Services Procurement

8/10/2019 Services Procurement

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The following is intended to outline our generalproduct direction. It is intended for informationpurposes only, and may not be incorporated into anycontract. It is not a commitment to deliver any

material, code, or functionality, and should not berelied upon in making purchasing decisions.The development, release, and timing of anyfeatures or functionality described for Oracles

products remains at the sole discretion of Oracle.


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Agenda

Overview and Trends

PeopleSoft Services Procurement Solution

Whats New in Release 9


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Why is Goods Procurement Important?

20%

23%

25%

27%

43%

60%

0% 20% 40% 60% 80%

Reduce Maverick Spend

Centralize Procurement Processes

Improve Spend Visibility

Reduce Transaction Costs

Improve Compliance

Automate Procurement Processes

Source: September, 2006


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Procurement Best Practices

Maximize Self-Service

Enforce approval andtendering policies

Establish and monitor

spend objectives

Utilize ProcurementCards

Enable timely useractions through proactivenotifications

Best Practice

Focus on strategicactivities

Gain visibility and controlover spending

Improve internal policycompliance

Maximize contract spend

Leverage supplier base

Improve productivity

Benefit


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Payables Best Practices

Eliminate paper invoice(use ERS, web-invoicing,XML/EDI)

Enable supplier self-

service Leverage auto-matching

rules

Enable duplicateinvoice/vendor setupchecking

Limit non-PO invoices

Best Practice

Improve internal policycompliance

Improve productivity

Improve accuracy

Take advantage ofpayment discounts

Reduce supplierinquiries, increasing timeanalysts can spend onmore value-added

projects

Benefit


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reduced MRO item costs by 20%

sourced 50,000 items and reduced costs by 20%

increased purchasing volume discounts by 5%

reduced purchase order cycle time by 75%

reduced purchase order processing time by 86%

reduced purchasing processing costs 89%

saved over $11M from Procurement & other apps

saved over $1.1M annually via integrated procurement

saved over 25% on indirect goods purchases

implemented internet procurement in only 60 days

ThompsonTravelGroup

What Customers are Achieving
http://www.pella.com/http://www.irco.com/http://www.technip.com/english/index.htm


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Time to Expand Your Spend Management?

Future improvements in goods procurement can beexpected to be modest.

Pressure for further cost reduction and performanceimprovement remains robust.

Fortunately, a relatively large and untapped area forimprovement exists

services.


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Request

PurchaseOrder

OrderApproval

ChangeRequest

InventorySource

Receive

Returns

Dispatch

GOODS SERVICES

WorkOrder

Manage T&E/Progress Logs

On-BoardOff-Board

Approve

Analyze

Invoice

Payment


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ePro and sProPowerfulCombo to Manage Goods and Serv ices Spend

Capability ePro sPro

Powerful, easy to use self service capability x x

Configurable, flexible approval workflow x x

Simple services x x*

Integration with Enterprise ERP suite x x

Easy to use catalogs for purchasing indirect goods x

Integration with Resource Management, TAM and HCM x

Competency based requisitions x

Integrated sourcing and bidding for Services x

Services specific workflow items like interviews, onboarding/offboarding x

Third party VMS integration x

Integrated, rules based time reporting, progress reporting and expense reporting feedsback to projects and financials

x

Integrated self billed invoicing x


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Services Procurement TrendsWhat Experts Are Saying

Service spend averages $1.8B for the typical Fortune1000 company (11% of revenue or 31% of spend)

Procurement manages only 52% of services spend

Outsourcing in the U.S. is growing by 24% annually

Average cost to hire a contractor is $4,500

Over 60% of services invoices are inaccurate
http://www.metagroup.com/index.html


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Services Procurement TrendsWhat Your Peers Are Saying

Importance of servicesamong supply chainactivities

Source: Aberdeen


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procurement executives have made increasingspend under management one of their top three

initiatives. These executives will focus onexpanding the volume and breadth of spend under

management of the procurement group. Servicesare viewed as top categories for improvements.

enterprises are transitioning more spend andcategories under procurements oversight. Each

new dollar put under procurements control yields a

5% to 20% savings.

The CPOs Agenda ReportAberdeenGroup 2005


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Understanding Services ProcurementServices Procu rement A t-A -Glance

Services Suppl iers

Source services

Identify preferred suppliers Negotiate master agreements

Aggregate / analyze enterprise spend

Plan and budget for services

Reconcile and settle invoices

Manage time cards

Track expenses against projects / budgets

Recruit and onboardselected candidates

Track supplier skillsand job performance

Procurement

Finance

ServiceRequestor

Initiate service order Specify service

requirements

Review and selectcandidates

Track deliverables

HumanResources


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Service Level-Based

Communications

Business Apps Hosting

Retainer-Based Services

Legal Services Business System Support

Defined Deliverables

Construction

Software Development

Time and Materials

Consulting

Training

Resource-Based Services

Administrative Support

Contingent Labor

Fixed Price Services

Facilities Maintenance Print Marketing

Variable Cost and Contract Structu res Contr ibu te to

Services Procurement Comp lexi ty

Understanding Services ProcurementServices Categor ies


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Business Objectives

Performance Management Verify that the services rendered are

the same as the services requested

Improve contractor performanceand requestor satisfaction

ServicesProcurement

Services Management Gain visibility and control of services

spend, future commitments, andapprovals

Ensure that only approved serviceproviders are being used

Compliance and Oversight

Ensure compliance to masteragreement rates, terms, conditions,and service levels

Enforce internal policies and regulatoryrequirements

Supplier Performance

Minimize invoicing discrepancies andmaximize discounts

Ensure competitive rates withinestablished budgetary limits


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Getting Started with Services Spend

Asses your services spend opportunities Take on the whole enchilada, probably too big

Take an incremental approach; Target area(s) of service(s)

Get wins that can provide justification for larger rollout

Partner with other organizations to drive the strategy For example, IT or HR

You have shared interest in Services Procurement

Get executive sponsorship

Enable the process with the right tools and technology


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Oracles Applications StrategyApplications Unlimited For PeopleSoft Enterprise

Oracles plan to continue providing ongoing enhancements

to current PeopleSoft Enterprise applications beyond

the delivery of Oracle Fusion Applications

Latest Release Next Release

UnlimitedVersio n 9.1Version 9.0

UnlimitedFUSION


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Continued Product ReleasesHow Do Customers Part ic ipate

SRM Product User Group

One on one customer meetings

Services Procurement Special Interest Group


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PeopleSoft Services Procurement

Experienced In Services Procurement

Launched the first product in 1999

Complete end to end Services Procurement solution for contingent

labor and complex services

Robust integration with the PeopleSoft enterprise

Solution is designed to meet the requirements of complex global HR

contingent labor procurement

Strong heritage in Human Capital Management


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DemandCollection

IndirectGoods

DirectMaterials

EngineeredGoods

Services ApprovalRouting

TouchlessBuying

AutomatedPayment

Enforce Policy Compliance

Budget-BasedProcurement

ContractManagement

SupplierPerformance

Reduce Spend on Goods and Services

CategoryManagement

OnlineSourcing

SpendAnalysis

Streamline Procurement Processes

SupplierCollaboration

Settlement

Orders

ProfileManagement

SupplierNetwork

LogisticsSupplierPortal

Peoplesoft Enterprise SRMThe Integrated Suite that Dramatical ly Cuts A l l Supply Mgm t Cos ts

Oracle company confidential, 2005


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eProcurementSelf Service Focus

CatalogsRequest ManagerDesktop ReceivingChange Request

Services Procurement

Self Service FocusSkills-based Job TemplatesOnboarding/OffboardingAgreement EnforcementTime & Expense TrackingConsolidated Invoicing

PurchasingProfessional FocusContractsVendor RebatesChange OrderRFQsCentral Receiving


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Best Practices

FIRSTAND ONLYSRM provider certified by theHackett Group for embedding

best practicesbusiness process.

Spherion


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Services Procurement Integration

HCM Warehouse

SCM Data Warehouse

eSettlements

eSupplier Connection

Purchasing

General Ledger

Strategic Sourcing

eProcurement

Accounts Payables

SRM Services Procurement

Resource Mgmt

Projects

ESA

Org Hierarchy

Competency Mgmt

TAM

HCM

Financials

Generate Invoice

Approve T&E/

Deliverables

Create Work Order

Negotiate Contract

Source

Create Request

Config. Base Data

Person ID


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Reduce Cost And Services Spend

Improve Efficiency in Services Management and Billing

Create Visibility into Services Spend


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Standardized Templates

Service

requisition Work order Time reporting

Centralized Information

Approved suppliers

Global agreements and contracts Certifications and competencies Real-time performance

SettleManageProcure

FinancialsHuman Resources Projects

Requestor ServiceProviders

Supplier Collaboration

Respond to RFx / bid

View WOs & time cards Monitor performance

PeopleSoft Enterprise Services Procurement

SecureAccess

Electronic billpresentment

Manage compliance

Project status Track expenses

Recruit candidates Share contractor

performance

Onboard candidates

Request Source Analyze


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Service



Approved suppliers


SettleManageProcure







SecureAccess


Plan and budget Manage compliance

Project status Manage resources Track expenses


performance

Onboard candidates



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sPro Requisition

Choose Service


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sPro Requisition

Competency Based Service Requisitions

Candidate Screening


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sPro Requisition


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End-to-End Process Automation


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sPro Sourcing

Choose Requisition To Source


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sPro Sourcing

Select Vendors


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sPro Sourcing


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Service



Approved suppliers


SettleManageProcure







SecureAccess





performance

Onboard candidates



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Service



Approved suppliers


SettleManageProcure







Secure

Access





performance

Onboard candidates



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sPro Time Reporting

Enter Hours

P Ti R ti


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sPro Time Reporting


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sPro Progress ReportingMilestone

Milestone Pre-defined Milestone Amount


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sPro Progress ReportingRate Based

ActivityPre-defined Rate


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Service



Approved suppliers


SettleManageProcure







Secure

Access





performance

Onboard candidates



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Service



Approved suppliers


SettleManageProcure







Secure

Access





performance

Onboard candidates



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sPro ReportingInteract ive Reports

Analyze service provider rosters.

Analyze service provider performance.

Analyze service provider length of stay.

Analyze expense life cycles.

Analyze expense variance.

Analyze supplier performance.

Compare supplier rates.

Analyze minority-owned suppliers.


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P R i


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sPro ReportingInteractive Reports

Configurable Approval Management


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Configurable Approval Management

Financial Controls

Role-Based Security

Approval Workflow

Corporate Policy

Define rules-based approvallist including amount,requestor, department, andproject

Validate funds availabilityin real-time

Perform line level requisitionapprovals and automatenotifications

Support budget, encumbrance,and project accounting

Set tolerances forcommitments against a budget

Allocate costs to one or moreprojects or grants

Manage view, update and approvalhierarchies Control requester access to

authorized catalogs

Define controls by user, cost-center,location, item, commodity, etc.

Allocate spending to approvedsuppliers at negotiated prices

Manage by exception


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DriveSuperior

Ownership

Experience

DeliverBest-in-Class

Business

Processes

Accelerate

the Path

to Fusion

Release 9 Themes


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S i P t D l i R l


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Serv ices Procu rement Del ivers Real

Value

Improve negotiating leverage and lower service cost

Eliminate over-billing and increase early pay discounts

Reduce maverick spend

Reduce provisioning costs and cycle time Increase user satisfaction

Improve service consistency and predictability

Improve contract and regulatory compliance Manage supplier base and track supplier performance

Enhance planning and budgeting

CostReduction

5-15%

Quality &Performance

5-10%

ReducedRisk


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Reduce Cost And Services Spend

Improve Efficiency in Services Management and Billing

Create Visibility into Services Spend

More Service Spend Managed by Procurement


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Services Procurement

Documents

Transcript of Services Procurement