PeopleSoft Strategic Sourcing facilitates collaboration between buyers and suppliers of goods and services. Through PeopleSoft Strategic Sourcing events, you increase investment recovery through the sale of depreciated assets, and reduce costs by accepting competitive bidding for goods and services.
With this application, you can:
- Establish bid factors on which to score events.
- Establish business policies and constraints on which to base the sourcing awards.
- Create events and invite bidders to participate in them.
- Collaborate on events and event analysis with others in the enterprise.
- Enable new bidders to register to bid.
- Enable bidders to enter their bids online.
- Negotiate bids by creating multiple rounds and versions.
- Optimize bids to determine an ideal award
- Score bids and award the events.
- Use workflow processes to enable approvals and notifications throughout the event life cycle.
PeopleSoft Strategic Sourcing Business Processes
PeopleSoft Strategic Sourcing buy events are part of the Source to Settle business process:
The following high-level process is used for PeopleSoft Strategic Sourcing buy events:
1. The buyer creates an event, and optionally copies from an existing event, an event template, requisitions, purchase orders, contracts, Manufacturing bills of material (BOMs), Engineering BOMs, or planned orders.
The buyer includes bid factors and business constraints, and invites bidders.
2. Optionally, the buyer invites collaborators to give input to the event, reviews the input, and posts the event based on the input.
3. Bidders register, review the event, and submit their bids.
Note: Suppliers that exist as vendor users and have been granted the appropriate roles and permissions to bid do not need to register.
4. The buyer evaluates the bids manually or uses the optimization engine, and can create another round of the event to solicit more bids.
5. Optionally, the buyer invites collaborators to give input on the bids and bidders.
6. The buyer awards the winning bid, and the system notifies the winners and non-winners.
7. The buyer either creates a purchase order or contract to order the goods or services from the awarded bidder.
If the bidder isn't previously a vendor, the system creates a record for the bidder in the vendor table.
Use the following event type for the following situations:
Recommended Event Format/Type
Information gathering for a future request for proposal.
RFI (request for information)
Selling depreciated assets. You award the event to the highest bidder.
Sell/Auction price-only event. You select the bidders compete On the Basis of Price option on the Header Details page to create a price only sell event.You can optionally select to allow Proxy Bidding on the auction event.
A reverse auction where price is not the only consideration. You award the event to bidder with the best score.
Buy/Auction event. You select the bidders compete On the Bases of Score option on the Header Details page and add additional line bid factors to create a score based buy auction event.
A complex purchase with many bid factors, such as a large procurement for a government agency. Bidders don't actively bid against one another, but instead submit their best overall bid.
Buy/RFx event. Optionally, you can create multiple rounds to negotiate further with selected bidders
PeopleSoft Strategic Sourcing Business Roles
Please see related articles below for more information on Strategic Sourcing Roles.
PeopleSoft Strategic Sourcing Integrations
PeopleSoft Strategic Sourcing integrates with the following PeopleSoft applications:
PeopleSoft Supplier Contract Management
If you have PeopleSoft Supplier Contract Management installed, you can search and associate clauses and contract agreement codes with bid factors used in sourcing events. For awarded buy events, PeopleSoft Strategic Sourcing creates contracts directly in PeopleSoft Supplier Contract Management.
PeopleSoft Strategic Sourcing can base buy events on items from PeopleSoft Purchasing requisitions, purchase orders, and contracts. For awarded buy events, PeopleSoft Strategic Sourcing creates contracts or purchase orders directly in PeopleSoft Purchasing.
PeopleSoft Asset Management
PeopleSoft Asset Management provides assets for sell events.
For analyzed and awarded sell events, PeopleSoft Strategic Sourcing passes awards to PeopleSoft Asset Management to record the proceeds from the sale of the asset. PeopleSoft Asset Management then integrates with PeopleSoft Billing to bill the customer for the sale.
PeopleSoft One Procurement
You can use PeopleSoft Strategic Sourcing to create and manage sourcing events, and to integrate the awards into PeopleSoft One Procurement.
When awarding a buy event to an external purchasing system, the system creates an outbound PO message at the time of the award. No sourcing information is passed into PeopleSoft Purchasing. An inbound message from PeopleSoft One provides PeopleSoft Strategic Sourcing with the PO ID number from the external system for tracking purposes.