How to build an E-procurement Machine - Concept to-control


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How to build an E-procurement Machine - Concept to-control

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  • Rob to open / introduce: Thank you for joining us and welcome to today’s roundtable session. Today, we’re going to talk about how as procurement professionals, we can work to optimize two very important variable. These variables are TIME and IMPACT. Of course it goes without question that all of us are constrained by TIME, and updoubtedly we want to make the greatest IMPACT possible at our organizations when it comes to optimizing PROCUREMENT and SPEND MANAGEMENT processes, but how do we do that? So, we’re going to take it STEP by STEP and we’ll discuss how to go from CONCEPT formulation thru….all way to optimized spend CONTROL….
  • I’m Rob Bernshteyn, CEO of Coupa Software and I will be leading today’s roundtable discussion. I’m very lucky to have with me Dee Harnish of Berkshire Bank. Dee joined Berkshire Bank to build their purchasing department. She is leading some very exciting efforts to completely transform the procurement function there and today we will discuss some of her experiences, as well as some of the things all of you are experiencing as heads of procurement in your organizations.
  • But first, let me take a moment to tell you about the company, I have the privleage of running. Coupa is the….We Empower organizations to…
  • Now let me turn it over to Dee to tell us about Berkshire Bank and kick us off…
  • Dee to present:At Berkshire Bank, our concept was simple enough – to increase procurement efficiency and spend control. We made it our mission to: capture and analyze all of the Bank’s spend in a single database, control costs, improve performance, reduce procurement processing time, gain spend visibility, enforce policies, reduce paper and manage risks.But just saying “increase efficiency and control” is not enough to really move the project forward.
  • Dee to present:So we developed the concept more. We thought about how we would want and need to control spend and came up with 4 areas that would solidify our concept a bit more so we could start developing an actionable plan. We knew that to get spend under control we needed to have something in place that was:Accessible: All branches and departments must be able to access and must leverage the same processes for efficiency and compliance, as well as the same suppliers in order to take advantage of negotiated prices and volume discountsInnovative: We knew we wanted something that was SaaS, cloud based since it is easier to implement and maintain (no hardware or software to buy), and we wanted to make sure the experience was something that users would already have some familiarity with (i.e. online shopping) in order to accelerate user adoptionsAutomated: This was key. We already had an archaic, manual process in place that we really wanted to move away from, so whatever we did it need to eliminate those paper based pains and ensure that all spend received the proper review and approval before anything is purchasedAccurate: Having access to real-time data and being able to take immediate action to eliminate wasteful spend would also be important to help budget owners really make sure they stay on track and within spend targets.
  • So, now lets take a moment to hear from you.Have any of you been challenged with clearly articulating and getting buy-in on conceptual goals for a procurement initiative, and how did you over come that?Great, well challenges and all once the goals are set any level, making them a reality is another story.Lets talk about the next step..
  • Dee to take over presentation:We knew it was essential to develop a plan if our concept had any shot at becoming reality, so we did three things to make that happen.
  • Dee presents:The first thing we did was created a steering committee that would be responsible for developing a plan that meets the needs and requirements of the organization as well as the end users. We wanted to ensure that anyone who would be impacted by the system would have their opinions heard and concerns addressed. Our steering committee consisted of representatives from various branches, IT, facilities and AP.
  • Dee presents: Once we had our steering committee assembled, they set out to start understanding user needs and put together a list of requirements. The steering committee made a point to not operate in a vacuum, they collaborate with users across the organization to get feedback on what’s working, what isn’t, how purchasing is a part of their day-to-day worlds. It was very interesting what we discovered…Armed with an aggregated list of needs and requirements, the steering committee then set out to prioritize the list so we could focus our efforts on the 80% that will make a real impact to the purchasing process.
  • Dee presents: When we had our requirements list together, we started our vendor evaluation process. We really took a hard look at a wide range of solutions, from your basic P2P systems to your more complex, full integrated spend management solutions. We looked at on-demand and on-premise solutions. Once our initial evaluation was complete, we then created a short list of 3 that included SpendMap, Ariba and Coupa. After we further vetted out the solutions, gave them a try in our environment and let users weigh in on their experiences, we selected Coupa Cloud Spend Management, which is delivered on-demand, in the cloud and provided a robust set of P2P functionality, workflow automation, dashboards and benchmarks and other innovations like expense management we hadn’t initially thought of, but will add even more value to what we are trying to accomplish.
  • So, what about the planning process, what challenges have folks had in this area, and how have you overcome them.Not stiking the right balance between functional requirements (feature requirement speed and usability) that has plagued this space?So, of course planning is great but putting that plan into action is something else…
  • Dee presents:Based on our understanding of user and business requirements and with a solid plan in place, we were in a place to start executing against our plan and implementing our new procurement systems and processes.
  • Dee to present:This is currently where we are at in the concept-to-control continuum. We started our implementation process in March and will be finished by October – at the latest. Unlike many other implementations of this size – remember we are rolling out to 46 different locations – it has only taken months for us to get something ready for prime-time. That’s because we chose a cloud-based solution that required very little from us to get started.
  • Rob to present on why companies should consider the cloud:A lot of you might not be really familiar with the cloud, so I wanted to take a few minutes to just provide a high level overview of what a cloud-based solution really is. There are a lot of options out there, but the road to success leads to the clouds…
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • So, lets talk a little bit about Implementation. What are some of the challenges, you’ve faced and how have you been able to overcome them?
  • Dee to present: We know in order to make this successful and really get the kind of control we need, we must get users to adopt the new systems and processes. If they do not, their purchases and spend remain outside of the system in come in after the fact on an expense report or unexpected invoice removing the ability to control spend before it happens.
  • Dee to present:We really felt in order to drive user adoption we needed to get them involved every step of the way. So from our initial steering committee to implementation, our users have been a big part of making this happen. We are ensuring they all get trained and able to really get a feel for the system. As we go through our phased roll out, we are able to take the lessons learned from one department and are able to applies those to the next, ensuring that with each step we are getting better and having a bigger impact. And executive management has been very support in getting people on board with the change.
  • Rob to lead roundtable discussion and provide Coupa point of view on driving user adoption:User adoption is difficult to drive – and more often than not people will resist change. But by implementing an easy-to-use system with a familiar Web 2.0 interface that users inherently know how to use, you are able to really drive adoption, people will actually want to use the system…Roundtable seed questions:Do you know how much of your spend is under management?How do you drive users to adopt processes and systems?What are some of the ways you have championed change in your organization?Your concept has become a reality, you have everything in place and users are actually using the system, now let’s explore how you use this to gain control of spend.
  • Dee to present:We are really excited to get to this final stage. Once we are able to get the system completely rolled out and users actively using it, we will be able to really gain control of spend and being able to take real-time action to deliver savings.
  • Dee to present:Our ambition is bigger than just getting control over purchasing spend. We want to get 100% of indirect spend under control. That include procurement and T&E expenses. Having a centralized platform to do both will enable us to have a complete view of spend across the entire organization and take action accordingly to drive savings…[Dee to provide more detail on how they plan to utilize system reports and benchmarks to control spend]
  • From a show of hands, how many of you have 100% of spend in all categories under management? Very difficult to do, but do-able. Coupa customers are now averaging just over 88% of spend under management from our own internal analysis. We still have a ways to go in helping our customer, but we’re certainly making a dent in this.
  • So, back to our opening slide. Time is limited. Impact maximization is key.Nail the concept and socialize it and move rapidly through planning, implementation, adoption and finally control by marrying best in class cloud based technologies and business process support that gets the job done.Develop your concept from an idea to something more tangibleCreate a plan that meets organization and user needsLeverage innovation to drive quick, cost-effective, and efficient implementationDrive user adoption to really get all spend under managementUtilize real-time data, alerts and action to control spend and deliver savings
  • Thank you very much. If there are any questions, we’re happy to take them.
  • How to build an E-procurement Machine - Concept to-control

    1. 1. Concept to ControlHow Berkshire Bank built an e-procurement machine that put their savings initiatives into overdrive
    3. 3. Who We Are Dee Harnish Rob Bernshteyn Purchasing CEO
    4. 4. About Us  Leader in Cloud Spend Management enterprise applications  Empowering organizations to:  Spend Less: Reduce maverick spending by ~33%  Pay Less: Lower average order costs by ~25%  Reduce Cycle Time: Reduce time to get goods by ~30%  Reduce Operating Costs: Reduce time spent on purchasing / auditing by ~20%  Improve Spend Predictability: Increase spend under management by ~20%  Total Customers: 160+ around the world  Platform Spend: Billions of Dollars with over 35,000 suppliers  Pure Cloud Platform: 99.999% uptime
    5. 5. About Us  $2.7 billion in assets  Integrated insurance and wealth management ($650 million AUM)  New England asset based lending group  Largest local regional bank  46 Financial Centers in Western MA, Eastern NY, and Southern VT  A leader in philanthropy and community involvement and leadership by providing over $12 million in funding  Committed to the RIGHT core values: Respect, Integrity, Guts, Having Fun and Teamwork  Constantly developing fresh new approaches to our customer service experience
    6. 6. Concept To increase procurement efficiency and spend control.
    7. 7. Develop the Concept Accessible • 41 branches • Consistent process, suppliers Accurate Innovative • Real-time data Efficiency • Easy to implement and maintain & Control • Immediate action • Compliance and • Would be adopted audit tracking by users Automated • Eliminate manual processing • Ensure proper review, approval
    8. 8. Roundtable Discussion – Conceptualize the Goal What ideas and concepts are you considering achieve efficiency and control? What challenges have you faced in developing your concept? How are you working around these challenges to get your concept off the ground?
    9. 9. Plan Make your concept a reality.
    10. 10. Putting A Plan in Place  Get stakeholders involved, they will be more accepting of change and will help make it happen  Start a steering committee  Include stakeholders from all areas
    11. 11. Putting A Plan in Place  Understand user needs and identify requirements  Vendor and contract management  Policies and procedures  Compliance and auditing  Reporting and budgeting  Collaborate with end users  What is working with the existing process? What isn’t? How do they use process / solution in day-to-day job?  Prioritize feedback based on impact  Aggregate and identify trends  Pick out a subset of things to tackle – doing it all is impossible and unnecessary
    12. 12. Putting A Plan in Place  Conduct a vendor due diligence  Submit an RFP, get a demo  Create a “short list”  Trial solution, test and push boundaries  Let end users have a go  Select the vendor that meets your requirements Coupa Cloud Spend Management e-procurement “lite” enterprise e-procurement Basic P2P functionality Advanced features, complex capabilities On-demand On-premise
    13. 13. Roundtable Discussion – The Plan How are you making your concepts a reality? What part of the planning process is most challenging? How are you engaging stakeholders in the planning process?
    14. 14. Implement Turn your plan into real action.
    15. 15. Innovation Fuels Accelerated Implementation  Implementation taking months – not years like an on-premise solution  Phased roll-out to 41 locations • Requisitioning • Contract • Asset • Travel & Expense • PO Generation Management Management Reporting • Invoicing • Vendor • Supplier • Reporting Management Punchout • Receiving • Budgeting
    16. 16. Why the “cloud”
    17. 17. Innovation in the Cloud Traditional Dev Model Cloud Dev Model1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades VS
    18. 18. Innovation in the Cloud Traditional Dev Model Cloud Dev Model1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades2.Difficult Independent Implementations 2.Rapid Implementation VS
    19. 19. Innovation in the Cloud Traditional Dev Model Cloud Dev Model1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades2.Difficult Independent Implementations 2.Rapid Implementation3.Multiple Code Bases 3.One Optimized Code Base VS Cloud Platform
    20. 20. Innovation in the Cloud Traditional Dev Model Cloud Dev Model1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades2.Difficult Independent Implementations 2.Rapid Implementation3.Multiple Code Bases 3.One Optimized Code Base VS Cloud Platform Non-viable long-term business model Sustainable Business Model
    21. 21. The Cloud is the Most Cost Effective • IT Support •Maintenance •Upgrade •Professional Services • IT Support • IT Support •Maintenance •Maintenance •Professional •Professional Services Services •Implementation • Implementation • Implementation • •Hardware •Hardware •Hardware •Database / •Database / •Database / Middleware Middleware • Middleware • •Software Fee •Software Fee •Software Fees • • • Year 1 Year 2 Year 3
    22. 22. Roundtable Discussion - Implementation How quickly can change happen at your organization? What are the typical bottle necks encountered? How do you work around those to get things done?
    23. 23. Adoption You can’t control what is not visible.
    24. 24. Users Drive Spend Visibility & Control  If it’s not in the system, it’s not controllable  Drive user adoption  Make it easier than any alternative  Include stakeholders in planning to develop buy in  Continuously train and educate  Champion change, lead by example
    25. 25. Roundtable Discussion - Adoption Do you know how much of your spend is under management? How do you drive users to adopt processes and systems? What are some of the ways you have championed change in your organization?
    26. 26. Control Manage spend with real-time data and action.
    27. 27. Gain Spend Visibility and Control  100% of indirect spend – purchasing and expenses – visible and under control  Infrastructure to manage, report and control spend  Reduce admin burden through automation / integration with AP / GL systems  Historical audit trails to standardize and enhance policies  Greater negotiation power and adherence to preferred vendor contracts
    28. 28. An Action Plan for Savings  Increase control over company spending  Review and approve immediately via email  Enable strategic purchasing initiative to lower costs  Make the shift from damage control to spend control  Control maverick Spending  Save 5% - 20% on every dollar under management in the system  Spend 25% less on total purchasing activities
    29. 29. Roundtable Discussion – Spend Control How do you get spend information? What enables you to take action to stop waste? How are you delivering savings to your organization?
    31. 31. THANK YOUDee Harnish Rob BernshteynPurchasing