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R12 Procurement
 Agenda

What is new in R12 Purchasing and iProcurement

Intro to Sourcing, Procurement Contracts, iSupplier
Portal
Q&A
 iProcurement R12 enhancements

Enhanced catalog authoring

Difference summary for catalog changes
Unified catalog
Approval, revision control and archive for catalog data
Content security content zones
Advanced approval support - OAM
Position hierarchy based approvals
Parallel approvals
Support for FYI notifications
Graphical display of approval chain
Enhanced requester driven change order management
Requester directed sourcing
Multiple search result layouts updated paragraph or grid display
 Procurement R12 enhancements
Professional Buyers Work Center
Procurement for Complex Services
Multi Org Access Control (MOAC)
E Business Tax
Document Publishing Enhancements
Communicate document attachments to suppliers
OSN rapid supplier enablement
Maintain sourcing rules / ASL form agreement items
Support for contractor purchasing users
Compliance to packaging conditions
Auto approval tolerances for change orders
Model complex pricing for blanket line items
Advanced approval support for requisitions
New user interface for purchasing setups
 Enhanced Catalog Agreement Management
Description

Catalog Authoring Capability for Buyers, Suppliers and

Catalog Administrators
Online Authoring and File Upload from Buyer Work Center, iSupplier and
iProcurement Catalog Administration Responsibilities
Industry standard formats for upload mode including OAG XML, cXML, CIF
and text files, with improved error review process
Difference Summary for Catalog Changes
Display changes between the revised vision and the last approved version.
Visual indication for added, changed and delete lines
Approval, Revision Control and Archive
Buyer can review difference summary during approval
Buyers acceptance with line level disposition for all changes or only for
those that exceed price tolerance.
Purchasing Approval Hierarchy, Revision Control and Archival capabilities
are added to catalog content
Real-time catalog update
Extractor will be obsoleted.
Enhanced Catalog Agreement Management
Overview

Sourcing
PBWC Sourcing
Professional PO
Buyer

Award

iP Admin Bulkload / Buyer

Catalog Online External

Catalog
Admin author iP Supplier Sites
Approve
iSP
Supplier
Requester
Definitions:
Buyer - Purchasing user
Supplier - Supplies goods or services to the buying organization
Catalog Administrator - Performs catalog related activities within the buying organization
 Enhanced Catalog Agreement Management
Benefits

Improve Catalog Management

Reduce the buying organization overhead in catalog
management
Buyers can delegate catalog management to suppliers and
catalog administrators
Online catalog authoring for quicker catalog update
Difference Summary to highlight the changes
Version control of catalog data
Streamline catalog creation and management
Catalog perpetually up-to-date and based on real-
time data
Content Security Enhancements
Description

Control What Catalog Content To Show

Catalog Administrators can partition local catalog content into
Local Content Zones based on items Supplier, Supplier Site, Item
Category and Browsing Category information.
Support for inclusion and exclusion rules.
Ability to include Inventory items.

Once defined, Content Zones may be made accessible to users of

specific Responsibilities or Operating Units.
Content Zones may be assigned to multiple Stores.
Stores may contain multiple Content Zones.
Content Security Enhancements
Partition Content

11.5.10 Release 12

Catai
Cata Smart Forms
Catalog Content Zone
Realms

Release 12 Content Zones Replace 11.5.10 Catalogs.

All Content Zones Support Operating Unit or Responsibility
Security.
iProcurement Content Security
Whats New?

Example: Local Content Inclusion Rule

The rules: Supplier

Include items from
supplier X Supplier X
Include items from
category C Supplier Y
Correspond to the red ....
block
of available content.

Category
Category B
Category A

Category C

iProcurement Content Security
Whats New?

Example: Local Content Exclusion and Inclusion Rules

The rules: Supplier

Exclude Supplier X
Include Category A Supplier X
Include Category C Supplier Y
Results in red blocks of
available content. ....

Exclusion is useful when

Category
Category B
Category A

Category C

we need to exclude a single
Supplier (e.g., X) from many
others (e.g., A-Z).
 iProcurement Content Security
Whats New?

Lets Look at how category rules are defined:

Include specific categories

Include specific suppliers

Make content accessible to

specific user groups
 iProcurement Content Security
Whats New?

Example: Include Specific Categories (local content):

Create Category Specific

Stores (e.g., Legal Forms
and Services) by creating
one or more category
specific Content Zones

Include content for some

users (e.g., Buyers) that
should not be available to
the general public (e.g.,
Novice Requesters).
 iProcurement Content Security
Whats New?

Lets Look at how supplier rules are defined:

Include specific categories

Include specific
suppliers

Make content accessible to

specific user groups
 iProcurement Content Security
Whats New?

Example: Include Specific Suppliers (local content):

Include items on GBPA,

BPA, Quotation, Requisition
Templates from specific
suppliers.

Segregate Inventory and

Externally Sourced content
into separate Stores by
creating multiple Content
Zones with different
inclusion settings.
 iProcurement Content Security
Whats New?

Once content rules have been completed, the Content Zone

may be assigned to all, or some, users:

Include specific categories

Include specific suppliers

Make content accessible

to specific user groups
iProcurement Content Security
Whats New?

Assign Content Zone to specific

Responsibilities, Operating Units,
or all Users.
 Content Security Enhancements
Benefits

Increase Security
Inclusion and Exclusion rules provide more control over
content.
Responsibility and Operating Unit assignments enable
specific user sets to access specific catalog content.

Improve Usability
Single feature-set replaces and enhances functionalities
previously provided by Realms, System Profiles, Catalogs,
and Extractor.
 Requester Driven Change Order Mgmt

Change Order Approval and Routing Based on

Tolerances
Requesters and Suppliers changes are routed to the
requesters approval hierarchy
PO changes are routed to to buyer for approval
Bypass approval for changes within tolerances
 Requester Driven Change Order Mgmt
Benefits

Enhanced Requester Driven Change Order

Management
Streamlines the Change Order Process
Tolerances to indicate when a requester initiated change should
be routed to the requester hierarchy for approval
Tolerances and options to determine the need for buyers
approval
Auto-approval for minor changes
Flexible Tolerances
Simple user interface for managing tolerances instead of using
workflow attributes
Minimum/Maximum increment by amount or percentage
Multiple attributes: document amount, unit price, line amount,
need by date, promise date
Usability Enhancements

Search & Browse within Stores

Paragraph and Grid Layouts
Grid Format allows requesters to differentiate between
similar items effectively.
Item Details and Comparison Page Layout Enhanced
Create and maintain multiple Favorites Lists.
List of Values (LOVs) capability are enhanced.
Provides users with tools to find the values they are looking
for easily and effectively
Enhancements include:
Sorting Capability
Expanded Search Criteria
 Usability Enhancements
Paragraph Search Skin

2 column layout ensures

sufficient spacing with
item image

Images may be hidden.

When they are hidden,
three columns of
descriptors appear

Price, UOM and action buttons

appear on last rows of each
item description
Usability Enhancements
Paragraph Search Skin

3 columns format
allows more
information to be
displayed
Usability Enhancements
Search Skins Grid Format

The grid format allows users to differentiate between

similar items more effectively.
Usability Enhancements

Advanced Approvals Enhancements

Parallel Approvals
Notifications are sent out to multiple people
simultaneously to speed up the approval process
Support for Viewers
FYI notification, approval is not needed
Position Hierarchy Support
Graphical Approval Path UI Display
 Advanced Approvals Enhancements
Example Approval List

Takes you to add

approver/viewer,
delete approvers

Parallel Approval

A requisition for furniture totaling $4,500 is created. The req will need to be
approved by the position hierarchy chain and the Facilities Management
Group.
Advanced Approvals Enhancements
Example Add Viewers

Option to add Viewers to the

Approval List
Advanced Approvals Enhancements
Example Add Viewers

Viewer
 Usability Enhancements
Benefits

Increase Flexibility
Users can specify their search results layout preference: Paragraph or
Grid
Users can maintain and manage multiple favorites lists
Users have more options when searching using List of Values (LOVs)

Improve Ease of Use

Updated user interface provides requesters with more intuitive and user-
friendly layout
Allows users to identify desired information quickly
 Usability Enhancements
Benefits

Speed up Approvals Process While Still Maintaining

Oversight
Requisition can be routed to multiple approvers simultaneously
Increase Flexibility for Setting up Approval Routes
Voting Regime allows enterprises the flexibility in defining approval rules
Reduce Setup Efforts
Approval rules can be defined once and be leveraged across multiple
products, requiring less maintenance work
Provide Intuitive Graphical View of Approval List
Graphical View for Approval List provides users with quick view of the
approval list and status
Oracle Purchasing Delta Summary
Professional Buyers Work Center
Enhanced Catalog Access
Document Styles
Multi-Org Access Control
Document Publishing Enhancements
Communicate Document Attachments to Suppliers
Maintain Sourcing Rules/ASLs for Agreement Items
Complex Services Procurement
Support for Contract Purchasing Users
Supplier Packaging Constraints
E-Business Tax
Model Complex Pricing for Blanket Line Items
Mass Re-pricing of Purchasing Documents
Auto-Approval Tolerances for Change Orders
Professional Buyers Work Center
Feature Description

Requisitions
View and Process Requisitions into Orders or Sourcing Events
Orders
Create and Manage Purchase Orders
Agreements
Create and Manage Blanket and Contract Purchase Agreements
Deliverables
Manage Procurement Contract Deliverables
Negotiations
Access Oracle Sourcing
Suppliers
Create and Manage Supply Base
Professional Buyers Work Center
Customization and Extensibility Options

Customers can create custom views using personalization

feature in all inquiry pages.
 Professional Buyers Work Center
Benefits
Increases Productivity

Central Place for Buyers to Perform Day-to-Day Tasks

Optimized for Shared Service Centers
Streamlined Interface Increases Efficiency
Pre-Seeded or Custom Views for quicker access to information
and prioritize tasks

Designed for Procurement Professionals, the PBWC

Combines Ease-of-Use with Power Capabilities to Track,
Manage and Control all Strategic and Tactical Activities.
Enhanced Catalog Access
Feature Description

iProcurement like Search Capabilities for Purchasing Users

Add Catalog Items to Purchase Orders and Agreements
Replace non-catalog requests with lines from the catalog
Document Styles
Feature Description
Assign Display Names
to Document Types

Enable/Disable
Features
Document Styles
Implementation Considerations
Document Styles is a new concept in Release 12. It is a configuration tool that reduces the
complexity of the application by allowing procurement managers to control the available
functionality and the display of PO documents.
A document style is mandatory on a PO document. The style setting controls the document
display on the HTML UI for document creation, update, and viewing of individual document, as
well as the allowable values during the document creation and update.
A style can only be applied at the start of document creation. It cannot be replaced with
another style or removed from a document.
Standard Style: This will be the only seeded style and will be used for upgrade of the documents created
prior to R12.

Non-standard style:
Any new styles created in R12 are considered non-standard.
Purchasing documents with these styles can only be created and
processed through the Work Center.
Multi-Org Access Control
Feature Description
OLD PROCESS

Application Application Application

Responsibility A Responsibility B Responsibility C

Operating unit X Operating unit Y Operating unit Z

NEW PROCESS

Application
Responsibility A

Operating unit X Operating unit Y Operating unit Z

Multi-Org Access Control
Implementation Considerations
New Profile Options
Entire Purchasing functionality requires the Multi Org Access
Control (MOAC) setups to be configured correctly. The following
new profile options need to be set for MOAC
MO: Security Profile - the group of operating units that
can be accessed in HTML Orders
MO: Default Operating Unit - the default OU that should
be used when creating new POs.
If customer is not leveraging MOAC, they can continue to use R11i
profile option MO: Operating Unit.
Select Human resources responsibility to create the security profile
(Security -> Global Security Profile (Function PERWSSCP-GLOBAL)
Document Printing Enhancements
Feature Description
XSL-FO Purchasing
Layout

XML Publisher
PO Output
Purchasing New in
XML Release 12.0
11.5.10

New in Purchasing
XSL-FO
Layout
Release 12.0

XML Publisher
PO Output
in Multiple Formats
Purchasing
XML
Release 12
 Communicate Document Attachments
to Suppliers
11i10 and
Attachment Type r12
Before

Notes to Supplier

Long/Short Text

Files (e.g. MS Word, Drawings)

URLs
Maintain Sourcing Rules/ASLs for
Agreement Items

New Concurrent Program Introduced

Designate agreement usage in Specific

Regions or Plants
Extend rule effectivity after renewing
Blanket Agreements
Maintain rules for all Operating Units
enabled to buy off an Agreement
Support for Contractor Purchasing
Users
Feature Description
Allow Contingent Workers to Participate in Purchasing
Activities
Raise and Approve Requisitions
Create, Maintain, and Approve Purchase Orders
Receive Goods and Services

New Profile Option

HR: Expand Role of Contingent Worker

Profile Value Description

Allow Contingent Workers to Create and Approve
Yes
Purchasing Documents
Do Not Allow Contingent Workers to Create and
No
Approve Purchasing Documents
 Compliance to Packaging Constraints

1. Min-max creates
New Process
Replenishment Request
Inventory for 116 Eaches
Min-Max
2. Apply Constraints
Order Modifier
UOM Conversion
Rounding
REQIMPORT
New Quantity = 10 3. PO placed for 10
Purchasing
New UOM=Cases of 12 cases of 12

PURCHASE ORDER 4. PO complies to

Supplier packaging
constraints

SUPPLIERS
 E-Business Tax Integration
Feature Description

Prior to E-Business Tax With E-Business Tax

Basic tax setup tax codes Comprehensive solution
and tax groups addressing complex tax
requirements
Fragmented tax solution Single point tax solution across
across E-Business Suite E-Business Suite
modules Single interface: tax setup
Multiple tax engines and 3rd party integration
Duplicate tax setup Uniform services
Fragmented data storage Single repository
Duplicate 3rd party
integration
Note: Please refer to the e Business Tax TOI for more information on this feature
Model Complex Pricing for Blanket
Line Items Blanket
Pricing Agreement
Transactions
Line Price

Pricing Engine Price Break

Custom API
Requisitions
Price List

Leverage Oracle Advanced Pricing Formula

to model Complex Pricing Scenarios
Modifiers
Orders Oracle
Advanced Pricing
Bring Agreements with Complex Pricing Requirements Online
Benefits Accurate Pricing of Transactions without the need for Manual Overrides
Decrease Supplier over billing
Save Cost by ensuring all available discounts are applied
Mass Re-pricing of Purchasing
Documents
Feature Description

Orders

Blanket Purchase
Agreement
Advanced Pricing
Revise Pricing Price Lists, Modifiers New in
Data Release 12.0
Custom Pricing API
Auto-Approval Tolerances for Change
Orders

Eliminates need
for Workflow
Customizations

Set tolerances by
document type

New tolerance
attributes introduced
Advanced Approvals Support for
Requisitions
Description
Parallel Approvals
Notifications are sent out to multiple people simultaneously
to speed up the approval process
Position Hierarchy Support
Advanced Approvals Support for
Requisitions
Parallel Approvals
In 11.5.10, approvers for a given requisition are
notified sequentially
To satisfy regulatory requirements (e.g. Sarbanes-
Oxley Act), organizations may need to involve more
approvers
With parallel approvals, several approvers can be
simultaneously notified for a given requisition, thus
speeding up the requisition approval process
Parallel approvals can be setup within an approval
group or for individuals
Advanced Approvals Support for
Requisitions
Voting Method
A Voting Method is a way of sequencing the
approvers within an approval group/chain of authority
Types of voting methods
Consensus
All approvers must respond. Approvers will receive
notifications in parallel
First Responder Wins
Approvers will receive notifications in parallel, but only the
action of the first approver to respond will be recorded
Advanced Approvals Support for
Requisitions
Position Hierarchy Support
In addition to the Employee/Supervisor Hierarchy
support, the integration with Oracle Approval
Management (AME) also supports Position Hierarchy
Approval routing structures using positions and
position hierarchies remain stable, even if individual
employees leave their organization, or transfer within
it
Advanced Approvals Support
Example

Business Rules:
If requisition < $5,000, then requires approvals up to first
two positions up based on position hierarchy
If the items category is [IT.EQUIPMENT] then require
approval from IT Approval Group
IT Approval Group is in parallel to position hierarchy
approval chain
 Advanced Approvals Support
Example Approval List

Approval Group returned in

Approval List since Item Category
is [IT.EQUIPMENT]

Since req total is between 0 and 5000, the first 2

positions up (based on the Position Hierarchy
Rule) is generated

A requisition for computers totaling $4,500 is created. The req will need to
be approved by the position hierarchy chain and the IT Approval Group.
 Advanced Approvals Support
Example Approval List

Takes you to add

approver/viewer,
delete approvers

Parallel Approval

A requisition for computers totaling $4,500 is created. The req will need to
be approved by the position hierarchy chain and the IT Approval Group.
Advanced Approvals Support
Example Add Viewers

Option to add Viewers to the

Approval List
Advanced Approvals Support
Example Add Viewers

Viewer Icon
 Advanced Approvals Support
Example View Req Status

The Approval Graphical View shows the following:

Tom Gallant has approved the requisition
The requisition is currently pending approvals from the IT Approval
Group and Maria Menudo
 Sourcing At-a-Glance
Buying
Professional

Identify Suppliers Define Strategies Conduct On- Analyze & Approve &
& Opportunities & Negotiations Line Negotiations Award Issue

LOB Stakeholder Supply Base

Strategic sourcing is emerging as the leading

strategy to control costs, capture innovation,
and maximize performance.
Oracle Sourcing & Sourcing
Optimization
Source More Source for Create Immediate &
of Your Spend Lowest Total Cost Long-Term Savings

Identify Suppliers Define Strategies Conduct On- Analyze & Approve &
& Opportunities & Negotiations Line Negotiations Award Issue

Operations Contract Mgmt Purchasing Finance

Increase the Effectiveness & Efficiency of Strategic Sourcing

 Efficient Online Negotiations
Slash Cycle Time by Eliminating Manual Processes

View responses and monitor

bidding activity in real-time
Drill into individual
sourcing events View new incoming
supplier messages
and incomplete
tasks
Facilitated Online Bid Comparison
Make Faster Award Decisions

Use Bid Data to Reduce

Manual Effort
- Knock-out criteria
enforcement
- Automatic bid scoring
- Side-by-side comparison
Analyze Online for
Faster, Better Awards
- Enable selection of
suppliers, lots, or specific
lines through flexible
awards
- Enforce policy compliance
(e.g., multi-source rqmts,
MBWE suppliers)
Use Award Summary &
Recommendation
- View award details
 Automatic Scoring of Requirements
Quickly Identify the Best Qualified Suppliers

Respon
Requirement Weigh Value Quote
se
s t (Score) 990
Score
Are you ISO Yes (100)
25% No 0
certified? No (0)
> 14 (100)
Number of 10-14 (75)
years in 35% 15 35
business 5-10 (50)
< 5 (0)
Number of > 19 (100)
shipping 40% 11-19 (50) 35 40
locations 1-10 (25)
Automatically eliminate suppliers that score below minimum
Total Score Calculated by Oracle Sourcing
requirements 75
Automatically exclude non-compliant suppliers from shortlists
Centralized Terms Library
Ensure Consistent Contract Standards

Capture standard contract clauses, variables,

templates and deliverables
Clearly define enforceable and automated
Central standard policy and procedure
Terms
Specify document format with flexibility
Library to accommodate regional variations
Provide comprehensive revision control via
notification-based workflow with approval rules

Support Compliance and Oversight Requirements

 Expert-Based Authoring
Produce Compliant Contracts
Contract Industry Configurable rules
Segment? drive terms selection
for complex contracts
Template
Government Commercial Clauses default
.
based on product,
. supplier, contract
.
Over $50k?
value, etc.
Author high quality
contracts with
No Yes minimal legal
supervision
Draft

Responses Drive Add Clauses

Clause Selection High Value
Insurance
Contract
Automated MS Word Synchronization
Quickly and Accurately Integrate Offline Redline Edits into Contracts

Streamline internal
collaboration and supplier
Contract
negotiation
Administrator by allowing key
stakeholders to be involved
Synchronize
in the contract review
Download process

Improve contracting
efficiency while
reducing effort

Legal Supplier
Minimize errors and risk
Review Acceptance from manual updates
Legal Supplier
 Automatic Document Generation
Eliminate Manual Re-Keying

Automatically
substitute
negotiated terms
in printed
document
Easily tailor to
each business
units standard
format logos,
headers,
layout, etc.
Variable Substitution
Generate
standard .pdf
business
document
Clause Usage Analysis
Search Contracts To Analyze Clause Usage & Modification

Quickly determine
number of incidents

Identify and view

contracts with non-
standard clauses

Improved legal discovery on contracts across multiple organizations

Better insight into effectiveness of current standard language usage
Enhanced visibility into contract standards requiring revision
 Contract Deliverable Tracking
Monitor Supplier Performance

Generate monthly milestone progress reports

Example Provide a prototype within 3 months of contract signing
Deliverables Perform site visit and inspection
Provide proof of compliance to industry standards

Define Send Manage Escalate When

Deliverable Notification Deliverable Necessary

Based on Notify Track progress Define escalation

contract individuals or Indicate failure criteria
Ts & Cs groups or completion Escalate to
One-time and Notify trading Attach supporting supervisor
recurring partners documents
Internal or View status
external change history
 Manage Contract Deliverables
Track Contractual Responsibilities and Key Administrative Tasks

Track internal commitments Clearly defined Deliverable status

& contractual obligations ownership at a glance

Alert Any Compliance Risk and Highlight Non-Compliance

Review Compliance Status Before Authorizing Payments
Track Approval History
 Prospective Supplier Registration
Reduce Overhead with Self-Service Registration

Supplier Requests Supplier Registration Review & Approval

Use corporate website Configure qualification Use request details to

to allow interested details captured customize approval flow
during registration
prospective suppliers Enable approvers to
to register Define req. elements update details
of supplier profile
Notify suppliers via
Include customized email once registration
questionnaires* as request has been
part of registration approved / rejected

* Requires iSurvey
 Supplier Management User-Interface
Streamlined Supplier Profile Management

To Do List for requests

Create supplier

Search or drill down to supplier details