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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.
For more information and to register for all SIG events:
www.sig.org
NETWORKING EVENTS
GLOBAL SUMMITMar 13-16 - Amelia Island, FL
SYMPOSIUM
Jan 18 - San Francisco, CA
Feb 21 - San Francisco, CA
April 11 - New York, NY
March 1-2 - Seattle, WA
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Networking and sharing thought leadership are part of SIG membership
Global Summits – attend two large events with 50+ breakouts, 5-8 keynotes and unlimited networking opportunities
Global events in North America, EMEA, APAC – attend SIGnature
events, GBS Roadmap series, Challenge awards
Weekly Webinars and Monthly Town Hall Teleconferences –access virtual thought leadership
Peer2Peer Resource – ask top-of-mind questions for instant responses
SIG Resource Center – access 4,000+ presentations, research, whitepapers, tools, templates and more
Career Network – post and find jobs or internships
Student Talent Outreach – meet students interested in a career in supply chain, sourcing or services
bit.ly/SIGLinkedIn
@SIGinsights
bit.ly/SIGfacebook
bit.ly/SIGYouTube
Stay connected with other SIG members through various social media channels
bit.ly/SIGBlog
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SIG Global Summits are semi-annual events with 350-400 decision-makers in attendance
Global Summits
• 3 ½ days of networking in a non-
commercial environment
• 5 keynote sessions
• Global brands
• Executive Roundtables
• Over 50 breakout sessions
• Hundreds of industry thought leaders with a
buy-side ratio of 70:30
Amelia Island, FLMarch 13-16, 2017
67% of delegates are director level or above, of which 43% are
VP/C-level
Recent speakers include:
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We are bringing SIG to you…all over the globe
GLOBAL EVENTS
SymposiumsFeb 1 – London, England
GBS ROADMAP SERIES
Nov 15-16 – Copenhagen, Denmark
Mar 2 – Zurich, Switzerland
CHALLENGE THE FUTURE AWARDS PROGRAM
Feb 2-3 – London, England
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For more information go to: www.siguniversity.org
Online learning environment with multiple eLearning options: Cohort, Self-Paced and Custom Solutions
Modules with lessons, formative assessments, and NO final exam
Certification good for 5 years
Early enrollment options that can save you up to 25%
Certified Sourcing Executive program coming in 2017
Updated governance, risk and compliance program coming in 2017
Certified Sourcing Professional starting January 30th, 2017!
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November 15th, 2016
Procure-to-Pay: Make the Case to Go Digital Now!
Public
Page 7
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Internal
Speakers
Manish Kapoor, Senior Manager, Accenture
Manish Kapoor is part of Accenture’s Sourcing & Procurement practice in the US
and leads North America SAP Ariba for Products. He has over 20 years of extensive
experience implementing large scale business transformation and system integration
projects.
[email protected]
Kay Ree Lee, Director, Value Realization, SAP Ariba
Kay Ree Lee is Director of Value Realization at SAP Ariba. Kay Ree has specialized
expertise in procurement, sourcing and vendor management. He is a results-
oriented leader with deep experience improving the performance of Fortune 500 and
small to midsize companies.
[email protected]
Chris Rauen, Senior Manager, Financial Solutions
Marketing, SAP Ariba
In his role, Chris Rauen educates procurement, finance, and shared services
professionals on the business value of procure-to-pay transformation, and
collaboration via business networks. Chris has addressed these topics at finance
and shared services conferences, and in articles for trade and business publications.
[email protected]
Page 8
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Internal
Paper Based Transactions
“61% of invoices require manual
processing.”IOFM, 2016
“70% of payment is still handled
via paper checks”2013 AFP Electronic Payments Survey
Too Many Exceptions
“19.1% of invoices have
exceptions, delaying the
processing of invoices.”Ardent Partners, 2015
Lack Of Visibility Into Spend
By Category“Companies are losing $260 billions
each year due to a pervasive inability
to organize and analyze spend data.” Aberdeen, 2010
Leakage Of Value
“$4.6 million in contract leakage
per billion in spend on average.”The Hackett Group, 2012
“>50% of businesses capture <21%
of early payment discount offers.”IOFM, 2016
(1) Basex Research
Collaboration inefficiencies cost companies $650B (1)
annually
Inefficient P2P process affects buyers and suppliers
Visibility – Source – Contract Request – Buy – Invoice Finance – Pay
Page 9
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Internal
1980 1990 2000 2010 2020+-1970
Mail Phone
MANUAL COMMUNICATIONS
FaxEDI
vans
EARLY ELECTRONICCOMMUNICATIONS
Direct B2B
connectionsE-mail
@
INTERNETCOMMUNICATIONS
Corporate
portal
Single-process
solutions
COLLABORATVIE BUSINESS
APPLICATIONS
Business networks
COLLABORATIVEBUSINESS
COMMUNITIES
Digitalization defines new frontiers for commerce
• As recently as five years ago, there was only a handful of information sources, each with limited granularity. Now,
every two days, we create as much information as we did from the dawn of civilization up until 2003.
• Information has exploded, and businesses are determining how to harness this shift and take advantage of it.
Businesses need to evaluate opportunities to shift from traditional resource interactions to leveraging the
unconstrained access to global networks.
• Relevancy and impact of the digital information age will vary for every organization and industry, but it is clear that
networked customers are now in even more control of their purchasing decisions to drive the future of business.
Page 10
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Internal
Business networks – on-ramp to the digital economy
Connecting people,
systems and
processes to simplify
business commerce
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Internal
Source-to-settle framework
Supplier Info &
Performance
Spend
VisibilitySourcing Contracts Procurement Invoicing
Working Capital
Mgmt
Supplier
Payment
Portal
Registration &
On-Boarding
Diversity / Green/
Certs
Risk Mgmt
Surveys
Quantitative &
Qualitative
Scorecard
Performance Mgmt
Commodity
Classification
Enrichment
Services
Market
Intelligence
Analysis
D&B Insight
Dashboard – 360
Visibility
Process
Compliance
eRFX
Reverse Auctions
Knowledge/
Repository
Ariba Discovery
Reporting/ Analysis
Process
Compliance
Repository
Authoring
Compliance
Expiring Contracts
Requisitions
Catalog
Workflows
Approvals
Compliance
PO Automation
PO-Flip
Invoice
Automation
PO & Non PO
Active Compliance
Dynamic Discounts
Payment Terms
Mgmt / Extend DPO
Supply Chain
Financing
Automated e-
payment
Detailed
remittance advice
Real time track &
trace
Outsource bank
account data
mgmt
1st line A/P help
desk
“Analyze to Contract” “Procure to Pay” + Working Capital Management
Page 12
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Internal
Introducing seven secrets to highly effective procurement
Seven Secrets to Highly Effective Procurement: How
Technology, Data and Business Networks Fuel Innovation and
Transformation*
“…technology, data analysis, and digital networks are transforming procurement and
the source-to-pay process as we know it.”
“Far beyond just automating tasks and transactions, procurement today is a
strategic function that demands an integrated, end-to-end approach built on
deep insights and intelligence to drive informed source-to-pay decisions and
actions that enable businesses to adopt a true business ecosystem-wide digital
strategy.”
“And according to the findings of a benchmarking survey conducted by SAP Ariba,
there are seven essential traits of modern procurement organizations that are
driving this innovation and business transformation.”
* From Dana Gardner, Principal Analyst at Interarbor Solutions, on BriefingsDirect
Page 13
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal
Seven secrets to highly effective procurement
Top Performers play a Strategic role within the organization and
manage more spend
Top Performers have an integrated platform for all procurement spend
and conduct regular stakeholder spend reviews, resulting in higher
Sourcing savings
Top Performers manage Procure-to-Pay as an end-to-end process with a
single point of accountability, driving higher PO and invoice efficiency
Top Performers manage compliance by creating fit-for-purpose strategies
for purchase, driving more spend towards contract and e-catalogs for
a guided buying experience
Top Quartile Average Performer
80.0%58.8%
Sourcing spend under management
7.8%
4.1%
Sourcing savings (as % of spend
sourced)
99.6%67.2%
Total electronic PO count (in %)
54.4%23.0%
Total electronic invoices (in %)
98.0% 88.0%
% of Ariba invoices on contract and
catalog
Top Performers actively manage working capital with the ability to analyze
historical payment trends and then optimizing payment instruments,
resulting in higher discounts
Top Performers leverage technology to provide self-service to enable
24-7 business, driving down cycle time for PO Processing
Top Performers leverage technology to automate PO and Invoice
processing to increase administrative efficiency
2.0% 1.6%
Average supplier discount rate (%)
0.175.7
Requisition to order cycle time
(days)
821
OPS Procurement FTEs per $B of
spend
3 13
AP FTEs per $B of spend
1
2
3
4
5
6
7
Page 14
InterContinental Hotels Group (IHG)Successful journey from multi-vendor on-premise landscape to Ariba on-demand
Nov 15, 2016
Page 15
InterContinental Hotels Group
15Copyright © 2016 Accenture All rights reserved.
InterContinental Hotels Group PLC [IHG]
is a leading hotel company headquartered
in the UK, with hotels in almost 100
countries. IHG’s vision is to become one
of the great companies in the world by
creating Great Hotels Guests Love. IHG
will deliver this through its portfolio of
preferred brands, its talented people and
best-in-class delivery systems. At the
heart of its culture is a commitment to act
responsibly in everything we do.
674,000 rooms
9 brands
47,000 hotels
157 MM guests
Page 16
IHG S2P overview – Case for change
16Copyright © 2016 Accenture All rights reserved.
Significant compound overhead cost growth year over year
Lack of a standard global procurement process, no integrated P2P system
Limited governance over processes and usage of available technology platforms
Current Delegation of Authority policy difficult to understand, not integrated with existing technologies
Limited cost and spend management policies in place –PO’s only required for IT and marketing capital expenditure
Inability to monitor actual spend against budgets; limited consequences for spending over budget
Lack of robust reporting capabilities to provide insight into spend and savings opportunities
Limited usage of preferred suppliers
Page 17
Challenges
17Copyright © 2016 Accenture All rights reserved.
Timeline
skepticism: needed
to convince IT /
business that the
project could be
delivered in eight
months
Procurement had
zero electronic
contact records for
the supplier base
Internal resistance
to process changes
Suboptimal
participation from
the businesses
Page 18
Procure to Pay – Before S2P project
18Copyright © 2016 Accenture All rights reserved.
ERP-based “Invoice to Pay” solution with a non-integrated sourcing and contract management
solution
Sourcing Contract
management
Select goods
and services
Enforce
compliance and
order
Receive and
reconcile
Invoice and pay
Bravo Solutions PeopleSoftManual, paper-based process
• 4,600 corporate suppliers – 800 of these made up 80% of total spend
• Ordering is manual and largely “after the fact” – not consistent across regions / functions
• Only 6% of all corporate invoices currently tied to a Purchase Order (PO) number
• Less than 1% of invoices truly electronic
• Invoice approval is routed via PeopleSoft workflow at back end of process
• Procurement and Accounts Payable functions operated separately with no interaction
Page 19
Procure to Pay – After S2P project
19Copyright © 2016 Accenture All rights reserved.
Fully integrated Procure to Pay solution, visibility into our spend, and automated processes
Analyze
Discover
Plan
RFx/Negotiate
SIM
Sourcing Contract
management
Select goods
and services
Enforce
compliance
and order
Receive and
reconcile
Invoice and
pay
Procure to Invoice (P2I) PeopleSoft
Procurement Content (Catalog)
Working Capital Management
Vertex Tax
Ariba Spend Visibility
Negotiate/Sign
Manage & Review
• Supplier on-boarding solution
(SIM) to better control our
supply base
• Online, standard ordering
platform deployed globally
across all regions and
functions
• “No PO, No Pay” policy
• Fully electronic and
automated invoicing process
• Delegation of authority
approvals at front end of
ordering process and built
into workflow
• Single process ownership
across AP and procurement
Page 20
New Procure to Pay solution will provide cost savings,
process efficiency and technology benefits
20Copyright © 2016 Accenture All rights reserved.
Demand management
Technology
benefits
Financial controls
• Option for implementing SAAS (Software as a Service) technology and eliminating redundant IT
applications
• Improved accuracy of invoice processing and avoidance of duplicate payments
• Improved detection of fraud
• Reduce risk through compliance with Sarbanes-Oxley Act
Price reduction
• Commodity-level view of the purchases, spend analytics and aggregation capabilities to drive improved
supplier negotiation and strategic sourcing
• Purchase from preferred suppliers emphasized through supplier catalogs
• Flagging of purchase policy violations
Efficiency
• Use of online catalogs / punch-out catalogs
• Automated invoice entry through OCR, EDI
• Reduced supplier payment queries by providing buyers and suppliers complete transaction information
• Update policies to remove unnecessary / ineffective employee entitlements and enforce through work-flow
based approvals
P2P
implementation
benefits
Page 21
Key considerations with Ariba on-demand
21Copyright © 2016 Accenture All rights reserved.
On-demand offers your
business innovation without
disruption
Ariba on-demand offers the full
suite of Ariba products in a single
integrated suite in the cloud.
Better User Experience: Consumer-like interface,
mobility, social collaboration
Fully integrated: Integrated End-to-End
Requisition to Pay Solution
Increased innovation: Faster change cycles, more
frequent upgrades, foundation for new offerings
Lower TCO: Reduce large capital IT investments;
Free up IT resources for business critical systems
Better connectivity: Ariba Spot Buy, AribaPay,
Fieldglass, Concur
Need for improved processes and/or
organization design: Opportunity to standardize
and/or consider managed services
Key o
pp
ort
un
itie
s
IT component end of life / end of license:
ERP, DB, OS
Key c
on
ce
rns
Security• Data Privacy
• IT Security
Scalability• Can system meet the demands?
• Performance loss at peak utilization
• Ability to meet future growth
Integration• Leverage existing data store
• Capacity for integration project
• Alignment to the integration strategy
Extensibility• Configurability vs. Customization
• Application flexibility
• Upgrade impacts
Vendor management
Subscription fees
Network fees
Others? Others?
Automatic upgrades
Standardized process
Cloud innovation
Technology foundationS
ing
le p
latf
orm
Page 22
Success metrics
22Copyright © 2016 Accenture All rights reserved.
We are actively tracking against the following P2P success metrics to ensure achievement of
business case objectives and benefits:
Compliance to
Purchase Order
process
Spend against
preferred content
Spend against
preferred
suppliers
Supplier master
data
Electronic invoices Procurement
benefits
1 2 3
4 5 6
Page 23
Thank you
23Copyright © 2016 Accenture All rights reserved.
Page 24
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Internal
Source-to-settle framework
Supplier Info &
Performance
Spend
VisibilitySourcing Contracts Procurement Invoicing
Working Capital
Mgmt
Supplier
Payment
Portal
Registration &
On-Boarding
Diversity / Green/
Certs
Risk Mgmt
Surveys
Quantitative &
Qualitative
Scorecard
Performance Mgmt
Commodity
Classification
Enrichment
Services
Market
Intelligence
Analysis
D&B Insight
Dashboard – 360
Visibility
Process
Compliance
eRFX
Reverse Auctions
Knowledge/
Repository
Ariba Discovery
Reporting/ Analysis
Process
Compliance
Repository
Authoring
Compliance
Expiring Contracts
Requisitions
Catalog
Workflows
Approvals
Compliance
PO Automation
PO-Flip
Invoice
Automation
PO & Non PO
Active Compliance
Dynamic Discounts
Payment Terms
Mgmt / Extend DPO
Supply Chain
Financing
Automated e-
payment
Detailed
remittance advice
Real time track &
trace
Outsource bank
account data
mgmt
1st line A/P help
desk
“Analyze to Contract” “Procure to Pay” + Working Capital Management
Page 25
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Internal
LOW
HIGH
The case for payables in P2P: “invoices as strategic assets”
Better for buyers, better for suppliers
BETTER COLLABORATION:
Competitive Advantage
SuppliersBuyers
FASTER COLLECTIONS:
Lower DSO
LOW COST, ON DEMAND FINANCING:
Reduce Costs, No Debt
PAYMENT VISIBILITY & REMITTANCE:
Trust & Adoption
INVOICE AUTOMATION:
Ease & Visibility
EARN EARLY PAY DISCOUNTS:
Net Income
EXTEND PAYMENT TERMS:
Free Cash Flow
SCALABE & SECURE PAYMENT:
Risk Management
INVOICE AUTOMATION:
Controls & Automation
Fin
an
cia
l V
alu
e
Page 26
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Internal
Payables best practices & KPIs
• 90% electronic invoices
• 50K+ invoices per FTE
• 75% of PO & Invoice lines
against item Master/ Catalog/
Contract
• Electronic Invoice Submission
• Intelligent error recognition
• Predefined line items
• Pre-approval on PO & contract
• 60-80% reduction in supplier
inquires
• +90% of payment are
automated
• Pay electronically to maximize
payment window
• Rich payment remittance details
• Secure bank account storage
• Discounts: 10% of spend
• SCF: 10% of spend
• Card: 5% of spend
• Net Terms: 75% of spend
• DPO = 50 days
• Create a significant payment
window for working capital
optimization
B
C
D
5 DaysInvoice Approval
50 DaysNet Terms
Payment Delivered
0 Days
Invoice &
Capture Date
Options: Discount,
SCF, or Card
Payment Delivered
Best-In-Class
A
B
C
D
5 DaysInvoice Capture
25 DaysInvoice Approval
35 DaysNet Terms
Payment Delivered
0 Days
Invoice Date
Typical KPIsBest-In-Class Capabilities
Page 27
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Internal
Earning Discounts Extending Payment Terms Payment Automation
Fortune 500 Utility
• 2015: Earned $11.3 MM in Discounts
• 50% Discount improvement 2014 to 2015
• Average Discount: 1.6%
Fortune 50 Pharmaceutical Company
• >$5B spend moved to net 60
• 38,000 Suppliers in 40 Countries
• >$300 MM Cash Flow Gain / ~$10MM P&L
Benefit
Fortune 100 Telecom
• Payment Volume: $12 Billion
• 95% of spend activated within 7 months across
1,700 suppliers
• P2P Acceleration: Already had 800 suppliers
registered and ready to transact
Fortune 300 Retailer
• 2015: Earned $3.4M in Discounts
• Average Discount: .84%
• ~75% of spend merchandise focused
Fortune 500 Transportation Company
• Extended $200M spend to 45 days
• Increased DPO 1 day
Strategic payables in action
Page 28
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Internal
Business case for going digital in P2P
“4-for-1”$4M in savings leakage for
every $1B in spend under
contract
Contract Compliance
“3-for-1”$2.7 million in working
capital impact for every
$1 billion per day of
improvement of DPO,
DSO, DIO
Working Capital
“2-for-1”$2M+ in discount savings
for every $1B in
discountable spend
Discount Capture
“1-for-1”$1M per $1B in spend
process efficiency savings
Process Cost Containment
$10+ Million Savings per $1 Billion Targeted Spend
Page 29
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Internal
Value to business stakeholders
Procurement
• Control spend
• Compliance to contracts
• Increase catalog usage
AP/ Finance
• Remove paper
• Eliminate exceptions
• Capture discounts
• Reduce payment cost and risk
Treasury
• Increased cash flow visibility
and control
• Working capital
• Return on cash (discounts)
IT
• Deep integration
• RDS packages
• Cloud benefits
• Low TCO
Working capital
(DPO & discounts)
Invoice
(Automate &
accelerate)
B2B payment
Certain. Secure.
Simple.
Page 30
30© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Going digital…
It feels like this..
Page 31
31© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Going digital…
It feels like this..
Page 32
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
For more information,
Please contact Chris Rauen: [email protected] go to www.ariba.com
