Supplier Management Overview

2. Supplier Management Overview Basier Aziz, MDM Product Strategy

3. Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

4. Supplier MDM Solution Overview • What is it • Business Drivers • Supplier Hub Solution • Consolidate • Cleanse • Govern • Share • Q&A

5. Introducing Oracle Supplier HubWhat Are We Offering? Suppliers Buyers • Supplier Lifecycle Management • Identification • Qualification and On-boarding • Maintenance and Assessments • Obsolescence • Supplier Hub • Consolidates & maintains accurate Supplier master information across the enterprise • Distributes as a single point of truth to all operational & analytical applications Trusted Supplier Data

6. Business Cases Chinese Networking & Telco solutions provider Large US retailer Consolidate Supplier records from multiple systems to implement corporate responsibility program Why: Evaluate supplier performance to complement sourcing activities • 24,000 Supplier records to be mastered in supplier hub • Complement existing Product hub forming a full MDM solution • Assessing supplier performance: • Defining criteria for evaluation • Defining evaluation plan • Generating evaluation report What: • Strong value proposition with combined Product Hub and Supplier Hub So What: • Synergies with EBS Procurement portfolio

7. How much does decentralized data cost you? In 1 Hour… • 240 businesses will change addresses • 150 business telephone numbers will change or be disconnected • 112 directorship (CEO, CFO, etc.) changes will occur • 20 corporations will fail • 12 new businesses will open their doors • 4 companies will change their name* *Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics, Gartner, A.T Kearney, GMA Invoice Accuracy Study

8. What can centralizing the data do? EBS Reduce • purchase order errors • payment errors • sourcing cycle time • new product introduction cycle time • order to cash time • receipt and return processing errors • supplier-related financial risks • supplier-related collaboration costs • non-compliance risks • supplier information lookup times • report generation costs • costs by sun-setting legacy applications • MRO spending per employee • … Ariba Transportation SAP Custom Apps Trusted Master Data BI

9. Value Proposition for a Supplier Data Solution • to track & optimize enterprise spend • to monitor and to implement standards and regulations • to manage suppliers across the trade lifecycle

10. Value Prop 1: Track & Optimize spend ? ? ? ?

11. Value Prop 1: Track & Optimize spend • Clean, trustworthy data creates visibility into spend • Visibility into spend creates opportunities for reducing costs

12. Value Prop 2: Monitoring and enforcing Standards • Child labor • Environmental Standards • Minority-owned Businesses • Women-owned Businesses • HUBZone • Carbon footprint • etc.

13. Value Prop 3: Streamlining Supplier-related Processes • Stages in the relationship • Discovery • Vetting (Risk Assessment) • Trading • Re/evaluations • Obsolescence • Supplier Self-Management

14. Analytical Systems Dashboards EBS DW SAP Site BI &Datamarts Planning Custom Apps Financial Consolidation External Apps Budgeting Oracle Enterprise Master Data ManagementThe most complete MDM offering on the market today Data Governance Manager Operational Systems Analytical MDM Operational MDM Apps Siebel Customer Supplier Product Financial Analytical PeopleSoft Oracle Customer Hub Oracle Supplier Hub Oracle Product Hub Oracle Site Hub Oracle / Hyperion Data Relationship Management JDE Application Integration Architecture Oracle Fusion Middleware

15. Customer Hub EBS EBS Peoplesoft Supplier Master Data Peoplesoft SAP Custom Apps SAP BI Custom Apps Other Supplier Management Leverages Established e-Business Suite Products 5 - 10 Years Experience TCA Relationships Hierarchies Match/Merge D&B Enrichment Address Validation Product Hub Advanced Search User Defined Attributes Procurement Vendor Master Supplier Self-Service RFIs/Deliverables

16. Supplier Management: the Solution Trusted Master Data

17. EBS Peoplesoft SAP Custom Apps Other Oracle Supplier HubLeveraging Proven MDM Infrastructure EBS Peoplesoft Trusted Master Data SAP Custom Apps BI • Consolidates & maintains complete, accurate and authoritative master data across the enterprise • Distributes master information to all operational & analytical applications just in time • Master Data Hubs enable organizations to • Govern data centrally, Risk & Improve Compliance • Optimize Business Processes • Rapidly deploy new applications • Know their Suppliers. • Synchronize with Partners and Spoke Systems • Provide solid foundation for accurate Spend Analysis

18. Oracle Supplier Hub:Master Master TrustedSupplier Data Attributes Relationships Classifications Documents Locations Govern Trusted SupplierData Share Consolidate Cleanse

19. Unstructured Data Extended Profile details Standard Profile details • Unstructured Data • Word, Excel, PDF, etc. • Common • Applicable to All Suppliers • Organization • D-U-N-S Number, Legal Structure, • Incorporation Year, Chief Executive Name • Total Employees, Annual Revenue • Business Classifications • Products and Services… • Supplier Type • Examples: Services, Distributor, Contract Manufacturer • … • Banking Details • Account Number, IBAN, Currency, Type • Bank Name, Branch Name • … • Business Classification • Examples: Women Owned, Small Business, Minority Owned • … • Purchasing Terms and Controls • Ship-To Location Bill-To Location Ship Via • Pay On, Freight Terms • … • Products & Services • Examples: Temp Labor, Professional Services, Raw Materials • … • Invoicing Terms and Controls • Invoice Currency, Amount Limit • Match Options, Tolerance • Hold Options (All,Unmatched,Unvalidated) • Payment Terms, Terms & Pay Date Basis • … • Address Country • Examples: US, China, India • … • User Defined • Examples: High Risk, Premium • … • Payment Controls • Method, Delivery Channel • Payment Format, Settlement Priority • … Groupings Questionnaires • Receiving Controls • Receipt Routing, Match Approval Level • Quantity Tolerance, Days Early/Late Receipt • … • Groupings • Relationships (e.g. subsidiary) • Hierarchies (e.g. D&B) • Classifications • Questionnaires • Questionnaires (Supplier & Internal) • Deliverables • Tax Details • … Supplier Repository Supplier Hub

20. Oracle Supplier Management:Consolidate Govern Consolidate Import Workbench Siebel EBS Trusted Supplier Data Identification & Cross-Reference Share SAP GDSN Blended Record Other Cleanse

21. Supplier Import WorkbenchConsolidate, Cleanse, Enrich Data Quality Management tools Spoke Enrichment De-Dup Spoke Thomson Spoke Supplier Master Experian Multiple heterogeneous legacy systems containing highly inconsistent sets of supplier data

22. Supplier Repository SingleBlended Record Cleanse & Match Batch WSDL Data ImportAggregate Product Data from Multiple Sources into Repository XML D&B End User Keyed Suppliers Online Web Service Internal & External Source Systems Legacy Apps Bulk Load 3rd PartyApps Generate “what if” reports forpre-import analysis

23. Supplier Data Quality ManagementBlended Supplier Profile Source 1 Purchasing Source 2 Payable BlendedRecord US $1.1M US $1.1M Revenue # of Employees 20,000 21,000 21,000 Business Classifications Small Bus. HubZone Small Bus., Hub Zone Product and Services Desktop Laptop Desktop, Laptop Invoicing Terms Net 45 Net 42 Net 42 • Create data blending rules and combine all data sources • Display “single source of truth” blended record to end users

24. Supplier Import ManagementSource System Management • Data Hub provides Source System Management (SSM) • Registration & cross-reference map tracking for connected source (spoke) systems • Synchronize primary supplier definition across multiple spoke systems Identifier B: 8808 Identifier A: BB253 A B Supplier Hub Master

25. Oracle Supplier Management :Cleanse Govern Trusted SupplierData Share Consolidate Cleanse Standardize Validate Parse Enrich Match & De-Duplicate

26. Data Certification Party Purge • Add structure to record creation & update process • Promote user confidencein data • Remove unwantedrecords to reducedata volume Data Quality Tools Broad Data Quality ToolsMaintain Clean, Accurate Enterprise Customer Data Address Validation * Matching Engine Duplicate Resolution • Run exhaustive searches using customizable engine • Identify duplicates and prevent future occurrences • Merge records and all associated entities and transactions • Extend merge routines to handle data extensions • Based on OAG Standards • Leverage pre-built adaptors from leading address validation vendors Standardize* Profiling* • Create structured records from less structured data • “Inc.” -> “Incorporated”, • “Holmes, Santonio” -> “Mr. Santonio Holmes • Deduce meaning from unstructured patterns • Tel# is null 30% • 25% of FName has 1 char *Additional Option

27. Supplier Data EnrichmentEnrich Out-of-the-Box D&B Integration • Enhance existing Supplier party records with pre-built integration • Search D&B for a supplier whose information the user would like to import • D&B Information includes • Credit & Risk info • Relationship & Hierarchy info • Summary information • Supplier Evaluation scores • Supplier Risk Analysis • Import data in real-time or batch mode Out-of-the-Box Trillium Integration • Address Matching and Cleansing • Validation code returned that indicates match confidence

28. Govern Supplier Self-Service Surveys Workflow On-Boarding Trusted SupplierData Share Consolidate Cleanse Oracle Supplier Management : Govern

29. Supplier Profile ManagementSupplier User Defined Profile Attributes Business References Reference Name, Contact, Bus. Volume, Yrs of Bus Insurance Information Worker Compensation General Liability Automobile Liability Widgets, Inc. (Supplier) Supplier Organization Level UDA (Supplier Party) Compliance Information RoHS Compliant, WHEE Compliant Quality Control Procedures Follows Documented Quality Control Process Quality Instructions Easily Accessible Process Adherence Audits Supplier Address / Party Site Level UDA (Supplier Party + Supplier Party Location) Production Capacity Machinery, Average Capacity, Max. Capacity WI, New York, US WI, Shanghai, China Supplier Site Level UDA (Supplier Party + Supplier Party Location + Buyer Operating Unit) Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Freight Forward Detail Vision, Atlanta, US Operating Unit Vision, Dallas, US Operating Unit, Inventory Organization Transaction Qualitative Evaluation (BI Summary) Receipt Qualitative Evaluation PO Change Qualitative Evaluation Invoice Qualitative Evaluation Vision Computers (Buyer) Vision, San Francisco, US Operating Unit

30. Supplier Profile ManagementSupplier Profile Attribute Access Control Widgets, Inc. (Supplier) Supplier Attributes: Extended Profile Attributes Standard Profile Attributes Values: Standard Buyer Strategic Buyer Supplier User Administrator

31. Supplier ManagementNew Supplier Qualification and Onboarding – Supplier Walk-in Registration Submit Request Information Suppliers Prospective/New Supplier Registration Request Notification Relationship Contract Submit Questions (Resubmit) Commodity Manager Sync Supplier Profile Add Profile Information Approval Process Review Receive Packet Qualified and Approved Return/Reject Questions Finance / Legal Expert Add Credit Evaluation Credit Evaluation Review Return/Reject Questions Contract Manager Add Risk Evaluation Risk Evaluation Review Return/Reject Questions Add Prospect Party Site Evaluation Prospect Party Site Evaluation Compliance Officer Review

32. Existing Supplier EvaluationSupplier Qualitative Evaluation and Assessment RFI Evaluated Suppliers Widgets, Inc. Gadgets, Inc. Evaluators Is Supplier flexible during negotiations? Is Supplier responsive? Yes Any Quality complaints? No 2 Buyer Ben Overall Supplier Satisfaction 4 Is Supplier flexible during negotiations? Is Supplier responsive? Yes Any Quality complaints? No Buyer Santonio 2 Overall Supplier Satisfaction 5

33. + OU1 OU2 OU3 * Self-Service Supplier Profile Management • Data Hub Admin reviews &promotes to Supplier Hub Banking Info Attachments • Supplier updatesprofile details Contact Details Supplier Locations Business Classifications / Product & Service Details • Updates applied across multiple operating units * Supplier Lifecycle Management Option

34. Single UI Access to Supplier Information Hierarchies Data Quality D&B Standard Profile Data & User Defined Classifications User Defined Attributes

35. : Supplier Profile ManagementSupplier Profile Advanced Search

36. Oracle Supplier Management:Share Govern Share Users Access &Search Siebel Trusted SupplierData Publish &Subscribe EBS Consolidate Registry SAP Transports &Connectors Custom Apps Reporting BI Cleanse

37. Supplier Data PublicationPublish Supplier Data to Spoke Systems Infrastructure to Publish ‘Supplier Master’ data from Hub Synchronize Business Events Webservices/APIs Spoke Publish Synchronize Spoke Synchronize Supplier Hub Master Spoke

38. Value Proposition: THE Supplier Data Solution • to track & optimize enterprise spend • to monitor and to implement standards and regulations • to manage suppliers across the trade lifecycle

39. Q & A

40. Appendix