SIG Working Council

Source-to-Pay Technologies

Working Council Leadership Team

Amy Fong

The Hackett GroupPhilip Wood

Microsoft

Our Journey…• We started this journey in October 2016

• Conducted WebEx sessions in February and April of 2017, and then met in person in October 2017 at the SIG Global Executive Summit

• We started the council with an emphasis on sourcing and governance tools and technologies, talked about machine learning, but then focused our discussions on source-to-pay considerations and value drivers

• Ensure that SIG Members have a resource to turn to when they have questions concerning the use of Source-to-Pay technologies;

• Provide an environment for SIG Members to network and develop relationships with subject-matter experts, thought leaders and practitioners in this business area;

• Assist SIG Members in understanding how enterprises use Source-to-Pay technologies to drive value throughout the entire sourcing and relationship governance life-cycle (i.e. Source-to-Pay, Transition to Delivery, Relationship Optimization Risk & Compliance etc.);

• Enable SIG Members to stay apprised of how transformational technologies can either simplify and/or add complexity to the sourcing and governance environment, especially with the proliferation of advanced technologies and platforms.

Our Purpose…

SIG WORKING COUNCIL

SOURCE-TO-PAY TECHNOLOGY

Zachary Engels – Procurement Operations

Westfield Insurance

OPERATING INFORMATION

HISTORY OF PROCUREMENT

Objective: Standup a center-led procurement function inclusive of third party risk management. Strive to become an industry leader in terms of procurement practices through the areas of: 1) People 2) Process 3) Technology

2015 – [People] Employed our CPO who recruited and hired various individuals to fill open roles in category management and 3rd party risk management

2016 – [Process] Reworked existing policies surrounding approved buying channels while creating new policies related to contract signing authority, our internal sourcing approach as well as our vendor risk policy

2017 – [Technology] Evaluate our current technology roadmap and make strategic investment(s) that will enable the business to become more agile while mitigating risks

Fin

an

ce (

CF

O)

Group Leader (CPO)

Operations Manager

Category Management

Leader

CM 1

CM 2

CM 3

CM 4

Specialist 1

Specialist 2

Specialist 3

3rd Party Risk Leader

Manager

Analyst

PROCUREMENT TECHNOLOGY

CURRENT STATE

Upstream Downstream

Spend Analytics

Category MGMT

E-Sourcing

Contract MGMT

Supplier MGMT

Catalogs & Buying

Invoice & Payment

Financial MGMT

Source-to-Pay Spectrum

INEFFICIENCIES

Inadequate spend

insight which leads

to inaction

Wrong negotiation

strategy / incorrect

supplier

segmentation

Savings

Leakage

Manual

invoice entry

and receipt

process

Manual governance process to

check contract compliance

Manual governance process to

check contracted rates to invoices

1. Non-PO invoices due to lack of system integration and timely processes

2. Increased use of P-card purchases

3. Adverse business impact due to speed to delivery

PROCUREMENT TECHNOLOGY

FUTURE STATE

Ideally, have one technology platform with a single provider

that can deliver the upstream and downstream functionality

required by Westfield.

Source-to-Pay

Providers

SAP

Ariba

Ivalua

Zycus

Basware

Oracle

Coupa

JAGGER

GEP

Tradeshift

BRAVO

PROCUREMENT FUTURE STATE

PROCESS MAP

2017 ACTIVITY TIMELINE

RFQ CHECKLIST

Consisted of 85 questions across 8 sections:

Participants were able to answer using the following drop down selections:1. Fully Supported – The function meets requirement fully as standard /

configurable feature

2. Partially Supported – The desired function is available in a separate optional package, or could be made available through the development of a new application. Please elaborate on complexity in person hours to complete

3. Not Supported – The desired functionality is outside the scope of the package and there is no practical way to provide it

4. Future Release - Functionality expected in future release (state release date)5. Customization - (Coding) required to support requirement

6. Third Party - Application fulfils requirements fully (state application, source, integration method)

• General

Business Info.

• Architecture • Supplier Risk & On-Boarding

• Spend

Visibility

• Sourcing &

Contracts

• Operational Procurement

• Invoicing &

Payment

• Pricing information

NEXT STEPS

Begin the Process of commercial discussions

Formal commercial negotiation

Review MSA / Software Agreements

Begin to align internal resources

Understand the service implementation process

In house versus an external SI partner

SOW’s and design documentation process

Conduct IT workshops to dive into architecture and

integration discussions

Phased / module implementation versus end-to-end

Understand migration needs / timeline off

existing technology

Questions?• What topics are we most interested in for our WebEx Meeting in

February 2018?

• What speakers/thought leaders do we want to involve?

• Do we have any initiatives we would like to pursue?

• Other ideas, thoughts or suggestions?

• Next WebEx Meeting: TBD February 2018