From Source to Pay: Ariba @ BMO Financial Group                                                       Greg Keeling        ...
BMO Financial Group DisclaimerBMO Financial Group (BMO) does not make anyrepresentation that the results included in thisp...
BMO Financial Group – Background & Overview Established in 1817, BMO Financial Group is a highly diversified North  Ameri...
BMO Market Presence3
BMO’s History with Ariba Sourcing      2008 piloted eSourcing with 3-4 RFPs      2009 almost 100% RFPs issued via Ariba ...
Ariba Users @ BMO Sourcing     Strategic Sourcing consultants     Line of Business involved parties     Corporate stake...
Ariba Sourcing  Used for all sourcing events, including opportunities   assessments, RFx and reverse auctions  Used for ...
Ariba Invoice Pro Launched late 2011 Broad supplier enablement in 2012 Integrated with Oracle E-Business Suite & Kofax ...
Ariba Contract Pro Migrate contracts from stand-alone  legacy systems        ~14,000 contracts Next areas of work     ...
Ariba Spend Visibility       Analysis of enterprise supplier and employee        spend       Consolidated data combines ...
Spend Analysis MaturityStrategic Sourcing launched November 1996 1997 – 2003 (Manual spend classification)         AP da...
Spend Analysis Maturity AP data organized into areas of  spend, providing insight into 128  categories of products & serv...
The Future of Spend Analysis Increased use of electronic invoicing         Greater transparency into spend, reducing tim...
Q&A13   November 9, 2012
Greg Keeling                   Senior ManagerStrategic Planning & InfrastructureProcurement & Strategic Sourcing          ...
Upcoming SlideShare
Loading in …5
×

From Source to Pay: Ariba at BMO Financial Group

1,520 views

Published on

Procurement organizations are continuously tasked to take on more responsibility, support revenue growth and reduce costs. To deliver Procurement teams increasingly leverage inter-enterprise collaboration and Procurement process automation using Cloud based technology that can provide suppliers with continuous feedback and improve performance and compliance. Join this session to hear how BMO drives sustainable savings and improved collaboration with internal and external stakeholders.

2012 Ariba Commerce Summit in Toronto

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,520
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide
  • BMO Financial Group named one of the World’s 50 Safest Banks (#23): April 2012 by Global Finance http://www.gfmag.com/tools/best-banks/11661-worlds-50-safest-banks-april-2012.html#ixzz1oMpqiNjE #22 on World’s Strongest Banks list by Bloomberg Markets (May 2012)One of the top 40 global banks as ranked by Moody’sThe World Economic Forum has ranked Canada’s banking system as the most sound in the world, five years in a row.(World Economic Forum, Global Competitiveness Report, 2008, 2009, 2010, 2011 & 2012By 2017, Toronto will surpass London to become the world's financial centre, according to Moody's Analytics. Canada currently employs 320,000 in its banking sector, while London employs 400,000. 
  • From Source to Pay: Ariba at BMO Financial Group

    1. 1. From Source to Pay: Ariba @ BMO Financial Group Greg Keeling Procurement & Strategic Sourcing Ariba Commerce Summit – Toronto, November 8, 2012
    2. 2. BMO Financial Group DisclaimerBMO Financial Group (BMO) does not make anyrepresentation that the results included in thispresentation can be expected or obtained in anyimplementation of any such products and services.The information in this document is provided "as is"without any warranty, either expressed or implied, for yourprivate use only on the understanding that BMO FinancialGroup does not have any liability to you for providing thisinformation whether or not you rely on it. 1
    3. 3. BMO Financial Group – Background & Overview Established in 1817, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012 and more than 46,000 employees, BMO serves more than 12 million personal, commercial, corporate and institutional customers in North America and internationally. We serve Canadian clients through BMO Bank of Montreal®, our personal and commercial banking business, BMO Nesbitt Burns®, one of Canada’s leading wealth management firms, and BMO Capital MarketsTM, our North American investment and corporate banking division. In the United States, clients are served through BMO Harris Bank, a major U.S. Midwest personal and commercial bank, Harris Private Bank, with wealth management offices across the United States, and BMO Capital MarketsTM. 2
    4. 4. BMO Market Presence3
    5. 5. BMO’s History with Ariba Sourcing  2008 piloted eSourcing with 3-4 RFPs  2009 almost 100% RFPs issued via Ariba Spend Visibility  2009 inaugurated spend analysis, launched with 2008 data for level set  Monthly enrichment of accounts payable data Electronic Invoicing  2011 design, build and launch  2012 expand deployment, including contract invoicing  2013 complete deployment  Goal 2,100 suppliers, eliminate 150,000 paper invoices Contract Management  2011 design, build and launch  2012 deployment and migration of 14,000 contracts  Currently holding 15,500 contracts 4
    6. 6. Ariba Users @ BMO Sourcing  Strategic Sourcing consultants  Line of Business involved parties  Corporate stakeholders (e.g. Audit, Legal, Information Security) Spend Visibility  Spend analysis team (cost management reporting)  Productivity analysis team Electronic Invoicing  Accounts Payable  Certain Finance groups Contract Management  Contract Management Program Office  Line of Business contract managers and involved parties  Corporate stakeholders (e.g. Audit, Legal, Information Security)5
    7. 7. Ariba Sourcing  Used for all sourcing events, including opportunities assessments, RFx and reverse auctions  Used for workload planning & managing sourcing projects  Unified Sourcing Process template based on methodology; incorporates conditional user tasks & workflows  Approvals integrated into sourcing events  Multiple dashboards for easy-access reporting  Savings Form used to monitor project savings  Leveraging tool for non-Sourcing project management 6
    8. 8. Ariba Invoice Pro Launched late 2011 Broad supplier enablement in 2012 Integrated with Oracle E-Business Suite & Kofax MarkView image- enabled workflow system E-Invoicing will:  Reduce number of paper invoices (currently 51% of total)  Reduce number of cheque remittances (currently 59% of total)  Reduce number of supplier inquires regarding payment  Reduce work effort to receive and manage invoices &  Increase savings when dynamic discounting implemented  Increase spend compliance by matching invoices to contracts 7
    9. 9. Ariba Contract Pro Migrate contracts from stand-alone legacy systems  ~14,000 contracts Next areas of work  Contract compliant invoicing (non-PO invoices)  Reporting & QA dashboards  Customized templates (contract workspaces from Sourcing events) 8
    10. 10. Ariba Spend Visibility Analysis of enterprise supplier and employee spend Consolidated data combines accounts payable data from all legal entities (7 GLs) through a single UI for efficient analysis Centralized reporting group manages tool and data Data enrichment: Oracle A/P is source of truth Top 90%+ of “sourceable” spend is enriched monthly Monthly cost management C-Level reporting Supports Strategic Sourcing decision-making Provides Sourcing category managers visibility into spend details Detailed reports for Spend Efficiency Teams 9
    11. 11. Spend Analysis MaturityStrategic Sourcing launched November 1996 1997 – 2003 (Manual spend classification)  AP data extracted and manipulated in Excel or Access (50% of spend)  Basic information: supplier name, GL, cost centre and spend 2003 – 2008 (Spend Cube – Standard Classification Library)  Formalized categorization of spend, only at summary level (not invoice)  Required significant MS Access skills to generate reports 2009 – present (Ariba Spend Visibility)  Increased sophistication of reporting and ease of use  Enriched spend data, supplier parentage  Business rules to focus on “sourceable” spend vs. payments 10
    12. 12. Spend Analysis Maturity AP data organized into areas of spend, providing insight into 128 categories of products & services at the segment level Category (5)  Subcategory (31) • Segment (128) - Classification (647) Based on Ariba Classification Taxonomy (ACT) which is based on the UNSPSC (United Nations Standard Products and Services Code) UNSPSC has many irrelevant categories for us. Some relevant categories are often not semantically convenient; needed to “BMOized” 11
    13. 13. The Future of Spend Analysis Increased use of electronic invoicing  Greater transparency into spend, reducing time to access details and increasing data accuracy  Linking PO’s and e-invoices • Easier tracking of PO status  Linking contracts and e-invoices • Reduced reconciliation efforts; more granular analysis of supplier spend Demand management & supplier rationalization  Identification of business area spend outliers  Identification of non-compliant spend  Identification of spend categories for demand management  Identification of categories for supplier rationalization 12
    14. 14. Q&A13 November 9, 2012
    15. 15. Greg Keeling Senior ManagerStrategic Planning & InfrastructureProcurement & Strategic Sourcing BMO Financial Group greg.keeling@bmo.com

    ×