Oracle

Supplier
Collaboration
With Oracle Advanced Procurement
Avik Saha
Oracle India

Supplier Collaboration At-a-Glance

Your Company

Suppliers

Purchasing

New &
Changed Orders

Receiving &
Payment

Settlement
& Status

Financials
(Receivables)

Production

Plans &
Schedules

Production

Fulfillment

Providing a self-service model gives suppliers realtime visibility of our orders and enables them to
incorporate them in their own planning schedules. We can also share
bills of materials between different suppliers and use workflow-driven
processes to coordinate and synchronize production.
--Manel Puig, IT Director

Business Drivers
Reduce Costs

Reduce Cycle Time

How can I reduce the costs

of managing supply and
replenishment?
How can I partner with suppliers to
reduce the cost of doing business?
Your
Company

How can I eliminate manual

processes and work with suppliers
as efficiently as possible?
How can I minimize information
lag time with suppliers?
Suppliers

Dynamic Business Demands

Scale Globally

How can I empower suppliers to

better adapt to shifting demands?

How can I blue print collaborative

supply best practices and scale
them across the entire enterprise?

How can I quickly ramp-up new

suppliers to fully leverage proven
supply practices?

How can I broaden my focus and

strategically manage supply and
replenishment for all suppliers?

Operational Challenge
Unstructured Communication

Supplier X

Your Company

Phone
Requester

Supplier
Rating

Quantity
Change?
Fulfillment

Order

Supplier Y
Payment
on Hold?

Unit Cost
? Quality
? Delivery
? Service

Buyer

Fax

Settlement

Acct. Rec.

Supplier Z
Schedule
Change?
Receiving

Email

Plan

Production

Process variation introduces inconsistent results

Response to change is manual and slow
Difficult to replicate success and sustain improvement

Supplier Collaboration Opportunity

Our suppliers dial in to a self-service application to answer a majority of
their questions and it really frees up a lot of time for our procurement
folks because we are able to do more strategic activities.

Improved buyer and planner efficiency

Increased inventory turns
Increased accuracy of cash requirements

25-50%
15-30%
50+%

Reduced calls for basic supplier inquiries

Reduced order cycle time
Reduced accounts payables costs

75%
50%
25+%

Source: BearingPoint 2002, Oracle customer analysis

"iSupplier Portal has brought us to a new level of capability and communication

with our suppliers. All the interaction with suppliers is real-time. The speed and
accuracy of information is amazing," Major High-Tech Manufacturer

How Oracle
Delivers

Oracle: Complete E-Business Suite

Maintain

Finance

Projects

Service
Fulfill

Automate Key

HR

Internal Business
Processes

Extend

All Product,
Customer,
& Supplier
Information

Develop

Make

Automation to
Your Trading
Partners

Drive Continuous

Market

Procure
Plan

Order

Sell

Improvement
with Real-Time
Intelligence

Oracle Advanced Procurement Platform

Suppliers

Portal

The Key Elements For

An Advanced
Procurement Platform

XML / EDI

BI
Transaction Suite

Procurement

Operations

Requesters

Business Groups: Engineering, Facilities, Finance, HR, Legal

Enterprise Requisitioning
Operational Procurement
Supplier Collaboration
Continuous Sourcing
Procurement Intelligence

Operational Solution
Challenge
Unstructured
Structured
Communication
Communication

Supplier X

Your Company

Phone
Supplier
Rating

Requester

Fulfillment

Order

iSupplier
Portal

Supplier Y

Unit Cost
? Quality
? Delivery
? Service

Buyer

Fax

Settlement

Acct. Rec.

Supplier Z
Oracle Supplier
Network
Receiving

Email

Plan

Production

Process variation introduces inconsistent results

Control
Response
entire
to change
procurement
is manual
process
and slow
and supplier lifecycle
Difficult to replicate success and sustain improvement

Supplier Communication
Accommodate Capabilities of All Suppliers
Manual via iSupplier Portal
Accessible over the Internet
No infrastructure needed for
suppliers
24X7 real-time access to information

Messaging via Oracle Supplier

Network service
Supports inbound and outbound
transactions
Orders flow directly into suppliers
order management systems
Supplier invoices load Oracle
Payables
Follow OAG and cXML standards
Quick onboarding process

Typical Supplier Deployment

Portal

Messaging

Large Direct Material

Small Direct Material
Designed / Custom
Office Supplies
Small Indirect
MRO / Services

Method of Data Update

= Primary
= Secondary

Supplier Collaboration
Structured communication for lower costs, better service from suppliers

Order
Collaboration

View PO and agreements

Acknowledge orders
Submit change requests
VMI / Consigned Inventory
Drop ship orders
Forecast sharing

Ship Goods

Create shipment notices

Add lot, serial and LPN
Excel upload for volume
Check returns
View inspections
Inbound logistics

Enable
Suppliers

Gather prospective vendors

Register supplier users
Invite supplier users
Set security levels

Establish
Supplier Profile

Set up address & key contact details

Flag business classifications
Identify products & services
Define bank accounts
Document filing cabinet

Settlement

Maintain bank accounts

Create invoice
Check on-hold status
View payment schedules
Reconcile statements

Review Supplier
Performance
Track ratings for:
- Price, quality, delivery, service
Compare performance

Oracle iSupplier Portal

Enables You To

Provide Closed-Loop Purchase Order Collaboration

Simplify Receiving and Payment Processes
Optimize Planning and Inventory
Efficiently Ramp and Maintain Suppliers

Provide Closed-Loop PO Collaboration

Instantly View and Process Purchase Orders
Blanket Agreements

Your
Company

Planned Releases
V.1

Standard Orders
Acknowledgments
Change Requests

V.2

Revisions

Suppliers

Supplier Order Management

Complete Purchase Order & Agreements View

Supplier Agreements / Contracts
-

Track agreements & associated releases

See price breaks & payment terms
View attachments
View Procurement Contracts structured terms &
conditions
- Link to Oracle Sourcing RFQs/Auctions

Purchase Orders
- View all types of goods/services orders, including
outside processing orders
- See header, line and shipment detail
- View attachments (designs, specs, etc.)
- Acknowledge orders

Audit Trail

Download PDF copy

- Compare current PO vs. previous and original

PO

Intuitive Zero Training User Interface

Drive Supplier Adoption

Supplier
Access to
Extended
P2P Cycle

Finger Tip
Access to
Relevant
Orders

Supplier Change Requests

Automate Order Exceptions

Changes
routed to
buyer for
approval

Supplier enters structured change requests

- Price
- Quantity
- Delivery Date
- Supplier Part Number
- Supplier Order Number
- Additional Changes

Supplier requests split shipments

Oracle iSupplier Portal

Enables You To

Provide Closed-Loop Purchase Order Collaboration

Simplify Receiving and Payment Processes
Optimize Planning and Inventory
Efficiently Ramp and Maintain Suppliers

Simplified Receiving & Payment Processes

Communicate Proactively with Suppliers
Your
Company

Ship Notices
Receipts
Returns
On-Time Performance
Invoices
Payments

Suppliers

Automated ASNs & Performance Loop

Increase Shipment Efficiency
Your Company

Shipment Notice

iSupplier
Portal

Supplier

+
w/attachments

-- or -Bulk XLS
upload

Benefits:

Shipment Visibility

Expedited Shipping
and Receiving
Streamlined Payment
Processing
Instant Visibility

Benefits:
Inspection Status

Capabilities:

Shipment Receipt

Ship Notice Creation with Optional

Billing Information
Include Lot, Serial and License Plate #
Invoice Creation
Trigger Payment through Evaluated
Receipt Settlement

On-Time Delivery
Performance
Continuous
Feedback

Supplier Online Invoicing

Lower Accounts Payables Cost

Match Invoice
to PO
+

Avoid Invoice Holds

Shrink Cycle Times

Include Attachments

Input Freight,
Miscellaneous
and Tax Charges

Drop Shipment Customer Deliveries

Eliminate intermediate warehousing
Sales Order
Key info automatically

Buying
Company

Purchase Order
copied onto PO

Your
Customer

Your
Supplier
Shipment
Notice

Invoice to buyer

Supplier ships direct to customer

Purchase Order details extracted from Sales Order and sent to supplier
Supplier ASN routed to buyer
Supplier ships goods directly to end-customer, invoice routed to buyer
Simplified logistics, elimination of redundant warehousing activities

Receipt and Payment Status Views

Decrease Supplier Phone Calls

Receiving
- View expected and overdue deliveries
- Monitor return and inspection results
- Monitor on-time delivery performance

Invoicing and Payment

- View current and past invoices
- View payment status
- Check on-hold status and reason code

Oracle iSupplier Portal

Enables You To

Provide Closed-Loop Purchase Order Collaboration

Simplify Receiving and Payment Processes
Optimize Planning and Inventory
Efficiently Ramp and Maintain Suppliers

Share Plans and Requirements

Optimize Planning and Inventory
Your
Company

Supplier Capacity
Lead Times
Order Modifiers
Quality
Shipment / Forecasts
On-Hand / VMI / Consigned

Suppliers

Supplier Maintained Item Attributes

Lower Inventory Requirements
Supplier Updates:
Supplier

Capacity & tolerance

Lead time
Order quantity

iSupplier Portal

Your
Company
(Warehouse)

Supplier Views:

On-hand inventory
Plans & schedules

Warehouse Stock
Update:

Your
Company
(Buyer)

Inventory levels

Approved
Supplier List

Plans &
schedules

Supplier-authorized updates to the ASL help generate an optimized plan

Improved plan visibility helps supplier evaluate current and future commitments
Better visibility and plan helps prevent stock-outs and minimize excess inventory

Supplier Initiated Replenishments

Enable Vendor Managed Inventory
Your
Company
VMI Agreement
Establish inventory
policy

Receive items

Pay on
receipt

Supplier
VMI
Agreement

Check
Inventory
Status
Ship items

Provide Inventory Visibility

- Share on-hand and safety stock
levels with suppliers

Transfer Replenishment
Responsibility to Suppliers
- Improve fulfillment cycle time
- Automate replenishment
process

Supplier Owned Inventory

Enable Management of Consigned Inventory
Your Company

Supplier

Consigned Inventory
Agreement
Planning

Consigned Inventory
Agreement
Receive order

PO / Release
Receive to
CI whs

Ship items

Check inventory

Goods consumed /
transferred

Pay on
use

Receive Consumption
Advice

Receive payment

Goods Retain Supplier Ownership

Until Consumed by Buyer
Supplier Views into Consigned
Inventory
-

On Hand Inventory
Shipments
Invoices / Advice
Receipts

Works With or Without VMI

Oracle iSupplier Portal

Enables You To

Provide Closed-Loop Purchase Order Collaboration

Simplify Receiving and Payment Processes
Optimize Planning and Inventory
Efficiently Ramp and Maintain Suppliers

Supplier Self-Service

Drive Down Costs of Supplier Management

Your
Company

Vendor Self Registration

Supplier User Registration
Supplier Profile Details
Address/Contact Info
Banking Details
Business Classifications

Suppliers

Vendor Registration
Gather Potential Vendors

Registration page

Buying
Company

Buyer Admins
Receive notification &
review request

+
Approved vendor
given access to
Profile Management

Prospective vendor registers

Buyer Admin sets

up additional
user accounts

Supplier Profile Management

Improve Accuracy of Supplier Master
Attachments

Supplier Locations

Contact
Details

Banking Info

Business Classifications +
Product & Service Details

Buyer admin reviews and promotes to

Purchasing and Payables systems

OUx
OUy
OUz

Supplier updates
profile details

Updates applied to
multiple Operating Units

Business and Commodity Classifications

Improve Reporting and Sourcing Processes

Updates
routed to
buyer for
approval

Expose configurable list of classifications to supplier

- Diversity information
- Other business profile data
- Products & services

Gather info from supplier and approve

Banking Details

Ensure Prompt Remittance

Bank
Branch
Account

London

Buyer Admin

OUx
OUy

Supplier

OUz
new

selects from existing or adds

new to create bank accounts

Provide
Provide Company
Company
Account
Account Details
Details

Paris

Assigns account to locations

and flags primary

approves account
details to Payables

Changes
Changes Routed
Routed to
to
Buyer
Buyer for
for Review
Review

Extend Your Supply Collaboration

Single Access Point for Plan, Negotiate and Procure

P L AN
Forecasts Capacity Exceptions
Pegging Waterfall Analysis
Vendor Managed Inventory

Procure - iSupplier Portal

- Involve suppliers in your
procurement to pay processes

Plan - Collaborative Planning

RFI & RFQs
Auctions Bidding
Design Proposal

N E G O T I AT E

SUPPLIERS

- Involve suppliers in your

sophisticated planning processes

Negotiate Sourcing
- Involve suppliers in the electronic
tendering processes

Seamless integration
Vendor Managed Inventory
Orders
ASNs Receipts
Invoice
Payments

PROCURE

- Single view of products, suppliers,

order modifiers, ASLs, sourcing
rules, registration process

Oracle iSupplier Portal Solution

Self-service PO views,
acknowledgments, change requests

Provide Closed-Loop
PO Collaboration

Self-service ASN and invoice

creation and inquiries

Simplify Receiving and

Payment Processes

Supplier maintained item attributes,

VMI and Consigned Inventory

Optimize Planning
and Inventory

Portal, XML & EDI communication,

supplier self-services

Efficiently Ramp and

Maintain Suppliers

Customer
Success

iSupplier Portal Adoption

Strong History of Growth

11i10: Approaching 1000

customers

1200
11i6: New UI
introduced

Customers

1000
800
600
400

11i1: First
Collaborative
Functionality
Included
11.0: Planning
and Forecasting
Added

11i9: Change Order &

Supplier Profile
Management

10.7 Web
Suppliers
Released

11i8: Create Invoice,

VMI, Sourcing and
Collaborative
Planning Integrated

200
0
FY '96

'97

'98

'99

'00

'01

'02

'03

'04

A Few iSupplier Portal Customers

 Ingersoll-Rand -- $9.2B multinational manufacturer of

industrial and commercial equipment w/ 50K employees
Live on Procurement 11i
- 500 users spending $5.4B annually via 15K req.s / month
- Rolling out to 5K users at 120 global sites
- Direct and indirect material suppliers get timely planning and shipping
schedules, and employees are freed from supplier inquiries
Oracle applications have helped to streamline our procurement
strategy. We now have terrific supply chain integration that has enabled
us to exponentially roll out this product to our supplier base.
Our suppliers dial in to a self-service application to answer a majority of
their questions and it really frees up a lot of time for our procurement
folks because we are able to do more strategic activities.

Automated 59,000 supplier relationships

Created access to 100K SKUs via two online catalogs

 $1B+ R&D laboratory tasked with ensuring the safety, security,

and reliability of the United States nuclear arsenal
- Division of US Department of Energy with over 7000 employees

Solution goals
- Increase system efficiencies and streamline financial and mfg processes
- Adopt more effective business processes by implementing COTs software

Live on 11i
-

iSupplier Portal, Procurement, Financials, Projects and Manufacturing

Reduced headcount in AP department; reduced process time by 23%
Consolidated manufacturing data
Successfully upgraded from 10.7 to 11i, few customizations

83% increase in buyer productivity

Over $11 million in savings over existing homegrown systems

Summary

Oracle iSupplier Portal

Provide Closed-Loop Purchase Order Collaboration
Simplify Receiving and Payment Processes
Optimize Planning and Inventory
Efficiently Ramp & Maintain Suppliers

Know More. Do More. Spend Less.