1. Direct Procurement (or Direct Sourcing)
- Description: Involves acquiring goods and services that are directly related to the core operations of a business, often for manufacturing, production, or day-to-day operations.
- Examples: Raw materials, components, machinery, and equipment used in production.
- Purpose: Ensures that the organization has the materials required for its primary business functions, such as producing products or delivering services.
2. Indirect Procurement (or Indirect Sourcing)
- Description: Refers to goods and services purchased that are not directly used in the production process but are essential for the company's day-to-day operations. These are typically for support functions.
- Examples: Office supplies, IT services, marketing services, cleaning services, and travel.
- Purpose: Helps support business operations and enhances productivity, but is not directly involved in creating products or services.
3. Capital Procurement
- Description: Focuses on purchasing high-value items that are usually long-term investments or assets for an organization.
- Examples: Real estate, machinery, vehicles, large infrastructure projects.
- Purpose: Ensures that the organization acquires significant assets that support long-term growth and development.
4. Services Procurement
- Description: Involves procuring services rather than physical goods. This may include outsourcing or contracting for a range of services that the organization requires.
- Examples: Consulting services, legal services, facility management, staffing services, IT support.
- Purpose: Supports organizational functions that cannot be managed in-house, often to reduce costs, gain expertise, or focus on core activities.
5. Strategic Procurement
- Description: This type of procurement focuses on long-term planning and the development of relationships with suppliers. It aligns with the organization's strategic objectives and aims for optimal sourcing decisions that support future business growth.
- Examples: Developing long-term supplier partnerships, negotiating global contracts, or sourcing critical technology.
- Purpose: Helps organizations secure a competitive advantage through better supplier collaboration, improved innovation, and better risk management.
6. Tactical Procurement
- Description: Focuses on short-term, operational purchases based on the immediate needs of the organization. Tactical procurement is more reactive and short-term in nature compared to strategic procurement.
- Examples: Purchasing materials for a short-term project, fulfilling urgent needs, or procuring office supplies.
- Purpose: Ensures immediate needs are met with a focus on efficiency and cost-effectiveness.
7. E-Procurement (Electronic Procurement)
- Description: Involves using digital platforms and systems to manage the procurement process. It can automate much of the procurement cycle, from identifying suppliers to issuing purchase orders and receiving invoices.
- Examples: Using procurement software, online supplier portals, or electronic invoicing systems.
- Purpose: Streamlines the procurement process, increases efficiency, reduces errors, and offers better control over spending.
8. Global Procurement
- Description: Refers to sourcing goods and services from international suppliers, often in different countries, to take advantage of global markets.
- Examples: Sourcing raw materials from low-cost countries, establishing global supplier relationships for mass production.
- Purpose: Enables businesses to access resources that might not be available locally, reduce costs, or take advantage of global innovation and expertise.
9. Sustainable Procurement
- Description: Focuses on obtaining goods and services that minimize environmental impact and are socially responsible. It is driven by a desire to promote sustainability.
- Examples: Purchasing eco-friendly materials, working with suppliers who have sustainable practices, or buying fair-trade goods.
- Purpose: Ensures that the procurement process contributes to a company’s sustainability goals, reducing its environmental footprint and supporting ethical business practices.
10. Public Procurement
- Description: Refers to the procurement process used by government organizations or public sector entities. It is often regulated by strict rules and guidelines to ensure transparency, competition, and accountability.
- Examples: Government contracts for construction, technology, or consulting services.
- Purpose: Ensures that taxpayers' money is spent responsibly, and that procurement processes are fair, open, and efficient.
11. Reverse Procurement (Reverse Auction)
- Description: This is a type of procurement where suppliers compete to offer the lowest price for goods or services. The buyer initiates the process by specifying their requirements, and suppliers bid to win the contract.
- Examples: Online bidding for construction projects, bulk purchasing of materials.
- Purpose: Aims to achieve cost savings by encouraging competition and reducing the procurement cost.
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1. Standard Purchase Order (PO)
- Description: The most common type of PO, used for acquiring goods and services on a one-time or recurring basis. It is typically used when the terms (price, delivery, etc.) are agreed upon before the order is placed.
- Use Case: Used when the company knows the exact items and services to be purchased, and the quantities and pricing are fixed or agreed upon.
- Example: Purchasing raw materials or office supplies from a supplier.
2. Blanket Purchase Agreement (BPA)
- Description: A long-term agreement between the buyer and the supplier to provide goods or services at predetermined prices, with delivery occurring as needed over time. A Blanket Purchase Agreement is typically used for high-volume or recurring purchases.
- Use Case: Suitable for ongoing purchases or when an organization expects to make frequent purchases from the same supplier over a period.
- Example: A company entering into an agreement with a supplier to provide stationery over a year.
3. Procurement Contract Purchase Order
- Description: This PO type is used in conjunction with a Procurement Contract, where the terms of the agreement are negotiated and formalized in the contract. The PO is based on the conditions of the contract.
- Use Case: Used when the procurement is part of a larger, more formal contract agreement between the supplier and the buyer.
- Example: A company might enter into a contract with a supplier for specific terms (price, delivery schedule, etc.), and the POs are raised against this contract.
How can we enable the AI and RedWood Purchase Order page
Step 1
Manage the administrator profile
Access the new Purchase Orders page, you must enable the Redwood Page for Purchase Orders Enabled for Purchasing (ORA_PO_PURCHASE_ORDERS_REDWOOD_ENABLED)
PO_VIEW_PURCHASING_WORKAREA_PRIV
PO_MANAGE_PO_WITH_REDWOOD_PRIV
PO_SEARCH_PURCHASE_ORDER_PRIV
FND_MANAGE_SCHEDULED_JOB_DEFINITION_PRIV
Run the ESS job to create index definition and perform initial ingest to OSCS scheduled process with this index name:
- Purchase Orders: fa-prc-po
AI enables approval
PO_COMMUNICATE_PURCHASING_DOC_PRIV
PO_VIEW_PURCHASE_ORDER_PRIV
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Onboarding Welcome Email to Supplier
In the Local Language in Fusion Supplier Management
Setup
Step 1
1. Click on Setup Maintenance>Select Procurement Offering>Click on Supplier > Configure New Supplier Notification
Attachments Not Visible in (PR) or (PO) in Oracle Fusion
In Oracle Fusion, when a requester or buyer submits a Purchase Requisition (PR) or Purchase Order (PO) along with an attached document and sends it for approval, the approver is unable to view the attachment during the approval process. This issue typically occurs when the attachment is not assigned the correct category and does not have view Access.
Salution
Click on the bill notification icon
Click on Show All Tasks
(i) Click on Name
(ii) Select administration
Click on Task Configuration
(i) Write in Search ReqApp and Click on Show
(ii) Select ReqApproval
Click on Access and attachment, add Reviewers
To create and register a supplier in Oracle Fusion, follow these steps:
-
Navigate to Suppliers
Go to Procurement → Suppliers. -
Create Supplier
Click Create Supplier, then enter the supplier’s basic details, such as:-
Supplier Name
-
Tax Organization Type
-
Country
-
Taxpayer ID / Registration Number
Supplier Type
-
-
Define Addresses & Sites
Add supplier addresses (e.g., headquarters, billing, shipping) and assign sites to Business Units.
-
Add Contacts
Provide supplier contact information, including names, emails, and phone numbers. -
Banking & Payment Details (Optional)
Enter banking information and payment terms if required. -
Register Supplier
Once details are complete, choose Register Supplier (for external registration) or Approve Supplier (if internal).
-
Approval Process
Depending on your organization’s setup, supplier registration may require approval from Procurement or Supplier Management teams.
Active Supplier
Business Classification
It is used to categorize suppliers based on their business type or certifications. It helps
organizations identify, qualify, and report on suppliers according to compliance, diversity,
or regulatory requirements.
Products and Services
It represents the categories of goods or services that a supplier can provide to your
organization.
These are typically aligned with the UNSPSC (United Nations Standard Products
and Services Code) or your company’s internal procurement categories
.For example, Computer Supplies
Supplier Address
It is the physical or mailing location associated with a supplier. It is used to define
where purchase orders, payments, or shipments should be sent.
Supplier
Site Assignment
Registration of Supplier
Enter Company Detail
Contacts
Click on Register
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