Concept to Control How Berkshire Bank built an e-procurement machine that put their savings initiatives into overdrive
Today’s Session TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
Who We Are <ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>Rob Bernshteyn </li></ul><ul><li>CEO </li></ul>
About Us <ul><li>Empowering organizations to: </li></ul><ul><ul><li>Spend Less:  Reduce maverick spending by ~33%  </li></...
<ul><li>$2.7 billion in assets </li></ul><ul><li>Integrated insurance and wealth management ($650 million AUM)  </li></ul>...
Concept
Develop the Concept
Roundtable Discussion:  Concept What ideas and concepts are you considering achieve efficiency and control?  How are you w...
Plan
Putting A Plan in Place <ul><li>Get stakeholders involved, they will be more accepting of change and will help make it hap...
Putting A Plan in Place <ul><li>Understand user needs and identify requirements </li></ul><ul><ul><li>Vendor and contract ...
Putting A Plan in Place <ul><li>Conduct a vendor due diligence </li></ul><ul><ul><li>Submit an RFP, get a demo </li></ul><...
Roundtable Discussion:  Plan How are you making your concepts a reality? How are you engaging stakeholders in the planning...
Implement
Innovation Fuels Accelerated Implementation <ul><li>Implementation taking months –    not years like an on-premise solutio...
Why the “cloud”
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Clo...
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Dif...
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Dif...
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Dif...
The Cloud is the Most Cost Effective Year 1 Year 2 Year 3 <ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul>...
Roundtable Discussion:  Implement How quickly can change happen at your organization? How do you work around those to get ...
Adoption
Users Drive Spend Visibility & Control <ul><li>If it’s not in the system, it’s not controllable </li></ul><ul><li>Drive us...
Roundtable Discussion:  Adoption Do you know how much of your spend is under management? What are some of the ways you hav...
Control
Gain Spend Visibility and Control <ul><li>100% of indirect spend – purchasing and expenses – visible and under control </l...
An Action Plan for Savings <ul><li>Increase control over company spending </li></ul><ul><li>Review and approve immediately...
Roundtable Discussion:  Control How do you get spend information? How are you delivering savings to your organization? Wha...
Your Ideas CAN Become a Reality! TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
<ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>[email_address]   </li></ul><ul><li>Rob Bernshteyn </li...
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Procurement Leaders Forum 2010 - Berkshire Bank - From Concept to Control

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Procurement Leaders Forum 2010 - Berkshire Bank - From Concept to Control

  1. 1. Concept to Control How Berkshire Bank built an e-procurement machine that put their savings initiatives into overdrive
  2. 2. Today’s Session TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
  3. 3. Who We Are <ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>Rob Bernshteyn </li></ul><ul><li>CEO </li></ul>
  4. 4. About Us <ul><li>Empowering organizations to: </li></ul><ul><ul><li>Spend Less: Reduce maverick spending by ~33%  </li></ul></ul><ul><ul><li>Pay Less: Lower average order costs by ~25% </li></ul></ul><ul><ul><li>Reduce Cycle Time: Reduce time to get goods by ~30% </li></ul></ul><ul><ul><li>Reduce Operating Costs: Reduce time spent on purchasing / auditing by ~20% </li></ul></ul><ul><ul><li>Improve Spend Predictability: Increase spend under management by ~20 % </li></ul></ul><ul><li>Total Customers: 120+ including </li></ul><ul><li>Platform Spend: More than $1B through 35,000 suppliers </li></ul><ul><li>Spend Growth: 704% year-over-year </li></ul><ul><li>System Availability: 99.999% uptime </li></ul>
  5. 5. <ul><li>$2.7 billion in assets </li></ul><ul><li>Integrated insurance and wealth management ($650 million AUM) </li></ul><ul><li>New England asset based lending group </li></ul><ul><li>Largest local regional bank </li></ul><ul><li>41 Financial Centers in Western MA, Eastern NY, and Southern VT </li></ul><ul><li>A leader in philanthropy and community involvement and leadership by providing over $12 million in funding </li></ul><ul><li>Committed to the RIGHT core values: Respect, Integrity, Guts, Having Fun and Teamwork </li></ul><ul><li>Constantly developing fresh new approaches to our customer service experience </li></ul>About Us
  6. 6. Concept
  7. 7. Develop the Concept
  8. 8. Roundtable Discussion: Concept What ideas and concepts are you considering achieve efficiency and control? How are you working around these challenges to get your concept off the ground? What challenges have you faced in developing your concept?
  9. 9. Plan
  10. 10. Putting A Plan in Place <ul><li>Get stakeholders involved, they will be more accepting of change and will help make it happen </li></ul><ul><li>Start a steering committee </li></ul><ul><ul><li>Include stakeholders from all areas </li></ul></ul>Branch Managers IT Facilities Legal Commercial Lending Operations Insurance AP Marketing HR Compliance Steering Committee
  11. 11. Putting A Plan in Place <ul><li>Understand user needs and identify requirements </li></ul><ul><ul><li>Vendor and contract management </li></ul></ul><ul><ul><li>Policies and procedures </li></ul></ul><ul><ul><li>Compliance and auditing </li></ul></ul><ul><ul><li>Reporting and budgeting </li></ul></ul><ul><li>Collaborate with end users </li></ul><ul><ul><li>What is working with the existing process? What isn’t? How do they use process / solution in day-to-day job? </li></ul></ul><ul><li>Prioritize feedback based on impact </li></ul><ul><ul><li>Aggregate and identify trends </li></ul></ul><ul><ul><li>Pick out a subset of things to tackle – doing it all is impossible and unnecessary </li></ul></ul>
  12. 12. Putting A Plan in Place <ul><li>Conduct a vendor due diligence </li></ul><ul><ul><li>Submit an RFP, get a demo </li></ul></ul><ul><li>Create a “short list” </li></ul><ul><ul><li>Trial solution, test and push boundaries </li></ul></ul><ul><ul><li>Let end users have a go </li></ul></ul><ul><li>Select the vendor that meets your requirements </li></ul>e-procurement “lite” Basic P2P functionality On-demand enterprise e-procurement Advanced features, complex capabilities On-premise Coupa Cloud Spend Management
  13. 13. Roundtable Discussion: Plan How are you making your concepts a reality? How are you engaging stakeholders in the planning process? What part of the planning process is most challenging?
  14. 14. Implement
  15. 15. Innovation Fuels Accelerated Implementation <ul><li>Implementation taking months – not years like an on-premise solution </li></ul><ul><li>Phased roll-out to 41 locations </li></ul>Phase 1 Phase 2 Phase 4 <ul><li>Requisitioning </li></ul><ul><li>PO Generation </li></ul><ul><li>Invoicing </li></ul><ul><li>Reporting </li></ul><ul><li>Contract Management </li></ul><ul><li>Vendor Management </li></ul><ul><li>Receiving </li></ul><ul><li>Budgeting </li></ul><ul><li>Asset Management </li></ul><ul><li>Supplier Punchout </li></ul><ul><li>Travel & Expense Reporting </li></ul>Phase 3
  16. 16. Why the “cloud”
  17. 17. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul>VS
  18. 18. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Difficult Independent Implementations </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul><ul><li>Rapid Implementation </li></ul>VS
  19. 19. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Difficult Independent Implementations </li></ul><ul><li>Multiple Code Bases </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul><ul><li>Rapid Implementation </li></ul><ul><li>One Optimized Code Base </li></ul>VS Cloud Platform
  20. 20. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Difficult Independent Implementations </li></ul><ul><li>Multiple Code Bases </li></ul><ul><li>Non-viable long-term business model </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul><ul><li>Rapid Implementation </li></ul><ul><li>One Optimized Code Base </li></ul><ul><li>Sustainable Business Model </li></ul>VS Cloud Platform
  21. 21. The Cloud is the Most Cost Effective Year 1 Year 2 Year 3 <ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul><li>Database / Middleware </li></ul><ul><li>Software Fees </li></ul><ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul><li>Database / Middleware </li></ul><ul><li>Software Fee </li></ul><ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul><li>Database / Middleware </li></ul><ul><li>Software Fee </li></ul><ul><li>IT Support </li></ul><ul><li>Maintenance </li></ul><ul><li>Professional Services </li></ul><ul><li>Software Fees </li></ul><ul><li>IT Support </li></ul><ul><li>Maintenance </li></ul><ul><li>Professional Services </li></ul><ul><li>Software Fees </li></ul><ul><li>IT Support </li></ul><ul><li>Maintenance </li></ul><ul><li>Upgrade </li></ul><ul><li>Professional Services </li></ul><ul><li>Software Fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul>
  22. 22. Roundtable Discussion: Implement How quickly can change happen at your organization? How do you work around those to get things done? What are the typical bottle necks encountered?
  23. 23. Adoption
  24. 24. Users Drive Spend Visibility & Control <ul><li>If it’s not in the system, it’s not controllable </li></ul><ul><li>Drive user adoption </li></ul><ul><ul><li>Make it easier than any alternative </li></ul></ul><ul><ul><li>Include stakeholders in planning to develop buy in </li></ul></ul><ul><ul><li>Continuously train and educate </li></ul></ul><ul><ul><li>Champion change, lead by example </li></ul></ul>
  25. 25. Roundtable Discussion: Adoption Do you know how much of your spend is under management? What are some of the ways you have championed change in your organization? How do you drive users to adopt processes and systems?
  26. 26. Control
  27. 27. Gain Spend Visibility and Control <ul><li>100% of indirect spend – purchasing and expenses – visible and under control </li></ul><ul><li>Infrastructure to manage, report and control spend </li></ul><ul><li>Reduce admin burden through automation / integration with AP / GL systems </li></ul><ul><li>Historical audit trails to standardize and enhance policies </li></ul><ul><li>Greater negotiation power and adherence to preferred vendor contracts </li></ul>
  28. 28. An Action Plan for Savings <ul><li>Increase control over company spending </li></ul><ul><li>Review and approve immediately via email </li></ul><ul><li>Enable strategic purchasing initiative to lower costs </li></ul><ul><li>Make the shift from damage control to spend control </li></ul><ul><li>Control maverick Spending </li></ul><ul><li>Save 5% - 20% on every dollar under management in the system </li></ul><ul><li>Spend 25% less on total purchasing activities </li></ul>
  29. 29. Roundtable Discussion: Control How do you get spend information? How are you delivering savings to your organization? What enables you to take action to stop waste?
  30. 30. Your Ideas CAN Become a Reality! TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
  31. 31. <ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>[email_address] </li></ul><ul><li>Rob Bernshteyn </li></ul><ul><li>CEO </li></ul><ul><li>[email_address] </li></ul>THANK YOU

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