INFORMATION INDEPTH NEWSLETTERS
On Demand Edition
March 2009

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Oracle Sourcing On Demand Now Available as Software as a Service

Oracle's strategic sourcing application is now available as a software as a service solution—an alternative for companies that want to jump-start sourcing programs while avoiding up-front capital expenses.

With Oracle Sourcing On Demand, companies pay a monthly per-user fee (including the license, support, hosting and software management), and the software will be run at Oracle On Demand’s Austin Data Center. Oracle On Demand is responsible for system administration, application maintenance, and patching. Users will also benefit from training and functional help desk services.

Some observers believe the option for quickly deploying sourcing applications is especially important in today’s economy because it means procurement agents will be better able to enforce the purchasing discounts they negotiate with suppliers.

"It's not enough to just negotiate discounts with suppliers. To really save money, your company has to enforce those agreements when it's actually buying supplies," says Chris Farinacci, Oracle vice president of applications marketing.

Industry studies show these efforts can produce savings of 14.3 percent or more in material costs.

Oracle Sourcing On Demand provides pre-configured integration with back-end Oracle procurement systems. For example, Oracle Sourcing On Demand customers will be able to "push" negotiated pricing into blanket purchase agreements of back-end purchasing systems. So when a procurement agent enters a new order, the price negotiated in Oracle Sourcing On Demand will automatically appear on the purchase order.

Oracle is in talks with third-party companies to provide related services for Oracle Sourcing On Demand subscribers, including sourcing-specific help desks, training, and strategic consulting.

Read the Oracle Sourcing On Demand press release.

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