R12.x Procurement R12.x Procurement: New Features For Your Indirect Materials New Features For Your Indirect Materials

R12.
x Procurement
New Features for your Indirect Materials
March 20th, 2012

Fujitsu America, Inc.
Mike George
Director, Consulting – Oracle Practice
INTERNAL USE ONLY

Agenda
Introduction
New Indirect Procurement Features & Benefits
AME Case Study
Catalog Administrator Case Study
Q & A
INTERNAL USE ONLY

2
Fujitsu / Oracle Relationship
Oracle Diamond Partner
32+ Specializations – Most of any partner
1 of few global end-to-end solution providers
Systems Integration
Middleware
Hardware
Global Reseller Agreement
20+ years strong and strategic relationship with Oracle
Supporting Quote: “Oracle’s partnership with Fujitsu has never been
stronger,” said Larry Ellison, CEO, Oracle Corporation. “We are entering a
new phase with Fujitsu, aligning our engineering and worldwide distribution
efforts with a focus on high-performance, highly-reliable systems.” –
February 9, 2011.
Original member of Fusion Inner Circle
Part of Oracle Fusion Apps Partner Ramp Up Program
INTERNAL USE ONLY
3 Copyright 2012 Fujitsu America, Inc. All rights reserved.
PO Price Maintenance for Direct
Materials
R12.x Procurement
Select Productivity Features
INTERNAL USE ONLY

4
Professional Buyer’s Work Center
Feature Description
Requisitions
View and Process Requisitions into Orders or Sourcing Events
Orders
Create and Manage Purchase Orders
Agreements
Create and Manage Global Agreements
Deliverables
Manage Procurement Contract Deliverables
Negotiations
Access Oracle Sourcing
Suppliers
Create and Manage Supply Base
INTERNAL USE ONLY Copyright 2012 Fujitsu America, Inc. All rights reserved.
5
Multi-Org Access Control (MOAC)
Feature Description
OLD PROCESS
Application Application Application

Responsibility A Responsibility B Responsibility C
Operating unit X Operating unit Y Operating unit Z
NEW PROCESS
Application
Responsibility A
Operating unit X Operating unit Y Operating unit Z
6
Document Printing Enhancements
Feature Description
XSL-FO Purchasing
Layout
XML Publisher
PO Output
Purchasing New in
XML Release 12.x
11.5.10
New in Purchasing
XSL-FO Layout
Release 12.x
XML Publisher
PO Output
in Multiple Formats
Purchasing
XML
Release 12
7
Emailing To Supplier Attachments
Feature Description
11i10 and
Attachment Type R12.x
Before
Notes to Supplier
Long/Short Text
Files (e.g. MS Word, Drawings)
URLs
8
Support for Purchasing Contractors
Feature Description
Allow Contingent Workers to Participate in Purchasing
Activities
Raise and Approve Requisitions
Create, Maintain, and Approve Purchase Orders
Receive Goods and Services
New Profile Option

HR: Expand Role of Contingent Worker
Profile Value Description
Allow Contingent Workers to Create and Approve
Yes
Purchasing Documents
Do Not Allow Contingent Workers to Create and Approve
No
Purchasing Documents
9
Requestor-led Purchasing
Feature Description – iProcurement Change Tolerance
Requestor Auto-
Approval Tolerance for
Requisitions
Buyer Auto-
Acceptance
Tolerances for POs
created from
Requisitions
10
Auto-Approval Tolerances for Change Orders
Feature Description
Eliminates need for

Workflow
Customizations
Set tolerances by
document type
New tolerance
attributes introduced
11
iProcurement Change Requests
– Requester’s and Supplier’s changes are routed to the requester’s

approval hierarchy
– PO changes are routed to the buyer for approval
– Bypass approval for changes within tolerances
12
What’s New in AME Approvals?
Parallel Approvals
Several approvers can be simultaneously notified for a given
requisition, thus speeding up the requisition approval process
Support for Viewers
Allows flexibility in keeping a person/role informed of business
purchases and decisions, without requiring a response
Position Hierarchy Support
Allows customers to define approval routing structures that
remain stable even if individual employees leave their
organization or transfer within it
Graphical Approval Path UI Display
Provides preparers and approvers a simple and intuitive
graphical view of the approval chain and requisition status for a
given requisition
13
Graphical Approval List and History
Configurable Rule-Based Approvals (e.g. Projects, Categories, Cost Centers, etc.)

Parallel Approvals
FYI Notifications
Know where your request stands in the approval process
Know how long your request has been in the approval process
14
PO Mass Document Close Process
Purchasing
Mass Close of Purchasing Documents provides the ability to mass close
purchase orders using a variety of criteria and streamline the maintenance
process
15
PO Mass Document Update Process
Purchasing
Mass Update of Purchasing Documents provides the ability to mass
update buyer, approver, and deliver-to person information in Purchase
Orders (and) preparer, requester, and approver on Requisitions to
streamline organizational changes.
16
iProcurement Catalog Management
Sourcing
PBWC Sourcing
Professional PO
Buyer
Award
iP Admin Bulkload / Buyer
Catalog Online External

Catalog
Admin author iP Supplier Sites
Approve
iSP
Supplier
Requester
Definitions:
Buyer - Purchasing user
Supplier - Supplies goods or services to the buying organization
Catalog Administrator - Performs catalog related activities within the buying
organization
17
iProcurement Catalog Benefits
Catalog Management Enhancements:

Buyers can delegate catalog management to
suppliers and catalog administrators
Create/update content online
Bulk-load content with improved error review capability
Summary of all changes prior to submission
Disposition at the line level provides control over
price changes and item availability
Approval, archive and version control
• Reduce the buying organization overhead in catalog management

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

AME Case Study
Company History
Significant growth through acquisitions
Employee empowered workforce – both business and IT
One of Oracle’s largest customers in the CPG industry
19
Requisition Approval Challenges
Support initial organizational rules
Capital Project approvers
Hazardous Material approvers
Streamline approval maintenance for 1500+
Plant / Organization transfers
Job Title challenges
Alignment to Approval Policy
Alignment with Human Resources
Audit Compliance Considerations
INTERNAL USE ONLY

Future Process Flow
INTERNAL USE ONLY

Existing Plant-Level Approvals
Big Thing – Main Problem (Maintenance)
Simplified Amounts ~ Defined by corporate

Simplified People ~ Plant controller dictates authorization levels
Simplified Concept ~ People-based approvals, not Job/Position-based
INTERNAL USE ONLY

Future Plant-Level Approvals
Custom Form / Table to store spreadsheet data

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

Dynamic Approval Group calls custom code
While the custom code is not supported, the method used to call it is (similar to a
workflow modification)
Employee / Supervisor list built based on Requester
Looks to custom form / table to determine when a supervisor is found with
appropriate authority – ignores Job & Positions that constantly change
INTERNAL USE ONLY
AME Success Story – Smucker’s
Description of Initiative:
Post Implementation Evaluation:
Implement Oracle AME to define approval rules for
requisitions • Quality: 5
Business Drivers: • Benefits/Value: 5
Defines approval rules for requisitions by tying • Partnership: 5
approvals to employee name • “Oracle AME allows our Business Systems group to easily
Meets audit compliant needs maintain the approvals tied to requisitioners across the
Aligns to Finance approval policy organization by no longer being dependent on the job title,
Eases approval maintenance burden for 1500+ but the control of the employee name. It provides the
requisitioners necessary audit control/reporting as well as additional
Supports specific organizational rules, such as approval features to support Capital and Hazardous
Capital Projects & Hazardous Materials material.”
- Kristen Birkbeck
Planned: Actual:
• Ties requisition approvals to employee name • Alignment of requisition approvals to employee name
• Reduce time by Business Systems to manage & • Approvals align based on the Finance-approved approval
maintain approvals matrices
• Provide reporting that is easy to use & • Greatly reduced time of maintaining approvals for
understood by multiple groups Business Systems team
• Support ability to route requisition based on • Integration with Capital Projects: Capital Project Lead has
Requestor rather than Preparer visibility & approval over all projects tied to them
• Coordinated & successful testing with integration • Continues to use the employee-to-supervisor hierarchy
partners • AME supports both Domestic & Canada approvals
• iProcurement users trained by 2/21 AME go-live • All expectations of project delivered & met by go-live
date
• Participants: Deb Janda, Linda Kreiger, Craig Wheeler,
Kristen Birkbeck, Milind Pai, Mike Sterle
INTERNAL USE ONLY
25
Case Study
Toyota Boshoku America

Catalog Administrator Case Study
Company History
Pioneer of Just-in-Time Manufacturing
Historical use of custom systems due to complexity
Decisions based on long-term philosophy even at the expense of short-term goals
26
Efficient Business Model for PO
Corporate Sourcing Planner / Buyer Suppliers
Contract Pricing
Contract Pricing is Established (Strategic)

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

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

Purchase Orders automatically generated without additional intervention / manual
processing
Purchase Orders automatically transmitted to Suppliers
27
Procurement Automation
Step 1 Step 2 Step 3 Step 4 Step 5

Create Automatic Requisition PO Create PO
Requisition Document Approval Documents Approval
Sourcing Workflow Workflow Workflow
28
Step 1:
Create Requisition
Create Automatic Doc Requisition PO Create Doc PO Approval
Requisition Sourcing Approval Workflow Workflow
Activity
Select Item
Select Quantity
Select Need-By Date
Select Delivery Information
Sources
Manual Creation
Requisition Interface
29
Step 2:
Automatic Document Sourcing
Activity
Select Suggested Supplier (based on Source Rules)
Select Source Document and Price (based on Approved Supplier List)
Sources
Real-time via the Forms (automated behind the scene)
Automated programmatically via the Requisition Interface
Key Points
Source Document must be Valid (Current and Approved)
No Source Document = Static Price from Item Master (not Supplier-
specific)
30
Step 3:
Requisition Approval Workflow
Activity
Approving the request
Launches the PO Create Documents workflow (automatically creates a
PO from the PR)
Sources
Manual Submission
Automated via Requisition Interface Submission
31
Step 4:
PO Create Documents Workflow
Activity
Verify Requisition Line has a Valid Supplier
Verify Requisition Line has a Valid Source Document
Sources
Automated Workflow Processing
Key Point for Continuing

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

Planning System Procurement
EBS system of record

Contractual Agreements and Pricing
Supplier/Item Sourcing
Planned releases become requisitions
What, when, how many Supplier
Immediate order transmission
36
Requisition to PO Design (Original)
37
Requisition to PO Design (Revised)
38
Root Cause Analysis:
Invalid Source Document
39
Challenge:
Release at Last Approved Price
Maintenance
Not dependent upon special timing of updates
Ability to make multiple changes, save, and re-
work at a later point in time (whether it took 1
minute or 1 week)
Changing one line should not impact the entire
Agreement
Approvals
Provide the ability for the Purchasing Manager
to review changes prior to implementing
40
Catalog (Agreement) Management
Sourcing
PBWC Sourcing
Professional PO
Buyer
Award
iP Admin Bulkload / Buyer
Catalog Online External

Catalog
Admin author iP Supplier Sites
Approve
iSP
Supplier
Requester
Definitions:
Buyer - Purchasing user
Supplier - Supplies goods or services to the buying organization
Catalog Administrator - Performs catalog related activities within the buying organization
41
Catalog Management Benefits
Improve Catalog Management
Reduce the buying organization overhead in catalog management
Buyers can delegate catalog management to suppliers and
catalog administrators
Online catalog authoring for quicker catalog update
Difference Summary to highlight the changes
Version control of catalog data
Streamline catalog creation and management
Catalog perpetually up-to-date and based on real-time data
Changes to catalog content and content security definitions
occur in real-time. No “extractor” type concurrent program are
required to enable catalog content or security modifications.
42
Maintenance Solution:
Introducing Draft Tables
Base Tables How it Works
PO # Supplier Line # Item # Qty Price
1000 Fujitsu 1 f60000 1 $130.00
1000 Fujitsu 2 f61000 1 $60.00
1000 Fujitsu 3 f70000 1 $949.00
1000 Fujitsu 4 f71000 1 $358.00
Draft Tables with Changes

PO # Supplier Line # Item # Qty Price Accept
1000 Fujitsu 4 f71000 1 $357.00
Stores all requested changes and tracks status of acceptance

Interim changes not applied to Base Tables until accepted
(No more GBPA’s in Requires Re-Approval status)
43
Using the Draft Tables:
Catalog Administrator
44
Approval Solution:
Change Acceptance Options
Is Review Required (prior to Workflow Approval)?
Yes (Always)
No (Never)
Sometimes (When Price Changes Exceed Tolerance)
45
Differences Summary
Workflow Notifications
Changes easily identified
• Standard Accept / Reject options
46
PO Difference Summary
Notification Workflow
Auto-
Approval
Tolerances
47
Approval Solution 1:
(No Supervisor Required)
48
Approval Solution 2:
(Supervisor Required)
49
Old to New
Buyer’s Workbench
vs.
Catalog Administrator
INTERNAL USE ONLY

50
Other Considerations and Results
Other Considerations
Catalog Administrator versus Buyer’s Workbench – enforcing usage
• Still need ability to create New (Incomplete) documents
• Restrict ability to update Existing documents (or In Process occurs)
• Manual or Systematic Control with personalizations
Change Order Approval Process
• Approval Limits
• Approval Tolerances for Agreements (new R12 form)
• Supervisor Approval Requirements and Workflow
Results
Manual re-work queue drastically reduced – Saving Time
Orders now processed at correct (last approved) price and
communicated directly from Oracle via iSupplier / EDI
The larger benefit of ERP system acceptance – Oracle works!
51
Case Study
More Information
52
General Information
My Oracle Support / Metalink
PO Information Center (Note 1327702.1)
• Hot Topics & Diagnostics
• Documentation & TOI / RCDs
My Oracle Support Community for Procurement
• News & Announcements
• Discussion Forums
• Procurement Webcasts
• Community Documents
Oracle Diamond Partner – Fujitsu America

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

R12.x Procurement R12.x Procurement: New Features For Your Indirect Materials New Features For Your Indirect Materials

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

R12.x Procurement R12.x Procurement: New Features For Your Indirect Materials New Features For Your Indirect Materials

Uploaded by

Copyright:

Available Formats

R12.

March 20th, 2012

INTERNAL USE ONLY

INTERNAL USE ONLY

INTERNAL USE ONLY

Application Application Application

Operating unit X Operating unit Y Operating unit Z

Operating unit X Operating unit Y Operating unit Z

Files (e.g. MS Word, Drawings)

New Profile Option

Eliminates need for

– Requester’s and Supplier’s changes are routed to the requester’s

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

iP Admin Bulkload / Buyer

Catalog Online External

Catalog Management Enhancements:

• Reduce the buying organization overhead in catalog management

The J.M. Smucker Company

INTERNAL USE ONLY

INTERNAL USE ONLY

Simplified Amounts ~ Defined by corporate

INTERNAL USE ONLY

Custom Form / Table to store spreadsheet data

Standard AME processes and forms used

Toyota Boshoku America

Contract Pricing is Established (Strategic)

Planner / Buyers release from their workbench (Tactical)

Supplier receive and fulfill orders (Tactical)

Step 1 Step 2 Step 3 Step 4 Step 5

Key Point for Continuing

Custom Oracle EBS

EBS system of record

iP Admin Bulkload / Buyer

Catalog Online External

Draft Tables with Changes

Stores all requested changes and tracks status of acceptance

INTERNAL USE ONLY

Oracle Diamond Partner – Fujitsu America

You might also like