotiations Contracts & Agreements
Invoicing & Payment
Supplier ManagementRequisitions PO
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
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Professional Buyer’s Work CenterCommand and 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
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Purchasing Integration to FinancialsSpeed Receiving and Settlement
• Track orders, receipts, inspections, & services through the entire process• Capture early payment discounts & eliminate supplier over-billing• Save time by eliminating paper processing
Automated 3-Way Match w/ Optional Evaluated Receipt
Settlement
Purchase Order or P-Card
Purchasing
ElectronicInvoice
Financials
Goods or Service Receipt
Operations
Banks & Payment
Processors
Pay & Issue Resolution
Suppliers
SWIFTNet
OSN* / EDI / XML
Supplier Portal
Enables you to…
Automate Entire Procure-to-Pay Cycle
Improve Supply Base Management
Adapt to Any Purchasing Practice
Oracle Purchasing
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
• Complete tracking of suppliers, goods, and services• Universal collaboration with global scalability & accessibility
Supplier Master Item Catalogs- Contact information- Pricing & discounts- Pending quotes / orders- Contract terms- Blanket agreements- Account history / status
- Item number/ description- Manufacturer part #- Commodity type- Costing elements- Preferred supplier(s)
Centralize Supplier & Item DataQuickly Find and Manage Supply Base Information
Approved Supplier Lists- Define and view
certification status of suppliers for items
- View and update supplier status, including ‘barred’and preferred
Buying Professional
Drive Visibility Through Consistency Across Procurement Processes
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Strategic sourcing
Contract management
Employee self-service
Supplier portal
Oracle Supplier Network
EDI, XML, Email, Fax
E-Business Suite
Full Integration With Advanced Procurement Reduce Cost of Procurement and Increase Visibility
DBI
Apps Server, Dev Tools, Process Orchestration, Security, Portal, Web ServicesFusion Middleware
10g, RAC, Oblix, Times TenDatabase
PLM CRM Financials EAM Mfg HCM
PurchasingPurchasing
Easily Extend Purchasing to Integrate with Suppliers and Internal Groups
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Example: 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
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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
OSN*/ XML / EDI
Supplier Portal
Fax
Example: Supplier Change OrdersEliminate Processing of Trivial Change Requests
Supplier Change Orders / Requests
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Example: Procurement for Complex ServicesSource to Settle Support for Complex Payments
• 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
Enables you to…
Automate Entire Procure-to-Pay Cycle
Improve Supply Base Management
Adapt to Any Purchasing Practice
Oracle Purchasing
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Center-Led Procurement SupportAchieve Global Savings Via Multiple Models
BU 1
SourceRequest Buy Pay
BU 2
BU 3
Decentralized
BU 1
SourceRequest Buy Pay
SharedService
BU 2
Central Sourcing, Local Execution
BU 1
SourceRequest Buy Pay
SharedService
BU 2
Automatedfinancialreconciliation
Complete Shared Services
BU 1
SourceRequest Buy Pay
SharedService
BU 2
Automated financialreconciliation
Transfer to Local Business Unit
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Enterprise-Wide EnforcementDrive Compliance and Reform Spending Behavior
IndirectGoods
DirectMaterials
Services
EngineeredGoods
Configurable, Pre-Modeled Best Practice Purchasing Workflow
Online Catalogs & Contracts
Receive & Reconcile
Review / Approve
Create & Route PO
Pay Supplier
Approval Policies(e.g., Funds Checking)
Matching Rules
Accrue / RelieveTax Encumbrance
Requisition
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Example: Enterprise-Wide EnforcementGovernance and Control Options
Centrally Manage Policies and Procedures
YourCompany
SuppliersOrders
Invoices
Payments
• Approval policies• 3-way match approval level• Pricing, receiving, and
invoicing tolerances• Vendor hold enforcement• Security hierarchy• Contingent worker access
Corporate Policy Controls
Flexible Purchasing Definitions
Accommodate Global Requirements Support Unique Transactions
Purchasing Execution Controls• Numbering options• Price break types• Supplier qualifications• Tax defaults• Default accrual accounts• Accrual – receipt / period end• Reporting & transaction currencies• Configurable document styles
• Multi-Org Access Control (MOAC)• Date formats• Time zones• Tax rules• Chart of accounts• Fiscal & legal requirements• Supported languages and currencies
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
• Automatic account defaults based on business rules• Security-based override capabilities• Distribute charges across multiple accounts/cost-centers• Allocate charges to expense or material accounts based on usage
• Request goods and services for specific projects• Allocate costs to multiple project accounts and budgets• Track and report against projects
• Control spending using budgets and encumbrance accounting• Track spending limits and spend-to-date• Real-time validation of funds during request creation• Approvals based on budget ownership
• Capture grant award information on individual requests• Allocate costs across multiple grants• Default grants information onto request lines to minimize data entry
Flexible Cost
Allocation
Flexible Cost
Allocation
Project-Based Requests
Project-Based Requests
Budgets and EncumbranceBudgets and
Encumbrance
Grants Management
Grants Management
Example: Enterprise-Wide EnforcementComprehensive Financial Controls
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Open ArchitectureLeverage Legacy and Supplier Systems
Legacy Technologies
ERP / Logistics
Financials Supplier Systems
• OAS10g transformation and message delivery services
• 1000’s of Public API’s• Integration Repository
• Web Services, B-B, EAI• 900 Business Events
• 150 OAG Messages• Industry Specific Protocols
Oracle Purchasing
Supply Base Management
Demand Workbench
Flexible Procurement Automation
Supply Chain Management
Invoicing Supplier Transactions
Requisitions
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Purchasing
Automate Entire Procure-to-Pay Cycle
Automate Entire Procure-to-Pay Cycle
Improve Supply Base Management
Improve Supply Base Management
Adapt to Any Purchasing Practice
Adapt to Any Purchasing Practice
End-to-end process support including exception-based mgmt and automated three-way match
Centralized mgmt of ASL, items & contracts with automated pricing and support for adv. supply programs
Center-led procurement & enterprise wide enforcement with open integration for legacy applications
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle Advanced Procurement Products
DevelopMarket
Sell
Order
Plan
ProcureMake
FulfillService
Maintain
Finance
HR
Projects
Contracts
*Complimentary service component of Advanced Procurement Suite
Customers,
Suppliers,
Products, …
PurchasingSourcing
Sourcing OptimizationProcurement Contracts
iProcurementServices Procurement
iSupplier PortalSupplier Network*
Purchasing Intelligence
New in 11i.10…Base Differentiators…• Self-service enterprise
requisitioning from suppliers or internal stock
• Integrated asset and production planning
• Supplier Self-Service• 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• Packaged spend, supplier ,
and commodity intelligence• Advanced pricing
capabilities• Transparent Punchout• Global Agreements
New in R12…• 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• XML publisher for .pdf printing
• Professional Buyer’s Workcenter
• 2-way MS Word integration• Unified catalog architecture• Shared services support• Requestor directed procurement• Prospective supplier registration
using iSurvey• Supplier catalog authoring• Tolerance based order change
auto-approval• Supplier scorecarding • Prospective supplier registration• Advanced pricing integration• Team scoring of sourcing rqmts• Parallel approvals• Position hierarchy approvals• Complex work procurement• eTax integration
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Evolution of Oracle Advanced Procurement
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Project Management
Facilities
• Advertising and Print
• Shows and Promotions
Self-Service Maintenance
Logistics
• Office Supplies• Contingent Labor• Travel and
Entertainment
Production
Information Technology
• Raw Materials• Components• Assemblies
• HVAC• Janitorial• Landscaping• Utilities• Furniture & Fixtures
• Full truck, LTL, Parcel, etc.• Ocean, Air & Rail• Warehouse/Logistics Svcs• Fleet & Maintenance Svcs
• Repair Supplies• Replacement Parts• Equipment• Tooling
• Hardware, Software• Leasing & Financial
Services• Professional Services• Networking, Wireless
• Capital Expenditures• Building & Construction• Fleet Purchases
Complete Category ManagementComplete Category Management
A Solution to Meet All Your NeedsManage All Item Categories and Demand Types
Marketing
Planning Maintenance & Operations
Project Mgmt
Other(e.g., HR)
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Implement Based on Procurement PrioritiesAdopt Applications On Demand or On Premises
• Focus early wins and ROI• Operate fully integrated or stand alone• Lower the time & cost to implement& maintain applications
Cut Unit Cost While Streamlining Processes
Deploy Self Service To Free-up Staff
Create Savings, Drive Value, & Enforce Compliance
Pro
cure
men
t Obj
ectiv
es O
ver T
ime
Supplier Enablement
Employee Self-Service
Contract Management
Spend Analysis
Strategic Sourcing
Procure-to-Pay
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
All Supported by Leading Technology
• J2EE Application Server• Service-Oriented Architecture• Business Process Mgmt• Business Intelligence• Content Management• Identity Management• Collaboration Suite• Enterprise Portal• Business Integration• Data Hubs• Developer Tools• Web Services Management
• Real Application Clusters• Advanced Security• Embeddable• Secure Enterprise Search• Data Warehousing• Server Virtualization• Enterprise Management• Partitioning• OLAP• Data Mining• Spatial Data• Secure Backup
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Agenda
• Business Challenges
• Oracle’s Leadership Position
• Solution Overview
• Customer Success
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
OVERVIEW• Leading private Ivy League university• Largest private employer in Philadelphia
with 12,300 employees• 22,300 students; 233,000 living alumni;
151 buildings over 269 acres• $495M annual purchasing spend; over
240,000 transactions
CHALLENGES / OPPORTUNITIES• Leverage significant buying power to
reduce the costs of products and services
• Improve the buying experience of researchers and administrative staff
SOLUTIONS• Purchasing• iProcurement• Financials
CUSTOMER PERSPECTIVE“Using Oracle Advanced Procurement and Oracle Financials has enabled us to transform the purchasing department to a value-added organization, resulting in over $74 million in documented cost savings.”-- Ralph Maier, Dir. of Purchasing Services
RESULTS• Saved $77M in indirect procurement• Reduced invoice processing cost as
much as 98% and processing time by 40%
• Lowered procurement prices by as much as 35%
• Increased central purchasing productivity by 100%
• Raised accounts payable productivity by 20%
• General Ledger• Payables• Cash Management
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
COMPANY OVERVIEW• $160B global business leader• 48 distinct operating units• 316,000 employees in over 100 countries
CHALLENGES / OPPORTUNITIES• Replace error-prone manual processes
with self-service ordering• Consolidate supplier contracts and
reduce purchasing costs
SOLUTIONS• Purchasing• iProcurement• Inventory• Projects• Human Resources
CUSTOMER PERSPECTIVE“We have already realized significant savings from implementing Oracle iProcurement 11i and anticipate more.”
-- Gary Reiner, Senior VP and CIO
RESULTS• Granted 35K users access to 800K
approved catalog lines • Achieved complete integration -- 100%
electronic• Instituted in 5 languages
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
COMPANY OVERVIEW• Operator of the registry for .com and .net
Internet suffixes• Supports billions of domain name lookups
on the internet daily• Secures 400,000 websites and processes
more than 30% of all e-commerce transactions in North America
CHALLENGES / OPPORTUNITIES• Gain better control over fast growth and
provide better information faster to the senior management team
• Eliminate costly inefficiencies & potential business risk from separately managing different workforces, business processes, IT networks, & support services
SOLUTIONS• Purchasing• iProcurement• Advanced Pricing• Financials
CUSTOMER PERSPECTIVE“Prior to Oracle, invoices were difficult to track and assign to specific purchases and vendors. With the Oracle system, we can now focus on trend analysis for spending and vendor negotiations which will deliver more value to VeriSign.”
-- Jade Dauser, Purchasing Director
RESULTS• Reduced purchase order processing time
by 50%• Increased buyer productivity 300%• Decreased spending, increased contract
compliance, and cut administration costs• Links each purchase to GL category and
each PO to an Invoice
• Human Resources• Self-Service HR• Internet Expenses• Order Mgmt
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
COMPANY OVERVIEW• $1B+ global manufacturer of electronic
instruments & electric motors• 7,800 employees at 40 plants worldwide
produce 50 million motors• 2,700 users at 27 sites
CHALLENGES / OPPORTUNITIES• Enable buyers to more effectively
leverage purchasing power• Reduce administrative costs
SOLUTIONS• iProcurement• Purchasing• Financials• Discrete Mfg• Inventory
CUSTOMER PERSPECTIVE“We conservatively expect our Oracle Internet Procurement initiative to reduce our maintenance, repair, and operating spend by 10%, resulting in millions of dollars in savings and a substantial positive impact on earnings.”
-- Bill Lawson, CIO
RESULTS• Reduced procurement costs by 14% • Standardized & streamlined processes
with 20,000 global suppliers• Oracle Procurement expected to handle
$500M in annual spend
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
OVERVIEW• Oversees North America’s largest public
housing program• Manages over 2,700 buildings• 420,000 people live in New York City
Housing Authority housing developments
CHALLENGES / OPPORTUNITIES• Homegrown and vendor legacy
systems were expensive and did not meet management’s information needs
• Gain tighter visibility and control over spending
SOLUTIONS• iProcurement• Purchasing• Inventory• Financials• Public Sector
Budgeting
CUSTOMER PERSPECTIVE“We have seen increased productivity in warehouse operations, we have eliminated physical inventory, and automated our procurement process. All of which has resulted in significant labor productivity improvement.”
-- Natalie Rivers, Deputy GM for Admin.
RESULTS• Estimated savings of $50 per requisition,
adding up to %150M in savings per year using iProcurement
• Reduced delivery time to housing developments from 9 weeks to 3-5 days
• Reduced maverick spending from $29M to $10M
• Plan to save $2M annually in early-payment discounts
• Fixed Assets• Grants• Human Resources• Order Management• Cash Management
Automate the Entire Procure-To-Pay Cycle
Improve Supply Base Management
Adapt to Any Purchasing Practice
Oracle Purchasing
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
AppendixAdditional Advanced Procurement Integration Points
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Example: Advanced Inventory MgmtSupport Supply Cost Reduction Programs
Enabling CapabilitiesExample Programs
Integrate planning, work order, requisitioning, purchasing, and receiving. View shipment details, WIP details (job, schedule and operations), and component information.
Automatically create replenishment signals (e.g., POs) based onMin-Max levels and Kanban cards. POs can be pre-approved and ready to be transacted.
Provide suppliers convenient inventory visibility and automate replenishments from suppliers.
Maintain supplier-owned inventory, transfer ownership on use, and trigger supplier invoicing.
Enable suppliers to fulfill your customer orders by shipping directly to your customers. Synchronize PO with sales order and book transactions across multiple business entities.
Outside Processing
Vendor Managed Inventory
Consignment Inventory
Drop Shipments
Min-Max and Kanban Replenishment
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Example: Basic and Complex PricingSimplify Process While Improving Pricing Compliance
Purchase Orders
RequisitionsPricingRequest
Price
Contracts
Advanced Pricing Engine
Custom Pricing APIs
Buyer
Supplier
• Negotiate optimal price structure to drive the best business results
• Ensure that negotiated pricing appears on every order
• Use retroactive pricing to get negotiated price breaks for past and open orders
Negotiated Pricing• Price breaks / lists• Ship-to / supplier site• Formulas• Modifiers
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Supplier Maintained Item AttributesLower Inventory Requirements
Supplier Updates:- Capacity & tolerance- Lead time- Order quantity
Supplier
YourCompany(Buyer)
Warehouse Stock Update:
- Inventory levels
ApprovedSupplier List
Plans &Schedules
YourCompany
(Warehouse)
iSupplier Portal
Supplier Views:- On-hand inventory- Plans & schedules
• Supplier-authorized updates to the ASL help generate an optimized plan• Improved plan visibility helps supplier evaluate current and future commitments• Better visibility and plan helps prevent stock-outs and minimize excess inventory