Indirect Procurement

R12.
x Procurement
New Features for your Indirect Materials
March 20th, 2012
Fujitsu America, Inc.
Mike George
Director, Consulting Oracle Practice
INTERNAL USE ONLY
Agenda
Introduction
New Indirect Procurement Features & Benefits
AME Case Study
Catalog Administrator Case Study
Q & A
INTERNAL USE ONLY
Fujitsu / Oracle Relationship

Oracle Diamond Partner
32+ Specializations Most of any partner
1 of few global end-to-end solution providers
Systems Integration
Middleware
Hardware
Global Reseller Agreement
20+ years strong and strategic relationship with Oracle

Supporting Quote: Oracles partnership with Fujitsu has never been
stronger, said Larry Ellison, CEO, Oracle Corporation. We are entering a
new phase with Fujitsu, aligning our engineering and worldwide distribution
efforts with a focus on high-performance, highly-reliable systems.
February 9, 2011.
Original member of Fusion Inner Circle

Part of Oracle Fusion Apps Partner Ramp Up Program
INTERNAL USE ONLY
Copyright 2012 Fujitsu America, Inc. All rights reserved.
PO Price Maintenance for Direct

Materials
R12.x Procurement
Select Productivity Features
INTERNAL USE ONLY
Professional Buyers Work Center

Feature Description
Requisitions
Orders
Manage Procurement Contract Deliverables
Negotiations
Create and Manage Global Agreements
Deliverables
Create and Manage Purchase Orders
Agreements
View and Process Requisitions into Orders or Sourcing Events
Access Oracle Sourcing
Suppliers
INTERNAL USE ONLY
Create and Manage Supply Base

5
Multi-Org Access Control (MOAC)

Feature Description
OLD PROCESS
Application
Responsibility A
Application
Responsibility B
Operating unit X
Operating unit Y
Application
Responsibility C
Operating unit Z
NEW PROCESS
Application
Responsibility A
Operating unit Y
Operating unit X
INTERNAL USE ONLY
Operating unit Z
Document Printing Enhancements

Feature Description
XSL-FO
Purchasing
Layout
XML Publisher
PO Output
New in
Release 12.x
Purchasing
XML
11.5.10
New in
Release 12.x
XSL-FO
Purchasing
Layout
XML Publisher
PO Output
in Multiple Formats
Purchasing
XML
INTERNAL USE ONLY
Release 12
Emailing To Supplier Attachments

Feature Description
11i10 and
Before
Attachment Type
R12.x
Notes to Supplier
Long/Short Text
Files (e.g. MS Word, Drawings)
URLs
INTERNAL USE ONLY
Support for Purchasing Contractors

Feature Description
Allow Contingent Workers to Participate in Purchasing

Activities
Raise and Approve Requisitions
Create, Maintain, and Approve Purchase Orders
Receive Goods and Services
New Profile Option

HR: Expand Role of Contingent Worker
Profile Value
Description
Yes
Allow Contingent Workers to Create and Approve

Purchasing Documents
No
Do Not Allow Contingent Workers to Create and Approve

Purchasing Documents
INTERNAL USE ONLY
Requestor-led Purchasing
Feature Description iProcurement Change Tolerance
Requestor AutoApproval Tolerance for
Requisitions
Buyer AutoAcceptance
Tolerances for POs
created from
Requisitions
INTERNAL USE ONLY
10
Auto-Approval Tolerances for Change Orders

Feature Description
Eliminates need for

Workflow
Customizations
Set tolerances by
document type
New tolerance
attributes introduced
INTERNAL USE ONLY
11
iProcurement Change Requests
INTERNAL USE ONLY
Requesters and Suppliers changes are routed to the requesters

approval hierarchy
PO changes are routed to the buyer for approval
Bypass approval for changes within tolerances
12
Whats New in AME Approvals?

Parallel Approvals
Support for Viewers

Allows flexibility in keeping a person/role informed of business

purchases and decisions, without requiring a response
Position Hierarchy Support

Several approvers can be simultaneously notified for a given

requisition, thus speeding up the requisition approval process
Allows customers to define approval routing structures that

remain stable even if individual employees leave their
organization or transfer within it
Graphical Approval Path UI Display

Provides preparers and approvers a simple and intuitive

graphical view of the approval chain and requisition status for a
given requisition
INTERNAL USE ONLY
13
Graphical Approval List and History
Configurable Rule-Based Approvals (e.g. Projects, Categories, Cost Centers, etc.)

Parallel Approvals
FYI Notifications
Know where your request stands in the approval process
Know how long your request has been in the approval process
INTERNAL USE ONLY
14
PO Mass Document Close Process
Purchasing
Mass Close of Purchasing Documents provides the ability to mass close

purchase orders using a variety of criteria and streamline the maintenance
process
INTERNAL USE ONLY
15
PO Mass Document Update Process
Purchasing
Mass Update of Purchasing Documents provides the ability to mass

update buyer, approver, and deliver-to person information in Purchase
Orders (and) preparer, requester, and approver on Requisitions to
streamline organizational changes.
INTERNAL USE ONLY
16
iProcurement Catalog Management

Sourcing
Sourcing
Professional
PBWC
Buyer
PO
Award
iP Admin
Catalog
Admin
Bulkload /
Online
author
Buyer
Catalog
iP
External
Supplier Sites
Approve
iSP
Supplier
Requester
Definitions:
Buyer - Purchasing user
Supplier - Supplies goods or services to the buying organization
Catalog Administrator - Performs catalog related activities within the buying
organization
INTERNAL USE ONLY
17
iProcurement Catalog Benefits

Catalog Management Enhancements:
Buyers can delegate catalog management to
suppliers and catalog administrators
Create/update content online
Bulk-load content with improved error review capability
Summary of all changes prior to submission

Disposition at the line level provides control over
price changes and item availability
Approval, archive and version control
Benefits
INTERNAL USE ONLY
Reduce the buying organization overhead in catalog management

Streamline catalog creation and management
Real-time availability for requesters after approval
18
Case Study
The J.M. Smucker Company

AME Case Study
Company History
Significant growth through acquisitions
Employee empowered workforce both business and IT
One of Oracles largest customers in the CPG industry
INTERNAL USE ONLY
19
Requisition Approval Challenges

Support initial organizational rules
Capital Project approvers
Hazardous Material approvers
Streamline approval maintenance for 1500+

Plant / Organization transfers
Job Title challenges
Alignment to Approval Policy

Alignment with Human Resources
Audit Compliance Considerations
INTERNAL USE ONLY
20
Future Process Flow
INTERNAL USE ONLY
21
Existing Plant-Level Approvals

Big Thing Main Problem (Maintenance)
Simplified Amounts ~ Defined by corporate

Simplified People ~ Plant controller dictates authorization levels
Simplified Concept ~ People-based approvals, not Job/Position-based
INTERNAL USE ONLY
22
Future Plant-Level Approvals
Custom Form / Table to store spreadsheet data

Same simplified spreadsheet concept with flexibility for both people and
amounts
Continued centralized data maintenance at corporate
INTERNAL USE ONLY
23
People-Based AME Solution
Standard AME processes and forms used

Dynamic Approval Group calls custom code
While the custom code is not supported, the method used to call it is (similar to a
workflow modification)
Employee / Supervisor list built based on Requester

Looks to custom form / table to determine when a supervisor is found with
appropriate authority ignores Job & Positions that constantly change
INTERNAL USE ONLY
24
AME Success Story Smuckers

Description of Initiative:
Implement Oracle AME to define approval rules for

requisitions
Business Drivers:

Defines approval rules for requisitions by tying

approvals to employee name
Meets audit compliant needs
Aligns to Finance approval policy
Eases approval maintenance burden for 1500+
requisitioners
Supports specific organizational rules, such as
Capital Projects & Hazardous Materials
Post Implementation Evaluation:
Quality: 5
Benefits/Value: 5
Partnership: 5
Oracle AME allows our Business Systems group to easily
maintain the approvals tied to requisitioners across the
organization by no longer being dependent on the job title,
but the control of the employee name. It provides the
necessary audit control/reporting as well as additional
approval features to support Capital and Hazardous
material.
- Kristen Birkbeck
Planned:
Actual:
Ties requisition approvals to employee name

Reduce time by Business Systems to manage &
maintain approvals
Provide reporting that is easy to use &
understood by multiple groups
Support ability to route requisition based on
Requestor rather than Preparer
Coordinated & successful testing with integration
partners
iProcurement users trained by 2/21 AME go-live
INTERNAL USE ONLY
25
Alignment of requisition approvals to employee name

Approvals align based on the Finance-approved approval
matrices
Greatly reduced time of maintaining approvals for
Business Systems team
Integration with Capital Projects: Capital Project Lead has
visibility & approval over all projects tied to them
Continues to use the employee-to-supervisor hierarchy
AME supports both Domestic & Canada approvals
All expectations of project delivered & met by go-live
date
Participants: Deb Janda, Linda Kreiger, Craig Wheeler,
Kristen Birkbeck, Milind Pai, Mike Sterle
Case Study
Toyota Boshoku America

Catalog Administrator Case Study
Company History
Pioneer of Just-in-Time Manufacturing
Historical use of custom systems due to complexity
Decisions based on long-term philosophy even at the expense of short-term goals
INTERNAL USE ONLY
26
Efficient Business Model for PO

Corporate Sourcing
Planner / Buyer
Suppliers
Contract Pricing
Contract Pricing is Established (Strategic)

Specific Supplier / Item combinations
Specific date-range applicability
Planner / Buyers release from their workbench (Tactical)

Review MRP / ASCP suggestions
Select items and quantities to process
Supplier receive and fulfill orders (Tactical)

Purchase Orders automatically generated without additional intervention / manual
processing
Purchase Orders automatically transmitted to Suppliers
INTERNAL USE ONLY
27
Procurement Automation
Step 1
Create
Requisition
INTERNAL USE ONLY
Step 2
Automatic
Document
Sourcing
Step 3
Requisition
Approval
Workflow
28
Step 4
PO Create
Documents
Workflow
Step 5
PO
Approval
Workflow
Step 1:
Create Requisition
Step 1
Create
Requisition
Step 2
Automatic Doc
Sourcing
Step 3
Requisition
Approval
Step 4
PO Create Doc
Workflow
Step 5
PO Approval
Workflow
Activity
Select Item
Select Quantity
Select Need-By Date
Select Delivery Information
Sources
Manual Creation
Requisition Interface
INTERNAL USE ONLY
29
Step 2:
Automatic Document Sourcing
Step 1
Create
Requisition
Step 2
Automatic Doc
Sourcing
Step 3
Requisition
Approval
Step 4
PO Create Doc
Workflow
Step 5
PO Approval
Workflow
Activity
Select Suggested Supplier (based on Source Rules)
Select Source Document and Price (based on Approved Supplier List)
Sources
Real-time via the Forms (automated behind the scene)
Automated programmatically via the Requisition Interface
Key Points
Source Document must be Valid (Current and Approved)
No Source Document = Static Price from Item Master (not Supplier-
specific)
INTERNAL USE ONLY
30
Step 3:
Requisition Approval Workflow
Step 1
Create
Requisition
Step 2
Automatic Doc
Sourcing
Step 3
Requisition
Approval
Step 4
PO Create Doc
Workflow
Step 5
PO Approval
Workflow
Activity
Approving the request
Launches the PO Create Documents workflow (automatically creates a
PO from the PR)
Sources
Manual Submission
Automated via Requisition Interface Submission
INTERNAL USE ONLY
31
Step 4:
PO Create Documents Workflow
Step 1
Create
Requisition
Step 2
Automatic Doc
Sourcing
Step 3
Requisition
Approval
Step 4
PO Create Doc
Workflow
Step 5
PO Approval
Workflow
Activity
Verify Requisition Line has a Valid Supplier
Verify Requisition Line has a Valid Source Document
Sources
Automated Workflow Processing
Key Point for Continuing

Source Document must be Valid (Current and Approved) repeat
validation of Step 2
No Source Document = Manual Buyer Intervention for processing
(No Price Breaks, Retroactive Pricing, I/C TRX, Tracking Commits)
INTERNAL USE ONLY
32
Step 5:
PO Approval Workflow
Step 1
Create
Requisition
Step 2
Automatic Doc
Sourcing
Step 3
Requisition
Approval
Step 4
PO Create Doc
Workflow
Step 5
PO Approval
Workflow
Activity
Approve the Purchase Order
Transmit the Purchase Order
Sources
Automated Workflow Processing
Key Point
Buyer must have authority to approve the order
Transmission method follows the default setup for the supplier
INTERNAL USE ONLY
33
Successful Processing
Buyers spend their time on meeting Strategic Goals
opposed to tactical processing and error handling
INTERNAL USE ONLY
34
Unsuccessful Processing
The whole design becomes a dud
INTERNAL USE ONLY
35
High-level Design
AP
Invoicing
Releases
every
42 minutes
Custom
Planning System
Schedules,
Orders
Oracle EBS
Procurement
EBS system of record

Contractual Agreements and Pricing
Supplier/Item Sourcing
Planned releases become requisitions

What, when, how many
Supplier
Immediate order transmission

INTERNAL USE ONLY
36
Requisition to PO Design (Original)
INTERNAL USE ONLY
37
Requisition to PO Design (Revised)
INTERNAL USE ONLY
38
Root Cause Analysis:

Invalid Source Document
INTERNAL USE ONLY
39
Challenge:
Release at Last Approved Price
Maintenance
Not dependent upon special timing of updates
Ability to make multiple changes, save, and rework at a later point in time (whether it took 1
minute or 1 week)
Changing one line should not impact the entire
Agreement
Approvals
Provide the ability for the Purchasing Manager
to review changes prior to implementing
INTERNAL USE ONLY
40
Catalog (Agreement) Management

Sourcing
Sourcing
Professional
PBWC
Buyer
PO
Award
iP Admin
Catalog
Admin
Bulkload /
Online
author
Buyer
Catalog
iP
External
Supplier Sites
Approve
iSP
Supplier
Requester
Definitions:
Buyer - Purchasing user
Supplier - Supplies goods or services to the buying organization
Catalog Administrator - Performs catalog related activities within the buying organization
INTERNAL USE ONLY
41
Catalog Management Benefits

Improve Catalog Management
Reduce the buying organization overhead in catalog management
Buyers can delegate catalog management to suppliers and
catalog administrators
Online catalog authoring for quicker catalog update
Difference Summary to highlight the changes
Version control of catalog data
Streamline catalog creation and management

Catalog perpetually up-to-date and based on real-time data
Changes to catalog content and content security definitions
occur in real-time. No extractor type concurrent program are
required to enable catalog content or security modifications.
INTERNAL USE ONLY
42
Maintenance Solution:
Introducing Draft Tables
How it Works
Base Tables
PO #
Supplier
Line #
Item #
Qty
Price
1000
Fujitsu
f60000
$130.00
1000
Fujitsu
f61000
$60.00
1000
Fujitsu
f70000
$949.00
1000
Fujitsu
f71000
$358.00
Draft Tables with Changes

PO #
Supplier
Line #
Item #
Qty
Price
1000
Fujitsu
f71000
$357.00
Accept
Stores all requested changes and tracks status of acceptance

Interim changes not applied to Base Tables until accepted
(No more GBPAs in Requires Re-Approval status)
INTERNAL USE ONLY
43
Using the Draft Tables:

Catalog Administrator
INTERNAL USE ONLY
44
Approval Solution:
Change Acceptance Options
Is Review Required (prior to Workflow Approval)?
Yes (Always)
No (Never)
Sometimes (When Price Changes Exceed Tolerance)
INTERNAL USE ONLY
45
Differences Summary
Workflow Notifications
Changes easily identified
Standard Accept / Reject options
INTERNAL USE ONLY
46
PO Difference Summary
Notification Workflow
AutoApproval
Tolerances
INTERNAL USE ONLY
47
Approval Solution 1:
(No Supervisor Required)
INTERNAL USE ONLY
48
Approval Solution 2:
(Supervisor Required)
INTERNAL USE ONLY
49
Old to New
Buyers Workbench
vs.
Catalog Administrator
INTERNAL USE ONLY
50
Other Considerations and Results

Other Considerations
Catalog Administrator versus Buyers Workbench enforcing usage
Still need ability to create New (Incomplete) documents
Restrict ability to update Existing documents (or In Process occurs)
Manual or Systematic Control with personalizations
Change Order Approval Process

Approval Limits
Approval Tolerances for Agreements (new R12 form)
Supervisor Approval Requirements and Workflow
Results
Manual re-work queue drastically reduced Saving Time
Orders now processed at correct (last approved) price and
communicated directly from Oracle via iSupplier / EDI
The larger benefit of ERP system acceptance Oracle works!
INTERNAL USE ONLY
51
Case Study
More Information
INTERNAL USE ONLY
52
General Information
My Oracle Support / Metalink
PO Information Center (Note 1327702.1)
Hot Topics & Diagnostics
Documentation & TOI / RCDs
My Oracle Support Community for Procurement

News & Announcements
Discussion Forums
Procurement Webcasts
Community Documents
Oracle Diamond Partner Fujitsu America

Scott Jackson, Sr. Client Executive local to Northern Ohio
Cell:
(330) 554-9317
Email:
Scott.Jackson@us.fujitsu.com
Working with Fujitsu & Oracle clients for more than 10 years
INTERNAL USE ONLY
53
Questions & Answer
INTERNAL USE ONLY
54

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R12.

INTERNAL USE ONLY

Fujitsu / Oracle Relationship

20+ years strong and strategic relationship with Oracle

Original member of Fusion Inner Circle

Copyright 2012 Fujitsu America, Inc. All rights reserved.

PO Price Maintenance for Direct

INTERNAL USE ONLY

Professional Buyers Work Center

Manage Procurement Contract Deliverables

Create and Manage Global Agreements

Create and Manage Purchase Orders

View and Process Requisitions into Orders or Sourcing Events

Access Oracle Sourcing

INTERNAL USE ONLY

Create and Manage Supply Base

Copyright 2012 Fujitsu America, Inc. All rights reserved.

Multi-Org Access Control (MOAC)

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

Document Printing Enhancements

INTERNAL USE ONLY

Emailing To Supplier Attachments

Files (e.g. MS Word, Drawings)

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

Support for Purchasing Contractors

Allow Contingent Workers to Participate in Purchasing

New Profile Option

Allow Contingent Workers to Create and Approve

Do Not Allow Contingent Workers to Create and Approve

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

Auto-Approval Tolerances for Change Orders

Eliminates need for

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

iProcurement Change Requests

INTERNAL USE ONLY

Requesters and Suppliers changes are routed to the requesters

Copyright 2012 Fujitsu America, Inc. All rights reserved.

Whats New in AME Approvals?

Support for Viewers

Allows flexibility in keeping a person/role informed of business

Position Hierarchy Support

Several approvers can be simultaneously notified for a given

Allows customers to define approval routing structures that

Graphical Approval Path UI Display

Provides preparers and approvers a simple and intuitive

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

Graphical Approval List and History

Configurable Rule-Based Approvals (e.g. Projects, Categories, Cost Centers, etc.)

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

PO Mass Document Close Process

Mass Close of Purchasing Documents provides the ability to mass close

INTERNAL USE ONLY

Copyright 2012 Fujitsu America, Inc. All rights reserved.

PO Mass Document Update Process

Mass Update of Purchasing Documents provides the ability to mass

INTERNAL USE ONLY