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Document 6581883
<Insert Picture Here> Best Practices in PeopleSoft Procurement SRM PUG February 2008 Alexa Dhillon PeopleSoft SRM Product Strategy Manager [email protected] 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Leveraging Best Practices Across Procurement • Benefits of Integration to Your Organization: • • • • • • Reduce Spend on Goods and Services Greatly reduced processing costs Less Time on Non-Value Add Activities Stronger internal controls Better visibility into the entire process Better communication across parties to optimize decisions and strategies Procurement Best Practices Getting a Return on Your Investment • Compliance • Enforce Negotiated Terms • Legal and Organizational • Drive Contract Compliance • Streamline Processing • Increase process effectiveness • Extend Procurement Automation to Suppliers • Free Buyers and Payables Clerks to Focus on more Strategic Activities • Greater Business Insight / Analytics • Gain deeper insight into spending • Enhanced, Configurable Reporting to Meet User Needs Procurement Best Practices Getting a Return on Your Investment • Compliance • Procurement and Supplier Contracts • Streamline Processing • Procurement Cards • eProcurement Approvals • Extend Procurement Automation to Suppliers • eSupplier Connection and Evaluated Receipt Settlement • Greater Business Insight / Analytics • SRM Dashboard Procurement Contracts Manage Suppliers & Contracts • Supplier Performance Source • Supplier Selections • Negotiations and Agreements • Expirations & Renewals Purchase • Requisitions • Approvals • Purchase Orders • Acknowledgments Settle • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Supplier Contract Procurement Contracts vs. Supplier Contracts • Procurement Contracts • Part of Core Purchasing • Focuses on execution of contract • Captured key information to support execution • Does not have true legal contract document will all terms and conditions • Available for all releases • Supplier Contracts • Separate Module • Integrates with Core Purchasing • Focuses on Document side of Contract with MS Word Integration • Has structured clause library, rules-based authoring, approval workflow, etc. • SLA and Deliverables Management for contract compliance • Supports powerful contract searching • Starting in Release 8.9 Procurement Contracts Best Practices for Purchasing Contracts • Automate sourcing and releases buyers from routine work • Enforce Contract Usage • Ensure contract pricing and take advantage of volume pricing • Use contract expiration and maximum amount notification • Generate fewer purchase orders • Track contract spend Procurement Contracts Tips for Getting Started Set Up • Contract Set Controls • User Preferences • Item / Vendor Relationship Contract • Create Contract • Generate Document (Supplier Contracts) • Approve • Generate Releases • Notifications • Review Contract Events, Analytics, SLAs Procurement Contracts Contract Process Options Procurement Contract Process Options: Purchasing Contracts Recurring Vouchers Both • Purchase Order • Release to Single PO Only • Recurring Voucher • Recurring PO Voucher • General Procurement Contracts Purchase Order vs. Single PO Contracts • Use Purchase Order Contract when • You want separate purchase orders for each of your contract releases • You want to be able to close your POs once your order is received and paid • Use Single PO Contract when • You or your supplier would like the convenience of tracking, receiving, and vouchering against one PO • You are using PeopleSoft Release 8 SP2 or higher Procurement Contracts Purchasing Contracts • Master Contract Association – Track and Inquire across multiple contracts • Open Item Reference – Eliminates need to define individual items on a contact • Corporate vs. Non-Corporate Contract – Lower maintenance by sharing contracts across multiple business units • Price Adjustments – Permits volume discounts • Automatic Association of Contract onto PO – Ensure contract compliance • Inquiries and Reports • Dashboards and Analytics – View trends, usage, and opportunities • Milestones, Notifications, Minimum and Maximum Edits … Procurement Contracts Generating Releases from Contract to Purchase Order Contract Releases Requisition Planning (Planned Orders) Other External Sources Contract PO Process PO Calc & PO Create Purchase Orders Procurement Contracts Manually Referencing Contract on Requisition Contract Requisitions with Contract Planning (Planned Orders) Other External Sources Requisition Selection PO Calc & PO Create Purchase Orders Procurement Contracts PO Calc Looks for Available Contract if None Specified Contract Req without Contract Planning (Planned Orders) Other external Sources Requisition Selection PO Calc & PO Create PO Stage Process Purchase Orders Procurement Contracts Manually Associate Contract on Purchase Order Select Contract on PO Line, or Copy entire Contract into PO Contract Purchase Order Purchase Order Purchase Order Purchasing Contracts Process Flow Consolidate Demand Requisition Accrue / Relieve Encumbrance Conduct Negotiation Integrated Contracts Enforce Negotiated Terms and Operational Compliance Purchase Order Contract / Document / SLAs Analyze and Award Procurement Contracts Recurring Voucher Best Practices • Scheduling Vouchers for Repetitive Payments • Automatic Invoice Number Generation • Retention – Ensure project completion before paying full amount • Master Contract Association, Miscellaneous Charges, Milestones … • Tracking and Reporting Procurement Contracts Recurring Voucher Releases Create Vouchers on an as-needed basis • Stage all releases up front, create vouchers as needed, or • Stage and create vouchers as needed Recurring Voucher Releases Voucher Build Vouchers Voucher Procurement Contracts Recurring PO Voucher • Encumber funds on Contract prior to Voucher Creation • Applies to Voucher Contracts, and organizations using commitment control Contract $12,000 Voucher $4,000 Voucher $4,000 Purchase Order $12,000 Voucher $4,000 Supplier Contract Management What Is It? Content Management Contract Document Authoring Lifecycle Management Create and Enforce Better Supplier Contracts Supplier Contracts : Monitoring & SLAs Enforce Contract Compliance Proactive Performance Monitoring Easily Track SLAs: • Define On-Time Metrics • Associate to contract • Update metric based on receipts • View Results In Contracts Monitor Automatic Spend Threshold Notifications Track Spend & Performance: • % of quality receipts • % Correct Receipt Qty • % On-time deliveries • % Total Ordered versus Received Procure-to-Pay for Goods & Services • Monitor contracted Service Level Agreements with suppliers and take corrective actions • Understand current spend vs. contract ‘at-aglance’ and accelerate or reduce spend accordingly Supplier Contracts Request Document Supplier Contracts Contract Request Document Procurement Cards Manage Suppliers & Contracts • Supplier Performance Source • Supplier Selections • Negotiations and Agreements • Expirations & Renewals Purchase • Requisitions • Approvals • Purchase Orders • Acknowledgments Settle • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Procurement Cards Best Practices • Reduce the cost associated with vendor set up, processing invoices/payments to vendors • Efficient management of cash flow • Increase Rebate Potential • Improve Controls (Policies and Procedures, Spend monitoring) • Automate Reconciliation • Faster Payment to Vendors • Global Acceptance Procurement Cards Process Flow Requisition with Procurement Card as Payment Method Vendor Ghost Card USBank & VISA InfoSpan Statement Layout Procurement Card Stage Process Misc. Statement Layout Inbound File Publish Process Load Statement Process PO with Procurement Card as Payment Method Statement Notification Process Dispatch PO Reconcile Transactions Streamline Business Process by Automatically Matching Incoming Bank Statement with Purchase Order Voucher Stage Process Voucher Build Process Budget Check and Post Procurement Cards Ghost Card on Vendor • Vendor Ghost Card can automatically be used as a Payment Method on Requisitions and POs Procurement Cards Reconciling Statement • View Transactions of all Users for which Role has Authority eProcurement Approvals Procurement Analytic Tools • Supplier Performance Source • Supplier Selections • Negotiations and Agreements • Expirations & Renewals Purchase • Requisitions • Approvals • Purchase Orders • Acknowledgments Settle • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Simplified Requisition Processing Manage Requisitions – Release 8.9 Visibility into Entire Requisition Lifecycle Simplified Requisition Processing Approving Requisitions Made Easier – Release 8.9 Expandable Requisitions Mass Approvals Simplified Requisition Processing Email Approvals – Release 8.9 Approve Without Logging into Application Advanced Shipping Notice / Evaluated Receipt Settlement (Using eSupplier Connection) Manage Suppliers & Contracts • Supplier Performance Source • Supplier Selections • Negotiations and Agreements • Expirations & Renewals Purchase • Requisitions • Approvals • Purchase Orders Settle • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Advanced Shipping Notice / Evaluated Receipt Settlement Best Practices • Streamline Receipt Creation Process by having your Vendors Send Advanced Shipping Notices (ASN) • Generate Vouchers without Waiting for Vendor Invoice using Evaluated Receipt Settlement (ERS) • Enables Touchless Receipt and Voucher Creation to reduce data entry time and errors • Useful for vendors with whom you have a trusting relationship Advanced Shipping Notice / ERS Process Flow Buyer Side PO Entry/Approval Supplier Side (eSupplier Connection) PO Dispatch View PO Information PO Acknowledged Acknowledge PO Receive by ASN Ship & Record ASN with Invoice ID Voucher Build Review Shipment History Voucher / Matching Payment Review Payment eSupplier Connection Supplier’s Dashboard Visibility into Transaction History and Supplier’s Performance eSupplier Connection Advanced Shipping Notices • Supplier Creates ASN On-Line • Alternatively, ASN loaded through EDI eSupplier Connection Invoice and Payment Details Suppliers View Transaction Details On-Line Frees Buyers to Focus on Strategic Activities eSupplier Connection Supplier Performance Metrics • On time performance • PO/Receipt Quantity Performance • Quality Performance • Quantity Performance SRM Dashboard Procurement Analytic Tools • Supplier Performance Source • Supplier Selections • Negotiations and Agreements • Expirations & Renewals Purchase • Requisitions • Approvals • Purchase Orders • Acknowledgments Settle • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Supplier Relationship Management Insight-Driven Business Processes Business Insight SRM Dashboard • Expanded KPIs for buyers and managers • Summary metrics at business unit level • Supplier performance analytics pagelet Collection of pagelets and metrics presenting aggregated view of source-to-settle business process for Buyers and Managers SRM Dashboard Pagelets and Metrics in Release 8.9 Activity Monitor Displays Buyer’s Current Task List SRM Dashboard Pagelets and Metrics in Release 9.0 Mouse over bar indicates amount and total number of schedules for period 98% for period 7/06, Total Schedule Lines: 12 SRM Dashboard Spend by Business Unit Total Spend by BU SRM Dashboard Spend by Business Unit Filter and View Schedules Drill into PO Supplier Relationship Management SRM Dashboard – Spend by Category Category Spend Broken Down by Vendor Procurement Best Practices Getting a Return on Your Investment • Compliance • Procurement and Supplier Contracts • Streamline Processing • Procurement Cards • eProcurement Approvals • Extend Procurement Automation to Suppliers • eSupplier Connection and Evaluated Receipt Settlement • Greater Business Insight / Analytics • SRM Dashboard Source-to-Pay Best Practices • Simplification • Eliminate paper • Reduce manual entry and errors • Standardization • Validation of master and transaction data • Automation • Matching, payment and dispute resolution • Manage and control enterprise spend • Consolidation • Shared services • Supplier collaboration • Strategic alignment of finance activities with overall corporate goals Benefits • Gain visibility and control over spending • Focus on strategic activities • Improve internal policy compliance • Better visibility into the entire process • Better communication across parties to optimize decisions and strategies • Leverage supplier base
