How to Create A Minimal Enterprise Structure



This article describes a minimal representation of an enterprise
structure to support shared sourcing and procurement services to
requisitioners from multiple companies in multiple divisions and in
multiple countries. The document is targeted at implementation
consultants, particularly those deploying the Fusion Procurement
offering and aims to provide an introduction to the key concepts of
shared services and complement this introduction with a sample
organization representation. In addition to procurement professionals,
financial staff in the deploying enterprise will also need knowledge of
the deployment options and the reasoning behind the selection of a
particular model.

The Concept of Shared Service Centers


Shared Service Centers are corporate level organizations tasked with
conducting common operations that support the core lines of business of
an Enterprise. Technically, companies or other legally recognized
entities literally share the services, and the practice involves sharing
cost, profitability and taxation too. Informally, internal assignment of
services to businesses within an individual company is sometimes called
shared services too. The services provided can be in the areas of Human
Resources Management, Payroll, Subledger Processing, General Accounting,
Inventory Management (bonded warehouses, etc.), and Procurement. The
paper focuses on Procurement Shared Services.
Consolidating procurement services into a single procuring entity that
serves multiple business units within an enterprise could, if properly
implemented, result in the following benefits:
• Increased bargaining power, economies of scale, and cost savings
• Formation of a more focused procurement workforce
• Increase in buyer specialization and better generation of
specifications, and more accurate efficient catalog management
• Centralized and standardized Information deployed across the enterprise
• Centralized processes which could result in the reduction of
redundancy and effort duplication, and a more responsive procurement
organization

For More Details see this white paper on MOS - Setting Up a Minimal Enterprise Structure to Support Procurement Shared Services [ID 1465612.1]

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About

This blog shares with the broader Fusion Applications community instructional material in the areas of Enterprise Structures, Extensibility, Integration and Security with the a focus on implementation. This blog is updated by the Fusion Applications Implementation Solutions Task force, part of the Fusion Applications Fusion Architecture organization.

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