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Supplier Management Overview

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Presentation on theme: "Supplier Management Overview"— Presentation transcript:

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2 Supplier Management Overview
Basier Aziz, MDM Product Strategy

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

4 Supplier MDM Solution Overview
What is it Business Drivers Supplier Hub Solution Consolidate Cleanse Govern Share Q&A

5 Introducing Oracle Supplier Hub What Are We Offering?
Buyers Suppliers Supplier Lifecycle Management Identification Qualification and On-boarding Maintenance and Assessments Obsolescence 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 5

6 Business Cases Why: What: So What: 6
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: So What: Strong value proposition with combined Product Hub and Supplier Hub Synergies with EBS Procurement portfolio 6 6

7 How much does decentralized 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

8 What can centralizing the data do?
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 EBS Ariba Transportation Trusted Master Data SAP BI Custom Apps

9 Value Proposition for a Supplier Data Solution
to track & optimize enterprise spend to monitor and to implement standards and regulations to manage suppliers across the trade lifecycle We have identified not just these, but three main pain points that revolve around anything and everything that have to do with an enterprise's relationship with suppliers. We generated these based on our active engagements with our design partners who told us what they really want. We've been speaking with Alcoa, Starbucks, Dell, GE Transport, Johnson Controls, Boral, and others to gain a real sense of what the business drivers are. These are the three main takeaways I want you to leave with such that if you remember anything from this presentation, it's these elements.

10 Value Prop 1: Track & Optimize spend
? ? ? ? 1) Customers want to track and optimize their spend. I want to know how much the steel I'm purchasing from my Japanese suppliers cost me compared to the comparable steel I purchase from my domestic suppliers. I want to know how much I'm spending on a steel of a certain grade or purity versus another steel. I have multiple regular, bulk, purchase orders to the same company emanating from different business units across different regions? What if I leveraged that knowledge, otherwise unknown to me, to now negotiate that price down with that supplier. If we can effectively centralize information, and provide hte tools to profile that information, we're on our way now to solve this problem that can't be solved when data is scattered and dirty.

11 Value Prop 1: Track & Optimize spend
Clean, trustworthy data creates visibility into spend Visibility into spend creates opportunities for reducing costs 1) Customers want to track and optimize their spend. I want to know how much the Japanese suppliers supplying me steel cost me compared to the comparable suppliers I deal with domestically. I want to know how much I'm spending with a supplier who gives me a steel of a certain grade or purity versus another supplier with a different steel. I have multiple regular, bulk, purchase orders to the same company emanating from different business units across different regions. What if I leveraged that knowledge, otherwise unknown to me, to now negotiate that price down with that supplier. If we can effectively centralize information, and provide the tools to profile that information, we're on our way now to solve this problem that can't be solved when data is scattered and dirty.

12 Value Prop 2: Monitoring and enforcing Standards
Child labor Environmental Standards Minority-owned Businesses Women-owned Businesses HUBZone Carbon footprint etc. 2) Customers want to enforce standards on their business with suppliers. Government standards. Internal enterprise-wide standards - extremely important. One customer shared that verifying their suppliers engage in no child labor practices is of paramount importance. Another remarked that they want to track which supplier sites use certain types of chemicals in their processes due to some environmental standards their company holds. In the Public Sector, we know that hte federal governement spends $530 Billion dollars annually. Do departments within the government track whether they're doing business with minority-owned or women-owned businesses? Of course they do - the DoD is by law required to have 5% of the businesses it participates with be minority owned. And it's not just supplier diversity standards, but HUBZone, veteran-owned, small business and other classifications which, to varying degrees, it is important to monitor.

13 Value Prop 3: Streamlining Supplier-related Processes
Stages in the relationship Discovery Vetting (Risk Assessment) Trading Re/evaluations Obsolescence Supplier Self-Management 3) Managing your supplier across the lifecycle of your relationship with them. If you think about it, every supplier has a flow in its relationship with you. First, you have to discover the supplier - either they tip you off, or someone from within your organization. Then, you vet them - are they worthy of doing business? You engage in some risk assessment at this point, and choosing a supplier who shouldn't be chosen could make you kick yourself down the line. After this, you actually trade with them...maybe down the road you want to re-evaluate them, notify them of this or that bit of information. And lastly, you may want to dump them. This whole flow has many touch points with different members of your organization, able to see different attributes of the supplier, requiring differing levels of approval, at different stages, using different sources of information in assessments. Even then, how do you even communicate with your supplier? s? Do you send them ad-hoc requests? Or is there a clean, web-based interface where they can keep their information fresh, and through which you can cut costs from all the needless time that an improper IT solution wastes.

14 Financial Consolidation
Oracle Enterprise Master Data Management The most complete MDM offering on the market today Data Governance Manager Budgeting Analytical Systems DW BI &Datamarts Planning Financial Consolidation Dashboards Operational Systems Analytical MDM Operational MDM Apps Siebel EBS Site SAP Customer Supplier Product Financial Analytical PeopleSoft Oracle Customer Hub Oracle Supplier Hub Oracle Product Hub Oracle Site Hub JDE Oracle / Hyperion Data Relationship Management Here we see that Oracle has a broad and deep set of MDM products including the ability to master customers, suppliers, employees, citizens, students, clients, patients, members, products, assets, locations, accounts, and other financial data such as chart of Accounts. In addition, the suite includes data quality capabilities with Oracle Data Quality and Data Stewards applications, data governance tools such as Data Watch & Repair, along with OOTB integration with applications via AIA and OBI EE integration via ETL maps in ODI and Informatica. B All connected operational and analytical systems are kept in sync with the clean accurate authoritative master data via AIA and FMW with its powerful data integration tools such as ODI and OWB. Custom Apps External Apps Application Integration Architecture Oracle Fusion Middleware

15 Supplier Management Leverages Established e-Business Suite Products
Supplier Master Data EBS Peoplesoft SAP Custom Apps Other BI Customer Hub Years Experience TCA Relationships Hierarchies Match/Merge D&B Enrichment Address Validation Product Hub Advanced Search User Defined Attributes Procurement Vendor Master Supplier Self-Service RFIs/Deliverables

16 Supplier Management: the Solution
Trusted Master Data Key Message: For other customers whose activities are concentrated in other functional areas, Release 12 wasn’t as compelling as an upgrade value proposition. So in Release 12.1 we focused on adding substantial value to all of the other areas within E-Business Suite. So that at the 12.1 level, and you’re still at the 11i level, there’s a compelling set of business values across all of the functional areas in E-Business Suite. 16

17 Oracle Supplier Hub Leveraging Proven MDM Infrastructure
EBS Peoplesoft SAP Custom Apps Other EBS Peoplesoft Trusted Master Data SAP Custom Apps BI Oracle has the broadest range of Master Data Management applications. It has the market leading solutions for Customer, Product and Account master data. It consolidates & maintains complete and accurate master data across the enterprise. Oracle MDM enables organizations to: ·         Govern centrally ·         risk ·         Improve compliance ·         Optimize business processes ·         Rapidly deploy new applications ·         Know their customers ·         Synchronize with partners ·         Accelerate new product introductions ·         Increase reporting accuracy ·         costs Increase revenue Consolidates & maintains complete, accurate and authoritative master data across the enterprise Distributes master information to all operational & analytical applications just in time Master Data Hubs enable organizations to Govern data centrally, Risk & Improve Compliance Optimize Business Processes Rapidly deploy new applications Know their Suppliers. Synchronize with Partners and Spoke Systems Provide solid foundation for accurate Spend Analysis

18 Oracle Supplier Hub: Master
Govern Cleanse Share Consolidate Trusted SupplierData Master Trusted Supplier Data Attributes Relationships Classifications Documents Locations 18

19 Supplier Repository Supplier Hub Unstructured Data Standard
Word, Excel, PDF, etc. Organization D-U-N-S Number, Legal Structure, Incorporation Year, Chief Executive Name Total Employees, Annual Revenue Business Classifications Products and Services… 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 Tax Details Standard Profile details Common Applicable to All Suppliers Supplier Type Examples: Services, Distributor, Contract Manufacturer Business Classification Examples: Women Owned, Small Business, Minority Owned Products & Services Examples: Temp Labor, Professional Services, Raw Materials Address Country Examples: US, China, India User Defined Examples: High Risk, Premium Extended Profile details Supplier Hub Groupings Relationships (e.g. subsidiary) Hierarchies (e.g. D&B) Classifications Questionnaires Questionnaires (Supplier & Internal) Deliverables

20 Oracle Supplier Management: Consolidate
Govern Consolidate Siebel Import Workbench EBS Trusted Supplier Data Identification & Cross-Reference Share SAP GDSN Blended Record Other Cleanse 20

21 Supplier Import Workbench Consolidate, Cleanse, Enrich
Data Quality Management tools Spoke De-Dup Enrichment Spoke Spoke Thomson Supplier Master Experian Multiple heterogeneous legacy systems containing highly inconsistent sets of supplier data

22 Data Import Aggregate Product Data from Multiple Sources into Repository
XML D&B Supplier Repository Cleanse & Match Single Blended Record End User Keyed Suppliers Online WSDL Internal & External Source Systems Web Service Legacy Apps Batch Bulk Load 3rd Party Apps Generate “what if” reports for pre-import analysis

23 Supplier Data Quality Management Blended Supplier Profile
Source 1 Purchasing Source 2 Payable Blended Record Revenue US $1.1M US $1.1M # of Employees 20,000 21,000 21,000 Business Classifications Small Bus. HubZone Small Bus., Hub Zone Product and Services Desktop Laptop Desktop, Laptop Invoicing Terms Net 45 Net 42 Net 42 If going to bother getting data from different sources, might as well take advantage of it. Create data blending rules and combine all data sources Display “single source of truth” blended record to end users

24 Supplier Import Management Source System Management
Data Hub provides Source System Management (SSM) Registration & cross-reference map tracking for connected source (spoke) systems Synchronize primary supplier definition across multiple spoke systems Data Hub Registry ID 3177 Source System A BB253 Source System B 8808 Identifier B: 8808 Identifier A: BB253 A B Supplier Hub Master

25 Oracle Supplier Management : Cleanse
Govern Cleanse Share Consolidate Parse Standardize Enrich Validate Match & De-Duplicate Trusted SupplierData 25

26 Broad Data Quality Tools Maintain Clean, Accurate Enterprise Customer Data
Matching Engine Duplicate Resolution Address Validation * Run exhaustive searches using customizable engine Identify duplicates and prevent future occurrences Merge records and all associated entities and transactions Extend merge routines to handle data extensions Based on OAG Standards Leverage pre-built adaptors from leading address validation vendors Profiling* Data Quality Tools Standardize* Create structured records from less structured data “Inc.” -> “Incorporated”, “Holmes, Santonio” -> “Mr. Santonio Holmes Deduce meaning from unstructured patterns Tel# is null 30% 25% of FName has 1 char Note: “Matching Engine” is generic term for Oracle’s Data Quality Mgmt module. You can decide your rules for matching – what is most important etc. You can decide your own thresholds – its considered a possible match at what score Pre-seed some matching and data transformations based on extensive work studying matching How its used can be used for searching (helps you find a particular party quickly and weeds out noise) helps prevent the creation of duplicates because identify potential matches for what trying to enter can also be used to do spring cleaning on existing customer database to check for duplicates Don’t just identify them – it handles them. The hard part is –once you find dupes what do you do with all the data and transactions attached to the duplicate parties Merge – key differentiator allows you to specify what should happen in a convenient flow you can choose to invoke auditing so you can look back and see what occurred to your data Data Certification Party Purge Add structure to record creation & update process Promote user confidence in data Remove unwanted records to reduce data volume *Additional Option

27 Supplier Data Enrichment Enrich
Out-of-the-Box D&B Integration Enhance existing Supplier party records with pre-built integration Search D&B for a supplier whose information the user would like to import D&B Information includes Credit & Risk info Relationship & Hierarchy info Summary information Supplier Evaluation scores Supplier Risk Analysis Import data in real-time or batch mode Out-of-the-Box Trillium Integration Address Matching and Cleansing Validation code returned that indicates match confidence Note: “D&B” formerly “Dunn and Bradstreet” D&B – really thought through integration – not side information resource, incorporated right into the core data based on your choices Address validation Provide option to validate addresses on the way in (helps improve matching as well as improving quality of address data) We have packaged our address with a published definition and created an XML call with that published definition So people can build an adapter to a 3rd party address validation service that will accept the package and send it back with validation and/or enrichment or standardization. Products Supplier Locator Supplier Qualifier Report Supplier Diversity Data Services Supplier Qualifier Report includes: -Business Overview -Products and Services -Supplier Evaluation Score -Supplier risk analysis -financial stress and commentary

28 Oracle Supplier Management : Govern
Cleanse Share Consolidate Govern On-Boarding Surveys Workflow Supplier Self-Service Trusted SupplierData 28

29 Widgets, Inc. (Supplier) Vision Computers (Buyer)
Supplier Profile Management Supplier User Defined Profile Attributes Business References Reference Name, Contact, Bus. Volume, Yrs of Bus Widgets, Inc. (Supplier) Insurance Information Worker Compensation General Liability Automobile Liability Supplier Organization Level UDA (Supplier Party) Compliance Information RoHS Compliant, WHEE Compliant Quality Control Procedures Follows Documented Quality Control Process Quality Instructions Easily Accessible Process Adherence Audits Supplier Address / Party Site Level UDA (Supplier Party + Supplier Party Location) Production Capacity Machinery, Average Capacity, Max. Capacity WI, Shanghai, China WI, New York, US Supplier Site Level UDA (Supplier Party + Supplier Party Location + Buyer Operating Unit) Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Freight Forward Detail Vision, Dallas, US Operating Unit, Inventory Organization Vision, Atlanta, US Operating Unit Transaction Qualitative Evaluation (BI Summary) Receipt Qualitative Evaluation PO Change Qualitative Evaluation Invoice Qualitative Evaluation Vision Computers (Buyer) Vision, San Francisco, US Operating Unit

30 Widgets, Inc. (Supplier)
Supplier Profile Management Supplier Profile Attribute Access Control Widgets, Inc. (Supplier) A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A17 A18 A19 A27 A28 A29 A30 A35 A36 A37 Supplier Attributes: Extended Profile Attributes Standard Profile Attributes Values: Supplier User Standard Buyer Strategic Buyer Administrator 30

31 Supplier Management New Supplier Qualification and Onboarding – Supplier Walk-in Registration
Submit Request Information Suppliers Prospective/New Supplier Registration Request Notification Relationship Contract Submit Questions (Resubmit) Commodity Manager Sync Supplier Profile Add Profile Information Approval Process Receive Packet Review Qualified and Approved Return/Reject Questions Finance / Legal Expert Credit Evaluation Add Credit Evaluation Review Return/Reject Questions Contract Manager Review Risk Evaluation Add Risk Evaluation Return/Reject Questions Add Prospect Party Site Evaluation Compliance Officer Prospect Party Site Evaluation Review

32 Existing Supplier Evaluation Supplier Qualitative Evaluation and Assessment
RFI Evaluated Suppliers Widgets, Inc. Gadgets, Inc. Evaluators Is Supplier flexible during negotiations? 4 5 No Is Supplier responsive? Yes Any Quality complaints? 2 Buyer Ben Overall Supplier Satisfaction Is Supplier flexible during negotiations? Is Supplier responsive? Any Quality complaints? Yes Buyer Santonio 2 Overall Supplier Satisfaction

33 Self-Service Supplier Profile Management
* Self-Service Supplier Profile Management Data Hub Admin reviews & promotes to Supplier Hub + Banking Info Attachments Supplier updates profile details OU1 OU3 OU2 Contact Details Supplier Locations Business Classifications / Product & Service Details Updates applied across multiple operating units * Supplier Lifecycle Management Option

34 Single UI Access to Supplier Information
Data Quality Hierarchies D&B Standard Profile Data & User Defined Classifications User Defined Attributes

35 Supplier Profile Management Supplier Profile Advanced Search
:

36 Oracle Supplier Management: Share
Govern Cleanse Consolidate EBS SAP Custom Apps BI Share Publish & Subscribe Transports & Connectors Registry Trusted SupplierData Reporting Access & Search Users Siebel 36

37 Supplier Data Publication Publish Supplier Data to Spoke Systems
Infrastructure to Publish ‘Supplier Master’ data from Hub Synchronize Business Events Webservices/APIs Spoke Publish Synchronize Spoke Synchronize Supplier Hub Master Spoke

38 Value Proposition: THE Supplier Data Solution
to track & optimize enterprise spend to monitor and to implement standards and regulations to manage suppliers across the trade lifecycle We have identified not just these, but three main pain points that revolve around anything and everything that have to do with an enterprise's relationship with suppliers. We generated these based on our active engagements with our design partners who told us what they really want. We've been speaking with Alcoa, Starbucks, Dell, GE Transport, Johnson Controls, Boral, and others to gain a real sense of what the business drivers are. These are the three main takeaways I want you to leave with such that if you remember anything from this presentation, it's these elements.

39 Q & A

40 Appendix 40

41


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