Procure-to-Pay as a Catalyst toUnlock Value and Drive InnovationThrough CollaborationAriba Commerce SummitLondon15th Janua...
Welcome : Your Speakers Today                                          Sourav Niyogi                                      ...
P2P is not a new concept, while Globalisation fuelled its adoptionhigh performing companies are constantly redefining it  ...
The business case is clear – without an effective P2P solutionthe benefits from sourcing are lost                         ...
More is asked of High Performers and More is delivered –controlling the spend throughout the lifecycle             Best Pr...
Our research indicates that procurement will evolve acrosssix dimensions and that P2P will be a key enabler for this      ...
Top organisations are already applying controls and structureson top of the P2P backbone to drive greater bottom line impa...
The economy is already increasingly networked and procurement teamswill need to collaborate more broadly to realise value ...
Thank youQuestions ?Copyright © 2013 Accenture. All rights reserved.   9
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P2P as a Catalyst to Unlock Value and Drive Innovation Through Collaboration – Accenture

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Procure to Pay (P2P) has been on the roadmap for most companies for the past
decade. However, incomplete vision, poor adoption and lack of supplier
enablement have often hampered the realisation of the full potential value.
Successful approaches to P2P not only improve spend under management and
drive compliance to unlock value, but also enable innovation through better
collaboration with suppliers. This session explores how some of the high
performance companies are unlocking value through P2P programmes and driving
innovation through improved collaboration.

Sourav Niyogi , Senior Manager, Operations Consulting – Accenture
Andrew Brimacombe, Senior Manager, Operations Consulting – Accenture

2013 Ariba Commerce Summit London

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P2P as a Catalyst to Unlock Value and Drive Innovation Through Collaboration – Accenture

  1. 1. Procure-to-Pay as a Catalyst toUnlock Value and Drive InnovationThrough CollaborationAriba Commerce SummitLondon15th January 2013
  2. 2. Welcome : Your Speakers Today Sourav Niyogi Senior Manager Accenture UK & Ireland Management Consulting Supply Chain Management sourav.niyogi@accenture.com Andrew Brimacombe Senior Manager Accenture UK & Ireland Management Consulting Supply Chain Management andrew.brimacombe@accenture.comCopyright © 2013 Accenture. All rights reserved. 2
  3. 3. P2P is not a new concept, while Globalisation fuelled its adoptionhigh performing companies are constantly redefining it 1990s 2000 2004 2008 2010 2013 Globalisation Control User Friendliness Cost Reduction Networked EconomyStandardisation Compliance Velocity Efficiency InnovationCopyright © 2013 Accenture. All rights reserved. 3
  4. 4. The business case is clear – without an effective P2P solutionthe benefits from sourcing are lost Illustrative Increased Results from Sourcing & Spend reduction of More Effective P2P Improve compliance Demand Mgmt 150M$ after 3 years Operations from 50% to 90% Activities Better Spot Increased Efficiency Higher Increased Buys and Increased visibility savings – Frequency of Saving % per ImprovedSpend Under from better lower cost of Sourcing Sourcing ComplianceManagement spend buying Events Event to PSLs and management operations contracts 150M$ from 50% to 90% compliance = 60M$ 150M$ at 50% compliance = 75M$ 20M$ incremental spot buy savings $ on the table $ in your pocket *50% compliance assumed is enabled by P2P For every 1B$ of indirect spend, 155M$ tangible spend reductionCopyright © 2013 Accenture. All rights reserved. 4
  5. 5. More is asked of High Performers and More is delivered –controlling the spend throughout the lifecycle Best Practice in Requisition to Pay Best Practice in technology Identified and mapped Req 68% Integration of Source to 49% to Pay process 28% Pay technology / modules 12% Integration of Req to Pay 81% 73% Master data strategy processes and technology 34% 31% Buying channel strategies 73% 55% Data visibility identified 19% 10%Integration with suppliers to 58% 60% Supplier integration streamline Req to Pay 10% technology 19% process Master Non-Master Master Non-MasterAccenture high performance procurement survey analysed responsesfrom 432 procurement organisations across a broad range of industriesworldwide.Copyright © 2013 Accenture. All rights reserved. 5
  6. 6. Our research indicates that procurement will evolve acrosssix dimensions and that P2P will be a key enabler for this Networks – Contribution to with suppliers, other buyers and Innovation – business results – other business partners additional business grow sales/revenue opportunities & optimize costs Procurement Opportunities Technology – Risk Management – increased flexibility through market volatility, unexpected evolving technologies Analytics – external events, financial crisis, supporting strategic decisions global operations 1 with facts & figuresCopyright © 2013 Accenture. All rights reserved. 6
  7. 7. Top organisations are already applying controls and structureson top of the P2P backbone to drive greater bottom line impactContribution to Business Results 2 3 Category Ownership Priority Based Budgeting HR Marketing Supply Finance IT/IS … Fees Travel Labor & Benefits Sales1 Transport Appoint Senior Category Visibility … Owners, aligned with Procurement Category Mgt Define consumption policies, optimized Create bottom-up budget starting specifications and optimal sourcing from a zero base, adhering to strict strategies. Sourcing Execution policies 5 4 Control & Monitoring P2P- Buying Operations Provide full transparency on ‘who- Monthly Variance Report by Sub Category and Entity Level - Example figures - Apr-08 spends-how-much-on-what’ in USD Entity xyz Cost Category Budget Mon Actuals Mon Var Mon Var Mon % 01 Fees 12,984,168 11,454,191 1,529,977 12% 0102 Insurance 7,543,567 6,209,382 1,334,185 18% 0104 Audit Fees 2,599,883 2,389,493 210,390 8% 0105 Recruitment 1,508,845 1,392,830 116,015 8% 0106 Legal Fees 677,786 809,392 -131,606 -19% 0107 Consultant Fees 197,196 190,002 7,194 4% 0108 Medical fees 456,890 463,092 -6,202 -1% 02 Travel & Meetings 16,280,335 17,079,003 -798,668 -5% 0201 Flights 3,320,554 3,492,099 -171,545 -5% 0202 Lodging 6,065,169 6,209,392 -144,223 -2% 0203 Meetings & Events 2,659,867 2,589,383 70,484 3% 0204 Meals 2,426,755 2,393,299 33,456 1% 0205 Ground Transportation 1,807,990 2,394,830 -586,840 -32% 06 Telecom 2,795,000 2,167,667 627,333 22% 0601 Mobile Services 2,089,000 1,628,739 460,261 22% 0602 Telephone Services 706,000 538,928 167,072 24% TOTAL TOTAL 47,769,282 46,253,864 1,515,419 3% Track actual variances against the budget and document during monthly Drive spend into compliant buying meetings to ensure budget achievement channels, while constantly reducing spot by year end buys, all in the most efficient way.Copyright © 2013 Accenture. All rights reserved. 7
  8. 8. The economy is already increasingly networked and procurement teamswill need to collaborate more broadly to realise value in the futureNetworks & Innovation Impact in the future Transactional spend catered by Impact today Networked Economy Supplier Leverage Strategic Relationship Management Supplier NetworkSpend Non-Critical Bottleneck Criticality Supplier Portal From structured roles… …to flexible innovation networks New requirements for P2P and procurement technologyCopyright © 2013 Accenture. All rights reserved. 8
  9. 9. Thank youQuestions ?Copyright © 2013 Accenture. All rights reserved. 9

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