First Cut Training

Oracle Sourcing
 Agenda

• Day 1- 1st Half

• Overview
• Features
• Creation of Supplier Lists
• Creation of Attribute Lists
• Creation of RFQ
• Supplier Registration.
• Quotation against the RFQ
• Quote Analyses
• Award finalization
• Creation of Standard Purchase Order
• Oracle Sourcing is a complete and integrated global
sourcing platform which allows buyers to optimize the
supply base, reduce sourcing costs, improve supplier
relationships, and source for best value.

• Oracle Sourcing is the application that improves the

effectiveness and efficiency of strategic sourcing. It is a
key component of Oracle Advanced Procurement, the
integrated suite that dramatically cuts all supply
management costs.
• Oracle Sourcing helps an Organization streamline the
sourcing process with end-to-end business
automation by providing an easy-to-use, web-based
platform for both the buyer and the suppliers to
conduct negotiations.

• It also provides a complete online help system to

provide answers to questions from both buyers and
suppliers.
With Oracle Sourcing, Organizations can:
• Reduce Costs with Online Collaboration and Negotiation.
• Source More for Your Spend.
• Source for Lowest Total Cost.
• Create Immediate and Long-Term Savings.
Sourcing Features
• With Oracle Sourcing, users can create reusable invitation
lists (i.e. Suppliers Lists). Suppliers are classified based on
some common characteristics i.e. Suppliers for Handsets,
Suppliers for Battery’s etc.
Demonstration
• Reusable Attribute List
Attributes are characteristics of the product. For Ex a Mobile
Handset can have attributes like Phone Book memory, Battery Talk
Time, Infrared, Bluetooth etc.
Each attribute can be assigned a scoring criteria. For Ex if Phone
book memory is up-to 500, a score of 5 can be given. If memory is
more than 500, score of 10 can be given to the attribute.
Weights can be given to each attribute. Sum total of weights should
be 100.
Demonstration
Reusable Attribute List
Negotiations Using Request For Quotation
(RFQ)
• Terminology
 RFQ: Request for Quotation

 Quotation: A response to a RFQ

 Styles of RFQ: Blind and Sealed

– Blind : In a blind auction or RFQ, only the creator of the
auction or RFQ can see the bids
– Sealed: In a sealed auction or RFQ, the auction or RFQ
creator cannot see the bids or quotations until the auction
or RFQ is unlocked. The participants in the auction or
RFQ cannot see the bids or quotations until the auction or
RFQ is unsealed.
• Negotiations using RFQ
 RFQ creation process
Demonstration

• Negotiations using RFQ

• The RFQ is submitted for approval as per the list of
employees attached in the creation of RFQ.

• The approver has to log into his notification list and take
necessary action.
• Creating login and password for the supplier
 Register supplier user
 Invite supplier user
 Publish the URL in your site. Vendors can register themselves
using the link.
 URL: https://
aierptest.airindia.in:8000/OA_HTML/jsp/pos/suppreg/SupplierRe
gister.jsp?ouid=5055E79729E7A9F
Supplier User Creation
Supplier Log-in
• Quote analyses against the RFQ
 All responses received against the RFQ can be
monitored from a central point
 The RFQ has to be closed and unlocked before the
buyer can see the quotations.
 After unseal, the suppliers can see each others quotes.
 All this is possible if RFQ style is sealed
Price/ Score Vs Time
Price Vs Score
Request For Information (RFI)
• Request For Information- RFI
 RFI’s are used for gathering information from Suppliers about
goods and services.

 In RFI’s buyers can choose to define negotiation line items

without price and quantity.

 Buyers can specify the lists of criteria to which suppliers must

respond.

 For Ex: An Organization is trying to acquire a Purchasing

Application.
• The level of product support a supplier can provide.
• The specific platforms the product can run on.
• Request For Information- RFI- Contd…

 RFI can be taken for multiple rounds of information

gathering.
 To take an RFI to a new round, it must first be closed.
 On the Negotiations Summary page, select Start New
Round to be chosen from Actions menu.

• Once the suppliers have been identified, the RFI’s can be

closed, and the information gathered can be used to create
a RFQ or Buyer’s auction.
Demonstration
Supplier Login
Buyer Log-in
Supplier Log-in
Buyer Log-in
Auctions
• Auctions

 Oracle Sourcing allows buyers to conduct auctions for goods or

services.

 A response to an auction is called a bid.

 Auctioner’s can chose whether to allow multiple rounds of

bidding.

 Styles of auction: Open, Blind and Sealed

• Auction Styles
 Open
 In an open auction all Exchange members participating in the
auction can see the bids in the auction, though the bidder
identity is concealed.
 Open auctions encourage competition among bidders to
submit the best possible price.

 Blind
 In a Blind auction only the creator of the auction or RFQ can
see the bids.

 Sealed
 In a sealed auction the creator cannot see the bids until the
auction is unlocked.
 Participants in the auction cannot see the bids until the
auction is unsealed.
 Types of Bid
 Proxy Bidding
• Proxy bidding allows the Exchange to automatically re-bid on
the bidder's behalf whenever a competing bid price beats the
bidder's bid price within a set limit.

 Power Bidding
• Power bidding allows bidders to streamline their re-bidding
when they have bid on several items in the same auction using
power bidding, all of a bidder's bids (both losing and winning
bids) in an auction will be improved by the percentage the
bidder enters in the "Power Bid" field.
Demonstration
Supplier Log-in
Supplier Nokia is able to
see the price at which
Reliance has bid, since its
an open auction.
Buyer Log-in
Supplier Log-in
Buyer Log-in
Run the work flow back ground engine for
creating the Purchase Order
Thank You……..