As we consider the disruptions shaping our future supply chains – Big Data, machine learning, predictive analytics, artificial intelligence – we realize it’s an understatement to say that data is the foundational conduit in our ability to exploit these technologies to drive supply chain excellence. Hear a seller and buyer share their experiences, challenges, and recommendations for driving process and supply chain efficiencies through data governance best practices with electronic procurement.

1. BEST PRACTICES IN DATA GOVERNANCE
AND INTEGRATION FOR
DRIVING SUPPLY CHAIN EXCELLENCE
SIMEON CHIGER
MSC’S DIRECTOR, EPROCUREMENT
& LAST MILE SERVICES
KELVIN BURNETT
JM SMUCKER’S ASSOCIATE
SOURCING MANAGER, INDIRECTS

2. WHAT YOU’LL BE LEARNING ABOUT TODAY…
 Future of supply chain
 Importance of accurate data
 Buyers & sellers are ‘partners’
2 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence

3. DISRUPTIONS THAT WILL SHAPE OUR FUTURE SUPPLY CHAIN …
3 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence

4. AGENDA
 Buyer / Seller Introductions, Journey & Challenges
 Why Technology & Data Matter
 Recommendations
 Summary
 Q & A
4 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence

5. 5 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
JM SMUCKER
KELVIN BURNETT, ASSOCIATE SOURCING MANAGER, INDIRECTS

6. JM SMUCKER FAMILY OF BRANDS

7. JM SMUCKER’S JOURNEY TO ARIBA PROCURE-TO-PAY
7 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
since 1998
JM Smucker
Founded
Transformation
Acquisitions
ERP Enterprise-wide
Supply Chain
“Synergy” Program
Wave 1 Ariba:
e-Invoicing
Wave 2 Ariba:
P2P
ERP

8. JM SMUCKER’S KPI AND MEASUREMENTS
8 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
≥ 85% Requisition Accuracy
≥ 85% PunchOut / Blanket POs
≤ 5% P-Card / Non-Catalog
≤ 30 Days PO Aging
≥ 99% On-Time Delivery
≤ 90 PO Cycle Time
≤ 3% INV HLD – RNV/PPV/IPV Tracking
≤ 1% Non-PO Invoices
≥ 75% Spend Management

9. JM SMUCKER’S TOP 3 CHALLENGES
9 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
Change
Management
Compliance Integrating ERP
with P2P
1 2 3

10. 10 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
MSC
SIMEON CHIGER, DIRECTOR, EPROCUREMENT & LAST MILE SERVICES

11. World Class
Data
& MDM
MSC’S TECHNOLOGY & ECOMMERCE JOURNEY
11 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
Internet Retailer
of the Year 2016
1st ePro &
PunchOut
Integrations
Quote to
PunchOut
m.dot
mobile site
2016 Revenue: $2.9B
with eComm Sales
~60%Download Cart
& “eVend”
Solutions

12. METRICS MATTER: HOW MSC MEASURES SUCCESS
12 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence

13. MSC’S TOP 3 CHALLENGES
13 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
Accurate
Transactional Data
Disconnect
between HQ &
Operations
Value Creation
1 2 3

14. 14 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
WHY DATA &
TECHNOLOGY MATTER …
RESEARCH AND THIRD PARTY VALIDATION

15. 15
WHY EPROCUREMENT TECHNOLOGY MATTERS
Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
Source: Aberdeen Group Study, 2014
Companies that employ
eProcurement technologies
realize …
64%
reduction
in “off contract”
spend
66%
reduction
requisition-to-
order cycles
58%
reduction
Requisition-to-
order costs
29%
increase
total spend under
management

16. 16
BY FOCUSING ON PRODUCT COSTS TO REDUCE OUR TCO – WE’RE
MISSING THE BIGGER OPPORTUNITY WITH THE OTHER 92%
Inventory and
Operational Costs
Procurement
Costs
67%
25%
8%
Product
Costs
Sources: Industrial MRO: Mapping the New Market
Opportunities, Beroe Inc. TCO analysis. Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
Inventory Carrying
Obsolescence
Tool Crib
Receiving & Inspecting
Material Handling
Productivity
Risk
Lean
Demand Planning
Supply Planning
Data & Supplier Management
Accounting
Expediting
The Other 92%

17. POOR MRO DATA CAN CREATE LARGE-SCALE SUPPLY CHAIN PROBLEMS
15%of plant
downtime due to poor
material supplies
17
Sources: 7 Warning Sign Your MRO Supply Chain is Out of Control, Downstream Today, Aberdeen Group Research,
MRO Data Key to Unlocking Cost Savings & Operational Efficiency for Asset-Intensive Companies, IHS
Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
62%
Order points
are wrong
81%Wrong order
quantities
of companies’ annual MRO
spending comes from only
6% of MRO items
90%
97%
Lead times
incorrect

18. 18 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
RECOMMENDATIONS

19. 19
KELVIN’S RECOMMENDATIONS
LEVERAGING PEOPLE, PROCESS AND TECHNOLOGY
Change
Management
Suggestions:
• Align to strategy
• Policy Development
• KPI Development
• Results Tracking
Benefit:
Cross Functional Alignment
Baseline Supply Chain &
TCO Metrics
Increased “Spend under
Management”
Compliance
Suggestions:
• Data Analytics
• Top Losses
• Action Plan
• Training / Retraining
Benefit:
Accountability
Strengthening internal controls
Continuing education
Integrate ERP
Processes
Suggestions:
• Data cleansing
• Standardization “off
contract” spend
• Spend rationalization
Benefit:
Accuracy throughout the
supply chain
Improved User Experience
Reduced transaction costs
Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
Crawl
Walk
Run

20. 20
SIMMIE’S RECOMMENDATIONS
LEVERAGING DATA AND TECHNOLOGYCrawl
Accurate Data
Suggestions:
• Pilot PunchOut & PO’s
• Evaluate ALL data sources
• Align contract data
• Measure Accuracy
Benefit:
Establish guidelines &
governance
Baseline performance KPI’s
Test Run
Team alignment
Walk
Alignment
Suggestions:
• Implement Governance
• Enterprise Rollout
• Change Management
• Common KPI’s
Benefit:
Full realization of cost savings
Closed loop process to
manage change
Clear ownership
Run
Value Creation
Suggestions:
• Order Optimization
• Supplier Consolidation
• Economic Order Quantities
• Site compliance
Benefit:
Collaborative
Continual Improvement
Supply chain efficiencies
Win Win
Best Practices in Data Governance & Integration for Driving Supply Chain Excellence

21. 21 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
SUMMARY

22. NOW IS THE TIME…
 Alignment & Executive Sponsorship
drives change
 Establish governance & baseline metrics
 TCO….is more than just the piece price
 Collaborative solution
 The future is now…..
22 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
SellerBuyer
SupplyChainExcellence
ReducedTCO

23. 23 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence
Q & A

24. THANK YOU!
Simeon Chiger
chigers@mscdirect.com
www.mscdirect.com
Kelvin Burnett
Kelvin.Burnett@JMSmucker.com
www.jmsmucker.com
24 Best Practices in Data Governance & Integration for Driving Supply Chain Excellence

25. 25PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights
reserved. ǀ Public
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