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PeopleSoft Services Procurement
Marc Cagigas
Senior Manager, Procurement Product Strategy
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 Oracles
products remains at the sole discretion of Oracle.
Agenda
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Overview and Trends
PeopleSoft Services Procurement Solution
Whats New in Release 9
Why is Goods Procurement Important?
60%
Automate Procurement Processes
43%
Improve Compliance
27%
Reduce Transaction Costs
25%
Improve Spend Visibility
Centralize Procurement Processes
Reduce Maverick Spend
0%
23%
20%
20%
Source:
40%
60%
80%
September, 2006
Procurement Best Practices
Best Practice
Benefit
Maximize Self-Service
Focus on strategic
activities
Enforce approval and
tendering policies
Establish and monitor
spend objectives
Utilize Procurement
Cards
Enable timely user
actions through proactive
notifications
Gain visibility and control
over spending
Improve internal policy
compliance
Maximize contract spend
Leverage supplier base
Improve productivity
Payables Best Practices
Best Practice
Benefit
Eliminate paper invoice
(use ERS, web-invoicing,
XML/EDI)
Improve internal policy
compliance
Enable supplier selfservice
Leverage auto-matching
rules
Enable duplicate
invoice/vendor setup
checking
Limit non-PO invoices
Improve productivity
Improve accuracy
Take advantage of
payment discounts
Reduce supplier
inquiries, increasing time
analysts can spend on
more value-added
projects
What Customers are Achieving
reduced MRO item costs by 20%
sourced 50,000 items and reduced costs by 20%
increased purchasing volume discounts by 5%
reduced purchase order cycle time by 75%
reduced purchase order processing time by 86%
reduced purchasing processing costs 89%
saved over $11M from Procurement & other apps
saved over $1.1M annually via integrated procurement
Thompson
Travel
Group
saved over 25% on indirect goods purchases
implemented internet procurement in only 60 days
Time to Expand Your Spend Management?
Future improvements in goods procurement can be
expected to be modest.
Pressure for further cost reduction and performance
improvement remains robust.
Fortunately, a relatively large and untapped area for
improvement exists services.
Request
GOODS
SERVICES
Approve
Purchase
Order
Inventory
Source
Work
Order
Order
Approval
On-Board
Off-Board
Analyze
Dispatch
Invoice
Manage T&E/
Progress Logs
Receive
Change
Request
Returns
Payment
ePro and sPro
Powerful Combo to Manage Goods and Services Spend
Capability
10
ePro
sPro
Powerful, easy to use self service capability
Configurable, flexible approval workflow
Simple services
x*
Integration with Enterprise ERP suite
Easy to use catalogs for purchasing indirect goods
Integration with Resource Management, TAM and HCM
Competency based requisitions
Integrated sourcing and bidding for Services
Services specific workflow items like interviews, onboarding/offboarding
Third party VMS integration
Integrated, rules based time reporting, progress reporting and expense reporting feeds
back to projects and financials
Integrated self billed invoicing
Services Procurement Trends
What Experts Are Saying
Service spend averages $1.8B for the typical Fortune
1000 company (11% of revenue or 31% of spend)
Procurement manages only 52% of services spend
Outsourcing in the U.S. is growing by 24% annually
Average cost to hire a contractor is $4,500
Over 60% of services invoices are inaccurate
11
Services Procurement Trends
What Your Peers Are Saying
Importance of services
among supply chain
activities
Source: Aberdeen
12
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The CPOs Agenda Report
AberdeenGroup 2005
procurement executives have made increasing
spend under management one of their top three
initiatives. These executives will focus on
expanding the volume and breadth of spend under
management of the procurement group. Services
are viewed as top categories for improvements.
enterprises are transitioning more spend and
categories under procurements oversight. Each
new dollar put under procurements control yields a
5% to 20% savings.
13
Understanding Services Procurement
Services Procurement At-A-Glance
Procurement
Source services
Identify preferred suppliers
Negotiate master agreements
Aggregate / analyze enterprise spend
Service
Requestor
Human
Resources
Initiate service order
Specify service
Recruit and onboard
Services Suppliers
requirements
Review and select
candidates
Track deliverables
Finance
14
selected candidates
Track supplier skills
and job performance
Plan and budget for services
Reconcile and settle invoices
Manage time cards
Track expenses against projects / budgets
Business Challenges
Manual, Paper - Based Processes
Service
Requestors
Service Requests /
Purchase Orders
Quotes, Invoice, Global Contracts /
Expense Reports Master Agreements
HR & Project
Management
Service
Providers
Time Cards /
Service Receipts
Legal &
Finance
Budgets &
Expenses
HR & Project
Records
Departmental Systems
Informal Provisioning
15
Off-contract spending
Rampant billing errors
Variable quality
High costs
Lack of Visibility
Poor Collaboration
Contract / order /
Quotes, orders,
regulatory compliance
Expenses vs. budget
Service delivery details
Performance metrics
timecards, invoices, etc.
Work assignments
Project status and
completion
Understanding Services Procurement
Services Categories
Fixed Price Services
Facilities Maintenance
Retainer-Based Services
Legal Services
Print Marketing
Business System Support
Resource-Based Services
Administrative Support
Defined Deliverables
Construction
Contingent Labor
Software Development
Time and Materials
Consulting
Service Level-Based
Communications
Training
Business Apps Hosting
Variable Cost and Contract Structures Contribute to
Services Procurement Complexity
16
Business Objectives
Performance Management
Services Management
Verify that the services rendered are
Gain visibility and control of services
the same as the services requested
spend, future commitments, and
approvals
Improve contractor performance
Ensure that only approved service
and requestor satisfaction
providers are being used
Services
Procurement
Compliance and Oversight
Ensure compliance to master
agreement rates, terms, conditions,
and service levels
Enforce internal policies and regulatory
requirements
17
Supplier Performance
Minimize invoicing discrepancies and
maximize discounts
Ensure competitive rates within
established budgetary limits
Getting Started with Services Spend
Asses your services spend opportunities
Take on the whole enchilada, probably too big
Take an incremental approach; Target area(s) of service(s)
Get wins that can provide justification for larger rollout
Partner with other organizations to drive the strategy
For example, IT or HR
You have shared interest in Services Procurement
Get executive sponsorship
Enable the process with the right tools and technology
18
Oracles Applications Strategy
Applications Unlimited For PeopleSoft Enterprise
Oracles plan to continue providing ongoing enhancements
to current PeopleSoft Enterprise applications beyond
the delivery of Oracle Fusion Applications
FUSION
19
Latest Release
Next Release
Version 9.0
Version 9.1
Unlimited
Unlimited
Continued Product Releases
How Do Customers Participate
SRM Product User Group
One on one customer meetings
Services Procurement Special Interest Group
20
PeopleSoft Services Procurement
Experienced In Services Procurement
Launched the first product in 1999
Complete end to end Services Procurement solution for contingent
labor and complex services
Robust integration with the PeopleSoft enterprise
Solution is designed to meet the requirements of complex global HR
contingent labor procurement
Strong heritage in Human Capital Management
21
Peoplesoft Enterprise SRM
The Integrated Suite that Dramatically Cuts All Supply Mgmt Costs
Demand
Collection
Reduce Spend on Goods and Services
Spend
Analysis
Category
Management
Online
Sourcing
Indirect
Goods
Orders
Streamline Procurement Processes
Services
Approval
Routing
Engineered
Goods
Direct
Materials
Oracle company confidential, 2005
Touchless
Buying
Supplier
Portal
Logistics
Automated
Payment
Supplier
Network
Budget-Based
Procurement
Contract
Management
22
Supplier
Collaboration
Settlement
Supplier
Performance
Enforce Policy Compliance
Profile
Management
eProcurement
Self Service Focus
Catalogs
Request Manager
Desktop Receiving
Change Request
Services Procurement
Self Service Focus
Skills-based Job Templates
Onboarding/Offboarding
Agreement Enforcement
Time & Expense Tracking
Consolidated Invoicing
Purchasing
Professional Focus
Contracts
Vendor Rebates
Change Order
RFQs
Central Receiving
23
Best Practices
Spherion
FIRST AND ONLY
SRM provider certified by the
Hackett Group for embedding
best practices
business process.
24
Services Procurement Integration
SRM
eProcurement
Services Procurement
ESA
Config. Base Data
Projects
Strategic Sourcing
Create Request
Purchasing
eSupplier Connection
Source
eSettlements
Negotiate Contract
SCM Data Warehouse
Financials
Accounts Payables
General Ledger
25
Resource Mgmt
HCM
Person ID
Create Work Order
Approve T&E/
Deliverables
TAM
Competency Mgmt
Org Hierarchy
Generate Invoice
HCM Warehouse
PeopleSoft Services Procurement
Reduce Cost And Services Spend
Improve Efficiency in Services Management and Billing
Create Visibility into Services Spend
26
PeopleSoft Enterprise Services Procurement
Requestor
Request
Source
Procure
Centralized Information
Secure
Access
Approved suppliers
Global agreements and contracts
Certifications and competencies
Real-time performance
Human Resources
Recruit candidates
Share contractor
performance
Onboard candidates
27
Manage
Standardized Templates
Service
requisition
Work order
Time reporting
Projects
Project status
Track expenses
Settle
Analyze
Service
Providers
Supplier Collaboration
Respond to RFx / bid
View WOs & time cards
Monitor performance
Financials
Electronic bill
presentment
Manage compliance
PeopleSoft Enterprise Services Procurement
Requestor
Request
Source
Procure
Centralized Information
Secure
Access
Approved suppliers
Global agreements and contracts
Certifications and competencies
Real-time performance
Human Resources
Recruit candidates
Share contractor
performance
Onboard candidates
28
Manage
Standardized Templates
Service
requisition
Work order
Time reporting
Projects
Project status
Manage resources
Track expenses
Settle
Analyze
Service
Providers
Supplier Collaboration
Respond to RFx / bid
View WOs & time cards
Monitor performance
Financials
Electronic bill
presentment
Plan and budget
Manage compliance
sPro Requisition
3 Step Requisition
29
sPro Requisition
Choose Service
30
sPro Requisition
Candidate Screening
Competency Based Service Requisitions
31
sPro Requisition
32
End-to-End Process Automation
33
PeopleSoft Enterprise Services Procurement
Requestor
Request
Source
Procure
Centralized Information
Secure
Access
Approved suppliers
Global agreements and contracts
Certifications and competencies
Real-time performance
Human Resources
Recruit candidates
Share contractor
performance
Onboard candidates
34
Manage
Standardized Templates
Service
requisition
Work order
Time reporting
Projects
Project status
Manage resources
Track expenses
Settle
Analyze
Service
Providers
Supplier Collaboration
Respond to RFx / bid
View WOs & time cards
Monitor performance
Financials
Electronic bill
presentment
Plan and budget
Manage compliance
sPro Sourcing
Choose Requisition To Source
35
sPro Sourcing
Select Vendors
36
sPro Sourcing
37
PeopleSoft Enterprise Services Procurement
Requestor
Request
Source
Procure
Centralized Information
Secure
Access
Approved suppliers
Global agreements and contracts
Certifications and competencies
Real-time performance
Human Resources
Recruit candidates
Share contractor
performance
Onboard candidates
38
Manage
Standardized Templates
Service
requisition
Work order
Time reporting
Projects
Project status
Manage resources
Track expenses
Settle
Analyze
Service
Providers
Supplier Collaboration
Respond to RFx / bid
View WOs & time cards
Monitor performance
Financials
Electronic bill
presentment
Plan and budget
Manage compliance
sPro Onboarding
39
PeopleSoft Enterprise Services Procurement
Requestor
Request
Source
Procure
Centralized Information
Secure
Access
Approved suppliers
Global agreements and contracts
Certifications and competencies
Real-time performance
Human Resources
Recruit candidates
Share contractor
performance
Onboard candidates
40
Manage
Standardized Templates
Service
requisition
Work order
Time reporting
Projects
Project status
Manage resources
Track expenses
Settle
Analyze
Service
Providers
Supplier Collaboration
Respond to RFx / bid
View WOs & time cards
Monitor performance
Financials
Electronic bill
presentment
Plan and budget
Manage compliance
sPro Time Reporting
Enter Hours
41
sPro Time Reporting
42
sPro Progress Reporting
Fixed Amount
Milestone
Percentage
Rate Based
43
sPro Progress Reporting
Milestone
Milestone
44
Pre-defined Milestone Amount
sPro Progress Reporting
Rate Based
Activity
45
Pre-defined Rate
PeopleSoft Enterprise Services Procurement
Requestor
Request
Source
Procure
Centralized Information
Secure
Access
Approved suppliers
Global agreements and contracts
Certifications and competencies
Real-time performance
Human Resources
Recruit candidates
Share contractor
performance
Onboard candidates
46
Manage
Standardized Templates
Service
requisition
Work order
Time reporting
Projects
Project status
Manage resources
Track expenses
Settle
Analyze
Service
Providers
Supplier Collaboration
Respond to RFx / bid
View WOs & time cards
Monitor performance
Financials
Electronic bill
presentment
Plan and budget
Manage compliance
PeopleSoft Enterprise Services Procurement
Requestor
Request
Source
Procure
Centralized Information
Secure
Access
Approved suppliers
Global agreements and contracts
Certifications and competencies
Real-time performance
Human Resources
Recruit candidates
Share contractor
performance
Onboard candidates
47
Manage
Standardized Templates
Service
requisition
Work order
Time reporting
Projects
Project status
Manage resources
Track expenses
Settle
Analyze
Service
Providers
Supplier Collaboration
Respond to RFx / bid
View WOs & time cards
Monitor performance
Financials
Electronic bill
presentment
Plan and budget
Manage compliance
sPro Reporting
Interactive Reports
Analyze service provider rosters.
Analyze service provider performance.
Analyze service provider length of stay.
Analyze expense life cycles.
Analyze expense variance.
Analyze supplier performance.
Compare supplier rates.
Analyze minority-owned suppliers.
48
sPro Reporting
Interactive Reports
49
sPro Reporting
Interactive Reports
50
Configurable Approval Management
Corporate Policy
Allocate spending to approved
suppliers at negotiated prices
Approval Workflow
Manage by exception
Define rules-based approval
list including amount,
requestor, department, and
project
Set tolerances for
commitments against a budget
in real-time
Perform line level requisition
Allocate costs to one or more
projects or grants
Role-Based Security
Manage view, update and approval
51
Support budget, encumbrance,
and project accounting
Validate funds availability
approvals and automate
notifications
Financial Controls
hierarchies
Control requester access to
authorized catalogs
Define controls by user, cost-center,
location, item, commodity, etc.
Accelerate
the Path
to Fusion
Deliver
Drive
Best-in-Class
Business
Processes
Superior
Ownership
Experience
Release 9 Themes
52
Release 9 Enhancement Areas
Approval Work Flow
Maintaining history on resubmit
Administrator to act on behalf of a requestor to resubmit
Reminder notification
Route to administrator when no approver exists
Time Reporting
Reporting time based on shifts
Reporting time based on assignments
Time Category override tool
Services Procurement Roles
Service Coordinator/Service Provider Combined Role
Service Coordinator Replacement Tools
53
What Customers Are Achieving
sPro Customer
automated and streamlined procurement process
saved $120,000 per month with reduced payment times
reduced prices by 10-30%
buyers now focused on strategic activities
saved 20% of spend in Food and Beverage category
reduced inventory levels by 50%
saved $1.5 $2M annually, positive ROI < 3 years
saved over $75M from contract consolidation
increased productivity led to multi-million dollar savings
54
Services Procurement Delivers Real
Value
Cost
Reduction
5-15%
Quality &
Performance
5-10%
Reduced
Risk
55
Improve negotiating leverage and lower service cost
Eliminate over-billing and increase early pay discounts
Reduce maverick spend
Reduce provisioning costs and cycle time
Increase user satisfaction
Improve service consistency and predictability
Improve contract and regulatory compliance
Manage supplier base and track supplier performance
Enhance planning and budgeting
PeopleSoft Services Procurement
More Service Spend Managed by Procurement
Reduce Cost And Services Spend
Improve Efficiency in Services Management and Billing
Create Visibility into Services Spend
56
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