Supply Qualification Management White Paper

Supplier Qualification Management (SQM)
ORACLE WHITE PAPER | OCTOBER 2016

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SUPPLIER QUALIFICATI ON MANAGEMENT

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Contents
1. Introduction 3
1.1. Overview 3
2. Supplier
Supplier qualif
qualification
ication management life cycle 4
2.1. Create initiative

initiatives
s (quali
(qualification
fication or assessment) 5
2.2. Custom
Customize
ize questionnaires for the initiative
initiatives
s 6
2.2.1. Create and ma

manage
nage questions 6

manage
nage qualification areas 6

manage
nage qualification models 7
2.3. Respon
Respond
d to questionnaires 7
2.4. Accept/Reject re sponse 8
2.5. Evalua
Evaluate
te a qualificat
qualification
ion or an assessment 8
2.6. Monitor supplier qualification activity 8
2.7. Requal
Requalify
ify suppliers 8
3. SQM In
Integration
tegration with Procurement architecture 9
4. Security
Security roles in SQM 10
5. Supplier
Supplier Regis
Registration
tration Integrat
Integration
ion with Supplier Qualificat
Qualification
ion Management 11
Supplier
Supplier registration Rule set 11
6. Supplier
Supplier profi
profile
le change Request 16
7. Sourcing
Sourcing Integr
Integration
ation 18
8. Key Functional
Functionalities
ities of Suppli
Supplier
er Qualificat
Qualification
ion ma
management
nagement 22
8.1. Questi
Question
on creati
creation
on 22
8.2. Creati
Creation
on of qualificat
qualification
ion area 25
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8.3. Creati
Creation
on of qualificat
qualification
ion Model 28
9. Creation of Initiative with type – Qualificat

Qualification
ion 31
9.1. Create Initiative type- Qualification and launch 31
9.2. Suppli
Supplier
er response to initiative from supplier portal 35
9.3. Accept respons e by Supplier Manage

Managerr (buyer) 37
9.4. Evalua
Evaluation
tion of qualificat
qualifications
ions 38
10. Creation of Initiative with type – As

Assessment
sessment 40
10.1. Create In
Initiative
itiative type- Asses
Assessment
sment and launch 40
10.2. Supplier
Supplier response to initiative from supplier portal 44
10.3. Response
Response from internal user for qualificat
qualification
ion question 46
10.4. Accept respons e by Supplier Manage

Managerr (buyer) 47
10.5. Evaluation
Evaluation of qualificat
qualifications
ions 49
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1. Introduction
1.1. Overview
This Document explains the main functionalities of Oracle Fusion Supplier Qualification Management
(SQM) module. Oracle Fusion SQM enables you to streamline the process of qualifying suppliers
according to pre-defined criteria that meaningfully support the procurement function within an
organization. Using SQM a buying organization can define the requirements that a supplier should
meet, pre-qualify the supplier based on a simpler set of requirements and then qualify the supplier by
performing required verifications. It also allows you to assess and maintain the qualifications on an
ongoing basis.
The key challenges to maintain the suppliers as follows:-
o Supplier Management-
 Onboard of suppliers quickly with less risks
 To provide self service administration management
 Efficient commun
communication
ication with all suppliers
o Poor visibility-
 Tack of supplier capabilities
capabi lities throughout
throughout the life cycle
 Keep track of respective supplier qualifications
 To assured that spend analytics is complete and accurate all i n time
 Aware of dependable suppliers and cost effectiveness
effectiveness
o Compliance and govern
governance-
ance-
 Suppliers agree to meet code of conduct all in ttime ime
 Ensur
Ensure e suppliers are adhering to all laws, standards and and regulations
 Monitor the visibility
visibili ty of suppliers
o Fragmented suppliers data-
 Unify duplicated, incomplete, inaccurate data held
 Consolidate an andd federate shared supplier data across mul multiple
tiple business
business un
units
its and
instances
To overcome above challenges, Fusion SQM robust frame work is designed with following
advantages:-
a) Quick and efficient supplier onboard process
b) To improve th
the
e su
supplier
pplier relationship and
and has
has visibility
visibi lity on every supplier
c) To unify the supplier information

information during supplier life cycle
d) To manage and adhere to compliance an

and
d risk
e) To support procurement process u

using
sing efficient and selected su
suppliers
ppliers
f) Adhered to all standards, laws and regulations

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2. Suppli
Supplier
er qualificati
qualification
on management
management life
life cycle
Life cycle of qualification management
Above diagram explains

explains the life cycle of supplier qualification, where buyer o rganization can d efine supplier
qualification areas and models according to business needs. Gather required data thr ough qualification
questionnaires and profile updates. Qualify and assess suppliers in order to support various initiatives like supplier
preference programs, policy compliance, and sourcing award decisions. Inform the right personnel when new
information becomes known
known that might affect supplier qualifications or capabilities. Query on supplier qualifications
and policy compliance. Detailed phases of the SQM life cycle is explained below

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2.1. Create initiatives (qualification or assessment)
assessment)
Streamline the qualification of one or more suppliers by creating an initiative. Create a qualification initiative to
qualify specific aspects of the supplier by selecting one or more qualification areas such as Financial Viability or
Supplier Code of Conduct. Alternatively, create an assessment initiative for assessing the supplier as a whole by
selecting a qualification model. Easily add suppliers to the initiative using advanced search capabilities based on
multiple supplier profile attributes as well as transaction data. For th e initiative, select th e team mem
members
bers
responsible for evaluating the qualifications and assessments. For each qualification or assessment created as
part of the initiative, capture the evaluation due date, the owner, the supplier contact. Oracle Fusion Supplier
Qualification Management will generate questionnaire s based on the qualification models and areas included on
the initiative, and send them to each supplier. Optionally customize the questionnaire to fit your business needs
and specify a due date.

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2.2. Customize questionn
questionnaires
aires for the
the initiatives
During the initiative creation process the application will generate default questionnaires based on the qualification
areas or qualification model added to the initiative. Oracle Fusion Supplier Qualification Management may
generate up to two questionnaires; one to be sent to the supplier contact and one to be sent to the internal contact
within the buying organization. For each questionnaire you enter a title, an introduction and the due date to submit
responses. You can also customize the automatically created sections on the questionnaire or create new
sections. Sections allow you to group questions into logical subse ts. The questionnaire can be further customi
customized
zed
by removing existing
existing sections, reor dering the display of se ctions, moving questions from one section to another
and removing questions that are not required. All changes made to a questionnaire can be previewed before
launching the initiative. Creation and Manage questions, question areas and models are explained below
2.2.1.. Create an
2.2.1 and
d manage questions
Easily capture and organize your business requirements by creating a library of qualification questions, and use
them for qualifying or assessing various suppliers. All
All business requirements that a supplier needs to meet to be
qualified are captured as questions in the question library. Create questions to solicit information from supplier
contacts or from users within the buying organization. For each question specify the question text, the acceptable
responses, and the requirements for supporting documents. Optionally map a question to an attribute in the
supplier profile, which allows you to use the information available as part of the supplier record. When there is a
need to request additional information based on a response to a given question, create follow-up questions for
each acceptable r esponse. All questions created in the quest
question
ion library are available across all procurement
business units.
Example of Questionnaires
2.2.2. Create and manage qualification areas

Streamline supplier qualification by crea ting reusable qualification areas. Qualification areas group related
questions that qualify a specific aspect of the supplier (for example, ISO 14001 certification). For each qualification
area specify the qualification outcomes to be assigned to suppliers during the evaluation process. Optionally,
create qualification areas that only gather information from suppliers without the need to assign a qualification
outcome. All qualification areas are set as global (they are available to all procurement business units) or as
available to one or more specific procurement business units only.

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Example
Example of qualification
2.2.3. Create and manage qualification models

Just like a qualification area is used to evaluate a given aspect of a supplier, a qualification model is used to
qualify the supplier as a whole. A qualification model is a grouping of qualification areas for different aspects of a
supplier that you use in conjunction to qualify the supplier. All qualification models are set as global (they are
available to all procurement business units) or as available to one or more specific procurement business units
only.
Example of qualification Model
2.3. Respond to questionn

questionnaires
aires
The questionnaires capture supplier or internal responder responses to the questions and are stored in a single
response repository that is used to evaluate suppliers. All recipients of the questionnaire receive a notification
requesting their response to the questionnaire with a link directly to the questionnaire. The supplier contacts can
also access any questionnaires assigned to them through the supplier portal. When a supplier contact or internal
responder selects a questionnaire they are taken to a page where they can provide answers to each question o n

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the questionnaire. The responders can save and update the questionnaire response at any time before submitting
it for accep tance. The supplier contact or internal responder can submit
submit the questionnaire
quest ionnaire once all required
responses have been provided.
2.4. Accept/Reject response

Once supplier answered to a ll questionnaires & submitted from his por tal for the qualification, Supplier manager
manager
(Buyer) will receive a notification on submission. Buyer or Supplier manager can take a look at the response
submitted from the supplier & accept or reject based on the responses. Buyer can reject & ask for more
information or request to fill improperly filled data for the questions or qualification areas. Based on the rejection,
supplier will
will refill the details & resubmit. Buyer can accept all the responses which
which are corr ectly filled by suppliers.
2.5. Evalu
Evaluate
ate a qualification
qualifica tion or an assessment
Evaluating a qualification or an assessment allows a buying organization to understand
underst and the level at which the
supplier meets the requirements. This helps in determining the extent of the relationship that the buying
organization should establish with that supplier. Once the responses submitted by the supplier and the internal
responder are accepted, the evaluation team members can review the responses and decide upon the qualification
or assessment outcome to be assigned to the supplier. During this process the evaluation team members enter
their final comments, assign an outcome and enter a sta rt date and an end date for the qualification o r
assessment. Once the qualification or assessment is finalized, the information is available to research suppliers in
Oracle Fusion Sourcing.
2.6. Monitor supplier qualification activity

Easily access and monitor relevant qualification activities from the O verview work area and the Monitor Initiative
page. The Overview work area provides a snapshot of the latest transactions across initiatives and their current
status providing better visibility into your workload. Recent Activities offer details on latest events and the
recommended action to be taken for those events. The Monitor Initiative page provides the overall progress of a
single initiative. This pa ge allows you to manage all aspects of the initiative after it is launched, from viewing all
suppliers on an initiative to the status of the questionnaire responses received from each supplier. Information on
all completed qualifications and assessments on the initiative is also available. Directly initiate the evaluation
process from here as well.
2.7. Requalify suppliers

Suppliers are requ alified or reassessed when
when events such as expiration of suppor ting documents, expiration
expiration of
qualifications or assessments occur. The requalification process can include all activities from the qualification
process such as selecting a qualification area and model selection, soliciting and capturing responses from
suppliers and inter nal responders, evaluating the impacts of new responses on existing qualifications and
assessments, and assigning outcomes to qualifications and assessments for a complete requalification. It also
includes simple activities such as extending the end date of an existing qualification or assessment or assigning a
new outcome for a quick reevaluation process. Promptly requalify or reassess a supplier when one of the following
events occurs: expiration of existing active qualifications or assessments, expiration of supporting documents tied
to responses tha t are part of exi
existing
sting active qualifications or assessments, updated
updat ed response for questions that ar e
part of existing active qualifications and updated qualification fo r qualifications that are part of ex
existing
isting active
assessments. Optionally you can requalify or reassess the supplier at anytime without the occurrence of the above
defined events.

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3. SQM Integration
Integration with Procurement
Procurement architecture
architecture
Functional architecture
Supplier qualification management is interlinked with supplier master, sourcing & supp lier portal as show in
diagram above.

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4. Securit
Security
y roles in SQM
Fusion SQM was built from the ground up for the unique roles within
within an organization. It has been built to give each
role the Since

screen. relevant
thedata they
needs need
and and thediffer
demands ability to makeroles
between decisions and take
(for example actions a ll from
Procurement a single role
administrator, -based
Supplier
qualification Manager & Supplier Administrator etc), it makes sense that their user experience and day to day job
experience is tailored for them uniquely. Following are the list of roles required in SQM to perfor m tthe
he following
activities
 To Setup & access SQM module
 Creation of Questions,
 Creation of Qualification areas
 Create Qualification Models
 Initiative creation
 Response creation for initiative
 Evaluation of Initiative
 Qualifying / Re-qualifying suppliers
Perform what actions

Roles Role Description
Supplier This is a discretionary role provisioned to end-users on an as Create Questions, Qualification
Qualification required basis for the purpose of performing supplier qualification Areas and Models.
duties. Supplier qualification is the process of qualifying suppliers Create Initiative
according to a set of predefined criteria to meaningfully support Respond to Questionnaire
the procurement function within an organization. Supplier Accept Questionnaire Response
qualification includes defining the requirements that a supplier Evaluate Qualification
should meet, qualifying the supplier based on a smaller set of Re-qualify Suppliers
requirements, qualifying the supplier by performing required
verification and audits, and assessing and maintaining supplier
qualifications.
Supplier Sales Manages agreements and deliverables for supplier company. Respond to Questionnaire
Representative Primary tasks include acknowledging or requesting changes to
agreements in addition to adding catalog line items with customer
specific pricing and terms. Updates contract deliverables that are
assigned to the supplier party and updates progress on contract
deliverables for which the supplier is responsible.
Supplier Manages supplier profile and user provisioning Accept Questionnaire Response
Administrator
Administrator
Procurement Responsible for technical aspects of keeping procurement Setup of SQM module
Application applications systems available as well as configuring the
Administrator
Admi nistrator applications to meet the needs of the business.
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5. Supplier
Supplier Registration
Registration Integration
Integration with Supplier Qualificati
Qualification
on
Management
Buying organizations can dynamically display a qualification questionnaire to a supplier during registration and
solicit additional information to help make better approval decisions.
Expose of questionnaires during supplier registration
This integration between

between Supplier Registration an d Supplier Qualification Management provides the follow
following
ing
capabilities:
• Supplier Qualification Management allows buying organization to define rules that solicits question responses
based on th e information provided by the supplier registering. For exam
example,
ple, a buying organization woul
would
d want to
ask questions about “Ethics Compliance” to all suppliers but ask questions related to “ Environmental Compliance”
Compliance”
only if the supplier is a manufacturer.
• When a supplier comes to register, Supplier Qualification Management dynamically creates a questionnaire
based on the rules and presents it to the supplier. The supplier provides responses to these questions as part of
the streamlined registration process.
• Upon submission of the supplier registration request, the approvers review the responses provided by the
supplier for the qualification questions to make a more informed decision on the registration approval.
Supplier registration Rule set

Rule set decides what kind of qualification should display during supplier registration, based on the conditions set
in the rule set.
A rule-set allows you to define two kinds of rules:
• The ‘Alw
‘Always
ays Displayed’ rule displays questions from the qualifications areas specified on the rule for each and
every supplier that registers for the company.
For example, a buying organization that wants to ask each registering suppl ier about their “Compliance” will create
an Always Displayed rule and include qualification areas as shown.
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Always display condition
• The conditional rule displays questions from a given qualification area based on the information entered by the
registering suppliers in the previous registration steps. If the information provided during registration meets the
condition in the rule, then questions from the qualification area specified in the rule are displayed to those suppliers
meeting the condition.
For example, a company’s supplier type profile is not SUPPLIER, then Finan cial visibility questionnaire will be
shown. Rule is shown below:-
Rules based on the condition
Conditions can be created based on the attributes such as supplier type, product and services categories, tax
organization type, business classification certifications, and tax country of the supplier.
In addition to a name and description, the rule-set can also capture text that can be used to display questionnaire
instructions. Companies also have the choice to include or exclude the follow-up questions for each question
contained in the qualification areas. Selecting ‘Use Question Branching’ shows follow-up
follow-up questions during the
registration process.
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Follow-up question will be displayed based on enable or disable of Use question branching
Supplier Qualification Management allows companies to reuse the same rule-set across multiple procurement
business units. Once active, it is applied when a supplier is registering in any of the Procurement Business Units
selected. While you create and define your rules, the rule-set remains in an inactive status. Once you are ready to
use this rule-set.
User can activate or Inactive by click on above button
If a supplier is registering in a Procurement Business Unit that has an active rule-set, the supplier is prompted to
respond to a qualification questionnaire during the registration process. This questionna ire is automatically
generated based on the rule-set where each qualification area that needs to be responded to is displayed as a
section, and questions from that qualification area are included in the section
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Since company profile is not supplier type, financial visibility questionnaire is displayed.
After the supplier registration request

reque st is submitted, the qualification questionnaire with the supplier’s response is
made available to the registration approvers.
Approver can see the questionnaire details by clicking on the hyperlink before approval
This allows approvers to make a more informed decision before approving the registration request. Approvers
have the ability to view the responses online or by downloading a PDF attachment.
The integration between supplier registration and supplier qualification provides the ability to gather relevant
information about a supplier. The solicited information is tailored to a supplier since a registration questionnaire is
dynamically generated based on supplier-specific information.
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This information helps make a more informed decision when approving the supplier registration request and also
when qualifying the supplier.
Gathering supplier qualification information during registration increases the completeness of th e supplier
information that otherwise could not be solicited during standard supplier registration.
Furthermore, it reduces the supplier qualification cycle time since the responses needed for the supplier
qualification process are already gathered and no questionnaire is needed to be sent to the supplier again
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6. Suppli
Supplier
er profile change Request
Request
A Supplier Profile Change Request that ensures that all the supplier profile changes triggered through a supplier
qualification are presented in a well organized document to the approvers for their review and approval.
The Supplier Profile Chan ge Request Approval Configuration enables users to configure the list of approvers who
need to review and approve the changes to the supplier profile, and to configure for which supplier entity changes
are applicable for change request approval process.
Supplier Qualification processes enab le capturing supplier profile information from the supplier users in form of a
questionnaire. Supplier’s response to the questionnaire essentially is considered as u p to date supplier information
and therefore need s to be saved. The changed supplier data triggers a change request which when reviewed and
approved, propagates the changes to supplier profile.
The change request is a document that aggregates and presents changes to various supplier entities in single
document. Organization Details, Business Classifications,
Classifications, Paym
Payment
ent Methods, Tax Identifiers, and Site Details are
the supplier entities that can be updated through a change request.
A supplier profile change request presents all of the changes to the supplier profile to the approvers through a
supplier qualification response as against their current values.
The supplier profile change request is created once the response from a supplier user or an internal user
(responding on behalf of supplier) is accepted, and that response carries any change in values of the predefined
set of supplier or supplier site attributes.
All the attributes which have changed values are grouped distinctly and presented as part of entities they represent
in the supplier profile.
A supplier profile change request when created locks the respective supplier’s profile to preserve data integrity.
The supplier profile is available for editing only when the change request is approved, rejected or manually
cancelled by the user. This message is conveyed to the users through an information message that also alerts
about the pending change request.
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Supplier profile is unable to edit as change request is pending.
Supplier profile entities can be configured based on supplier business relationships whether a change to the
supplier entity requires approval or not.
Change request configuration
Supplier profile change request approval workflow,

workflow, depending on company’s business r equirements, can be
configured to route the change request for approval in form of rules and conditions.
Based on the con figuration the change requests are routed to the right users for approval. An approval policy to
route all the change requests to supplier administrators is provided to facilitate out of the box functioning of
approval rou ting.
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7. Sourcing Integrat
Integration
ion
Category managers crea ting negotiations in Sourcing can add qualification questions as ne gotiation requirements.
These questions are part of the que stion library created in Suppli
Supplier
er Qualification Mana gement.
They can add individual questions as requirements on the negotiation. They can also add qualification areas to the
negotiation however adding a qualification area adds all questions contained in the ar ea as requirements on the
negotiation.
Supplier Qualification Management maintains a response repositor y that contains previous responses provided by
suppliers for these questions. After adding qualification questions as negotiation requirements, category managers
can access all previous responses captured for these questions in the supplier qualification response repository.
When responding to a negotiation, suppliers may provide new or updated responses to any qualification questions
that are included as requirements. Once the category manager gets the response back from the suppliers, they
can share these responses with Supplier Qualification Management.
Supplier Qualification Management provides access to the response repository, thereby providing access to
previous supplier responses to qualification questions. Sourcing uses this access for tw
two
o different purposes in a
negotiation:
First, Sourcing accesses the latest response to a qualification question added as a requirement. While presenting
the requirements questionnaire
quest ionnaire to a supplier, Sourcing
So urcing will default supplier’s latest response to the question, if it
exists. The supplier can either make changes to the response or leave the value that is defaulted, thereby
confirming that the value is still applicable.
Second, Sourcing access all historical responses to a qualification question added as a requirement. Category
managers can see the response history of the question and can analyze how responses to the question are
trending across time. They can take this information into account for their award decision.
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Questions can be mapped to supplier profile attributes like Supplier Type,
T ype, Freight Terms, and Minority Owned
business classification. The latest response and the response history are also available for these types of
questions.
When Sourcing needs this information for a negotiation, Supplier Qualification Management gets the latest
information from supplier profile and makes it available in the response repository.
When a negotiation is completed, Sourcing transfers question responses into interface tables and informs Supplier
Qualification Management,
Management, who in turn transfers these responses to the supplier qualification response repository.
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Updates made
made to the supplier profile have to undergo the supplier change management proc
process
ess that initiates
required approvals. Therefore, if new responses are received for any such questions, Supplier Qualification
Management initiates the supplier change management process in order to up date supplier profile.
If the change management process is successful, responses are propagated to the supplier profile as well as to
the supplier qualification response repository. If the change management process fails, responses are not
propagated to either.
Responses to questions tha t are not mapped to supplier profile attributes are directly captured in the supplier
qualification response repository.
Additionally, if information is updated directly in the supplier profile, it is also updated in the response repository.
These processes ensure that the supplier qualification response repository maintains the latest responses to
questions. All responses in the response repository are available to any sourcing negotiation using these
questions.
Supplier qualification response repository is updated only after the supplier profile is updat
updateded w
with
ith the new
information. This ensures that information in the supplier profile and the supplier qualification response repository
are consistent with each other.
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The supplier change management process is initiated for all questions mapped to supplier profile attributes on a
negotiation. If the supplier change request is successfully created, any approvals required by the process are
initiated. If the change request is approved, the supplier profile is updated, and subsequently the supplier
qualification response repository is updated.
If the change request is rejected or cancelled, the supplier profile is not updated, and hence the supplier
qualification response repository is not updated. Additionally, if a system error occurs while updating the supplier
profile, the profile as well as the supplier qualification response repository are not updated.
Each time the update is unsuccessful, a notification is sent to inform the category manager that responses were
not tran sferred successfully. The notification will provide the cat
category
egory manager appropriate information on why this
transfer was unsuccessful.
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8. Key Functi
Functionalities
onalities of Supplier Qualification
Qualification management
8.1. Question creation

Create questions to solicit information from supplier contacts or from users within the buying organization. For
each question specify the question text, the acceptable responses, and the requirements for supporting
documents. Optionally map map a quest
question
ion to an attribute in the supplier profile, which allo ws you to use the
information available as part of the supplier record. When there is a need to request additional information based
on a response to a given question, create follow-up questions for each acceptable response. All questions created
in the question library are available across all procurement business units.
Task: Manage Supplier Questions
Navigate to respective implementation project & select the task
Click on create new
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Define all the parameters which are necessary as shown below
Question levels can be restrict either at supplier or supplier site level
Response answers can be given by suppliers or from internal buyers
Question can be set as different types, such that supplier will have a flex
flexibility
ibility to answer the quest ion. Different
types available in fusion are-
1) Multiple choices with single selection
2) Multiple choices with multiple selections
3) Text box entry
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Buyer can mandate to upload attachments for each question when it is necessary.
Buyer can control the parameters for each question
Buyer can define dependent question via branching conditions

Once all required details are filled for the question, save & activate the question. Then this question can be used in
multiple qualification areas. Any number of questions can be defined
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8.2. Creation of qualification area
Qualification areas group related questions that qualify a specific aspect of the supplier. For each qualification area
specify the qualification outcomes to be assigned to suppliers during the evaluation process. Optionally, create
qualification areas
All qualification thatare
areas only
setgather information
as global ( they arefrom suppliers
available to allwithout the need
pr ocurement to assign
business a qualification
units) outcome.
or as available to one
or more specific procurement business units only.
Task: Manage Question Area
Click on new
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Enter the required qualification parameters as define below.
Define relevant area name
 Select the right Business unit. IfIf global flag is enabled then, this qualification area is available across
across the
all business units. Else it will get restrict to only one business unit.
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 Qualification area can be set at two levels:
1) Supplier level
2) Supplier site level
 Expiration reminder will
will sending notification based on days enabled here.
 Any number
number of relevant questions can b
be
e added h
here.
ere. Questions level defined at different levels can be
configured
 Also questions can be defined or
or create during qualification cr
creation
eation by clicking
clicking on Create and add.
 Qualification outcomes are set to question area defined.

 Buyer will
will choose the outcom
outcome
e based on the supplier
supplier response to the questio
questions
ns in question area
area
 Save the qualification area

 Active the qualification area, such that it can be used to define qualification
qualification m
models
odels
 Active qualification areas are used to create initiatives.
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
8.3. Creation of qualification M
Model
odel
Qualification model is used to qualify the supplier as a whole. A qualification model is a grouping of qualification
areas for different aspects of a supplier that you use in conjunction to qualify the supplier. All qualification models
are set as global (they are available to all procurement business units) or as available to one or more specific
procurement business units only.
Task: Manage Question Models
Click on create
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Define qualification parameters as shown below
Enter qualification model name
 Select the right Business unit. IfIf global flag is enabled then, this qualification area is available across
across the
all procurement business units. Else it will get restrict to selected procurement business unit.
 Qualification area can be set at two levels:

1. Supplier level: - Qualification is set at Supplier level and then qualification is applicable for
entire supplier company, irrespective of supplier sites own by a company.
2. Supplier site level: - Qualification is set at supplier site level and then qualification areas are
applicable only to that particular supplier site. If supplier has multiple sites, then each site needs
to qualify independently.
Expiration reminder will sending notification based on days enabled here.
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
All the relevant question areas gr oups can add under the qualification areas.
To view the question branching under each qualification branching click on icon
The entire relevant question branching will be displayed.
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
9. Creation of Initiative with type – Qualification
Login into fusion application with buyer user id/ Password
Click on the navigation >> Procurement>>

Procurement>>Supplier
Supplier qualification icon
9.1. Create IInitiative

nitiative ty
type-
pe- Qualification an
and
d launch
launch
In Supplier qualification workbench click on link “Create Initiative”
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Select Type as “Qualification”
Enter details as required
 Enter the title as required
 System generates the new initiative number- “2”
 Select the defined qualification area/s under qualifications.
 Select the evaluation due date
 Select the Suppliers, contact & sites respective
 Select the internal response, if any questions a

are
re set to respond by buyer. Click on evaluation tab
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Add respective evaluation team member’s names
names accordingly and click on next
Validate the data & click on Next
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Validate the type of questionnaire & questions before publish
Once data is validated click on launch the initiative
Confirmation message will display

display & invited Suppliers will
will receive the notification
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
9.2. Supplier response to initiative from supplier
supplier portal
Supplier received a notification. Supplier need to respond to the qualification
Supplier navigates to manage questionnaires tab on supplier portal page & search for initiative notification received
Supplier chooses the answers or enters right data for the questions under each sections
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Supplier should all sections or all mandatory questions against all sections
In case if there are any branching questions, supplier needs to answer all branching questions with relevant
answers against each question
Supplier will submit the response after completion by click on button Submit icon at header.
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
9.3. Accept respon

response
se by Supplier Man
Manager
ager (buyer)
 Buyer will receive a notification once suppli
suppliers
ers submitted
submitted the responses to initiative.
 Buyer will navigate to supplier qualification
qualification m
module
odule w
workb
orkb ench & search for qualification w
which
hich is
answered by supplier.
 Buyer can evaluate the responses
responses from the supplier & accept the responses before evaluation.
Buyer accept the response from response
Buyers validate the responses & accept the qualification before evaluation process
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
9.4. Evalu
Evaluation
ation of qu
qualificati
alifications
ons
Once all supplier re sponses are received & accepted from supplier manager or buyer, evaluation process can be
initiated.
Buyer will select each supplier & click each qualification to evaluate
Finalize of outcomes to the qualification areas based on supplier response
Display of outcomes to each qualification areas

 Manually evaluation & choosing the outcome
outcome for each areas
 For each supplier
supplier qualification area outcome should be chosen based on response
 Once outcomes are finalized
finalized for all suppliers & qualification areas, ini
initiative
tiative status changes
changes to complete.
complete.
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Respective supplier masters will be updated will all qualifications with qualification outcome
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
10. Creation of Initiative with type – Assessment
Login into fusion application with buyer user id/ Password
Click on the navigation >> Procurement>>

Procurement>>Supplier
Supplier qualification icon
10.1. Create Initiative ttype-

ype- Assessment and launch
In Supplier qualification workbench click on link “Create Initiative”

QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Select type as Assessment for the suppliers who needs to be assessed
In overview tab, define title, select qu alification model, supplier, sites & contact etc & click on Evaluation team tab
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Select the evaluation team members,

members, who can also act as inter nal responders. Click on Next
Under configuration tab, validate th e qualifications vendors etc. Click on Next

Next
Validate the question which can be answered by supplier by selecting supplier radio button
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Validate the question which can be answered by internal r esponder by selecting internal radio button
Review the data before publish the questionnaires and click on Launch
Confirmation message after launch

QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
10.2. Supplier response to initiative from supplier portal
Supplier received a notification. Supplier need to respond to the qualification
Supplier navigates to manage questionnaires tab on his supplier portal page & search for initiative received in
notification
Supplier chooses the answers or enters right data for the questions under each sections
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Supplier should all sections or all mandatory questions against all sections
In case if there are any branching questions, supplier needs to answer all branching questions with relevant
answers against each question
Supplier will submit the response after completion by click on button Submit icon at header.
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
10.3. Response from iinternal

nternal user for q ualification question
Click on Manage Questionnaires
Search for internal questions to answered
Submit the response received from suppliers or internal answers accordingly

QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
10.4. Accept respon

response
se by Supplier
S upplier Manager (buyer)
 Buyer w
will
ill receive a notification once suppliers & internal responder subm
submitted
itted the responses to initiative.
 Buyer will navigate to supplier qualification
qualification m
module
odule w
workbench
orkbench & search for qualification which is
answered by supplier & internal responder.
 Buyer can evaluate the responses from the supplier & internal responders.
 Accept the responses submitted from suppliers & internal responder
responder before
before evaluatio
evaluation.
n.
Buyer validate the response from supplier
Buyers validate the responses & accept the qualification before evaluation process
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Confirmation message post acceptance
Internal response acceptance by supplier manager
Acceptance of internal response by supplier manager (Buyer)

QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
10.5. Evalu
Evaluation
ation of qualifications
Once all responses are received & accepted from supplier manager or buyer, evaluation process can be initiated.
Buyer will select each supplier & click each qualification to evaluate
Finalize of outcomes to the qualification areas based on response
Display of outcomes to each qualification areas

Manually evaluation & choosing the outcome
outcome for each areas
 For each supplier
supplier qualification area outcome should be chosen based on response
 Once outcomes are finalized
finalized for all suppliers & qualification areas, ini
initiative
tiative status changes
changes to complete.
complete.
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
In supplier master, under qualifications tab qualification outcome will update respectively
QUALIFICATION
ION M
MANAGEMENT
ANAGEMENT
Oracle Corpo
Corporation,
ration, World Headqu
Headquarters
arters Worldwide Inquirie
Inquiries
s
500 Oracle Parkway Phone: +1.650.50
+1.650.506.7000
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ores, CA 94065, USA Fax: +1.650.506.7200
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White Paper Title
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Author: Manish Nandees
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Supplier Qualification Management (SQM)

ORACLE WHITE PAPER | OCTOBER 2016

SUPPLIER QUALIFICATI ON MANAGEMENT

2.1. Create initiative

2.2.1. Create and ma

2.2.2. Create and ma

2.2.3. Create and ma

2.4. Accept/Reject re sponse 8

2.6. Monitor supplier qualification activity 8

1 | SUPPLIER QUALIFICATION MANAGEMENT

9. Creation of Initiative with type – Qualificat

9.1. Create Initiative type- Qualification and launch 31

9.3. Accept respons e by Supplier Manage

10. Creation of Initiative with type – As

10.4. Accept respons e by Supplier Manage

2 | SUPPLIER QUALIFICATION MANAGEMEN

The key challenges to maintain the suppliers as follows:-

c) To unify the supplier information

d) To manage and adhere to compliance an

e) To support procurement process u

f) Adhered to all standards, laws and regulations

3 | SUPPLIER QUALIFICATION MANAGEMEN

Life cycle of qualification management

Above diagram explains

4 | SUPPLIER QUALIFICATION MANAGEMEN

5 | SUPPLIER QUALIFICATION MANAGEMEN

2.2.2. Create and manage qualification areas

6 | SUPPLIER QUALIFICATION MANAGEMEN

2.2.3. Create and manage qualification models

Example of qualification Model

2.3. Respond to questionn

7 | SUPPLIER QUALIFICATION MANAGEMEN

2.4. Accept/Reject response

2.6. Monitor supplier qualification activity

2.7. Requalify suppliers

8 | SUPPLIER QUALIFICATION MANAGEMEN

9 | SUPPLIER QUALIFICATION MANAGEMEN

role the Since

Perform what actions

Expose of questionnaires during supplier registration

This integration between

Supplier registration Rule set

Rules based on the condition

User can activate or Inactive by click on above button

After the supplier registration request

Change request configuration

Supplier profile change request approval workflow,

8.1. Question creation

Task: Manage Supplier Questions

Navigate to respective implementation project & select the task

Click on create new

Question levels can be restrict either at supplier or supplier site level

Response answers can be given by suppliers or from internal buyers

Buyer can control the parameters for each question

Buyer can define dependent question via branching conditions

Task: Manage Question Area

Navigate to respective implementation project & select the task

Define relevant area name

 Qualification outcomes are set to question area defined.

 Save the qualification area

Task: Manage Question Models

Navigate to respective implementation project & select the task

Enter qualification model name