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Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
Maximizing the value of your ERP - London
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Maximizing the value of your ERP - London

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You've invested heavily in an ERP's eProcurement capabilities, yet managed spend remains unacceptably low. Join this session to explore how today’s thought leaders have enhanced their current ERP …

You've invested heavily in an ERP's eProcurement capabilities, yet managed spend remains unacceptably low. Join this session to explore how today’s thought leaders have enhanced their current ERP systems to improve adoption, visibility, and compliance across traditional spend areas and complex services.

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  • Key StatsKey Question: What happens if we grow. How can we manage more with the same?
  • Key Stats
  • Key Stats30 plus fax servers connected to 12 ERPs
  • What it means for you as buyer is supplier will collaborate with initiative.Deliver more value as it simplifies experience for themCommitment is greater bc suppliers have more visibility and clarity of the overall relationship
  • Key StatsManual = PO (fax) INV (paper) | goes to shared service center as legal invoice – Scanned – CheckedPO (elec) – Inv (elec) CHECKED before becomes legal invoice and company does their internal checking
  • Hacket says 1% - 5MM (125 – 500 - billions…)650 – adding costs of hardwares and phone calls, 2- 3% reduction of lost purchase orders (ie blank fax)115 – phone calls – people not answering phone calls related to have you received my PO. Has it been sent….. “they will see it on screen”300 – time saved from not having to receive low-value orders because the ASN will act as the proof of delivery. SO YOUR SECRETARY DOES NOT need to do this…900k – no need to open paper – scnaannd insert the inv500k – don’t need to chase people for accou - single reason – so tired of recieveing invoices -- German in Czek….300k phone callsHigh level on numbers….
  • Transcript

    • 1. Maximizing the Value of Your ERP
      Jason Wolf
      John Lark
      © 2011 Ariba, Inc. All rights reserved.
    • 2. © 2011 Ariba, Inc. All rights reserved.
      2
      <Speaker Name>
      I will update tmo….
    • 3. © 2011 Ariba, Inc. All rights reserved.
      3
      Agenda
      Market Directions – Extending ERP Capabilities
      Learningsfrom other Leaders
      Case Study
      Questions / Open Forum
    • 4. The Segmented Procurement Landscape
      Complexity / Need for Procurement Effectiveness
      Each spend segment has unique business process needs
      Spend Categories
      Spend
      Need for Simplicity, Scale and Procurement Efficiency
      Strategic Goods & Services
      General Indirect
      Complex Services
      Infrequent Goods & Services
      MRO
      Number of Suppliers
      Simple Services
    • 5. 5
      The CPO Situation
      Drive more savings
      Normal channels have less to give
      You are here
      What are your top business drivers in 2011?
      “Can you give me some shade?”
      • Ariba / ISM (Institute for Supply Management) Survey conducted February 23, 2011
      5
      © 2011 Ariba, Inc. All rights reserved.
    • 6. Many CIOs Are Recognizing ERP Shortfalls
      © 2011 Ariba, Inc. All rights reserved.
      6
      “Our research highlights that ERP systems fall short on enabling collaboration with suppliers...and that collaboration aspect is critical. It ensures accuracy, timeliness and efficiency in…the supply chain.”
      -- Bob Melk, SVP & Group Publisher, CIO Magazine
      April 2011
      Survey Question:
      What are your organization’s policies regarding deployment of new cloud-based applications that are not from your ERP provider?
      • 202 CIOs survey responses
      • 7. North America
      • 8. EMEA
      Source: IDG Research, The Cloud and the CIO Report, 2011-April
    • 9. ERP Reality – The reality of B2B collaboration is that while most companies have successfully deployed ERP systems to optimize processes within the four walls of the enterprise, once you ‘leave the building,’ 75-85% of B2B transactions are still processed manually on paper, resulting in:
      © 2011 Ariba, Inc. All rights reserved.
      7
      Supplier ‘A’
      Supplier ‘B’
      Your Company
      Supplier ‘N’
      Buyer challenges:
      • Inefficient use of staff
      • 10. Higher Costs
      • 11. Increased Risk
      Supplier challenges:
      • Missed sales opportunities
      • 12. Inefficient processes
      • 13. Increased costs and time
    • Individual Groups Are Already Addressing the Need to Enhance the ERP
      8
      © 2011 Quadrem International, Ltd.
    • 14. Total Number of Documents
      © 2011 Quadrem International, Ltd.
      9
    • 15. Global Adoption Trends
      P2P ratio: For every1 Order Document, how many other related documents are sent between the Buyers and Supplier
      N America
      Europe
      3.4 : 1
      2.1 : 1
      5.5 : 1
      6.2 : 1
      Africa
      South
      America
      West
      2.6 : 1
      Australasia
      Brazil
      3.2 : 1
      10
      © 2011 Quadrem International, Ltd.
    • 16. Network Portal
      Network Portal
      Sales /
      Sales /
      Sourcing
      Sourcing
      Sourcing
      Marketing
      Marketing
      Order
      Order
      Management
      Management
      Procurement
      Procurement
      Procurement
      Finance /
      Finance /
      Receivables
      Receivables
      Finance /
      Finance /
      Finance /
      Payables
      Payables
      Payables
      Financing
      Accounting
      Payment
      Financing
      Accounting
      Payment
      Financing
      Accounting
      Payment
      Successful Approaches: COMPLEMENT your Enterprise Source to Settle processes by extending your efficiencies and creating value for both you and your suppliers
      Buyer Benefits
      • Reduce operating costs 70% or more
      • 17. Capture 3x more discount savings
      • 18. Facilitate paperless procurement and invoice compliance
      • 19. Ensure Contract Rate Compliance & eliminate Maverick Buying
      • 20. Optimize working capital
      • 21. Strategic platform for growth
      Supplier Benefits
      • Manage customers via self-service Portal
      • 22. Reduce receivables costs 75%
      • 23. Get paid up to 70% faster
      • 24. Increase Wallet Share – eliminate price issues
      • 25. Improve visibility and control
      • 26. Automate Order-to-Cash process
      • 27. Access new business opportunities with largest buying community
      • 28. Strategic platform for growth
      11
      © 2011 Ariba, Inc. All rights reserved.
    • 29. Lessons from Other Leaders
      Supplier Value
      Buyer Value
      Albemarle
      Walt Disney Corporation
      Pfizer
      © 2011 Ariba, Inc. All rights reserved.
      12
    • 30. 13
      © 2011 Ariba, Inc. All rights reserved.
    • 31. Decisions
      © 2011 Ariba, Inc. All rights reserved.
      14
    • 32. Results
      © 2011 Ariba, Inc. All rights reserved.
      15
    • 33. Top Learnings:
      This needs to be a business-driven decision with a standard global business model – Disney, Pfizer
      Focus intensely on the user experience to drive adoption and achieve target results – Disney
      Schedule design reviews to avoid, “I didn’t think it would work like that.” – Pfizer
      Know who will do the “IT Stuff” (maintenance, updates, etc.) - Disney
      You need an ERP expert on your project team. Extract and review the ERP master data immediately to uncover data-related issues – Pfizer
      Words of advice:
      Focus on the user experience and results will follow - Disney
      Ariba Technology Great But in Parallel Training Need for Own Staff to Support - Albemarle
      You are only as strong as your strongest link - Pfizer
      © 2011 Ariba, Inc. All rights reserved.
      16
    • 34. Case Study
      © 2011 Ariba, Inc. All rights reserved.
      17
    • 35. Session Objectives
      Look at a real-life case study for a Global Steel Manufacturer based on augmenting 12 SAP ERP systems deployed across Europe
      There are two central focal points:
      Improving Collaboration (internal and external)
      Improving Processes
      Savings for this initiative were based on three pillars
      Increase Compliance
      Improve Visibility
      Drive Efficiency
      © 2011 Ariba, Inc. All rights reserved.
      18
    • 36. © 2011 Ariba, Inc. All rights reserved.
      19
      Situation
      Procurement
      Accounts Payable
      Invoicing
      Actual (+30% Mismatch)
      Status
      PO
      Change / Cancel
      Scanning
      ving
      Invoice
      Catalog
      Appro
      Current State
      • Invested in scanning solution (Readsoft)
      • 37. Outsourced AP to competitive priced provider
      • 38. Shared service center is located in lower cost region
      Key Stats
      • 124 FTEs
      • 39. 1 Million invoices
      • 40. € 23 Billion in invoices
      • 41. Avg 8,065 invoices per year
    • © 2011 Ariba, Inc. All rights reserved.
      20
      Situation
      Automated
      Manual
      Procurement
      Invoicing
      Accounts Payable
      Actual (+30% Mismatch)
      Status
      PO
      Change / Cancel
      Scanning
      ving
      Invoice
      Catalog
      Appro
      Current State
      • Invested in scanning solution (Readsoft)
      • 42. Outsourced AP to competitive priced provider
      • 43. Shared service center is located in lower cost region
      Key Stats
      • 124 FTEs
      • 44. 1 Million invoices
      • 45. € 23 Billion in invoices
      • 46. Avg 8,065 invoices per year
    • Situation
      Procurement
      Accounts Payable
      Invoicing
      Actual (+30% Mismatch)
      Status
      PO
      Change / Cancel
      Scanning
      ving
      Invoice
      Catalog
      Appro
      Key Stats
      Procurement Objectives
      Procurement Activities
      • 124 FTEs
      • 47. 1 Million invoices
      • 48. € 23 Billion in invoices
      • 49. Avg 8,065 invoices per year
      • 50. Increase catalogs usage to drive greater compliance - 500 with same FTE’s
      • 51. Increase connectivity / visibility with suppliers
      • 52. Simplify status updates (delivery & payment)
      • 53. 35 plus fax servers connected to SAP
      • 54. 83k PO per month
      • 55. 5 FTE’s managing 125 catalogs
      21
      © 2011 Ariba, Inc. All rights reserved.
    • 56. If Left Alone, Collaboration Would Look Like This…....
      © 2011 Ariba, Inc. All rights reserved.
      22
      Purchasing
      PO
      Change Order
      Cancel Order
      Supplier
      Order Conf
      Adv Ship Not
      For 1 supplier this means:
      • 3 profiles to manage
      • 57. 3 separate logins
      • 58. 3 separate process
      • 59. 3 separate supplier enablement approaches
      Collab Requests
      Catalog Mgmt
      Catalog Upload
      Catalog Change
      Supplier
      Buyer Filters
      Invoicing
      Invoice
      Supplier
      Credit Memo
      Collab Requests
    • 60. So what changed?
      © 2011 Ariba, Inc. All rights reserved.
      23
      The SAP IT team was attending sessions conducted by the AP / eInvoice team as well as Procurement.
      The focus of both initiatives was similar: improve internal and external collaborations with stakeholders.
      IT simply asked, is there value connecting these processes?
    • 61. Collaboration OptionsStandardized Approach
      Purchasing
      PO
      Change Order
      Cancel Order
      PO
      Supplier
      Change Order
      Order Conf
      Cancel Order
      Adv Ship Not
      Collab Request
      Collab Requests
      Single Connection
      Payment Status
      Supplier
      Catalog Mgmt
      Order Conf
      Adv Ship Not
      Catalog Upload
      Invoice
      Catalog Change
      Supplier
      Buyer Filters
      Credit Memo
      Invoicing
      Purchasing
      Invoicing
      Catalog Mgmt
      Invoice
      Supplier
      Credit Memo
      Collab Requests
      24
      © 2011 Ariba, Inc. All rights reserved.
    • 62. © 2011 Ariba, Inc. All rights reserved.
      25
      Connecting the Processes
      Moving from 2 parallel processes to a single automated flow
      Procurement
      Accounts Payable
      Invoicing
      From
      Actual (+30% Mismatch)
      Status
      PO
      Change / Cancel
      Scanning
      ving
      Invoice
      Catalog
      Appro
      To
      Actual (+90% touchfree)
      Real-time
      Validation
      g
      Invoice
      Status
      PO
      Change / Cancel
      Status
      Approving
      Catalog
    • 63. Collaborative Benefits: the Value of Connecting Processes and Collaboration Documents
      © 2011 Ariba, Inc. All rights reserved.
      26
      Accounts Payable
      €1.7 M Operational Savings
      Procurement
      €1.1 M Operational Savings
      €5 M Compliance Savings
      €900k
      €5Millions (Catalogs)
      €500K
      €650K
      €300K
      €300K
      €115K
      Approving
      Status
      eInvoice
      Status
      ASN
      PO
    • 64. Improving Compliance, Collaboration and Visibility
      © 2011 Ariba, Inc. All rights reserved.
      27
      Catalogues
      €5 M
      PO Automation
      €1.1 M
      INV Automation
      €1.7 M
      Total
      €7.8 M
      • Triple+ the amount of catalogues using the same number of FTE
      • 65. Get rid of 30 fax servers (and their phone bills)
      • 66. Stop your requesters from calling suppliers to check status
      • 67. Automate the reception of your low-value orders
      • 68. Reach 98% touchless invoice reconciliation
      • 69. Stop the suppliers from calling you about payment
      Catalogs
      PO
      Status
      GRN
      Invoice
    • 70. Questions / Open Discussion
      © 2011 Ariba, Inc. All rights reserved.
      28
    • 71. © 2011 Ariba, Inc. All rights reserved.
      29
      “Safe Harbor” and Confidential Information Statement
      This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials.
    • 72. Maximizing the Value of Your ERP
      Jason Wolf
      John Lark
      © 2011 Ariba, Inc. All rights reserved.

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