<Insert Picture Here>

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
<Insert Picture Here>

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

<Insert Picture Here>

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

57

58