R12 Oracle Sourcing Fundamentals SG

R12 Oracle Sourcing Fundamentals Student Guide

D50463GC10

Edition 1.0

August 2008

D55957

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Copyright 2006, 2008, Oracle. All rights reserved. Disclaimer This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way. Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display, perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorization of Oracle. The information contained in this document is subject to change without notice. If you find any problems in the document, please report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not warranted to be error-free. Restricted Rights Notice If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS The U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract. Trademark Notice Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Author

Richard Sears

Technical Contributors and Reviewers

German Bertot, Barbara Snyder

This book was published using: Oracle Tutor

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Copyright Oracle 2008. All rights reserved.

Sourcing Fundamentals Table of Contents i

Table of Contents

Oracle Sourcing Functionality Overview ......................................................................................................1-1 Oracle Sourcing Functionality Overview ......................................................................................................1-3 Objectives ......................................................................................................................................................1-4 Sourcing Process ...........................................................................................................................................1-5 Manual Sourcing Process ..............................................................................................................................1-6 Online Sourcing Process................................................................................................................................1-7 Oracle Sourcing Productivity Benefits ..........................................................................................................1-8 Oracle Advanced Procurement ......................................................................................................................1-10 Oracle Advanced Procurement Applications.................................................................................................1-11 Sourcing Within Oracle Advanced Procurement...........................................................................................1-13 Benefits of Key Oracle Sourcing Functionality.............................................................................................1-14 Benefit 1 : Establish and Maintain Corporate Sourcing Strategy ...............................................................1-15 Benefit 2 : Invite and Collaborate with Suppliers.......................................................................................1-17 Benefit 3: Manage Complex Negotiations Effectively ...............................................................................1-19 Benefit 4 : Provide Negotiation Strategies..................................................................................................1-21 Benefit 5: Optimize the Decision Process ..................................................................................................1-23 Benefit 6: Award Negotiations and Generate Purchase Orders ..................................................................1-24 Summary........................................................................................................................................................1-25

Oracle Sourcing Product Overview ...............................................................................................................2-1 Oracle Sourcing Product Overview ...............................................................................................................2-3 Objectives ......................................................................................................................................................2-4 Navigating Oracle Sourcing Pages ................................................................................................................2-5 Oracle Sourcing Buyer Home Page ...............................................................................................................2-6 Oracle Sourcing Supplier Home Page ...........................................................................................................2-7

Guided Demonstration - Navigating Oracle Sourcing Pages.....................................................................2-8 Searching for Negotiations ............................................................................................................................2-10 Negotiations Search - Simple Search.............................................................................................................2-12 Negotiations Search Advanced Search .......................................................................................................2-14 Using the Search and Select Window............................................................................................................2-15 Negotiation Summary - Buyer.......................................................................................................................2-16 Negotiation Summary Supplier ..................................................................................................................2-17

Guided Demonstration - Conducting Searches..........................................................................................2-18 Oracle Sourcing Users ...................................................................................................................................2-20 Oracle Sourcing Super Users.........................................................................................................................2-21 Oracle Sourcing Buyers.................................................................................................................................2-22

Practice - Create a Sourcing Buyer............................................................................................................2-23 Solution Creating a Sourcing Buyer .......................................................................................................2-24 Guided Demonstration - Run the Fill Employee Hierarchy Process .........................................................2-28 Practice - Set Yourself Up As a Buyer ......................................................................................................2-29

Oracle Sourcing Supplier Users.....................................................................................................................2-31 Oracle Sourcing Process ................................................................................................................................2-32 Summary........................................................................................................................................................2-33

Creating Negotiations......................................................................................................................................3-1 Creating Negotiations ....................................................................................................................................3-3 Objectives ......................................................................................................................................................3-4 Negotiation Process .......................................................................................................................................3-5 Creation Process ............................................................................................................................................3-6 Sourcing Documents......................................................................................................................................3-8 Negotiation Header Information -1................................................................................................................3-10 Negotiation Header Information - 2...............................................................................................................3-11 Header Information Negotiation Name and Organization..........................................................................3-12

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Sourcing Fundamentals Table of Contents ii

Header Information - Response Styles ..........................................................................................................3-13 Header information - Negotiation Styles .......................................................................................................3-14 Header Information - Negotiation Outcomes ................................................................................................3-15 Header Information Security Level ............................................................................................................3-16 Header Information Collaboration Teams ..................................................................................................3-17 Header Information - Terms and Conditions .................................................................................................3-19 Header Information Specifying Currency Information...............................................................................3-20 Header Information Specifying Exchange Rates ........................................................................................3-22 Header Information Abstract and Forms ....................................................................................................3-23 Header Information Notes and Attachments...............................................................................................3-24 Creation Process ............................................................................................................................................3-25 Entering Line Information - 1........................................................................................................................3-26 Entering Line Information - 2........................................................................................................................3-27 Adding Lines .................................................................................................................................................3-28 Line Information - 1 ......................................................................................................................................3-29 Lines, Lots, and Groups.................................................................................................................................3-31 Line Information - 2 ......................................................................................................................................3-33 Line Information - 3 ......................................................................................................................................3-35 Creation Process ............................................................................................................................................3-36 Negotiation Date Controls .............................................................................................................................3-37 Staggered Line Closing .................................................................................................................................3-38 Negotiation Supplier Controls .......................................................................................................................3-39 Negotiation Response Controls .....................................................................................................................3-40 Negotiation Length Controls .........................................................................................................................3-41 AutoExtend....................................................................................................................................................3-42 Using AutoExtend .........................................................................................................................................3-43 Triggering AutoExtend From Multiple Bids .................................................................................................3-44 Negotiation Completion Controls..................................................................................................................3-45 Creation Process ............................................................................................................................................3-46 Contract Clauses and Deliverables ................................................................................................................3-47 Creation Process ............................................................................................................................................3-48 Identifying Invitees........................................................................................................................................3-49 Performing Supplier Searches .......................................................................................................................3-50 Supplier Searches ..........................................................................................................................................3-51 ASL Searches ................................................................................................................................................3-52 Business Classification Search ......................................................................................................................3-53 Restricting Suppliers......................................................................................................................................3-54 Creation Process ............................................................................................................................................3-55 Document Approval Process .........................................................................................................................3-56 Creation Process ............................................................................................................................................3-57 Reviewing the Negotiation ............................................................................................................................3-58 Publishing the Negotiation ............................................................................................................................3-59 Sharing Draft Sourcing Documents...............................................................................................................3-60 Printing Negotiation Information ..................................................................................................................3-61

Practice - Create a Simple Auction............................................................................................................3-62 Solution Create a Simple Auction ..........................................................................................................3-65

Additional Creation Methods ........................................................................................................................3-70 Practice Using Spreadsheet Upload........................................................................................................3-71 Solution Using Spreadsheet Upload .......................................................................................................3-72 Practice Using AutoCreate......................................................................................................................3-74 Solution Using AutoCreate.....................................................................................................................3-75

Summary........................................................................................................................................................3-78 Using Requirements and Negotiation Attributes ..........................................................................................4-1

Using Requirements and Negotiation Attributes ...........................................................................................4-3 Objectives ......................................................................................................................................................4-4 Negotiation Attributes ...................................................................................................................................4-5

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Sourcing Fundamentals Table of Contents iii

Requirements.................................................................................................................................................4-7 Defining Requirements..................................................................................................................................4-8 Defining Requirements - Process .................................................................................................................4-9 Add Requirement Page..................................................................................................................................4-10 Requirement Properties .................................................................................................................................4-11 Requirement Examples..................................................................................................................................4-13 Scoring Requirements....................................................................................................................................4-14 Using Automatic Scoring ..............................................................................................................................4-15 Defining Acceptable Values Text...............................................................................................................4-16 Defining Acceptable Values - Numbers and Dates ......................................................................................4-17 Using Manual Scoring ...................................................................................................................................4-18 Scoring Teams ...............................................................................................................................................4-19 Defining Scoring Teams................................................................................................................................4-20 Creating Scoring Teams ................................................................................................................................4-21 Using Weights ...............................................................................................................................................4-23 Calculating a Response's Total Score ............................................................................................................4-24

Practice - Creating Requirements ..............................................................................................................4-25 Solution Creating Requirements .............................................................................................................4-27

Line Attributes...............................................................................................................................................4-31 Defining Line Attributes................................................................................................................................4-32 Attribute Examples ........................................................................................................................................4-34 Negotiating Using Attributes.........................................................................................................................4-35 Multi-Attribute Scoring Negotiations............................................................................................................4-36 MAS Calculations .........................................................................................................................................4-37 Weight Examples...........................................................................................................................................4-38 Attribute Value Scores...................................................................................................................................4-39 Scoring Example ...........................................................................................................................................4-40

Practice Creating Line Attributes ...........................................................................................................4-41 Solution Creating Line Attributes...........................................................................................................4-42

Calculating the Price to Score Ratio ..............................................................................................................4-44 Summary........................................................................................................................................................4-45

Additional Creation Tools...............................................................................................................................5-1 Additional Creation Tools .............................................................................................................................5-3 Objectives ......................................................................................................................................................5-4 Additional Negotiation Creation Tools..........................................................................................................5-5 Cost Factors ...................................................................................................................................................5-6 Buyer Cost Factors ........................................................................................................................................5-7 Supplier Cost Factors.....................................................................................................................................5-8 Example Supplier Cost Factors .....................................................................................................................5-9 Negotiating Using Supplier Cost Factors ......................................................................................................5-10 Creating Supplier Cost Factors......................................................................................................................5-11 Reusable Cost Factor Lists ............................................................................................................................5-12

Practice Using Cost Factors....................................................................................................................5-13 Solution Using Cost Factors ...................................................................................................................5-14

Price Breaks...................................................................................................................................................5-17 Price Break Examples....................................................................................................................................5-18 Setting Up Price Breaks.................................................................................................................................5-19 Invitation Lists...............................................................................................................................................5-21

Practice - Create an Invitation List ............................................................................................................5-22 Solution Create an Invitation List ...........................................................................................................5-23

Spreadsheet Upload of Header Attributes and Lines .....................................................................................5-25 Sourcing Document Templates......................................................................................................................5-26

Practice - Creating a Negotiation Template...............................................................................................5-27 Solution Creating a Negotiation Template .............................................................................................5-28

Using Negotiation Events ..............................................................................................................................5-31 Practice - Create an Event..........................................................................................................................5-32

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Sourcing Fundamentals Table of Contents iv

Solution Create an Event ........................................................................................................................5-33 Summary........................................................................................................................................................5-35

Responding to Negotiations ............................................................................................................................6-1 Responding to Negotiations...........................................................................................................................6-3 Objectives ......................................................................................................................................................6-4 Suppliers, Supplier Sites, and Supplier Users................................................................................................6-5 Adding Supplier Profile Information.............................................................................................................6-6

Guided Demonstration - Entering Supplier Information ...........................................................................6-7 Supplier Users ...............................................................................................................................................6-9 Sourcing Supplier Responsibility ..................................................................................................................6-10 Sourcing Supplier Responsibility Functions..................................................................................................6-11 Supplier User Registration Methods..............................................................................................................6-12 Using Invitation Notifications .......................................................................................................................6-13 Inviting Suppliers From Negotiations............................................................................................................6-14 Completing the Registration Notification (Supplier Users)...........................................................................6-15 Completing the Registration Request (Buyer/Supplier User Manager).........................................................6-16 Directly Registering Supplier Users ..............................................................................................................6-17 Registration Authorizations ...........................................................................................................................6-18 Sourcing Default Responsibility....................................................................................................................6-19

Practice Creating a Supplier and a Supplier User ...................................................................................6-20 Solution Creating a Supplier and a Supplier User ..................................................................................6-21

Response Process...........................................................................................................................................6-24 Response Methods.........................................................................................................................................6-26 Using the Supplier Home Page......................................................................................................................6-27 Searching for Negotiations ...........................................................................................................................6-28 Accessing Negotiations .................................................................................................................................6-29 Using the Negotiation Summary Page...........................................................................................................6-30 Printing Negotiation Information ..................................................................................................................6-31

Practice - Printing a Negotiation Document ..............................................................................................6-32 Solution Printing a Negotiation Document.............................................................................................6-33

Response Process...........................................................................................................................................6-34 Draft Response ..............................................................................................................................................6-36 Response Information....................................................................................................................................6-37 Responding to Requirements.........................................................................................................................6-38 Responding to Line Criteria...........................................................................................................................6-39 Responding to Line Attributes.......................................................................................................................6-40 Responding to Cost Factors ...........................................................................................................................6-41 Responding to Price Breaks...........................................................................................................................6-42 Contract Deliverables ....................................................................................................................................6-43 Using Notes and Attachments .......................................................................................................................6-44

Practice - Responding to a Negotiation .....................................................................................................6-45 Solution Responding to a Negotiation ....................................................................................................6-46

Power Bidding ...............................................................................................................................................6-49 Proxy Bidding................................................................................................................................................6-50 Surrogate Bidding..........................................................................................................................................6-52 Summary........................................................................................................................................................6-53

Monitoring Negotiations .................................................................................................................................7-1 Monitoring Negotiations................................................................................................................................7-3 Objectives ......................................................................................................................................................7-4 Monitor Process.............................................................................................................................................7-5 Best Response................................................................................................................................................7-6 Buyer Monitor/Management Tools ...............................................................................................................7-7 Live Console..................................................................................................................................................7-8

Practice - Using Live Console ...................................................................................................................7-9 Solution Using Live Console..................................................................................................................7-10

Analyze By Response....................................................................................................................................7-12

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Sourcing Fundamentals Table of Contents v

Analyze By Line............................................................................................................................................7-13 Analyzing Responses to Price Breaks ...........................................................................................................7-14 Buyer Graphical Monitors .............................................................................................................................7-15 Spreadsheet Analysis .....................................................................................................................................7-16

Practice - Performing Response Analysis..................................................................................................7-17 Solution Performing Response Analysis ................................................................................................7-18

Monitor Supplier Activities Page ..................................................................................................................7-21 Supplier Lock Out .........................................................................................................................................7-23

Guided Demonstration - Using the Monitor Supplier Activities Display..................................................7-24 Collaborative Messaging ...............................................................................................................................7-25 Shortlisting Suppliers ....................................................................................................................................7-27 Negotiation Pause ..........................................................................................................................................7-28 Negotiation Extend ........................................................................................................................................7-29

Guided Demonstration - Pausing and Extending a Negotiation ................................................................7-30 Supplier Monitor Tools .................................................................................................................................7-32 Negotiation Monitor ......................................................................................................................................7-33 Response History Page ..................................................................................................................................7-35 Analyze By Response....................................................................................................................................7-36 Analyze By Line............................................................................................................................................7-37 Supplier Graphical Monitors .........................................................................................................................7-38 Negotiation Amendments ..............................................................................................................................7-39

Practice - Creating an Amendment ............................................................................................................7-40 Solution Creating an Amendment...........................................................................................................7-41 Practice - Acknowledging a Negotiation Amendment ..............................................................................7-44 Solution Acknowledging a Negotiation Amendment .............................................................................7-45

Multi-Round ..................................................................................................................................................7-48 Practice - Taking a Negotiation to a Subsequent Round of Responding ...................................................7-49 Solution Taking a Negotiation to a Subsequent Round of Responding..................................................7-50

Additional Monitoring Tools.........................................................................................................................7-53 Summary........................................................................................................................................................7-54

Awarding Negotiations....................................................................................................................................8-1 Awarding Negotiations..................................................................................................................................8-3 Objectives ......................................................................................................................................................8-4 Award Process - 1..........................................................................................................................................8-5 Award Process - 2..........................................................................................................................................8-6 Negotiation Summary Page ...........................................................................................................................8-7 Unlocking/Unsealing Responses ...................................................................................................................8-8 Scoring Requirements....................................................................................................................................8-9 Calculating Requirement Scores....................................................................................................................8-10

Practice - Scoring Requirements...............................................................................................................8-11 Solution Scoring Requirements ..............................................................................................................8-12

Award Methods .............................................................................................................................................8-15 Awarding By Line .........................................................................................................................................8-16 Awarding By Response .................................................................................................................................8-17 Awarding Multiple Lines...............................................................................................................................8-18 Awarding By Spreadsheet .............................................................................................................................8-19 Using Award Optimization Feature...............................................................................................................8-20 Award Optimization Feature .........................................................................................................................8-21 Scenario Constraints ......................................................................................................................................8-22

Practice - Creating an Award Scenario......................................................................................................8-24 Solution Creating an Award Scenario.....................................................................................................8-25 Practice - Awarding a Negotiation.............................................................................................................8-27 Solution Awarding Business in a Negotiation ........................................................................................8-28

Award Approval ............................................................................................................................................8-32 Completing the Award...................................................................................................................................8-33 Generating Purchase Orders ..........................................................................................................................8-34

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Sourcing Fundamentals Table of Contents vi

Allocating Requisitions to a Purchase Order ................................................................................................8-35 Default Allocation .........................................................................................................................................8-36 Notifying Suppliers........................................................................................................................................8-38

Practice - Generating a Purchase Order .....................................................................................................8-39 Solution Generating a Purchase Order....................................................................................................8-40

Summary........................................................................................................................................................8-42 Using Negotiations and Collaborative Messaging.........................................................................................9-1

Using Notifications and Collaborative Messaging .......................................................................................9-3 Objectives ......................................................................................................................................................9-4 Notifications ..................................................................................................................................................9-5 Notification Events ........................................................................................................................................9-6 Accessing Notifications.................................................................................................................................9-7 Collaborative Messaging ...............................................................................................................................9-8 Creating a Message........................................................................................................................................9-10 Accessing Messages ......................................................................................................................................9-11

Guided Demonstration - Using Notifications and Collaborative Messaging.............................................9-12 Summary........................................................................................................................................................9-15

Using Forms and Abstracts.............................................................................................................................10-1 Using Forms and Abstracts............................................................................................................................10-3 Objectives ......................................................................................................................................................10-4 Forms and Abstracts ......................................................................................................................................10-5 Abstracts ........................................................................................................................................................10-6 Forms.............................................................................................................................................................10-7 Modifying the Abstract and Forms................................................................................................................10-8 Fields and Sections ........................................................................................................................................10-9 Values and Value Sets ...................................................................................................................................10-10 Creating Forms ..............................................................................................................................................10-11 Mapping the XML File..................................................................................................................................10-12

Guided Demonstration - Modifying the Abstract and Creating a Form ....................................................10-13 Practice Creating a Form ........................................................................................................................10-16 Solution Creating a Form........................................................................................................................10-17

Summary........................................................................................................................................................10-21 Using Transformational Bidding....................................................................................................................11-1

Using Transformational Bidding ...................................................................................................................11-3 Objectives ......................................................................................................................................................11-4 Transformational Bidding..............................................................................................................................11-5 Supplier and Buyer Price Factors ..................................................................................................................11-6 Example Buyer Price Factors ........................................................................................................................11-8 Visibility of Buyer Price Factor Effects ........................................................................................................11-9 Example 1 Transformations Visible ...........................................................................................................11-10 Example 2 Transformations Not Visible ....................................................................................................11-11 Defining Buyer Price Factors ........................................................................................................................11-12

Guided Demonstration - Using Transformational Bidding........................................................................11-13 Summary........................................................................................................................................................11-16

Processing Large Negotiations........................................................................................................................12-1 Processing Large Negotiations ......................................................................................................................12-3 Objectives ......................................................................................................................................................12-4 Large Negotiations ........................................................................................................................................12-5 Regular Versus Large Negotiations...............................................................................................................12-6 Using Large Negotiations ..............................................................................................................................12-7 Setup Parameters For Large Negotiations .....................................................................................................12-8

Guided Demonstration - Using Large Negotiations ..................................................................................12-9 Summary........................................................................................................................................................12-11

Setting Up and Implementing Oracle Sourcing ............................................................................................13-1

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Sourcing Fundamentals Table of Contents vii

Setting Up and Implementing Oracle Sourcing .............................................................................................13-3 Objectives ......................................................................................................................................................13-4 Implementation Applications.........................................................................................................................13-5 Implementation Tasks in Applications Technology Group ...........................................................................13-6 Modifying and Assigning Sourcing Responsibilities ....................................................................................13-7 Modifying the Sourcing Buyer Responsibility - 1 .........................................................................................13-8 Modifying the Sourcing Buyer Responsibility - 2 .........................................................................................13-9 Setting System Profile Options - 1 ................................................................................................................13-10 Setting System Profile Options - 2 ................................................................................................................13-12 Setting Workflow Options.............................................................................................................................13-13 Setting Up Demand Workbench....................................................................................................................13-14 Implementation Tasks Performed in Oracle Sourcing...................................................................................13-16 Setting Up Terms and Conditions..................................................................................................................13-17 Creating Negotiation Styles...........................................................................................................................13-18 Defining Notification Subscriptions ..............................................................................................................13-19 Setting Negotiations Configuration Values ...................................................................................................13-20 Rank Indicator and Visibility.........................................................................................................................13-22 Cost Factor and Price Break Defaults............................................................................................................13-23 Award Approval ............................................................................................................................................13-24 Requirements and Attributes Defaults...........................................................................................................13-25 Default UOM for Amount-Based Lines ........................................................................................................13-26 Multi-Round Negotiation Price Default ........................................................................................................13-27 Large Negotiation Support ............................................................................................................................13-28 Supplier Defaults ...........................................................................................................................................13-29 Implementation Tasks in Oracle Purchasing .................................................................................................13-30 Supplier Registration Tasks Performed in Oracle Purchasing.......................................................................13-31 Additional Implementation Tasks..................................................................................................................13-32 Implementation Process - 1 ...........................................................................................................................13-33 Implementation Process - 2 ...........................................................................................................................13-34 Implementation Process - 3 ...........................................................................................................................13-35 Summary........................................................................................................................................................13-36

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Sourcing Fundamentals Table of Contents ix

Preface

Profile

Before You Begin This Course

Thorough knowledge of Oracle Purchasing

Prerequisites

R12 Oracle Purchasing Fundamentals

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced.

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Sourcing Fundamentals Table of Contents x

Related Publications

Oracle Publications Title Part Number

Oracle Sourcing Implementation and Administration B3159901

Oracle Purchasing Users Guide B28669-01

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Sourcing Fundamentals Table of Contents xi

Typographic Conventions

Typographic Conventions in Text Convention Element Example Bold italic Glossary term (if

there is a glossary) The algorithm inserts the new key.

Caps and lowercase

Buttons, check boxes, triggers, windows

Click the Executable button. Select the Cant Delete Card check box. Assign a When-Validate-Item trigger to the ORD block. Open the Master Schedule window.

Courier new, case sensitive (default is lowercase)

Code output, directory names, filenames, passwords, pathnames, URLs, user input, usernames

Code output: debug.set (I, 300); Directory: bin (DOS), $FMHOME (UNIX) Filename: Locate the init.ora file. Password: User tiger as your password. Pathname: Open c:\my_docs\projects URL: Go to http://www.oracle.com User input: Enter 300 Username: Log on as scott

Initial cap Graphics labels (unless the term is a proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words and phrases, titles of books and courses, variables

Do not save changes to the database. For further information, see Oracle7 Server SQL Language Reference Manual. Enter [email protected], where user_id is the name of the user.

Quotation marks

Interface elements with long names that have only initial caps; lesson and chapter titles in cross-references

Select Include a reusable module component and click Finish. This subject is covered in Unit II, Lesson 3, Working with Objects.

Uppercase SQL column names, commands, functions, schemas, table names

Use the SELECT command to view information stored in the LAST_NAME column of the EMP table.

Arrow Menu paths Select File > Save. Brackets Key names Press [Enter]. Commas Key sequences Press and release keys one at a time:

[Alternate], [F], [D] Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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Sourcing Fundamentals Table of Contents xii

Typographic Conventions in Code Convention Element Example Caps and lowercase

Oracle Forms triggers

When-Validate-Item

Lowercase Column names, table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER (OG_GET_LAYER (prod_pie_layer))

Lowercase italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and functions

SELECT userid FROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab

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Sourcing Fundamentals Table of Contents xiii

Typographical Conventions in Oracle Application Help System Paths

This course uses a navigation path convention to represent actions you perform to find pertinent information in the Oracle Applications Help System.

The following help navigation path, for example

(Help) General Ledger > Journals > Enter Journals

represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system window.

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Sourcing Fundamentals Table of Contents xiv

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Copyright Oracle, 2008. All rights reserved.

Oracle Sourcing Functionality Overview Chapter 1 - Page 1

Oracle Sourcing Functionality Overview Chapter 1

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Oracle Sourcing Functionality Overview

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Objectives

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Sourcing Process

Sourcing Process

This page presents the entire sourcing process. Analyze

Analyze needs to identify sourcing opportunities and establish strategy. Sourcing buyers have access to a wide variety of reports to analyze and build upon previous sourcing activities. Summary reports provide buyers with a quick overview, whereas detailed sourcing activity reports allow buyers to drill down to analyze and better understand specific sourcing areas.

Develop Develop specifications, aggregate items, and define negotiation attributes.

Qualify Qualify sources by identifying suppliers and creating bidders lists.

Negotiate Negotiate and monitor events using negotiation controls.

Award Assign purchase orders to winners and optionally notify other suppliers of outcome.

Monitor Supplier Performance

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Manual Sourcing Process

Manual Sourcing Process

Manual sourcing processes require much interaction on the part of the commodity buyer, either by using paper, telephone, and/or fax machine. The process typically involves manually entering purchase orders, contracts, and other purchasing information into separate systems. These cumbersome tasks consume large amounts of time and are more reactive in nature and not strategic. The commodity buyer is strapped for resources and can not properly renegotiate all expiring contracts. Additionally, internal customers such as marketing, manufacturing and engineering are finding ways around the buying process to move quickly on purchases. Lost opportunities on group purchases or prenegotiated contract purchases result in additional savings loss.

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Online Sourcing Process

Online Sourcing Process

With the use of Oracle Sourcing to perform the sourcing process online, information is integrated and streamlined, reducing the amount of administrative tasks needing to be preformed by the commodity buyer. Information flows seamlessly from Purchasing to Sourcing, from Sourcing to Purchasing and Contracts. No re-keying of information is required. The system transfers the information throughout the process. Moving from tactical to strategic types of negotiations means that more information can be negotiations resulting in better prices. Internal customers work through the purchasing department, not around it.

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Oracle Sourcing Productivity Benefits

Oracle Sourcing Productivity Benefits

Reduced total spend the use of auctions and the reduction in time and resources spent in the supply chain managing responses to RFQs results in a reduction in total spend. Additionally, because of effective aggregation of demand, larger and more accurate quantities are procured again resulting in lower total spend. Improved Productivity Tactical tasks associated with sourcing are reduced and handled within the software, improving productivity. Analyzing spend, creating negotiation events, conducting negotiations, and creating contracts and purchase order documents are enabled in Sourcing, reducing time and resources spent on these tasks. Increased Visibility and Control The use of reverse auctions has significant return on investment. However, the returns may only be felt in the short term without lasing impact to the life of the contract. Without the ability to monitor and manage the contract, the savings realized on paper from the reverse auction are not realized. Using Oracle Sourcing, information that was once maintained in separate systems can be centrally managed and distributed. Standard business rules can be

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established and implemented easily. You can also manage compliance and take any needed corrective action.

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Oracle Advanced Procurement

Oracle Advanced Procurement

Oracle Sourcing is part of the Oracle Advanced Procurement suite of applications which is, in turn, a part of the Oracle eBusiness Suite. Oracle Sourcing complements the procurement suite by providing a complete application that allows buyers to develop RFIs, RFQ, and auctions; negotiate with suppliers; and award and create purchasing documents. Oracle Sourcing can operate as an independent application (for example, to conduct highly visible auctions) or can be implemented as part of the entire eBusiness Suite. Integration comes out of the box with the ability to create sourcing events from requisitions, create purchasing document and contracts, as well as integrate with iSupplier Portal, iProcurement and other applications.

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Oracle Advanced Procurement Applications

Oracle Advanced Procurement Applications

Oracle Purchasing Professional procurement and management tool Complete control over document routing and approval Complete control over purchase order creation Complete control over receiving

iProcurement Ability to buy administrative and production items Self guiding catalog Desktop receiving Single global instance Integration with ERP system

Sourcing Collaborative RFQ, RFIs, and auctions Negotiate all aspects of the transaction

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iSupplier Portal Record purchase order acknowledgements Reschedule Promised-By dates View RFQs View expected deliveries Create and view ASNs and ASBNs View receipts, returns, and overdue receipts Set processing lead time, minimum order quantities and fixed lot multiples View invoice and payment information. Purchasing Intelligence

Daily Business Intelligence reports for Oracle Procurement Role-based performance overviews Interactive summarization of buyer and supplier performance

Procurement Contracts Establish contract standards Author, negotiate contracts and administer contract changes Administer contract deliverables

Services Procurement Contingent labor procurement Integrates Oracle Time and Labor for payment through Oracle Payables.

Oracle Supplier Network Services to electronically enable suppliers Electronic message transformation and routing services through an Interned-based hub Self-service trading partner registration

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Sourcing Within Oracle Advanced Procurement

Sourcing Within Oracle Advanced Procurement

Oracle Sourcing is integrated with many of the other Advanced Procurement applications. Oracle Sourcing can retrieve requisition information in Oracle Purchasing and use it as the basis for negotiations. Once the negotiations are complete, the purchase documents can be created back in Purchasing. Oracle Sourcing can retrieve supplier profile and registration information contained in iSupplier portal when registering suppliers with the system and researching supplier. Supplier and transaction history information can be obtained in the for of reports from Procurement Intelligence. Contract requirements in the form of deliverables can be retrieved from Procurement Contracts and associated with a negotiation. Oracle Sourcing integrates with Services Procurement to negotiate for temp labor and other types of services.

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Benefits of Key Oracle Sourcing Functionality

Benefits of Key Oracle Sourcing Functionality

The next few pages identify the benefits offered by key Oracle Sourcing functionality.

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Benefit 1 : Establish and Maintain Corporate Sourcing Strategy

Benefit 1: Establish and Maintain Corporate Sourcing Strategy

To help establish and maintain a corporate sourcing strategy, Oracle Sourcing offers the following functionality:

Negotiation Templates Enable a buyer to create all or parts of a negotiation, which can then be used by others in the company as the basis of a negotiation. Oracle Sourcing supports public and private templates so users or buying organizations can create their own library of templates for different products/services.

Reusable Attribute Lists Buyers can create their own attributes to describe a product or service needed, then group these attributes together and save them as a list. Lists can be used during negotiation creation.

Invitation Lists Buyers can group and maintain lists of suppliers for different products or services. Buyers then apply these lists to negotiations they are creating to ensure the appropriate suppliers are targeted.

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Negotiation Copy Users may copy negotiations that they or other users in the organization have created. The details of the existing negotiation are copied into the new negotiation, although they can be edited if necessary. This allows for the quick creation of the negotiation package while maintaining standards and consistency.

Company Terms and Conditions This allows the buying company to establish certain terms and conditions that suppliers must agree to prior to participating in a negotiation.

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R12 Oracle Sourcing Fundamentals SG

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