Using Oracle iSupplier Portal to Improve Supplier Communication

Using Oracle iSupplier Portal
to Improve Supplier
Communication
by Bill Pick, Fujitsu America
Agenda
■Supplier communication challenges
■Benefits of iSupplier Portal
■Features & functionality
■VMI/Consignment using iSupplier
■Implementation considerations
■What’s new in R12
■Q&A
Supplier Communication Challenges
iSupplier Portal Benefits
■ Enhanced on-line (closed-loop) collaboration
■Purchase Orders/Blanket Purchase Agreements
■Delivery information
■Shipping/Planning schedules (with Supplier Scheduling)
■Invoices/Payment status
■Change requests (split shipments, delivery dates, quantities, etc.)
■Advance Shipment Notices (ASN’s)
■Vendor Managed Inventory (VMI)/Consignment
■Complete PO History
■Simplified fulfillment process reduces
administrative cost
■Reduced effort to maintain supplier details
Features/Functionality
■Supplier users register and can only access
their supplier data
■“DMZ” server architecture allows internet
access to iSupplier outside of company network
■Suppliers can perform tasks in these areas:
■
Order Tasks
■
Shipment Tasks
■
Invoice and Payment Tasks
■
Product Data Tasks
■
Inventory Management Tasks
■
Forecast Schedule Inquiry
iSupplier Portal Home Page
iSupplier Portal Home Page
■
View Notifications (5 most recent ones are displayed)
■
Supplier can click on notifications to review/perform
actions in Oracle
■
Immediate on-line communication of most recent activity
regarding the supplier
■
Perform search for PO’s, Shipments, Invoices, Payments
■
“Drill down” into specific orders or shipments for more
details
■
Click on links for other commonly accessed screens
within iSupplier Portal
Change Orders
Change Orders
■ Supplier can request PO changes on-line
■Supplier Order Line Number
■Supplier attachments (i.e. C of C, Material Data
Sheets, etc.)
■Supplier Item Number
■Quantity ordered
■Promised Date of a Shipment
■Split Shipment line into 2 or more shipment lines
■Change Reason
■Action (Change or Cancel)
View PO Revision History
■ For any given PO/release, can
■Compare current revision to original PO/release
■Compare current revision to previous revision
■Show all PO/release changes
Advance Shipment Notices (ASN’s)
Advance Shipment Notices (ASN’s)
■Supplier can communicate shipment details
electronically before shipment reaches your dock
■Receiving can query by ASN Shipment numbers
and automatically capture all details in receipt
■Reduced data entry time at receiving
■Reduced receiving errors
■Improved dock-to-stock cycle time
■High-volume suppliers can also create ASN’s via
spreadsheet upload to iSupplier
Advance Shipment Notices (ASN’s)
Invoice/Payment Visibility
Invoice/Payment Visibility
■Supplier can create, submit, and view details of all
invoices submitted
■Invoices can be automatically matched to open
purchase orders, with exceptions routed
appropriately
■Payment status for all invoices can be viewed and
messaging capability provided for disputes
Vendor-Managed Inventory
■ Business practice where company delegates
key inventory management functions to one or
more of its suppliers.
■ Vendor initiates replenishment request based
on agreed upon criteria
■ Benefits:
■ better inventory turns
■ fewer stock-outs
■ reduced production down times
Vendor-Managed Inventory Process Flow
Consigned Inventory
■ Inventory is in the possession of one party (a
dealer, agent, distributor, and so on), but
remains the property of another party (such as
the manufacturer or primary contractor) by
mutual agreement.
■ Consigned Inventory from Supplier means you
receive and maintain goods still belonging to
your suppliers
■ Benefits:
■
Reduced Lead Times
■
Improved Inventory Turns
■ VMI and Consignment are independent but often
work together
VMI/Consignment High-Level Process
■
Set item attributes for VMI/consignment
■
Set Up ASL Item-Supplier attributes
■
Suppliers perform material request (optional)
■
Create Blanket PO & Release (or Std PO)
■
Receive shipment from supplier into normal subinventory
■
When needed, transfer or issue material
■
Create consumption advice (automatic)
■
Manual Invoice or Pay on Receipt (automatic)
VMI/Consignment Item Attributes
■
Replenishment Point Minimum Quantity (Vendor Managed)
This is the minimum quantity allowed before replenishment occurs.
■
Replenishment Days of Supply (Vendor Managed)
This is the minimum allowed days of supply before replenishment must occur.
■
Maximum Order Quantity (Vendor Managed)
This is the maximum quantity allowed for replenishment reorder
■
Order Quantity Maximum Days of Supply (Vendor Managed)
This is the maximum allowed days of supply for replenishment reorder.
■
Fixed Quantity (Vendor Managed)
This is a fixed quantity for reorder.
■
Release Authorization Required
Authorization is required before a sales order is created. You can set the authorization as follows:
• Customer:
You must obtain release authorization from the customer.
• Supplier: You must obtain release authorization from the supplier.
• None: Release authorization is not required.
■
Consigned
If selected, the item is consigned, meaning residing at your location, but owned by the supplier.
■
Auto Expire ASN
If selected, the advanced shipment notice for the item expires.
VMI/Consignment Item Attributes
ASL Supplier-Item Attributes
The information that you enter here enables use of the Vendor
Managed Inventory (VMI) and Consigned Inventory functionality
within Purchasing.
■ For VMI check VMI Enabled and:
■
1. Enter the UOM that the following minimum and maximum
quantities represent.
2. Enter the Minimum quantity level for this item.
3. Enter the Maximum quantity level for this item.
4. If Supply Chain Exchange (SCE) is enabled, check the Automatic
Allowed box to enable the replenishment method approval
selection below.
5. Select the replenishment Approval method of Automatic, Supplier
and Buyer, or Buyer. This field is only enabled if SCE is enabled
and VMI Automatic Allowed is checked.
■
For consigned inventory check Consigned from Supplier and:
1. Enter the number of days allowed before billing in Billing Cycle
(Days).
2. The system will display the Last Billing Date.
ASL Supplier-Item Attributes
Consignment Functionality
■
Receipts & RTV’s work the same, except no consumption
advice (billing) until used
■
Retroactive pricing works the same
■
SO issue, WIP issue, Inter-org transfer, and Misc. issue
always consume consigned materials; other types can be
set up to also consume consigned material
■
When consumed, material is valued at current blanket PO
pricing at the time
■
If you reverse a transaction, it does not become consigned
again automatically
■
Aging-based ownership transfer automatically transfers
consigned material if not used within set time frame
■
Can do manual billing or pay on use
iSupplier Visibility w/VMI & Consignment
■ View inventory on-hand, min & max
quantities for enabled items
■ Trigger replenishment requests
■ Consigned inventory aging
■ Consigned shipments & receipts
■ Consumption advice
■ Consigned returns
Implementation Considerations
■ Use of VMI functionality requires Inventory,
Purchasing, and Collaborative Planning
11.5.8 or higher (CP license is included with
iSP just for VMI-11.5.10)
■ If ASL exists with either VMI enabled or
Consigned checked, cannot update:
■
Outside Processing Item from No to Yes
■
Asset Item Type from null to non-null value
■
Transactable from Yes to No
■
Stockable from Yes to No
■ Supplier-Item Attribute VMI/Consignment
settings override item attribute
VMI/Consignment settings
New iSupplier Functionality in R12
■
Complex contract payments (i.e. progress payments)
■
Supplier change order request enhancements
■
Multi-order change requests
■
Tolerance-based auto-approval of change requests
■
Ability to route change requests to requestor
■
Change requests for services
■
Streamlined supplier on-boarding
■
Enhanced Supplier Profile Management
■
Enhanced Inbound Logistics (integration w/OTM)
■
Supplier Scorecard – integration with DBI
■
Supplier self-service catalog authoring
■
Multi-org access controls
■
Dispute resolution for GLOG invoices (12.1)
■
Third Party Payments (12.1)
Summary
■ iSupplier Portal can
■
Streamline & improve communication with Suppliers and
REDUCE errors, delays, and waste
■
Empower suppliers to be responsible for maintaining accurate
order information and obtain accurate information on their own
■
Free up Purchasing resources to work on more strategic
activities
■ Functionality such as ASN’s, VMI, and
Consignment can improve cycle time and
reduce inventory
■ R12 provides enhanced functionality and
improved ease of use to iSupplier Portal
Questions??