"Change" Is the New Normal - Building a
Sustainable Strategic Sourcing Program
Speakers
• Johan Duba – CSC
• Wen Buell – A...
Agenda

•
•
•
•

2

Introduction
Panel Discussion
Key Takeaways
Q&A

© 2014 Ariba – an SAP company. All rights reserved.
The Panel Team
Speakers:
Johan Duba – CSC
Wen Buell – Avon Products
Craig Fischer – LV Sands
Moderator:
Sundar Kamakshisun...
Change Is the “New Normal”

Inevitable
4

Accelerates Innovation

© 2014 Ariba – an SAP company. All rights reserved.

Imp...
Global Trends Are Driving Change in
Sourcing and Procurement

5
Top Challenges for CPOs

61% of you will have
increased cost
savings targets

44% of these targets will
be greater than
5%...
Key Levers to Maximize Savings

•
•
•
•

7

Increase “Spend Under Management” (SUM)
Accelerate Strategic Sourcing Efforts
...
Agenda

•
•
•
•

8

Introduction
Panel Discussion
Key Takeaways
Q&A

© 2014 Ariba – an SAP company. All rights reserved.
ARIBA LIVE
Sourcing Breakout session
Johan Duba
@JDuba01
March 18, 2014
CSC Proprietary and Confidential
Agenda
• Overview of CSC
• Sourcing Roll-out @ CSC

• Lessons Learned
• Next Steps

CSC Proprietary and Confidential

10
Overview of CSC
• CSC is a global IT services powerhouse.
• Solutions for 6 Major Industries:
– Chemical Energy and Natura...
Realizing the Vision of Finance
APPROACH
•
•
•
•
•

Standardize end-to-end processes and modernize systems
Dedicate experi...
Ariba Sourcing and Contracting
BEFORE

NOW

Multiple System

Single Global Tool

Contract
Databases
Contract
Redlines

• C...
Source to Settle Business Process
Opportunities in Sourcing
Business Problem
Unleveraged, non-aggregated spend affects CSC...
Program Is Moving Aggressively Forward
Realization
May 2013 to Mid-2015

BAA
Fall 2012

• Harmonized
end-to-end
processes
...
Lessons Learned

Next Steps

• Significant Investment in Training

• Regional / Local Contract Templates

– Partnered with...
Thank You!

CSC Proprietary and Confidential

March 6, 2014

17
"Change" is the New Normal:
Building a Sustainable
Strategic Sourcing Program

Wen Buell
Sr. Sourcing Analyst
Global Sourc...
Corporate Overview
Avon, the company for women, is a leading global beauty
company with nearly $11 billion in annual reven...
Product Portfolio
Beauty
Whether it’s industry-leading cosmetics, age
reversing skin and hair care, or ground
breaking fra...
Our Approach to Build a Sustainable Sourcing Program
People
Establish Global category management and strategy
development ...
Strategic Source-2-Contract Cycle
USE KNOWLEDGE TO ESTABLISH
AND ACHIEVE GOALS

ANALYZE & SYNTHESIZE
DERIVED INFORMATION

...
7 – Step Sourcing Process
1

7-Step Strategic Sourcing Process
4
6
3
5
2

Analyze
category
spend

Determine
business
needs...
Ariba Spend Visibility



Data input from multiple source systems (Enterprise One, Concur
and other legacy financial sys...
Ariba Data Sources
Data into Ariba comes from two sources: E1 and P-Card
Data Sources:

• E1: Data from Invoices
(ex: IT C...
Avon Customized Spend Visibility Dashboard
•
•

• Customized list of
fields for users to
choose
• Pivot table functionalit...
7 – Step Sourcing Process
1

7-Step Strategic Sourcing Process
4
6
3
5
2

Analyze
category
spend

Determine
business
needs...
eSourcing
Metrics at-a-glance






Run-rate at $1Billion/year

50% indirect and direct spend
through via RFx
2013 Aver...
Minimizing Change Management
Leverage Sourcing Library

Sourcing
documents to
be shared in
Library

30

Pre-built contents...
7 – Step Sourcing Process
7-Step Strategic Sourcing Process
4
6
3
5
2

1

1

Analyze
category
spend
Understand
internal sp...
Contract Management - Global Roll out
and Results
 Global

governance with regional approach

 Contract

Workflow roll o...
Contract Management Lessons Learned
Organization and design process

• Legal team’s full support and involvement is essent...
Implemented Standardized Contract Approval
Option to use Supplier paper
when required

Legal assistants are added to
help ...
KPI – Contract Creation – FY – MM / USD
Request Dept.

200.00

250

100.00

50.00

200

193

150.00

151

$66 36

Mkt

$14...
KPI – Contract Creation – FY – Status process
Number Contract Completed / In Process
140

190 - Completed
344 - In process...
Summary and Key Take-away



Change management and training are essential for project success



Clearly articulate the...
Thank You
"Change" is the New Normal - Building a
Sustainable Strategic Sourcing Program
Craig Fischer
Las Vegas Sands
#AribaLIVE
LAS VEGAS SANDS CORPORATION (LVSC)
Las Vegas Sands Corporation (NYSE: LVS)
Leading global developer and operator of destin...
EVOLVING FROM TACTICAL TO STRATEGIC
Moving procurement from a Tactical to a Strategic organization allows employees
to foc...
IDENTIFYING OPPORTUNITIES
“Unless you have the data, you are only giving me your
opinion!”
• Business need or opportunity ...
BUSINESS NEED IS IDENTIFIED
Third Party Due Diligence Forms
Internal Requestor fills out Paper Form #1. Paper Form #2 sent...
REUSE AN EXISTING SOLUTION
Getting rid of physical signatures
Bid Analysis Worksheet (BAW) is an internal document that is...
BORROW WITH PRIDE
Innovate with someone’s proven idea
For commoditized items that can be sourced from multiple suppliers, ...
CONSOLIDATE PROCESSES INTO GLOBAL STANDARDS
Example of developing standards

 100+ commodity managers (CMs) across LVSC P...
Summary - Wrap Up

Align Results to Objectives

Embrace change and not fight it!

Be Flexible

ACCELERATE SAVINGS, IMPROVE...
Thank you

Q&
A

Contact information:
Sundar Kamakshisundaram
Sr. Director – Global Solutions Marketing
E: sundar.kamak@sa...
"Change" is the New Normal – Building a Sustainable Strategic Sourcing Program
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"Change" is the New Normal – Building a Sustainable Strategic Sourcing Program

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The saying goes, “The only constant is change.” This is all the more true when it comes to sustaining a strategic sourcing program. With rising commodity costs, globalization, and regulatory pressures, procurement teams struggle to sustain savings alongside a plethora of tactical responsibilities.

Join this session where industry leaders will share how they navigate and manage their strategic sourcing programs in today’s ever-changing environments.

Learn more about Ariba LIVE at http://spr.ly/LIVE2014LV-d

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  • CSC is Not UniqueCSC has many challenges, but they are not unique in the marketplace. There are lots of similar opportunities at many of our existing and potential clientsThe ChallengeA challenge that some of our clients face, can be described this way:Over last 15 years companies grew organically, and through mergers and acquisitions, but many companies didn’t rationalize / streamline their structures or systems. As a result this left inefficient companies without a systems strategyThis can lead to: High cost structures with most finance cost/resources/effort devoted to transaction processing and reconciliation vs. decision support and strategic value Market changes have exposed inefficiencies and top heaviness with competitiveness and profitability sufferingCSC’s Compelling EventCSC, like many other companies, had a compelling event. Ours was that our cost of capital was > than our OI, so we were liquidating our company. We had to act.Solution Description Point solutions (e.g., just software or new technology) cannot solve the issues. A holistic transformational approach is required, including business process, applications, technology, data, organization, etc.The market exists, using Strategic Services as tip of the spear to expand beyond our core Systems Integration work, to add in rest of Consulting, Cloud, Cyber Security, GIS to bring a solution from problem recognition to solution delivery followed by run & maintainCSC embarked on a Finance Transformation program in August of 2012Consolidate 3 Regional SAP ERP instancesReplace eSourcing & SRM with Ariba Sourcing and P2PSourcing “Quick Win” went live October 2013
  • 135 employees in Global Sourcing and Contracting65 countriesSignificant focus on Savings tied to budgetSourcing, Contracting, Supplier Management, Business PartneringLegacy Lotus Notes Contract Database (NA, UK&I, Central Europe, Asia)Legacy Lotus Notes Contract Approval tooleSourcing (Project tracking, RFx)Manual processes, contract templates on local hard drivesRFx templates were copied from the last event.
  • Completed Activities includedBPC Target Setting Release in ProductionAriba 0.1 Release in Production141 blueprint workshops executed 44 processes and 285 sub-processes analyzed361 Development Objects rationalized (this is a very small number)29 Impact Assessment Workshops206 major business changes500+ participants from all regions, functions, and business units, including: 5 GPOs 30 SPOs 300+ SMEs 150 GBS resources 10 SAP resourcesOn-Going Activities Development and Test Planning for the Global Build is on-going Integrated, User Acceptance, and Performance Testing to follow next Calendar Year Data Cleansing and Conversion activities on-going Deployment planning underway
  • Global staged roll-out to accommodate training in all regions.Oct / Nov / DevSuper Users and project team led “business rules” discussions when should I use an RFP, RFI, RFQProvided assistance and support to users that wanted to start with RFP’s (first week) make sure they are successful to prove it works and create come healthy competition.
  • Master Opening Slide
  • Master Content Slide
  • Master Text Treatment Slide Option 1
  • Master Text Treatment Slide Option 3
  • Master Text Treatment Slide Option 1
  • Master Text Treatment Slide Option 1
  • Master Closing Slide
  • Gross Floor Area of IRs is 60,000,000 sq. ft.Total Hotel Rooms is 19,800 roomsTotal Retail Mall Space is 4,500,000 sq. ft.Total MICE (Meeting, incentives, conferences and exhibitions) Space is 5,200,000 sq. ft.Total Gaming Space is 1,660,000 sq. ft.
  • Gross Floor Area of IRs is 60,000,000 sq. ft.Total Hotel Rooms is 19,800 roomsTotal Retail Mall Space is 4,500,000 sq. ft.Total MICE (Meeting, incentives, conferences and exhibitions) Space is 5,200,000 sq. ft.Total Gaming Space is 1,660,000 sq. ft.
  • Gross Floor Area of IRs is 60,000,000 sq. ft.Total Hotel Rooms is 19,800 roomsTotal Retail Mall Space is 4,500,000 sq. ft.Total MICE (Meeting, incentives, conferences and exhibitions) Space is 5,200,000 sq. ft.Total Gaming Space is 1,660,000 sq. ft.
  • Gross Floor Area of IRs is 60,000,000 sq. ft.Total Hotel Rooms is 19,800 roomsTotal Retail Mall Space is 4,500,000 sq. ft.Total MICE (Meeting, incentives, conferences and exhibitions) Space is 5,200,000 sq. ft.Total Gaming Space is 1,660,000 sq. ft.
  • Gross Floor Area of IRs is 60,000,000 sq. ft.Total Hotel Rooms is 19,800 roomsTotal Retail Mall Space is 4,500,000 sq. ft.Total MICE (Meeting, incentives, conferences and exhibitions) Space is 5,200,000 sq. ft.Total Gaming Space is 1,660,000 sq. ft.
  • Gross Floor Area of IRs is 60,000,000 sq. ft.Total Hotel Rooms is 19,800 roomsTotal Retail Mall Space is 4,500,000 sq. ft.Total MICE (Meeting, incentives, conferences and exhibitions) Space is 5,200,000 sq. ft.Total Gaming Space is 1,660,000 sq. ft.
  • Gross Floor Area of IRs is 60,000,000 sq. ft.Total Hotel Rooms is 19,800 roomsTotal Retail Mall Space is 4,500,000 sq. ft.Total MICE (Meeting, incentives, conferences and exhibitions) Space is 5,200,000 sq. ft.Total Gaming Space is 1,660,000 sq. ft.
  • "Change" is the New Normal – Building a Sustainable Strategic Sourcing Program

    1. 1. "Change" Is the New Normal - Building a Sustainable Strategic Sourcing Program Speakers • Johan Duba – CSC • Wen Buell – Avon Products • Craig Fischer – Las Vegas Sands Moderator: • Sundar Kamakshisundaram – Ariba, an SAP Company #AribaLIVE @ariba
    2. 2. Agenda • • • • 2 Introduction Panel Discussion Key Takeaways Q&A © 2014 Ariba – an SAP company. All rights reserved.
    3. 3. The Panel Team Speakers: Johan Duba – CSC Wen Buell – Avon Products Craig Fischer – LV Sands Moderator: Sundar Kamakshisundaram 3 © 2014 Ariba – an SAP company. All rights reserved.
    4. 4. Change Is the “New Normal” Inevitable 4 Accelerates Innovation © 2014 Ariba – an SAP company. All rights reserved. Improves Agility
    5. 5. Global Trends Are Driving Change in Sourcing and Procurement 5
    6. 6. Top Challenges for CPOs 61% of you will have increased cost savings targets 44% of these targets will be greater than 5% Creating procurement process efficiencies is the top priority for CFOs and CPOs Source: 2012 CPO Agenda, Aberdeen Group 6 © 2014 Ariba – an SAP company. All rights reserved.
    7. 7. Key Levers to Maximize Savings • • • • 7 Increase “Spend Under Management” (SUM) Accelerate Strategic Sourcing Efforts Drive Contract Compliance to Prevent Leakage Practice Continuous Improvement © 2014 Ariba – an SAP company. All rights reserved.
    8. 8. Agenda • • • • 8 Introduction Panel Discussion Key Takeaways Q&A © 2014 Ariba – an SAP company. All rights reserved.
    9. 9. ARIBA LIVE Sourcing Breakout session Johan Duba @JDuba01 March 18, 2014 CSC Proprietary and Confidential
    10. 10. Agenda • Overview of CSC • Sourcing Roll-out @ CSC • Lessons Learned • Next Steps CSC Proprietary and Confidential 10
    11. 11. Overview of CSC • CSC is a global IT services powerhouse. • Solutions for 6 Major Industries: – Chemical Energy and Natural Resources, Technology & Consumer, Manufacturing/Aerospace & Defense, Healthcare, Financial Services, Public Sector • Truly Global: – 2,500 Enterprise clients, 70 countries, six continents. • Outer Space – Fix the Hubble’s Primary Camera • By the Numbers: – 96,000 Employees, #162 on the Fortune 500, 100+ Global Alliances, $15.8 Billion in Revenue, 50-Year History CSC Proprietary and Confidential 11
    12. 12. Realizing the Vision of Finance APPROACH • • • • • Standardize end-to-end processes and modernize systems Dedicate experienced process specialists from Finance Leverage Shared Services and Centers of Excellence Enhance skills sets throughout Finance Leverage CSC go-to-market offerings PRIMARY OUTCOME: SECONDARY OUTCOME: FINANCE ENABLES THE BUSINESS Finance as a valued, trusted advisor and business partner, supporting CSC to achieve its market leadership and profitability goals with advanced analytics and decision-support capabilities, while ensuring strong controls with redefined roles: • Strategists • Operators • Stewards CSC Proprietary and Confidential CSC GO-TO-MARKET • Utilizes CSC’s portfolio of services from initial strategy through run and maintain • Enables proactive anticipation of customer issues with compelling and competitive solutions • Serves as a reference for transformation market opportunities 12
    13. 13. Ariba Sourcing and Contracting BEFORE NOW Multiple System Single Global Tool Contract Databases Contract Redlines • Centralized system for all sourcing events, (RFP’s, Auction’s) and for the creation, execution and storage of contracts. • On-line collaboration platform from business units, Supply Chain and Suppliers. • Enables consistent business rules, approvals, contract templates, project management and a single contract repository. Contract Approval Tool Project Management Global Supply Chain • Manual Project Reporting • Regional processes, templates tools • Manual business processes Project Management Executive Sponsors Mike McCarty, Rahul Shah CSC Proprietary and Confidential Sourcing Contract Supplier Contract Events Templates Collaboration Approvals Contract Dashboard Repository Reporting Program Management Ken Pierce, James Best 13
    14. 14. Source to Settle Business Process Opportunities in Sourcing Business Problem Unleveraged, non-aggregated spend affects CSC cost and pricing Current State Future State Multiple Systems Global visibility to leverage volume discounts  Ariba funnels purchasing to negotiated contracts  Controlled view of spending  Single, simple, and monitored  Up to 17 approval steps  Difficult spend tracking and analysis  Insufficient use of volume discounts Source to Settle Sourcing Requisition to PO Receiving and Inventory CSC Proprietary and Confidential Accounts Payable Source to Settle Master Data Spend Analysis Travel and Expense EEDM Catalog 14
    15. 15. Program Is Moving Aggressively Forward Realization May 2013 to Mid-2015 BAA Fall 2012 • Harmonized end-to-end processes • High-level architecture Global Blueprint Spring 2013 • Mapped global processes and functional requirements to standard SAP Detailed Design May to Sep 2013 Build Test Deploy Multiple Releases and Deployments • Localization • Detailed design for releases • Business Impact Assessment Key Realization Milestones Successful deployments of: • Target setting & labor planning (BPC) • Sourcing & contracting (Ariba) Remaining activities: • Complete build and test global solution • Data cleansing & conversion • Initial deployment of global solution • Two large deployments Project & Change Management CSC Proprietary and Confidential 15
    16. 16. Lessons Learned Next Steps • Significant Investment in Training • Regional / Local Contract Templates – Partnered with Ariba – Super users & Project team supported training – 2 day required training for all Global SCM staff • Spend Information Performance Management (SIPM) • User Adoption • Business Process Improvement • Reporting Enhancements • Create “Envy” of success – Target early adopters – Create Win’s and Hero’s CSC Proprietary and Confidential 16
    17. 17. Thank You! CSC Proprietary and Confidential March 6, 2014 17
    18. 18. "Change" is the New Normal: Building a Sustainable Strategic Sourcing Program Wen Buell Sr. Sourcing Analyst Global Sourcing Center of Excellence
    19. 19. Corporate Overview Avon, the company for women, is a leading global beauty company with nearly $11 billion in annual revenue. As one of the world's largest direct sellers, Avon is sold through more than 6 million active independent Sales Representatives. Avon products are available in over 100 countries with a product line including color cosmetics, skincare, fragrance, fashion and home products, featuring such well-recognized brand names as Avon Color, ANEW, Skin-So-Soft, Advance Techniques, Liz Earle, and Mark
    20. 20. Product Portfolio Beauty Whether it’s industry-leading cosmetics, age reversing skin and hair care, or ground breaking fragrances, Avon has a proven history of delivering first-to-market beauty technologies, making the company a perennial game-changer. Time and again, Avon and its global team of scientists have led the industry in giving consumers breakthrough products that marry beauty and innovation. Lightadjusting makeup, more durable mascara, revolutionary anti-aging skincare products. The list goes on and on. Simply put, Avon offers women around the globe products that help them look and feel their best… Fashion & Home Avon Fashion & Home includes trend-right, must-have pieces. And they're the perfect way for a woman to reward herself and bring moments of beauty and delight to her friends and family. The category includes jewelry, watches, accessories, clothing, intimate apparel, house wares, as well as men's and children's wear. Avon jewelry and accessories add that all-important finishing touch, allowing a woman to create a style all her own. It's accessible glamour that gets noticed…
    21. 21. Our Approach to Build a Sustainable Sourcing Program People Establish Global category management and strategy development approach Clear identification of global and regional lead roles and initiatives Value Technology Process Deliver year over year value (cost savings and avoidance) Implement iSource globally for 100% of applicable spend Significant progress toward 100% Spend Under Management (SUM) Leverage Ariba Spend Visibility for spend reporting and savings tracking Ariba Contract management as the single repository for contracts 22 Consistent approach to benefits tracking and reporting Promote early engagement with Sourcing in business planning and strategies Manage creation of new supplier relationships in eSIM
    22. 22. Strategic Source-2-Contract Cycle USE KNOWLEDGE TO ESTABLISH AND ACHIEVE GOALS ANALYZE & SYNTHESIZE DERIVED INFORMATION Contract Management Sourcing GIVE MEANING TO OBTAINED DATA Spend Visibility Procurement OBTAIN RAW FACTS 23
    23. 23. 7 – Step Sourcing Process 1 7-Step Strategic Sourcing Process 4 6 3 5 2 Analyze category spend Determine business needs 1 Understand internal spend 2 Understand current & future requirements Analyze supply markets 3 Understand supply market Ariba Spend Visibility Helps Answer: • • • • 24 What products/services am I buying? Who am I buying products/services from? What are my spending trends? Where can I better leverage my spend? Develop category strategy 4 Decide most appropriate execution strategy Select vendors, negotiate agreements 5 Conduct aggressive negotiations and select suppliers Plan transition to new contract 6 Operationally supplier agreements 7 Manage supplybase & stakeholders 7 Monitor market and supplier performance Knowing the Answer Enables: • Opportunity analysis for savings • Opportunity analysis for supplier rationalization • Negotiate strength opportunities
    24. 24. Ariba Spend Visibility   Data input from multiple source systems (Enterprise One, Concur and other legacy financial systems)  25 $2.8B USD global indirect spend Included markets: NA: 3 markets (US, Canada, and Puerto Rico) EMEA: 11 markets (UK, PL, RU, Spain, etc) LATAM: 1 market ( Brazil) APAC: 2 markets ( China, India and the Philippines)
    25. 25. Ariba Data Sources Data into Ariba comes from two sources: E1 and P-Card Data Sources: • E1: Data from Invoices (ex: IT Consulting) • P-Card: Data that coming from Concur charged through Citibank (ex: Travel Expenses) Data Repository • Data is uploaded in Ariba to analyze spend visibility Ariba and Category Manager • Data Enrichment to improve and better utilize data. • 3x a year. (Supplier Name Enrichment and Reclassifications) 26
    26. 26. Avon Customized Spend Visibility Dashboard • • • Customized list of fields for users to choose • Pivot table functionality for users to view spend by different dimensions 27 Customized reports for regions Graph of the global spend by category
    27. 27. 7 – Step Sourcing Process 1 7-Step Strategic Sourcing Process 4 6 3 5 2 Analyze category spend Determine business needs 1 Understand internal spend 2 Understand current & future requirements Analyze supply markets 3 Understand supply market Develop category strategy 4 Decide most appropriate execution strategy Select vendors, negotiate agreements 5 Conduct aggressive negotiations and select suppliers Plan transition to new contract 6 Operationally supplier agreements Knowing the Answers Enables: • Create competition and drive best pricing • Obtain information on Alternative sourcing opportunities • Gather Information on innovative technology 28 7 Manage Supply base & stakeholders 7 Monitor market and supplier performance
    28. 28. eSourcing Metrics at-a-glance    Run-rate at $1Billion/year 50% indirect and direct spend through via RFx 2013 Average savings of 20% Total RFx created in 2013: 1300 Auction All Region Event by Commodity and Type N = 670 RFI RFP 350 # of Events  Events created by Category 306 300 250 202 200 162 150 100 50 78 4050 61 44 4 60 45 23 54 3021 Packaging Purchased Finished Goods 77 60 17 4 2 0 Corporate Indirect 29 Facilities/ MRO Raw Materials Sales/ Marketing Grand Total
    29. 29. Minimizing Change Management Leverage Sourcing Library Sourcing documents to be shared in Library 30 Pre-built contents by sourcing categories to be added into RFx
    30. 30. 7 – Step Sourcing Process 7-Step Strategic Sourcing Process 4 6 3 5 2 1 1 Analyze category spend Understand internal spend Determine business needs 2 Understand current & future requirements Analyze supply markets 3 Understand supply market Develop category strategy Select vendors, negotiate agreements 4 5 Decide most appropriate execution strategy Conduct aggressive negotiations and select suppliers • • • • 31 Plan transition to new contract 6 Operationally supplier agreements 7 Manage supplybase & stakeholders 7 Monitor market and supplier performance Knowing the Answers Enables: Which contract template should I use? Who needs to review and approve contracts? When will our contracts start/expire? What is the owner of this contract?
    31. 31. Contract Management - Global Roll out and Results  Global governance with regional approach  Contract Workflow roll out to UK, Poland, Russia, Brazil, Argentina, and Hong Kong in 2013  Plan  2417 to roll out to 10 markets in 2014 contracts were created since the implementation with total contract amount of $2.6B USD 32
    32. 32. Contract Management Lessons Learned Organization and design process • Legal team’s full support and involvement is essential • Clearly define region or country contract policy and “to be process” • Involve and communicate with all parties in process design Implementation • Collect and harmonize business agreement documents • Roll out by waves with simple and frequent contracts as starting point • Ensure proper delegation of roles and responsibilities • Ensure relevant permissions are granted to all relevant users • Perform testing to cover all use case scenarios Training • Conduct training by user role ( Contract Manager and contract approver) • Contract Manager requires extensive training on clause library management • Train administrative assistants to help their managers in contract approval tasks 34
    33. 33. Implemented Standardized Contract Approval Option to use Supplier paper when required Legal assistants are added to help attorneys in task administration 35
    34. 34. KPI – Contract Creation – FY – MM / USD Request Dept. 200.00 250 100.00 50.00 200 193 150.00 151 $66 36 Mkt $140.00 140 $120.00 $100.00 99 120 115 109 100 150 46 $18 F&MRO IT $80.00 80 100 99 $167 $103 $93 Millions Amount USD and Volume / YTD Sourcing Category Millions Amount USD and Volume / YTD $60.00 $127 60 60 59 $109 40 43 $72 $58 20 20 3 16 $32 $18 $15 10 0 $0$13$5 50 9 0 $1 $40.00 $20.00 $0.00 Comm SC Fin Manufac Legal Contract Amount (USD) Contar de Project Id 36 Contract Amount (USD) Contar de Project Id • 424Contract Created – Total USD 448 MM •195 Contract Created by Legal Team – Old Version •339 Contract Created by Sourcing Team – New Version Based on: Ariba Contracts
    35. 35. KPI – Contract Creation – FY – Status process Number Contract Completed / In Process 140 190 - Completed 344 - In process 120 30 7 40 320 - Ariba 85 55 53 Comm 43 41 9 20 50 62 1 36 19 1 7 8 8 2 SC Draft Based on: Ariba Contracts Fin 43 Manufac Published Legal 10 7 3 30 27 22 22 24 23 22 19 30 0 37 55 54 162 – Out Ariba 40 47 44 60 20 60 50 100 80 Tool Leakage 14 12 4 5 3 10 8 1 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Out Ariba Based on : Internal Controls Ariba
    36. 36. Summary and Key Take-away   Change management and training are essential for project success  Clearly articulate the benefits of a technology-enabled process to drive adoption  Policy creation and executive support are important for program success  38 Standardize processes and leverage technology to improve sourcing efficiency Building collaborative relationships with business partners
    37. 37. Thank You
    38. 38. "Change" is the New Normal - Building a Sustainable Strategic Sourcing Program Craig Fischer Las Vegas Sands #AribaLIVE
    39. 39. LAS VEGAS SANDS CORPORATION (LVSC) Las Vegas Sands Corporation (NYSE: LVS) Leading global developer and operator of destination integrated resorts (IRs) Properties include Las Vegas, Macao, Singapore, and Bethlehem (PA) Net Revenue for the past 6 years from LVSC’s 2013 10-K Year Net Revenue 2008 2009 2010 2011 2012 2013 $4.38B $4.56B $6.85B $9.41B $11.13B $13.77B Confidential 41
    40. 40. EVOLVING FROM TACTICAL TO STRATEGIC Moving procurement from a Tactical to a Strategic organization allows employees to focus on value-added work. To become Strategic, Procurement organizations continuously need to evolve and make improvements to their processes and solutions. Strategic Tactical • • • • Reactive Day-to-day wants Managing people and work Manual processes and paperwork • One-off/short term solutions • Doing Non-value work • Proactive • Longer-term needs • Setting direction/developing people • Electronic processes and files • Relationship/long term solutions • Working on value-added items Confidential 42
    41. 41. IDENTIFYING OPPORTUNITIES “Unless you have the data, you are only giving me your opinion!” • Business need or opportunity is identified • Reuse or expand an existing solution • “Borrow with pride” on a good idea used elsewhere • Consolidate processes into global standards Confidential 43
    42. 42. BUSINESS NEED IS IDENTIFIED Third Party Due Diligence Forms Internal Requestor fills out Paper Form #1. Paper Form #2 sent to Third Parties for them to complete. Upon completion the forms route through three departments for approval • Inefficient process involving paper and multiple parties • Follow-up work with Third Parties and internal requestors • 100% of forms are resent to Third Parties due to incomplete information • Will become a global process Deployed a Supplier Information portal as a solution to the Third Party Due Diligence forms. • Consolidates multiple forms into one profile • Guides the Third Party to fill in the required information • Conditions can request additional information or customize the workflow • Profile data is reportable Confidential 44
    43. 43. REUSE AN EXISTING SOLUTION Getting rid of physical signatures Bid Analysis Worksheet (BAW) is an internal document that is physically signed by management in procurement and requesting departments • Many issues makes the signature process cumbersome Procurement successful deployed an eSignature solution for buy-side contracts that brought great efficiency and compliance • • Cloud solution that is accessible through many options Documents stored in one location Discussion of BAW issues in Procurement staff generated a suggestion of “why don’t we just eSign BAWs?” eSignature was expanded to additional procurement items. Expansion will continue as other departments are asking “why can’t we do this?” Confidential 45
    44. 44. BORROW WITH PRIDE Innovate with someone’s proven idea For commoditized items that can be sourced from multiple suppliers, an eAuction is a strategy option to get pricing • Need to factor pricing into the overall value of good or service Find sourcing scenarios in the department with willing coworkers that can go through an eAuction: • Success with typical commodities such as MRO and Marketing goods • Experimented with commodities such as Utilities, Uniforms, Logistic Services, and Fine Wine • Experienced some challenges and learned lessons, but understood that it trial and error is a potential scenario Confidential 46
    45. 45. CONSOLIDATE PROCESSES INTO GLOBAL STANDARDS Example of developing standards  100+ commodity managers (CMs) across LVSC Procurement using various RFP/RFI templates or forms. • • Collected 37 different forms from 19 CMs; scenarios where teammates who sat next to each other used different RFP forms. Assuming more forms are in use by others because some of larger spend commodities did not supply RFP forms.  Expected to complete initiative to develop global RFP/RFI templates for specific commodity areas by the end of Q1 ’14 • • Areas are IT – Construction – Gaming – Facilities – Food & Beverage Will be built as available templates in the Sourcing solution NOTE: 2nd Initiative in progress is Global Contract Templates Confidential 47
    46. 46. Summary - Wrap Up Align Results to Objectives Embrace change and not fight it! Be Flexible ACCELERATE SAVINGS, IMPROVE COMPLIANCE & MITIGATE RISK! © 2014 Ariba – an SAP company. All rights reserved.
    47. 47. Thank you Q& A Contact information: Sundar Kamakshisundaram Sr. Director – Global Solutions Marketing E: sundar.kamak@sap.com

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