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Oracle Sourcing and Oracle Procurement Contracts: Actions You Can Take to Spur Performance. Chris Nelms – Ameren, Managing Supervisor Supply Chain Process & Systems Pierre Mitchell – Spend Matters, Chief Research Officer, James Anthony – Enrich, President

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Oracle Sourcing and Oracle Procurement Contracts: Actions You Can Take to Spur Performance

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oracle sourcing and oracle procurement contracts actions you can take to spur performance
Oracle Sourcing and Oracle Procurement Contracts: Actions You Can Take to Spur Performance

Chris Nelms – Ameren, Managing Supervisor

Supply Chain Process & SystemsPierre Mitchell – Spend Matters, Chief Research Officer,

James Anthony – Enrich, President

Alejandro Rodriguez – State Street Bank and Trust Company, Assistant VP Operations Spend Analytics

Ameren Corporate Overview

September 25, 2013

about ameren
About Ameren…
  • Ameren Corporation
    • Through its subsidiaries, operates as a public utility holding company in Missouri and Illinois.
    • Founded in 1881 and is headquartered in St. Louis, Missouri.
    • Ameren Missouri & Ameren Illinois Companies engage in:
      • Rate-regulated electric power generation, transmission and distribution
      • Rate-regulated natural gas transmission and distribution
    • Ameren Energy Resources (AER) engages in:
      • Non rate-regulated electric power generation
      • AER is being divested to Dynegy - close Fall 2013.
about ameren1
About Ameren…
  • Electric Customers 2.3 Million
  • Gas Customers 925,000
  • Service Area 64,000 Sq Mi
  • Generation 15,200 MW
  • Electric System Miles 81,507
  • Gas System Miles 20,350
  • Total Assets $18.1 Billion
  • Total Revenues $6.5 Billion
  • Employees ~9,400
  • Suppliers ~10,000
  • Oracle Internal Users ~1,500
about ameren oracle installed footprint
About Ameren…Oracle Installed Footprint:
  • DatabaseOBIEE
    • 10g 2007 10.1 2009
    • 11g SEP 2012 11 2011
    • HR Analytics APR 2013
    • P&SAOCT 2013
  • UPK
    • 3.5 2009
    • 11.0 2011
  • EBS Applications11.5.7 12.1.3
    • Sourcing - 2006 MAY 2009 SEP 2013
    • Procurement Contracts - 2006 MAY 2009 SEP 2013
    • iProcurement 2003 2007 MAY 2009 SEP 2013
    • Core Purchasing 2003 2007 MAY 2009 SEP 2013
    • iSupplier Portal - 2007 MAY 2009 SEP 2013
    • Services Procurement - 2007 MAY 2009 SEP 2013
    • Accounts Payable - 2007 MAY 2009 SEP 2013
    • Accounts Receivable - 2007 MAY 2009 SEP 2013
    • CCTM* - 2007 MAY 2009 SEP 2013
    • Buyer’s Work Center - - OCT 2009 SEP 2013(Complex Procurement)
    • Hyperion - - DEC 2010SEP 2013
    • iExpense - - JUL 2011SEP 2013
    • SLM - - - SEP 2013
    • *CCTM: Contractor Cost Tracking Module. Custom bolt on atop Services Procurement to handle recurring services

Pierre Mitchell

Chief Research Officer

Spend Matters & Azul Partners

Spend Matters Network: A growing network of content sites focused on Source-to-Pay and Supply Chain insight
  • Founded 2004
  • Largest commercial procurement site in the US
  • 18 passionate team members globally
  • More sites coming soon!

"The in-depth research and excellent analysis that the team are up to with Spend Matters PRO on these complex procurement subjects shows significant depth and expertise. The research is invaluable to people in the profession, like me.”

Dave Nelson (Chair Emeritus, ISM, Former CPO, Deere, Visteon, Honda, etc.)

sourcing contracts process efficiency and spend effectiveness
Sourcing & Contracts: Process Efficiency AND Spend Effectiveness

Source: ISM / Spend Matters procurement productivity study, April, 2013

about enrich
About Enrich
  • Oracle Platinum Partner
  • Leading Oracle Procurement Business Process Services (BPS) partner
  • Over 10 years experience
  • Oracle & FreeMarkets/Ariba heritage
  • Clients include:
lessons from bt
Lessons from: BT

Diversified telecoms provider reaps benefits of moving to Oracle Sourcing

  • Dedicated cloud hosted Oracle v12.1
  • Transition, trainingand support delivered by Enrich
  • Ongoing helpdesk, supplier eAuction training and event execution from Enrich
  • Better saving realization
  • Lower cost solution
  • Aligned with ‘Oracle first’ Strategy
  • Jumped to latest release
  • Ongoing support delivering recurring success.
  • Historically used Ariba
  • Failed to leverage the benefits of integration
  • Conflicted with enterprise ‘Oracle first’ strategy
  • Seeking low-cost, best-of-breed Oracle solution

“BT has quite simply saved money by moving to Enrich. The proactive support and sourcing expertise provided by Enrich has also helped us manage our eSourcing program more effectively and generate positive results.” - Tony Newton - Head of Systems & MIS, BT Procurement and Supply Chain




lessons from nbty
Lessons from: NBTY

Leading Vitamin and health provider achieves $17M savings in 12 months

  • Spend Visibility and Sourcing in the cloud – up and running in 4 weeks.
  • Integrating to on-premise Contracts, iProc and iSP.
  • Sourcing services from Enrich.
  • Reached break-even in 8 weeks.
  • Delivered $17M savings in 12 months
  • Ongoing focus expected to achieve similar ongoing savings over next 2 years.
  • New Oracle ERP implementation
  • Procurement needed to deliver savings – fast
  • Wanted to leverage native ERP integration

By using Oracle Sourcing and Spend Visibility in a cloud/SaaS model gave NBTY Procurement the head-start they needed to deliver savings, whilst protecting the longer-term integration objectives with the ERP architecture of the core business.




lessons from carillion
Lessons from: Carillion

Engineering & Construction multinational proactively manages $150M global spend, with ROI > 10:1

  • Enrich Oracle SaaS Sourcing
  • Multi-currency & location
  • Enrich Sourcing expertise, Global Helpdesk
  • Dedicated Account Team
  • eSourcing & eAuctionsadopted in all regions
  • Typical savings: 2%-25% Over 200 eAuctions per year globally (2012)
  • Unparalleled visibility into the supplier performance
  • Huge pricing pressure
  • Skeptical supply base
  • Limited skilled resource
  • Seeking global spend leverage; UK, Middle East, Canada, Caribbean.

Oracle Sourcing has enabled Carillion to manage their entire spend far more effectively than ever before. By institutionalizing eSourcing across Global Procurement, significant savings are added to the bottom line of the business every Quarter.




state street bank and trust

State Street Bank and Trust

Paul Mulroy

Vice President Procurement

oracle open world and epass

Oracle Open World and ePASS

State Street is a leading provider of services to institutional investors. Our clients are some of the world's most sophisticated and influential investors and have a broad array of complex and specialized servicing requirements. We offer three core capabilities:

Investment servicing

Investment management

Investment research and trading

We work with clients including:



insurance companies

mutual funds and collective investments

central banks and monetary authorities

non-profit organizations, endowments and foundations

health care institutions


  • Our procurement project was business driven
  • This project would not have been possible without our selling the goals and deliverables to executive management and obtaining their approval in advance
  • We knew this would be a business transformational event, and hence what we built would not be nearly as important as our change management and training plans for implementation with both our internal customers and Suppliers
  • Included team members from all stakeholder groups (i.e. Legal, Finance, Procurement, IT, etc.)
business drivers high level
Business Drivers (high level):
  • Integrated global solution
  • Consistent Policies and repeatable business processes Globally
  • Global supplier master with initial and on-going Government Watch List and Financial viability checks
  • Standardized Supplier Risk Management for centralized recording, ranking, tracking and reporting of risks
  • Ensure a central repository of all supplier contracts / commitments globally
  • Actionable Contracts
  • Institute and enforce a consistent corporate signing authority level for all corporate commitments meeting Finance set approval authorities for both the B.U. and Comptrollers
  • Formal process to verify billing accuracy of Supplier invoices to receipt process for Goods / Services
  • Actionable Supplier Spend Reporting
  • Operations Management Reporting
  • Optimize User and Supplier adoption
  • Encryption and SSO
epass solution future state
ePASS Solution – Future State



  • GHR (PeopleSoft) – Hierarchy
    • Responsibility Centers (RC)
    • General Ledger Acc Codes (GL)
    • Org Hierarchy
    • Locations


Spend Data Warehouse

  • Supplier Master
  • Supplier Hub
  • Supplier Lifecycle
  • A.P.
  • Supplier Info
  • E-Invoice



ePASS Application

  • RC, GL, Product code, Supplier, $ Amount
  • Workflow linked to GHR hierarchy
  • Send to AP for payment
  • RFx
  • Auctions
  • Proposals
  • Contract Repository, Lifecycle management
  • RC Org Hierarchy
  • Prod. Code GL
  • Catalogs
  • Who
  • What
  • Where
  • When
  • etc

Repeatable Cycle



contracts module where we are
Contracts Module- Where We Are
  • In original system implementation, we converted approximately 15,000 contracts into the repository
  • Continue to have various influx of contracts (imported and manually entered) loads due to amnesty periods with various business units
  • On average, have 115 new contracts for entry per month
  • For finalizing a contract within the system, we had to adapt the contracts module to interface with a customized workflow to ensure legal and business sign off in alignment with corporate signing authority levels
  • We also track contract compliance which presently is 89% of all POs “on contract” (catalog and non-catalog)
contracts module where we a re going
Contracts Module- Where We Are Going
  • Supplier paper agreements are processed through the system today for the U.S.
  • Working to resolve some remaining technical glitches for certain types of structured contracts templates(customer starting template)
  • Will shortly be loading our Canadian contracts into the repository and going live
sourcing module
Sourcing Module
  • Within our organization the Sourcing module is only accessible via iSupplier Portal for suppliers
  • Due to the nature of our business and the fact that the Oracle solution is behind our firewall, our Legal team requires all suppliers to sign legal agreements for use of the portal with us (akin to the paperwork one would sign with a bank when obtaining a debit card)
  • Due to the above we are now ramping up our suppliers utilizing the portal but have not yet engaged in our initial sourcing event
  • Have spent much time on defining the base required template and required questions for all sourcing events
‘Lessons learned’ and/or ‘What we would do differently if we were to do it again’ (Contracts and Sourcing Module)
  • Change Management / Training
    • Engage early in project life cycle
    • Provide adequate education within the organization
    • Continue to communicate clearly on expectations and benefits from the program
    • Train internal and external users (Suppliers)
  • Planning time for conversion of meta / business data
    • Clean up the data in legacy in advance
    • Track data conversion separately from the beginning of project
    • Plan multiple test cycles for conversion
  • Plan end state total deployment - including workflow
    • eNDA process in Sourcing or Supplier onboarding is not available
‘Lessons learned’ and/or ‘What we would do differently if we were to do it again’ (Contracts and Sourcing Module)
  • Identifying and locking down your ‘day two’ organization and staffing in advance, so that they can participate / learn from such and hit the ground running
  • Manage resource utilization - Overlapping resources as you attempt to plan / test, you will find you are seeking out the same resources (‘the usual suspects’) for multiple activities
  • Beware of Scope Creep
  • Need for the Repository Contracts Import Program to handle importing of large zip file(s). The current program provide by Oracle only handles files size roughly equal to 50 MBs. Need for future deployment and M&A opportunities to manage additional contract base
more procurement sessions at open world 2013
More Procurement Sessions at Open World 2013
  • Demo Grounds
  • Advanced Procurement – 3402
  • Supplier Performance and Risk Management – 3403
  • Procurement and Spend Analytics – 3451
  • Support: M. West Exhib Hall L1
  • Support Stars Bar: M. West, West Hall L2 Lobby