Levelling Up your Oracle Cloud Deployment – Supplier Qualification Management

Levelling Up your Oracle Cloud Deployment – Supplier Qualification Management

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 of Supplier Qualification Management

Oracle Fusion Supplier Qualification Management (SQM) is a cloud-based solution that helps organizations manage their supplier qualifications and capabilities. It provides a complete suite of tools for creating and managing qualification surveys, assessing supplier responses, and scoring suppliers based on predefined criteria.

SQM adds value to organizations in a number of ways, including:

  • Improved visibility into supplier qualifications and capabilities: SQM provides a centralized repository for all supplier qualification data, giving organizations a clear view of their suppliers’ strengths and weaknesses. This information can be used to make informed sourcing decisions, reduce risk, and improve supplier performance.
  • Reduced risk of supplier-related issues: SQM helps organizations identify and mitigate supplier risks by providing insights into their suppliers’ financial stability, sustainability initiatives, compliance with regulations, and other key factors. This information can be used to develop risk mitigation plans and avoid costly disruptions to the supply chain.
  • Improved supplier compliance: SQM helps organizations ensure that their suppliers comply with their corporate policies and procedures. SQM surveys can be used to collect information on suppliers’ compliance with specific policies, such as environmental regulations, labour standards, and data security requirements.
  • More efficient supplier qualification process: SQM automates many of the tasks involved in the supplier qualification process, such as survey distribution, response collection, and scoring. This frees up procurement teams to focus on more strategic tasks, such as relationship management and contract negotiation.

Integrated with Advanced Procurement Modules:

Oracle Fusion Supplier Qualification Management is fully integrated within Procurement applications suite of Oracle Fusion. Below are the integration touch points:

  • SQM integration with Supplier Registration/Promotion process:

SQM is fully integrated with supplier registration/promotion process which allows users to build questionnaires as per requirement and embed them in supplier registration/promotion business events. This in turn provides flexibility to gather information as part of these business events and helps approvers take informed decisions by looking into the information from a single window.

  • SQM integration with Oracle DataFox:

Oracle Fusion Supplier Qualification Management can be integrated with Oracle DataFox Supplier Intelligence, which can enrich data using AI technology during the supplier onboarding process, and help Oracle Fusion SQM automatically calculate and provide a risk score to the supplier during the onboarding process. Datafox is an AI based tool which gathers information about potential/existing suppliers from across the internet based on Financial Health, Corporate Updates and Negative News.

  • SQM integration with Sourcing:

Category managers can use the supplier qualification status in the negotiations drafting step to filter out suppliers which have active qualifications. This can save category managers time as they will no longer need to request the status of suppliers outside of the system, or filter through files for each individual supplier. The Oracle Fusion SQM question and qualification library is available in the Requirements section of negotiations. Using this, users will be able to create requirements in one click instead of writing the entire requirement.

Overall, Oracle Fusion SQM is a valuable tool for organizations that want to improve their supplier management practices. It can help organizations to reduce risk, improve compliance, and make better sourcing decisions.

Here are some specific examples of how organizations can use SQM to add value:

  • A manufacturing company can use SQM to ensure that its suppliers meet all of its quality and compliance requirements. This can help to reduce the risk of product defects and recalls.
  • A retail company can use SQM to qualify its suppliers based on their ethical and sustainability practices. This can help to meet the growing demand for products that are produced in a responsible and sustainable manner.
  • A healthcare organization can use SQM to qualify its suppliers based on their security and HIPAA compliance. This can help to protect patient data and avoid costly fines and penalties.

No matter what industry you’re in, SQM can help you to improve your supplier management practices and add value to your organization.

Implementation considerations

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

  • Existing Qualifications – do you have supplier qualifications data inside or outside any system as of today? If yes, is it in the format that can be migrated to Fusion?
  • Onboarding process – Are your suppliers being onboarded in your existing Fusion environment using registration flow or do you manually create suppliers in Fusion after gathering information through emails? If its manual supplier creation, would you be willing to switch to registration flow supported by Fusion along with SQM questionnaire configured?
  • Supplier Master – How is your supplier master divided i.e. do you have single supplier with general name and country bifurcations are maintained at address/site level, or supplier itself is bifurcated at country level, e.g. XYZ UK, XYZ Middle East, XYZ Americas.
  • Automatic scoring – Can you bifurcate your question library between text based answers and multiple choice answers and can you provide possible scores to multiple choice answers for automatic scoring of supplier responses.
  • Supplier Portal – Are you already using the supplier portal or would you like it to be implemented along with SQM? Or do you want to use SQM without supplier portal?

Namos Solutions have extensive experience of implementing the Advance Procurement suite, both during an initial implementation and after go-live to level up an existing solution, so we are happy to help you work through all these considerations no matter where you are on your Oracle journey.

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