Supplier Management: Strategy and Roadmap Mark Peachey Director, Product Strategy Sivakumar...

Supplier Management:Strategy and Roadmap

Mark PeacheyDirector, Product Strategy

Sivakumar ViswanathanProject Leader, Product Management

Mitch BaxterVP, Business Development, Transcepta

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | 3

Safe Harbor StatementThe 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


Program Agenda

Business Challenges and Product Overview

Product Roadmap and Demonstration

Supplier Enablement with Transcepta

Q & A

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Program Agenda




Q & A

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Electronic Collaboration

Search

Invitation Self RegistrationProfile & Pre-Qualification

Credit & Risk Assessment

Contracts

Business ChallengesKey Issues Across the Organization

Document Transmission

Risk Management Factors• Finance/Credit• Environmental, Health & Safety• Regulatory compliance• Corporate Social Responsibility / Code

of Conduct• Labor practices (Public Relations)

Performance Management Tools• Relationship Differentiation

(Strategic <> Primary <> Preferred)• Relationship Improvement (Probationer,

Improvement Plans)

Cost Management• Profile Administration• Transaction Management• Foundation for Spend AnalyticsProfile, Classification, Bank

Detail, etc.Recurring Assessments

TransactionAdministration

Retire

Performance Analysis & Mgmt

Identification On Boarding

Supplier Master Data


Risk & Compliance Failures• Code of conduct assurance often a

1-time event• Difficult to ensure suppliers are adhering to

laws, regulations & standards• Paper/fax procedures to track critical

documents

Supplier Management is Expensive

• Haphazard qualification and on-boarding for suppliers

• Fax-based profile administration

• Repetition of manual supplier management activities

Supplier ManagementBusiness Challenges

Supplier MasterData


TransactionAdministrationFragmented Data• System data duplicated, incomplete &/or

inaccurate• Data held within multiple systems• Data archeologist required to federate

accurate information

Poor Visibility• Qualification & performance information

gathered but invisible• Nowhere to store stakeholder intelligence • Spend analytics are incomplete and

inaccurate


Supplier Management Applications

iSupplier Portal

Supplier Lifecycle Management

Sourcing

Supplier Hub

Web-based Portal for Transactions with SuppliersWeb-based Portal for

Supplier Info

Approval Management/ On-boarding

User-Defined / Extensible Attributes

(UDAs)

Joint Strength of TCA and AP Data Models

Product Hub

Product Master

Catalog NegotiationsBidding

RFI Kit

ConsolidationPublication

Data Quality

EnrichmentSupplier Master

Item- Supplier

Association

Customer Data Hub

Customer Master

Basic Supplier Search

Basic Supplier Search

Advanced Supplier Search,

Supplier 360° View

Qualification QuestionnaireAttachments

Internal Performance Assessments


Electronic Supplier CollaborationSolution Details

BuyingOrganization

Suppliers

iSupplier Portal

Oracle Supplier Network

• iSupplier Portal– Order Collaboration– Shipping Information– Invoicing & Payment Details– Simple Registration– Basic Profile Management– Performance Review

• Oracle Supplier Network– Electronic Messaging Hub– 24x7 Hosted Service– OAG & cXML document format support– Standard connection to Oracle ERP


• Notifications and orders at a glance

• Zero training paradigm• Global view with security• Simple and

advanced search• Hyperlinked documents• Attachments• Excel import & export

Complete Procure to Pay Information

Structured Supplier CommunicationsiSupplier Portal to Eliminate Errors & Reduce Time Delay

T R A N S A C T I O N S

A D H O C I N Q U I R I E S


Procure to Pay CollaborationKey iSupplier Portal Capabilities

Ship Goods

• Create shipment notices• Add lot, serial and LPN• Excel upload for volume• Check returns• View inspections• Inbound logistics

Settlement

• Maintain bank accounts• Create invoice• Check on-hold status• View payment schedules• Reconcile statements

Order Collaboration

• View PO and agreements• Acknowledge orders• Submit change requests• VMI / consigned Inventory• Drop ship orders• Forecast sharing

Lower Costs and Improve Service Through Structured Communication


• Gather prospective vendors• Register supplier users• Invite supplier users• Set security levels

EnableSuppliers

• Set up address and key contact details

• Flag business classifications• Identify products & services• Define bank accounts• Document filing cabinet

Establish Supplier Profile

• Track ratings for price, quality, delivery, and service

• Compare performance

Review Supplier Performance

Supplier Management CollaborationKey iSupplier Portal Capabilities

Lower Costs and Improve Service Through Structured Communication


- Hosted by Oracle on Demand- Free transaction delivery service- 24 x 7 global support

Supplier Network

• Integrate out-of-the-box with Oracle EBS & Enterprise

• Enable suppliers to maintain a single connection “pipe” to access all OSN trading partners

• Leverage a single message format / mapping template and activate messaging in days

HTTP/SSMTPOnline

OAG over OXTA

Your Company Suppliers

Oracle Supplier NetworkSimplify Electronic Messaging via OSN Online Service


Search



Contracts

Profile, Classification, Bank Detail, etc.

Performance Analysis & MgmtRecurring Assessments



Obsolescence Administration

• Open and automated qualification of new suppliers

• Cross-functional supplier evaluation of potential and current suppliers

• Ensure formal governance and supplier development

Institute Supplier Governance & OversightWith Supplier Lifecycle Management & Supplier Hub

Retire



Recurring Assessments

Identification

Obsolescence Administration

Institute Supplier Governance & OversightWith Supplier Lifecycle Management and Supplier Hub

Retire Performance Analysis & Mgmt

Search

• Consolidate details for entire supply base

• Generate a trustworthy 360° view

• Cleanse data for better spend and risk management

• Share master supplier details with spoke systems

• Enrich with 3rd party data

Supplier HubOn Boarding


Profile, Classification, Bank Detail, etc.

Contracts


• Enrich supplier definition for qualification and performance assessment

• Streamline registration of prospective suppliers

• Central evaluation of supplier performance

• Assure effective governance & risk mitigation

Supplier Lifecycle Management


Program Agenda




Q & A

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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Oracle Applications: Current Release and RoadmapOracle E-Business Suite: Supplier Management (SLM, SDH ,iSP & Oracle SN)

Supplier Lifecycle Management & iSupplier Portal• Enhanced Qualification Approval Routing• Support for Parallel Approvals, Approval Groups

and FYI Reviewers• Mandatory Internal Requirement• Contact Address Association• Keyword Search• Control Default User Creation• Reinstate Rejected Supplier Requests• Streamlined Prospective Supplier Registration • View Prospective Supplier Registration Status• Approval History on Supplier Profile

Supplier Lifecycle Management• Improved Administration UX• Dependent Qualification Template Content• Update Evaluation after Submission• Enhanced Search for Supplier Registration• Automatic Evaluation Triggers• Dynamic Invitation Lists• Automated Evaluation Processing • 360 degree Supplier Scorecard

iSupplier Portal• Enhanced Change Order Process for ISP

Supplier Hub• Unified Profile Change Business Event • Supplier Merge Web Service• Enhanced Supplier Merge Tools

Supplier Collaboration • Electronic/Self-Service Invoice VAT Compliance • Tools for Extended 3rd Party Catalog Mgmt• Multi-Buyer Homepage for Suppliers on Oracle

Supplier Network• Online Contract Negotiation for Suppliers• Supplier Profile Version Tracking

Improved Compliance Management• Attachment Enhancements• Enhanced Notification Support• Compliance Documentation Tracking • Questionnaire Weight Configuration in RFI

Template

Data Management• Extensible Supplier Contact Directory • Site Tagging for D&B Extract • Expose Site reference in Batch Import• Endeca Search for Suppliers

Release 12.2.4August 2014

What’s Next0-12 month planning cycle

Future DirectionsPost 12 month planning cycle

Restricted to event use only. 17











Template







Enhancements DeliveredSupplier Registration

Computer Supplies, Inc.

New Supplier Prospect Self-Registration

Vision Computer Corp.Admin

Review, Attach Questionnaire

Supplier Evaluation, Scoring, Shortlist and Approval

Supplier & Evaluator Response mastered as profile

Supplier Master Profile

SupplierMaster

System Notification to New Supplier / Rejected Supplier

Evaluation & Scoring Team

Respond to QuestionnaireProspect Supplier Request

Prospect Supplier Request

Prospect Supplier Request

Duplicate checks

Vision Computer Corp.

Contact Address Association

Reinstate a Rejected Supplier

Streamlined Registration Process

Mandatory Internal Requirements

Enhanced Approval RoutingControl Default User Creation

Keyword Search

Computer Supplies, Inc.

New Supplier

View Prospective Supplier Registration Status











Template







Boiler Plate UpdatesFeature:• Replace Sourcing terminology on

pages and notification text

Benefits:• Using simple terminology like

Assessment, Questionnaire, Performance Evaluation provides better understanding and intuitive approach


Dependent Qualification Template ContentFeature:• Ability to associate multiple

questionnaire • Rule-based automatic pre-

qualification template selection and application

Benefits:

• Improves efficiency for the buying & supplier organization as the process becomes seamless


Dependent Questions in TemplateFeature:• Ability to define parent – child

relationship between Questions

Benefits:• Helps in managing responses from

suppliers effectively


Supplier Registration – Process flow Demonstration

Demo


Planned: Automatic Initiation of Assessment

Feature:

• Trigger compliance audit and performance evaluation automatically

• Periodically or event-based triggering

Benefits:

• Increased Productivity• Improved Usability


Planned: End-to-end Workflow Automation of Assessment

Feature:• Workflow-based end-to-end

automation for compliance audit and performance evaluation

• Sequential and parallel scoring teams.

• Automated notifications and follow-ups to scorers

• Administrator only needs to ‘monitor’ each of these flows


Planned: Dynamic Invitation listFeature• Ability to define criteria to identify

the suppliers dynamically• ExampleProduct Classification – HazardousBusiness Classification – Veteran OwnedOffice Address – United States

• Helps in moving away from a static list of suppliers to a dynamic and more accurate list of suppliers

Benefits:• Minimal Human intervention• Improved usability and Product

Satisfaction











Template







Future: Usability• Attachment Enhancement

– Role-based Access Security for Attachment Categories– Ability to associate attachments at requirement level– Ability to suggest mandatory attachment during prospective supplier registration

based on profile data

• Enhanced Notification support – Ability to send notification to prospective suppliers in the preferred language– Ability to send context specific notifications

• Enhancement to Contacts during prospective supplier registration process


Future: Traceability and Security

• Historical tracking of supplier profile

– Lifecycle Tracking (Date registered, approval dates and list of approvers)

– Profile attribute history (when was this attribute last changed, changed by)


Program Agenda




Q & A

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Historical Supplier Connectivity Approaches

Your Supplier Community

EDI/XML Expensive for suppliers Require IT for suppliers 8+ weeks for implementation

Web Portal Manual, double

work

Suppliers continue sending paper


About Transcepta• Global Supplier Network

– Cloud-based connectivity and collaboration

– Connects more suppliers, more quickly than any other network

• The Difference– 100% free to all suppliers– Full-service supplier enablement– Technology to reach all suppliers– Fully VAT compliant

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Transcepta and Oracle

• Oracle Validated Integration (2011)• Development Partnership

– Oracle procurement, core finance, technology

• Integration with Oracle Account Teams• Alignment of Strategic Roadmaps


Transcepta Connects More SuppliersE-Invoicing, PO Delivery, and Related Transactions

Transcepta Others

Free to All Suppliers Up to $20K per year per customer

Elapsed time to connect supplier if “IN Network”

1 Day 2-3 weeks

Elapsed time to connect a supplier “NOT IN Network”

1 Day 6-8 weeks

Full Service Supplier Enablement Customer makes calls, Supplier does mappings

Connect Small Suppliers Supplier Portal Supplier Portal

Connects Mid-Size Suppliers Email PDF, XLS or Virtual Printer

No…Relies on Outsourced Scanning

Connects Large Suppliers XML, EDI, CSV Limited file types

Pre-Integrated to Oracle ERP Apps Dev project required


The Enablement ServiceProvide Supplier Master extract.

Phased recruitment campaign

Phone Bank

Customer

Discounts

Invoice Volume

Strategic

Suppliers

Segment suppliers based on your business requirements.

Self-Registration

Mailshot


Transcepta Confidential and Proprietary

Transcepta+Oracle ArchitectureBUYER

EBSPSFTERP Cloud

SUPPLIER

Dat

a Ex

trac

tion

Valid

ation

Map

ping

Onboarding Service

Low-Volume Suppliers use Portal for Invoice Creation

Supplier Portal

Invoice Data(OAGXML)

POsInvoice StatusASNsAccount Maintenance

ORACLESUPPLIERNETWORK

- Trading Partner Routing

- Transaction Monitoring

Portal User Account Provisioning

Payables &Procurement

Imaging

PO Processing

VAT Services

PO Options• Email PDF• EDI 850• XML• CSV

Invoice Options• Email PDF

• Virtual Printer

• EDI/XML/CSV

• Web Entry

PO Feed

SECURE FTP

Image HandlingInvoice Image


Q&A

Supplier Management: Strategy and Roadmap Mark Peachey Director, Product Strategy Sivakumar...

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