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Oracle Supplier Management Complete, Open, Flexible, Integrated

Oracle Supplier Management Complete, Open, Flexible, Integrated. Safe Harbor Statements.

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Oracle Supplier Management Complete, Open, Flexible, Integrated

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  1. Oracle Supplier Management Complete, Open, Flexible, Integrated

  2. Safe Harbor Statements The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

  3. Introductions (9.00 AM – 9.10 AM) Supplier Management – High Level Overview (9.10 AM – 9.30 AM) Functional Overview (9.30 AM – 10.00 AM) Supplier Lifecycle Management Demo (10.00 AM – 10.30 AM) Break (10.30 AM – 10.45 AM) Supplier Lifecycle Management Demo (10.45 AM – 11.30 AM) SLM Exercises (11.30 AM – 12.30 PM) Lunch (12.30 PM – 1.30 PM) Supplier Hub Demo (1.30 PM – 3.00 PM) Break (3.30 PM – 3.45 PM) SH Exercises (3.15 PM – 4.15 PM) SLM and SH Technical Overview (4.15 PM – 4.45 PM) Wrap up (4.45 PM – 5.00 PM) Agenda

  4. <Insert Picture Here> What is Supplier Management ?

  5. Introducing Oracle Supplier ManagementWhat Are We Offering? Suppliers Buyers • Supplier Lifecycle Management • Identification • Qualification and On-boarding • Maintenance and Assessments • Obsolescence Think Process • Supplier Hub • Consolidates & maintains accurate Supplier master information across the enterprise • Distributes as a single point of truth to all operational & analytical applications Trusted Supplier Data Think Data

  6. Oracle Supplier Management Deployment Options Stand-Alone Add-On • Available on EBS 12.1 and later

  7. Oracle Supplier Management Hotness Oracle Supplier Management is HOT • Released in Jan 2010 • Great reviews & buzz from eminent analysts • Jason Busch (Spend Matters) • Mickey North Rizza (AMR > Gartner) • Bill Forester (Gartner) • Many customers in the pipe • Spanning multiple verticals (FINS, Manufacturing, Telco, Retail, etc) • Spanning multiple geographies (N. Amer, EMEA, APAC) • Early adopter implementations on the cusp • v2 plans underway

  8. <Insert Picture Here> Why Supplier Management ?

  9. How much does managing a supplier cost you? • $585-$1000 / Supplier / year * * AMR Research, June 2009

  10. How much does unstructured supplier data cost you? In 1 hour… • 240 businesses will change addresses • 150 business telephone numbers will change or be disconnected • 112 directorship (CEO, CFO, etc.) changes will occur • 20 corporations will fail • 12 new businesses will open their doors • 4 companies will change their name* *Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics, Gartner, A.T Kearney, GMA Invoice Accuracy Study

  11. What can centralizing the data do? EBS Transportation Reduce • purchase order errors • payment errors • sourcing cycle time • new product introduction cycle time • order to cash time • receipt and return processing errors • supplier-related financial risks • supplier-related collaboration costs • non-compliance risks • supplier information lookup times • report generation costs • costs by sun-setting legacy applications • MRO spending per employee • … Ariba SAP Custom Apps Trusted Master Data BI “…companies are spending up to $1,000 per supplier annually…however, when information, enabled by technology, becomes visible across the organization, costs per supplier quickly dwindle to below$150 per supplier.” - AMR Research, June 2009

  12. Spend Analysis • Clean, trustworthy data creates visibility into spend • Visibility into spend creates opportunities for reducing costs

  13. Compliance & GovernanceRisk Mitigation • Corporate business practices extended up supply chain • Legal / Regulatory • OFAC / SDN Watch List • Environmental / Carbon Footprint • Accreditation • Ethical / Marketing • Manufacturing Quality Standards • IRS EIN Verification Environmental Policies Child Labor Laws • Managing Corporate Social Responsibility • United Nations Declaration of Human Rights • U.N. Convention on the Rights of the Child • International Labor Organization (ILO) conventions • Electronic Industry code of conduct • International Organization for Standardization • Occupational Health and Safety Assessment • Health and Safety Executive • … ISO 9000 / ISO 14000 OFAC - SDN List

  14. Identifying OpportunitiesVendor Classification Status • Diversity a growing global trend • Procurement spend allocated to differentsupplier classifications • “Good corporate citizen” • Key requirement for U.S. Federal & State governments • Growing global trend • London 2012 Olympics • “…open to a diverse range of suppliers including Small and Medium-sized Enterprises (SMEs), social enterprises, and businesses owned by BAME people, women and disabled people.”

  15. Company ScorecardAuditing Supplier Performance for Company KPIs • Quantitative assessment:How well is a Supplier meeting my KPIs? • “To register all organic growers in countries as part of our target to ensure all organic growers are registered to Nature's Choice” • “To audit all organic suppliers as part of our target to ensure that 100% of organic suppliers comply with Nature's Choice” • Qualitative feedback:What do my folks tell me about supplier performance? • What do my Buyers think about this supplier? • Do my requisitioners find the supplier easy to deal with and flexible when needed?

  16. Supplier ManagementBusiness Challenges • Supplier Management Cost • Mitigate risk and on-board suppliers quickly • Provide self-service administration to suppliers • Streamline communication with suppliers • Poor Visibility • Track supplier performance evaluations, qualifications and deliverables • Know which suppliers are dependable and cost effective • Be assured that spend analytics is complete and accurate Supplier Management • Fragmented Data • Unify duplicated, incomplete, inaccurate data held within multiple, disparate systems • Consolidate & federate shared information across instances • Compliance & Governance • Assure that suppliers are meeting the code of conduct • Ensure that suppliers are adhering to all laws, regulations & standards • Provides visibility to viability of suppliers

  17. Business Cases Chinese Networking & Telco solutions provider Large US retailer Consolidate Supplier records from multiple systems to implement corporate responsibility program Why: Evaluate supplier performance to complement sourcing activities • 24,000 Supplier records to be mastered in supplier hub • Complement existing Product hub forming a full MDM solution • Assessing supplier performance: • Defining criteria for evaluation • Defining evaluation plan • Generating evaluation report What: • Strong value proposition with combined Product Hub and Supplier Hub So What: • Synergies with EBS Procurement portfolio

  18. <Insert Picture Here> Oracle Supplier Management Solution

  19. Enabling More Effective Supplier ManagementWhat’s New in Procurement & MDM • Results: • Consolidate & Cleanse Supplier Information for Effective Spend Analytics • Foundation to improve accuracy of analytics results • Manage Suppliers through Entire Supplier Lifecycle • Streamlines qualification process • Improves Sourcing effectiveness • Enables controlled assessment • Reduce Cost of Supplier Management • Maintain single supplier definition • Eliminate redundant compliance checks E-Business Suite Master DataManagement Achieve Rapid Return Standardize and Simplify Procurement Supply Chain ApplicationsTechnology HumanCapital Financials

  20. Oracle Supplier Management Solution Invitation Self-Service Registration Supplier Search Profile, Qualification, & Credit/Risk Assessments Contract Supplier Deactivation Supplier Profile Updates Performance Analysis & Management Ongoing Assessments

  21. Oracle Supplier MDMSupplier Lifecycle Management & Supplier Hub Supplier Lifecycle Management Supplier Hub Consolidate - Data Import Mgmt, Source System Mgmt, Cross Reference Cleanse - Matching, D&B Data Enrichment Master - Supplier Classifications & Relationships Share - Data Publication and Synchronization, Web services, Security Govern - Hierarchy Mgmt, Task Mgmt, Classification Mgmt • Registration and On-boarding • Supplier Profile Management • Qualification and Notification Management • Compliance and Profile Audit • Supplier Assessment and Performance Management

  22. Oracle Enterprise Master Data ManagementThe most complete MDM offering on the market today Analytical Systems Dashboards EBS DW SAP Site BI &Datamarts Planning Custom Apps Financial Consolidation External Apps Budgeting Data Governance Manager Operational Systems Analytical MDM Operational MDM Apps Siebel Customer Supplier Product Financial Analytical PeopleSoft Oracle Customer Hub Oracle Supplier Hub Oracle Product Hub Oracle Site Hub Oracle / Hyperion Data Relationship Management JDE Application Integration Architecture Oracle Fusion Middleware 22

  23. Oracle Supplier Management Solution Summary • Improve Supplier Performance Management • Reduce Supplier Management Costs • Simplify Supplier Selection and Reduce Risk • Enhance Supplier Compliance Management • Increase Accuracy of Spend Analysis • Streamline Procurement Processes “…companies are spending…between $585 and…$1,000 per supplier annually…however, when information, enabled by technology, becomes visible across the organization, costs per supplier quickly dwindle to below$150 per supplier.” AMR Research, June 2009

  24. <Insert Picture Here> Functional Overview

  25. Supplier Directory Supplier Directory Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey)

  26. Supplier ProfileFixed Attributes + Extensible Attributes Unstructured Data • Unstructured Data • Word, Excel, PDF, etc. Fixed Attributes Questionnaires • Organization • D-U-N-S Number, Legal Structure • Incorporation Year, Chief Executive Name • Total Employees, Annual Revenue • Business Classifications • Products and Services • … • Questionnaires • RFI/Questionnaires (Supplier & Internal) • Deliverables • Tax Details • … • Banking Details • Account Number, IBAN, Currency, Type • Bank Name, Branch Name • … • Purchasing Terms and Controls • Ship-To Location Bill-To Location Ship Via • Pay On, Freight Terms • … • Invoicing Terms and Controls • Invoice Currency, Amount Limit • Match Options, Tolerance • Hold Options (All,Unmatched,Unvalidated) • Payment Terms, Terms & Pay Date Basis • … • Payment Controls • Method, Delivery Channel • Payment Format, Settlement Priority • … • Receiving Controls • Receipt Routing, Match Approval Level • Quantity Tolerance, Days Early/Late Receipt • … Extensible Attributes Company Level Insurance Information Worker Compensation, Liability, Auto, EMR Compliance Information Environmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant Address Level Quality Systems ISO 9001, ISO 14001, ASA 100, FAR 145 Production Capacity Machinery, Average Capacity, Max. Capacity Site/OU Relationship Level Supplier Profile Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Freight Forward Detail Item/Supplier Relationship Level (PIM) Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, RoHS Compliant, WEEE Compliant

  27. Extensible Supplier ProfileCompany, Address, Site, Item Level Extensions Supplier Organization Level Computer Supplies, Inc. Insurance Information Worker Compensation, Liability, Auto, EMR Supplier Company Compliance Information Environmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant Supplier Address Level Quality Systems ISO 9001, ISO 14001, ASA 100, FAR 145 Production Capacity Machinery, Average Capacity, Max. Capacity CSI, Shanghai, China CSI, New York, US Supplier Site/OU Level Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Freight Forward Detail Vision, Atlanta, US Operating Unit Vision, Dallas, US Operating Unit, Inventory Organization Vision, San Francisco, US Operating Unit Vision Computer Corporation Item/Supplier Level Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, RoHS Compliant, WEEE Compliant Buyer Company Vision, San Jose, US Inventory Organization Vision, Fremont, US Inventory Organization Vision, Stratford, US Inventory Organization 27

  28. Access to Supplier ProfileControlling who can view/edit what Supplier Information Computer Supplies, Inc. Supplier Attributes: Extended Profile Attributes Standard Profile Attributes Values: Administrator Standard Buyer Strategic Buyer Supplier User 28

  29. New Supplier Registration and Qualification New Supplier Registration and Qualification Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey) 29

  30. New Supplier Registration and Qualification Process Flow Duplicate checks Vision Computer Corporation Computer Supplies, Inc. Computer Supplies, Inc. Prospect Supplier Request Prospect Supplier Request New Supplier New Supplier Admin • Respond to Questionnaire • Prospect Self-Registration • Review request, Attach Questionnaire Prospect Supplier Request Vision Computer Corporation Supplier Master Supplier Master Profile Evaluation Team • Supplier and Evaluator Response mastered as profile • Supplier Evaluation, Scoring, Shortlist and Approval • System Notification to New Supplier 30

  31. Supplier Profile Management Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Supplier Profile Management Ongoing Assessments (eRFx/Survey)

  32. Supplier Profile ManagementFlow#1 – Supplier self-service Profile Management + Address Bank details Contacts Attachments Vision Computer Corporation Computer Supplies, Inc. Supplier Admin Business Classification Products & Services Other Extensible Attributes • Updates using self-service Portal • Reviews and Approves Changes Supplier Master • Profile Changes Mastered 32

  33. Supplier Profile ManagementFlow#2 – Buyer Initiated Profile Maintenance Vision Computer Corporation Computer Supplies, Inc. Questionnaire Supplier Admin • Responds to Questionnaire • Creates Questionnaire Supplier Profile Attributes Questionnaire Supplier Master Vision Computer Corporation Item-Supplier Profile Attributes Supplier Master Profile Evaluation Team • Review, Evaluate, Score • On Completion, Master the Supplier and Evaluator Responses Item Master 33

  34. Supplier Performance Management Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Supplier Performance Management Ongoing Assessments (eRFx/Survey)

  35. Supplier Performance ManagementProcess Flow Vision Computer Corporation Vision Computer Corporation Supplier Master Supplier Master Profile Supplier Internal Evaluation Internal Evaluation Team Admin • Supplier Performance Evaluation, Score • On Completion, Evaluator Response mastered as profile • Create Evaluation Questionnaire 35

  36. Supplier Performance ManagementInternal Assessment Evaluated Suppliers Internal RFI / Questionnaire Electronic Supply Computer Supplies, Inc. Invited Evaluators Is Supplier flexible during negotiations? Is Supplier responsive? Any Quality complaints? No Buyer Joe Yes Overall Supplier Satisfaction Is Supplier flexible during negotiations? Is Supplier responsive? Any Quality complaints? No Yes Buyer Ed Overall Supplier Satisfaction 36

  37. Supplier Master Data Management Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey)

  38. Supplier Master Data ManagementConsolidate, Cleanse, Enrich Supplier Master Data Quality Management tools Spoke Supplier Master Record Enrichment De-Dupe Spoke Supplier Hub Spoke Thomson Experian Consolidate across multiple heterogeneous legacy systems containing inconsistent sets of supplier data 38

  39. Registration & cross-reference for source (spoke) systems Supplier Master Data ManagementSource System Management Identifier A: BB253 Identifier B: 8808 A B SupplierHub 39

  40. Create a single Supplier master profile from multiple sources Supplier Master Data ManagementData Quality Management Source 1 (Purchasing) Source 2 (Payables) Merged Record US$ 1.1M US$ 1.1M Revenue 20,000 21,000 21,000 # of Employees HubZone Small Bus.Hubzone Small Bus. Business Classifications Laptop Desktop,Laptop Desktop Product and Services Net 42 Net 45 Net 42 Invoicing Terms 40

  41. Out-of-the-Box D&B Integration Search D&B for Prospect Trading Party Information Evaluate Prospect Supplier Credit & Risk using D&B Vendor Management Product Enhance existing Supplier party records with pre-built integration Import data in real-time or batch mode Choose from different D&B data packets/products Out-of-the-Box Trillium Integration Address Matching and Cleansing Supplier Master Data ManagementData Enrichment and Validation 41

  42. Supplier Master Data Management Supplier Hierarchy Relationship Role Company Name View and Manage Supplier Hierarchies Best Supply Corporation Address: 29261 South Frost Road, Liingston, LA‎ - (225) 686-1967 Parent Company DUNS #: 73-292-4932 • Browse Relationships through multiple hierarchies • D&B Hierarchy • Partner Relationship Hierarchy • Custom Relationship Hierarchy… Best Supply Americas Subsidiary Of Address: 1801 12th Avenue, Seattle, WA‎ - (206) 325-0489‎ DUNS #: 37-389-0394 Best Computer Supply Child Business Entity Of Address: 2300 West Whitendale, Visalia, CA‎ - (559) 732-8892 DUNS #: 84-948-8736 Child Business Entity Of Best Electronic Supply Address: 9260 Bay Plaza Boulevard, Tampa, FL‎ - (813) 744-5862‎ DUNS #: 47-298-8376 Best Supply Europe Subsidiary Of Address: C/ Gran De Gràcia, 15, 08012 Barcelona, Spain‎ - 933 682 383 DUNS #: 46-98-7648

  43. Supplier Master Data Management Supplier Relationship Classifications Classification Scheme Classification Code Classify Your Suppliers Supplier Preference Category Platinum Gold • General Classifications: Classify suppliers based on the way they are referenced within your organization • Supplier Preference Category • Supplier FDIC Risk Category • Supplier Watchlist Bottle Neck Best Computer Supply Supplier FDIC Risk Category Strategic Risk Financial Risk Compliance Risk Computer Parts Supplies Operational Risk Supplier Watchlist OFAC – SDN List UN Consolidated List Electronic World Supplies Unauthorized Banking List

  44. Supplier Master Data Management Supplier Relationship Tasks Relationship Tasks and Notes Manage corrective actions using tasks and notes. Share them with suppliers. • Assign tasks to internal and supplier users • Add attachments, due-date and status to tasks • Control visibility of notes

  45. Supplier Master Data ManagementPublish Supplier Master Data to Spoke Systems Infrastructure to Publish ‘Supplier Master’ data from Hub: Synchronize Spoke Business Events Webservices / APIs Publish Profile Synchronize Spoke Synchronize Supplier Hub Spoke 45

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