8Manage Supplier Negotiations

This chapter contains the following:

Negotiations

Your negotiation document specifies the details of the negotiation for potential suppliers. While being developed, your document can be stored as a draft until you're ready to publish it.

There are several way you can create the negotiation document. There are also tools to help simplify the creation process.

  • You can use a negotiation style to control the look of the document and the features available. A style is a good way to create a streamlined negotiation.

  • You can use a negotiation template to create a base negotiation document containing much of the line and supplier-related information. Once you have a template defined, you can reuse it without having to reenter negotiation information. You must have access to the Procurement Business Unit for this the template was defined to access it.

  • You can use requisitions in Purchasing to create a negotiation document. When you use this method, the requisition information is used to create the negotiation lines.

If you create your negotiation from scratch, as you create your negotiation, a series of train stops appear. These identify major sections of the negotiation document for which you may need to enter information, depending on the goal of the negotiation. The following descriptions describe the purpose for each negotiation section. Note that depending on which negotiation style you're using, one or more of the sections may not be available for use and so may not appear among the train stops.

How You Write a Cover Page and Specify Overview Information

You can create a cover page to associate with your negotiation document. Overview information specifies negotiation level controls.

Your cover page can include standard company text as well as document specific details. You can use variables to represent values that are used throughout the document and which may be updated often. An example could be important dates for deadlines in the document timeline. Using variables ensures that values are always synchronized. A cover page is optional.

On the Overview page, you specify many negotiation controls such as preview, open and close dates. For multilingual negotiation, you can define allowable currencies and exchange rates. You can specify many ranking and response controls.

  • Header information, including

    The negotiation title, number, description, and Procurement BU

  • Schedule controls, including

    Preview date, open date, close date, and award date

  • Negotiation controls, including

    Response visibility, display and print formats

  • Requirements controls, including

    weighting and scoring information.

  • Line controls, including

    Price tier/break information, ranking method and display, alternate response/line flags

  • Response controls, including

    rules about using multiple responses

Requirements

Requirements solicit company level information. You can use a supplier's answers to requirement questions in addition to the other response information to help evaluate the supplier's response. You can have the application score responses automatically, or you can score them yourself. Requirement scores can also be weighted to more accurately reflect their importance within the negotiation. You can use questions and qualification areas that have been defined in Oracle Fusion Supplier Qualification as requirements and requirement sections.

Collaboration Team Members

You can introduce collaboration team members with access only to scoring, where the scoring-only assigned team member will only enter scores for the requirements assigned to that person.

Negotiation Lines

Your lines are the heart of your negotiation. They identify the items and services which you're sourcing. You can add individual lines or lots or line groups. You can specify quantity details such as price breaks and line details such as line attributes for use in response ranking. You can use cost factors to identify additional line costs such as shipping or insurance.

Contract Terms

If Oracle Fusion Procurement Contracts is installed and configured, you can access contract information created and stored in Procurement Contracts and associate it with your negotiation document. Such information could identify important deliverables or contract clauses suppliers must provide along with the timeline governing the deliverable management. See help information on Procurement Contracts for details on contract terms and clauses.

Create Contracts

You can create a base contract to negotiate terms with all suppliers. The base contract doesn't contain any primary parties. Suppliers can review the negotiation contract terms as part of the response process, share their acceptance with the contract terms or suppliers can share their concerns by redlining the contract terms document.

After the negotiation is closed, and there's a consensus between you and the supplier over the redlined contract terms, you can create a contract for each supplier you want to award based on responses. The base contract is copied along with other information from the supplier's response to create the supplier contract. You can add the awarded lines to the supplier's contract.

Supplier Contacts

The Suppliers train stop gives you access to the Supplier-related pages. Using these pages, you can specify the suppliers, their sites and contacts whom you want to notify about the negotiation. You can use the search capabilities of the Supplier pages to find and identify incumbent suppliers, suppliers who are approved sources for a particular item or service, and suppliers to whom the negotiation is of particular interest. Supplier contacts you identify are sent notifications with information about the negotiation and are invited to participate. If the response control: "Restrict to invited suppliers" is enabled, only suppliers on the invitation list can participate. If you select a supplier site, then for that supplier, only contacts registered for that site can view and participate in the negotiation.

How You Review and Publish a Negotiation Document

The application validates your work as you create a negotiation document. As you move from one page to another, the application checks your work and displays any error messages applicable to the work you have completed so far. Additionally, you can use the Validate option from the Actions menu at any time. You can also use the Review train stop to review your work at a higher and more complete level. The review display presents a column of links you can use to access a particular section of the document. If you want to update a section, you can click the train stop.

Once you're finished creating the negotiation document, you publish it to make it visible and accessible within the application. Suppliers can view the negotiation during the preview period (if any) and can create draft responses, but they can't submit the response to the negotiation until its open date is reached. You can always modify the negotiation internally, for example, by inviting additional suppliers or updating the collaboration team, however, once you publish a document, you must create an amendment to make any changes the suppliers see.

If document approval rules are defined for your environment, your document may be automatically approved and published, or it may be submitted to approvers for review. Then once all approvals have been obtained, the negotiation document is automatically published.

Abstracts are negotiation summaries that you post on your external website for suppliers. Your suppliers can read information about your upcoming negotiations. They can decide if they want to participate without having to log in to the sourcing application to view information.

Abstracts are used mainly in public sector entities such as state and local governments, EMEA and US federal negotiations.

Abstract Information

When you define an abstract, you specify when the abstract information is made available. You can have the abstract posted at these times:

  • During negotiation open period to inform suppliers about the negotiation and how to participate.

  • After negotiation is awarded to publish award notice to external web site.

You can use two types of fields in your abstract definition. These fields are always available:

  • Negotiation Number

  • Title

  • Synopsis

  • Negotiation Type (auction, RFQ, RFI)

  • Preview, Open, or Close dates

  • Negotiation Status

  • Buyer

  • Attachment Description

Use the Synopsis field to describe your negotiation. The descriptive information in the field is what your suppliers see when they view the negotiation abstract.

Also, if the descriptive flexfields associated with abstracts have been enabled, there may be additional fields you can use.

If you amend the negotiation, open a new round of responding, or duplicate the negotiation to create a new negotiation document, the abstract information is copied. Abstract information is also copied over when a negotiation is saved to template.

Using Abstracts

You can manually post an abstract in draft status. You can automatically post the abstract for negotiations in submitted, preview or active status. Once you have posted the abstract on external web site, you can remove it if necessary.

Enabling Abstracts

You enable the abstract functionality in Setup and Maintenance. You must create or update a negotiation style to support abstracts (style sheets that support Two-stage negotiations have abstracts enabled by default). You must also configure the abstract listing page.

To create a style sheet that accepts abstracts:

  1. In the Setup and Maintenance work area, go to the task: Manage Negotiation Styles:

    • Offering: Procurement

    • Functional Area: Sourcing

    • Task: Manage Negotiation Styles

  2. On the Manage Negotiation styles task and click the link.

  3. On the manage Negotiation Styles page, and click the Add icon (the plus sign).

  4. On the create Negotiation Style page, from the Overview section in Controls, select the Abstract check box.

  5. Enter the remaining attributes as needed for this style.

  6. Click Save and Close. You use this negotiation style later when you define negotiations for which you want to create an abstract.

To create the Abstract Listing page:

  1. In the Setup and Maintenance work area, go to the task: Configure Procurement Business Function:

    • Offering: Procurement

    • Functional Area: Sourcing

    • Task: Configure Procurement Business Function

  2. From the search results, click the link for Configure Procurement Business Function.

  3. On the Specify Procurement BU page, select the procurement business unit for which you want to create the Abstract Listing.

  4. On the Main tab of the Configure Procurement Business Function page, in Sourcing, click Configure Negotiation Abstract Listing page.

  5. On the Configure Negotiation Abstract Listing page.

  6. Select default formats for dates, time, and negotiation numbers.

  7. Select the appropriate language and time zone for this BU.

  8. Specify a URL where you want the abstracts to appear.

  9. Finally, you can specify default header and footer text.

  10. Click Save and Close.

Using Abstracts with a Negotiation

Once you have enabled abstracts for your Procurement BU, you start adding abstracts to your negotiations.

  1. Click the Create Negotiations link from the Task panel.

  2. On the Create Negotiation dialog box, select a negotiation style that supports abstracts.

  3. On the Overview page, enter text into the Synopsis field. This text description of the negotiation is what the supplier sees when viewing the abstract.

  4. Click the Abstracts tab.

  5. In the Abstract Controls section: specify

    • Whether to include a negotiation .pdf with the abstract.

    • Whether the abstract is posted automatically. If you choose this option, you must also specify which event triggers the abstract posts.

    • A layout for the award notice and the response tabulation.

    • In any of the descriptive flexfields for the Abstract Control section have been implemented there will be additional fields which you may want to enter information.

  6. If you want to see what abstract looks like, click Preview Abstract.

  7. After you have finished defining your abstract, you can continue defining the negotiation

When creating a negotiation document, you can use placeholders called variables to represent textual entries in the document. The variables refer to pieces of information defined elsewhere in the document. After the value of the referenced information is entered, users can see the variable substituted with that value in the Preview window as well as on the Review page. Using variables lets you to ensure that the document is current and that any necessary updates are made consistently throughout the entire document.

Example of Using Variables

For example, on a negotiation document cover page, the title and open and close dates could be specified as variables. Then at a later point during document creation, when the title and open/close dates are actually specified, the variable values on the cover page would be assigned. Also, if at a later date, the title, open or close dates are modified, the variable values are automatically updated.

Negotiation controls determine which features are available to a negotiation and how they are used. The availability and default values for these controls are specified by which negotiation style you select when you begin defining your negotiation, however, you can override the values here.

Schedule Controls

You have several settings that control the negotiation time line.

  • Preview Dates

    You can choose to set a preview date for your negotiation. During the preview stage, suppliers can view the negotiation but not enter any responses.

  • Open Dates

    You can choose to open the negotiation immediately, as soon as you publish it, or you can choose a future date on which the negotiation opens for responding. If approvals are enabled for your environment, you can select a specific date, or a set number of days after the open date.

  • Close Date

    You must specify a close date. Once the close date is reached, no more responses are accepted. If the negotiation is an auction, you can optionally choose to enable the autoextend or staggered closing feature.

  • Award Date

    You can specify an award date for the information of the suppliers. Award dates are not enforced by the application. You can award the negotiation at any time after closing it.

Negotiation Controls

You have three controls that control the visibility of supplier responses and the general appearance of the negotiation document.

  • Response visibility

    Response visibility controls when suppliers can see information from competing responses.

    • Open - in an open negotiation, suppliers can see competing response information while the negotiation is active.

    • Blind - in a blind negotiation, suppliers can only see the best bid value (if allowed).

    • Sealed - in a sealed negotiation, buyers cannot see any responses until they are unlocked, and suppliers cannot see any competing response information until the responses are unsealed.

  • Negotiation layout, response layout, contract terms layout - you can select from predefined document layouts for printing.

Requirements Controls

Requirements are questions presented to participating suppliers to elicit high-level information. Supplier responses to requirements can be assigned scores for use when evaluating among competing responses.

  • Enable weights

    If you enable this control, you can weight the negotiation requirements to reflect their relative importance.

  • Display scoring criteria to suppliers

    If you enable this control, the scoring criteria specified by the negotiation author is displayed to the suppliers.

  • Default maximum score

    The default maximum score sets a default value for the highest value you can enter when scoring supplier responses. You can override this value when creating the actual requirement. However, if many of the requirements you create share the same maximum value, you can simply specify it here as the default to automatically appear.

Line Controls

You use the line control section to specify whether price tiering is available for the negotiation lines. You also specify how line rank is calculated and indicated.

  • Price tiers

    The kind of price tiers you have available depends on the negotiation outcome. If the outcome is a standard purchase order, you can only use quantity-based price tiers. If the outcome is a blanket purchase agreement, you can use either price breaks or quantity-based price tiers. If you select none, you cannot create any price tier information.

  • Rank indicator

    You can select whether the top responses are ranked using a numeric ranking (1-3), or whether only the best response is indicated. You can also choose to have no ranking shown.

  • Ranking method

    You can select whether a supplier response is ranked using the price alone, or whether responses to any line attributes are also used when evaluating response rank. If you do not select Multiattribute scoring, you can define line attributes, but you cannot score them.

Response Controls

You have several settings that control which application features are available to the supplier, and how supplier responses are handled.

  • You can restrict the participants only to suppliers which were included in the invitation list you specify for the negotiation. If you do not restrict the participants, suppliers could find the negotiation by searching the open negotiations visible in their system. They could access the negotiation and place a response.

  • You can allow suppliers to see the notes, attachments, or contract terms of other suppliers' responses. This control is only available with blind negotiations.

  • You can allow suppliers to choose which lines to respond to. With this setting enables, suppliers can choose to not respond to certain lines. If you do not enable this setting, suppliers must respond to every line in the negotiation.

  • You can allow suppliers to place multiple responses to a line. If you do not enable this setting, a supplier can only place a single response per round of responding.

  • You can choose to display the current best price to suppliers in a blind negotiation. This allows the suppliers to see what price they should beat if they submit a subsequent response. This setting is only available with blind negotiations.

  • In you allow multiple responses, you can choose to force the supplier to submit a response that is

  • Lower than the supplier's last response

  • Lower than the current best price

There are several settings you can specify to control how suppliers must respond to your negotiation. Many of the default values are inherited from the negotiation style which you select when you begin creating the negotiation, but you can override them here as necessary.

Restricting Supplier Participation

Unless otherwise restricted, a supplier can search and see any negotiation in preview or active status that is associated with a business unit to which the supplier has access. The supplier can participate in any visible negotiation unless you specify that the participants are limited to those suppliers explicitly invited. For example, you might want to limit participation in a negotiation to only incumbent suppliers. In this case, you select the "Restrict to invited suppliers" response rule.

The default for RFQs is to restrict to invited suppliers.

Allowing Line Selection

You can require a supplier to respond to all lines in the negotiation, or allow the supplier contact to select which lines she replies to. For example, if you have a large negotiation with many lines covering many different product types, you may want to allow suppliers to only respond to the items or services they provide.

Displaying the Best Price

In open negotiations, suppliers can see information from competing responses. In blind negotiations however, suppliers cannot see any other suppliers' responses. In a negotiation that allows multiple responses within the same round, you may want to display the best price value so the supplier knows how much to reduce the response price to become competitive again. You can do this by enabling the "Display best price to suppliers" response control.

Allowing Multiple Responses Per Round

Typically, a single response is allowed per supplier contact per round. However, you can allow supplier contacts to submit multiple responses within the same round. For example, you might want to allow multiple responses to foster competition among several suppliers.

You can use staggered closing to cause the closing of a negotiation's lines to cascade through the negotiation once the negotiation's initial close time is reached.

You specify the close time and date for the first negotiation line and then specify a staggered closing period. The first negotiation line closes at the negotiation time originally defined in the negotiation document. The second (and remaining) negotiation line remains open. After the specified staggered closing period, the next line closes. The remaining lines close in a similar fashion, each line closing after its preceding line. Lines in lots or groups have the same close time. When using staggered closing, the lines close in the order they are defined in the document, the sequence in which the lines appear on the negotiation document is important.

Negotiation Styles

Negotiation styles control the definition of your negotiation documents. Negotiation styles can specify the terminology used within the document and control which processing capabilities can be performed using the style. For example, you can define a simple negotiation style and then use it to create very straightforward, streamlined negotiations. Alternately, you can create a negotiation style that takes advantage of many processing features. You can then use this style to create a complex negotiation.

Using negotiation styles, you can define default textual content for use in a negotiation document. Also, you can identify which negotiation capabilities are available when using this negotiation style.

Header Information

You enter header information to describe your negotiation style.

The following table shows the header level fields used in negotiation styles.

Field Meaning

Negotiation Style

Name of the negotiation style you are creating

Description

Optional text description of the style and its usage

Code

A unique alphanumeric code to identify the style.

Status

Availability of the style for use

Document Types

You can specify which document types category managers can create using this style. You can also change the terminology used to refer to different document types and related terms. For example, you might want to change the term quote to offer.

The following table shows the fields you can define for different document types.

Field Meaning

Enable

If enable is checked, you can use this style when creating negotiations of that type.

Document Type

Type of negotiation

Negotiation Display Name

Current display name used for this type of negotiation

Response Document Type

Name of the response for this negotiation type

Response Display Name

The current display name for responses to this negotiation type

Edit Content

Icon that you can use to modify the negotiation display name and the response display name

How You Set Negotiation Controls

You can use a negotiation style to identify the negotiation features that are available using the style. You can enable or disable some controls, such as proxy bidding. Other controls are required, such as the negotiation close date. The negotiation controls that you can enable or disable are grouped according to the page they appear on. To enable a particular product feature for this negotiation style, select its check box.

Features include:

  • Two-stage RFQ

  • Integration with Oracle Fusion Project Management project plans.

  • Abstracts.

  • Team Scoring.

You can select to have the close time of your auction be automatically extended if a new winning bid is received during the final minutes of your auction. These extensions are called autoextensions and are only available with auctions.

Settings that Affect Autoextensions

The following parameters work together to control how autoextensions are performed by the applications.

Allow autoextend - allows autoextensions to be defined for this negotiation. Checking Allow autoextend displays the following autoextend controls.

Lowest Triggering Response Rank - You can choose to have an autoextension triggered for any number of the top ranked bids. For example, you could choose to have autoextension triggered whenever you receive a better bid for not only the current winning bid, but also for the current second or third best bids as well. If you know you award this line to multiple suppliers, the feature enables you to encourage competition on not just the top bid, but competing bids as well. Enable this feature by specifying the bid rank for which the receipt of a bid ranked in this position or higher triggers autoextend. If this field is left blank, any bid triggers autoextensions.

Lines to Autoextend - Identifies individual lines to autoextend. You can choose to autoextend all lines or only the lines that triggered the autoextend.

Start Time of Autoextensions - You can start autoextensions from the scheduled close time of the auction or the time that a triggering bid is received during the triggering period prior to the close time. For example, if you select "Close date" and you enable an autoextend start time of 30 minutes, if triggering bid is received within the final 30 minutes of the auction, your auction automatically extends for 30 minutes past the scheduled close time. However, if you select "Receipt time of triggering response," your extension begins as soon as a triggering bid is received within the triggering period.

Triggering Period - the period prior to the close date during which responses can trigger autoextend.

Length of Extensions - the duration of each autoextension

Number of Extensions - the number of times a negotiation autoextend. Leaving this field blank allows an unlimited number of autoextensions.

For example, you could specify a triggering period of 30 minutes, an extension length of 20 minutes, and a start time of close date. With these settings, if a triggering bid is received at any time within the last 30 minutes of the auction, the close date is moved to 20 minutes past the original close date and time.

You can create multiple negotiation styles that control the creation of your negotiation documents. Negotiation styles can specify the terminology used within the document and control which processing capabilities can be performed using the style. You can also create default content for certain sections of a negotiation document.

For example, you might create a slimmed down style that doesn't include Instructions

  • Instructions

  • Autoextend settings

  • Staggered closing

  • Cost factors

  • Contract terms

For some Sourcing capabilities, you must create a negotiation style that supports the capability. For example, to use the following capabilities:

  • Two stage RFQ

  • Project tasks

  • Alternate responses

Document Terminology

For each negotiation there is a pair of documents: negotiation document created by the category manager and a response document created by the supplier contact. Each of these documents has a label. Within the application, there are three types of negotiations: auction, RFI, or RFQ. Each type has its own document labels; however, you can change the labels used in the negotiation style. :

The following table shows the predefined values for negotiation document and response document.

Negotiation Document Supplier-side Response Document

Auction

Bid

RFI

Response

RFQ

Quote

When creating a negotiation style, you can create alternate labels for the category manager-side or supplier-side documents. Then any negotiation document created using that style replaces the default labels with the labels you created in the style. These replacements appear both in the online application and any printed versions of the document.

For example, you could use Tender or Offer for the supplier-side document, and you could use Solicitation for the buyer-side document.

Processing Capabilities and Defaults

In addition to specifying alternate document labels, you can select which processing capabilities are available using a negotiation style. By default, all capabilities are available. To create a style without that capability, simply deselect the capability when creating the style. The controls used with a negotiation style are the same controls used when creating a normal negotiation.

Note the following controls:

  • If you want to create two stage RFQs using this style, you must click the Two state RFQ check box.

  • If you want to use this style to associate a negotiation to Oracle Projects project plan information, click the Project tasks check box.

  • If you want to allow the supplier to respond with different line information, click the Alternate response lines check box.

When creating a negotiation, category managers can nominate collaboration team members to participate in the creation and administration of the sourcing document. This can include actions over the entire life of the sourcing document from the initial creation through the award process.

You must be a category manager to manage the collaboration team.

Team Members

The negotiation creator and the creator's manager are included as team members by default. Other persons can be added to the team. The negotiation creator can send new members notifications when they are added to the team. Team members can be added throughout the life of the negotiation. The person adding the member can specify whether the new member has full access or read only access to the document.

Member Tasks

Each member can be assigned specific tasks. Such tasks could include defining the item attributes, monitoring participating and inviting additional suppliers, awarding business to supplier, and generating purchasing documents. The negotiation creator can assign a date by which all the tasks must be completed.

Scoring Teams

If a negotiation accepts team scoring, the negotiation author can create scoring teams and assign collaboration team members as participants. Then the scoring team is assigned to one or more requirement sections. Once a negotiation is closed and the scoring phase is opened, members of a scoring team can view and score supplier responses to manually scored requirements that are in the sections assigned to their scoring team.

Project Resources as Collaboration Team Members

You can associate Oracle Fusion Sourcing negotiations with project tasks in Oracle Fusion Project Management project plans. Human Capital Management (HCM) labor resources assigned to project tasks will typically be part of the collaboration team for that negotiation. After you create project tasks to track key negotiation events, you assign labor resources to the tasks. You can quickly search and add project resources as collaboration team members. You must ensure that the project resources assigned to the tasks are also Human Capital Management (HCM) people. You must be a project manager on the project to manage the project plan

Category managers can nominate collaboration team members to participate in the creation and administration of the sourcing document.

Julianna, the category manager for Vision Corporation, is defining a new RFQ. There are several other members in her department who are assigned tasks to perform. Julianna will add these members to a collaboration team for her RFQ.

Define a Collaboration Team

  1. On the Edit Negotiation: Overview page, she clicks the Collaboration Team tab. She sees that she and her manager are already defined as team members. She needs to add two more members to handle the participants and monitor the responses.

  2. She clicks the plus sign icon to add a new row to the Members table. In the resulting row, she clicks in the Team Member cell and uses the Search and Select: Team Member query to select John Finn, a coworker or hers, and add him to the collaboration team. She accepts the default of Full access, and in the Task text box, she enters Monitor supplier participation and add additional suppliers as necessary. She sets the Target Date to the date when the negotiation ends

  3. She adds a new row to the table. Her manager has asked her to add a new employee to the team so he can gain experience in monitoring negotiations. She gives him view access and does not assign him any task.

  4. Julianna continues adding team members, specifying their tasks, and granting them appropriate access levels.

A strategic sourcing initiative can contain multiple stages from spend analysis to contract award to contract creation. Many organizations manage these stages as a project with numerous project team members, tasks and deliverables. Project management is often necessary to coordinate and execute on sourcing initiatives including managing tasks, allocating resources, and reporting on actual savings. Managing sourcing initiatives often requires coordination among various stakeholders, including category managers, project managers, and suppliers.

You can associate a negotiation created in Oracle Fusion Sourcing with the project plan created in Oracle Fusion Project Management. You can also associate a project task to a specific event in the negotiation life cycle, so when the negotiation event occurs, it automatically completes the project task. When the negotiation event occurs, the project task progress is updated to complete automatically.

You have the flexibility to associate a project task to multiple negotiations and also associate a negotiation to multiple project tasks.You must associate a negotiation at the project task level. Associating a negotiation at the project task level gives you the flexibility to link a single project plan to multiple negotiations or a single negotiation to multiple project plans, but it also associates the progress of a project task to a specific sourcing event that can occur in the negotiation life cycle.

Associate Negotiations with Oracle Fusion Project Management Project Plans

You can create the association between a negotiation and a project plan in two ways. You can create and associate the negotiation while you're defining the project tasks. Otherwise, you can create and associate project tasks when you define your negotiation. You must be a project manager to create a project plan.

Manage Project Task Progress

Project tasks can be associated to negotiation events that occur throughout the life cycle of a negotiation, and you can view a task's status while in Sourcing. You can only see the tasks associated with the negotiation when you view task from the context of the negotiation. When you associate a project task to a negotiation, you can optionally select a Task Completion Event for that association. This enables you to associate a project task's progress to negotiation events that occur in the life cycle of a negotiation. When the event occurs the project task progress is updated to complete automatically. These task completion negotiation events are predefined and they're of 2 types - Manual and Automatic. When a task is tied to an automatic event, the task progress is automatically updated when the negotiation event occurs. When a task is tied to a manual event, then you need to manually perform the complete task action in Sourcing to mark the event as complete.

Note the following points:

  • You can remove existing tasks tied to task completion events only if the existing tasks aren't completed, which means percent complete isn't 100%. But you can always remove existing project tasks that aren't tied to any task completion events.

  • If you amend a negotiation, then all the project tasks that aren't yet completed and pointing to the old negotiation automatically point to the new amendment. If a project task is completed, then it's not updated, and it still points to the old negotiation.

    Any changes to project plan tasks in an amendment aren't displayed on the Review Changes page.

  • No project plan information is carried over if a negotiation is duplicated or used to create a template.

You can associate different negotiation events to tasks in an Oracle Fusion Project Management project plan. You might want to do this if at various points in the project life cycle, you need to conduct a negotiation to identify suppliers. You can have multiple project plan tasks associated with a single negotiation, or you can have multiple negotiations associated with tasks from a single project plan. You can view the details about the project tasks and the associated negotiation from either Project Management or Sourcing.

In this example, Sean Pollard, a project manager is going to associate a bridge construction project with a negotiation that he is creating. Over the course of this negotiation definition, Sean will:

  • Create a negotiation to source for materials needed by the construction project

  • Identify requirements for the negotiation

  • Associate the requirements definition stage with tasks in the Bridge Construction project.

  • Create a new project to develop the procurement contract

  • Assign resources to the new project

  • Add the new project resources to the negotiation collaboration team

Associate a New Negotiation with Existing Project Tasks

In this first scenario, Sean begins creating a new negotiation. For the section that defines the negotiation requirements, he identifies resources from the project plan who should be added as members of the collaboration team. This scenario assumes that:

  • Sean has both the category manager and the project manager roles.

  • There is a project plan called Bridge Construction Project with a task called Specify negotiation requirements that is already defined in Oracle Fusion Project Management.

  • There is a negotiation style defined that allows a negotiation to include project information.

  1. Sean begins on the Sourcing work area Navigator > Procurement > Negotiations.

  2. He clicks Create Negotiation from the Tasks menu.

  3. On the Create Negotiation dialog box he accepts the default values for Procurement BU, Negotiation Type, Outcome, and Negotiation Currency. He also makes sure to select a negotiation style that supports projects, so he selects the Standard Negotiation style.

  4. He clicks Create.

  5. On the Edit Negotiation: Overview page, he enters Bridge Construction Project as the negotiation title, and selects a date three months in the future as the end date.

  6. He clicks Project Tasks.

  7. He clicks Associate Project Task.

  8. On the dialog box, he partially enters the project name, Bridge. From the autosuggest list, he selects the project name Bridge Construction Project.

  9. When the dialog box redisplays with the full project name, he uses the down arrow beside the Task field to display the list of tasks for this project.

  10. From the list, Sean selects Specify negotiation requirements, to associate this task with a negotiation event.

  11. When the dialog box redisplays with the task name, Sean uses the down arrow to display a list of Task Completion Events. He selects Requirements defined as the task completion event for this task.

  12. He clicks OK.

  13. Now Sean needs to add the project resources to collaboration team, so he clicks the Collaboration Team link.

  14. He clicks Add Project Resources.

  15. On the dialog box, he searches for his project.

  16. He clicks Search.

  17. When the dialog box reappears, it shows the resources defined to this project.

  18. Sean selects and highlights all the people defined as resources for this project.

  19. He clicks Apply and then OK.

  20. Finally, Sean returns to the Edit Negotiation: Overview page, he clicks Save to save the information associated to a negotiation.

Associate a New Project Plan with an Existing Negotiation

While associating project tasks and resources with his negotiation, Sean notices that there is no project plan that concerns creating the procurement contract information. He decides to create a new project plan that deals with the contract terms. He will create this new project plan and associate it with the contract-related events in his negotiation. This scenario assumes that:

  • There is a negotiation style defined that allows a negotiation to include project information.

  • Sean has the category manager and the project manager roles.

  1. Sean returns to the Project Tasks tab on the Edit Negotiation: Overview page, he clicks Create Project Plan. This opens a new window where he can define his project plan.

  2. On the Create dialog box, he enters Bridge Construction - Create Contract Information as the name, sets finish date to six months away, and clicks Save and Close.

  3. On the Manage Project Plan page, he clicks on the plus sign and adds a task he calls Define Basic Contract. He clicks Save and then selects the Manage Project Resources option from the menu.

  4. When the Manage Project Resources page appears, he clicks Add Resource.

  5. On the Add Project Resource pop up he clicks the down arrow next to Resource. He selects and adds the following resources to his project plan.

    Name Role

    George White

    Project team member

    Eric Schweizer

    Project team member

    Lisa Phillips

    Project team member

  6. Once he has defined all the resources for his project, he clicks Save and Close to return to the Manage Project Plan page.

  7. He clicks Save .

  8. To continue defining his negotiation, Sean clicks the Edit Negotiation: Overview tab.

Negotiation Terms and Conditions

Negotiation terms and conditions outline any legal or functional constraints under which the negotiation is conducted. These terms and conditions apply system-wide to any negotiations conducted by the enterprise.

The procurement application administrator defines the negotiation terms and conditions once (in as many of the installed languages as are necessary). Once defined, these terms and conditions are used by all negotiations.

Supplier Users and Terms and Conditions

Supplier users who want to participate in the negotiation must view and accept the negotiation terms and conditions before they can submit any responses. If there are multiple supplier users from the same supplier, only the first user must accept the terms and conditions. Any subsequent users from the same supplier are assumed to have also accepted the terms and conditions.

If you anticipate that you will receive responses to your negotiation from other countries, you can specify the conversion rates the application should use when converting responses. You can use predefined rates or define new rates yourself to be used with the negotiation.

In this example, a category manager is creating a negotiation document to use when conducting an RFQ. Since she anticipates responses from both Europe and Asia, she allows responses in several currencies in addition to the negotiation currency (USD).

Include a Negotiation Conversion Rate

  1. On the Terms tab of the Edit Negotiation: Overview page, the category manager views the default negotiation currency. She can select a different currency and specify a different precision value. She knows her negotiation is going to accept responses in currencies other than the negotiation currency. She wants to specify the conversion rates for these additional currencies, so she clicks Allow responses in other currencies.

  2. If the negotiation allows responses in currencies other than the negotiation currency, the category manager must specify the conversion rate between the negotiation currency and the response currency allowed. There may be many conversion rates that are already specified in the application. If appropriate for the negotiation, she can search for and use a particular conversion rate for a particular date. For this negotiation, the category manager wants to specify a new conversion rate, she selects User from the Conversion Rate Type menu.

  3. If she needs to allow responses in currencies other than the negotiation currency, she clicks the plus icon to add a row to the response currencies table.

  4. She selects the new currency by clicking in the Response Currency column and selecting the response currency from the drop-down menu.

  5. If she is using an existing conversion rate, she is finished specifying that currency's information (although she can change the price precision value).

  6. To specify a new conversion rate for the response currency, the category manager enters the conversion rate in the Conversion Rate column. The rate is expressed as the number of negotiation currency units equaling one response currency unit.

  7. Once she enters and saves the conversion rate value, she is ready to continue creating the negotiation document.

Create Negotiation Requirements

You can use negotiation requirements to solicit additional important information from your suppliers. This information could include company history and performance, their best practices, environmental policies, or any certifications or licenses. You create requirements for a negotiation in the form of questions. When adding requirements to your negotiations, you can either define new requirements or use predefined requirements.

In this scenario, you will

  • Add a requirement section header.

  • Add new requirement questions to the section header.

  • Specify acceptable values for an attribute.

  • Copy an existing question as a new requirement.

  • Copy an existing qualification area as a new requirement section

Add Requirement Section Headers

  1. on the Edit Negotiation: Requirements page, you select the Add Predefined Section option from the Actions menu in the Requirements section.

  2. The first requirement section contains general questions about the company. From the name drop down, you select Business, since the section will contain questions about the business structure of the supplier.

  3. When the new row appears with the empty name field, open the drop down menu and select General from the list.

Add New Requirements to a Section

  1. Once you have selected the section header, click Add Requirement to begin adding requirements to the section. When the Edit Requirements page appears, specify the first requirement attributes as shown in the following table:

    Attribute Value

    Requirement

    Enter the state where you are incorporated

    Response Required

    Yes

    Value Type

    Text (This is the default)

    Target

    (no target)

    Display Target

    No

    Scoring

    Manual

    Weight

    20

    Maximum Score

    10

    Knockout Score

    5

  2. Since you are manually scoring this requirement, there are no acceptable requirement values to specify, so you click Save and Close. Then highlight the row for the General section header and click Add Requirement to add a second requirement.

  3. You enter the requirement attributes as shown in the following table.

    Attribute Value

    Requirement

    Enter the state where you are incorporated

    Response Required

    Yes

    Value Type

    Text (This is the default)

    Target

    (no target)

    Display Target

    No

    Scoring

    Automatic

    Weight

    20

    Knockout Score

    5

Specify Acceptable Values for an Attribute

  1. Since you chose to have this requirement scored automatically, you must specify the acceptable values and their individual scores. You enter this information into the Acceptable Values table. Since this requirement requires a text data value, the format for each entry consists only of the value and its score. So you enter the allowable state values as in the following table.

    Value Score

    CA

    10

    OR

    10

    WA

    10

    NY

    5

    DE

    5

  2. Once you have specified the acceptable values for this requirements, you click Save and Close. You have created two requirements for the General requirements section. You can continue creating additional requirement sections and requirements as needed for your negotiation.

Copy an Existing Question as a Requirement

Next, you will copy an existing question as an additional requirement in the General requirement section. While still highlighting the row for the section:

  1. Click Add Predefined Questions.

  2. On the Add Predefined Questions popup, you can enter values and then search for the question you want to add. You can search on the question name or the beginning of the question text. In this example, you will add a question When does your fiscal year start? This question has a list of month values defined. These will automatically be copied over as acceptable values for this requirement.

  3. When the search results appear, select the question and click Apply and then OK. You return to the Edit Negotiation: Requirement page, and the question is added to the requirement section.

    If there is scoring information defined for a question from the Question Library, that scoring information is copied onto the negotiation. If the question is defined as optional in the Question Library, you can modify the scoring criteria for the requirement. If the question is defined as required in the Question Library, you cannot modify the scoring criteria.

Copy an Existing Qualification Area as a Requirement Section

Finally, you will copy an existing qualification area from Supplier Qualification question library. When you copy a qualifications area, the area name is used as the section name and the questions in the area are added as requirements to the area. All the appropriate attributes defined for the area and questions are copied over.

  1. From the Actions menu at the Requirements section, select the Add Predefined Qualification Area option.

  2. On the Add Predefined Qualification Area popup, you enter an area name of Certifications and Licenses. Then you click Apply and OK. The qualification area is added as a new requirement section containing all the questions are requirements. If you need to edit the questions, you can highlight it and click the edit icon (the pencil icon). If you do not need a question that was contained in the qualification area, you can highlight and click the delete icon (the plus icon).

  3. Now you have added all the requirements your need for this negotiation, so you can click Preview Questionnaire to see how the questionnaire will be displayed to a supplier.

Spreadsheet processing is a good method to use when there is a large amount of data to process. When using spreadsheet processing, you export a spreadsheet, complete it offline and then import it back to the application. Using spreadsheets offline enable process large amounts of data without having to deal with application response or network delay times. Spreadsheets also allow for easy offline review.

How You Use Spreadsheet Processing

To use spreadsheets, you export the .zip file from the appropriate page. You can export the spreadsheet in rich text format or lightweight format. The rich text format has borders but no cell lines. The lightweight format has grid lines but no borders. When saving in Excel, the rich text format results in larger files. This .zip contains the empty spreadsheet for you to complete and also includes files containing reference lists of any valid column values which the spreadsheet may require.

Once you export the .zip file and extract the contents, you can complete the spreadsheet. There are readme files containing information about how to complete the spreadsheet available from the application and the Help Portal.

After completing the spreadsheet, return to the import page in the application. Browse to the location where you saved your completed spreadsheet. Select the completed spreadsheet file and import back to the application.

The application validates your entries. You receive messages for any errors found. If there were any errors, the application backs out any updates it has done. This enables you to simply correct the spreadsheet and reimport.

How You Define and Import Requirements

You can use spreadsheet processing to add requirements to your negotiation. Spreadsheets make it easy to enter the large amounts of text that are necessary to fully explain the information you want from the supplier.

How You Define and Import Negotiation Lines

You can use spreadsheet import to define lines for any type of negotiation or negotiation outcome. This includes also defining cost factors and line attributes. When your negotiation contains many similar lines, spreadsheet processing makes it easy to copy line definitions and change only the necessary details.

How You Enter and Upload Award Decisions

You can use spreadsheet processing to analyze responses and enter award decisions. Spreadsheet fields are immediately updated and adjusted as needed as you view and fine-tune award decisions. This enable perform what-if analysis and see the results without having to import the information back to the application.

How You Submit Responses

Note that suppliers can also use spreadsheet processing to submit their responses to negotiations.

Your negotiation lines are the heart of your negotiation. Here you describe the items and services you want to purchase. On the Edit Negotiations: Lines page, you can easily define all your negotiation information, pricing information as well as other aspects of the line you want to negotiate with the prospective supplier.

As you create your negotiation lines, use the information in the following tables to complete your line fields

  • Required and Basic Fields

  • Price Calculations and Controls

  • Additional Line Information

  • Spreadsheet Import

  • Alternate Lines

Required and Basic Fields

As you create your negotiation lines, you enter values into fields. In the following tables, these fields are marked with asterisks. You must enter a value for this field, although in many cases a default value is present already and is displayed. Which fields are required varies depending on the negotiation outcome. Some fields only appear if the negotiation outcome is a purchase order, while other fields only appear if the negotiation outcome is a purchase agreement. The following table displays the required and basic fields and which negotiation outcome uses them

The following table shows the fields of a negotiation line and in which negotiation outcome they appear.

Field Used in Which Negotiation Outcomes Meaning

Line

All

The number of the line in the negotiation

Requisitioning BU

Standard Purchase Order (auction)

The business unit requesting the item or service.

Line Type

All

The type of line, for example goods or services

Item

All

Item identifier

Revision

All

The latest revision number of the item

*Description

All

Text description of the line

*Category Name

All

Category containing the item

*Quantity

Standard Purchase Order

Number of units being negotiated for

Estimated Quantity

Blanked Purchase Agreement

The expected number of units to be purchased over the life of the agreement.

*Unit of Measure (UOM)

All

Unit of measure

Estimated Total Amount

Blanket Purchase Agreement

The estimated amount of business (in the negotiation currency) that you expect to pay for this line

Minimum Release Amount

Blanket Purchase Agreement

The minimum amount which can be released against an agreement.

Location

Standard Purchase Order

The name of the address where you want the item or service to be delivered. Not entering a location results in the default location being used.

Requested Delivery Date

RFI

The date the buyer would like to accept delivery of the line

Requested Ship Date

Standard Purchase Order

The date the buyer would like the supplier to ship the line item units

Current Price

All

The price currently being paid for one unit of the item

Start Price

All

The item price at which responses to the negotiation should begin

Target Price

All

The price the buying organization wants to pay for one unit of the item

Display Target Price

All

Whether to display the target price to a responder

Note to Suppliers

All

Any text notes or comments for the suppliers

Allow Alternate Lines

All

Allows the supplier to respond with a line different from the defined negotiation line

Edit

All

The edit icon.

Pricing Calculations and Controls

There are two optional fields you can use to control and report on price competition. The Start Price value controls responding and requires that the supplier enter the initial response at a price lower that the Start Price value. The Current Price value specifies how much you are currently spending for one unit of the item or service. If you enter a current price value, Oracle Sourcing can calculate and display the savings. The savings values are useful later when analyzing competing responses.

Additional Line Information

In addition to price, there is other information you can add to your lines and negotiate with your potential supplier.

Cost factors identify additional costs which may be associated with the item or service. Such additional costs could include customs duties, storage, or transportation. You can identify these costs with your negotiation line and include supplier responses into the total cost of the line when analyzing responses.

You can use price breaks and price tiers to negotiate pricing structures. You can create price breaks for negotiations with a purchase agreement outcome based on location, quantity, and start/end dates. You can define price tiers for all negotiation outcomes based on quantity alone.

You can use line attributes to obtain detailed information about the supplier's response to the negotiation line. Line attributes target information other than price which could be important when evaluating supplier responses. You can allow suppliers to enter free form text, or require them to select from a predefined list of acceptable values. If the negotiation is a multiattribute negotiation, you can enter response score values, and the Sourcing calculates the score for a particular response. A line can have multiple attributes and each attribute can be weighted to reflect the relative importance of that attribute for the line.

There are two methods for adding attributes to a line. You can create and add multiple single attributes to a line, or you can add one or more predefined lists of attributes called an attribute list. If predefined grouping labels (called Attribute Groups) are defined in your application, you can use these labels to structure your attributes and attribute lists.

Lots and Groups

Category managers can define lots that contain a collection of lines, giving a hierarchical structure to the sourcing document. A lot may be an assembled product or lines may be organized into lots to obtain the most competitive response. Suppliers are required to evaluate the entire lot and place a response at the lot level. Suppliers may optionally provide line-level responses as well. Category managers analyze the responses and make award decisions at the lot level. When the category manager creates a purchasing document from the award, awarded lots are transferred to purchasing document lines.

Negotiation lines can also be organized into groups for ease of analysis and award. Groups are collections of related lines that allow category managers to model market baskets. Suppliers respond to individual lines within the group, and pricing information is automatically rolled up to the group level for enhanced analysis. Category managers can analyze and make award decisions for the entire group, or they can choose to select the best supplier responses for individual lines within the group. Awarded lines are transferred to the purchasing document, if the category manager created one from the award.

A lot is a complete negotiation line on its own. As such, it can have line attributes, cost factors, and any other characteristics a negotiation line. A group is simply a named collection of negotiation lines. Groups have no attributes other than price (which is the sum of all its line price values). Lots and groups must have at least one subordinate line defined. You cannot insert lots within groups or groups within lots. You can add independent lines into lots and groups (although you cannot move a line with a backing requisition into a lot), and you can move lot lines and group lines into other lots or groups.

Spreadsheet Import

You can use the spreadsheet import feature to streamline the creation of large numbers of lines. You simply export and save the spreadsheet template. Using the reference information, you complete the spreadsheet with your line information. Once the spreadsheet is completed, you import it back into the application. During the import process, each line is verified. If any error is found, all line information is reversed, and error messages alert you to the problems the application found. You can correct the spreadsheet and reimport to correct the problems.

Alternate Lines

If you want, you can allow your supplier to respond with an alternate line. This alternate response line is in addition to the supplier's response to the line you originally defined to the negotiation. The supplier might want to add a new line to suggest alternate response information such as a different set of price breaks, cost factors, line attributes, or UOM specifications. To allow alternate lines, on the Create Negotiation: Overview train stop, you must set the Allow Alternate Lines option to yes. Then when defining your separate negotiation lines, set Allow Alternate Lines to Yes.

Negotiation Terms

You can use the Terms tab to specify the payment or discount conditions as well as the transportation arrangements

You can also use the Terms tab to set up currency conversion rates for multi-currency negotiations.

Agreement Terms

These terms apply only to agreements (blanket purchase agreement or contract purchase agreement)

The following table shows the negotiation terms that are related to agreements and an explanation for each term.

Field Meaning

Agreement Start Date

The date on which the agreement becomes effective

Agreement End Date

The date on which the agreement expires

Agreement Amount

The expected final amount over the lifetime of the agreement

Minimum Release Amount

This amount restricts the association of the agreement to a PR release if the released amount is not greater or equal to the minimum amount.

Payment and Shipping and Handling

These terms specify the payment and transportation arrangements that are used on the purchase documents.

The following table shows terms related to payment and shipping and handling.

Field Meaning

Payment terms

The terms used to schedule payments and to calculate due dates, discount dates, and discount amounts for each invoice.

Shipping Method

The shipping method you want the supplier to use

Freight terms

The terms that determine whether you or your supplier pay for freight charges

FOB

The point during the shipping process at which you accept responsibility for the item

Buyer managed transportation

Indicates that you are responsible for arranging the transportation, from picking up the requested goods to delivering to ship-to locations specified on the order.

Multi-Currency

When you create your negotiation, the negotiation currency is set according to the Procurement BU that owns the negotiation, although you can change that if necessary. You can specify the price precision (or number of decimal places) that is used in any calculations performed.

If you have suppliers who want to respond in a different currency, you can also identify any additional currencies in which you accept responses. To enable multi-currency negotiations, check the Allow responses in other currencies check box. You must specify the additional currency and specify an conversion rate between the negotiation currency and that response currency.

By Importing negotiation lines by spreadsheet you can effectively reduce negotiation creation time by completing a spreadsheet file offline and then using that file to import your line information. This feature is especially useful for negotiations with a large number of lines or complex lines with multiple attributes. This topic contains instructions on how to complete the spreadsheet file and import it to your new negotiation.

The .zip file you export contains a template for you to fill out. You have other reference files containing any cost factors, UOM values, and attribute groups in the application in case you need to use them.

Once you have exported the appropriate spreadsheet files, fill in the template file with your negotiation line information. The following table describes each spreadsheet field in detail and indicates which fields are required and which are optional. Required fields are marked with an asterisk (*). You must enter a value for a required. You don't have to enter a value for an optional field.

The table also explains each field's length restrictions. If a field's maximum data length is 4000 characters, the length for a multi-byte language such as Japanese the limit is smaller. If the field length is less than 4000 characters, the maximum length is the same for both single-byte and multi-byte languages.

The table shows the fields as they appear in the exported spreadsheet. Some columns always appear while other columns appear depending on which negotiation outcome is selected, standard purchase order or blanket or contract purchase agreement. Generally, you can rearrange the column sequence but don’t change the column titles. The attribute, cost factor, price breaks, and price tier columns are an exception to this rule. They should not be rearranged. Be sure that the End of Line Delimiter column is the last column of your spreadsheet. You may also delete optional columns; see the Note following the table for more details.

Notes: All date, time and price format settings should be the same as your user preference settings in the application; for example, 1212,40 vs. 1,212.40. When entering numeric values into the specified fields, set the cell format as Text; other formats might result in error upon importing. If the format is Text and the length is longer than 255 characters, set the cell format as General.

Note that the application treats the values you enter as case sensitive. For example, Lot line is correct, Lot Line isn’t and causes an error.

How You Add Negotiation Lines Spreadsheet Column Explanations

The table shows the different fields available in the import lines spreadsheet. It explains which fields are used with which negotiation type and outcome.

Column Name All Outcomes Purchase Order Outcome Only Purchase Agreement Outcome Only

Line with Price and Quantity (applicable to RFIs only)

Enter Yes to create a line requiring price and quantity values.

NA

NA

* Type

Select the type of line you’re defining. Valid entries include Line, Lot, Lot line, or Group, Group line.

To create a lot, first define a row for the lot, and then define a row for each of the lot lines.

Lots and lot lines are defined the same way as regular lines. That’s, they can have line attributes, cost factors and other line-related characteristics. Make sure you define your lot lines immediately after the lot row.

To create a group, first define a row for the group, and then define a row for each of the group lines. Group level rows are defined differently from regular lines. They can’t have line attributes, cost factors or other line-related characteristics. When defining a group level entry, enter values only for the Type, Description and End of Line Delimiter columns. Make sure you define your group lines immediately after your group row.

Group lines rows are defined the same way as regular lines and can have attributes, cost factors, and other line-related characteristics.

NA

NA

Description

Enter a description of each line you want to purchase.

This column has a maximum length of 2500 characters.

NA

NA

Requisitioning BU

The business unit requesting the item or service. This column doesn’t appear if you’re using standalone Sourcing.

NA

NA

Line Type

Distinguishes between quantity-based and services-based lines.

Select one of the predefined values set up in the application.

NA

NA

Item

Enter the item number based on the value in the Item Master in the application.

NA

NA

Revision

Enter the item revision number.

NA

NA

Category Name

The category name describes the broad family or category to which the line belongs. The application has predefined categories for all items.

NA

NA

Quantity

NA

Enter the number of units (in terms of the unit of measure you defined) you want to purchase.

NA

Estimated Quantity

NA

NA

The estimated number of units of the item required, in the buyer's specified unit.

UOM

Enter the unit of measure in which you want to negotiate for the line if it’s different from the UOM associated to that line type.

See the AddLinesUOM.txt file in the .zip for available UOM values.

NA

NA

Location

NA

Enter the name of the address where you want the item or service to be delivered. Not entering a location results in the default location being used. If this is a new location, you must first enter the location online before you can use it in this template.

NA

Requested Delivery Date

NA

To request delivery to your location address on a specific date, enter that delivery date in this column. Make sure you use the same format in the spreadsheet as the date format in your user preferences for the application.

NA

Estimated Total Amount

NA

NA

Estimated amount of business in dollars that you expect to pay for this line.

Minimum Release Amount

NA

NA

Enter the minimum amount which can be released against an agreement.

Current Price

Enter the price at which you currently buy one unit of the item or service. If you plan to add cost factors to a line, this value represents the Total Current Price for one unit of the item or service. The price should be entered in numeric format (for example, 5.75).Five seventy-five is invalid. Omit currency signs. Current price is used by the application when calculating savings.

NA

NA

Start Price

Enter the starting response price for one unit of the item or service you want to purchase. If you plan to add cost factors to a line, this value represents the Start Price Total for one unit of the item or service. Use the unit of measure and currency you have specified for this negotiation. The price should be entered in numeric format (for example, 5.75). Five seventy-five is invalid. Omit currency signs.

NA

NA

Target Price

Enter the price at which you want to purchase one unit of the item or service. If you plan to add cost factors to a line, this value represents the Target Total Price for one unit of the item or service. State the price in terms of the unit of measure and currency that you have specified for this negotiation. The price should be entered in numeric format (for example, 5.75). Five seventy-five is invalid. Omit currency signs.

NA

NA

Display Target Price

Enter Yes or No to indicate whether you want to display the target price to the suppliers. The application defaults to No if you don't enter a value.

NA

NA

Allow Alternate Lines

Designate whether the supplier can enter an alternate line in response to this negotiation.

NA

NA

Note to Suppliers

Enter a text note to the suppliers who submit responses on the item or service you want to purchase.

This column has a maximum data length of 4000 characters.

NA

NA

Line Target Price

Enter the total target price of your line excluding any cost factors. This column only appears if cost factors are enabled for this negotiation.

NA

NA

Display Line Target Price

Enter Yes or No to indicate whether you want the line target price to be displayed to suppliers. This column only appears if cost factors are enabled for this negotiation.

NA

NA

Cost Factor

Enter the name of any cost factor to which you want the suppliers to respond. This column only appears if cost factors are enabled for the negotiation.

A text file AddLinesCostFactors.txt is included in the exported .zip.

The Cost Factor column and the three following columns comprise the group of columns used to define a single cost factor for this line. Insert and complete a new group of the four columns for each additional cost factor associated with this line.

NA

NA

Pricing Basis

Enter per unit, fixed amount or percentage of line price, to specify how the particular cost factor value is calculated. This column only appears if cost factors are enabled for the negotiation

NA

NA

Cost Factor Target Value

Enter the target value of the cost factor. This column only appears if cost factors are enabled for the negotiation

NA

NA

Display Cost Factor Target

Enter Yes or No to indicate whether you want the cost factor's target value to be displayed to suppliers. This column only appears if cost factors are enabled for the negotiation

NA

NA

Suppliers Modify Price Breaks

Enter Yes or No to provide the supplier with the ability to modify the price breaks.

NA

NA

Price Break Type

Select Cumulative to apply the price break to the cumulative quantity on all released shipments for the item as part of the blanket purchase agreement.

Select Noncumulative to apply the price break to quantity purchased on a single release against the blanket purchase agreement.

NA

NA

Price Break Ship-to Organization

Ship-to organization where the price break applies.

NA

NA

Price Break Location

Ship-to location where the price break will be applied.

NA

NA

Price Break Quantity

Specify the quantity for which this price break is requested.

NA

NA

Price Break Target Price

Specify a price that the buying organization wants to pay for one unit of the item.

NA

NA

Price Break Start Date

Specify the start date for delivering the items for which this price break is requested.

NA

NA

Price Break End Date

Specify the end date for delivering the items for which this price break is requested.

NA

NA

Price Tier Minimum Quantity

Specify the minimum quantity the buying organization requires for this quantity-based price tier.

NA

NA

Price Tier Maximum Quantity

Specify the maximum quantity the buying organization requires for this quantity-based price tier.

NA

NA

Price Tier Target Price

Specify a price that the buying organization wants to pay for one unit of the item for this quantity-based price tier.

NA

NA

Attribute

Enter the name of the line attribute you want to define (Example: PPM rate, grade).

The Attribute column and the five following columns comprise the group of columns used to define a single attribute for this line. Insert and complete a new group of the six columns for each additional attribute associated with this line.

NA

Maximum character length 4000 characters

Attribute Group

Used to categorize attributes. If a value for Attribute Group isn’t defined, the default Attribute Group value is used. See the AddLineAttributeGroups.txt spreadsheet included in the .zip for the group values available to this negotiation.

NA

Maximum length 240 characters

Attribute Response

Enter Required, Optional or Display only to indicate how you want the suppliers to respond, and whether or not entering a response value is required or optional. If this is a multiattribute scoring negotiation and you want to score the attribute, then it must be Required.

NA

NA

Attribute Value Type

The format of the attribute value you want to specify and need suppliers to enter. Enter Text for text, Number for number, Date for date or URL for URLs. Text can display all types.

NA

NA

Attribute Target

The target value for the attribute. Your entry must match the Attribute Value Type you specify.

NA

Maximum length 4000 characters

Display Attribute Target

Enter Yes or No to indicate whether you want the attribute target to be displayed to suppliers.

NA

NA

* End of Line Delimiter

Enter EOL.

NA

NA

The spreadsheet template contains the six columns (Line Target Price , Display Line Target Price, Cost Factor, Pricing Basis, Cost Factor Target Value, and Display Cost Factor Target) that are required to define one cost factor. If you want to enter more cost factors, for each additional cost factor, copy the last four columns (Cost Factor, Pricing Basis, Cost Factor Target Value, Display Cost Factor Target) and insert them after the existing six columns. You can enter as many cost factors as you want. Cost factor columns can be blank. For example, you may want to have the first cost factor for every line to be Tooling. However, if Tooling doesn’t apply to a particular line, simply leave the columns referring to Tooling blank for that line.

The spreadsheet template contains eight columns of which one column Suppliers Modify Price Breaks is common for all price breaks and the columns Price Break Type, Price Break Ship-to Organization, Price Break Location, Price Break Quantity, Price Break Target Price, Price Break Start Date, and Price Break End Date are required to define one price break. Also, the eight columns must be treated as a group: either all columns are deleted or none are deleted.

The spreadsheet template contains three columns Price Tier Minimum Quantity, Price Tier Maximum Quantity, and Price Tier Target Price that are required to define one price tier. Also, the three columns must be treated as a group: either all columns are deleted or none are deleted. During an import, either price break or price tier can be added.

The spreadsheet template contains the six columns (Attribute, Attribute Group, Attribute Response, Attribute Value Type, Attribute Target, Display Attribute Target) that are required to define one attribute. If you want to enter more attributes, simply copy the attribute columns and insert them at the end of the spreadsheet immediately preceding the End of Line Delimiter column. You can enter as many attributes as you want. Attribute columns can be blank. For example, you may want to have the first attribute for every line to be Grade. If Grade doesn't apply to a particular line, simply leave the columns referring to Grade blank for that line.

You can modify the spreadsheet files by deleting any of the optional columns although you can’t delete these columns: Action (when creating amendments or new rounds of responding), Type, Internal Line ID (when creating amendments or new rounds of responding), End of Line Delimiter. Also, the six attribute columns and the six cost factor columns must be treated as a group: either all columns are deleted or none are deleted.

If you’re creating a multiattribute scoring negotiation, you must enter the scores and weights details online after the lines are imported.

Lookup Files

Three lookup files are included in the .zip file you export from the application. These files contain the values defined in the application for

  • Attribute groups

  • Cost Factors

  • UOM values

For cost factors and UOM values, you can use values contained in these files to complete the template as appropriate. If you try to use a value that doesn't exist, your import process returns an error. If you need additional or different cost factors, or UOM values, you must define them in the application first.

For attribute groups, you can use the predefined ones, or you can create ones in the spreadsheet.

The table shows the fields in the attribute lookup file.

Name Description

Attribute Group

The name of the attribute group

Description

Description of the attribute group.

The table shows the fields in the cost factor lookup file.

Name Description

Cost Factor

Name of the cost factor.

Description

Description of the cost factor.

Pricing Basis

Method used to calculate the cost factor.

The table shows the fields in the UOM lookup file.

Name Description

UOM

Name of the UOM.

Description

Description of the UOM value.

Import Your Line Information

  1. Once you have completed your spreadsheet, save it to the location of your choice. Your spreadsheet must be saved as a tab delimited file.

  2. Return to the application. Follow the directions to import your completed spreadsheet.

  3. When the application receives your spreadsheet for import, the spreadsheet validation process occurs and your imported lines appear on the screen.

  4. If the application discovers errors on your spreadsheet, the spreadsheet lines on which those errors occurred are identified, and the application notes the specific error that occurred. Errors are diagnosed in 3 phases:

    • Phase one checks file errors.

    • Phase two checks column errors.

    • Phase three checks field errors.

    Errors are listed in a table, which identifies the Spreadsheet Row Number, Column Title, Value, and Error that occurred. Common errors include:

    • File errors occur when your spreadsheet file type or file format doesn't match the import format type supported by the application. For example, if you import a word-processing file which the application doesn't recognize, a file error occurs.

    • Format errors occur when information that you entered in your spreadsheet can’t be understood by the application. For example, if you enter alphabetic characters into fields where only numeric characters are expected, a format error appears. Also check that the column names and column sequence in the file you’re importing matches the names and sequence in the file you exported.

    • Validation errors occur when information that you entered on your spreadsheet doesn't match corresponding information already held within the application. For example, if you enter values for UOM or, Category Name that the application doesn't recognize, a validation error occurs.

  5. If any of your spreadsheet lines contain errors, the application indicates the necessary corrections. Open the spreadsheet file you tried to import, make changes where necessary, save the file, browse to locate the updated file, and run the import process again. Note: If any error occurs during the import, none of the lines are loaded. Note also that since the errors are checked in phases, you may need to try importing more than once to fix all the errors and obtain a clean import.

  6. If the application detects no error on your spreadsheet, all of your negotiation lines import successfully. You can then edit any of your lines.

  7. Once your negotiation lines import successfully, continue the negotiation creation process.

Example of Importing Lines into a Negotiation

In this example the category manager uses spreadsheet export and import to add lines to an agreement negotiation for janitorial supplies that she is creating. Specifically, she adds

  • 10 lots of cleaning supplies. Each lot has

    • One line for 100 dozen cleaning brushes,

    • One line for 90 dozen cleaning rags,

    • One line for 50 dozen cleaning brooms,

  • A group of cleaning solutions consisting of

    • 20 gallons of cleaning solvent.

    • 15 gallons for cleaning disinfectant.

Using these instructions, she exports the spreadsheet .zip, opens it, and completes the template according to the details in the tables described earlier. Notice that possible cost factors and line attributes aren't shown in this example, but could also be included if appropriate. Once the template is finished, it looks like the following:

The table shows the sample initial spreadsheet.

Type Description Line Type Item Revision Category Name Estimated Quantity UOM Other Columns... End of Line Delimiter

Lot

Cleaning Supplies

Goods

NA

NA

Miscellaneous maintenance supplies

10

EA

NA

EOL

Lot line

Cleaning brushes

Goods

NA

NA

Miscellaneous maintenance supplies

100

Dozen

NA

EOL

Lot line

Cleaning rags

Goods

NA

NA

Miscellaneous maintenance supplies

90

Dozen

NA

EOL

Lot line

Cleaning brooms

Goods

NA

NA

Miscellaneous maintenance supplies

50

Dozen

NA

EOL

Group

Cleaning Solutions

NA

NA

NA

NA

NA

NA

NA

EOL

Group line

Solvent

Goods

NA

NA

Miscellaneous maintenance supplies

20

Gallon

NA

EOL

Group line

Disinfectants

Goods

NA

NA

Miscellaneous maintenance supplies

15

Gallon

NA

EOL

She returns to the application and imports the completed spreadsheet. If there are any errors, they’re displayed. She corrects the errors and imports again. Note that since errors are checked in phases, it may require more than one import to correct all errors.

Additional Instructions for Multiple Rounds of Responding or Amendments

You can use the line import spreadsheet to amend the list of lines in a subsequent round of responding. When you start a new round of responding you can add, delete, and update lines from a spreadsheet. This gives you the flexibility to quickly launch the new round. To adjust the list of lines using a spreadsheet you typically follow these steps:

  1. Export the spreadsheet template. It includes the lines already available from the previous round.

  2. Make the appropriate changes to the line.

  3. Import the modified spreadsheet.

  4. Confirm the modifications.

The spreadsheet template you import between rounds of responding is slightly different than the one used to create the original negotiation lines. The main differences are:

  • The exported spreadsheet is populated with the lines available from the previous round.

  • The template includes five additional columns as shown.

The table shows the fields in a spreadsheet used in a multi-round negotiation.

Column Name Description

From Requisition

The Yes or No value indicates whether the line was created from a requisition in the previous round. If the value is Yes, then don’t modify these values for the next round: Requisitioning BU, Line Type, Item, Revision, Description (if Item is specified), Category Name, UOM, and Location.

From Agreement

The Yes or No value indicates whether the line was created from an agreement in the previous round. If the value is Yes, then don’t modify these values for the next round: Line Type, Item, Description (if Item is specified), and Category Name.

Line

The current line number as displayed in the negotiation. This column is for reference only and helps you identify the lines that you want to update or delete. don't modify the values in this column.

Leave this column empty if you’re adding a new line.

Note that existing line numbers don't change.

Action

Specify to add, update, or delete the line. You can enter one of these values:

  • + to add a new line.

  • - to delete an existing line.

  • # to update an existing line.

If you leave the Action column blank, the application ignores the row, leaving the line unchanged.

Note: If you’re using Excel, use the Tab key to exit the Action column.

Internal Line ID

Application generated ID that’s populated when you export the spreadsheet template. don't change the values in this column.

If you’re adding a new line, leave the Internal Line ID column blank.

Internal Line ID must be the last column before the End of Line Delimiter column.

For example, assume your initial spreadsheet looks like this:

The table shows the sample initial lines spreadsheet.

Line Number Action Type Description Estimated Quantity UOM Other Columns... Internal Line ID End of Line Delimiter

1

NA

Lot

Cleaning Supplies

10

EA

NA

123.221

EOL

1.1

NA

Lot line

Cleaning Brushes

100

Dozen

NA

123.321

EOL

1.2

NA

Lot line

Cleaning Rags

90

Dozen

NA

234.432

EOL

1.3

NA

Lot line

Brooms

50

Dozen

NA

345.654

EOL

2

NA

Group

Cleaning Solutions

NA

NA

NA

345.745

EOL

2.1

NA

Group line

Solvent

20

Gal

NA

346.234

EOL

2.2

NA

Group line

Disinfectants

15

Gal

NA

3467.121

EOL

Amend the line list and import the spreadsheet.

  • To modify a line, enter a '#' in the Action column. You can change any attribute between rounds of negotiating. Scores and weights are automatically copied over to the next round if matching attributes are found.

  • To delete a line, enter a '-' in the Action column.

  • To add a line, enter a '+' in the Action column and follow the steps indicated in the previous section to complete the remaining columns. Lines are defined the same way that you entered them when you created the previous round of negotiation. don't enter a value for the internal line ID for the line that you’re adding.

Continuing the example, you can modify the spreadsheet to delete line 1.2, change the Quantity of line 1.3, and add a new line:

The table shows the example spreadsheet with modifications.

Line Number Action Type Description Estimated Quantity UOM Other Columns Internal Line ID End of Line Delimiter

1

NA

Lot

Cleaning Supplies

10

EA

NA

123.221

EOL

1.1

NA

Lot line

Cleaning Brushes

100

Dozen

NA

123.321

EOL

1.2

-

Lot line

Cleaning Rags

90

Dozen

NA

234.432

EOL

1.3

#

Lot line

Brooms

75

Dozen

NA

345.645

EOL

NA

+

Lot line

Mops

5

Dozen

NA

NA

EOL

2

NA

Group

Cleaning Solutions

NA

NA

NA

345.745

EOL

2.1

NA

Group line

Solvent

20

Gal

NA

346.234

EOL

2.2

NA

Group line

Disinfectants

15

Gal

NA

3467.121

EOL

The table shows list of updated lines.

Line Number Action Type Description Estimated Quantity UOM Other Columns Internal Line ID End of Line Delimiter

1

NA

Lot

Cleaning Supplies

10

EA

NA

123.221

EOL

1.1

NA

Lot line

Cleaning Brushes

100

Dozen

NA

123.321

EOL

1.3

NA

Lot line

Brooms

75

Dozen

NA

345.645

EOL

1.4

NA

Lot line

Mops

5

Dozen

NA

568.245

EOL

2

NA

Group

Cleaning Solutions

NA

NA

NA

345.745

EOL

2.1

NA

Group line

Solvent

20

Gal

NA

346.234

EOL

2.2

NA

Group line

Disinfectants

15

Gal

NA

3467.121

EOL

Quantity-based price tiers and price breaks allow you to negotiate line prices with your supplier based on characteristics of your order. For example, with both price tiers and price breaks, you may expect to receive a discount from your supplier if you buy a large quantity of units, and you may specify several quantity levels and the prices you are willing to pay at each. Or by negotiating using price breaks, you may additionally choose to pay more per unit if your supplier can ship the order to a special location or by a certain deadline.

You can define two types of price adjustments for a negotiation document: quantity-based price tiers and price breaks. If tiers or breaks are defined, suppliers must reply by entering prices, or modifying the tiers or breaks (if the negotiation creator allows price break modifications). If there are no tiers or breaks defined, the supplier can add tiers or breaks. You can only use quantity-based price tiers or price breaks if the negotiation style you are using allows them..

Quantity Based Price Tiers

Quantity-based price tiers apply only to the quantity of units for your negotiation line. You can add quantity-based price tiers to all negotiations regardless of negotiation outcome. Suppliers can respond to the defined price tiers, modify or delete the defined price tiers, or add their own. For quantity-based price tiers, only the price tier in effect for the awarded line is passed to the purchasing application.

Price Breaks

You can specify price breaks for a location, a date range, and quantity. You can allow suppliers to modify and offer different price breaks. Price breaks can only be used with purchase agreements. For price breaks, the information about the entire price break structure applicable to the awarded line is passed to the purchasing application.

Line attributes identify additional information about an item or service requested by the category manager. Use the following properties to describe your line attribute when defining it.

You use a line attribute's properties to control its behavior and how the supplier should respond.

Response

You can control the supplier's interaction with the attribute by specifying the response type. Optional responses don't require a supplier to offer a response. Suppliers must however provide a value for a required response. Suppliers can view attributes which are display only, but they can't respond to them.

Value Type

Value type specifies the data type for the attribute value. There are four value types available. A text value accepts characters and numbers. A number value accepts only numbers and the decimal point. Date values accept dates that you select using the calendar picker. A URL value type accepts a URL in the format http://url.name.here. URLs also accept https:

Target

For each attribute, you can define a target value. This is the value which is most desirable for this attribute. You can also display the value to the supplier or keep it hidden.

Acceptable Values

For text values, you can specify a list of values from which the supplier can select. Any value not defined to the list isn't accepted. For number and date values, you can define value ranges in terms of From Value and To Value. If you omit a From Value, that range includes everything up to the To value. Likewise, if you omit a To value, the range includes all values starting at the From value and above. Ranges can't overlap. You can specify a single number by defining it as both the From and To values. Dates are defined similar to numbers.

Line Attributes and Multi-Attribute Scoring Negotiations

In a multi-attribute scored negotiation, you can have the application include the response values from the supplier along with the price offered when calculating the rank of that supplier's response. To perform this calculation, you give each possible response value a numeric score and then weight the attribute among the other attributes for the line. Note that while each value's score can be between 0 and 100, the weights for all the attributes defined for a line must add up to 100.

Line attributes make your negotiation line more descriptive and can also be used to ensure that all responses submitted for the line include specific additional details. The response values suppliers provide can also be used together with price offered when ranking responses in multi-attribute ranked negotiations. When you create your negotiation lines, you can add line attributes and require suppliers to respond by selecting a value from a group of values you can specify. Then when you evaluate the supplier responses, you can weighted and score the attribute responses and use this additional information used to make your award decision.

Scenario

For example, a category manager can create an auction to buy vehicles for a delivery service. When she adds the line (for example, called vehicle) to the auction, she can then set up ranges of mileage from which the supplier could select a value. Furthermore, if the category manager marks this attribute as required, then suppliers must specify the mileage of any response.

Scenario

Line attributes can call attention to common or industry-specific characteristics. For example, retail industry negotiation items can include such attributes as "color," "style," and "SKUnumber." Metal industry negotiation items can include "grade of metal" as an attribute. Adding these as required item attributes that are displayed to suppliers can enable you to modify negotiation items to your specific industry.

Attribute lists are collections of line attributes that are commonly used together. Procurement application administrators can create public attribute lists for use when creating negotiations. When a negotiation author associates an attribute list with a negotiation line, all the attributes on the list are associated with the line. Any attributes on the list that aren't needed can be deleted, and additional line attributes can be created if necessary. Attribute lists are an efficient way to streamline the negotiation creation process. They can also be used to encourage standardization and best practices.

In this example, the procurement application administrator is going to create an attribute list.

Create an Attribute List

  1. From the Tasks panel, she clicks the Manage Attribute Lists link.

  2. On the Manage Attribute Lists page, she clicks the Add icon.

  3. On the Create Attribute List page, she enters name in the Attribute List field, optionally a description, and sets the Status to Active.

  4. She clicks Add Attribute Group to define a new group, or she can click Add Predefined Group to add an existing group to the list.

  5. Once the group has been added, she clicks Add Attribute and uses the Add Attribute page to define an attribute to the list.

  6. She repeats the last step until she has added all the necessary attributes to the list.

Many companies want to improve operational efficiency and enforce sourcing standards in their direct material sourcing process. Driving consistency with negotiation templates assures that corporate standards are being adhered to. In the direct materials business process, there is often consistency across negotiation lines (items, parts, and so on) with line level details such as line level attributes.

You can define default values for line level attributes in the negotiation template, or when creating a negotiation. With this ability to define attributes, buyers can improve operational efficiency by applying these attributes to potentially large volumes of lines.

This feature provides the capability to set default line attributes either in the negotiation template or directly in the negotiation. When default line attributes are set, any new lines added to the negotiation online or using the lines import spreadsheet will have these attributes automatically applied.

To set and apply attributes as line defaults:

  1. In the Sourcing work area, create a new negotiation template based on seeded style for example, Standard Negotiation.

  2. In Lines, click Manage Default Line Attributes.

  3. In the Manage Default Line Attributes page add group and attributes.

  4. Create a negotiation based on the negotiation style and template.

  5. In the Manage Default Line Attributes page, verify that you can see the group and attributes that were added in the negotiation template.

  6. If required, add another predefined group and attribute list and click Save and Close.

  7. Add a new line in the Lines table using the plus icon. Edit line to navigate to line details, and verify that you can see the groups and attributes added in step 3 and 6.

  8. If required, add a new line in the Lines table using a spreadsheet. Edit line to navigate to line details, and verify that you can see the Groups and Attributes added in step 3 and 6.

  9. Publish the negotiation.

For suppliers you invite to a negotiation, you can control access at the line level. If you don't grant a supplier access to a line, the supplier contact can't see the line and therefore can't respond to that line. You must grant a supplier access to at least one line.

Define Supplier Access

In this example, the category manager is defining an RFQ to negotiate with Vision's suppliers. Among the lines defined to the negotiation are the following two as shown. Due to past performance, the category manager wants to keep BWP Distributors, Inc. from quoting on line one and Office Supplier, Inc. from quoting on line two. The resulting access authorizations are shown in the following table.

The following table shows the supplier access restrictions defined by the category manager.

Line Number Office Supplies, Inc. BWP Distributors, Inc. M and H International

office credenza 50 EA

yes

no

yes

printer paper 500 BOX

no

yes

yes

  1. After adding the three suppliers to the invitation list for the negotiation, the category manager highlights the row for Office Supplies, Inc. and then selects the Control Line Access option from the Actions menu.

  2. On the Suppliers: Control Line Access page, she deselects the check box for negotiation line two and then clicks Save and Close.

  3. When the Suppliers: Control Line Access page appears again, she uses the same procedure to restrict BWP Distributors Inc. from accessing negotiation line one. Note that the default is to allow M and H International to access both negotiation lines, so the category manager need not alter those access specifications.

You can select one or more suppliers (and their contacts) and invite them to participate in the negotiation. For those suppliers you identify, notifications are sent containing information on the negotiation. If you select a supplier site, then for that supplier, only contacts registered with that site receive invitations. If you enable the response control: "Restrict to invited suppliers," only suppliers in the invitation list can participate. Otherwise, any supplier who is registered with the application can view the negotiation and participate. You can only invite a supplier once, but you can invite multiple sites for that supplier. There are several methods you can use when inviting suppliers.

If you know all the supplier contact information, you can enter it directly into the negotiation. This is the quickest way to invite suppliers.

You can use the supplier search capabilities to identify and invite suppliers based on multiple search criteria such as the supplier's business classification, Approved Supplier List status, transaction history, or qualification and assessment status.

You can register a new supplier while creating the negotiation. Selecting the Register and Add option from the Actions menu on the Edit Negotiation: Suppliers page takes you to the Register and Add Supplier page where you can enter information about the new company, its sites, and create a company contact.

You can choose to register the new supplier as a prospective supplier or a spend authorized. If you register the company as a prospective supplier, the supplier can participate as soon as its registration is approved. A prospective supplier can receive invitations, view a negotiation and respond. You can award the supplier business, but you cannot issue a purchase document for the supplier until it is approved for conducting financial transactions with your buying organization.

If you choose to register the company as spend authorized, supplier cannot participate until its registration request is approved and it is also approved to conduct financial transactions with the buying organization.

You can create a list of suppliers and supplier contacts that you want to invite to a negotiation. Supplier contacts on your invitation list are sent an email notification when you publish the negotiation. The invitation notification contains a link the supplier contacts can use to obtain more information on the negotiation. If the response control Restrict to invited suppliers is selected, only suppliers identified in the invitation list can participate in the negotiation. If this control is not enabled for the negotiation, any supplier with access to the business unit for which the negotiation is defined can view the negotiation and participate.

In the following example, Sue Ellis, a category manager is defining a negotiation. She has come to the step where suppliers are invited.

Invite Suppliers to a Negotiation

  1. After creating the Overview and specifying any requirements and the negotiation lines, Sue clicks the Suppliers train stop.

  2. On the Edit Negotiation: Suppliers page, she clicks Search and Add.

  3. On the Suppliers: Add Suppliers page, she can use many search combinations to identify the suppliers she wants to invite to the negotiation. At least one of the fields must be included in the search. The check boxes can be used to restrict the search. After she specifies how she wants to search for suppliers, she clicks Search.

  4. The search matches are displayed in the Search Results table. She selects the suppliers she wants to add and clicks Add to Selection.

  5. The suppliers she identified appear in the Supplier Selection region. She continues adding suppliers as needed. When she is finished, she clicks Continue and returns to the Edit Negotiation: Suppliers page.

  6. If the invited supplier has multiple sites registered, she can select a site. In this case, for that supplier, only contacts for that site can participate in the negotiation. For each supplier, she specifies a contact. This is the main contact to whom notifications are sent. She can optionally select an additional contact for the same supplier.

  7. When she returns to the Edit Negotiation: Suppliers page, she can see the list of suppliers she invited. For each supplier invited, she selects a main contact. She can continue to the Review or Publish step.

When you begin a business relationship with a supplier, the supplier usually has a provisional status. For a provisional supplier, the amount of information you need is typically minimal. You need more information for suppliers with whom you conduct financial transaction. The level of review and oversight needed for a potential supplier is also typically less than that required by a contracted supplier.

An efficient way of addressing the need for different levels of supplier information is to provide two statuses for the suppliers. The provisional status allows a restricted level of access to the application capabilities. The full status allows access to a more complete range of capabilities.

Prospective Suppliers

Suppliers can ask to be registered with the application either independently by accessing the buying company's registration web page, or they can be registered internally, for example, a category manager can request to register a new supplier when completing an invitation list for a new negotiation. In either case, the registration requests go to the supplier manager for review. Once the supplier manager approves the registration request, the supplier becomes a prospective supplier in the application. Prospective suppliers have a restricted level of access. They can participate in supplier qualification initiatives, and they can view and respond to negotiations. Prospective suppliers are identified within the application by an icon that indicates their prospective status.

Spend Authorized Suppliers

If the category manager decides to award business to a prospective supplier who responded to a negotiation, that supplier needs to be authorized in the application to conduct spend transactions with the buying organization before a purchase document can be created for that supplier. Spend authorization requires a more complete level of information about the supplier and is subject to approval by the supplier manager. Once the supplier is approved for spend operations, they have access to all the normal capabilities of the application.

Purchase Documents for Prospective Suppliers

Prospective suppliers are provisional suppliers that are newly registered with the application. These suppliers have not been authorized to conduct spend operations with the buying organization. You can award business to prospective suppliers, but before the award can be completed, any prospective suppliers must be spend authorized

When you complete your award decision, if any business has been awarded to prospective suppliers, the negotiation moves to Award Completion in Progress. The application sends a request to the supplier manager to authorize the supplier for spend operations. Once the supplier is spend authorized, an entry appears in the Recent Activity table in your workbench notifying you that the supplier is now spend authorized. Also, a notification is sent to the original requester of the spend authorization (note that if the supplier was already in the process of being authorized when you made your award decision, the application does not consider you the original authorization requester, and you won't receive this notification)

You must monitor your Recent Activity table to know when the spend authorization requests have been processed. Once all the prospective suppliers who have been awarded business for a negotiation are spend authorized, you can create the purchase documents for that negotiation.

If the authorization request is rejected, an entry shows up in your Recent Activity table and you receive a notification (if you are the originating requester). The status for the negotiation reverts back to its previous status, either Award in Progress or Award Approved.

How You Review a Negotiation

At any point while you are creating your negotiation, you can review your work. The application validates your work as you create the negotiation document, checking your work and displaying any error messages as you move from one page to another. At any point, you can use the Validate option from the Actions menu to check your work so far.

Once you complete your negotiation document, you can use the Review train stop to review your work at a higher and more complete level. The review display presents a column of links you can use to access a particular section of the document. If you want to update a section, you can click the train stop to navigate to the initial page of that section of the document in edit mode. You can also print a .pdf copy of the negotiation document for offline reviewing.

You can request that participants in your negotiation provide high-level information. This information is in addition to that applying to the negotiation lines such as price or quantity. It often solicits details about the supplier company itself. Note that participants supplying this information can be both external, such as the suppliers themselves, or internal, such as collaboration team members. You solicit this information by adding one or more questions for the supplier to answer. These questions are called requirements.

Examples of requirements might be:

  • The number of years the supplier has been in business.

  • The supplier's business structure (public or private).

  • The supplier's certification status (minority or woman owned).

  • The supplier's environmental practices.

Using requirements enables you to obtain important information about aspects of a supplier such as past performance, personnel qualification, and financial visibility. Knowing such information provides you with a better understanding of the supplier and enables you to make a more informed award decision.

If you have defined questions in Oracle Fusion Supplier Qualification, you can copy and use them as requirements. Also, if there are qualification areas defined in Supplier Qualification, you can copy and use them as requirement sections. If any questions defined in the Supplier Qualification question library reference an attribute in the supplier profile, any supplier response to that question is used to update that attribute value in the supplier profile.

If there is scoring information defined for a question from the Question Library, that scoring information is copied onto the negotiation. If the question is defined as optional in the Question Library, you can modify the scoring criteria for the requirement. If the question is defined as required in the Question Library, you cannot modify the scoring criteria.

If you want to conduct a two stage RFQ, you create two or more requirement sections. For each section, you identify whether it contains technical or commercial requirements. You can have multiple technical sections and multiple commercial sections, but you need at least one of each. In a two stage RFQ, the technical requirements are evaluated before the commercial requirements.

Negotiation requirements request additional information about a supplier company. For example, such information could include company history, structure, personnel or industry certifications. Supplier answers to requirements are used in combination with prices offered when evaluating competing responses. Requirements can also be used internally by other evaluators, for example members of a collaboration team. Requirements are high-level questions that solicit information from suppliers who respond to a negotiation. This can include such information as history, corporate structure, and applicable certifications, among other things.

You can define new requirements for the negotiation or search for and add predefined questions.

Requirement Properties

When defining requirements for a negotiation, you use the requirement's properties to control its behavior. The following table lists the requirement attributes.

Property Explanation

Section

The section containing the requirement.

Acceptable Value

The acceptable value for the parent which caused this requirement to be displayed.

Requirement

Name of this requirement.

Evaluation Stage

For two stage RFQs, requirements can be defined to a technical requirement section or a commercial requirement section.

Requirements in the technical section are unlocked, unsealed, viewed and scored during the technical evaluation stage.

Requirements in the commercial section are unlocked, unsealed, viewed, and scored during the commercial stage. The requirements in the commercial section cannot be unlocked until the technical evaluation stage is completed.

Revision

Indicates the current version of the requirement. Revisions are tracked for questions contained in the question library.

Requirement Text

The text for this requirement.

Level

Whether this requirement applies at the company level or at the site level.

Response

You can control the supplier's interaction with the requirement by specifying the response type.

  • Suppliers do not have to respond to optional requirements.

  • Suppliers must reply to required requirements.

  • Suppliers can view but do not have to respond to display only requirements.

  • Internal evaluators can view and score internal requirements.

Requirement Type

Specifies the format of the requirement question. You can define a:

  • Simple text entry.

  • List of values with a single possible selection (displayed as radio buttons).

  • List of values with a multiple possible selections (displayed as check boxes).

If you select either of the list options, you must also define the acceptable values for the list.

Value Type

The value type controls the data type that can be entered. There are six value types available:

  • A text value accepts characters and numbers:

  • A single line of text.

  • Multiple lines of text in a text box.

  • A numbers value accepts only numbers and the decimal point.

  • Date values accept dates you select using the calendar picker.

  • Date and time values use a date picker and time designations.

  • A URL value type accepts a URL in the format http://url.name.here. URLs also accept https

Target

The optimum response value. This attribute is only displayed if Display Target is enabled.

Display Target

Indicates whether to display the target to the supplier. This attribute is only displayed it the requirement type is a text entry box..

Hint

Optional text prompting the supplier toward a response value.

Attachments from Supplies

Whether the supplier can submit attachments, and if so, whether they are optional or required. This attribute is only displayed if the requirement type is a text entry box..

Allow comments from suppliers

Whether suppliers can add comments to a response.

Scoring

Scoring indicates the method used to assign such scores: manually, automatically, or none.

  • If you choose None, scores cannot be entered for responses, and no scoring calculations can be made.

  • If you choose Automatic, the application scores responses when they are submitted by the supplier. The scores are based on the acceptable response values you must define.

  • If you choose to manually score a response, you (or others) must enter scores once the negotiation is closed. Manually scored requirements can be scored by scoring team members.

Weight

The importance of this requirement relative to all other requirements. Any requirement being scored must have a weight assigned. Weights are used in conjunction with scores to calculate the requirement's (and requirement section's) weighted score.

The sum of all requirement weights cannot exceed 100. You enable weights on the General tab of the Overview page. If weights are not allowed, the application uses the maximum score field to limit the maximum score allowed for each requirement.

Maximum Score

The maximum score indicates the maximum numeric score value which can be entered for a response to this requirement.

Knockout Score

A minimum score value that all responses must meet or surpass for that response to be shortlisted for awarding. When you begin awarding the negotiation, you apply the knockout score. All responses having a requirement response value that doesn't meet the knock out value are marked as not shortlisted for awarding.

Attachments

You can attach a file, a URL, or a text string.

You can specify that the attachment is visible internally by collaboration team members, or by suppliers.

When you upload an attachment, you marked its category:

  • Internal to Sourcing.

  • Miscellaneous.

  • To Supplier.

You can specify what values are acceptable to suppliers who respond to requirement questions.

You can define three types of requirements. These control the response options available to you supplier when responding to the requirement.

  • Text entry box - the supplier enters one or more lines of text into the input field.

  • Multiple choice/Single selection - the supplier selects a single response from the list of possible choices.

  • Multiple choice/Multiple selection - the supplier selects one or more responses from the list of possible choices.

Acceptable Values Matrix

This table shows how the interaction of requirement type, value type, and scoring method interact to control whether and what kind of acceptable values you can define:

Requirement Type Value Type Scoring Method Acceptable Value Allowed

Text entry box

Number

All Methods

Not Allowed

Text entry box

Date

All Methods

Not Allowed

Text entry box

Data and time

All Methods`

Not Allowed

Multiple choice/Single selection

Single line text

All methods

Allowed

Multiple choice/Multiple selection

Single line text

All methods

Allowed

Note the following about the table:

  • For both multiple choice requirement types, the initial value type is single line text and cannot be changed. For those requirement types, you can define acceptable values for any scoring method. You define the acceptable values as a list of entries from which the supplier will select.

  • Also for multiple choice requirements types, you can use the Attachments from Suppliers field to allow the supplier to include an attachment for each different acceptable value.

Specifying Target Values

You can optionally identify one of your acceptable values as the target value for that requirement, and you can choose to display the target to your suppliers. To designate a target value:

  1. Highlight the value in the Acceptable Values table.

  2. From the Actions menu, select Set as Target.

Requirements are high-level questions that solicit information from suppliers who respond to a negotiations. This can include such information as history, corporate structure, and applicable certifications, among other things.

You and other scorers can evaluate and rate supplier responses to a requirement by assigning a numeric score to each of the different supplier responses to the requirement. Additionally, the negotiation author can set a weight for the requirement to reflect that requirement's relative importance among the other requirements for the negotiation.

The negotiation author defines the requirement, the requirement weight, and the maximum possible score value. (The maximum score value defaults onto the negotiation if one has been assigned in the application using the Configure Procurement Business Function setup task for the BU, although you can override the defaults when you define a negotiation). Then after the negotiation is closed, and the scoring phrase is opened, the members of the scoring team can enter their scores. The application uses these values to derive the final score for a supplier response to a requirement. The category manager can then use the requirement scores and response prices to compare supplier responses and make award decisions.

Supplier responses to these requirements can be evaluated and rated by giving the responses scores. Scores can be weighted to indicate the relative importance among other requirements and can also be aggregated to obtain a total response score.

Types of Requirement Scores

Requirements are used to solicit information from suppliers. How this information is used is up to the buyer who defines the requirement. Requirements can have a score method of None, in which case the response from the supplier is for information only and is not used to determine awards. Requirements can be scored automatically, in which case scoring criteria defined by the buyer is used by the application to obtain a score for the supplier response. Finally, scores can be manually viewed by an evaluator who determines a score value and entered it into the document. Score values entered either automatically or manually can be used to help determine award decisions.

Scoring Teams

The author of the negotiation can choose to allow multiple evaluators to score supplier responses by creating a scoring team and assigning members to it. The negotiation author then assigns the scoring team to one or more requirement sections. Then after the negotiation is closed, and the scoring phase is opened, this allows each of the scoring team members to score supplier responses to requirements their requirement sections.

How Score Values are Calculated

When the buyer defines the requirements, a maximum score value is set for all requirements which will be scored. Requirements with a scoring method of None are not scored and therefore have no maximum score value. At award time, the score value (either entered manually or generated automatically) is divided by the value for Maximum Score and the result multiplied by the weight of the Requirement. The weighted scores are rolled up to the response level, that is, a weighted score is calculated for each requirement, each requirement section, and the response as a whole.

The Question Library is a collection of existing questions. You can use the entries in the question library when you are defining qualification areas in Oracle Supplier Qualification Management. You can also use the existing questions as the basis for requirements in Oracle Sourcing negotiations.

Question Library

You can create questions in the question library which can be reused in sourcing negotiations. The questions are version controlled and support similar attributes as requirements. When category managers build the requirements during negotiation creation, they have the ability to search and add questions directly to negotiations. When they add the predefined questions, all the relevant attributes of the questions are copied over to requirements as read only. You can use questions from the Question Library without implementing Oracle Supplier Qualification Management. To implement the Question Library, in the Setup and Maintenance work area, use the Manage Supplier Questions task in the Procurement offering and Sourcing functional Area.

In addition to questions, if Oracle Supplier Qualification Management is implemented, you can add qualification areas during negotiation creation. Qualification areas are collections of related questions that are used to qualify a specific aspect of suppliers. When you add predefined qualification areas, the qualification area names are copied as requirement section names. Also all the questions within the qualification areas are copied as requirements within the requirement sections. If necessary, you can change the scoring information.

You can include questions that are mapped to a fixed set of supplier profile attributes. You can add these questions as negotiation requirements. Suppliers' responses to these requirements will now update the profile values when the response repository is updated.

The Response Repository contains previous supplier responses to questions that were used in a Supplier Qualification Management initiative as well as questions that were used as requirements in Sourcing negotiations.

Response Repository

The Response Repository stores responses from suppliers who have responded to requirements. The repository contains the supplier responses to initiative questions, supplier responses to sourcing negotiation requirements that were created using questions from the question library, and supplier responses that have been accepted by the qualification manager or approved during the supplier registration process.

If you use a question from the question library as a requirement in a negotiation, then when the responding supplier responds to the requirements, any response values from any previous responses are displayed. Also, if the question is mapped to an attribute in the supplier's profile, the current value for that attribute is displayed. The supplier can then either accept the values as still valid or can update them. Any updated response values are added to the response repository, and used to update the supplier profile attribute.

After the negotiation is closed, from the Actions menu, you can use the Update Supplier Repository option to manually transfer all the requirement responses to the repository. Alternatively, if you decide not to do this manually, the application will automatically transfer all the requirement responses to the repository when you complete the award (for auctions/RFQs) or complete the RFI.

Spreadsheets facilitate easy and efficient offline development of negotiation requirements. Spreadsheet import is very useful when dealing with negotiations that have many requirements or requirements having complex criteria. You can view and complete the spreadsheet online, or you can download the spreadsheet and complete it offline. This facilitates easy entry and review by multiple participants as well as the ability to complete the spreadsheet over a period of time.

For fields which have specific possible values (for example, Yes or No), you can click in the field, and a down arrow appears at the end of the fields. You can click the arrow to display the values for the field. From the dialog window, you can select the appropriate value.

The requirements spreadsheet is not tied to a particular negotiation. You can download and save a spreadsheet containing your values, and then upload it later to a different negotiation.

The following table describes each spreadsheet field and indicates which fields are required and which are optional.

How You Add Requirements Spreadsheet

You can open the spreadsheet online by selecting the Open with option on the Opening Add Requirements dialog window. The spreadsheet opens, and you can enter your values. Once you are finished defining your requirement information, you can save it locally.

The Add Requirements spreadsheet uses Excel 2007 and later. Excel macros generate fields needed to define all your requirements, so you must enable macros to take advantage of all the spreadsheet capabilities. Consult the help for your version of Excel to enable macros.

Once you enable macros and open the spreadsheet file, you will see a new tab called Oracle Sourcing. By using the operations available from this tab, you can easily create new requirements and requirement sections. Specifically, you can:

  • Add a section.

    You can define a new section name, select and add an existing section name, or use an existing qualification area defined in Oracle Supplier Qualification to create a section including its requirements. When you use a qualification area, its questions are added as requirements.

  • Add a requirement.

    You can define a completely new requirement, or use existing questions in Oracle Supplier Qualification to create your requirement.

  • Add acceptable values.

    You can define acceptable values for multiple choice requirements or number/date/date and time requirements that are automatically scored.

  • Use the groups displayed in the margin to collapse or expand sections of the spreadsheet to more easily navigate among your requirement sections and requirements.

How You Manipulate the Spreadsheet

Once you open the spreadsheet, you see an additional tab called Oracle Sourcing. If you click that tab, you see three sections.

  • Add section

    You can use the options available from the Add section to add new requirement sections, requirements, or acceptable values for a requirement.

  • Edit section

    You can use the options available from the Edit section to perform standard editing tasks.

  • Import section

    You use the Generate Upload File option to create a .zip file using the information in your spreadsheet.

To add a new requirement section, highlight the row for an existing section. This enables the options in the Add section. Click the Add Section option. A new set of entry fields are generated in the spreadsheet, and you can use them to define your new section.

To add a new requirement, highlight any row within the section that will contain the new requirement. Click the Add Requirement option. A new set of entry fields is generated where you can define your new requirement.

To add new acceptable values for a requirement, highlight any of the rows for the requirement. Click the Add Acceptable Value option. A new row is added to the acceptable values area for the requirement. Note that depending on which requirement type and scoring method you select, the spreadsheet will automatically generate a set of five rows where you can enter acceptable values.

Once you complete your spreadsheet, save it locally. When you are ready to upload your new requirement information, click the Generate Upload File option. This creates a .zip file in the same folder where you saved your spreadsheet after you completed it. To upload the requirements to your negotiation, navigate to the Edit Negotiations: Requirements page. From the Actions menu, select the Add by Spreadsheet > Import Requirements option. Browse to the location where you saved your spreadsheet and where the generated .zip file is stored. Select the .zip file and click OK.

Note that on the Import Requirements window, you have the option to either append your new requirements to any existing requirements, or to overwrite any existing requirements with your new requirements.

Requirement Section Columns

The following table shows the columns used in the requirement section of the Add Requirements spreadsheet.

Column Name Explanation Comments/Values

Number

This column appears if you are exporting existing requirements using this spreadsheet. The number value identifies the requirement section.

NA

Section

(Required)

The name of the section containing the following requirements. The Section column has a length limit of 240 characters.

If you clicked Add Section, this is a free form text field. If you clicked Add Predefined Section, this field displays a list of predefined sections to choose from.

If you click Add Predefined Qualification Area, the Qualification Area column is displayed instead of the Section column.

Evaluation Stage

(Required)

The stage (Technical or Commercial) in a two-stage RFQ during which this requirement is evaluated.

Two stage RFQs group requirements into either technical or commercial requirement sections. All the technical requirements are evaluated and scored before any of the commercial requirements can be unlocked and accessed.

Weight

The weight value reflects the importance of this requirement section to other requirement sections.

The sum of the weights of all the scored requirements across all sections must add up to 100. (Note that you can upload this spreadsheet without the weights equaling 100, assuming you add additional weighted requirements online. But the weights must equal 100 before you can validate or publish the negotiation.)

If weights are not enabled for the negotiation, the Weight column is not displayed in the spreadsheet. Instead, the Maximum Score column is displayed and the total maximum score of all the requirements within the section is shown.

Requirement Columns

The following table shows the columns used to define columns in the Add Requirement spreadsheet.

Column Name Explanation Comments/Values

Number

This column appears if you are exporting existing requirements using this spreadsheet. The number value identifies the requirement.

NA

Requirement

(Required)

Question

Name of the requirement.

Requirements have a limit of 80 characters

If you click Add Predefined Question, this column is named Question.

If you are exporting existing requirements that are based on questions that have revisions, the revision number is displayed in parenthesis.

For example: Applicable certifications (Revision 2).

Requirement Text

(Required)

Text of the requirement.

NA

Level

(Required)

The level at which this requirement applies.

Supplier/Supplier site

Response

(Required)

Requirement behavior.

Possible values are:

  • Required (a supplier response is mandatory)

  • Optional (a supplier response is not mandatory)

  • Display only (informational)

  • Internal (available for internal viewing and scoring)

Requirement Type

(Required)

Controls what type of response the supplier can enter.

Possible values are:

  • Text entry box.

  • Multiple choice with a single selection.

  • Multiple choice with multiple selections.

If you use either of the multiple choice-based options, you must also define acceptable values for the requirement. (See the following).

Value Type

(Required)

Data type allowable for the requirement's response.

The value types available depend on the requirement type.

  • For multiple choice requirement types, the value is single line text. This value cannot be changed.

  • For a text entry box requirement, the values can be

    • Single line text

    • Multiple line text

    • Number

    • Date

    • Date and time

    • For Number, Date, and Date and time types for which the scoring method is automatic (see the following), you must also define acceptable values.

      • From Acceptable Value

      • To Acceptable Value

      • Score

    • URL

Attachments from Suppliers

(Required)

Whether a supplier can add attachments to this requirement in a response,

Possible values are:

  • Not allowed

  • Required

  • Optional

Allow Comments from Suppliers

(Optional)

Whether to allow suppliers to add comments to their response.

Yes/No

Attachments Exist (only if exporting existing requirements)

Yes/No

If you have exported existing requirements, the Attachments Exist column displays and indicates if there are attachments for the requirement.

Hint

(Optional)

Additional guidance about the expected response.

The Hint column has a character limit of 1000.

Target

The target response.

Maximum of 4000 characters long (for non-multibyte languages). Lengths for multibyte languages are smaller.

Display Target

(Optional)

Indicates whether the target value is shown to suppliers.

Yes/No

Scoring

(Required)

How the requirement response will be scored.

Possible values are:

  • None

  • Manual

    For manual scoring, you must also specify a maximum score (if there is no default) and a weight (if weights are enabled).

  • Automatic

    For automatic scoring, you must also specify:

    • Acceptable response values.

    • Scores for the response values.

    • The weight for the requirement (if weights are enabled for the negotiation).

Weight (if weights are enabled)

(Optional)

Indicates the importance of this requirement relative to the other requirements defined.

The value must be a number between 0 and 100.

The total of all scored requirements across all scored sections must be equal to 100.

Maximum Score

(Required)

Numeric value indicating the maximum possible score for this requirement.

Must be a positive whole number.

If the maximum score is not specified in the spreadsheet, the application will use the default maximum specified for the negotiation (if any) and default that value for the requirement during import.

Knockout Score

(Optional)

Minimum score a supplier must attain to be shortlisted for award.

Once the negotiation closes and the requirements are scored (either automatically or manually), applying the knockout scores automatically removes from the shortlist all suppliers having a score less than the knockout score for this requirement.

Knockout score must be a positive whole number.

Acceptable Value Columns

The following table shows the columns used in the acceptable value section of the Add Requirement spreadsheet.

Column Name Explanation Comments/Values

Number

This column appears if you are exporting existing requirements using this spreadsheet. The number value identifies acceptable value.

NA

Acceptable Value

(Required)

An acceptable value for the supplier to select.

The value has a character limit of 1000.

You can define multiple acceptable values for the same requirement.

Acceptable Value From/Acceptable Value To

A numeric range that encompasses the allowable values.

Acceptable value ranges are used with number, date, date and time value types.

Target

(Optional)

Indicated that this value is the target value.

Yes/No

Attachments from Suppliers

(Required)

Indicates whether suppliers can add attachments to the value.

Possible values are:

  • Not allowed

  • Required

  • Optional

Score

(Required)

The score for this acceptable value.

NA

Government organizations and departments as well as other public sector enterprises such as banks often follow a two-stage RFQ process. This process involves the submission of quotes in two separate sealed envelopes. One contains what is called the technical quote, and the other contains what is called the commercial quote. The technical quote includes all responses by a supplier to questions and parameters pertaining to the technical aspects that are used by the sourcing organization to evaluate the technical feasibility of the quotes and the capacity of the suppliers. The commercial quote addresses the issues of price and other factors associated with the execution of the sourced items.

This two stage process is prevalent among some public sector and many government organizations where it's sometimes mandated by law that the buying organization offer the tender or sourcing contract to the lowest price bid from the qualified bidders. The buying organization initially assesses the suppliers to be technically qualified before their price quotes are unsealed and evaluated. This ensures no bias in awarding the contract.

The two-stage RFQ process involves the submission by the suppliers of a technical quote and a commercial quote. The technical quotes are opened and evaluated first to determine a list of qualified suppliers, and only then are the commercial quotes of the qualified suppliers opened and evaluated.

The procedure for conducting and awarding a two-stage RFQ in Oracle Fusion Sourcing includes:

  1. Create the RFQ document and enable two stage evaluation. Document the technical specifications in one or more requirement sections and identify them as technical requirement sections. Similarly, document the nontechnical specifications in one or more sections and identify them as commercial requirement sections.

  2. Publish the RFQ.

  3. Suppliers submit quotes, including responses to the Technical and Commercial requirement sections.

  4. Close the RFQ to responding.

  5. Unlock the technical responses. The buyer and evaluators can now see technical responses.

  6. Optionally unseal the technical responses. Suppliers can now see technical response of other suppliers.

  7. Technical evaluators review the technical quotes and shortlist the qualified suppliers.

  8. Unlock the commercial responses of the qualified suppliers. The buyer and evaluators can now see both the technical and commercial responses.

  9. Optionally unseal commercial responses. Suppliers can now see commercial responses of other suppliers.

  10. Commercial evaluators review the commercial quotes and can shortlist the qualified suppliers.

  11. Make award decisions.

If a buyer or supplier prints a copy of the negotiation, the print indicates that it's a two-part RFQ, and labels Requirements sections appropriately.

The following quote information is visible to the technical reviewers only during the technical stage evaluation. After the commercial responses are unlocked, the entire quote is visible by all evaluators (subject to regular RFQ security).

The table below shows what information a technical evaluator can view.

Quote Information Technical Evaluators Can See

Technical Requirements responses

Yes

Commercial Requirements responses

No

Price

No

Quantity

Yes

Promise date

Yes

Need-by Date

Yes

Line attributes (including Quantity and Promised Date for Multi-Attribute Scored negotiations

Yes

Cost factors, price tiers and price breaks

No

"From Supplier: Technical" attachments

Yes

"From Supplier: Commercial" attachments

No

Contract terms, deliverables, and clause variables

Yes

General header attributes (Note to Buyer, Reference Number, Response Currency, Response Valid until)

Yes

If a buyer or supplier prints a copy of the negotiation, the print indicates that it's a two-part RFQ, and labels Requirements sections appropriately.

To conduct a two-stage RFQ you must first create the RFQ document. This document contains two or more special requirement sections. For each section, you indicate if it's a technical requirement section or a commercial requirement section. Technical requirement sections contain all the technical specifications necessary for the suppliers to successfully complete the RFQ. Commercial requirements section contain all financial information the buying organization needs from the supplier.

Creating Two-Stage RFQs is similar to creating regular RFQs. The main difference is that for each requirement section, you indicate if it's a technical section or a commercial section.

Create Requirements for a Two-Stage RFQ

When creating your requirements, you can use predefined section names or create new section names. In either case however, you must identify each section as either technical or commercial.

Begin by defining your technical requirements:

  1. Create the RFQ. On the Create Negotiation dialog box, be sure to select a negotiation style that supports two-stage RFQ and when the dialog box refreshes, check the Two stage evaluation check box.

  2. Enter the General, Terms, and Collaboration Team values as appropriate for your RFQ. Click Requirements.

  3. On the Edit Negotiation: Requirements page, you can use a predefined section by clicking Add Predefined Section or create a new section by clicking the Add Section button or selecting the Add Section option from the Actions menu for the Requirements section.

  4. When the page refreshes, select a value from the Requirements List of Values if you chose to use a predefined section, or enter the name for the new section if you chose to create a new section.

  5. For the section, select either Technical or Commercial from the Evaluation Stage menu.

  6. Create all the necessary requirements to completely describe your technical specifications. Be sure to identify whether each section is a technical or commercial section. If you want to have other evaluators view and score the responses to the requirement, be sure to define the Score value as Manual. Also accept the default maximum score or enter a new value.

  7. After you have created your technical and commercial requirements, continue creating the remainder of the negotiation document.

Create Two-Stage RFQs

This worked example provides information on creating two-stage RFQs.

The two-stage RFQ process involves the submission by the suppliers of a technical quote and a commercial quote. The technical quotes are opened and evaluated first to determine a list of qualified suppliers, and only then are the commercial quotes of the qualified suppliers opened and evaluated.

Create Two-Stage RFQs

  1. In the Navigator, select Negotiations.

  2. From Tasks, select Create Negotiation.

  3. In Create Negotiation, select Two Stage Negotiation stylesheet and select the two-stage evaluation option.

  4. Click Create.

  5. In the Edit Negotiation: Overview train stop, enter the RFQ title, and then enter the negotiation close date.

    Provide the RFQ title as Green Corporation Administration Services, and the close date as an year from today. The Close Date date picker is in the Schedule region. You must create a technical requirement and a commercial requirement.

  6. In the Requirements train stop, click Add Section.

  7. In Requirement, enter value Skills and Certification and in Evaluation Stage select Technical, and then click Add Requirement.

  8. In Add Requirement, do the following: In Requirement enter Duration, in Requirement Text, enter the requirement, How long have you been providing this service? Select requirement type as Text entry box, select scoring as Manual, and weight as 20, and then click Save and Close.

  9. In the Requirements train stop, click Add Section.

    Add the commercial section.

  10. In Requirement, enter value Business and Financial Strength and in Evaluation Stage select Commercial, and then click Add Requirement.

  11. In Add Requirement, do the following: In Requirement enter Profit, in Requirement Text enter requirement, What was your company's profit for the last fiscal year? Select requirement type as Text entry box, select scoring as Manual, and weight as 20, and then click Save and Close.

Cost factors allow a buyer to identify and control for additional costs associated with a negotiation line. Cost factors can be added to lines in a negotiation document, to line defaults in a negotiation template, or to cost factor lists.

How Cost Factors Are Calculated

Cost factors can be defined as either a per-unit cost, a percentage of the line price, or a fixed amount for the line. A single line can have one or more cost factors (of any type) defined for it. All cost factors are added to the line price (the price being offered by the supplier per unit) to obtain the response price. The response price is the actual price per unit when all applicable cost factors are applied.

Response price is calculated as follows: line price + ((line price * any percentage of line cost factor) + any per-unit cost factor + (any fixed amount cost factor / response quantity))

Example calculation: The following example shows how a supplier's response is adjusted to take into account all the cost factors defined by the buyer. The numbers represent the values entered by the supplier for the line price and all the cost factors.

  • Line price = 30

  • Percentage of line cost factor = 35

  • Per-unit cost factor = 5

  • Fixed amount cost factor = 15

  • Response quantity = 100

Calculation: 30 + ((30 * 0.35) + 5 + (15/100)) = $45.65 (response price)

Cost factors allow you to identify and negotiate on additional costs related to a line.

There are two types of cost factors:

  • External

  • Internal

External Cost Factors

You can use external cost factors to obtain a more realistic idea of the total cost of an item or service by factoring in any additional costs beyond just price. Such costs could include additional costs such as consulting or training. Cost factors can be added to a negotiation line, to lines in negotiation templates, or to collections of cost factors (called cost factor lists). A negotiation line can have more than one cost factor (of any type) defined to it. You can create three types of cost factors.

Fixed Amount Cost Factors

A fixed amount cost factor is a set value for the line, regardless of the quantity of units being asked for by the line.

Per Unit Cost Factors

These cost factors are specified as a set value that's multiplied by the quantity of units being asked for by the line.

Percentage of Line Price Cost Factors

Percentage of line price cost factors are specified as a percentage. The percentage of line price is calculated by multiplying the unit price by the percentage of line price cost factor value.

Internal Cost Factors

Internal cost factors are additional costs incurred by the buying organization when dealing with suppliers. For example, a new supplier, or a new manufacturing or shipping location for an incumbent supplier may expose the buying organization to a higher risk of supply disruption simply because the buying organization has no experience of buying from the new supplier or location.

Internal cost factors are determined by the buying organization and applied to the supplier's response amount. In addition to the response amount, you can see the new transformed amount at the response header level and the overall rank thereby aiding the award negotiation process. You can assign internal cost factors of type percentage of response amount or fixed amount to the response amount of one or more suppliers.

Overall Rank

The overall rank is based on the transformed amount. Lower the transformed amount, higher the overall rank. If a supplier doesn't have an internal cost factors assigned, then the response amount is considered for the calculation of the overall rank.

Here are things you can do or you need to know when you're working with internal cost factors.

  • As a procurement administrator or category manager, you can create a new negotiation style or update an existing negotiation style to enable the internal cost factors.

  • If same set of internal cost factors are often applied to multiple negotiations, then you have the option to create a negotiation template and add internal cost factors to it, set their values, and then use this template to create negotiations.

  • The value of the internal cost factors can be negative or positive. The negative internal cost factors will reduce the transformed amount.

  • You can modify internal cost factor values when the negotiation is in the active, closed, or award in progress statuses.

  • You can set the internal cost factor values at the time of negotiation creation or after you view the supplier responses.

  • You can adjust internal cost factor values when the negotiation is in the active, closed, or award in progress statuses.

  • You can update internal cost factor values from the analyze, monitor, or award negotiation pages by selecting the Apply Internal Cost Factors action.

  • If you want to restrict transformation information for internal analysis, you must deselect the response rules Display transformed amount to suppliers and Display overall rank to suppliers.

  • When the transformed amount for more than one response is same, the earlier response gets the higher overall rank.

  • Overall rank isn't calculated for partial responses. To ensure overall rank is calculated for all supplier responses, you must set response rules to not allow suppliers to respond with partial lines or quantities. Also, if a supplier's access is restricted to one or more negotiation lines, then overall rank isn't calculated for responses from that supplier.

Cost Factor Lists

After you create external or internal cost factors, you can create lists of cost factors. Buyers can then apply external cost factor lists to negotiation lines to quickly identify the commonly occurring secondary costs that also must be negotiated. Buyers can create their own personal cost factor lists using external cost factors that have been defined in the application. Buyers can apply internal cost factor lists to transformed amounts at the response header level.

You can create a cost factor list to include internal costs or external costs, but a list can't contain both.

An external or an internal cost factor list are a set of cost factors that are commonly used together. Once cost factors are placed on a list, you can apply the list to a negotiation line, and all the cost factors on the list are carried over to the line. After you have applied to the line, you can delete cost factors that aren't required or add additional cost factors as appropriate. Applying cost factor lists enables you to quickly associate a large number of cost factors with a negotiation line.

For example, Vision Corporation is expanding into a new branch of items and services. Negotiations dealing with this new area need to negotiate new transportation-related costs with suppliers. External cost factors, Shipping, Hazardous materials charge, and Import tax are already defined and a new external cost factor list has to be created.

Vision Corporation wants to apply internal cost factors for the set suppliers responding to a negotiation. The internal cost factors, Logistics, Project management, and Established Supplier are created, and a new internal cost factor list has to be created.

Define an External Cost Factor List

  1. From the Task panel on the Negotiations work area, click the Manage Cost Factor Lists link.

  2. On the Manage Cost Factor Lists page, click the icon to add a new list.

  3. On the Cost Factor List page, enter the Shipping List as the cost factor list name and Common shipping charges as a description. Select type as External.

  4. Click the plus sign icon, or select Add from the Actions menu.

  5. When the new line appears, click in the Cost Factor field for the line. From the drop-down menu, search for and select the cost factor appropriate for the new list. The pricing-basis and description for the cost factor is set and can't be changed. Add the cost factor named Shipping to the list and then use the plus icon to add Hazardous materials charge and Import tax to the list.

  6. When finished adding cost factors, save the list.

Define an Internal Cost Factor List

  1. From the Task panel on the Negotiations home page, click the Manage Cost Factor Lists link.

  2. On the Manage Cost Factor Lists page, click the icon to add a new list.

  3. On the Cost Factor List page, enter MyOrgIC as the cost factor list name and internal cost factors as a description. Select type as Internal.

  4. Click the plus sign icon, or select Add from the Actions menu

  5. When the new line appears, click the Cost Factor field for the line. From the drop-down menu, search for and select the cost factor appropriate for the new list. The pricing basis and description for the cost factor is set and can't be changed. Add the cost factor named Logistics to the list and then use the plus icon to add Project Management and Established Supplier to the list.

  6. When you have finished adding the cost factors, save the list.

Here's how you can applying internal cost factors to an auction.

  1. In the Setup and Maintenance work area, do these tasks:

    1. Go to the Manage Negotiation Styles task, create a negotiation style and enable the internal cost factor and overall rank.

    2. Go to the Manage Cost Factors task, create cost factors of type Internal, and based on your requirement create pricing basis of fixed amount or percentage of response amount.

    3. Based on your requirement, go to the Manage Cost Factor Lists task, create a cost factor list of type internal and add the internal cost factors to this list.

  2. In the Negotiations work area, create an auction with response rules enabled to display internal cost factors and overall rank to suppliers.

    Alternatively, you can also create a negotiation template with internal cost factors added to it and use it to create the auction.

  3. To add internal cost factors or cost factor lists to suppliers. In the Edit Negotiation page, go to the Suppliers Train Stop, select Actions > Apply Internal Cost Factors.

  4. In the Apply Internal Cost Factors page, click Add Cost Factors.

  5. In the Add Cost Factors page, add cost factors or update their pricing basis. After you save changes, you can update the internal cost factor values.

  6. Publish the auction.

Transformed amount is the sum of the response amount and the internal cost factors

If you choose not to display the transformed amount to the suppliers, then the supplier sees no adjustment to the bid amount. But the overall rank that the supplier sees is still based on the transformed view of the total bid amount.

Note: Whether or not supplier sees other supplier responses is still restricted by the type of negotiation, either an RFQ or an auction, and the response visibility, which is open, blind, or sealed.

Internal cost factors are calculated based on this formula. Transformed Amount = Response amount + Sum of fixed amount internal cost factors + Response amount * (Sum of percentage of response amount internal cost factors)

For example: For a response amount from supplier A equals $5000 and for the internal cost factors applied to supplier A:

Fixed amount internal cost factors: Logistics = $200, Project Management = $100, and Bronze Coating = -$50

For percentage of fixed amount internal cost factors: Swapping existing equipment = 10%, Maintenance - 15%, and Established Supplier= -5%

Transformed Amount = $5000 + ($200+$100-$50) + $5000 * (10%+15%-5%)= = $5000 + $250 + $5000 * (20%)= $6250

For a response amount from supplier B equals $4900 and for the internal cost factors applied to supplier B.

Fixed amount internal cost factors: Logistics = $250, Project Management = $150, and Bronze Coating = $50

For percentage of fixed amount internal cost factors: Swapping existing equipment = 15%, Maintenance - 20%, and Established Supplier= -2%

Transformed Amount = $4900 + ($250+$150+$50) + $4900 * (15%+20%-2%)= = $4900 + $450 + $4900 * (33%)= $6967

Summary

Response Amount for Supplier A=$5000

Transformed amount for Supplier A= $6250

Overall Rank of Supplier A= 1

Response Amount for Supplier B= $4900

Transformed amount for Supplier B= $6967

Overall Rank of Supplier B=2

If internal cost factors aren't applied for suppliers and the overall rank is enabled in the negotiation style, then the overall rank is calculated based on the response amount only. As long as the negotiation style supports overall rank, it's always displayed. The overall rank is visible to suppliers based on the settings in the response rules of each negotiation.

The Expiring Agreements section of your Overview page displays agreements for which you are either the owner or a collaboration team member that expire within the next sixty days, or agreements which are up to ninety days past their expiration date. To negotiate an existing blanket agreement, highlight the agreement and click the Renegotiate button. You can access the negotiation document, modify it as needed, and publish the new negotiation for responding.

A line attribute list is a collection of line attributes that you can apply to a negotiation line. When you apply an attribute list, all the line attributes on the list are associated with that line. Once applied to the line, you can modify the line attributes if necessary. You can also delete any attributes that are not appropriate to the line.

Both price breaks and price tiers are used to identify price reductions being asked for by the buyer or being offered by the supplier. The main difference is that price tiers are available with all negotiation outcomes, but price breaks are only available with documents having a purchase agreement negotiation outcome. Also, price breaks can be cumulative across the life of the agreement.

Additionally, price breaks can base price reductions on Ship-to Organization, Location, Quantity, and Start and End dates. Price tier reductions are based only on Quantity.

For quantity based price tiers, only the price tier in effect for the awarded line is passed to the purchasing application. For price breaks, the information on the entire price break structure applicable to the awarded line is passed to the purchasing application.

You use the Search and Add feature to identify suppliers and add them to your negotiation invitation list. For each supplier you invite, you must also specify a contact. For the supplier contacts you identify in the invitation list, notifications are sent containing information about the negotiation (if you select a supplier site, then for that supplier, only contacts registered for that site are sent invitations). You can also invite prospective suppliers. Prospective suppliers are registered with the application but not yet approved for conducting spend transactions.

What's the difference between a negotiation style and a negotiation template?

You can use both negotiation styles and negotiation templates when creating negotiation documents. The purpose for each is different, however, they both help shorten the creation process. A negotiation style uses only the creation features necessary to create the target type of negotiation. Any features not required are not accessible using that negotiation style. For example, if line attributes are not appropriate to a particular type of negotiation, the procurement application administrator can create a negotiation style that omits line attributes. When that negotiation style is used to create a negotiation document, the application pages used to create line attributes do not appear. By focusing only on the features required by the type of negotiation, the creation process is shortened.

A negotiation template is a skeleton you apply to a new negotiation you are creating. Negotiation templates can provide default data for many of the negotiation document attributes, for example addresses or invited suppliers. You can modify some of these attributes when creating your new negotiation document.

Negotiation templates also let companies standardize practices on negotiation creation. For example, different templates can be used with different item categories. You must have access to the Procurement Business Unit under which the template was created to access and use it.

You can select one or more eligible suppliers (and their contacts) and invite them to participate in the negotiation. For those suppliers you identify, notifications are sent containing information on the negotiation. If you enable the response control: Restrict to invited suppliers, only suppliers in the invitation list can participate. Otherwise, any supplier who can view the negotiation can participate.

What happens if I invite suppliers based on their sourcing eligibility status?

Eligibility assessments of a supplier can be that the supplier is eligible to participate, eligible with a warning to participate, or not eligible to participate in a sourcing negotiation. In Procurement BUs where sourcing eligibility is enforced, category managers will see supplier's eligibility when creating the negotiation. If a supplier that isn't eligible is added to the invitation list, the negotiation can't be published until the supplier is removed. Similarly, if a supplier who's eligible with warning is added, the supplier can still participate in the negotiation, but the category manager will see a warning message.

You have several possible ways to modify the close time of a negotiation. You can always manually close the negotiation early or extend the negotiation past its original close date and time. Automatic extensions are also a method you can use to control when a negotiation closes. You define the automatic extension criteria, consisting of the triggering period (a time period prior to the close date/time), the extension length, and the extension scope. Then if a qualifying response is received during the triggering period, the closing time for any negotiation line that falls within the scope of the autoextension is extended by the extension length to become the new close time.

A cost factor list is a collection of cost factors that you can apply to a negotiation line. When you apply a cost factor list, all the cost factors on the list are associated with that line. You can delete any cost factors you do not need. Cost factor lists allow you to quickly associate a group of related or commonly used cost factors with a negotiation line. This speeds up the creation process.

The negotiation documents you create and process have default names and terminology for the most important attributes. For example, the three types of negotiations are auction, RFQ, and RFI. Their corresponding response names are bid, quote, and response. However, when defining a negotiation style, you can change the names used by the application if you so select, by defining negotiation styles. Any future negotiations created using that style uses the modified names when being viewed online or in any printed versions.

Different types of negotiations are auctions, RFQs, and RFIs. These are the negotiations for which you are either the owner or a collaboration member, and published negotiations which you can access. Draft negotiations are not shown. Amended and Round Complete negotiations are displayed as separate negotiation.

  • If the preview date and award date are specified, then duration shown is from preview date to award date. If the preview date is not specified, then the preview date is the same as the open date. If award date is not specified, then the award date is the same as the close date. For negotiations in amended or round completed status, only close date is used even if award date is specified.

  • If the award date is not specified and staggered closing is used, then the close date is the close date of the last staggered line.

  • If a negotiation is paused, then the event duration does not change until the negotiation is resumed. Then the event duration is adjusted according to new close or award date.

The beginning and ending times displayed depend on the negotiation definition.

Additionally, the calendar shows two kinds of task events.

  • Tasks assigned to the user as a collaboration team member. These events will be displayed as all-day tasks on the target date of the task specified in the negotiation. Even if the negotiation is still a draft, this event will appear in the calendar. Tasks without a target date will not be displayed on the Negotiation calendar.

  • Tasks assigned to other users in negotiations for which the user is the owner. These events will be displayed as all-days tasks on the target date. Even if the negotiation is still a draft, this event will appear in the calendar. Tasks without a target date will not be displayed on the Negotiation calendar.

Detail Information Available

You can obtain detailed information from the calendar display. You can view detailed information about the negotiation by clicking and drilling down from the negotiation entry in the calendar. You can view detailed information for an event by hovering over the event.

Views Available

There are two views available when viewing calendar information. My View shows you the negotiations and negotiation tasks for which you are either the owner or a collaboration member. Company views shows you everything that is in My View as well as the negotiations in the same Procurement BU to which you have either full or view access.

You can predefine many textual parts of a negotiation document by creating a negotiation style and then creating default content for sections of that style. Creating default text can streamline the negotiation document process and standardize business practices. The category manager can modify default content as needed when using the negotiation style to create a new negotiation document.

Variables in Content

If there are contract variables defined in Oracle Fusion Procurement Contracts, those variables are available for use in default content. By using variables, instead of directly entered values, the document can be kept up to date if changes occur during its development.

To use variables, position the cursor where the variable value should appear and click Insert Variables. Select the appropriate variable and click Insert. For some variables, you can initialize the variable by clicking Preview. For other variables, initialization does not happen until actual values are entered later in the definition process.

For example, you might use Close Date on the Cover Page, but the actual date would not display until you specified the date value when defining the Overview page.

Content for Cover Page Tab

You can create content for the Cover Page tab to identify the business entity conducting the negotiation, the negotiation number, negotiation title and other appropriate information.

For example, you might identify the Procurement Business Unit to which this negotiation applies as well as any internal contacts for addressing questions of issues on the negotiation.

Content for Overview Page Tab

The Overview page might contain descriptions of the purpose and intent of the negotiation, response time line, and legal information.

Content for Requirements Tab

The Requirements Tab content provides general instructions and explanations about how to respond to the negotiation requirements. The category manager defines the specific details of each requirement when creating the document.

Content for Lines Tab Content

You can use the Lines tab default content to specify generalized line information, such as pricing guidelines. For example, you might provide details on any price breaks you will offer. You might also want to explain any of the response controls in effect for the negotiation.

You can predefine many textual parts of a negotiation document by creating a negotiation style and then creating default content for sections of that style. Creating default text can streamline the negotiation document process and standardize business practices. The category manager can modify default content as needed when using the negotiation style to create a new negotiation document.

Use Variables in Content

If there are contract variables defined in Oracle Fusion Procurement Contracts, those variables are available for use in default content. By using variables, instead of directly entered values, the document can be kept up to date if changes occur during its development.

To use variables, position the cursor where the variable value should appear and click Insert Variables. Select the appropriate variable and click Insert. For some variables, you can initialize the variable by clicking Preview. For other variables, initialization does not happen until actual values are entered later in the definition process.

For example, you might use Close Date on the Cover Page, but the actual date would not display until you specified the date value when defining the Overview page.

Define Cover Page Tab Content

You can create content for the Cover Page tab to identify the business entity conducting the negotiation, the negotiation number, negotiation title and other appropriate information.

For example, you might identify the Procurement Business Unit to which this negotiation applies as well as any internal contacts for addressing questions of issues on the negotiation.

Define Overview Page Tab Content

The Overview page might contain descriptions of the purpose and intent of the negotiation, response time line, and legal information.

Define Requirements Tab Content

The Requirements Tab content provides general instructions and explanations about how to respond to the negotiation requirements. The category manager defines the specific details of each requirement when creating the document.

Define Lines Tab Content

You can use the Lines tab default content to specify generalized line information, such as pricing guidelines. For example, you might provide details on any price breaks you will offer. You might also want to explain any of the response controls in effect for the negotiation.

You can create enterprise contracts for awarded suppliers from the negotiation. You can create an enterprise contract for each supplier's response after the negotiation is closed for bidding. This let's you to negotiate terms upfront, and pass the terms, line items, pricing, and quantities finalized during negotiation award to the contract document in the contracts application.

Oracle Fusion Enterprise Contract Management supports full contract life cycle, ability to negotiate the contract terms with suppliers, download and upload contract terms, compare redlined terms with original terms, and so on. You can leverage this contract functionality while sourcing and easily update the contract terms for each supplier during the negotiation process.

View contracts associated to the bids along with purchasing documents and drill down to the associated contracts. You can now use new contract related approval attributes to route negotiation and award approvals based on created contracts.

On the supplier contract, you can see and drill down to the source negotiation and responses from which the contract was created. You can view details such as source application and source document number and if you have passed the awarded lines then you can view the line number.

Here's how you can create supplier contracts from negotiation award.

  1. As a contract administrator, set up the buy intent contract type and contract terms templates.

  2. As a category manager, while creating the negotiation, create a draft base Enterprise Contracts Management contract to hold the contract terms of the negotiation. To do this, in the Contract Terms train stop, click Create Contract.

  3. Do the rest of the negotiation and publish it.

    Invited suppliers will receive the negotiation invitation along with the base contract terms, which includes clauses and deliverables. Suppliers can download the contract terms for evaluation.

    As part of the bid submission, to gather suppliers' acceptance on whether they agree with the base contract terms or not. The category manager must create a requirement to capture the suppliers' acceptance with the contract terms or their concerns with the contract terms. Suppliers can share their concerns by creating and uploading a redlined contract terms document as an attachment to the bid.

  4. As part of the collaboration team, evaluate the redlined contract terms. For any common changes that are applicable to the entire supplier base, drill down to the base contract of the negotiation and update the contract terms. You can initiate an online discussion using messages with suppliers to further negotiate the contract terms. Suppliers can send or receive the updated contract terms as an attachment to the online message.

  5. After you close the negotiation, evaluate the negotiation, shortlist the bids and start the award process.

    If the contract terms agreed upon with one of the shortlisted supplier are different from the base contract terms, create a contract for the corresponding bid. A new draft contract is created for that bid by duplicating the negotiation's base contract and stamped with the supplier as the primary party.

  6. Go to the bid's contract and update the agreed upon terms with the supplier.

  7. To add the awarded lines to the supplier contract, In the Analyze Negotiation page, select the awarded bid and click Add Awarded Lines to Contract.

    Even after the award is completed or even after the negotiation is completed, you can create supplier contracts and add awarded lines to them.

Create New Negotiation Round

If you reach the end of a negotiation with no clear winners, you may choose to close the round and initiate a new round of responding. Once a new round has been started, all participants can enter responses again. This is useful when there are participants you have restricted to a single response per round.

To start a new round of responding, you close the active negotiation, and then create a new round, giving it a new close date. Note that there is a response control you can set to require that a supplier's new response price must be lower than that supplier's last response price in the previous round. The new round has a number suffixed to the original negotiation number. For example, if the original negotiation was number 500, the new round is 500-2.

Initiating a New Round of Responding

Vision Corporation is conducting an auction for high end electronics. The auction is close to its close date but the responses have not been acceptable. The category manager decides to take the negotiation to a subsequent round of responding.

  1. From the negotiation work area Overview page, the category manager accesses the negotiation.

  2. From the negotiation summary page, the category manager selects the Close suboption from the Manage option of the Actions menu. She chooses to close the negotiation immediately and submits the close request.

  3. After the negotiation is closed, she selects the Create New Round suboption from the Manage option of the Actions menu.

  4. She accepts the defaults on the Create New Round dialog box.

  5. On the Edit Negotiation page, she enters a new close date. She makes any other changes to the negotiation and publishes it, opening it to a new round of responding. All suppliers on the invitation list are sent notifications apprising them of the new round.

Seller Negotiations

You can perform competitive forward auctions with bidders to sell items such as excess inventory or retired assets by offering them for bids, gathering bids from various bidders, and then selling the items to the highest bidder.

Seller Negotiations

For the procurement department that's looking to liquidate excess inventory or sell retired assets, there is a requirement to conduct a competitive auction. Unlike a reverse auction used for procuring items at a lower price, in this forward (or seller) auction, the seller awards to the highest bidder. Potential buyers compete by increasing their bids over time before the auction closes. The seller monitors the competitive auction in real time and determines the best award.

Seller negotiations includes these activities:

  • Create and publish seller negotiations

  • Invite organizations to bid

  • Submit and manage bids through Supplier Portal

  • Monitor the seller negotiations

  • Manage the seller negotiations schedule

  • Award the seller negotiation

  • Export award information in a spreadsheet

How You Create Seller Negotiations

Create a seller negotiation to sell items to the highest bidders and invite several bidders to participate in the seller negotiation. In the Negotiations work area, in the Manage Seller Negotiations page, you can create a seller negotiation.

In the Overview section, you as an auctioneer must provide basic information of a seller negotiation such as procurement BU, title, synopsis, and all the schedule details. In the Lines section, provide the basic information of a line such as item, description, category name, quantity, and UOM. Bidding for a partial quantity is supported to allow auctioneers to specify whether partial quantity bid is accepted for the line. In addition, you can specify the start price, price increment, and reserve price for the line.

In the Bidders section, you can invite spend authorized, prospective and newly registered suppliers to the seller negotiation. A bidder contact or an additional email is required for each invited bidder.

While creating a seller negotiation you can use these capabilities available for a seller negotiation:

  • Autoextend settings are available for a seller negotiation where the winning bid will trigger all lines to be auto extended from the close date of the seller negotiation, and the auctioneer can define the number of extensions, the triggering period, and the length of extension.

  • Include a reserve price for a line item where the reserve price is the lowest acceptable price at which you as a seller is obligated to sell the line item to the bidder. You can set a reserve price for a line item and monitor the auction to see if the reserve price is met by the bidder. Also, the bidder doesn't know what the set reserve price is, but they will know if it was met or not met during competitive bidding.

  • Projected revenue is displayed in the Monitor Seller Auction page and the projected revenue indicates the maximum revenue from only those lines where the bids meet the reserve price.

  • Award the seller negotiation by bid or award the seller negotiation by each line item.

  • Share configurable notifications on the seller negotiation based on the Business Intelligence Publisher templates with the bidders.

  • Export the awarded seller negotiation as a spreadsheet and share the spreadsheet with the applications that create sales orders.

How You Bid Through Supplier Portal

Bidders can submit their bids from the Supplier Portal. Registered suppliers can bid for a seller negotiation. New potential bidders can also register as suppliers or prospective suppliers using the supplier self-registration process and then bid for a seller negotiation.

On the Supplier Portal landing page, relevant links are available in the Tasks pane to quickly access auctions from seller, view active seller negotiation, and manage seller auction bids. Infolets display the information on seller negotiations that require attention and the recent activities for seller negotiations.

On the Create Bid page there are two main sections Overview and Lines. In the Overview section, bidders can provide the date until when the bid is valid and a reference number. They can also enter note and attachments. In the Lines section, bidders can bid on the price and quantity for each line. While bidding for a seller negotiation, bidders can view the best bids received so far from other bidders.

How You Manage Seller Negotiation

Based on the pricing changes and bidding activity, to maximize revenue, you can change the schedule of the seller negotiation. You can close the seller negotiation early, extend, cancel, and invite additional bidders, pause it, and resume it at a later point of time.

On the Manage Seller Negotiations page, you can enter search criteria to search for the seller negotiation. You can use various search criteria like procurement BU, title, and so on to search for existing seller negotiation. For published seller negotiation, sellers can navigate to the View Seller Negotiation page and perform additional actions. Auctioneers can create new seller negotiation and duplicate existing seller negotiation.

On the View Bid page, bidders can view all the details entered on the bid. They can see how their bids rank in the seller negotiation. The information on when a seller negotiation is going to close is provided. The bid price of the bid ranked number one among all the active bids submitted so far for a given line is displayed as the best bid price. Bidders can revise bids, cancel proxy bids, and view bid history and navigate to corresponding pages. When a seller negotiation has completed, the award decision is displayed.

With graphical analytics, sellers can monitor the bidding activity in real time, analyze a bidding trend, identify areas and determine whether any follow up actions are necessary. Graphical analytics provides a way to visualize the bidding. Also, tabular data of the bids are available for a detailed analysis.

Sellers can view all the bid details entered by the bidders. In addition, sellers can view bid history, disqualify bids and navigate to the corresponding pages.

You can cancel a seller negotiation only if it is in submitted, preview, active, paused, or closed status.

How You Monitor Seller Negotiation

On the Monitor Seller Negotiation page, sellers can monitor bidding activities in the seller negotiation. Sellers can set the refresh interval on the page and view the latest updates on bid ranking and pricing information for all bidders.

On the View Bid History page, the bidders can now see all the bids submitted to the Seller Negotiation. It will show bids in all statuses except those in draft. They can't see the identity of other bidders, including the name of the bidder company and contact.

How You Award Seller Negotiation

Maximize revenue by making the best award decision, award the entire seller negotiation to a single bid or to multiple bids. Use the graphical analytics to visualize the awarding progress and award decisions.

Award the seller negotiation to a bidder based on the individual bids or award the seller negotiation by line based on the best bids received per line item.

While awarding a seller negotiation, you can attach any supporting attachments, provide a note to accepted and rejected bidders.

How You Export Award

You can export the award decision information in a spreadsheet. The award spreadsheet uses the Business Intelligence Publisher template. You can share the seller negotiation award as a spreadsheet for applications that are used to prepare sales orders based on these seller negotiation awards.

Various tasks are consolidated on the Monitor Seller Negotiation page. On the Monitor Seller Negotiation page, you can monitor the bidding trends in a seller negotiation in real time. The page auto refreshes where you can also set the refresh interval and view the latest updates on bid ranking and pricing information for all bids. You can view all the active bids and if required, disqualify them. Graphical and tabular analytics are available to view the bidding activities and determine the actions required.

You can perform the same actions as those on the View Seller Negotiation page and navigate to the corresponding pages, change seller negotiation schedule. You can extend, close early, pause or resume, and cancel a seller negotiation.

From the active bids received so far, projected revenue is gathered based on the sum of the maximum revenue each line will get, with the condition that, that line's reserve price is already met or reserve price was not set. If a line's reserve price was not met, then it is excluded from the projected revenue's calculation. In the Lines tab, you can filter out lines that met the reserve price and the lines that did not meet the reserve price. You can view bid history from this page by toggling views of the bidders table. Analytics are available to track important auction metrics such as projected revenue, bids by amount, and time.

You can quickly respond to discrepancies in the bidding process in real time and intervene when necessary and take appropriate action. Ability to take actions such as pause or extend provides full control over the auction and bidding activity. For example if you noticed any issue with the inventory items you were planning to sell, you can pause the auction and investigate that issue and resume the auction process once resolved and so on. You can also increase the competition by inviting more bidders at any time until the auction closes.

You can monitor the bids received by their bid amount in a bar graph, where only bids in active status are displayed. A scattered graph plots the bids in active and archived status received from multiple bidders for the seller negotiation. The bids pertaining to a single bidder, bidder site, and bidder contact combination are connected by a smoothed line.

On the Award Seller Auction page, you can either award the entire negotiation to a single bid or award each line to one or more sellers. While awarding, you can attach any award related supporting attachments, enter a note to accepted bidders and rejected bidders. Export award details in excel and send to downstream system like Accounts Receivables or Asset management to further process it to complete the transaction.

You can analyze reports on bids by amount, award by bidder, award by line, and bids by time. You can view the bid history and export to Excel. You can select to award the overall seller negotiation to a bidder of your choice or, analyze and award the bid line-wise to bidders. You can notify the accepted and rejected bidders by email regarding your decision.

Consider these prerequisites: Seller Negotiations is an opt in feature that you can enable from the Setup and Maintenance work area. Sellers who create and award bids to prospective buyers must have the Category Manager job role. Prospective bidders must have the Supplier Bidder job role, for more information on job roles see the What's New document. Define sellers as active procurement agents with the same Manage Negotiations access. Access to other agents' documents will remain the same as None, View, or Full.

To create a seller negotiation:

  1. In the Negotiations work area, select the Manage Seller Negotiations task.

  2. On the Edit Seller Auction: Overview page, provide a title and select a close date.

  3. To autoextend the seller auction, select Allow autoextend and provide the details for the triggering period, length of extension, and number of extensions.

  4. In the Lines tab, include the items you want to auction. Based on your requirement, set a start price, price increment, reserve price, and allow bids for partial quantities.

  5. In the Bidders tab, select the bidders you want to invite for the seller auction.

  6. Click Publish.

    Bidders are sent notifications that they can view when the bidders login to the Supplier Portal. Bidders can acknowledge the receipt of the notifications.

To bid for seller auctions:

  1. In the Supplier Portal work area, in Auctions from Seller, click View Active Seller Auctions.

  2. On the Active Seller Auctions page, select the auction and then click Create Bid.

    When you are creating a bid, if there are bids from other bidders prior to your bid, then for a line item, the best bid price is available for you to view and plan your bid.

  3. Provide your bids for the line items and click Submit.

    You can create multiple bids for a seller negotiation.

  4. If you want to revise a bid that you have submitted, in the Manage Seller Auction Bids page, select the bid and then click Revise.

  5. Revise the bid, click Save and then click Submit.

To monitor and award seller negotiations:

  1. On the Manage Seller Negotiations page, select the seller negotiation you want to monitor by clicking the icon in the Monitor column.

  2. On the Monitor Seller Auction page, view the bids, check to see if the reserve price is met. Analyze the overall bid by individual bidders, projected revenue, and bids received for individual line items by various bidders.

    You can pause, extend, or invite additional bidders to the seller negotiation. You can disqualify a bidder.

    Based on your decision, award the seller negotiation by bid to an individual bidder or award the seller negotiation per line item.

  3. If you have received satisfactory bids, then in the Monitor Seller Auction page, click Actions > Close and in Close Negotiation, write a note to the bidders and then click Submit.

  4. To award a seller auction, in the Seller Auction (negotiation number): Overview page, click Actions > Award Seller Auction. To award by bidder, select the bidder and then click Save. To award by line, in the Lines tab, select line item, include the award quantity for a bidder with the highest bid and then click Save.

  5. Click Complete Award and in the warning message click Yes.

    Note: After you complete the award, it cannot be undone.
  6. In the confirmation message click OK.

  7. To notify the bidders about the award decision, click Notify Award Decision.

    When the bidders are notified, they can view the award details.

  8. To export an award as a spreadsheet, in the Analyze Seller Auction page, click Export Award and save the spreadsheet.

Approve Negotiation

Approve Negotiation Request

Your application may use the approval management system to track and manage approvals of both your negotiation document and your award decisions. You can approve the negotiation document, the negotiation award, or both. When approvals are used, internal reviewers view and OK the details of the negotiation document and the final award decision.

How Approvals Work

If approvals are enabled, you can have both the negotiation document and the award decision subject to approval before they can be further processed. The Approvals Management Extension is an automated process in which approval checks are passed from a user, a group of users, or the application to another user or group of users for consideration or action. Similarly, after you make an award decision, you can submit it for approval.

When the negotiation document requires approval, you submit the document for approval once you have completed it. When the document has been approved, the application automatically publishes it. The new status for the document depends on the open and preview dates.

  • If the open date is Upon Approval, the status is Active.

  • If the preview, open, and close dates are in the future, the status is Submitted.

  • If the preview is past but open and close are in the future, the status is Active.

  • If the previous and open are in the past but the close is in the future, the status is Active.

For award approval, once the award has been approved, the status changes to Approved, and you can complete the award and generate the purchase documents.

Whether a document or award needs approval depends on the approval rules that are defined for the task (publish or award). For example, a negotiation could be subject to approval because it includes items from a particular category, or an award decision could need approval because the award amount is over a certain limit.

If you are an approver for a document or award, you receive a notification when a document or award becomes available for you to view and evaluate. The notification contains information on the negotiation, and it contains links for approving or rejecting the document or award. If there are additional approvers in the approval chain, you can add an attachment before approving the document or award and sending it on to the next approver.

While a negotiation document is being approved, the status of the negotiation is Approval in Progress. While the award is being approved, the status is Award Approval in Process. If there is an issue and an approver rejects the document or award, you receive a notification with information about the rejection. You can edit and update the document or award and resubmit it for approval. Once the document or award is approved, the status changes to Approved, and you receive a notification that the approval is successful. Then you can continue processing the negotiation:

  • When the document is approved, it is automatically published.

  • You can complete the award and generate the purchase documents after the award decision has been approved.

Note that approvals tasks are different from collaboration team task assignments (although collaboration team members can also be designated as approvers). Tasks that are assigned to collaboration team members are tracked manually and have no effect on the processing of the negotiation by the application.

During both the document approval process and the award approval process, you can monitor the progress of the approvals by viewing the Negotiation Approval Process and the Award Approval Process pages.

When negotiation approvals are enabled, the negotiation document requires approval before being automatically published by the application. If award approvals are enabled then negotiation award will need approvals before award can be completed. A negotiation document or award's status changes as it proceeds through the approval process. The following tables explain the different statuses for a negotiation or award and the actions which the category manager can perform various statuses.

The following table explains the possible statuses for negotiation document approvals.

Negotiation Status Explanation

Draft

The initial status of the negotiation. Also the status of the negotiation after it is rejected. In this case, the category manager can edit and resubmit the negotiation document.

Approval in process

The negotiation document is in the process of being approved.

Submitted

The negotiation document has been approved, but the preview or open date is in the future.

Withdrawn

The negotiation document has been withdrawn from the approval process by the category manager.

Approved (not published)

The negotiation document has been approved but cannot be published because the open or close dates have expired, or there was an error in publishing the negotiation. The category manager can use the Modify Schedule dialog box to enter new dates and publish the negotiation.

Active

The negotiation document has been approved is accepting responses.

Rejected

The negotiation document was rejected by one or more of the approvers. The category manager can edit the document and resubmit it.

The following scenario shows a possible sequence of actions a category manager could take as a negotiation document undergoes the approval process.

  1. The category manager creates the negotiation document. At this point, the document is in Draft status.

  2. Once the document is complete, the category manager submits it for approval. The document status changes to Approval in Process. The category manager receives a notification that the negotiation has been submitted for approval. All the approvers receive notifications that the negotiation document is ready for their approval.

  3. The category manager notices there was an omission to the document and so removes it from the approval process to correct the error. The status changes to Withdrawn.

  4. The category manager edits the document to correct the error. The document status changes to Draft.

  5. The category manager resubmits the document for approval. The status is Approval in Process.

  6. All approvers approve the document. The status changes to Active. The category manager receives a notification that the document is approved.

The following table explains the possible statuses for negotiation award approvals.

Negotiation Status Explanation

Award Approval in Process

The award is in the process of being approved.

Withdrawn

The award has been withdrawn from the approval process by the category manager.

Award Approved

All approval actions have completed and the outcome is "approved."

Award Rejected

The award was rejected by one of the approvers. The category manager can access, edit the award and resubmit it for approval.

The following scenario shows a possible sequence of actions a category manager could take as a negotiation award undergoes the approval process.

  1. The category manager completes the award and submits it for approval. The document status changes to Award Approval in Process. The category manager receives a notification that the award has been submitted for approval. All the approvers receive notifications that the award is ready for their approval.

  2. One of the approvers rejects the award decision. The category manager receives a notification that the award has been rejected. The award status is Award Rejected.

  3. The category manager edits the award decision and resubmits the award for approval. The document status changes to Award Approval in Process.

  4. All approvers approve the award. The status changes to Award Approved. The category manager receives a notification that the award is approved.

  5. The category manager completes the award and begins creating the purchasing documents.

As the category manager, you can view the approval chain and add any additional approvers to it. You can also monitor the progress of the approval process by viewing the approval history pages.

Modifying the Approval Chain

Before submitting the document or award for approval , you can modify the approval chain by adding new users or approval groups. You cannot remove any of the approvers that are part of the application generated approval chain. Selecting Manage Negotiation Approvals (for negotiation documents) or the Manage Award Approvals (for award approvals) from the Actions menu. In either case, on the Manage Approvals page, you can see the existing approval chain. In the page, there is a tabular display of the approval steps and their approvers. In the lower portion of the page, you can see a graphical display.

To add an a new approver to the chain, highlight the stage entry within the stage that you want to update. You can add additional approvers by clicking the add icon and then searching and selecting a new approver or approval group.

Adding Attachments

If you want you can add an attachment to the document or award before approving it and sending it on to the next approver in the chain. The notification you received to begin your approval has an icon you can use to browse and add an attachment before you pass the document or award to the next approver.

Viewing Approval Histories

You can view the progression of both document and award approvals. From Negotiation summary page, select the View Approval History option from the Actions menu. The page lists the steps in the approval chain and their status at the time you accessed the page. You can refresh the page to view the current status of the negotiation's approval. The page displays each stage of the approvals, identifies the participants, and the result of the participant's action. The most current approval event appears on the page. To drill into the details of the approval stage, click the Submit link.

You can view the document approval process, after you have published the document. You can view the progress of the award approval after you submit the award decision for approval. .

Capture Supplier Response

Acknowledge Participation

Acknowledging your intent to participate in a negotiation only notifies the buyer company that you are interested in responding to the negotiation. Acknowledgment does not obligate future participation, nor is it required to participate.

Create Response

After you have viewed the details of the negotiation document, you can determine the best response to create. The response document generated will help you provide a complete response by providing all necessary information. Additionally, you can also assign a reference number to your response document and use it for your internal tracking.

When completing the response document, consider the following points as well as the following topics:

  • You can enter notes into the response document at the header and line levels, and provide attachments for your response.

  • You can print a .pdf version of your response for offline review before submitting the response, or after submitting your response for your records.

  • The information you are required to provide can vary between negotiations. If you have not provided all the required response information, you will receive an error message when you try to submit your response and be prompted to supply the missing information.

  • If the negotiation creator has allowed alternate lines, you can create a new response line in addition to responding to the originally defined line. You might want to create an alternate line if you want to offer different price breaks or other line information. Your additional response line and your response to the original line are both considered when the category manager analyzes and awards the negotiation.

  • If the negotiation creator has allowed it, you can create multiple responses within a round of negotiations. When you create multiple responses, you can offer different line information (as you can in alternate line responding), and you can also offer different responses to other negotiation attributes such as requirements, negotiation terms, or contract terms.

Response Controls

The category manager may have defined any of several parameters to control how you can respond to the negotiations:

  • You may be required to offer the entire quantity asked for, or you may be able to offer partial quantities. For example, the negotiation line may ask for 1000 units. You may be required to offer to sell the entire 1000 units, or you may be able to offer to sell fewer.

  • You may not be required to respond to all the negotiation lines. In this case, you can choose which lines you respond to.

  • You may be able to see other suppliers' contract terms, notes, and attachments.

  • If the category manager has allowed multiple responses, you can create additional alternate responses to the negotiation as well as a primary response.

  • You may be able to revise your current response

  • If the negotiation goes into multiple rounds of responding, you may be required to submit your second round response price at a level lower than the price from the first round of responding.

Requirements

The negotiation may include questions soliciting information about your company or your practices. Such questions are called requirements. The Category Manager may have defined such requirements. If they are defined, a box labeled Requirements appears in the chain of train stops. If responses are required, you must provide an answer. Your responses to requirements may be used along with all other response information when evaluating your response

Line Price and Other Information

The line price information you are required to provide depends on the negotiation type (auction, RFQ, RFI) and the type of outcome ( purchase order, blanket purchase agreement, contract purchase agreement). Line price information can include price or quantity offered.

Additional Line Information

There may also be information you are required to supply at the negotiation line level. An icon will appear in the Required Details column of the Lines table for any line which requires additional response information:

If the Category Manager entered price breaks/price tiers, you must respond to them. Additionally, if allowed, you may be able to modify or offer your own price breaks.

Cost factors are additional costs beyond price on which the Category Manager wants to negotiate. Typical cost factors might include storage, transportation, or tooling.

Line attributes typically ask for additional details about the product or service you are offering. Your responses to line attributes are used along with line and line price information when evaluating your response.

Note: If allowed by the negotiation, you can create alternate response lines in addition to your response to the line defined to the negotiation. You may want to do this if you want to suggest alternate line information such as different price breaks. All of your response lines are considered competing responses, and the category manager can award business to any of them.

To add an alternate line, while on the Create Response: Lines page, click the plus sign in the Create Alternate column for any line for which you want to create an alternate. If there is no plus sign for that line, you cannot create an alternate line and can enter only a single response.

Spreadsheet Responding

As an alternative to responding online, or if the negotiation contains many requirements or lines to which to respond, you may choose to use the spreadsheet method of responding. With this method, you export a spreadsheet from the application, completing it offline by entering your response information into the spreadsheet. When completed, you import the spreadsheet back to the application. If there are any errors, you are notified immediately so you can correct them import again.

Additional Bidding Features

Proxy bidding and mass price reduction are additional features available to you when responding to auctions.

Proxy bidding enables the application to automatically rebid for you when a competitor submits a lower winning bid. The application automatically rebids with a lower price when a competitor submits a winning bid. When you submit your initial bid, you specify a value (percentage of the initial price offered or a flat amount) and the minimum price you are willing to offer. On any subsequent rebids, the offer price is reduced by a value that you can specify. This happens automatically until you reach your minimum price.

Mass price reduction lets you to reduce the prices being offered on all or a subset of negotiation lines by a set amount. This frees you from having to update each line's price individually.

Online Messaging

Throughout the responding process, you can communicate with the buying organization by using online messaging. You can participate in multiple online conversations within the context of a negotiation. All messages you initiate are addressed to the buying organization and can be viewed by all members of the buying organization who are also participating in the negotiation. You can reply to message you are sent by an individual participant of the buying organization.

After you export the spreadsheet data, you can open it in Microsoft Excel (version 2003 or later). Excel automatically formats the display based on the style format that you selected. The spreadsheet consists of multiple worksheets. The following sections describe the information contained in each worksheet, and the tables in the sections describe each spreadsheet for that worksheet.

Your spreadsheet can have multiple worksheets, depending on the content of the negotiation. Use the instructions in the following table to complete the spreadsheet. After you have completed the spreadsheet, you can import the data back to the application.

The following table shows the sections of the Respond spreadsheet.

Response Worksheet Section Contents

Common Section

This section provides general information about the negotiation. You do not enter any information into this section.

General Section

In this section, you can enter your response to negotiation requirements and other general information such as a note to the category manager.

Lines Worksheet

Use this worksheet to enter your response information as required by the category manager.

Requirements Scoring Worksheet

This worksheet shows any requirements scoring information if provided by the category manager. You don' have to enter any response in this worksheet.

Attributes Scoring Worksheet

This worksheet displays any attributes scoring information for line items if provided by the category manager. You do not have to enter any response in this worksheet.

Using Spreadsheet Processing

This file contains the instructions for creating and importing responses in negotiation using an XML spreadsheet. Spreadsheets enable suppliers to easily respond to negotiations offline. Spreadsheet import is very useful when dealing with large negotiations having many requirements or lines, or having complex lines with many attributes or price tiers. Spreadsheet processing effectively speeds up the response process by enabling you to enter data into your spreadsheet offline and then import the data in a single operation

Common Section

The following table shows the fields in the Common section of the spreadsheet.

Field Title Meaning

Negotiation Title

Title of the negotiation as defined by the category manager, This appears over the common area table.

Negotiation

Type of negotiation, such as auction, RFQ, or RFI, and the number assigned by the application

Close Date

Date and time when the negotiation closes and responses are no longer accepted. Note that the category manager can optionally extend the negotiation or close it early.

Negotiation Currency

Currency defined for the negotiation by the category manager

Response Currency

In a multicurrency negotiation, the currency you selected when you began your response

Price Precision

Price precision applied to the response currency

Conversion Rate

In a multicurrency negotiation, the conversion rate

Company

Name of the buying company

Buyer

Name of the buyer

Phone

Phone number of the category manager

E-mail

Address of the category manager

Supplier

Your company name, as registered with the application

Supplier Site

Your company site

Requirements Section

The requirements section contains questions the category manager wants you to answer. Your responses are used by the category manager when evaluating your response. If there are requirement sections, they are grouped together in the section name. For two stage RFQ, at least one section is labeled technical and one or more sections are labeled commercial. If requirements are scored and the category manager decided to display the scoring information, then you can see it by clicking the View Scoring Criteria link.

If your negotiation contains many requirements, you can control the display by clicking the down arrow. You have several options including sorting the requirements by number to display specific requirements.

The following table shows the fields in the Requirements section of the spreadsheet.

Field Title Meaning

View Scoring Criteria

Link to the Requirements Scoring Worksheet. This link only appears if the category manager decided to score requirements and provide scoring related information.

Gray bar

  • The name of the requirement section is displayed. There is a row for each requirement. If there is a branched requirement, it is in its parent requirement. The hierarchy of the branched requirement is indicated by the numbering value:

    1. Number: the number of the parent requirement

    2. Letter: the indicator of which response to the parent requirement triggered the branch question

    3. If the category manager defined a branching question for this requirement, then the text of the branch question and its response field appear indented in the primary requirement question.

  • If this is a two stage RFQ, one or more sections are labeled Technical and one or more sections are labeled Commercial.

Response value fields

Enter your responses here.

  • If the requirement type is multiple choice with either single or multiple selections, and if the category manager defined a branching question for this requirement, the text of the branch question and its response field appear indented in the primary requirement question.

  • If the requirement is multiple choice with a single selection and if the category manager defined acceptable values for this requirement, you can display them by clicking the field and then clicking the down arrow.

  • If the category manager defined a branching question for this requirement, the text of the branch question and its response field appear indented in the primary requirement question.

    Depending on which value you select for the primary question, the branching question becomes unprotected, and you can respond to it.

  • If the requirement allows multiple selections, the options are listed for the question.

    To select a value, click the field for the response and select Yes from the dialog box menu. (You can also optionally select No for values you don't need.)

Comments

You can enter comments in the text box.

Lines Worksheet

The Lines worksheet displays the line information defined for this negotiation. Some fields appear depending on whether the negotiation outcome is purchase order or purchase agreement. The following table contains descriptions of all possible columns regardless of negotiation outcome.

If your negotiation contains many lines, you can control the display by using the choice list. You have several options including sorting the lines by line number to display specific lines.

The following table shows the fields in the Lines worksheet.

Field Name Meaning

Proxy Decrement Amount or Proxy Decrement Percentage

Enter the amount or percentage by which the application should reduce your response price before submitting a subsequent bid in a proxy negotiation. Proxy bidding is available for the auction outcome only.

Response Amount

Automatically calculated as you enter your responses into the spreadsheet.

Line

Line number and description as entered by the category manager

Item

Unique numeric indicator of the item that the category manager wants to purchase

Revision

Version of the item that the category manager wants to purchase

Rank

Rank of this response among competing responses

Start Price

Starting response price for one unit of the item or service being negotiated.

Your response price can't be higher than the response start price.

UOM

Unit of measure in which the category manager plans to buy the item.

Negotiation Quantity

Number of units the buyer wants to purchase

Estimated Quantity

Expected quantity to be bought over the life of the agreement

Estimated Total Amount

Expected total amount that the buyer pays for a fixed price line item over the period of the agreement.

Target Minimum Release Amount

Minimum amount the category manager wants to release against this blanket agreement line.

Response Price

The price you are offering for one unit of the item or service. Use numbers only. Omit currency signs.

Required for any lines on which you want to bid. For lines that you don't want to bid on, you can leave all the bid-related columns blank. This only applies to auctions that don't require you to bid on all lines.

If this line has cost factors, you do not have to enter a value for this field. Instead enter the line price in the Cost Factors table. The application automatically calculates the response price based on your line price and cost factor responses.

Proxy Minimum

Enter the minimum price that you are willing to proxy bid for this line. See the online help for a discussion of how proxy bidding works.

Response Quantity

The number of units of the item that you plan to buy.

Required for all lines that you want to bid on. If this negotiation allows only full quantities, this field displays the Quantity value and is protected against update.

If you are bidding only on selected lines, you can leave all the bid-related columns blank for lines with no bids. This applies only to RFQs that allow you to quote on selected lines.

If the line doesn't allow partial quantity bids, this field displays the Response Quantity value and is protected against update.

Promised Delivery Date

Date by which you can promise to deliver the item or service to the category manager's location

Response Minimum Release Amount

The minimum release amount you offer for this agreement line

Note to buyer

Any additional information for the buyer about this negotiation line

Requested Delivery Date

Date by which the item or service the category manager wants to purchase is needed at his location.

Target Price

Target bid price for one unit of the item or service to be purchased

Category Name

Name of the broad family or category to which this line belongs

Location

The address where the item or service must be delivered

Note to Suppliers

Any information the category manager wants to communicate to you

Cost Factors Table

The Cost Factor section displays cost factor information defined by the category manager for this line. The first row of this table is named Line Price. When using cost factors, you enter your per-unit price here instead of in the Response Price field.

The following table shows the fields in the Cost Factors table.

Field Name Meaning

Cost Factor

Name of the cost factor defined by the category manager

Pricing Basis

Method for calculating his particular cost factor

Use a fixed amount, a per-unit amount, or a percentage of line price amount.

Target Value

Amount the category manager expects for this cost factor.

Response Value

Your response to the cost factor.

Response Price

Your response value converted to a per-unit price.

Price Breaks and Tiers Tables

Price breaks are only available for purchase agreement outcome negotiations. If there are empty rows in the table, the category manager has defined the price breaks as optional. In this case, you can enter your own price breaks in the empty rows or modify the existing ones.

The following table shows the fields in the Price Breaks table.

Field Name Meaning

Type

Cumulative or Non-cumulative. With non-cumulative price breaks, only the quantity for this negotiation is eligible for a price break.

With cumulative price breaks, a running total of the item quantity is kept over the life of the agreement, and subsequent negotiations can take advantage of the previously accumulated quantity values.

Location

Category manager's site address for which this break applies

Quantity

Quantity bought

Start Date

Date that this break begins

End Date

Date that this break ends

Target Price

Price that the category manager is expecting. This price is shown only if the price break is optional.

Price Basis

Whether the response value you enter is an actual price or discount percentage of the line price

Response Price

Price or discount percentage of the line price that you are offering

You can use quantity-based price tiers in negotiations with any outcome. They function similarly to price breaks in purchase agreements. You enter your own price tiers in the empty rows or modify the category manager-defined price tiers.

The following table shows the fields in the Price Tiers table.

Field Name Meaning

Minimum Quantity

Minimum number of units available for this price

Maximum Quantity

Maximum number of units available for this price

Price

Price per unit offered for this quantity range

Attributes Table

The Attributes table displays Information about the line's attributes. You enter your response in the response value field.

The following table shows the fields of the Attributes table.

Field Name Meaning

View Scoring Criteria

Link that opens the Attribute Scoring worksheet. For Multiattribute Weighted Scoring auctions, you should consult the scoring information that the category manager defined. This link only appears if the category manager defined scoring information for at least one attribute and made the information visible by suppliers.

Attribute

The name of the attribute group and the attribute text is displayed.

Target Value

The target value entered by the category manager for the attribute

Response Value

Your response to the attribute. If the category manager defined acceptable values for this field includes a choice list.

Weighted Score

This field is calculated by the application when you enter a value in the Response Value field. This field only appears if the category manager defined scoring criteria and made the information visible by suppliers.

Total Weighted Score

Automatically calculated by the application as you enter values in the response Value fields. Total Weighted Score is the sum of all the Weighted Score fields. It only appears if the category manager defined scoring criteria and made the information visible by suppliers.

Requirements Scoring Worksheet

The Requirements Scoring worksheet only appears if the category manager defined scoring criteria and made it visible by the supplier. View the Requirements Scoring worksheet to determine how the category manager evaluates your responses to the negotiation's requirements.

The following table shows the fields of the Requirements Scoring worksheet.

Field Name Meaning

Requirement

  • The name of the requirement section is displayed. There is a row for each requirement. If there are any branching requirements, the hierarchy of the branched requirements is indicated by the numbering value:

    1. Number: the number of the parent requirement

    2. Letter: the indicator of which response to the parent requirement triggered the branch question

    3. Number: the number of the answer selected for the branch question

  • If this is a two stage RFQ, one or more sections are labeled Technical and one or more sections are labeled Commercial. You must respond to the requirements in both sections.

Acceptable Values

Acceptable response values for the requirement as defined by the category manage

For text requirements, this is a list of values. For numeric, date, and date and time requirements, it can be a set of numbers, dates, or one or more ranges of numbers (ranges can't overlap).

Score

If using automatic scoring, the numeric score assigned to that value by the category manager.

Weight or Maximum Score

If weights are enabled, this field displays the numeric value that the category manager defined to reflect that requirement's importance, relative to other requirements. If weights aren't enabled, this field displays the Maximum Score for the requirements as defined by the category manager.

Attributes Scoring Worksheet

The Attribute Scoring worksheet only appears if at least one line attribute has scoring information defined and the category manager decided to display scoring information to the supplier. Each line that has an attribute for which the category manager has entered score information has a table. Additionally, if there is a table for a line, entries for all attributes for that line appear. These attributes appear even if no scoring information was defined for a particular attribute. You can view the Attribute Scoring worksheet to determine how the category manager evaluates your responses to line attributes.

The following table shows the fields of the Attribute Scoring worksheet.

Field Name Meaning

Attribute

Name of the attribute.

Acceptable Response Values

Acceptable bid values for the attribute as defined by the category manager. A text attribute displays a choice list. Numeric and date type attributes, display a set of numbers, or one or more ranges of numbers (ranges cannot overlap).

Score

For each acceptable bid value, the numeric score assigned to that value by the category manager

Weight

For each attribute of the line, the numeric value assigned to it by the category manager to reflect that attribute's importance, relative to any other attributes for the line.

Requirements are questions the category manager added to the negotiation document to solicit extra information. Many times, these questions concern your company, its history and structure. Requirements might ask about certifications your company has achieved. Your answers to requirements can be used by evaluators when considering your response to the negotiation.

If there are requirements for you to answer, a Requirements train stop appears. Clicking the train stop opens the Create Response: Requirements page, where you enter your answers into the requirements questionnaire shown.

Respond to Requirements

Requirements are grouped into sections. When you first access the Create Response: Requirements page, you will see the requirements for the first section displayed. If there are additional sections, you can access them from the pull down menu on the side of the page.

The requirements are displayed in a questionnaire form. If this requirement maps to a question which you have answered in the past, your last response is defaulted into the response field. If a requirement response is required, it's identified by an asterisk. Also, in some cases, if you select a particular value for a requirement, additional questions are displayed for you to answer. The category manager may have defined a target value for a requirement. You can provide attachments and comments with your response if the category manager has allowed comments and attachments.

There are several different types of entries you can use to answer to requirement questions, depending on how the Category Manager defined the requirements.

  • You can enter free form text in the text boxes provided.

    • You can enter a single line of text or multiple lines in a text box.

    • For Number fields, you enter a numeric value. The acceptable format for the number depends on your user preference.

    • For Date fields, you can use the date picker to select a value.

    • For Date and time fields, you can use the date picker to select the date, the time picker in the format: hours + minutes + seconds, and then the applicable AM or PM radio button.

    • For URL fields, you enter a regular internet address.

  • You can select a single entry from a drop down list or menu or values. The values appear as radio buttons.

  • You can select multiple values from a defined list of values. The values appear as check boxes.

After you have completed your questionnaire, you continue with the rest of your response. If you haven't answered a required question, a message appears when you attempt to submit your response.

In this example, Jo Brown is a supplier contact who is responding to a negotiation for her procurement department. The negotiation contains requirements that solicit information about the company's certification history and corporate structure.

Jo signs in and sees in her Worklist that there is an invitation to a new negotiation. She clicks on the invitation link and then the Create New Response link in the Related Links section. On the Create Response: Overview page, she views the information about the negotiations and then clicks the link for the Requirements train stop.

Entering Responses to Requirements
  1. On the Create Response: Requirements page, she views the questionnaire containing the requirement questions, any target values the category manager defined and marked as viewable. She checks to see if there are multiple requirement sections.

  2. Jo returns to the first requirement section named General and answers the questions over the corporate structure. She answers the question "Is your company public or private?" by selecting the radio button option for Public.

  3. For the question "Where is your corporate headquarters located?" she enters "Toronto" into the text box.

  4. For the question "Do you have a corporate location in any of the following cities?" by selecting the check box entries for Vancouver, Chicago, and Philadelphia from the list of cities.

  5. To the question "Select your primary business classification?" she selects the value Small Business. Note that since business classification is an attribute of Jo's company's supplier profile, the value she selects is used to update the company's profile once the profile change request is approved by the buyer company. She also provides some certification information the category manager asked for, and adds an attachment.

  6. For the questions "When is the start of your fiscal year?" she uses the date picker to select September 1.

  7. To the question "Do you have any subsidiaries?" she selects the Yes radio button. This displays an additional question "Select any countries where your subsidiaries are located." For this additional question, she selects check boxes for US, UK, Germany, Mexico, and Brazil.

  8. After responding to all the requirements for section General, she clicks the down arrow to view the next requirement section. Once she has answered all the requirements, she clicks Save and then clicks the link for the Lines train stop to continue creating her response.

How You Respond to Lines Using a Spreadsheet

Your business can have tasks for direct material spaces and these tasks may contain negotiations with large number of lines of typically manufacturing parts, components, or construction equipment if you're in construction industry. These lines typically have a fixed set of line details like cost factors and attributes that can apply to all lines to drive compliance and standards.

You can respond to a large number of negotiation lines items using tailored spreadsheets. Based on your requirements, you can create responses by a spreadsheet using either of these options or both.

You can export the Requirements and Lines spreadsheet to gather all response information like the negotiation overview, requirements, and lines, and line details such as line attributes, cost factors, and price tiers represented in a hierarchy under each line and import your response information in the spreadsheet back into the application. For lines with different set of line details and negotiation or both have requirements, then use the Requirements and Lines spreadsheet. For more information, see Responding to a Negotiation by Spreadsheet.

Alternatively, you can export the Lines only spreadsheet to respond to the lines in the CSV format for a large volume of lines and import your response information in the spreadsheet back into the application. For direct materials when you have large volume of lines with fixed set of the line details (attributes, cost factors, and so on), then use the Lines only spreadsheet.

If you as a supplier can't access the Lines only spreadsheet then contact the category manager.

When you are responding to a negotiation and you export the lines only spreadsheet to create a response, a spreadsheet in .csv format with content maintained in linear non-hierarchical lines is available. You can use this spreadsheet to respond to large number of lines with details where you can use Excel functions to drag and copy response values for lines and their details or use filters to search lines and its details.

In the spreadsheet, the lines are exported with details in a linear format including cost factors, price tiers, price breaks, or attributes and you can only change response values. All response values entered are validated during import, and errors are displayed to assist you to fix them and upload again.

To add more price tiers or breaks, insert the same set of columns next to the original set for each new record to be added. For example, add additional Price Tiers by copying and inserting the columns: Price Tier Minimum Quantity, Price Tier Maximum Quantity, Price Tier Target Value, and Price Tier Response Price.

When importing, consider these two ways entries are done in the spreadsheet:

  • For basic line header columns (line, item, and so on), you need not maintain the same order.

  • For line children entries (attributes, cost factors, and so on), maintain the same order across children entries and same the sequence within each child entry.

Only these date value formats are supported and using any other date value format will throw validation errors.

  • Date format: yyyy-mm-dd

  • Date-time format: yyyy-mm-dd-hh:mm:ss

Only these currency and number value formats are supported and using any other currency value format will throw validation errors:

Numeric value example: 1,234.567 Or 1234.567

This table contains attributes and the related descriptions you can use to update the spreadsheet before import.

Attribute Editable Description

Line

No

The number of the line in the negotiation.

Item

No

Item identifier

Revision

No

The latest revision number of the item.

Start Price

No

The item price at which responses to the negotiation should begin.

UOM

No

Enter the unit of measure in which you want to negotiate for the line if it is different from the UOM associated to that line type. See the AddLinesUOM.txt file in the .zip for available UOM values.

Estimated Quantity

No

The expected number of units to be purchased over the life of the agreement.

Estimated Total Amount

No

The estimated amount of business (in the negotiation currency) that you expect to pay for this line.

Negotiation Quantity

No

The number of units buyer wants to purchase.

Best Response Price

No

The best response price for the line from among the active responses.

Line Price

Conditionally (Mandatory if editable)

The response price offered by the supplier for one unit of the item or service.

Response Price

Conditionally (Mandatory if editable)

The actual price per unit.

Target Minimum Release Amount

No

Minimum amount the category manager wants to release against this blanket agreement line.

Response Minimum Release Amount

Yes (Optional)

The minimum release amount you offer for this agreement line.

Proxy Minimum

Conditionally (Optional if editable)

Enter the minimum price that you are willing to proxy bid for this line.

Response Quantity

Conditionally (Mandatory if editable)

The number of units of the item that you plan to buy.

Required for all lines that you want to bid on. If this negotiation allows only full quantities, this field displays the Quantity value and is protected against update. If you are bidding only on selected lines, you can leave all the bid-related columns blank for lines with no bids. This applies only to RFQs that allow you to quote on selected lines. If the line doesn't allow partial quantity bids, this field displays the Response Quantity value and is protected against update.

Promised Delivery Date

Conditionally (Optional if editable)

The date by which you can promise to deliver the item or service to the category manager's location.

Promised Ship Date

Conditionally (Optional if editable)

The date the supplier delivers the item or service (purchase order only).

Note to Buyer

Yes (Optional)

Any additional information for the buyer about this negotiation line.

Requested Delivery Date

No

The date by which the item or service the category manager wants to purchase is needed at the location.

Requested Ship Date

No

For buyer managed transportation, the date the supplier is expected to have the goods ready for pickup from their site.

Target Price

No

Target bid price for one unit of the item or service to be purchased.

Category Name

No

Name of the broad family or category to which this line belongs.

Location

No

Supplier Site Assignment record of the supplier site in the Requisitioning BU.

Close Date

No

The negotiation close date.

Cost Factor

No

The name of the cost factor defined by the category manager.

Pricing Basis

No

The method for calculating his particular cost factor.

Use a fixed amount, a per-unit amount, or a percentage of line price amount.

Cost Factor Target Value

No

The amount the category manager expects for this cost factor.

Cost Factor Response Value

Yes (Mandatory)

Your response to the cost factor.

Cost Factor Response Price

No

Your response value converted to a per-unit price.

Price Break Type

No

Select Cumulative to apply the price break to the cumulative quantity on all released shipments for the item as part of the blanket purchase agreement.

Select Noncumulative to apply the price break to quantity purchased on a single release against the blanket purchase agreement.

Price Break Location

Conditionally (editable if for at least one line, supplier can modify price breaks. If editable, this column is optional)

Ship-to location where the price break will be applied.

Price Break Quantity

Conditionally (Mandatory if for at least one line, supplier can modify price breaks else display-only)

Specify the quantity for which this price break is requested.

Price Break Target Value

No

Specify a price that the buying organization wants to pay for one unit of the item.

Price Break Start Date

Conditionally (Mandatory if for at least one line, supplier can modify price breaks AND for noncumulative PB else display-only)

Specify the start date for delivering the items for which this price break is requested.

Price Break End Date

Conditionally (Mandatory if for at least one line, supplier can modify price breaks AND for noncumulative PB else display-only)

Specify the end date for delivering the items for which this price break is requested.

Price Break Pricing Basis

Conditionally (Mandatory if for at least one line, supplier can modify price breaks else display-only)

The background for the price break.

Price Break Response Value

Yes (Mandatory)

The response value got for the price break.

Price Tier Minimum Quantity

Yes (Mandatory)

Specify the minimum quantity the buying organization requires for this quantity-based price tier.

Price Tier Maximum Quantity

Yes (Mandatory)

Specify the maximum quantity the buying organization requires for this quantity-based price tier.

Price Tier Target Value

No

Specify a price that the buying organization wants to pay for one unit of the item for this quantity-based price tier.

Price Tier Response Price

Yes (Mandatory)

Specify a price that the buying organization wants to pay for one unit of the item for this quantity-based price tier.

Attribute

No

Enter the name of the line attribute you want to define (Example: PPM rate, grade).

The Attribute column and the five of these columns comprise the group of columns used to define a single attribute for this line. Insert and complete a new group of the six columns for each additional attribute associated with this line.

Attribute Group

No

Used to categorize attributes. If a value for Attribute Group is not defined, the default Attribute Group value is used. See the AddLineAttributeGroups.txt spreadsheet included in the .zip for the group values available to this negotiation.

Attribute Target

No

The target value for the attribute. Your entry must match the Attribute Value Type you specify.

Attribute Response

Conditionally

Enter Required, Optional or Display only to indicate how you want the suppliers to respond, and whether or not entering a response value is required or optional. If this is a multiattribute scoring negotiation and you want to score the attribute, then it must be Required.

Weighted Score

No

This field is calculated by the application when you enter a value in the Response Value field. This field only appears if the category manager defined scoring criteria and made the information visible by suppliers.

Internal Line ID

No

Unique identifier for each response line.

End of Line Delimiter

Yes

This is the last column of your spreadsheet.

Mass Price Reduction is a method of rebidding by which you can update the response price on multiple lines with a single rebid action. Mass Price Reduction is useful when you have bids on many similar lines.

When submitting a second or subsequent bid in an auction, the Reduce Price button appears on the Create Response: Lines page. Clicking the Reduce Price button displays the Reduce Price dialog box, which lets you to specify how you want your bids to be updated.

Reduction Price %

You enter a reduction as a percentage. After you enter your percentage reduction amount, clicking the Recalculate button displays the new bid values. Since the reduction amount is calculated from your current bids (not the current best bids), your new bid prices may still not become the new best bids, so you may need to reduce and recalculate until you are satisfied with your new bids. When finished, click Submit.

Apply to

You can select which lines to reduce. You can reduce prices for all negotiation lines you currently have bids on or apply the reduction only to your losing lines. Or you can select which of your lines to update.

Proxy bidding enables you to have the application automatically rebid on your behalf by a set amount whenever a bid that improves on your bid is received. Proxy bidding frees you from having to constantly monitor and react to competing bids.

When creating a bid for a negotiation in which you want to use proxy bidding, you must specify two bid controls: proxy decrement and proxy minimum. These two values control how the applications proxy bids on your behalf.

Proxy Decrement

The proxy decrement is the value by which the application will underbid any competing bid which beats your bid. The negotiation author specifies whether the proxy decrement value you enter is considered a flat amount or a percentage of the current best bid. If the value is being used as a percentage, a percent sign appears at the end of the entry field.

Proxy Minimum

The proxy minimum is the amount at which the application ceases proxy bidding on your behalf. The application will not proxy bid for you if the resulting bid would be less than the proxy minimum you specify.

The proxy bidding process uses the two proxy bid controls you defined (Proxy Decrement and Proxy Minimum) and the current best bid to determine which new bid value to submit on your behalf.

How Proxy Bids Are Calculated

When you submit your initial bid amount, you can enter a number as your proxy decrement. The application considers this as either a fixed amount or as a percentage of the current best bid. Either way, this is the amount used by the application when calculating your next bid price. You also declare the proxy minimum amount, which functions as the floor below which you do not bid.

Proxy Bidding Scenario

In the following example, your initial bid is $1000 with a proxy decrement value of 10% and a proxy minimum amount of $500.

The following table shows how a proxy bid is updated during the course of a negotiation.

Competing Bid Your Proxy Bid

$995

$895.5 ($995 reduced by 10%)

$763

$686.7 ($763 reduced by 10%)

$660

$594 ($660 reduced by 10%)

$540

Proxy bids no longer submitted because they would drop below your proxy minimum of $500.

Price breaks are reductions in the price of an item depending on certain conditions such as purchasing in bulk or from a certain location. For example, a seller might ask a certain price for a purchase of up to nine cases of widgets but offer a lower price for a purchase of more ten or more cases. Price breaks can be cumulative or noncumulative. Noncumulative price breaks apply only to quantity bought on a single release against the agreement. Cumulative price break amounts accumulate over the life of the agreement. The category manager can choose to allow the supplier to modify the existing price breaks, including even offering new price breaks.

In this scenario, the category manager for Vision corporation has defined a negotiation to renegotiate an existing catalog with Office Supplier's Inc., one of the company's suppliers. Since this is a purchasing agreement outcome, the negotiation contains price breaks on many of the lines. The category manager has chosen to allow the supplier to modify or offer different price breaks. The price breaks are cumulative over the life of the agreement.

James Ng, Office Supplies Inc.'s customer service representative for the Vision account, responds to the negotiation, including responding to the price breaks.

Respond to Price Breaks
  1. After viewing the Overview and Requirements pages (if present) and accepting the terms and conditions, he accesses the negotiation line by clicking the Lines train stop at the top of the Overview page.

  2. He enters all the appropriate negotiation line information and then notices the icon under the Required Details for one of the negotiation lines. He clicks the icon to access the Lines: Edit Line page.

  3. He sees that the line has additional requested information to which he should respond. This information could include price breaks, price tiers, cost factors, and line attributes. For this line, there are price breaks. He views the price breaks suggested by the buyer and replies with the price his company offers.

  4. When finished, he clicks Save and Close to continue responding to the negotiation.

Price tiers are reductions in the price of an item in return for purchasing it in bulk. For example, a supplier might ask a certain price for a purchase of up to nine cases of widgets but offer a lower price for a purchase of ten or more cases. Price tiers are used by the buyer and seller to minimize the amount paid per unit and to maximize the number of units sold.

In this scenario, the Category Manager for Vision corporation has defined a negotiation to renegotiate an existing agreement with Office Supplies, Inc., one of the company's major suppliers, and has specified price tiers on many of the lines. John Angelo, the customer representative for Office Supplies Inc account, and so responds to the negotiation.

Respond to Price Tiers
  1. After completing the Overview and Requirements page, John accesses the negotiation line by clicking the Lines train stop.

  2. He enters all the appropriate negotiation line information and then notices the icon in the Required Details for one of the negotiation lines. He clicks the icon to access the Lines: Edit Line page.

  3. He views the existing price tier values that were entered by the negotiation creator. He can enter a different price level structure if he wants. For example, the original price tiers suggested by the Category Manager might be:

    Minimum Amount Maximum Amount Price

    1

    500

    16

    501

    1000

    14

  4. However, Tom wants to propose a different structure and so enters the following table:

    Minimum Amount Maximum Amount Price

    1

    300

    16

    301

    600

    14

    601

    1000

    12

  5. He also enters a response price. Note that, depending on the quantity he is offering to sell, the price must match the price reflected in the price tiers he is suggesting.

  6. Once Tom has finished entering his line information, he clicks Save and proceeds creating his response.

When creating a new negotiation, a category manager can add cost factors to any line in the negotiation. Cost factors identify additional costs associated with a line which must be negotiated in addition to the line price. When you respond to a negotiation that includes cost factors, you can view these specific line details (if allowed by the buyer) and enter the additional information requested.

You can define three types of cost factors:

  • Fixed amount: A fixed amount can be specified for the entire negotiation quantity.

  • Per unit: Charges are applicable per unit of the line item.

  • Percentage of line price: Charges are applicable as a percentage of entered line price for the line item.

Your final response price for the line is calculated by adding all the cost factors for the line per unit.

When you review the cost factors for the negotiation line, consider how each is calculated as you prepare your response. The negotiation creator may have also displayed target values for some of the cost factors.

The following scenario shows how Vijay Singh responds to the cost factors on a negotiation line. Vijay works for an import company with business in Asia and South America.

Respond to Cost Factors
  1. Vijay accesses the negotiation and navigates to the Lines tab. He sees an icon in the Required Details column for the line he is responding to. He clicks the icon and accesses the Lines: Edit Line page.

  2. On the Lines: Edit Line page, he sees that there are three cost factors associated with the line. He also notices that there is a target of $100 for the shipping charge.

    Cost Factor Pricing Basis

    Shipping

    Fixed amount per line

    Hazardous material charge

    Amount per unit

    Insurance

    Percentage of line price

  3. Vijay enters $200 as the unit price offered, $125 for the Shipping cost factor, $50 for hazardous materials charge, and 20 for Insurance. Since Vijay is offering to sell 100 units, this results in a response price of $6251.65 for the line: (200*100 + 125 + 50*100 + 200*20/100)100

  4. Once he has entered the values for the cost factors, Vijay continues responding to the negotiation.

The negotiation document author may have asked you to respond to certain important attributes of a particular negotiation line. Such attributes do not deal with price or additional costs of a line, but instead they are concerned with characteristics of the line.

Line attributes may be required or optional. If a line attribute is optional, you do not have to respond to it. You must respond to all required attributes.

Line attributes can be used when evaluating responses to a negotiation. Such negotiations are called multiattribute scored negotiations. In multiattribute scored negotiations, all required attributes of type text, number, or date, have a list of acceptable values defined by the negotiation author. When you reply to a required attribute in a multiattribute scored negotiation, you must select your response from the predefined values. You can enter a value for a required attribute of the type URL. If the negotiation is not a multiattribute scored negotiation, there are no lists of acceptable values, and you can enter any value appropriate for the attribute data type.

The negotiation document author may have defined some additional information you can use when deciding on your response to the line attribute. If the author specifies a target value for a line attribute, she may choose to display the target value. Additionally, in a multiattribute scored negotiation where there are required attributes, the allowable values are assigned a numeric score that indicates that value's desirability. The author may choose to display this information as well. You should check any targets and scores that are displayed when planning your response to the attribute.

When ready to reply to the attribute, you select an acceptable value from the lists supplied if required or enter the value directly if allowed.

Manage Negotiation Deliverables

Use the Manage Contract Deliverables task to communicate the status of deliverables to the purchasing department and to submit any required documents.

Contract deliverables are created by the buyer as part of the contract negotiations and are listed in the contract terms. Each deliverable includes information about the due date and can automatically notify you before it is due.

If a particular deliverable is due periodically, then the application creates separate instances for each of the due dates. Such repeating deliverables share the same name but have different due dates. For example, a safety report that is due every month after the contract is signed, results in multiple instances of the same deliverable each with the appropriate due date.

The following diagram outlines how you use contract deliverables to communicate with the buyer:

  1. Before the due date or when you receive a notification, you log onto the supplier portal. You can edit any deliverable in the Open or Rejected status.

  2. You can add a comment to the deliverable and attach any required files and submit the deliverable for buyer review.

  3. They buyer reviews your submission and indicates if the deliverable is accepted.

  4. If the buyer rejected the deliverable and it is in the Rejected status, then you can edit it and submit it for approval again.

  5. If the buyer rejects the deliverable and it is past due, the buyer changes the status to Failed to Perform. You cannot edit deliverables with this status.

Buyer Role in Deliverable Management

The buyer reviews the submission:

  • If the buyer accepts your submission, the application sets the deliverable to the Completed status.

  • If the buyer rejects the deliverable and it is not yet overdue, the application sets it to the Rejected status. If the rejected deliverable is overdue, then the buyer sets it to the Failed to Perform status. The buyer can also cancel the deliverable or modify the due dates on the deliverable by amending the contract.

Automatic Notifications

If you, the supplier, are the responsible party for the deliverable, then the buyer can set up notifications that inform you automatically:

  • Prior to the deliverable due date

  • When one of the parties changes the status of the deliverable

  • When a deliverable is overdue

Manage Negotiation Amendment

Acknowledging a negotiation amendment.

Helen Morgan has already submitted one quote and is monitoring the negotiation using View Active Negotiations. The negotiation is an open RFQ, and she notices that her response is now trailing a lower response. She decides to submit a new response and clicks the Create Response button. She is presented with a warning message saying the negotiation has been changed, and she must first acknowledge the amendments before she can continue placing a new quote.

Acknowledge an Amendment
  1. She clicks Yes to continue.

  2. The Acknowledge Amendments page displays summary information about the changes (amendments) to the existing negotiation document. She views this information about the negotiation document change (in this case, a new negotiation line has been added) and decides whether the change affects her new quote. In this case, she decides that not only will she update her existing quote amount, but that she will also submit a quote on the newly added negotiation line.

  3. After viewing the details about all the amendments, she selects the check box stating that she has reviewed and acknowledged the amendments. She clicks Submit.

  4. A confirmation appears from which she continues placing her new and updated quotes.

Monitor Negotiation

Examples of Monitoring an Active Negotiation

There are several displays and graphs available for monitoring active negotiations. Displays are divided between Overview and Line level displays. Also, you can select two displays to view at the same time. Note that the monitoring displays are based on price offered only. They do not include additional response details such as cost factor, price break, or line attribute responses. Savings display's require that the Current Price was specified when the negotiation was defined. Blanket and contract purchase agreements negotiations must have an estimated quantity defined to generate certain graphs.

Overview Displays

  • Negotiation Summary

    Summary information based on combined supplier responses

  • Responses by Supplier

    Information displayed by supplier response.

  • Savings by Supplier

    The savings on the negotiation obtained by accepting that supplier's response for the entire negotiation.

  • Responses by Time

    Displays the negotiation responses as they are received over the course of the negotiation

Line Displays

  • Unit Prices by Time

    Displays the unit prices as they are received over the course of the negotiation.

  • Responses by Time

    Displays the line responses as they are received over the course of the negotiation.

  • Savings by Supplier

    The savings on the line obtained by accepting that supplier's price.

  • Unit Price Savings by Supplier

    The same as the Savings by Supplier display, but on a per unit basis.

Extend a Negotiation

Sofia Hernandez, a Category Manager, is monitoring a negotiation that is approaching it's close time. She checks the line level Responses by Time display and sees that there is an increasing number of responses for a particular negotiation line. She decided to extend that line to allow more responses to be accepted.

Add Participants

Mario Tesca is a collaboration team member for an active negotiation. His collaboration team task is to monitor the behavior of the participating suppliers. He notices that for one of the negotiations he is watching, all of the invited suppliers have responded, but the offers are not as low expected. He decides to invite additional suppliers to the negotiation, hoping the new suppliers will offer lower prices for the negotiation.

Compare Responses

Jane Nakamura, a negotiation author, notices that a particular supplier is offering much lower prices for several negotiation line groups. she checks the line Savings by Supplier display for that line and verifies that the supplier is offering a significantly lower price for the line. However, when she checks the negotiations Savings by Supplier display, she sees that the overall savings available from this supplier is similar to other suppliers participating in the negotiation.

Manage Negotiation Lifecycle

You can change the owner of the negotiation. This includes negotiations of all types and statuses. The new owner must be authorized as a Procurement Agent in the Business Unit that owns the existing negotiation.

The new owner of the negotiation can perform all of the management activities of the previous negotiation owner.

Collaboration Team Updates

The new owner and the owner's manager are added to the collaboration team. The previous owner and manager are kept as regular members of the team.

Notifications and PDF Documents

The new owner receives any notifications generated after the ownership is changed. Also, the new owner appears on any printed copies of the negotiation document.

How You Download Attachments in Negotiations

Category managers and collaboration team members can download all attachments in sourcing documents. From a single location, the category managers and collaboration team members can download all the attachments at once or select the required attachments.

In two-stage bidding, only the eligible attachments for a specific phase (technical or commercial) can be downloaded.

Negotiation Attachments

You must be a category manager, collaboration team member, or a supplier to download all or selected negotiation attachments from one location. The attachments added to the header, line, or requirements are shown.

Response Attachments

You must be a category manager or collaboration team member to download all or selected response attachments from one location. The attachments added to the header, line, or requirements are shown.

You can access the Response Attachments page either from the negotiation, or when scoring responses.

Negotiation controls determine which features are available to a negotiation and how they are used. The availability and default values for these controls are specified by which negotiation style you select when you begin defining your negotiation, however, you can override the values here.

Schedule Controls

You have several settings that control the negotiation time line.

  • Preview Dates

    You can choose to set a preview date for your negotiation. During the preview stage, suppliers can view the negotiation but not enter any responses.

  • Open Dates

    You can choose to open the negotiation immediately, as soon as you publish it, or you can choose a future date on which the negotiation opens for responding. If approvals are enabled for your environment, you can select a specific date, or a set number of days after the open date.

  • Close Date

    You must specify a close date. Once the close date is reached, no more responses are accepted. If the negotiation is an auction, you can optionally choose to enable the autoextend or staggered closing feature.

  • Award Date

    You can specify an award date for the information of the suppliers. Award dates are not enforced by the application. You can award the negotiation at any time after closing it.

Negotiation Controls

You have three controls that control the visibility of supplier responses and the general appearance of the negotiation document.

  • Response visibility

    Response visibility controls when suppliers can see information from competing responses.

    • Open - in an open negotiation, suppliers can see competing response information while the negotiation is active.

    • Blind - in a blind negotiation, suppliers can only see the best bid value (if allowed).

    • Sealed - in a sealed negotiation, buyers cannot see any responses until they are unlocked, and suppliers cannot see any competing response information until the responses are unsealed.

  • Negotiation layout, response layout, contract terms layout - you can select from predefined document layouts for printing.

Requirements Controls

Requirements are questions presented to participating suppliers to elicit high-level information. Supplier responses to requirements can be assigned scores for use when evaluating among competing responses.

  • Enable weights

    If you enable this control, you can weight the negotiation requirements to reflect their relative importance.

  • Display scoring criteria to suppliers

    If you enable this control, the scoring criteria specified by the negotiation author is displayed to the suppliers.

  • Default maximum score

    The default maximum score sets a default value for the highest value you can enter when scoring supplier responses. You can override this value when creating the actual requirement. However, if many of the requirements you create share the same maximum value, you can simply specify it here as the default to automatically appear.

Line Controls

You use the line control section to specify whether price tiering is available for the negotiation lines. You also specify how line rank is calculated and indicated.

  • Price tiers

    The kind of price tiers you have available depends on the negotiation outcome. If the outcome is a standard purchase order, you can only use quantity-based price tiers. If the outcome is a blanket purchase agreement, you can use either price breaks or quantity-based price tiers. If you select none, you cannot create any price tier information.

  • Rank indicator

    You can select whether the top responses are ranked using a numeric ranking (1-3), or whether only the best response is indicated. You can also choose to have no ranking shown.

  • Ranking method

    You can select whether a supplier response is ranked using the price alone, or whether responses to any line attributes are also used when evaluating response rank. If you do not select Multiattribute scoring, you can define line attributes, but you cannot score them.

Response Controls

You have several settings that control which application features are available to the supplier, and how supplier responses are handled.

  • You can restrict the participants only to suppliers which were included in the invitation list you specify for the negotiation. If you do not restrict the participants, suppliers could find the negotiation by searching the open negotiations visible in their system. They could access the negotiation and place a response

  • You can allow suppliers to see the notes, attachments, or contract terms of other suppliers' responses. This control is only available with blind negotiations.

  • You can allow suppliers to choose which lines to respond to. With this setting enables, suppliers can choose to not respond to certain lines. If you do not enable this setting, suppliers must respond to every line in the negotiation.

  • You can allow suppliers to place multiple responses to a line. If you do not enable this setting, a supplier can only place a single response per round of responding.

  • You can choose to display the current best price to suppliers in a blind negotiation. This allows the suppliers to see what price they should beat if they submit a subsequent response. This setting is only available with blind negotiations.

  • If you allow multiple responses, you can choose to force the supplier to submit a response that is:

    • Lower than the supplier's last response

    • Lower than the current best price

Monitor Negotiation

The Live Monitor feature enables you to graphically view and compare responses to a negotiation in real time. It gives you a single location from which you can generate many detailed graphic and text displays. You can use these graphs to assist in analyzing your negotiation responses both while a negotiation is active and after it closes.

Live Monitor displays summary information for the negotiation. This includes information about participation levels, potential savings, and participating suppliers. Additionally Live Monitor can generate the several displays at the negotiation and line levels. These displays are updated in real time to provide the most current displays. Based on the real-time information displayed on the monitor page, user can take suitable action on the negotiation directly from the Live Monitor.

Overview and lines level information is displayed in different tabs. Users gets all the information to monitor the negotiation effectively without leaving the page. Highly advanced graph components support zooming and scrolling. User can drill down to a response from the graph. Alerts are visible directly on the elements.

The Live Monitor page automatically refreshes. You have the choice between manually refreshing the page or using the automatic refresh option. Change indicator icons highlight the changes between consecutive page refreshes.

Bars representing a response are labeled either by the response number or the supplier name. If there are ties among responses, they are distinguished by time submitted. Suppliers are identified on XY charts by shaped icon. Moving your mouse over a graph point or a chart bad displays the time, amount, supplier and supplier site for that response.

If a negotiation is amended or taken to a new round of responding, response information from the previous version is discarded. Pausing a negotiation does not affect Live Monitor information. For charts that track responses over time, the time the first response is received becomes the entry in the graph. The graph contains the close date. The time indicators are adjusted and displayed accordingly.

Live Monitor displays are not available for:

  • RFIs

  • Contract purchase agreements which have no lines

  • Sealed negotiations. The responses must first be unlocked to be visible in Live Monitor.

  • Additionally, to generate savings displays, a Current Price value must be provided in the negotiation document.

Responses by Supplier (Negotiation Level)

The graph shows all responses to the negotiation sorted by response amount (the lowest response value appears first). If the supplier has multiple responses, all responses for that supplier are shown.

Savings by Supplier (Negotiation Level)

The graph displays the cumulative savings available from each supplier participating.

Savings by Time (Negotiation Level)

The chart shows savings from each response plotted against time of response submission. No chart is displayed if current prices were not specified for the negotiation lines.

Unit Prices by Time (Line Level)

This graph shows all the responses to the negotiation. If the supplier has multiple responses, all responses for that supplier are shown, both active and archived. The chart shows the responses for the line, lot, or group line. This is a scatter graph which plots the responses from multiple suppliers in both active and archived status for the selected negotiation line. The data points (responses) pertaining to a single supplier or supplier site combination are connected by line. The Y axis shows the response price offered for that line unit. The X axis shows the time range over which the responses have been submitted. Vertical lines indicate the close date, the current price (if a current price was defined when the negotiation was created), and the target price (if a target price was defined when the negotiation was created).

Responses by Time (Line Level)

This chart shows all responses for the line, lot, or group line. The Y axis shows the response line amount offered for the line. This is calculated as price * quantity. The X axis shows the time range over which the responses have been submitted. Vertical lines indicate the close date, the current price (if a current price was defined when the negotiation was created), and the target price (if a target price was defined when the negotiation was created).

Savings by Supplier (Line Level)

The chart shows all responses to the negotiation. If the supplier has multiple responses, all responses for that supplier are shown. The Y axis shows the savings percentage offered for the line. The X axis shows the time range over which the responses have been submitted. Values can be positive or negative. If no current price was entered when the buyer created the negotiation, an empty graph is displayed with a message that savings could not be calculated.

Unit Price Savings by Supplier (Line Level)

The chart shows the savings for the line, lot, or group line. If the supplier has multiple responses, all responses for that supplier are shown. The Y axis shows the savings percentage offered for the line. The X axis shows the time range over which the bids have been submitted. Values can be positive or negative. If no current price was entered when the buyer created the negotiation, an empty graph is displayed with a message that savings could not be calculated.

You can monitor the progress of an open auction using the negotiation monitor page (the negotiation monitor page is not available for blind or sealed auctions, RFQs or RFIs). You can review the progress of your bid in real time while the auction is still active. The page automatically appears as soon as you submit your bid. It displays again according to a refresh period that you can set from the Actions menu. You can also access the monitor by clicking the Monitor Negotiation recommended action link in the Ongoing Negotiations region of the Negotiations tab.

Graphic displays that show visually the rank of your bids in relation to competing bids. The two summary displays show the overall rank of your bids. One chart shows the percentage of your bids which fall into the ranking categories (according to the ranking method or the negotiation). The second displays a comparison of your line bid prices to best bid prices for those lines. Additionally, you can also display line level graphs by highlighting a line in the Lines region and clicking the Show Graph button. You can select which chart you want to view - all bids or active bids only. The resulting display shows your bid price compared to competing bid prices.

You can use the negotiation monitor page to easily rebid on your auction. The Revise button displays the monitor negotiation page in edit mode so you can enter new bid values. You can monitor and control your proxy bidding and mass price reduction operations as well (the page displays a warning for any line which has reached their proxy minimum limit).

When you create a negotiation document, you set a close date and time. This is the time when the application stops accepting responses to the negotiation. However, if the negotiation is an auction, and you find that the volume of bids has increased close to the end time, you can extend the auction to allow for more bids be accepted. You can extend the auction manually or tell the application to automatically extend the auction by enabling the autoextend feature. You enable autoextend by specifying extension values when you define the negotiation document.

Extend Auctions

To manually extend an auction, select Extend from the Manage submenu of the Actions menu on the negotiation summary page. In the Extend Negotiation section, you supply a new close date and time and submit your change. All participants are notified of the new close date.

To set up the Autoextend feature, you specify parameter values when defining the negotiation document. These parameters control when the autoextension gets triggered, how many autoextensions are allowed, and the length of each extension.

To update the autoextend parameters for an ongoing auction, select Extend from the Manage submenu of the Actions menu on the negotiation summary page. In the Autoextend section enter the new parameter values and click submit.

You can choose to have the close time of your auction automatically extended if a new winning bid is received during the final minutes of your auction. These extensions are called autoextensions and are only available with auctions.

Settings That Affect Autoextensions

Allow autoextend - allows autoextensions to be defined for this negotiation. Checking Allow autoextend displays the following autoextend controls.

Lowest Triggering Response Rank - You can choose to have an autoextension triggered for any number of the top ranked bids. For example, you could choose to have autoextension triggered whenever you receive a better bid for not only the current winning bid, but also for the current second or third best bids as well. If you know you will award this line to multiple suppliers, the feature permits you to encourage competition on not just the top bid, but competing bids as well. Enable this feature by specifying the bid rank for which the receipt of a bid ranked in this position or higher triggers autoextend. If this field is left blank, any bid triggers autoextensions.

Lines to Autoextend - Identifies individual lines to autoextend. You can choose to autoextend all lines or only the lines that triggered the autoextend.

Start Time of Autoextensions - You can start autoextensions from the scheduled close time of the auction or the time that a triggering bid is received during the triggering period prior to the close time. For example, if you enable an autoextend start time of 30 minutes and a triggering bid is received within the final 30 minutes of the auction, your auction automatically extends for 30 minutes past the scheduled close time of the auction if you select "Close date." However, if you select "Receipt time of triggering response," your extension begins as soon as a triggering bid is received within the triggering period.

Triggering Period - the period prior to close date in which responses can trigger autoextend.

Length of Extensions - the duration of each autoextension

For example, you could specify a triggering period of 30 minutes, an extension length of 20 minutes, and a start time of close date. With these settings, if a triggering bid is received at any time within the last 30 minutes of the auction, the close date is moved to 20 minutes past the original close date and time.

Number of Extensions - the number of times a negotiation autoextend. Leaving this field blank allows an unlimited number of autoextensions.

The Monitor Supplier Activities page displays a detailed and historical information about the activities of the suppliers who are participating in the negotiation. You can create reports on the activities in the BI application.

For each supplier, you can see all the activities that supplier has performed for the negotiation. For each activity, you can see the date and the time the supplier performed the activity. The application logs the activities performed by the supplier such as:

  • Viewed negotiation

  • Acknowledged participation

  • Acknowledged amendment

  • Downloaded negotiation PDF document

  • Downloaded response PDF document

  • Accepted terms and conditions

  • Created response

  • Submitted response

  • Analyzed negotiation

  • Accepted negotiation invitation

  • Accepted terms and conditions

  • Surrogate response created

  • Viewed negotiation amendment

  • Exported response spreadsheet

  • Reviewed round changes

Additionally, you can use the Export to Excel option from the Activities to generate a spreadsheet that you can download and save. To monitor an open negotiation's suppliers:

  1. On the Negotiation work area, from the task panel, select Monitor Negotiations.

  2. On the Manage Negotiations page, enter the negotiation number or title and click Search.

  3. From the search results, find the negotiation you want to monitor and click its negotiation link.

  4. On the Negotiation page, from the Actions menu, select Monitor > Monitor Supplier Activities.

  5. On the Monitor Supplier Activities page, a table shows the suppliers who are participating in the negotiation. An additional table shows the activities logged so far for that supplier. You can highlight a supplier and the activities for that supplier are displayed.

  6. From the Activities menu in the Activity Log section, you can select Export to Excel to generate a spreadsheet that you can save locally.

Monitoring Supplier Activities

Vision Corporation is currently conducting an auction for supplies and services it's going to use to set up a new West Coast office. Currently there are responses from three suppliers in the auction, two who were originally invited and a third who found the auction during a search. The Category Manager performs the following actions using the Monitor Activities page:

  • She wants to see detailed information about the second supplier's activity, so she highlights the row in the Supplier Activities table. The Activities table refreshes with the information about the supplier site, supplier contacts, and any activity they have performed on the negotiation.

  • The Category Manager notices that the uninvited participant has not entered a response. She recognizes the supplier name and remembers that this supplier has accessed several negotiations in the recent past without ever responding. She suspects the supplier has no intention on responding and is only monitoring the progress of the negotiation to obtain competitive information, so she locks the supplier, preventing any further access.

Maintain Negotiation

There are many operations you can perform to manage a negotiation while it is active. You perform these tasks by selecting the appropriate suboption from the Manage options of the Actions menu.

Negotiation Close Time

There are many actions you can take while a negotiation is active and receiving responses.

  • The Category Manager may receive inquiries from a supplier asking for clarification about a negotiation requirement or line attribute. The Category Manger pauses the negotiation while she is conducting a discussion with the supplier.

  • A negotiation may unexpectedly start receiving a large number of responses in the last few minutes before the close time. The Category Manager may decide to manually extend the negotiation to allow all responses to be submitted. Note that you can also define the application to automatically extend negotiations.

  • The Category Manager may have decided to begin a new round or responding. She may have decided that enough valid responses have been received that she can begin awarding the negotiation. For either action, the negotiation must be closed before it can be processed further.

  • If the negotiation is not receiving any responses or the responses are unsatisfactory, you can cancel the negotiation ahead of its close time. A negotiation that has been canceled can no longer be processed.

    The Category Manager may decide to close a negotiation early if the manager is satisfied with the supplier response. When the negotiation close date is changed to an earlier date, the close date for the negotiation is updated and along with the in-app notification, all invited and participating suppliers are notified by email. There is an option to enter a note to be included in the supplier's email notification.

Negotiation Owners

You can change the owner of the negotiation. The new owner receives any new notifications. The previous owner and the owner's manager are retained as collaboration team members.

Supplier Contact

You can change the supplier contact after a negotiation is published but before it is closed. The new contact receives any new notifications. The old contact is removed from the negotiation's list of invited suppliers and no longer receives any notifications.

Collaboration Teams

There is a new employee in the procurement department. The Category Manager adds the new employee to the collaboration teams for several ongoing negotiations. She can also manage the access level of the new employee between view-only and full access.

Requirements

You can manage requirements for a negotiation while the negotiation is active. You can add new internal requirements and can change the weighting of external requirements.

How You Invite Additional Suppliers

You can invite additional suppliers to an active negotiation. The suppliers are notified and can begin responding just like the suppliers who were included on the original invitation list.

Negotiation Amendments

You can update details of the negotiation while it is active. For example you could add additional negotiation lines or change the award date. Such changes are used to create an amendment to the negotiation. When you create an amendment, participating suppliers are notified. They must access the negotiation, view the amendment, acknowledge the changes, and resubmit their responses.

Suppliers can access your negotiation in different ways: suppliers can find your negotiation by searching online; or you can explicitly invite a supplier to participate. For example, you can research suppliers from the supplier search page and then specifically invite them by adding them to the supplier invitation list while creating the negotiation document. Then when the negotiation is published, invitation notifications are sent to the suppliers you indicated. Also, you can invite additional suppliers after the negotiation has been published or even if the negotiation has been opened for responding. You might want to invite additional suppliers if the response prices you are receiving are not to your liking, if the responses are not meeting negotiation targets, or if new suppliers contact you and ask to be allowed to participate. When you invite a supplier, you specify a main contact to receive notifications. You can change the main supplier contact at a later time if needed, and you can specify an additional contact if necessary. If the supplier has multiple sites registered, you can optionally identify a single supplier site to participate in the negotiation. If you specify a supplier site as well as a supplier on the invitation, only contacts registered with that supplier site can view and participate in the negotiation. Some suppliers can be registered in the application but have not yet applied for approval to conduct spend transactions with your buying organization. Such suppliers are called prospective suppliers. You can add these suppliers to your invitation list. They will receive invitations and can view and respond to the negotiation. They cannot be included on purchase documents until they are approved for spend transactions, however allowing prospective suppliers to participate in the negotiation allows their spend authorization requests to be evaluated at the same time that the negotiation is proceeding.

How You Add an Additional Supplier

Consider you have a public sector RFQ that is soliciting quotes for the construction of a new public library. When you publish the negotiation, invitations are sent to all construction companies with which you have worked in the past, After reading information on the RFQ, a plumbing company contacts you and asks to participate in the bidding, so you add the company to the negotiation.

How You Change a Supplier Contact

You are renegotiating a contract with a company you have dealt with in the past. You update the new negotiation and publish it, but the company contacts you and informs you that the previous negotiation contact has left the company. Using information from the supplier, you update the negotiation to reflect a new contact at the supplier. Note that the original contact is removed from the invitation list and no longer receives any notifications about this negotiation. The new contact receives notifications going forward.

How You Limit Participation to a Specific Supplier Site

There may be situations where because of certain tax regulations or supplier organization, a negotiation is only appropriate for a supplier site located in a particular country, or a site that performs a particular type of processing. In these cases, you may want to select a supplier site. Then for that supplier, only contacts registered for that site can participate in the negotiation.

Collaboration team members have the ability to view and manage a negotiation throughout its life cycle. They can participate in the creation of the draft, the evaluation of the supplier responses, and the awarding of the negotiation. They can also be assigned tasks for completion along the way. You can add new collaboration team members or change the capabilities of existing members as needed during the negotiation.

Updating a Collaboration Team

Consider a collaboration team associated with a long-running RFQ. Since this RFQ is associated with a project plan in Oracle Fusion Project Management, it may be active for a considerable length of time, there are numerous changes that could be appropriate as the negotiation moves from one status to another and as the different tasks are completed in the project plan. Such changes could include:

  • One of the team members leaves the company or is transferred to another department. That member should be removed from the team.

  • Alternatively, two new employees are hired. For training purposes, you could add them with View Only access and allow them to watch as the negotiation progresses.

  • As one member's tasks are completed, she could be assigned new tasks that are appropriate for the new stage of the negotiation.

  • In the construction project plan, some of the resources assigned to the tasks associated to this negotiation will be collaborating on the negotiation as well. You can directly search the resources in the associated project plans and add them as collaboration team members to this negotiation.

You can update and manage a negotiation's requirements even after it has been published. This includes updating existing requirements and adding new internal requirements.

Updating an External Requirement

Suppliers can respond to external requirements, so change the weight. Additionally, if the responses have not been as low as anticipated, you may want to change the knockout score to make more responses eligible for further processing.

Updating Internal Requirements

You can add internal requirements while the negotiation is still active. For example, based on the suppliers who have responded, you may decide to additionally solicit information on supplier history from internal participants and use this extra information when evaluating the supplier responses. Also, if the negotiation is a long-running RFQ with many requirements, the importance of some of the requirements my change in relation to other requirements. You could update the weighting factors for these requirements to reflect their changed importance.

A surrogate response is a negotiation response that you enter on behalf of a supplier company. This feature gives the buying organization the ability to capture responses from suppliers who are not able to directly enter their responses online.

Supplier companies may submit their responses using different communication methods such as faxing or mailing paper documents, emailing PDF documents or spreadsheets. Once you receive the supplier response, you can enter this response in the application as a surrogate response. Surrogate responses are handled by the application the same as responses entered by suppliers with online access. You use surrogate responses to act on behalf of the supplier to:

  • Create and manage draft responses.

  • Acknowledge the supplier's intent to participate in the negotiation.

  • Enter the values that comprise the supplier's response, including values for requirements, negotiation lines, line attributes, cost factors or price breaks.

  • Acknowledge an amendment to the negotiation.

  • Update a response for a new round of responding or as required by a negotiation amendment.

You can enter surrogate responses online or using a spreadsheet. All response rules applicable to a regular response entered by the supplier will also be applicable to a surrogate response. All features and bidding tools (like proxy bidding, mass price reduction) that are available to suppliers entering an online response can also be used when creating a surrogate response. Since the supplier has no online access to the application and therefore cannot receive notifications, you must stay in communication with the supplier about any changes to the negotiation.

Surrogate responses are created by the category manager on behalf of a supplier who does not have internet access to the negotiation. The supplier contact conveys the response information to the category manager by fax, e-mail, telephone, or some other communication method. Once the response is entered, the category manager monitors and updates the response as necessary. For example, if the negotiation goes into a new round, the category manager alerts the supplier contact, requests any new response update information, and updates the response accordingly.

Acknowledging a Supplier's Participation

Clare Furey, the category manager for Novella Inc. has been contacted by Jan Dekker, a supplier contact at Acme Office Supplies. Jan has received information about an RFQ that Clare's company is conducting for furniture for a new branch office. Jan's company would like to participate in the RFQ. Jan does not have the complete response information yet, but she contacts Clare and asks her to indicate that Acme Office Supplies will participate in the upcoming negotiation.

  1. Clare accesses the negotiation.

  2. On the Negotiation summary page, Clare clicks Suppliers under Table of Contents to view the table of suppliers invited to the RFQ.

  3. She highlights the row for Acme Office Supplier.

  4. She clicks Acknowledge Supplier Participation.

Creating a Surrogate Response
  1. Clare Furey, the category manager for Novella Inc. has received a quote by phone from Jan Dekker, a supplier contact at Acme Office Supplies. Jan has received information about an RFQ that Clare's company is conducting for furniture for a new branch office. Jan's company would like to participate in the RFQ, so she contacts Clare by phone with her company's quotes on the RFQ lines.

  2. Clare needs to enter the response information on behalf of Jan, so she accesses the Negotiation summary page.

  3. From the Actions menu, she selects Manage and then Create Surrogate Response. (Alternatively, she could use the Create Surrogate Response icon for that supplier in the Suppliers table.)

  4. On the Create Surrogate Response popup, Clare searches for Acme Office Supplies as the supplier and Jan Dekker as the supplier contact. Once the search dialog box is complete with the supplier and contact names, Clare clicks Create.

  5. On the Create Response Overview page, Clare checks that her name appears in the Response Entered By field and that Jan Dekker appears in the Supplier Contact field. She enters today's date as the Response Received On date value and notes that she received the response by e-mail.

  6. There are no requirements for this negotiation, so Clare accesses the Lines page. On the Create Response: Lines page, she enters the response values that Jan communicated to her.

  7. Once she has entered all the response information, Clare clicks Review to check the response information is correct.

  8. When she is sure she has entered all the response information correctly, she submits the response.

Acknowledging Amendments on Behalf of a Supplier

The category manager has decided to place an additional line on the furniture RFQ. Clare notifies Jan of the amendment, and Jan passes her company's response information for the new line. Now Clare must submit an amended quote that includes the new line.

  1. She accesses the RFQ.

  2. From the Actions menu, she selects the Manage option and then the Acknowledge Amendments for Supplier

  3. She selects the Acme Office Supplies as the supplier and Jan Dekker as the supplier contact for whom she originally created the surrogate response.

  4. On the Acknowledge Amendments page, Clare selects the check box for The supplier contact has reviewed the changes and acknowledged amendment.

  5. She selects the acknowledge date.

  6. She then submits the acknowledgment.

  7. The application responds with a message asking if Clare wants to create a new response for the amended negotiation. She replies Yes.

  8. When the application navigates her to the Create Response page, Clare enters the response values Jan gave her, completes the response, and submits it.

How can I resolve the invalid date range error when you create a surrogate response?

This error can occur when creating surrogate responses, for Response Received On, you didn't enter a date in between the negotiation open date and the current system date. Also, when the time format preference is set to hours and minutes and you created a surrogate response within a minute after publishing the negotiation. For example, for a negotiation that you published on say 10/15/2019 11:32 AM, you created a surrogate response in the same minute (32).

To resolve this error:

From the Tools work area, click Set Preferences. In the Preferences page, select Regional and set the time format to include seconds for example, HH.mm.ss and click Save and Close.

You conduct online discussions within the context of a negotiation. An online discussion can include one or more conversation threads, which any of the participants can initiate. You can start communications with other internal users as soon as a draft negotiation is created and then throughout the award cycle. After a negotiation is published, you and other internal users can exchange messages with supplier users who are participating in the negotiation.

You create messages on the Online Messages page. Once you access the negotiation, you can navigate to the Online Messages page from any page by selecting the Messages button.

Creating a Message or Reply

The Online Messages page shows you your message information for this negotiation. The region displays a breakdown of the conversations that exist for this negotiation. Each conversation appears as a folder. You can expand the folder to show all its messages and replies. If you select a message, its text appears in the details region in the lower half of the page.

To create a new message:

  1. Select the Create option from the Actions menu or click the create icon.

  2. On the Create Message dialog box, specify the scope of the message using the two list of values menus.

    To include the supplier in the message, select Supplier from the first menu, otherwise select Internal.

    To send the message to a single participant, select that participant from the second menu. Note that if you select a single participant, you set the conversation status to private. If you select All Participants, you set the conversation status to public.

  3. Enter the name of the subject of the message. This becomes the name of this conversation thread and appears as a new folder in the message hierarchy.

  4. Enter your message in the text box. You can use rich text formatting and you can include attachments.

  5. When you are finished, click the Send Instant Message button.

To create a reply:

  1. Highlight the message you want to reply to.

  2. Select Reply from the Actions menu. Since you are replying to an existing message, when the Reply to Message dialog box appears, note that the subject for the reply has already been entered.

  3. Enter your message in the text box and send the message when you are finished.

Throughout a negotiation, there may be times when you need to communicate with the buying organization to provide additional information or request clarification. You can use online messaging for these communications.

You can participate in multiple online conversations within the context of a negotiation. All messages you initiate are addressed to the buying organization and can be viewed by all members of the buying organization who are also participating in the negotiation. You can reply to messages you are sent by an individual participant of the buying organization.

You can create and view your messages using the Online Messages page. If you have outstanding messages, a Messages button is available followed by the number of unread messages you have. If you have no messages, a Create Messages button is available. Either way, if you click the button you access the Online Messages page.

The Online Messages page shows you your message information for this negotiation, and displays a breakdown of the conversations that exist for this negotiation. Each conversation appears as a folder. You can expand the folder to see all its messages/replies. If you select a message, its text appears in the details region in the lower half of the page.

Creating a Message

To create a new message:

  1. Select the Create option from the Actions menu or click the create icon.

  2. On the Create Message dialog box, specify the scope of the message using the two list of values menus

  3. Enter the name of the subject of the message. This will become the name of this conversation thread and will appear as a new folder in the message hierarchy.

  4. Enter your message in the text box. You can use rich text formatting and you can include attachments.

  5. When you are finished, click the Send Instant Message button.

Replying to a Message

To reply to a message:

  1. Highlight the message you want to reply to.

  2. Select Reply from the Actions menu. Since you are replying to an existing message, when the Reply to Message dialog box appears, note that the subject for the reply has already been entered.

  3. Enter your message in the text box and send the message when you are finished.

Throughout a negotiation, there may be times when you must communicate with other internal users (such as members of your negotiation collaboration team) or suppliers to provide additional information or clarification. Also, collaboration team members may want to communicate with each other. You can use online messages to communicate online with other participants in your negotiation.

Participants using online messages can be:

  • The category manager who created the negotiation.

  • All members of the collaboration team.

  • Procurement agents with access to the negotiation.

  • Suppliers participating in the negotiation.

You use online messages within the context of a negotiation. An online conversation is organized into one or more message threads, which any of the participants can initiate. You can start communications with other internal users as soon as a draft negotiation is created. After a negotiation is published, you and other internal users can exchange messages with supplier users who are participating in the negotiation.

  • Internal users can send a message to all other internal and external users or a select group of internal and external users.

  • If an internal member is added, the new member can see all messages from the beginning of the negotiation.

  • A message sent to a collaboration team is visible by all the team members.

  • If there is an amendment to the negotiation, all messages, including messages to the previous version, are visible on the same page.

  • Supplier can reply to an internal individual, but they can only send a message to the buying organization as a whole. All the internal participants can see the message, but only internal members with full access can reply.

The following table shows the different view and reply options for participants in sealed negotiations.

Participant Can Send To Accessible By

Category Manager

Collaboration Team Members (Full Access)

All/Any collaboration team member

All/Any internal member

All/Any suppliers

The user on the To list

All internal users

Suppliers

Collaboration Team Members (Without Full Access)

Procurement Agent with View Only Access to Other Agents' Documents

All/Any collaboration team member

All/Any internal member

The user on the To list

Procurement agent with Full Access to other agents' documents

All/Any collaboration team member

All/Any internal member

All/Any supplier

The user on the To list

Suppliers

All internal users

Suppliers

Buyer company

All internal users

The following table shows the different view and reply options for participants in sealed negotiations.

Participant Can Send To Accessible By

Category manager

Collaboration team members (Full Access)

All/Any collaboration team

All/Any internal member

Any supplier

The user on the To list

Suppliers

All internal users

Collaboration team members (without full access)

Procurement agent with View Only access to other agents' documents

All/Any collaboration team All/Any internal member

The user on the To list

Procurement agent with Full Access too other agents' documents

All/Any collaboration team member

All/Any internal member

All/Any supplier

The user on the To list

Suppliers

All internal users

Suppliers

Buyer company

All internal users

The following table shows the different view and reply options for participants in blind negotiations.

Participant Can Sent To Accessible By

Category manager

Collaboration team members (Full Access)

All/Any collaboration team member

All/Any internal member

All/Any suppliers

The user on the To list

suppliers

All internal users

Collaboration team members (without full access)

Procurement agent with View Only access to other agents' documents

All/Any Collaboration Team member

All/Any internal member

The user on the To list

Procurement agent with Full Access too other agents' documents

All/Any collaboration team member

All/Any internal member

All/Any supplier

The user on the To list

Suppliers

All internal users

Suppliers

Buyer company

Internal users

Message Security

Messages sent to all participants are public and can be viewed by all users - collaboration members, procurement agents, and all suppliers. Messages sent to individual users are private and can only be viewed and replied to by those users. You can change a message thread from public to private by replying to a subset of its participants. Similarly, you can change a private thread to a public thread by replying to all participants to the negotiation.

Message Alerts and Notifications

If you have any unread messages, you receive an alert in your Online Messages field. Clicking the button in this field opens your Online Messages table. From there you can view your messages and reply. You can also subscribe to alert notifications so you are notified whenever a new message or reply exists.

Printing Messages

All messages can be printed. You can print an individual message or all messages for a particular negotiation. The messages appear in the same order as online. You can also archive messages.

View Negotiation Work Area

The Ongoing Negotiations section of the Negotiation work area Overview page provides a quick and efficient way, to access and to work on all ongoing negotiations for which the user is either the owner or a collaboration team member.

Using the Ongoing Negotiations section, users can:

  • Analyze the negotiation

  • Award the negotiation

  • Generate and view a .pdf version of the buyer facing information

  • Monitor the negotiation

Negotiations in the following statuses are considered as ongoing.

  • Preview

  • Active

  • Paused

  • Closed

  • Award in progress

  • Award completed

  • Allocation in progress

  • Allocation failed

  • Completed, purchasing document creation process initiated

  • Completed, purchasing document creation process failed

  • Completed, purchasing document creation process reinitiated

Sealed Negotiations

For negotiations with a sealed response style, additional statuses are included in the above list relating to locked or sealed context.

The Recent Activity section of the Negotiation Work Area Overview page gives you the status of your current negotiations and also lists any recent activity the negotiations have undergone. It reminds you of any pending tasks and recommends any appropriate action based on the type of activity. If there is a task recommended, clicking the link takes you to the page where you can perform the task. If you do not have authorization to perform the task, the link is disabled. Pending tasks are removed once the task is completed.

Controlling Activity Display

Only negotiation activities for which you are either the owner or a collaboration team member are displayed. For activities which have not yet been performed, no activity date or performer is displayed. You can control the display of the Recent Activity information by entering a date in the Activity Since field. When you generate the display, only activity since the date you entered is displayed (pending tasks are always displayed).

Evaluate Negotiation

Score Supplier Responses

You can score a supplier's response to a negotiation requirement if the requirement was created with a scoring method of manual. Requirements can also be scored automatically by the application (or not require any scoring). If the requirement is scored, supplier responses are assigned numeric values (either manually or automatically). The score values interact with the weights assigned to the requirement. You can use the weighted scores to compare responses when making award decisions. You must first close the negotiation before you can score requirements.

When the category manager creates a requirement, she defines any requirements needed to solicit additional information from a supplier. Requirements take the form of questions which the supplier contact answers during the course of creating a response to the negotiation. Once the negotiation is closed by the category manager, a response evaluator can view and rate the supplier responses by assigning a numeric score to each supplier response to the requirement. The category manager can then use the requirement ratings along with response price to determine the best supplier(s) from whom to source the item or service.

If the negotiation supports team scoring, the negotiation author can assign one or more members from the collaboration team to a scoring team. The author then assigns the scoring team to one or more requirement sections.

After the negotiation is closed and scoring is opened, the scoring team members can view and score supplier responses to the requirements in the sections that are assigned to their scoring team. Once the scoring team members have entered their scores, and the scoring phase is closed, the application calculates the final score for the requirement.

When calculating scores for supplier responses, there are three possible methods:

  • Automatic scoring - The scores for responses are calculated by the application. When defining the negotiation, you must specify the possible response values and assign a score value to each possible value.

  • Manual scoring - When defining the negotiation, you don't define any score values. With this method, you (and any scoring team members) view the supplier response and enter scores yourself. The application uses the scores you enter to calculate the weighted score for the response.

  • None - if the scoring method is None, no scores are calculated by the application or assigned by anyone.

When the buyer defines the negotiation, if the requirement is available for scoring, she can use the default maximum score value for the requirement, or she can define a new one. Requirements with a scoring method of None aren't scored and therefore have no maximum score value.

After the negotiation is closed, the evaluators (either a single evaluator or members of a scoring team) view each supplier response and assign a score to the response to the requirement. The score value (either entered manually or generated automatically) is divided by the Maximum Score and the result multiplied by the weight of the Requirement. The weighted scores are rolled up to the response level, which means a weighted score is calculated for each requirement, each requirement section, and the supplier response as a whole.

If the scoring method for the requirement is Automatic, the negotiation author defines a score for each possible response value for the requirement. The application uses the scores that the negotiation author defined to the negotiation with the weights to derive the weighted score.

You can give your scores offline by downloading the scoring spreadsheet in the Score Responses page. As prerequisite, you require ADF DI, which is available for Windows only. You can also give scores on behalf of the scoring team member offline by clicking the Score Responses button in the Manage Scoring page. In the Score Responses page of the selected user, you can download the scoring spreadsheet for that selected user.

Scoring can happen on behalf of another team member from the application as well (in addition to using the spreadsheet.)

For example, assume a requirement with a scoring method of automatic. The requirement accepts a single response choice. The requirement has maximum score of 20, a weight of 10, and three possible acceptable responses:

  • 20

  • 15

  • 10

If the supplier picks 15, the calculation to determine the weighted score is: (15 / 20) * 10 = 7.5

If the requirement allows the supplier to select multiple response choices, the method to calculate the score is different.

  • The response score is the sum of the scores for the values the supplier chose.

  • The maximum score is the sum of the scores for all possible choices.

For a requirement that allows multiple choices, with a maximum score of 30, a weight of 10, and three possible acceptable responses of

  • USD (defined score of 5)

  • EUR (defined score of 15)

  • CAD (defined score of 10)

If the supplier selects EUR and CAD, the weighted score is calculated as 8.33 (rounded)

((15 + 10) / (5 + 15 + 10) ) * 10 = 8.33

If the scoring method for the requirement is Manual, the negotiation author defines no score values. When you (or any other scoring team member) views the supplier response, you enter the score directly into the application. The application then uses the scores you enter along with the requirement weights to derive the weighted score.

If the negotiation allows team scoring, the negotiation author creates a scoring team and assigns members to the team. The author also assigns the scoring team to score one or more requirement sections. After the negotiation is closed, and the category manager opens the scoring phase, each team member views the supplier response and enters a score. Once the scoring is complete, the category manager closes the scoring phase, and the application calculates the overall composite average score for the response.

With team scoring, since multiple scores are entered for the same supplier response to the requirement, the application calculates the score by adding together the scores entered by scoring team members and then derives the average score by dividing the total by the number of team members who entered scores (it's possible that a team member didn't enter a score. The application doesn't require a score from each of the team members before it can calculate the final weighted score). When the scoring is closed, the application uses the scores submitted by the scorers to make calculations.

For example, assume this requirement:

  • Requirement text: How many employees do you have?

  • Requirement Weight: 30 The maximum requirement score is 10

  • The maximum requirement score is 10.

The available answers to the requirement are:

  • 0 - 500

  • 501 - 1000

  • 1000+

The scoring team members assigned to score responses to this requirement:

  • Vijay Patel

  • Susan Lin

  • Steve Wolf

  • Clare Furey

After all the suppliers have responded and the negotiation is closed, the category manager opens the scoring and team members view and score the supplier response. Once the score team members have entered their scores, the category manager closes the scoring. At this point the score information for this requirement is:

This table shows the employees and the score values for the example.

Name Score

Vijay Patel

8

Susan Lin

6

Steve Wolf

NA (Steve Wolf didn't submit any score)

Clare Furey

5

Based on these scores, the application calculates the final score as 18.99:

(((8 + 6 + 5) / 3) /10) * 30 = 18.99

You can create scoring teams containing members who evaluate supplier responses requirements. You first add the members to a collaboration team. Then you create one or more scoring teams and assign collaboration team members to the appropriate scoring team. Finally, you assign each scoring team one or more requirement sections. Later, when evaluating supplier responses to the negotiation, scoring team members score supplier responses to the requirements in the sections assigned to that scoring team. Using scoring teams lets you to include subject matter experts who can use their expertise and knowledge to score responses to a negotiation.

Enabling Team Scoring

To use scoring, you must create a negotiation style that supports team scoring. You create and update negotiation style sheets in Setup and Maintenance. Then once you have team scoring enabled, you select the Enable team scoring check box on the Overview tab when you create a negotiation.

Creating a Scoring Team

You create a scoring team when you create your negotiation document. Once you have the teams created, you assign a team to one or more requirement sections. Then when the negotiation is closed and the scoring phase is opened, the team members view and score supplier responses to requirements in that section. To create a scoring team, you first add the team members to the collaboration team for the negotiation. Then you later create the scoring team and assign members from the collaboration team as members.

You can introduce collaboration team members with access only to scoring, where the scoring-only assigned team member will only enter scores for the requirements assigned to that person. Also, scoring-only assigned team members can only view supplier responses to requirements that are assigned to them and cannot view responses to requirements that are not assigned to them. They cannot perform any other action on the negotiation except entering scores.

For example, a legal expert can evaluate supplier responses to legal requirements and for an RFQ using two stage evaluation process, you can create separate scoring teams to evaluate technical and commercial requirements. Restrict technical scoring team members from viewing commercial requirement responses, thus making the entire scoring process unbiased.

To create a collaboration team that can be later used for a scoring team:

  1. On the Overview page, on the General tab, select Enable team scoring in Requirements.

  2. Click the Collaboration Team tab. Note that you and your manager are both automatically added to the collaboration team.

  3. To add additional collaboration members, click the Add icon (the plus sign). Note that you can only add members with Full access or scoring-only access to a scoring team. You cannot add a collaboration team member who has View Only access.

  4. On the resulting row, you can enter the member's name directly, or you can search for and select the member.

  5. When you have finished adding all the members for all your collaboration team, click Save.

To create a scoring team::

  1. On the Edit Requirement page, create a requirement section.

  2. Create the requirements for the section. Note that although you can create requirements having different scoring methods, only requirements with a scoring method of Manual are available to scoring team members for scoring.

  3. Click Manage Scoring.

  4. On the Manage Scoring page, click the Create icon.

  5. On the Create Scoring Team dialog box, specify:

    • The team name

    • Optionally any instructions for the team members

    • Optionally a deadline by which the scoring should be completed.

  6. To assign members to your team, in the Team Members section, in the Members column, highlight the names of the team members and click the ' arrow. The members move from the Available column to the Selected column (You can also use the double arrow heads to quickly move all the available members to the Selected column.)

  7. To assign the team to a requirement section, from the Available column in Sections, highlight the sections you want to assign to this team and click the arrow head. (You can use the double arrow heads to move all the available sections to the Selected column.)

Note that members can be participants on one or more teams. Also a single scoring team can be responsible for one of more requirement sections, but a requirement section can only be scored by members of a single team.

Scoring Requirements

Once the category manager closes the negotiation, no more supplier responses are accepted. After the category manager opens the negotiation for scoring, scoring team members can access the negotiation and start viewing and scoring supplier responses to requirements in the requirement sections that their teams are responsible for. Once the scoring phase is over, the category manage closes scoring. At that point, no more scores can be entered unless the category manager reopens the scoring.

Using scoring requirements in the negotiation.

June Tsai is awarding business in a negotiation. One goal of the negotiation is to identify possible new suppliers for several items. There are several requirements in the negotiation to solicit information about new companies who responded. The negotiation has ended, and June has closed it for responding. She continues evaluating the responses to make her award decisions. The first two requirements deal with company information.

The following table shows the sample requirements used in the worked example.

Requirement Type Maximum Score Weight

Mission Statement

Text

10

40

Years in business

Number

20

60

Scoring Requirements
  1. June first closes the negotiation by selecting Manage Negotiations from the task panel. .

  2. On the Manage Negotiations page, she finds her negotiation and clicks the negotiation number link.

  3. On the Negotiation page, from the Action menu, she selects the Close suboption of the Manage option.

  4. To begin the scoring phase, from the Actions menu, she selects the Open Scoring suboption from the Manage Negotiation option and clicks Submit.

  5. From the Actions menu, she selects the Score Response suboption of the Award option.

  6. On the Score Responses page, she clicks the edit icon for the supplier response she wants to score. On the Enter Scores page, she enters her scores using the following values.

    Requirement Type Maximum Score Weight Score Entered Weighted Score

    Mission statement

    Text

    10

    40

    9

    36

    Years in business

    Number

    20

    60

    16

    48

    She can enter scores on behalf of a scoring team member. Scorers can download the scoring spreadsheet and score offline for themselves or others in the scoring team and do the same for themselves and others through application as well.

  7. When she has finished entering the scores for the two requirements, she clicks Submit.

After your negotiation has received its responses from your suppliers, and you have opened up the scoring, you can easily monitor the progress of your scoring team members.

To view the scoring for your negotiation:

  1. From the Negotiations work area, select Manage from the task panel.

  2. On the Manage Negotiations page, find and click the link for your negotiation.

  3. On the Negotiation page, from the Actions menu, select the Manage Scoring suboption from the Manage option.

  4. The Manage Scoring page shows you:

    • The number and names of the scoring teams as well as their team members.

    • The earliest scoring deadline for the team if any were defined..

    • The requirement section assigned to the team.

    • A graph showing the percentage of total scoring that has been completed.

  5. You can drill down into the scoring information by clicking the arrow icon next to the graph. You can see the information for individual team members including the percentage complete value for each member.

  6. From the Show menu, you can choose to view:

    • All scoring team members

    • Only members for a particular team.

    • Only members whose scoring assignment is past due.

  7. From the Actions menu, you can

    • Refresh the display

    • Close Scoring.

Once you have closed scoring, no more scoring team members can enter scores. However, you can reopen scoring to allow any additional team members to enter scores. You can open and close scoring as long as you have not selected the Complete Award option.

Tim Chao works for his state's transportation department. The state has decided to open a new branch office. Tim is in charge of determining the best supplier for contract IT services for the new office. He created a two-stage RFQ for a contract database administrator as well as several other management and administrative positions. Now that the time period for responding has ended, Tim and his team of evaluators begin the process of awarding the contract by scoring the supplier responses to the RFQ requirements

As the catalog manager and the negotiation creator, Tim controls the scoring process among the evaluators.

Scoring Requirements for a Two-Stage RFQ
  1. Tim closes the RFQ.

  2. He unlocks the technical requirement section. This makes the supplier responses to the technical requirements visible to the collaboration team members. Tim notifies the technical evaluators that they now have access to the supplier responses, and he asks them to complete their evaluation in a week. At the same time, Tim conducts his own evaluation of the technical requirements.

    He can enter scores on behalf of a scoring team member. Scorers can download the scoring spreadsheet and score offline for themselves or others in the scoring team and do the same for themselves and others through application as well.

  3. Once all technical evaluators have completed their scoring, Tim applies the knockout scores for the technical requirements. The suppliers who remain after the knockout scores are applied proceed to the next evaluation stage.

  4. Tim unseals the technical requirements responses. This allows suppliers to view their own and other suppliers' responses to the technical requirements

  5. Tim marks the technical evaluation stage as complete.

  6. He unlocks the commercial requirement section. As before, he notifies the commercial evaluators that the responses are available for scoring and assigns them a deadline. Since Tim isn't a commercial evaluator, he doesn't conduct an evaluation of the supplier responses or score them.

    He can enter scores on behalf of a scoring team member. Scorers can download the scoring spreadsheet and score offline for themselves or others in the scoring team and do the same for themselves and others through application as well.

  7. Once all the commercial evaluators have completed their scoring, Tim unseals the commercial responses so suppliers can view them. He marks the commercial stage complete.

  8. Since all the requirement scoring is complete, Tim applies the knock out criteria to eliminate any responses that haven't met the minimum score for the commercial requirements for the RFQ.

Analyze Negotiation Response

Examples of Analyzing Supplier Responses

There are several ways you can analyze supplier responses to your negotiation. You can view and analyze responses both while the negotiation is open and receiving responses, and after the negotiation ends. You can also view the Automatic Award Recommendation generated by the application.

The Monitor Negotiation page provides you with a centralized location to obtain information about all the responding suppliers and their responses while the negotiation is still open. You can obtain information at the response level, or drill down to the line level. Using the displays available, you can easily view competing responses and spot any trends over time. Also, the Response History page lets you view the responses in the order they were received. If appropriate, you can disqualify any responses from the Response History page. Once you have closed the negotiation, there are many tools and displays available to you to support the analysis of responses.

  • Scores

    If requirements were defined for the negotiation, automatically scored requirements have already been assigned scores by the application. If there are manually scored requirements, you or an authorized member of the collaboration team can enter scores.

    If the negotiation is a two stage RFQ, you must evaluate the technical requirement responses first. Then for the suppliers who pass the technical evaluation, you can evaluate the commercial responses.

  • Using knockout criteria and shortlisting

    Once you have scored your requirements, you can apply a knockout criteria (if one was defined for the negotiation) to eliminate any responses which do not meet the minimum score value.

    By default, all responding suppliers are placed on the short list. However, you can remove any suppliers from further award consideration by changing their shortlist status.

    If you have a large number of supplier responses, using knockout criteria and shortlisting is a good way to reduce the number of responses for analysis.

  • Analytic charts and graphs

    There are several graphs available to you when making your award decisions. Some are at the response level, some at the line level. These displays are updated in real time, allowing you to enter provisional award decisions and then change the values and view the new graph results until you obtain the exact decision you need. For charts that deal with requirement scores, you should enter values for any manually scored requirements before generating the charts. For charts that display savings amounts, you should enter provisional award values first.

  • Spreadsheet analysis

    You can download the responses into a spreadsheet and view and analyze the responses offline. You can enter your award decisions into the spreadsheet and upload it back to the applications. Offline analysis is useful when there are many negotiation lines to be considered or there are many supplier responses.

Scenario

Office Supplies, Inc. is conducting an RFQ on several new items they want to add to their inventory. Mary Wang, the buyer responsible for awarding the negotiation has been checking the responses coming in and is now ready to enter her award decisions

Mary closes the negotiation. For one of the negotiation lines, she sees there are many responses, some including alternate lines, so she and other collaboration team members view and score any manually scored requirements.

She applies the knockout criteria. This removes most of the supplier responses for this line. She views the list of remaining suppliers and decides that no more suppliers need to be removed, so she does not change any of the remaining suppliers' shortlist status.

For the remaining suppliers, she generates the supplier level displays by selecting the suppliers and clicking Award. She sees that there is a group of responses that offer substantial savings, but that they are very close in price. She decides to split the award among the suppliers, so she generates the line level displays to decide the best amount to award to each supplier.

Scenario

Brown county operations publishes a two-stage RFQ to contract for IT services for a new mass transit department. The category manager, James Sanchez, creates the two-stage RFQ document. He uses the specifications imparted by the new department head to document the technical specifications in two requirement sections that are identified as technical. He also identifies the financial information required for the legally mandated quote process in a requirement section labeled Commercial. After completing the RFQ document, he publishes the negotiation.

Once the specified time period to receive supplier quotes ends, Mr. Sanchez closes the negotiation. He then unlocks and unseals the technical requirements. The designated evaluators for the technical requirements view and score the responses to the technical requirement sections. Mr. Sanchez shortlists the supplier quotes with the best responses to the technical requirements.

Mr. Sanchez then unlocks the commercial requirements. The designated financial evaluators view and score the responses to the financial requirement sections for the shortlisted quotes.

After the technical, commercial, any additional requirements, quote prices and all other negotiation response information have been evaluated. Mr. Sanchez makes the award decisions.

Response Repository

The Response Repository stores previous answers to questions that have been used in Supplier Qualification Management initiatives, and as requirements in Sourcing negotiations.

The Response Repository

The Response Repository stores responses from both supplier and internal responders. For suppliers, the repository contains:

  • Supplier responses to initiative questions that have been accepted by the supplier qualification manager.

  • Supplier responses to sourcing negotiation requirements created using questions from the question library

  • Supplier responses that have been approved during the supplier registration process.

A Sourcing category manager can use a question from the question library as a requirement in a negotiation. Then when the responding supplier views the requirements, values from any previous responses are displayed. The supplier can then either accept the values as still valid or can update them. Any updated response values are added to the response repository.

A Sourcing category manager awarding a negotiation can also see the history of responses to questions used as requirements. This information can help in making award decisions.

How Response Rank Using Weights and Scores Is Calculated

Once you have identified the important attributes of your negotiation and assigned them weights and scores, the application uses them to determine the total score for the responses to your negotiation. Since all weighted attributes are required attributes, each respondent must specify a value for that attribute.

How a Response Rank Is Calculated

The application calculates the value of a response as follows:

  1. For each response to a weighted attribute, the application determines the score based on the attribute value scores you defined. For date and number attributes, the application determines which accepted range the value falls in. If the response does not fall in an acceptable range, the response receives a score of 0 for the attribute.

  2. The score determined is then multiplied by the weight assigned to the attribute.

  3. The adjusted scores are added to determine the total score for the response. The total score is then divided by 100 to convert it to a percentage. The price is then divided by the total score to determine the price to total score ratio. The response with the lowest ratio is considered the more desirable response.

Example 1

Assume a buyer has defined a negotiation and selected the following attributes to be weighted:

The following table shows the sample attributes and their values that are used in the example.

Attribute Weight

Quantity

50

Need-by Date

30

Color (User-defined attribute)

20

For each of these attributes, the buyer has also defined and scored all acceptable values:

The following table shows the sample attributes and their acceptable values and scores.

Attribute Acceptable Values Score

Quantity

<1000

60

Quantity

>1001

100

Color

User-defined color 1 (for example, red)

100

Color

User-defined color 2 (for example, blue)

75

Given these definitions, the price to total score ratios for the following two possible responses are calculated as shown, and Response 2 would be designated as the best response even though the bid price for Response 2 is higher.

Response 1:

The following table shows the sample attributes and the response given to each attribute.

Attribute Response Value

Quantity

980

Color

User-defined color 2

Price

$250

Total score: (60 * 50) + (75 * 20) / 100 = 45

Price to Total Score Ratio: 250 / 45 = 5.56

Response 2:

The following table shows the sample attributes and the responses given for each attribute.

Attribute Response Value

Quantity

1200

Color

User-defined color 1

Price

$300

Total Score: (100 * 50) + (100 * 20) / 100 = 70

Price to Total Score Ratio: 300 / 70 = 4.29

Shortlist Suppliers

After you have closed the negotiation and scored any manually scored requirements, you can evaluate the supplier responses based on their scores. If you defined a knock out values for the requirements, you can use this value to eliminate any unacceptable responses and place the acceptable responses on a shortlist. Only responses on the shortlist are available for later awarding. Using the knock out value to eliminate unacceptable responses is a quick way to evaluate a large number of supplier responses.

To shortlist responses:

  1. Access the negotiation.

  2. Select the Apply Knock Out Criteria option from the Award options of the Actions menu.

  3. The Apply Knock Out Criteria dialog box display. Note that all responses are initially included on the shortlist. The upper table of the display shows which responses are removed from the short list if you apply the knock out criteria. The lower table shows which responses remain on the shortlist.

  4. To apply the knock out criteria, click OK. Any responses which do not meet the knock out criteria are removed from the shortlist.

You can change a response's shortlist status. You might do this if no responses meet all the knock out criteria, but you still want to award the business to some of the responses. To change the shortlist status:

  1. Access the negotiation.

  2. Select Award Negotiation from the Award option of the Activities menu.

  3. On the Award Negotiation page, select the Suppliers tab.

  4. Highlight the supplier whose status you want to change. Highlighting a supplier enables the Change Shortlist Status button.

  5. Click Change Shortlist Status.

Amend Negotiation

Create Negotiation Amendment

Negotiation Amendments

After publishing a negotiation, you may need to update information defined in the document. This update is called an amendment. Once you create and publish an amendment, respondents are notified that the sourcing document has been amended. They are required to review and acknowledge the amended information and resubmit their response in accordance with the amendment. Amendments can be created anytime after the negotiation has been published and before you close it.

The amended negotiations are indicated by suffixing a comma followed by a number to the end of the original negotiation number. The following table shows an example of an original negotiation, the original negotiation number, and the amended negotiation number.

The following table shows how a negotiation number changes due to an amendment.

Original Negotiation Original Negotiation Number Amended Negotiation Number

New Denver Office Furniture

4562231

4562231,1

The application ensures that the amended information has been acknowledged by the supplier before a new response is accepted.

Amend the Document

Once you choose to amend a document, you are returned to the initial page of the create negotiation flow, and you proceed through the flow as if you were defining a new negotiation. Some details of the existing document cannot be changed, and those details are visible only. At review time, the application displays all the updates you have made to the document that are visible by suppliers.

Supplier Responses to an Amendment

Once you have published it, the suppliers who you invited and any other responding suppliers are notified about the amendment. The suppliers receive the new negotiation PDF as an attachment. If they attempt to submit a response, they receive a warning message that they must view the amendment and acknowledge it before they can continue. If they have already submitted a response, it's marked as 'resubmission required,' and they have to view the amendment and submit another response to be considered for award. The new draft response pages contains the updated amendment information.

Amend a Negotiation

You can make changes to a negotiation while it is active and receiving responses by creating an amendment. Once you have issued an amendment, notifications of the amendment are sent to all suppliers who were invited and all suppliers who have responded. The suppliers can then view the amendments. Once suppliers view and acknowledge the amendment, they can create a new response to the negotiation.

The original negotiation number is augmented with a suffix to indicate the amended version. For example, if the original negotiation number was 500, the first amended version is numbered 500,1.

If a supplier is restricted to a single response and had already responded prior to the amendment, a notification is sent to the supplier. The supplier may view the amendment, acknowledge the changes and submit a new response, in which case it becomes the supplier's new single best response.

You can view the changes by selecting View Amendments from the Manage option of the Actions menu.

In the following example, the category manager decides that, based on responses to an existing line, she will add a new line to the negotiation.

Amend a Negotiation
  1. From the Overview page, the category manager accesses the negotiation.

  2. From the Actions menu on the Manage Negotiations page, she selects the Create Amendment suboption from the Manage option.

  3. On the Edit Negotiation page, she enters a description for the amendment, and a new close date. She saves her changes.

  4. She clicks the Lines train stop and uses the Edit Negotiation: Lines page to add a new line.

  5. After she has finished entering the new line information, she clicks Publish. Any suppliers attempting to create a response will now be required to view and acknowledge the amendment before they can respond.

  6. Once the amendment is published, she can view all the amendments and their changes by selecting the Amendments suboption of the View option of the Actions menu on the negotiation summary page.

Approve Award

Approve Award Recommendation

Your application may use the approval management system to track and manage approvals of both your negotiation document and your award decisions. You can approve the negotiation document, the negotiation award, or both. When approvals are used, internal reviewers view and OK the details of the negotiation document and the final award decision.

How Approvals Work

If approvals are enabled, you can have both the negotiation document and the award decision subject to approval before they can be further processed. The Approvals Management Extension is an automated process in which approval checks are passed from a user, a group of users, or the application to another user or group of users for consideration or action. Similarly, after you make an award decision, you can submit it for approval.

When the negotiation document requires approval, you submit the document for approval once you have completed it. When the document has been approved, the application automatically publishes it. The new status for the document depends on the open and preview dates.

  • If the open date is Upon Approval, the status is Active.

  • If the preview, open, and close dates are in the future, the status is Submitted.

  • If the preview is past but open and close are in the future, the status is Active.

  • If the previous and open are in the past but the close is in the future, the status is Active.

For award approval, once the award has been approved, the status changes to Approved, and you can complete the award and generate the purchase documents.

Whether a document or award needs approval depends on the approval rules that are defined for the task (publish or award). For example, a negotiation could be subject to approval because it includes items from a particular category, or an award decision could need approval because the award amount is over a certain limit.

If you are an approver for a document or award, you receive a notification when a document or award becomes available for you to view and evaluate. The notification contains information on the negotiation, and it contains links for approving or rejecting the document or award. If there are additional approvers in the approval chain, you can add an attachment before approving the document or award and sending it on to the next approver.

While a negotiation document is being approved, the status of the negotiation is Approval in Progress. While the award is being approved, the status is Award Approval in Process. If there is an issue and an approver rejects the document or award, you receive a notification with information about the rejection. You can edit and update the document or award and resubmit it for approval. Once the document or award is approved, the status changes to Approved, and you receive a notification that the approval is successful. Then you can continue processing the negotiation:

  • When the document is approved, it is automatically published.

  • You can complete the award and generate the purchase documents after the award decision has been approved.

Note that approvals tasks are different from collaboration team task assignments (although collaboration team members can also be designated as approvers). Tasks that are assigned to collaboration team members are tracked manually and have no effect on the processing of the negotiation by the application.

During both the document approval process and the award approval process, you can monitor the progress of the approvals by viewing the Negotiation Approval Process and the Award Approval Process pages.

When negotiation approvals are enabled, the negotiation document requires approval before being automatically published by the application. If award approvals are enabled then negotiation award will need approvals before award can be completed. A negotiation document or award's status changes as it proceeds through the approval process. The following tables explain the different statuses for a negotiation or award and the actions which the category manager can perform various statuses.

The following table explains the possible statuses for negotiation document approvals.

Negotiation Status Explanation

Draft

The initial status of the negotiation. Also the status of the negotiation after it is rejected. In this case, the category manager can edit and resubmit the negotiation document.

Approval in process

The negotiation document is in the process of being approved.

Submitted

The negotiation document has been approved, but the preview or open date is in the future.

Withdrawn

The negotiation document has been withdrawn from the approval process by the category manager.

Approved (not published)

The negotiation document has been approved but cannot be published because the open or close dates have expired, or there was an error in publishing the negotiation. The category manager can use the Modify Schedule dialog box to enter new dates and publish the negotiation.

Active

The negotiation document has been approved is accepting responses.

Rejected

The negotiation document was rejected by one or more of the approvers. The category manager can edit the document and resubmit it.

The following scenario shows a possible sequence of actions a category manager could take as a negotiation document undergoes the approval process.

  1. The category manager creates the negotiation document. At this point, the document is in Draft status.

  2. Once the document is complete, the category manager submits it for approval. The document status changes to Approval in Process. The category manager receives a notification that the negotiation has been submitted for approval. All the approvers receive notifications that the negotiation document is ready for their approval.

  3. The category manager notices there was an omission to the document and so removes it from the approval process to correct the error. The status changes to Withdrawn.

  4. The category manager edits the document to correct the error. The document status changes to Draft.

  5. The category manager resubmits the document for approval. The status is Approval in Process.

  6. All approvers approve the document. The status changes to Active. The category manager receives a notification that the document is approved.

The following table explains the possible statuses for negotiation award approvals.

Negotiation Status Explanation

Award Approval in Process

The award is in the process of being approved.

Withdrawn

The award has been withdrawn from the approval process by the category manager.

Award Approved

All approval actions have completed and the outcome is "approved."

Award Rejected

The award was rejected by one of the approvers. The category manager can access, edit the award and resubmit it for approval.

The following scenario shows a possible sequence of actions a category manager could take as a negotiation award undergoes the approval process.

  1. The category manager completes the award and submits it for approval. The document status changes to Award Approval in Process. The category manager receives a notification that the award has been submitted for approval. All the approvers receive notifications that the award is ready for their approval.

  2. One of the approvers rejects the award decision. The category manager receives a notification that the award has been rejected. The award status is Award Rejected.

  3. The category manager edits the award decision and resubmits the award for approval. The document status changes to Award Approval in Process.

  4. All approvers approve the award. The status changes to Award Approved. The category manager receives a notification that the award is approved.

  5. The category manager completes the award and begins creating the purchasing documents.

As the category manager, you can view the approval chain and add any additional approvers to it. You can also monitor the progress of the approval process by viewing the approval history pages.

Modifying the Approval Chain

Before submitting the document or award for approval , you can modify the approval chain by adding new users or approval groups. You cannot remove any of the approvers that are part of the application generated approval chain. Selecting Manage Negotiation Approvals (for negotiation documents) or the Manage Award Approvals (for award approvals) from the Actions menu. In either case, on the Manage Approvals page, you can see the existing approval chain. In the page, there is a tabular display of the approval steps and their approvers. In the lower portion of the page, you can see a graphical display.

To add an a new approver to the chain, highlight the stage entry within the stage that you want to update. You can add additional approvers by clicking the add icon and then searching and selecting a new approver or approval group.

Adding Attachments

If you want you can add an attachment to the document or award before approving it and sending it on to the next approver in the chain. The notification you received to begin your approval has an icon you can use to browse and add an attachment before you pass the document or award to the next approver.

Viewing Approval Histories

You can view the progression of both document and award approvals. From Negotiation summary page, select the View Approval History option from the Actions menu. The page lists the steps in the approval chain and their status at the time you accessed the page. You can refresh the page to view the current status of the negotiation's approval. The page displays each stage of the approvals, identifies the participants, and the result of the participant's action. The most current approval event appears on the page. To drill into the details of the approval stage, click the Submit link.

You can view the document approval process, after you have published the document. You can view the progress of the award approval after you submit the award decision for approval. .

Award Negotiation

Allocate Award to Requisition Lines

If your negotiation line has backing requisitions, the application generates a default allocation to consume any backing requisitions as efficiently as possible. You can accept this default allocation or modify it as you see fit.

How the Default Requisition Allocation Is Calculated

The requisitions with the earliest Need-by Date are allocated first, followed by requisitions with increasingly later Need-by Dates until the required number of units for the line is allocated. If there are requisitions with the same Need-by Date, the requisition with the earlier creation date is allocated first.

For example, assuming a negotiation with a standard purchase order outcome for 2000 widgets, given the requisition information, the three requisitions would be allocated in the order shown in the table.

The following table shows a sample requisition allocation.

Requisition Number Need By Date Creation Date Quantity

3257894

11/1/2010

6/15/2010

1200

2357198

11/1/2010

6/30/2010

300

3487230

11/30/2010

6/14/2010

500

Suppliers are awarded based first on promised date (standard purchase order negotiations only), then quantity, then price, then response number. For fixed-price services, the first awarded supplier response is allocated. For example, given the response information, the four supplier responses would be allocated as shown (note that the last response is not awarded or allocated its full offer quantity because the negotiation is only for 2000 units).

Supplier Name Response Number Promised Date Quantity Price

Acme Distributors

57784

8/1/2010

500

$25

Office Supplies Inc.

46798

8/1/2010

500

$75

Midwest Supplies

34189

8/1/2010

250

$20

Premier Supply Company

88346

10/3/2010

1000 (750 awarded or allocated)

$15

You can modify the default allocation as needed. Any unconsumed requisition demand is returned to the requisition pool and becomes available for other negotiations.

Modify Default Requisition Allocation

Once you generate the purchase order document, any backing requisitions are allocated by default. You can accept this allocation or modify it as necessary.

To modify the default allocation, you should first view the default allocation. If the default allocation does not reflect your award decision, you can easily modify it.

View the Allocation
  1. On the Create Purchasing Documents page, click View Allocations.

  2. On the Line Allocations page, the Lines with Requisitions tab shows the default allocations for each line.

Modify the Allocation
  1. On the Line Allocations page, highlight the line whose allocations you want to modify, and click the Edit icon.

  2. The Edit Allocation page displays the current allocations. The Requisition Lines table shows the requisition lines that are currently allocated to the negotiation line. The Supplier Allocation Details table displays information about the suppliers who have been awarded units from the negotiation line and how many requisition units they have been allocated.

  3. To modify the allocation, enter the appropriate numbers in the Allocation Quantity column in the Requisition Lines table.

  4. When finished, click Save.

Record Award Decision

How You Award Negotiations

You can break down your award decisions several ways, depending on the responses you receive and the needs of your negotiation. You can award the negotiation and choose to not create a purchase order; however, any backing requisitions not allocated to purchase order lines are returned to the requisition pool.

Award a Negotiation to a Single Supplier

You can easily award all the lines of a negotiation to a single supplier. Awarding at the negotiation level enables you to quickly enter your award specifications since you do not have to enter an explicit award decision for each negotiation line. All the lines on which the supplier quoted or bid are awarded to that supplier. Any lines the supplier did not quote or bid on are not awarded.

Award an Individual Line to a Single Supplier

You can award all the business for a single negotiation line to single supplier. If the supplier offered only a partial response, the supplier is awarded as many units as were quoted or bid on. The remaining units remain not awarded. If there were backing requisitions for the units, they are returned to the requisition pool. If a supplier has submitted alternate lines, you can award business to the alternate lines just like you would to a regular line.

Dividing a Negotiation Line Among Multiple Suppliers

If necessary, you can split a line between multiple suppliers. This happens often when none of the responses to a particular line offers to sell the entire quote or bid quantity asked for. For example, if you are looking to buy 100 monitors, and supplier A offers to sell 75 monitors for $300 each, but supplier B offers to sell 60 monitors for $250 each, you might want to award supplier B the first 60 monitors and award the remaining 40 to supplier A. Note that if you have alternate line responses from the same supplier, you can award the alternate lines just like regular lines. You can therefore split a negotiation line between two different line responses from the same supplier.

Once you have exported the spreadsheet, you can open it in Microsoft Excel (version 2003 or later). Excel automatically formats the display based on your style format. The spreadsheet consists of multiple worksheets. The following sections describe the information contained in each worksheet, and the tables in the sections describe each spreadsheet field for that worksheet. As you use the spreadsheets, note that some fields are automatically calculated and updated as you enter values into the spreadsheet. These fields are enclosed by a thick cell border. For some fields you can enter provisional values for requirements and observe the results.

Excel also automatically formats date fields according to your user preferences into the spreadsheet.

Your spreadsheet can have multiple worksheets, depending on how the negotiation was defined. For example, if no attributes were defined, the Attributes Scoring Worksheet does not appear.

Using Spreadsheet Processing

This topic contains the instructions for analyzing responses in RFIs using an XML spreadsheet. Spreadsheet processing speeds up the analysis process by letting you analyze your response data offline. The spreadsheet does not include all the negotiation details that can be found either online or in the PDF file.

Line Summary Worksheet

The Line Summary Worksheet displays the information defined for the negotiation lines as well as information for any responses on those lines. The worksheet name specifies the range of lines it contains. The Line Summary has entries for each regular line, lot, group, and group line. It does not contain entries for lot lines. In the Line Summary table, multiple rows are displayed, one for each response received for the negotiation.

If your negotiation contains many lines, you can control the display by using the down arrow. You have several options including sorting the lines by line number to display specific lines.

The following table shows the fields in the Line Summary worksheet.

Field Name Meaning

Line

Line number and description as entered by the category manager.

Item

The number of the item that the category manager wants to purchase.

Item Revision

The item revision of the item that the category manager wants to purchase.

Supplier

The name of the supplier who responded to this line.

Business Relationship

The level of participation for this supplier. Suppliers with a business relationship of Prospective can participate, but you cannot award business to them until their status is upgraded to Spend Approved.

UOM

The unit of measure in which the category manager plans to buy the item.

Quantity

The number of units the category manager wants to buy.

Response Quantity

The number of units offered by the supplier

Response Price

The price the supplier is offering for one unit of the item or service.

Promised Delivery Date

The date by which the supplier promises to deliver the item or service.

Supplier Site

The supplier site which submitted the response.

Response

The number the application assigned this response.

Category Name

The category name describing the broad family or category to which this line belongs.

Location

The address where the item or service should be delivered.

Line Type

The type of line being negotiated, for example, goods or amount-based.

Overview Worksheet

The Overview Worksheet shows header information for the negotiation. The Overview Worksheet is the default worksheet that appears when you open the spreadsheet. Supplier responses are displayed in different columns to provide for easy side-by-side comparison.

The following table shows the fields in the Overview worksheet.

Field Title Meaning

Business Relationship

The level of participation for this supplier. Suppliers with a business relationship of Prospective can participate, but you cannot award business to them until their status is upgraded to Spend Approved.

Supplier Site

The supplier site from which this response was submitted.

Supplier Contact

Contact who submitted the response.

Response Status

The status of the response.

Shortlist Status

Whether the response is included on the shortlist.

Response Currency

The currency in which the supplier submitted the response (in multiple currency negotiations).

Conversion Rate

The conversion rate defined between the RFI currency and the response currency (in multiple currency negotiations).

Response Total (Response Currency)

The amount of the supplier's response (response price * quantity) in the supplier's currency (in multiple currency negotiations).

Response Amount (RFI Currency)

The amount of the supplier's response (response price * quantity) in response currency.

Time of Response

The time the response was received by the application.

Response Valid Until

The time the response was received by the application.

Reference Number

Number assigned by the application for this response

Note to Buyer

A text note entered by the supplier.

Attachments

Indicator that shows the presence of an attachment that can be downloaded online.

If requirements were defined for this negotiation, information about the supplier responses is displayed in the Requirements section. For each Requirement, supplier responses are displayed in side-by-side columns for easy comparison. If scoring criteria is defined, you can use the View Scoring Criteria link to see the scoring criteria. If the Requirement is internal, there is no supplier response.

If your negotiation contains many lines, you can control the display by using the down arrow. You have several options including sorting the lines by line number to display specific lines.

The following table shows the fields in the Requirement section.

Field Title Meaning

View Scoring Criteria

Link to the Requirements Scoring Worksheet. This link only appears if the category manager defined scoring information for at least one requirement and made the information visible to suppliers

Requirement

  • The name of the requirement section is displayed. There is a row for each requirement. If there is a branched requirement, it's listed in its parent requirement. The hierarchy of the branched requirement is indicated by the numbering value:

    1. Number: the number of the parent requirement

    2. Letter: the indicator of which response to the parent requirement triggered the branch question

  • If this is a two stage RFQ, there is one or more sections labeled Technical and one or more sections labeled Commercial. In two stage RFQs, you must unlock and score the supplier's technical requirements before you can unlock and score any commercial requirements.

Weight

The weight assigned to this requirement (a section's weight is the sum of its Requirements' weights). If manual or automatic scoring is defined for this Requirement, you can change its weight by entering new numbers into the spreadsheet. Weights only appear if the category manager has enabled weights for this negotiation.

Target Value

The target value defined by the category manager.

Score and Weighted Score (Requirement)

The score and weighted score for this Requirement, based on the supplier response. If the Requirement is manually scored, you can enter scores and the weighted score is calculated automatically. Weight values only appear if weights were enabled by the category manager

Score and Weighted Score (Section)

The score or weighted score (if weight is enabled) for this Requirement section, based on the supplier response. Weight values only appear if weights were enabled by the category manager

Total Score or Total Weighted Score

The total score or total weighted score for this supplier's response. Weight values only appear if weights were enabled by the category manager.

Supplier's Response

The response value entered by a supplier.

Attachments

Whether the supplier has provided an attachment

Note to buyer

Any text note the supplier entered

Lines Worksheet

If your negotiation contains many lines, you can control the display by using the down arrow. You have several options including sorting the lines by line number to display specific lines.

The following table shows the fields in the Lines worksheet.

Field Name Meaning

Line

Line number and description as entered by the category manager

Line Type

The type of line (for example, goods or amount-based)

Item

The number of the item that the category manager wants to purchase.

Item Revision

Item revision of the item that the category manager wants to purchase.

Category Name

The category name describing the broad family or category to which this line belongs.

Location

The address where the item or service should be delivered.

UOM

The unit of measure for this line.

Target Price

The target response price entered by the category manager.

Current Price

The current price the category manager is paying for this item or service. The Current Price value is used by the application to calculate savings amounts.

Alternate Lines Provided

Indicates if the supplier added any alternate lines in response to a negotiation line.

The response section of the Lines Worksheet displays information about the responses received for this line. The Target Value column displays any target values the category manager has defined. Following the Target Value column, responses for individual suppliers are displayed in side-by-side columns for easy comparison.

The table shows the fields in the response section of the Lines worksheet.

Field Name Meaning

Line

The number designation for this line

Description

Text description of the item or service for this line.

Business Relationship

The level of participation for this supplier. Suppliers with a business relationship of Prospective can participate, but you cannot award business to them until their status is upgraded to Spend Approved.

Supplier Site

The supplier site that submitted the response.

Response Status

Status of the response.

Requirement Score

The score for this requirement.

Shortlist Status

Whether the response is included on the shortlist.

UOM

The unit of measure for this line.

Response Currency

The currency in which the supplier submitted the response (in multiple currency responses negotiations).

Response Price (Response Currency)

The price offered by the supplier. In a multiple currency negotiation, this value is in the supplier's currency.

Response Price (RFI Currency)

The price offered by the supplier. In a multiple currency negotiation, this value is in the negotiation currency.

Response Quantity

The quantity offered by the supplier's response.

Line Amount

Unit Price Savings

The difference between the current price being paid for the line and the price being offered.

Unit Price Savings Percent

The Unit Price Savings amount converted to a percentage.

Minimum Release Amount

The minimum amount that can be released against the agreement.

Promised Ship Date

The date the supplier delivers the item or service (purchase order only).

Note to Buyer

A text note entered by the supplier.

Attachments

An indicator that shows whether the supplier also submitted an attachment with the response.

Requirements Scoring Worksheet

The Requirements Scoring Worksheet only appears if scoring criteria was defined by the category manager.

The table shows the fields in the Requirements Scoring worksheet.

Field Name Meaning

Requirement

  • The name of the requirement section is displayed. There is a row for each requirement. The hierarchy of the branched requirement is indicated by the numbering value:

    1. Number: the number of the parent requirement

    2. Letter: the indicator of which response to the parent requirement triggered the branch question

  • If this is a two stage RFQ, there is one or more sections labeled Technical and one or more sections labeled Commercial. In two stage RFQs, you must unlock and score the supplier's technical requirements before you can unlock and score any commercial requirements.

Acceptable Values

The acceptable response values for the requirement as defined by the category manager. For a text requirement, this is a list of values. For numeric, date, and date time type requirements, a set of numbers, dates or range of numbers.

Score

For automatically scored values, the numeric score assigned to that value by the category manager.

Weight or Maximum Score

If weights are enabled, the numeric value assigned by the category manager. Otherwise, the Maximum Score is displayed as defined by the category manager.

Once you have exported the spreadsheet, you can open it in Microsoft Excel (version 2003 or later). Excel automatically formats the display based on your style format. The spreadsheet consists of multiple worksheets. The following sections describe the information contained in each worksheet, and the tables in the sections describe each spreadsheet field for that worksheet. As you use the spreadsheets, note that some fields are automatically calculated and updated as you enter values into the spreadsheet. These fields are enclosed by a thick cell border.

Excel also automatically formats date fields according to your user preferences into the spreadsheet.

Your spreadsheet can have multiple tabs, depending on the negotiation content. Once you have completed the spreadsheet, import it back to the application.

The following table shows the spreadsheet table and the content they contain.

Worksheet Tabs Contents

Line Summary Tab

Use this tab to view a summary of all responses to each line in the negotiation including any award decisions made. The Line Summary worksheet displays all groups, group lines, lots, and regular lines. It does not display lot lines

Overview Tab

Use this tab to view the responses' header and requirement information side by side for easy comparison. You can optionally enter or change the scores given to the requirement responses and see how it impacts the Total Weighted Score for the supplier.

Lines Tab

Use this tab to view all the responses' line detail information (for example, cost factors, price breaks, and attributes.) side by side for easy comparison. You can award the lines to the responses and can specify other details like the award or agreement quantity and award reason in this worksheet. All the lines defined in the negotiation are displayed except for lot lines.

Requirements Scoring Tab

Use this section to view any Requirements scoring information.

Attributes Scoring Tab

Use this section to view any line attribute scoring information.

Using Spreadsheet Import

This file contains the instructions for analyzing and awarding responses in negotiations using an XML spreadsheet. Spreadsheet import is very useful when dealing with large negotiations and effectively speeds up the response process. The spreadsheet displays only the necessary information for analyzing and awarding responses. You can easily experiment with different award decisions and see how it impacts the overall savings or other award criteria. The spreadsheet does not include all the negotiation details that can be found either online or in the .pdf file.

In each worksheet, fields display negotiation information such as negotiation type, open date, negotiation currency.

Using the Lines Worksheet and the Line Summary Worksheet

The application imports the information entered into the Line Summary Worksheet into the application when processing your award decisions. For straightforward negotiations, for example a simple negotiation, you may want to enter your award values directly into the Line Summary Worksheet.

For more complex negotiations, you may want to use the Lines Worksheet. You can use the Lines Worksheet to perform analysis using the additional supplier response values. For example, you can perform what-if analysis, side-by-side comparison, and additional award and savings calculations that are only available on the Lines Worksheet. You can enter and adjust award quantities to see the effect on the award total.

As you enter award quantities into the Lines Worksheet, the values are automatically copied up into the Line Summary Worksheet. Once you determine your award quantity amounts using the Lines Worksheet, you do not have to reenter the values in the Line Summary Worksheet for uploading into the application.

Note that if you enter values directly into a field in the Line Summary Worksheet, the formula is erased.

Line Summary Worksheet

The Line Summary worksheet displays the information defined for the negotiation lines as well as information for any responses on those lines. The worksheet name specifies the range of lines it contains. The Line Summary has entries for each regular line, lot, group, and group line. It does not contain entries for lot lines. In Line Summary table, multiple rows are displayed, one for each response received for the negotiation.

Any award information you enter into the Lines worksheet (see the following) is displayed in summary form on the Line Summary worksheet. Alternatively, you can enter award decisions into the Line Summary worksheet.

The following table shows the attributes for the Lines Summary worksheet.

Field Name Meaning

Requisitioning BU

The business unit that originated this line. If you are using standalone Sourcing, this column does not appear.

Line

Line number and description as entered by the category manager.

Alternate line

If this is an alternate line offered by the supplier, this field displays the alternate line name.

Item

The number of the item that the category manager wants to purchase.

Item Revision

The item revision of the item that the category manager wants to purchase.

Supplier

The name of the supplier who responded to this line.

Business Relationship

The level of participation for this supplier. Suppliers with a business relationship of Prospective can participate, but you cannot award business to them until their status is upgraded to Spend Approved.

UOM

The unit of measure in which the category manager plans to buy the item.

Quantity

The number of units the category manager wants to buy.

Response Quantity

The number of units offered by the supplier.

Estimated Quantity

The number of units the category manager wants to buy over the life of the agreement.

Estimated Total Amount

Estimated amount of business you expect to pay for this line over the life of this agreement. Values only appear if this line is a service line type.

Award

Valid selections are Yes or No.

For amount-based and fixed price services line types for a purchase order, use Yes or No to indicate an award to this supplier.

For purchase agreements, you can enter a value regardless of line type.

Award Quantity

For goods-based line types, enter number of units awarded to this supplier.

Agreement Quantity

Enter the number of units awarded to this supplier (for goods and rate-based temp labor lines only.

Award Reason

Optional text note to the supplier.

Rank

The rank of this supplier's response among the other responses.

Response Price

The price offered by the supplier for one unit of the item.

Score

If the ranking method for this negotiation is Multiattribute Weighted Scoring, displays the overall line attribute score received by the response.

Promised Delivery Date

The date by which the supplier promises to deliver the item or service.

Response Minimum Release Amount

The minimum release amount offered by this supplier.

Supplier Site

The supplier site which submitted the response.

Response

The number the application assigned this response.

Response Type

Primary or secondary

If you submit alternate responses, you can designate one of the responses as your primary.

Requested Delivery Date

The date by which the item or service the category manager wants to purchase is needed at the location.

Target Minimum Release Amount

The minimum release amount asked for by the category manager