Below is what I did to apply patches to WL 8.1 SP2. Is there a better way?
Best Practice? Thanks in advance.

1) Created directory.
C:\bea\weblogic81\server\lib\patches

2) Copied jar files to patches directory.
CR127930_81sp2.jar
CR124746_81sp2.jar

3) Modified startWebLogic.cmd to include jar files first in the classpath.
set
CLASSPATH=%WL_HOME%\server\lib\patches\CR124746_81 sp2.jar;%WL_HOME%\server\l
ib\patches\CR127930_81sp2.jar;%WEBLOGIC_CLASSPATH% ;%POINTBASE_CLASSPATH%;%JA
VA_HOME%\jre\lib\rt.jar;%WL_HOME%\server\lib\webse rvices.jar;%CLASSPATH%

4) Restarted server and saw in console that the patches were applied.