Oracle Fusion Redwood Sourcing – Negotiation Step-by-Step Guide

Summary: Oracle Fusion Redwood Sourcing – Negotiation to Pay Process

This blog provides a complete step-by-step walkthrough of the Oracle Fusion Redwood Sourcing Negotiation process, demonstrating how an RFQ is created, published, evaluated, awarded, and converted into a Purchase Order. The flow begins with a business requirement submitted through a Purchase Requisition, followed by the initiation of a sourcing negotiation by the Procurement team.

Readers learn how to:

• Create and customize Negotiation Templates

• Configure Cover Page, Requirements, Terms, Lines, and Suppliers

• Publish negotiations and manage approvals

• Capture supplier responses through the Supplier Portal and Surrogate Response

• Evaluate bids using ranking, scoring, and automatic award recommendations

• Award a negotiation and generate the Purchase Order

• Complete the procurement lifecycle through receipt, invoicing, and payment

Overall, the article explains how Oracle Fusion simplifies strategic sourcing by automating supplier engagement, enabling objective bid comparison, and seamlessly integrating the award outcome with the downstream Procure-to-Pay (P2P) process. This ensures that organizations achieve the best supplier value while maintaining transparency, compliance, and efficiency.

Introduciton to Supplier Sourcing

Oracle Fusion Sourcing and Negotiation is a key feature within Oracle Fusion SCM Procurement. It supports strategic sourcing by helping organizations obtain the best pricing, terms, and conditions through RFIs, RFQs, auctions, and structured supplier interactions.
It streamlines the entire process—from engaging suppliers to evaluating responses and awarding contracts.

Negotiations

The following are the standard negotiation types available.
For this walkthrough, I will use RFQ.

 

Type	Details
RFI	Used to collect information and qualify suppliers. RFIs focus on supplier capabilities, experience, and offerings—not pricing or quantities.
RFQ	A formal document requesting quotations from one or more suppliers. RFQs support complex requirements, multiple negotiation rounds, and can be blind (only buyer sees responses) or sealed (responses hidden from both sides until opened).
Auction	A competitive bidding event where suppliers submit bids within a defined timeframe.

 

Detailed steps for testing scenario

Role required

·       Buyer

·       Category Manager

 

Manage Negotiation Templates

Oracle provides several standard templates. You may use any of them, but for training purposes I am creating a new one by copying existing one.

Steps:

1. Go to Sourcing Home Page.
2. From the Task Panel, select Manage Negotiation Templates.
3. Create a new template or copy an existing one.
4. Select a standard template and click Copy.
5. Update the details as required.
6. Click Create to open the new train page.

 

Cover Page

After you paste a cover page text, You can add formatted text and variables (such as negotiation expiry date, award date, etc.) using the Insert Variable option.

Sample Cover Page Used in this Test:

 

GERAB National Enterprises – Test
Request For Quote:  Laptop Procurement

Purpose:
To identify the supplier offering the best quality and value for laptops.

Vision issues this RFQ to invite qualified suppliers to submit their best possible commercial proposals. It is in the Supplier's best interest make sure that the initial response to this RFQ contains the most favorable terms that your company will be able to offer Vision.

Vision evaluates suppliers based on (not in order of priority):

• Industry experience
• Financial stability
• Compliance with RFQ requirements
• Understanding of project goals and timelines
• Acceptance of Vision’s contract terms
• Competitive pricing
• Client references

 

Next Page Setup

I kept:

• Access: Public
• Global Template: No (restricted to US1 Business Unit)

Open Immediately: Negotiation opens automatically after activation.
Response Visibility: Set to Blind.

• Blind: Buyer sees responses; suppliers cannot view each other’s bids.

·       Sealed: Neither buyer nor suppliers can view responses until unsealed. (Buyers need to unseal the negotiation to see the responses)

 

Other attributes were configured as shown in the screenshot.

 

 

Terms Page

Here you can default:

• Payment Terms
• Freight Terms
• Shipping Instructions

Requirements

This section stores requirement questions and specifications. These are configured under:

• Manage Attribute Lists
• Manage Attribute Groups

I selected some of the seeded attributes for this test.

 

Lines

For this template, I did not add lines.
Lines will come directly from the Purchase Requisition or can be added by the Buyer during negotiation.

 

Contract Terms

Contract Terms are not needed for this test scenario.

Suppliers

I added five suppliers for testing as shown in the screenshot.

Review & Activate

Review all details and activate the template.

 

Creating a Test Scenario

Negotiations may be initiated:

• Directly by Sourcing team, or
• Automatically from a requisition

Here, a requisition is submitted by Brock Philips (Project Manager) for a large laptop requirement.

1. Buyer opens Process Requisition (New).
2. Selects the requisition and chooses Stage.

 

As the requester marked “Negotiation Required,” the Initiate Negotiation option appears automatically.

Review and publish the staged action.

A new negotiation is now automatically created from the requisition.

 

Preparing Negotiation (Redwood UI)

Navigate to:
Procurement → Sourcing (New) → Negotiation (New)

The Redwood negotiation train page opens.

System automatically defaults:

• Negotiation Template
• Outcome
• Dates (Open, Close, Award)

Set the target price and starting price.

You can download/import line items using the provided template.

 

You can add line-level attributes and groups as required.

Requirement section and cover page text are copied from the template.

You can also use the AI Assistant for Synopsis and cover page enhancements.

Suppliers are also copied from the template, with the option to add or remove.

 

Collaboration Team

Add team members for internal collaboration.
Control their:

• Access level
• Price visibility
• Task assignments with due dates

Controls & Terms

Configure controls and terms as necessary.

Review & Publish

There are two approvals:

1. Negotiation Approval
2. Award Approval

In this environment, approval is required only for amounts ≥ USD 50,000. This scenario is for less than 50K and will automatically approve.

Submit the negotiation for approval.

 

Once approved, the negotiation becomes Active and Open for suppliers.

Supplier Responses

Suppliers receive invitations via Supplier Portal.

For the test:

• Some responses were submitted from Supplier Portal
• Remaining responses were entered using Surrogate Response

Example:
Log in as Lee Supplies, accept the invitation, and submit:

For other suppliers, use Create Surrogate Response.

 

 

 

Now fill in the questionnaire

 

Pricing and Quantities

Line Attribute

 

 

For other suppliers, use Create Surrogate Response.

 

Monitoring Negotiation

On the Redwood Negotiation page, select Monitor.

Dashboard shows:

• Supplier responses
• Ranking
• Lowest price (e.g., RJK Inc ranked first)

 

Line Summary shows supplier ranking per line.

Once all suppliers have responded, close the negotiation.

Awarding Negotiation (Classic UI)

Awarding is currently done through the classic page.

1. Search for negotiation → Status = Closed
2. Select Award Negotiation from Tasks

1. Review supplier ranking and scores
2. Click Award
3. Submit for Award Approval

Category Manager approves the award

You can view more details under Automatic Award Recommendation.

This is the dashboard for Automatic Award Recommendation,

We can see that Status is Award Approved

 

 

Completing the Award

Choose the Outcome:

• I selected Create Purchasing Document Now
• Enable Notify Supplier
• Click OK, then Submit

A draft Purchase Order is automatically created according to the template.

Negotiation status updates to Completed, and the P2P cycle continues from the created PO.

 

 

Conclusion

This completes the end-to-end testing of Oracle Fusion Redwood Sourcing Negotiation.
If you notice any errors or require further clarification, feel free to share your feedback.

For more detailed information, refer to Oracle Documentation.