1. Implementation Case Study
Oracle Cloud Enabled Source to Pay Transformation
Oracle Open World, October 25, 2018

2. Session Overview 1 2 3 4 5 Deloitte CPO Survey Results 2018
TCF’s Case for Change 3
The Transformation Journey Map 4
Oracle Cloud Enablement 5
Differentiating Solves to Deliver Value

3. Presenters Sharon Krumm Ekam Ramesh Carolyn Chao
WHO WE ARE
Presenters
Sharon Krumm
EVP, Strategic Sourcing
TCF National Bank
Ekam Ramesh
Senior Manager
Deloitte Consulting LLP
Carolyn Chao
Senior Consultant
Deloitte Consulting LLP

4. The Deloitte Global Chief Procurement Officer Survey 2018

5. The Deloitte Global Chief Procurement Officer Survey 2018

6. Financial Services Industry Outlook
Impact of Digital Procurement Technologies
Deloitte’s view is that applying digital technologies to the procurement function can enable strategic sourcing to become more predictive, transactional procurement to become more automated, supplier management to become more proactive, and procurement operations to become more intelligent.
Financial Services Industry Outlook
1. Strategy:
Managing risks (81 percent) has now surpassed reducing costs as Financial Services industry’s key business strategy
2. Value and Collaboration:
Improved transparency of pricing, supplier locations, and critical dependencies can help procurement functions deliver greater value
3. Talent and Leadership:
There is a direct correlation between stronger leadership capabilities, higher spend on training, and enhanced performance
4. Digital Procurement:
Digital transformation is inevitable and high-performing organizations are leading the way on adoption

7. Oracle Cloud Implementation Approach
To accelerate delivery of this project, Deloitte leveraged assets, tools, and accelerators from Deloitte’s Digital Finance for FSI SolutionPrint.
Oracle Cloud Footprint at TCF
Deloitte’s Value Delivery
Copyright © 2018 Deloitte Development LLC. All rights reserved.

8. The TCF Journey
End to End Transformation enabled by Oracle Cloud

9. TCF – At a Glance

10. How We Operate

11. Our Strategic Pillars

12. TCF’s Case for Digital Transformation of Source to Pay
Value Creation
Risk Mitigation
Market Evaluation & Supply Chain Transparency
Spend Analytics & Aggregation
TCF Standard Form Agreements
Utilization of Contracted Suppliers
Deal Pipeline & Paperless Workflow
Supplier Due Diligence
Regulatory Compliance
Deal Review & Contract Approvals
Exception Reporting for Non-Standard Contract Terms
Monitoring Supplier Service Levels
Supplier Relationship Management
Business Alignment & Collaboration
Performance Management & Process Efficiency
Enterprise Relationship Management (TCF & Supplier)
Strategic Product & Service/Innovation Focus
Create & Enable Win-Win Relationships
Aligned Deal pipeline meeting business needs, required timing, value creation & risk appetite
Balanced Scorecard providing transparency of deal pipeline, value creation, compliance & cycle time
Viewed as a trusted advisor & business partner

13. Differentiating Functional Requirements for Cloud Enablement
Sourcing Strategy
TCF Standard Form Agreements
Supplier Due Diligence & Regulatory Requirements
Contract Exception Reporting
Spend Analytics
Process and Technology
Paperless Workflow & Approvals
Systemic Process Controls
Exception Reporting
Balanced Scorecard
Customer Experience
Simplified “I Need to Buy Something” Process
Deal Pipeline Transparency
Self Service Purchasing & Automated Approval Hierarchy
Punch-out/Catalogs
Contingent Worker Process
Supplier Collaboration
Supplier Role, Profile & Catalog Self Service
Interactive Portal for Supplier Due Diligence & Updates, RFx’s, PO, Invoice Payment, Notification, Status & Updates
Process Efficiency & Accuracy
Supplier Relationship Mgmt.
Enabled By:
Sourcing
Procurement Contracts
Supplier Qualification Management
Negotiations
Purchasing
Payables
Oracle Analytics Cloud
Enabled By:
Procurement Contracts
Supplier Qualification Management
Negotiations
Purchasing
Supplier Portal
Oracle Analytics Cloud
Enabled By:
Purchasing
Self Service Requisitions
Oracle Analytics Cloud
Enabled By:
Supplier Qualification Management
Negotiations
Purchasing
Payables
Supplier Portal

14. Transformation Journey Roadmap Execution
2016
2017
2018
Technology
(Oracle Cloud)
Software Selection
Implementation Kick-off (R11)
Contracts, SQM, Negotiations Go-Live
HCM Go-Live
R12 Upgrade
R13
Upgrade, SQM Feature Updates
PO, AP, Supplier Portal, OAC Go-Live
Process
Supplier Master Creation & Cleanup
Enterprise Supplier Master with Spend
TCF Standard Form Agreements
Contract Exception Rpting
Contract & Engagement Review & Approval
Supplier Due Diligence
Regulatory Compliance
SLA Monitoring
Employee Requisition
Job Openings
Self Service Organization Management
Benefits Enrollment
Contingent Worker Mgmt.
Self Service Profile
Time & Labor
Enhanced Supplier Due Diligence
Security Upgrades
Self Service Purchasing
Market Evaluation (RFx)
Supplier Collaboration
Deal Pipeline
Spend Analytics & Aggregation
Contract Utilization
I Need to Buy Workflow
Sourcing News
Contract & DD Document Conversion & Process Definition
People
Cross-Functional Internal Resources
Contract Resources
Hired:
VP’s, SS
Communication Leader
Paralegal
Product Owner
Process Improvement
Outsourced:
Req & PO Processors, BI Rpting & Analytics
Process Definition & Design/Improvement
Hired SVP’s, Strategic Sourcing (SS)
Hired Sourcing Specialists
Offshore: Market Intelligence
Transitioned Supplier DD from SRM to SS
Hired Operations & Technology Leader
Lesson Learned: Train, Train & Train some more
Key to Success: End to End Process Design is Critical

15. Transformation Journey Roadmap to Deliver Benefits
SS Vision & Strategy
Technology Investment Approval
Org Approval
Hire SVP’s
ID & Negotiate Key Supplier Contracts to Deliver Value
Successful 1st Technology Release
Utilize TCF Agreements
Implement SPOC model internally; Category Mgmt. Externally
Monthly Balanced Scorecard
1st Customer Survey
Begin Spend Analytics from PO’s
Create Category Plans
Expand Balanced Scorecard
Expand Spend Analytics
Process Optimization
Optimize time between Contracting & Supplier Relationship Mgmt.
Strategic
Began Data Cleanup on Enterprise Supplier Master
Enterprise L2/L3 Process Design
Data Conversion of Enterprise Suppliers, Contracts & Due Diligence Documents
Begin Req/PO phased rollout across Enterprise
Implemented compliance process metrics
Finish Req/PO phased rollout across Enterprise
Plan/Execute on Contract Hierarchy & Data Cleanup
Rationalize Tail Spend Suppliers
Expand Use of Delivered Cloud Functionality
Transactional
Implemented SRM Reviews for Critical Suppliers
Implement SRM for High Risk Suppliers
Digital Collaboration via Supplier Portal
Improved Supplier Performance
Supplier Relationship
Benefits
20% in Planned YOY Value Delivery + annuity stream from PY’s
Technology Business Case Realized
Op Productivity
Share of Wallet with Strategic Suppliers
SS viewed as a Business Partner
25% in Planned YOY Value Delivery + annuity stream from PY’s
Leadership Advocacy
Repeatable & Reliable Processes
Improved Customer Service & Satisfaction
Value Delivered by 48%
600 Contracts Executed
Approval for & Successful 2nd Technology Release
Demand for SS results in Resource Investment
Planned Value Delivered
Successful 1st Technology Release
Line 1 Transitioned from Risk Mgmt. to SS
CFO Advocacy
Leadership Support
2016
2017
2018
2019
2020

16. Oracle Cloud Enablement for TCF’s Sourcing Organization
Identification of the most suitable technology platform to fulfill Strategic Sourcing’s vision 1
Commencement of digital enablement and leading practices based business processes 2
Transformation of the strategic aspect of sourcing to create value 3
Enhanced customer experience by enabling self-service across the enterprise and transparency with transactional procurement 4
Robust platform to communicate and collaborate with suppliers to deliver value on both sides 5
Pathway to sustain and realize the value delivered in order to continue growth 6

17. Configuring Oracle Cloud for TCF’s differentiating requirements
Sourcing Initiation Request
Risk Assessment & Enhanced Due Diligence
Engagements (Contracts)
Integration with Supplier Risk Management
Contingent Worker Request
Sourcing Deal Analytics

18. Configuring Oracle Cloud for TCF’s differentiating requirements
Functionality
Oracle Cloud Configuration Design Choices 1
Sourcing Initiation Request (SIR)
Smart Form and Information Template are used to turn Noncatalog Requisition into SIR and route to Sourcing Specialists to begin sourcing process
Sourcing Specialist completes due diligence, negotiations, and contract while SIR is in approval queue and updates the agreed upon price on SIR
Approved SIR is processed into a purchase order and sent to supplier 2
Risk Assessment & Enhanced Due Diligence
Supplier Qualification is used for its questionnaire functionality to conduct Pre-Assessments for potential suppliers; scoring allows for Initial Risk Rating to be calculated
Enhanced Due Diligence questionnaires are sent to suppliers based on Pre-Assessment outcome and enable determination of Residual Risk Rating 3
Engagements (Contracts)
Engagement is set up as a Contract Type in Procurement Contracts with separate numbering scheme and naming convention for clear differentiation from contracts
Descriptive Flexfields store pertinent information to the Engagement such as risk ratings, relationship manager, and contract ID 4
Integration with Supplier Risk Management
Custom reports provide daily extracts of Pre-Assessment and Enhanced Due Diligence questionnaire responses to be entered into Archer
Archer calculates Residual Risk Rating based on Pre-Assessment score and Enhanced Due Diligence questionnaires
Risk ratings are stored on the Engagement record in Oracle Cloud 5
Contingent Worker Request
Smart Form and Information Template are used to turn the Noncatalog Requisition into a Contingent Worker Request if the supplier is contracted but there is no agreed upon rate for the worker
Blanket purchase agreements are used when there are contracted rates, each line serving as a role with an hourly rate
Upon approval of the request, contingent worker details are sent in an FYI notification to HCM for third party provisioning 6
Sourcing Deal Analytics
Descriptive Flexfields on SIR, Engagement, Negotiation, and Contract tie these records together for each deal – creating deal workflow
Oracle Analytics Cloud is used to create Deal Pipeline report that allows for tracking of a deal through its lifecycle and provides a consolidated view of upcoming deals, as well as, regulatory and compliance metrics

19. Questions