How You Monitor Sourcing Programs

As a program owner or category manager, you can track the results of negotiations over a period of time and take any actions for course correction if necessary.

At any point in time, the program status marks the overall health and progress of the program and its objectives. You can monitor and set the status to indicate if the objective (or program) is on track, at risk, or on hold. Once an objective (and eventually the program) completes, you can set the status to indicate if the goals were met or not met. Once a program completes, you can set its status to record its overall results.

As negotiations linked to a program complete, the awarded amounts are rolled up to objective level and then from the objective to the program level. The application calculates negotiated award amounts, negotiated savings amounts and percentages, as well as any deviation of the result from the planned savings goal.

Since the calculations for objectives and the programs happen in real time, it's important for you or other category managers to monitor the progress of the program as it goes forward. There are many locations where you can access and view information on your programs:

• The Sourcing Programs infolet on the second level Source to Settle infolet page. This infolet displays key metrics.

• The Monitor Program page. You can use this page to drill down and see in-depth information on the program. You can also modify many program attributes.

Using Spend and Savings Attributes

You can use Planned Current Spend and Planned Target Spend attributes at the negotiation level to capture current spend and target amounts from the negotiations that are associated with your program objectives. These values roll up from the negotiations to the objective level, and then from the objective level to the program level. You can use the spend and savings values when determining the success of your program.

• Planned Current Spend is the sum of the current spend amount rolled up from the negotiation lines. If not available in the negotiation, you can enter value, or you can update the rolled up value from the negotiation.

• Planned Target Spend is the total target spend amount rolled up from the negotiation lines. If not available, you can enter the value, or you can update the rolled up negotiation.

• Planned Savings Goal is the difference between the planned current spend and the planned target spend. If not available in the negotiation, you can enter value, or you can update the rolled up value from the negotiation.

• Planned Savings Goal (%) is the result of dividing the planned savings goal by the planned current spend. If not available in the negotiation, you can enter value, or you can update the rolled up value from the negotiation.

Managing Programs

At the negotiation level, you can associate negotiations in statuses from draft to complete with an objective. You can associate the same negotiation to one or more objectives, but you can't associate the same negotiation to multiple roll up objectives. You can't associate negotiations of statuses canceled, amended, or round completed to an objective.

Note also:

• If you amend a negotiation after you associated it with an objective, the active version of the negotiation replaces the earlier amended version.

• If you cancel negotiation after it's associated with an objective, it's no longer included in roll up calculations.

• If you start a new round after you added a negotiation to an objective, the new negotiation round replaces the earlier round completed version.

• If you delete a draft negotiation that's associated with an objective, then the reference to the negotiation is removed from the objective.

• If you deleted a negotiation that's associated with an objective, the reference to the negotiation is removed from the objective.

Using the Monitoring Program Page

Once you have created and launched a program, the program phase becomes "In progress'. While the program is in progress, program calculations are triggered, analytics and metrics are available, and you can track the progress of program objectives and update their status as needed by viewing the Monitor Program page.

To access the Monitor page, click Manage Programs in the tasks menu. On the Manage Programs page, highlight a program in progress (if the program doesn't appear in the most recent programs, you can search for it from the Manage Programs page). Click Monitor to view the status of the program, as well as its objectives, and associated programs as well as the program metrics and analytics calculated by the program.

On the Monitor Program page, you have two tabs, the Planning Progress tab and the Results tab, as well as an overview section. The graph and the other values in the Overview section show you the program's status, and the current calculations for negotiated savings, negotiated savings goal, and any savings deviation.

From the Actions menu you can:

• Update the program status

• Complete the Program

• Cancel the Program

On the Planning Progress tab, you can:

• Click the Manage Objectives link to navigate to the Baseline page for your program. On the Baseline page, you can click the Add icon in the Objectives section, to add a new objective.

• Click the Add Negotiations link to navigate to the Baseline program page for your program. On that page, you can highlight a program objective. Click the edit icon and add a negotiation to the objective.

• Click the Manage Negotiations link to view the details on the negotiations associated with this program from the Manage Negotiations page in Oracle Sourcing.

Consult the tables at the end of this topic to view how the application calculates all the results fields.

On the Results tab, you can view summary information on the program. Consult the tables at the end of this topic to view how the application calculates all the results fields.

The Objectives section of the page, shows you information about your program objectives. You can toggle between a graph-based view or a table-based view of the objective information.

While on the table-based view, you can highlight an objective and

• Update the objective's status.

• Update results manually from the planned contributions to an objective.

While on the graph-based view, you can see graphical views of

• The savings values for your program objectives.

• The savings deviation values for your program objectives.

• The current status of your objectives.

Program Calculations

The Monitor Program page automatically performs many calculation and displays them while a program is in progress. The application performs these calculations in real time as suppliers enter responses, so you can always see the most up to date information.

Baseline Calculations

The following table shows baseline calculations at the program level:

Calculation	Details
Baseline Savings Goal	Baseline current spend baseline target spend
Baseline Savings Goal (%)	Baseline savings goal/baseline current spend

The following table shoes the baseline calculations performed at the objective level.

Calculation	Details
Baseline Savings Goal	Baseline current spend baseline target spend for the objective*
Baseline Savings Goal (%)	Baseline savings goal/baseline current spend*

*This applies only to objectives that have a monetary impact and are considered for roll up calculation.

Planning Calculations

The following table shows the planning calculations that are perform at the negotiation level:

Calculation	Details
Negotiation Current Spend	Sum (current amounts of all lines)*
Negotiation Target Spend	Sum (target amounts of all lines)*
Negotiation Savings Goal	Negotiation current amount negotiation target amount
Negotiations Savings Goal (%)	Negotiation current amount negotiation target amount

* If negotiation value isn't available, a value can be entered. Value rolled up from negotiation can be updated

The following table shows the negotiation values that are rolled up to the objective level.

Calculation	Details
Calculation	Details
Planned Current Spend	Sum (negotiation current amounts:)
Planned Target Spend	Sum ( negotiation target amounts)
Planned Savings Goal	Planned current spend planned target spend
Planned Savings Goal (%)	Planned savings goal/planned current spend
Remaining Target Spend	Baseline target spend planned target spend

The following table shows the objective values that are rolled up to the program level.

Calculation	Details
Planned Current Spend	Sum (planned current spend for all objectives where Roll-up = Y
Planned Target Spend	Sum (planned target spend for all objectives where Roll-up = Y)
Planned Savings Goal	Planned current spend - planned target spend
Planned Savings Goal (%)	Planned savings goal/planned current spend
Remaining Target Spend	Baseline target spend - planned target spend

Results Calculations

The following table shows the results calculated from negotiation values.

Calculation	Details
Negotiated Award Amount	Award amount from an award completed negotiation
Negotiated Savings	Negotiation Current Amount negotiated award amount
Negotiated Savings (%)	Negotiated savings/negotiation current amount
Savings Deviation	Negotiated savings (%) planned savings goal (%)

The following table shows the values that are calculated during the negotiation roll-up to objective process:

Calculation	Details
Negotiation Current Spend	Sum (Current Amount of all award completed negotiations within the objective)
Negotiated Award Amount	Sum (Award Amounts of all award completed negotiations within the objective)
Negotiated Savings	Sum (Negotiated Savings of all award completed negotiations within the objective)
Negotiation Savings Goal	Planned Savings Goal of all award completed negotiations within the objective.
Negotiated Savings (%)	Negotiated Savings/Negotiation Current Spend
Negotiation Target Spend	Planned Target Spend of all award completed negotiation within the objective.
Savings Deviation	Negotiated Savings (%) Negotiation Savings Goal (%)

The following table shows how the values are calculated during the objective information rolled up to program process.

Calculation	Details
Negotiation Current Spend	Sum (Negotiation Current Spend of all objectives where roll-up = Y)
Negotiation Target Spend	Sum (Negotiation Target Spend for all the objectives where roll-up = Y)
Negotiation Savings Goal	Sum (Negotiation Savings Goal for all objectives where roll-up = Y)
Negotiated Award Amount	Sum (Negotiated Award Amount of all objectives where roll-up = Y)
Negotiated Savings	Sum(Negotiated Savings from all objectives where roll-up = Y)
Negotiated Savings (%)	Negotiated Savings/Negotiation Current Spend
Savings Deviation	Negotiated Savings (%) Negotiation Savings Goal (%)