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1. Supplier Management Overview Basier Aziz, MDM Product Strategy 2.

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Presentation on theme: "1. Supplier Management Overview Basier Aziz, MDM Product Strategy 2."— Presentation transcript:

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2 Supplier Management Overview Basier Aziz, MDM Product Strategy 2

3 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. Safe Harbor Statement

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

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

6 Business Cases Why:Why: What:What: So What: Consolidate Supplier records from multiple systems to implement corporate responsibility program  24,000 Supplier records to be mastered in supplier hub  Complement existing Product hub forming a full MDM solution  Strong value proposition with combined Product Hub and Supplier Hub Evaluate supplier performance to complement sourcing activities  Synergies with EBS Procurement portfolio  Assessing supplier performance: Defining criteria for evaluation Defining evaluation plan Generating evaluation report Chinese Networking & Telco solutions provider Large US retailer 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 … Trusted Master Data Trusted Master Data EBS Ariba SAP Custom Apps BI Transportation 8

9 Value Proposition for a Supplier Data Solution track & optimize enterprise spend monitor and to implement standards and regulations manage suppliers across the trade lifecycle 9

10 Value Prop 1: Track & Optimize spend ? ? ? ? 10

11 Value Prop 1: Track & Optimize spend Clean, trustworthy data creates visibility into spend Visibility into spend creates opportunities for reducing costs 11

12 Value Prop 2: Monitoring and enforcing Standards Child labor Environmental Standards Minority-owned Businesses Women-owned Businesses HUBZone Carbon footprint etc. 12

13 Value Prop 3: Streamlining Supplier-related Processes Stages in the relationship – Discovery – Vetting (Risk Assessment) – Trading – Re/evaluations – Obsolescence Supplier Self-Management 13

14 Oracle Enterprise Master Data Management The most complete MDM offering on the market today Data Governance Manager Oracle Fusion Middleware Analytical MDM Operational MDM Apps Operational Systems Customer Oracle Product Hub Oracle Product Hub Financial Oracle / Hyperion Data Relationship Management Oracle Customer Hub Oracle Customer Hub EBS Siebel SAP Custom Apps External Apps External Apps Product Analytical Application Integration Architecture Oracle Site Hub Oracle Site Hub PeopleSoft JDE Budgeting Analytical Systems DW BI &Datamarts Planning Financial Consolidation Dashboards Oracle Supplier Hub Oracle Supplier Hub Site Supplier 14

15 Supplier Management Leverages Established e- Business Suite Products Customer Hub Supplier Master Data Supplier Master Data EBS Peoplesoft SAP Custom Apps Other EBS Peoplesoft SAP Custom Apps BI 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 Trusted Master Data 16

17 Trusted Master Data Trusted Master Data EBS Peoplesoft SAP Custom Apps Other 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 EBS Peoplesoft SAP Custom Apps BI Oracle Supplier Hub Leveraging Proven MDM Infrastructure 17

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

19 Supplier Repository 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 Supplier Hub 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 Groupings Relationships (e.g. subsidiary) Hierarchies (e.g. D&B) Classifications Groupings Questionnaires Questionnaires (Supplier & Internal) Deliverables Questionnaires Unstructured Data Word, Excel, PDF, etc. Unstructured Data

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

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

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

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

24 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 Supplier Hub Master A B Identifier A: BB253 Identifier B: 8808 Data Hub Registry ID 3177 Source System A BB253 Source System B 8808 Supplier Import Management Source System Management 24

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

26 Data CertificationParty Purge Add structure to record creation & update process Promote user confidence in data Remove unwanted records to reduce data volume Matching EngineDuplicate Resolution Address Validation * Merge records and all associated entities and transactions Extend merge routines to handle data extensions Run exhaustive searches using customizable engine Identify duplicates and prevent future occurrences Based on OAG Standards Leverage pre-built adaptors from leading address validation vendors Broad Data Quality Tools Maintain Clean, Accurate Enterprise Customer Data Profiling* Deduce meaning from unstructured patterns Tel# is null 30% 25% of FName has 1 char Standardize * Create structured records from less structured data “Inc.” -> “Incorporated”, “Holmes, Santonio” -> “Mr. Santonio Holmes *Additional Option Data Quality Tools

27 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 Supplier Data Enrichment Enrich 27

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

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

30 A1A2A3A4A5A6A7A8A9A10A17A18A19A27A28A29A30A35A36A37 Standard Profile Attributes Supplier Attributes: Values: Supplier Profile Management Supplier Profile Attribute Access Control Strategic BuyerStandard Buyer Administrator Supplier User Extended Profile Attributes Widgets, Inc. (Supplier) 30

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

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

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

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

35 Supplier Profile Management Supplier Profile Advanced Search : 35

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

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

38 Value Proposition: THE Supplier Data Solution track & optimize enterprise spend monitor and to implement standards and regulations manage suppliers across the trade lifecycle 38

39 A Q & 39

40 Appendix 40

41 41

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