ardent partners presentation - sigsig.org/docs2/sig sap ariba 10232014 webinar.pdf · the sig...
TRANSCRIPT
The SIG Webinar will begin shortly.
Once the webinar begins, the sound
will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of these cities this fall.
NETWORKING EVENTS
GLOBAL SUMMITSMar 10-12 2015 – Amelia Island
SYMPOSIUMS
Oct 29 – New York
Nov 12 – San Francisco Bay Area
REGIONAL ROUNDTABLES
Nov 14 – Orange County
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special member
benefits
6 months of free
buy-side access (a
$30,000 value) to the
Vendor Evaluation &
Assessment Tool
(NEAT)
2 free Market Intelligence
Reports for Facilities
Management and
Application Software (a
$10,000 value)
supplemented with
quarterly updates and a
20% discount on any
additional report
subscriptions
For more information, go to: http://sig.org/provider-benefits
Complimentary due
diligence report and
analysis on a company
of your choice for a
deep look at the
potential risks you can
uncover within your
supply chain
RECENT POSTINGS
The SIG Career Network is
bursting with opportunities.
New jobs are posted daily by some of the best known global
companies in the world for those seeking careers in sourcing,
outsourcing, procurement and related functions.
For more information go to: www.sig/career-center.org
NEW to the Career Network!
• Wellmark – posted October 13:
• Asset Licensing Analyst
• AXIS Insurance – posted October 8:
• Category Manager – Indirect Services
• Sun Life Financial – posted October 7:
• Sourcing Specialist
• Motorists Insurance – posted October 7:
• Sourcing Manager
• LSI Industries – posted October 6:
• Junior Buyer/Planner
• PepsiCo – posted October 3:
• Global Procurement Senior Manager
• Huntington Bank – posted September 30:
• Senior Sourcing Manager
• GEP – posted September 26:
• Manager, Consulting
• Adobe Systems – posted September 23:
• Marketing Category Manager
New Topic Each Week
2:00 pm Eastern
(11:00 am Pacific)
Upcoming Free SIG Webinars:
October 28, 2014Realizing the Power of Market Intelligence in a Dynamic Global EconomyPresented by Denali Group
October 30, 2014Don’t Let the Affordable Care Act Turn Your Business Upside-DownPresented by PeopleFluent
November 4, 2014Best Practices when Contracting for Facilities Management Outsourcing: A Sourcing Integration StrategyPresented by Mayer Brown
Register at www.sig.org
For more information and to register for all SIG events:
www.sig.org
Upcoming Town Hall Teleconference:
November 12th
Best Practices for Risk Assessment
Presented by:
Cathy Luoma
Director, Sourcing & Procurement
American Family Insurance
SIG Town Hall Teleconferences
bring a small group of buy-side ONLY attendees together for a facilitated
discussion on top-of-mind issues in an open-mic, private conversation.
Town Hall Teleconferences are NOT recorded.
Calendar of Town Hall
TeleconferencesTaking place at 1:00 pm Eastern on
the following dates:
February 12 July 9
March 12 August 13
April 9 September 10
May 14 October 8
June 11 November 12
For more information and to register for all SIG events:
www.sig.org
SIG Symposiums and Regional Roundtables provide education and local
networking for members and invited non-member corporate users
Symposiums:
Minneapolis – Feb 6
Toronto, Canada – Jun 9
Columbus – Sep 24
New York– Oct 29
San Francisco Bay Area – Nov 12
Regional Roundtables:
Hartford – Mar 12
Seattle – Apr 30
Chicago – Jun 9
Orange County – Nov 14
For more information and to register for all SIG events:
www.sig.org
A SIG Global Summit is…
• Non-commercialized
• Almost 70% buy-side
• Global brands
• 3 days of networking
• Executive Roundtables
• Multiple keynote sessions
• Nearly 50 breakout sessions
69% at director level or above, of which 43% are VP/C-level
www.sig.org/summits.php
Source-to-SettleWhy It’s Time to Connect
the Last Mile
October 23rd, 2014
© 2011 SAP AG. All rights reserved. 10
Today’s Speakers
Global Vice President, Audience Marketing
for Line of Business Procurement
Emily drives the direction and market
awareness for the portfolio of procurement
solutions at SAP to ensure customer value
and business growth. She brings 20 years of
experience in high tech marketing and
management consulting to SAP, with prior
procurement and sourcing-focused
experience at several technology providers
such as Ariba and eBreviate as well as A.T.
Kearney. Emily has a degree in International
Relations as well as an MBA.
Emily [email protected]
Chief Research Officer & Founder
Andrew is a recognized expert in sourcing, AP
and supply management, having
benchmarked thousands of procurement and
finance departments. He has held leadership
roles in sales, marketing and services at Ariba
and Commerce One in addition to a consulting
and banking background. Andrew has been
named a SDCE “Pro to Know” three times,
and holds both a BA and MBA. Visit his blog
at www.cporising.com
Andrew [email protected]
© 2011 SAP AG. All rights reserved. 11
World Class Procurement Excellence
…is essential to be competitive
>85% Spend Under Management
8% Annual Recurring Savings
74% Compliant Spend
Source: Ardent Partners CPO Rising 2014
Are you World Class?
© 2011 SAP AG. All rights reserved. 12
The Business Case for Procurement Excellence
Spend Optimization Reliability Productivity Innovation
Improve spend
visibility
Increase internal
collaboration
Source more and
better
Identify and
mitigate supply
risk
Drive supplier
responsiveness
Improve quality
and consistency
Increase
operational
effectiveness
Integrate the
procurement
process
Leverage team
knowledge
Focus on revenue
generation
Use supplier know-
how and reward
innovation
Promote
sustainability
© 2011 SAP AG. All rights reserved. 13
Inefficient source-to-pay processes result in high costs
Inconsistent, Incomplete,
and Unclassified Data
Limited Cost Savings
Poor Contract
Management
High Procure-to-Pay
Process Costs and
Adoption Challenges
Lack of Supplier
Management and
Collaboration
Corporate
buyers
SuppliersCategory managers
Production
Chief
procurement
officer
Contract
managers
Contract
Mgmt
Supply ChainProduct
Development
FinanceCost
Accounting
Strategic
Sourcing
Supplier Management
Spend Analysis
Procure-to-Pay
© 2011 SAP AG. All rights reserved. 14
Efficient source-to-pay processes ensure cost savings
Achieve Consistent,
Complete, and Classified
Data
Ensure Sustainable Cost
Savings
Achieve Comprehensive
Contract Management
Reduce Procure-to-Pay
Processing Costs and
Gain High Adoption
Manage Suppliers and
Collaborate Effectively
Corporate buyers
SuppliersCategory managers
Production
Chief
procurement
officer
Contract
managers
Supply ChainProduct
Development
FinanceCost
Accounting
Contract
Mgmt
Strategic
Sourcing
Supplier Management
Spend Analysis
Procure-to-Pay
© 2011 SAP AG. All rights reserved. 15
Let’s get tactical – what does real process integration
mean?
Contract
Mgmt
Spend
AnalyticsSourcing
Operational
Procurement
Invoice
Mgmt &
Payments
Supplier
Management
• Create a sourcing
project from a
report (bringing
over items,
current prices,
total spend,
supplier lists)
• Bring spend
analysis reports
into project
workspace as
reference
• If needed, bring
direct material
information from
MM type module
into sourcing
event
• Place standard
contract clauses
into RFP for pre-
agreement
• Bring items,
prices, awarded
suppliers directly
onto draft
contracts
• Bring RFP
responses into
contract as
clauses / SLAs
• Establish vendor
for procurement
use
• Bring approved
contract items,
prices and
payment terms
into global
‘operational
agreements’ /
material info
records
• Publish items /
pricing into
catalogs for use
by employees
• Automated PO
collaboration
• Automated PO or
contract flip
available to
ensure accuracy
• Disputes resolved
collaboratively /
visibly
• Evaluated receipt
settlement when
possible
• Supplier
performance
reported against
spend amounts,
used in sourcing
events, included
as contract SLAs
• Supplier master
data maintained
throughout all
records
• One place to see
all supplier
interactions
© 2011 SAP AG. All rights reserved. 16
Integration Status Poll
This isn’t even a major consideration yet
Manual handoffs or very separate applications
Automated integration in a few places, but not the whole
process
Fairly clean end-to-end automated integration
How closely integrated are your source to pay processes?
think BIGStart Small&
Considerations
On Demand Solutions
Modular Capabilities
Integrated, End to End Suite
Global Footprint / Compliance
Shared Service / Multi-Backend
18
AGENDA
The Current State of “Source-to-Settle“
Why it’s Time to Connect the Last Mile
Designing for “Source-to-Settle” Success
Copyright © 2014 - Ardent Partners Ltd.
19
WHAT DO WE MEAN BY SOURCE-TO-SETTLE?
Spend
AnalysisSourcing
Contract
ManagementProcurement Accounts
Payables
Copyright © 2014 - Ardent Partners Ltd.
Source to Settle
20
TOP CPO PRIORITIES (NEXT THREE YEARS)
Copyright © 2014 - Ardent Partners Ltd.
©Ardent Partners - 2014
Innovation
21
TOP STRATEGIES FOR CPOS IN 2014
Copyright © 2014 - Ardent Partners Ltd.
55%
47%
42%
32%31% 31%
Improvecollaborationwith business
Improvecollaborationwith suppliers
Improve use oftechnology (buynew systems /
improve currentones)
Implementstronger
policies andprocesses
Improvecollaborationwith the CFO
and otherexecutives
Optimize currentsystems and
processes
© Ardent Partners - 2014
Collaboration
22
AP’S TOP PRIORITIES IN 2014
Copyright © 2014 - Ardent Partners Ltd.
23%
25%
27%
31%
37%
63%
Generate discounts on spend
Better link P2P processes and systems
Improve collaboration/communication withprocurement
Improve visibility into invoice and paymentdata
Improve reporting and analytics around AP
Reduce processing costs
© Ardent Partners - 2014
23
THAT PERSISTENT PAPER PROBLEM
Copyright © 2014- Ardent Partners Ltd.
70%
30%
Manual Electronic
© Ardent Partners - 2014
Invoice Formats Payment Formats
44%56%
Manual Electronic
© Ardent Partners - 2014
24
THE BENEFITS OF ELECTRONIC PAYMENTS
24% of all AP groups report
increased accuracy and control
of payment delivery
24% 45% 51%
24
45% of AP groups say that
electronic payments enable
more efficient and streamlined
processing (e.g., review,
approval, execution).
51% of enterprises rate cost
savings as the top benefit seen
from electronic payments
25 25
Greater
involvement in
working capital
optimization
Skill set
required within
AP will change
Stronger AP &
Procurement
partnership
AP process will
be largely
automated
AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3 YEARS)
83% 69% 66% 57%
26
1 IN 5 CPOS OWNS ACCOUNTS PAYABLE
Copyright © 2014 - Ardent Partners Ltd.
27
SUITE ADOPTION RATES
Copyright © 2014 - Ardent Partners Ltd.
43.4%
35.9%
19.9%
Integrated Procure-to-PaySuite
Integrated StrategicSourcing Suite
Integrated Source-to-SettleSuite
© Ardent Partners - 2014
28
S2S: WHY IT’S TIME TO CONNECT
THE LAST MILE
29
WHY SOURCE-TO-SETTLE MATTERS?
Copyright © 2014 - Ardent Partners Ltd.
30
WHY SOURCE-TO-SETTLE MATTERS?
Copyright © 2014 - Ardent Partners Ltd.
31
WHY SOURCE-TO-SETTLE MATTERS?
Copyright © 2014 - Ardent Partners Ltd.
22%
4%
2006 2011
Motorola Market Share: Mobile Phones
32
WHY SOURCE-TO-SETTLE MATTERS?
Copyright © 2014 - Ardent Partners Ltd.
22%
4%
2006 2011
Motorola Market Share: Mobile Phones
33
WHY SOURCE-TO-SETTLE MATTERS?
Copyright © 2014 - Ardent Partners Ltd.
22%
4%
2006 2011
Motorola Market Share: Mobile Phones Key Takeaways:
Joy’s Law: “Innovation will happen, and it
will happen elsewhere.”
Innovation extends to all supply markets
A ‘static “supply base is now a red flag
No company can risk going it alone
Increasing reliance on suppliers
Suppliers are partners assets
34
WHY IT’S TIME TO CONNECT THE LAST MILE
Spend
AnalysisSourcing
Contract
ManagementProcurement Accounts
Payables
Copyright © 2014 - Ardent Partners Ltd.
Seamless processes capture and retain value
• Efficiently
• Effectively
• Repeatable
• Scalable
Automation amplifies and accelerates the benefits
© 2011 SAP AG. All rights reserved. 35
Impact on Savings Poll
We probably lose over 50% of negotiated savings
We probably lose over 25% of negotiated savings
We probably lose over 10% of negotiated savings
No leakage – we’re rock stars
How much of your negotiated savings do you believe is lost along the
process (between sourcing/contracts, or contracts/procurement, or
procurement/payment)?
36
WHY IT’S TIME: 4 PROOF POINTS
Spend
AnalysisSourcing
Contract
Mgmt.Procurement Accounts
Payables
Copyright © 2014 - Ardent Partners Ltd.
• Enterprises that leverage spend analysis into their sourcing
projects save, on average, between 24% - 41% more per
project
• Eliminating any sourcing/contract process gap can reduce
savings leakage by up to 38%
• Best-in-Class enterprises report compliance rates that are
20%+ superior
• Linking and automating the P2P process can reduce invoice
cost by 40% to 70%
37
DESIGNING FOR S2S SUCCESS
38
RECOMMENDATIONS
Begin building your S2S business case today
Develop an S2S blueprint with the end-state in mind
Place any current programs, systems and processes
into a larger source-to-settle context
Look beyond savings
Improve communication and collaboration with internal
AND external stakeholders
Embed the procurement staff in the business
Copyright © 2014- Ardent Partners Ltd.
© 2011 SAP AG. All rights reserved. 39
Thank You.
Questions?