1 UNIVERSITY OF MARIBOR FACULTY OF ORGANIZATIONAL SCIENCE PROCUREMENT PROTOTYPE WITH ORACLE E-BUSINESS SUITE PROGRAM Marko Jordan

2 Procurement prototype with Oracle E-Business Suite program Marko Jordan Description of the problem Working methods Current procurement process Target business process model Customizing the program Prototype execution Conclusions Presentation overview

3 Researching the possibility to include purchases of slight value goods and consumer goods in their procurement system. These orders are now carried out via the telephone. The process is not properly documented and the review of orders is not clear. These orders are also not carried out with Oracle E-Business Suite. Description of the problem Procurement prototype with Oracle E-Business Suite program Marko Jordan

4 I was working with Oracle employees. I analysed current procurement processes. Reengineering of business processes (target business process model). I adjusted the program to meet the needs of target procurement process. I also worked with the supplier. Results analyses. Working methods Procurement prototype with Oracle E-Business Suite program Marko Jordan

5 Current procurement process analysis Procurement prototype with Oracle E-Business Suite program Marko Jordan

6 We worked with the Oracle employees in accounting and in administration. Purchases of slight value goods and consumer goods (same example). We considered inputs and outputs of current procurement process. We also considered the current procurement process for regular orders. The prototype will be based on the target procurement business process model. Target business process model Procurement prototype with Oracle E-Business Suite program Marko Jordan

7 Target business process model Stock checking and requisition creation Verifying quantity and price in po and fod Receiving orders and checking quantity Creation of purchase order Approval or comments of high rank official Checking payment Quantity of order needed Approval of purchase order Purchase order Approved purchase order Form of delivery Note of Received goods Signed form of delivery Signed form of delivery (price and quantity ) Scaned invoice Invoice Notification of payment Transfer order Paid invoice Necessity Form of delivery Purchase order Paid invoice Živila Financial headquar ters Dublin Živila Necessity assessment Financial headquar ters Dublin Financial headquar ters Dublin Živila Necessity Procurement prototype with Oracle E-Business Suite program Marko Jordan

8 Preparing the prototype Jordan_ora, d. o. o., Jordan_admin, d. o. o. Jordan_ziv, d. d. Administracija (administration) Računovodstvo (accounting) Nadrejeni (higher rank official) Dublin Zivila Account Manager Buyer Buying Professional Catalogue Author Company Administrator Purchasing Manager Seller Third Party Catalogue Author Job functions Buyer Buying Professional Purchasing Manager Company Administrator Buying Professional Account Manager Buying Professional Account Manager Catalogue Author Company Administrator Log On ; Access To Do List ; Access Trading Partner Directory ; Get Password Assistance ; Register ; View About Page ; View Admin Page ; View All Charges ; View Billing Activity ; View Billing Tab ; View Buyer ; Negotiations Intelligence Reports ; View Buying ; View Buying Link ; View Catalog Purchases Intelligence Reports ; View Catalog Sales Intelligence Reports ; View Catalogs Tab ; View Company Information ; View Company's Orders ; View Intelligence Page ; View My Company Negotiations ; View My Company Responses ; View Negotiations ; View Negotiations Page; View Other Company Negotiations ; View Other Company Responses Procurement prototype with Oracle E-Business Suite program Marko Jordan

9 For Oracle Software d.o.o. User registration. Adding job functions. Defining approval order. Approving the catalogue. For Živila Kranj d.d. User registration and job functions. Adding currency. Catalogue authoring. Managing customer groups. Preparing the prototype Procurement prototype with Oracle E-Business Suite program Marko Jordan

10 In order to give a clearer analysis I divided the process: Process from need to order. Process from order to invoice. Payment status check. Realization of the prototype solution Procurement prototype with Oracle E-Business Suite program Marko Jordan

11 Podpora nabavnega procesa s programom Oracle E-Business Suite Marko Jordan Oracle Software d.o.o. Technology was used properly within possibilities. It would be reasonable to consider the economy of this approach. We may consider Oracle standard Business processes. The next step is to use standard installation without limitation. Talking with the suppliers before implementation. Internal project of the Slovenian Oracle filiale. Opinions Procurement prototype with Oracle E-Business Suite program Marko Jordan

12 Podpora nabavnega procesa s programom Oracle E-Business Suite Marko Jordan Živila Kranj d.d. The company is participating in procurement process as the supplier. The company uses similar methods for redesigning business processes. Programs are tools for managing desired business processes. The processes in the prototype solution are well designed. Need to have access to financial module and workflow designer. They accept the idea of standard business processes when they are well designed. The number of items on screens could be a problem for the company. Joining new suppliers to procurement system is very easy. Opinions Procurement prototype with Oracle E-Business Suite program Marko Jordan

13 Podpora nabavnega procesa s programom Oracle E-Business Suite Marko Jordan To re-evaluate target business processes method economy. In future implementation process, the financial module would have to be used. Success of installation is dependable on suppliers’ participation. It is sensible to research possibilities of.xml catalogue changes. Recommendations for future work Procurement prototype with Oracle E-Business Suite program Marko Jordan

14 Podpora nabavnega procesa s programom Oracle E-Business Suite Marko Jordan There are two approaches for business process reengineering. to build solutions on existing business processes or target processes to change processes according to software in-build business processes For business process support companies can use use programs that are developed specifically for their needs or existing software solutions. companies can use integrated informational systems or specialized systems. In business collaboration connectivity of different information systems is important. solutions are common standards for interconnections (web). use the informational systems program in entire supply chain. one company can access parts of the other company’s software. Conclusions Procurement prototype with Oracle E-Business Suite program Marko Jordan

15 Podpora nabavnega procesa s programom Oracle E-Business Suite Marko Jordan Questions ? Procurement prototype with Oracle E-Business Suite program Marko Jordan