Oracle Fusion Procurement
Oracle Fusion Procurement
Oracle Fusion Procurement
Contents
1. Background
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2.
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2.1
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2.2
..................................................................................................................................... 4
2.3
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2.4
..................................................................................................................................... 5
2.5
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2.6
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2.7
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3.
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3.1
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3.2
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3.3
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3.4
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4. Conclusion
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5.
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1. Background
Over the last decade Oracle Corporation has made a significant investment in their Procurement products. The products have benefitted in
several aspects, but it might be useful to group the key developments into the following categories:
Go upstream: Two major areas of development have been in Sourcing and Procurement Contracts. These areas enabled the organization
to improve vendor negotiation and contract management and execution
Usability: Considerable focus was given to align the application to how a buyer uses it.
Flexible Organization Structure: Oracle introduced functionality that made it easier to implement it for shared services procurement
organization. An integrated imaging product and a product to facilitate self-service requisitioning also facilitated the way how
procurement function was evolving in most organization
Analytics: From simple reporting to full-fledged analytics Oracle has made it easier for organizations to get the relevant information
from its procurement applications
Best practices from other acquired products and fill in their offerings: Oracle continues to invest in Oracle E-Business Suite, Oracle
PeopleSoft and Oracle JD Edwards
The same thought process worked behind the Oracle Fusion Procurement application as well. Best practices from the 3 product lines have
been assimilated, sourcing and contracts have been significantly strengthened and usability has seen a huge improvement. Analytics has
become core to the application rather than an add-on.
In this paper we will look at the new functionality in Oracle Fusion Procurement and explore situations where customers could derive
benefits that justify a movement from other products to Oracle Fusion Applications.
Source
Contracts
Catalogs
Requisition
Supplier
Receive
SCM Logistics
Steps
Define Requirements
Negotiation Type
Evaluation Criteria
Create Benefits
Invite Suppliers
Steps
Steps
Steps
Steps
Steps
Negotiate Terms
Manage Catalogs
Shop
Register
Order Confirm
Check Library
Create Catalogs
Analyze
Classify
Receive-Goods
Check Deliverable
Upload Catalogs
Approve
Approve
Receive-Service
Upload Terms
Access Catalogs
Generate Orders
Preference
Inspection/ Quality
Raise PO/RFx/Auction
Self Service
Handle Exception
Analyze Terms
Publish Negotiation
Manage Responses
Negotiate
Award
Publish & Share
Features/New Functionality
Entry/Upload
Entry/Upload
Upload Catalog
Shop
Offline Evaluation
External Mapping
Manage Response
Standard Approach
Effective Control
Contract Compliance
Ease of Setup
Procurement Cards
Supplier Preference
Supplier Preference
Registration Process
Adhoc Approvals
Flow Flexibility
Complete Document
Creation
Preference Capture
Legends
Steps Impacted in Fusion
New Functionality in
Fusion
INFOSYS
Template and even a Public Shopping list is defined either based on the Business Unit mapping or the Worker (Requester).
b) Catalog Creation - The way we used to define catalogs has been changed too. It has become more interactive with a rich
User Interface.
c) Product Advantage Product offers a simplified process for requestors. Also Requestors are more informed of their
decisions since line level analytics have been introduced. Hence, Self Service Procurement makes requestors more
of power users than knowledge users for the organization. Also embedded learning is part of the package, which
ultimately leads to a lower cost of training.
of negotiation documents. This is beneficial since it captures real world procedure to create a document.
b) Real Time Monitors This is something similar to you working on a say stock exchange User Interface. So whenever
there is a change you can notice it. Something similar is with the Sourcing Buyers dashboard where he/she keeps on
getting icons as the responses to a particular document are updated.
c) Negotiation Work center The Sourcing Buyer would have access to an area which would capture all negotiations
requiring attention.
d) Graphical Award Screen This is one of the striking features. We have analytics which are real time and help the
sourcing buyer get a good view of which supplier is offering what. You get a breakup of savings also so that you know
how your decision is going to affect your organization.
important information.
Legends
Oracle EBS R12.x, PeopleSoft, JD Edwards
Oracle Fusion Applications
Steps
Steps
Steps
Analytics
Create
Maintain
Evaluate
Map Organization
Map Approvals
Allocate Work
Plan Workday
Suppliers
Source
Contracts
Steps
Steps
Steps
Steps
Negotiate Terms
Acquire Catalog
Create Catalog
Define Requirements
Evaluate Criteria
Target Suppliers
RFx
Evaluate Responses
Auction
Negotiation
Award
Catalog
Requisition
Receive
Invoice
Steps
Steps
Requisition
Order Confirm
Invoice
Approve
Receive - Goods
Match
Use Catalog
RFx
Receive - Service
Approve
Maintain Catalog
Raise PO
Place Order
Inspection / Quality
Pay
Handle Exception
3.2 Benefits and Drivers for moving to Oracle Fusion Procurement in coexistence model
a) Visibility across heterogeneous procurement environment
b) Better understanding organization of organization spend allows creation of a proactive sourcing plan
c) Better tools and processes to manage negotiation process.
d) Use Contracts to create Purchase Orders (PO), Contract Purchase Agreements (CPS) or
e) Ensure Contract Compliance and realize savings by tracking Contract Deliverables to completion
f) An improved Analytics application including adapter to Oracle Fusion Procurement and a new Sourcing subject area
g) Improved productivity due to better usability. A work-center approach helps people in purchasing manage all their tasks
in one place
h) Better visibility for employees of the organization
Moreover it is a low risk, low cost option of beginning to use the latest Oracle Fusion Applications in an incremental manner.
Data Acquisition
Map Organization
Create
Subject Areas
Map Approvals
Maintain
Reports
Allocate Work
Evaluate
Dashboards
Plan Workday
Steps
Steps
Analytics
Suppliers
Contracts
Catalog
Requisition
Suppliers
Receive
Invoice
Steps
Steps
Steps
Steps
Steps
Negotiate Terms
Acquire Catalog
Requisition
Order Confirm
Invoice
Evaluate Criteria
Create Catalog
Approve
Receive - Goods
Match
Target Suppliers
Use Catalog
RFx
Receive - Service
Approve
RFx
Maintain Catalog
Raise PO
Inspection / Quality
Pay
Place Order
Handle Exception
Evaluate Responses
Auction
Negotiation
Award
New features and functionality that you get from implementing Oracle Fusion Sourcing and Oracle Fusion Procurement Contracts
are given in section 2. In this section we will focus on the design decisions and issues, which come up in the heterogeneous
environment involving Oracle Fusion Applications, Oracle Procurement and may be other procurement applications.
Supplier Master:
One obvious decision area is which one of the two supplier masters should be considered as primary. The obvious choice is to
continue to use Oracle E-Business Suite Release 12, PeopleSoft, JD Edwards as the primary Supplier Master. In E-Business Suite
Release 12 the Trading Community Architecture allows us to define relationship between Suppliers, Customers and Banks.
Hence it might make sense to leave the whole Trading Community Architecture (TCA) unchanged.
On the other hand, the supplier master should actually be owned by the Sourcing/ contracting group of Procurement. Since
Sourcing and Contracting are already on Oracle Fusion Procurement, it might make sense to use Oracle Fusion Procurement
as the Primary Supplier Master. In either case, one needs to build an interface to keep two supplier masters in sync. Use the
Supplier interfaces to insert, update and deactivate the secondary supplier master.
INFOSYS
Infosys has leveraged its knowledgebase to build a tool for keeping supplier masters of different applications in sync. This tool is being modified to include the Oracle Fusion Applications supplier master
design and will soon be available to simplify this aspect in Oracle Fusion Applications coexistence
implementations.
Link Fusion Contract Deliverables to Oracle E-Business Suite Release 12, PeopleSoft or JD Edwards
Purchasing Operations:
The Deliverables functionality is a useful tool to connect Contracts to PO (Purchase Orders), BPA (Blanket Purchase Agreement)
or CPA (Contract Purchase Agreement). The main benefits include:
Create Purchase Orders, Blanket Purchase Agreement or Contract Purchase Agreement from one or many deliverables.
Use this functionality to create above mentioned documents on a subset of deliverables identified in a Contract
Deliverables might include an item or it can be free form. Deliverables may be linked to quantity, pricing, payment terms,
limited to specific business units and contain start and end-dates. These can be propagated to any of the documents
mentioned above.
Tracking: A deliverable can be tracked to completion or delivery and will be a useful tool to ensure contract compliance
Integration:
Oracle Fusion Applications provides out-of-the-box Business Process Execution Language (BPEL) based integration to Initiate
Purchase Orders, Blanket Purchase Agreement and Contract Purchase Agreement from Oracle Fusion Procurement Contracts
to Oracle Purchasing Application
INFOSYS
Infosys can help you integrate Purchase Orders, Blanket Purchase Agreement and Contract Purchase
Agreement in other purchasing applications. Oracle Infosys can help you configure and integrate Deliverables application to Oracle E-Business Suite Release 12, PeopleSoft or JD Edwardss applications.
INFOSYS
8 | Infosys White Paper
Oracle Fusion Analytics may need to connect with other applications in your heterogeneous procurement environment. Infosys can help you connect with non-Oracle purchasing applications, extend the
schemas to capture organization specific fields and leverage our procurement competency to extend
dashboards and build new reports to meet the needs of your organization.
Organization Structure
In Oracle Fusion Applications, Oracle has adopted a new and flexible Business Unit (BU) Structure. A key aspect of that
structure in Procurement is Requisition BU, Procurement BU and Sold-To BU. We recommend a proper thought process to
defining this BU structure.
However the benefits of such structure are limited in Coexistence model because the operational procurement processes would
still be in E-Business Suite R12.
Steps in moving to Coexistence Application
Sourcing
Implement Fusion Application
modules in coexistence model
Contracts
Analytics
Integrating with BPEL
SOA/AIA
ADF / Webcenter
Content Management
OBIEE
Identity Management
EBS R12.1
Peoplesoft 9.1
JDE E1 9.0
Integration touchpoints
Master information
Integration technology
JDE JD Edwards, EBS E-Business Suite, SOA Service Oriented Architecture, AIA Application Integration Architecture, ADF Application
Development Framework, OBIEE Oracle Business Intelligence Suite Enterprise Edition, BPEL Business Process Execution Language
Oracle Fusion Procurement will coexist with any version of Oracle E-Business Suite, PeopleSoft and JD Edwards requisition
and procurement modules. However upgrading to the latest release of the application has benefits in its own right due to the
additional functionality in the newer releases
INFOSYS
Infosys can help you integrate Purchase Orders, Blanket Purchase Agreement and Contract Purchase
Agreement in other purchasing applications. Oracle Infosys can help you configure and integrate Deliverables application to Oracle E-Business Suite Release 12, PeopleSoft or JD Edwardss applications.
INFOSYS
Based on this discussion your application may need an upgrade to the latest application version.
Infosys has a set of toolkits, which have been repeatedly used and fine-tuned over several upgrade
assignments. This can significantly reduce the timelines and risks associated with an upgrade. The
upgrade will also provide you with additional functionality of the latest release.
Where Oracle has not provided the interfaces, they may be built with Business Process Execution Language (BPEL) standards
based integration pack. That is why the adoption of a standards based technology stack is very important and will make future
work much simpler.
Infosys White Paper | 9
Since we are right now looking at two modules both from a different product family
and having bases of their own it becomes important that integration points are perfectly
designed and evaluated.
PeopleSoft
Purchasing
Ultimately what you would see would be an automated, more secure system in place for
AIA
your organization. Which would refer a single source as identified by you say for example
Oracle Fusion
Contracts Terms library from Oracle Fusion Procurement Contracts is being used by
Purchasing in PeopleSoft to create Purchase Orders which have Terms and Conditions
Sourcing
applicable to Suppliers. Post the Procure-to-Pay cycle the deliverables and supplier
performance is captured in a more exhaustive fashion and reported to users of PeopleSoft through Analytics in Oracle Fusion
Applications.
Infosys The implementation of Oracle Fusion Applications Coexistence follows the same steps of a
regular implementation. Here, a company with investment and experience in Oracle Fusion Applications would be able to assist you in doing the Upgrade. Infosys has invested a huge amount of effort in
assisting Oracle build and test Oracle Fusion Applications. In the process, we have built a pool of
resources experienced in same as well as a growing set of artifacts including sample configuration
documents, test scripts and high level design documents.
INFOSYS
Others
Others
Financials
Financials
Financials
iProcurement
iProcurement
iProcurement
Purchasing
Purchasing
Purchasing
R12.1
R12.2
(Newer Releases)
R12.n
(Newer Releases)
Single Fusion
Application Instance
All Procurement
All Financials
Analytics
Others
Fusion Procurement
Fusion Applications
(Add new modules)
Fusion Applications
(New Releases)
Sourcing
Sourcing
Sourcing
Contracts
Contracts
Contracts
Analytics
Analytics
Analytics
Fusion Projects
Fusion Projects
existing application to Oracle Fusion Applications within a given date. Oracle will continue to support the certified
interfaces for future releases. Also custom built interfaces built on Service Oriented Architecture (SOA) and Business
Process Execution Language (BPEL) should be relatively easy to modify. New modules are likely to be added in the
future. It makes sense to add these modules in Oracle Fusion Applications. However, there is nothing preventing
implementing additional modules on your Applications release of the application
2. On a future date, it is expected that the organization will see business value in moving all the applications to Oracle
In any case, this situation is probably several years down the road.
In the meantime, the organization will have to manage the coexisting applications and probably face several new business
challenges. In the last section we will cover some points relating to the cost of ownership of these applications.
1. Implementation considerations:
a) Oracle Fusion Middleware (FMW) is a standards based middleware with phenomenal flexibility and adaptable
plug n play support with minimal code change. Since all interactions are web-services based, integration is
easier
b)
INFOSYS
Key flows for Integration in Co-Existence are already identified and coded. Infosys will have artifacts to significantly
reduce effort and cost in building these interfaces
Coexistence model, by definition, would add Oracle Fusion Applications to the applications inventory. The cost of support is
likely to increase due to its addition. However the benefits derived will likely be far higher.
4. Conclusion
In Oracle Fusion Procurement, Oracle has delivered a compelling set of functionality by combining the best features from
Procurement modules in E-Business Suite, PeopleSoft and JD Edwards, as well as much superior usability and new ways of
doing things. Oracle Fusion Procurement makes a compelling case for new implementations.
At the same time, even customers who already have an investment in the procurement modules of Oracles E-Business Suite,
PeopleSoft and JD Edwards are likely to get significant benefits from implementing Oracle Fusion Applications. Each customer
situation is different. We believe that for many of our customers, especially those who can identify with a business situation
described in this paper, it makes sense to explore the cost versus benefits of implementing Oracle Fusion Procurement.
5
Co-existence Solutions
Kits
Oracle Fusion
Applications Red-Papers
Accelerators,
Tools &
Methodology
Solutions &
Thought
Leadership
Oracle Fusion
Applications COE
Continuous
Co-development actives
with Oracle
Competency
Building
Oracle
Partnership
Technology
Expertise
Training Oracle
consultants on Oracle
Fusion Applications
Oracle
Alliance
Oracle Fusion
Applications
Readiness
Assessment with
Infosys 4E
Methodology
Implementation
and Consulting
services with
Infosys proprietary
InTrack
Methodology
Upgrade to Oracle
Fusion Applications
with Infosys
proprietary InTune
Methodologyune
Co-existence
solutions to adopt
Oracle Fusion
Applications with
legacy / non-Oracle
and Oracle
Migration Toolkits
to adopt Oracle
Fusion Applications
with legacy /
non-Oracle and
Oracle