Continuous Sourcing Procurement Intelligence Operational Procurement Enterprise Requisitioning

Continuous Sourcing Procurement Intelligence Operational Procurement Enterprise Requisitioning Supplier Collaboration Oracle Procurement Know More. Do More. Spend Less. <Name> <Title>

Oracle: Complete E-Business Suite ü Automate Key Develop Contracts Market Projects HR Finance Sell Order Customers, Suppliers, Plan Products, … Maintain Procure Service Make Fulfill Internal Business Processes ü Extend Automation to and Collaborate with Your Trading Partners ü Drive Continuous Improvement with Real-Time Intelligence

Oracle Procurement Solution Demand Planning & Scheduling Maintenance & Facilities Collaboration RFx Auction Offers Contracts / Catalogs Quotes Bids Counteroffers Sourcing Approval Purchase Order Design & Engineering Receipt Procurement Process Automation Suppliers Orders Changes Ship Notices Invoices Time Cards Messaging: XML / EDI Time Entry Payment / Reconciliation EFT/Check Statement Personnel Self-Service Requisitions Portal Integrated Intelligence Spend Analysis Time Mgmt Procurement Productivity Parts & Material Services Banks Supplier Performance

Oracle Procurement Solution Enables You To… Œ Source for Best Value Automate Complete Procure to Pay Flow Extend Efficiencies Through Supplier Collaboration Identify Savings and Supplier Improvement Opportunities

Comprehensive Sourcing Tools Integrated, Closed-Loop Assess Needs Gather Info Optimize Decisions • Identify opportunity • Establish sourcing strategy • Identify sources • Qualify supplier • Develop Bidder’s List • Weight attributes • Rank bids • Evaluate scores Analyze Develop Qualify Negotiate Evaluate Award Develop Requirements Manage RFx Award • Gather Specifications • Define key attributes • Aggregate items & services • Define rules of engagement • Initiate negotiation • Receive Responses • Determine winner • Notify participants • Send POs/Contracts Monitor Supplier Performance • Price, quality, delivery, service • Basis for new supply decisions

Support Any Negotiation Flexible Methods Address YOUR Sourcing Strategy RFQ / RFP / RFI / Quote Auction / Bid Offer / Counter Offer Good or Service Complex, Engineer to Order Well-Defined Attributes Standard Commodities Example Construction, Govt. Furniture, Memory Paper, Metals, Oil Duration Days or Weeks Hours Varies Focus Meet Need for Many Attribute Negotiate Best Price Best Terms: Price, Delivery, Payment

Complex Negotiation Support Increase Negotiation Efficiency Ÿ Multi-Round Negotiations Ÿ Change Attributes Between Rounds – Bid items – Invitees Ÿ Comprehensive Controls – Invitation – Partial bid – Auto-extend – Minimum bid & increment Ÿ Multi-Attribute Bidding Ÿ Monitor Bid Events in Real-Time Ÿ Collaborative Threaded Discussions

Evaluation & Award Decision Support Make the Right Decision Multi-Attribute Scoring – User-definable bid attributes and weights – Leverage item/supplier historical bidding data – Bid ranking analysis Awarding – Automatic bid ranking – Partial award or split award decisions – Online & offline awarding

Oracle Procurement Solution Enables You To… Œ Source for Best Value Automate Complete Procure to Pay Flow Extend Efficiencies Through Supplier Collaboration Identify Savings and Supplier Improvement Opportunities

Lifecycle Support End-to-End Solution Analyze Spend & Develop Requirements Award Contracts/POs Auto-Create Purchase Order Pay Supplier Qualify Suppliers Access Electronic Content Send Electronic PO to Supplier Receive Bank Statement Negotiate Contracts Create Requisition/ Release Receive Goods or Services Auto-Reconcile Bank Statement Evaluate Bids Approve Requisition/ Release Receive Electronic Invoice Record Transaction in General Ledger

Direct and Indirect Procurement Support All Types of Demand Ÿ Product Engineering Requests Ÿ Forecasts and Schedules Planning & Scheduling Ÿ Manufacturing / Shop Floor Requests Ÿ Plant Maintenance & Facilities Ÿ Inventory Replenishment Ÿ Outside Processing Design & Engineering Ÿ Contract Management Ÿ Catalog Purchases Ÿ One-Time Requests Personnel Ÿ Projects Ÿ Professional Services Self-Service Requisitions Ÿ Favorite Items and Templates

Workflow Driven Processes Easily Tailor Without Customizing Ÿ Graphically Depict Entire Process Ÿ Modify Process as Your Business Changes Ÿ Capture Exceptions and Take Action Ÿ Build Continuous Improvement into the Process

Oracle Procurement Solution Enables You To… Œ Source for Best Value Automate Complete Procure to Pay Flow Extend Efficiencies Through Supplier Collaboration Identify Savings and Supplier Improvement Opportunities

Exchange Common Business Documents Collaborate in Real-Time Supplier Qualifications Buyer Forecast & Schedules v. 1 v. 2 Orders Change Orders Shipment Notices Invoices & Payments Time Cards Suppliers

Multiple Methods of Collaboration Accommodate Capabilities of Your Supply Base Supplier Portal Buyer Suppliers Messaging

Collaborate via Supplier Portal Easy, Interactive Access Quick Document Search Access to Procure to Pay data Alerts & Notifications Most Recent Orders Most Recent Shipments Ÿ “Zero Training” Paradigm Ÿ Access to information from order to payment

Collaborate via Messaging Drive Lights-Out Connectivity XML Ÿ Support for OAGI XML standards Ÿ Secure, guaranteed, one-time only delivery Ÿ Trading partner specific data mapping EDI Ÿ Support for industry standards (X 12, EDIFACT, etc) Ÿ Partnerships with major EDI translators Email Ÿ Interactive, easy access, no integration Ÿ Notification of activity on business documents

Oracle Procurement Solution Enables You To… Œ Source for Best Value Automate Complete Procure to Pay Flow Extend Efficiencies Through Supplier Collaboration Identify Savings and Supplier Improvement Opportunities

Performance Management Framework Drive Continuous Process Improvement Define Targets Perform Transactions ŸManagement by Objective – – Define key performance indicators Setup business performance targets ŸManagement by Exception – Analyze & Take Corrective Action Measure Performance – Calculate KPIs and compare to plan Notify decision-maker of exceptions ŸManagement by Fact – – Notify Out of Tolerance? Analyze exceptions based on facts Take immediate corrective action

Daily Business Intelligence Quickly Monitor Performance Real-Time Results Flexible Time Periods Flexible Comparisons Performance Measures Graphs • Daily updates on key performance indicators • Actionable information on savings • Pre-built portals with role-based access • At-a-glance: Links - Reports - Contract leakage Non-contract purchases (sourcing opportunities) Purchasing trends Payables leakage

Integrated Intelligence Delivers Answers Identify Improvement Opportunities Spend Analysis Ÿ Ÿ What is my commodity spend by organization? Which managers are spending the most / least? Where is there contract leakage? Are we leveraging volume discounts from our suppliers? Supplier Performance Ÿ Ÿ How does a supplier item price compare to the average? How does supplier quality compare to my benchmark? Are my items delivered on time? Am I getting the best service from my suppliers? Ÿ What is my average processing cycle time by organization? Productivity Ÿ How many invoices are still processed manually? Ÿ How does the cycle time compare to last month/quarter/year? Ÿ What are the procurement processing bottlenecks?

Spend Analysis Analyze Global Spend D M O M Commodity O Item / Commodity Supplier Organization Buyer Geography Time Contract Supplier C - IT Y • Analyze Spend by: S U P P L I E R • Monitor Pricing Trends & Commodity Performance ORGANIZATION • Determine Contract Utilization Organization Ad Hoc

Supplier Performance Optimize Supply Base Ÿ Scorecard Data Elements – – Transactional Benchmark Industry Subjective surveys Ÿ Automatically Generate Scorecard Operational Detail Data A+ • Price • Quality • Delivery • Service Ÿ Compare Suppliers’ Scorecard Ratings Ÿ Track Trends by Top Supplier, Top Categories, Items Ÿ Share Results with Suppliers Portal

Productivity Improve Internal Processing Ÿ Analyze Cycle-Time Across the Entire Process – – – Negotiate contracts Create purchase request Approve orders Receive goods and services Pay invoices Ÿ Identify Bottlenecks and Correct Process Source Request Approve Order Receive Invoice Pay

Oracle Procurement Solution Unified Internet sourcing tools, complex negotiation support Source for Best Value Workflow driven direct and indirect requisition-to-payment processing Automate Complete Procure to Pay Flow Portal access to P 2 P transactions w/ real-time notifications, XML messaging Extend Efficiencies Through Supplier Collaboration Integrated spend analysis and supplier performance Identify Savings and Supplier Improvement Opportunities

Oracle Procurement Products Develop Contracts Market Projects HR Finance Sell Suppliers, Plan Products, … Procure Maintain Service Order Customers, Fulfill Make Sourcing i. Procurement Purchasing i. Supplier Portal Purchasing Intelligence

Evolution of Oracle Procurement Current Differentiators… …New with 11 i. 9… …Coming in 11 i. 10 • Self-service enterprise • Global agreements • Supplier managed and • Services procurement – 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 budgetarybased purchasing • Multi-attribute scoring for reverse auctions and RFQs • Open platform for demand, orders, receiving, invoices • Integrated spend and supplier intelligence • Workflow-driven automation 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 c. XML for easing Ariba migrations • Time-phased pricing for direct materials • Commodity intelligence 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 & what-if analyses, Auto -award recommendations • Shared services procurement • Requisition “Smart. Forms” • Requisition lifecycle tracking with shipment track & trace • LPN & lot/serial receiving • Supplier managed banking The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality.

Oracle Services Procurement Advanced Procurement Disclaimer: This presentation 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 a purchasing decision. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle.

The Relevance of Services Procurement Today Ÿ Over 54% of a typical F 1000 corporation’s spend is on services 1 Ÿ Spend averages $1. 8 B for typical F 1000 company 1 Projected Services Procurement Growth Ÿ US companies outsourcing spend growing at 24% 2 Ÿ By 2003, approximately 50% of IT dollars will be spent on external services 3 Ÿ IT outsourcing is expected to reach $100 B by 2005 4 Source: (1) (2) (3) (4) Center for Advanced Purchasing Outsourcing Institute Outsourcing Research Council IDC Disclaimer: This presentation 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 a purchasing decision.

What Are Your Business Challenges? Ÿ Services Procurement process is paper based, fragmented and not automated Ÿ Service spend is hidden Ÿ Unable to share purchasing knowledge Ÿ Average cost to hire a contractor is $4, 500 1 Ÿ Over 60% of invoices are inaccurate 2 Source: (1) (2) Forrester Research Meta Group Disclaimer: This presentation 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 a purchasing decision.

Opportunity Metrics Reduced Costs (Hard cost savings: 10 -20%) 15 -30% Savings Opportunity! Ÿ Improved negotiating leverage & unit cost reduction (5 -10%) Ÿ Eliminate over billing & Increased early pay discounts (2 -4%) Ÿ Reduced maverick spend by (3 -6%) Improved Quality & Performance (Soft cost savings: 5 -10%) Ÿ Reduced processing costs and cycle time (3 -7%) Ÿ Increased performance, quality and user satisfaction (2 -3%) Reduced Risk Ÿ Improved contract and financial compliance Ÿ Proactive supplier measurement Disclaimer: This presentation 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 a purchasing decision.

Service Type Specialization Service Type Fixed Price Services Skills/Temporary Labor Time & Materials Defined Deliverables Retainer-based Services Service Category • Facilities • Marketing • Administrative • Information Technology • Consulting • Training • Construction • Software Development • Legal Services • System support Disclaimer: This presentation 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 a purchasing decision.

Oracle’s Solution Disclaimer: This presentation 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 a purchasing decision.

Oracle Services Procurement Deploy corporate policies consistently and efficiently Increase usage of preferred suppliers/contractors Eliminate over-billing and reconciliation errors Improve service levels and cycle time through Supplier collaboration Disclaimer: This presentation 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 a purchasing decision.

Oracle Services Procurement Deploy corporate policies consistently and efficiently Increase usage of preferred suppliers/contractors Eliminate over-billing and reconciliation errors Improve service levels and cycle time through Supplier collaboration Disclaimer: This presentation 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 a purchasing decision.

Single Procurement Platform Supplier Selection Sourcing & Evaluation Master Contract Sourcing Infrastructure Contingent Labor Procurement Advanced Procurement – All Commodities, All Processes Disclaimer: This presentation 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 a purchasing decision.

Single Procurement Platform General Business Services Supplier Selection Sourcing & Evaluation Requisition Purchase Order Receiving Invoicing & Payment Procurement Infrastructure Master Contract Sourcing Infrastructure Contingent Labor Procurement Advanced Procurement – All Commodities, All Processes Disclaimer: This presentation 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 a purchasing decision.

Single Procurement Platform Negotiate Contracts Supplier Selection Sourcing & Evaluation Requisition Purchase Order Receiving Invoicing & Payment PO Collaboration Procurement Infrastructure Master Contract Invoice & Payment Sourcing Infrastructure Supplier Infrastructure Contingent Labor Procurement Advanced Procurement – All Commodities, All Processes Disclaimer: This presentation 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 a purchasing decision.

Single Procurement Platform General Business Services Supplier Selection Sourcing & Evaluation Create Requisition/RFX Evaluate & Engage Supplier Milestone and Performance Mgmt Invoice & Payment Requisition Purchase Order Receiving Invoicing & Payment Negotiate Contracts PO Collaboration Invoice & Payment Master Contract Contingent Labor Procurement Advanced Procurement – All Commodities, All Processes Disclaimer: This presentation 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 a purchasing decision.

Single Procurement Platform General Business Services Supplier Selection Sourcing & Evaluation Master Contract Create Requisition/RFX Evaluate & Engage Supplier Milestone and Performance Mgmt Invoice & Payment Requisition Purchase Order Receiving Invoicing & Payment Engage Supplier Track & Manage Time Create Request Invoice & Payment Negotiate Contracts PO Collaboration Invoice & Payment Contingent Labor Procurement Advanced Procurement – All Commodities, All Processes Disclaimer: This presentation 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 a purchasing decision.

Single Point of Entry for All Request Types Guide users to appropriate “Store” based on request type Ÿ Professional services Ÿ Temporary staffing Ÿ Office supplies Ÿ IT equipment Ÿ Industrial Supplies Ÿ Maintenance Ÿ Promotional items Disclaimer: This presentation 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 a purchasing decision.

Request for Services using “Smart Forms” Flexible templates to capture service details Ÿ Flexible templates to define authorized service terms and rates Ÿ Professional and general business services Ÿ Minimize data entry, default values from templates Ÿ Capture additional service details during request creation Ÿ Configure approval rules based on smart forms Disclaimer: This presentation 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 a purchasing decision.

Create Contractor Request Capture job and skill requirements Ÿ Capture job details including skills, assignment location and dates Ÿ Optionally flag request to require candidate screening Ÿ Dynamically capture information based on job type using information templates Ÿ Capture additional service details including project information during checkout Disclaimer: This presentation 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 a purchasing decision.

Oracle Services Procurement Deploy corporate policies consistently and efficiently Increase usage of preferred suppliers/contractors Eliminate over-billing and reconciliation errors Improve service levels and cycle time through Supplier collaboration Disclaimer: This presentation 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 a purchasing decision.

Create Contractor Request Access Preferred Suppliers and Pre-negotiated Rates Ÿ Guide users to preferred suppliers Ÿ Display pre-negotiated rates and rate differentials Ÿ Optionally enter a suggested candidate Ÿ Budget and track labor and expense amounts separately Ÿ Route for approval based on existing corporate policies Ÿ Automatically notify supplier once approved Disclaimer: This presentation 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 a purchasing decision.

Share Knowledge Within Your Enterprise Ÿ Make informed hiring decisions based on contractor performance data collected across the Enterprise Ÿ Define preferred supplier policies based on job type at both the global and local level Ÿ Ensure proper usage of preferred suppliers, service terms and rates through use of “Smart Forms” Disclaimer: This presentation 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 a purchasing decision.

Oracle Services Procurement Deploy corporate policies consistently and efficiently Increase usage of preferred suppliers/contractors Eliminate over-billing and reconciliation errors Improve service levels and cycle time through Supplier collaboration Disclaimer: This presentation 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 a purchasing decision.

Submit Timecards Online Pay Only for Services Performed Ÿ Automatically create invoice from approved timecard Ÿ Validate time entry against PO Ÿ Route time for approval Ÿ Update PO with approved time Ÿ Online entry or disconnected spreadsheet upload Ÿ Reference project details Disclaimer: This presentation 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 a purchasing decision.

Invoice Matching Ÿ Flexible 2 -way or 3 -way matching Ÿ Match based on “amount” Ÿ Define tolerances based on amounts Ÿ Automatically create invoices from service receipts Disclaimer: This presentation 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 a purchasing decision.

View Contractors Summary Information on demand plus automatic alerts Ÿ Up-to-date budget to actual comparison Ÿ Quick access to contractors nearing completion Ÿ Initiate assignment extensions Ÿ Automatic alerts Ÿ PO is 80% consumed Ÿ Assignment is ending in 7 days Disclaimer: This presentation 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 a purchasing decision.

Oracle Services Procurement Deploy corporate policies consistently and efficiently Increase usage of preferred suppliers/contractors Eliminate over-billing and reconciliation errors Improve service levels and cycle time through Supplier collaboration Disclaimer: This presentation 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 a purchasing decision.

Supplier Collaboration Timecard Views Ÿ View details of approved time and rate(s) Ÿ Export timecard to Excel Disclaimer: This presentation 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 a purchasing decision.

Supplier Collaboration Ÿ Self-managed supplier profiles – specify service commodity capabilities Ÿ View and respond to negotiation documents Ÿ View purchase orders and drill to related timecards, invoices, and payments Ÿ Manage change requests including assignment extensions and terminations Ÿ Submit invoices online Disclaimer: This presentation 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 a purchasing decision.

Oracle Procurement Contracts Standardize. Streamline. Comply. This presentation 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 a purchasing decision.

What is Contract Management? The process of effectively managing the entire life cycle of your contracts to ensure business objectives are met and all parties are in compliance Contract Strategy Authoring & Negotiation Execution & Compliance Contract Administration Contract Performance

Today’s Reality… Fragmented, non-standard, laborintensive contract processes Non-transparent contract negotiation and finalization process Poor contract visibility and compliance

Procurement Contracts Opportunity “Automating purchasing contracts delivers significant ROI… Companies are implementing targeted projects in two to three months that deliver a 150% to 200% payback within a year. ” -- The AMR Research Report, Compelling ROI of Contract Management, February, 2003

Oracle’s Solution

Contract Terms Library Establish Organization-Wide Standards Contract Terms Library Legal Procurement Organizations Implement • Standard Clauses • Best Practices • Legal Requirements • Contract Templates • Regulatory Policies Government Regulations • Contract Policy Rules Enforce • Adopt as-is • Localize Business Units

Complete Lifecycle Management Beyond Contract Authoring $$ Payments Administer & Monitor Invoices Execute & Comply Review Performance Standard Contract Terms Library PO’s Goods & Services Suppliers Establish Policies ü Single Procurement Platform Author & Negotiate RFQ’s Bids ü Rapid Implementation ü Rapid ROI

How do you achieve rapid ROI? Standardize Contract Processes Streamline Authoring and Negotiation Improve Contract Compliance

Pre-Approved Contract Clauses Standardize language, minimize risk Ÿ Rich text formatting capabilities Ÿ Support for managing global and country specific standards Ÿ Revision control and approval management

Contract Templates Simplify authoring, improve productivity Standard Purchase Agreement for Electronic Parts Payment Terms Fees & Taxes Non-payment Penalties Shipping International Shipping Damages & Recovery Limitation of Liability. . . Template Standard formatted terms and conditions Section Topical grouping of terms and conditions Clauses Legal terms and conditions text • Capture best practices as contract templates • Leverage best practices during contract authoring • Revision control and approval management

How do you achieve rapid ROI? Standardize Contract Processes Streamline Authoring and Negotiation Improve Contract Compliance

Embedded in Sourcing Process Eliminate ambiguity, shorten cycle time Ÿ Negotiate prices based on clearly documented T’s and C’s Ÿ Check for errors and verify deviations from standard Ÿ Streamline internal approval through workflow

Contract Print and Communication Professional and consistent, no re-keying Ÿ Automatic substitution of negotiated terms in printed document Ÿ Tailor to company standard formats – logo, headers, layout Ÿ Signature block for contract binding

Contract Binding Contract signing woven into PO process Ÿ Review contract details and sign contracts and amendments online through i. Supplier Portal

Formal Contract Change Management Workflow driven approval, full audit trail Ÿ Keep track of changes to terms and critical support documents Ÿ Review and compare changes between revisions online Ÿ Support in Oracle Sourcing and Oracle Purchasing

How do you achieve rapid ROI? Standardize Contract Processes Streamline Authoring and Negotiation Improve Contract Compliance

Improved Contract Visibility Contract Admin Legal Negotiate & Author Scanned Contract Images Documents Purchasing Supplier Activate Manage/ Execute Global Contract Repository Close-Out Renew • Attach signed images, contracts and other supporting documents • Track documents for each contract version or amendment • Provide global, secure access to contract documents across the enterprise

Contract Deliverables and Compliance Define, negotiate and monitor deliverables Example Deliverables • • Monthly milestone progress reports Provide a Prototype within 3 months of contract signing Perform site visit and inspection Provide proof of compliance to industry standards Define Deliverable Send Notification • Based on contract T&Cs • Notify individuals or groups • User definable • Notify trading partners • Clear ownership • One-time and recurring • Internal or External Manage Deliverable Escalate when Necessary • Track progress • Define criteria • Indicate completion or failure • Escalate to supervisor • Attach supporting documents • View status change history

Real-Time Compliance Status Are both parties meeting expectations? Ÿ Deliverable status at a glance Ÿ Compliance tracking during negotiation and after award