Oracle Corp has released a new software solution designed to optimise the extended supply chain through the creation of closer and more strategic supplier relationships.
The Oracle Strategic Procurement suite is designed to empower organisations to acquire goods and services at the best value - based on price, quality, delivery and customer service.
By utilising the Internet to decentralise and automate purchasing transactions, procurement professionals can focus on value-added tasks such as procurement analysis, giving them the business intelligence to negotiate better contracts, says Steyn Snyman, a specialist consultant at Oracle Corp SA.
"Oracle Strategic Procurement has saved organisations up to 20% and more on purchases, while cutting the time to place orders by up to 50%," he says.
Oracle`s Business Intelligence System (BIS) and Oracle Purchasing Intelligence solutions are integral to the Strategic Procurement suite and give users on-line access to supplier and commodity spending data from a company-wide perspective.
"This visibility allows users to set up the right contracts with the right suppliers, and to monitor internal and supplier compliance," stresses Snyman.
"Supplier performance can be measured against targets for cost, quality, and delivery. This information enables companies to focus their procurement resources on controlling the supply base and getting the largest, fastest return.
"In addition, more collaborative relationships and ongoing communication ensures that manufacturer and vendor work together to jointly satisfy each other`s requirements, with a particular emphasis on streamlining labour requirements," notes Snyman.
Another key element in Oracle`s Strategic Procurement suite is the Oracle Web Suppliers module, an important enabler in the sourcing process, according to Snyman.
"It allows users to post requests for quotations for supplier review and response on the Internet. Once the source is identified and terms have been finalised, users can define sourcing rules to properly channel buying activity.
"Oracle Purchasing also supports contract buying and minimises maverick buying with Oracle Web Requisitions and online supplier catalogue access.
"This facilitates the enforcement of buying preferences and reduces contract leakage."
Snyman says that with agreements and supplier catalogues in place, the next step is to automate the procurement processes.
"Oracle Purchasing is workflow-enabled, enabling the entire plan-to-procure-to-pay process to be defined and streamlined.
"For example, this process can be used to identify document approval routings or to determine whether a supplier should be paid on receipt of goods or receipt of invoice," he adds.
"This enables users to eliminate all non-value-added steps, while increasing procurement efficiency and reducing administrative effort and cost."
In a related announcement, Oracle has revealed that more than 200 companies have recently purchased Oracle Strategic Procurement, including major companies such as Boeing, Hitachi Data Systems, Dun & Bradstreet, Xerox, Novell and GE Power Systems, to effectively reduce their total purchasing costs for production materials, MRO materials, administrative supplies and services while helping them move to an e-business model.
Oracle Strategic Procurement is the leading e-business procurement solution available today, and the only procurement solution to effectively support the entire requisition-to-procure-to-pay lifecycle for companies in all market segments; from manufacturers to distributors, service companies and public sector entities.
The complete solution offers Internet-based self service purchasing, the broadest content management strategy, procurement intelligence, 100 percent lifecycle automation, strategic sourcing, on-going supplier certification and management and supplier collaboration tools.
This solution is enhanced by integrated offerings from key content management companies such as TPN Register, LLC, and Requisite Technology.
Share
