oracle final slide deck v1

8/3/2019 Oracle Final Slide Deck v1

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Creating a Roadmap for Best-in-Class SupplierManagementISM Webinar 9th Nov 11

Chris NelmsManaging Supervisor

Supply Chain Process & Systems, Ameren Services Company

Mark Peachey

Product Strategy Director

Advanced Procurement, Oracle


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Prior to ISM, Nora was a supply management professional for manufacturing andretail firms. Nora holds a B.S. from the University of Arizona and an MBA from

Arizona State University.

Senior Vice President

Institute for Supply Management

Moderator - Nora P. Neibergall

Nora Pollard Neibergall, CPSM, C.P.M., Senior VicePresident at Institute for Supply Management. Starting

her career with ISM in1994, Nora now oversees ISMseducational program development, professional credentials,public relations, marketing and sales efforts.


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Todays Web Seminar Will Focus On

Understand the role of supplier management and itsinterdependence with other supply management disciplines

Learn best practices for developing organization structures, charters,and talent that foster ongoing improvement

Review real-world case studies that emphasize changemanagement and supplier involvement

Understand how to develop a technology portfolio that supportsemerging supplier management requirements


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Presenter Chris Nelms

Managing Supervisor, Supply ChainProcess & Systems,Ameren Services Corporation

Prior to joining Ameren in 2004, Chris was a management & technology consultant in the

manufacturing & supply chain systems practice at Cap Gemini and Ernst & Young and hasover 15 years of experience in various consumer products, medical device, aerospace andmanufacturing industries in the areas of process improvement & design, systemsimplementation and project management. He holds an MBA from Maryville University andtwo Bachelor Degrees from Southeast Missouri State University.

Chris leads the operations team charged with the ongoing projectsaround continued eCommerce enablement of Amerens supplybase, and leading the continued strategic implementation ofprocesses around the source-to-settle program (S2S) which include

further enablement of electronic supply chain collaboration usingOracles Advanced Procurement Suite (R12) especially iSupplierPortal and the Contractor Cost Tracking Module (CCTM) a customapplication developed to extend the existing capabilities of Oracles

Services Procurement module."
http://media01.linkedin.com/media/p/2/000/007/150/3bf84a9.jpg


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Director of Product Strategy, E-BusinessSuite Advanced Procurement Applications,Oracle Corporation

Prior to joining Oracle, Mark worked in EMEA as a management consultant, gathering 15years experience on a wide range of IT system implementations for clients in various

consumer goods, pharmaceutical, brewing and manufacturing industries. The projects hewas involved with ranged from the design of shop floor plant control systems, through theintroduction of MRP systems to the deployment of global Supply Chain Planningsolutions. He holds a BSc in Technology & Management Science from Bradford University,UK.

Presenter Mark Peachy

Mark has spent over 10 years in Oracle's Development divisionguiding the evolution of the applications that allow buyingorganizations to streamline their Source-to-Pay processes and

collaborate more effectively with their supply base. Most recently, hewas responsible for designing and introducing a new set of SupplierManagement modules that enable buying organizations to rationalizetheir supplier master data, manage the qualification process, tracksupplier performance and monitor supplier risk factors.


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The following is intended to outline our generalproduct direction. It is intended for informationpurposes only, and may not be incorporated intoany contract. It is not a commitment to deliver anymaterial, code, or functionality, and should not berelied upon in making purchasing decisions.

The development, release, and timing of anyfeatures or functionality described for Oracles

products remains at the sole discretion of Oracle.


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Supplier Management Agenda

What is Supplier Management?

Why is it Important ?

Key Business Challenges

Supplier Management at Ameren

Supplier Management at Oracle

Q&A


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9 Copyright 2011, Oracle and/or its affiliates. All rights reserved.

Compliance CSR / CoC

Labor Practices EH&S

Finance / Credit

Strategic Preferred

Watchlist Improvement Plan Probation

Performance

ManagementRisk

Management

Supplier ManagementExercising Control Throughout the Lifecycle

TransactRetireQualifyDiscover

Online registration

Supplier search

Profile enrichment

Detailed assessment

Compliance checks

Approval process

Review process

End relationship

Close account

Transact

& Review

EnableAccount creation

Electronic connection

Document formats


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10 Copyright 2011, Oracle and/or its affiliates. All rights reserved.10 Copyright 2011, Oracle and/or its affiliates. All rightsreserved.

Spate of Worker Suicides

Customers in Damage

Control to Protect Brand


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Supplier Relationship RisksThreats and Vulnerabilities

Labor Action, Force Majeure / Natural Disaster / Security

Competition Pressures, Transport, Employee Turnover Liens and Claims, Insurance CoverageOperational Risk

Product/Service Delivery Delay / On-Time Performance

Product Quality Issues Out of Specification

Warranty SupportTransaction Risk

Negative Media Code of Conduct Breaches

Potential Criminal Investigations Product Safety Standards / Environmental Safety StandardsReputation Risk

OFAC / Suspect / Debarred Watch-list

Global Public Health

Country - Potential and Readiness for Civil Unrest/Military ActionOther Risk

Code of Conduct / Hazardous Chemical Usage / Worker Cond.

Contract / SLA compliance

E-Waste Leakage etcCompliance Risk

Financial stability / Ability to Grow

Credit Problems, Bankruptcy Business LossesFinancial Risk


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Reducing Supplier Management Cost

Enhance productivity by eliminating paper Supplier on-boarding to include setup for

electronic connectivity

Provide self-service profile administrationto suppliers

Improving Operational Efficiency

Socialize supplier qualification details andperformance evaluations

Flag and track dependable and cost effectivesuppliers

Be assured that spend analytics is completeand accurate

Minimizing Risk, Improving Compliance

Monitor supplier adherence to all laws,regulations & standards

Ensure that suppliers are meeting Code ofConduct requirements

Gain visibility to risk factor trends



Onlineregistrati on

Supplier search

Profileenrichment

Detailedas sessment

Compliancechecks

Approval process

Review process

Endrelationship

Closeacc ount

Transact

& Review

EnableAccountcreation


Documentformats

Avoiding Data Fragmentation

Unify duplicated, incomplete, inaccuratedata held within multiple, disparatesystems

Consolidate & federate shared informationacross instances


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Technical

Data structure or lack thereof

Location, location, location(internal, external, 3rd party)

Variable life expectancy

Organizational Multiple ownership no real control

Impacted by multiple projects from across the organization,e.g. Risk, Finance, Engineering (new product development)

Supplier Management as a discipline

Operational Data volume & visibility

Definition of scope

Executive focus

Hurdles to SuccessPractical Issues That Will Impact Any SM Program


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Key Implementation Considerations

Technical

Organizational Structure

Operational


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Suppliers

Change Orders

Forecast & Schedules

Shipment Notices

Invoices & Payments

Supplier Profile (W9)

v.1

v.2

Time Cards

Catalogs

BuyingOrganization

Supplier ManagementA More Complex Choreography

Email

Phone

Paper

Fax

Orders


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SuppliersBuying

Organization

Supplier ManagementA More Complex Choreography

Email

Phone

Paper

Fax

ChangeOrders

Forecast &Schedules

Shipment Notices

Invoices & Payments

Supplier Profile (W9)

v.1

v.2

Time Cards

Catalogs

Orders

Certification

Insurance

Diversity

Credit

Internal User


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Q&A


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About Ameren

Ameren Corporation, through its subsidiaries, operates as apublic utility holding company in Missouri and Illinois.

It engages in:

Rate-regulated electric generation, transmission, and distributionbusinesses

Rate-regulated natural gas transmission and distribution

businesses Non rate-regulated electric generation businesses.

Ameren Services is where all the common business elements ofthe corporation are housed.

The company was founded in 1881 and is headquartered in St.

Louis, Missouri.


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About Ameren

Electric Customers 2.3 Million Gas Customers 925,000

Service Area 64,000 Sq Mi Generation 15,200 MW

Electric System Miles 81,507

Gas System Miles 20,350

Total Assets $18.1 Billion

Total Revenues $6.5 Billion

Employees 9,400

Regulated in Missouri

Non-Regulated in Illinois


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Database 10g ____ 11g_____2007 2012 ?

Applications 11.5.7 11.5.10.2 R12.0.6_ R12.1.3 / 12.21

Sourcing - 2006 MAY 2009 2012 ?

Procurement Contracts - 2006 MAY 2009 2012 ?

iProcurement 2003 2007 MAY 2009 2012 ?

Core Purchasing 2003 2007 MAY 2009 2012 ?

iSupplier Portal - 2007 MAY 2009 2012 ?

Services Procurement - 2007 MAY 2009 2012 ? Accounts Payable - 2007 MAY 2009 2012 ?

eCommerce Gateway - 2007 MAY 2009 2012 ?

XML Gateway - 2007 MAY 2009 2012 ?

CCTM2 - 2007 MAY 2009 2012 ?

Buyers Work Center - - OCT 2009 2012 ?

(Complex Procurement) iExpenses - - JUL 2011 2012 ?

Hyperion - - DEC 2011 2012 ?

General Ledger - - - 2012 ?

Oracle Footprint and Direction

1Dependent on release timing

2CCTM: Contractor Cost Tracking Module.

Custom bolt on to Services Procurement to handle recurringservices such as engineering, consulting and construction.


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Historical Perspective

2004 - 20,000 systemic registered suppliers 2006 consolidation project leaves ~12,000 remaining

On-going consolidation Present day ~9,000 suppliers

Initial Request (usually from Buyers)

Disallow self registration

Supplier request form in MS Outlook

All new suppliers must use Sourcing & iSupplier Portal

Credit history inquiries handled with standard package

Qualification Insurance Requirements

BROWZ

Supplier Management


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Accounts Payable

Creates supplier in Oracle AP Creates remit-to site

Tracks changes to supplier information

Supply Chain Process & Performance

Creates purchasing sites Creates known contacts records

Trains/on-boards supplier Sourcing, iSupplier & CCTM

Coordinates/enables iSupplier, Sourcing CCTMresponsibilities

Advises Buyer of supplier readiness for use

Supplier Management


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Ongoing Supplier Maintenance Update Sourcing, iSupplier & CCTM responsibilities

Update remit-to sites (infrequent)

Update purchasing sites

Update contacts

Remediate training

Receive and catalog insurance certificates

Monitor supplier qualification compliance in BROWZ Transition fax or USPS trans method suppliers to eMail or iSupplier

Transition suppliers to EDI/XML trans method

Coordinate acknowledgement auto update with EDI/XML suppliers

Monitor workflow notification undeliverable messages and intervene forprofile updates

Merge/consolidate suppliers

Purge unused suppliers (3 yrs., no activity) monthly

Supplier Management


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In a Perfect World:

AP & Purchasing in the same organization, preferably co-locatedphysically

AP kicks off the setup with FIN information

Purchasing fleshes in the relevant PUR information

Designate 1 AP and 1 PUR super user (and a backup for each)

as the arbiters of all supplier information

Automate the supplier information collection document

Reject incompletes back to originator no science projects

Restrict new supplier self registration

Supplier Management


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In a Perfect World:

Contractually require the use of a supplier collaboration portal orsome method of electronic connection (EDI, XML etc)

Push existing supplier profile maintenance out to suppliers

Route undeliverable workflow eMail notifications to a designated

actionee

Implement a robust purchasing card (credit card) program

Purge no-activity suppliers on an annual schedule

Use no-activity for past three or five years as the criteria (self-determined)

Route candidate list to Purchasing and Materials Management(Inventory) leadership for review

Set a deadline and stick to it

Supplier Management


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Q&A


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Larry Ellison, CEO

Chief OperationsOffice

CorporateController & Chief

Accounting Officer

Source to SettleOrganization

Global ProcurementProcess Owner

SVP Global FinanceOperations

VP ProcurementSystems

Executive VicePresident of

Development

Fusion E-Business Suite

AdvancedProcurement

Product Strategy

Product Mgmt,Engineering, QA,

PeoplesoftEnterprise

JDE

Supplier Management at OracleSource to Settle Organization

Source to Sett leO r g a n i z a t i o n


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223 ft

100 ft


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Business Challenges

Number of Suppliers: Large Number of Invoices: V. Large

Number of Systems: 1

Potential New Suppliers: 60,000 /yr

Project Scope Replaced a number of existing paper-

based processes

Prospective Supplier Invitation toRegister

Performance Tracking for ExistingSuppliers

223 ft

100 ft


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Key Project Features

Impact of Sun Acquisition

Highly complex, virtual, direct materials Supply Chain On-line supplier scorecard a key requirement

Short time line; 3 months to complete technical implementation

New Supplier Requests (NSR) initiated byrequestor base 101,000 Users

60,000 NSR per year

Approached user rollout as a Proof of

Concept beginning with low volumecountries 17 countries completed

Timeline and Phasing


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Supplier Invitation to Registration

Prospective Supplier to Oracle

INVITE SUPPLIERProvides estimated annual spend and business justification

SUBMIT NEWSUPPLIER REQUEST

RECIEVES NOTICE OFAPPROVAL

SUPPLIER

LOBREQUESTER

SUPPLIERMGMT

ADMIN.

RECEIVE INVITE ANDACCESS LINK

ON-LINE ACCESSGRANTED

STRATEGIC

OWNER

STRATEGIC OWNER;

APPROVER(S) MAKE DETERMINATION

SEND NOTICE OF

APPROVE OR REJECT

APPROVE: RECORD ADDEDREJECT: NO RECORD CREATE


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Source to Sett leO r g a n i z a t i o n

Supplier Online Registration


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Progress to Date

Replaced offline supplierregistration process

Introduced automated supplierreview/approvals driven bysupplier type, estimated spenddollar threshold and business

classification Supplier data ownership &

collaboration

Attachment support (W9)

Automated new supplier

welcome letter distribution(custom)

Deployed to 17 Countries

Efficiency Improvements


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Supplier Performance ManagementTracking Buying Team Feedback

Key Drivers

Allows for Automated Global Evaluations Promotes Uniformity in Scoring

Collaboration across multiple teams

Result history maintained in Suppler Master

Score Card tracking: Cost

Quality

Availability (Delivery &Lead Time)

Strategic/TechnicalDevelopment


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Supplier Management Results

Increase in efficiency

Data accuracy increased 100% Accommodated a 54% increase in volumes with only a 10%

headcount increase

Decrease in costs

35% decrease in cost per transaction

33% decrease in time required to enter supplier data

Next steps

Additional Supplier Onboarding Capabilities

Walk up Registration, Qualification/Risk Assessment Process (RFI)

Supplier Self Service Profile Maintenance Improve data quality on existing supplier records, annual review

Contracts Integration

Master agreements integrated into Supplier Master


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Compliance CSR / CoC

Labor Practices EH&S

Finance / Credit

Strategic Preferred

Watchlist Improvement Plan Probation

Performance

Management

Risk

Management

Supplier ManagementExercising Control Throughout the Lifecycle


Online registration

Supplier search

Profile enrichment

Detailed assessment

Compliance checks

Approval process

Review process

End relationship

Close account

Transact

& Review

EnableAccount creation


Document formats


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Oracle Supplier Lifecycle ManagementThe Vendor Management Application that Institutes Formal Supply-BaseOversight

Extensible profile management

Risk-driven supplier segmentation

Integration with third-party supplierinformation services

Streamlines Registration andQualification of ProspectiveSuppliers

Web-based self-service registration

Supplier evaluation and scoring

Configurable approvals

Enables Cross-FunctionalPerformance Evaluation

Templatized questionnaires

Flexible feedback mechanisms

Visibility into archived supplier appraisals

Assures Effective Governance andRisk Mitigation

Profile and

Banking Details

Mfg Planning

Forecasts

Capacity

WaterfallAnalysis

eRFx &Auctions

VMI &

Consigned

Inventory

Order

Collaboration

ContractNegotiation &

Binding

Catalog

Authoring

Shipping & Work

Confirmations

Supplier

Search

Supplier

Qualification

Supplier

Inactivation

Supplier

Performance

Management

Invoicing, Inquiry

& Dispute

Resolution


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TrustedSupplier

Data

Legacy Legacy

Oracle Supplier HubUnifies and Shares Critical Info about an Organization's Supply Base

Consolidate Supplier InformationFlexible data import formats acrossheterogeneous systems, advancedattributes and relationships models, andconfigurable rules governing a goldensupplier record

Cleanse & Enrich Supplier DetailsEmbedded data-quality tools, fuzzymatching de-duplication and intelligentmerge, and integration to third party datasources like D&B and Trillium

Share Supplier Profile across Silos

Comprehensive business events,syndication and federation services, andreal-time message delivery
http://www.nokiausa.com/indexhttp://www.nokiausa.com/indexhttp://www.nokiausa.com/indexhttp://www.hira.or.kr/cms/rib_english/index.htmlhttp://www.symantec.com/index.jsphttp://www.wamu.com/http://www.hanjin.com/en/index.jsphttp://www.nokiausa.com/indexhttp://www.tsa.gov/index.shtmhttp://www.westpac.com.au/internet/publish.nsf/Content/PB+HomePage


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Questions and Answers


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F l A k d Q i (FAQ )


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Frequently Asked Questions (FAQs)

Attendees of todays event will receive an email from ISM within ten

working days with a secured link to:

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For detailed information on ISM Web Seminar participation and

instruction, go to:http://www.ism.ws/files/Education/WebSeminarParticipationDetails.pdf

Note: The archived interactive recording of todays event will be

available within 14 business days on ISMs Web site athttp://www.ism.ws/Seminars/WebSeminars.cfm.


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Participant Survey of Todays Event

Please take a moment to give us your thoughts ontodays Web Seminar.

Thank You.

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