©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Supplier Integration Integrating Suppliers with PeopleSoft eProcurement using Direct Connect Supplier Integration

©2001 Cedar™ All contents Confidential and Proprietary What is Direct Connect?  An implementation of accepted standards that enables eProcurement users to interact directly with a supplier’s website to order items.  Users connect to the supplier’s site from the Requisition application, and select items on the site that flow back into the Requisition.  After approval, the Purchase Order can be dispatched electronically directly to the vendor.

©2001 Cedar™ All contents Confidential and Proprietary Situations before PeopleSoft  Absence of pre-encumbrance accounting and funds checking at requisition level  Separate inventory and accounting systems with poor integration  High volume of purchase orders  Purchase orders had many errors

©2001 Cedar™ All contents Confidential and Proprietary Situations before PeopleSoft  Very labor intensive, paper dependent processes with lots of deviations from standard business practices!

©2001 Cedar™ All contents Confidential and Proprietary Implementation Goals  Guarantee accurate pricing, quantity & UOM  Eliminate catalog maintenance  Drastically reduce Req to PO turnaround time  Eliminate Purchase Order errors  Implement budget checking at requisition  Reduce overall paper usage

©2001 Cedar™ All contents Confidential and Proprietary Process Flow for Direct Connect Using PunchOut 1) The system saves all levels of the current requisition to a global rowset 3) After building the XML, the system sends it to the supplier’s URL as defined in the supplier's node definition. 5) PeopleSoft eProcurement receives this response, in the form of a message object. Integration Broker runs a transformation from the PunchOutSetupResponse to the message behind the scenes. 4) The system returns a response to PeopleSoft eProcurement, if the user is successfully authenticated, that contains the supplier’s URL for redirection. 2) Based on the direct connect method registered to the selected supplier, the system loads the appropriate application class and runs the code to connect to the supplier.

©2001 Cedar™ All contents Confidential and Proprietary Process Flow for Direct Connect Using PunchOut This preserves the state of the requisition so that changes made since the creation or the last save of the requisition are not lost. 6) PeopleSoft eProcurement redirects the user to the URL sent in the response from the supplier. 7) The user browses the supplier’s site, and places an order. Based on sign-on information, the supplier can maintain customer specific pricing. 8) After the order is complete and the user checks out, the supplier’s site packages the shopping cart into an XML string and places it in an HTML hidden form field. 9) The PeopleSoft eProcurement component that has been redirected to extracts the XML string from the hidden form field. The string is parsed into a PeopleSoft message using another Integration Broker transformation. 10) When the requisition component Is reinitialized, the global rowset from step 1 containing the original requisition information is reloaded. The items from the external item message, containing the shopping cart data, are added as new rows to the requisition.

©2001 Cedar™ All contents Confidential and Proprietary Requisition Process  Direct Connect business processes follow the standard eProcurement requisition process.  Requisition entry including budget checking  Requisition approvals  Requisitions are sourced to Purchase Orders  Purchase Orders are document tolerance & budget checked  Purchase Order batch dispatched via XML over HTTPS

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Log into PeopleSoft eProcurement

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Search the Catalog

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Search catalog for merchant

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Select vendor - custom website is displayed

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Select from one of the Standard Configurations

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Customize your Order (Dell computer in this case)

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Add to Cart

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Complete your Order

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Confirm your Order

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Add Shipping and Speedtype information  Requisition is now ready for submission

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Demonstration  Once the order has been placed, it will be assigned a requisition number in PeopleSoft  Every requisition requires at least one level of approval through PeopleSoft workflow  Direct merchant requisitions are dispatched at different times of the day as XML purchase orders

©2001 Cedar™ All contents Confidential and Proprietary Key Concepts  This is not a PeopleSoft Interface Project  It is an EAI Project – 2 way electronic exchange of business documents  Two parties with distinct business processes and technical architectures  Functional Business Process Integration  Business Process Re-engineering required by both parties to establish unified business process  eProcurement & eBilling processes are linked  Technical Integration

©2001 Cedar™ All contents Confidential and Proprietary Direct Connect Key Enablement Technologies  XML – The universal data solvent for integration  Two main B2B standards  Ariba – cXML – Punchout.  Commerce One – xCBL/OCI – Roundtrip  Java 2 Enterprise Edition (J2EE)  PeopleSoft Business Interlinks  Run-time pshttpenable.dll  Interface Drivers  Sending XML over HTTPS protocol

©2001 Cedar™ All contents Confidential and Proprietary PeopleSoft Direct Connect - Integration  Five business documents are exchanged  Punch Out Set Up Request (Sign In)  Punch Out Set Up Response (Authentication)  Punch Out Order Message (Shopping Cart sent to create PeopleSoft Requisition)  Punch Out Order Request (Electronic PO)  Punch Out Order Response (Guarantee of PO delivery)

©2001 Cedar™ All contents Confidential and Proprietary Major Configuration Steps #1  Create Merchant Categories  Configure Merchant Profile  Enable merchant, set up logo etc.  Configure Merchant Authentication  Company identifier, authentication token and initial B2B website URL  Configure Merchant Business Interlink Overrides  Set up Sign On and Purchase Order Business Interlinks  Assign Merchant Category to Vendor

©2001 Cedar™ All contents Confidential and Proprietary Major Configuration Steps #2  Configure Merchant Application Attributes  Dispatch Ship To. Header – PO to be delivered to one location. Line – multiple locations. Vendor system capabilities determines if Header or Line.  Direct Connect Method – vendor system determines if PUNCHOUT, ROUNDTRIP or OCI.  XML Schema – cXML, xCBL, ebXML.  Direct Merchant Search Information  Set search words to ‘merchant’ & vendor name. Requestors trained to enter ‘merchant’ when searching catalog for easy access to all Direct Merchants.  Customer Service – vendor /phone/fax information.  Set up Vendor with Default PO Dispatch type EDX

©2001 Cedar™ All contents Confidential and Proprietary Implementation Challenges  Working with Vendors to debug issues  Requesters will have a hard time moving away from paper catalogs  Processing delayed delivery orders (for example, orders for new school year)  Replacing phone orders with Internet process for users not used to web interface

©2001 Cedar™ All contents Confidential and Proprietary Security Concerns  All client machines (browsers) must have HTTP/HTTPS access in order to add items from a Supplier ’ s website.  All Application Servers that will initiate Punchout must have HTTP/HTTPS access.  RoundTrip does not require app server HTTP/HTTPS access for browser.  No inbound holes in the firewall are needed as the XML is sent in the user ’ s browser session.

©2001 Cedar™ All contents Confidential and Proprietary Tips and Techniques #1  Educate Direct Connect vendors on your processes so their customer support can help  Transmit the requester’s address to the vendor and request that vendor order & shipping confirmation messages  Schedule batch processes so that dispatched Orders reach vendors before warehouse cutoffs  Ask vendor to validate for a duplicate Purchase Order ID

©2001 Cedar™ All contents Confidential and Proprietary Tips & Techniques #2  XML supports Unicode – vendor legacy back end systems may not  Vendors should not accept phone/fax/ orders  eProcurement enables eBilling – benefits are  Reduces workload on Accounts Payable & Procurement.  Eliminates data entry errors.  More PO’s in complete status which benefits Year End Closing process.  Vendors get paid in a speedy manner.

©2001 Cedar™ All contents Confidential and Proprietary Tips & Techniques #3  Need to have the following skills in house  XML (Extensible Markup Language)  EAI (Enterprise Application Integration)  Web based order management, back end eBusiness systems  Sending Requestor P Card Info in PO  Not used at DPS  Lose budgetary and approval controls  Do not bring down PeopleSoft during Batch Dispatch!