​Oracle Procurement Cloud - the difference

Procurement more and more becomes a key player to collaboratively deliver innovation. Analytics and Collaboration tools are vital to fulfill this role.

Procurement Cloud has exciting functions that integrate Analytics and Collaboration tools in the application. With the open architecture of the Cloud Applications, you will be able to utilize the full integrated suite or choose a hybrid solution and select the modules you need now.

Be Prepared

The world is in motion and that certainly applies to the procurement domain. Insight in relevant information is crucial for procurement officers to take the daily strategic decisions. Insufficient or incorrect information causes eligible suppliers to be missed or sub-optimal deals to be closed. Missed information on quality issues or financial risks may have serious consequences for an organization.

As the availability of data is growing, the present challenge is to collect the relevant data and transform it into useful knowledge you can act on.

The end-to-end procurement process requires collaboration and data exchange throughout the process. Both with suppliers and within the organization.

Linking your communication to specific transactions is a must for effective collaboration and later reference.

Scattered and inefficient communication will cause: Process delays, Misunderstandings, Disputes during financial settlement, Loss of history.

New technology enables your organization to process data effectively and streamline the communication with your suppliers.

Procurement Cloud Solutions

Oracle’s Procurement Cloud has several functional advantages. I highlight two of those: Analytics and Collaboration.


Insight in business information is more important than ever in the world of procurement. Oracle is aware of this and has made it one of the key features of Oracle Procurement cloud.

New standard out-of-the-box reports and graphical dashboards like supplier performance data are available for procurement professionals and are now embedded in the Procurement Cloud.

Dashboards and other information is easily scalable to mobile devices. In this way, your agents in the field can make well informed decisions based on the latest data.


Next to analytics, another key feature of Oracle cloud is the new way to collaborate with colleagues and suppliers. It often happens that there is a communication gap between procurement and financial departments that causes issues for specific transactions or during the month-end closure.

To adapt to the need for more and faster ways to collaborate with colleagues and suppliers, Oracle has provided in-context social collaboration. Long e-mails are no longer required and important decisions can be made quicker and with all relevant information at hand.

With Oracle cloud, users can easily communicate with other colleagues through chat sessions on specific transactions. The same functionality exists for communicating with suppliers, through negotiation or the Supplier portal. All the communication on transactions is stored with the context and can be reviewed later to get the complete history of a transaction or contract.

Cloud Architecture

Oracle CEO Mark Hurd made a statement on Oracle Open World 2015: ‘By 2025, 80% of Production apps will be in the Cloud’.

I expect that by 2018, more than 80% of organizations will running a hybrid ERP model. In this hybrid model the applications which are centered around the people experience will be running in the cloud.

Until recent, organizations would implement a Procurement module as part of a “monolithic” ERP system, with all its risks, costs, long lead-time and challenges in flexibility.

Oracle’s Cloud solutions are highly integrated with each other to ensure an optimal view on the total process flow. However, they also have an open architecture that enables you to choose a hybrid solution combining a specific Cloud functionality like Sourcing, Contracts or full Procurement with the remaining processes supported by other applications. A versatile set of connection points is available to ensure the communication with those other applications.

Implementing a hybrid cloud solution avoids many disadvantages of a monolithic implementation. This hybrid approach also enables you to gradually adopt more cloud solutions along the way.

Implementation Strategy

The hybrid strategy can be either vertical: implementing a particular cloud solution for a business function throughout your organization or horizontal: implementing the full functionality for “all” functions of a particular organization unit.

The preference for each approach or full-scale implementation will differ case by case, depending on your particular requirements and situation (complexity of the organization, maturity of the current situation and business case).

Stay Current

Through Cloud Applications, you obtain a state of the art solution that will regularly be updated with manageable improvements. This means that you will stay current with your software up-to-date, including the latest security updates, regulations and enhanced functionality, without facing extensive upgrade or re-implementation projects.

(About the author: Jeroen Sprangers is a consultant with Capgemini. This post originally appeared on his Capgemini blog, which can be viewed here)

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