1
<Insert Picture Here>
Supplier Management Overview
Basier Aziz, MDM Product Strategy
2
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 Oracle’s 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
4
Introducing Oracle Supplier Hub
What Are We Offering?
Suppliers
Buyers
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
Why:
What:
So What:
Consolidate Supplier records
from multiple systems to
implement corporate
responsibility program
Chinese Networking &
Telco solutions provider
Evaluate supplier performance to
complement sourcing activities
 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
 Synergies with EBS Procurement
portfolio
6
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
8
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
9
Value Prop 1: Track & Optimize spend
?
?
?
?
10
Value Prop 1: Track & Optimize spend
• Clean, trustworthy data creates
visibility into spend
• Visibility into spend creates
opportunities for reducing costs
11
Value Prop 2: Monitoring and enforcing Standards
•
•
•
•
•
•
•
Child labor
Environmental Standards
Minority-owned Businesses
Women-owned Businesses
HUBZone
Carbon footprint
etc.
12
Value Prop 3: Streamlining Supplier-related
Processes
• Stages in the relationship
–
–
–
–
–
Discovery
Vetting (Risk Assessment)
Trading
Re/evaluations
Obsolescence
• Supplier Self-Management
13
Oracle Enterprise Master Data Management
The most complete MDM offering on the market today
Data Governance Manager
Operational
Systems
Analytical
MDM
Operational MDM Apps
Analytical
Systems
Analytical
Financial
SAP
Site
DW
Product
EBS
Supplier
Dashboards
Customer
Siebel
BI &Datamarts
PeopleSoft
Planning
JDE
Oracle
Customer
Hub
Oracle
Supplier
Hub
Oracle
Product
Hub
Oracle
Site
Hub
Oracle / Hyperion
Data Relationship
Management
Custom Apps
Application Integration Architecture
External
Apps
Financial
Consolidation
Budgeting
Oracle Fusion Middleware
14
Supplier Management Leverages Established eBusiness Suite Products
EBS
EBS
Peoplesoft
Peoplesoft
Supplier
Master
Data
SAP
Custom Apps
SAP
Custom Apps
BI
Other
Customer Hub
TCA
Relationships
Hierarchies
Match/Merge
D&B Enrichment
Address Validation
5 - 10 Years Experience
Product Hub
Procurement
Advanced Search
User Defined Attributes
Vendor Master
Supplier Self-Service
RFIs/Deliverables
Supplier
Management:
the Solution
Trusted
Master
Data
16
Oracle Supplier Hub
Leveraging Proven MDM Infrastructure
EBS
EBS
Peoplesoft
Peoplesoft
SAP
Custom Apps
Trusted
Master
Data
Other
• Consolidates & maintains complete, accurate and
authoritative master data across the enterprise
• Distributes master information to all operational &
analytical applications just in time
SAP
Custom Apps
BI
• 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
17
Oracle Supplier Hub: Master
Master Trusted
Supplier Data
Trusted
Supplier
Data
Cleanse
Share
Consolidate
Govern
Attributes
Relationships
Classifications
Documents
Locations
Supplier Repository
Unstructured Data
Standard
Profile details
• Word, Excel, PDF, etc.
Organization
•
•
•
•
•
Common
D-U-N-S Number, Legal Structure,
Incorporation Year, Chief Executive Name
Total Employees, Annual Revenue
Business Classifications
Products and Services…
• 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
…
Extended
Profile details
Unstructured Data
Address Country
Supplier Hub
• Examples: US, China, India
• …
User Defined
• Examples: High Risk, Premium
• …
Payment Controls
• Method, Delivery Channel
• Payment Format, Settlement Priority
• …
Groupings
Receiving Controls
• Receipt Routing, Match Approval Level
• Quantity Tolerance, Days Early/Late Receipt
• …
Tax Details
• …
Questionnaires
Groupings
Questionnaires
• Questionnaires (Supplier & Internal)
• Deliverables
• Relationships (e.g. subsidiary)
• Hierarchies (e.g. D&B)
• Classifications
Oracle Supplier Management: Consolidate
Govern
Consolidate
Siebel
SAP
Identification
& CrossReference
Trusted
Supplier
Data
GDSN
Other
Blended
Record
Cleanse
Share
EBS
Import
Workbench
Supplier Import Workbench
Consolidate, Cleanse, Enrich
Data Quality Management tools
Spoke
Enrichment
De-Dup
Spoke
Spoke
Supplier Master
Thomson
Experian
Multiple heterogeneous legacy systems containing
highly inconsistent sets of supplier data
21
Data Import
Aggregate Product Data from Multiple Sources into Repository
XML
End User Keyed
Suppliers
Online
Legacy Apps
WSDL
Web Service
Cleanse &
Match
Bulk Load
Batch
3rd
Party
Apps
Generate “what if” reports for
pre-import analysis
Supplier Repository
Internal & External Source Systems
D&B
Single
Blended
Record
Supplier Data Quality Management
Blended Supplier Profile
Source 1
Source 2
Purchasing
Payable
Revenue
US $1.1M
# of
Employees
20,000
Blended
Record
US $1.1M
21,000
21,000
Business
Classifications Small Bus.
HubZone
Small Bus.,
Hub Zone
Product and
Services
Desktop
Laptop
Desktop,
Laptop
Invoicing
Terms
Net 45
Net 42
Net 42
• 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
BB253
Source
System B
8808
A
Identifier B: 8808
B
Supplier Hub
Master
– Synchronize primary supplier definition across multiple spoke
systems
24
Oracle Supplier Management : Cleanse
Share
Consolidate
Govern
Trusted
Supplier
Data
Standardize
Parse
Cleanse
Match &
De-Duplicate
Validate
Enrich
Broad Data Quality Tools
Maintain Clean, Accurate Enterprise Customer Data
Matching Engine
Address Validation *
Duplicate Resolution
• Run exhaustive searches
• Merge records and all
using customizable engine
• Identify duplicates and
prevent future occurrences
•
• Based on OAG Standards
• Leverage pre-built adaptors
associated entities and
transactions
Extend merge routines to
handle data extensions
from leading address
validation vendors
Standardize*
Profiling*
• Create structured records from
• Deduce meaning from
unstructured patterns
•Tel# is null 30%
•25% of FName has 1 char
Data Quality Tools
Data Certification
• Add structure to record
•
less structured data
• “Inc.” -> “Incorporated”,
• “Holmes, Santonio” -> “Mr.
Santonio Holmes
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
27
Oracle Supplier Management : Govern
Govern
Supplier Self-Service
Workflow
On-Boarding
Trusted
Supplier
Data
Cleanse
Share
Consolidate
Surveys
Supplier Profile Management
Supplier User Defined Profile Attributes
Supplier Organization Level
UDA
(Supplier Party)
Business References
Reference Name, Contact,
Bus. Volume, Yrs of Bus
Insurance Information
Widgets, Inc.
(Supplier)
Worker Compensation
General Liability
Automobile Liability
Compliance Information
RoHS Compliant, WHEE Compliant
Quality Control Procedures
Follows Documented Quality Control
Process
Quality Instructions Easily Accessible
Process Adherence Audits
Supplier Address / Party Site
Level UDA
(Supplier Party + Supplier Party Location)
Production Capacity
WI, Shanghai, China
WI, New York, US
Supplier Site Level
UDA
(Supplier Party + Supplier Party
Location + Buyer Operating
Unit)
Vision, San Francisco, US
Operating Unit
Machinery, Average Capacity, Max.
Capacity
Logistics Information
Standard Delivery Time Guarantee
Transport Insurance Type
Freight Forward Detail
Vision, Dallas, US
Vision, Atlanta, US
Operating Unit, Inventory Organization
Operating Unit
Vision Computers
(Buyer)
Transaction Qualitative
Evaluation (BI Summary)
Receipt Qualitative Evaluation
PO Change Qualitative Evaluation
Invoice Qualitative Evaluation
29
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
30
Supplier Management
New Supplier Qualification and Onboarding – Supplier Walk-in Registration
Submit
Request
Information
Prospective/New
Supplier Registration
Request
Suppliers
Notification
Relationship
Contract
Submit
Questions
Commodity
Manager
(Resubmit)
Receive Packet
Review
Add Profile
Information
Approval
Process
Qualified and
Approved
Sync
Supplier
Profile
Return/Reject
Questions
Finance / Legal
Expert
Review
Add Credit
Evaluation
Credit
Evaluation
Return/Reject
Questions
Contract
Manager
Review
Add Risk
Evaluation
Risk
Evaluation
Return/Reject
Questions
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
Buyer Ben
Buyer Santonio
Is Supplier flexible during negotiations?
Is Supplier responsive?
No
Any Quality complaints?
4
Overall Supplier Satisfaction
Yes
2
Is Supplier flexible during negotiations?
Is Supplier responsive?
No
Any Quality complaints?
5
Overall Supplier Satisfaction
Yes
2
Self-Service Supplier Profile Management *
 Data Hub Admin reviews &
promotes to Supplier Hub
 Supplier updates
+
Attachments
Banking
Info
Contact
Details
Supplier
Locations
profile 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
:
35
Oracle Supplier Management: Share
Consolidate
Govern
Share
Access &
Search
Trusted
Supplier
Data
Siebel
Publish &
Subscribe
EBS
Registry
SAP
Transports &
Connectors
Reporting
Cleanse
Users
Custom Apps
BI
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
37
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
38
39
Appendix
40
41