[ppt]value chain planning development update q1...
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Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Highly Restricted1
Oracle MDM Partner Summit
Supplier Hub… Supplier Management Update
Mark PeacheyDirector, Product Strategy
20/21/22 May 2014Oracle HQ
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Highly Restricted2
Agenda Supplier Management – It’s Different! Business Update - How Are We Doing? Product Updates - What Have We Done? Roadmap - Where Are We Going? Customers - What Are They Doing?
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Highly Restricted3
Supplier ManagementInvitation Self Registration Profile &
Pre-Qualification
Recurring Assessments
Retire
Administer
Retire Performance Analysis & Mgmt
Identify
Enable
Supplier Master Data
Profile, Classification, Bank Detail, etc.
Contracts
Compliance & Risk Assessment
Exchange Documents
Change Management
Identify
Collaborate
B U Y E R
o Increase Accuracy of Spend Analysis
o Lower Supplier Collaboration Costs
o Improve Supplier Performance
o Reduce Supplier Management Costs
o Simplify Supplier Selection and Reduce Risk
o Enhance Supplier Compliance
o Streamline Procurement Processes
S U P P L I E R
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SM - Critical to Procure-to-Pay AutomationOrganizations are Focused on Reducing Manual Effort
Transaction Execution
e.g. Procurement Orchestration Program Management
Procure-to-Pay Automation
e.g. Supplier Development
Apply Agreement
Terms & Conditions
Receive Electronic
Invoice
Apply Auto-Source
Rules
Create Purchase
Order
Dispatch Electronic
PO to Supplier
Auto-Approve
Minor Changes
Receive Goods or Services; Inspect
Pay Supplier
(EFT)
Free Staff for Higher-Value Activities
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B U Y E R S U P P L I E R
Efficient Business Document ExchangeReduce Process Errors, Manual Effort, and Lag Time in Transactions
Change Orders
Forecast & Schedules
Shipment Notices & Work Confirmations
Orders
Invoices & Payments
Supplier Registration & Profile Management
ver1
ver2
Time Cards
Catalogs
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B U Y E R S U P P L I E R
Efficient Business Document ExchangeReduce Process Errors, Manual Effort, and Lag Time in Transactions
Supply Base
Oracle Supplier NetworkTransaction Delivery for High Volume
Suppliers
iSupplier PortalLow Volume Collaboration
Inquiry for All
High Volum
e
Low Volum
e
ver1
ver2
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MDM for SuppliersUnify and Share Critical Info about an Organization's Supply Base
Trusted Supplier
Data
Legacy Legacy Consolidate Supplier InformationFlexible data import formats across heterogeneous systems, advanced attributes and relationships models, and configurable rules governing a ‘golden’ supplier record
Cleanse and Enrich Supplier Info Embedded data-quality tools, fuzzy matching de-duplication and intelligent merge, and integration to third party data sources like D&B and Trillium
Share Supplier Info across Silos Comprehensive business events, syndication and federation services, and real-time message delivery
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Improve Pricing, Reduce Costs
Reduce price of goods & services– Consolidated supplier master critical for effective spend analysis– Model supplier relationships to determine true spend– Effective use of spend ‘budget’ in contract negotiations
Streamline administration to cut costs– Manual data maintenance; time-consuming & expensive– Inconsistent supplier data > high levels of repetition– Avoid rework caused by ‘stale’ profile data
Benefits of a Unified Supplier Master
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Improve Collaboration Efficiency
Drive down collaboration costs– Reduce/remove costs of processing paper documents
E-Invoicing is typical focus – but outbound also key Transition significant number of suppliers to electronic connection Opportunity to refresh role of AP team
Shift document/data validation towards supplier– Avoid validation failures following document delivery
Shrink cycle times for order changes & invoices– Avoid shipping errors– Enable invoice discounting opportunities
Streamline Coordination with Suppliers
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Control Relationship Costs
Minimize ‘social’ costs of supplier relationships– Provide suppliers with real-time ad hoc inquiry access – Reduce number of unnecessary contact events– Enable shift to value-add/strategic activities within Procurement
department Reduce customer ‘friction’ for suppliers
– Minimize doing-business costs for suppliers– Collaboration platform ensures efficient relationship– Everybody gets a scorecard!
Streamline Supplier Support & Avoid Pricing Pressure
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Manage the Unexpected
Improve ability to deal with Supply Chain disruptions– Enable effective contingency planning– Speed-up reaction time to unexpected events– Modeling of extended (N-tier) supply chain
Provide better risk foresight– Synthesize risk information across organization– Eliminate redundant risk & compliance checks– Pool tribal data from all available sources for better insight
Individual knowledge, tracking xls, email
Prepare-for & Manage Supply Chain Disruptions
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Plan for Business Growth
Leverage supply base knowledge for effective strategic planning– Validate growth plans– Assess new market opportunities– Inform acquisition strategies
Foundation for Strategic Planning
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Agenda Supplier Management – It’s Different! Business Update - How Are We Doing? Product Updates - What Have We Done? Roadmap - Where Are We Going? Customers - What Are They Doing?
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Highly Restricted14
Strong rebound in Q3 performance(cf. Q3FY13)
Over 140 licensed customers
More than 60 deals generated $100k+ license revenue
Licensing - TTM Revenue
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SLM sales continue to outpace SDH~ 2:1
Risk/Compliance more critical than Data Quality
Licensing - Product Split
Sales by Quarter
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Rank Customer Name OneVoice Industry Apps1 7-ELEVEN Retail SLM & SDH2 KIER LIMITED Engineering & Construction SLM & SDH
3 WORLD FUEL SERVICES CORPORATION Oil & Gas SDH
4 LOGITECH INC High Technology SLM5 CITY OF CHICAGO Public Sector SLM
6 AMWAY (CHINA) COMPANY LIMITED Life Sciences SLM & SDH
7 OTSUKA AMERICA PHARMACEUTICAL INC Life Sciences SLM & SDH
8 CHENIERE ENERGY, INC. Oil & Gas SLM & SDH
9 THE KROGER CO. Retail SLM & SDH
10 BIOGEN IDEC Life Sciences SLM
11 ORIGIN ENERGY SERVICES LIMITED Professional Services SLM & SDH
12 MIDEA GROUP CO.,LTD Industrial Manufacturing SLM
FY14 - Top Deals
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SH & SLM – Customer Base
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Analysts and Press OpenWorld & Value Chain Summit
– SLM/SDH Update Highest attended Procurement track sessions at both events
– Positive coverage from SpendMatters:“At Oracle OpenWorld this week, one of the most popular procurement sessions I went to was a breakout session on Oracle’s Supplier Lifecycle Management (SLM) and Oracle Supplier Hub products, with over 100 attendees. Based on all of our discussions with customers and others at OpenWorld, there is very significant demand for these products at the moment.The addition of these two products… provides differentiation for E-Business Suite in comparison to Ariba.”[ http://spendmatters.com/2013/09/26/product-roadmap-update-oracle-e-business-suite-supplier-lifecycle-management-oracle-supplier-hub/ ]
Excellent Gartner case study of Cummins SDH/SLM project has been published
– Oracle has acquired distribution rights (see Marketing ppt)
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Agenda Supplier Management – It’s Different! Business Update - How Are We Doing? Product Updates - What Have We Done? Roadmap - Where Are We Going? Customers - What Are They Doing?
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Highly Restricted20
Product Development Update Shipped: 12.1.3+
– Mandatory internal requirements– Updated Approval Management; support for parallel approvals, action-required notifications– Enhanced supplier registration flow; guided navigation, contact-address association– Reactivation of rejected supplier requests– Unified Supplier Change Business Event
Close to Release: 12.1.3+/12.2.4– Boilerplate updates – Streamlined supplier merge process– Enhanced pre-Qualification templates / conditional questions in RFx templates– Update Evaluation reponse
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Consolidated SLM User Interface:
Planned Home page for Supplier Admins
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Planned:Assessment Creation
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Planned:Assessment Setup Pages
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Planned:Supplier SLM “Home” page
Evaluations
Evaluations
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Planned:Home page for evaluators incorporated into iProcurement
Evaluations
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Supplier Hub
Problem– Several business events for different attributes
Some attributes raise AP event, and some raise TCA event In some cases, both AP and TCA events are raised Inconsistent behavior Users have to subscribe to several events
– No event raised for some attributes Banking Information, Tax Details, Business Classification, Products &
Services, etc.
Unified Supplier Profile Business Event
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Supplier Hub
Solution– Introduces a new unified Supplier Profile Business Event
Name: oracle.apps.pos.supplier.profile Whenever a supplier or any of its entities (address, site, contact, etc.) is
created or updated, this event will be raised– The event parameters will contain the details on which supplier and which
entity raises the event
Unified Supplier Profile Business Event
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Supplier Hub
Event Parameters– VENDOR_ID– PARTY_ID– TRANSACTION_TYPE
(CREATE/UPDATE/DELETE)– ENTITY_NAME– ENTITY_KEY
Unified Supplier Profile Business EventEntity Name Entity Key Entity’s Base Table
SUPPLIER - -
ADDRESS party_site_id hz_party_sites
SUPPLIER_SITE vendor_site_id ap_supplier_sites_all
CONTACT party_id hz_parties
BUSINESS_CLASSIFICATION classification_id pos_bus_class_attr
PRODUCTS_SERVICES classification_id pos_sup_products_services
TAX_DETAILS vendor_site_id ap_supplier_sites_all
TAX_REPORTING vendor_site_id ap_supplier_sites_all
BANKING_DETAIL - -
PAYMENT_DETAILS ext_pmt_party_id iby_pmt_instr_uses_all
CONTACT_POINT contact_point_id hz_contact_points
EMAIL_DOMAIN email_domain_id hz_email_domains
PARTY_RELATIONSHIP relationship_id hz_relationships
GENERAL_CLASSIFICATION code_assignment_id hz_code_assignments
IMPORT batch_id pos_imp_batch_summary
MERGE_SUPPLIER batch_id hz_merge_batch
MERGE_SITE vendor_site_id ap_supplier_sites_all
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.29
Supplier Hub
Other flows that also raise this event:– Supplier Import– Supplier Merge
Exception– For UDA, this new event will not be raised, the following events will be
raised by the UDA Framework instead (existing behavior): oracle.apps.pos.sdh.ext.preAttributeChange oracle.apps.pos.sdh.ext.postAttributeChange
Unified Supplier Profile Business Event
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Agenda Supplier Management – It’s Different! Business Update - How Are We Doing? Product Updates - What Have We Done? Roadmap - Where Are We Going? Customers - What Are They Doing?
Safe Harbor: The preceding 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Copyright © 2013, Oracle and/or it’s affiliates. All rights reserved.
Supplier Management
• Enhanced Qualification Approval Routing- Support for parallel approvals, approval
groups and FYI reviewers
• Mandatory Internal Requirement
• Contact Address Association
• Keyword Search
• Control default user creation
• Reinstate a rejected supplier
• Streamlined Prospective Supplier Registration
• View Prospective Supplier Registration Status
• Unified Profile Change Business Event
• Update Evaluation after submission- Evaluation can be updated after
submission and before the RFI is completed
Supplier Management
• Dynamic Qualification Template Criteria- Based on supplier profile pre-qualification
questionnaire is automatically updated
• Consolidated SLM user interface
• Enhanced Search for Supplier Registrations
• Approval History on Supplier Profile
• Provide Rejection Reason LOV
• IBAN Support
• Streamlined Supplier Merge UX
Supplier Management
• Automated RFI process
• Dynamic Invitation Lists
• Compliance Documentation Tracking
• Historical tracking of Supplier Profile
• Extensible Supplier Contact Directory
• Site Tagging for D&B Extract
• Expose Cross Reference Data in Batch Mgmt
• VAT Compliance for iSP Invoicing
• Support Approval Management for RFI Internal Evaluation
New Features What’s Next0-12 month planning cycle
Future DirectionsPost 12 month planning cycle
Oracle Applications: Current Release and RoadmapOracle E-Business Suite: Supplier Lifecycle Management & Hub
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.32
Moving Forward - Candidate Features Supplier Lifecycle Management
– Improved tools for managing & tracking document attachments
– Automated RFI Evaluation process
– Dynamic invitation lists
– Event-based RFx triggers (automated audit, performance tracking etc.)
– Smart classifications
– Consolidated Supplier Profile Change History View
Supplier Data Hub– Support UDA for supplier contact, New Contact Tab like Org and Person- a separate Tab
– Search for Extended Supplier Contracts and Contact Attribute
– Cross system reference- expose source systems in the UI- for Supplier Site Add AP_SUPPLIER_SITES to HZ_ORIG_SYS_REFS
– Simplified "Enable As Supplier" option (no DQM) for customers without SDH
– Supplier site flagging for the D&B extract process
– Visualize Relationship viewer
– Real Time Address Validation
– Hierarchy Management
– D&B purchase Attributes to be viewed after purchase
Virtual CAB Meeting- o -
Targeted for (late) June- o -
Customers & Partners
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.33
Agenda Supplier Management – It’s Different! Business Update - How Are We Doing? Product Updates - What Have We Done? Roadmap - Where Are We Going? Customers - What Are They Doing?
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Highly Restricted34
Customer Status Live
– Ameren SLM
– Huawei SDH+SLM
– Cummins SDH+SLM
– TDIC SLM
– Colruyt SDH+SLM
– City of Nashville / City of Chicago SLM
– NBN Co. SDH
– TJX SLM
Implementing– Nucor SDH
– State Street Bank SDH+SLM: Using D&B enrichment
– Black & Veatch SLM+SDH
– Jacobs Engineering SDH?
– Oracle GSI SLM: Multi-country rollout
– Sandia National Labs SLM
Planning Deployment– Ahold
– NHS (UK)
– Cochlear
#C1
4LVAbout Ameren…
35
■ Electric Customers 2.4 Million■ Gas Customers ~1 Million■ Service Area 64,000 Sq
Mi■ Generation 10,300 MW■ Electric System Miles 85,400■ Gas System Miles 21,000■ Total Assets $22 Billion■ Total Revenues $6.6 Billion■ Employees ~8,500■ Fully Regulated
Presenter Introduction:Chris Nelms leads the operations team charged with the ongoing strategic implementation of processes & systemic changes around the source-to-settle program (S2S) which include further enablement of electronic supply chain collaboration. A licensed PMP, he holds an MBA and two Bachelor of Science Degrees.
#C1
4LVHistorical Supplier Situation…
Supplier Insurance Maintenance■ 2009 Corporate Project Oversight Committee (CPOC) formed■ Insurance requirements were increased in rigor during this approximate
time frame■ Browz (www.browz.com) was implemented to handle insurance
certifications for all services suppliers with =/> $25K annual volume■ All other services suppliers are handled manually in MS Access that
containing the summary abstraction of the insurance in force for each supplier.
■ Access DB allowed for single user only■ Roughly 5000 services suppliers maintained in Access■ Re-certifications tend to be received at CY mid year and year end■ Always a backlog of data entry on insurance. Always.
36
#C1
4LVNew Supplier Addition Process…
■ Any Requisitioner in any Business Line can request any supplier■ No real supplier vetting process in place
▪ Buyers rationalization – Easier to setup than to research▪ In most cases the new supplier was just added, no questions asked
■ If a supplier insists on a credit application being completed:▪ Ameren has no credit department per se▪ Personal involvement▪ Hard push back on every request, insisting that due diligence in finding an existing,
registered supplier be engaged▪ If after due diligence we were compelled to add the supplier, we provide a standard
response including trade references and other descriptive information about the company
■ Nothing really discouraging the addition new suppliers based on request alone
■ New suppliers crept in incrementally over time37
#C1
4LVSupplier Maintenance Costs…
38
This reference from the AMR shocked us:
■ We didn’t know if this high end cost applied to us
■ We did know we were not considering the cost of supplier maintenance as such
■ We did know there were efficiencies Oracle AP and Purchasing by themselves were not addressing
“…companies are spending up to $1,000 per supplier annually…however, when information, enabled by technology, becomes visible across the organization, costs per supplier quickly dwindle to below $150 per supplier.” - AMR Research, June 2009
#C1
4LVFunctionality Areas…
Insurance Certification Management■ Allows multiple users into the DB simultaneously
■ Effectively reduces the cycle throughput of maintenance and update by at least half
■ Justification for entire SLM module was covered by productivity improvements on this single point
■ In conjunction with extensive supplier search and grouping capability, improves supplier selection and grouping for sending mass actionable eMail notifications
Insurance Certification Lookup/Reference■ Buyers and Sourcing people no longer rely on worksheet index to determine if valid
insurance is in force
■ They review directly in Oracle with an image of the certificate available
39
#C1
4LVFunctionality Areas…
Functional Certification Management■ In addition to Insurance which is handled separately, SLM handles these
certificate types as well for Ameren: Abatement (general) certified Asbestos certified Health / Environmental certified Training certified ASME certified
The certificate area is wide open to accommodate a wide variety of certification management needs and can be augmented later as business needs change
40
#C1
4LVFunctionality Areas…
CyberSecurity Certificate Retention■ IT developed an elaborate (50+) question CyberSecurity Questionnaire■ Use applicable for some IT suppliers only■ Approval of CyberSecurity aspect separate from Purchasing/Sourcing
approval■ SLM will contain the questionnaire as a stand alone attachment only on CS
approved suppliers
41
#C1
4LVFunctionality Areas…
■ Qualification Management (Supplier Diversity)
▪ SLM engages the Sourcing RFI process when users send requests for update out to suppliers
▪ Registered suppliers can then update their information directly on SLM
▪ Diversity takes these qualifications in via approval
▪ A third party is used to validate supplier qualifications twice per year
42
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.43
Q&A
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.44
The preceding 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.45
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.46
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