Oracle Sourcing Overview

Oracle Sourcing offers flexible negotiation capabilities to buyers and sellers, enabling them to efficiently obtain the best possible prices for goods and services. Prices are established based on actual supply and demand at the time the negotiation is transacted.


What are the Different Types of Sourcing Documents?

1. Request for Information - RFI
2.Request for Quote - RFQ
3. Auctions

 Buyers will be able to use real-time data obtained from suppliers' on products and services, and then use that information to create negotiations that drive prices based not only on price, but on lead times, quantity, and item-specific attributes.

Request for Information (RFI)

 RFI's are used to qualify suppliers and their goods for subsequent procurement activities.  RFI's are Used for gathering information on goods and service.

RFI's identify important item criteria on which a buying organization needs information.

Request for Quote (RFQ)

 RFQ's enable buyers to collect quote from suppliers for goods and service(Including but not limited to Complex hard to define items such as make to Order items).

RFQ's Provide Buyer to Short down the supplier list and negotiate further for price and other terms.

This is the longest negotiation process

Auctions

 Auctions enable the buyers to solicit bids for goods and service that have clear terms and conditions predefined.
Selection of winning supplier can be made by competitive pricing or improved service provided by supplier

What are Different Styles of Negotiations

1. Open : Everyone can see the response content, but the identity (Supplier) of the response can only be seen by buyer.

2. Blind : Only Buyer Can see the Response.

3.Sealed : Neither the buyer nor the suppliers can see the response content until the negotiation closes. The buyer can see the responses once the negotiation is unlocked. Everyone can see the response content once the negotiation is unsealed.

What is Start Price?

The start price is the maximum price you are willing to pay for one unit of item. (In terms of sourcing, start Price is Maximum Price and  in case of selling that can be the Least Price But Not Covered Under "Sourcing")


What is Target price?

 The target price is the price you hope to pay for one unit of an item.