The company’s Source-to-Settle team uses Oracle technology and applications to automate procurement processes, saving US$132 million annually.
“The Oracle stack enabled us to automate many of our procurement processes—for instance, 96% of our payment volumes are touchless. This results in improved staff productivity, a reduction in P2P cycle time, and improved supplier management.”
Oracle Source-to-Settle (S2S) manages all purchasing, accounts, and expense report reimbursement processes across Oracle internationally. The unit’s Global Procurement team offers sourcing, supplier management, and contract negotiation services for seven spend categories—including travel, facilities, and information technology.
To oversee global procure-to-pay (P2P) operations, Oracle S2S relied on a variety of disconnected systems and processes, some requiring manual intervention. The team decided to standardize on Oracle’s own technology stack and financial methodologies to improve supplier relations and management, reduce risk, and reap the highest return on the billions of dollars spent.
This migration would offer a set of integrated, consistent, and streamlined processes for saving money, eliminating errors, and boosting efficiency through the entire procurement chain. It would also streamline supplier on-boarding and complex purchasing processes—while enabling employee self-service procurement and automated exception-based processing.
Using Oracle’s integrated cloud applications, we automated large parts of our P2P process and improved supplier relationships.
Why Oracle chose Oracle Cloud Applications
Because Oracle Source-to-Settle needed extensive enterprise-level functionality, security, and scale, the team decided to use Oracle Cloud Infrastructure (OCI) and Oracle Cloud applications. The combined platform would support P2P processes from supplier negotiations to invoicing.
It was also crucial for the team to benefit from Oracle’s cloud migration strategies and experts. For example, the project required moving 4,000 supplier records, 5,000 open invoices, and 60,000 purchases orders to the integrated Oracle stack.
Going with an Oracle-centric cloud platform also meant regular upgrades and quarterly bug fixes. Oracle Analytics Publisher pushes regular workflow notifications to end users, so the team could take advantage of any new feature quickly. Standardizing also meant Oracle IT staffers wouldn’t need to maintain customizations or legacy applications and could focus on higher-value activities.
More than half of all Oracle P2P processes are touchless and fully automated—from invoice creation to payment, with 98% of Oracle suppliers prequalified in the system.
Oracle Source-to-Settle’s successful adoption of Oracle Cloud Infrastructure and Oracle Cloud applications streamline, standardize, and connect P2P processes and platforms. The workflows encompass supplier negotiation and contracting, through the creation and validation of purchase orders, to the issuance of receipts and invoices—all the way to procurement optimization analysis.
Overall, the Oracle P2P platform automates key procurement processes. It also enables the control of supplier expenditures, with lower risk, and significant returns on investment by now-free cash (via embedded discounting capabilities). This saves the company US$132 million annually.
The Oracle P2P cloud allows the team to automate 41% of overall procurement processes. This includes US$16 billion in third-party payments and US$3 billion in intercompany payments. Simultaneously, 96% of all payments are now also touchless—with the system guiding 86% of all procurement activities. This delivers increased staff productivity, a reduction in errors and workflow cycle time, and improved supplier management, among other benefits.
Additionally, 51% of all connected invoice processes are no-touch—from invoice creation to final payment, with 71% of all order generation now hands-free. Boosting efficiency, 65% of all invoices are electronic, with intelligent document recognition capabilities supporting streamlined and accurate invoice entry.
The system’s ease of adoption resulted in 98% of Oracle suppliers (some 35,000) going on-board and qualifying themselves online. Because of this, the system offers extensive intuitive online buying capabilities for team buyers, including mobile shopping.
Firmographic data analysis and embedded rules in Oracle Cloud Services Contracts simplify supplier guidance for on-boarding and the generation of standardized contracts. The solution also guides Oracle buyers with best-sourcing practices and helps them select the most appropriate vendors (based on historical data analysis).
The entire P2P process set is consistent and fully compliant with Oracle policies, as the system flags all exceptions. Because the Oracle P2P platform auto-generates purchase orders from pre-negotiated catalog clauses, it reduces risk and enables company growth without cost overruns. The Oracle P2P platform is also capable of recognizing and automatically processing custom invoices and unique payment requests.
About the customer
Oracle offers integrated suites of applications and secure, autonomous infrastructure in the Oracle Cloud. The company operates in 175 countries, serves 430,000 customers, and drives US$40 billion yearly revenue.