Tracking Negotiation Activities

This chapter describes the Strategic Sourcing dashboard.

This chapter covers the following topics:

• Using the Strategic Sourcing Dashboard
• Understanding Strategic Sourcing Dashboard Calculations

Using the Strategic Sourcing Dashboard

The Strategic Sourcing Dashboard enables buyers and procurement managers to view aggregate information from sourcing negotiations, initiatives, and objectives, which helps them to track and mitigate risks in achieving strategic objectives. They can track the status of strategic objectives and initiatives.

Using the Strategic Sourcing Dashboard, buyers and procurement managers can:

• Search across negotiations, responses, initiatives, and objectives. Drill down to the associated document, or navigate to other dashboards of the Procurement Command Center Plus in the context of a purchasing document.

• Identify risk index based on the significance and risk level of each open task on an initiative.

• Track negotiation cycle-times and savings achieved on each negotiation.

• Measure delay on a task, initiative, or objective by comparing planned progress versus actual progress that has been reported.

For information about initiatives, objectives, and tasks, refer to the Oracle Sourcing User Guide.

Header Region

This region displays the date and time stamp of the last ETL update.

Search Region

The Search component allows you to submit keyword searches and provides type-ahead suggestions displaying attribute values that match the typed text. When you perform a search, the search term is added to the Selected Refinements component. As you type, you may be prompted to select a matching attribute value, or simply search for the entered text.

Partial record search is enabled for specific attributes. Attributes for partial record search include:

• Objective Name

• Objective Description

• Initiative Name

• Initiative Description

• Task Name

• Task Description

• Negotiation Title

• Offer Supplier

• Negotiation Number

Selected Refinements

The Selected Refinements component displays all values that you have selected to filter data, and allows you to quickly make adjustments to the current refinement by removing items or clearing all filters from the list.

Bookmarks

The Bookmarks component allows you to save a given navigation and component state and return to it at a later time.

Available Refinements

The Available Refinements component allows you to filter data based on the currently available values or value ranges for selected attributes that are displayed within attribute groups. Expand the attribute groups to view and select attribute names.

Summary Region

The following metrics tabs are available in the Strategic Sourcing Dashboard:

• Initiatives

• Objectives

• Negotiations

Initiatives

The Initiatives tab displays the following metrics based on the filters applied on the page.

If the value of a metric is zero, then the metric is automatically hidden.

Metric Display Title	Description
Open Initiatives	Number of initiatives in the Draft, Planned, and On hold statuses
Delayed Initiatives	Number of initiatives that are still open beyond the planned end date
Open Tasks	Number of tasks in the Draft, Planned, and On hold statuses
Delayed Tasks	Number of tasks that are still open beyond the planned end date
Progress Variance%	Weighted variance between planned progress percent and actual progress percent for all open initiatives The calculation of progress variance percent is: Sum (actual progress% - planned progress%)*planned days)/sum(planned days). The following default color key indicates the progress variance percent: Green: Less than 5% Yellow: Between 5% and 20% Red: More than 20%
Risk Rating%	Weighted risk rating percent of all open initiatives The calculation of risk rating% is as follows: Sum(risk rating% of an initiative*number of days)/sum(number of days of all initiatives). The following default color key indicates the risk rating percent: Green: Less than 50% Yellow: Between 50% and 75% Red: More than 75%

Objectives

The Objectives tab displays the following metrics based on the filters applied on the page.

If the value of a metric is zero, then the metric is automatically hidden.

Metric Display Title	Description
Active	Number of objectives that are referred by an open initiative. This metric helps procurement managers to know the number of objectives that they track through open initiatives.
Progress Variance%	Variance between planned progress percent and actual progress percent for all open initiatives The calculation is as follows: Sum((actual progress% - planned progress %)*planned days)/sum(planned days) The following default color key indicates the progress variance percent: Green: Less than 5% Yellow: Between 5% and 20% Yellow: Between 5% and 20%

Negotiations

The Negotiations tab displays the following metrics based on the filters applied on the page.

If the value of a metric is zero, then the metric is automatically hidden.

Metric Display Title	Description
Currency	Select a currency to view currency-specific information. Some of the elements on this dashboard are dependent on currency.
Open	Number of open negotiations
About to Close	Negotiations about to close in the next 7 days
Offers/Negotiation	Average number of offers received on all negotiations The following default color key indicates the number of offers received: Green: More than 2 Yellow: Between 1.5 and 2 Red: Fewer than 1.5
Amendments	Average number of amendments or new rounds for each negotiation
Cycle Time	Average sourcing cycle, the time from negotiation creation to award confirmation
Targeted Savings	Sum of savings target established on all completed negotiations The calculation of targeted savings is as follows: Difference between current price and target price, multiplied by quantities and summed up.
Negotiated Savings	Sum of savings negotiated on all completed negotiations. The calculation of negotiated savings is as follows: Difference between average winning bid price and current price, multiplied by quantities and summed up.

Charts Region

This region displays the following charts and graphs:

Wherever the chart shows amount or price, the chart will render only when there is only one currency in the current view.

Tab	Chart Title	Details
Initiatives	Progress	This bubble chart shows the progress of active documents and offers drill-down. This chart does not consider completed and cancelled initiatives or tasks. The X-axis values are Objective Planned Progress, Initiative Planned Progress, and Task Planned Progress. The Y-axis values are Objective Progress Variance, Initiative Progress Variance, Task Progress Variance, Objective Risk Index, Initiative Risk Index, and Task Risk Index. Progress Variance is calculated as Actual progress% - Planned Progress%) When you click: An objective balloon, the chart applies a filter on the objective and displays balloons for all initiatives linked to that objective. An initiative balloon, the chart applies a filter on the initiative and all task owners in the initiative are shown. When you click an owner, the chart displays all of the owner's tasks.
Initiatives	Status	This stacked bar chart shows the status of the initiatives. You can drill down on a status. The X-axis is the initiative number or the count. The Category axis values are Initiative Owner (default), Sponsor, Initiative Status, Category, Initiative Planned Start Date, Initiative Planned End Date, and Initiative Actual Start Date. Each Initiative Status and Task Status is represented by a different color. The chart displays the following initiative or task statuses: Draft Planned Active On hold Delayed Completed Cancelled
Negotiations	Status	This stacked bar chart shows the number of negotiations by status. Each stack represents a negotiation status. The Category axis values are Buyer (Default), Initiative, Objective, Creation Date, and Type (RFI, RFQ ,Auction). The Y-axis values are Negotiation Number (count) and Negotiation Amount. The Negotiation Amount is displayed only when the currency is the same for all the records. A color code indicates the different negotiation statuses.
Negotiations	Savings	This bubble chart shows the negotiated value. Each bubble represents a category, buyer (default), negotiation, negotiation type, initiative or objective. The X-axis represents Targeted Savings, which is calculated as the sum of target-value*quantity. The Y-axis represents Negotiated Savings, which is calculated as the sum of winning-bid-price*winning-bid-quantity. The bubble size represents the value (targeted price*quantity) for that category, buyer, negotiation, or negotiation type. Click a category bubble to drill down to a negotiation.
Performance	Top Initiatives	This simple bar chart displays the top 10 initiatives. The chart displays open initiatives, tasks, or objectives. The X-axis values are Initiative Number, Task Number, Objective Number, Initiative Owner, Task Owner, and Sponsor. The Y-axis values are: Duration: If there are multiple initiatives or tasks, then the chart displays the average duration. Risk Index: This value is calculated as the weighted average by initiative or task duration for multiple initiatives or tasks. Risk Index: This value is calculated as the weighted average by initiative or task duration for multiple initiatives or tasks. Age
Performance	Sourcing Cycle Times	This is a stacked bar-chart, similar to the Procurement Cycle time chart in the Procurement Operations Dashboard. The X-axis shows the Duration. The Y-axis values are Buyer, Category (Aggregated at the line level), Outcome Document Type, and Negotiation Style (style name) Each horizontal bar represents the average cycle time for the negotiations in the current view. The cycle time is the time difference between when the negotiation was created to when the negotiation was completed. Stacks represent the cycle times for the following stages: Drafting (Creation to Published) Accepting bids (Published to Closed) Bid Analysis (Closed to draft award created) Awarding Decision (from draft award created to complete) If a draft award is not created, then awarding the decision extends from Closed to Completed.

Initiatives Region

This region displays a summary of the item within the following tabs:

Objectives tab

The results list considers all the objectives in the application, even if some objectives are not linked to any initiative.

This tab displays the following options:

• The Details option displays information about objectives such as the status, the current value, the start and end dates, and whether the objectives is at the maintenance stage.

• The Performance option displays information about objectives such as the planned progress percent, the actual progress percent, the progress variance percent, and the risk index. Only tracked initiatives are considered for the count. You can gather information about whether an objective is linked to any initiative.

• Actions option: For an objective, click the Manage Objective action to navigate to the Manage Objective page in Oracle Sourcing.

You can perform the following actions using the Actions list on the right side of the tab:

• Print

• Export

• Compare

Initiatives tab

The results list considers all initiatives including draft, cancelled, and completed initiatives.

This tab displays the following options:

• The Details option provides information about initiatives such as the status, owner, the sponsor, and the financial impact.

• The Additional Information displays information such as the tags, the initiative templates, and the initiative approach.

• The Performance option displays information about initiatives such as the planned progress percent, the actual progress percent, the progress variance percent, and the risk index. Only tracked initiatives are considered for the count. You can gather whether an objective is linked to any initiative.

• The Actions option provides the following links:

  • View Initiative: Click this link to navigate to the View Initiative page in Oracle Sourcing.

  • Copy: Use this link to copy and create a new initiative. The application takes you to the newly created initiative page in Oracle Sourcing.

Tasks tab

This tab displays the following options:

• The Details option displays the status, description, owner, negotiation, significance, and risk level of the tasks. You can view prerequisite tasks and the task numbers of the dependent tasks.

• The Performance option displays the planned start date, the duration, the planned end date, the reporting frequency, the actual start date, the planned progress percent, the actual progress percent, the progress variance, and the actual end date for tasks.

• The Actions option provides the Manage Task link to help you navigate to the Manage Task page in Oracle Sourcing and perform further actions related to the task.

From the Objectives, Initiatives, and Tasks tabs, you can perform the following actions using the Actions list on the right side of the tab:

• Print

• Export

• Compare

For more information, see:

• Comparing Procurement Documents

• Printing or Exporting Procurement Documents

Negotiations Region

This region displays a summary of the item within the following tabs:

Negotiations tab

The results list considers all negotiations including RFIs, RFQs, and auctions. Only authorized users can view negotiations and the metrics are calculated based on the negotiations that an authorized user can access.

If an initiative is linked to a negotiation, and the negotiation has a private or hierarchy access level, and the logged in buyer does not have access to the negotiation, then the logged in user can access the initiative, but cannot view the negotiation.

This tab displays the following options:

• The Details option displays information such as the title, the buyer, the type, the style, the outcome document, the invited supplier, the active offers, and the best offer for the negotiation.

• The Details option displays information such as the title, the buyer, the type, the style, the outcome document, the invited supplier, the active offers, and the best offer for the negotiation.

• The Actions option provides the View Negotiation link that helps you to navigate to the Auction page in Oracle Sourcing.

Offers tab

The application applies security rules for offers. For example, offers for sealed negotiations will not be displayed until the offers are unsealed.

This tab displays the following options:

• The Details option displays information such as the supplier of the offer, the negotiation number, the supplier contact, the outcome document type, the outcome document number and the bid rank.

• The Lines option displays information such as the item number, description, category, item revision, bid price, promised date, and award quantity.

• The Actions option provides the View Offer link to help you navigate to the offer details for a negotiation in Oracle Sourcing.

From the Negotiations and Tasks tabs, you can perform the following actions using the Actions list on the right side of the tab:

• Print

• Export

• Compare

For more information, see:

• Comparing Procurement Documents

• Printing or Exporting Procurement Documents

Understanding Strategic Sourcing Dashboard Calculations

Oracle Sourcing enables buyers and procurement managers to organize their strategic procurement activities and sourcing activities into initiatives, using a set of tasks that is completed by a collaboration team. Each initiative is assigned one or more objectives. Initiative owners, sponsors, and the chief procurement officer (CPO) can track the initiative to see if it has achieved the targeted objectives. Procurement documents that are an outcome of the negotiation, or any related documents, can be linked to the initiative. The Strategic Sourcing Dashboard enables a chief procurement officer (CPO) to review what initiatives the procurement team is taking to achieve the goals set out for the organization. At a glance, the CPO gets an overview of the team's progress on overall objectives and on individual initiatives.

When the CPO uses the Strategic Sourcing Dashboard, the following insight is available:

• Progress on Tasks

• Progress on Objectives

• Risk Index

Using an example, this topic explains how the Strategic Sourcing Dashboard calculates dimensions, either rolled up at an initiative level or for the entire organization.

Example

The calculations for the Progress on Tasks, for theProgress on Objectives, and for the Risk Index dimensions use the following example:

Date: 01-Jun-2015

Objectives: This table lists the sample high-level objectives set by the CEO of a Procurement organization.

Objective	Start Date	End Date	Start Value	Current Value	Target Value
Reduce lead-time for IT equipment	1-Jan-15	31-Dec-15	32 Days	27 Days	20 Days
Rational IT equipment supply base	1-Jan-14	31-Dec-15	600 Suppliers	530 Suppliers	400 Suppliers

In this example, the initiative is IT Hardware Procurement, a project whose spend outlay is about 500,000.00 USD. The organization started this initiative on 1-Mar-2015 and it is slated to end on 30-Sep-2015.

Tasks: The following table describes the tasks set for the IT Hardware Procurement initiative.

Task	Task Owner	Planned Start Date	Planned Completion Date	Actual Start Date	Actual Completion Date	Status	Actual Progress %	Critic-ality	Reported Risk Level
Market Analysis	Buyer	1-Mar-15	30-Apr-15	15-Mar-15	10-Apr-15	Completed	100%	10	High
Legal Review	Lawyer	15-Mar-15	31-May-15	1-Apr-15		Delayed	80%	5	High
Detailed Specifications	IT Manager	1-May-15	31-May-15	15-May-15		Delayed	50%	30	Medium
Supplier Qualification	Supplier Manager	15-May-15	15-Jun-15	15-May-15		Active	40%	20	Low
Supplier Negotiation	Buyer	15-Jun-15	15-Aug-15			Planned		5	High
Sign Contracts	Contracts Manager	15-Aug-15	30-Sep-15			Planned		30	Very High

Assigning Objectives to the Initiative

The following two objectives are assigned to the IT Hardware Procurement initiative. An objective at the initiative level inherits the start and completion dates of the initiative.

Objective	Start Date	End-Date	Start Value	Target Value	Current Value	Final Value
Reduce lead-time for IT Equipment	1-Mar-15	30-Sep-15	28 Days	25 Days	27 Days
Rational IT equipment supply-base	1-Mar-14	31-Sep-2015	550 Suppliers	500 Suppliers	530 Suppliers

Measuring Progress on Tasks

Planned Progress = (Sysdate - Planned Start Date) / (Planned Completion Date - Planned Start Date) – Maximum set to 100%

Delay % = Planned Progress% - Actual Progress%

Task	Task Owner	Planned Start Date	Planned Completion Date	Actual Start Date	Actual Completion Date	Status	Actual Progress%	Planned Progress	Delay
Market Analysis	Buyer	1-Mar-15	30-Apr-15	15-Mar-15	10-Apr-15	Completed	100%	100%	0
Legal Review	Lawyer	15-Mar-15	31-May-15	1-Apr-15		Delayed	80%	100%	20%
Detailed Specifications	IT Manager	1-May-15	31-May-15	15-May-15		Delayed	50%	100%	50%
Supplier Qualification	Supplier Manager	15-May-15	15-Jun-15	15-May-15		Active	40%	15 / 30 = 50%	10%
Supplier Negotiation	Buyer	15-Jun-15	15-Aug-15			Planned
Sign Contracts	Contracts Manager	15-Aug-15	30-Sep-15			Planned

The application estimates progress percent at the initiative-level as:

Planned Progress = Sum(Planned Task Progress * Task Duration) / Sum(Task Duration)

Actual Progress = Sum(Reported Task Progress * Task Duration) / Sum(Task Duration)

Task	Task Owner	Planned Start Date	Planned Completion Date	Actual Start Date	Actual Completion Date	Status	Actual Progress %	Planned Progress	Delay	Task Duration	Planned Progress%*Duration	Actual Progress% * duration
Market Analysis	Buyer	1-Mar-15	30-Apr-15	15-Mar-15	10-Apr-15	Completed	100%	100%	0	60 days	60 days	60 days
Legal Review	Lawyer	15-Mar-15	31-May-15	1-Apr-15		Delayed	80%	100%	20%	75 days	75 days	80% * 75 = 60 days
Detailed Specifications	IT Manager	1-May-15	31-May-15	15-May-15		Delayed	50%	100%	50%	30 days	30 days	50% * 30 = 15 days
Supplier Qualification	Supplier Manager	15-May-15	15-Jun-15	15-May-15		Active	40%	15 / 30 = 50%	10%	30 days	50% * 30 = 15 days	40% * 30 = 12 days
Supplier Negotiation	Buyer	15-Jun-15	15-Aug-15			Planned				60 days	0	0
Sign Contracts	Contracts Manager	15-Aug-15	30-Sep-15			Planned				45 days	0	0
									Total	300 days	180 days	147 days
										Initiative Level	180 / 300 = 60%	147 / 300 = 49%
											Initiative Delay	11%

Measuring Progress on Objectives

Based on the example, the application calculates progress at the objective level as:

Planned Progress = (Sysdate - Start Date) / (Target Date - Start Date)

Actual Progress = (Current Value - Start Value) / (Target Value - Start Value)

Note: The application uses the same logic to calculate progress at the objective level and at the initiative level.

Objective level

Objective	Start Date	End-Date	Start Value	Current Value	Target Value	Planned Progress	Actual Progress	Delay
Reduce lead-time for IT Equipment	1-Jan-15	31-Dec-15	32 Days	27 Days	20 Days	6 months / 12 months = 50%	27 - 32 / 20 - 32 = 5/12 = 41.6%	8.30%
Rational IT equipment supply-base	1-Jan-14	31-Dec-15	600 Suppliers	530 Suppliers	400 Suppliers	6 months / 24 months = 25%	530 - 600 / 400 - 600 = 70 / 200 = 35%	-10% (ahead)

Initiative level

Objective	Start Date	End-Date	Start Value	Target Value	Current Value	Planned Progress	Actual Progress	Delay %
Reduce lead-time for IT Equipment	1-Mar-15	30-Sep-15	28 Days	25 Days	27 Days	3 months / 7 months = 43%	27 - 28 / 25 - 28 = 1/3 = 33%	10%
Rational IT equipment supply-base	1-Mar-14	31-Sep-2015	550 Suppliers	500 Suppliers	530 Suppliers	3 months / 7 months = 43%	530 - 550 / 500 - 550 = 20 / 50 = 40%	3%
							Overall initiative level = Average	6.50%

Risk Index

In Oracle Sourcing, when creating a task in the Risk region, the owner of an initiative enters a risk level for the task and assigns a criticality value between 0-100. The criticality value indicates the relative importance of the task within the initiative.

The following table lists the risk level value that this example uses for calculations:

Meaning	Value
Low	0
Medium	30
High	70
Very High	100

Risk Index Calculation

Based on the criticality and risk level values, the application calculates risk index as:

Risk Index = Criticality * Risk Level

Task	Task Owner	Planned Start Date	Planned Completion Date	Actual Start Date	Actual Completion Date	Status	Actual Progress %	Criticality	Reported Risk Level	Risk Level Value	Risk Index
Market Analysis	Buyer	1-Mar-15	30-Apr-15	15-Mar-15	10-Apr-15	Completed	100%	10	High	70	0 (task complete)
Legal Review	Lawyer	15-Mar-15	31-May-15	1-Apr-15		Delayed	80%	5	High	70	70*5 = 350
Detailed Specifications	IT Manager	1-May-15	31-May-15	15-May-15		Delayed	50%	30	Medium	30	30*30 = 900
Supplier Qualification	Supplier Manager	15-May-15	15-Jun-15	15-May-15		Active	40%	20	Low	0	0
Supplier Negotiation	Buyer	15-Jun-15	15-Aug-15			Planned		5	High	70	70*5 = 350
Sign Contracts	Contracts Manager	15-Aug-15	30-Sep-15			Planned		30	Very High	100	30*100 = 3000
							Totals	90			4600

Overall risk index for the initiative = 4600 / 90 = 51%

When the risk index approaches 100%, the project is at a very high risk overall. If the risk index approaches 0, then the risk is minimal.

Initiative Summary

The following table provides the key reporting values for each initiative:

Initiative	Spend Outlay / Financial Impact	Task Progress	Objective Progress	Risk Index
IT Hardware Procurement	500,000.00 USD	11% delay	6.5% delay	51%

Summary at the Operating Unit Level or Across Operating Units Using the Same Functional Currency

The following table summarizes the progress of initiatives that use the same functional currency. This summary uses weighted averages and assumes spend outlay as the weight.

Initiative	Spend Outlay / Financial Impact	Task Progress	Objective Progress	Risk Index
IT Hardware Procurement	500,000.00 USD	11% delay	6.5% delay	51%
Procurement of Communication Equipment	300,000.00 USD	2% ahead of schedule	10% delay	21%
Finding new supply-base in Korea	1,000,000.00 uSD	5% delay	2% ahead of schedule	34%
Overall (Weighted Averages)	1,800,000.00 USD	11*.5 - 2*.3 + 5*1 / 1.8 = 7.7% delay	6.5*.5 + 10*.3 - 2*1 / 1.8 = 5.1% delay	.5*51 + .3*21 + 1*34 / 1.8 = 50.7%

Important: The application does not use cancelled tasks in any calculation. Only tracked objectives are considered for calculations. Additionally, tasks placed on hold are considered for all calculations.