Have you achieved cost savings in procurement but ignored the business value to be gained from automating the payables process? In this session, you'll hear from organizations that have effectively aligned procurement and accounts payable, extending the impact of e-procurement to accelerate invoice processing, improve on-time payment performance, and capture more early payment discounts.

1. PUBLIC
Chris Rauen, Financial Supply Chain Marketing, SAP Ariba Solutions
Howard Tant, Procurement Operations Manager, Dollar Tree
Jan John, Senior Supply Chain Management Analyst, Devon Energy
Aaron Roark, Accounts Payable Manager, Devon Energy
March 21, 2017
When Procurement Meets Accounts Payable:
The Power of Alignment

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Paper-based transactionsToo many exceptionsLack of visibility into invoice
and payment data
Leakage of value
(1) Basex Research
Collaboration inefficiencies cost companies $650 billion
(1)
annually
Inefficient P2P process affects buyers and suppliers
Visibility – source –
contract
Request – buy –
invoice
Finance – pay

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Business networks – on-ramp to the digital economy
Connecting people, systems, and processes to simplify business commerce

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Value to business stakeholders
Procurement
• Control of spend
• Compliance to contracts
• Increased catalog usage
AP/finance
• Remove paper
• Eliminate exceptions
• Capture discounts
• Reduce payment cost and risk
Treasury
• Increased cash flow
visibility and control
• Working capital
• Return on cash (discounts)
IT
• Deep integration
• RDS packages
• Cloud benefits
• Low TCO
Working capital
(DPO and
discounts)
Invoice
(automate and
accelerate)
B2B payment
Certain. Secure.
Simple.
buyer supplier

5. Dollar Tree
Company Overview
Dollar Tree, Inc. (NASDAQ: DLTR)
• Leading operator of discount variety stores
• Brands: Dollar Tree, Family Dollar, and Dollar Tree Canada
• Headquartered in Chesapeake, Virginia
• Sales $20.7 billion (FY16)
• 14,334 stores (FY16)
• No price increases to our customers in 30 years for Dollar Tree
stores!

6. Company Overview: Devon Energy
A Leading North American E&P
 Focused and balanced asset portfolio
 Deep inventory of opportunities
 Positioned to deliver visible, low-risk
production growth
6
Heavy Oil
Rockies Oil
Barnett
Shale
Eagle Ford
Permian Basin
STACK

7. Challenges
• Challenges (Indirect purchasing)
– Lack of up-front standardized approvals
– Paper invoices
– Line-item spend difficult to obtain
– Manual contract compliance (no catalogs)

8. Business Challenge: Devon Energy
Disjointed Processes & Systems
8

9. Objectives
• Challenges (Indirect purchasing)
– Lack of up-front standardized approvals
– Paper invoices
– Line item spend difficult to obtain
– Manual contract compliance (no catalogs)
• Objectives
– Efficiency (auto-match, “self-processing” invoices)
– Compliance (invoice rules, catalog pricing)
– Savings (discounting ROI, sourcing visibility)

10. Devon’s new way of conducting business
Objectives: Devon Energy

11. Results
• Automated invoices and purchase orders
• Auto-matched 75% of invoices
• Visibility to line-item spend for sourcing
• Contract pricing compliance via catalogs
• ROI on dynamic discounting

12. 12
Targeted Results: Devon Energy
Aligned Processes & Systems

13. Lessons Learned
• Executive sponsorship
• Process change
• Over-customizing
• Scope creep

14. Lessons Learned: Devon Energy
Key Learnings / Takeaways
14
 Alignment between Supply Chain, Finance & Accounting, and IT critical to success
 Continued focus on “Big Three” benefits to Devon as guiding principle of decisions
 Buy-in from core business is a must
 Representation on Advisory and Steering committees
 Keep the team small and consistent
 Don’t underestimate time required for configuration decisions
 Allow adequate resources to focus on Reporting
 Open & transparent with each other with things that are working well and things that need to be improved

15. Next Steps
• Improve, maintain, focus on ROI
• Investigate new platforms

16. May
2016
Oct 2016 Aug 2017
Phase 4
Continuous Improvement
Phase 1
Foundational
Phase 2
Process Improvement
Phase 3
Spend Visibility & Control
PhasesProcesses
Affected
Next Steps: Devon Energy
• Supplier Qualification
• Contracts
• Sourcing
• Electronic Invoicing
• Contract to Invoice - Price
Compliance thru Rate Sheets
• Ordering / Procurement of Goods &
Services (Purchase Orders)
• Electronic Receiving
• Supplier Performance
Management
• Reporting
• Continuous Improvement
• Supply Chain • Supply Chain
• Accounting
• Some Business
• Some Field Operations
• Supply Chain
• Accounting
• Some Business
• Some Field Operations
• Supply Chain
• Accounting
• Some Business
• Some Field
• Some Suppliers • Suppliers • Suppliers
AreasAffected:
ExternalInternal
Build &
Test
Design
PHIIIPHIIPHI
Build &
Test
Design
Build & TestDesign
Deploy &
Stabilize
Waved Deployment & Stabilize
Q4 Pilot
Current
Dec 2017

17. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
When you align
AP and procurement,
it feels like this…

18. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public

19. Thank you.
Contact information:
Howart Tant, Dollar Tree
htant@dollartree.com
Jan John, Devon Energy
Jan.John@dvn.com
Aaron Roark, Devon Energy
aaron.roark@dvn.com
Chris Rauen, SAP Ariba
christopher.rauen@sap.com

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