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Procurement Evolution – Measures of Success
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Procurement Evolution – Measures of Success

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For over a decade, Cox Enterprises, Inc. has been on a journey to use technology, innovation, and collaboration to drive ever-increasing procurement efficiencies. In this session, you'll learn......

For over a decade, Cox Enterprises, Inc. has been on a journey to use technology, innovation, and collaboration to drive ever-increasing procurement efficiencies. In this session, you'll learn about the company's first steps of success that were taken over 12 years ago, the trials and tribulations they faced, and how those challenges have shaped the future.

Particular points of discussion will include: selecting and implementing a technology partner; collaboration and support between IT, Supply Chain, and AP; e-procurement evolution; and developing the dashboard that the exec board cares about.

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  • 1. Procurement Evolution – Measures of Success Brooke Krenn Senior Manager, Procurement Systems Cox Enterprises, Inc. #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
  • 2. Procurement Evolution - Measures of Success For over a decade, Cox Enterprises, Inc. has been on a journey to use technology, innovation and collaboration to drive ever-increasing procurement efficiencies. In this session, discover the first steps of success that were taken over 12 years ago, the trials and tribulations faced, and how they shape the future. Particular points of discussion will include: Selecting and Implementing a Technology Partner; Collaboration and Support between IT, Supply Chain and AP; eProcurement Evolution; Developing the Dashboard that the Exec Board Cares About. 2 © 2014 Ariba – an SAP company. All rights reserved.
  • 3. • • • • • • 3 Leading communications, media, and automotive services company Top 10 national player, based on revenues, in every major business category where we compete Major subsidiaries are Cox Communications, Manheim, Cox Media Group, and AutoTrader Group Revenues of nearly $15 billion 10-year compound annual growth rate: 7.5% More than 50,000 employees © 2014 Ariba – an SAP company. All rights reserved.
  • 4. Each of the Cox business units: • Has independent ERP System (Oracle x4 and Great Plains) • Has its own Supply Chain • Has unique purchasing needs …So how do we capitalize on the purchasing power for the “indirect” spend across all divisions? 4 © 2014 Ariba – an SAP company. All rights reserved.
  • 5. Rewind to 2001 Implementation of first enterprise-wide catalog system, powered by Clarus (later Epicor) • Focused on catalogs to assist administrative assistants’ duties: Office supplies Catering Business Cards, Letterhead, etc. • • • 5 Multiple ERP Systems = no cost-effective way to integrate back-end processes All purchases settled with individual Procurement Cards All manual administration – workflow, hierarchies, month-end process, etc. © 2014 Ariba – an SAP company. All rights reserved.
  • 6. The Learning Years – 2002-2008 So if our eProcurement program isn’t mandated, how do we communicate benefits and get users on board? • “Go where we’re loved” approach: Added suppliers as requested – no true strategy for scalability Took on time-consuming, manual processes to make system easier for end users Accommodated any and all “one off” requests to grow program 6 © 2014 Ariba – an SAP company. All rights reserved.
  • 7. 2009 – Replacing the Dinosaur • • • • Existing eProcurement solution no longer meeting business needs Economic struggles = divisions more open to centralized solutions Opportunity to revitalize eProcurement – rebrand and relaunch Informal internal assessment and RFP Wanted buy in from divisions Well defined strategy/vision for a sustainable program Speed to market… #1 priority! 7 © 2014 Ariba – an SAP company. All rights reserved.
  • 8. Commence Project: “Internal eProcurement Replacement Assessment” • Needed a solution that: Appealed to users – easy to use Could be implemented extremely quickly Our suppliers would be familiar with/adopt quickly Worked with our multiple ERP systems Required minimal internal IT resources for implementation (hosted) 8 © 2014 Ariba – an SAP company. All rights reserved.
  • 9. Introducing… • • Ariba Procure-to-Pay 14-week implementation 16 punch out catalogs 1,500 users • Training and Change Management Live and recorded webinars Intranet spotlight/email communications Help guides, video tutorials 9 © 2014 Ariba – an SAP company. All rights reserved.
  • 10. The “NEW” Cox MarketPlace All charges settled with Supplier Cards/Ghost Cards – a new concept for users • • Accounting info entered before submitting orders Defined approval limits and workflow • • 10 No reconciliation at end of P-Card cycle – tracking down receipts, etc. All history/audit trail in system = happy managers and happy auditors © 2014 Ariba – an SAP company. All rights reserved.
  • 11. Talking about an EVOLUTION… New platform = new opportunity to define Cox’s vision of eProcurement • • • • • • 11 Who is our target audience? What kinds of catalogs and suppliers? When will we know we are “succeeding”? Just where exactly is our spend? Why should our employees use the system? And how on Earth do we keep everybody happy? © 2014 Ariba – an SAP company. All rights reserved.
  • 12. An Opportunity to Collaborate • • • Multiple business units implementing new ERP platforms New policies, procedures, processes Opportunity to partner with A/P and IT Clearly defined ways to order When to use Ariba P2P vs. P-Card vs. Oracle PO? • • 12 © 2014 Ariba – an SAP company. All rights reserved. First true successful partnership between A/P and Supply Chain Joint communications from AVPs Led to creation and formation of Procurement Council between all divisions
  • 13. So now we’re all on board… What does success look like – how do we know we are growing? • • • Need to communicate trends to Procurement Council and Senior Leadership Black and white/transparent data and reporting for accountability Developed a formal SLA and identified KPI’s for Procurement Systems Team • Developed executive dashboard Senior leadership “wants the numbers”, but what is truly useful and important? How do you ensure your data is timely and accurate? 13 © 2014 Ariba – an SAP company. All rights reserved.
  • 14. Things just keep getting better… To keep moving forward with a Best in Class Procurement team: • • • • Keep internal customers engaged and senior leadership supportive Stay on top of industry “leading practices” Policy adherence and auditing Track and report key metrics Volume – spend, transactions Time to requisition approval Exception reporting 14 © 2014 Ariba – an SAP company. All rights reserved.
  • 15. Questions? 15 © 2014 Ariba – an SAP company. All rights reserved.