Oracle Applications 11.5.10 Sourcing Training

Sourcing 11.5.10 Dharmalingam K S, PMP Procurement Professional Community Hot Topic Presentation 09-May-2006

Agenda

Overview

Setup – User & Supplier

Sourcing Home Page

Sample RFQ Flow – Create, Publish, Supplier response (Quote), Award Details & Create PO

Limitations & Data Flow

Overview

Oracle Sourcing is the enterprise application that drives more and better sourcing through online collaboration.

It is a key component of Oracle Advanced Procurement, the integrated suite that dramatically cuts all supply management costs.

Sourcing Flow & Advantages Source More of Your Spend Source for Lowest Total Cost Create Immediate and Long-Term Savings Structured Event Support Cross-Functional Collaboration Knowledge Capture / Re-use Total Cost Analysis* Real Time Decision Support* Enterprise Integration Rapid Deployment Change Management Automated Negotiations, Bid Mgmt and Award* Make Savings Stick Identify Opportunities & Suppliers Conduct On-Line Negotiations Analyze & Award Approve & Issue Define Strategies & Negotiations Integration * Requires Sourcing Optimization Purchasing Contract Mgmt Finance Marketing Other Operations

System Generated Recommendations* Optimized, Policy-Compliant Award Recommendation Eliminate Time-Consuming Manual Analysis

Multiple Sites

Dozens of Bid Lines

Company Policy Complex Bids

Sourcing Rules

Budget Constraints

Supply Base Rules

Model multiple business constraints and supplier inputs Award Optimization Engine * Requires Sourcing Optimization Maximum of 5 Vendors Minimum 60% to incumbent supplier $100k Annual Maximum Multiple Suppliers

Setup - User

Sandbox Instance URL: http://ebcdell08.oracle.com:10100/

Define a new employee in ‘US HR Manager’ responsibility with email id and then attach it to the Oracle Applications user.

Setup – Register Supplier

Create new suppliers either in Purchasing or Payable module

Register the suppliers in ‘Supplier User Administrator’ responsibility

System generated password would be sent to the supplier’s email

Setup - Invite Supplier User

Invite the suppliers in ‘Supplier User Administrator’ responsibility

The email notification for invitation would be as below

Sourcing Super User IT

Click on the function ‘Sourcing Home Page’ in the responsibility ‘Sourcing Super User IT’

Sourcing Home Page - Negotiations

Templates can not be modified by other users except the owner (not like core apps) though the access is setup as public

But other buyers would be able to apply the template

Requests

When scrolled to the right, the document builder is shown

The options available for Document are:

Standard RFQ

Standard Auction

Blanket RFQ

Blanket Auction

Intelligence

Administration

Negotiation Configuration

Abstracts & Forms

Abstract is a summary or synopsis of a negotiation used to advertise the purchase to increase competition. They would be presented in the buying org’s external website.

Form is a XML based file that can be transferred to 3 rd party system.

Create Form

RFQ Header

Operating Unit selection through security profile

Once saved, will not be able to change both Org & Outcome

Both RFQ number and AUCTION_HEADER_ID are same (no segment1 column in the table) Supervisor would be defaulted in the collaboration team

RFQ Line Summary Once navigated to Lines page, the RFQ is saved to the table

RFQ Line Creation No internal attribute type – only Required, Optional, Display Only Multi Attribute scoring for Quantity & Need by to date

Scoring Criteria

Controls

Contract Terms Available only when Oracle Procurement Contracts is licensed & implemented

Create Deliverable

Supplier Summary

Supplier site is not required till quoting but required for creating a PO

Such suppliers (whose site is not defined in the current Operating Unit) can be selected only by ‘Add Supplier’ not from ‘Add Invitation List’

Add Supplier

Add Suppliers from Invitation List

Publish Negotiation

Supplier Sourcing Home Page

Supplier’s Action Menu in RFQ

Supplier’s Worklist

Supplier Notification

Supplier participation acknowledgement from worklist Workflow response becomes the participation acknowledgement

Supplier’s Online Discussion

Unread message in Buyer’s Negotiation Home Page

Create Quote

Price Factors

Line Price & Quote Price

Buyer’s Action Menu

Close RFQ

New Round If Sourcing RFQ is created from requisitions, then the requisition is returned to the pool on creating new round

Award by Quote

Score Entry

Award Multiple Lines Note lot is grouped and shown as one element

Award Quote

Award By Line

Graph Price/Score by Time

Graph Price by Score

Award

Line Comparison

Spreadsheet Interface

Note the zip file is placed as an object above for reference

Please leave the presentation mode to open the file

After completing the entries in excel, award is to be imported as a text file.

Complete Award

Only new PO’s can be created

Existing PO’s can not be updated

Create PO The workflow background process with the item type ‘Sourcing Complete Auction’ needs to be scheduled to run @ a frequency depending on the rate of publishing the RFQ. This workflow calls the standard ‘Create PO’ workflow to create the PO.

PO Summary All the price factors would come as line level attachments

Limitations of Sourcing

Inability to update existing Purchase Orders on award (only new PO creation is possible) – Please refer Complete Award

Spreadsheet interface – Export just dumps data from the tables. Item import for negotiation lines require certain intelligence from the buyers! – Please refer Spreadsheet Interface