View
407
Download
0
Category
Tags:
Preview:
Citation preview
Agenda
Time Item Presenter
8:30 – 9:00 Coffee All
9:00 – 9: 30 Welcome – Coupa Roadmap Tony Wessels, V.P. MarketingCoupa
9:30 – 10:30 Amplifying Procurement’s Role Ravi Thakur, V.P. Customer Success, Coupa
10:30 – 10:45 Break All
10:45 – 11:30 Pandora’s Spend Optimization Steve Cakebread, CFO, Pandora
11:30 – 12:15 High Performance Procurement Chris Brousseau, Accenture
12:15 - 12:30 Closing Remarks Tony Wessels, V.P. Marketing, Coupa
Coupa’s Mission
Delivering software innovation that breeds responsible spending while impacting the company bottom line.
How Do You Do It?
� Proactively participate in growth strategy
� Manage change effectively
� Measure & demonstrate success
Be Truly Strategic
� Ensure executive team supports your Spend
Optimization strategy
� Work with R & D / Product Development
� Be aligned with M & A and global expansion
Agile Spend Integration
� Bring distributed locations
under management
� Involve all stakeholders
e.g. facilities, marketing
� Proactively integrate
acquisitions
Functional Users
� Familiar user
interface
� Support for function
specific spend
Solution
� A solution that they
can use
� Not stand in their
way
Needs
Procurement
� Enables transaction
ownership
� Measurable results
Solution
� Ensure policy
compliance
� Attain savings goals
Needs
Payables
� Automation for
invoice processing
� Eliminates tedium
Solution
� Reduce manual &
error prone steps
� Simplify tasks
Needs
IT
� SaaS/Cloud based
platform
� User configurable
solution
Solution
� Reduce burden on IT
resources
� Focus on value-add
tasks
Needs
Suppliers
� No network fees or
processes to support
� Innovation e.g.
Universal Search
Solution
� No additional cost of
doing business
� Ease of adoption
Needs
Set Targets
Measure Success
• Establish benchmarks and determine
targets
• Use data to analyze:• Tradeoffs and interdependencies
• Root cause
• Measurement excellence = capability
to improve and stay aheadBe Excellent
Achieve Targets
Benchmark Metrics
Productivity
� Transaction cycle time
� PO & invoices processed
per FTE (#)
� Support costs – not just IT
Effectiveness
� Spend under management
� User adoption = customer
satisfaction
� % saving / spend
Confidential and proprietary
Our Mission: Redefining Radio
• Connect people with music they love
• Help people discover new music
• Personalize the experience
• Create positive bonds between brands, bands and fans
37
Confidential and proprietary
Pandora Legacy
All done over email and manual process
� Manual purchase requisition
� Manual ordering
� No receiving record
� No invoice approval
� No tracking
� No vendor management
� No automation
� No visibility
� No compliance
38
Confidential and proprietary
Challenges
� Lack of focus
� Inability to change behavior of current procurement process
� Not addressing cross functional needs of the departments
� Not having an aligned business strategy
� No uniform system to drive the thought process around accountability of each budget owner on their expenses
39
Confidential and proprietary
Put it in the
GOAL: Provide timely performance measurements, excellent GOAL: Provide timely performance measurements, excellent GOAL: Provide timely performance measurements, excellent GOAL: Provide timely performance measurements, excellent customer service, and effective processes to the company, our customer service, and effective processes to the company, our customer service, and effective processes to the company, our customer service, and effective processes to the company, our other departments and outside customersother departments and outside customersother departments and outside customersother departments and outside customers.
� Improve the billing systems, needed more efficient business systems
� Automate workflow
� Focus on process cycle times and meet those times
� Establish a reporting schedule, ability to forecast the business
� Develop a viable business and financial operation
� Enable procurement to document and perform proper controls
40
Confidential and proprietary
Transforming procurement
� Streamlining procurement was a vital and strategic project
� Make it a more transactional approach
� Implement a more regulated approval system instead of a top level down bottleneck
� Lower the costs and consumption of human time
� Track and manage vendors
� Able to properly document and budget each business segment
� Improve visibility and spend management
� Cloud based, anytime, anywhere Saasmodel
� Bring value to the whole financial ecosystem
41
Departmental Departmental Departmental Departmental
BudgetsBudgetsBudgetsBudgets
Executive Management Executive Management Executive Management Executive Management
ApprovalsApprovalsApprovalsApprovals
ManagersManagersManagersManagers
Enter and Track Enter and Track Enter and Track Enter and Track
RequisitionsRequisitionsRequisitionsRequisitions
FinanceFinanceFinanceFinance
Confidential and proprietary
Coupa + Pandora
� Efficient, easy vendor integration
� Scalable, versatile, innovative
� No hardware capital investment
� Lower support costs
� Rolled out to entire organization
� Minimum implementation time
� Minimum risk
� Mobile
� Effective management
42
Confidential and proprietary
Pandora Now
� Real time reporting and approval
� Transparency and visibility into departmental budgeting, spending and monthly accruals
� Allows procurement department to clean up stale invoices, outdated reqsand pending action items
� Easy integration with analytics and financial planning tools
� Accountability in each departmental spend and budgeting outlook
� Mobile, anywhere, anytime, no delay or bottleneck with purchase approvals
� Improved financial performance by controlling cost and spend effectively and efficiently
43
Confidential and proprietary
High Performance Procurement Mastery
45
Christopher Brousseau
Global Commercial Sales Director
Accenture Inc.
Copyright © 2012 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
47
Contents
Copyright © 2012 Accenture All Rights Reserved.
Sustaining Success – Sustainable positive impact for your company
Successful Approaches – Structuring Source to Pay initiatives
Big Picture – Begin with the end in mind
1
2
3
4
Introduction
Copyright © 2012 Accenture. All Rights Reserved. 48
• A market leading provider with 10+ years of experience • Strong client portfolio of clients from around the globe.• Can help CPOs deliver significant spend savings straight to the bottom line, improve
procurement performance and increase spend transparency and control.• Example benefits delivered include:
– $400m (15%) sourcing savings for one financial services client – 20% savings across seven purchasing categories for HOCHTIEF – $10.2m savings for banking client through the industrialized procurement of contract labor.
Our value Proposition
What do we offer?
• A complete source-to-pay BPO solution that enables organizations to reduce their overall cost of acquiring third-party goods and services and improve the efficiency and effectiveness of their procurement operations.
• Services include: sourcing and category management, sourcing support and procurement operations.
Accenture Procurement BPO Services - A snapshot
Accenture’s High Performance Procurement Mastery Study looked at the profiles of over 430 responding procurement organizations across the key dimensions of procurement mastery:
Procurement strategy
1
Sourcing and category management
2
Requisition to pay
3
Supplier relationship management
4
Workforce and organization
5
Technology
6 • Geographical scope: 22 countries from Europe, Americas, Asia-Pacific
• Industries: responses from 13 different industries
Big Picture:High Performance Procurement Mastery
49Copyright © 2012 Accenture. All rights reserved.
Procurement mastery
low high
Pro
cu
rem
en
tp
erf
orm
an
ce
Midrange performer
MasterLow performer
Average
high
low
Big Picture: Three Strategic Focus Areas
50
1. Focus on business outcomes
2. Deliver value through Sourcing & Category Management, Procurement operations, analytics and insight
3. Enable organizations with an increasingly flexible infrastructure and compelling assets
50Copyright © 2012 Accenture All Rights Reserved.
Implementation PrioritiesBusiness Interest
Maximize bottom line savingsfrom supply base
• Insight and visibility of organisational spend• Spend under procurement influence management• Sourcing and category management driving multi year plans• Driving compliance and managing cash
Driving compliance
• Capturing bottom line savings, active and passive compliance using technology or manual processes
• Contract compliance, management of contract policies and process
• Change management and governance.
Make vs buy decision• Investment, approach and strategy to create an internal
infrastructure to manage procurement vs selecting a partner to Design, Build, Operate or Transfer
Geographical footprint, presence and flexibility
• Flexibility and relevance of resources across regions• Decentralised buying and Onshore FTEs• Tactical vs strategic local support• Ability to support growth markets• Regional expertise and insight
Maximizing returns from technologyinvestments
• Strategy and road map for source to pay procurement technology
• Boutique best of breed providers or partner who provides technology infrastructure
Building the right capabilities• Procurement organisation design• Expertise and skill set• Category specific knowledge
Copyright © 2012 Accenture. All rights reserved.
Successful Approaches
Invoice
•Payment Terms
•Supplier Data
•Validated Contract Price
•Usage Data
Buy
Data
Integrity Drives
Value
Successful Approaches:Procurement Business Outcome Focus
Working Capital Management
Demand Management & Category Strategies
Spend Analytics & Sourcing
ChangeManagement
Procure-to-PayInstrumentation
VendorEnablement
Compliance Management
* Change Management is a continuous process across all of the Building Blocks
• Aggressive payment term management
• “Dynamic discounting”
Compliance Management
Demand Management & Category Strategies
Spend Analytics & Sourcing
ChangeManagement
Procure-to-PayInstrumentation
VendorEnablement
• Organizational measures aligned to drive compliance
• Ability to measure adherence to contracts, consumption policies, and purchasing policies
• Compliance programs enacted
• Supplier performance metrics and program established
Vendor Enablement
Demand Management & Category Strategies
Spend Analytics & Sourcing
ChangeManagement
Procure-to-PayInstrumentation
• Supplier segmentation and management program deployed
• Supplier partnerships established
• Diversity and Sustainability programs enacted
• Spend controlled through PO
• Workflow automation• Straight through
processing• Catalogs enabled• eInvoicing• Improved invoice
lifecycle• Centralized contract
administration
• User, supplier, and process policies implemented
• Change management program implemented
• Standardized approvals and authorization approach for Procurement and AP
• Policies established to drive change (i.e. “No PO, No Pay”)
Procure-to-PayInstrumentation
Demand Management & Category Strategies
Spend Analytics & Sourcing
ChangeManagement
Change Management*
Demand Management & Category Strategies
Spend Analytics & Sourcing
• Spend analyzed for identification of savings & compliance opportunities
• Sourcing tactics deployed (eAuctions, Spot-Buys, RFx
• Contracts established• Savings methodology
defined and tracked
• Category strategies developed for all categories
• Purchase channel strategy developed for all categories
• Payment strategies developed for all categories
• Demand Management programs enacted
Spend Analytics & Sourcing
Demand Management & Category Strategies
Demand Management & Category Strategies
52
Sourcing Optimization and Demand Control Procure-to-Pay Transformation Supply Base Mastery Outcomes
Copyright © 2012 Accenture. All rights reserved.
53
Successful Approaches:Change Management Value Tree
Key Value Questions
• Do you understand the business case?
• What are the financial and non-financial benefits of the project?
• How do they expect to achieve the benefits?
• What behavioral changes must occur to achieve the benefit (as opposed to simply system automation / changes)?
• What are the value levers associated with driving the change?
Change Management levers
How do the benefits break down?
What are the benefit drivers?
What is the specific target?
What is the overall benefit of the project?
Comms. & Engagement
Change Readiness
Executive Sponsorship
Org. Alignment
Sustainment
Stakeholder Management
Training & Perf. Support
Project Goals
Financial Benefits
Project Benefits (e.g., NPV)
Time to Proficiency
People Able to Use
People Willing to Use
System Works
Non-Financial Benefits
Employee Retention / Morale
Understand Change
Engaged / Involved
Customer Satisfaction
Knowledge Retention
Process Automation
Document-ation
Copyright © 2012 Accenture All Rights Reserved.
54
Contents
Copyright © 2012 Accenture All Rights Reserved.
Sustaining Success – Sustainable positive impact for your company
Implementation approach – Preparing for best service
Service model – Components to drive procurement value
1
2
3
4
Our joint journey – Path of procurement innovation
Sustaining SuccessView on best practice – addressing your pain points [excerpted 2/3]
Your pain points What the leaders do – selected practices
Procurement Infrastructure: lack of enabled procurement applications leading to underperformance
Accenture Term:Procure-to-Pay
Supplier Management: major focus on administrative activities
Supplier Collaboration & Integration
Supplier Development
Accenture Terms: Supplier Performance Measurement
• Supplier management approaches, particularly for strategic suppliers, with defined and tracked collaboration initiatives
• Collaboration technologies and portals used to share data ranging from demand forecast to transactional data e.g. eInvoicing
• Share of risk and reward in contracting to exploit opportunities and balance pain/ gain etc.
• Process improvement teams review and audit key suppliers and provide guidance to address performance gaps (six sigma)
• Joint investments in initiatives/ technologies • End-to-end view of value chain with improvements made across enterprise boundaries
(buyer/ supplier)
• Agreed set of basic, customisable performance measures for each segment • Automated system-based performance tracking and dashboards with end user/ supplier
survey technology• Supplier performance delivery linked to incentives, reward mechanisms and future
business award
• E-enabled procure-to-pay process with defined approvals and strong controls, segregation of duties etc.
• Application of leading technologies to eliminate work or drive efficiency e.g. catalogues, electronic order transmission, OCR...
• Spend channel strategy ensuring most efficient and effective buying method for defined purchase types
55Copyright © 2012 Accenture All Rights Reserved.
Customer Challenge:
• Imperative to simplify, standardise and gain greater control over procurement globally
Client Case Study
Simplifying processes, standardizing and enabling with technology has increased controlfor leading European financial services company
Business Outcomes:
• Delivered significant indirect spend savings annual savings 12-19%
• Spot buys and e-auctions used to drive additional savings 27% savings
• Improved compliance in annual spend >70% and rising.
• Improved process efficiency , spend transparency and procurement insight
• Unlocked discount opportunities and additional value.
• Support sustainability agenda: >60% reduction in paper usage through e-invoicing (630k invoices)
• Reduced procurement operational costs
Copyright © 2012 Accenture. All rights reserved.
• Answer any questions that were not addressed during this discussion
• Schedule a follow-up with you, or other team members from your organization to learn more about Accenture’s capabilities and discuss potential opportunities for your company
Thank You and Next Steps
We would be glad to continue discussions to:
Contact with inquiries:
Christopher Brousseau
chris.brousseau@accenture.com
Recommended