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Supply Management

Best Practices for
Leveraging D&B in
Best Practices for                                    Oracle E-Business suite means supplier transac-
There are three stages to D&B’s supplier informa-
tion management best practices:
allowing users who are responsible for setting up        not only looking for exact matches or similar
new suppliers to ac...
Common Use Cases
Scenario One: Batch Standardization and                 The D&B account team will review the pres-
APPENDIX                                                 • The D-U-N-S® Number is D&B's unique, nine-
About the Author: Dan Power is the founder of Hub Solution Designs, Inc., a management and technology
consulting firm spec...
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Best Practices for Leveraging D&B in Oracle E-Business Suite


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A white paper, “Best Practices for Leveraging D&B in Oracle E-Business Suite”, written in partnership between Hub Solution Designs and Dun & Bradstreet. Covers best practices in using D&B information in supply management in the Oracle E-Business Suite.

Published in: Technology, Business

Best Practices for Leveraging D&B in Oracle E-Business Suite

  1. 1. Supply Management Solutions Best Practices for Leveraging D&B in Oracle E-Business Suite White Paper by Dan Power Founder of Hub Solution Designs, Inc., a management and technology consulting firm specializing in master data management and data governance
  2. 2. Best Practices for Oracle E-Business suite means supplier transac- tions are done more quickly and securely. Leveraging D&B in As of October 2009, D&B has over 155 million Oracle E-Business Suite records in its global database, including 101 million active businesses and more than 50 million inac- tive businesses with historical information for Executive Summary matching and cleansing purposes. Approximately 44% of content comes from Europe, Middle East Supply chain management in medium-sized to and Africa (EMEA), 38% from the Americas, and 18% large enterprises continues to be challenging – and from Asia Pacific. The database is updated more getting it right in these uncertain times is only than 1.5 million times per day. more critical. The complexity of the recent global economic turmoil makes companies more de- With D&B supplier information, procurement and pendent on suppliers than ever before. There's no supply chain executives get the answers to the room for mistakes, as manufacturers, retailers and “tough questions,” including: others dependent on suppliers to get business done race to stay ahead of the competition, increase • What am I buying across my supplier portfolio? margins and innovate. • Who am I buying from and how much am I spending? This paper provides insight into the power of • How do I identify and track risky suppliers? trusted information in driving better supply chain • Am I meeting my diversity goals and performance for Oracle E-Business suite customers. reporting requirements? It offers specific examples of how clean and accu- • Am I buying from preferred suppliers and rate supplier information can: meeting internal compliance policies? • Identify savings opportunities Many factors make it hard to answer these ques- • Increase negotiating leverage tions, but the single largest driver of the challenge • Achieve diversity goals is incomplete and inaccurate supplier information. • Minimize supplier disruptions • Reduce risk • Data on spending resides in multiple systems mak- • Meet internal compliance policies ing it extremely difficult to manage total spend. • Duplicate records understate the total spend Trusted External Data Helps Answer the with each supplier, significantly reducing Tough Questions negotiating leverage. • Partial information in supplier profiles forces The combination of Oracle’s industry-leading E- buyers to guess about critical data such as Procurement platform with trusted supplier data financial health and diversity status. from D&B provides a powerful procurement sys- • “Data decay” leads to out-of-date information, tem for companies of all sizes and types. The seam- leaving companies vulnerable to critical less integration of D&B supplier insight with the changes in their supply base. 2
  3. 3. There are three stages to D&B’s supplier informa- tion management best practices: “Most organizations do not track and measure the cost of poor quality of data on their suppliers. Such poor supplier data 1. Standardize: consolidate supplier data and quality may add up to over 10% of the orga- eliminate duplicate records nization’s revenue. Supplier risk manage- 2. Enrich: with third party data to gain the most ment is being addressed by every major complete view of supplier opportunity and risk organization now. enrich IT and D&B have 3. Refresh: maintain the supplier information partnered to provide significant value in re- ducing the cause and effects of supplier risk. D&B and the Oracle E-Business Suite With our deep knowledge in Oracle technol- ogy and procurement domain, we have Oracle and D&B have been working together since demonstrated to our clients the value of 1999 to integrate D&B’s content with Oracle’s combining D&B’s proprietary supplier risk applications, through real-time and batch tools management information with Oracle’s that joint customers can use to access D&B. enterprise-wide supplier-related information through BI/dashboard solutions – including P2P transactional details. enrich IT has In Release 12, Oracle brings the Supplier Master implemented and also seen in many clients function into the Trading Community Architec- Oracle and D&B integration working ture, making it possible to use D&B for suppliers as smoothly through the Trading Community it has been used for customers since Release 11i. Architecture.” – Arul Murugan, President & CEO, enrich IT, Inc. Information that Powers Performance and allows companies to establish a cleansed and Companies can benefit directly, by designing cost standardized supplier portfolio, and to eliminate reduction programs or indirectly, by working with duplicate suppliers. a more diverse supplier base for example. Regard- less of how the information is used, the result is the Specific data elements include: same: a stronger procurement and supply chain foundation and best-in-class supplier information • Legal business name and up to five “Doing management practices. Business As” names • Physical and mailing address With the D&B and Oracle e-business solution, compa- • CEO name and title nies gain immediate and long-term benefits,including: • Legal structure • Federal tax ID 1. Better Understanding of Suppliers for • Year started, annual sales and total employees Better Decisions • Up to six SIC codes Valuable demographic information means compa- 2. Faster, More Effective Supplier On-Boarding nies know what they buy and from whom. This transparency delivers a consolidated view of sup- D&B’s Data Integration Toolkit is built into Oracle pliers and spends from multiple, disparate systems, Customers Online as a data stewardship tool, 3
  4. 4. allowing users who are responsible for setting up not only looking for exact matches or similar new suppliers to access D&B data in real-time. strings of text in the company name or address, it can also match between legal name and This ability delivers immediate insight into the “doing business as” names, and even between identity and stability of suppliers with a detailed current name and address and historical name profile of each supplier, including headquarters and address. and parent company identification, risk indicators, payment information and failure scores. 6. Compliance and Diversity 3. Managing Supplier Financial Risk D&B makes it easier to comply with Federal Compliance Reporting Requirements, prepare for D&B provides information to better manage risk in internal audits, or uncover new supplier opportu- the supplier portfolio, including items like the nities. D&B provides access to over 4.3 million debarment indicator, the Supplier Evaluation Risk diverse suppliers with the following socio- Rating, the Severe Risk indicator, the Bankruptcy economic classifications to help build and grow indicator, the number of Suits, Liens, and Judg- supplier diversity initiatives: Women, Minority, ments and the D&B Rating. Ethnic, Veteran, Small Business, etc. This allows companies to perform risk analysis 7. Strategic Sourcing across the entire supplier portfolio, to identify sup- pliers likely to go out of business, and to track risk Often, negotiating leverage is lost because several across the portfolio (and how it changes over time). different business units of the company are buy- ing from several different business units of the 4. Managing Reputational Risk supplier. Assessing what is currently bought and from whom, including the rollup of purchases to In the light of well-publicized issues with lead the ultimate parent companies of suppliers can painted toys and toxic toothpaste, supply chain provide a much stronger negotiating position. management today is an area of huge potential risk to corporate reputations. Conclusion Forward-edge organizations use D&B to monitor Supplier-dependent companies need insight and Tier-1 suppliers, and Tier-2 and Tier-3 suppliers to intelligence that can power more proactive, effec- gain visibility into the second layer of companies tive responses to the changing business climate. selling to the immediate supply network. With Oracle R12, customers can take advantage of the pre-built integration of D&B services to match 5. Supplier De-Duplication and enrich supplier information in batch or real-time. The powerful combination increases De-duplication is a major part of ensuring the the speed and quality of decision making, while quality of supplier information. D&B typically reducing process costs and lowering risk. finds 20 – 30 percent more duplicates than sophis- ticated pattern-matching programs, because it’s 4
  5. 5. Common Use Cases Scenario One: Batch Standardization and The D&B account team will review the pres- Enrichment of Supplier Information ence/absence of key fields to check that all fields are present and are populated correctly, as well as reviewing the deliverable against a QC checklist The process for using D&B to standardize, enrich and the client’s project requirements, before meet- and refresh supplier information in Oracle E-Busi- ing to review and sign-off on the deliverable. ness Suite R12 is straightforward and leverages standard, Oracle-provided functionality: 3. Use D&B Import Adapter and Bulk Import (Im- port Batch to TCA Registry) – Oracle provides two 1. Extract Data – If the company is already “live” on programs, run one after the other, to load D&B Release 12 and all of its suppliers exist in the TCA data into the TCA Registry at the party level. Registry as parties, an Oracle-provided program in the Trading Community Manager responsibility called “Generate Request List for D&B Batch Load” The first is a request set called the “D&B Import creates a fixed-width text file including the fol- Adapter.” It loads data from the flat file provided lowing data elements: D-U-N-S® Number, Party by D&B into the Bulk Import interface tables. Name, Address1, Address2, Address3, Address4, City, To move the D&B data from the interface tables State, Country, Postal Code, Party ID, Phone number. into the main TCA tables requires a simple step: running the Bulk Import (Import Batch to TCA Registry). If not yet live on Oracle R12, the customer can create an extract file that contains the required input data from whatever system currently houses Scenario Two: Real-Time Verification and the supplier data. On-Boarding of Suppliers 2. D&B Performs the Cleanse, Match and Enrich- Many organizations have standardized on D&B as ment Process – Once D&B receives the file, the a key part of their process for validating and D&B Program Manager will provide receipt confir- on-boarding new suppliers. For example, the mation, as well as a project plan and an estimated U.S. government requires a D-U-N-S Number completion date. from all organizations doing business with or receiving grants from the Federal Government. The Program Manager and the programming team And a large number of industry associations will analyze the data and prepare for the match recommend D&B for business identification and and append steps. The Entity Matching and electronic commerce. D-U-N-S Number Assignment steps will be per- formed. The team will drive D-U-N-S Number The process flow in the Purchasing or Payables assignment on the Top 100 unmatched records modules would likely be very similar to how most based on spend. The Program Manager will check Oracle customers do it today, with the addition of the D-U-N-S Numbers on the Top 100 matched using the Data Integration Toolkit within Oracle records based on spend, and collaborate on high- Customers Online to enrich the supplier parties dollar unmatched records. after they’ve been added to the TCA Registry. This function would typically be performed by a data The D&B programming team will append D&B steward within a data governance team (as part of data to matched records (based on delivery stan- a supplier master data management effort), or al- dards) and perform a comprehensive quality ternatively by someone within the purchasing assurance review of the data extract process. team responsible for setting up new suppliers. 5
  6. 6. APPENDIX • The D-U-N-S® Number is D&B's unique, nine- digit, location-specific business identification number, which D&B assigns as a means of identi- D&B’s DUNSRight® Process fying and tracking companies globally throughout their lifecycle. Once assigned, a D-U-N-S Number is D&B’s definition of data quality includes four not reused nor reassigned to another business. dimensions: accuracy, completeness, timeliness and consistency. It uses this definition in its Used by the world's most influential standards- DUNSRight process for collecting, aggregating, setting organizations, the D-U-N-S Number is rec- editing and checking data from thousands of ognized, recommended, and/or required by more sources every day. With DUNSRight, customers get than 50 global, industry and trade associations, deep, detailed and relevant insight that can drive including the United Nations, the European Com- better decisions. mission, and the U.S. Federal Government. The DUNSRight process consists of: • Corporate Linkage uses the D-U-N-S Number to link members to corporate families. Corporate link- • Global Data Collection: aggregated data from age occurs in the D&B Global Database when one thousands of sources to provide both breadth and business location has a financial and legal respon- depth of business information. The world’s largest sibility for another business location. Corporate and most comprehensive business information Linkage enables D&B customers to view their total database includes up to 1,500 data elements on any risk or opportunity across related businesses. given company, depending on the availability of D&B’s global business database has more corporate information on the company. More than the obvi- family structures than any other data provider ous elements (business name, address, telephone worldwide, with over 2.5 million families and 11 number, bankruptcies, and business registrations) million family members. include industry profile, NAICS codes, SIC codes, financial statements, small business indicator, • Predictive Indicators use statistical analysis to commercial credit score, financial stress score, geo rate a business’s past performance and to indicate code, domestic and global linkage, payment expe- how likely the business is to perform that same riences, and news and events to deliver a much way in the future. Predictive Indicators leverage deeper, more relevant profile. the analytical capabilities of experienced PhDs to build predictive models with unique D&B data • Entity Matching: D&B’s proprietary method for capabilities, including industry-specific knowl- matching various sources’ business information edge, financial and Payment Trade Experiences against its global database. This process allows for on numerous private companies, and extensive and corrects variations in spelling (e.g., IBM vs. In- historical information for risk modeling and risk ternational Business Machines), formats, trade trend analytics purposes. The key output from names and addresses, and executive’s data from these analyses is D&B’s unique scores – disparate sources (e.g., a state business license, a Commercial Credit Score, Financial Stress Score, Federal 10K filing, and a Yellow Pages listing) with Marketing Pre-screen Score, Supplier Evaluation the appropriate D&B record. Risk Rating, PAYDEX® Score, etc. 6
  7. 7. About the Author: Dan Power is the founder of Hub Solution Designs, Inc., a management and technology consulting firm specializing in master data management and data governance. Contact him at or visit 7
  8. 8. Decide with Confidence D&B Solutions Risk Management Solutions Sales & Marketing Solutions Supply Management Solutions E-Business Solutions White Paper: © 2009 Hub Solution Designs, Inc. Reprinted with permission. Appendix: © 2009 The Dun & Bradstreet Corporation. D&B and the D&B logo are registered trademarks. All other trademarks are the property of their respective owners.