driving incremental value for your srm solution

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Headline goes here if needed

Copyright ©2012 Hubwoo, All rights reserved.

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August 30, 2012

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Agenda

• Hubwoo Cloud Procurement

• Real-World Success Stories – SRM in the Cloud

• Driving Incremental Value to your SRM


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115 large enterprise customers

Buyers located in over 70 countries

14 languages supported

24x7 buyer & supplier support

280 employees

Many-to-Many Hub of 200,000+ businesses

Two-sided business model

Commerce value > € 15 Billion / year

90 Million catalog items

300,000 users connected daily

Hubwoo is…

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The B2B Network Company

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Proud to Serve Many World Class

Multi-National Customers

http://www.caterpillar.com/home

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What Does Hubwoo Do?

Source Smarter

Buy Smarter

Pay Smarter

Market Smarter

Sell Smarter

Invoice Smarter

We Help Buyers We Help Sellers

Through

• Collaboration • Best in Class Processes • Usability • Business Services Framework


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Agenda

• Hubwoo, Connecting Companies™




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RBC at a Glance

Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries

operate under the master brand name RBC.

• Canada’s largest bank as measured by assets and market capitalization, and among the largest banks in the world, based on market capitalization.

• One of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis.

• Employ approximately 79,000 full-time and part-time employees who serve close to 18 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries.

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Key Challenges over the years

Business perspective: • Difficulty to deploy new categories of spend quickly

• Customizations open the door for more customizations

• Expensive infrastructure to maintain over the years

• Annual maintenance and development budgets difficult to forecast

Technical perspective: • Technical expertise difficult to retain and attract

• Software upgrades are tedious due to customization

• Tremendous work effort on testing required

• Lengthy time to market for new or enhanced functionalities

• Technology upgrades (Servers, network) forcing more due diligence

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Review of Alternatives

Needed to upgrade to the latest software release. Decided to review alternatives – Many customizations were not configurable on the latest software release

Reviewed possible solutions with different suppliers – Keeping the infrastructure behind the firewall

– Keeping the infrastructure behind the firewall but managed by a third party

– Hosting externally as a single implementation

– Hosting externally as a single implementation but managed by a third party

– Hosting externally on a multi tenant infrastructure

Reviewed all options looking at overall TCO, risks, business resumption, end user and supplier impact

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Strategy selected

Concluded on the Multi-Tenant environment with Hubwoo Hubwoo maintains the infrastructure, performs regular maintenance and software

release updates

Hubwoo is responsible for keeping and attracting knowledgeable technical employees

The predictable cost model for the infrastructure and Hubwoo services met their requirements

We only need to maintain the technical integration back to our SAP ERP

Single sign-on, IP level security and our on site security review met the level of risk we were comfortable with

Decided to upgrade Procure-to-Pay infrastructure to a Source-to- Pay Infrastructure which includes: SAP SRM – Online purchasing and Electronic Invoicing delivered On-Demand

SAP Sourcing & CLM – Projects, eRFx, eAuctions, Contract Authoring, Contract Compliance delivered On-Demand

Hubwoo Supplier Portal

Hubwoo’s application added functionality like Catalogue Management etc…

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“The Plateau Effect”

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Hubwoo

Others

Spe

nd

En

able

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Supplier paid model only High supplier transaction costs Insufficient SAP system integration

Inherent SAP Integration

Managed supplier on-

boarding, enablement, and support

Active catalog management and

centralization

Private marketplace to

eliminate supplier on-

boarding obstacles

Master data synchronization

Conditional logic to improve invoice matching accuracy

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Other Examples - Large Global CPG Company

Cloud Solutions SRM, - powered by SAP® software

The Business Network

- Catalog Content Management

- Invoice Management

Implementation - Go-Live: November, 2009

- Global Design, Phased Rollout Starting in US

- Integration to 4 backend systems

- Global supplier program

- 60,000 Suppliers to adopt in initial phase

- Change Management Campaign Globally

Metrics first 6 months:

- Global roll-out completed in NA (all sites) and

International

- 10,000 users

- 10,000+ transacting suppliers

- 14,000+ suppliers enabled globally

- 130,000 non-PO invoice suppliers

- 10,000 purchase orders / month

- 300 catalogs, 1M SKUs

- $100M in spend per month

- Global spend $566M

$11B Revenues

33,000 employees

Industry: Food & Beverage

HQ: Illinois (US)

Operations in more than 40 countries, selling products in over

180 nations worldwide, this CPG company has one of the

world’s best-loved and leading portfolios with its innovative and

trusted food and beverage brands.

http://www.saralee.com/OurBrands/ExploreOurBrands.aspx

http://www.saralee.com/en.aspx

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Leveraging Procurement with SRM in the Cloud 13


Outcomes of using Hubwoo P2P, SRM in the Cloud & the Business Network, in the Cloud

What could this mean for you?

Real life example: Multinational Manufacturing Company

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Spend Visibility

THEN

• 35 Catalogs - 80K Skus - $30M

• Inconsistent pricing - <10% of items selected from catalogs

• Broad category classifications

• Little to no data capture of mfr name, mfr number, and UNSPSC code.

– Review of supplier invoices

– Plant surveys

• Spend analysis by vendor, plant, description

NOW 100 Catalogs – 1M Skus – $200M Consistent pricing - 81% of items

selected from catalogs Specific classifications - UNSPSC Data capture of mfr name, mfr

number, UNSPSC code, SAP material number, etc

Spend analysis by – Vendor/business unit/plant – Category – Product – Average order size

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Maverick Spend

NOW More catalogs/skus – greater

visibility of products and pricing One system - easy ordering process 19% of orders reviewed by buyers

(FFEs) Adequate reporting to capture lost

savings and drive compliance

THEN

Less visibility of preferred suppliers, products, and pricing

Three systems for ordering

90% of orders reviewed by buyers

Inadequate reporting to capture lost savings

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Resources/Administrative

THEN 200 suppliers on board in 2 years Manual invoice posting by 6

people 3 people reviewing ~300

requisitions per day Countless hours collecting and

manipulating data for sourcing

NOW • 950 suppliers on board in 10

months • Electronic invoicing – reallocated

staff (3 people in 4 months) • Review of ~30 FFEs per day; more

time for sourcing • Spend analysis reports containing

data required for setting strategies and sourcing

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Value of Cloud SRM

• Quick implementation

• Ongoing support and application upgrades/enhancements

• Spend visibility to drive savings through vendor consolidation, standardization, and sourcing

• Frees up internal resources for other value-added activities

• Better compliance and controls through catalogs and easy-to-order application

• Improved business processes through best practices

• Faster on-boarding of suppliers and order automation

• Electronic invoicing

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Agenda

• Hubwoo, Connecting Companies™




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The Business Network Effect

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Connect Once — Connect All

Rapid Supplier On-Boarding

Transaction Automation

Catalog & Search

Master Data Exchange

High Transparency

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Additional Spend Categories and Wider Adoption

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Catalog Manager Collaboration solution to support the

content authoring workflow between suppliers and buyers

Validation of content against customer specific rules

Only approved supplier catalog items will show up in Catalog Search

• Search One user interface for all supplier catalogs

supporting cross-supplier shopping carts Provide all item information required for

simple and fast order process of goods and services

Quick Quote Provide controlled quick quote capability to

end-users to avoid free-form request Request can be send to several approved

suppliers to check for the best offer

Catalog & Search

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Holistic Invoice Management

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1. 100% Electronic Invoice Presentment

Integration to suppliers’ systems Portal: PO Flip, GR Flip, Invoice Entry Paper Invoice Processing Service / Mass

Invoice Upload

2. Invoice Validation “Pre-matching” based on buyer’s

business rules Validation to country-specific legal

requirements Advanced and qualified digital signatures

3. Invoice Matching & Reconciliation

Hubwoo on-demand matching

capabilities PCard Reconciliation based on Bank Card

Feeds ERP: Invoice pass-through to Accounts

Payable via eConnect integration

Strategy & Project Management

Implementation Supplier Enablement Integration Services Buyer & Supplier

Support

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New: Invoice & Payment Status

Business Purpose: Eliminate invoice & payment status inquiries to accounts payable dept.

• Provide invoice status information from buyer’s ERP(s) for ALL suppliers on The Business Network, independent of the various delivery and receive services (Hubwoo, Fax, Paper, entered into ERP, etc.)

• Pulls status info directly from customer ERP

• Hubwoo performs all supplier on-boarding to the Business Network

• Customer sends letter to suppliers that within 30 days it will no longer accept phone inquiries for invoice status and payment status.

• Linked Features: Alerts, Dispute Management, PDF upload

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Vision: Beyond Simple Procure-to-Pay

A Business Services Framework for Incremental Value

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+ Supply Chain optimization for direct materials

+ Supplier Risk Management

+ Big Data analytics tools for community buying,

benchmarking, global economy forecasts

+ Mobility to provide access for millions and enable

services

+ SMB access to expand the ecosystem

Today’s P2P Baseline

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PO / PO Change PO Response Advanced Ship Notice Goods Receipt Notice Service Entry Service Entry Response Invoice Invoice Response Credit Advice Payment Remittance Advice Master Data

RFx’s / Network Tendering Qualifications Scorecards Ratings Diversity Information Supply Risk Information Supplier Discovery Publish public tenders Add supplier to RFx Contract Collaboration Advertising Marketing Packages

VMI Forecast Collaboration Kanban Planning Schedules Payables Auctions Trade Financing Financial Risk Information Dynamic Discounting Commodity Price Trends Real Time credit scoring Factoring ….

Today 2012 2013

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Questions?


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Headline goes here if needed


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Contact Info: Tracy Cunningham Sales Director, UKIB [email protected] +44 (7776) 094 704

www.hubwoo.com [email protected]