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    Oracle Sourcing Setup Oracle Sourcing Setup Document Transcript

    • 2012 Oracle Sourcing Configuration and Functionality This document contains complete steps to setup Oracle Sourcing along with major functionalities This document can be used to setup oracle sourcing where purchasing setup is already in place. Ahmad Bilal 4/16/2012
    • TABLE OF CONTENTSWhat is Oracle Sourcing? ...............................................................................................................................................3 RFIs ............................................................................................................................................................................3 RFQs ...........................................................................................................................................................................3 Auctions .....................................................................................................................................................................3 Oracle Sourcing Business Flows .................................................................................................................................4 Creating New Documents Using Demand Workbench ..........................................................................................4 Creating New Documents from Existing Blanket Purchase Agreements ...............................................................4 Creating Documents Directly in Oracle Sourcing ...................................................................................................4Prerequisites ..................................................................................................................................................................5Define user and Assign responsibility ............................................................................................................................6 Responsibilities Installed With Oracle Sourcing ........................................................................................................6Define Enterprise Name ................................................................................................................................................7Profile Options ...............................................................................................................................................................7Set Up Attribute Groups and Requirement Sections .....................................................................................................8Setting Cost Factors .....................................................................................................................................................10Negotiations Configuration .........................................................................................................................................11 Setting the default ranking display ..........................................................................................................................11 Supplier visibility in blind auctions / RFQs ...............................................................................................................11 Identifying allowable cost factor types ....................................................................................................................12 Specifying default price break types ........................................................................................................................12 Allowing award approval to be required .................................................................................................................13 Defining header scoring defaults .............................................................................................................................14 Defining the default line attribute group ................................................................................................................14 Defining the default UOM for amount-based line types .........................................................................................14 Enforcing response levels in multi-round negotiations ...........................................................................................15 Listing URLs for supplier discovery: .........................................................................................................................15 http://oracleebusinesssuite.wordpress.com/ Page 1
    • Specifying the supplier online window values .........................................................................................................16 Specify concurrent processing values: .....................................................................................................................16Subscribe to Notifications............................................................................................................................................17Define Negotiation Terms and Conditions ..................................................................................................................18Define Reusable Attribute Lists ...................................................................................................................................19 Sequencing line attributes: ......................................................................................................................................21Define Reusable Requirement Lists .............................................................................................................................21 Define your Requirement list...................................................................................................................................22 Defining Requirements ............................................................................................................................................22Define Cost Factors and Cost Factor Lists ....................................................................................................................25 Define a cost factor ..................................................................................................................................................25 To define a cost factor list: ......................................................................................................................................27Define Reusable Invitation Lists ...................................................................................................................................28 Create a new invitation list ......................................................................................................................................28Define Negotiation Styles ............................................................................................................................................30 Define a Negotiation Style .......................................................................................................................................31Set Up Document Print Layouts and Security ..............................................................................................................32 Modify Security Level on Sourcing Documents .......................................................................................................33 http://oracleebusinesssuite.wordpress.com/ Page 2
    • WHAT IS ORACLE SOURCING?Oracle Sourcing offers flexible negotiation capabilities to buyers and sellers, enabling them to efficientlyobtain the best possible prices for goods and services. Prices are established based on actual supply anddemand at the time the negotiation is transacted.The three different types of sourcing documents available 1. Requests for quotations (RFQs) 2. Requests for information (RFIs) 3. Buyers auctionsBuyers use real-time interaction to obtain information on suppliers products and services, and then usethat information to create negotiations that drive prices based not only on price, but on lead times,quantity, and item specific attributes. Buyers and sellers, who might never meet face-to-face, can bypassintermediaries and establish relationships that might not have been possible using more traditionalmethods of buying and selling.RFISOracle Sourcing allows buyers to qualify a wide group of suppliers and their products and services usingRFIs. Buyers can use the information obtained to subsequently conduct an RFQ or buyers auction.RFQSNegotiations support the full RFQ business process. RFQs enable buyers to request quotes fromsuppliers for complex and hard-to-define items or services such as make-to-order manufacturing itemsor construction projects. 1. Typically an RFQ consists of multiple rounds with competition focused on which supplier(s) can meet the specific requirements in addition to price. 2. The process can last from days to weeks. Buyers usually review the received quotes, amend the supplier list and submit a modified RFQ for subsequent rounds of quoting. 3. Negotiations support blind and sealed RFQs. Suppliers are not allowed to see competitive quotes while the RFQ is in progress.AUCTIONSAuctions support the complete auction process from auction creation to final award to purchase ordergeneration. Auctions enable buyers to solicit bids for goods and services that are clearly defined, such asoffice furniture or memory chips. 1. Auctions last for a set period of time, typically a matter of a few hours, although the close time can be changed manually or extended automatically based on last minute bids. 2. Auctions are typically focused on creating competition between sellers. http://oracleebusinesssuite.wordpress.com/ Page 3
    • 3. Auctions support open, blind, and sealed auction styles.ORACLE SOURCING BUSINESS FLOWSThere are three typical business flows that utilize Oracle Sourcing.Sourcing buyers can use the Demand Workbench feature of Oracle Purchasing to select approved requisition linesand aggregate demand into a draft auction or a Sourcing RFQ. Buyers can use the Demand Workbench withoutleaving Oracle Sourcing. The backing requisition line information is retained throughout the life cycle of thesourcing documentCREATING NEW DOCUMENTS USING DEMAND WORKBENCHOracle purchasing buyers can select a blanket purchase agreement (BPA) and use it as the basis of a new auctionor Sourcing RFQ. The details of the BPA (including header, attachments, price breaks) are copied to the draftnegotiation, and the sourcing lines refer to the originating BPA lines.CREATING NEW DOCUMENTS FROM EXISTING BLANKET PURCHASE AGREEMENTSOracle sourcing buyers can define sourcing documents directly in Oracle Sourcing. Inventory items can be selectedand goods and services can be entered directly. A large number of items can be quickly entered by using thespreadsheet upload feature.CREATING DOCUMENTS DIRECTLY IN ORACLE SOURCING http://oracleebusinesssuite.wordpress.com/ Page 4
    • PREREQUISITESBefore you begin implementing Oracle Sourcing, you should consult the information on implementation stepsperformed in other E-Business Suite applications located in Appendix A, "Implementing E-Business Suite for OracleSourcing." Note that if Oracle Purchasing has already been installed, these steps may have already beenperformed. If Oracle Purchasing has not been implemented, you should perform all the required steps andwhichever optional steps you decide are appropriate.NOTE: - Implementing Oracle Sourcing includes performing tasks in both Oracle Sourcing as well as otherapplications. Implementation tasks performed in other applications typically use an administrative or super usertype of responsibility within that application. The particular step details in this chapter will indicate whichresponsibility is needed to perform the task within that application. Implementation tasks performed within OracleSourcing are performed by the Sourcing Super User. The Sourcing Super User is responsible for setting up andmaintaining the Oracle Sourcing system. This includes many tasks such as initial system setup and customization,as well as creating negotiation creation tools such as reusable price factor lists, reusable attribute lists, andreusable invitation lists. You can later update many values you set at implementation time if necessary.Using the Administration Tab FunctionsThe implementation steps you perform as the Sourcing Super User use the setup and administration functions areavailable from the Negotiations Administration page. This page appears when you click the Administration tabunder Sourcing Super User Responsibility http://oracleebusinesssuite.wordpress.com/ Page 5
    • DEFINE USER AND ASSIGN RESPONSIBILITYDefine User for Sourcing SetupAssign Responsibility Sourcing Super UserNote: - Assign Employee who has Email address setup at employee levelRESPONSIBILITIES INSTALLED WITH ORACLE SOURCINGSourcing Buyer http://oracleebusinesssuite.wordpress.com/ Page 6
    • Allows users to create and award buyer’s negotiations, and view buyer intelligence reports. Sourcing Buyers shouldnot have any Sourcing Supplier functionality.Sourcing Super UserAllows users to perform negotiations administration create and award negotiations, view negotiation intelligencereport. Sourcing Super Users should not have any Sourcing Supplier functionality.Sourcing SupplierAllows users to view and respond to buyer’s negotiations. Sourcing suppliers should only have the SourcingSupplier responsibility or a customized responsibility containing only functions from the Sourcing Supplierresponsibility.DEFINE ENTERPRISE NAMEYou can specify the Enterprise name that is used in notification e-mails that are sent from Oracle Sourcing toSupplier. To specify this name, run the following script$APPL_TOP/pos/12.0.0/patch/115/sql/POSENTUP.sqlIn my case address was something like/ERP/DEV/apps/apps_st/appl/pos/12.0.0/patch/115/sql/POSENTUP.sqlUpon execution of this script system will ask you to Specify Enterprise Name. Which would be your LegalOrganization Name as printed on Purchase Orders (Legal Documents)Note: - If you do not run this script, any notifications sent to supplier users will have "Default enterprise name" asthe company name in the subject and body of these notifications.PROFILE OPTIONS 1. PO: Allow Autocreation of Oracle Sourcing Documents = YES Once setup to YES enables buyers to use AutoCreate to generate draft auctions and Sourcing RFQs that can then be completed and awarded in Oracle Sourcing. 2. PO: Display the Autocreated Document = Yes Once Setup to YES, this Allows Sourcing to launch automatically from Oracle Purchasing once your buyers have finished Auto Creating the draft sourcing document. Buyers must also have a responsibility that contains the Edit Draft Negotiation function. http://oracleebusinesssuite.wordpress.com/ Page 7
    • 3. PON: Enable Sourcing Award Approval = No In My Case I am not using Approval for Award so I will keep it NO 4. PON: Supplier Transaction History Time Period = 30 Based on this Profile option Buyer can see history of Supplier 5. PON: Automatically Default Catalog Attributes = All Determines the type of catalog attributes Oracle Sourcing automatically adds to a negotiation line when a shopping category is selected.in all case both base and category descriptors are added to the line 6. Sourcing Default Responsibility For External User = Sourcing Supplier Specifies the responsibility that will be assigned to any external user whose registration is initiated from Oracle Sourcing 7. PON:External Application Framework Agent URL will be used for the links in notifications sent to suppliers 8. POS: External URL URL used to construct the link to supplier registration page as well as the external abstract pageSET UP ATTRIBUTE GROUPS AND REQUIREMENT SECTIONSRequirements solicit header level information from a supplier when the supplier responds to a negotiation.Requirements can be grouped into Sections. You can then use sections to logically and coherently structure thequestions you wish the supplier to answer. A Sourcing Administrator can create sections to which buyers laterassign their Requirements when creating a negotiation. Alternatively, buyers can create a new section instead ofselecting a predefined section by the administrator during negotiation creation.Attribute groups are used for grouping line attributes together to provide a more logical structure to negotiationsusing many attributes. When buyers add an attribute to negotiations they are creating, they can assign theattribute to a group. Sourcing is delivered with an attribute group called General. This attribute group will beautomatically applied by default to any line attributes.You can add other Requirement sections or attribute group values that can be used by buyers in place of "General.To add additional section or group values:Navigation Path:Application Developer (R)  Applications  Lookups  Application Object LibraryQuery Lookup Type and Amend based on your RequirementsPON_HEADER_ATTRIBUTE_GROUPS http://oracleebusinesssuite.wordpress.com/ Page 8
    • PON_LINE_ATTRIBUTE_GROUPS http://oracleebusinesssuite.wordpress.com/ Page 9
    • The first entry lists the section values available for Requirement sections. The second entry lists the group valuesavailable for line attributes. To add Requirements sections, click the first entry. To add line attribute groups clickthe second entry.On the Application Object Library Lookups form, add the additional group values. When you have finished addingyour group values save your work and exit Oracle Applications. The middle-tier server must be bounced to reflectthe new lookup values.If you do not want General to be the default attributes group value, you can identify a different default. Seeinstructions in the following step, Set Up Negotiations Configuration, on how to identify the default attributegroup.SETTING COST FACTORSCost factors allow you to identify and negotiate on additional costs related to a line. You can use cost factors toobtain a more realistic idea of the total cost of an item or service by factoring in any additional costs beyond justprice. Such costs could include additional costs such as consulting or training, or internal costs such as switchingcosts.Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Cost Factors Create (B) 1. Unique code (non-Updateable once saved) 2. The name of the new price factor 3. A short description for the price factor 4. A pricing basis value to determine how this price factor is calculated 5. You can define: a fixed amount for the line, a fixed amount for each unit of the line, or a percentage amount of the line cost. http://oracleebusinesssuite.wordpress.com/ Page 10
    • NEGOTIATIONS CONFIGURATIONSETTING THE DEFAULT RANKING DISPLAYThe system can rank responses of suppliers participating in an auction or RFQ. You can choose which type ofindicator is used to display rankings. You can also choose whether ranking information is visible during blindauctions or RFQs (for sealed auctions/RFQs, the ranking cannot be viewed until the auction/RFQ is unsealed).To choose a ranking indicator:Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation ConfigurationSelect the rank form the Rank Indicators which is displayed to negotiation creators and respondents throughoutthe negotiation processTo allow creator to override the rank values check the allow box.SUPPLIER VISIBILITY IN BLIND AUCTIONS / RFQSParticipants in blind auctions/RFQs are typically restricted from viewing Information on other participantsresponses. However, you can allow them to see the response rankings by selecting the appropriate checkbox. Thiswill existing and affects future blind auctions and RFQs. http://oracleebusinesssuite.wordpress.com/ Page 11
    • IDENTIFYING ALLOWABLE COST FACTOR TYPESCost factors identify additional costs that should be included when calculating total cost for a line. Select theappropriate value from the Cost Factors menu.Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Cost Factors (Tab)SPECIFYING DEFAULT PRICE BREAK TYPESPrice breaks allow you to negotiate item prices with your supplier based on characteristics of your order. Forexample, you may expect to receive a discount from your supplier if you buy a large quantity of units, and you mayspecify several quantity levels and the prices you are willing to pay at each. Or you may be willing to pay more perunit if your supplier can ship the order to a special location, or by a certain deadline.For each (non-amount-based) item in your negotiation, you can define as many price breaks as are appropriate.Your suppliers respond to your negotiation specifying their responses to your price breaks. You can then enterdifferent assumptions into the system and have it calculate which response is the best.Example: Assume you are purchasing PC keyboards. You specify 20AED as your start or base price. You then set uptwo quantity based price breaks. The first offers a price of 19AED per unit if buying more than 100. The secondoffers a price of 18AED a unit if purchasing over 500. For these price breaks, you receive the responses shown inthe table below. Your Price Break Your Offered Price Supplier 1st Response Supplier 2nd Response 1 20 AED 19AED 19 AED 100 19 AED 18 AED 17 AED 500 18 AED 15 AED 16 AED http://oracleebusinesssuite.wordpress.com/ Page 12
    • Once you have entered your price break values and your suppliers have responded to them, you can enterassumptions into the system and it will calculate which response is the best. For example, given the price breakstructure defined in the table above, if you buy 120 PC keyboards, the system will identify Supplier 2 as the bestresponse. However, if you buy 550 PC keyboards, Supplier 1 is the best response.You can only define price breaks for documents with an outcome of blanket purchase agreement. Additionally, youcan only define price breaks on goods-based line items. For each line item, you can set break prices for: 1. A quantity range 2. A Ship-To Address 3. An effective time period 4. Any combination of the aboveAll price breaks for a single line are either cumulative or non-cumulative. If the price breaks are cumulative, thebreak accumulates as the quantity increases. If a line items price breaks are cumulative, the effective date valuesare not available for price break usage.You can control the ability of your supplier to respond to your price breaks. You can allow suppliers to respondwith new price breaks of their own as well as edit any price breaks that you suggest or you can restrict them toonly offering price responses to the price breaks you define.Buyers have three choices when creating their negotiation:None - no price breaks are defined.Required - suppliers must respond to the price breaks and cannot modify them.Optional - supplier must respond to the price breaks but can also modify the buyers price break values.Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Price Breaks (Tab)ALLOWING AWARD APPROVAL TO BE REQUIREDYou can choose to have award decisions approved before a purchase order can be generated using AMENavigation Path http://oracleebusinesssuite.wordpress.com/ Page 13
    • Sourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Should Award Approval be Required for Auctions/RFQs (Tab)DEFINING HEADER SCORING DEFAULTSYou can define defaults for header Requirement scores. You can choose to allow buyers to weight scores whenevaluating supplier responses, and you can define a default maximum score valueNavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Header Scoring Defaults (Tab)On the Negotiations Configuration page, Header Scoring Defaults Section selects the appropriate check boxes andenters appropriate values.DEFINING THE DEFAULT LINE ATTRIBUTE GROUPAttributes defined to a negotiation line or attribute list must be assigned to an attribute group. Attribute groupsallow control over how attributes are displayed since you can specify the sequence of the attributes within thegroupNavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Attribute Groups (Tab)DEFINING THE DEFAULT UOM FOR AMOUNT-BASED LINE TYPESAmount- based lines typically are not negotiated by unit. Instead, they normally refer to services such as training orconsulting. As such, there is no unit of measure associated with them.In the Unit of Measure for Amount Based Line Items section, select the value from the menu to be used as thedefault. The entries available from this menu can be defined in Oracle Purchasing. http://oracleebusinesssuite.wordpress.com/ Page 14
    • Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Unit of Measure for Amount Based Line Items (Tab)ENFORCING RESPONSE LEVELS IN MULTI-ROUND NEGOTIATIONSWhen taking a negotiation to a subsequent round of responding, you can choose to force the suppliers to respondin the new round with a price that is lower than the price they offered in the prior round.Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Multiple Round Negotiations (Tab)To require suppliers to respond in a new round of a negotiation with a lower price, select the checkbox.LISTING URLS FOR SUPPLIER DISCOVERY:You can define a list of URLs that carry information about suppliers external web sites. Buyers can use these linksto access and browse the supplier web sites from the Add Supplier page during negotiation creationNavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Supplier Discovery (Tab) 1. Enter the Provider Name (this is the name used within the system. It does not have to be the suppliers official name) 2. URL to the providers site. To allow your buyers to view and use the link, 3. Click Enabled. You can control access to different sites by selecting and deselecting the Enabled flag. http://oracleebusinesssuite.wordpress.com/ Page 15
    • SPECIFYING THE SUPPLIER ONLINE WINDOW VALUESThe Live Console feature allows buyers to monitor negotiations in real time.Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negation Setup Section Negotiation Configuration  Live Console (Tab) 1. Enter a number for the Supplier Online Window value. This is the number of minutes that can elapse since a suppliers last action before that supplier is considered to be no longer active. 2. Enter the number of seconds that should elapse before the page is refreshed during the last hour of the negotiationWhen Time Left is less than 1 hour, the countdown clock will poll the web server automatically at the specifiedinterval for any change of Time Left. A minimum value of 6 is required for this field. For every additional 60minutes left, 2 minutes will be added to the specified interval.SPECIFY CONCURRENT PROCESSING VALUES:Large negotiations can sometimes have hundreds or thousands of lines. Processing such negotiations can be timeconsuming and resource intensive. http://oracleebusinesssuite.wordpress.com/ Page 16
    • To set the processing and error message thresholds, enter values in the appropriate fields.SUBSCRIBE TO NOTIFICATIONSThe notifications sent by Oracle Sourcing provide the recipient with high-level information about the negotiationas well as information related to the triggering event, including what action the recipient should take.The Notification Subscription home page consists of two sections: 1. Buyer Notification Section. 2. Supplier Notification SectionNavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Notification SubscriptionOn the Notification Subscription page, select which notifications apply to which negotiation types.Click Apply. http://oracleebusinesssuite.wordpress.com/ Page 17
    • DEFINE NEGOTIATION TERMS AND CONDITIONSNegotiation terms and conditions are presented to supplier users before they respond to a negotiation for the firsttime. Supplier users must accept the terms and conditions before they can submit a response. Users are notrequired to accept terms and conditions when placing a subsequent response in the same negotiation.Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Setup Negotiation Terms andConditionsTo define negotiation terms and conditions:Use the Setup Negotiation Terms and Conditions page to define the terms and conditions that you want to displayon negotiations. If multiple languages are installed, select a Language and translate the terms and conditions foreach language if your suppliers use other languages.Example would be something like(Buying Company) reserves the right to reject any and all responses for any reason. (Buying Company)decision as to which supplier will be asked to participate in a formal RFI/RFQ/Auction process will bebased on the overall responses submitted by each supplier, and will include such things as service areascovered; telecommunications experience; commercial collections experience and financial stability. ThisRFI/RFQ/Auction is not a commitment to purchase, and any expenditure incurred in preparation andsubmission of responses shall not be reimbursed by (Buying Company)All responses meeting the stated requirements and specifications except for minor exceptions &deviations, shall be considered. Failure to meet requirements may disqualify a response from theselection process.All information disclosed to suppliers by (Buying Company), including the information contained in thisdocument, is considered proprietary to (Buying Company). It may not be disclosed to others withoutprior written consent from (Buying Company) http://oracleebusinesssuite.wordpress.com/ Page 18
    • When you have finished entering your negotiation terms and conditions, click Apply.DEFINE REUSABLE ATTRIBUTE LISTSAttributes identify additional details that a supplier should provide (beyond just response price) when respondingto a negotiation. Attributes can apply at both the negotiation header and/or line level.Header attributes identify negotiation level characteristics that are not associated with a particular negotiationline. These can include company characteristics,E.g. years in business, or company certifications.Line attributes are characteristics that apply to lines in a negotiation.E.g. If a negotiation includes a line for vehicles, there might also be a line attribute called mileage. This attributemight have a target value that specifies that responses to this line must have fewer that 12,000 miles on theodometer.Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Reusable Attribute ListsClick Create Line Attribute List. http://oracleebusinesssuite.wordpress.com/ Page 19
    • On the Create Line Attribute List pageEnter a List Name and brief Description for attribute list.Choose the Status (Active or Inactive). An Active list can be used immediately, an Inactive list will be stored in thesystem, but will not be available for use unless you edit the list and change its status to Active.If this attribute is required and you wish to assign values to allowable entries and scores, click the Score icon.Buyers can identify acceptable responses to line attributes and provide a score for each response that indicates thedesirability of that response value. (Suppliers must enter responses if the attribute has an Attribute Type value ofRequired). Scoring the attribute allows you to define which values you will accept for the attribute and indicate therelative desirability of each response. Scores are also used by the system to determine the best response in Multi-Attribute Scoring negotiations.On the Enter Scoring Criteria page, you must specify the values you will accept for this attribute and assign a scoreto each value.For text attributes, you specify a list of acceptable values.For number and date attributes, you specify a numeric or date range (to define a single number or date, set thefrom and to values to the same number or date.Click the pop-up calendar icon to select a date value.Note that URL attribute types cannot be scored in this manner.Once you have identified all the allowable values for this attribute, you must define a score for each value (orrange of values). Specify a number that represents the desirability of that value - the higher the number, the moredesirable that response. http://oracleebusinesssuite.wordpress.com/ Page 20
    • If you need to add and score more than five values, click Add 5 Rows to display five more entry rows. After youhave identified and scored your values, click Apply. You return to the Create Line Attribute List page. Add and scoreany remaining attributes for this list.Note that you can optionally sequence the display order of your line attributes. Use the instructions above tospecify the sequence of attributes.When you are finished defining attributes to this list, click Apply.SEQUENCING LINE ATTRIBUTES:The line attributes appear in the order you define them. However you can alter the order if needed.To define the order of line attributes: 1. Click Sequence Button. 2. On the Sequence Attributes page, the line attributes appear in the order in which you defined them and are given a number. 3. Modify the attribute numbers to reflect the new sequence. 4. When finished, click Apply.DEFINE REUSABLE REQUIREMENT LISTSYou define Requirements to solicit high-level information about the suppliers who have responded to yournegotiation. This information can come from the suppliers themselves or internal evaluators. You typically defineRequirements in the form of questions.Once you have defined your Requirements, you can combine them into reusable lists, similar to reusable attributelists. First, you create your list, and then you defined the Requirements for that list. http://oracleebusinesssuite.wordpress.com/ Page 21
    • DEFINE YOUR REQUIREME NT LISTNavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Reusable Requirement ListsClick Create Requirement List Button 1. Enter a name for your Requirement List 2. Enter descriptions for your list. 3. Select a status for your list (Inactive lists cannot be used). 4. Selecting the check-box will enable classification of sections in this requirement list as Technical or Commercial.DEFINING REQUIREMENTSYou create collections of Requirements called Sections. You are provided with a default section calledRequirements.To define Requirements 1. In the Requirements area of the Create Requirement List page, select the entry for the default section called Requirements. 2. Click Add Section http://oracleebusinesssuite.wordpress.com/ Page 22
    • 3. To add a new section, accept the default, New Section, in the Add drop down menu.4. Enter a name for your new section and type Commercial or Technical (in My Case Commercial)5. If you are ready to begin adding individual Requirements for this section, click Apply and Add Requirement. If you need to create a section after this section, click Apply and Add Section. You cannot create a section within a section.6. On the Create Requirement List: Add Requirement page, enter your Requirement question in the text box provided7. Once you have defined your Requirement text, set the Properties for this Requirement as necessary: o Type Type describes how the Requirement is used within the negotiation. Values can be:  Display Only The Requirement is displayed to the supplier, but the supplier cannot enter a response to it. If the type is display-only, Display Target is set to Yes and Scoring Method is automatically set to None. Display only Requirements merely notify suppliers of additional aspects in which buyers are interested.  Internal Internal Requirement can only be seen by buyers. If an internal Requirement is weighted, the total weight value seen by the supplier will not add up to 100. For example, if a Requirement is internal and has a weight of 10, the supplier sees no information on the internal Requirement and sees the sum of all weighted Requirements as 90. If unweighted, new internal Requirements can be added while the negotiation is in progress. If weighted, new internal Requirements can be added if they are given a weight of zero or if their weight amount is subtracted from another internal Requirements. Internal Requirements have Display Target set to No.  Optional Suppliers do not have to respond to this Requirement.  Required Suppliers must respond to this Requirement. http://oracleebusinesssuite.wordpress.com/ Page 23
    • o Value Type Select the type of characters suppliers can enter for this Requirement when responding: Text (letters/words, digits), Number (digits with decimals allowed), Date (the format you or the supplier select as your date preference), or URL (Web site addresses that begin with a valid URL protocol for example, http://, https://, and ftp://. Values with a URL type display as links; for example a Web site address entered as a Text type will display simply as text). Value Type also governs the characters you can enter in the Target field.Note: Text is the most flexible value type. If you select Text, suppliers can enter letters as well as digits. If youselect Number, participants can only enter digits; if you select Date, suppliers can only enter dates in date format. o Target Enter a target value for the Requirement (for example: 30 or more years in business) . o Display to Supplier Indicate whether you want suppliers to see your Target value. o Scoring Method Select the method by which you wish to score responses to this Requirement.  None - Responses cannot be scored.  Automatic - The system will assign a score based on scoring information you define. If you choose Automatic, you must define the allowable values (or value ranges) and the score for each.  Manual - evaluators will enter scores for a particular response manually when scoring a participants response.Note that the scoring method chosen applies only to a particular Requirement. You can have a combination ofboth automatically and manually scored Requirements within the same negotiation.If you choose to enable scoring for this Requirement, you can also set the following fields:  Maximum Score (Manual scoring method only) You can set a maximum score allowable for this Requirement. The Sourcing Administrator may have set a default value for this property, but you can override it if necessary.  Knockout Score You can specify a threshold value that applies to supplier responses. If the score for a suppliers response does not meet this threshold, that response will be removed from the shortlist once the buyer applies the knockout result.  Weight (Automatic and Manual scoring methods only) If you choose to use weighting, enter the weight of this Requirement. The value you assign should reflect the importance of this Requirement relative to all other Requirements for this negotiation. The higher the value, the more important the Requirement. The total of all Requirement weights must be 100. http://oracleebusinesssuite.wordpress.com/ Page 24
    • 8. You can define which response values (or range of values) are acceptable for this Requirement. If you define acceptable response values for text type Requirements, those values are displayed to the responder, who must select a value from the predefined list of valuesNote that if you chose the Manual scoring method, these fields do not appear. Also note that if you chose theAutomatic scoring method, you must define both the acceptable values and their scores. To define acceptablevalues:1. Click the Add 5 Rows button under Acceptable Values.2. Enter values for the following fields:  Response Value Enter an acceptable value for this Requirement. You may enter as many separate values as is necessary to identify all possible acceptable responses. The values you enter should reflect the Value Type (text, number, date) you specified for this Requirement.  Value From/Value To (number and date type Requirements only) If your Requirement has a value type of number or date , you can enter specific numbers/dates or you can define ranges of numbers/dates. If you wish to define a single value, enter the number in both the From and the To fields. Otherwise, to define a range, enter the beginning value in the From field and the ending value in the To field.DEFINE COST FACTORS AND COST FACTOR LISTSCost factors allow you to identify and negotiate on additional costs related to a line. You can use cost factors toobtain a more realistic idea of the total cost of an item or service by factoring in any additional costs beyond justprice. Such costs could include additional costs such as consulting or training, or internal costs such as switchingcosts.DEFINE A COST FACTORNavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Cost Factors http://oracleebusinesssuite.wordpress.com/ Page 25
    • Click Create ButtonEnter the following information: 1. Unique code 2. Name of the new Cost factor 3. Text description for the cost factor 4. A pricing basis value to determine how this price factor is calculated, you can define: 5. A fixed amount for the line 6. A fixed amount for each unit of the line 7. A percentage amount of the line cost 8. Once you have entered your information, click Apply. The information you entered is validated. If your code is not unique, you are prompted to enter a different one. http://oracleebusinesssuite.wordpress.com/ Page 26
    • TO DEFINE A COST FACTOR LIST:Navigation PathSourcing Super User (R) Negotiation Home page Administration Tab Reusable Cost Factor ListsClick "Create Cost Factor List."On the Create Cost Factor List page, Enter the required information 1. Name of the new list 2. A short text description of the new list 3. The status of the new list. Active lists can be used immediately. Inactive lists cannot be used 4. From the Price Factor drop down list, select a price factor for this list and click Add to List. Repeat as necessary to add any remaining price factors to the list. http://oracleebusinesssuite.wordpress.com/ Page 27
    • 5. When you are finished adding cost factors, click Apply.DEFINE REUSABLE INVITATION LISTSUsing an invitation list can help standardize your business practice by ensuring that all appropriate people areinvited to targeted negotiations and can help streamline the negotiation process. Buyers can add invitation list(s)when creating a new negotiationYou can create Reusable Invitation Lists containing names of suppliers who you frequently invite to yournegotiations. Invitation lists can be shared across the company. This can help you standardize your businesspractice as well as speed up the negotiation creation process.CREATE A NEW INVITATION LISTNavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Reusable Invitation ListsClick Create Invitation List 1. Enter a list name http://oracleebusinesssuite.wordpress.com/ Page 28
    • 2. Description 3. Select an Access type.All buyers can view and use Public lists. Buyers can create their own private lists that are available only to them.The lists you create are immediately available for use. If, at some time in the future, you no longer need a list, youcan deactivate it.Click Add Suppliers.Search for and select suppliers to add to your invitation list.Note that you can use the advanced supplier search features to build lists of suppliers based on the commoditiesor items they provide.When the Search Suppliers page displays the search results, select the supplier(s) you want to add to the list andclick Add to Invitation List.You see that the suppliers appear in the Invitation List box in the upper right-hand corner of the page. Use theinstructions in the previous steps to continue adding suppliers. http://oracleebusinesssuite.wordpress.com/ Page 29
    • Click Apply to return to the Create Invitation List page.You return to the Create Invitation List page. For each supplier, ensure there is a value for Supplier Contact field. Ifyou wish to send a notification to an additional supplier contact and you know the contacts e-mail address, youcan enter that in the Additional Contact Email field. This is especially useful if the supplier has set up a broadcast e-mail.DEFINE NEGOTIATION STYLESOracle Sourcing enables complex electronic sourcing practices. The products many features provide powerfulfunctionality for users.Not all of these features are needed for many negotiations, however. Sourcing Administrators can control whichfeatures are available by defining negotiation styles. Negotiation styles allow buying organizations to tailor theOracle Sourcing user interface to match the needs of different sourcing events. Through reusable negotiationstyles, buying organizations can expose or hide unneeded Oracle Sourcing features, thereby simplifying the userinterface. When a sourcing document is created using a style, disabled features are hidden from users.The style determines who will be able to see the quotes/bids and when. The three styles are: Open (RFIs and auctions only) All suppliers can see the quotes/bids, though the responding suppliers identity is concealed. Blind Only the buyer can see the quotes/bids. http://oracleebusinesssuite.wordpress.com/ Page 30
    • Sealed The buyer can see the responses when the negotiation is unlocked. Both the buyer and suppliers can see the responses when they are unsealed.DEFINE A NEGOTIATION STYLENavigation PathSourcing Super User (R) Negotiation Home page Administration Tab Negotiation Setup  NegotiationStylesClick "Create Negotiation Style." 1. Give your style a name. 2. Optionally give your style a description 3. Accept the default status of Active (Inactive status styles are not available for use) 4. Select the controls that are applicable to this style. http://oracleebusinesssuite.wordpress.com/ Page 31
    • 5. Identify which document types this style can be used with. 6. When you are finished, click Apply.SET UP DOCUMENT PRINT LAYOUTS AND SECURITYNavigation PathPurchasing Super User (R) Setup Purchasing  Document TypesSelect Operating Unit. http://oracleebusinesssuite.wordpress.com/ Page 32
    • Click Update for any Sourcing document type (Sourcing Buyer Auction, Sourcing RFQ and Sourcing RFI).For each document type, Select a Document Type Layout (If you have Oracle Procurement Contracts licensed andinstalled, also select a Contract Terms layout)MODIFY SECURITY LEVEL ON SOURCING DOCUMENTSNavigation PathPurchasing Super User (R) Setup Purchasing  Document TypesSelect Operating Unit.Click Update for any Sourcing document type (Sourcing Buyer Auction, Sourcing RFQ and Sourcing RFI).Go To Control RegionReferenceOracle® Sourcing (User Reference Guide of Online Help Files for Sourcing Buyers)Oracle® Sourcing (Implementation and Administration Guide)Instance usedOracle VisionRDBMS: 11.1.0.7.0Oracle Applications: 12.1.1 http://oracleebusinesssuite.wordpress.com/ Page 33