More Related Content Similar to Enhance Your Existing Systems with the Power of Business Networks (20) Enhance Your Existing Systems with the Power of Business Networks1. Enhance Your Existing Systems with the Power
of Business Networks
Greg Liebe, Service Line Owner NA Finance Services Purchase to Pay, GSK
Ruyi Li, Director, Global Supply Chain Operations, CSC
Ashley B. Miller, Group Vice President, Sourcing Business Information Office / March 15, 2016
Public
2. Greg Liebe, Service Line Owner NA Finance Services Purchase to Pay, GSK
Enhance Your Existing Systems with the
Power of Business Networks
3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
Greg Liebe, Service Line Owner
NA Finance Services Purchase to Pay
Accountable for the on-time payment of nearly 500,000 invoices per annum, indirect tax
compliance and banking and treasury services for GSK North America
Joined GSK Finance Services in 2015
Spent the first 20 years of career in IT and shared services development
Based in Research Triangle Park, NC
Live in Chapel Hill, NC with my wife Jen and three sons
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GlaxoSmithKline at a glance
A global healthcare company on a mission
We’re a science-led global
healthcare company with a
mission to help people do
more, feel better, live longer.
We research, manufacture
and make available a broad
range of medicines,
vaccines and consumer
healthcare products.
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Our operating model is our challenge
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P2P transformation at GSK
• Novartis Integration
• Single Instance ERP
• Shopper Satisfaction
• Supplier Satisfaction
• Business as Usual
Market-Specific
Improvements
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P2P KPIs
The first P...
... and the second P
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How we leverage business networks
84% of Spend with Preferred Suppliers
35% of Purchasing Transactions Made through Catalogs
50% e-Invoicing
Limited by sheer volume of suppliers
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Increasing leverage of business networks at GSK
Higher-value items on catalog
Supplier portal
Payment channels
Enabled by limited volume of suppliers
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What it means to GSK
From… To…
P&P P2P
Effectiveness or Efficiency Effectiveness and Efficiency
11. Ruyi Li, Director, Global Supply Chain Operations, CSC
Enhance Your Existing Systems with the
Power of Business Networks
12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public
Agenda
CSC Profile
Global Supply Chain Management (SCM)
SAP Ariba Enabled Transformation
Lessons Learned
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CSC profile
Global IT solutions and services provider of
innovative next gen technology that
modernizes clients’ business processes,
applications and infrastructure
Established in 1959: 50+ years of success
and excellence
Recently separated into two companies
Solutions for 7 major industries:
Banking & Capital Markets
Healthcare & Life Sciences
Insurance
Manufacturing
Energy & Technology
Consumer & Retail
Travel & Transportation
14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public
Global SCM
• 4 Categories:
– Software
– Hardware
– Network
– Indirect &
Corporate
Services
• Enterprise Category
Strategy &
Management
• Enterprise Agreement
Negotiations
• Global and Strategic
Relationship
Management
Global Category
Management
• 4 Regions:
– Americas &
Corporate
– Europe
– AMEA & India
– Australia
• Regional Category
Strategy and
Management
• Regional Contract
Management
• Regional New
Business and Account
Alignment and Support
• Regional Supplier
Management
Regional SCM
• Delegation, Policies,
Procedures,
Compliance
• Operations
Governance and
Support
• SCM Systems and
Technology
• Spend Analytics
• Savings and
Dashboard Metrics
• Organization and
Budget Strategy
• Communications
• Responsible Supply
Chain
Global
SCM Operations
Three functional teams work collaboratively with business
stakeholders to facilitate efficiency, maximize savings, and influence
demand management
- 3 Service Centers in Chennai, DC, Prague
- Transactional Req/PO support plus vendor record mgt
Shared
Service
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Our transformation
08/12 10/13 11/15 2016 2017 & Beyond
The Vision of Finance
Transformation – a
global finance
organization…
supporting the business
in achieving its market
leadership and
profitability goals
through advanced
analytics and decision
making capabilities
while ensuring adequate
controls
SAP Ariba Upstream went live
globally
• Sourcing Pro
• Contract Management Pro
• Savings Module
Enabled single contract repository,
single project/contract management
tool, and single recording and
reporting of Savings
The Approach – reengineer business and
financial processes, standardize on single
chart of accounts, and apply standard
processes across global management
framework
Ariba Procure-to-Pay
(downstream) went live in
America and Canada:
• Requisition & Approvals
• Catalogue Management
• Order Routing & Notices
• Invoice automation
• Invoice reconciliation
08/16 – Ariba
Procure-to-Pay goes
live in UK&I
06/16 – Supplier Information
Management (SIM)
implementation
Ariba Procure-to-Pay
goes live in Nordics, India
& Australia
Global rollout of
automated contract
signature process/app
Ariba Mobile
Ariba Spot Buy
Ariba Supplier Performance
Management
Potentially standalone Ariba
Procure-to-Pay in EMEA,
and South & West and Central
& East regions in Europe
Catalogues 37 (3
CIF)
Catalogue
Spend
7%
Catalogue
Volume
65%
AN Suppliers 25
8
AN Supplier
Spend
34
%
AN Transaction
Volume
86
%
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Lessons learned
Testing
Communications
Training
Hyper Care
SAP Ariba Customer
Engagement Support
17. Ashley B. Miller, Group Vice President, Sourcing Business Information Office, SunTrust Bank
Enhance Your Existing Systems with the
Power of Business Networks
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Agenda
SunTrust Bank at a Glance
Spend Profile for a Financial Services Organization
Current State Before a Spend Management Strategy
Goals of a Successful Spend Management Program
Importance of Driving Usage of the Ariba Network
Request to Payment Process
SunTrust Performance Scorecard
Best Practices and Key Learnings
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SunTrust Bank at a Glance
SunTrust Banks, Inc., with total assets of $191 billion as of December 31, 2015, is one of
the nation's largest and strongest financial holding companies.
Through its banking subsidiaries, the company provides deposit, credit, trust, and
investment services to a broad range of retail, business, and institutional clients. Other
subsidiaries provide mortgage banking, brokerage, investment management, equipment
leasing, and capital market services. Atlanta-based SunTrust enjoys leading market
positions in some of the highest growth markets in the United States and also serves
clients in selected markets nationally.
The company operates approximately 1,400 retail branches and 2,160 ATMs in Alabama,
Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina,
Tennessee, Virginia, West Virginia, and the District of Columbia. In addition, SunTrust
provides customers with a full range of technology-based banking channels, including
Internet, PC, and Automated Telephone Banking.
Diversified Business and
Product Mix
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Spend profile for a financial services organization
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Current state before a spend management strategy
Lack of Robust Spend Visibility
Limited product / line item visibility
Imperfect visibility into what was being purchased and at what price
No Formal Means for Spend / Contract Compliance
Contracts were negotiated, but limited ability to match invoices to contract terms
No automation to match compliance
No Centralized Contract Repository
Contracts were all over the bank and there was no visibility into how many there were and
what they were
No Location to Store Sourcing Project Documents and Deliverables
Documents were not retained – contract, supplier and commodity strategies were lost
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Goals of a successful spend management program
Contract Compliance
Ensure financial stewardship & expense management
of Supplier Spend
Invoices are matched to negotiated contract rates with
preferred suppliers
Spend Visibility
Implement processes and reporting that ensures detailed
information on our spend (What was bought, How much was
paid, How many received, Who consumed, Supplier utilized)
Automation of Sourcing / Contracting / Procurement
Processes
Create automated process managed by system workflow
Create centralized location for all good / service requests
Maintain centralized location for all sourcing
documentation and contracts
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Importance of driving usage of the Ariba Network
Usage of the Ariba Network provides
SunTrust a smooth, transparent, touchless,
and accurate transaction vehicle for working
with our suppliers
Ariba Network provides one entry point for
all supplier interactions with SunTrust
Contracts
Purchase Orders
Invoicing
RFxs (RFIs, RFPs, Auctions)
Risk Questionnaires
Supplier Information
Metric On the Ariba
Network
Total Invoice Count 93%
Total Invoice Spend 75%
Total Invoice Line
Count
96%
Total Number of
Suppliers Utilizing the
AN
61%
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SunTrust automated request to payment process
LOB Submits
Service Req. Form
(SRF)
Program Office
Triage
Sourcing Triage
Assigned to
Commodity
Manager
Sourcing Project
(WS) Created
RFx, Auctions,
Risk
Questionnaires
created in WS
Contract
Workspace (CW)
Created
Contract
Negotiations via
Contract Authoring
and Clause Library
Route Contract
Approvals (PCAR)
Set Up Contract
Terms File for
Invoicing
Supplier Submits
Invoice
Invoice Approval
and Payment
25. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Public
SunTrust performance scorecard
26. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public
Key learnings and best practices
Have Senior Leadership involved and supportive of a spend management strategy
Create a No PO or C, No Pay policy to let suppliers know you will not pay them without a PO# or C# in advance
Create a Category Onboarding plan
Cease accepting paper invoices for suppliers where you have an SAP Ariba relationship
Understand what commodities work best with each Procurement solution (Catalog, Non-Catalog, Contract
Compliance, Services Procurement)
Important to create a strong connection/line of communication between Sourcing, Procurement, Legal and AP
Realize P2P strategies for services likely requires a phased approach with a solution that matures in cycles
of process improvement
Create a Strong Administration Team
Realize…THE VIEW IS WORTH THE CLIMB!
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