Oracle on Wednesday rolled out a new sourcing product designed to manage supplier negotiations and reduce purchasing costs.
Oracle Sourcing is an enterprise application designed to help companies cut costs by identifying the best suppliers and simplifying subsequent negotiation of supplier contracts.
The software supports the complete sourcing process for indirect and direct purchases, including gathering requirements, qualifying suppliers, managing negotiations, making award decisions, and monitoring contracts on an ongoing basis, according to company officials.
It also features multi-attribute scoring, enabling enterprises to source not only based on price but for the best overall value, said Aseem Chandra, Oracle director of supply chain product marketing.
"During the course of a negotiation, you can display to your suppliers how their bids are beings evaluated and where they stand compared to other suppliers," Chandra said.
The product could help companies reduce their unit prices by 5 percent to 20 percent, he added, while reducing sourcing cycle times by 25 percent to 30 percent.
Oracle sourcing customer Todo1 Mercado Digital recently tapped the solution for negotiations across five financial institutions for the purchase of more than 2 million credit and debit cards. Juan José Bermúdez, marketplace director for Todo1 Services, said Oracle's advanced negotiation capabilities allowed the company to save 40 percent, or US$300,000.
The new solution has strong spend analysis and business intelligence capabilities, said Joseph Marino, director of Internet commerce at Current Analysis Inc., in Sterling, Va. In addition, because it is integrated into Oracle's e-business suite, the sourcing data can be shared across various divisions of a company, he added.
"You can take sourcing to product development and design (and) you can take it to bill of materials," he said.