Sourcing ISupplier

Oracle Sourcing /iSupplier

Yazan Al-Zabalawi

Agenda

• Oracle Sourcing.

• Oracle I Supplier.

• What’s New In R12.

Sourcing

The following are the Negations types available in Oracle Sourcing:

RFI: Request for Information used to qualify supplier and their goods or services.

RFQ: Enables Buyers to collect quotes for complex and hard defined goods or services.

Auctions: Enables buyers to solicit Bids for goods and services that are clearly defined.

Oracle Sourcing.

Features

• Create a RFQ.

• Create a RFI.

• Create a auctions.

• Supplier registration.

• Online discussions between Buyers and Suppliers.

• Awards.

• Allocating the quote to multiple suppliers.

Integration

• Oracle Purchasing.

• Oracle I supplier.

• Procurement Contracts.

I Supplier

Agenda

• Oracle iSupplier Portal Overview

• Supplier Registration

• Oracle iSupplier Portal Home Page

• Manage Orders

• Manage Shipments

• Hands On

• Receiving Information

• Invoice & Payment Information

• Supplier Profile Management.

Oracle iSupplier Portal Overview

What is Oracle iSupplier Portal?

• An Internet based Interactive Self Service Application

• Collaborative Capabilities Performing Common Business Applications

• Reviewing Purchase Agreements

• Initiating Purchase Order Changes / Performing Cancellations

• Managing Shipments i.e Advanced Shipment Notices

• Reviewing Customer Returns

• Self billing

Key Benefits Oracle iSupplier Portal

• Improve efficiency with trading partner self-service transaction processing.

• Strengthen supplier relationships, increase quality, and lower costs.

• Collaborate via the web for enhanced efficiency and better services.

Supplier Registration

Supplier Registration

• Self-service prospective vendor registration enable suppliers to register their interest in establishing a business relationship with the buying company.

• Once registered, the supplier can provide details about their company and describe the types of goods and services they provide.

Registration Link for New Suppliers

Registration Link for New Suppliers

Responsibilities Provided For Suppliers

Supplier Profile Manager

iSupplier Portal Full Access

Sourcing Supplier

Using Oracle iSupplier Portal Home Page

After login with User name and password provided in email, Supplier will view this home page

Pre requisites Before Transaction

Enter the mandatory details in Admin tab before transaction with buyer.

Supplier Profile Management

Overview

• Enables the supplier to manage key profile details used to establish or maintain a business relationship with the buying company.

• This profile information includes

Address information,

Names of main contacts,

Business classifications,

Banking details,

Category information about the goods and services that the supplier is able to provide to the buyer.

• Buyer administrators will review the details provided by the suppliers and use them to update the appropriate records in the buyer’s purchasing transaction system.

Key Benefits

• The supplier can benefit from managing their profile themselves.

• Enables the supplier to effectively represent to the buying company and update their profiles details as necessary, making important information accurate.

Supplier Details

• Enables the supplier can add to or change their profile information.

• The supplier can also add an attachment to their profile.

Business Classifications

• The supplier can claim classifications that are appropriate to their business and add any required classification details.

• Buyers can then audit the supplier’s qualifications.

• Once the supplier claim the appropriate classifications, buyer administrators are notified so they can review the details.

Product & Services

• Buying companies define product and service category sets that they use to categorize their supply base.

• The supplier can browse the list of goods and services and select all those that apply to their business.

• Buying companies can then use this information; some may use it to help generate supplier invitation lists for RFQs or for reporting.

Banking Details

• Enables the supplier to create and maintain their own bank account details and assign these accounts to multiple addresses within their company.

• Buying companies can then access and approve these details for propagation into their payables systems.

• The supplier can create and maintain bank account details that they want the buying company to use when they make payments to the supplier.

User Accounts

• Enables the supplier to view information regarding users that can access the Oracle iSupplier Portal application on behalf of their company

• Viewing user accounts is helpful for the supplier to track which suppliers are no longer with the company.

Oracle iSupplier Portal Ready for Transactions

Order Information

• Query Purchase Orders

• Acknowledging Purchase Orders

• Request Changes

• Initiating Cancellations

• Change History

Query Purchase Orders

Purchase Order Details

Purchase Order Acknowledgement

• Purchase Order- Acknowledgment • Orders qualified for acknowledging • Accepting or Rejecting Complete Order

Buying Company requests acknowledgement

of their purchase order

Supplier receives notification

requiring their response

Supplier Acknowledges the purchase order, Reviews the

details and Accepts or Rejects the order.

Notification sent to the Buyer

Purchase Order Acknowledgement

• Either acknowledge the order online, or accept or reject the order using the notification.

• The supplier can submit acknowledgments for an entire order, or for individual shipments.

• The supplier can also communicate change requests during acknowledgment.

Line &Shipment Modifications

Initiate Changes for Price, Quantity Order, Promised Date

Additional Change Requests

After submitting the changes, the purchase order status changes to Supplier Change Pending until the buyer approves the changes.

Change History

• Ability to track revisions as snapshot

• Current PO Vs. Previous PO

• Multiple Revision Tracking

Canceling Orders or Shipments

• The supplier can submit cancellation requests for an entire order or a particular shipment.

• The supplier can also submit changes and cancellations at the same time.

Agreements

• Supplier agreements are purchase agreements which the supplier have made with the buying company.

• On the Supplier Agreements page, supplier can review the details of those agreements, and the corresponding releases (orders) that have been created for a particular agreement.

Viewing Requests for Quotes

• Viewing requests for quotes (RFQs) enables the supplier to select possible negotiations to participate in with the buying company.

Manage Shipments

Overview

• Delivery Schedules

• Shipment Notices

• Receipts

• Returns

• Overdue Receipts

• On Time Performance

Delivery Schedules

• Delivery Schedules Due Date

Quantity Ordered and Received

Ship to Location

Ship to Location Address

Shipment Notices

• Shipment Notices Advanced Shipment Notice Advanced Shipment & Billing Notice View/Cancel Advanced Shipment & Billing Notice Create Routing Requests View Routing Responses

Shipments Due

Advance Shipping Notice (ASN)

• Supplier can alert the buying company of upcoming shipment deliveries.

• The details that can be specified on an ASN include:

Shipment Lines

Shipment Line Defaults

Packing Slip

Country of Origin

Bar Code Label

Container Number

Truck Number

Comments

Shipping Information

Advance Shipping Billing Notice (ASBN)

• The suppliers can enter billing information on a shipment notice to create an ASBN.

• An ASBN creates an invoice in the buyer’s payables system.

• To create an ASBN, the following billing details should be provided

Invoice Number

Invoice Amount

Invoice Date

Payment Terms

Freight Amount

Currency

Tax Amount

Remit To Site

ASN Creation Process Flow

View Shipments Due

Add To Shipment Notice

Enter Shipment Header Details

Enter Shipment Line Details

Submit

Notification sent to Buyer

Shipment Header

Shipment Lines

View/Cancel ASN/ASBN

• When supplier cancels an ASN or ASBN, the system sends a notification to the buyer.

• When supplier cancels an ASBN, both the shipment notice and corresponding invoice that was issued in the buyer’s payable system are canceled.

• Canceling a shipment notice cannot be undone.

Overdue Receipts

• Enables the supplier to view the details of past due purchase order shipments.

Receiving Information

Receiving Information

• Enables the supplier to view their receipts, returns, and delivery performance.

• The receiving information that can be viewed includes:

Receipts

Returns

On-Time Delivery Performance

Viewing Receipts

Viewing Returns

On-Time Delivery Performance

• Enables the supplier to view the delivery status of the shipments made against purchase orders.

• The supplier can view their performance for timeliness of deliveries.

Viewing On-Time Delivery Performance

Invoice & Payment Information

Overview

• Creating Invoice

• Payable Invoice Import

• Invoice validation

• Viewing Invoices

• Viewing payments

Submitting Invoices

• The supplier can submit an invoice online to the buying company based on the purchase order lines they have fulfilled.

• The supplier can invoice against open, approved, standard, or blanket purchase orders that are not fully billed.

• They can enter a credit memo against a fully billed purchase order (use negative quantity amounts to enter a credit memo), as well as invoice against multiple purchase orders.

• The supplier can also partially complete an invoice, save it, and submit it later.

• After the supplier submits an invoice, they cannot change the invoice. In order to make adjustments to a submitted invoice, a credit memo can be created against the same purchase order items to net out the invoice charges.

Invoice Creation

Viewing Invoice Information

• Enables the supplier to view the history of all their invoices by the buying

company.

Viewing Payment Information

• Enables the supplier to view the history of all the payments to their invoices completed by the buying company.

What’s New In

R12

• Buyers set up the minimum requirement scores that

suppliers must attain to remain in the negotiation

shortlist. Suppliers scored below the specified

minimum are automatically removed from the

shortlist. Suppliers excluded from the shortlist are

not eligible for awards.

Knockout Suppliers from the Shortlist

Description

• Knockout Criteria based on requirement Scores

(subjective or objective)

• Oracle Sourcing identifies quotes that do not meet

the minimum criteria and excludes them from the

shortlist


Description

No (0)

Are you ISO certified?

Quote 990 Quote 988 Are you ISO

certified? Yes

(100)

Quote 990 is excluded from Shortlist because it didn’t meet the Knockout minimum

Knockout Results

Are you ISO certified?

Knockout Minimum: 100

• Remove non-compliant responses automatically

Define minimum knockout criteria and let Oracle Sourcing

enforce it

• Focus on the quotes that meet the minimum criteria

Analyze in detail only quotes that are worthwhile

• Streamline sourcing process

Shorter analysis cycle results in faster award decisions


Benefits

Create Negotiation

Receive Bids

from Suppliers

Score bids


Setup and Process

PROCESS

Knockout Suppliers

Perform additional

analysis and award

activities

Requirements

automatically

scored?

Yes

No

Negotiation

close

Additional

requirements

to score?

No

Yes


Setup – Create Neg.: Knockout Score

Enter knockout score for

automatically and manually

scored requirements


Process – Knockout Results

Some responses remain in the

shortlist, others are reinstated.

• Enhanced Team Scoring Support

Buyers define scoring teams that are responsible for

evaluating different requirement sections. Members on a

scoring team score each quote for sections assigned to their

team. Upon completion of the scoring process, Oracle

Sourcing computes the average team score for each

requirement and section. Once scoring is locked, scores

from all teams are summed together and included with the

objective (automatic) scores to determine the overall score

for the response.

Team Scoring of Requirements

Description


Description

• Each Team Member

has a Score Sheet for

each response

• Each Team Member

scores each

Requirement for the

assigned Section

• Oracle Sourcing

calculates average of

Team Member Score

Sheets to determine

Section score

• Sum of Team scores

determines overall

response score

Quality Control Team

Technical Team

Technical Capabilities (40% weight)

Commercial Team

Price (40% weight)

Past Performance (20% weight)

Quote 988

• John = 90

• Mary = 85

• Sue = 80

• Sue = 75

• Doug = 80

• Tina = 85

• Alan = 90

• Mark = 80

Technical Capabilities = 34

Price = 32

Past Performance = 17

TOTAL SCORE FOR QUOTE:

83


Description

• Additional features

New collaboration team role: Scorer

Hide pricing information from specific team members

Full members can override overall score

• Reduce analysis time with online team scoring

Scorers work in parallel on their scoring sheets

Buyers do not need to compile the figures from different

team members

• Minimize buyer’s administrative role in the scoring

process

Oracle Sourcing coordinates team scoring effort

At any time, buyers can query scorers status

• Increase bid evaluation transparency

Share commercial terms with scorers on as-needed basis

Archived audit trail of team member scores


Benefits


Process – Create Neg.: CollaborationTeam

• New Scoring Only Access on Collaboration Team

Cannot edit negotiation

Ideal for non-buyers that need to evaluate responses


Process – Create Neg.: Scoring Teams

Detailed instructions per team

Control price visibility

by scoring team


Process – Score Responses

Scorers evaluate the quote sections

assigned to their teams.

<Insert Picture Here>

Enriched Bidding &

Analysis Spreadsheet

119

Enriched Bidding & Analysis Spreadsheet Description

• Provide formatted output for response and analysis

flows

• Download information at all levels to one file

• Support additional Sourcing features

• Use spreadsheet formula for instant analysis

• Contain color-coding for required and optional fields

Enriched Bidding & Analysis Spreadsheet Business Value

• Minimize errors for data entry

• Increase efficiency for data analysis

• Eliminate hassle to load and maintain various

spreadsheets for the same negotiation

• Improve overall user experience

Enriched Bidding & Analysis Spreadsheet Process - New XML Spreadsheet

Color-Coded

Required and

Optional Fields Multiple

Worksheets in

One File

Formatted and

Protected

Worksheet

Enriched Bidding & Analysis Spreadsheet Process - Response Lines

Predefined

List of

Values

Bid Total

Calculated

Instantly Line Filter

Link to

Scoring

Worksheet

Enriched Bidding & Analysis Spreadsheet Setup - Concurrent Processing

Maximum Number of Lines

• Threshold will be divided by 5 for XML Spreadsheets

Maximum Number of Errors

• Same value will be shared with Tab-Delimited Spreadsheets

124

Enriched Bidding & Analysis Spreadsheet Process - Analysis - Header Requirements

Weighted Scores

Calculated Instantly

Assess Weight

Impact for

Requirements Evaluate and

Assign Scores

for Suppliers

Rich Text

Support

125

Enriched Bidding & Analysis Spreadsheet Process - Analysis - Lines

Award and Savings

Amount per Supplier

Calculated Instantly

Side-by-Side

Bid

Comparison

Overall

Savings

Calculated

Instantly

Perform

What-If

Analysis

<Insert Picture Here>

2 Stage - RFQ

Two-Stage RFQ Description

• RFQ Creation

Creation of RFQ includes explicit and implicit classification

of sections as Technical and Commercial

Header Requirement Sections are classified explicitly as

Technical or Commercial

Contract Terms, Line Level Attributes, Notes etc are

implicitly classified as technical

Quote Price, Cost Factors, Price Tiers and Price Breaks,

Complex Work elements are all implicitly classified as

commercial

RFQ is sealed

Applies to both Standard and Large Negotiations


• Enhancements to Tools

Requirement Lists can be created explicitly for Two-Stage

RFQs

Templates can also be marked as Two-Stage and used

while creating a Two-Stage RFQ

Classification of Requirement Sections visible in print view

of negotiation in both buyer and supplier views

• Quote Creation and Submission

Suppliers submit a single quote in response to the RFQ

Attachments are tagged as ‘From Supplier: Technical’ or

‘From Supplier: Commercial’


• 2 Stage Evaluation Process Only technical sections are unlocked

Quotes may be disqualified, automatically knocked out or manually dropped from short list

After short listing, buyer concludes technical evaluation stage by executing Complete Evaluation: Technical

Commercial sections of quotes not short listed for commercial evaluation will be sealed forever

Quotes cannot be further short listed after commercial sections are unlocked

Analyze by Quote page allows comparison of responses to Header Requirements that are classified as technical

Award Optimization can be run only on quotes short listed from technical evaluation


• Team Scoring

Enhanced to allow scoring in both technical and commercial

stages

Scoring only on responses to technical sections during the

technical evaluation stage

Scores from technical stage cannot be edited by scorers during

commercial evaluation

• Commercial Evaluation & Award

Only quotes short listed from technical evaluations are available

for evaluation, analysis and award actions

Unlocking commercial sections allows the entire quote to be

visible

• New Notifications

New notifications added to communicate status of quote

Two-Stage RFQ Business Value

• Aids in evaluation of supplier responses in two distinct stages

• Checks and balances are built in to ensure that no commercial terms are visible during technical evaluation

• Data Security - commercial sections of quotes not short listed during technical evaluation can never be unsealed/unlocked

• Transparency of process across user groups by way of RFQ statuses and notifications

• 2 Stage RFQ is often mandatory in the Public Sector industry and certain Government organizations

Two-Stage RFQ Process – Negotiation Creation

Two-Stage RFQ

Process – Quote Creation (Requirements)

Two-Stage RFQ

Process – Abstract & Forms

• To enable Two-Stage check box in the Abstract

Add the field Two-Stage RFQ to the abstract

The Check Box will be displayed only for a Two-Stage RFQ

Two-Stage RFQ Process – Technical Evaluation

Commercial Sections

cannot be scored during

technical evaluation

Two-Stage RFQ Process – Commercial Evaluation

Quote not available for

comparison. Also note that the

Quote Total is sealed

Quote not short-listed from

technical evaluation

Thank You……..

Documents

Sourcing ISupplier