Help Home/Creating Negotiations

Suppliers in remote locations who are not able to connect with the buyer organization via a portal submit their quotes in the form of sealed envelopes (hard copy), or email to the buyer organization. Buyers receive two sealed envelopes, or email - one for the technical quote and one for the commercial quote from each supplier.

The Two-Stage Surrogate Quote functionality allows buyers to enter the technical information, and the commercial information for a two-stage RFQ on behalf of a supplier. In the technical stage, a buyer enters the technical offer submitted by a supplier in Oracle Sourcing. The supplier's technical offer is evaluated and if it is found acceptable it is shortlisted for the commercial round. In the commercial evaluation process, the buyer enters the supplier's commercial offer in Oracle Sourcing and evaluates it. If both the technical quote, and the commercial quote are found acceptable, the supplier is awarded the order.

Technical Quote Round

The technical round is the supplier's response to the RFQ that addresses the technical requirements and other legal and contractual terms that pertain to the sourcing negotiation. Some of the technical quote considerations include:

• Technical Merit

• Quality

• Global Capacity

• Risk Management

• Past History

• Performance

Commercial Quote Round

The commercial round is the supplier's response to the RFQ that addresses only the price, and the other commercial terms such as:

• Taxes

• Import Duties

• Other Government Levies

• Transportation

• Other Charges Associated with a line item

This may also address terms like delivery schedules and other logistics aspects related to the items.

Using the Two-Stage Surrogate Quote in Oracle Sourcing

   Pre-requisites:

The following are the pre-requisites for entering the two-stage surrogate quote in Oracle Sourcing.

• You need to select Unlock Stage: Technical option from the Actions list to enable the buyer to enter the Surrogate Quote-Technical round.

• You need to select Unlock Stage: Commercial option from the Actions list to enable the buyer to enter the Surrogate Quote-Commercial round.

The process of creating and using Two-Stage Surrogate Quote in Oracle Sourcing is as follows:

   To create the Surrogate Quote-Technical round:

1. Select a Two-stage RFQ.

2. Select Create Surrogate Quote-Technical action and click Go.

3. Select a supplier to enter the technical information.

4. Enter value for the technical requirement.

5. Enter technical information at the line level.

6. Enter note to the buyer.

7. View the technical information. The commercial information is hidden.

8. Submit the technical quote.

   To create the Surrogate Quote-Commercial round:

1. Select a Two-stage RFQ.

2. Select the Create Surrogate Quote-Commercial action and click Go.

3. You can select a supplier from the shortlisted suppliers and choose the Create Surrogate Quote-Commercial option. The shortlisted suppliers are defaulted from the technical round.

4. Enter value for a commercial quote. You cannot update the technical round details.

5. Review the technical, and the commercial information. The technical, and the commercial round information are displayed at the header, and the line level.

6. Submit the commercial quote.

7. Review the technical, and the commercial quote using the Negotiations tab.

Creating the Two-Stage Surrogate Quote:

   Pre-requisites:

The following are the pre-requisites for entering the two-stage surrogate quote in Oracle Sourcing.

• You need to select Unlock Stage: Technical option from the Actions list to enable the buyer to enter the Surrogate Quote-Technical round.

• You need to select Unlock Stage: Commercial option from the Actions list to enable the buyer to enter the Surrogate Quote-Commercial round.

   Entering Evaluation Criteria for Two-Stage Surrogate Quote:

The Two-Stage RFQ functionality enables you to evaluate supplier responses in the technical and the commercial stage based on the scoring criteria that you enter while creating a Two-Stage RFQ.

You can enter the line attributes as part of the technical round consideration and you can enter price tiers as part of the commercial round stage.

Please refer to the Using Two-Stage RFQs section for more information on Two-Stage RFQs.

   XML Spreadsheet Support:

You can import the two-stage surrogate quotes using a spreadsheet template with following options:

• Include the user preferences in the excel for date and date/time.

• Explain the difference between rich style and lightweight style.

• Limitation due to Excel's limit of 65000 rows per worksheet, and the 42000 rows verification.

• Limitation of maximum number of characters to 21 in the worksheet name in case of using multiple worksheets for Attributes Scoring.

   To create the Surrogate Quote-Technical round:

1. Navigate to the negotiations page.

2. Search for a Two-Stage RFQ with the status as Evaluation Process - Technical or Evaluation Process - Technical (Unseal).

3. From the Actions list select Create Surrogate Quote-Technical option and click Go.

4. The Create Surrogate Quote-Technical: Select Supplier and Contact page appears.

5. Enter the search criteria for the desired supplier and click Go.

6. Select the supplier and choose Create Surrogate Quote-Technical. The Terms and Conditions page displays.

7. Click Accept. The Create Quote page displays.

8. Enter a valid date for the Quote Received Time. Required.

   Note: The Quote Received time should be between the RFQ: Open Date and RFQ: Close Date and it should be less than the system date.

9. Enter a valid date for the Quote Valid Until. Required.

10. Enter the value for Reference Number and Note to Buyer fields. Optional.

11. Select an Attachments type. For example, Desktop Files. Optional.

12. Click Lines tab and choose the Update pencil icon to enter the value for all the required Attributes. Required.

13. Enter a Quote Quantity for the line. Required.

14. Enter the Promise Date for the quote. Required.

    Note: The promised date must be greater than the current date and time for a line.

15. Click Continue. The Create Bid: Review and Submit page appears.

16. Click Submit to create a Surrogate Quote: Technical round.

    Note: You can create the Surrogate Quote - Commercial round only after you enter the Surrogate Quote-Technical round details and complete the Surrogate Quote- Technical round.

To complete the Surrogate Quote-Technical round:

1. From the Actions list select Complete Evaluation-Technical option and click Go.

2. The Evaluation Complete: Technical page appears.

3. Click Complete to complete the creation of Surrogate Quote: Technical round.

To create the Surrogate Quote-Commercial round:

1. Once you complete the Surrogate Quote: Technical round.

2. From the Actions list select Unlock Stage: Commercial option and click Go.

3. After the commercial stage is unlocked, from the Action list select the Create Surrogate Quote: Commercial option and click Go.

4. The Create Surrogate Quote-Commercial: Select Supplier and Contact page appears.

   Note: The shortlisted suppliers are defaulted from the Surrogate Quote: Technical round and you can select the desired supplier from the list. You can select a supplier from the shortlist for whom a surrogate quote technical round is completed.

5. Select a supplier and choose Create Surrogate Quote- Commercial. The Create Quote page appears.

6. Enter the value for the Commercial Requirements field. Required.

7. From the Lines tab choose the Update pencil icon to update the commercial round information.

8. Enter the Line Price value. Required.

9. Enter the Administration Fee value as the percentage of the line price. Required.

10. Enter the Quantity Based Price Tiers value, such as Minimum Quantity, Maximum Quantity, and Price for each unit. Optional

    Note: The quantity entered for line must be equal to the maximum quantity entered in the Quantity Based Price Tiers. The price value entered in the Quantity Based Price Tiers must be equal to Line Price value.

11. Enter Note to the buyer. Optional

12. Add an attachment if desired. Optional.

13. Choose Apply.

14. Choose Continue.

15. The Create Bid: Review and Submit page appears.

16. Click Submit to create a Surrogate Quote: Commercial round.

Managing Two-Stage Surrogate Quote draft responses

You can view the two-stage surrogate quote responses with following statuses:

1. Draft Technical Surrogate Quote, Submitted Technical Surrogate Quote, Draft Commercial Surrogate Quote, and Submitted Commercial Surrogate Quote.

2. Draft Technical Surrogate Quote and Draft Commercial Surrogate Quote statuses at the technical round, and the commercial round respectively.

3. Draft Technical Surrogate Quote status after the Evaluation Complete: Technical stage. Draft Commercial Surrogate Quote status after the Commercial Award.