Best Practices in PeopleSoft Procurement SRM PUG February 2008 - PowerPoint PPT Presentation

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Best Practices in PeopleSoft Procurement SRM PUG February 2008
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Best Practices in PeopleSoft Procurement SRM PUG February 2008

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  1. Best Practices in PeopleSoft ProcurementSRM PUG February 2008 Alexa Dhillon PeopleSoft SRM Product Strategy Manager alexandra.haytcher@oracle.com

  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 decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

  3. 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

  4. 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

  5. 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

  6. Manage Suppliers & Contracts • Supplier Performance • Expirations & Renewals Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Procurement Contracts

  7. Supplier ContractProcurement Contracts vs. Supplier Contracts • 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 • 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

  8. Procurement Contracts Best Practices forPurchasing 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

  9. Procurement ContractsTips 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

  10. Procurement ContractsContract Process Options Procurement Contract Process Options: • Purchase Order • Release to Single PO Only Purchasing Contracts • Recurring Voucher • Recurring PO Voucher Recurring Vouchers Both • General

  11. Procurement ContractsPurchase 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

  12. Procurement ContractsPurchasing 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 …

  13. Procurement ContractsGenerating Releases from Contract to Purchase Order Contract Releases Requisition Contract PO Process PO Calc & PO Create Purchase Orders Planning (Planned Orders) Other External Sources

  14. Contract Requisitions with Contract PO Calc & PO Create Requisition Selection Purchase Orders Planning (Planned Orders) Other External Sources Procurement ContractsManually Referencing Contract on Requisition

  15. Contract PO Calc & PO Create Requisition Selection Req without Contract Purchase Orders PO Stage Process Planning (Planned Orders) Other external Sources Procurement ContractsPO Calc Looks for Available Contract if None Specified

  16. Procurement ContractsManually Associate Contract on Purchase Order Select Contract on PO Line, or Copy entire Contract into PO Purchase Order Purchase Order Contract Purchase Order

  17. Purchasing ContractsProcess Flow Consolidate Demand Conduct Negotiation Integrated Contracts Enforce Negotiated Terms and Operational Compliance Analyze and Award Requisition Contract / Document / SLAs Purchase Order Accrue / RelieveEncumbrance

  18. 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

  19. Procurement ContractsRecurring 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

  20. Procurement ContractsRecurring 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

  21. Supplier Contract ManagementWhat Is It? Lifecycle Management Contract Document Authoring Content Management Create and Enforce Better Supplier Contracts

  22. All policy deviations are reported to approvers alongside clause deviations in the Contract Deviations Report, guiding approvers to exceptions in the contract along with the standard values. Supplier Contracts : Monitoring & SLAsEnforce Contract Compliance • Monitor contracted Service Level Agreements with suppliers and take corrective actions • Understand current spend vs. contract ‘at-a-glance’ and accelerate or reduce spend accordingly Automatic Spend Threshold Notifications Proactive Performance Monitoring Easily Track SLAs: Track Spend & Performance: • Define On-Time Metrics • Associate to contract • Update metric based on receipts • View Results In Contracts Monitor • % of quality receipts • % Correct Receipt Qty • % On-time deliveries • % Total Ordered versus Received Procure-to-Pay for Goods & Services

  23. Supplier ContractsRequest Document

  24. Supplier ContractsContract Request Document

  25. Manage Suppliers & Contracts • Supplier Performance • Expirations & Renewals Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Procurement Cards

  26. Procurement CardsBest 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

  27. Requisition with Procurement Card as Payment Method USBank & VISA InfoSpan Statement Layout Misc. Statement Layout Procurement Card Stage Process Inbound File Publish Process Vendor Ghost Card 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 CardsProcess Flow

  28. Procurement CardsGhost Card on Vendor • Vendor Ghost Card can automatically be used as a Payment Method on Requisitions and POs

  29. Procurement CardsReconciling Statement • View Transactions of all Users for which Role has Authority

  30. Procurement Analytic Tools • Supplier Performance • Expirations & Renewals Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments eProcurement Approvals

  31. Simplified Requisition ProcessingManage Requisitions – Release 8.9 Visibility into Entire Requisition Lifecycle

  32. Expandable Requisitions Mass Approvals Simplified Requisition ProcessingApproving Requisitions Made Easier – Release 8.9

  33. Simplified Requisition ProcessingEmail Approvals – Release 8.9 Approve Without Logging into Application

  34. Manage Suppliers & Contracts • Supplier Performance • Expirations & Renewals Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Advanced Shipping Notice / Evaluated Receipt Settlement (Using eSupplier Connection)

  35. Advanced Shipping Notice / Evaluated Receipt SettlementBest 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

  36. Advanced Shipping Notice / ERS Process Flow Supplier Side (eSupplier Connection) Buyer Side PO Entry/Approval View PO Information PO Dispatch PO Acknowledged Acknowledge PO Receive by ASN Ship & Record ASN with Invoice ID Voucher Build Review Shipment History Voucher / Matching Review Payment Payment

  37. eSupplier ConnectionSupplier’s Dashboard Visibility into Transaction History and Supplier’s Performance

  38. eSupplier ConnectionAdvanced Shipping Notices • Supplier Creates ASN On-Line • Alternatively, ASN loaded through EDI

  39. eSupplier ConnectionInvoice and Payment Details Suppliers View Transaction Details On-Line Frees Buyers to Focus on Strategic Activities

  40. eSupplier ConnectionSupplier Performance Metrics • On time performance • PO/Receipt Quantity Performance • Quality Performance • Quantity Performance

  41. Procurement Analytic Tools • Supplier Performance • Expirations & Renewals Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments SRM Dashboard

  42. Supplier Relationship ManagementInsight-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

  43. SRM DashboardPagelets and Metrics in Release 8.9 Activity Monitor Displays Buyer’s Current Task List

  44. Mouse over bar indicates amount and total number of schedules for period SRM Dashboard Pagelets and Metrics in Release 9.0 98% for period 7/06, Total Schedule Lines: 12

  45. SRM DashboardSpend by Business Unit Total Spend by BU

  46. SRM DashboardSpend by Business Unit Filter and View Schedules Drill into PO

  47. Supplier Relationship ManagementSRM Dashboard – Spend by Category Category Spend Broken Down by Vendor

  48. 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

  49. 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 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 Source-to-PayBest Practices Benefits