1. Oracle Supplier Management
Complete, Open, Flexible, Integrated

2. 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.

3. 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

4. <Insert Picture Here>
Why Supplier Management ?

5. 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

6. 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

7. 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

8. 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?

9. 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.”

10. 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

11. 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

12. <Insert Picture Here>
Oracle Supplier Management Solution

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. <Insert Picture Here>
Functional Overview

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 41