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Procurement Release 12.1 (through 12.1.3)

Prepared by EBS Product Management & Strategy

Last Updated: Version:

July 9, 2010 4.0

Copyright © 2010 Oracle Corporation All Rights Reserved

Table of Contents

1. 2.

Disclaimer Introduction
Purpose of Document

1 2


New and Changed Features in Procurement
Oracle iProcurement
3.1.1. Overview 3.1.2. Release 12.1.1 Change Management for Internal Requisitions 3.1.3. Release 12.1.2 In-line Commodity Classification

3 3 3 3 3


Oracle iSupplier Portal
3.2.1. Overview 3.2.2. Release 12.1.1 Dispute Resolution for G-Log Invoices AP/AR Netting Products and Services Search Business Classification Recertification Third Party Payments 3.2.3. Release 12.1.3 Work Confirmation Correction

4 4 4 4 4 5 5 5 5


Oracle Procurement Contracts
3.3.1. Overview 3.3.2. Release 12.1.1 Structured Terms Authoring in Repository Contracts Secure Enterprise Search Deliverable Payment Holds 3.3.3. Release 12.1.2 Author Individual Clauses in Microsoft Word Project Manager Dashboard for Maintenance of Procurement Deliverables

5 6 6 6 6 7 7 8


Oracle Purchasing
3.4.1. Overview 3.4.2. Release 12.1.1 PO and Requisition Mass Update Enable All Sites for Global Contract Purchase Agreements FPDS-NG Integration 3.4.3. Release 12.1.2 Purchase Order Pricing Enhancement Project Security within Oracle Purchasing Procurement Web Services – Purchasing 3.4.4. Release 12.1.3 Landed Cost Management (LCM) Integration Asset Lifecycle Management (ALM) Integration

9 9 9 9 9 9 9 10 10 11 11 11

Oracle E-Business Suite Release 12.1 Release Content Document


Oracle Services Procurement
3.5.1. Overview 3.5.2. Release 12.1.1 Time Reporting and Contractor Assignment Flexibility 3.5.3. Release 12.1.2 Oracle Projects – Work Confirmations

11 12 12 12 12


Oracle Sourcing
3.6.1. Overview 3.6.2. Release 12.1.1 Two Stage Evaluation of RFP Two Stage RFQ – Surrogate Bids Supplier Response PDF Enhanced Spreadsheet Support Countdown Clock Price Tier Enhancements Cost Factor Enhancements 3.6.3. Release 12.1.2 Earnest Money Deposit 3.6.4. Release 12.1.3 Requester Field in the Sourcing Header Descriptive Flex Field (DFF) in Oracle Sourcing Header Landed Cost Management (LCM) Integration

12 12 12 13 13 13 15 15 15 15 15 16 16 17 18


Oracle Sourcing Optimization
3.7.1. Overview 3.7.2. Release 12.1.1 Sourcing Optimization Enhancements Price Tier Optimization Supplier Incentives

18 18 18 19 19


Oracle Spend Classification – New Product
3.8.1. Overview 3.8.2. Release 12.1.2 Integration with Procurement and Spend Analytics 7.9.6 Knowledge Base Creation and Incremental Updates Multiple Knowledge Bases Easy to Use User Interface Export and Import to Excel Ability to Classify Data into Multiple Taxonomies In-line Commodity Classification

19 20 20 21 21 21 21 22 22


Oracle Supplier Hub – New Product
3.9.1. 3.9.2. Overview Release 12.1.1+

22 23


Oracle Supplier Lifecycle Management – New Product
3.10.1. Overview 3.10.2. Release 12.1.1+ 360° Supplier View Supplier Search Supplier Profile Management (including Self-Service) Extended Supplier Profile Registration and On-Boarding of New Suppliers Qualification Management Compliance and Profile Audits Performance Evaluation Supplier Notifications

23 24 24 24 24 25 25 25 26 26 26


Oracle Supplier Network
3.11.1. Overview


Oracle E-Business Suite Release 12.1 Release Content Document


2.3.2. Production Routing Controls 3.1 Release Content Document iv . UTF-8 Support 27 27 27 27 Oracle E-Business Suite Release 12. Version 5.1. Consolidated Hub Administration 3.11.0

Disclaimer This Release Content Document (RCD) describes product features that are proposed for the specified releases of the Oracle E-Business Suite. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. It is not a commitment to deliver any material. Existing functionality from prior releases is not described. code. The development. This document in any form.1 Release Content Document 1 . This document and information contained herein may not be disclosed. Oracle E-Business Suite Release 12. copied. contains proprietary information that is the exclusive property of Oracle. or functionality. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement. release. which has been executed and with which you agree to comply. and timing of any features or functionality described in this document remains at the sole discretion of Oracle.1. it may not be possible to safely include all features described in this document without risking significant destabilization of the code. and should not be relied upon in making purchasing decisions. It is intended solely to help you assess the business benefits of upgrading to the specified release of the Oracle E-Business Suite. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. Due to the nature of the product architecture. reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document describes new or changed functionality only. software or printed matter.

2. For your convenience.1. are designated as Release 12. Introduction 2.1 Release Content Document 2 .2.0.1. this document should be read in conjunction with the Release 12 and Release 12.1 and subsequent 12. Existing functionality in Release 12.1. and then by the release in which they first became available. and so on.x Release Update Packs and off-cycle patches.0.1 was the first generally-available release of Release 12.1.x RUP RCDs.0.1+. Release 12. Oracle E-Business Suite Release 12.1. features are organized by product.1. Features released in an off-cycle patch on Release 12.2.x Release Update Packs. Features released in RUP2 of Release 12. but before Release Release Content Documents for E-Business Suite Release 12 and 12. For a complete overview of all functionality included in prior releases.1.1. These RCDs can be found in My Oracle Support Document 404152. Release 12. Purpose of Document This Release Content Document (RCD) communicates information about new or changed functionality introduced in Oracle E-Business Suite Release 12.x Release Update Packs (RUPs).1 are designated as Release 12. or prior releases is not described in this document.

If desired.1. In addition.1 Release Content Document 3 . the urgent flag on the internal requisition line will flow onto the internal sales order line as the shipment priority.1.2. This increases misclassification of spend information. All of these changes will now be visible throughout the planning. This approach uses the Oracle Spend Oracle E-Business Suite Release 12. Release 12. based on a profile option setting. After the requester clicks on “Add to Cart” they will be able to view a “suggested best fit” category with a list of categories that could be alternate possibilities. lower compliance and internal controls. And finally. Cascading of an internal sales order Schedule Ship/Arrival date with the internal requisition is may be controlled through a profile option. Cancellation of an internal requisition/line will automatically cancel the corresponding internal sales order/line and vice versa.1. The same window can also be used to parse the complete Category hierarchy.1. When requesters describe the purchase. It is a key component of Oracle Advanced Procurement. In-line Commodity Classification At times.2. Change Management for Internal Requisitions In Release 12. Oracle iProcurement 3. Now. processing for internal orders has been enhanced to offer additional and better-coordinated change management capabilities.1. there is a high likelihood of it not being classified into an existing commodity hierarchy. quantity or date information can be updated by either the Requesting or Fulfillment organization and the updates will be accurately reflected on both the internal requisition and the internal sales order. support is now provided for the cancellation of internal transfer requests. purchasing and order fulfillment workbenches.1.1. New and Changed Features in Procurement 3. tolerances can be set for automatic approval of updates made to the internal requisition. the integrated suite that dramatically cuts all supply management costs. Quantity and Need-By Date changes on the internal requisition line are automatically propagated to the internal sales order and vice versa. 3. Many new synchronization features are provided. Overview Oracle iProcurement is the self-service requisitioning application that controls employee spending. contract leakage.1.3. requesters creating Non-Catalog Requests will have the option of category being predicted for the purchase being made.1. Release 12. In R12.3.1 onwards. requesters may need to order off catalog and create a Non-Catalog Request.2 3. A requester can update Quantity and Need-By Date of an approved internal requisition.3.1 3.1.

3. it is not uncommon for the buying organization to hold the invoice in order that the buyer can review any discrepancies between the invoice and the original Purchase Order.1.3. the integrated suite that dramatically cuts all supply management costs. 3. it is important that the supplier is able to log and track all activities for a particular invoice. On the View Invoices and Payments pages. Depending on the nature of the additional charges.1.2. aiding downstream spend analysis. AP/AR Netting It is a common business practice in many industries to both purchase products or services from a trading partner and sell products or services to the same trading partner.1 3.2. Release 12. Oracle iSupplier Portal 3. The new feature will give iSupplier Portal users visibility into the AP/AR netting activity. Internet-based portal. 3.2.1 Release Content Document 4 . so they can easily see which invoices will be paid standalone. In cases like this companies often offset payable and receivable invoices so that only the net difference is paid or received.2. This saves you and your trading partners the expenses associated with making multiple payments. the buyer and supplier may negotiate a compromise and adjust the invoice accordingly. Furthermore.2. The requester merely picks the purchasing category and continues checking out. This capability allows even unstructured requests to be categorized appropriately. Dispute Resolution for G-Log Invoices In situations where suppliers include sundry charges on a G-Log invoice. When such disputes occur.2. the users will be able to see the Netted Amount and the Reckoning Currency. which invoices will be offset against receivable transactions.2. To better help suppliers in these situations. new fields have been added to the View Invoice page so that the supplier can see the original value for their invoice and the reason for the discrepancy. Products and Services Search A new search tool has been added to the Products and Services section of the Supplier Profile to make it much easier for suppliers and administrators to find and select the Oracle E-Business Suite Release 12.1. This feature has a prerequisite of Oracle Spend Classification. if a particular invoice has been netted. which will show all transactions that are a part of the netting batch.Classification in real-time to assess the category of what the requester is ordering. the users will be able to drill down to the Netting Report. 3.2. It is a key component of Oracle Advanced Procurement. and which groups of invoices will be paid by a single payment. Overview Oracle iSupplier Portal is the enterprise application that structures all supplier communication through a secure.2.2.2.

Work Confirmation Correction is possible via Purchasing Professional Buyers Work Center and iSupplier Portal internal view. This is especially useful for those customers that have an extensive Products and Services hierarchy with many thousands of individual categories from which to choose. When customers are making payments from their Payables system. there may be a need to correct a previously approved work confirmation in order to adjust a payment to a supplier.2. Oracle Procurement Contracts 3. It is a key component of Oracle Advanced Procurement.2. 3.3. This capability enables a buyer to reduce the scope of the original work confirmation. Now.3. 3.3. Establishing Third Party Payment relationship can be done from iSupplier Portal. the integrated suite that dramatically cuts supply management costs.1.5. Third Party Payments Third party payments help parties engaged in business set off their liabilities without directly paying them.4.goods or services categories that identify a supplier's capabilities. Suppliers can add a new relationship and find and update existing relationships. Release Release Content Document 5 .2.3. Buyers can be granted the additional authority to make corrections as needed.1.3 3. Oracle E-Business Suite Release 12. a recertification tool has been added to the Business Classification section of the Supplier Profile that tracks the "Last Update" date for the supplier's classification details and allow administrators to schedule reminder notifications to be sent to each supplier as this information becomes due.2. The new feature is available within both the Profile Management pages for existing suppliers and the prospective supplier registration flow.2. 3. when an error is made during data entry for the work confirmation. 3. it has always been a challenge to keep this information up to date to the satisfaction of auditors. Business Classification Recertification For those businesses required to track the business classification details of their suppliers. there might be instructions from the supplier to make payment to a different party (Third Party). Work Confirmation Correction At times. This feature significantly reduces risk and administrative burden for buying organizations because they will no longer need to manage the recertification process manually. In that case the remittance of the payment has to be made to the Third Party. Overview Oracle Procurement Contracts is the enterprise application that creates and enforces better purchasing contracts. This reduces the direct funds movements and enables transactions to be settled easily. Buyers that are granted this authority will be able to make corrections to approved Work Confirmation.

1 Release Content Document 6 . The deviations report functionality will provide a quick overview of all policy violations in the contract. Structured Terms Authoring in Repository Contracts The Contracts Repository module enables customers to easily manage all their contracts online. and unstructured text. Users can create Repository contracts by capturing key attributes about the contract (like contract party. secure visibility to key stakeholders. such as contract terms. start date.2. Pay When Paid is a payment term common in this industry.3. and include: contract number. supplier/customer/party name. The following features enable users to track such requirements and to automate the payment hold process.3. contract name. including Financials and Services Procurement.1. Users can also use the Contract Expert feature to bring in additional clauses that may be required based on the business terms of the particular contract. Users can also track key deliverables and contract expiration. Release 12. amount. Payment Hold Deliverables Oracle E-Business Suite Release 12. Secure Enterprise Search provides flexibility to match user entered keywords to search both structured text. This feature requires additional products to be licensed for full functionality described below. it is sometimes necessary to require subcontractors to maintain specified insurance coverage and other work related certifications.2. Oracle Procurement Contracts now leverages Oracle’s Secure Enterprise Search to better search against procurement. In addition.1.2. such as text contained in attached documents.1.2. Additional structured contract attributes may be used to further refine the search. or exported to Microsoft Word for redlining/collaboration with the external party. contract status.1. Secure Enterprise Search Business and legal users sometimes wish to locate contracts containing a certain word or phrase. users can now author structured terms and conditions while creating a Repository contract.2.2.3. Business and legal users can perform full-text queries in conjunction with structured data queries.1 3. where sub-contractors are not paid until the customer pays the general contractor. The contract can then be printed for signature. subcontractor payment. and customer billing.3. dates. Deliverable Payment Holds Engineering and Construction (E&C) firms have unique requirements regarding subcontractor management. These terms are based on standard templates.3. It provides basic contract management capabilities and global. The general contractor frequently reserves the right to withhold payments to subcontractors until proof of insurance or proof of certifications has been provided. With Release 12. etc. and end date. 3. clauses and policies defined in the contract terms library. Risk associated with non-standard contracts is also mitigated by ensuring approvers have visibility to all policy violations. and repository contracts.3. Structured terms authoring promotes standards based contract authoring and reduces the overall time-to-contract.1. 3.3. 3.3.) and manage the document files associated with the contract. sales. Unstructured data/text search functionality requires licensing of Oracle Secure Enterprise Search (SES).

Project managers can also use the Subcontractor Payment Management Workbench to manage Deliverables. To ensure that licensing happens. A concurrent process automates the release of PO Deliverable Payment holds. Release 12. Support for Pay When Paid Scenarios Many construction firms adhere to a “Pay when Paid” policy for subcontract agreements. The associations between the customer invoices and the subcontractor invoices may be automatically maintained based on the billing of project expenditures in the case of a cost-plus contract. The process is submitted automatically when the user updates the Due Date for a deliverable that is within the defined payment hold terms.2. Oracle E-Business Suite Release 12. Alerted by workflow notifications once the customer payment is received.2.3. Specifically. with visibility into both the customer invoices and the associated subcontractor invoices.2 3.1. A Payment Hold Status and Payment Indicator allow users to quickly see whether all deliverables have been met and determine whether payments can be made to the subcontractor. Initiate Payment Holds functionality will provide users the ability to initiate payment holds on all future invoices when a deliverable approaches its due date or when a deliverable becomes overdue.3.Tracking insurance and certification requirements is often a cumbersome and manual process. Releases may be automatic or manual.1. A “PO Deliverable” hold can be placed on all supplier invoices that are matched to a purchase order that has a deliverable with payment hold terms and is nearly due or is overdue. 3.1. the project manager can then choose to automatically or manually release the corresponding subcontractor invoices. construction companies will hold the payment of subcontractor bills until the construction firm has been paid by the owner. Author Individual Clauses in Microsoft Word Legal clauses are typically managed in Word documents.3. new hold and release reasons are seeded in Oracle Payables.2. 3.3. For example. Payables Integration In Release 12. Organizations using Oracle EBusiness Suite for their enterprise contract management need to be able to create and update clauses using a rich text editor such as Microsoft Word.3.3. Now. a Pay when Paid payment term may be specified for a subcontract to automatically result in the placing of holds on all subcontractor invoices under that subcontract until the corresponding customer payment is received. the buyer or project manager can define a deliverable to hold all payments if the subcontractor fails to renew his license. in order to manage cash flow for a project. Deliverables will be used to track these requirements.3. Project managers can override the automatic payment holds caused by overdue purchase order deliverables. A new Subcontract Payment Controls workbench allows the project manager to manage these holds. 3.3. a subcontractor may be required to be licensed yearly.1 Release Content Document 7 . or manually maintained for fixed price contract scenarios.3.1.

1.3. Project Manager Dashboard for Maintenance of Procurement Deliverables A new feature in Release 12.1. if a subcontractor fails to provide their insurance certificate in a timely fashion per the subcontract terms. Oracle E-Business Suite Release 12. This feature has a prerequisite of Oracle Projects. alphabets.1 provided support for the tracking and monitoring of subcontract deliverables that place automatic holds on subcontractor invoices in the case of non-compliance. page breaks. italic. and symbols defined in Unicode • • • • • • This feature requires Microsoft Word Professional 2003 or 2007. Also in 12.With 12. numbers) and their indents including hanging indents List items with non-numbered text between them Indent and tabs (Tab spacing/width is determined based on style sheet information) Line spacing Text alignment (left. holds are automatically placed on incoming invoices based on the contractual deliverable. the Payment Controls Workbench has been enhanced to allow project managers to directly update subcontract deliverables. Upon complying. A project manager with proper security privileges can update existing deliverables or define new deliverables to track future subcontractor obligations. a new Payment Controls Workbench in Oracle Projects allows the project manager to view a checklist of all subcontract deliverables to assist in evaluating the subcontractor status prior to releasing monthly progress payments. In 12. and center justification) Table formatting Hyperlinks. Project managers are frequently responsible for subcontractor management.1 Release Content Document 8 . the hold is released. and underlines Standard bullets available in Word Numbering schemes (roman numerals. For example.3. text color.2.1. A project manager can also apply payment holds even when the “Pay when Paid” attribute has not been checked.2.1. right.1. users can directly create and edit the clauses in Microsoft Word leveraging additional formatting features.2. 3. Importing clause text from Microsoft Word and exporting clause text to Microsoft Word for edit have been incorporated into both the Contract Terms Library and the Contract Authoring Flow. The following formats will be preserved as defined in Microsoft Word: • • • Bold.

but are not in the closed status as well as for Purchase Orders that the user needs to manually close. The extended integration Oracle E-Business Suite Release 12. Mass Close of Purchase Document.4. approver.4.1.1 3. including publishing certain contract activity to the Federal Procurement Data System – Next Generation (FPDS-NG). allows users to mass close Purchase documents. 3.4. a profile option has been added to allow a Requisition or Standard Purchase Order to reference a GCPA from any of the Supplier Sites while the GCPA is being amended.1 provides support for integration with FPDS-NG by ensuring that required contract and vendor data elements are captured in the system and that submission data passes all required FPDSNG validations.1. Federal Government agencies must track and report their contract activity in a variety of ways.3. Purchase Order Pricing Enhancement Oracle Purchasing has extended its integration with Advanced Pricing to provide greater granularity and flexibility in pricing orders and agreements. It is a key component of Oracle Advanced Procurement. The program is applicable to Standard Purchase Orders. Enable All Sites for Global Contract Purchase Agreements A new feature “Enable All Sites in Global Contract Purchase Agreement” has been introduced to allow Contracts to be referenced from any of the valid supplier sites while creating standard PO and requisitions. FPDS-NG Integration Most U. the integrated suite that dramatically cuts supply management costs. Overview Oracle Purchasing is the application for procurement professionals that streamlines purchase order processing while strengthening policy compliance.4. Planned Purchase Orders and Contract Agreement and Blanket Releases 3.4.S. The Mass Close functionality applies to Purchase Orders that have been fully processed i. 3.1. batch processing has completed.3. Blanket Purchase Agreements.4.1. A new program.2. Release 12. Release This allows broader use of GCPA.4. Additionally.4. such as for suppliers with many valid sites in a single master agreement.2. Oracle Purchasing Release 12. Oracle Purchasing 3.2 3. By default.2.2. PO and Requisition Mass Update Oracle Purchasing includes a new capability to mass update buyer.1 Release Content Document 9 . the profile option is set to “No” to preserve current behavior.3. requester and approver information on requisitions to streamline the process of maintaining organizational changes. and deliverto person information in Purchase Orders (PO) and preparer. 3.

procurement users will only be allowed to view and update procurement documents that are related to a project on which the user has an active role. project level security is being introduced in Oracle Purchasing. Project Security within Oracle Purchasing It is common in project-centric industries like Engineering and Construction for buyers to be assigned to projects rather than to commodities or item categories. a list of web services for that business entity along with the description of the web service. change modifier rate. When the new security option is enabled. By clicking on the Business Entity in the Integration Repository.4. Query Purchase Order. and streamlined supplier communication on prices. and Update Requisition.4. Query existing manual modifiers and apply them to a Purchase Order and Global Blanket Purchase Agreement unit price. the following web services are provided for Purchasing: • Purchase Order: Cancel Purchase Order. 3. Delete Requisition. Buyers only have authority to transact on behalf of the projects to which they are assigned. To help enforce this business rule. and Update Purchase Order Requisition: Create Requisition.3.3. This feature has a prerequisite of Oracle Projects. Change the modifier rate and apply changes to PO or Global Blanket Purchase Agreement Line.2. increased flexibility for buyers to price an order.1. Note that these support requisitions in iProcurement as well as Purchasing. you can view a full description. Create Purchase Order. Oracle Purchasing users can now: • View the pricing modifier information for a purchase order and/or Global Blanket Purchase Agreement line and view the pre-calculated price adjustments applied by the price engine. These web services are cataloged in the Oracle Integration Repository and can be browsed though Oracle Integration Repository Browser Interface under the respective product family node. Procurement Web Services – Purchasing This feature exposes business logic contained within user forms through Java APIs. Delete Purchase Order.also provides greater transparency to the means by which a price has been determined for orders and agreements. Query Requisition. Manually enter a price modifier. • Oracle E-Business Suite Release 12. 3.2. Approve Purchase Order.3. • • • These new features provide an accurate view of pricing information to the buyer. As part of 12. and recalculate the price.1 Release Content Document 10 . The description of parameters can be viewed from the xsd definition of the service available via the generated wsdl.

Now in Release 12. regulatory duties and taxes and helps them to determine the landed cost of the material for transactional purposes. this functionality has been extended to ‘Shop Floor’ destination Purchase Orders. Therefore. the available funds must be checked and reserved against the available budget for the specified account code combination. maximize profits. state. Release 12.4. This integration allows purchasing users to simulate the Landed Costs at the creation time of purchase orders.5. the integrated suite that dramatically cuts all supply management costs.1. 3.1 Release Content Document 11 .3. such as municipal. Purchasing will support encumbering funds for Purchase Orders generated from eAM (with a ‘Shop Floor’ destination) during the approval process. Overview Oracle Services Procurement is the application that enables complete control and oversight for services spending. prior to approval of any purchasing document.1. It is a key component of Oracle Advanced Procurement.4. Oracle Services Procurement 3.4. This enhancement is key for budgetary control. Oracle Services Procurement further streamlines all aspects of the acquisition process for complex services including: • • • Negotiation of service contracts with emphasis on terms related to contract financing and progress payment arrangements Tracking of work progress against agreed schedule in the contract Processing of payment requests Oracle E-Business Suite Release 12. provincial and federal government organizations are required to encumber or reserve funds that have been committed to a supply purchase order. handling fees.1. where the distributions will be created under WIP transactions.4. increase competitiveness. and ensures that complex trade activities are compliant with regulatory mandates. All public sector organizations. allowing better procurement decisions based on the estimated Landed Cost of the items.3 3. Landed Cost Management (LCM) Integration Oracle Landed Cost Management gives organizations financial visibility into their extended supply chain costs including transportation. This allows organizations to have better control over procurement costs. the implementation of encumbrance reversal for SCM was limited to Inventory and Expense Receiving transactions.4.2.1. Asset Lifecycle Management (ALM) Integration In EBS Release 12.2. 3.

1. Overview Oracle Sourcing is the enterprise application that improves the effectiveness and efficiency of strategic sourcing. Oracle Projects – Work Confirmations The workflow for work confirmations.2.5. Oracle Sourcing creates immediate savings through rapid deployment. 3.5.6. is more flexible and supports additional ways to record and display progress.5. and ensures long-term savings with consistent execution and compliance. a new PO line is automatically created.1 is focused on customer driven enhancements delivering greater flexibility for time reporting and contractor assignment. cutting processing costs.5.1. government organizations and some private sector enterprises often follow a formal two stage negotiation process. organizations can significantly improve the acquisition process of this important spend category.By supporting real time online collaboration involving key stakeholders throughout the lifecycle. Oracle continues to enhance and streamline the workflow for Contingent Workers by: • Allowing multiple PO and PO lines to be associated with each assignment so that when workers are extended and a new requisition is added to an existing PO.6. Key benefits include: • • On a work confirmation for a PO. Release 12. Enabling workers to charge time to multiple projects referenced on a PO line associated to the workers HR assignment. 3. in Release 12.1. Oracle Sourcing enables buyers to source more of the organization’s spend at lower total cost.1.1 Release Content Document 12 . Release 12.2 3.2. as absolute amount or percentage Users now have the complete visibility to the progress as they can view the absolute and percentage values for both incremental and cumulative progress.1. the integrated suite that dramatically cuts all supply management costs. It is a key component of Oracle Advanced Procurement. Two Stage Evaluation of RFP In certain global markets.2.6. Time Reporting and Contractor Assignment Flexibility For Services Procurement. users now have the ability to enter incremental or cumulative progress values.1.1. Release 12.2. The two stage negotiation process requires the submission of bids from suppliers that can be evaluated based on technical Oracle E-Business Suite Release 12. 3. Key capabilities included maximizing preferred supplier savings.1 3. Oracle Sourcing 3.2. Release 12.1. 3. eliminating over-billing and providing visibility into services spending. • 3.

1 Release Content Document 13 . the buyer can then complete the surrogate bidding process for those suppliers not carrying out their own bidding.2. During the first stage. Oracle Sourcing Release 12. or offline review purposes. Supplier Response PDF Organizations often have the need to keep a physical record of a supplier’s bid response for audit.6. By adding support for two stage RFP in Oracle Sourcing.6. it is short-listed for placing the purchase order or contract. which allows suppliers to print the PDF for draft and submitted bids. Enhanced Spreadsheet Support In Release 12.4.1. bid details on behalf of a supplier(s).2. Two Stage RFQ – Surrogate Bids The new two stage RFQ process also includes Surrogate Bidding support.6. In addition.2. 3. The buyer is able to enter the commercial terms provided by a supplier to enable scoring for the commercial round to be completed. Oracle E-Business Suite Release 12. organizations can help ensure a more impartial evaluation of supplier bids based on the independent evaluation of the technical capabilities and then the commercial terms of a supplier’s bid. reference. Oracle Souring provides an enhanced XML spreadsheet format to support a standard look-and-feel and streamlined usability of the spreadsheets for supplier response creation and analysis/award. buyers can print the supplier bids allowing buyers to review responses offline or to save for their internal records. Once all of the supplier bids have been received.2.and commercial aspects separately to help ensure fair evaluation of supplier bids. the commercial part will remain sealed. allowing a buyer to enter. Evaluators can then analyze the commercial aspects (such as price and delivery terms) for only those bids passing the technical stage. In Oracle Sourcing.1 adds the ability to generate a PDF version of a supplier’s response. commercial aspects remain sealed so that they do not influence the decision making process. in stages.3. organizations can now evaluate suppliers’ bids in two independent stages based on the technical and commercial parts of the bids. 3.1. During this stage. their bids will be short listed for the commercial round. Upon approval of the quote. 3. the buyer is able to enter the surrogate quote with all the required technical details but without price information. Buyers and suppliers can download all the information in one single spreadsheet. During the commercial round. technical scoring is done against the requirements and attributes in RFQ. The first stage includes the technical evaluation of all responses to questions and parameters pertaining to the technical aspects that are used by the sourcing organization to evaluate the technical feasibility and capabilities of the suppliers. For those suppliers that score well in the technical round.1. simplifying the loading and maintaining of spreadsheets for a negotiation. For bids that fail the technical evaluation.

Oracle. All rights reserved. Analysis – Lines Overall Savings Calculated Instantly Side-by-Side Bid Comparison Perform What-If Analysis Award and Savings Amount per Supplier Calculated Instantly 4 Copyright © 2006. Fig.Response – Lines Line Filter Bid Total Calculated Instantly Link to Scoring Worksheet Predefined List of Values 2 Copyright © 2006. 1: Line Level Response for Suppliers The spreadsheets for supplier response creation not only has an improved and user friendly look and feel.1 Release Content Document 14 . The enhanced spreadsheets will allow buyers and suppliers to enter the data more efficiently and reduce the number of errors during data entry in the offline environment. but it can provide immediate feedback to suppliers through the robust formulas used to calculate scores. Oracle. 2: Buyer Analysis of Bid Responses from Suppliers Oracle E-Business Suite Release 12. even when they are not connected to the system. thus improving the overall user experience during the process. Fig. All rights reserved.

the new formula utilizes the award quantity to distribute the fixed amount cost factor resulting in a more accurate award amount calculation. Buyers can select whether they want to have price breaks. Whereas before Oracle Sourcing used the response quantity to calculate the per unit total cost. The performance of the countdown clock is also optimized so that unnecessary use of network bandwidth is minimized. suppliers can create their own price tiers when they submit a bid. 3. Release 12. the countdown clock will help to promote more competitive behavior among suppliers.1 Release Content Document 15 . Buyers who monitor the negotiations from Live Console will also be able to monitor precisely how soon the negotiation will be closing. government organizations and some private sector enterprises often follow a formal process of taking EMD Oracle E-Business Suite Release 12. Users can define quantity based price tiers when creating negotiations for Blanket Purchase Agreements.2. or they can provide their own price tiers. Suppliers will know the exact amount of time left to create and submit their bids or quotes. buyers can define the quantity range and the target price for each tier within a line. Countdown Clock In fast-paced auctions. quantity based. 3. or no price tiers in the negotiation.6. Buyers can easily view totals and savings.2 3.6. When price tiers are enabled. The award price is based on the tier that corresponds to the award quantity assigned to each supplier. if AutoExtend is triggered). Quantity based price tiers allow buyers to specify different price points for each quantity range on negotiations with standard purchase order. the countdown clock will apply to additional negotiation types of RFQ and RFI. conduct whatif analysis of different award scenarios. Buyers who monitor supplier activities will also see the time ticking down without manually refreshing the page.2.6. Similarly.1.1.2. Price Tier Enhancements Suppliers have flexibility to offer different unit prices depending on the volume of business that the buyer is willing to commit for a given product or service.6. In addition to auctions. Earnest Money Deposit In certain global markets.3. Typically. blanket or contract purchase agreement outcomes.5.7.6. This enhancement improves the calculation of the per unit total cost when fixed amount cost factors are used and the buyer awards a supplier a quantity that is either equal to or lower than the response quantity. a supplier will provide preferential pricing for a larger volume purchase. Suppliers can respond to the tier structure defined by the buyer.Buyers also have a more powerful tool to conduct analysis of supplier responses and make smarter award decisions. 3. The countdown clock updates automatically if there are changes in the negotiation close date (for example. 3. particularly in APAC and EMEA. Cost factors operate under one of these three pricing basis: (1) per unit cost (2) percentage of the unit price (3) fixed amount for the line.3. Cost Factor Enhancements Cost factors allow buyers to model the total cost of a product or service.6. and view side-by-side comparison of all elements of supplier responses.

and customers will not have to rely on processes outside the application to complete their sourcing negotiations. This EMD amount is usually refunded after the negotiation is completed. Bank Guarantee EMD is received by the EMD Administrator. there is a need to capture the name of the business owner of the negotiation or in the case where the owner/sponsor is separate from the person running the negotiation. Requester Field in the Sourcing Header At times. The requester field is available in the negotiation header (RFI.6.(Earnest Money Deposit) from their suppliers. d. Also. 3. depending on the business policies. The default value is the buyer. Oracle Sourcing supports various EMD payment methods. There are reports available for the buying organization to validate the EMD status and details for different negotiations and suppliers. or refund or forfeit the EMD amount. For customers not using Oracle Financials. A supplier. has to pay the EMD amount to the buying organization in order to participate in any Sourcing negotiation. RFQ and Auctions).1. e. a new responsibility made available for EMD transactions.3 3. This feature in Oracle Sourcing ensures that the end-to-end sourcing process for the buying organization can be performed using Oracle Sourcing application. but it can be updated as shown in the screenshot below.1. Corporate EMD is a practice where a supplier deposits a large amount with the buying company and the EMD is adjusted against this amount. There is an out-of-the-box integration with Oracle Financials. or can be paid online by the suppliers (Corporate EMD). The EMD Administrator can exempt a supplier from paying EMD. This shortens the sourcing cycle which otherwise can lead to delays in receiving and returning the EMD amount and affects the productivity of buying organization due to manual checks and coordination. Oracle E-Business Suite Release 12. b.6.4. forfeit and refund of EMD can leverage Oracle Receivables and Oracle Payables.4. namely: a.1 Release Content Document 16 . Buying organizations can leverage these capabilities to ensure the supply base is seriously interested in providing a competitive bid. all EMD related information is retained in the application which can be leveraged for future reference and audit requirements. so that the receipt. unless exempted. there is a non-integrated EMD deployment process where the company can still use the EMD feature in Oracle Sourcing. c. Cash Check (Cheque) Demand Draft Corporate EMD. Release 12.

1 Release Content Document 17 .2. by default. Headers attributes are of two types: a) Visible to Buyers only (who have access to negotiation) and b) Visible to both the buyer and supplier. buyers have a need to provide additional information on the header page. in this case the context additional supplier information selection displayed the contact address. is not available in the application and can be made available though personalization. 3. contact number and budget sanctioned attributes. These fields can be used to convey additional negotiation related information to the buyer and supplier community. there are two DFFs in the negotiation header page which helps to capture these attributes: Additional Header Attributes (Buyer Only) Additional Header Attributes (Buyer & Supplier) Fig. by default.6. are not available in the application and can be made available though personalization Oracle E-Business Suite Release 12. 3: Requester Field in the Sourcing Header Page Please note that the field. Please note that the DFFs. For example. etc. Descriptive Flex Field (DFF) in Oracle Sourcing Header Often. 4: Descriptive Flex Field in Oracle Sourcing Header Page The buyer can create different contexts which will control the different attributes displayed. for example. As shown in the figure below. final project approver.4. information on contract value.Fig.

1. Oracle is giving customers the information they need to make better tactical decisions and is giving them early insight into their outstanding liabilities.7. wholesale distributors and customers require this functionality and have modified their systems to give some visibility into this today. it gives an organization better and early visibility into what their potential liabilities might be.1 3. Then. the additional cost Oracle E-Business Suite Release 12. Additionally. From a strategic sourcing perspective. Landed Cost Management (LCM) Integration Customers sourcing overseas (25% or more) find that the item cost (procurement price) accounts for more than half of the cost to acquire the product. Oracle has tried to give users some visibility into these potential costs. When faced with an upgrade.. It can be challenging to achieve maximum savings while meeting such business policies.7. they will have to migrate these solutions to R12 or will need a solution like LCM. the engine may find an acceptable solution. once they prepare to receive an item.” “no single supplier should get more than 80% of the total business.1 Release Content Document 18 . many of our customers don't want to approve a PO without having visibility into this.6. buyers often must strive to meet multiple purchasing goals and business policies. In fact. This results in better and faster award decisions. By automatically relaxing a constraint.2.3. they can use this estimate as basis for that receipt. Overview When allocating business to suppliers. The concept of setting up priorities for constraints will help the optimization engine identify which constraints can be automatically relaxed when. buyers will be able to analyze the cost of a particular constraint. 3. users need the same and even more refined insight. 3. Release 12. we observed that virtually all retailers. Buyers can now determine a constraint priority for award optimization by indicating the importance of a given constraint. For bigger ticket items (heavier or bulkier goods). saving the buyer time and avoiding an iterative process for optimizing.4. users can run through a number of different scenarios and compare the potential output before firming up the estimate.7. The integration with Landed Cost Management (LCM) allows them to make more tactical decisions about how to source an item. particularly if there are many line items and a large number of competitive bids. Buyers typically want to evaluate by how much an award decision results on a more expensive award because of a business constraint (i. Sourcing Optimization Enhancements Sourcing Optimization has several enhancements to assist buyers in making optimal award decisions.1. With LCM more closely tied to Procurement.1. otherwise. no solution exist.2. however.e. while adhering to policies and goals defined on the scenario. Finally.3.” or “at least half of the business should go to incumbent suppliers”. Upon optimizing a scenario. at PO creation time. For example: “award at least 10% business to minority-owned suppliers. Oracle Sourcing Optimization can help by allowing the buyer to create scenarios that can be automatically optimized to determine the best award. Oracle Sourcing Optimization 3.7.

8. Oracle Sourcing Optimization allows buyers to enter the incentives given by suppliers. Oracle Sourcing will now simplify the cost of constraint analysis by allowing buyers to select the constraint that they want to evaluate and returning the cost associated to the selected constraint. Award quantities specified in the award recommendation are used to assign the correct unit price to the resulting purchasing documents.2. 3. the additional savings need to be factored in the award scenario analysis.imposed by a business constraint). Oracle Spend Classification – New Product 3. How much business a buyer awards to each supplier determines whether additional rebates apply.1. buyers can determine how much more expensive is an award decision because of a business constraint. Buyers will select what scenarios they want to display side-by-side and Oracle Sourcing will show award amounts and savings for those scenarios.7. rebates that occur when a predetermined level of business is reached). Cost of constraint refers to the difference in price (or cost or score) that occurs in an optimized award solution vs. In addition. With the cost of constraint feature. buyers can now indicate award allocation not only in terms of award amount.3. Price Tier Optimization Suppliers typically have their own price tiers that meet their business realities. a fixed amount incentive can be specified to account for a signing or transition bonus.1 Release Content Document 19 . and adds the amount to the total savings in the award scenario.g. Overview One of the biggest benefits from business intelligence applications that analyze spend derives from the consolidation of spend data from multiple sources. With Quantity based constraints. 3.. what would be achievable were that constraint removed. Buyers will be able to effectively see the before and after effects of changes made to the optimization criteria and/or weightings when reviewing optimization results.2. 3. Oracle Sourcing Optimization uses these values to calculate the additional savings yielded by the incentives.7. therefore. When Oracle Sourcing Optimization is used to find the best award scenario in a negotiation. This process is greatly streamlined by the use of Oracle Sourcing Optimization. These additional savings through incentives may directly impact the award decisions that buyers make. Buyers can enter the current total spend and rebate percentage for each supplier.. and the rebate structure for any extra award made on top of the current spend. Analyzing dissimilar tier structures is a very complex and time consuming activity. Whether from many Oracle E-Business Suite Release 12. Buyers can then use the information to make more informed award decisions.g. The incentives can be in the form of a fixed amount (e. Supplier Incentives Suppliers often provide incentives to increase the level of business transacted with the buying organization. 15% of all units should be awarded to minority owned suppliers allowing for more control over the optimization constraints. signing bonus). but also in terms of award quantity. For example. Buyers will also have the ability to view award optimization scenarios side-by-side to compare the results of different optimization approaches. or both. a tiered rebate structure (e.2.8. and. the optimization engine analyzes all combinations of price tiers submitted by suppliers to determine the best award recommendation.

Once the knowledge base has been built. 9. Spend Classification processes the data contained in P&SA and predicts appropriate category information for each invoice line.6 Spend Classification is integrated with Oracle Procurement and Spend Analytics 7. and other sources. a majority of spend data is not categorized.0. One of the reasons is an emphasis on recording accounting information. resulting in poor visibility to identify saving opportunities. it reassigns categories in P&SA where it has a high confidence rating of a successful match. It processes data from OBIA tables for invoice. Oracle E-Business Suite Release 12. which often reveals little of the purchasing category. categorized incorrectly. a component of Oracle BI Applications. Fig. legacy. This leads to a skewed picture of the breakdown of spend. or just one. ensuring the knowledge base is performing classification at adequate levels.2.9. In most organizations.1. including Oracle E-Business Suite 11i9. or categorized as miscellaneous. the product can be used to classify spend data residing in P&SA.1. Integration with Procurement and Spend Analytics 7.9. it is generally true that spending data is inadequately categorized for use by procurement.sources. and requisition information.6 (P&SA). Oracle Procurement and Spend Analytics (P&SA) includes adaptors that load data from many sources. Oracle Peoplesoft Enterprise 8.1 Release Content Document 20 .8. 11i10. 5: Oracle Spend Classification. Features in Spend Classification allow data stewards to test and validate the learning performance. Classification Summary Page 3. To be able to do the predictions.2. purchasing. R12. After Spend Classification predicts purchasing categories for spend lines.9.8. Spend Classification uses existing categorized data from PS&A to create a knowledge base. Release 12.2 3.

Oracle E-Business Suite Release 12. The product allows the users to enrich the knowledge base with incremental data as data evolves to increase classification accuracy over time. Pages provide dynamic sorting of data. Advanced users may use Data Mining to create any of the alternate supported Data Mining knowledge bases and then reference these knowledge bases from Spend Classification to process future spend data. 6: Oracle Spend Classification.3.8.2. the Excel file can be uploaded into OBIA. for its user interface.8.2. Spend Classification uses Oracle Data Mining as its engine for predictive analytics.1 Release Content Document 21 . Classification Details Page 3.8. Users can drill down to segments of data directly from various Key Performance Indicators (KPIs) defined for classification results.2.8. and filters.3. Easy to Use User Interface Spend Classification uses Oracle Business Intelligence Enterprise Edition.4.5. If manual updates are made in Excel. Knowledge Base Creation and Incremental Updates Spend Classification uses a sample of existing and accurately categorized spend data to learn successful categorization based on a wide range of an organization’s data. 3.2.2. 3. Fig. It allows users to export all data to Excel in order to do offline processing. Export and Import to Excel Spend Classification integrates seamlessly with Microsoft Excel. Multiple Knowledge Bases Spend Classification provides functionality to create a standard knowledge base that can predict categories at various levels of the purchasing category hierarchy. this might be used in cases where the user decides to manually reassign categories. a component of Fusion middleware. For example. column level search.

Overview Many organizations track supplier data in multiple ways. In-line Commodity Classification At times.1.1.7. requesters creating Non Catalog Requests will have the option of category being predicted for the purchase being made. there is a high likelihood of it not being classified into an existing commodity hierarchy. Ability to Classify Data into Multiple Taxonomies Spend Classification can categorize spend data into different category taxonomies. In R12. Supplier Hub can be used by both organizations that need to aggregate supplier data from a range of application systems and also by those running a single EBusiness Suite instance. Category taxonomies that are supported include: • • • The category setup in a source financials system UNSPSC Three additional custom category taxonomies There is no restriction on the number of levels defined for a category hierarchy.1 onwards. aiding downstream spend analysis. enterprise business processes and decision support systems.2. Oracle Supplier Hub – New Product 3. Oracle Supplier Hub is a new application that provides a portfolio of Master Data Management tools to enable organizations to better manage their supplier master records centrally. Supplier Hub is a complementary solution to Supplier Lifecycle Management (SLM). 3. It can be implemented to extend the SLM capabilities by providing comprehensive quality Oracle E-Business Suite Release 12. requesters may need to order off catalog and create a Non Catalog Request. driven by the needs of different business units or unconnected business processes The result is disparate supplier definitions that make it difficult to have a complete and coherent summary of each trading partner. After the requester clicks on Add to Cart they will be able to view a “suggested best fit” category with a list of categories that could be alternate possibilities. and provides the resulting "single point of truth" supplier data as a service to consuming applications.9. Built on the foundational technology used to support mastering of customer information.2. This increases misclassification of spend information. The same window can also be used to parse the complete Category hierarchy. This capability allows even unstructured requests to be categorized appropriately. lower compliance and internal controls. contract leakage.3. The requester merely picks the purchasing category and continues checking out. 3.8. When requesters describe the purchase.6. provides cleansing and third party enrichment tools for effective data management. Supplier Hub consolidates supplier information from disparate systems and business lines into a single repository. This approach uses the Oracle Spend Classification in real time to assess the category of what the requester is ordering.8.1 Release Content Document 22 .9.

Supplier Lifecycle Management also allows key stakeholders to identify and Oracle E-Business Suite Release 12. Utilizing these capabilities. Oracle Supplier Lifecycle Management – New Product 3. Overview Oracle Supplier Lifecycle Management (SLM) is a new application that provides an extensive set of features to support the qualification. 3.1 Release Content Document 23 . SLM also enables organizations to gather feedback from key stakeholders as part of an overall supplier performance tracking process.2. Deployment of Supplier Hub enables organizations to have a consistent understanding of the trading partners that they use to procure the various goods and services required to support their business. Once a supplier has been approved.1+ Oracle Supplier Hub provides the following set of features: • • • • • • • Supplier Master Profile Supplier Classification Management Supplier Hierarchy Management Supplier Data Import and Source Management Supplier Data Quality Management Supplier D&B Data Enrichment Supplier Data Publication and Synchronization Full details about the capabilities of the Supplier Hub application can be found in the Master Data Management Release Content Document.1. Supplier Lifecycle Management enables any and all of the peculiar information required to assess a prospect to be gathered and then routed through the organization to ensure efficient review of the supplier’s credentials. to ongoing maintenance and possible obsolescence. In addition. through qualification and onboarding. organizations can exercise proper control over suppliers throughout the lifecycle of their relationship with the organization.management functionality to cleanse the underlying supplier identity information that has been enriched through the SLM tools.1. This clarity is essential in order to be able to carry out effective analysis of spending patterns so that appropriate tactical and strategic decisions can be made about specific supplier relationships and overall company procurement policies. A key factor in improving the quality of an organization’s supplier master file is to establish proper processes to formally qualify different types of prospective suppliers. from initial discovery. Release 12. profile management and performance assessment of suppliers as well as tools to track ongoing supplier compliance with corporate and legal requirements.10.9. 3.10.

3.10. Supplier Lifecycle Management provides a repository for storing information from disparate sources and then enabling a 360° view of the data to be provided to the key business users within the organization. Business/Diversity Classification. Address.2.10. modified and then re-imported to enable mass data changes to be handled in an efficient manner.10. As well as access to basic supplier information such as Address. Supplier Lifecycle Management extends existing iSupplier Portal functionality to allow supplier users to be given online access to maintain a wider range of their own profile details.2.2. view key documents that have been included in the supplier’s profile and check the status of Deliverables that the supplier is required to provide to maintain their status within the system. Release 12.10.2. The supplier user can maintain standard company profile details. Supplier Profile Management (including Self-Service) Most organizations maintain a team of administrators to deal with the flow of administrative updates from trading partners containing changes to their company profile details. Contact.1. 360° Supplier View One of the challenges with managing supplier information is that the pieces of information gathered about a supplier can be stored in a variety of applications and systems.1+ 3. Changes they provide can then be reviewed by internal administrators before approval.track critical compliance documents and attributes that need to be gathered from suppliers on a periodic basis in order for the two parties to maintain an active business relationship. 3. Products and Services category and Banking Details.1 Release Content Document 24 .users will be able to review qualification and on-going evaluation details for the supplier.1. To make this process more efficient. Supplier Search To assist administrators charged with managing the vendor master for their organizations. The profile information retrieved from the search can be exported in spreadsheet format. Suppliers are also able to access qualification and on-going compliance information that they are required to provide to the buying organization to maintain their status in the system. Business Diversity Classifications.3. The Advanced Search criteria and display formats can be personalized both at the administrator and business user level. The Advanced Search allows any of the standard and extended profile attributes to be used as search criteria and for the results to be viewed using multiple display formats.2. Contacts. 3. General Classification. Product and Services category and Banking details . Advanced Search capabilities enable them to efficiently find and retrieve supplier records. Oracle E-Business Suite Release 12. This data disbursement can hamper organizations as they look to review supplier performance or to comply with audit requirements.

Once a prospective supplier has registered. their request is routed through an approval hierarchy for review. Supplier Lifecycle Management utilizes User Defined Attribute technology to allow administrators to add an unlimited range of attributes to the supplier definition and to group these into logical Profile sections. this is a poorly coordinated manual process that requires tasks to be sequenced and tracked across multiple departments as credit checks are carried out. Product and Services category. Supplier Lifecycle Management leverages the Approval Management Engine to allow companies to generate customized approval flows for processing supplier requests and Oracle E-Business Suite Release 12.10. administrators are able to add descriptive text to help explain the purpose of the attribute.2. administrators can also establish RFI documents that allow various profile and compliance information from the prospect to be captured using a questionnaire format.10. many companies now use their corporate websites to have potential suppliers register their interest in establishing a business relationship.1 Release Content Document 25 . Banking detail and any of the Extended Supplier Profile attributes. 3. Fine-grained access control tools allow administrators to manage which users can have access to the individual attributes in the extended set of profile details. This allows the organization to get key information from the supplier that can be used to qualify whether they are a suitable trading partner. customer references called. buyers can pre-register and send invitations to prospective suppliers.5. companies often support multiple channels for receiving new supplier requests and then follow a very limited or haphazard procedure to review supplier credentials. The registration form can be configured to include Address. In addition to the walk-up process. Supplier Lifecycle Management provides a supplier registration feature that can be configured by business unit to gather the data elements required to assess each prospective supplier request.2. requesting them to provide additional details for pre-qualification and approval using the self-service capability. To support sophisticated and conditional qualification procedures. quality standards reviewed and production facilities inspected.3.10. Contacts. Oftentimes. and return to it at a later date. The prospective supplier can also upload attachments as part of their registration packet. Qualification Management For many organizations. In an effort to ensure that “business gets done”.2. Typically. Business Classification. prospective suppliers can save their draft registration request at any time. this is the sort of information stored in paper-based systems that are maintained by different departments throughout an organization.4. Extended Supplier Profile To better understand the capabilities of suppliers in key product categories. Registration and On-Boarding of New Suppliers To help manage the stream of inquiries that come from supplier prospects interested in doing business with the buying organization. 3.6. To support complex or lengthy supplier registration. In addition to the attribute name. This is particularly important when sensitive information is stored in the profile and access needs to be restricted to appropriate users either internally or at the supplier. the processes for assessing new supplier relationships are cumbersome and inefficient.

such as Procurement. Supply Chain. 3. 3.2. Performance Evaluation Companies recognize that employees who interact with suppliers can provide insightful feedback on “soft” performance metrics for the supplier. As part of the approval routing. Supplier Lifecycle Management will allow administrators to generate internal RFI documents that can be sent to key personnel within the organization to evaluate and score specific aspects of a supplier’s overall performance. SLM includes the qualification information collected from the supplier as well as incremental feedback provided by business users assessing the request. Manufacturing. The buying organization can apply business rules that will use the details in the request to customize the approval flow so that the appropriate approvers can look at the details. this is also an important process for a lot of nonregulated organizations that are looking to meet Corporate Social Responsibility standards that they have set for themselves. 3. Supplier Lifecycle Management provides tools to allow notifications to be selectively communicated to a company’s supply base. Oracle E-Business Suite Release 12.10.7. The details for each new supplier can be passed to multiple stakeholders across many departments within the buying organization. to combine their opinions into a rating of how well the supplier is doing.8. This will allow stakeholders in a diverse range of departments.1 Release Content Document 26 . Once a registration request has been approved or rejected. Supplier Notifications To assist with supplier communication. Following approval.registrations. Approvers are notified when they are required to review a request and can check graphically the overall approval status for a given request.2.10.9. Being able to canvas opinion from these key stakeholders and then use the information to help drive an overall assessment of a supplier’s performance is a key part of any collaborative program intended to help improve supplier relationships. Compliance and Profile Audits Whilst there are regulatory requirements for some types of organization to keep key supplier profile elements up to date.10. They can define key compliance information that is required from suppliers and then store the feedback provided by the supplier into the supplier master profile record. deliverables like Insurance certificates and Code of Conduct documents to be stored and Products and Services information to be recorded within the Qualification packet. Supplier Lifecycle Management enables administrators to utilize the RFI tools to gather and manage supplier compliance and profile information that are required on an anniversary basis. The feedback gathered about the supplier is stored in the supplier profile allowing performance trends to be tracked and risk to be effectively managed.2. the qualification details provided by a supplier become part of their profile that can be updated at a later date. Design and Legal. the supplier is automatically notified by email. Finance. Quality. This allows basic supplier profile and qualification details to be gathered.

UTF-8 Support UTF-8 message encoding enables Oracle SN to route messages containing multibyte languages. Oracle E-Business Suite Release 12. Instead. PO Acknowledgments. Production Routing Controls Users can restrict specific trading partners from exchanging production messages. Version 5.1. PO Change Requests. 3.0 Oracle SN 5.11.11. Oracle SN allows each partner to utilize a Test Hub to send and receive sample documents to validate their connection Supplier Punch-in access to multiple customer Oracle iSupplier Portal applications • • 3.1 Release Content Document 27 .Administrators enter notification information and then use search tools to generate the list of suppliers that are to receive the message.1. 3. Buying organizations are able to achieve quick cost savings by leveraging the community of enabled suppliers on Oracle SN where thousands of XML transactions are exchanged daily.2.3.2. Advanced Shipment Notices and Invoices that can be automatically converted between OAG and cXML formats Self-Testing: Trading partners do not have to coordinate connectivity testing. Users no longer migrate account setup between hubs. Overview The Oracle Supplier Network (Oracle SN) enables Oracle Purchasing customers and their suppliers to accelerate collaboration and deliver significant efficiency savings by conducting business electronically.11. Oracle Supplier Network 3. An Oracle-run service utilizing an Internet-based hub transaction model. 3. • • Single Connection: Oracle SN is a messaging hub so each organization need only setup a single connection to get access to the community of buyers/suppliers Multiple Document and Transformation Support: The buying organization and its suppliers can exchange Purchase Orders.11. Instead users control separate transaction delivery parameters centrally for routing over the Oracle SN Test Hub and the Oracle SN Production Hub.0 is the most recent release and offers a range of new features. Consolidated Hub Administration Streamlined account administration tools allow administrators to manage all the messaging configurations for both their test and production transactions from a single account login. Oracle SN provides a wide range of features that are designed to ease the challenges of electronic messaging. 3.2.

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