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Oracle Supplier Management
Complete, Open, Flexible, Integrated
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Safe Harbor Statements
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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Agenda Introductions (9.00 AM – 9.10 AM)
Why Supplier Management? (9.10 AM – 9.30 AM) Functional Overview (9.30 AM – AM) Supplier Lifecycle Management Demo (10.00 AM – AM) Break (10.30 AM – AM) Supplier Lifecycle Management Demo (10.45 AM – AM) SLM Exercises (11.30 AM – PM) Lunch (12.30 PM – 1.30 PM) Supplier Hub Demo (1.30 PM – 3.00 PM) Break (3.00 PM – 3.15 PM) SH Exercises (3.15 PM – 4.15 PM) SLM and SH Technical Overview (4.15 PM – 4.45 PM) Wrap up (4.45 PM – 5.00 PM) 3
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Why Supplier Management ?
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Responding to Fluctuating Market
Immediate priorities for CPO Risk and Compliance 1 Supplier Risk 2 Renegotiate Contracts 3 Spend Management Effectiveness Conserve Cash CPOs being asked to do more with less 1 Cut Spending 2 Hiring Freeze 3 Reconsider Cap Ex 5
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Compliance & Governance FDIC Regulation - Managing 3rd Party Relationships in Financial Institutions
Track Potential Risks Arising from 3rd Party Relationships Strategic Risk Reputation Risk Operational Risk Transaction Risk Credit Risk Compliance Risk Other Risks 3rd Party Relationship Oversight Periodic Performance Monitoring
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Environmental Policies
Compliance & Governance Risk Mitigation Corporate business practices extended up supply chain Legal / Regulatory OFAC / SDN Watch List Environmental / Carbon Footprint Accreditation Ethical / Marketing Manufacturing Quality Standards IRS EIN Verification Environmental Policies Child Labor Laws Managing Corporate Social Responsibility United Nations Declaration of Human Rights U.N. Convention on the Rights of the Child International Labor Organization (ILO) conventions Electronic Industry code of conduct International Organization for Standardization Occupational Health and Safety Assessment Health and Safety Executive … ISO 9000 / ISO 14000 OFAC - SDN List
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Company Scorecard Auditing Supplier Performance for Company KPIs
Quantitative assessment: How well is a Supplier meeting my KPIs? “To register all organic growers in countries as part of our target to ensure all organic growers are registered to Nature's Choice” “To audit all organic suppliers as part of our target to ensure that 100% of organic suppliers comply with Nature's Choice” Qualitative feedback: What do my folks tell me about supplier performance? What do my Buyers think about this supplier? Do my requisitioners find the supplier easy to deal with and flexible when needed?
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Identifying Opportunities Vendor Classification Status
Diversity a growing global trend Procurement spend allocated to different supplier classifications “Good corporate citizen” Key requirement for U.S. Federal & State governments Growing global trend London 2012 Olympics “…open to a diverse range of suppliers including Small and Medium-sized Enterprises (SMEs), social enterprises, and businesses owned by BAME people, women and disabled people.”
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How much does unstructured 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 10
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Supplier Management Business Challenges
Supplier Management Cost Mitigate risk and on-board suppliers quickly Provide self-service administration to suppliers Streamline communication with suppliers Poor Visibility Track supplier performance evaluations, qualifications and deliverables Know which suppliers are dependable and cost effective Be assured that spend analytics is complete and accurate Supplier Management Fragmented Data Unify duplicated, incomplete, inaccurate data held within multiple, disparate systems Consolidate & federate shared information across instances Compliance & Governance Assure that suppliers are meeting the code of conduct Ensure that suppliers are adhering to all laws, regulations & standards Provides visibility to viability of suppliers 11
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Oracle Supplier Management Solution
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Enabling More Effective Supplier Management What’s New in Procurement & MDM
Results: Consolidate & Cleanse Supplier Information for Effective Spend Analytics Foundation stone to improve accuracy of analytics results Manage Suppliers through Entire Supplier Lifecycle Streamlines qualification process Improves Sourcing effectiveness Enables controlled assessment Reduce Cost of Supplier Management Maintain single supplier definition Eliminate redundant compliance checks Achieve Rapid Return Standardize and Simplify Procurement Supply Chain Human Capital Master Data Management Financials Applications Technology E-Business Suite 13 <Product Name> <TOI Functional> - 13
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Oracle Supplier Management Solution
Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey) 14
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Supplier Lifecycle Management
Oracle Supplier MDM Supplier Lifecycle Management & Supplier Hub Legacy Supplier Lifecycle Management Supplier Hub Supplier Hub Supplier Lifecycle Management Consolidate - Data Import Mgmt, Source System Mgmt, Cross Reference Cleanse - Matching, D&B Data Enrichment Master - Supplier Classifications & Relationships Share - Data Publication and Synchronization, Web services, Security Govern - Hierarchy Mgmt, Task Mgmt, Classification Mgmt Registration and Onboarding Supplier Profile Management Qualification and Notification Management Compliance and Profile Audit Supplier Assessment and Performance Management This picture describes the various features that are applicable for Supplier Lifecycle Management and Supplier Hub products. It also lists the product responsibilities and profile option that controls the menu navigation and functionality for each of the product. 15
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Oracle Supplier Management Solution Deployment Options
The two main products and their two variations are described in the above picture from deployment perspective. Supplier Lifecycle Management for MDM is a variation of Supplier Lifecycle Management and has the same features that of Supplier Lifecycle Management. But applicable only for a Standalone Supplier Hub deployment. Supplier Data Management Add-on is a variation of Supplier Hub and has the same features that of Supplier Hub. But applicable only for an existing EBS Instance deployment. Oracle Supplier Lifecycle Management and Oracle Supplier Data Management Add-on can be deployed only on an existing EBS R application instance. And Oracle Supplier Hub and Oracle Supplier Lifecycle Management for MDM can be deployed only on a standalone MDM application instance using EBS platform (R level). (a) Supplier Management with Stand-alone MDM instance (b) Supplier Management with Existing EBS Instance 16
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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 JDE Oracle Customer Hub Oracle Supplier Hub Oracle Product Hub Oracle Site Hub Oracle / Hyperion Data Relationship Management Custom Apps 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. External Apps Application Integration Architecture Oracle Fusion Middleware 17 17
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Oracle Supplier Management Solution
Summary Improve Supplier Performance Management Reduce Supplier Management Costs Simplify Supplier Selection and Reduce Risk Enhance Supplier Compliance Management Increase Accuracy of Spend Analysis Streamline Procurement Processes “…companies are spending…between $585 and…$1,000 per supplier annually…however, when information, enabled by technology, becomes visible across the organization, costs per supplier quickly dwindle to below $150 per supplier.” AMR Research, June 2009 18
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Functional Overview
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Supplier Directory Supplier Directory Identification On-boarding
Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey) 20
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Supplier Profile Fixed Attributes + Extensible Attributes
Unstructured Data 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 Fixed Attributes Extensible Attributes Company Level Insurance Information Worker Compensation, Liability, Auto, EMR Compliance Information Environmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant Address Level Quality Systems ISO 9001, ISO 14001, ASA 100, FAR 145 Production Capacity Machinery, Average Capacity, Max. Capacity Site/OU Relationship Level Supplier Profile Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Freight Forward Detail Questionnaires RFI/Questionnaires (Supplier & Internal) Deliverables Item/Supplier Relationship Level (PIM) Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, RoHS Compliant, WEEE Compliant 21
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Extensible Supplier Profile Company, Address, Site, Item Level Extensions
Supplier Organization Level Computer Supplies, Inc. Insurance Information Worker Compensation, Liability, Auto, EMR Supplier Company Compliance Information Environmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant Supplier Address Level Quality Systems ISO 9001, ISO 14001, ASA 100, FAR 145 Production Capacity Machinery, Average Capacity, Max. Capacity CSI, Shanghai, China CSI, New York, US Supplier Site/OU Level Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Freight Forward Detail Vision, Atlanta, US Operating Unit Vision, San Francisco, US Operating Unit Vision, Dallas, US Operating Unit, Inventory Organization Business administrators can easily setup user defined attributes for managing extended supplier profile information at different data levels. Supplier extended profile attributes can be enabled at Supplier party organization level, Supplier Address level and at Supplier site levels. For example, You could setup and manage Supplier Insurance and various Compliance information at the Supplier party organization level. You could setup and manage Supplier Quality control capability or production capacity kind of information at the supplier party address level(I.e Supplier party site level) You could setup and manage some of the Logistics related information at the Buyer’s operating unit level for a given supplier address, which is called as Supplier site level in the product. Vision Computer Corporation Item/Supplier Level Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, RoHS Compliant, WEEE Compliant Buyer Company Vision, San Jose, US Inventory Organization Vision, Fremont, US Inventory Organization Vision, Stratford, US Inventory Organization 22 22
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Access to Supplier Profile Controlling who can view/edit what Supplier Information
Computer Supplies, Inc. 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: Business administrators can control access for view and edit of user defined supplier profile attributes for various user roles like Administrator, Strategic Buyer, Standard Buyer or Supplier User on a supplier record. They can configure any custom roles, which are also called permission sets, as needed and include necessary privileges which are also called permissions. From setup pages, administrators can control supplier profile access levels using different roles on all supplier records at site level for different users or group of users (using instance set grants). For a more granular access control, from supplier detail page, administrators can control supplier profile access levels using different roles on individual supplier records for different users or group of users (using direct grants). Supplier User Standard Buyer Strategic Buyer Administrator 23 23
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New Supplier Registration and Qualification
Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & I will now discuss the Supplier Registration and Qualification functional flow. Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey) 24 24
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New Supplier Registration and Qualification Process Flow
Duplicate checks Computer Supplies, Inc. Vision Computer Corporation Computer Supplies, Inc. Prospect Supplier Request Prospect Supplier Request New Supplier Admin New Supplier Prospect Self-Registration Review request, Attach Questionnaire Respond to Questionnaire Prospect Supplier Request Vision Computer Corporation Supplier Master Supplier Master Profile Evaluation Team Supplier Evaluation, Scoring, Shortlist and Approval Supplier and Evaluator Response mastered as profile System Notification to New Supplier 25 25
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Supplier Profile Management
Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey) Supplier Profile Management 26
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Supplier Profile Management Flow#1 – Supplier self-service Profile Management
+ Address Bank details Contacts Attachments Computer Supplies, Inc. Vision Computer Corporation Supplier Business Classification Products & Services Other Extensible Attributes Admin Updates using self-service Portal Reviews and Approves Changes Supplier Master Profile Changes Mastered 27
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Supplier Profile Management Flow#2 – Buyer Initiated Profile Maintenance
Vision Computer Corporation Computer Supplies, Inc. Questionnaire Admin Supplier Responds to Questionnaire Creates Questionnaire Supplier Profile Attributes Questionnaire Supplier Master Vision Computer Corporation Supplier Master Profile Item-Supplier Profile Attributes Evaluation Team Review, Evaluate, Score On Completion, Master the Supplier and Evaluator Responses Item Master 28 28
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Supplier Performance Management
Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Supplier Performance Management Ongoing Assessments (eRFx/Survey) 29
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Supplier Performance Management Process Flow
Vision Computer Corporation Vision Computer Corporation Supplier Master Supplier Internal Evaluation Supplier Master Profile Admin Internal Evaluation Team Supplier Performance Evaluation, Score On Completion, Evaluator Response mastered as profile Create Evaluation Questionnaire 30 30
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Supplier Performance Management Internal Assessment
Evaluated Suppliers Internal RFI / Questionnaire Computer Supplies, Inc. Electronic Supply Invited Evaluators Is Supplier flexible during negotiations? Is Supplier responsive? Buyer Joe Any Quality complaints? No Yes Overall Supplier Satisfaction The picture illustrates the Supplier performance evaluation using Internal RFI and creating Supplier performance scorecard. Using Internal RFIs multiple internal collaboration team evaluators can evaluate multiple suppliers and provide their evaluation and ratings on any custom evaluation criteria. The evaluations and scores can be synchronized with Supplier master profile to provide a 360 degree view about supplier performance. Is Supplier flexible during negotiations? Is Supplier responsive? Any Quality complaints? No Yes Buyer Ed Overall Supplier Satisfaction 31 31
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Supplier Master Data Management
Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (eRFx/Survey ) Identification On-boarding Supplier Master Contract Obsolescence Supplier Inactivation OBSOLETE Assessment Maintenance & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (eRFx/Survey) 32
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Supplier Master Record
Supplier Master Data Management Consolidate, Cleanse, Enrich Supplier Master Data Quality Management tools Spoke Supplier Master Record Enrichment De-Dupe Spoke Spoke Supplier Hub Thomson You can consolidate and centralize Supplier data held in multiple application known as source systems using Master Data Management capabilities. Experian Consolidate across multiple heterogeneous legacy systems containing inconsistent sets of supplier data 33 33
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Supplier Master Data Management Source System Management
Registration & cross-reference for source (spoke) systems Data Hub Registry ID 3177 Source System A BB253 Source System B 8808 Identifier A: BB253 Identifier B: 8808 A B Supplier Hub The Supplier data from different source systems can be merged to create a single source of truth record and maintain cross references of the source system. This cross reference information is leveraged during future import process updates to correctly update the merged golden record. 34 34
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Supplier Master Data Management Data Quality Management
Create a single Supplier master profile from multiple sources Source 1 (Purchasing) Source 2 (Payables) Merged Record US$ 1.1M US$ 1.1M Revenue Merge supplier records from multiple systems to create “Golden” record. Party level information for the master Supplier profile based on user choice from the identified duplicates. User Defined Profile Attributes and Control level information of the selected master supplier record for the master Supplier profile. Business Classification, Product and Services, Bank Detail, General and Industrial Classifications added to the master Supplier profile # of Employees 20,000 21,000 21,000 Small Bus. HubZone Small Bus. Hubzone Business Classifications Laptop Desktop, Laptop Product and Services Desktop Net 45 Net 42 Invoicing Terms Net 42 35
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Supplier Master Data Management Data Enrichment and Validation
Out-of-the-Box D&B Integration Search D&B for Prospect Trading Party Information Evaluate Prospect Supplier Credit & Risk using D&B Vendor Management Product Enhance existing Supplier party records with pre-built integration Import data in real-time or batch mode Choose from different D&B data packets/products Out-of-the-Box Trillium Integration Address Matching and Cleansing D&B (formerly “Dunn and Bradstreet”) information based on your choices incorporated into the master profile for Supplier party. Address validation Provides option to validate addresses on the way in (helps improve matching as well as improving quality of address data) TCA provides address validation 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 return with validation and/or enrichment or standardization. 36
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Supplier Master Data Management
Supplier Hierarchy Relationship Role Company Name Best Supply Corporation View and Manage Supplier Hierarchies Browse Relationships through multiple hierarchies D&B Hierarchy Partner Relationship Hierarchy Custom Relationship Hierarchy… Parent Company Address: 29261 South Frost Road, Liingston, LA - (225) DUNS #: Best Supply Americas Subsidiary Of Address: th Avenue, Seattle, WA - (206) DUNS #: Best Computer Supply Child Business Entity Of Address: 2300 West Whitendale, Visalia, CA - (559) DUNS #: Child Business Entity Of Best Electronic Supply Address: 9260 Bay Plaza Boulevard, Tampa, FL - (813) DUNS #: Best Supply Europe Subsidiary Of Address: C/ Gran De Gràcia, 15, 08012 Barcelona, Spain DUNS #: 37
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Supplier Master Data Management
Supplier Relationship Classifications Classification Scheme Classification Code Classify Your Suppliers Supplier Preference Category Platinum Gold General Classifications: Classify suppliers based on the way they are referenced within your organization Supplier Preference Category Supplier FDIC Risk Category Supplier Watchlist Best Computer Supply Bottle Neck Supplier FDIC Risk Category Strategic Risk Financial Risk Compliance Risk Computer Parts Supplies Operational Risk Supplier Watchlist OFAC – SDN List UN Consolidated List Electronic World Supplies Unauthorized Banking List
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Supplier Master Data Management
Supplier Relationship Tasks Task Assignee Attachments Due Date Status Invite Supplier to Sourcing Event for MDK385 Buyer Ms. Catherine Baker, Sourcing Professional Product Specs Terms and Conditions Apr Open Submit Compliance Documents Supplier Mr. Edmund Murphy, Supplier Contact Code of Conduct Document May Completed Relationship Tasks and Notes Manage corrective actions using tasks and notes. Share them with suppliers. Assign tasks to internal and supplier users Add attachments, due-date and status to tasks Control visibility of notes Note Visibility User Date Entered Note Type Discussed delivery performance issues Public Mr. James Bradley Apr Feedback Schedule Q3 Business Review Private Ms. Henna Jackson May Meeting
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Supplier Master Data Management Publish Supplier Master Data to Spoke Systems
Infrastructure to Publish ‘Supplier Master’ data from Hub: Synchronize Business Events Webservices / APIs Spoke Publish Profile Synchronize Spoke Synchronize Supplier Hub You can leverage the Business events and the APIs from Integration repository for Supplier entity to publish the Supplier master information to spoke systems. Spoke 40 40
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