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New Oracle Sourcing On Demand Offering Enables Rapid Cost Cutting
Oracle’s widely used Oracle Sourcing application is now available in an Oracle-hosted version, offering an alternative for companies that want to jump-start sourcing programs while avoiding up-front capital expenses.
With Oracle Sourcing On Demand, companies can pay a monthly per-user fee for the application, which runs at Oracle On Demand’s Austin Data Center. Oracle On Demand will be responsible for system administration, application maintenance, and patching. Users will also benefit from training and functional help-desk services as well as access to the latest versions.
The option to quickly deploy 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 Ramchand Raman, director of Oracle E-Business Suite Product Management for Procurement and Supply Chain.
Industry studies show these efforts can produce savings of 14.3 percent or more in material costs versus offline sourcing processes.
Oracle Sourcing On Demand provides preconfigured integration with back-end Oracle procurement systems. For example, the application can “push” negotiated pricing into blanket purchase agreements of back-end purchasing systems. When a procurement agent enters a new order, the price negotiated in Oracle Sourcing On Demand automatically appears on the purchase order.
Additionally, Oracle is working with third-party companies such as Archstone Consulting and e-Three to provide related services for Oracle Sourcing On Demand subscribers, including sourcing-specific category expertise, training, and strategic consulting.
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