Levelling Up your Oracle Cloud Deployment – Procurement Contracts

Levelling Up your Oracle Cloud Deployment – Procurement Contracts

Author: Hassan Ali Khan, ERP Consultant – Procure to Pay at Namos Solutions

Levelling Up Blog Series Overview

It is inevitable that amidst the heat and noise of an Oracle Cloud implementation certain nice to haves can end up falling out of scope. Whether through time, budget, or simply capacity for your team to adopt substantial changes, anyone has gone live will be familiar with those difficult considerations of which modules to take, and which to leave on the table.

Alas, the rub – those optional modules, those nice to haves, can often provide some of the most transformational changes and drive the greatest improvements or efficiencies. 

This series of blog posts will discuss some of those modules sometimes not taken as part of an initial implementation, and offer some considerations on how best to retrofit that functionality onto a live Oracle Cloud instance.

This first few blogs in this series will consider the Advanced Procurement modules. Virtually every Oracle Cloud ERP implementation will include the Procurement basics for raising orders, receiving goods, and paying suppliers – every organisation buys stuff! However, leveraging the Supplier Portal, Supplier Qualification Management, Procurement Contracts and Sourcing can help your organisation deliver procurement savings which far outweigh the costs of implementing those modules.

Overview Procurement Contracts

Legal agreements for the purchase of products, services, or works between a buyer and a seller are known as procurement contracts. These agreements are an essential component of the procurement process and essential for obtaining products or services from outside vendors. Procurement contracts define the parameters of the deal, outlining each party’s rights and responsibilities.

The Oracle Procurement Contracts module provides several important advantages, including standard contract creation and management, improved adherence to terms and conditions, improved supplier relationships through open communication, streamlined approval workflows, decreased risks due to better contract visibility, and the capacity to effectively monitor contract performance and renewals. The module’s reporting and analytics capabilities also enable effective contract negotiations and aid in better decision-making.

Key Features & Benefits:

  • For all contract-related data, Oracle Fusion Procurement Contracts offers a single, unified store. This facilitates methodical contract management and organisation.
  • Overall contract visibility is increased by centralisation, which lowers the possibility of contracts being misplaced or lost.
  • The generation of uniform contract templates is supported by the program. This promotes adherence to organisational norms and procedures and guarantees uniformity across contracts.
  • Additionally, using standardised templates speeds up contract generation and lowers the time and labour involved in creating contracts.
  • From conception to approval and execution, Oracle Fusion Procurement Contracts automates several steps in the contract lifecycle. This guarantees that procedures are followed consistently and lowers manual error rates.
  • Automation can support the enforcement of regulatory requirements and procurement policy compliance.
  • The platform makes it easier for parties engaged in the contract process to collaborate. Teams from legal, procurement, and business are included in this.
  • Out-of-box integration with e-signing tools like DocuSign & Adobe Sign, provides users with additional benefits by speeding up process and keeping track of all contract stages in one place.

Integration with Advanced Procurement:

Oracle Fusion Procurement Contracts is a component of the larger Oracle Cloud suite; as such, it integrates easily with other modules, including Sourcing, Supplier Qualification Management, and Procurement. The integration maintains data consistency and silos between stages of the procurement process.

Real-time tracking of contract performance, compliance, and milestones is available via the platform. This enables companies to quickly recognise and resolve problems.

Creating purchasing documents from Procurement Contract; mitigates the errors and improves the timeliness of processing information from contracts to purchasing application.

By providing insights into contract performance, reporting tools enable firms to make data-driven decisions.

Oracle Fusion Procurement Contracts are made to grow with an organisation’s changing requirements. It offers adaptability in response to evolving rules and procurement requirements.

Implementation Considerations:

If implementing Procurement Contracts post go-live, there are a number of additional considerations for how best to deploy this functionality cognisant of the configurations already in place:

  • Signing Authority; Pre-defining authorised contract signers as supplier contacts and internal resources significantly enhances the efficiency of contract management in Oracle Fusion. Consider what employee data is already in your production environment (this will vary depending on whether you utilise HCM) that can be leveraged to support such approval rules (e.g. based on line manager hierarchy, or job grade).
  • Enabling Negotiations; To optimise workflow efficiency, contracts can be configured to facilitate negotiation as part of the existing Sourcing process. As such, careful consideration must be given to any existing Sourcing configurations to maximise the value of Contracts.
  • To optimally migrate existing contracts to Procurement Contracts, a tailored approach considering both reporting/tracking requirements and available resources is crucial. For extensive data needs, leveraging the Terms Library ensures comprehensive capture. However, if reporting demands are more modest, a streamlined migration pathway bypassing the Terms Library can be adopted, minimising effort. Moreover, analysis should be conducted of any Agreements already created in the system, if these have been used in lieu of Contracts for the purposes of ordering.
  • When utilising the Supplier Portal in conjunction with Procurement Contracts, carefully evaluate the access level granted to supplier users within the portal for interacting with contracts. This analysis should consider the existing or planned implementation timeline of both modules.

Get in touch with Namos and we’d be happy to discuss Levelling Up your Oracle Cloud Deployment – Contact Us