session 2004 ibm ibm emptoris supplier management … · 2016-10-31 · active contracts purchase...
TRANSCRIPT
Amelia Carruth
IBM Emptoris: Transforming Supplier Management
Please Note:
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IBM Procurement Overview
3
The IBM S2P Emptoris Transformation Team
Susan Pichini, Emptoris Program Manager
Amelia Carruth, Emptoris SLM Project Lead
Sandy Chockla, Emptoris Sourcing Project Lead
Amy Cossa, Emptoris PGM Project Lead
4
Globally Integrated Enterprise Smarter Procurement Cognitive Procurement
• Watson Enabled analytics
• Network orchestration
• Agile / resilient
• Visibility / transparency
• Data driven / digitally
executed
• IPS: IBM Procurement
Services available to clients
• Enterprise
efficiencies
• Streamlined
global processes
• Information
sharing
• Advanced analytics,
optimization, Big
Data management
• Supply Chain
transparancy
• Multi-enterprise
supply chain
transformation
36 Plants 300+ Operation Centers
9 Plants 5 Operation Centers
4
Global Procurement Journey � a continuous transformation
Active ContractsPurchase
Orders
Client Wins
supported
Spend
Managed
IBM procurement’s transformational journey continues to provide results.
6
6
BEFORE TODAY
148k 1,120k 2213 $49.7B
Cost Savings Contribution ? $7.2B
Average Payment Terms 30.0 Days 59.6 Days
Sourcing Expertise In Place <10% 100%
Supplier Network No Global (14K)
Client Satisfaction < 50% 92.8%
Contract ManagementNon-std / Manual
Enterprise Contract Management
PO Processing Cycle Time 5-30 Days Hours
Electronic Purchase Orders to Suppliers 30% 100%
Buyer-less (“Hands-Free”) Transactions 0% >90%
Electronic Invoices <20% 96%
Data Warehouse Manual Integrated
Compliance 50% >99%
2012 2013 - 2014 2015 - 2016 2017+
Limited Integration Emptoris Suite Integrated Full E2E Integration
• Global Integrated
Contracts Mgmt and
Sourcing enablement
• Common and
integrated
foundational data
• Streamlined supplier
onboarding process
• Integrated supplier
onboarding process
• Integrated audit and
compliance
documentation process
• Improved data continuity,
visibility and analytics
• Further exploitation of
Contract Mgmt, Sourcing
and Supplier Lifecycle
Management
Demonstrate robust value of
Emptoris capability
Demonstrate robust value of
Emptoris capability
Effort to position
savings
Effort to position
savings
Adopt, integrate and
commercialize
Adopt, integrate and
commercialize
7
Custom Code Software as a Service Cognitive
• E2E S2P
process
documentation &
business case
• Sourcing RFx
enablement
• Full Emptoris Strategic
Supply Mgmt integration
• Establish Emptoris as our
S2P cognitive decision
platform based on structure
and unstructured sourcing,
contract, supplier and
compliance data contained
in Emptoris.
• Enable improved sourcing
decisions and provide the
basis for other
procurement insights
through cognitive decision
platform.
We are
here
Our Emptoris roadmap is integral to our transformational journey to a cognitive
business
8
Program & Request Mgmt
+Sourcing project management and savings
+Source Selection / Fair Value process
+Reduced risk
+Decrease requisition-to-PO cycle
Sourcing RFx
+Standard RFx templates
+Enforced standardized supplier responses
+Single centralized db for RFx events
+Increased data visibility and improved analytics
+7,250 sourcing events conducted in 2015
Supplier Lifecycle Management & Virtual
Supply Master
+Supplier Onboarding and Registration, Supplier Performance Evaluation
+Centralized supplier & foundational data
+360 degree view of suppliers
+200 suppliers onboarded each month
Contract Management
+Global Buy side contract management process – 100% utilization
+Single centralized location for all supplier contracts
+Standard contract
+Approximately 145,000 active agreement records at any given time
+E-Signature capability
Transformation within the deployed Emptoris modules
Simplifies the E2E buy-side portfolio and delivers new integrated business functions to reduce technology
and operations risks
9
Supplier Lifecycle Management related procurement 2016 metrics
200+
13.9K
Countries
deployed100
28 Onboarding team members
located in two geographic
centers
10 languages
Commodity
categories22
Suppliers 60KOrder
points
New suppliers registered
each month
IBM Procurement’s introduces the supplier ERP Integration project
10
Emptoris supplier ERP integration roadmap
11
3Q’16 Phase 1 4Q’16 Phase 2 1Q’17 Phase 3
Assessment integration ERP integration Adjunct Process Integration
Describe Request management and all
assessment steps in Emptoris
VSM supplier record updates
initiate ERP enablement
Related processes managed
in Emptoris and triggered
from assessment
Big capabilities One internal/external
combined assessment and
linked request proce3ss
SSM as a central repository
for supplier data management
Automated trigger and
management process for
secondary processes
(electronic invoice
enablement, supplier
development activities, etc.)
Other capabilities Full assessment reporting
and supplier 360 view
Ability to link ERP spend data
with Emptoris data
Centralization and enhanced
visibility of supplier activities
User value Remove redundant
information gathering, search
assessment capability
Suppliers will have central
repository for their IBM
master data
One place for all activities
supplier related
What we want to learn How to improve education for
sourcing teams
What additional insights can
we obtain from supplier data
linkages
What additional insights are
made available due to
additional tracking.
Emptoris integration initiative
12
Discovery
workshop
Requirements
gathering
workshop
Proof of
Concept
Combined full
SLM
assessment
prototype
PGM new
supplier set
up request
prototype
User
acceptance
testing of
PGM and
SLM forms
Production
deployment
of new SLM /
PGM forms
ERP
Integration
build and test
SLM / VSM
Integration
build and test
User
Acceptance
testing of ERP
integration
Production
deployment
ERP
integration
Mar Apr May Jun Jul Aug Sept Oct Jan - MarNov Dec
Adjunct
process
deployment
Refined requirements phase 3
Refined technical requirements
Refined process requirements – phase 1
20172016
Supplier onboarding process prior to the ERP integration project
So
urc
ing
Su
pp
lie
r
Ma
na
ge
me
nt
(on
bo
ard
ing
) Te
am
Su
pp
lie
rG
VM
G
1. Initiate
request
Lotus Notes
2. Verify
request,
check
duplicates
Lotus Notes5. Followup &
support
supplier
3. Req
financial
report
(DnB).
Dunn and Bradstreet
Emptoris SLM
Emptoris SLM
SA:Supplier Assessment
SQ: Supplier Questionnare
SCR: Sourcing council
4. Send
agreement
6. Provide
response
7. Load
agrmnts 8Supplier
screening
Emptoris ECM
9. Appr
Supp
Ass
Word
10. ERP
setup
request
11
Approval
w3
12.
Create
supplier
record
Adjunct
processes
14. Close
request
Lotus Notes
Lotus Notes
ERP
ERP
Denied parties list
13.
Electronic
enablement
Up to 14 applications used!
Emptoris integration
Automation
Optional –
invite
supplier to
register to
Emptoris
Emptoris SLM
Optional –
complete
registration
Emptoris SLM
4. Send
supplier
questionnaire
4. Send
datasheet
(bank&address)
Emptoris SLM
w3
We are moving to a vastly more integrated state and will be more prepared for cognitive capabilities by year end 2016
So
urc
ing
Su
pp
lie
r
Ma
na
ge
me
nt
(on
bo
ard
ing
) Te
am
Su
pp
lie
rG
VM
G
1. Initiate
request
2. Verify
request,
check
duplicates
Emptoris PGM5. Followup &
support
supplier
3. Req
financial
report
(DnB).
DnB /SFRA etc
Emptoris SLM
SA:Supplier Assessment
SQ: Supplier Questionnare
SCR: Sourcing council
4. Send
agreement
6. Provide
response
7. Load
agrmnts
8. Supplier
screening
9. Approve
Assessment
10. Setup
Submit
12.
Create
suppl
nr
Emptoris ECM
Adjunct
processes
14. Close
request
Emptoris VSM
ERP
Denied parties list search
13.
electronic
enablement
Optional –
invite
supplier to
register to
Emptoris
Emptoris SLM
Optional –
complete
registration
Emptoris SLM
4. Send
supplier
questionnaire
4. Send
datasheet
(bank&address)
Emptoris SLM
Emptoris PGMEmptoris SLM
Emptoris SLM
1b. SCR
appr
Emptoris PGM
Emptoris SLM
Emptoris SLM
Emptoris SLM
Emptoris SLM
Emptoris PGM
*not needed
w e-signature
Emptoris VSM
Emptoris VSM
Benefits we expect to achieve through integrating Emptoris with our ERP
CYCLE TIME: Remove duplicate entry and approvals
COGNITIVE CAPABILITY: End to end integrated data cross all platforms
COST: Reduce application support and maintenance
CLIENT SATISFACTION: Users can easily find status and next steps in the process
Specific benefits achieved through the 2016 initiative
Cycle time reduction
Cognitive Capability
Cost ReductionClient Satisfaction Increase
20 processes/formsResponses grouped
by category
Responses grouped
by user role Emptoris
Difficulty identifying risk Key issues highlighted by
Emptoris
No link between request
and Emptoris
PGM request linked to
registration and
assessment
All data elements
shown
Conditional data
elements
Approver in multiple
process stepsDuplicate approvals
removedAssessment in pdf format
(inaccessible and unstructured)
Full electronic assessment
in Emptoris
(reportable format)
Technical Integration with our ERP
17
Emptoris - SAP Integration Overview
� Primary data that needs to be integrated between Emptoris and IBM backend systems
(SAP) is supplier related – supplier name, address, banking details, etc.
� Integration server will be used to host modules/web services needed to update data in
Emptoris and SAP
� Will be hosted in BlueCloud environment (DST offering)
� Hosting environment adheres to Cloud Security policy
� Will be located in Cloud Yellow (www DMZ)
ERP Integration Overview
19
EMPTORIS
SLM
Integration
Web Services
Linux Server
Red Zone Blue Zone
https
JMS Queue
VSM
MQ Queue
ERP
Yellow Zone
https
Green Zone
DPESCDA
jdbc
MQ Queue(SUP_ALL)
(AHE) (AHE)(BlueCloud)(Soft Layer)
MQ Queue (SMRUPD)
MQ Queue
ERP Integration Architecture
Supplier name,
address, bank
Supplier
ERP number
/ transaction
ID
IBM ERP data
validation
Error messages /
ERP supplier
number
Supplier and
ERP details
Demonstration
20
Supplier Management Group user guideNavigate across modules
21
Supplier Management Group user guideFinding supplier requests
22
• On the Request Management tab open the view of new supplier requests. You can use „Supplier: All requests” folder or if you prefer, the subcategories based on your Center location
• Normally you should only see requests that are already in Approved status which means they had been previously approved by the assigned Council Representative
Supplier Management Group user guideOpening requests
23
• Assign requests in Approved status to yourself by opening the request(s), click on Edit button at the top right corner:
• Navigate to ‚Onboarding’ section in the form and click on the three dots at the Onboarding Assigned User field:
Supplier Management Group user guideOnboarding section in PGM form
24
• Set the form status to In process / active from the ‚Onboarding Work Status’ drop down menu and insert some text in the ‚Assessment number’ field such as In progress or TBD etc.
• You can use Onboarding Comments field to communicate with the sourcing buyer throughout the entire supplier creation and assessment process
• When finished, click on Save on top of the page:
Supplier Management Group user guideNavigate to SLM
25
• Please carefully check the content of the entire Supplier Creation form and only then use the form to create a new assessment in the Supplier Lifecycle Management module (SLM)
• Navigate to Supplier Lifecycle Management by using the main Emptoris module selector
• Go to Supplier Qualification menu on the left and select Manage Assessments
Supplier Management Group user guideAssessment header part
26
• In Step 1 in the new form fill in the Title field using the original PGM request ID as reference for documenting purposes, insert the supplier by starting to type the name of the vendor and select the correct one from the suggestions
• Select the template ‚Full Questionnaire with internal SMG responses’(or if necessary, the ‚Affiliate questionnaire’)
• When finished with the header part, click Save & next step
Supplier Management Group user guideConfiguring participants
27
• In Step 3 you can assign and modify the participants. Your name will appear as Responsible person but always make sure you mark yourself Respondent, Releaser and Administrator too (see slide 16). Add the sourcing member as Respondent and Viewer by clicking on Add account participant.
Supplier Management Group user guideStarting the assessment
28
• When you’re done with fine tuning all user roles, proceed to Save & next step
• In Step 4 you can start the assessment, you have two options; you can start right away or you can schedule it for a later time:
Supplier Management Group user guideBuyer and SMG to complete the form
29
• Once the supplier returns the form, the questionnaire is available for both the sourcing buyer and the SMG team, under Supplier Qualification – Execute Tasks menu:
• The buyer can answer some sourcing related questions in the form under Sourcing section (same questions that were in SDDB, in Other general questions section) and at the end they should click on Draft save instead of ‚Save & next step’, as Supplier Management Group has to add their inputs as well
• Instead of ‚Save & next step’, as Supplier Management Group has to add their inputs as well, this section is at the bottom, under the SMG section:
• Instead of ‚Save & next step’, as Supplier Management Group has to add their inputs as well, this section is at the bottom, under the SMG section:
Supplier Management Group user guideBuyer and SMG to complete the form
30
• Below the Sourcing Buyer chapter, sections A1 to E contain all questions that have been answered by the supplier and that needs SMG’s review.
Supplier Management Group user guideBuyer and SMG to complete the form
31
• SMG team also completes their part of the questionnaire – only those questions are displayed in the form that need some action or response from the team. These are listed in the Answer sheet under SMG section, at the bottom:
• The form can only be completed if all internal questions are answered by the buyer and SMG team
Supplier Management Group user guideReleasing the form, final steps in PGM
32
• After releasing the form, the Assessment ID must be included in the initial PGM for as well so that the two documents can be interlocked. Copy the ID from Code field in the assessment’s header (optionally you can copy it even at the beginning of the assessment creation):
• Navigate to PGM and find the original request ID
Supplier Management Group user guideCompletion in PGM
33
• Open the request and click on Edit and scroll down to Onboarding section. Insert the assessment ID in the ‚Assessment number’ field, optionally include some comments and when finished, set the request status to ‚Closed’:
• At the end Save the document
IBM Agile Transformation Process
34
Agile principles used in our integration project
35
Epic: Integrate full assessment process into EmptorisModules: Program Management, Supplier Lifecycle Management
Story: Replace SDDB
request with PGM
requests
Story: Add sourcing
buyer section to SLM
assessment
Story: Add supplier
management group section
to SLM assessment
Tasks:
1. Define fields
needed on the
PGM form
2. Define work
queue view
3. Create form
4. Create SMG work
queues
Tasks:
1. Define sourcing
buyer questions
2. Reword questions
so they can
standalone
3. Add questions to
the assessment
Tasks:
1. Define supplier
management
group questions
2. Reword questions
so they can
standalone
3. Add questions to
the assessment
Wall of Work
36
Project Success Factors
37
Small teams
Engage all roles
in testing
Education and functional video to end users
38