Internet Procurement Oracle i Procurement Centralize Purchasing Control

Internet Procurement

Oracle i. Procurement – Centralize Purchasing Control, Decentralize Execution Procurement policy based self-service enablement Support requests for all goods and services Productive user interface for self-service audience Self-service receiving for improved payment accuracy

Manage the Spend, not the Transactions… …But, do buyers have the time? Requesters G&A Buyers Create POs Maintenance Manufacturing R&D Document Approvals Communicate Suppliers

Automate Transactions…Flag Exceptions Implement Controls Manage Supply Base Analyze Spend Requesters Suppliers G&A Corporate Policy Maintenance Role-Based Security Financial Controls Approval Workflow Manufacturing R&D

Define rules for corporate policy based automation Flexible workflows to configure your rules Approvals Ÿ Rules-based approval list Ÿ Cost-center, location, commodity controls Ÿ Flexible approval hierarchies Ÿ Approve via email or online Automatic PO creation Ÿ Contract buys vs. one-off Ÿ Approved supplier usage Ÿ Standard vs. non-standard items Ÿ Emergency POs Ÿ Automatic approval and communication Charge Accounts & Budgets Ÿ Person, CC, location, item commodity controls Ÿ Project tracking and reporting Ÿ Full budgetary control using encumbrance accounting Approved Suppliers and Items Ÿ Identify approved suppliers for items / commodities Ÿ Establish approved item/pricing contracts and represent as catalogs Ÿ Control requester access to authorized catalogs

Oracle i. Procurement – Centralize Purchasing Control, Decentralize Execution Procurement policy based self-service enablement Support requests for all goods and services Productive user interface for self-service audience Self-service receiving for improved payment accuracy

Content Management Models Multiple options to support different item types Catalog Content Management Local Catalogs Remote: Supplier Hosted Remote: Catalog Hubs Direct Material and Mission Critical MRO Demand driven by MRP Inventory level tracked Items under lot/serial/revision control Items under existing long term agreements Indirect and Non-Critical MRO Dynamic pricing & availability Configurable items Large selection of items Inventory not tracked in buying org. Indirect and Non-Critical MRO Static item and pricing information Approval controls for price changes Inventory not tracked in buying org.

Supplier Hosted Catalogs Users punchout to catalogs maintained on supplier websites i. Procurement Firewall Ÿ Access company specific catalogs on supplier website Ÿ Item configuration rules for CTO items Ÿ Real time pricing and availability Information Ÿ Support Oracle XML and c. XML formats for punchout Catalog content on supplier’s website

Catalogs Hosted on Catalog Content Hubs http: //www. exchange. oracle. com/ Catalog Content Hub i. Procurement Firewall Ÿ Immediate access to wide variety of catalogs Ÿ Suppliers author catalogs on content hub Ÿ You approve changes to items and pricing Ÿ Control requesters’ access to available catalogs

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

Order Items from Suppliers or Internal Warehouses Ÿ Purchase requisitions – – Local or remote catalogs Non-catalog requests for nonstandard goods Ÿ Internal requisitions – – – Internal catalogs for standard items Source based on availability Inter- or intra-company requests with cross-company accounting

Simple and Advanced search for items in Catalog Ÿ New self-guiding search offers targeted results for self-service users Ÿ Advanced search for attribute specific criteria Ÿ Control catalog access to users based on usage

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

Contractor requests for Temporary Assignments Ÿ Contractor requests for administrative and professional needs Ÿ Requests based on controlled access to approved suppliers and contracted rates Ÿ Review candidates submitted by suppliers Ÿ Finalize candidate and terms, flexible approvals for budget and candidate selection Ÿ Fast-track process for simple requests

Maintenance Requests for Assets Rule Based Engine Maintenance Schedule Ÿ Define maintenance schedules for assets Request Ÿ Create requisitions for work orders from maintenance workbench, search MRO catalogs for required items Ÿ Track progress against work orders Order Assets Ship To Maintenance Location Supplier Ÿ Receive and deliver items directly to maintenance location

Financial Considerations for all Business Environments Flexible cost allocation Ÿ Automatic account defaults based on business rules Ÿ Security-based override capabilities Ÿ Distribute charges across multiple accounts/cost-centers Ÿ Allocate charges to expense or material accounts based on usage Budgets & Encumbrance Accounting Ÿ Control spending using budgets and encumbrance accounting Ÿ Track spending limits and spend-todate Ÿ Real-time validation of funds during request creation Ÿ Approvals based on budget ownership Project-based requests Ÿ Request goods and services for specific projects Ÿ Allocate costs to multiple project accounts and budgets Ÿ Track and report against projects Requests charged to specific Grants Ÿ Capture grant award information on individual requests Ÿ Allocate costs across multiple grants Ÿ Default grants information onto request lines to minimize data entry

Oracle i. Procurement – Centralize Purchasing Control, Decentralize Execution Procurement policy based self-service enablement Support requests for all goods and services Productive user interface for self-service audience Self-service receiving for improved payment accuracy

Productive User Interface for Self-service Audience Ÿ Easy-to-use interface – – Familiar “amazon. com-like” interface Create and submit requisitions in just a few clicks Ÿ Productivity enhancement tools to minimize data entry – – – Shopping lists (Favorite and Public) Saved shopping carts Copy requisitions

Simplify catalog searching using Transparent Punchout Eliminate guesswork from catalog searching Local Catalogs Transparent Punchout* Requester User sees all search results, irrespective of catalog source, on this familiar page *Patent Pending Supplier A Website Exchange. Oracle. com

Full visibility into entire Procurement lifecycle -service access frees up buyers’ time Self Ÿ View approval status and history Ÿ Related POs and associated status Ÿ Real-time tracking of intransit shipments Ÿ View Receipt history and associated exceptions Ÿ Invoice and payment information

Rules-based Online Approvals Eliminate paper approvals, improve auditability Ÿ Centralized approval engine services approval needs across apps. Ÿ Automatic approval routing based on business rules Ÿ Approvers can approve via email or from work list Ÿ Nominate proxy approvers when on vacation Ÿ Full approval trail with relevant comments captured for audit needs

Oracle i. Procurement – Centralize Purchasing Control, Decentralize Execution Procurement policy based self-service enablement Support requests for all goods and services Productive user interface for self-service audience Self-service receiving for improved payment accuracy

Self-service receiving of goods and services Increased payment control with 3 -way matching Ÿ Requester initiated receipts using selfservice screens – Single-click simplicity – Record packing slip, waybill information – Track in-transit shipments and receive against them – Automatic invoicing based on receipt Ÿ System initiated receipts using workflow – Automatic notification on due date – Requester acknowledges receipt via response – Automatic receipt generation based on response

Record receipt exceptions, reconcile payments accurately using 3 -way match Return to Vendor Ÿ Self-service screens to return defective goods to supplier Ÿ Reference RMA code Ÿ Real-time updates to on-hand quantities Ÿ Automatically generate debit memos for reimbursement Ÿ Full receipt history audit trail to resolve discrepancies Receipt Corrections Ÿ Correct data entry errors by issuing corrections Ÿ Factor corrections into receipt audit trail for accurate reporting Receive Return Correct

Summary

Oracle i. Procurement – Centralize Purchasing Control, Decentralize Execution Procurement policy based self-service enablement Buyers manage the spend, not individual transactions Support requests for all goods and services Single entry point for requests, single business rules repository Productive user interface for self-service audience Quicker customer adoption, smoother rollouts Self-service receiving for improved payment accuracy Increased control with 3 -way match

Oracle Sourcing Maximize Savings and Sourcing Bandwidth Information Age Applications

Oracle Sourcing

Oracle Advanced Procurement The Integrated Suite that Dramatically Cuts All Supply Management Costs Demand Collection Reduce Spend on Goods and Services Spend Analysis Category Management Online Sourcing Indirect Goods Orders Streamline Procurement Processes Services Approval Routing Engineered Goods Touchless Buying Supplier Portal Logistics Automated Payment Supplier Network Budget-Based Procurement Contract Management Direct Materials Supplier Collaboration Supplier Performance Enforce Policy Compliance Settlement Profile Management

Oracle Sourcing Identify Opportunities & Suppliers Define Strategies & Negotiations Conduct On-Line Negotiations Analyze & Award Approve & Issue Make Savings Stick Source More of Your Spend Structured Event Support Change Management Automated Negotiations, Bid Mgmt and Award Source for Lowest Total Cost Cross-Functional Collaboration Create Immediate and Long-Term Savings Rapid Deployment Knowledge Capture / Re-use Total Cost Analysis Enterprise Integration Real Time Decision Support Integration Contract Mgmt Purchasing Finance Marketing Operations Other

Oracle Sourcing Overview Demand Blanket Agreements Collaborative Sourcing Process • RFI / Survey Suppliers Spreadsheets (1000 lines+) Purchase Orders Blanket Agreements • RFQ Requisitions Outcome Update Catalog • Auction Global Agreements Sourcing Templates Purchasing Data Contracts Signed Contract

Oracle Sourcing Enables You To… Œ Source More of Your Spend Source for Lowest Total Cost Create Immediate and Long-Term Savings

Percentage of Spend Under Contract Exploit More Savings Opportunities Oracle Enabled Sourcing Automated Bid Comparison System Generated Awards Efficient Change Management On-Line Negotiation Support Structured Event Creation Traditional Sourcing Approach Sourcing Resources

Structured Sourcing Event Creation Greatly Reduce Preparation Time and Manual Effort Expiring Agreement 1 -Click Renegotiation RFx, Auction Renewal Driven Instantly create new sourcing event from previous agreements Requisitions Sourcing Template RFx, Auction Request Driven Aggregate requests across the enterprise to leverage buying power

Efficient Online Negotiations: Buyer Slash Cycle Time by Eliminating Manual Processes Drill into individual sourcing events View responses and monitor bidding activity in real-time View new incoming supplier messages and incomplete tasks

Efficient Online Negotiations: Supplier Slash Cycle Time by Improving Communications Suppliers review contract terms early in the sourcing cycle Suppliers can review all requirements before bid submission

Efficiently Manage Change Quickly Create New Round or Amendment Buyer Supplier RFQ 1234 Publish Changes RFQ 1234 -1 New Round or Amendment Acknowledge Changes • Create and Publish New Rounds or Amendments Online • Full Audit Trail Including Net Change Comparison • If Suppliers Accept, Their Quotes Roll Forward

System Generated Recommendations Eliminate Time-Consuming Manual Analysis Company Policy • Sourcing Rules • Budget Constraints • Supply Base Rules Minimum 60% to incumbent supplier $100 k Annual Maximum of 5 Vendors Complex Bids • Multiple Sites • Dozens of Bid Lines Award Optimization Engine Model multiple business constraints and supplier inputs Optimized, Policy. Compliant Award Recommendation Multiple Suppliers

Facilitated Online Bid Comparison Make Faster Award Decisions • Utilize structured bid data - Automatic bid scoring - Consistent format for sideby-side comparison of competing bids • Provide online analysis for fast, accurate awards - Multiple chart and graph formats (e. g. , scatter plot, bar, pie) - Flexible award methods enable selection of suppliers, bid lots or specific line items - Business and regulatory compliance policies (e. g. , multi-sourcing requirements, minority • View award summary for purchase recommendation, approval, and compliance details

Oracle Sourcing Enables You To… Œ Source More of Your Spend Source for Lowest Total Cost Create Immediate and Long-Term Savings

Cross-Functional Collaboration Combine Expertise for Higher Quality at Lower Price Commodity Manager Requestor (eg. , Mfg, HR) Suppliers • Domain • Project Manager knowledge Supplier performance • Define requirements • Implementation planning • Best payment terms Finance / Legal • Market knowledge Sourcing Manager • Corporate policy and procedure • Constraints • Costs estimates • Best delivery terms • Handling instructions • Latest BOM, specs and drawings Design Contract Manager Logistics

Sourcing Knowledge Capture Drive Optimal Results by Re-Using Best Practices Bidding Rules Supplier Lists Sourcing Policy Rules Sourcing Templates New Sourcing Event Pricing Factors Scoring Methods Negotiation Event Style Knowledge from Past Sourcing Events • Leverage Proven Practices • Replicate Buyer Expertise • Retain Knowledge across the Organization

Example: Template-Based Scoring Criteria Exclude from supplier shortlist Weighted scoring • Header • Line • Attribute group

Total Cost and Complete Bid Analysis Evaluate Tangible and Intangible Costs European Supplier $16 vs. $23* North American Supplier $21 vs. $21* Latin American Supplier $14 vs. $26* Example: Supplier “C” Bid $14 System Added Freight 6 Tariff Risk $ $4 $2 Transformed Bid = Asian Supplier $20 vs. $23* • Capture Total Cost - Tangible (e. g. , freight) - Intangible (e. g. , switching costs) - Buyer and Supplier Entered • Evaluate Transformed Bids - View Transformed or Un*Bid vs. Transformed Bid Transformed

Total Cost and Complete Bid Analysis Balance Price, Quality, Promise Date, etc. Display quote price and score based on all attributes Preferred quotes represent an optimal balance of price, quality, promise date, etc.

Oracle Sourcing Enables You To… Œ Source More of Your Spend Source for Lowest Total Cost Create Immediate and Long-Term Savings

Rapid Deployment Start Saving Immediately Simple RFx / Auctions Start with a few key activities Supplier Enablement Quickly enable suppliers to participate in sourcing events Complex RFx / Auctions Grow into advanced capabilities as needed Automate complete business process using integrated Advanced Procurement platform Off-the-Shelf Integration • Implementation in days or weeks -- not • months! Incrementally implement capabilities

Consistent Execution and Compliance Realize Sustainable Savings via Integration Sourcing Procurement Contracts • Transfer negotiated terms and pricing to execution • Drive contract compliance and track deliverables • Monitor contract utilization and supplier performance • Enable suppliers to openly compete for business • Seamlessly execute negotiated agreements • Leverage common source of master / reference data • … Purchasing i. Supplier Portal

Example: One-Click PO Creation Create Purchasing Documents Directly from Award Workflow Enablement Create Agreements/ POs Awarded Quotes Receive Goods or Services • Copy all pricing, contract • and deliverable information Eliminate manual entry and associated errors Pay Supplier

Example: Real-Time Deliverable Mgmt Easily Monitor Compliance Across the Review status of Enterprise deliverables Drill into details Link to source document Track notes and correspondence • Ensure supplier compliance and consistent evaluation - Sourcing deliverables - Contractual deliverables • Enable buyers to be proactive - e. g. , Contract milestones or expirations

Example: Contract Intelligence Evaluate Compliance and Identify Opportunities ŸExpose need for new or revised contract Consumption Trends Business Targets Quality Performance Contract Utilization ŸEvaluate supplier and contract performance before renewal ŸTrack KPIs including price

Seamless Data Flows Integrated Flows Procurement Data · Requisition to RFx/Auction Creation · Requisitions · POs · Contracts · Etc. · Requisition allocation upon award · Removal of requisition from requisition pool during negotiation · Return of requisition to requisition pool on cancellation/partial allocation · Negotiation number viewable in i. Procurement · Contract to RFx/Auction creation for renewals · Contract created from award · PO created from award · Sourcing accessed from single i. Supplier Portal · Supplier search of the Supplier Master and ASL Sourcing Data · RFIs · RFQs · Buyers Auctions · Templates · Attributes · Etc.

Shared Data Procurement · Operating Units Data · Requisitions · POs · Contracts · Etc. · Contract Variables · System and User· Buyers Defined · Buyer Approval · Supplier Responses Hierarchy · Contract Deliverables · UOM · Contractual & · Ship to Addresses Negotiation · Bill to Addresses · Contract Clauses · Currency · Contract Templates · Payment Terms · Attachment Repository · Suppliers · Purchasing Categories · Approved Supplier List · Supplier Classification · Inventory Items with · Supplier Commodities revision Sourcing Data · RFIs · RFQs · Buyers Auctions · Templates · Attributes · Etc.

Oracle Sourcing Easy sourcing event creation, management of on-line negotiations and bids, with automatic systemgenerated recommendations Source More of Your Spend Cross-functional collaboration, sourcing knowledge capture / re-use, and total cost analysis Source for Lowest Total Cost Rapid deployment capabilities with modular integration to Advanced Procurement, and real-time decision support including deliverable mgmt Create Immediate and Long-Term Savings

Information Age Applications