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Enterprise sProcurement Enterprise eProcurement

Marc Cagigas Sonia Hunt Mark Peachey “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

Agenda Services Procurement Overview eProcurement What’s New Open Forum – Customer Issues

Enterprise Services Procurement Information Driven Services

Services Procurement – The Next Frontier Goods Services Internal External

Why is services procurement important Service spend averages $1.8B for the typical Fortune 1000 company (11% of revenue or 31% of spend) 50% of IT dollars are spent on external services Outsourcing in the U.S. is growing by 24% annually IT outsourcing is expected to reach $100B by 2005 Average cost to hire a contractor is $4,500 Over 60% of services invoices are inaccurate Outsourcing Research Council

Performance Management Verify that the services rendered are the same as the services requested? Improve contractor performance and requestor satisfaction? Performance Management Verify that the services rendered are the same as the services requested? Improve contractor performance and requestor satisfaction? Procurement Organization Business Pressures - How Do I? Services Management Gain visibility and control of services spend, future commitments, and approvals? Gain visibility and control of services spend, future commitments, and approvals? Ensure that only approved service providers are being used? Ensure that only approved service providers are being used? Services Management Gain visibility and control of services spend, future commitments, and approvals? Gain visibility and control of services spend, future commitments, and approvals? Ensure that only approved service providers are being used? Ensure that only approved service providers are being used? Compliance and Oversight Ensure compliance to master agreement rates, terms, conditions, and service levels? Enforce internal policies and regulatory requirements? Compliance and Oversight Ensure compliance to master agreement rates, terms, conditions, and service levels? Enforce internal policies and regulatory requirements? Supplier Management Minimize invoicing discrepancies and maximize discounts? Ensure competitive rates within established budgetary limits? Supplier Management Minimize invoicing discrepancies and maximize discounts? Ensure competitive rates within established budgetary limits?

Business Challenges Service Requestors Manual, Paper - Based Processes Service Providers Service Requests / Purchase Orders Time Cards / Service Receipts Global Contracts / Master Agreements Quotes, Invoice, Expense Reports Lack of Visibility Contract / order / regulatory compliance Expenses vs. budget Service delivery details and management Performance metrics Informal ProvisioningCompliance Master agreement rates Project status and completion Regulatory risks Off-contract spending Rampant billing errors Variable quality High costs HR & Project Management Legal & Finance Budgets & Expenses HR & Project Records Departmental Systems

Demand Collection IndirectGoods Direct Materials Engineered Goods Services Approval Routing Touchless Buying Automated Payment Automated Payment Enforce Policy Compliance Budget-Based Procurement Contract Management Supplier Performance Reduce Spend on Goods and Services Category Management Online Sourcing Spend Analysis Streamline Procurement Processes Supplier Collaboration Settlement Orders Profile Management Supplier Network Logistics Supplier Portal PeopleSoft Enterprise SRM The Integrated Suite that Dramatically Cuts All Supply Mgmt Costs… Oracle company confidential, 2005

Service Level-Based Communications Business Apps Hosting Retainer-Based Services Legal Services Business System Support Defined Deliverables Construction Software Development Time and Materials Consulting Training Resource-Based Services Administrative Support Contingent Labor Fixed Price Services Facilities Maintenance Print Marketing Variable Cost and Contract Structures Contribute to Services Procurement Complexity Understanding Services Procurement Services Categories

Business Process Overview 1. Request Enter service requirements online 3. Procure Review, negotiate, and contract with service supplier 2. Source Source Req’s to your existing suppliers 6. Analyze Measure performance to gain spend control 5. Settle Electronic bill presentment and payment 4. Manage Onboard/Offboard, time entry, approval, and contractor management

Skills Matrix Service Coordinator can compare candidate skills against required requisition skills

Rate Breakdown and Expenses Define full rate breakdown on rate sheet.

Service Provider Sourcing Vendor selection based on Service Type, Service and Region Requisitions can be sourced to a Supplier Contact or a Location

Supplier Submits a Candidate Suppliers have easy access to submit candidate Supplier can profile candidates in the system before submittal

Services Work Order Manage the Service Provider

Range of Services Procurement Opportunities Improve negotiating leverage and lower service cost Eliminate over-billing and increase early pay discounts Reduce maverick spend Improve negotiating leverage and lower service cost Eliminate over-billing and increase early pay discounts Reduce maverick spend Cost Reduction % Improved Quality & Performance % Reduce provisioning costs and cycle time Increase user satisfaction Improve service consistency and predictability Reduce provisioning costs and cycle time Increase user satisfaction Improve service consistency and predictability Increased Visibility Reduced Risk Increased Visibility Reduced Risk Improve contract and regulatory compliance Manage supplier base and track supplier performance Enhance planning and budgeting Improve contract and regulatory compliance Manage supplier base and track supplier performance Enhance planning and budgeting

A leading provider of integrated financial services in Australia Annual profit: $3B AUD Branches: Over 1,000 Staff: 36,000 Challenges Informal Sourcing Poor visibility of spend and management control (incl. authorization & approval) Limited tracking of performance management and reporting Late payments and manual paper transactions with 10,000 suppliers PeopleSoft Enterprise SRM Solution Enterprise S-Procurement Enterprise Performance Management Enterprise FMS Enterprise HCM Reduced supplier payments by $120K AUD per month through early payment discounts Automatically reconciles 67,000 timesheets per week Reduced AP staff by 3 and freed up an estimated FTE’s Reduced supplier payments by $120K AUD per month through early payment discounts Automatically reconciles 67,000 timesheets per week Reduced AP staff by 3 and freed up an estimated FTE’s Oracle company confidential, 2005

A Q &

Enterprise eProcurement Release 8.9 The Information Driven Supply Chain Sonia Hunt Senior Product Strategy Manager Wei-Shin Yin Group Development Manager

Agenda EProcurement Release 8.9 Enhancements Usability Enhancements Special Requests UOM for Requisitions approval forms PCard Enhancements Q&A

Usability – Create Requisition Expandable Lines View Line Details 3-Step Req Checkout

Usability – Create Requisition Line Details

Usability - Manage Requisition

Line Level Approval Usability - Approvals Manager

Usability - Requisition Expeditor Apply Vendor Selection to multiple lines

Special Requests Special Request Form now contains additional fields: MFG Part Number Vendor Part Number Create comments and determine if comments are sent to vendor with the req, shown on receiving docs or printed on the AP voucher. Ability to add attachments from the Special Requests page Ability to add multiple special requests to the req without leaving the page. Enhanced Category Search

UOM for Requisition Many organizations prefer that users’ request an item in a certain UOM for ordering purposes. In 8.9, you can define a specific item UOM as a default for requisitioning. When users search for the item, the results will display the item in the requisitioning UOM. Administrator can control which UOM is returned in the search results Goal is to streamline the requisitioning process

Approval The new -based approval process lets users approve requisitions directly from their . Users get an with the requisition to approve and they can: Approve requisitions at the line level Enter comments Submit the requisition after approval, without needing to know the address to respond to. Approvers can: View Header and Line details Optionally click on links to view requisition Requires system sign-in Submit approvals from form

Approval

PCard Enhancements Ability to Select a PCard as a Payment method on the Requisition and PO PCard information flows through requisition sourcing process Multiple options to transmit PCard number Display mask number or use acct number on file Support for Supplier Ghost cards Auto-Reconciliation of transactions for PCard Purchase Orders

A Q &