Oracle Procurement Cloud & JD Edwards: In-Depth Look at Skanska USA – Webcast Replay
Skanska USA faced multiple problems, largely because of scalability issues. It had made 20 different acquisitions, challenging in and of itself, with each of its five regions in the United States following different procedures without any standardized best practices. Because of this unfettered growth, it was unable to track relevant information effectively enough, leading to costly government fines. As the enterprise continued to grow, it needed to ship labor resources across the country, making the need for standardization even more crucial.
The company required something much more than an IT solution and/or ERP implementation. It needed, as the company’s leadership was very willing to admit, an entire transformation.
To follow its journey, watch this helpful hour-long video titled “Procurement Cloud Excellence for JD Edwards Customers” in which representatives from Oracle, Skanska, and CSS each provide information, including a high-level demo of the Oracle Cloud.
This blog post provides highlights of the video, including a timeline of events.
Timeline for ERP Solution/Cloud Procurement Solutions
In 2013, Skanska internally began discussing its scalability-related problems and by June 2014, it received initial funding from which it created an RFP for software selection, hired a full-time project manager, and more. As the company reviewed its procurement-to-pay process, it came up with 400 “showstopper requirements” for its software. It spent the next year and a half watching demos before choosing JD Edwards EnterpriseOne 9.2 as its ERP solution, one that serves as the basis of all that Skanska does, and that addressed approximately 85 percent of its challenges.
ERP implementation began in July 2016, with rollouts occurring through the end of 2017. All went well, but a significant problem still existed: effective and efficient tracking of the company’s participation in the government’s Disadvantaged Business Enterprise (DBE) Program. DBE is, as described by EPA.gov, “an outreach, education and goals program designed to increase and encourage the utilization and participation of DBEs in procurements.”
Skanska was appropriately using DBEs as subcontractors and suppliers, but it did not have the processes and systems in place to track the information needed for reporting purposes. To appropriately source and qualify suppliers, and address its tracking/reporting requirements, it ultimately chose to use two Cloud procurement solutions: Oracle Fusion Supplier Qualification Management Cloud Service (Cloud SQM) and Cloud Procurement. This hybrid Cloud solution was seamlessly integrated with JD Edwards ERP, rolled out and implemented in easy-to-manage phases.
The need for Cloud SQM was discovered as CSS worked with functional teams from Skanska on developing best practices. Through this process, procurement team members identified even more requirements for contract management, terms and conditions, and more, beyond the 400 or so that were initially identified. It also identified the need for a portal, in large part because seven different parties sometimes redline large contracts at Skanska during the negotiation cycles with suppliers and subcontractors.
For More Information
You can find more detailed information about Skanska USA in our case study.
Every dollar saved in procurement goes directly to the bottom line, and you can choose only the procurement modules you need, whether that’s one of them, all of them, or somewhere in between.
Cloud applications allow enterprises to benefit even more quickly from functionality, and that functionality is continually up to date. Modern interfaces make it even easier for suppliers and subcontractors to use the applications, and Oracle Cloud solutions provide high levels of security, even with mobile use. These solutions seamlessly integrate with ERP solutions while creating a single source of visibility into everything you need to know about your suppliers.
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