Oracle Cloud has introduced a groundbreaking concept known as “Touchless Buying.” This innovative approach revolutionizes the purchasing process by eliminating the need for manual intervention.
In essence, Touchless Buying allows for the seamless transformation of an approved requisition into a purchase order, all without the involvement of human agents. This automated order-creation process operates effortlessly, requiring no manual input from procurement agents. It streamlines the entire workflow, ensuring efficiency and accuracy at every step.
Automated ordering, also known as touchless purchasing, replicates the manual process through the following steps:
- Identifying a supplier to procure the necessary items from.
- Establishing an agreement with the supplier to define terms and conditions, which encompass pricing and other relevant details.
Setting up for Touchless Buying Process
To enable the Touchless Buying process, several configurations are necessary:
- Enable the Negotiated check box in the Requisition Form Level
Fig .1: Negotiated check box in requisition form
- Enable ‘Auto Generate orders from requested-negotiated requisition lines’ in Configure Procurement Business Function Setup
- Enable ‘Bypass approvals for automatically submitted orders’ in Configure Procurement Business Function Setup
Fig.2: Configure Procurement Business Function Setup
- Ensure a default buyer is defined in any of the below-mentioned places and after that, the PO will generate automatically. The defaulting of the buyer works as follows.
– From Buyer Assignment Rules Setup
– From the Buyer assigned to the Item on the Item Definition in the Delivery –To Org selected on the Requisition line.
– From the Procurement BU’s Default Buyer –
Navigation: Setup & Maintenance: Configure Procurement Business Function
Fig 3. Configure Procurement Business Function Setup
Functional Workflow of Touchless Buying Process
Here’s a simplified workflow for using Touchless Buying:
Requisition Creation with the below process
- Begin by providing essential details like Item, Description, Quantity, Price Details
- Enable the “Negotiated” Check box
- Provide Supplier and Site details
- Provide Buyer details
- Add to Cart and Submit it.
Requisition Creation Steps
- Navigation: Procurement > Purchase Requisitions
Fig.4: Purchase Requisition Creation Screen
- Go to “More Tasks” and click “Enter Requisition Line”
Fig.5: Enter Requisition Line Page
- In the Enter Requisition Line Page, input the Item number, description, quantity, and price.
- Enable the “Negotiated” checkbox in the Requisition Line Form.
Fig.6: Requisition Line Form page
- Provide the Supplier Details
Fig.7: Supplier and Supplier Site Details
Fig.8: Adding into the Cart
Fig.9: Requisition Submitted Confirmation
Verification and Purchase Order Creation:
- Verify with the requisition number in the Manage Orders Screen
- To do this, navigate to Procurement> Purchase Orders
- Access the Purchase Orders Creation Screen.
Fig .10: Purchase Orders Creation Screen
- Provide the requisition number in the Requisition Field and Click on Search
Fig.11: Manage Orders Screen for Searching Purchase Order
- Purchase Order will be created automatically with a Touchless buying process without a Source Agreement (BPA)
Fig.12: Purchase Order Validation
Roles and Privileges
- Requisition Creation- Procurement Requester
- Destination Type Modification- Advanced Procurement Requester
- Every requisition line needs to have an approved buyer and the best possible supplier or supplier site.
- Requisition lines shouldn’t demand a negotiation phase.
- If a requisition line includes a particular item, that item must be accessible for purchase within the default inventory organization of the designated procurement business unit.
Here are the business benefits of Oracle ERP cloud touchless buying:
Seamless Transition from Requisitions to Purchase Orders
Imagine a scenario where requisition lines are marked as “Negotiated,” and without the need for any purchase agreement reference, they seamlessly transform into purchase orders. This eliminates the delays and complexities associated with manual interventions.
Empowering Touchless Buying
The key to this automated magic lies in enabling the “Negotiated” checkbox. When activated, this feature signifies that all prices have been diligently negotiated with the supplier, allowing for a touchless buying experience. This not only accelerates the procurement process but also enhances accuracy and compliance.
The Bottom Line:
Oracle ERP Cloud’s Touchless Buying represents a significant leap forward in procurement efficiency. By automating the transition from requisitions to purchase orders and empowering touchless buying, organizations can simplify their procurement processes, reduce manual work, eliminate delays, and improve accuracy and compliance. Embracing this innovative approach can revolutionize how businesses manage their purchasing operations, making them more efficient and agile in the modern business landscape.
Author: Srinivas Mamidi, Oracle Cloud SCM Functional Consultant