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New Solution Quickly Connects Enterprises with Thousands of Suppliers for Better Spend Management
Supplier enablement—the ability to establish connections between self-service procurement systems and suppliers—is essential for closely managing spending and reducing costs. But until now, many organizations have not had the resources to connect with scores of smaller and regional suppliers that collectively represent a significant percentage of their transactions.
Dan Ashton, Oracle’s principal product director of Procurement Marketing, explains that Oracle now offers a combination of software and services to help enterprises easily establish the connections they need to more closely manage procurement spending.
Q: Why is supplier enablement so important today?
A: It’s simple: people won’t use a self-service procurement system if it is not connected to most of their relevant suppliers. If end users don’t find the products they need in the system, it won’t have value to them. Maverick buying will result, less spend will be managed, and the consequences are lost savings.
Q: What limits organizations from connecting with all the necessary suppliers?
A: It’s a matter of resources, time, and IT complexity. Large suppliers are very sophisticated and may have the ability to hook into customers through direct integrations with their systems, typically through electronic data interchange or extensible markup language (XML). Small companies can connect through a supplier portal, where they can view and manage transactions. That leaves a forgotten middle tier that are too small and may not have the resources to connect into a supplier network in an automated fashion, but have sufficient volume of business to make using a manual supplier portal cumbersome. This tier of suppliers is less likely to be enabled, which means that, potentially, up to 90 percent of an enterprise’s suppliers aren’t being managed in terms of spend.
Q: What’s the answer?
A: Oracle now offers an important solution that combines Oracle Supplier Network, with Oracle iSupplier Portal, or Oracle Fusion Supplier Portal, or Oracle PeopleSoft eSupplier Connection and services and solutions delivered by Oracle partners such as Transcepta that enable supplier/network connections. Oracle Supplier Network provides a free way to connect with a core group of suppliers that support XML and have the IT resources to establish the connection. A supplier portal provides transaction management for small suppliers.
For customers that would like to connect thousands of suppliers as opposed to only their top 20, Oracle partners such as Transcepta can enable all suppliers with an automated connection, regardless of sophistication level, system, or transaction volume. This means customers can finally connect the forgotten middle tier—gaining a greater ability to manage spend. Plus, Transcepta can provide value-added tax compliance where required.
Q: What makes this solution different?
A: Most companies enable only a handful of top suppliers. Organizations using Oracle Procurement solutions can quickly enable a wide range of suppliers—from the largest companies to smaller firms—and do so in a very cost-effective way.
Download a white paper about the solution and get details about Oracle Supplier Network.