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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?

Buyers Suppliers

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 Chinese Networking & Telco solutions provider

Why:

Consolidate Supplier records from multiple systems to implement corporate responsibility program

Evaluate supplier performance to complement sourcing activities

What:

24,000 Supplier records to be Assessing supplier performance: mastered in supplier hub Defining criteria for evaluation Complement existing Product Defining evaluation plan hub forming a full MDM solution Generating evaluation report Strong value proposition
with combined Product Hub and Supplier Hub

So What:

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.

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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
Siebel

Operational MDM Apps

Analytical MDM

Analytical Systems
Dashboards

Customer

SAP PeopleSoft

Analytical

Financial

Supplier

EBS

Product

DW

Site

BI &Datamarts

Planning JDE

Oracle Customer Hub

Oracle Supplier Hub

Oracle Product Hub

Oracle Site Hub

Oracle / Hyperion Data Relationship Management

Custom Apps

Financial Consolidation Budgeting

Application Integration Architecture

External Apps

Oracle Fusion Middleware

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Supplier Management Leverages Established eBusiness Suite Products

EBS Peoplesoft SAP
Custom Apps

EBS Peoplesoft

Supplier Master Data

SAP Custom Apps BI

Other

Customer Hub
TCA Relationships Hierarchies Match/Merge D&B Enrichment Address Validation

5 - 10 Years Experience
Product Hub
Advanced Search User Defined Attributes

Procurement
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 Peoplesoft SAP Custom Apps Other

EBS Peoplesoft

Trusted Master Data

SAP Custom Apps BI

Consolidates & maintains complete, accurate and

authoritative master data across the enterprise

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

Distributes master information to all operational &

analytical applications just in time

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Oracle Supplier Hub: Master

Master Trusted Supplier Data Govern

Attributes Relationships Classifications Documents Locations

Consolidate

Trusted Supplier Data

Share

Cleanse

Supplier Repository
Unstructured Data Standard Profile details
Organization
D-U-N-S Number, Legal Structure, Incorporation Year, Chief Executive Name Total Employees, Annual Revenue Business Classifications Products and Services

Unstructured Data
Word, Excel, PDF, etc.

Extended Profile details

Common
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

Address Country

Supplier Hub

Examples: US, China, India

User Defined
Examples: High Risk, Premium

Payment Controls
Method, Delivery Channel Payment Format, Settlement Priority

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

Groupings Questionnaires
Groupings

Tax Details

Questionnaires
Questionnaires (Supplier & Internal) Deliverables

Relationships (e.g. subsidiary) Hierarchies (e.g. D&B) Classifications

Oracle Supplier Management: Consolidate

Govern

Consolidate
Siebel EBS SAP GDSN Other

Import Workbench

Share

Identification & CrossReference

Trusted Supplier Data

Blended Record

Cleanse

Supplier Import Workbench

Consolidate, Cleanse, Enrich

Data Quality Management tools

Spoke

De-Dup

Enrichment

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

D&B

Internal & External Source Systems

Supplier Repository

End User Keyed

Suppliers Online

Legacy Apps

WSDL

Web Service

Cleanse & Match

Single Blended Record

Bulk Load

Batch
3rd Party Apps
Generate what if reports for pre-import analysis

Supplier Data Quality Management

Blended Supplier Profile

Source 1
Purchasing

Source 2
Payable

Blended Record
US $1.1M

Revenue

US $1.1M 20,000 21,000 HubZone Laptop Net 42

# of Employees

21,000 Small Bus., Hub Zone Desktop, Laptop Net 42

Business Classifications Small Bus. Product and Services Invoicing Terms

Desktop Net 45

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 Source System B BB253 8808 Identifier B: 8808

A Supplier Hub Master

Synchronize primary supplier definition across multiple spoke systems

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Oracle Supplier Management : Cleanse

Govern

Consolidate

Share

Trusted Supplier Data

Standardize Parse

Cleanse
Match & De-Duplicate

Validate Enrich

Broad Data Quality Tools

Maintain Clean, Accurate Enterprise Customer Data
Matching Engine
Run exhaustive searches
using customizable engine Identify duplicates and prevent future occurrences

Duplicate Resolution
Merge records and all
associated entities and transactions Extend merge routines to handle data extensions

Address Validation *
Based on OAG Standards Leverage pre-built adaptors
from leading address validation vendors

Profiling*
Deduce meaning from
unstructured patterns Tel# is null 30% 25% of FName has 1 char

Create structured records from

Standardize*

Data Quality Tools

less structured data Inc. -> Incorporated, Holmes, Santonio -> Mr. Santonio Holmes

Data Certification
Add structure to record
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 On-Boarding Surveys Workflow

Consolidate

Share

Trusted Supplier Data

Cleanse

Supplier Profile Management

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

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

Widgets, Inc. (Supplier)

Insurance Information
Worker Compensation General Liability Automobile Liability

Compliance Information
RoHS Compliant, WHEE Compliant

Quality Control Procedures

Supplier Address / Party Site Level UDA

(Supplier Party + Supplier Party Location)

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

Production Capacity WI, Shanghai, China WI, New York, US

Machinery, Average Capacity, Max. Capacity

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
Operating Unit, Inventory Organization

Vision, Atlanta, US
Operating Unit

Transaction Qualitative Evaluation (BI Summary)

Receipt Qualitative Evaluation PO Change Qualitative Evaluation Invoice Qualitative Evaluation

Vision, San Francisco, US

Operating Unit

Vision Computers (Buyer)

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Supplier Profile Management

Supplier Profile Attribute Access Control

Widgets, Inc. (Supplier)

Supplier Attributes: A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A17 A18 A19 A27 A28 A29 A30 A35 A36 A37 Values:

Supplier User

Standard Buyer

Strategic Buyer

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 Submit Questions (Resubmit) Receive Packet

Notification

Relationship Contract

Commodity Manager

Review

Add Profile Information Return/Reject Questions

Approval Process

Qualified and Approved

Sync Supplier Profile

Finance / Legal Expert

Review

Credit Evaluation Return/Reject Questions

Add Credit Evaluation

Contract Manager

Review

Risk Evaluation Return/Reject Questions

Add Risk Evaluation

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
Is Supplier flexible during negotiations? Is Supplier responsive? No Any Quality complaints? 4 Overall Supplier Satisfaction Is Supplier flexible during negotiations? Is Supplier responsive? No Any Quality complaints? 5 Overall Supplier Satisfaction Yes 2

Buyer Ben

Buyer Santonio

Yes 2

Self-Service Supplier Profile Management *

Data Hub Admin reviews &
promotes to Supplier Hub

Supplier updates
profile details

Attachments

Banking Info Supplier Locations

Contact 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

Govern

Share
Access & Search

Users

Consolidate

Siebel EBS SAP Custom Apps

Trusted Supplier Data

Publish & Subscribe Registry Transports & Connectors Reporting

BI

Cleanse

Supplier Data Publication

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

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