1. Using Procurement
  2. Create Sourcing Programs

Create Sourcing Programs

A Sourcing Program is a summary of an organization's sourcing objectives and their associated negotiations. Sourcing programs let you set savings goals for the programs and its objectives and record the results with an aim to measure performance of sourcing departments.

To create a Sourcing program you define:

  • The program header information

  • The program team members.

  • The program objectives

  • The negotiations that are associated to the objectives.

Enable Sourcing Programs

To use Sourcing Programs, you must select it as a Sourcing product feature when implementing Sourcing in Setup and Maintenance.

Create a Sourcing Program

Use the following steps to create a Sourcing program.

  1. On the Negotiations Work Area, from the tasks menu, click Manage Programs

  2. On Manage Programs page, click the Create icon (the plus sign).

  3. On the Create Program page enter values for your program. Note the following:

    • You can specify the visibility for this program. You can execute this program either in a single procurement BU or across multiple procurement BUs by choosing the 'All' option.

    • Start and End dates are optional.

    • The currency that you select is the currency in which all spend and saving amounts are shown.

    • Select a currency rate type and a select the date whose exchange rate you want to apply.

    • You can optionally link this program to a particular procurement category.

    • If descriptive flexfields have been enabled, they will appear in the Additional Information section.

  4. You can associate attachments with the program to provide additional information.

  5. Click Save.

Create the Program Team

Use the following steps to create a program team.

  1. Click the people icon to define the members of the program team. Navigate to the Team tab to define the members of the program team. By default, you and your manager are added to the program team.

  2. To add additional members, click the Add icon (the plus sign).

  3. Use the search function in the Name field to identify a user to add to the team. You can also specify that member's access level (full or view-only) and optionally add a note to other members. Once you add the member, the new member's job description appears in the Job field.

  4. Click Save.

Create Objectives, Goals, and Associating Negotiations

Use the following steps to create objectives and goals, and to the associate negotiation with your program.

  1. Specify your program objectives, goals, so navigate to the Baseline tab.

  2. The Baseline page, shows program goal or baseline information such as current spend, target spend, savings goal.

  3. In the Objectives section, click the Create icon (the plus sign) to add an objective.

  4. On the Create Objective page, enter values. Note the following:

    • There are three possible types of objectives: price reduction, cost avoidance, and productivity improvement.

    • You can choose to roll the monetary information tracked by this objective up to the program level.

    • You can link this objective to a particular category.

    • You can assign a program team member to be the owner for this objective.

  5. Use the Baseline section of the page to specify your spend and savings goals addressed by this objective. Enter the amount you currently spend in the area addressed by this objective. You can optionally enter a target spend. If you enter a target spend, the Savings Goal and Savings Goal Percentage amounts are calculated automatically.

  6. In the Negotiations section of the Create Objective page, you identify the negotiations by which you will try to achieve the goal of this objective. When you add a negotiation, the negotiation current and target amounts are defaulted as the planned and current target spend. You have the option to adjust or override these values.

    You have the option to include a negotiation (even if it isn't created yet) by adding a placeholder negotiation. When you associate the negotiation with the objective, you select Planned for the negotiation number. Later during the program lifecycle, when the negotiation is created, you can replace the placeholder negotiation row with the actual negotiation. You can also use a planned negotiation to track contributions to an objective from sources other than negotiations.

  7. As you add negotiations, the target spend for the objective is being planned to be achieved through the negotiation. Remaining target spend indicates how much target spend isn't yet planned as negotiations. You can associate negotiations later, any time throughout the lifecycle of the program.

  8. When you have finished defining the program, click Launch.