Announcing new procurement analytics capabilities from Oracle

August 12, 2021 | 5 minute read
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By Roxanne Bradley, Product Marketing Manager, Oracle

Previously posted on the Oracle Analytics blog.

Oracle’s newest pre-built procurement analytics capabilities within Oracle Fusion ERP Analytics provide executives and category managers the comprehensive visibility into spend, supplier performance, and operational efficacy required to remain competitive. This offering brings finance and procurement data together, providing CPO and CFO organizations with in-depth spend, purchasing, and delivery insights from a single source of truth.

Procurement leaders must navigate an increasingly complex environment characterized by higher customer expectations and supply chain volatility. For many procurement teams, providing company stakeholders uninterrupted access to high quality goods and services has become a precarious balancing act; buyers must consider a multitude of factors – ranging from cost savings to sourcing risks – when making purchasing decisions. 

It’s no surprise that, according to the most recent Deloitte Global CPO survey, 38% of Chief Procurement Officers (CPO’s) cited organizational silos among the top three scenarios that present the “greatest risk” to their respective organizations.

Access to cross-functional insights across the organization have become a necessity, enabling procurement professionals to execute with certainty amidst fast-moving markets. The ease with which the procurement team can blend finance, purchasing, and supplier data with speed and accuracy has a colossal impact on business performance.

When it comes to procurement technology solutions, functionalities that support purchasing alone are no longer enough. Oracle’s latest procurement analytics solution enables CPO’s to more fully understand external risk factors and internal capabilities, allowing organizations to pivot when needed.

Analytics capabilities built to address procurement needs

Spend analysis, simplified: View finance and procurement data together for up-to-date insight into how spend patterns affect key financial metrics. A consolidated look at off-contract spend and historic pricing rates enable procurement officers to more accurately match business needs. Examine cost saving potential by item and discounts received by category type. Rationalize spend by supplier and item with an organization-wide view of purchasing overlaps. 

Supplier qualification and performance: Minimize disruption and mitigate downstream risk by tracking supplier performance for the delivery and quality of goods. Keep a watchful eye on metrics such as rejection and return rates for critical items. Reduce idle time and downtime with an up-to-date, company-wide view of the shipping and receipt status of items purchased. Identify areas for supplier diversification; merge spend and supplier performance analysis with details such as ‘items on agreement by supplier’ to avoid risky sourcing dependencies.

Contract expirations at-a-glance: Not only can procurement departments receive timely alerts 30, 60, or 90 days before contract expiration – it is now possible to view contract expirations by many dimensions, such as by geography, business unit, and category. Reduce the occurrence of missed deadlines, thanks to an in-depth visual representation of procurement contract expirations.

Source-to-settle cycle times: Improve efficiencies across procurement processes by monitoring prebuilt KPI’s to better understand the root cause of process bottlenecks. A visual representation of cycle times across both finance and procurement processes enables organizations to uncover the underlying cause of operational inefficiencies. For example: are approval delays suspending strategic purchases?

Agreement Analysis: Easily track agreement leakage and agreement utilization trends to better understand the company’s purchasing needs. Develop strategies to consolidate suppliers and obtain volume discounts. Gain detailed insights into agreement utilization by item and supplier enable buyers to optimize purchasing across all business units.

Unified view of finance and procurement at your fingertips: Maintain a shared view of finance KPI’s and procurement KPI’s in one place, automatically synced for analysis. No spreadsheet configuration is needed, thanks to the product’s prebuilt data foundation. Optimize accounting practices by understanding the root cause of invoice holds and DPO metrics. Improve the speed of supplier payments to capture early payment discounts. The ability to easily analyze procurement and finance metrics together provides procurement professionals with multiple paths to profitability, whether by viewing invoice price variance (IPV) by supplier, or off-contract spend by category.

Prebuilt Key Performance Indicators (KPIs): This offering comes with a comprehensive library of prebuilt KPIs and metrics that were created based on industry best practices. Company data is automatically funneled into key procurement metrics so that business professionals can track company progress with the click of a mouse. Users can also define additional metrics based on specific departmental needs. Over 200 pre-built KPIs, dashboards, and reports are available out of the box, and span categories from purchase orders to receipts. For full list of prebuilt KPIs included, click here.

Below is a partial list:

  • Contracts Expiring
  • Items on Agreement
  • Agreement Utilization
  • PO Qty. and Amounts
  • Short Closed
  • Recoupment Amounts
  • Shared Services Amounts
  • Advanced Shipment Notification (ASN)
  • Goods Delivered, Accepted, Rejected, Returned

Easy Extensibility: Specifically designed for the business user, Oracle Fusion ERP procurement analytics enables “drag-and-drop” data integration across multiple internal and external sources without technical complexity. For example, include corporate social responsibility (CSR) data within supplier analysis to safeguard brand reputation. In the screenshot below, clear visualizations simplify the process of viewing suppliers by their respective environmental ratings.

Jumpstart your procurement analytics journey with Oracle 

What’s next? To better understand the value of prebuilt analytics for procurement professionals, spend four minutes exploring this interactive product tour.

With Oracle’s newest set of procurement analytics, organizations gain the agility to adapt to changing circumstances. Oracle Fusion ERP Analytics makes it easy for executives to identify productivity improvement opportunities across the procure-to-pay process, while making decisions that minimize disruption.

This prebuilt, cloud-native analytics solution reduces the need for grueling data manipulation across finance and procurement. Users quickly gain comprehensive visibility into procurement performance and company-wide spend via ready-to-use KPI’s and integrations with Oracle Cloud applications.

Business users will find the intuitive interface easy to use; a behind-the-scenes semantic layer makes it easy to extend procurement analysis with third party data sources. As with all Fusion Analytics Warehouse modules, Oracle’s procurement analytics capability unifies disparate data sources for the user, hastening cross-functional analysis. When combined with offerings from Oracle Procurement Cloud, these capabilities provide procurement departments with the tools to transform business operations via strategic sourcing.  

Learn more about the latest prebuilt solution for procurement analytics from Oracle and spend analysis.  

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