This sense of urgency was also shared by delegates at a recent KPMG event in Hong Kong, where KPMG shared results of recent research, most notably, the process challenges CFO’s have regarding compliance and tax. Complying with global tax regulations like VAT tax in Europe, is very difficult and mistakes can be very costly. And the business process challenges highlighted point to an increasing need to connect their procure-to-pay functions with their suppliers order-to-cash functions. Both processes focus on cost take out and improved cash flow control.
Faster quarterly closes…More with fewer people….Standardization of processes across divisions…
You still have pain…and that pain’s source lies beyond the four walls of your enterprise…Poor Term Compliance (Rogue spend)Can’t adapt processes to different spend categoriesMinimal order status, invoice and payment status visibilityLost PO’sLack of visibility to MRO spendMajority of staff time is reacting to emergencies
The Ariba solution was architected to address the reality you and your industry peers face….one where up until now the economics of the available collaboration solutions was cost prohibitive to deploy across all of your trading relationships…
OK. So we had three key take aways for today’s eLearning session:Remember that the CFO and finance organizations are inundated with proposals for improving their business. So it’s essential to quickly establish a sense of urgency with your finance contacts.We’ll look at three collaboration imperatives for finance: cash flow, productivity, and supply chain risk mitigationWe’ll learn how to map Ariba solutions to these imperatives for financeResearch tells us that Companies must become more closely linked in a volatile business environment because of supply chain disruptions (i.e. Japan) , financially weak trading partners and changing market demand all of which require immediate responses to questions like: Q: where are revenues coming from, and when can i expect them? Q: how can I spot problems that will affect my cash position? Q: How can I reduce the chance of cash flow problems occurring in the first place? Q: how long before cash goes out or comes in? Q: Am i paying too quickly? Am I paying too slowly? What can I do to optimize working capital? And of course as managing cash performance gains greater scrutiny, how is my performance perceived by investors and Wall Street?
Automate All Spend and Collaborate with All Suppliers
What is common among those who succeed? $5B in spend, 600K transactions annually Schering Plough, Ariba Live 2011 200% increase in AP efficiency in 2 years $3M Saved from 20 suppliers Schering Plough, Ariba Live 2011 Albemarle, Ariba Live 2011 Over a Million SKU’s, Ease of Use, $240M in delivered savings & Innovative Functions Schering Plough, Ariba Live 2011 Disney, Ariba Live 2011 500 Suppliers, 300 catalogs in under 8 weeks Global Health Care Company, 2011 P2P deployed in 13 weeks Major Communications Co, 2011 100% spend under process compliance Lexmark, Ariba Live 2011 £300M spend reduction British Airways, Ariba Live 2011 85% process cost reduction British Airways, Ariba Live 20114 Ariba, Inc. 2011 All rights reserved.
Vision You will go where you look…5 Ariba, Inc. 2011 All rights reserved.
Strong Vision is: • Clarity • Coverage • Commitment (Compliance) • Collaboration6 Ariba, Inc. 2011 All rights reserved.
Clarity: “A clear vision to reduce external spend £300M” British Airways7 Ariba, Inc. 2011 All rights reserved.
Coverage “100% spend under process” Lexmark8 Ariba, Inc. 2011 All rights reserved.
Commitment (Compliance) CIO “Every non-compliant order must be approved by the CFO” “3 non-compliant orders are grounds for dismissal” British Airways9 Ariba, Inc. 2011 All rights reserved.
Collaboration is thinking broader • Connecting Buyer and Seller ERP’s • All Spend Types Direct Simple Indirect Complex • Global Networking10 Ariba, Inc. 2011 All rights reserved.
Gauging your Chance for Success VISION Leading Laggard Clarity Deliver $50M in Source to Make processes more efficient Settle savings within 52 weeks. Coverage 85% of all orders are Provide more catalogs electronic and 99% of these are accurate upon invoice receipt. Commitment The CFO will report monthly to The project is funded (Compliance) the CEO the progress against metrics. Penalties are identified for non-compliance. Collaboration 80% of trading partners are Procurement, IT and AP are enabled and 100% source-to- on the selection team settle eTransacting.21 Ariba, Inc. 2011 All rights reserved.
Managing your Challenges in 2020 • “Suppliers in the coming decade will continue to take on bigger pieces of things they already do for customers.” • “Market pricing for goods and services will become so transparent … that negotiation will be a lost art.” • “Procurement will become more strongly linked to financial supply chains, optimizing cash flow and working capital, implementing dynamic discounting, supply chain financing, and so forth.” • “Timing of customer-supplier collaboration will shift” earlier23 Ariba, Inc. 2011 All rights reserved.