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R12 Procurement
AB Oracle P2P Consultant

Agenda
What is new in R12 Purchasing and iProcurement Introduction to Sourcing, Procurement Contracts, iSupplier Portal Q&A

iProcurement R12 enhancements

Enhanced catalog authoring Difference summary for catalog changes Unified catalog Approval, revision control and archive for catalog data Content security content zones Advanced approval support - OAM
Position hierarchy based approvals Parallel approvals Support for FYI notifications Graphical display of approval chain

Enhanced requester driven change order management Requester directed sourcing Multiple search result layouts updated paragraph or grid display

Procurement R12 enhancements

Professional Buyers Work Center Procurement for Complex Services Multi Org Access Control (MOAC) E Business Tax Document Publishing Enhancements Communicate document attachments to suppliers OSN rapid supplier enablement Maintain sourcing rules / ASL form agreement items Support for contractor purchasing users Compliance to packaging conditions Auto approval tolerances for change orders Model complex pricing for blanket line items Advanced approval support for requisitions New user interface for purchasing setups

Enhanced Catalog Agreement Management

Description Catalog Authoring Capability for Buyers, Suppliers and Catalog Administrators
Online Authoring and File Upload from Buyer Work Center, iSupplier and iProcurement Catalog Administration Responsibilities Industry standard formats for upload mode including OAG XML, cXML, CIF and text files, with improved error review process

Difference Summary for Catalog Changes

Display changes between the revised vision and the last approved version. Visual indication for added, changed and delete lines

Approval, Revision Control and Archive

Buyer can review difference summary during approval Buyers acceptance with line level disposition for all changes or only for those that exceed price tolerance. Purchasing Approval Hierarchy, Revision Control and Archival capabilities are added to catalog content

Real-time catalog update

Extractor will be obsoleted.

Enhanced Catalog Agreement Management

Overview Sourcing PBWC
Buyer Award Sourcing Professional

PO

iP Admin
Catalog Admin

Bulkload / Online author

Buyer Catalog

iP

External Supplier Sites

Approve

iSP
Supplier Definitions:
Buyer - Purchasing user Supplier - Supplies goods or services to the buying organization Catalog Administrator - Performs catalog related activities within the buying organization

Requester

Enhanced Catalog Agreement 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 realtime data

Content Security Enhancements

Description

Control What Catalog Content To Show

Catalog Administrators can partition local catalog content into Local Content Zones based on items Supplier, Supplier Site, Item Category and Browsing Category information.

Support for inclusion and exclusion rules. Ability to include Inventory items.
Once defined, Content Zones may be made accessible to users of specific Responsibilities or Operating Units. Content Zones may be assigned to multiple Stores. Stores may contain multiple Content Zones.

Content Security Enhancements

Partition Content

11.5.10
Catai Cata Catalog Realms

Release 12
Smart Forms Content Zone

Release 12 Content Zones Replace 11.5.10 Catalogs. All Content Zones Support Operating Unit or Responsibility Security.

iProcurement Content Security

Whats New?
Example: Local Content Inclusion Rule

Category A

Category B

Category C

Category

The rules: Include items from supplier X Include items from category C Correspond to the red block of available content.

Supplier
Supplier X

Supplier Y
....

iProcurement Content Security

Whats New?
Example: Local Content Exclusion and Inclusion Rules

The rules:

Supplier
Supplier X

Exclude Supplier X Include Category A Include Category C

Results in red blocks of available content. Exclusion is useful when we need to exclude a single Supplier (e.g., X) from many others (e.g., A-Z).

Supplier Y
.... Category A Category B Category C

Category

iProcurement Content Security

Whats New?
Lets Look at how category rules are defined:

Include specific categories

Include specific suppliers

Make content accessible to specific user groups

iProcurement Content Security

Whats New?

Example: Include Specific Categories (local content): Create Category Specific Stores (e.g., Legal Forms and Services) by creating one or more category specific Content Zones

Include content for some users (e.g., Buyers) that should not be available to the general public (e.g., Novice Requesters).

iProcurement Content Security

Whats New?
Lets Look at how supplier rules are defined:

Include specific categories

Include specific suppliers

Make content accessible to specific user groups

iProcurement Content Security

Whats New?

Example: Include Specific Suppliers (local content):

Include items on GBPA, BPA, Quotation, Requisition Templates from specific suppliers.

Segregate Inventory and Externally Sourced content into separate Stores by creating multiple Content Zones with different inclusion settings.

iProcurement Content Security

Whats New?
Once content rules have been completed, the Content Zone may be assigned to all, or some, users:

Include specific categories

Include specific suppliers

Make content accessible to specific user groups

iProcurement Content Security

Whats New?

Assign Content Zone to specific Responsibilities, Operating Units, or all Users.

Content Security Enhancements

Benefits

Increase Security
Inclusion and Exclusion rules provide more control over content. Responsibility and Operating Unit assignments enable specific user sets to access specific catalog content.

Improve Usability
Single feature-set replaces and enhances functionalities previously provided by Realms, System Profiles, Catalogs, and Extractor.

Requester Driven Change Order Mgmt

Change Order Approval and Routing Based on Tolerances
Requesters and Suppliers changes are routed to the requesters approval hierarchy PO changes are routed to to buyer for approval Bypass approval for changes within tolerances

Requester Driven Change Order Mgmt

Benefits

Enhanced Requester Driven Change Order Management

Streamlines the Change Order Process
Tolerances to indicate when a requester initiated change should be routed to the requester hierarchy for approval Tolerances and options to determine the need for buyers approval Auto-approval for minor changes

Flexible Tolerances
Simple user interface for managing tolerances instead of using workflow attributes Minimum/Maximum increment by amount or percentage Multiple attributes: document amount, unit price, line amount, need by date, promise date

Usability Enhancements
Search & Browse within Stores Paragraph and Grid Layouts
Grid Format allows requesters to differentiate between similar items effectively.

Item Details and Comparison Page Layout Enhanced Create and maintain multiple Favorites Lists. List of Values (LOVs) capability are enhanced.
Provides users with tools to find the values they are looking for easily and effectively Enhancements include: Sorting Capability Expanded Search Criteria

Usability Enhancements
Paragraph Search Skin
2 column layout ensures sufficient spacing with item image

Images may be hidden. When they are hidden, three columns of descriptors appear

Price, UOM and action buttons appear on last rows of each item description

Usability Enhancements
Paragraph Search Skin

3 columns format allows more information to be displayed

Usability Enhancements
Search Skins Grid Format

The grid format allows users to differentiate between similar items more effectively.

Usability Enhancements

Advanced Approvals Enhancements

Parallel Approvals Notifications are sent out to multiple people simultaneously to speed up the approval process Support for Viewers FYI notification, approval is not needed Position Hierarchy Support Graphical Approval Path UI Display

Advanced Approvals Enhancements

Example Approval List

Takes you to add approver/viewer, delete approvers

Parallel Approval

A requisition for furniture totaling $4,500 is created. The req will need to be approved by the position hierarchy chain and the Facilities Management Group.

Advanced Approvals Enhancements

Example Add Viewers

Option to add Viewers to the Approval List

Advanced Approvals Enhancements

Example Add Viewers

Viewer

Usability Enhancements
Benefits

Increase Flexibility
Users can specify their search results layout preference: Paragraph or Grid Users can maintain and manage multiple favorites lists Users have more options when searching using List of Values (LOVs)

Improve Ease of Use

Updated user interface provides requesters with more intuitive and userfriendly layout Allows users to identify desired information quickly

Usability Enhancements
Benefits

Speed up Approvals Process While Still Maintaining Oversight

Requisition can be routed to multiple approvers simultaneously

Increase Flexibility for Setting up Approval Routes

Voting Regime allows enterprises the flexibility in defining approval rules

Reduce Setup Efforts

Approval rules can be defined once and be leveraged across multiple products, requiring less maintenance work

Provide Intuitive Graphical View of Approval List

Graphical View for Approval List provides users with quick view of the approval list and status

Oracle Purchasing Delta Summary

Professional Buyers Work Center Enhanced Catalog Access Document Styles Multi-Org Access Control Document Publishing Enhancements Communicate Document Attachments to Suppliers Maintain Sourcing Rules/ASLs for Agreement Items Complex Services Procurement Support for Contract Purchasing Users Supplier Packaging Constraints E-Business Tax Model Complex Pricing for Blanket Line Items Mass Re-pricing of Purchasing Documents Auto-Approval Tolerances for Change Orders

Professional Buyers Work Center

Feature Description

Requisitions

View and Process Requisitions into Orders or Sourcing Events

Create and Manage Purchase Orders Create and Manage Blanket and Contract Purchase Agreements

Orders Agreements Deliverables

Manage Procurement Contract Deliverables

Access Oracle Sourcing Create and Manage Supply Base

Negotiations Suppliers

Professional Buyers Work Center

Customization and Extensibility Options
Customers can create custom views using personalization feature in all inquiry pages.

Professional Buyers Work Center Benefits

Increases Productivity
Central Place for Buyers to Perform Day-to-Day Tasks Optimized for Shared Service Centers Streamlined Interface Increases Efficiency Pre-Seeded or Custom Views for quicker access to information and prioritize tasks

Designed for Procurement Professionals, the PBWC Combines Ease-of-Use with Power Capabilities to Track, Manage and Control all Strategic and Tactical Activities.

Enhanced Catalog Access

Feature Description
iProcurement like Search Capabilities for Purchasing Users Add Catalog Items to Purchase Orders and Agreements Replace non-catalog requests with lines from the catalog

Document Styles
Feature Description
Assign Display Names to Document Types

Enable/Disable Features

Document Styles
Implementation Considerations
Document Styles is a new concept in Release 12. It is a configuration tool that reduces the complexity of the application by allowing procurement managers to control the available functionality and the display of PO documents. A document style is mandatory on a PO document. The style setting controls the document display on the HTML UI for document creation, update, and viewing of individual document, as well as the allowable values during the document creation and update. A style can only be applied at the start of document creation. It cannot be replaced with another style or removed from a document. Standard Style: This will be the only seeded style and will be used for upgrade of the documents created
prior to R12.

Non-standard style:

Any new styles created in R12 are considered non-standard. Purchasing documents with these styles can only be created and processed through the Work Center.

Multi-Org Access Control

Feature Description
OLD PROCESS Application Responsibility A Application Responsibility B Application Responsibility C

Operating unit X

Operating unit Y

Operating unit Z

NEW PROCESS Application Responsibility A

Operating unit X

Operating unit Y

Operating unit Z

Multi-Org Access Control

Implementation Considerations
New Profile Options Entire Purchasing functionality requires the Multi Org Access Control (MOAC) setups to be configured correctly. The following new profile options need to be set for MOAC

MO: Security Profile - the group of operating units that can be accessed in HTML Orders MO: Default Operating Unit - the default OU that should be used when creating new POs.
If customer is not leveraging MOAC, they can continue to use R11i profile option MO: Operating Unit. Select Human resources responsibility to create the security profile (Security -> Global Security Profile (Function PERWSSCP-GLOBAL)

Document Printing Enhancements

Feature Description
XSL-FO

Purchasing Layout

XML Publisher

PO Output

Purchasing XML

New in Release 12.0 11.5.10

New in Release 12.0

XSL-FO

Purchasing Layout

XML Publisher

PO Output in Multiple Formats Purchasing XML

Release 12

Communicate Document Attachments to Suppliers

Attachment Type
Notes to Supplier

11i10 and Before

r12

Long/Short Text

Files (e.g. MS Word, Drawings)

URLs

Maintain Sourcing Rules/ASLs for Agreement Items

New Concurrent Program Introduced

Designate agreement usage in Specific Regions or Plants Extend rule effectivity after renewing Blanket Agreements Maintain rules for all Operating Units enabled to buy off an Agreement

Support for Contractor Purchasing Users

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
Yes
No

Description
Allow Contingent Workers to Create and Approve Purchasing Documents

Do Not Allow Contingent Workers to Create and Approve Purchasing Documents

Compliance to Packaging Constraints

New Process
Inventory

1. Min-max creates Replenishment Request for 116 Eaches

Min-Max

2. Apply Constraints Order Modifier UOM Conversion Rounding New Quantity = 10 New UOM=Cases of 12

REQIMPORT

Purchasing

3. PO placed for 10 cases of 12

PURCHASE ORDER

4. PO complies to Supplier packaging constraints

SUPPLIERS

E-Business Tax Integration

Feature Description
Prior to E-Business Tax
Basic tax setup tax codes and tax groups Fragmented tax solution across E-Business Suite modules

With E-Business Tax

Comprehensive solution addressing complex tax requirements Single point tax solution across E-Business Suite

Multiple tax engines

Duplicate tax setup Fragmented data storage Duplicate 3rd party integration

Single interface: tax setup

and 3rd party integration Uniform services Single repository

Note: Please refer to the e Business Tax TOI for more information on this feature

Model Complex Pricing for Blanket Line Items

Pricing Transactions

Blanket

Agreement

Line Price Pricing Engine Price Break Custom API Price List

Requisitions

Leverage Oracle Advanced Pricing to model Complex Pricing Scenarios

Orders

Formula Modifiers Oracle Advanced Pricing

Benefits

Bring Agreements with Complex Pricing Requirements Online Accurate Pricing of Transactions without the need for Manual Overrides Decrease Supplier over billing Save Cost by ensuring all available discounts are applied

Mass Re-pricing of Purchasing Documents

Feature Description

Orders

Blanket Purchase Agreement Advanced Pricing

Revise Pricing Data

Price Lists, Modifiers Custom Pricing API

New in Release 12.0

Auto-Approval Tolerances for Change Orders

Eliminates need for Workflow Customizations Set tolerances by document type

New tolerance attributes introduced

Advanced Approvals Support for Requisitions Description

Parallel Approvals
Notifications are sent out to multiple people simultaneously to speed up the approval process

Position Hierarchy Support

Advanced Approvals Support for Requisitions Parallel Approvals

In 11.5.10, approvers for a given requisition are notified sequentially To satisfy regulatory requirements (e.g. SarbanesOxley Act), organizations may need to involve more approvers With parallel approvals, several approvers can be simultaneously notified for a given requisition, thus speeding up the requisition approval process Parallel approvals can be setup within an approval group or for individuals

Advanced Approvals Support for Requisitions Voting Method

A Voting Method is a way of sequencing the approvers within an approval group/chain of authority Types of voting methods
Consensus All approvers must respond. Approvers will receive notifications in parallel First Responder Wins Approvers will receive notifications in parallel, but only the action of the first approver to respond will be recorded

Advanced Approvals Support for Requisitions Position Hierarchy Support

In addition to the Employee/Supervisor Hierarchy support, the integration with Oracle Approval Management (AME) also supports Position Hierarchy Approval routing structures using positions and position hierarchies remain stable, even if individual employees leave their organization, or transfer within it

Advanced Approvals Support Example

Business Rules:
If requisition < $5,000, then requires approvals up to first two positions up based on position hierarchy If the items category is [IT.EQUIPMENT] then require approval from IT Approval Group IT Approval Group is in parallel to position hierarchy approval chain

Advanced Approvals Support Example Approval List

Approval Group returned in Approval List since Item Category is [IT.EQUIPMENT]

Since req total is between 0 and 5000, the first 2 positions up (based on the Position Hierarchy Rule) is generated

A requisition for computers totaling $4,500 is created. The req will need to be approved by the position hierarchy chain and the IT Approval Group.

Advanced Approvals Support Example Approval List

Takes you to add approver/viewer, delete approvers

Parallel Approval

A requisition for computers totaling $4,500 is created. The req will need to be approved by the position hierarchy chain and the IT Approval Group.

Advanced Approvals Support Example Add Viewers

Option to add Viewers to the Approval List

Advanced Approvals Support Example Add Viewers

Viewer Icon

Advanced Approvals Support Example View Req Status

The Approval Graphical View shows the following: Tom Gallant has approved the requisition The requisition is currently pending approvals from the IT Approval Group and Maria Menudo

Sourcing At-a-Glance
Buying Professional

Identify Suppliers & Opportunities

Define Strategies & Negotiations

Conduct OnLine Negotiations

Analyze & Award

Approve & Issue

LOB Stakeholder

Supply Base

Strategic sourcing is emerging as the leading strategy to control costs, capture innovation, and maximize performance.

Oracle Sourcing & Sourcing Optimization

Source More of Your Spend Source for Lowest Total Cost Create Immediate & Long-Term Savings

Identify Suppliers & Opportunities

Define Strategies & Negotiations

Conduct OnLine Negotiations

Analyze & Award

Approve & Issue

Operations

Contract Mgmt

Purchasing

Finance

Increase the Effectiveness & Efficiency of Strategic Sourcing

Efficient Online Negotiations

Slash Cycle Time by Eliminating Manual Processes

View responses and monitor bidding activity in real-time Drill into individual sourcing events View new incoming supplier messages and incomplete tasks

Facilitated Online Bid Comparison

Make Faster Award Decisions
Use Bid Data to Reduce Manual Effort
- Knock-out criteria enforcement - Automatic bid scoring - Side-by-side comparison

Analyze Online for Faster, Better Awards

- Enable selection of suppliers, lots, or specific lines through flexible awards - Enforce policy compliance (e.g., multi-source rqmts, MBWE suppliers)

Use Award Summary & Recommendation

- View award details

Automatic Scoring of Requirements

Quickly Identify the Best Qualified Suppliers
Requirement s
Are you ISO certified? Number of years in business Number of shipping locations

Weigh t
25%

Value (Score)
Yes (100) No (0) > 14 (100) 10-14 (75) 5-10 (50) < 5 (0) > 19 (100) 11-19 (50) 1-10 (25)

Quote 990
No

Respon se Score
0

35%

15

35

40%

35

40

Automatically eliminate suppliers that score below minimum Total Score Calculated by Oracle Sourcing 75 requirements Automatically exclude non-compliant suppliers from shortlists

Centralized Terms Library

Ensure Consistent Contract Standards

Capture standard contract clauses, variables,

templates and deliverables Central Terms Library

Clearly define enforceable and automated

standard policy and procedure

Specify document format with flexibility

to accommodate regional variations

Provide comprehensive revision control via

notification-based workflow with approval rules

Support Compliance and Oversight Requirements

Expert-Based Authoring
Produce Compliant Contracts
Contract Industry Segment?

Configurable rules drive terms selection for complex contracts

Commercial

Template Government . . .

Over $50k?

Clauses default based on product, supplier, contract value, etc. Author high quality contracts with minimal legal supervision
Draft

No

Yes

Responses Drive Clause Selection

Add Clauses High Value Insurance

Contract

Automated MS Word Synchronization

Quickly and Accurately Integrate Offline Redline Edits into Contracts

Streamline internal
Contract Administrator
Synchronize Download

collaboration and supplier negotiation by allowing key stakeholders to be involved in the contract review process

Improve contracting
efficiency while reducing effort
Legal Review Supplier Acceptance

Minimize errors and risk

from manual updates
Supplier

Legal

Automatic Document Generation

Eliminate Manual Re-Keying

Automatically
substitute negotiated terms in printed document

Easily tailor to
each business units standard format logos, headers, layout, etc.

Generate
standard .pdf business document

Variable Substitution

Clause Usage Analysis

Search Contracts To Analyze Clause Usage & Modification

Quickly determine number of incidents

Identify and view contracts with nonstandard clauses

Improved legal discovery on contracts across multiple organizations Better insight into effectiveness of current standard language usage Enhanced visibility into contract standards requiring revision

Contract Deliverable Tracking

Monitor Supplier Performance

Example Deliverables

Generate 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

Manage Deliverable

Escalate When Necessary

Based on
contract Ts & Cs

Notify
individuals or groups

Track progress Indicate failure

or completion

Define escalation
criteria

One-time and
recurring

Notify trading
partners

Escalate to
supervisor

Attach supporting
documents

Internal or
external

View status
change history

Manage Contract Deliverables

Track Contractual Responsibilities and Key Administrative Tasks
Track internal commitments & contractual obligations Clearly defined ownership Deliverable status at a glance

Alert Any Compliance Risk and Highlight Non-Compliance Review Compliance Status Before Authorizing Payments Track Approval History

Prospective Supplier Registration

Reduce Overhead with Self-Service Registration

Supplier Requests

Supplier Registration

Review & Approval

Use corporate website

to allow interested prospective suppliers to register

Configure qualification
details captured during registration

Use request details to

customize approval flow

Define req. elements

of supplier profile

Enable approvers to
update details

Include customized
questionnaires* as part of registration

Notify suppliers via

email once registration request has been approved / rejected
* Requires iSurvey

Supplier Management User-Interface

Streamlined Supplier Profile Management

To Do List for requests Create supplier Search or drill down to supplier details