22Define Supplier Qualification Management

This chapter contains the following:

Define Questions, Qualification Areas, and Qualification Models

Using Questions: Explained

Questions are the building blocks of your supplier qualifications tools. As you create a repository of individual questions, they are stored in the Question Library. You can later use questions in the Question Library to create the initiatives you use for qualifying your suppliers. The questions in your repository are reusable and available to other supplier qualification managers. Additionally, category managers can open and use questions in the Question Library as requirements in Sourcing negotiations. By using predefined questions, you can quickly build your initiatives without having to redefine commonly used questions.

Creating Questions

When you create your question, you must specify the question text, how the question is used and the type of response that is expected.

The following table shows the attributes for a question and explains each one.

Question Attribute Explanation

Question

The name you use when searching for this question to add to an initiative.

Status

Statuses include

  • Draft - the question is still being developed.

  • Active - the question is available for use.

  • Inactive - the question cannot be used.

  • Archived - there is a newer version of the question.

Revision

The current version of this question. The question version is maintained automatically by the application.

Owner

The person responsible or point of contact for the question.

Question Level

The level at which the question applies: supplier or supplier site

Critical question

Checked if this is a critical question

Responder type

Whether the expected responder is a supplier or an internal employee Supplier questions are used to build the questionnaire sent to the supplier for responses. Internal questions are used to build the questionnaire sent to the internal responder.

Required Response

Checked if a response is required to the question

Mapped to supplier attribute

When suppliers register with the application, they provide information that is stored in a profile for that supplier.

You can link your question to an attribute of the supplier profile. This let the information the supplier provides in the response to be added to the supplier profile.

If the question level is supplier site, then you link to site level attributes.

Also, depending on which attribute you map to, values for Question Type and Response Type default and cannot be changed.

Question Type

The type of response for this question:

  • A simple text string

  • A single selection from a defined list of allowable values

  • Multiple selections from a defined list of allowable values

Response Type (for Question Type = text)

The format for the response

  • Single line of text

  • Multiple lines of text.

  • Number

  • Date

  • Date and Time

  • URL

Accepts comments from the responder

Lets the responder to enter comments along with the response

Response Attachments (for Question Type = text)

Whether the supplier can include attachments in the response

Preferred Response (for Question Type = text)

Your preferred response to the question and whether it should be visible to the supplier.

Scoring

Once a supplier has completed responding to an initiative, and you accept the response, you can view the supplier's responses to the initiative questions and assign the response a numeric value based on how desirable that response value is. This is called scoring the response. There are three types of scoring methods you can choose:

  • None - the question responses cannot be scored.

  • Manual - when evaluating the question response, you must score the responses manually.

  • Automatic - you can define scoring criteria and have the application perform the scoring automatically.

You can have both scored and non-scored questions in a qualification area, but if you have scoring enabled for a qualification area, you must have at least one scored question in that qualification area.

Attachments

Click to add attachments to the question. If you use Setup Migrator to migrate Supplier Qualification objects to a new environment, attachments are not carried over.

Question Text

The text of the question. The text the supplier sees on the questionnaire. You can use rich text formatting as needed.

Identifying Acceptable Response Values

You can create a question that restricts the supplier to values from a list of acceptable values. When you create the question, you also specify the values you accept for the question. You can specify a preferred value and optionally display the preferred value to the responder. When the supplier answers the question, she must choose a value from the list you provide. You can let the supplier choose only a single value or multiple values from the list. You use a supplier profile attribute that has a set of possible values defined in the supplier profile. Then, those values become the allowable response values for your question. You cannot change these values, for each response, you can also indicate whether the supplier can include attachments in the response.

Using Supplier Profile Attributes in Questions

The Supplier Profile is a standardized collection of attributes that is used by the application to define a supplier. Some examples include information such as corporate or tax information about the supplier. You can reference these attributes as question fields. When a supplier provides information for the field, and the qualification manager accepts the response, the value is used to update the supplier's profile.

Categories of business classifications are also used to describe the supplier, and a hierarchy of products and services that identify a supplier's products or services. Depending on which attribute you map to, values for Question Type and Response Type default and cannot be changed. If there are multiple possible values defined for the attribute in the supplier profile, those values include the acceptable values for the question. You cannot add or delete values to this list.

For example, one of the supplier profile attributes is Payment Terms, and there may be several different types of payment terms available. If you use Payment Terms in a question, your responder must select an answer from the list of values.

Using Question Branching

In addition to providing the supplier with a choice of allowable values for a single question, you can also use the supplier's response to an initial question to determine whether additional questions should be asked. This is called question branching. In essence, if you select a particular value for a question, you may be prompted to answer an additional question.

Modifying Questions

Modifying certain fields such as question text, acceptable responses, question type creates a revision of that question. Other fields, such as attachments that do not create a new revision of the question). If you modify an existing question, the application assigns a new version number. Any existing responses continue to be associated with the previous version. To synchronize your qualifications and assessments with the new initiative version, you must create a new initiative and include the new revision of the question using a revised qualification area.

Using Questions in Sourcing Negotiations

Category Managers use Oracle Fusion Sourcing to conduct negotiations with suppliers to determine the best provider for goods and services. Such negotiations include information about the negotiated items, but may also solicit company, licensing, performance history and other information from the suppliers participating in the negotiation. Category Managers identify such information by adding questions (called requirements) to the negotiations they then conduct with suppliers. Since this can be the same information you can obtain by using Supplier Qualification questions, Category Managers can use questions from the question library as requirements.

Question Branching: Explained

Question branching is a tool you can use to expand your qualification possibilities when soliciting information from responders. Branching lets you selectively pose additional questions depending on a supplier's answer to a prior question. For example, your initial question could ask a supplier to identify any industry trade organizations to which the supplier belongs. Then depending on which organization the supplier chooses, you might follow up with additional questions.

When creating a branching question, you create the lower-level questions first. Once your lower-level questions are created, you can then create your initial question. As you are creating your initial question and its allowable answers, you can use the follow-up question you defined previously.

For example, using the preceding scenario, you would define questions in the following order

  1. First you would create your follow-up questions. You could define these in any order.

    1. "Have you received any awards from this organization? If so attach documentation."

    2. "How long have you been a member of this organization?"

    3. "Has a representative of your company been on the governing board of this organization within the last five years?"

  2. Once you have defined your follow-up questions, you can define your primary question, for example: "To which of the following organizations does your company belong?"

  3. As you specify the list of allowable answers to your primary question (in this case, the names of organizations), for the appropriate organizations, you would link the follow-up questions to that answer.

Note that:

  • A single answer may branch to one or more questions.

  • Questions exist independently of which initiatives they are used in. A question can be a primary question in one initiative but a follow-up question in a different initiative.

Question Branching: Examples

These two scenarios show how to use question branching in simple questions. In each example, the supplier qualification manager creates a primary question and one or more follow-up questions. These questions are displayed depending on the answer to the primary question.

Scenario

Tim Jones is creating a question for use in later qualification initiatives. This question asks the supplier to identify whether the company is public or private. It accepts a single answer. If the answer to the question is "public," the supplier must answer an additional question. This question asks the supplier to specify the date the company went public. If the answer to the question is "private," the supplier does not supply any additional information.

Scenario

Carmen SantAngelo is creating a question to use when soliciting certification information for suppliers. The primary question includes a list of several possible certifications for the type of supplier. The supplier chooses all the certifications from the list that apply to the supplier company. Depending on which certification the supplier chooses, an additional question is displayed which prompts the supplier for the latest certification date.

Creating a Question: Worked Example

You create and save questions to use later in initiatives. By creating the questions separately, you can build a repository of frequently used questions for reuse. Therefore, you do not have to recreate the questions every time you want to create a new initiative.

In this scenario, Clare Furey, the supplier qualification manager, is creating questions for later use in an initiative

Creating a Simple Text Question

  1. Clare begins by navigating to the Manage Questions page.

  2. She clicks the Add icon.

  3. She enters her question on the Create Question page, as displayed in the following table. (If no information is specified, she accepts the defaults.)

    Attribute Value

    Question name

    Annual Revenue

    Owner

    She checks the default Clare Furey

    Question Level

    Supplier

    Responder Type

    Supplier

    Question Type

    Text entry box

    Question Text

    Enter your expected revenue for the current fiscal year.

  4. Once Clare enters all the information in the preceding table, she is finished defining the question. She clicks Activate and then Save and Close. She returns to the Manage Questions page.

Creating a Question with a List of Acceptable Responses

  1. She clicks the Add icon.

  2. She enters her question on the Create Question page, as displayed in the following table. (If no information is specified, she accepts the defaults.)

    Attribute Value

    Question name

    Corporate Functional Currency

    Owner

    She checks the default is Clare Furey

    Question Level

    Supplier site

    Responder Type

    Supplier

    Mapped to supplier attribute

    Clare checks the check box.

    The Supplier Profile Attribute field displays.

    Clare clicks the search icon.

    The Search and Select: Supplier Profile Attribute dialog box displays.

    She chooses Corporate Profile from the Category menu and clicks Search.

    The attributes for the Corporate Profile category appear.

    She highlights the Preferred Functional Currency attribute and clicks OK.

    Question Text

    Select your preferred currency.

  3. She enters all the information in the preceding table and finishes defining the question. She clicks Activate and then Save and Close. She returns to the Manage Questions page

Creating a Question with Question Branching.

  1. She clicks the Add icon.

  2. She enters her question on the Create Question page. (If no information is specified, she accepts the defaults.)

    Attribute Value

    Question name

    Company Age

    Question Level

    Supplier

    Responder Type

    Supplier

    Question Type

    Multiple choice with single selection

    Question Text

    Enter your company's age.

  3. This question's final answer varies depending on whether the company is less than one year old. If the company is older than one year, the resulting question prompts for an age value. If the company is not yet a year old, the resulting question prompts for a list of key investors. To define this question branching, Clare must define the test question first, so she clicks the Add icon for Acceptable Values. She must add an entry for each of the possible values.

  4. For the first allowable value, she enters "Less than one year." She then clicks the icon to edit the question branching.

  5. On the Edit Question Branching dialog box, she clicks the Search and Add icon.

  6. Searches for a question called Identify Investors. This question has been previously defined and is regularly used in many initiatives. When she sees the question in the search results, she highlights the question in the table and clicks Apply. Then she clicks OK to close the Search and Add dialog box. She clicks OK again to close the Edit Question Branching dialog box.

  7. Now that the first test condition has been taken care of, Clare defines the remaining condition.

  8. She adds another allowable value called "More than a year old." She edits the question branching for this value and identifies an existing question called More Than One Year. This question is a simple text box that prompts the supplier to enter a number.

  9. Now that she has finished defining the parent question, she clicks Activate and then Save and Close.

  10. She has completed defining her questions at this point, so she leaves the Manage Question page.

Creating a Scored Question

  1. She clicks the Add icon.

  2. She enters her information on the Create Question page. (If no information is specified, she accepts the defaults.)

    Attribute Value

    Question

    Number of employees?

    Owner

    She checks the default, Clare Furey

    Question Level

    Supplier

    Responder Type

    Supplier

    Question Type

    Multiple choice with single selection

    Question Text

    How many employees do you have?

    Scoring

    Automatic

  3. In the Acceptable Responses, Clair must specify the acceptable responses, so she clicks the plus sign. She enters the values:

    Number of Employees Score

    1 to 100

    20

    101 to 500

    30

    More than 500

    50

  4. After specifying the response values and their scores, she is done defining the question, so she clicks Save and then Activate.

Qualification Areas: Explained

Qualification areas are containers for your questions. You use a qualification area and its questions to evaluate a particular aspect of a supplier. You add one or more qualification areas to an initiative and use the questions in the qualification areas to create a questionnaire. You then send the questionnaire to the supplier and any internal responders for a response. Once all the responders have submitted replies, you and any other evaluators review the answers. If all evaluators approve the responses, a qualification for the supplier is created for that qualification area.

If you try to use a qualification area whose questions have been updated, the questions are displayed with an alert icon. You can revise the qualification area definition by using the Uptake Latest Revision. If you do not update the qualification area definition, it uses the previous version of the question.

The following table shows the attributes for a qualification area and explanations for each.

Name Explanation

Qualification Area

The name of the qualification area you are creating. This name is used as the name of the qualification.

Revision

The number of the current version of this qualification area definition. As changes are made to the qualification area definition, the Revision number is incremented.

Description

Optional description

Owner

The owner of the qualification area definition.

Expiration Reminder

Sets a future point in time before the qualification expires when the application starts sending alerts to the qualification manager. The value you set here is the default that is used for any qualification created using this qualification area. The owner of the qualification can override the value.

Attachments

You can browse to existing files and add as attachments on the qualification area. You can browse to and attach files, enter free form text, or enter a URL in the format https://some.name.com

Status

Qualification area definitions can be in one of four statuses:

  • Draft - the initial definition has not been activated for use.

  • Active - the definition is available for use in initiatives and qualification models.

  • Inactive - the definition is disabled and cannot be used. It can be reactivated for use when necessary.

  • Archived - this definition has been superseded by a more recent revision.

Qualification Area Level

Whether qualifications generated using this model apply only at the supplier site level or at both the supplier and the supplier site level.

Procurement BU

The procurement business unit that owns this definition.

Global check box and Procurement BU Access menu

These values control who can use this qualification area. The default is the procurement business unit of the creator. If you check Global, the qualification area can be used by all procurement business units in the application. Otherwise, you choose the procurement business unit which can use this qualification area. Note that you can choose multiple values from the menu.

Share Qualification with Supplier

You can expose qualification evaluation decisions to suppliers by selecting the Summary option for the Share Qualification with Supplier attribute. By selecting this option, you can control the level of information that is shared with the supplier.

  • Summary - the qualification outcome, the start date and end date.

  • Supplier response - the supplier response to the area questions.

  • Internal response - the internal responder's response to the area questions.

  • Note - you can communicate any additional information to the supplier.

Qualification Duration (only if automatically evaluating qualifications)

If you choose to have qualifications automatically evaluated, this is value is used to derive the qualification end date. The application uses the date the evaluation is performed for the qualification start date. The qualification duration is added to the qualification start date to derive the qualification end date.

Automatically populate response

If there are existing responses from a supplier's previous response to questions in this qualification area, you can choose to have the application use the existing responses when it generates a new questionnaire. This sets the default for any initiatives that use this qualification area, although a qualification manager can override the setting when defining the initiative.

Automatically populating the questionnaire with previous responses relieves the supplier of having to always answer all the questions.

Alternatively, you may want to force the supplier to answer all the questions every time (for example, you are using the questionnaire as a poll, so you want updated responses every time).

Automatically accept responses

If you choose, you can automatically accept responses to questionnaires. This allows the responses to enter the application without needing an evaluator to manually view and accept them first.

If you enable automatic response acceptance here, this sets the default for any initiatives that use this qualification area, although a qualification manager can override the setting when defining the initiative.

Enable scoring

If you enable scoring for this qualification area, it must contain at least one question with scoring defined. You must also set a weight for the question. The weight reflects the importance of that question among the other scored questions in this area. Weights are required for scored questions and the weight values must add up to 100.

You can also set a knockout score which all response scores must surpass if they are to be used in further processing. Setting knockout scores is optional.

Additionally, you define the area outcomes in terms of total scores. An area's total score is the sum of the scores of all the questions in the area. Typically, for each outcome, you specify a beginning and ending score range.

Automatically evaluate qualification (only if scoring is enabled)

You can also choose to have qualifications automatically evaluated.

Information only

An information-only area does not have any outcome.

Add icon (Question section)

Using the add icon opens up a dialog window where you can choose questions and add them to your qualification area.

Questions and Outcomes icon

Use the Questions and Outcomes icon to display the Create Qualification Area: Questions and Outcomes page where you can choose the qualification questions and add them to your qualification area. You also specify the possible question outcomes.

Question/Question text (Search and Add dialog box)

Enter the name of a question or the beginning text of a question you want to locate. You choose the appropriate questions from the search results. When you are returned to the Create Qualification Area, the questions you chose are displayed.

Weight

You can set different weights for the questions in this qualification area. The weight for a question indicates the importance of that question relative to the other questions in the area. The higher the weight, the more important the question. The sum of the weights for all scored questions in this area must equal 100.

Knockout score

You can set a minimum score that all supplier responses must beat to be considered an acceptable response to this question. If any of the required question responses fail to pass the knockout score, the application assigns the qualification an unacceptable outcome.

Add icon (Qualification Outcomes section)

Use the icon to define a possible evaluation outcome for this area.

Set as Knockout (only if scoring is enabled)

When defining an area outcome, clicking this button identifies this outcome and the one to use for any responses that do not beat the knockout score.

Outcome

The name of a possible qualification outcome. For example, you might define three possible outcomes, Best, Acceptable, and Unacceptable. You assign one of these outcomes later when you are evaluating a supplier's response, or if you are using automatic evaluation, the application assigns the outcome based on the sum of scores for all the questions.

If you have scored questions in this area, then you define the possible outcomes in terms of total score values (the sum of all the scores of all the questions) using the From Score and To Score fields. You must define one outcome to use when at least one of the required question responses doesn't pass the knock out score.

From Score/To Score (only if scoring is enabled)

If scoring is enabled this qualification area, for each possible outcome, you must identify a From Score and a To Score. When the responses to scored questions are evaluated, their scores are added together to give a total score. This total score value you use here. Effectively, this assigns responses with different total scores to different area outcomes.

Notify

(Only if automatic evaluation is enabled)

For each outcome you define, you can optionally choose to send a notification to the owner of the qualification area a notification whenever a response was automatically evaluated and assigned to this outcome.

The process for creating a qualification area includes the following steps.

  1. Define the qualification area header values, such as name, business unit access, and expiration notification values. If you intend to use this qualification area with scored questions, decide whether you want to process this area automatically (automatic acceptance and automatic evaluation), and set the attributes appropriately.

    If you intend to share qualification decisions with your suppliers, set the sharing attributes as needed.

  2. Click the Questions and Outcomes icon to display the Create Qualification Area: Questions and Outcomes page.

  3. Search for and add all the questions that are appropriate for the aspect of the supplier that you want to qualify. If you add a question that uses scoring, enter a weight for that question (the sum of all the question weights must equal 100).

  4. Define all the possible outcomes to use later when you are evaluating a supplier's response. If you add a question that uses scoring, enter a weight for that question (the sum of all the question weights must equal 100).

  5. Define any additional classification values as appropriate.

  6. Once you have completed defining the qualification area, use Activate to make the qualification area available for use.

If any changes are made to the questions contained in a qualification area, you can synchronize the latest question version with the qualification area by choosing Uptake Latest Revision. Existing qualification areas remain linked to the version of the question used when the area was created.

If you are planning changes to a qualification area, and you want to see which qualification models use the area, you can view the area definition and then choose the View Qualification Area Usage.

Using Qualification Areas in Oracle Fusion Sourcing

Category Managers use Oracle Fusion Sourcing to conduct negotiations with suppliers to determine the best provider for goods and services. Negotiations include details on the negotiated items, but may also solicit company, licensing, performance history and other information from the suppliers participating in the negotiation. Category Managers identify such information by adding questions (called requirements) to the negotiations they then conduct with suppliers. Since this can be the same information you can obtain by using qualification areas in initiatives, Supplier Qualification Management lets Category Managers copy existing qualification areas as requirement sections in their negotiations. Any qualification areas used in the negotiations must also be defined for the same procurement BU or defined as global.

Creating a Qualification Area: Worked Example

You use qualification areas to contain and organize your qualification questions. Once you have your questions added to your qualification area, you can then use your qualification areas in qualification models for use with assessment initiatives, or you can add one or more qualification areas directly to qualification initiatives.

Newton Consulting is branching into a new area of services. Clare Furey, the supplier qualification manager, is creating a new qualification area to use with future initiatives to qualify prospective suppliers.

Creating a Qualification Area

  1. Clare navigates to the Create Qualification Area: Overview page.

  2. She enters Financial Viability as the qualification area name.

  3. She accepts the default, Vision Operations, as the Procurement BU which owns this qualification area, and notes that she is assigned as the qualification manager who owns the area.

  4. She enters a description of area containing questions relating to various financial details.

  5. Since she later selects which Procurement BUs can use this area, she leaves the Global box unchecked.

  6. Since Clare did not check the Global check box, she must specify which procurement BUs can use this qualification area, so she clicks the Procurement BU add icon. When the Procurement BU dialog box displays, she scrolls through the list adding the names of the BUs that can use this area for qualifying suppliers. When she is finished listing the BUs, she clicks OK.

  7. Since Clare wants to reuse this qualification area every year to keep her supplier information current, she chooses to not reuse responses. This way suppliers will need to complete the initiative questionnaire every year with new, updated response values.

  8. The questions in this qualification area solicit general information about the suppliers' financial organization and history. None of the questions are required, and many are open-ended, so there is no need for her to view the responses and possibly reject any of them. Since she does not need to view the responses, she enables the Automatically accept responses attribute.

  9. In this qualification area, Clare uses several questions that allow scoring. If a question is scored, evaluators can assign a numeric value to the supplier response value. These response scores help you and other evaluators to compare and grade responses between different suppliers. To allow the scoreable questions to be used in this qualification area, Clare selects the check box named Enable scoring.

  10. She sets the default expiration reminder value to 30 days. Therefore, for any qualification created using this area, (unless the qualification owner changes the value), expiration reminders start going out 30 days before the qualification expires.

  11. Now Clare must add her questions, so she clicks the Add icon in the Questions region. When the Search and Add dialog box appears, she finds and adds a question called Annual Revenue. This question has been defined earlier and is typically used by all her basic supplier qualification initiatives.

  12. When she has selected the question, she clicks Apply to add it to the area, and then clicks OK to close the dialog box. The attributes for the question such as revision number, responder type, and whether a response is required appear in the question table, once the question is added.

  13. Clare continues adding questions. She could create a new question at this point by clicking Create and Add , but all the questions she needs for this area have already been defined.

  14. She defines three possible outcomes that can result from qualifications performed using the area: Good, Satisfactory, and Unsatisfactory.

  15. Once Clare is finished creating her new qualification area, she clicks Save and then Activate.

Qualification Models: Explained

Qualification models are containers for qualification areas. You use a qualification model and its qualification areas to perform a comprehensive evaluation of a supplier known as an assessment. When creating an assessment initiative, you specify a single qualification model containing one or more qualification areas. The questions contained in the model's qualification areas are used to create the questionnaire that is sent to your suppliers and any internal responders. The application creates draft qualifications and assessments when you launch the initiative.

If you try to use a qualification model whose qualification areas have been updated, an alert icon displays. You are prompted to revise the qualification model definition, by using Uptake Latest Revision. If you do not update the qualification model definition, it uses the previous version of the qualification area definition.

Once all the responders have submitted replies, you review each of the responses and either accept it or return it back to responders. The responders can update their responses and resubmit. Once you view and accept a supplier's responses as well as any internal responses associated with the supplier, all qualifications for that supplier are in Ready for Evaluation. During the evaluation step, the designated reviewers view the supplier responses and assign an outcome value. (You define the possible outcome values that are available when you define the qualification model.)When all qualifications are evaluated and finalized, corresponding assessment becomes active.

The following table displays qualification model attributes and explains the attribute values.

Name Explanation

Question Model

The name of the qualification model you are creating. This name is used as the name of the assessment.

Revision

The number of the current version of this qualification model definition. As changes are made to the qualification model definition, the Revision number is incremented.

Procurement BU

The procurement business that owns this definition

Status

Qualification model definitions can be in one of four statuses:

  • Draft - the initial definition has not yet been activated for use.

  • Active - the definition is available for use in initiatives.

  • Inactive - the definition is disabled and cannot be used. It can be reactivated for use when necessary.

  • Archived - this definition has been superseded by a more recent revision.

Global check box and Procurement BU Access menu

These values control who can use this qualification model. The default is for the model to be available to the procurement business unit of the creator. If you check Global, the qualification model can be used by all procurement business units in the application. Otherwise, you choose the procurement business unit which can use this qualification model. Note that you can choose multiple values from the menu.

Share Assessment with Supplier

You can expose assessment evaluation decisions to suppliers if you select the Summary option for the Share Assessment with Supplier attribute. If you select this option, any assessment created using the areas in this model can be communicated to a supplier when you finalize the assessments. You can choose to share:

  • Summary (outcome, start date, and end date)

  • Qualifications (qualification information included in the assessment)

  • Note to supplier - You can also add a note that the supplier can see when viewing the assessment.

Qualification Model Level

Whether assessments generated using this model apply only at the supplier site level or at both the supplier and the supplier site level.

Enable scoring

If you enable scoring for this qualification model, it must contain at least one qualification area with scoring defined, and the qualification area must contain at least one question with scoring defined.

Additionally, you define the model outcomes in terms of total scores. A model's total score is the sum of the scores of all the areas in the model. Typically, for each outcome, you specify a beginning and ending score range.

Automatically evaluate assessment (only available if scoring is enabled)

You can also choose to have assessments automatically evaluated. The application uses the scoring information defined for the model's outcomes to evaluate the assessment.

Expiration Reminder

Sets a future point in time before the qualification expires when the application starts sending alerts to the qualification manager. The value you set here is the default that is used for any assessment created using this qualification model. The owner of the assessment can override the value.

Owner

The owner of the qualification model definition

Areas and Outcomes icon

Use the Areas and Outcomes icon, to display the Create Qualification Model: Areas and Outcomes page where you can choose the qualification areas and add them to your qualification model.

Add icon (Qualification Area section)

Use the add icon to open a window where you can choose the qualification areas and add them to your qualification model.

Procurement BU/Qualification Area (Search and Add dialog box)

Enter the name of a qualification model for which you want to search. You choose the appropriate questions from the search results. When you are returned to the Create Qualification Model, the qualification areas you chose are displayed. Note that you can update the question branching for questions in this area if necessary.

Display Sequence and Outcome

You can define possible outcomes for your qualification model. Then when evaluators are viewing a supplier's response, they can assign the response a particular outcome.

From Score/To Score (only available if Enable scoring is selected)

For each outcome, you specify the range of values that include that outcome. Additionally, you identify one outcome to be used as the knockout outcome.

Knockout Outcome

Indicates which outcome is the knockout outcome.

Notify (only available if Automatically Evaluate Assessment is selected)

If you choose to have assessment automatically evaluated, for each outcome, you can choose to have the application send a notification to the assessment owner whenever an assessment that evaluates to that outcome is received.

The process for creating a qualification model includes the following steps.

  • Use the Create Qualification Model page to define the qualification model header values, such as name, business unit access, and expiration reminder values

  • Click the Areas and Outcomes icon to display the Create Qualification Model: Areas and Outcomes page.

  • Search for and add the qualification areas that are appropriate for the supplier that you want to qualify.

  • Specify any additional classification values appropriate for this qualification model.

  • Once you have completed defining the qualification model, use Activate to make the qualification model available for use.

Creating a Qualification Model: Worked Example

Qualification models contain and organize qualification areas. You use qualification models when performing a supplier assessment. An assessment initiative contains a single qualification model which itself contains one or more qualification areas. After you accept the response and review and approve the supplier's response, an assessment is created for that supplier as well as a qualification for each qualification area.

Newton Consulting is branching into a new area of services. Clare Furey, the supplier qualification manager, is creating a qualification model for future assessment initiatives she uses to assess suppliers for the new service area.

Creating a Qualification Model

  1. Clare navigates to the Create Qualification Model page.

  2. She enters Corporate Assessment as the qualification model name. The model name also the name of the resulting assessment.

  3. She accepts the default, Vision Operations, as the Procurement BU which owns this qualification model. She notes that she is assigned as the qualification manager who owns the model.

  4. She enters a description of "Model containing qualification areas relating to various details of the corporation."

  5. Since she chooses which Procurement BUs can use this area, when she creates the initiative, she leaves the Global box unchecked. Also, she notes that the Qualification Model Level value indicates the model is available for both supplier and supplier site level areas.

  6. Since Clare did not check the Global check box, she must specify which procurement BUs can use this qualification model. She clicks the Procurement BU add icon. When the Procurement BU dialog box displays, she adds the names of the BUs that can use this model for qualifying suppliers. When she is finished listing the BUs, she clicks OK.

  7. She sets the default expiration reminder value to 30 days. Therefore, for any assessment created using this model, expiration reminders start going out 30 days before the assessment expires. The assessment owner can change this value.

  8. Now Clare must add her qualification areas to her model, so she clicks the Add icon in the Areas region. When the Search and Add dialog box appears, she finds and adds an area called Financial Viability. This area has been defined earlier and is typically used by all supplier qualification initiatives.

  9. When she has chosen the area, she clicks Apply to add it to the model, and then clicks OK to close the dialog box.

  10. Clare continues adding areas. She could create and add a new area at this point, but all the areas she needs for this model have already been defined so she does not create any new ones.

  11. Once Clare is finished creating her new qualification model, she clicks Save and then Activate.

Using Rule Sets

Rule Sets: Explained

Oracle Fusion Procurement provides a functionality that you can use to solicit information from your suppliers at various points in the supplier's life cycle. You control the content and timing of the questionnaire by defining rule sets.

A rule set consists of one or more qualification areas. The questions defined to these qualification areas are used to generate a questionnaire and send it to a supplier. After the supplier receives and answers the questionnaire, you can use the supplier's response information to update the supplier profile information. You can:

  • Use existing qualification areas.

  • Create qualification areas in Supplier Qualification Management and then use them in your rule set.

    If you have to create a qualification area, note that:

    • The questions must be at the supplier level.

    • The questions must not include internal responders.

    • The questions are active.

When one of the triggering events occurs for which you have defined a rule set, the application creates a questionnaire consisting of the qualification areas that you identified in your rule set. This questionnaire is what the supplier sees. When you receive the supplier's response, you use the supplier's basic registration information and questionnaire responses to evaluate the supplier information with regards to the triggering event.

When a supplier is approved as a prospective or spend authorized supplier, his responses are stored in the Supplier Qualification Response Repository. Once the supplier's responses are in the Response Repository, you can use those responses to create qualifications for the supplier.

Registration Rule Sets: Explained

When a supplier registers, the application creates a questionnaire consisting of questions from the qualification areas that you identified in your rule set and then presents that questionnaire to the supplier. The questionnaire responses by the supplier are used to automatically create qualifications for the supplier if the rule set is configured to do that.

Creating a Registration Rule Set

Use the following procedure to create a registration rule set.

  1. In Setup and Maintenance, search on the task Manage Supplier Qualification Rule Sets and navigate to the Create Rule Set page. The application initially selects registration rule set. If you are creating a different type of rule set, click the link for the rule set type. On the Create Rule Set page, enter rule set header information:

    • Rule Set to specify the set name and optionally enter a description for the set.

    • Select a Procurement BU.

    • Whether to allow branching.

    • Whether to automatically create questionnaires.

      If you select this option, the system automatically creates qualifications on the areas that were a part of the registration questionnaire and the responses provided by the supplier are mapped to the qualification to make it ready for evaluation.

  2. Click Add Condition. On the Add Condition dialog window enter

    • Condition Type - you have two options:

      • Always displayed - the questions are always used in the questionnaire.

      • Response dependent - the questions are added to the questionnaire only if the supplier response matches the condition. If you select response dependent, you use the Create Condition dialog window to define the condition that the response must match.

        • Supplier Profile Attribute - you select this from the list of profile attributes. You can use this field and the following two fields to create a condition based on a supplier profile attribute. When a response entered by the supplier matches the condition, the qualification area for this condition are used to generate the questionnaire.

        • Operator - a relationship operator (=, <, > )

        • Value - a value appropriate to the supplier profile attribute

  3. When you are finished defining the condition, click OK.

  4. When you return to the Create Rule Set page, highlight a condition and click Add Qualification Areas. Here you specify which qualification areas are used when the condition you specified is met:

    • Procurement BU or a qualification area name - A search on Procurement BU returns a list of qualification areas owned by the BU. A search by qualification area name returns any qualification area (multiple areas if you use a partial search value). Either way, from the search results, highlight the qualification area and click Apply.

    • Business Relationship - Prospective or Spend Authorized. You can restrict the use of this condition to the appropriate business relationship value.

    • When you are finished adding qualification areas to the condition, click OK.

  5. When you are have entered all the information for your rule set, click Save and Activate.

Registration Approval Rule Sets: Explained

Use the following instructions to create a rule set to use when registration requests are approved.

  1. In Setup and Maintenance, search on the task Manage Supplier Qualification Rule Sets and navigate to the Create Rule Set page. The application defaults to a registration rule set, so click the link for the registration approval rule set type. On the Create Rule Set page, enter rule set header information: Rule Set to specify the set name and optionally enter a description for the set. Select a Procurement BU.

  2. Click Add Condition. On the Add Condition dialog menu appears, enter Condition Type. You have two options:

    • Always displayed - if you choose this option the questions are always included in the questionnaire created by the application.

    • Response dependent. - If you choose a response dependent condition, you continue on the Create Condition pop up and enter:

      • Supplier Profile Attribute - you select this from the list of attributes. You can use this field and the following two fields to create a condition based on a supplier profile attribute.

      • Operator - a logical operator )=, <, >)

      • Value - a value appropriate to the supplier attribute. You choose a value from the list of values. The values you can choose from depend on which attribute you selected.

      • Registration Source - you can choose to have the condition apply selectively based on the source of the registration request:

        • External - an external registration originates when a supplier self-registers using your registration web page.

        • Internal - an internal registration request originates when

          • A category manager submits a supplier registration request while defining a sourcing negotiation.

          • A requester submits a supplier registration request from Oracle Self Service Procurement.

          • A buyer submits a supplier registration request.

  3. When you are finished defining the condition, click OK.

  4. Once you have defined the condition, highlight it and click Add Qualification Areas. Here you specify which qualification areas are used when the condition you specified is met.

    You can search by Procurement BU or a qualification area name. A search on Procurement BU returns a list of qualification areas owned by the BU. A search by qualification area name returns any qualification area (multiple areas if you use a partial search value).

  5. When the search results display, select the row for the qualification area you want to use and click Apply. Note that you can select multiple qualification areas if needed.

    If an icon appears in the Question Branching column for a particular qualification area, it indicates that there is at least one question in the area that has branching. If you click the icon and follow the navigation, on the Question Branching page, you can expand the question to see the branching information.

  6. When you have finished selecting your qualification areas, click OK.

  7. When you have entered the qualification area information for your registration approval rule set you are creating, click Save and Activate.

Supplier Promotion Rule Sets: Explained

Use the following procedure to create a rule set to use when a supplier is promoted from prospective business to spend authorized business relationship.

  1. In Setup and Maintenance, search on the task Manage Supplier Qualification Rule Sets and navigate to the Create Rule Set page. The application defaults to a registration rule set, so click the link for the registration approval rule set type. On the Create Rule Set page, enter rule set header information: Rule Set to specify the set name and optionally, a description for the set.

  2. Select a Procurement BU.

  3. Click Add Condition. On the Add Condition dialog menu, enter

    • Condition Type. You have two options:

      • Always displayed - if you choose this option the questions are always included in the questionnaire created by the application.

      • Response dependent - If you choose a response dependent condition, you continue on the Create Condition pop up and enter:

        • Supplier Profile Attribute - you select this from the list of attributes. You can use this field and the following two fields to create a condition based on a supplier profile attribute. When responses entered by the supplier match the condition, the qualification areas under this condition are added to the questionnaire.

        • Operator - a logical operator (=, <, >)

        • Value - choose a value appropriate to the supplier attribute from the list of values. The values you can choose from depend on which attribute you selected.

  4. When you are finished defining the condition, click OK.

  5. When you return to the Create Rule Set page, highlight your condition and click Add Qualification Areas. Here you specify which qualification areas are used when the condition you specified is met.

  6. You can search by Procurement BU or qualification area name. A search on Procurement BU returns a list of qualification areas owned by the BU. A search by qualification area name returns any qualification area, or multiple areas if you use a partial search value.

  7. When the search results display, select the row for the qualification area you want to use and click Apply. Note that you can select multiple qualification areas if needed.

  8. When you have finished selecting your qualification areas, click OK. You return to the Create Rule Set page.

    Question Branching - If an icon appears in the Question Branching column for a particular area, there is at least one question in the area that has branching. If you click the icon and follow the navigation, on the Question Branching page, you can expand the question to see the branching information.

  9. After you have entered the qualification area information, click Save and Activate.

Default information Rule Sets: Explained

You can define information to be used by default by the application when generating a questionnaire, specifically instruction text on how to use the questionnaire. You can define a different set of instructions for each event:

  • Registration request submission.

  • Registration request approval

  • Business relationship upgrade

Use the following procedure to create a default information rule set.

  1. In Setup and Maintenance, navigate to the Create Rule Set page.

  2. Give your new rule set a name. You can optionally give your rule set a description.

  3. Associate your rule set with a Procurement BU. Note that you can associate your rule set with more than one BU.

  4. In Assignment Rules, click the add icon (the plus sign). You use assignment rules to specify the default owner (mandatory) and internal responder (optional) for every BU and event combination.

  5. Select the event to which this rule set applies. You can associate a rule set with an event: registration request submission, registration approval, business relationship upgrade

  6. You can optionally identify an owner for the for the qualifications and initiatives generated by this rule set when the specified event occurs for the BU. Your name appears by default in the select list, but you can search and assign the rule set to a different owner.

  7. You can identify a responder to respond to internal questionnaires that will be sent by the automatic initiative creation process.

  8. When you are finished defining all the questionnaire introduction text for the different questionnaires, click Save.