Oracle Sourcing Module: Features with Real-Life Examples

1. Request for Information (RFI)

- Used to gather preliminary information from suppliers before a formal procurement process.
Example: A company sends an RFI to IT vendors to understand their capabilities before issuing an RFQ.

2. Request for Quotation (RFQ)

- Used to invite detailed pricing and delivery quotes from suppliers.
Example: After RFI review, an RFQ is issued to shortlisted vendors for IT equipment pricing.

3. Auctions

- Supports auctions for real-time competitive bidding.
Example: A auction is conducted for office supplies where suppliers lower prices to win the deal.

4. Sealed and Blind Quotes

- Sealed: Quotes remain hidden from both competitor suppliers and the buyer until the deadline.
- Blind: Suppliers cannot see competitors’ quotes, but the buyer can view all submitted quotes once they are submitted by the suppliers.

Example: For a confidential project, sealed bidding is used to ensure impartiality.

5. Negotiation Templates

- Templates standardize and speedup sourcing events with predefined formats, controls, questions and terms.
Example: A company uses a template for yearly hardware procurement to save setup time.

6. Terms and Conditions Acceptance

- Suppliers must accept terms and conditions before submitting bids.
Example: Suppliers agree to standard T&Cs before quoting for an infrastructure RFQ.

7. RFQ Controls

-  Purpose: Manage how suppliers interact with the RFQ and how the negotiation is conducted.

Features Include:

-      Invited Supplier Participation: Only specific, approved suppliers can view and respond to the RFQ.

-      Manual Early Close: The RFQ can be manually closed before the scheduled close date if required.

-      Extend Close Date: The RFQ close date can be extended based on business needs or low participation.

-      Allow Multiple Quotes: Suppliers can submit more than one quote if enabled, allowing for different pricing or delivery scenarios.

-      Allow Quote to Alternate Lines: Suppliers can propose quotes for alternate items or configurations if allowed.

-      Response Style Options: Open, Sealed, or Blind quote settings can be configured for fairness and transparency.

-      Negotiation Style: Can be set as RFQ, Auction, or RFI depending on the requirement.

Example: A procurement officer sets up an RFQ where only shortlisted suppliers are invited. As few suppliers respond initially, they extend the RFQ deadline. A supplier submits two different quotes for alternate products on the same line item, which are all captured and evaluated.

 

8. Attachment Upload with Quote Submission

- Suppliers can upload supporting documents with their quotes.
Example: A vendor submits compliance certificates with their quote for lab equipment.

9. Scoring and Evaluation

- Enables objective bid evaluation based on price, delivery, etc.
Example: Proposals are scored for cost, delivery time, and warranty to identify the best supplier.

10. Questionnaires

- Add detailed questions for suppliers within sourcing events.
Example: An RFQ includes a questionnaire on environmental compliance and certifications.

11. Collaboration Team

- Involve technical, finance, and legal teams in sourcing decisions.
Example: A technical expert is included in evaluating the technical specs of vendor bids.

12. Award Analysis

- Analyze bids using tools and reports to support award decisions.
Example: The team compares total cost and delivery options to finalize a vendor.

13. Auto Awarding

- Automatically awards bids based on scoring thresholds.
Example: The system auto-selects the vendor with the best score when the event closes.

14. Award Approval

- Route award decisions through approval hierarchy.
Example: The final award is reviewed and approved by procurement and legal teams.

15. Purchase Order (PO) Creation

- Converts awarded negotiations into POs in Oracle Purchasing.
Example: A PO is auto-generated and sent to the awarded supplier after approval.