Iproc Overview

iProcurement
Streamline Employee Ordering, Enforce Purchasing Policy,

Slash Procurement Costs
Presenter’s Name
Presenter’s Title
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.
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle At-a-Glance
Globally…
#1 in Database
#1 in Supply Chain Mgmt
#1 in Customer Relationship Mgmt
#1 in Human Capital Mgmt
#1 in Industries
Founded in 1977. Headquarters in Redwood Shores,
CA with operations in 145 countries. - Retail
• 286,000 total customers • 19,500 partners - Public Sector

• 235,200 database customers • 74,000 employees - Professional Services
• 37,500 applications customers - Financial Services
• 24,000 SMB apps customers • 14,000 developers
• 53,800 middleware customers • 7,500 support staff - Communications
Agenda
• Business Challenges
• Oracle’s Leadership Position
• Solution Overview
• Customer Success
iProcurement At-a-Glance
Manage
Compliance
• Reconcile payments to purchases

Procurement
• Detect budget and policy exceptions
and Finance
• Pay suppliers and track discounts
Identify and
Shop and Order Approve / Change
Approve Suppliers
Buyer Requestor Budget Holder

• Approve vendors • Access preferred vendors • Verify budget & policy
• Negotiate contracts • Compare items side-by-side compliance
• Define policies • Assign accurate pricing • Assess available
• Track approvals & orders budget and expenses
Business Pressures
How Do I …
Control Spending Improve Performance

• Direct employees to the right • Enable collaboration at the right
suppliers and purchasing point in the procurement cycle?
behaviors? • Provide services to drive better
• Reduce involvement of performance at lower cost?
Purchasing in routine tasks?
Procurement Org
Extend Role of Procurement Leverage Technology

• Establish compliance methods for • Manage catalogs and expand
financial & purchasing alignment? the scope of spend coverage?
• Create visibility needed to exploit • Extend procurement automation
new opportunities? to suppliers?
Internal Challenges
Executive Mandates
• Grow Revenue & Margin
• Cut Working Capital
• Aggressive Targets
Contract Compliance Strategic Requirements
• Contract leakage • Bring New Products to Market
• T’s & C’s adherence • Execute M&As
• Pricing Enforcement Buying • Expand into new geographies
Professional
Performance Improvement Finance & BU Requirements
• Maintain Service level to • Improve Cash Mgmt &
internals customers Expenditure Planning
• Inefficient, Manual, error • Capture Early Payment
prone processes Discounts
• Drive savings in new • Increase “Days Payable
categories Outstanding”
Operating Unit Autonomy
• Unwillingness & inability to
enforce policy
• Low visibility into spending
Goal: World Class Procurement
Drive Improvements in Effectiveness & Efficiency
Typical World Class

Performance Indicator Purchasing Purchasing
Organization Organization
% of Long-Term Contracts 37% 75%
Number of Suppliers per $B in Spend 322 10
Cost of Procurement as a % of Spend .96% .24%
Cost per Purchase Order $10.35 $1.52
Purchase Orders in Electronic Form 17% 80%
Cycle Time from Request to PO (hrs.) 50.2 1.4
Source: Hackett Group & Oracle
9 Cut Transaction Costs by Swapping Labor for Technology

9 Shift Procurement Investment to Higher-Value Activities
Agenda
What Customers are Saying…
“Oracle iProcurement has given us more

information about purchasing and greater
control over our decentralized procurement. It is also easy to use,
which is a real advantage for staff who are not technically-minded.”
-- Colin Napier, Finance Manager
“Oracle iProcurement is allowing us to drive more

spending into established vendor contracts. This is
helping us reduce transaction costs while increasing our knowledge
of what is being purchased.”
-- Tami Brown, Purchasing Manager
What Customers are Saying…
“Prior to Oracle, invoices were difficult to track and

assign to specific purchases and vendors. With Oracle,
we can now focus on trend analysis for spending and
vendor negotiations which will deliver more value to VeriSign.”
-- Jade Dauser, Director of Purchasing
“Oracle self-service procurement completes a requisition

online and then has the ability to check against budget,
monitor against budget, and provide exceptions in the event someone is
buying something they don't have budgeted. The workflow approval
goes to a supervisor depending upon the approval amount and the
authority amount.” -- John Courtney, VP Finance and CFO
What Customers are Achieving
achieved over $74M savings on $495m spend
achieved 3-years savings of $5.4M (net of project cost)
saved 20% on MRO items
enabled 35k users to run 100% electronic transactions
eliminated 75% of contract leakage
reduced PO/AP transaction processing costs by 89%
saves $50 per requisition in administrative costs
cut error rates by 80% and boosted productivity 230%
reduced purchasing cycle time from 15 days to 4 days
implemented internet procurement in only 60 days
A Few More Customers…
Agenda
Oracle Advanced Procurement
The Integrated Suite that Dramatically Cuts All Supply Mgmt Costs…
Spend Reduce Spend on Goods and Services Supplier

Categories Collaboration
Spend Category
Analysis Management
Online Orders
Indirect Sourcing
Goods Supplier
Portal
Streamline Procurement Processes
Logistics
Services Approval Touchless Automated
Routing Buying Payment
Engineered Settlement
Goods Budget-Based Supplier
Procurement Network
Contract Supplier
Management Performance
Direct Profile
Materials Management
Enforce Policy Compliance
Oracle iProcurement
Enforce Organizational Policies and Enable User Self-Service
Shop for Goods Populate Place an

and Services Requisition Order
• Familiar web-shop interface • Easy web checkout
Informational Catalog Smart Form
• Favorites lists • Project, work order,
• Powerful search grant reference
• Cross-search compare • Account generator
• Transparent punchout • P-cards
Local, supplier, • Supporting attachments
content hub • Inline shopping cart
Seek Request Order Fulfillment

Approval Changes & Execution
• Email or online • Self-service change • PO status
• Pre or post-req management • Shipment tracking
• Position hierarchy - withdraw • Desktop receiving
• Employee hierarchy - cancel • Invoice & payment status
• Shared engine - change price, amount,
need-by-date
Oracle iProcurement
Enables you to…
n Streamline Employee Ordering
o Enforce Purchasing Policy
p Slash Procurement Costs

Intuitive Web-Shopping Interface
Ensure Rapid and Universal Adoption
• Easy to learn, use and

adapt to your business
• Quickly search for and
locate goods & services
• Browse logical categories
defined in online stores
• Automatically place
orders and track via
web browser
• Choice of search skins
(driven by preferences):
grid or paragraph
• Multiple favorites list
(move, add, delete)
Flexible Content Controls
Enable Convenient Guided Buying to Drive Behavior
Global Supplier
Agreements Content
Central Catalog
Business
Departments
Units
Example:
Facilities Departmental and user-role controls define
buying authority and approval levels
Example: Example:
Maintenance Services Configurable categories organize Local Supply Information
HVAC merchandise and services in logical fashion Unique Requirements
Cleaning Supplies Specialized Agreements
Multiple Content Management Options
Maximize Coverage and Minimize Costs
Typical Content Options Capabilities

• Access configuration, pricing, and availability
Non-Inventoried, Supplier • Return selections via Punchout
Indirect, and Hosted • Offload content efforts to suppliers
Consumable MRO Catalog • Quickly and efficiently manage large volumes
• Control catalogs within corporate firewall

Inventoried Items, • Synchronize with agreements, inventory & templates
Industrial MRO, and
Internal
Catalog • Process supplier XML, TXT, and CIF updates
Direct Materials • Maximize control over presentation and availability
• Support a wide variety of suppliers and catalogs

Small Suppliers, Hub • Approve content changes and control user access
Spot Buys, and • Use aggregators’ categories or unique markets
Specialty Categories
Catalog
• Outsource catalog efforts and maximize coverage
Transparent Punchout*
Use One Interface to Access Any Content, Anywhere
Supplier Content
Boise Cascade
Search results list

Internal Catalogs all items from
& Smart Forms multiple sources
Dell
Office Depot
Hub Catalogs
*Patent Pending
Complete Tracking and Change Mgmt
Conserve Purchasing Staff Resources
Requestor
Purchase Order Fulfillment and Receiving

Management Status Tracking and Returns
• Maintain complete • View approval, order, • Record packing slip and
record in one place acknowledgement, waybill information
• Route & auto- shipment, and receipt • Receive with “one-click”
approve & route • Automatically alert • Easily return faulty
change orders based requestor on order goods
on tolerances exceptions
(eg. non-receipt) • Automatically invoice
• Automatically alert based on receipt
supplier for changed • Integrate to major small
orders parcel carriers (eg. FedEx)
Oracle iProcurement
Enables you to…

Enterprise-Wide Enforcement
Align Financial and Procurement Policies
Corporate Policy Controls
• Approval policies
• 3-way match approval level Your Orders Suppliers
Company
• Pricing, receiving, and Invoices
invoicing tolerances Payments
• Vendor hold enforcement Requisitions
• Security hierarchy
Centrally Manage Policies and Procedures
Flexible Purchasing Definitions Purchasing Execution Controls

• Date formats • Numbering options
• Time zones • Price break types
• Tax rules • Supplier qualifications
• Chart of accounts • Tax defaults
• Fiscal & legal • Default accrual accounts
requirements
• Accrual – receipt / period end
• Supported languages
and currencies
• Reporting & transaction currencies
Accommodate Global Requirements Support Unique Transactions
Tailorable Smart Forms
Efficiently Manage Non-Catalog Requests
Non-Catalog and Smart Consolidate and organize spending

Complex Categories Forms • Gather all information needed to execute
the right purchase
• Automatically assign to contract
• Assign to spend category
Legal Services • Search & browse for easy emp access
Enforce policy for non-catalog spend
• Pre-define default values
• Optionally restrict user override
Artwork • Specify preferred suppliers & price
Streamline process
• Define by operating unit or globally
Professional • Specify for buyer or supplier
Training • Automatically place all approved
requisitions on POs
Information
• Create non-catalog request stores &
Template
associate smart forms to the store
Content Security
Provide the Right Content to the Right People
Partition content Combine zones Grant access by OU

into zones to create stores or responsibility
Content Zone 1
Suppliers
A 9 9 X
B 9 9 9
C 9 9 X Marketing Exec
X Y Z
Categories Promotional
Catalog
Catalog Items
Content Zone 2
Suppliers
A 9 X X Professional buyer
B 9 X X
C 9 X 9
X Y Z
Categories Industrial MRO Maintenance
• Improve control over what end users can see & user buying experience
• Execute organizational unit-specific procurement strategies
• Reduce risks associated with sensitive categories
Configurable Approval Management
Ensure End-to-End Compliance Enforcement
Corporate Policy
• Allocate spending to approved
suppliers at negotiated prices
• Manage by exception
Approval Workflow Financial Controls
• Define rules-based approval • Support budget, encumbrance,
list including amount, requestor, project, and grant accounting
department, and project • Set tolerances for
• Validate funds availability in commitments against a budget
real-time • Allocate costs to one or more
• Perform auto approval & projects or grants
automate notifications
Role-Based Security
• Manage view, update and approval
hierarchies
• Control requester access to
authorized catalogs
• Define controls by user, cost-
center, location, item, & commodity
Advanced Approvals
Graphically View Approval Chain and Requisition Status
Parallel Approvals Position Hierarchy Support
Viewer
• Reduce Approval Cycle Time

• Minimize Workflow Maintenance
• Maintain Key Stakeholder Engagement and Oversight
Pricing and Contract Enforcement
Automatically Assign Correct Terms on Every Order
• Pricing and spend

commitments
Procurement to Payment Flow
• Specifications
• Deliverables Business Unit A
• Signatures
• Compliance status
(e.g., supplier barred)
Global
Agreement
• Terms & conditions
• Regulations and
reporting requirements
Business Unit B
• Payments and
account status
• Projects and budgets
Single Point Purchasing Controls
Control Maverick Spending
Purchasing Monitoring
and Compliance
Global Spend
End Users Approved Analysis
Purchasing of Approved
Goods & Services
Suppliers
Financial Monitoring
• Discourage unnecessary spending

• Enable “one-stop” shopping for end users
• Provide visibility to Purchasing and Finance
• Analyze purchasing history to tap future savings
Oracle iProcurement
Enables you to…

End-to-End Process Automation
Lower Procurement Transaction Costs
Online Catalogs & Matching

Contracts Rules
Shop & Requisition Review / Create & Receive & Pay Supplier
Order Approve Route PO Reconcile
Approval Policies Accrue / Relieve

(e.g., Funds Checking) Tax Encumbrance
Configurable, Pre-Modeled Best Practice Purchasing Workflow
Requester Driven Procurement
Streamline Routine Change Requests
Exception Processing
Employee’s Purchasing
Approver Buyer Manager
Route to Route changes

Route changes
Requester’s to buyer’s
to Buyer
hierarchy hierarchy
No No No
Within Within PO updated &

Requester’s Buyer’s submitted to PO changes
Change tolerance? tolerance? approval within limits? PO
Orders / Yes Yes workflow Yes Approved
Requests
Touchless Processing
Eliminate Processing of Trivial Change Requests
Unified Catalog Architecture
Establish a Single Authoring, Ordering, & Maintenance Environment
Sourcing User
Add new items
from award lines
Buyer
Catalog Admin
Bulkload / Punchout &
online author & transparent
update content
punch-out
Catalog
Catalog
Supplier Approval
Upload and Requester
workflows
maintain content
Buyer View, approve,

add, edit, and
delete items
Reduce Maintenance Efforts and Drive Spend Visibility
Advanced Price Modeling
Realize Preferred Supplier Savings
Organization
Pricing Engine
hierarchy Dynamic price Contract
calculations Pricing
Supplier
hierarchy
Flexible Framework and Rule Based Pricing Structures

Special Pricing Promotions Limits Pricing Models
• Quantity, price / • Off invoice discounts • Spending level cutoff • Incompatibility /
percentage breaks • Deferred accrual • Cumulative discount exclusivity rules
• Discounts, accruals discounts • Gross purchases • Event and phase
and surcharges • Free goods processing
• Total order quantity
• Effectivity dates • Item upgrades • Nested discounts
• Total units accrued
• Mass repricing of • Special freight • Promotion usage
purchasing docs
• Prompt payment
• Multiple modifier
calculations
Oracle iProcurement
Intuitive user interface with flexible Streamline

controls, multiple content mgmt options Employee
& self-service fulfillment tracking Ordering
Tailorable smart forms and approval Enforce

workflow with enterprise-wide Purchasing
contract / compliance mgmt Policy
End-to-end automated purchasing Slash

process automation and control Procurement
with support for advanced pricing Costs
Delivered via a Modular Product Suite
Spend Analysis Strategic Sourcing Contract Mgmt
Sourcing
Purchasing Intelligence Procurement Contracts
Sourcing Optimization
Employee Self Service Procure-to-Pay Supplier Enablement
iProcurement Purchasing iSupplier Portal

Services Procurement Accounts Payable Supplier Network*
*Complimentary service component of Advanced Procurement Suite
Evolution of Oracle Advanced Procurement
Base Differentiators… New in 11i.10… New in R12…

• Self-service enterprise • Services procurement – • Professional Buyer’s
requisitioning from suppliers contingent labor & bus services, Workcenter
or internal stock negotiation through payment • 2-way MS Word integration
• Integrated asset and • Procurement contracts – • Unified catalog architecture
production planning global T&Cs standards, • Shared services support
• Supplier Self-Service negotiation, doc & change
mgmt, compliance • Requestor directed procurement
• Flexible invoice matching • Prospective supplier registration
including match to receipt • Formula-based pricing & tiered
discounts (Advanced Pricing) using iSurvey
• Automatic invoice and debit • Supplier catalog authoring
memo generation • Retroactive pricing including
automated invoice adjustments • Tolerance based order change
• Project- and budgetary- auto-approval
based purchasing • Negotiate with subjective
scoring and what-if analyses • Supplier scorecarding
• Multi-attribute scoring for • Prospective supplier registration
reverse auctions and RFQs • Automatic bid scoring and
award (Sourcing Optimization) • Advanced pricing integration
• Packaged spend, supplier ,
and commodity intelligence • Shared services procurement • Team scoring of sourcing rqmts
• Advanced pricing • Requisition “SmartForms” • Parallel approvals
capabilities • LPN & lot/serial receiving • Position hierarchy approvals
• Transparent Punchout • Supplier managed banking • Complex work procurement
• Global Agreements • eTax integration
Complete Coverage Across All Purchasing Categories
Spend Categories
Indirect Services Engineered Direct

Goods Goods Materials
Complete Category Management
Marketing Project Management Production Logistics

• Advertising • Capital Expenditures • Raw Materials • Full truck, LTL, Parcel, etc.
and Print • Building & Construction • Components • Ocean, Air & Rail
• Shows and • Fleet Purchases • Assemblies • Warehouse/Logistics Svcs
Promotions • Fleet & Maintenance Svcs
Self-Service Information Technology Facilities Maintenance
• Office Supplies • Hardware, Software • HVAC • Repair Supplies
• Contingent Labor • Leasing & Financial • Janitorial • Replacement Parts
• Travel and Services • Landscaping • Equipment
Entertainment • Professional Services • Utilities • Tooling
• Networking, Wireless • Furniture & Fixtures
All Supported by Leading Technology
• J2EE Application Server • Real Application Clusters

• Service-Oriented Architecture • Advanced Security
• Business Process Mgmt • Embeddable
• Business Intelligence • Secure Enterprise Search
• Content Management • Data Warehousing
• Identity Management • Server Virtualization
• Collaboration Suite • Enterprise Management
• Enterprise Portal • Partitioning
• Business Integration • OLAP
• Data Hubs • Data Mining
• Developer Tools • Spatial Data
• Web Services Management • Secure Backup
Implement Based on Procurement Priorities
Procurement Objectives Over Time
Adopt Applications On Demand or On Premises
Cut Unit Cost While Deploy Self Service Create Savings, Drive Value,
Streamlining Processes To Free-up Staff & Enforce Compliance
Contract Spend
Management Analysis
Supplier Employee
Enablement Self-Service
Strategic
Sourcing
Procure-
to-Pay
• Focus early wins and ROI

• Operate fully integrated or stand alone
• Lower the time & cost to implement& maintain applications
Agenda
OVERVIEW CUSTOMER PERSPECTIVE
• Leading private Ivy League university “Using Oracle Advanced Procurement and
• Largest private employer in Philadelphia Oracle Financials has enabled us to
with 12,300 employees transform the purchasing department to a
• 22,300 students; 233,000 living alumni; value-added organization, resulting in over
151 buildings over 269 acres $74 million in documented cost savings.”
• $495M annual purchasing spend; over -- Ralph Maier, Dir. of Purchasing Services
240,000 transactions
CHALLENGES / OPPORTUNITIES RESULTS

• Leverage significant buying power to • Saved $77M in indirect procurement
reduce the costs of products and • Reduced invoice processing cost as
services much as 98% and processing time
• Improve the buying experience of by 40%
researchers and administrative staff • Lowered procurement prices by as
much as 35%
SOLUTIONS • Increased central purchasing
productivity by 100%
• Purchasing • General Ledger
• iProcurement • Payables • Raised accounts payable productivity
by 20%
• Financials • Cash Management
COMPANY OVERVIEW CUSTOMER PERSPECTIVE
• $1B+ global manufacturer of electronic “We conservatively expect our Oracle
instruments & electric motors Internet Procurement initiative to reduce
• 7,800 employees at 40 plants worldwide our maintenance, repair, and operating
produce 50 million motors spend by 10%, resulting in millions of
• 2,700 users at 27 sites dollars in savings and a substantial
positive impact on earnings.”
-- Bill Lawson, CIO
CHALLENGES / OPPORTUNITIES
• Enable buyers to more effectively
leverage purchasing power
• Reduce administrative costs RESULTS
• Reduced procurement costs by 14%
SOLUTIONS • Standardized & streamlined processes
with 20,000 global suppliers
• iProcurement
• Oracle Procurement expected to handle
• Purchasing $500M in annual spend
• Financials
• Discrete Mfg
• Inventory
COMPANY OVERVIEW CUSTOMER PERSPECTIVE
• $160B global business leader “We have already realized significant
• 48 distinct operating units savings from implementing Oracle
• 316,000 employees in over 100 countries iProcurement 11i and anticipate more.”
-- Gary Reiner, Senior VP and CIO
CHALLENGES / OPPORTUNITIES
• Replace error-prone manual processes
with self-service ordering
• Consolidate supplier contracts and
reduce purchasing costs
RESULTS
• Granted 35K users access to 800K
SOLUTIONS approved catalog lines
• Purchasing • Achieved complete integration –
100% electronic
• iProcurement
• Instituted in 5 languages
• Inventory
• Projects
• Human Resources
OVERVIEW CUSTOMER PERSPECTIVE
• Oversees North America’s largest public “We have seen increased productivity in
housing program warehouse operations, we have eliminated
• Manages over 2,700 buildings physical inventory, and automated our
• 420,000 people live in New York City procurement process. All of which has
Housing Authority housing developments resulted in significant labor productivity
improvement.”
CHALLENGES / OPPORTUNITIES -- Natalie Rivers, Deputy GM for Admin.
• Homegrown and vendor legacy
systems were expensive and did not
meet management’s information needs
• Gain tighter visibility and control over RESULTS
spending • Estimated savings of $50 per requisition,
adding up to %150M in savings per year
using iProcurement
SOLUTIONS
• iProcurement • Fixed Assets • Reduced delivery time to housing
developments from 9 weeks to 3-5 days
• Purchasing • Grants
• Reduced maverick spending from $29M
• Inventory • Human Resources to $10M
• Financials • Order Management • Plan to save $2M annually in early-
• Public Sector • Cash Management payment discounts
Budgeting
Oracle iProcurement
Streamline Employee Ordering
Enforce Purchasing Policy
Slash Procurement Costs

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iProcurement

Streamline Employee Ordering, Enforce Purchasing Policy,

The following is intended to outline our general

• 286,000 total customers • 19,500 partners - Public Sector

• Oracle’s Leadership Position

• Reconcile payments to purchases

Buyer Requestor Budget Holder

Control Spending Improve Performance

Extend Role of Procurement Leverage Technology

Typical World Class

Number of Suppliers per $B in Spend 322 10

Cost of Procurement as a % of Spend .96% .24%

Cost per Purchase Order $10.35 $1.52

Purchase Orders in Electronic Form 17% 80%

Cycle Time from Request to PO (hrs.) 50.2 1.4

Source: Hackett Group & Oracle

9 Cut Transaction Costs by Swapping Labor for Technology

• Oracle’s Leadership Position

“Oracle iProcurement has given us more

“Oracle iProcurement is allowing us to drive more

“Prior to Oracle, invoices were difficult to track and

“Oracle self-service procurement completes a requisition

• Oracle’s Leadership Position

Spend Reduce Spend on Goods and Services Supplier

Shop for Goods Populate Place an

Seek Request Order Fulfillment

Enables you to…

n Streamline Employee Ordering

o Enforce Purchasing Policy

p Slash Procurement Costs

• Easy to learn, use and

Typical Content Options Capabilities

• Control catalogs within corporate firewall

• Support a wide variety of suppliers and catalogs

Search results list

Purchase Order Fulfillment and Receiving

Enables you to…

n Streamline Employee Ordering

o Enforce Purchasing Policy

p Slash Procurement Costs

Centrally Manage Policies and Procedures

Flexible Purchasing Definitions Purchasing Execution Controls

Accommodate Global Requirements Support Unique Transactions

Non-Catalog and Smart Consolidate and organize spending

Partition content Combine zones Grant access by OU

Parallel Approvals Position Hierarchy Support

• Reduce Approval Cycle Time

• Pricing and spend

• Discourage unnecessary spending

Enables you to…

n Streamline Employee Ordering

o Enforce Purchasing Policy

p Slash Procurement Costs

Online Catalogs & Matching

Approval Policies Accrue / Relieve

Configurable, Pre-Modeled Best Practice Purchasing Workflow

Route to Route changes

Within Within PO updated &

Eliminate Processing of Trivial Change Requests

Buyer View, approve,

Reduce Maintenance Efforts and Drive Spend Visibility

Flexible Framework and Rule Based Pricing Structures

Intuitive user interface with flexible Streamline