Enterprise SRM Procure to Pay Update Tom Anthony Sr. Director, Product Strategy.

Enterprise SRMProcure to Pay Update

Tom Anthony

Sr. Director, Product Strategy

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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a

commitment to deliver any material, code, or functionality, and should not be relied upon in

making purchasing decision. The development, release, and timing of any

features or functionality described for Oracle’s products remains at the sole discretion of

Oracle.

Legal

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Thought of the Day

On Wednesday, at two minutes and three seconds after 1:00 in the morning, the time and date will be:

01:02:03 04/05/06

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Agenda Topics

• Procurement in General• Enterprise SRM Update: 8.9, 9.0, and beyond• Fusion Overview: A Procurement Perspective• Activities between now and ‘08

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Business ChallengesBusiness Challenges

ProcurementProcurementOrganizationOrganization

Increasing Savings TargetsIncreasing Savings Targets• Same or greater % every yearSame or greater % every year• Resource constraints – Resource constraints –

“save more with less”“save more with less”• Inflation, currency fluctuationInflation, currency fluctuation

Increasing Savings TargetsIncreasing Savings Targets• Same or greater % every yearSame or greater % every year• Resource constraints – Resource constraints –

“save more with less”“save more with less”• Inflation, currency fluctuationInflation, currency fluctuation

Compliance ConcernsCompliance Concerns• Low visibilityLow visibility• Contract leakageContract leakage

Compliance ConcernsCompliance Concerns• Low visibilityLow visibility• Contract leakageContract leakage

Organizational ChallengesOrganizational Challenges• Insufficient policy influenceInsufficient policy influence• Fragmented processesFragmented processes• Staff consumed by routine Staff consumed by routine

processingprocessing

Organizational ChallengesOrganizational Challenges• Insufficient policy influenceInsufficient policy influence• Fragmented processesFragmented processes• Staff consumed by routine Staff consumed by routine

processingprocessing

External PressuresExternal Pressures• OutsourcingOutsourcing• RegulatoryRegulatory

External PressuresExternal Pressures• OutsourcingOutsourcing• RegulatoryRegulatory

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Shift investment in procurement to higher-value activitiesShift investment in procurement to higher-value activities

Reduce staff by swapping labor for technologyReduce staff by swapping labor for technology Source: Hackett GroupSource: Hackett Group

Performance Indicator

TypicalPurchasing

Organization

World Class Purchasing

OrganizationComparison Summary

FTE per $Billion FTE per $Billion of Spendof Spend 104104 5454 48% Less Staff48% Less Staff

Total Cost of Total Cost of ProcurementProcurement

(as % of Spend)(as % of Spend)1.03%1.03% 0.72%0.72% 30% Lower Costs30% Lower Costs

Suppliers Per Suppliers Per $Billion of Spend$Billion of Spend 7,805 7,805 3,5123,512 More Buying PowerMore Buying Power

Technology Technology Investment per Investment per $Billion spend$Billion spend

$1.1 Million$1.1 Million $1.4 Million$1.4 Million Better InformationBetter Information

Goal: World Class ProcurementDrive 60% Higher Savings on Procurement Investment

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Best Practices Procurement

Best Practice•Maximize Self-Service•Enforce approval and tendering policies•Leverage Automated Sourcing Tools•Control budgets via tolerance and exception notifications•Establish and monitor spend objectives•Utilize Procurement Cards

Benefit•Focus on strategic activities•Gain visibility and control over spending•Improve internal policy compliance•Maximize contract spend•Leverage supplier base•Improve productivity

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Best Practices Payables

Best Practice•Eliminate paper invoice (use ERS, web-invoicing, XML/EDI)•Enable supplier self-service•Leverage auto-matching rules•Enable duplicate invoice/vendor setup checking•Limit non-PO invoices

Benefit•Improve internal policy compliance•Improve productivity•Improve accuracy•Take advantage of payment discounts•Reduce supplier inquiries, increasing time analysts can spend on more value-added projects.

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Procurement Transformation

High

Str

ate

gic

Va

lue

Maturity

Cost ProcurementTouchless Buying

Policy Enforcement

Contract Negotiation

Spend Management

Tactical BuyingCreate Manual Orders

Answer Supplier Queries

Help Requesters

Manage Content

Strategic ProcurementValue Creation

Collaborative Procurement

Supply Optimization

All Categories, All Processes

Low

High

Low

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What Customers Are Achieving…

automated and streamlined procurement process

saved $120,000 per month with reduced payment times

reduced prices by 10-30%

buyers now focused on strategic activities

saved 20% of spend in Food and Beverage category

reduced inventory levels by 50%

saved $1.5 – $2M annually, positive ROI < 3 years

saved over $75M from contract consolidation

increased productivity led to multi-million dollar savings

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PeopleSoft Enterprise SRMThe Integrated Suite That Dramatically CutsAll Supply Management Costs

DemandDemandCollectionCollection

IndirectIndirectGoodsGoods

DirectDirectMaterialsMaterials

EngineeredEngineeredGoodsGoods

ServicesServices ApprovalRoutingApprovalRouting

TouchlessBuyingTouchlessBuying

Automated PaymentAutomated Payment

Enforce Policy ComplianceEnforce Policy Compliance

Budget-BasedProcurementBudget-BasedProcurement

ContractManagementContractManagement

SupplierPerformanceSupplierPerformance

Reduce Spend on Goods and ServicesReduce Spend on Goods and Services

CategoryManagementCategoryManagement

OnlineSourcingOnlineSourcing

SpendAnalysisSpendAnalysis

Streamline Procurement ProcessesStreamline Procurement Processes

SupplierSupplierCollaborationCollaboration

SettlementSettlement

OrdersOrders

ProfileProfileManagementManagement

SupplierSupplierNetworkNetwork

LogisticsLogistics

SupplierSupplierPortalPortal

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eProcurement 8.9:Simplified ProcessingAccelerate Self-service Adoption

• 3 step process 3 step process simplifies simplifies requisitioningrequisitioning

• Line Level ApprovalsLine Level Approvals

• Mass approvals and Mass approvals and email-based email-based approvals approvals

• Redesigned pages Redesigned pages provide more provide more information with information with fewer clicksfewer clicks

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Capture More Spend, More Efficiently

Extend Services Spend Programs Across Globally

Improve Total Workforce Management

• Vendor-managed services

• Skills matrix

• Deliverable-based expense capture

• Multi-resource work order

• Multi-project work order

• Improved notifications

• Global time and expense reporting

• Multiple time-based work order alerts

• Full rate sheet breakdown structure, including expenses

• HCM Person ID integration

• Normalized terminology with HCM

• Integration to HCM Talent Acquisition Manager module

Services Procurement 8.9 Greater control and oversight

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PeopleSoft Enterprise SRM 8.9The Contract Lifecycle Management Release

Sourceand Award

Execute

Amend, Renew,

or Close-out

MonitorPerformance

Central Clause Library

Document Configurator

Collaborative Authoring

Online Negotiation

MS Word Integration

Approval Workflow

Agreement Management

Version Control

Contract Syndication

Contract

Exploit More Savings OpportunitiesExploit More Savings Opportunities

Convert Negotiated Savings

into Real Savings

Convert Negotiated Savings

into Real Savings

Increase Procurement Process Effectiveness Increase Procurement Process Effectiveness Now available for 8.8!

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SRM 9.0 Planned FeaturesExtend Customer InvestmentContract Mgmt

Request for ContractSLA ComplianceContract and Library Upload / Import Misc. Customer Enhancements

Amount Only RequisitionsShift and Assignment Support in Services Procurement Special Request, Favorites, and Templates Enhancements

Supplier Contract Management 8.8

Greater Business InsightBuyer Dashboard

Superior Ownership ExperienceArchiving Documentation

Reopen Specific Closed Requisitions and Purchase Orders

XML upload for Sourcing event creation

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Fusion Update

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• Applications driven by business processes– From implicit to explicit processes

• Business Intelligence is not an afterthought– Good BI needs to be in the DNA of applications

• Applications that can be configured and integrated with ease– Applications must increasingly fit in a heterogeneous

environment

• Applications that are cheaper to deploy and operate

Oracle’s Application Vision

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• Industry Relevance is a must– We have too know and manage industry processes in

minute detail

• Application customers want consolidation• Standards always win

– At a business level (Rosettanet, HL7, SWIFT etc.)– At a technology level (J2EE, WSI-*, XML etc.)

• Providing a full technology stack is an advantage– Significantly reduces cost

Oracle’s Core Beliefs

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Fusion Overview

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Recent Activities

Greatest Business InsightInformation You Can Trust

• Single data model for single source of truth, but set for heterogeneity

• Centralized data with additional data hubs

• Embedded analyticsand management reporting

• Real-time operational analysisand ability to take related actions

• Industry specific KPIs

• Open to third party data

Deep and AdaptiveIndustry ProcessesInformation You Can Use

• Industry-based configuration

• Modularized services

• Broad API / web services support

• Enhanced interoperability through standards-based, open platforms

• User experience personalization

• Standards-based extensibility

• Tailored business process flows

• BPEL Certification

Superior Ownership ExperienceInformation You Can Manage

• Automated, tailored installs

• Functional components for individual upgradeability

• Minimal downtime upgrades

• Active system and business monitoring

• Self-supporting, self-tuning

• In-place education

• Packaged integration… from server technology, middleware, to applications

Sample BI by Role

Role for BP/Product Key Questions Sample Metrics

Procurement VP Is enterprise spend increasing/decreasing?

% Spend Change vs Sales Change; % Non-PO Spend of total spend; % Contract/Non-Contract Spend

Procurement Mgr How much automation is the procurement dept achieving?

% of automated Pos and sources; Average Days to Approve REQ and PO; %Reduction of Cycle Time

Buyer / Commodity Mgr What tasks need my attention?

Overdue POs; Reqs to be sourced; Contracts Expiring

Supplier How is my quality? How is my on-time performance? How is my ship quantity performance?

% Receipts Rejected; % Late Shipments; % Qty Received = Qty Ordered

Other Apps

PTPBusinessProcess

Supplier

Create Requisition

ApproveCreate Invoice

CreatePO

OracleSOA

OracleSOA

SupplierWebsites

Order Management

<XML><XML>

<XML><XML>

5

Requisition

1

1

SOA Example: Procure to Pay

DispatchPO

ReceiveSource

Get ApproverList

ALMLegacy

PurchasingEmployeeDirectory

3

AvailabilityCheck

AvailabilityCheck

InventoryManagement

Legacy Inventory

4

5

Catalog Punchout

2

ElectronicPO/ACK

7

ASN

9

Invoice

10

Legacy PO/ALM

Logistics Billing

Synch POData8

CalculateTax

6

3rd Party Tax

Some Benefits to Enterprise CustomersProcurement

• XML Publisher (including eText)

• Reduced number of batch processes

• Improved Blanket Orders

• Contract Budget Checking

• Retainage

• Streamlined change requests

• Transparent punch out

• Payment terms negotiation

• Sourcing Line Grouping

Some Benefits to EBS CustomersProcurement

• Graphical Hierarchies (Trees)

• Shared reference data (Setid)

• Streamlined Internal Orders

• Landed Cost

• Line Level Approvals

• Encumbrance Accounting

• Notes and Attachments

• Improved Auto-sourcing Logic

• Improved Sourcing Optimization

• Sourcing Project Management

• Word and Excel Integration

Everyone Will Get ThereWhy You Will be Successful…

• Best in class intellectual property from PeopleSoft, Oracle, and JD Edwards

• Unparalleled level of investment, including applications and server technology divisions

• History of successful migration across technologies

Automated Upgrades To Next Releases And To Fusion

PeopleSoft Enterprise 8.88.99

JD Edwards EnterpriseOne 8.11

8.12

Oracle E-Business Suite 11i.10

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CurrentRelease

NextRelease

Info

rmat

ion

Ag

e A

pp

lica

tio

ns

Activities between now and ‘08

Breakout Sessions

• Ask “how do you”, “has anyone else”, …

• Take advantage of “lessons learned”

• Influence direction of Enterprise SRM

• Influence direction of Fusion

Customer Usage Surveys

• What is it?

– Online functional usage questions

• Why participate?

– Provides a source of guidance and input into Fusion process

• Where do I find them?

– http://www.iouc.org/index.php?mo=st&op=ld&sid=s1_005_fusion&stpg=57

http://www.iouc.org/index.php?mo=st&op=ld&sid=s1_005_fusion&stpg=57







Customer Usage Scripts

• What is it?

– Scripts that provide insight into the usage and customization profile of your PeopleSoft system for Oracle’s analysis

• Why participate?

– Provides one source of guidance and input into Fusion process

• Where do I find them?

– http://www.peoplesoft.com/corp/en/support/user_groups/index.jspLogin to Customer ConnectionClick on SupportClick on User GroupLook under other resources on the right hand side and you will find "SQR Script File and Instructions for Enterprise Customers”

• What have you found so far?

http://www.peoplesoft.com/corp/en/support/user_groups/index.jsp

http://www.peoplesoft.com/corp/en/support/user_groups/index.jsp

Purchasing Summary• 57 purchasing customers in database

• Industry breakdown for those customers– Education and Research - 27

– Financial Services - 6

– Communications - 3

– Public Sector - 7

– Health Care - 4

– Life Sciences - 1

– Industrial Manufacturing - 2

– High Technology - 2

– Media and Entertainment - 1

– Professional Services - 1

– Consumer Products – 1

– Blank - 1

Sample:Purchasing Feature Usage Analysis

Feature Correlated ObjectName

Customer Usage %

Key Volume Fact

Purchase Order Price Adjustments

PO_VAL_ADJ where number of rows > number of PO_LINE_SHIP rows

22 (38%)

Requisitions that average at least 3 schedules per line

REQ_LINE_SHIP / REQ_LINE > 2

0 Customers typically have one requisition schedule per line

Purchase orders that average at least 2 distributions per schedule

PO_LN_DISTRIB / PO_LINE_SHIP > 2

0 Customers typically have one PO distribution per schedule

PO Approval Workflow

PO_APPROVAL_ WL 19 out of 57 (33%)

Between 10,000 and 165,000

Requisition Approval Workflow

REQ_APPROVAL_WL 15 (26%) Between 450 and 550,000

Q&AQ&A

Enterprise SRM Procure to Pay Update Tom Anthony Sr. Director, Product Strategy.

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