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Eim220-EIM220 – Improved Visibility Through Spend Analysis
 

Eim220-EIM220 – Improved Visibility Through Spend Analysis

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EIM220 – Improved Visibility Through Spend Analysis

EIM220 – Improved Visibility Through Spend Analysis

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    Eim220-EIM220 – Improved Visibility Through Spend Analysis Eim220-EIM220 – Improved Visibility Through Spend Analysis Presentation Transcript

    • EIM220 – Improved Visibility Through Spend Analysis SAP Spend Performance ManagementCopyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
    • In This Session… 1. Understand how SAP Spend Performance Management can help high performing companies to effectively source, negotiate with suppliers, and ensure compliance by improving visibility into their spend information. 2. See how Accenture has added immense value to the procurement process of one of its top customers by helping them cleanse the procurement data without using any third party data enrichment services 3. Discover how Accenture has addressed direct procurement related gaps in the standard product by developing custom reports and strong analytics 4. Get a quick preview of Accenture’s strong credential in this product arena, in house developed accelerators and assets that drastically reduce the implementation timeline 5. Short DemoCopyright © 2011 Accenture All Rights Reserved. 2
    • Agenda 1. Industry Challenges 2. SPM – A walkthrough 3. Case Study 4. SPM Offering at Accenture 5. Short Demo 6. Q&A 7. SummaryCopyright © 2011 Accenture All Rights Reserved. 3
    • Typical Situation in ProcurementCompany growth (e.g. through mergers & acquisitions) – Many ERP systems – Divisional Procurement unitsTransparency of decision-critical information often missing – “Low hanging fruits” already realized – looking for new savings opportunities – Difficult to manage Procurement performance (e.g. compliance issues) Desired Benefit Stream Savings TCO Typical Benefits TimeHow can you unlock and sustain the next wave of savings?Copyright © 2011 Accenture All Rights Reserved. 4
    • Complete visibility of Procurement ProcessIt can be quite difficult to answer the following questions, accurately, in a timelymanner, across all sites/divisions. Top ten Spend per Number of supplier suppliers? suppliers? hierarchy? Spend per % spend / Spend per BU / category? suppliers managed? country? Procurement savings & cost avoidance? Contract % of on-time compliance? deliveries? Supplier compliance with SLAs ? “Standard” topics “Advanced” topics Copyright © 2011 Accenture All Rights Reserved. 5
    • Top Priorities of every CPO Create a complete spend picture for the Manage organization Reduce Supplier Systematically identify procurement savings Spend Risk opportunities Determine supplier risks in advance, insulating the business from supplier disruptions Increase spend under management Increase Cost Reduce maverick spending and contract leakage SavingsCopyright © 2011 Accenture All Rights Reserved. 6
    • High Performers use automated solutionsThe value of user friendly ad hoc reporting capabilities is Best-In-Class enterprises have their reliance on spendseen by over 70% of the masters who deployed analysis automation and reflect the notion that these top-technology allowing timely reports driven transparency performing enterprises have leveraged technology tointo the organization. achieve desirable performance and drive value to the Best practice in technology greater enterprise (Percentage of responses) Technology support 82% sourcing 8%Common and automed R2P 79% platform 3% 46% Self-service e-Invoicing 5% Supplier integration 65% technology 5% Procurement master data 76% harmonization 1% 71% Reporting excellence 5% Master Low perf ormer Source : Accenture research and insights into Source: Aberdeen Group, Dec 2009 procurement performance mastery, 2007 Copyright © 2011 Accenture All Rights Reserved. 7
    • Poor spending analysis capabilities…81% of the companies place high value Only 51% of enterprises have a Those with formal programs only cover halfon spend analysis function formal spending analysis program of company-wide spend, on average 1% 2% 16% Formal 49% spend program 81% 51% Slight/No Value Neutral Moderate Value High Value Source: Aberdeen, Spending Analysis Benchmark Report, 2003Source: Aberdeen Group, Dec 2009 Only 8% companies have automated the Spend Analysis process Source: Aberdeen Group, Dec 2009 Copyright © 2011 Accenture All Rights Reserved. 8
    • Agenda 1. Industry Challenges 2. SPM – A walkthrough 3. Case Study 4. SPM Offering at Accenture 5. Short Demo 6. Q&A 7. SummaryCopyright © 2011 Accenture All Rights Reserved. 9
    • Do you know what is SPM? Spend Performance Management • Analytical application built on top of standard SAP BW • Flexible drag and drop interface for ad-hoc reporting • Prepackaged with 130+ out of the box reports • Current release is SPM 2.1 and SPM3.0 is in ramp-up Solution Highlights • Aggregate data from SAP and non-SAP sources • Standardize and enrich enterprise-wide spend data • Conduct in-depth analyses • Highlight non-compliance • Manage supplier riskCopyright © 2011 Accenture All Rights Reserved. 10
    • Spend Analysis Life CycleStep 1: Opportunity Identification Step 2: Data Extraction • Identify data sources • Define data extraction templates • Define enrichment strategy • Extract Data Step 2: Extract Data • Aggregate & structure data GL Oracle Data Step 1: Identify Step 3: Data Cleansing (Optional) Other Vendor Item Knowledge Knowledge Step 3: Enrich • Supplier Normalization Travel Data Base Base Feedback • Spend Classification Corporate Purchasing Card Step 4: eProcurement Analyze Steps 4: Reporting & Analysis Freight Suppliers, • Publish data to Spend Analysis Telecom & Others • Reports and Dashboards • Identify saving opportunities 11 Copyright © 2011 Accenture All Rights Reserved.
    • SPM can help you to…• Automate data capture • Highlight single supplier from disparate systems dependencies• Data accuracy for faster • Establish supply risk insights mitigation priorities Gain Spend Reduce • Contextually understand• Ad-hoc Reporting and Visibility Supplier spend volume at risk dash-boarding Risk Spend Performance Management Increase • Over 130 out of the box• Set up performance Spend Identify KPIs and Analytics targets on critical Under Savings • Find and act on savings success factors Management Opportunities potential via E-Sourcing• Collaborate effectively to integration act on insights • Proactively monitor contract complianceCopyright © 2011 Accenture All Rights Reserved. 12
    • Agenda 1. Industry Challenges 2. SPM – A walkthrough 3. Case Study 4. SPM Offering at Accenture 5. Short Demo 6. Q&A 7. SummaryCopyright © 2011 Accenture All Rights Reserved. 13
    • A world leader in premium audioChallenges and Opportunities• Visibility into spend and savings (forecast and actual), performance, and contracts• Non-standard processes and disparate systems across regions and business units• Manual and paper-intensive processes with limited controls• Limited ability to identify savings, reduce costs and mitigate risks• Reliable cost estimates for customer quotationsAccenture Approach Results & Benefits • Develop a global integrated scalable system which • Integrated view of the procurement and supply chain would enable them to standardize processes and activities and the associated interactions with suppliers policies, improve operational efficiency, identify • Standardized processes and policies across regions further savings and improve availability of information and business units for effective decision making • Improved availability of information (not just data) • Gain visibility into spend by implementing Spend when needed for effective decision making and to Performance solution drive savingsCopyright © 2011 Accenture All Rights Reserved. 14
    • Standard SPM Solution – Fit/Gap Analysis Solution selected for the following reasons • Invoice (Spend) reports • How much was my historical spend (by material/supplier/plant)? • Drill down/up feature Gaps identified in the Standard SPM Solution • Direct Procurement • Classification • Payment Terms • Purchase Order (Committed Spend) reports don’t work wellCopyright © 2011 Accenture All Rights Reserved.
    • How to solve spend data challenges? Supplier master data from each ERP Supplier Normalized Supplier business division is mapped to the Supplier 1 global supplier data. The mapping PO Box 55, PortsmouthDivision #1 Hants PO6 is done by Accenture process team Purchase $150,000 along with client’s business team. SUPP 1 Supplier 1 PO Box 55, Portsmouth P O Box 55, Portsmouth Hampshire PO6 3AU Hampshire PO6 3AU Purchase $250,000 Purchase $600,000 SUPPL 1Division #2 PO Box 55, Portsmouth Create a global supplier data with Hampshire PO6 3AU parent child linkages for Supplier Purchase $200,000 Enrichment. • Standard Supplier NamesDivision #3 • Addresses • Locations • Parent-Child Linkages Global Supplier Similar approach is followed to address Spend Classification.Copyright © 2011 Accenture All Rights Reserved. 16
    • Address Direct Procurement gaps… • Sales/Operational forecast data is extracted from future demands • The future demand consists of the data from POs, PR’s schedule lines Division #1 Division #1 Sales Operational Forecast & Forecast Price Division #2 Yearly SPM Monthly Division #2 Division #3 Division #3 • Upload target and negotiated price on regular basis • Compute savings based on target versus negotiated comparisonCopyright © 2011 Accenture All Rights Reserved. 17
    • Agenda 1. Industry Challenges 2. SPM – A walkthrough 3. Case Study 4. SPM Offering at Accenture 5. Short Demo 6. Q&A 7. SummaryCopyright © 2011 Accenture All Rights Reserved. 18
    • Spend Management Offering at Accenture• State of the art SAP SPM 2.1 demo environment• Offering with accelerators in the form of How to Guides, Templates, Manuals, etc• Strong relationship with the SAP SPM product development team at SAP Labs SAP SPM 2.1 demo Key Accelerators landscape with connect Master Data Collection Guide systems: Transactional Data Collection Guide Configuration Guide • SAP SPM 2.1 Demo User Training Manual • SAP E-Sourcing 5.1 Sample Cutover Plan • SAP BW 7.0 Scoping Questionnaire Business Blueprint Data Validation Guide Functional Design Template Technical Design Template Copyright © 2011 Accenture All Rights Reserved. 19
    • Agenda 1. Industry Challenges 2. SPM – A walkthrough 3. Case Study 4. SPM Offering at Accenture 5. Short Demo 6. Q&A 7. SummaryCopyright © 2011 Accenture All Rights Reserved. 20
    • Out of the box Dashboards• Snapshot of key performance indicators specific to user role• Out of the box role based dashboards• Ability to personalize and create custom dashboardsCopyright © 2011 Accenture All Rights Reserved. 21
    • Online/Offline Briefing Book • A briefing book is a collection of snapshots of reports, dashboards, or both. • Capture the information displayed in reports and dashboards in briefing books to conserve a view of the data. • View reports offline through briefing book viewer.Copyright © 2011 Accenture All Rights Reserved. 22
    • Performance Monitoring• Keep track of the most important KPIs• Quickly identify the top 5 contributors• Set goals for each of the KPIs and drive the business to work toward the goalCopyright © 2011 Accenture All Rights Reserved. 23
    • Actionable Integration with E-Sourcing • Identify the savings opportunity • Initiate the sourcing event to reduce cost • Create E-Sourcing Project, RFx, AuctionCopyright © 2011 Accenture All Rights Reserved. 24
    • Supplier Risk Analysis (Optional)• Snapshot of supplier risk analysis• Out of the box supplier risk reports• Identify high risk suppliers using risk attributesCopyright © 2011 Accenture All Rights Reserved. 25
    • Agenda 1. Industry Challenges 2. SPM – A walkthrough 3. Case Study 4. SPM Offering at Accenture 5. Short Demo 6. Q&A 7. SummaryCopyright © 2011 Accenture All Rights Reserved. 26
    • Q&ACopyright © 2011 Accenture All Rights Reserved. 27
    • Agenda 1. Industry Challenges 2. SPM – A walkthrough 3. Case Study 4. SPM Offering at Accenture 5. Short Demo 6. Q&A 7. SummaryCopyright © 2011 Accenture All Rights Reserved. 28
    • Summary 1. SAP Spend Performance Management helps high performing companies to effectively source, negotiate with suppliers, and ensure compliance by improving visibility into their spend information. 2. Accenture’s in-depth procurement knowledge helps customers to cleanse their procurement data without using any third party data enrichment services 3. Accenture’s process knowledge coupled with strong SAP BI capability helps customers to address direct procurement related gaps in the standard product by developing custom reports and strong analyticsCopyright © 2011 Accenture All Rights Reserved. 29
    • Thank youFor more information on Accenture’s SAPcapability, please visit: http://www.accenture.com/in-en/technology/systems-integration/sap-solutions/Pages/index.aspxCopyright © 2011 Accenture All Rights Reserved. 30
    • FeedbackPlease complete a session evaluation for thissession! EIM220Copyright © 2011 Accenture All Rights Reserved. 31