Advanced Procurement Mary Burns What’s New in E-Business Suite Release 12: The Procurement Professional’s Release

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract A Decade Of Procurement Innovation What’s Wrong With This Picture? As niche start-ups drove action “at the edges”, the tools needed for the daily business of procurement were taken for granted Employees & Business Managers Sourcing Mgrs & Budget Holders Suppliers & IT Departments Legal and Contracts Managers Accounts Payable Data Analysts & Category Managers Data Analysts & Project Managers HR & ITProfessional Buyer Spend Data Management Contract Management Analytics Services Procurement SourcingeInvoicing Supplier Enablement eProcurement Procure- to-Pay

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Procurement Challenges & Opportunities How Oracle Delivers A Look at Release 12 Agenda

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Oracle Advanced Procurement The Integrated Suite that Dramatically Cuts All Supply Mgmt Costs Spend Categories Indirect Goods Direct Materials Engineered Goods Services Approval Routing Touchless Buying Automated Payment Enforce Policy Compliance Budget-Based Procurement Contract Management Supplier Performance Reduce Spend on Goods and Services Category Management Online Sourcing Spend Analysis Streamline Procurement Processes Supplier Collaboration Settlement Orders Profile Management Supplier Network Logistics Supplier Portal

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Exploit Savings Opportunities and use Open Competition to Improve Price / Terms Blanket Agreements Global Agreements Signed Contracts Templates, standard T’s & C’s Two-way MS Word integration 1-click renegotiation for agreements Purchase Orders Sourcing Rules Automatic price & terms enforcement Preferred supplier enforcement Online negotiations Online ‘expert’ collaboration Award optimization RFI / Survey RFQ Online Auction Reduce Spend on Goods and Services Increase Sourcing Efficiency and Effectiveness Automatic Implementation Agreement Creation Requisitions

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Streamline Procurement Processes Reduce Manual Effort to Free Staff for Higher-Value Activities Transaction Execution Higher Value Activities (e.g., program management) Procure-to-Pay Automation Create Purchas e Order Dispatch Electroni c PO to Supplier Auto- Approve Minor Changes Receive Goods or Services; Inspect Receive Electroni c Invoice Pay Supplier (EFT) Apply Agreeme nt Terms & Condition s Apply Auto- Source Rules Higher Value Activities (e.g., supplier development)

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Enforce Policy Compliance Identify and Rectify Policy Violations Configurable workflow & automation of routine transactions Automatic bubble-up of exceptions Single point for defining and enforcing purchasing policy Purchasing Transactions Return or Modify Reqs Automatic Automation Approvals Rejections Purchasing Professional Exceptions Buyer- Assisted Indirect & MRO Direct Materials Demand Sources Designed Mat’ls Services Demand Queue Document Creation Rules Config.

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Answering Supplier Queries Helping Requesters Managing Content Creating Manual Orders Project- Based Procurement Monitor & Review Controls Strategic High Medium Low Value Release Rethinking the Routine Automate Routine Tasks, Focus on High-Value Activities Oracle Advanced Procurement Supply Optimization Spend Analysis Contract Negotiation Internal Benchmark Delivery

Advanced Procurement R12 The Procurement Professional’s Release  Unified Workcenter For All Procurement Responsibilities  Improved Support for Complex Goods & Services  Expanded Supplier Management and Enablement

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract View exceptions across multiple applications and operating units Create, implement, and execute agreements Analyze performance of procurement & suppliers Negotiations Contracts & Agreements Invoicing & Payment Supplier Management Requisitions PO Execution Exceptions Agreements Performance Analysis Professional Buyer’s Work Center Single Access Point for All Responsibilities Professional Buyer’s Work Center Enable Command & Control for the Procurement Professional

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Professional Buyer’s Work Center (cont.) Enable Command & Control for the Procurement Professional Intuitive UI and streamlined workflows Status at-a-glance Multi-Org Access Control for shared services Extensive options for personalization

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Streamline internal collaboration and supplier negotiation by allowing key stakeholders to be involved in the contract review process Improve contracting efficiency while reducing effort Minimize errors and risk from manual updates Two-Way MS Word Synchronization Automatically Import Redline Changes for Superior Compliance Oracle Procurement Contracts Identify modified clauses Review changes in detail Accept / reject offline changes XML edits LegalSupplierStakeholders XML edits Contract Administrator

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Two-Way MS Word Synchronization (cont.) Automatically Import Redline Changes for Superior Compliance Review each change in detail Accept or Reject offline changes Identify modified clauses at a glance

Advanced Procurement R12 The Procurement Professional’s Release  Unified Workcenter For All Procurement Responsibilities  Improved Support for Complex Goods & Services  Expanded Supplier Management and Enablement

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Complex Requisition Approvals Graphically View Approval Chain & Requisition Status Support for Viewers Keep people informed of business purchases and decisions without requiring a response Maintain key stakeholder engagement & oversight Parallel Approvals Notify multiple approvers of a requisition simultaneously Reduce approval cycle time Position Hierarchy Support Define approval routing structures that remain stable even if individuals / organizational structures change Minimize workflow maintenance

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Team Scoring of Requirements Each team member scores the assigned section Oracle Sourcing calculates average of individual score sheets to determine section score Sum of team scores determines overall response score (as input to optimization) Technical Team Technical Capabilities (40% weight) John = 90 Mary = 85 Sue = 80 Commercial Team Price (40% weight) Sue = 75 Doug = 80 Tina = 85 Quality Control Team Past Performance (20% weight) Alan = 90 Mark = 80 Quote ABC Technical Capabilities Price Past Performance TOTAL SCORE: 83 = 34 = 32 = 17

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Drive Consistent Execution of Negotiated Terms & Conditions in All Spend Categories Procurement for Complex Services Source to Settle Support for Complex Payments Request for Service Milestones Rates Advances Retainage Lump sums Timecards Receipts Work confirmations Terms Recoupment of advances Release of retainage Agreements Invoices Receipts Facilities services Landscaping services Architectural services Track project details Supplier Collaboration Negotiat e Agreeme nt Advance s ReceiptsInvoicePayment Negotiate Payments: Make Payments: Examples: Validate:Match:Enforce:

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Procurement for Complex Services Define Progress Payment Schedule Suppliers provide timecards, receipts, and work confirmation information that are matched with agreements and invoices Settlement drives release of recoupment of advances & retainage Define progress payments - rate, lumpsum & milestone pay items

Advanced Procurement R12 The Procurement Professional’s Release  Unified Workcenter For All Procurement Responsibilities  Improved Support for Complex Goods & Services  Expanded Supplier Management and Enablement

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Prospective Supplier Registration Reduce Overhead with Self-Service Registration Supplier Requests Use corporate website to allow interested prospective suppliers to register Configure qualification details captured during registration Define req. elements of supplier profile Include customized questionnaires* as part of registration Supplier Registration Review & Approval Use request details to customize approval flow Enable approvers to update details Notify suppliers via once registration request has been approved / rejected * Requires iSurvey

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Supplier Management User-Interface Streamlined Supplier Profile Management Create supplier To Do List for requests Search or drill down to supplier details

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Unified Catalog Architecture Establish a Single Authoring, Ordering, & Maintenance Environment Punchout & transparent punch-out Catalog Admin Buyer Supplier Sourcing User Requester Buyer Catalog Bulkload / online author & update content Upload and maintain content View, approve, add, edit, and delete items Add new items from award lines Approval workflows Reduce Maintenance Efforts and Drive Spend Visibility

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Content Security with Content Zones Provide the Right Content to the Right People Promotional Items Marketing Exec Maintenance Improve control over what end users can see & user buying experience Execute organizational unit-specific procurement strategies Reduce risks associated with sensitive categories Catalog Industrial MRO Professional buyer Partition content into zones Combine zones to create stores Grant access by OU or responsibility Content Zone 1 A Suppliers Categories C B XZY X X Content Zone 2 A Suppliers Categories C B XZY X X X X X

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Purchasing Mgr Within Requester’s tolerance? Route to Requester’s hierarchy PO updated & submitted to approval workflow Route changes to Buyer Route changes to buyer’s hierarchy Within Buyer’s tolerance? Yes No Yes PO Approved Approver Buyer PO changes within limits? Exception Processing Touchless Processing OSN*/ XML / EDI Supplier Portal Fax Tolerance Based Auto-Approvals Automate Processing of Routine Change Requests Supplier Change Orders / Requests

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Self-Service Supplier Scorecarding Drive Improvements w/ Access to Supplier Performance Management Spend analysis trend Supplier management KPIs

New in 11i.9…Base Differentiators… Self-service enterprise requisitioning from suppliers or internal stock Integrated asset and production planning Self-service supplier inquiries and transactions, (e.g. VMI and self-invoicing) Flexible invoice matching including match to receipt Automatic invoice and debit memo generation Project- and budgetary- based purchasing Multi-attribute scoring for reverse auctions and RFQs Open platform for demand, orders, receiving, invoices Integrated spend and supplier intelligence Workflow-driven automation New in 11i.10… Global agreements Supplier managed and consigned inventory Requester and supplier change requests Supplier registration and profile management Collaborative sourcing Requester “stores” for secure content zones Patent-pending transparent punch-out One-click renegotiation of blanket agreements Expanded XML support including cXML for easing Ariba migrations Time-phased pricing for direct materials Commodity intelligence Services procurement – contingent labor & bus services, negotiation through payment Procurement contracts – global T&Cs standards, negotiation, doc & change mgmt, compliance Formula-based pricing & tiered discounts (Advanced Pricing) Retroactive pricing including automated invoice adjustments Negotiate with subjective scoring and what-if analyses Automatic bid scoring and award (Sourcing Optimization) Shared services procurement Requisition “SmartForms” LPN & lot/serial receiving Supplier managed banking Evolution of Oracle Advanced Procurement CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

New in R12… Professional Buyer’s WorkCenter 2-way MS Word integration Complex requisition approvals w/ requestor-directed procurement, parallel & position hierarchy approvals Team scoring of sourcing rqmts Procurement for complex svcs Prospective supplier registration Supplier mgmt user interface for supplier profile management Unified catalog architecture Content security w/ content zones Tolerance based change order auto-approval Self-service supplier scorecarding CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Evolution of Oracle Advanced Procurement PLUS… Shared services support Supplier catalog authoring Advanced pricing integration eTax integration Document styles Negotiation styles Negotiation drafts Automatic scoring of requirements Supplier knockout criteria Payment advances & recoupment Progress payments based on milestones, rates, & lump sums Work confirmations Retainage & authorization of release PO lifecycle tracking Non-PO invoices Clause usage & compliance analysis Supplier-managed user admin