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Supplier Management Overview
Basier Aziz, MDM Product Strategy
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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 Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
Supplier MDM Solution Overview
• What is it• Business Drivers• Supplier Hub Solution– Consolidate– Cleanse– Govern– Share
• Q&A
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SuppliersBuyers
Supplier Hub
• Consolidates & maintains accurate Supplier master information across the enterprise
• Distributes as a single point of truth to all operational & analytical applications
Supplier Lifecycle Management
• Identification• Qualification and On-boarding• Maintenance and Assessments• Obsolescence
Trusted Supplier
Data
Trusted Supplier
Data
Introducing Oracle Supplier HubWhat Are We Offering?
Business Cases
Why:Why:Why:Why:
What:What:What:What:
So What:So What:So What:So What:
Consolidate Supplier records from multiple systems to
implement corporate responsibility program
24,000 Supplier records to be mastered in supplier hub
Complement existing Product hub forming a full MDM solution
Strong value proposition with combined Product Hub
and Supplier Hub
Evaluate supplier performance to complement sourcing activities
Synergies with EBS Procurement portfolio
Assessing supplier performance:• Defining criteria for evaluation• Defining evaluation plan• Generating evaluation report
Chinese Networking & Telco solutions provider
Large US retailer
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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• …
Trusted Master Data
Trusted Master Data
EBSEBS
AribaAriba
SAPSAP
Custom AppsCustom Apps
BIBI
TransportationTransportation
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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
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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
Oracle Fusion Middleware
Analytical MDMAnalytical MDM
Operational MDM AppsOperational MDM Apps
OperationalSystems
Cus
tom
erC
usto
mer
OracleProduct
Hub
OracleProduct
Hub
Fin
anci
alF
inan
cial
Oracle / Hyperion Data Relationship
Management
Oracle / Hyperion Data Relationship
Management
OracleCustomer
Hub
OracleCustomer
Hub
EBSEBS
SiebelSiebel
SAPSAP
Custom AppsCustom Apps
External Apps
External Apps
Pro
duc
tP
rod
uct
Ana
lytic
alA
naly
tical
Application Integration Architecture
OracleSite Hub
OracleSite Hub
PeopleSoftPeopleSoft
JDEJDE
BudgetingBudgeting
AnalyticalSystems
DWDW
BI &DatamartsBI &Datamarts
PlanningPlanning
Financial Consolidation
Financial Consolidation
DashboardsDashboards
OracleSupplier
Hub
OracleSupplier
Hub
Site
Site
Sup
plie
rS
uppl
ier
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Supplier Management Leverages Established e-Business Suite Products
Customer HubCustomer Hub
Supplier Master Data
Supplier Master Data
EBSEBS
PeoplesoftPeoplesoft
SAPSAP
Custom AppsCustom Apps
OtherOther
EBSEBS
PeoplesoftPeoplesoft
SAPSAP
Custom AppsCustom Apps
BIBI
5 - 10 Years Experience
TCA
Relationships
Hierarchies
Match/Merge
D&B Enrichment
Address Validation
Product HubAdvanced Search
User Defined Attributes
ProcurementVendor Master
Supplier Self-Service
RFIs/Deliverables
Supplier Management: the Solution
Trusted Master Data
Trusted Master Data
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Trusted Master Data
Trusted Master Data
EBSEBS
PeoplesoftPeoplesoft
SAPSAP
Custom AppsCustom Apps
OtherOther
• Consolidates & maintains complete, accurate and authoritative master data across the enterprise
• Distributes master information to all operational & analytical applications just in time
• 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
EBSEBS
PeoplesoftPeoplesoft
SAPSAP
Custom AppsCustom Apps
BIBI
Oracle Supplier HubLeveraging Proven MDM Infrastructure
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Oracle Supplier Hub: Master
Govern
CleanseS
hare
Co
nso
lid
ate Trusted
SupplierData
Trusted Supplier
Data
Master TrustedSupplier Data
AttributesRelationshipsClassifications
DocumentsLocations
Supplier Repository
Organization• D-U-N-S Number, Legal Structure, • Incorporation Year, Chief Executive Name • Total Employees, Annual Revenue• Business Classifications• Products and Services…
Banking Details• Account Number, IBAN, Currency, Type• Bank Name, Branch Name• …
Purchasing Terms and Controls• Ship-To Location Bill-To Location Ship Via• Pay On, Freight Terms• …
Invoicing Terms and Controls• Invoice Currency, Amount Limit• Match Options, Tolerance• Hold Options (All,Unmatched,Unvalidated)• Payment Terms, Terms & Pay Date Basis• …
Payment Controls• Method, Delivery Channel• Payment Format, Settlement Priority• …
Receiving Controls• Receipt Routing, Match Approval Level• Quantity Tolerance, Days Early/Late Receipt• …
Tax Details• …
StandardProfile details
Supplier Hub
Common• Applicable to All Suppliers
Supplier Type• Examples: Services, Distributor, Contract
Manufacturer• …
Business Classification• Examples: Women Owned, Small Business,
Minority Owned• …
Products & Services• Examples: Temp Labor, Professional
Services, Raw Materials• …
Address Country• Examples: US, China, India• …
User Defined• Examples: High Risk, Premium• …
ExtendedProfile details
Groupings• Relationships (e.g. subsidiary)• Hierarchies (e.g. D&B)• Classifications
Groupings
Questionnaires• Questionnaires (Supplier & Internal)• Deliverables
Questionnaires
Unstructured Data• Word, Excel, PDF, etc.
Unstructured Data
Oracle Supplier Management: Consolidate
ConsolidateConsolidate
Import Workbench
Import Workbench
Identification & Cross-
Reference
Identification & Cross-
Reference
BlendedRecord
BlendedRecord
GovernGovern
CleanseCleanse
Sh
areS
hare
SiebelSiebel
EBSEBS
SAPSAP
GDSNGDSN
OtherOther
Trusted Supplier
Data
Trusted Supplier
Data
Supplier Import WorkbenchConsolidate, Cleanse, Enrich
Multiple heterogeneous legacy systems containing highly inconsistent sets of supplier data
Data Quality Management tools
Supplier MasterExperian
Thomson
De-Dup Enrichment
Spoke
Spoke
Spoke
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Data ImportAggregate Product Data from Multiple Sources into Repository
Inte
rnal
& E
xter
nal S
ourc
e S
yste
ms
D&B
Legacy Apps
3rd PartyApps
SuppliersOnline
Batch
Su
pp
lier Rep
osito
ry
Cleanse &Match
SingleBlendedRecord
XML
Bulk Load
WSDL Web Service
End User Keyed
Generate “what if” reports forpre-import analysis
US $1.1M
20,000
Small Bus.
Laptop
US $1.1M
21,000
Small Bus., Hub Zone
Desktop, Laptop
BlendedRecordBlendedRecord
Source 1PurchasingSource 1Purchasing
Source 2PayableSource 2Payable
Net 42Net 42
Desktop
Net 45
HubZone
21,000
Supplier Data Quality ManagementBlended Supplier Profile
• Create data blending rules and combine all data sources
• Display “single source of truth” blended record to end users
Revenue
# of Employees
Business Classifications
Invoicing Terms
Product and Services
• Data Hub provides Source System Management (SSM)– Registration & cross-reference map tracking for connected
source (spoke) systems
– Synchronize primary supplier definition across multiple spoke systems
Supplier Hub Master
A B
Identifier A: BB253
Identifier B: 8808
Data Hub Registry ID
3177
Source System A
BB253
Source System B
8808
Supplier Import ManagementSource System Management
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Oracle Supplier Management : Cleanse
GovernGovern
CleanseCleanse
Sh
areS
hare
Co
nso
lid
ate
Co
nso
lid
ate
ParseParse
StandardizeStandardize
EnrichEnrich
ValidateValidate
Match &De-Duplicate
Match &De-Duplicate
Trusted Supplier
Data
Trusted Supplier
Data
Data Certification Party Purge
• Add structure to record creation & update process
• Promote user confidencein data
• Remove unwantedrecords to reducedata volume
Matching Engine Duplicate Resolution Address Validation *• Merge records and all
associated entities and transactions
• Extend merge routines to handle data extensions
• Run exhaustive searches using customizable engine
• Identify duplicates and prevent future occurrences
• Based on OAG Standards• Leverage pre-built adaptors
from leading address validation vendors
Broad Data Quality ToolsMaintain Clean, Accurate Enterprise Customer Data
Profiling*
• Deduce meaning from unstructured patterns
•Tel# is null 30% •25% of FName has 1 char
Standardize*• Create structured records from
less structured data• “Inc.” -> “Incorporated”,• “Holmes, Santonio” -> “Mr.
Santonio Holmes
*Additional Option
Data Quality Tools
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
Supplier Data EnrichmentEnrich
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Oracle Supplier Management : Govern
CleanseCleanse
Sh
areS
hare
Co
nso
lid
ate
Co
nso
lid
ate
GovernGovern
On-BoardingOn-Boarding
SurveysSurveys
WorkflowWorkflow
Supplier Self-ServiceSupplier Self-Service
Trusted Supplier
Data
Trusted Supplier
Data
Supplier Profile ManagementSupplier User Defined Profile Attributes
Widgets, Inc. (Supplier)
Vision, San Francisco, USOperating Unit
Vision, Dallas, USOperating Unit, Inventory Organization
Vision, Atlanta, USOperating Unit
WI, New York, US
Supplier Organization Level UDA
(Supplier Party)
Supplier Address / Party Site Level UDA
(Supplier Party + Supplier Party Location)
Supplier Site Level UDA
(Supplier Party + Supplier Party Location + Buyer Operating
Unit)
Vision Computers (Buyer)
WI, Shanghai, China
Business ReferencesReference Name, Contact,
Bus. Volume, Yrs of Bus
Insurance InformationWorker Compensation
General LiabilityAutomobile Liability
Compliance InformationRoHS Compliant, WHEE Compliant
Logistics InformationStandard Delivery Time Guarantee
Transport Insurance TypeFreight Forward Detail
Production CapacityMachinery, Average Capacity, Max.
Capacity
Transaction Qualitative Evaluation (BI Summary)
Receipt Qualitative Evaluation PO Change Qualitative Evaluation
Invoice Qualitative Evaluation
Quality Control ProceduresFollows Documented Quality Control
ProcessQuality Instructions Easily Accessible
Process Adherence Audits
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A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A17 A18 A19 A27 A28 A29 A30 A35 A36 A37
Standard Profile
Attributes
Supplier Attributes:
Values:
Supplier Profile ManagementSupplier Profile Attribute Access Control
Strategic BuyerStandard Buyer Administrator Supplier User
Extended Profile
Attributes
Widgets, Inc. (Supplier)
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Supplier ManagementNew Supplier Qualification and Onboarding – Supplier Walk-in Registration
Suppliers
Commodity Manager
Finance / Legal Expert
Contract Manager
Compliance Officer
Prospective/New Supplier Registration
Request
Submit
Receive Packet Review
Questions
Add Profile Information
Request Information
Submit
Review
Questions
Credit Evaluation
(Resubmit)
Return/Reject
Review
Questions
Risk Evaluation
Return/Reject
ReviewProspect Party
Site Evaluation
Questions
Return/Reject
ApprovalProcess
Add CreditEvaluation
Add RiskEvaluation
Add Prospect Party Site Evaluation
Notification
Qualified and Approved
Relationship Contract
Sync Supplier Profile
Existing Supplier EvaluationSupplier Qualitative Evaluation and Assessment
Overall Supplier SatisfactionBuyer Ben
Buyer Santonio
Is Supplier flexible during negotiations?
Overall Supplier Satisfaction
Is Supplier flexible during negotiations?
Is Supplier responsive?
Is Supplier responsive?
Evaluated Suppliers
Evaluators
Any Quality complaints?
Any Quality complaints?
4
5
No
No
2
2
Yes
Yes
RFI
Widgets, Inc. Gadgets, Inc.
Data Hub Admin reviews &promotes to Supplier Hub
OU1OU1
OU3OU3
OU2OU2
Self-Service Supplier Profile Management
Supplier updatesprofile details
Supplier Locations
+
Contact Details
AttachmentsBanking Info
Business Classifications / Product & Service Details Updates applied
across multiple operating units
*
* Supplier Lifecycle Management Option
Single UI Access to Supplier Information
Data Data QualityQuality
User Defined User Defined AttributesAttributes
Standard ProfileStandard ProfileData & User Defined Data & User Defined ClassificationsClassifications
HierarchiesHierarchies
D&BD&B
Supplier Profile ManagementSupplier Profile Advanced Search
:
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Oracle Supplier Management: Share
GovernGovern
CleanseCleanse
Co
nso
lid
ate
Co
nso
lid
ate
EBSEBS
SAPSAP
Custom AppsCustom Apps
BIBI
ShareShare
Publish &SubscribePublish &Subscribe
Transports &Connectors
Transports &Connectors
RegistryRegistry
Trusted Supplier
Data
Trusted Supplier
Data
ReportingReporting
Access &Search
Access &Search
UsersUsers
SiebelSiebel
Supplier Data PublicationPublish Supplier Data to Spoke Systems
Publish
Supplier Hub Master
Synchronize
Synchronize
Synchronize
Business EventsWebservices/APIs
Spoke
Spoke
Spoke
Infrastructure to Publish ‘Supplier Master’ data from Hub
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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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AQ&
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Appendix
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