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Supplier Management Overview

Basier Aziz, MDM Product Strategy
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Safe Harbor Statement

The following is intended to outline our general

product direction. It is intended for information
purposes only, and may not be incorporated
into any contract. It is not a commitment to
deliver any material, code, or functionality, and
should not be relied upon in making
purchasing decision. The development,
release, and timing of any features or
functionality described for Oracles products
remains at the sole discretion of Oracle.

Supplier MDM Solution Overview

What is it
Business Drivers
Supplier Hub Solution

Consolidate
Cleanse
Govern
Share

Q&A

Introducing Oracle Supplier Hub

What Are We Offering?
Suppliers

Buyers

Supplier Lifecycle Management

Identification
Qualification and On-boarding
Maintenance and Assessments
Obsolescence

Supplier Hub
Trusted
Supplier
Data

Consolidates & maintains accurate

Supplier master information across

the enterprise

Distributes as a single point of truth

to all operational & analytical
applications

Business Cases
Large US retailer

Why:
Why:

What:
What:

So
So What:
What:

Consolidate Supplier records

from multiple systems to
implement corporate
responsibility program

Chinese Networking &

Telco solutions provider

Evaluate supplier performance to

complement sourcing activities

24,000 Supplier records to be Assessing supplier performance:

mastered in supplier hub
Defining criteria for evaluation
Complement existing Product
Defining evaluation plan
Generating evaluation report
hub forming a full MDM solution
Strong value proposition
with combined Product Hub
and Supplier Hub

Synergies with EBS Procurement

portfolio

How much does decentralized data cost you?

In 1 Hour

240 businesses will change addresses

150 business telephone numbers will change or be disconnected
112 directorship (CEO, CFO, etc.) changes will occur
20 corporations will fail
12 new businesses will open their doors
4 companies will change their name*
*Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of
the US Courts, Bureau of Labor Statistics, Gartner, A.T Kearney, GMA Invoice Accuracy Study

What can centralizing the data do?

Reduce
purchase order errors
payment errors
sourcing cycle time
new product introduction cycle time
order to cash time
receipt and return processing errors
supplier-related financial risks
supplier-related collaboration costs
non-compliance risks
supplier information lookup times
report generation costs
costs by sun-setting legacy applications
MRO spending per employee

EBS

Transportation

Ariba

Trusted
Master
Data

SAP

BI

Custom Apps

Value Proposition for a Supplier Data Solution

1. to track & optimize enterprise spend

2. to monitor and to implement standards and
regulations
3. to manage suppliers across the trade
lifecycle

Value Prop 1: Track & Optimize spend

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Value Prop 1: Track & Optimize spend

Clean, trustworthy data creates

visibility into spend
Visibility into spend creates
opportunities for reducing costs

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Value Prop 2: Monitoring and enforcing Standards

Child labor
Environmental Standards
Minority-owned Businesses
Women-owned Businesses
HUBZone
Carbon footprint
etc.

12

Value Prop 3: Streamlining Supplier-related

Processes
Stages in the relationship

Discovery
Vetting (Risk Assessment)
Trading
Re/evaluations
Obsolescence

Supplier Self-Management

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Oracle Enterprise Master Data Management

The most complete MDM offering on the market today

Data Governance Manager

Operational
Systems

Analytical
MDM

Operational MDM Apps

Analytical
Systems

Analytical

Financial

SAP

Site

DW

Product

EBS

Supplier

Dashboards

Customer

Siebel

PeopleSoft
JDE

Planning

Oracle
Customer
Hub

Oracle
Supplier
Hub

Oracle
Product
Hub

Oracle
Site
Hub

Oracle / Hyperion
Data Relationship
Management

Custom Apps

Application Integration Architecture

External
Apps

BI &Datamarts

Financial
Consolidation
Budgeting

Oracle Fusion Middleware

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Supplier Management Leverages Established eBusiness Suite Products

EBS

EBS
Peoplesoft

Peoplesoft

Supplier
Master
Data

SAP
Custom Apps

SAP
Custom Apps

Other

BI

Customer Hub
TCA
Relationships
Hierarchies

Match/Merge
D&B Enrichment
Address Validation

5 - 10 Years Experience
Product Hub

Procurement

Advanced Search
User Defined Attributes

Vendor Master
Supplier Self-Service
RFIs/Deliverables

Supplier
Management:
the Solution

Trusted
Master
Data

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Oracle Supplier Hub

Leveraging Proven MDM Infrastructure

EBS

EBS

Peoplesoft

Peoplesoft

SAP
Custom Apps

Trusted
Master
Data

Other

Consolidates & maintains complete, accurate and

authoritative master data across the enterprise

Distributes master information to all operational &

analytical applications just in time

SAP
Custom Apps
BI

Master Data Hubs enable organizations to

Govern data centrally, Risk & Improve Compliance

Optimize Business Processes
Rapidly deploy new applications
Know their Suppliers.
Synchronize with Partners and Spoke Systems
Provide solid foundation for accurate Spend Analysis

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Oracle Supplier Hub: Master

Master Trusted
Supplier Data

Trusted
Supplier
Data

Cleanse

Share

Consolidate

Govern

Attributes
Relationships
Classifications
Documents
Locations

Supplier Repository
Unstructured Data
Standard
Profile details

Word, Excel, PDF, etc.

Organization

Common

D-U-N-S Number, Legal Structure,

Incorporation Year, Chief Executive Name
Total Employees, Annual Revenue
Business Classifications
Products and Services

Applicable to All Suppliers

Supplier Type
Examples: Services, Distributor, Contract
Manufacturer

Banking Details
Account Number, IBAN, Currency, Type
Bank Name, Branch Name

Business Classification
Examples: Women Owned, Small Business,
Minority Owned

Purchasing Terms and Controls

Ship-To Location Bill-To Location Ship Via
Pay On, Freight Terms

Products & Services

Examples: Temp Labor, Professional
Services, Raw Materials

Invoicing Terms and Controls

Invoice Currency, Amount Limit

Match Options, Tolerance
Hold Options (All,Unmatched,Unvalidated)
Payment Terms, Terms & Pay Date Basis

Extended
Profile details

Unstructured Data

Address Country

Supplier Hub

Examples: US, China, India

User Defined
Examples: High Risk, Premium

Payment Controls
Method, Delivery Channel
Payment Format, Settlement Priority

Groupings

Receiving Controls
Receipt Routing, Match Approval Level
Quantity Tolerance, Days Early/Late Receipt

Tax Details

Questionnaires
Groupings

Questionnaires
Questionnaires (Supplier & Internal)
Deliverables

Relationships (e.g. subsidiary)

Hierarchies (e.g. D&B)
Classifications

Oracle Supplier Management: Consolidate

Consolidate
Siebel

SAP

Import
Workbench
Identification
& CrossReference

Trusted
Supplier
Data

GDSN
Other

Blended
Record

Cleanse

Share

EBS

Govern

Supplier Import Workbench

Consolidate, Cleanse, Enrich

Data Quality Management tools

Spoke

Enrichment

De-Dup

Spoke

Spoke

Supplier Master

Thomson
Experian

Multiple heterogeneous legacy systems containing

highly inconsistent sets of supplier data
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Data Import
Aggregate Product Data from Multiple Sources into Repository

XML

End User Keyed

Suppliers

Legacy Apps

Online

WSDL

Web Service

Cleanse &
Match

Bulk Load

Batch
3 Party
Apps
rd

Generate what if reports for

pre-import analysis

Supplier Repository

Internal & External Source Systems

D&B

Single
Blended
Record

Supplier Data Quality Management

Blended Supplier Profile
Source 1

Source 2

Purchasing

Payable

Revenue

US $1.1M

# of
Employees

20,000

Blended
Record
US $1.1M

21,000

21,000

Business
Classifications Small Bus.

HubZone

Small Bus.,
Hub Zone

Product and
Services

Desktop

Laptop

Desktop,
Laptop

Invoicing
Terms

Net 45

Net 42

Net 42

Create data blending rules and combine all data sources

Display single source of truth blended record to end users

Supplier Import Management

Source System Management

Data Hub provides Source System Management

(SSM)
Registration & cross-reference map tracking for connected
source (spoke) systems
Data Hub
3177
Registry ID
Identifier A: BB253

Source
System A

BB253

Source
System B

8808

Supplier Hub
Master

Identifier B: 8808

Synchronize primary supplier definition across multiple spoke systems

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Oracle Supplier Management : Cleanse

Share

Consolidate

Govern

Trusted
Supplier
Data

Standardize
Parse

Cleanse
Match &
De-Duplicate

Validate
Enrich

Broad Data Quality Tools

Maintain Clean, Accurate Enterprise Customer Data
Matching Engine

Address Validation *

Duplicate Resolution

Run exhaustive searches

Merge records and all

using customizable engine

Identify duplicates and
prevent future occurrences

Based on OAG Standards

Leverage pre-built adaptors

associated entities and

transactions
Extend merge routines to
handle data extensions

from leading address

validation vendors

Standardize*

Profiling*

Create structured records from

Deduce meaning from

unstructured patterns
Tel# is null 30%
25% of FName has 1 char

Data Quality Tools

Data Certification
Add structure to record

less structured data

Inc. -> Incorporated,
Holmes, Santonio -> Mr.
Santonio Holmes

creation & update process

Promote user confidence
in data

Party Purge
Remove unwanted
records to reduce
data volume

*Additional Option

Supplier Data Enrichment

Enrich

Out-of-the-Box D&B Integration

Enhance existing Supplier party records with pre-built
integration
Search D&B for a supplier whose information the user
would like to import
D&B Information includes
Credit & Risk info
Relationship & Hierarchy info
Summary information
Supplier Evaluation scores
Supplier Risk Analysis
Import data in real-time or batch mode
Out-of-the-Box Trillium Integration
Address Matching and Cleansing
Validation code returned that indicates match confidence
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Oracle Supplier Management : Govern

Govern

Supplier Self-Service

Workflow

On-Boarding

Trusted
Supplier
Data

Cleanse

Share

Consolidate

Surveys

Supplier Profile Management

Supplier User Defined Profile Attributes
Supplier Organization Level
UDA
(Supplier Party)

Business References
Reference Name, Contact,
Bus. Volume, Yrs of Bus

Insurance Information

Widgets, Inc.
(Supplier)

Worker Compensation
General Liability
Automobile Liability

Compliance Information
RoHS Compliant, WHEE Compliant

Quality Control Procedures

Follows Documented Quality Control
Process
Quality Instructions Easily Accessible
Process Adherence Audits

Supplier Address / Party Site

Level UDA
(Supplier Party + Supplier Party Location)

WI, Shanghai, China

WI, New York, US

Supplier Site Level

UDA
(Supplier Party + Supplier Party
Location + Buyer Operating
Unit)

Logistics Information
Standard Delivery Time Guarantee
Transport Insurance Type
Freight Forward Detail

Vision, Dallas, US

Vision, Atlanta, US

Operating Unit, Inventory Organization

Vision, San Francisco, US

Operating Unit

Production Capacity
Machinery, Average Capacity, Max.
Capacity

Vision Computers
(Buyer)

Operating Unit

Transaction Qualitative
Evaluation (BI Summary)
Receipt Qualitative Evaluation
PO Change Qualitative Evaluation
Invoice Qualitative Evaluation

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Supplier Profile Management

Supplier Profile Attribute Access Control

Widgets, Inc.
(Supplier)
Supplier Attributes:

Values:

le
ofi
Pr

A1

A2

A3

A4

A5

A6

A7

rd
da es
t
an
St ribu
t
At

Supplier User

Standard Buyer

A8

A9

A10

A17

r
dP
de s
n
te
te
Ex ribu
t
t
A

leA18
ofi

A19

A27

Strategic Buyer

A28

A29

A30

A35

A36

A37

Administrator

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Supplier Management
New Supplier Qualification and Onboarding Supplier Walk-in Registration
Submit
Request
Information

Suppliers

Prospective/New
Supplier Registration
Request

Notification

Submit

Questions

Commodity
Manager

Relationship
Contract

(Resubmit)
Receive Packet

Review

Add Profile
Information

Approval
Process

Qualified and
Approved

Sync
Supplier
Profile

Return/Reject
Questions

Finance / Legal
Expert

Review

Add Credit
Evaluation

Credit
Evaluation
Return/Reject
Questions

Contract
Manager

Review

Add Risk
Evaluation

Risk
Evaluation
Return/Reject
Questions

Compliance Officer

Review

Prospect Party
Site
Evaluation

Add Prospect Party

Site Evaluation

Existing Supplier Evaluation

Supplier Qualitative Evaluation and Assessment
RFI

Evaluated Suppliers

Widgets, Inc.

Gadgets, Inc.

Evaluators

Buyer Ben

Buyer Santonio

Is Supplier flexible during negotiations?

Is Supplier responsive?
No
Any Quality complaints?
4
Overall Supplier Satisfaction

Yes
2

Is Supplier flexible during negotiations?

Is Supplier responsive?
No
Any Quality complaints?
5
Overall Supplier Satisfaction

Yes
2

Self-Service Supplier Profile Management *

Data Hub Admin reviews &
promotes to Supplier Hub

Supplier updates

Attachments

Banking
Info

Contact
Details

Supplier
Locations

profile details
OU1
OU2
OU3

Business Classifications /
Product & Service Details

Updates applied
across multiple
operating units

* Supplier Lifecycle Management Option

Single UI Access to Supplier Information

Data
Quality

Hierarchies
D&B

Standard Profile
Data & User Defined
Classifications

User Defined
Attributes

Supplier Profile Management

Supplier Profile Advanced Search

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Oracle Supplier Management: Share

Consolidate

Govern

Share
Access &
Search

Trusted
Supplier
Data

Siebel

Publish &
Subscribe

EBS

Registry

SAP

Transports &
Connectors
Reporting

Cleanse

Users

Custom Apps
BI

Supplier Data Publication

Publish Supplier Data to Spoke Systems
Infrastructure to Publish Supplier Master data from
Hub
Business Events
Webservices/APIs

Synchronize
Spoke

Publish

Synchronize
Spoke

Synchronize

Supplier Hub Master

Spoke

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Value Proposition: THE Supplier Data Solution

1. to track & optimize enterprise spend

2. to monitor and to implement standards and
regulations
3. to manage suppliers across the trade
lifecycle

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Q&
A

39

Appendix

40

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