3Safe 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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
4Supplier MDM Solution Overview What is itBusiness DriversSupplier Hub SolutionConsolidateCleanseGovernShareQ&A
5Introducing Oracle Supplier Hub What Are We Offering? BuyersSuppliersSupplier Lifecycle ManagementIdentificationQualification and On-boardingMaintenance and AssessmentsObsolescenceSupplier HubConsolidates & maintains accurate Supplier master information across the enterpriseDistributes as a single point of truth to all operational & analytical applicationsTrusted Supplier Data5
6Business Cases Why: What: So What: 6 Chinese Networking & Telco solutions providerLarge US retailerConsolidate Supplier records from multiple systems to implement corporate responsibility programWhy:Evaluate supplier performance to complement sourcing activities24,000 Supplier records to be mastered in supplier hubComplement existing Product hub forming a full MDM solutionAssessing supplier performance:Defining criteria for evaluationDefining evaluation planGenerating evaluation reportWhat:So What:Strong value proposition with combined Product Hub and Supplier HubSynergies with EBS Procurement portfolio66
7How much does decentralized data cost you? In 1 Hour…240 businesses will change addresses150 business telephone numbers will change or be disconnected112 directorship (CEO, CFO, etc.) changes will occur20 corporations will fail12 new businesses will open their doors4 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
8What can centralizing the data do? Reducepurchase order errorspayment errorssourcing cycle timenew product introduction cycle timeorder to cash timereceipt and return processing errorssupplier-related financial riskssupplier-related collaboration costsnon-compliance riskssupplier information lookup timesreport generation costscosts by sun-setting legacy applicationsMRO spending per employee…EBSAribaTransportationTrusted Master DataSAPBICustom Apps
9Value Proposition for a Supplier Data Solution to track & optimize enterprise spendto monitor and to implement standards and regulationsto manage suppliers across the trade lifecycleWe 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.
10Value 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.
11Value Prop 1: Track & Optimize spend Clean, trustworthy data creates visibility into spendVisibility into spend creates opportunities for reducing costs1) 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.
12Value Prop 2: Monitoring and enforcing Standards Child laborEnvironmental StandardsMinority-owned BusinessesWomen-owned BusinessesHUBZoneCarbon footprintetc.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.
13Value Prop 3: Streamlining Supplier-related Processes Stages in the relationshipDiscoveryVetting (Risk Assessment)TradingRe/evaluationsObsolescenceSupplier Self-Management3) 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.
14Financial Consolidation Oracle Enterprise Master Data Management The most complete MDM offering on the market todayData Governance ManagerBudgetingAnalyticalSystemsDWBI &DatamartsPlanningFinancial ConsolidationDashboardsOperationalSystemsAnalytical MDMOperational MDM AppsSiebelEBSSiteSAPCustomerSupplierProductFinancialAnalyticalPeopleSoftOracleCustomerHubOracleSupplierHubOracleProductHubOracleSiteHubJDEOracle / Hyperion Data Relationship ManagementHere 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. BAll 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 AppsExternalAppsApplication Integration ArchitectureOracle Fusion Middleware
15Supplier Management Leverages Established e-Business Suite Products Supplier Master DataEBSPeoplesoftSAPCustom AppsOtherBICustomer HubYears ExperienceTCARelationshipsHierarchiesMatch/MergeD&B EnrichmentAddress ValidationProduct HubAdvanced SearchUser Defined AttributesProcurementVendor MasterSupplier Self-ServiceRFIs/Deliverables
16Supplier Management: the Solution Trusted Master DataKey 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
17Oracle Supplier Hub Leveraging Proven MDM Infrastructure EBSPeoplesoftSAPCustom AppsOtherEBSPeoplesoftTrusted Master DataSAPCustom AppsBIOracle 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· costsIncrease revenueConsolidates & maintains complete, accurate and authoritative master data across the enterpriseDistributes master information to all operational & analytical applications just in timeMaster Data Hubs enable organizations toGovern data centrally, Risk & Improve ComplianceOptimize Business ProcessesRapidly deploy new applicationsKnow their Suppliers.Synchronize with Partners and Spoke SystemsProvide solid foundation for accurate Spend Analysis
21Supplier Import Workbench Consolidate, Cleanse, Enrich Data Quality Management toolsSpokeDe-DupEnrichmentSpokeSpokeThomsonSupplier MasterExperianMultiple heterogeneous legacy systems containing highly inconsistent sets of supplier data
22Data Import Aggregate Product Data from Multiple Sources into Repository XMLD&BSupplier RepositoryCleanse &MatchSingle BlendedRecordEnd User KeyedSuppliersOnlineWSDLInternal & External Source SystemsWeb ServiceLegacy AppsBatchBulk Load3rd Party AppsGenerate “what if” reports for pre-import analysis
23Supplier Data Quality Management Blended Supplier Profile Source 1PurchasingSource 2PayableBlended RecordRevenueUS $1.1MUS $1.1M# of Employees20,00021,00021,000Business ClassificationsSmall Bus.HubZoneSmall Bus., Hub ZoneProduct and ServicesDesktopLaptopDesktop, LaptopInvoicing TermsNet 45Net 42Net 42If going to bother getting data from different sources, might as well take advantage of it.Create data blending rules and combine all data sourcesDisplay “single source of truth” blended record to end users
24Supplier Import Management Source System Management Data Hub provides Source System Management (SSM)Registration & cross-reference map tracking for connected source (spoke) systemsSynchronize primary supplier definition across multiple spoke systemsData Hub Registry ID3177Source System ABB253Source System B8808Identifier B: 8808Identifier A: BB253ABSupplier HubMaster
26Broad Data Quality Tools Maintain Clean, Accurate Enterprise Customer Data Matching EngineDuplicate ResolutionAddress Validation *Run exhaustive searches using customizable engineIdentify duplicates and prevent future occurrencesMerge records and all associated entities and transactionsExtend merge routines to handle data extensionsBased on OAG StandardsLeverage pre-built adaptors from leading address validation vendorsProfiling*Data Quality ToolsStandardize*Create structured records from less structured data“Inc.” -> “Incorporated”,“Holmes, Santonio” -> “Mr. Santonio HolmesDeduce meaning from unstructured patternsTel# is null 30%25% of FName has 1 charNote: “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 scorePre-seed some matching and data transformations based on extensive work studying matchingHow its usedcan 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 entercan also be used to do spring cleaning on existing customer database to check for duplicatesDon’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 partiesMerge – key differentiatorallows you to specify what should happen in a convenient flowyou can choose to invoke auditing so you can look back and see what occurred to your dataData CertificationParty PurgeAdd structure to record creation & update processPromote user confidence in dataRemove unwanted records to reduce data volume*Additional Option
27Supplier Data Enrichment Enrich Out-of-the-Box D&B IntegrationEnhance existing Supplier party records with pre-built integrationSearch D&B for a supplier whose information the user would like to importD&B Information includesCredit & Risk infoRelationship & Hierarchy infoSummary informationSupplier Evaluation scoresSupplier Risk AnalysisImport data in real-time or batch modeOut-of-the-Box Trillium IntegrationAddress Matching and CleansingValidation code returned that indicates match confidenceNote: “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 choicesAddress validationProvide 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 definitionSo 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.ProductsSupplier LocatorSupplier Qualifier Report Supplier Diversity Data ServicesSupplier Qualifier Report includes:-Business Overview-Products and Services-Supplier Evaluation Score-Supplier risk analysis-financial stress and commentary
28Oracle Supplier Management : Govern CleanseShareConsolidateGovernOn-BoardingSurveysWorkflowSupplier Self-ServiceTrusted SupplierData28
29Widgets, Inc. (Supplier) Vision Computers (Buyer) Supplier Profile Management Supplier User Defined Profile AttributesBusiness ReferencesReference Name, Contact,Bus. Volume, Yrs of BusWidgets, Inc. (Supplier)Insurance InformationWorker CompensationGeneral LiabilityAutomobile LiabilitySupplier Organization Level UDA(Supplier Party)Compliance InformationRoHS Compliant, WHEE CompliantQuality Control ProceduresFollows Documented Quality Control ProcessQuality Instructions Easily AccessibleProcess Adherence AuditsSupplier Address / Party Site Level UDA(Supplier Party + Supplier Party Location)Production CapacityMachinery, Average Capacity, Max. CapacityWI, Shanghai, ChinaWI, New York, USSupplier Site Level UDA(Supplier Party + Supplier Party Location + Buyer Operating Unit)Logistics InformationStandard Delivery Time GuaranteeTransport Insurance TypeFreight Forward DetailVision, Dallas, USOperating Unit, Inventory OrganizationVision, Atlanta, USOperating UnitTransaction Qualitative Evaluation (BI Summary)Receipt Qualitative EvaluationPO Change Qualitative EvaluationInvoice Qualitative EvaluationVision Computers (Buyer)Vision, San Francisco, USOperating Unit
37Supplier Data Publication Publish Supplier Data to Spoke Systems Infrastructure to Publish ‘Supplier Master’ data from HubSynchronizeBusiness EventsWebservices/APIsSpokePublishSynchronizeSpokeSynchronizeSupplier Hub MasterSpoke
38Value Proposition: THE Supplier Data Solution to track & optimize enterprise spendto monitor and to implement standards and regulationsto manage suppliers across the trade lifecycleWe have identified not just these, but three main pain points that revolve around anything and everything that have to do with anenterprise's relationship with suppliers. We generated these based on our active engagements with our design partners who told us whatthey really want. We've been speaking with Alcoa, Starbucks, Dell, GE Transport, Johnson Controls, Boral, and others to gain a real senseof what the business drivers are. These are the three main takeaways I want you to leave with such that if you remember anything from thispresentation, it's these elements.