Information Age Applications

Information Age Applications
Oracle Advanced Procurement The Integrated Suite that Dramatically Cuts all Supply Management Costs <Name> <Title> Information Age Applications

Manage Contracts & Suppliers
Procurement At-a-Glance Manage Contracts & Suppliers Supplier Performance Expirations & Renewals Source Purchase Settle Supplier Selections Negotiations Requisitions Approvals & Orders Goods Receiving Payments

Procurement Organization
Business Challenges Organizational Challenges Insufficient policy influence Unintegrated processes Staff consumed by routine processing Increasing Savings Targets Same or greater % every year Resource constraints – “save more with less” Inflation, currency fluctuation Procurement Organization Compliance Concerns Low visibility Contract leakage Regulatory pressures Competitive Pressures Outsourcing Faster new product introduction Global competition Savings Targets, Inefficient Processes and Compliance Risks are “problem” forms of our three key messages

Improved Procurement = Improved Profits
Savings Greatly Impact the Bottom Line Save Money Maximize buying power Increase contract utilization Avoid unnecessary expenditures Increase Productivity Reduce manual workload Increase responsiveness Improve supplier performance We have a large number of Order Fulfillment customers to date and the number is growing daily. G&A R&D Mktg COGS Profit

Why Are Cost Savings Hard to Achieve
Why Are Cost Savings Hard to Achieve? Routine Tasks Hinder Strategic Activities Strategic Supply Optimization Spend Analysis Contract Negotiation High Value Monitor & Review Controls Internal Benchmark Delivery Project- Based Procurement Medium Text adapted from the Oracle Purchasing datasheet Automated Purchasing that Keeps You in Control Oracle Advanced Procurement automates purchasing to make buyers more productive, improves management of your supply base and adapts to any procurement process. As the heart of the Oracle Advanced Procurement suite, Oracle Purchasing provides a rich store of policy and supplier information, a robust workbench for buying professionals, and consolidated visibility into all spending. Oracle Purchasing turns demand into orders with the least possible manual work. Configurable automation executes routine transactions without intervention, making buyers more productive while enforcing compliance at every step. So procurement professionals spend less time processing paper, and more time discovering and exploiting new savings opportunities. Answering Supplier Queries Helping Requesters Managing Content Creating Manual Orders Low

Procurement Transformation
High Strategic Procurement Value Creation Collaborative Procurement Supply Optimization All Categories, All Processes Cost Procurement Touchless Buying Policy Enforcement Contract Negotiation Spend Management Strategic Value Tactical Buying Create Manual Orders Answer Supplier Queries Help Requesters Manage Content All manual, all the time. Traditional Order Entry is a very manual intensive process. Orders arrive by paper, by phone, by fax, or by carrier pigeon. The Orders must be batched and keyed in to a system. Many companies don’t have just one system for entering orders. Over time, they may have either custom developed or purchased several different order systems that they are using at the same time. Needless to say, obtaining a combined view of your business from data drawn multiple non-integrated systems is requires manual effort or a lot of custom developed systems. In Traditional Order Entry, getting information about orders, shipments, customer credit exposure risk, deliveries, and other customer service information is also very manual. Customers, logistics partners, or internal employees who need to inquire about the status or whereabouts of their order must phone, fax, write letters to customer service personnel who then look up the information and respond to the party making the inquiry. The customer service people must consult the correct system, obtain the information, and then respond to the person making the inquiry. Summary – Traditional Order Fulfillment Shortcomings: Manual Processes Information Silos Departmental Miscommunications Missed Promises Low Low Maturity High

What Customers are Saying…
“Using Oracle Advanced Procurement and Oracle Financials has enabled us to transform the purchasing department to a value-added organization, resulting in over $74 million in documented cost savings.” -- Ralph Maier, Director of Purchasing Services “Our supply chain review and internet-based procurement system have helped us save over $5.4 million in the first three years. This is a considerable amount when you consider that our annual spend is about $19 million.” -- Robin Skeggs, CFO and GM of Support Services “We have already realized significant savings from implementing Oracle iProcurement 11i and anticipate more.” Gary Reiner, Senior VP and CIO

What Customers are Saying…
“Smarter use of e-procurement solutions has already generated savings. These savings will grow as we make increased use of Oracle’s built-in analytical tools to analyze our spend more closely and prevent contract leakage.” -- David Rabey, Director of Purchasing and Supply “Oracle iProcurement is allowing us to drive more spending into established vendor contracts. This is helping us reduce transaction costs while increasing our knowledge of what is being purchased.” --Tami Brown, Purchasing Manager “We conservatively expect our Oracle Internet Procurement initiative to reduce our maintenance, repair, and operating spend by 10%, resulting in millions of dollars in savings and a substantial positive impact on earnings.” -- Bill Lawson, CIO

What Customers are Achieving…
reduced MRO item costs by 20% sourced 50,000 items and reduced costs by 20% increased purchasing volume discounts by 5% reduced purchase order cycle time by 75% reduced purchase order processing time by 86% reduced purchasing processing costs 89% saved over $11M from Procurement & other EBS apps saved over $1.1M annually via integrated procurement saved over 25% on indirect goods purchases implemented internet procurement in only 60 days We have a large number of Order Fulfillment customers to date and the number is growing daily. Thompson Travel Group

A Few More Customers… Thompson Travel Group Here is a partial list of customers using Oracle’s Service solution. Notice the variety of industries represented and the name recognition of the firms.

How Oracle Delivers There is a better way. Let’s take a look at Order Fulfillment.

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

Oracle Advanced Procurement Enables You To…
Reduce Spend on Goods and Services Streamline Procurement Processes Enforce Policy Compliance Summing up the previous slide, Oracle Order Fulfillment provides four key capabilities Support for a complete, robust Order to Cash Business cycle Drives supply chain collaboration Support for your business processes no matter how varied or dynamic they may be. Integration of your supply chain logistics Now lets drill down another level into what we mean by supporting a complete order to cash flow.

Packaged Spend Analysis Spot Savings Opportunities Immediately
Are we leveraging volume discounts from our suppliers Where is there contract leakage Which departments have the most unsourced spending Analyze Spend by… Item / Commodity Supplier Organization Buyer Geography Time Contract Monitor Pricing Trends & Commodity Performance Determine Contract Utilization COMMODITY S U P P L I E R ORGANIZATION Supplier Organization Commodity Ad Hoc Summing up the previous slide, Oracle Order Fulfillment provides four key capabilities Support for a complete, robust Order to Cash Business cycle Drives supply chain collaboration Support for your business processes no matter how varied or dynamic they may be. Integration of your supply chain logistics Now lets drill down another level into what we mean by supporting a complete order to cash flow.

Automatic Implementation
Online Negotiation & Collaboration Increase Sourcing Efficiency and Effectiveness RFI / Survey RFQ Online Auction Blanket Agreements Global Agreements Signed Contracts Purchase Orders Sourcing Rules Agreement Creation Automatic Implementation Online negotiations Online ‘expert’ collaboration Award optimization Templates, standard T’s & C’s Advanced pricing 1-click renegotiation for agreements Automatic price & terms enforcement Preferred supplier enforcement Source More of Your Spend Manage more sourcing events in less time and bring them to conclusion faster so you can find and exploit additional savings opportunities. Exploit More Sourcing Opportunities The time required to prepare bidding packages, issue them, and process responses has traditionally limited the how much sourcing each professional could manage of sourcing; leaving savings on the table. Oracle Sourcing lends structure to the entire sourcing process, greatly reducing the time and effort required to source each demand. Procurement professionals can use templates to quickly create sourcing events such as RFIs, RFQs, RFPs and reverse auctions. Sourcing events may also be created by directly consolidating demand from Oracle Purchasing. Buyers can even use one-click renegotiation to instantly clone expiring agreements into new sourcing events. Oracle Sourcing slashes the manual effort required to execute each sourcing event. So procurement professionals can do more of what they do best – save money. Slash Cycle Time with Online Negotiations With Oracle Sourcing, events are prepared more quickly, concluded sooner, and agreements can be implemented as soon as they are signed. Because it structures requirements-gathering, sourcing events take less time to prepare. Sourcing consolidates requirements, amendments, and responses in one central location, so suppliers can bid more quickly. Online tools alert buyers to events that need additional supplier actions. Online competition saves time by motivating suppliers to improve terms without time-consuming back and forth negotiation. Agreements negotiated in Oracle Sourcing can also be immediately implemented in Oracle Purchasing. So you not only source more, you realize the resulting savings sooner. Exploit savings opportunities & use open competition to improve price/terms

Cut sourcing cycle time while making better award decisions
Online Negotiation & Collaboration (cont’d) Increase Sourcing Efficiency and Effectiveness Online bid analysis and scoring Award allocation rules Template-based contract authoring Make Faster Award Decisions with Online Bid Comparison and Award Rules Manually compiling and comparing bids causes slow and inaccurate award decisions. Oracle sourcing gathers bids in a consistent and structured format and provides online analysis for fast, accurate awards. Side-by-side and graphical comparisons show at a glance which suppliers provide the best overall value. If your organization has developed spreadsheet models for unique categories, Sourcing also exports pricing and scoring data for offline analysis. Flexible award methods let you cherry-pick suppliers, bid lots and lines for the best pricing; or let Oracle Sourcing arrive at the best possible award based on the predefined scoring criteria. Configurable award rules build in compliance with policies such as minority business preference or multi-sourcing of mission-critical items. The award summary gives sourcing team members a complete view of the award recommendation, while award approvals ensure policy and regulatory compliance. Cut sourcing cycle time while making better award decisions

Embedded Terms Enforcement Enforce Contracted Pricing and Terms
Sourcing Contracts iProcurement Purchasing Negotiate pricing and terms Author purchasing contracts Enforce contract deliverables Direct self-service orders to preferred suppliers at contracted pricing Create purchasing transactions at contracted pricing Summing up the previous slide, Oracle Order Fulfillment provides four key capabilities Support for a complete, robust Order to Cash Business cycle Drives supply chain collaboration Support for your business processes no matter how varied or dynamic they may be. Integration of your supply chain logistics Now lets drill down another level into what we mean by supporting a complete order to cash flow. Automatically implement negotiated pricing and terms in every transaction

Embedded Terms Enforcement (cont’d) Enforce Contracted Pricing and Terms
Review Status of Deliverables Example Deliverables Monthly milestone progress reports Provide a prototype within 3 months of contract signing Perform site visit and inspection Proof of compliance to industry standards Summing up the previous slide, Oracle Order Fulfillment provides four key capabilities Support for a complete, robust Order to Cash Business cycle Drives supply chain collaboration Support for your business processes no matter how varied or dynamic they may be. Integration of your supply chain logistics Now lets drill down another level into what we mean by supporting a complete order to cash flow. Deliverable status at a glance Compliance tracking during negotiation and after award Supplier and internal compliance monitoring

Complete Procure-to-Pay Automation Free Staff for High-Value Activities
Identify & Qualify Vendors Create & Approve Requisition Receive Electronic Invoice Sourcing Strategy Evaluate Bids Create Purchase Order Pay Supplier (EFT) Negotiate Master Purchase Agreement Send Electronic PO to Supplier Analyze Performance Purchasing Execution Select Vendor Receive Goods or Services; Inspect Adjust Contracts The text below is from Oracle Purchasing, but has good coverage of the whole procure-to-pay process Automates the Entire Procure-to-Pay Cycle Oracle Purchasing helps you define suppliers and agreements, and then automates your entire procurement cycle from purchase order to settlement. Efficiently Process Demand with the Professional Purchasing Workbench Oracle Purchasing’s professional procurement workbench efficiently manages buyer workload, turning demand into purchase orders with the least possible manual work. All exceptions – demand that requires some interactive processing – are immediately funneled into the buyer’s workbench. The system gives buyers full visibility into their work queues; allowing buyers to view, search and sort demand and reassign them as needed. Managing the queue, the buyer determines the appropriate supply source and uses Purchasing’s powerful AutoCreate capability to gather lines from multiple purchase requisitions to generate a purchase order, blanket release or a negotiation document such as an RFQ. Oracle Purchasing organizes your purchasing process and eliminates error-prone manual re-keying to make your buyers more productive and your organization more responsive. Execute Touchless Buying with Sourcing Rules Oracle Purchasing makes your buyers even more productive by taking them out of repetitive transactions entirely with “touchless” buying. The need for goods or services can be initiated in many ways in your enterprise: from a planning system, a maintenance application, an employee requisitioning application, etc. Oracle Purchasing lets you establish sourcing rules to determine how it handles this incoming demand. Based on your company-configurable logic, the application uses the rules to process demand, determine the correct allocation to a supplier or suppliers, and create purchase orders without any buyer intervention. The newly created purchase orders flow through approvals and optional budget checks to enforce compliance. The documents are then delivered to suppliers via fax, , XML, EDI or the Oracle Supplier Network. All exceptions are sent to the appropriate person for handling. So you retain complete control of automated buying while freeing your buyers from repetitive tasks. Speed Receiving and Settlement with Procure-to-Pay Integration Oracle Purchasing saves your organization time, money, and rework with electronic integration of receiving, receipts and payables. Powerful receiving features provide dock-to-stock tracking of orders, receipts and inspections; whether goods are delivered to receiving or directly to office and stock locations. Receiving functions support multiple operating models configurable by category and supplier, including vendor-managed inventory (VMI) and consigned inventory. As an option, Oracle Purchasing ensures that you’ll get the early payment discounts you’ve negotiated by supporting the Evaluated Receipt Settlement (ERS) process. ERS automatically creates an invoice in Oracle Payables upon receipt. Electronically integrating receiving and payment with purchasing reduces errors and saves time and money. Add structure to strategic activities & execute routine transactions automatically

Central Sourcing, Local Execution Transfer to Local Business Unit
Example: Multiple Procurement Models Select Model Appropriate for Each Spend Category BU 1 Source Request Buy Pay BU 2 BU 3 Decentralized BU 1 Source Request Buy Pay Shared Service BU 2 Central Sourcing, Local Execution BU 1 Source Request Buy Pay Shared Service BU 2 Automated financial reconciliation Complete Shared Services BU 1 Source Request Buy Pay Shared Service BU 2 Automated financial reconciliation Transfer to Local Business Unit Oracle Advanced Procurement supports any combination of procurement models and with configurable automation that adapts to your procurement practices. Achieve and Document Global Savings with Center-Led Procurement Center-Led Procurement allows your organization to optimize efficiency, cost savings and potential tax benefits by decoupling the demand source from where the buying actually takes place. Oracle Purchasing supports Center-Led Procurement with flexible processes for any combination of shared services, distributed and hybrid purchasing. Orders are issued in the appropriate business unit and, the system receives receipts and invoices, it automatically performs financial reconciliation between the requesting group and the group that issued the order. Oracle Purchasing enables Purchasing professionals to document savings and measure policy compliance, even when the actual buying is conducted within individual business units. Oracle Purchasing drives, extends and measures the positive influence of procurement experts throughout even the most distributed enterprises.

Policy-Driven Self-Service Requisitioning Automate and Control Employee Buying
Self-service ordering in a familiar web shopping interface Smart Forms to structure non-catalog orders Purchasing-controlled content for guided user choice (e.g., preferred vendors) Configurable approval flows with accounting enforcement Self-service order tracking and order changes Complete process automation Streamline Employee Ordering Self-service ordering eliminates error-prone paper processes, improving productivity and control. Web-Shopping Interface Ensures Rapid Deployment and Adoption Oracle iProcurement lets you control spending by all employees because it is easy for you to implement and for them to use. Oracle iProcurement gives employees an intuitive web-shopping interface that is instantly familiar to anyone who has shopped online. Powerful search features and logically grouped online “stores” lead users to the products and services they need. Requesters can place and track orders from any web browser. This web architecture also allows rapid deployment to every employee because there is no desktop software to install. So your employees have immediate access to the system, and an interface they can use right away. Content Control Guides User Choice With Oracle iProcurement, Purchasing departments completely control the products, services and views that employees see; based on organization, responsibilities, and more. The content can be easily loaded into iProcurement and you can use your existing supplier agreements. Users find the items using a configurable category structure or employ the powerful advanced search capabilities. You can provide rich information on the items so employees make informed decisions. Suppliers can also manage content on your behalf. Oracle iProcurement allows users to punch-out to supplier-hosted sites, returning for checkout and approval. Additionally, iProcurement’s unique Transparent Punch-Out even allows users to access content from external sites without ever leaving the familiar iProcurement interface. By providing flexible options for user content, Oracle iProcurement gives you unparalleled ability to guide employees to make compliant purchasing choices.

Example: Employee-Initiated Changes
Self-service order tracking Self-service order changes with Purchasing approval Self-service receiving triggers invoicing Change request approval Buyer review and PO update Automatic supplier notification Change quantity, date, price or cancel line Requester Fulfillment Tracking and Change Management Saves Purchasing Staff Resources Purchasing departments are inundated with status calls, wasting valuable staff time. Oracle iProcurement’s requestor-led fulfillment tracking frees your purchasing department from routine tracking, receiving and change management. Requesters can track approvals and delivery status, change or cancel line items, and acknowledge receipt of goods from any web browser. When Purchasing approves requester changes, Oracle iProcurement automatically revises purchase orders and notifies suppliers. It even pro-actively alerts requesters about non-received orders and lets them return faulty goods. So Purchasing agents are free to focus on high-value tasks. Eliminate routine order inquiries and change requests to Purchasing

Structured Supplier Communications Reduce Process Errors, Manual Effort, and Lag Time
Supplier Qualifications Buyer Suppliers Forecast & Schedules v.1 Orders v.2 Change Orders Shipment Notices The text below comes from the iSP datasheet, but speaks to supplier collaboration using either iSP or EDI messaging. Lower Costs and Improve Supplier Service with Online Collaboration Phone calls, faxes and s with suppliers waste time, introduce errors and create latency in your supply chain. Oracle iSupplier Portal makes you and your suppliers more efficient with a powerful platform for online collaboration. Suppliers access the latest information including purchase orders, delivery information and payment status. The rich two-way collaboration enables suppliers to submit change requests, ship notices, payments and profile data. You get better service, lower processing costs and relief from routine supplier inquiries. So your buying organization has time to focus on what really matters – getting more savings. Invoices & Payments Time Cards

Structured Supplier Communications (cont’d) Reduce Process Errors, Manual Effort, and Lag Time
Supplier Portal: Online Self-Service Messaging: Lights-Out Connectivity XML EDI Buyer Suppliers The text below comes from the Purchasing datasheet and talks about how iSP and EDI capabilities improves supplier integration, and how they differ from each other. Leverage Advanced Procurement Capabilities with Suppliers and Internally Because Oracle Purchasing is the heart of the Oracle Advanced Procurement suite, you can easily extend your solution to integrate suppliers and internal groups. Oracle Supplier Network’s transaction delivery hub lets Oracle Purchasing exchange electronic transactions with a community of suppliers with one simple configuration. Oracle iSupplier Portal lets you collaborate online with all of your suppliers via a web browser, even if they do not have their own electronic messaging capability. Internally, Oracle Purchasing enables an integrated procure-to-pay process. When incoming demand is negotiated in Oracle Sourcing, the result is immediately available to Oracle Purchasing. Oracle Procurement Contracts establishes a structured set of terms, conditions and deliverables that are tied to supplier agreements and purchase orders. These advanced capabilities lower administrative costs, decrease cycle time, ensure compliance and improve supplier service.

Alerts & Notifications Access to Complete Procure to Pay Data
Structured Supplier Communications (cont’d) Reduce Process Errors, Manual Effort, and Lag Time Supplier Portal Quick Document Search Zero training paradigm Global view with security Simple and advanced search Attachments Excel import and export Alerts & Notifications Most Recent Orders Text from the iSP datasheet. Too much of it, but lots of good material can be pulled from here. Create Closed Loop Purchase Order Collaboration Get improved service, eliminate routine inquiries and even offload inventory management by sharing information with suppliers online. Eliminate Routine Supplier Inquiries Routine supplier inquiries are a drain on your Purchasing staff. Oracle iSupplier Portal eliminates them by giving suppliers self-service access to up-to-date information. Suppliers view the entire order, including any associated attachments, and can easily print out the order in PDF format. Any changes to an order are instantly available on iSupplier Portal, with a full audit trail of previous changes. Suppliers can also access real-time information about blanket purchase agreements or contracts. From these agreements, suppliers can drill to all associated orders. To confirm their ability to meet the demand, suppliers can acknowledge purchase orders or individual shipments online, access terms for orders that were negotiated using Oracle Sourcing or Oracle Procurement Contracts, and bind purchasing documents with an electronic signature. So suppliers are more responsive to your needs, while your Purchasing staff is freed from time-wasting routine inquiries. Easily Manage Order Changes Routine change management represents another drag on Purchasing staff. Oracle iSupplier Portal manages supplier-initiated change requests, so you and your suppliers are always on the same page. Suppliers request changes PO changes online, from splitting a shipment to modifying order details such as quantity, delivery date and supplier part number. Every change request is automatically routed to the buying organization. Approved changes propagate to the purchasing document, creating formal and auditable revisions. With iSupplier Portal, both buyer and seller have immediate access to all of the information they need to manage and track change. Reduce Inventory Requirements with Vendor Managed Inventory and Consignment Support Oracle iSupplier Portal reduces inventory cost through Vendor Managed Inventory (VMI) processes that let authorized suppliers manage inventory for you. By accessing your forecasts, on-hand stocks and in-process shipments, suppliers can initiate replenishments on your behalf. The software also makes consignment relationships easy for you and your suppliers by providing visibility into consigned inventory and any transactions that affect it, from procurement to payment. Oracle iSupplier Portal data also improves the accuracy of your planning and scheduling, further reducing inventory levels while avoiding stock-outs. Simplify Fulfillment and Payment Reduce receiving problems with online Advance Shipment Notices, capture savings with online invoicing and improve service from suppliers by sharing delivery and quality data. Accelerate Receiving with Advance Shipment Notices Real-time delivery management helps your organization avoid receiving problems. Through iSupplier Portal, suppliers can enter Advance Shipment Notices (ASNs) online to make sure you are prepared to receive shipments. Higher-volume suppliers can use spreadsheet upload to create multiple ASNs in one pass. For specific goods and services, suppliers can enter lot and serial number information, as well as the License Plate Number of the containers. When the shipments arrive at your company, you can quickly and accurately receive using information from the ASN. If your organization manages the transport of goods, the supplier can upload routing requests to indicate when the goods will be ready for pickup. Oracle iSupplier Portal provides the real-time information you and your suppliers need to execute more efficient fulfillment and receiving. Streamline Payment with Online Invoicing Most organizations still receive many supplier invoices via paper or fax – requiring error-prone and expensive manual re-keying. With iSupplier Portal’s online invoice creation, suppliers easily enter invoices and provide all key information about the invoice, including freight costs, tax and other miscellaneous charges. Supporting information can also be uploaded using iSupplier Portal’s attachment capabilities. The invoice is automatically matched to open purchase orders, ensuring compliance to all policies. All exceptions are noted and routed appropriately. Oracle iSupplier Portal provides visibility to payment status for all invoices, including reasons for on-hold status. This greatly reduces calls to your Purchasing and Payables departments. Oracle iSupplier Portal lowers the cost of the invoicing process to create a win-win for you and your suppliers. Improve Service Levels with Fulfillment Performance Tracking Oracle iSupplier Portal creates a shared understanding of supplier fulfillment performance by collecting information that suppliers and buyers can use to improve service. Suppliers can access receipt history to check their on-time delivery performance and shipment inspection results. Buyers can evaluate supplier performance by associating a quality collection plan defined using Oracle Quality. Suppliers can then view and enter quality information online, and see how their performance matches the buyer’s quality plan. Complement Electronic Transaction Delivery Oracle supports a wide variety of standards-based XML and EDI messages for business documents such as purchase orders, acknowledgments, ship notices and invoices. This electronic transaction delivery is normally conducted with a small segment of your supply base; typically high-volume suppliers with sophisticated IT systems. iSupplier Portal’s browser interface complements electronic transaction delivery by bringing electronic communication to your entire supply base and can achieve collaboration in areas for which XML and EDI are not well suited. Most Recent Shipments Access to Complete Procure to Pay Data

Exception-Based Enforcement Identify and Rectify Policy Violations
Purchasing Professional Configurable automation of routine transactions Automatic bubble-up of exceptions Pre-built, configurable approval flows Rejections Return or Modify Reqs Indirect & MRO Approvals Buyer-Assisted Exceptions Direct Materials Purchasing Transactions Services Automatic Demand Sources Demand Queue Rules Configuration Document Creation Designed Mat’ls Automation

Items without contract coverage Items with under- utilized contracts
Exception-Based Enforcement (cont’d) Identify and Rectify Policy Violations Items without contract coverage Items with under- utilized contracts Text from Oracle Purchasing, but describes compliance enforcement and budget support for the suite. Drive Compliance with Consistent, Enterprise-Wide Policy Enforcement Oracle Purchasing gives you a single point for defining and enforcing enterprise policy; including tax regulations, localization rules, receiving options, matching rules, approval policies, and more. Best practice procurement processes come pre-modeled, with configurable approval flows already built in. The system fully supports budget-based and encumbrance procurement. Oracle Purchasing even shares policies with other applications in the Oracle Advanced Procurement suite. So compliance is assured from requisition to sourcing, buying and payment. Single point for defining and enforcing Purchasing policy Pre-modeled best practice procurement processes Built-in preferred supplier and contract usage enforcement

Budget-Based Procurement Align Financial and Procurement Policies
Update with Spend Data Project Budget or Grant Project Demand Funds Available? Yes Payment -Invoices, Timecards Document Creation No Retuned or Modified Reqs Text from Oracle Purchasing, but describes compliance enforcement and budget support for the suite. Drive Compliance with Consistent, Enterprise-Wide Policy Enforcement Oracle Purchasing gives you a single point for defining and enforcing enterprise policy; including tax regulations, localization rules, receiving options, matching rules, approval policies, and more. Best practice procurement processes come pre-modeled, with configurable approval flows already built in. The system fully supports budget-based and encumbrance procurement. Oracle Purchasing even shares policies with other applications in the Oracle Advanced Procurement suite. So compliance is assured from requisition to sourcing, buying and payment. Automatically update project budgets with spending data to ensure funds availability Seamless dataflow from Projects to Procurement to Payables

Budget-Based Procurement (cont’d)
Budget-Based Procurement (cont’d)* Align Financial and Procurement Policies Oracle supports multiple financial control methods Text from Oracle Purchasing, but describes compliance enforcement and budget support for the suite. Drive Compliance with Consistent, Enterprise-Wide Policy Enforcement Oracle Purchasing gives you a single point for defining and enforcing enterprise policy; including tax regulations, localization rules, receiving options, matching rules, approval policies, and more. Best practice procurement processes come pre-modeled, with configurable approval flows already built in. The system fully supports budget-based and encumbrance procurement. Oracle Purchasing even shares policies with other applications in the Oracle Advanced Procurement suite. So compliance is assured from requisition to sourcing, buying and payment. Project Budgeting Encumbrances Grants Accounting *Requires Oracle Financials

Total Procurement Visibility Manage Supplier Performance
Define Targets Perform Transactions Management by Objective Define key performance indicators Setup business performance targets Management by Exception Calculate KPIs and compare to plan Notify decision-maker of exceptions Management by Fact Analyze exceptions based on facts Take immediate corrective action Analyze & Take Corrective Action Measure Performance Summing up the previous slide, Oracle Order Fulfillment provides four key capabilities Support for a complete, robust Order to Cash Business cycle Drives supply chain collaboration Support for your business processes no matter how varied or dynamic they may be. Integration of your supply chain logistics Now lets drill down another level into what we mean by supporting a complete order to cash flow. Out of Tolerance? Notify

Total Procurement Visibility Manage Supplier Performance
Daily updates on key performance indicators Actionable information on savings Pre-built portals with role-based access At-a-glance: Contract leakage Non-contract purchases (sourcing opportunities) Purchasing trends Payables leakage Real-Time Results Flexible Time Periods Flexible Comparisons Performance Measures Graphs Summing up the previous slide, Oracle Order Fulfillment provides four key capabilities Support for a complete, robust Order to Cash Business cycle Drives supply chain collaboration Support for your business processes no matter how varied or dynamic they may be. Integration of your supply chain logistics Now lets drill down another level into what we mean by supporting a complete order to cash flow. Links Reports

Oracle Advanced Procurement
Integrated packaged spend analysis, online sourcing, and embedded pricing enforcement Reduce Spend on Goods and Services Full procure-to-pay automation with employee self-service and structured supplier communications Streamline Procurement Processes Budget-based procurement, exception-based enforcement and total spending visibility Enforce Policy Compliance

Complete Category Management
Oracle Advanced Procurement Complete Coverage Across All Purchasing Categories Indirect Goods Services Engineered Goods Direct Materials Complete Category Management Marketing Project Management Production Logistics Advertising and Print Shows and Promotions Capital Expenditures Building & Construction Fleet Purchases Raw Materials Components Assemblies Full truck, LTL, Parcel, etc. Ocean, Air, & Rail Warehouse/Logistics Svcs Fleet & Maintenance Svcs Collaborate between buying professional to save time and structuring bid package and process to take advantage of market dynamics Self-Service Information Technology Facilities Maintenance Office Supplies Contingent Labor Travel and Entertainment Hardware, Software Leasing & Financial Services Professional Services Networking, Wireless HVAC Janitorial Landscaping Utilities Furniture & Fixtures Repair Supplies Replacement Parts Equipment Tooling

Oracle Advanced Procurement Delivered via a Modular Product Suite
Spend Analysis Strategic Sourcing Contract Mgmt Sourcing Sourcing Optimization Purchasing Intelligence Procurement Contracts Employee Self Service Procure-to-Pay Supplier Enablement We have the traditional model, or Oracle can manage your technology needs at Oracle’s datacenter or at your own locations. So Why E-Business Suite Outsourcing? A monthly fee for predicable expense – and CEOs / CFOs appreciate knowing the cost to run their application systems each month with no surprises. At a minimum you receive: 50% better service faster implementation which equals accelerated time to ROI access to the latest functionality no constraints dealing with people, training staff, and infrastructure issues all of this without worry -- it is taken care of by the software expert, as it should be. Standardized Open Integration Platform Business events system exposes integration points as standards-based OAG documents, on a JMS queue, or as Web Services Standard B2B Protocols such as OAG, RossettaNet, HL7, EDI Common integration repository catalogs and automatically applies enhancement patches to all E-Business Suite Interfaces while making them available for secured common access iProcurement Services Procurement Purchasing Accounts Payable iSupplier Portal Supplier Network* *Complimentary service component of Advanced Procurement Suite

Oracle Advanced Procurement An Example of Modular Adoption
Contract Management Spend Analysis Value Focus early wins and ROI Operate fully integrated or stand alone Lower the time & cost to implement & maintain applications Supplier Enablement Employee Self-Service Other examples of Modular Adoption are: Stand Alone Sourcing and grow from there. Or, if you have good contracts in place, but can’t get adoption, implement Employee Self-Service. Strategic Sourcing Procure-to-Pay Create Savings, Drive Value, & Enforce Compliance Deploy Self Service To Free-up Staff Cut Unit Cost While Streamlining Processes Time

Oracle Advanced Procurement Part of a Unified Information Architecture
Develop Common data model enables a single source of truth Comprehensive suite of applications designed to work together Robust set of integration services based on open standards Modular deployment by business flow Single global instance implementations Contracts Market Projects Sell HR Order Customers, Suppliers, Products, … Finance Plan Maintain Oracle 11i e-Business Suite delivers all the tools needed to help companies transition to become an e-Business. The applications are 100% Internet based - which means that all you need to access the applications is a web browser on your desktop. But more importantly, the applications themselves have been developed with built-in support for all the new internet-enabled e-Business practices. Oracle’s approach to e-business is holistic, extending collaboration and automation across your entire value chain to connect all business processes. Procure Service Make Fulfill

Evolution of Oracle Advanced Procurement
Base Differentiators… New in 11i.9… New in 11i.10… Self-service enterprise requisitioning from suppliers or internal stock Integrated asset and production planning Self-service supplier inquiries and transactions, (e.g. VMI and self-invoicing) Flexible invoice matching including match to receipt Automatic invoice and debit memo generation Project- and budgetary-based purchasing Multi-attribute scoring for reverse auctions and RFQs Open platform for demand, orders, receiving, invoices Integrated spend and supplier intelligence Workflow-driven automation Global agreements Supplier managed and consigned inventory Requester and supplier change requests Supplier registration and profile management Collaborative sourcing Requester “stores” for secure content zones Patent-pending transparent punch-out One-click renegotiation of blanket agreements Expanded XML support including cXML for easing Ariba migrations Time-phased pricing for direct materials Commodity intelligence Services procurement – contingent labor & bus services, negotiation through payment Procurement contracts – global T&Cs standards, negotiation, doc & change mgmt, compliance Formula-based pricing & tiered discounts (Advanced Pricing) Retroactive pricing including automated invoice adjustments Negotiate with subjective scoring and what-if analyses Automatic bid scoring and award (Sourcing Optimization) Shared services procurement Requisition “SmartForms” LPN & lot/serial receiving Supplier managed banking 6

Lower Total Cost of Ownership (TCO)
E-Business On Demand Run on a Single Global Instance You Manage: Oracle Manages: Roles: Needs: Availability Security Performance Change Problems App Admin DB/AS Admin Sys Admin HW Admin 50% Lower Cost 50% Better Svc Core Competence Predictable Cost Consolidate Data Centers and Databases Low Cost Linux Hardware Standardized Open Integration Platform 3x Faster, 5x Cheaper Easy to Automate en Mass Highly Reliable We have the traditional model, or Oracle can manage your technology needs at Oracle’s datacenter or at your own locations. So Why E-Business Suite Outsourcing? A monthly fee for predicable expense – and CEOs / CFOs appreciate knowing the cost to run their application systems each month with no surprises. At a minimum you receive: 50% better service faster implementation which equals accelerated time to ROI access to the latest functionality no constraints dealing with people, training staff, and infrastructure issues all of this without worry -- it is taken care of by the software expert, as it should be. Standardized Open Integration Platform Business events system exposes integration points as standards-based OAG documents, on a JMS queue, or as Web Services Standard B2B Protocols such as OAG, RossettaNet, HL7, EDI Common integration repository catalogs and automatically applies enhancement patches to all E-Business Suite Interfaces while making them available for secured common access Business Events Infrastructure Industry Standard Protocols Centralized Integration Repository Oracle’s Experience with Linux Customers, Suppliers, Products, … Production Midtiers 100% Linux Production DB RAC Cluster (Unix) Demo Environments 100% Linux Development 100% Linux Outsourced Customers 70% Linux Simplify B2B Integration, Application Connectivity, and Process Management

Lower Total Cost of Ownership (TCO) Run on a Single Global Instance
30 Languages Multiple Currencies Customers in 100+ Countries All Languages Installable in Same Unicode Instance Support for Statutory and Customary Local Requirements 6

Customer Case Studies In closing, lets take a look at the customers who are selecting and using the Order Fulfillment solutions and the benefits they are receiving.

Leading Private Ivy League University
Largest private employer in Philadelphia with 12,300 employees 22,300 students; 233,000 living alumni; 151 buildings over 269 acres $495M annual purchasing spend; over 240,000 transactions Live on 11i iProcurement, Financials, General Ledger, Payables, Cash Management Reduced invoice processing cost as much as 98% and processing time by 40% Raised Accounts Payable productivity by 20% Lowered procurement prices by as much as 35% Saved $74M in indirect procurement Increased central purchasing productivity by 100%

$1B+ global manufacturer of electronic instruments and electric motors
7,800 employees at 40 plants worldwide produce 50 million motors 2,700 users at 27 sites Chose Oracle over SAP and Baan Live on 11i iProcurement, Financials, Discrete Manufacturing, Inventory Enabled buyers to more effectively leverage purchasing power Significantly reduced administrative costs “We conservatively expect our Oracle Internet Procurement initiative to reduce our maintenance, repair, and operating spend by 10%, resulting in millions of dollars in savings and a substantial positive impact on earnings.” Bill Lawson, CIO Reduced procurement costs by 14% Standardized & streamlined processes with 20,000 global suppliers Oracle Procurement expected to handle $500M in annual spend

$132B global business leader
48 distinct operating units 305,000 employees in over 100 countries Live on Procurement 11i Integrated with Oracle Inventory, Projects, HR 8 separate operating units: Capital, Aircraft Engines, Medical Systems, Plastics, Transportation, Lighting, NBC Instituted in 5 languages “We have already realized significant savings from implementing Oracle iProcurement 11i and anticipate more.” – Gary Reiner, Senior VP and CIO Granted 35K users access to 800K approved catalog lines Achieved complete integration % electronic

Summary Questions?

Rethinking the Routine
Strategic Supply Optimization Spend Analysis Contract Negotiation High Value Monitor & Review Controls Internal Benchmark Delivery Project- Based Procurement Medium There are four key drivers that create pressure for order fulfillment solutions: Environment Flux puts increased competitive pressures on all companies. In turn, smaller companies are not able to survive and are turning to mergers and acquisitions to remain competitive. Internet selling means order volumes are increasing, but the demand is unpredictable. In addition, the ability of the customer to personalize/customize their purchases means smaller orders. To meet customer needs, companies must establish just-in-time solutions to get the right product out the door. Limited buffer stock (and low work-in-process) allows companies to respond quickly these new customer orders. Supply Chain Agility is needed to rapidly adopt new technology innovations that are consistently being introduced. Increased globalization and dispersed customer bases have led to complex supply chain models to efficiently move products. Maximizing profit and customer service mean that companies must focus on the lowest total cost. This is a combination of quality, delivery, service, and price. This requires more complete information systems to evaluate suppliers on all these dimensions. Answering Supplier Queries Helping Requesters Managing Content Creating Manual Orders Low Staff Consumption

Rethinking the Routine Automate Routine Tasks, Focus on High-Value Activities
Strategic Oracle Advanced Procurement Supply Optimization Spend Analysis Contract Negotiation High Value Monitor & Review Controls Internal Benchmark Delivery Project- Based Procurement Medium There are four key drivers that create pressure for order fulfillment solutions: Environment Flux puts increased competitive pressures on all companies. In turn, smaller companies are not able to survive and are turning to mergers and acquisitions to remain competitive. Internet selling means order volumes are increasing, but the demand is unpredictable. In addition, the ability of the customer to personalize/customize their purchases means smaller orders. To meet customer needs, companies must establish just-in-time solutions to get the right product out the door. Limited buffer stock (and low work-in-process) allows companies to respond quickly these new customer orders. Supply Chain Agility is needed to rapidly adopt new technology innovations that are consistently being introduced. Increased globalization and dispersed customer bases have led to complex supply chain models to efficiently move products. Maximizing profit and customer service mean that companies must focus on the lowest total cost. This is a combination of quality, delivery, service, and price. This requires more complete information systems to evaluate suppliers on all these dimensions. Answering Supplier Queries Helping Requesters Managing Content Creating Manual Orders Low Staff Consumption

Goal: Achieve World Class Procurement Drive 60% Higher Savings from Procurement
Performance Indicator Typical Purchasing Organization World Class Purchasing Organization Comparison Summary FTE per $Billion of Spend 104 54 48% Less Staff Total Cost of Procurement (as % of Spend) 1.03% 0.72% 30% Lower Costs Suppliers Per $Billion of Spend 7,805 3,512 More Buying Power Technology Investment per $Billion spend $1.1 Million $1.4 Million Better Information Procurement Investment = Technology Investment + Staffing Costs + Direct Process Costs Shift investment in procurement to higher-value activities Reduce staff by swapping labor for technology Source: Hackett Group

Oracle Advanced Procurement
Reduce Spend on Goods and Services Streamline Procurement Processes Enforce Policy Compliance OK, let’s wrap it up. There are four takeways about the Order Management /Fulfillment solution that we want to leave you with. First, its complete. Second, its collaborative. Third, its flexible. Fourth, its integrated out of the box. Any final questions? Thanks for your attention.

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