Oracle Fusion Procurement Online Training

Oracle Fusion Procurement Training Overview with Real Business Example

Let’s take an example of KFC Business. In order to create different varieties of KFC products, they have to buy raw material or ingredients like (Chicken, Sause, bread, Oil). KFC is not going to prepare all these ingredients, instead they will buy it from different sources. When it comes to Supply chain management, this is called Supplier. KFC will look at different supplier’s options to get a good raw material within the budget, schedule and supreme quality. This is what is called Sourcing. Based on the KFC business rules, they will select the suppliers and buy required raw material from them. After they buy a huge quantity of raw material, they will store everything in inventory. When KFC requires any raw material for their outlets, they will get it from the nearby inventory location. This is what is called transferring the goods from inventory locations to outlets. In order to get the best quality and cheaper prices, KFC will have an agreement and contracts with suppliers. Based on the agreement and contracts (Price, Schedule, and Quantities), suppliers will deliver required goods to KFC inventory locations. This is what is called Procurement.

In Procurement, we will have below mentioned sub modules. All these modules are interlinked.

• SSP (Self Service Procurement)
• Purchasing Orders (PO)
• Sourcing
• Supplier Portal (SP)
• Procurement Contracts
• Supplier Qualification Management (SQM)

SSP (Self Service Procurement) – Let’s say you are working in an organization and you need a laptop for your office use or it could be for company use like any goods/material/service, generally we send email to the manager and requesting for his approval or in ERP implemented companies we have to create requisition and that will go to manager approval after that it goes to purchasing department to process with our suppliers. 

Creating of Requisition/Request is made from the Self-service procurement application, every employee in the organization has access to create Requisition from this module

Couple of examples: 

• Creating a Requisition asking for stationary for office use.
• Creating a Requisition to provide Employee Joining Kit, etc.

In Our Oracle Fusion Procurement Online Training, we teaches you how to create different types of Requisition like Non Catalog Requisition, Catalog Requisition & Punchout Requisition where we navigate to the suppliers website and punching the product and returning back to our ERP application

Purchasing Orders (PO) – 

In Simple terms the Request made by the employees from different departments for the goods/services that has to be processed by the Procurement Department from the available suppliers in the Market.

In SSP, you raised a request for Laptop and all departments are approved for your request. Finally, it goes to your Procurement or Facility Department who can fulfill your requirement. Your Procurement team will look at your laptop specifications and look for the potential seller who can meet your requirement. Once a potential seller is identified, he can raise a Purchase order of your laptop and share it to the seller. In Purchase order, your Procurement team will add Quantity, Price, Delivery location (where do you want to receive laptop?), Delivery Date, Payment Method (Credit card / Debit Card / Cash on Delivery / After 3 months from the received date / UPI) etc. This is an overview of the Purchase order Module.

Sourcing –

After you raise a request in the SSP module, the concerned team will search for a prominent seller/vendor who can deliver your products with best price, good quality and within the TAT (Turnaround Time). Identifying the best seller who can meet our requirement is called Sourcing.

In this module, the buyer of the company goes to look for potential suppliers by starting the Bidding process and after receiving various quotes from the suppliers, they identify the best supplier who fits with our bidding process.  

Supplier Portal – 

We provide a user account to our suppliers to access our ERP application to acknowledge our purchase orders, purchase agreements and they are able to create Invoice from this portal, and this portal helps the supplier and company to maintain communication about the procurement documents.

In some cases Suppliers are having their own ERP application, in this case Suppliers may smoothly refuse to use our ERP application and their ERP application. It could double the time for them.

Procurement Contracts -

After we identified the best supplier, our Procurement team will have a contract with the supplier. In this contract, both the parties (Supplier and Procurement Team) will agree to some common points with Terms and Conditions. This contract will have a start date and End date. During this period, if our Procurement team raised any purchase order, the supplier needs to send all the items within the delivery time. Payment terms like 30 days from the date of receipt or 45 days from the date of receipt. In case, if Procurement team is ready to pay after the receipt, the supplier is going to give a discount like 3% on the item price. Who needs to pay carrier charges, which carrier (DTDC or Postal)? All these details need to be mentioned in the Procurement contracts.

Supplier Qualification Management – 

By implementing this module we can onboard Suppliers through a much more efficient way with the Qualification and Assessment process.

We can build our Requirements and suppliers should be able to Quality during the Assessment process. We can use some other party tools to evaluate supplier’s business history, how they are performing during the last 5 years and other statistics.

This is a new module which is introduced in Oracle Fusion Procurement Suite and I would recommend for the companies to implement this module for efficient vendor management.

In order to identify the best supplier among a list of potential suppliers, our Procurement team will send our requirements through Questionnaire. Below are the sample questions.

How many years have you been delivering these products or items?

• To whom you have delivered? 
• Are all your customers happy with your service? 
• Do you have any certifications like ISO or ISMS?
• How do you verify the quality of your products?
• What is the product price?

After receiving answers from each supplier, the Procurement team will validate and identify the best supplier and will consider buying products from this supplier. 

Fusion Procurement Training Course is intended to meet every individual to understand the procurement business process and how we are able to fit the modern best business practice into the Oracle Fusion Procurement Application.