Driving Incremental Value for your SRM Solution


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Driving Incremental Value for your SRM Solution


Presented at the SAP Procurement & Logistics Day 2012.

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Driving Incremental Value for your SRM Solution

  1. 1. 1Headline goes here if needed August 30, 2012 Copyright ©2012 Hubwoo, All rights 1 reserved.
  2. 2. 2 Agenda • Hubwoo Cloud Procurement • Real-World Success Stories – SRM in the Cloud • Driving Incremental Value to your SRMCopyright ©2012 Hubwoo, All rights reserved.
  3. 3. 3Hubwoo is… The B2B Network Company  Many-to-Many Hub of 200,000+ businesses  115 large enterprise customers  Two-sided business model  Buyers located in over 70 countries  Commerce value > € 15 Billion / year  14 languages supported  90 Million catalog items  24x7 buyer & supplier support  300,000 users connected daily  280 employees3
  4. 4. Proud to Serve Many World Class 4Multi-National Customers4
  5. 5. 5What Does Hubwoo Do? We Help Buyers We Help Sellers Source Smarter Market Smarter Buy Smarter Sell Smarter Pay Smarter Invoice Smarter • Collaboration • Best in Class Processes Through • Usability • Business Services FrameworkCopyright ©2012 Hubwoo, All rights reserved.
  6. 6. 6 Agenda • Hubwoo, Connecting Companies™ • Real-World Success Stories – SRM in the Cloud • Driving Incremental Value to your SRMCopyright ©2012 Hubwoo, All rights reserved.
  7. 7. 7RBC at a GlanceRoyal Bank of Canada (RY on TSX and NYSE) and its subsidiariesoperate under the master brand name RBC.• Canada’s largest bank as measured by assets and market capitalization, and among the largest banks in the world, based on market capitalization.• One of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis.• Employ approximately 79,000 full-time and part-time employees who serve close to 18 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries.
  8. 8. 8Key Challenges over the years  Business perspective: • Difficulty to deploy new categories of spend quickly • Customizations open the door for more customizations • Expensive infrastructure to maintain over the years • Annual maintenance and development budgets difficult to forecast  Technical perspective: • Technical expertise difficult to retain and attract • Software upgrades are tedious due to customization • Tremendous work effort on testing required • Lengthy time to market for new or enhanced functionalities • Technology upgrades (Servers, network) forcing more due diligence
  9. 9. 9Review of Alternatives Needed to upgrade to the latest software release. Decided to review alternatives – Many customizations were not configurable on the latest software release Reviewed possible solutions with different suppliers – Keeping the infrastructure behind the firewall – Keeping the infrastructure behind the firewall but managed by a third party – Hosting externally as a single implementation – Hosting externally as a single implementation but managed by a third party – Hosting externally on a multi tenant infrastructure Reviewed all options looking at overall TCO, risks, business resumption, end user and supplier impact
  10. 10. 10Strategy selected Concluded on the Multi-Tenant environment with Hubwoo  Hubwoo maintains the infrastructure, performs regular maintenance and software release updates  Hubwoo is responsible for keeping and attracting knowledgeable technical employees  The predictable cost model for the infrastructure and Hubwoo services met their requirements  We only need to maintain the technical integration back to our SAP ERP  Single sign-on, IP level security and our on site security review met the level of risk we were comfortable with Decided to upgrade Procure-to-Pay infrastructure to a Source-to- Pay Infrastructure which includes:  SAP SRM – Online purchasing and Electronic Invoicing delivered On-Demand  SAP Sourcing & CLM – Projects, eRFx, eAuctions, Contract Authoring, Contract Compliance delivered On-Demand  Hubwoo Supplier Portal  Hubwoo’s application added functionality like Catalogue Management etc…
  11. 11. 11 “The Plateau Effect” Conditional logic to improve invoice Master data matching accuracy synchronization Private marketplace to eliminate supplier on- Active catalog boarding management and obstacles centralization ManagedSpend Enabled supplier on- boarding, Hubwoo enablement, and support Others Inherent S AP Integration High supplier transaction costs Supplier paid model only Insufficient SAP system integration11
  12. 12. 12Other Examples - Large Global CPG Company $11B Revenues 33,000 employees Industry: Food & Beverage H Q : Illinois (US) Metrics first 6 months: Operations in more than 40 countries, selling products in over - Global roll-out completed in NA (all sites) and 180 nations worldwide, this CPG company has one of the world’s best-loved and leading portfolios with its innovative and International trusted food and beverage brands. - 10,000 users - 10,000+ transacting suppliers Cloud Solutions - 14,000+ suppliers enabled globally SRM, - powered by S AP® software - 130,000 non-PO invoice suppliers The Business Network - 10,000 purchase orders / month - Catalog Content Management - Invoice Management - 300 catalogs, 1M SKUs - $100M in spend per month Implementation - Go-Live: November, 2009 - Global spend $566M - Global Design, Phased Rollout S tarting in US - Integration to 4 backend systems - Global supplier program - 60,000 S uppliers to adopt in initial phase - Change Management Campaign Globally12
  13. 13. 13Leveraging Procurement with SRM in the Cloud Outcomes of using Hubwoo P2P, SRM in the Cloud & the Business Network, in the Cloud What could this mean for you? Real life example: Multinational Manufacturing CompanyCopyright ©2012 Hubwoo, All rights reserved.
  14. 14. 14 Spend VisibilityTHEN NOW• 35 Catalogs - 80K Skus - $30M 100 Catalogs – 1M Skus – $200M• Inconsistent pricing - <10% of items Consistent pricing - 81% of items selected from catalogs selected from catalogs• Broad category classifications Specific classifications - UNSPSC Data capture of mfr name, mfr• Little to no data capture of mfr name, mfr number, and UNSPSC number, UNSPSC code, SAP code. material number, etc Spend analysis by – Review of supplier invoices – Vendor/business unit/plant – Plant surveys – Category• Spend analysis by vendor, plant, – Product description – Average order size
  15. 15. 15 Maverick SpendTHEN NOW Less visibility of preferred suppliers,  More catalogs/skus – greater products, and pricing visibility of products and pricing Three systems for ordering  One system - easy ordering process  19% of orders reviewed by buyers 90% of orders reviewed by buyers (FFEs) Inadequate reporting to capture lost  Adequate reporting to capture lost savings savings and drive compliance
  16. 16. 16Resources/AdministrativeTHEN NOW 200 suppliers on board in 2 years • 950 suppliers on board in 10 Manual invoice posting by 6 months people • Electronic invoicing – reallocated 3 people reviewing ~300 staff (3 people in 4 months) requisitions per day • Review of ~30 FFEs per day; more Countless hours collecting and time for sourcing manipulating data for sourcing • Spend analysis reports containing data required for setting strategies and sourcing
  17. 17. 17Value of Cloud SRM• Quick implementation• Ongoing support and application upgrades/enhancements• Spend visibility to drive savings through vendor consolidation, standardization, and sourcing• Frees up internal resources for other value-added activities• Better compliance and controls through catalogs and easy-to- order application• Improved business processes through best practices• Faster on-boarding of suppliers and order automation• Electronic invoicing
  18. 18. 18 Agenda • Hubwoo, Connecting Companies™ • Real-World Success Stories – SRM in the Cloud • Driving Incremental Value to your SRMCopyright ©2012 Hubwoo, All rights reserved.
  19. 19. 19 The Business Network Effect Connect Once — Connect All Rapid Supplier On-Boarding Transaction Automation Catalog & Search Master Data Exchange High Transparency19
  20. 20. The Business Network - Catalog & Search 20Additional Spend Categories and Wider Adoption Catalog & Search  Catalog Manager  Collaboration solution to support the content authoring workflow between suppliers and buyers  Validation of content against customer specific rules  Only approved supplier catalog items will show up in Catalog Search • Search  One user interface for all supplier catalogs supporting cross-supplier shopping carts  Provide all item information required for simple and fast order process of goods and services  Quick Quote  Provide controlled quick quote capability to end-users to avoid free-form request  Request can be send to several approved suppliers to check for the best offer20
  21. 21. 21Holistic Invoice Management 1. 100% Electronic Invoice Presentment  Integration to suppliers’ systems  Portal: PO Flip, GR Flip, Invoice Entry  Paper Invoice Processing Service / Mass Invoice Upload 2. Invoice Validation  “Pre-matching” based on buyer’s business rules  Validation to country-specific legal requirements  Advanced and qualified digital signatures 3. Invoice Matching & Reconciliation  Hubwoo on-demand matching capabilities  PCard Reconciliation based on Bank Card Feeds  Strategy & Project  ERP: Invoice pass-through to Accounts Management Payable via eConnect integration  Implementation  Supplier Enablement  Integration Services  Buyer & Supplier Support21
  22. 22. 22 New: Invoice & Payment Status Business Purpose: Eliminate invoice & payment status inquiries to accounts payable dept. • Provide invoice status information from buyer’s ERP(s) for ALL suppliers on The Business Network, independent of the various delivery and receive services (Hubwoo, Fax, Paper, entered into ERP, etc.) • Pulls status info directly from customer ERP • Hubwoo performs all supplier on-boarding to the Business Network • Customer sends letter to suppliers that within 30 days it will no longer accept phone inquiries for invoice status and payment status. • Linked Features: Alerts, Dispute Management, PDF upload22
  23. 23. 23Vision: Beyond Simple Procure-to-PayA Business Services Framework for Incremental Value Today’s P2P Baseline + Supply Chain optimization for direct materials + Supplier Risk Management + Big Data analytics tools for community buying, benchmarking, global economy forecasts + Mobility to provide access for millions and enable services + SMB access to expand the ecosystem Today 2012 2013 PO / PO Change RFx’s / Network Tendering VMI PO Response Qualifications Forecast Collaboration Advanced Ship Notice Scorecards Kanban Goods Receipt Notice Ratings Planning Schedules Service Entry Diversity Information Payables Auctions Service Entry Response Supply Risk Information Trade Financing Invoice Supplier Discovery Financial Risk Information Invoice Response Publish public tenders Dynamic Discounting Credit Advice Add supplier to RFx Commodity Price Trends Payment Contract Collaboration Real Time credit scoring Remittance Advice Advertising Factoring Master Data Marketing Packages ….2323
  24. 24. 24 Questions?Copyright ©2012 Hubwoo, All rights reserved.
  25. 25. 25 Contact Info: Tracy Cunningham Sales Director, UKIB tcunningham@hubwoo.comHeadline goes here if needed 094 704 +44 (7776) www.hubwoo.com contact@hubwoo.com Copyright ©2012 Hubwoo, All rights 25 reserved.