Enterprise SRM Procure to Pay Update Tom Anthony Sr. Director, Product Strategy.
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Transcript of Enterprise SRM Procure to Pay Update Tom Anthony Sr. Director, Product Strategy.
Enterprise SRMProcure to Pay Update
Tom Anthony
Sr. Director, Product Strategy
2
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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.
Legal
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Thought of the Day
On Wednesday, at two minutes and three seconds after 1:00 in the morning, the time and date will be:
01:02:03 04/05/06
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Agenda Topics
• Procurement in General• Enterprise SRM Update: 8.9, 9.0, and beyond• Fusion Overview: A Procurement Perspective• Activities between now and ‘08
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Business ChallengesBusiness Challenges
ProcurementProcurementOrganizationOrganization
Increasing Savings TargetsIncreasing Savings Targets• Same or greater % every yearSame or greater % every year• Resource constraints – Resource constraints –
“save more with less”“save more with less”• Inflation, currency fluctuationInflation, currency fluctuation
Increasing Savings TargetsIncreasing Savings Targets• Same or greater % every yearSame or greater % every year• Resource constraints – Resource constraints –
“save more with less”“save more with less”• Inflation, currency fluctuationInflation, currency fluctuation
Compliance ConcernsCompliance Concerns• Low visibilityLow visibility• Contract leakageContract leakage
Compliance ConcernsCompliance Concerns• Low visibilityLow visibility• Contract leakageContract leakage
Organizational ChallengesOrganizational Challenges• Insufficient policy influenceInsufficient policy influence• Fragmented processesFragmented processes• Staff consumed by routine Staff consumed by routine
processingprocessing
Organizational ChallengesOrganizational Challenges• Insufficient policy influenceInsufficient policy influence• Fragmented processesFragmented processes• Staff consumed by routine Staff consumed by routine
processingprocessing
External PressuresExternal Pressures• OutsourcingOutsourcing• RegulatoryRegulatory
External PressuresExternal Pressures• OutsourcingOutsourcing• RegulatoryRegulatory
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Shift investment in procurement to higher-value activitiesShift investment in procurement to higher-value activities
Reduce staff by swapping labor for technologyReduce staff by swapping labor for technology Source: Hackett GroupSource: Hackett Group
Performance Indicator
TypicalPurchasing
Organization
World Class Purchasing
OrganizationComparison Summary
FTE per $Billion FTE per $Billion of Spendof Spend 104104 5454 48% Less Staff48% Less Staff
Total Cost of Total Cost of ProcurementProcurement
(as % of Spend)(as % of Spend)1.03%1.03% 0.72%0.72% 30% Lower Costs30% Lower Costs
Suppliers Per Suppliers Per $Billion of Spend$Billion of Spend 7,805 7,805 3,5123,512 More Buying PowerMore Buying Power
Technology Technology Investment per Investment per $Billion spend$Billion spend
$1.1 Million$1.1 Million $1.4 Million$1.4 Million Better InformationBetter Information
Goal: World Class ProcurementDrive 60% Higher Savings on Procurement Investment
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Best Practices Procurement
Best Practice•Maximize Self-Service•Enforce approval and tendering policies•Leverage Automated Sourcing Tools•Control budgets via tolerance and exception notifications•Establish and monitor spend objectives•Utilize Procurement Cards
Benefit•Focus on strategic activities•Gain visibility and control over spending•Improve internal policy compliance•Maximize contract spend•Leverage supplier base•Improve productivity
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Best Practices Payables
Best Practice•Eliminate paper invoice (use ERS, web-invoicing, XML/EDI)•Enable supplier self-service•Leverage auto-matching rules•Enable duplicate invoice/vendor setup checking•Limit non-PO invoices
Benefit•Improve internal policy compliance•Improve productivity•Improve accuracy•Take advantage of payment discounts•Reduce supplier inquiries, increasing time analysts can spend on more value-added projects.
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Procurement Transformation
High
Str
ate
gic
Va
lue
Maturity
Cost ProcurementTouchless Buying
Policy Enforcement
Contract Negotiation
Spend Management
Tactical BuyingCreate Manual Orders
Answer Supplier Queries
Help Requesters
Manage Content
Strategic ProcurementValue Creation
Collaborative Procurement
Supply Optimization
All Categories, All Processes
Low
High
Low
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
What Customers Are Achieving…
automated and streamlined procurement process
saved $120,000 per month with reduced payment times
reduced prices by 10-30%
buyers now focused on strategic activities
saved 20% of spend in Food and Beverage category
reduced inventory levels by 50%
saved $1.5 – $2M annually, positive ROI < 3 years
saved over $75M from contract consolidation
increased productivity led to multi-million dollar savings
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
PeopleSoft Enterprise SRMThe Integrated Suite That Dramatically CutsAll Supply Management Costs
DemandDemandCollectionCollection
IndirectIndirectGoodsGoods
DirectDirectMaterialsMaterials
EngineeredEngineeredGoodsGoods
ServicesServices ApprovalRoutingApprovalRouting
TouchlessBuyingTouchlessBuying
Automated PaymentAutomated Payment
Enforce Policy ComplianceEnforce Policy Compliance
Budget-BasedProcurementBudget-BasedProcurement
ContractManagementContractManagement
SupplierPerformanceSupplierPerformance
Reduce Spend on Goods and ServicesReduce Spend on Goods and Services
CategoryManagementCategoryManagement
OnlineSourcingOnlineSourcing
SpendAnalysisSpendAnalysis
Streamline Procurement ProcessesStreamline Procurement Processes
SupplierSupplierCollaborationCollaboration
SettlementSettlement
OrdersOrders
ProfileProfileManagementManagement
SupplierSupplierNetworkNetwork
LogisticsLogistics
SupplierSupplierPortalPortal
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
eProcurement 8.9:Simplified ProcessingAccelerate Self-service Adoption
• 3 step process 3 step process simplifies simplifies requisitioningrequisitioning
• Line Level ApprovalsLine Level Approvals
• Mass approvals and Mass approvals and email-based email-based approvals approvals
• Redesigned pages Redesigned pages provide more provide more information with information with fewer clicksfewer clicks
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Capture More Spend, More Efficiently
Extend Services Spend Programs Across Globally
Improve Total Workforce Management
• Vendor-managed services
• Skills matrix
• Deliverable-based expense capture
• Multi-resource work order
• Multi-project work order
• Improved notifications
• Global time and expense reporting
• Multiple time-based work order alerts
• Full rate sheet breakdown structure, including expenses
• HCM Person ID integration
• Normalized terminology with HCM
• Integration to HCM Talent Acquisition Manager module
Services Procurement 8.9 Greater control and oversight
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
PeopleSoft Enterprise SRM 8.9The Contract Lifecycle Management Release
Sourceand Award
Execute
Amend, Renew,
or Close-out
MonitorPerformance
Central Clause Library
Document Configurator
Collaborative Authoring
Online Negotiation
MS Word Integration
Approval Workflow
Agreement Management
Version Control
Contract Syndication
Contract
Exploit More Savings OpportunitiesExploit More Savings Opportunities
Convert Negotiated Savings
into Real Savings
Convert Negotiated Savings
into Real Savings
Increase Procurement Process Effectiveness Increase Procurement Process Effectiveness Now available for 8.8!
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
SRM 9.0 Planned FeaturesExtend Customer InvestmentContract Mgmt
Request for ContractSLA ComplianceContract and Library Upload / Import Misc. Customer Enhancements
Amount Only RequisitionsShift and Assignment Support in Services Procurement Special Request, Favorites, and Templates Enhancements
Supplier Contract Management 8.8
Greater Business InsightBuyer Dashboard
Superior Ownership ExperienceArchiving Documentation
Reopen Specific Closed Requisitions and Purchase Orders
XML upload for Sourcing event creation
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Fusion Update
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
• Applications driven by business processes– From implicit to explicit processes
• Business Intelligence is not an afterthought– Good BI needs to be in the DNA of applications
• Applications that can be configured and integrated with ease– Applications must increasingly fit in a heterogeneous
environment
• Applications that are cheaper to deploy and operate
Oracle’s Application Vision
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
• Industry Relevance is a must– We have too know and manage industry processes in
minute detail
• Application customers want consolidation• Standards always win
– At a business level (Rosettanet, HL7, SWIFT etc.)– At a technology level (J2EE, WSI-*, XML etc.)
• Providing a full technology stack is an advantage– Significantly reduces cost
Oracle’s Core Beliefs
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Fusion Overview
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
Recent Activities
Greatest Business InsightInformation You Can Trust
• Single data model for single source of truth, but set for heterogeneity
• Centralized data with additional data hubs
• Embedded analyticsand management reporting
• Real-time operational analysisand ability to take related actions
• Industry specific KPIs
• Open to third party data
Deep and AdaptiveIndustry ProcessesInformation You Can Use
• Industry-based configuration
• Modularized services
• Broad API / web services support
• Enhanced interoperability through standards-based, open platforms
• User experience personalization
• Standards-based extensibility
• Tailored business process flows
• BPEL Certification
Superior Ownership ExperienceInformation You Can Manage
• Automated, tailored installs
• Functional components for individual upgradeability
• Minimal downtime upgrades
• Active system and business monitoring
• Self-supporting, self-tuning
• In-place education
• Packaged integration… from server technology, middleware, to applications
Sample BI by Role
Role for BP/Product Key Questions Sample Metrics
Procurement VP Is enterprise spend increasing/decreasing?
% Spend Change vs Sales Change; % Non-PO Spend of total spend; % Contract/Non-Contract Spend
Procurement Mgr How much automation is the procurement dept achieving?
% of automated Pos and sources; Average Days to Approve REQ and PO; %Reduction of Cycle Time
Buyer / Commodity Mgr What tasks need my attention?
Overdue POs; Reqs to be sourced; Contracts Expiring
Supplier How is my quality? How is my on-time performance? How is my ship quantity performance?
% Receipts Rejected; % Late Shipments; % Qty Received = Qty Ordered
Other Apps
PTPBusinessProcess
Supplier
Create Requisition
ApproveCreate Invoice
CreatePO
OracleSOA
OracleSOA
SupplierWebsites
Order Management
<XML><XML>
<XML><XML>
5
Requisition
1
1
SOA Example: Procure to Pay
DispatchPO
ReceiveSource
Get ApproverList
ALMLegacy
PurchasingEmployeeDirectory
3
AvailabilityCheck
AvailabilityCheck
InventoryManagement
Legacy Inventory
4
5
Catalog Punchout
2
ElectronicPO/ACK
7
ASN
9
Invoice
10
Legacy PO/ALM
Logistics Billing
Synch POData8
CalculateTax
6
3rd Party Tax
Some Benefits to Enterprise CustomersProcurement
• XML Publisher (including eText)
• Reduced number of batch processes
• Improved Blanket Orders
• Contract Budget Checking
• Retainage
• Streamlined change requests
• Transparent punch out
• Payment terms negotiation
• Sourcing Line Grouping
Some Benefits to EBS CustomersProcurement
• Graphical Hierarchies (Trees)
• Shared reference data (Setid)
• Streamlined Internal Orders
• Landed Cost
• Line Level Approvals
• Encumbrance Accounting
• Notes and Attachments
• Improved Auto-sourcing Logic
• Improved Sourcing Optimization
• Sourcing Project Management
• Word and Excel Integration
Everyone Will Get ThereWhy You Will be Successful…
• Best in class intellectual property from PeopleSoft, Oracle, and JD Edwards
• Unparalleled level of investment, including applications and server technology divisions
• History of successful migration across technologies
Automated Upgrades To Next Releases And To Fusion
PeopleSoft Enterprise 8.88.99
JD Edwards EnterpriseOne 8.11
8.12
Oracle E-Business Suite 11i.10
12
CurrentRelease
NextRelease
Info
rmat
ion
Ag
e A
pp
lica
tio
ns
Activities between now and ‘08
Breakout Sessions
• Ask “how do you”, “has anyone else”, …
• Take advantage of “lessons learned”
• Influence direction of Enterprise SRM
• Influence direction of Fusion
Customer Usage Surveys
• What is it?
– Online functional usage questions
• Why participate?
– Provides a source of guidance and input into Fusion process
• Where do I find them?
– http://www.iouc.org/index.php?mo=st&op=ld&sid=s1_005_fusion&stpg=57
Customer Usage Scripts
• What is it?
– Scripts that provide insight into the usage and customization profile of your PeopleSoft system for Oracle’s analysis
• Why participate?
– Provides one source of guidance and input into Fusion process
• Where do I find them?
– http://www.peoplesoft.com/corp/en/support/user_groups/index.jspLogin to Customer ConnectionClick on SupportClick on User GroupLook under other resources on the right hand side and you will find "SQR Script File and Instructions for Enterprise Customers”
• What have you found so far?
Purchasing Summary• 57 purchasing customers in database
• Industry breakdown for those customers– Education and Research - 27
– Financial Services - 6
– Communications - 3
– Public Sector - 7
– Health Care - 4
– Life Sciences - 1
– Industrial Manufacturing - 2
– High Technology - 2
– Media and Entertainment - 1
– Professional Services - 1
– Consumer Products – 1
– Blank - 1
Sample:Purchasing Feature Usage Analysis
Feature Correlated ObjectName
Customer Usage %
Key Volume Fact
Purchase Order Price Adjustments
PO_VAL_ADJ where number of rows > number of PO_LINE_SHIP rows
22 (38%)
Requisitions that average at least 3 schedules per line
REQ_LINE_SHIP / REQ_LINE > 2
0 Customers typically have one requisition schedule per line
Purchase orders that average at least 2 distributions per schedule
PO_LN_DISTRIB / PO_LINE_SHIP > 2
0 Customers typically have one PO distribution per schedule
PO Approval Workflow
PO_APPROVAL_ WL 19 out of 57 (33%)
Between 10,000 and 165,000
Requisition Approval Workflow
REQ_APPROVAL_WL 15 (26%) Between 450 and 550,000
Q&AQ&A