Oracle Fusion Applications Webinar

Oracle Fusion Applications Family Overview Procurement, April

20 t h , 2010
Presenter: Vice President Tom Anthony
MR. TOM ANTHONY: Good morning, everyone. Welcome to the
Fusion Applications Foundation Series. This is the Oracle
Fusion Application Family Overview for Procurement. I am Tom
Anthony, Vice President of Procurement Product Strategy.
Today we are going to walk through Oracle Fusion Procurement,
what's there, what's great and walk through just the high
level functional differentiators of the product to give you a
good idea of what's in the solution, as well as show you some
demonstrations. With that, we'll jump right in.
Safe Harbor statement is standard in all of our presentations
to make sure that, as you know, any of these features and
functions can change by the time that we go live with the
release.
Let's begin with talking about what Fusion Procurement is.
Really, it's an integrated suite of procurement applications.
If you think about what we have in our market today across
our various products in procurement across E-Business Suite,
Peoplesoft and JD Edwards, really delivering to the market an
integrated suite of procurement applications is important
really to try and drive better procurement processes across
an analysis during supplier negotiations, creating and
enforcing contracts, working with your suppliers, managing
catalogs, allowing requisitions to be created, turned into
purchase orders, receiving to happen in payable.
Really, when we talk about Fusion Procurement, there is a
broad stroke of applications available to manage the end-toend process. The real goal is to help organizations drive
better procurement processes, drive down their costs and do
it in a way that is a little bit better from the usability
perspective, gives them better decision-making capabilities
and providing them tools for making decisions, giving them
better analytics in the tools and then streamlining the
actions within the application. Really, we are trying to
pull together what we consider to be best-in-class of
procurement functionality from all of our different products
that we had available and in some cases, actually rethinking
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how procurement has transformed over the last decade and

rethinking how Fusion applications should really deliver a
better procurement solution.
Before I dive into the different functional areas, I thought
it would be good to level set the different products that are
available in the Fusion Procurement Suite. I'll contrast
these to what's available in the different suites today to
give you a good comparison for what the module equivalences
are.
In Fusion Procurement, we've got our purchasing application
that is obviously equivalent to E-Business Suite purchasing,
Peoplesoft purchasing, JD Edwards purchasing, really geared
towards that buyer function for managing requisitions and
purchase orders, etc.
Then we've got self-service procurement, which is an
equivalent of iProcurement on E-Business side, eProcurement
on the Peoplesoft side, requisition self-service on the JD
Edwards side. So it's really geared towards employee selfservice for finding the goods and services that they need,
placing a requisition, getting that requisition approved and
then into the purchasing process from there.
We'll walk through each one of the modules in detail as we go
through. I wanted to give you that equivalency.
Sourcing is equivalent to Sourcing in E-business Suite,
Strategic Sourcing on the Peoplesoft side. It is a super set
of functionality that's in the operational sourcing on JD
Edwards.
Procurement contracts is equivalent to Procurement Contracts
in E-Business Suite. It is also the equivalent of Supplier
Contract Management on the Peoplesoft side. It's really
around managing and negotiating contracts.
Supplier Portal is the equivalent of iSupplier Portal on the
EBS side from a module perspective. It's equivalent to
eSupplier Connection on the Peoplesoft side, Supplier Self
Service on JD Edwards.
Then we've got spend and performance analytic. It's our OBIA
as well as additional functionality around reporting, getting
into that data warehouse and better decision-making tools

across both where are you spending and also your operational
efficiencies.
With that said, I'm going to now walk through each one of the
different product areas represented here and give you what's
new, what's exciting in each one of these, to give you a leg
up as you go into the deeper TOIs in each one of these areas
and give you that overview and get your armed with what to
look for when you're hearing those TOIs.
If we start at Oracle Fusion purchasing, this is the core
transactional executional portion of procurement. What we
want to be able to do is provide a comprehensive purchasing
solution so you've got the ability to manage agreements with
your suppliers in the system, manage requisitions, manage
purchase orders, manage receipts, manage your suppliers and
your items and all those things to really do an end-to-end
rec to check process.
What we have done besides just looking at making sure that we
had good functional coverage there was we wanted to make sure
it had a very intuitive design. We wanted to look at what
are the typical interactions that a buyer has on a day-to-day
basis and provide them a better set of tools for not just
navigating through this system, but provide them the work
that they need to do and provide a very easy way to do that.
Increase, basically, that buyer productivity in the system
and reduce the learning curve that we've got using the
applications and just reinforce that.
As we brought in customers for testing over the last year,
using the application in a live fashion, it's been across the
board that the customers have really reinforced that they
find the application very usable. It's what they call
learnable. It really does come across the users as they see
the system and interact with the system, that we really have
taken this a step forward in productivity in interaction with
the system. It is an important thing.
The next concept that we have introduced into Fusion
purchasing is something we are calling center driven
procurement. We have had center lead initiatives. We have
had shared services initiatives. Really what center driven
procurement is about is that organizationally procurement
departments and procurement organizations have organized
themselves around having centers of category level expertise.
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There is a new role that has emerged in procurement called

the category manager. That category manager is responsible
for negotiating with suppliers, managing agreements, looking
for cost savings. We wanted to realize in our application
that sometimes those centers of procurement expertise are
centralized. Sometimes those are decentralized in the lives
of business. Sometimes those are even decentralized down to
individual location level areas of expertise.
We wanted to be able to model in our Fusion Procurement
applications better support for how procurement organizations
are managed, ride better information to those procurement
centers to how they do business, really support information
to help make them get better decisions, find better cost
savings, and really execute in a much more flexible manner
and give companies the opportunity to centralize and
decentralize procurement functions as it makes sense for
their business and not really tie them to organizationally
how they are aligned. That's our core concept. I'll
actually talk through a little bit more on the next slide on
that concept. It is an important one.
The next area is that we've unified the procurement approval
workflow. If you look at E-Business Suite, we've had a core
work flow. We've had AME. We've had on the Peoplesoft side
a core work flow and a work flow that was available in
eProcurement. We have had different work flow technologies
available with different functions. What we did--and this is
across all of Fusion, it's not just tied to procurement
itself--is that we've used a common technology platform for
procurement work flow to support things like FYI
notifications and parallel approvals, etc., and provided a
common way of approving documents, be it a requisition, a
purchase order, a purchase order change, an agreement, etc.,
across the flow. It really helps simply creating rules and
defining rules and policies and helps improve policy
compliance overall in our organization. It's another key
concept for Fusion Procurement.
The next area is document change management. Better ability
to control what changes are allowed and who can make changes
and whether those changes are internal changes or a supplier
facing changes is really what document change management is
all about. I will actually walk through that in more detail.
The concept is that you want to insure that people are
allowed to make the changes that they need to make in a
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controlled fashion to purchasing documents. That would be

like a purchase order or an agreement, have controls in place
and then be able to control whether that's change that's
internal, administrative, or a change that you do need to
notify the supplies. Why this is important is that you want
to make sure that if it's in internal change, like a change
to your accounting structure for example, you want to make
sure that you've got that change captured. You want to know
who changed it, when they changed it and even capture
potentially why they changed it. You don't want to
necessarily send that out to your supplier and say revision
to that purchase order. What tends to happen is if you do
that, then you get duplicate supplies. The supplier doesn't
know that it's a change to an existing order. They think
it's a new order and you get duplicate orders coming through.
What we wanted to make sure is that we've got a better way of
communicating those changes as well s tracking them. I'll
show you a little bit more details here in the next couple
slides.
The last area is really about improving buyer productivity.
We've got a buyer's work center that really drives and, in
general, you'll see a lot of different work centers here.
But for the buyer, we wanted to drive buyers to key areas
that need their attention directly from their work center
page. If they've got requisitions that need attention,
they've got purchase orders that need attention, agreements
that need attention, rather than having to navigate around to
different areas, we wanted to provide them one landing page
that really drives them to take action directly from there.
You will actually see that screenshot. As well as provide
them better embedded intelligence around how they are being
measured and giving them some information.
These are some of the key areas within Fusion purchasing. I
was going to dive into a couple areas in a little bit more
detail.
We talked about center driven procurement as a way of better
modeling how organizations are organized around category
expertise. I mentioned that organizations may centralize or
decentralize or have what is called center-lead. That
center-lead organization is an organization that is
responsible for negotiating and creating agreements with
suppliers but aren't necessarily responsible for executing or
turning reqs into purchase orders against that agreement.
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Usually they're doing that on behalf of an organization.

Typically they involve that organization in the decision
making and negotiation with suppliers but then allow the
organization that they are serving to execute.
We've got a way of modeling all those different types of
relationships. What we've done in Fusion, for those folks
that are very familiar with procurement, is we now have
distinct business functions that allow you to create distinct
business units around requisitioning business functions and
procurement business function and then for a transactional
ownership of a transaction they sold to business unit.
That separation of requisitioning in a procurement business
unit allows you to create kind of a source of demand being
direct to you and the servicer or a place that is servicing
that demand to be a procurement business unit. There is many
flavors within that. We've got the ability now for a
procurement business unit to service multiple requisitioning
business unit. So they can create agreements, for example,
within a procurement view that they can say which
requisitioning business units could buy off of that
agreement.
You can set up global agreements. You can set up very
organizational focused agreements or even location focus
agreements. As well as from a requisitioning business unit
perspective, they can be serviced by multiple procurement
units. They can have a local purchasing organization as well
as many centralized or even divisionally centralized
procurement organizations that buy for them. You might have
centralized legal span, centralized marketing span. You
might have decentralized or line of business packaging and
then location level raw material, for example, type of buying
going on.
The whole reason for this is that we wanted to give
organizations a flexibility for when they did localized or
centralized procurement functions, and we wanted to also
simplify, set up and reduce the data administration. As y ou
look at this model, no longer are you having to replicate,
for example, sold-to business units, which is what we do on
the E-Business Suite side. Replicate sold-to business units
by requisitioning line of business. You only have to define
that in the procurement view, write that agreement, then
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point to the different decentralized requisitioning business

units.
Similarly, on the Peoplesoft side, most direct customers
ended up creating one set ID because you couldn't model using
a set ID concept centralized, global suppliers, divisional
supplier, and localized suppliers. You'd have to create
multiple sets. It really helps to reduce data administration
and also improve the alignment of procurement departments.
The next area I want to talk about is informed actions. This
is around the buyer's work center. On this very small screen
shot, I hope you can see, that we're driving users to a
requisitioning summary area, an order summary area and
agreement summary area with different tabs for things like
negation required things that require attention, so that
we're really driving the user to take action directly from
within this, as well as providing them metrics on the righthand side to get better decision support. Really helping
users find the work they need to do very quickly, take action
on that and know how theyre being measured directly within
the application. So this is a pretty exciting way for users
to interact and we think it is really going to improve their
productivity as a buying organization.
Around unified approvals. I talked to this across all of
Fusion Applications, but specifically involved the ability to
improve the ability to route and manage approvals across the
organization. It's all rules based. We're underneath the
covers from a technology perspective. We're using business
process execution language--BPEL or BPEL, depending what part
of the country you are in. We support things like ad hoc
approvals, so if you need to add people that don' t come up as
part of the rules engine and you need to add them. We
support ad hoc approvals We have FYI notifications so people
can be notified about a purchase but not necessarily approved
before you can turn it into purchase order. We've got a
graphical view of the approval chain with the ability to
preview approvals within the application. We've got a very
robust tool set for managing and defining those approval
processes so it's auditable as well, which is an important
aspect in today's procurement organizations.
We also have the ability to extend our approvals engine using
this tool set where you can actually utilize business
intelligence or even external web services to help drive your
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approval. If you think about approvals for a requisition

that's going to go to a supplier that is deemed high
financial risk, you may actually want to drive that approval
through a category manager or through senior management of
approval in procurement before you let that purchase go
through outside or you normal hierarchical approval. It's a
way to use information that's captured in BI to manage risk
in the applications as well as in leveraged approval. It's
another exciting way that we can leverage the technology in
Fusion.
In document change management, I touched briefly on this on
the overview slide. Really, we got the ability for multiple
roles. We've got the requester role, the buyer role or
supplier role. Each one of those types of folks could
request changes to a purchase order or to an agreement within
the constraints to guide obviously around approvals and
tolerances in your work flow.
You may or may not want to allow requester-initiated changes
or supplier-initiated changes, but it is a great way to allow
that to happen in a controlled fashion. If you want to have
suppliers author their own agreements, allow them to make
changes to descriptions if they have abates to item levels,
item information for example, or it they want to submit
changes to pricing, you can control that and if it's just a
description change, let that flow through without buyer
intervention. But if they change price, you do want to
enable buyer intervention. That's one way that we can
control the initiation of a change and make sure that that's
controlled.
Some of the key features is that we can route for approval
based upon who initiated the change. You may not want to
route necessarily a buyer-initiated change for approval, or
you might want to route a request for a supplier initiated
change for approval.
We have the ability to execute against either a purchase
order or agreement while you got changes pending. Think
about renegotiating long-standing agreements with suppliers.
Sometimes that negations process can take months. I've seen
them take three to six months to renegotiate, and you want to
make sure that you're executing against the last agreed-to
agreement in the application while you are still working
through updates and amendments and renewals.
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We have the ability to configure what we call an amendment

versus administrative change. We have the ability to track
revisions in the application and send out revisions that, as
I mentioned before, if it's something internally, you don't
want to send that out to your supplier. If it's a supplier
change, like I'm changing the item or I'm changing the
pricing or I'm changing the dates, that is something I do
want to send out to the supplier and get their response to.
We also have supplier either approval or rejection or
acknowledgement dates. We can revert back to a previo usly
approved version. If you started to renew or amend an
agreement with a supplier and those negotiations end up not
ending in a finalized approved agreement, we can revert back
to the last approved and really, there is no change to how
you executed.
We've got a complete document change history of everything
that changed, whether it was an internal administrative
change or a supplier facing change in the application with
who changed it, when they changed it and you have a complete
visibility to that document's history being a purchase order
agreement.
That was an overview of purchasing. Im going to jump into
the next area here. For those of you getting slides, there's
a demo right around the corner.
Self-service procurement is the next area. Again, it's the
employee self-service for creating requisitions for goods and
services. Really we wanted again to have a very tightly
integrated self-service capability. We built a number of
these in the past across a different set of applications very
intuitive. Really, we got the ability to create and ma nage
requisitions and approvals. Things you'd expect to be able
to do in the application and really help manage employees
spend and drive them to preferred suppliers. Things that are
new and different.
If you think about rolling out an employee self-service
solution to thousands. I've seen deployments of over 100,000
users. The real trick is that classroom-based training
really doesnt work. Because if you think about how often
you interact with self service procurement--I personally go
in maybe every six months to order things I need--if you try
to do classroom based training, by the time they need to use
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it, it's no longer really in their frame of mind and they

really need to be reminded how to do it.
We've got in the application embedded learning, really to
take lessons learned from our user productivity kit or UPK in
providing rich--not text based. I don't want to read a
manual. I want to see how to do things and get a visual
queue and really provide that embedded learning. I'll
actually show that you. We have the ability to really
provide a rich user assistance when they need it and r eally
minimize the training requirements involved in rolling this
out to the broad masses.
We've got a consumer centric user experience, so things you'd
expect to see when shopping on your favorite online sites.
We've got search capabilities, browse capabilities, compare
favorites, recent items to e-mail, all those great things.
Really to help encourage broad adoption, it should look very
similar to things they use from a consumer centric outside of
the work place. You'll see that when I do the demo here that
it's really something that most folks that do shop online
will be very accustomed to.
The next concept we have is a catalog superstore. We've got
the ability to basically categorize or associate categorize
to not just internally hosted content but you can categorize
now you punch out suppliers, your favorite items, your smart
forms, informational catalogs, in a way that allows them to
find whether the use search or the use browse, find the
concept that they need very quickly. I'll show you how that
works in the next slide in a quick example.
Lastly, we did quite a bit of work with our customers around
what types of analytics would they want to provide requesters
to help them make better buying decisions. You'll see that
we've got some analytics around for example cycle time, that
helps users set expectations for how long something might
take to receive so that they are not bothering the buyer
right away when the place that order.
Before I jump to the demo, just a real quick example on the
catalog superstore. In this example, typically you'd have
local content if you're loading up catalogs from your
suppliers, like Staples, etc. You can load that content.
But you have also got punch out suppliers. What you want to
be able to do is take things like Office Depot or Corporate
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Express that are office supply suppliers, associate them to a

category such as office equipment and accessories so that
anytime I do a search that it results in an underlying
category. If I was searching for scissors or staplers, not
just show them the local content, but show them that we have
punch out suppliers available in that category as well.
Similarly, we have the ability to do that with smart forms
and informational catalogs as well. It really gives the user
the ability to find what they need without necessarily having
to know where you put it in the catalog.
Without further adieu, I think I'm going to jump into a quick
demonstration of self-service procurement. I talked about,
as employee, now I've logged in. I've got into the system
and I need to place an order for goods and services. As I
mentioned, I might not necessarily know what to do. Across
all of our applications, anytime you see these --in Fusion
applications, anytime you see this little question mark, it's
a way to pull up different types of help from our embedded
help platform. We could have things like policies,
procedures, manuals.
Here I'm going to go into what's closer looking to a UPK, or
user productivity kit. I can hover over that, and I can see
information about this type of help. We actually have user
rating capabilities so you get feedback on is this a piece of
help that is actually useful by other people that have looked
at it, for example. This I can see is now a quick two or
three self-service shopping, so I'm going to go ahead and
click on placing an order.
We've got different versions of this. Some folks, when they
deploy a UPK, they do a see it, which allows users to walk
through visually a process. You can also do things like try
it, which allows you to interact with a mock system. It
walks them through step-by-step but they are taking action.
You can also test it or know it where you test proficiency.
You typically wouldn't see this in employee self service, but
in areas like buyer proficiency or category managed
proficiency or even supplier proficiency. It's an area
dependent test that they understand, for example, if you're
doing a negotiation with the supplier, they understand how
they enter a bid and those types of things.
Here we're going to go ahead and jump into see it. See it
walks basically the user through an interactive step-by-step
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flow. As I said before, you can also make this where they
have to take action. This walks that user through it and get
a good understanding of how to do a search. In this case,
we're walking through the whole process. Very rich content
once again at the point used to help better train the mass
amounts of users.
Now I've seen how to do it. Let me show you a couple other
concepts that you've got. We have the ability to browse.
Some users like to search. Some users like to browse, and
sometimes it matters on what they're buying. This end user
has the ability to browse the catalog from here. They can
manage their requisitions. They can see what we call
purchasing news, that there is new categories available, that
there is new policies that employees need to be aware of.
You can display that in the purchasing news. We've got
additional quick links up to the right.
I'm going to jump into the office supplies category. Within
here, typically what you'd expect to see. We've got a list
here of the things that are in this category. We've got
additional drill down. It's not just drill down, but it also
provides counts to let the user know what is the most
populated category within the system of browsing. I might
want to further drill down into desk supplies. You've got
additional views in this as well, if you wanted to view more
of a grid format versus this is what we call our paragraph
format, with your rich description. You've got your images,
all the additional information. You could edit to shopping
list, set it to your compare. It directs all those types of
things.
That's just one quick example of being able to drill down
from a browse perspective. We also have the ability to drill
in the search. If I do a search, for example, for printer
here, what it comes back with then is similar format that is
found in a search. If we had, for example, a punch out
supplier that was set up in the category of printers, it
would have shown up at the top as well as some other option.
Here we've got a couple of different printers to look at.
We've got a color photo printer and a color ink jet printer.
I want to see the actual differences between those two. Let
me add that to compare. Now it adds it to a little compare
bucket down here.

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I can do side-by-side comparisons. This is where some of the

embedded analytics kind of come into play. So we've got a
couple things to look at here. We've got our paragraph sideby-side view of additional information. We've got the
ability to add new columns here as well. We also have two
things I want to point out. One is item popularity rank.
So we're looking in this category and showing this is the
number three out of number ten most ordered printer. This is
number five out of ten, just to give you a relative ranking
for what other folks in the organization are buying.
Then we also heard from our customers. They wanted to set
expectations for the user for how long something might take
to receive. So, for example, here you've got two different
printers. One takes seven days, one takes thirteen days.
What you want to avoid is that somebody orders something and
they are calling the buyer the next day saying hey, what's
the status. It really wastes time. Setting this high level
expectation for how long things take to get approved and
process and then fulfilled really just helps set expectations
and cut down on calls to the buyer.
I'll just go ahead and add it to the requisition. I can add
multiple things to my requisition. It adds up in your
requisition area to the right. Once I'm done, I can go ahead
and edit and submit.
We've got a one page check out where you can do things like
change or add your billing. Down below you've got project
information. Here, we're showing you again the average
requisition fulfillment time for the item. You can add to
your description any justification to your approvers, and you
could also preview your approvals and generate a PDF.
At this point, you just want to submit it. One of the things
we heard from our customers is that requesters still haven't
necessarily gotten rid of paper. So we have the ability to
generate a PDF directly after they've done the submission as
well. We're going to hit okay. If you hit okay, it's on the
requisition pool, and you're done.
I hope that showed some of the newer capabilities in selfservice procurement, some of the embedded analytics, etc.
Just to give you a high level play order. As I said, there
will be more detailed TOIs available as we progress in each
one of the areas that I'm demonstrating.
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Things that we saw: We saw the embedded learning, the

ability to rule out training to the masses. We saw what I
hope you would agree is a consumer centric user experience.
Very web-based look and feel for something you might see in a
consumer world. The catalog superstore grouping not just
internal content but all the content in allowing search and
browse and the embedded analytics to really help drive better
supplier comparisons and allow the requester to make better
buying decisions. I hope that gave you a good, quick feeling
for self-service procurement.
The next area I wanted to cover off was Fusion sourcing.
This is the tool that we use for negotiating with suppliers.
These negotiations could be used in things like request for
quote. It could be a request for a proposal, a request for
information, and we also support auctions. Really we try to
streamline the process what had in the past been a very
manual paper-based negotiation process. We streamline it,
make it available online.
What have we done here to make it new and unique? We've got
what we call smart sourcing, really providing category
managers the information that they need to make better
negotiating decisions. What things should I put out for bid?
What are their opportunities for cost savings? Whether our
suppliers are performing or not performing and take that into
account as a procurement service organization making better
buying decisions. We're really helping them to enhance how
do they negotiate and use these tools to better manage
negotiations with their suppliers.
We've got multiple negotiations styles and templates. Both
our EBS and Peoplesoft products support templates. What
negotiation styles does is that we've got an awful lot of
functional capabilities in our sourcing platforms today.
What negotiations styles does is it lets you tailor for the
type of negotiation you're doing, what functionality you want
to make available to the user. If you've got basically a
negotiation style that's going to be a very simple cost-only
auction, you really only want to show three out of the seven
available big steps of creating a negotiation. You don't
need to have a lot of the detailed constraint-based type of
functionality or multiple attribute based comparisons.
It's a way to streamline the functionality and application.
It's been very well received by the users that have been
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overwhelmed from the usability perspective of how many things

there might be to set up. Also help streamline the creation
of negotiations with suppliers.
We've got spreadsheet integration pretty robustly throughout
the application. You'll see some of that where both
suppliers can take a negotiation basically offline and do a
spreadsheet, fill out the information and upload it directly
back in. Then buyers have the capability for when they're
doing their analysis, download all the different supplier
bids into an excel worksheet, manage with their own
calculations, etc., and then upload in a Word decision. It's
the way that most people work today so we want to make sure
that we had robust capabilities for managing and interacting
spreadsheets.
We also have what we call a negotiation planning. We've got
a negotiation calendar that shows from both your view and
also your procurement organizations view what negotiations do
you have, not just ongoing, but what's upcoming. We've got a
calendar view that really helped familiarize everybody in
that department with what's going on and really provide a
better visibility to what types of negotiations are going on.
We also have improved our line negotiation
got a very nice graphical view of supplier
being able to see what bids are coming in,
trending and be able to really monitor and
time. You'll some of that.

monitor. We've
negotiations,
where is the price
manage it in real

We've also got a guided negotiation creation, a step-by-step

guide, based upon what negotiation style you're doing, a
step-by-step guide to walk the user how to create a
negotiation.
So with that said, let's go ahead and see the sourcing
product in action. Similar to what we saw from a requester
landing page, this is from a sourcing perspective. If you're
a category manager, in your negotiation these are the types
of things you are going to be pretty interested in. You've
got a negotiation calendar that I talked about showing you
the upcoming negotiations. You got recent activity. You've
got ongoing negotiation drafts, and I'll go into each one of
these areas.
If you are going to start at the negotiation calendar area,
each of these are different negotiations that occurring.
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We've got a day view, week view, month view with certain end.
You can mouse over and see additional information about when
is it closing, additional things like what's the title and
the status, etc. So it gives you a good view into--and these
are color coded based upon an auction and RFQ and different
types. Very quickly for users to see the information they
need.
In the recent activity area, if you think about negotiating
with suppliers, there is an awful lot of activity that could
be happening between suppliers submitting bids, things
ending. Rather than just provide folks with different areas
to navigate to and find work to do, really this recent
activity brings it right to the user to see that this is
something that has recently occurred. Not just show them
what occurred but be able to drill in, and here's a
recommended action.
Here we have a new response that came in from a supplier.
What you typically want to do is go view that response
versus, for example, you've got an award decision that's been
saved. You want to go complete it. Here we can go into the
response history. You can see the supplier. You can drill
into the response itself to show basically what the bids that
came in, how they are ranking, and different information.
It's a way to quickly see and take action within the
application and not really necessarily have to drill around
for the work to see.
If we go back in, let's walk through the process of creating
a draft. I'm going to jump into one that I saved a little
bit earlier and edit it. I'll show you what it looks like.
Up top, you see the--I talked earlier about a guided creation
process. Based upon the style I've got and I've got a very
complex style here. I've got a RFQ. Basically it's showing
all the different areas. So I've got a cover page, an
overview, requirements lines, terms that I can add, suppliers
and then a review at the end. So it's a way for the user to
see what they've completed and what's left to do.
One thing I didn't touch on from a technology perspective
with respect to procurement is that we support tagging. If
you think about negotiation with a supplier, different
purchase orders with the supplier that are linked together,
for example. I may want to tag these if it's related to a
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project I'm working on or a specific asset build out or what

not. I can tag negotiations, purchase orders, requisitions
and share those tags as well. Here, I want to tag this
negotiation. I can enter in. It's a test RFQ tag, and go
ahead and save it. Anytime I search for a test RFQ or what
not, this is now going to show up as a related document to
that tagged item.
This is our cover page. It's rich text format. You can add
additional variables in here. If you saved it as a template
and you have dates and parties, it will repopulate into here.
We can go into the overview. This is where you are going to
set up your controls so you can have a general overview, your
terms, your collaboration team. Then you can go back down
and you can say whether you are going to support waiting,
what kind of layout are you going to use, what are your price
tiering looking like, what are your rules for --are you going
to share this? What level of information are you going to
share to suppliers? It's all of your controls.
In the requirements area, this is where you can add things
like minority women owned business entity classifications.
You want to make sure that you're giving a preferred waiting
to that. You can set up multiple visa in the application,
and all of these you can drill into this. For example,
you've got a description, whether a response is required.
You've got multiple types and here I've got a simple yes/no
classification.
We can go into the line level detail. You can add multiple
lines. Each one of those lines can have a different
attribute as well. This is going to set up things like if it
was going to be quantity. Here I've just got a fixed price
services line for installation services, what I think the
estimated amount and the current price is, and that's what we
use for calculating savings. You can set up all your
different lines and suppliers are going to respond to. You
can then invite suppliers. In our supplier edition here, I
can search and add, do a selection for basically using any of
these criteria and you can actually look for additional
criteria as well.
You can search for these suppliers, go ahead and add them,
and it adds them to similar to what you saw on the
requisition self service, regional area off to the right
where you can add additional suppliers from your search
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results list, and then once you're done, go ahead and

continue, and it adds them onto the invited list.
Once you've done that, you can review. If you are familiar
with how Adobe lays out their document. This is a document
layout where you've got the different areas or what we call
the table of contents and you can drill around. If you drill
into requirements, you can see that area. It's just a quick
way to preview. You can also view your PDF or in this case,
you can publish it. When you publish that out to a supplier,
the supplier has the ability to--they'll get an e-mail. They
can click the link. They can go directly in and into their
responses online or as I mentioned before, we have
spreadsheet integration. A supplier can download a
spreadsheet. We've got this color coordinated where you've
got required fields versus optional fields. Color coded in
the application. You can only change the fields that make
sense. It things are a list of value, those lists of values
are provided directly within the spread sheet.
It really gives a nice offline way of interacting so that
you're not forcing supplier users to use an interactive
system approach. Suppliers can fill this out offline, submit
it back in and then as a buyer or a category manager, I can
go ahead and monitor the responses coming back in. If I've
got a supplier response that has been uploaded, I can view
that response. I can go into the details. I can take action
on it. We've got additional reports. You can see responses
by suppliers, savings by supplier, those types of things all
within the system.
That kind of gives you a monitoring view. I also wanted to
go in through and show you some of the wording scenario
capabilities. If you go into the award scenario, we've got
graphs to show how you are awarding. In this case, I had one
supplier bid so I've got one solid supplier. If I had split
suppliers to 50-50, you'd see two different splits, etc. in
your savings by supplier. Go ahead and select a line and
award that line. Here is where you can do your side by side
comparisons of different suppliers, what their pricings were,
the amounts, how they provided additional information,
attributes with respect to that line. You can basically do
an award analysis here. You can also download it into Excel
and do your own calculations.

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Once you've done your award scenarios, you go ahead and save
and close that. Basically, you've got a workbench here for
different award scenarios. It will recalculate your graph,
show your recalculated savings. When you're done, you go
ahead and complete that award and it finishes off the
process.
That was a real quick run through of some of the high level
features and functions of Sourcing. Things that we saw. The
negotiations styles and templates. The ability to turn off
and on that overview and creation area based on style is one
important feature. We've got the spreadsheet integration for
both suppliers and buyers. We saw the negotiation calendar,
providing a better visibility to negotiations. We quickly
showed the divided negotiation monitor that shows you
incoming supplier bids in real time, as well as that step-bystep guided negotiation process. We give you a quick
overview of Fusion sourcing.
The next area I wanted to cover was Fusion supplier portal.
As you can expect, this is a way for suppliers to interact
with the system to get access to--from a web browser, to get
access to negotiations, agreements, purchase orders,
shipments, receipts, invoices, and really provide self
service to a supplier. We've got web-based supplier
collaborations so suppliers can not just view things, but
electronically transact, submit changes, etc., really
providing an online way of transacting, hopefully reducing
your errors and cost of doing business with the supplier.
Similar to what you saw on the category manager or buyer work
center, we've got a supplier work center as well, that when
they log in, directs them to key actions and activities that
they need to take within the system to really allow them to
see what they need to do, do it, and get on with their
regular daily course of business. We have supplier catalog
authoring. It's the ability for suppliers, because we have
our change management infrastructure, it's a way for
suppliers to automatically author their catalog content and
make changes in a controlled fashion that you can have buyer
intervention approval after you have submitted. We also have
supplier change order management so suppliers can initiate
changes to orders that they need to change, delivery dates or
quantities, etc. It's a way for them to submit it and drive
that to buyers for review and approval.
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We also have electronic invoice for presentment and payment

for suppliers to enter both PO and non-PO invoices
electronically. It's a way of reducing the costs of
invoicing and transacting with suppliers.
That's one of the key areas for electronically integrating
with suppliers. We also have our integration with Oracle
supplier network. If you've got a supplier that is very high
volume and you need to electronically send purchase order
documents or invoices, we can route them through the Oracle
supplier network directly into Fusion as well.
Similarly, how do we have this similar type of approach on
both EBS, and we are looking at the same thing for
PeopleSoft. We'll have the ability in Fusion to leverage
this B2B communication method as well. You've got a selfservice tool as well as a high volume tool for communicating
to suppliers.
We've got a quick example of interacting with suppliers from
catalog creations so a buyer can create an agreement,
framework, and say to the supplier go ahead and update your
catalog content. What happens today is that suppliers send
in an Excel worksheet and some buyer has to upload it, review
exceptions, etc. This is a way for self service to take hold
and allow the suppliers to do their own updating and
uploading catalog information, review it, send it back in for
buyer approval. That buyer can then review the changes and
things that theyve sent back, maybe they can change it
themselves, send it back to the supplier, supplier can
acknowledge and then once both parties have agreed, then
that's available for example in self-service as a catalog
that employees can buy off of. This is quick example of the
type of collaboration we're allowing with suppliers using
supplier portal.
Next area I want to touch on in Enterprise Contract
Management. I talked about procurement contracts earlier
today. Procurement contracts is part of an enterprise
contract management framework so rather than procurement
contracts, you can leverage things like sales contracts or
just regular non-disclosure agreements, etc. They don't have
to be for contract execution. It allows you to manage the
contract negotiation approval, storage renewal, amendments,
ongoing visibility basically is improved across all the
different areas.
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We've got a common contract for repository for buy-side and

sell-side contracts in Fusion, which is pretty exciting for
our customers. It really improves contract visibility so
they can search for contracts for various parties or
suppliers. Special terms, so that if they have terms that
update that they want to make across all existing agreements,
they can quickly find out what agreements are using that
language, initiate an amendment and process for those and
really then track that they've updated that language. We've
improved the contracting processes as well as improving
contract compliance.
Once you've got these contracted standard terms and
conditions implemented, you know when people have redlined
out mandatory terms and conditions, we can manage that, track
approvals and really manage the risk of that contract. That
was a quick run-through of procurement contracts. A pretty
exciting area. Our customers are excited about being able to
manage both buy-side and sell-side contracts and the common
repositories as well.
Suspended performance analysis area. We have our procurement
and spend application in OBIA. We're leveraging that and
creating some additional metrics for Fusion really to help
improve your spend analysis, so to understand where your
spending, who you're spending it with, where are their
opportunities for savings, look at some what if analysis,
looking at how your procurement organization is performing,
your analysis operational efficiencies, cycle times, etc., as
well as supplier performance and managing what their
performance is, being able to rate and rank suppliers and
evaluating and managing your supplier risk as well, It's an
exciting area that we're leveraging in Fusion, especially for
the category manager that is responsible for buying.
Some additional technology I didn't touch on was global
search. We have a global search capability across all of
Fusion that allows you to quickly search across in the
procurement area, suppliers, items, orders, requisitions for
really anything. It's like Google for enterprise, being able
to quickly find documents without drilling into the different
areas.
We've got the procurement news for news feeds and we also
have enterprise presence and messaging as part of our
contextual actions framework, where if you are a buyer and
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you have a request from a requester, you can quickly chat

with them online if they are online. We support multi ple
technologies for that as well.
That was a quick run through of the different areas. I think
we touched on most of these from a highlight. This is just a
summary that we looked at. We believe this is going to be a
great solution for global. Because of our organizational
business models integrate for global customers in supporting
a global procurement organization as well as books that are
smaller. There is quite a bit of benefits there. We've got
the center driven procurement architecture. We've got
comprehensive business intelligence for both requesters and
buyers and category managers. We've got robust supplier
management. We've got great process automation across the
complete procure-to-pay as well as the negotiation
contracting process and a great set of best practices that
are built into the application as well.
Just to give you a quick feedback. We've had a number of
customers involved from early on in the design phase, from
gathering requirements and built out. We've had, in many
cases, weekly calls from various customers validating our
approach. We've had customers in last year to validate what
we saw. This is just a quick example of who we had. Really,
these are from the customers.
Some of the things I talked about as far as very intuitive.
These are some of the quotes that we had. Yes, it's very
intuitive. The concept of internal and external order
changes that we talked about is fantastic. Dock change
history was very much improved over that users current
system. Very easy to see. Very easy to use. You will see
that kind of theme running through here. Lastly, the
contextual information and embedded analytics really helped
drive users to making better decisions and getting the
information they need when they need it. It's pretty
exciting.
That was a quick run through of Oracle Fusion Procurement.
really appreciate you taking the time to listen.

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