"I see eyes in my soup": How Delivery Hero implemented the safety system for ...
Webinar final
1. The webinar will begin shortly.
Crossing the Spend
Chasm
Addressing the Spend Visibility Gap
2. Crossing the Spend
Chasm
Addressing the Spend Visibility Gap
Steven King
Source to Contract Improvement Manager
Corporate Procurement, Sony Europe Ltd
3. What is Spend Analysis?
• The foundation for successful sourcing activity
• Ongoing process applied to Spend Data to:
• Aggregate
• Classify
• Leverage
• Outcome – gain visibility to enable:
• Cost Reduction
• Contract Compliance
• Supplier rationalization
• More than just reporting:
• Good Spend Analysis should drive reports & enable you to dig deeper
in a more insightful & flexible way
• Drive new questions & answers
• Ongoing intelligence to apply, evolve and transform sourcing activity
4. Background
• Based in Surrey, UK is a subsidiary of Sony
Corporation headquartered in Tokyo
• Sony Europe’s role is to manage and develop
Sony’s electronics business across Europe:
• Manufacturing, R&D, design, sales and marketing of consumer
and business products across Europe
New Team. New Analytics
• Newly formed team:
• Consolidation of legal entities into one European
presence
• Newly established Indirect Procurement team across
Europe
• Need for spend visibility
5. Key Issues
• Visibility
• No prior understanding of spend across Europe
• P2P roll-out required thorough understanding of spend
• Historic spend is not stored against newly introduced purchasing taxonomy
• Categorization
• Newly established purchasing taxonomy
• Spend Savings
• Immediate need to gain traction within the business and identify savings opportunities
• Cross-department collaboration
• Ensure latest spend information is available to whole purchasing team
• Data Quality and Accuracy
• Mis-coding of spend leads to inaccurate reporting
• Compliance / auditing
• Need for complete & measurable audit trail
• Contract compliance
6. Key Functional Requirements
• Collaboration
• Easy-to-distribute reports
• Ability for simultaneous access to dataset & reports
• Usability
• Clear user Interface
• System is easy to use for both technical and non-technical
users
• Flexible & trackable categorization
• Ability to be dynamic & Controlled
• System allows re-categorization requests to be issued and
approved/ rejected by controller
• Include complete audit trail
• Flexibility in data refresh
• Ability to choose refresh frequency to suit preferences
7. Project Timeline
- Map historic spend to new
purchasing taxonomy
- Validate categorization with buyers
February
Agree Project Implementation
Plan with Rosslyn
- Create rules in system
- Load data
- UAT
- Training
- GO LIVE
- Launch to procurement team
- Training
- BAU
March
April
May
June
19. Category Audit Trail
• Spend with PO, will pull through PO category
• Rules created to map non-PO spend
• Rules can also exist to correct mis-coded POs
• Rules will be applied to data on each load
• Procurement will always have the correct view of
spend per commodity
• All rules are managed through the Category Audit
Trail
• Workflow allows approval/ rejection of new rules
28. Key Results
• Easy identification of demand management
activities – one project alone delivered €2 million
• Reduce the tail (27% decrease in vendor base)
• Supported savings delivery of ~€20 million in 2013
• Enabled tracking and compliance of contracted
spend (increased from 68% to 91% since
introduction of spend analysis)
• Enabled Procurement insight to be introduced
during Budget setting meetings & procurement to
become seen as more strategic within the
organization
29. Procurement Empowerment
• Sourcing Managers have the data they need when
they want
• They have the ability to correct category mapping
• Procurement can support the whole business with
spend information
• Common reports;
• Number of vendors per category/ region
• Spend Trend by supplier per category/ region
• Monthly invoice line report for key vendors
• Inactive vendors
• New vendors
31. Thank You
For more information, please
contact:
marketing@rosslynanalytics.com
Editor's Notes
RS Intro:To cover:What webinar coveringParticipantsFormatQ&A process
Notes:SK: Introduce role at SonyTalk about experience, background in procurement/spendFamiliarity with tools on the market
Outline what spend analysis is – there can be some confusion within the industry and beyondKey takeaways – Spend Analysis is more than just reporting and it shouldn’t be viewed as “one and done” - its an ongoing projectNot always aware of certain things until you get the data
Sony Electronics Europe' is a leading global manufacturer of audio, video, communications and information technology products'Sony Electronics Europe' Europe, based in Weybridge Surrey, is a subsidiary of Sony Corporation headquartered in Tokyo.Sony Europe background: (add. Feedback from SK req.)X countriesEurope operations covers xyz – countriesDrill down into department- Team number / location (disparate across Europe for example?)X spend going throughTeam responsible for procuring xyz?
Number of issues that this newly formed department had to address [outline each of the issues]
Also a number of functional platform requirements that were needed as part of the solution[outline each requirement]Segue into the selection of RAPidAddressed requirements and issues outlined previously
Project timeline short compared to experience[brief outline of each of the points]
[Adoption curve slide. Branding in line with timeline graph – SK][Value – 2-3months][Graph – chart no users / categorized spend with contract compliance -> combination between the 3 – SK to provide a representation]
Simple reporting (data mining) / dashboard reporting (BI)[overview of each point]Bridge into screenshots – overview of some of the capabilities discussed
FoldersApp page – give to users in company‘simple’ reporting optionse.g. look at business unit, category etcCan drill down into related things – give you relational things based on what click on. Can go as deep into data as you want
Able to go into app, in this case ‘spend by’ and you can see a list of suppliers
Click on selected supplier to look into more detail
There is an option in the RAPid platform to then look at related information, some options are shown in this example, we’ll select category and look at that further
As you can see, this brings up this category information in more detail, and how it breaks down.On the left are the various category options available
There are also options to change the report focus or look further at related infoHere, we’ll go into supplier parenting
This takes you to a list of parent suppliers from your data.
Can ‘mine’ data as much as you want through the query builder; can visualize data using dimensions (e..g cost centre, chart of accoutns) can view the same sort of info in different ways, as well as filter down – drill down into data. Report focus – view in different ways – e.g chart of accouts, =- same amount of spend but view differently – view as in components of report, whats in there etc.Slice and dice – [ilter by category – screenshot – we’re the only ones that can do by commodity]
Have choice of following unspsc categorisation – track what spending on to very granular level (e.g. for pens/pencils) – UNSPSC is shown hereOr we can integrate your own, internal procurement/finance hierarchies. Can apply to all info, or can create hybrid with you – when you bring it all together, how do you want to see it?Gets added to audit trail, added to refreshed data
Compliance etcLess wordy – Mel/SK reviewRules = assign tagsSpot erroneous tag, update then goes into auditing flow for approval
Look at the category audit trail in practice – can go into categoryAudit trailManagement approvals, can disable, reject, leave as pending. Can add notes for approval so can understand why. As long hasn’t been approved, can click and go back to spend feature to see what has been done so can understand logic.Control and visibility. Approval – e.g. management sign-offCan export if needed for reports
Select category relevant invoice should be assigned to
This then goes into the approvals queue, to be approved by the administrator.
Administrator/manager can then select the relevant line for approval and there are 2 options – accept or reject (on next 2 slides)
With each option, there needs to be a reason given, which ensures you can fully track not only the what of category approvals, but also the why. This then gets recorded as part of the audit trail.
BI dashboardsSpend Analysis Enterprise DashboardShows – groups of invoices by range of values – you can select e..g I only want to see £1-1000Through chart can see by the dimension – e..g can see through companySpend per invoice… spend with company across the bottomSpend per company and how that breaks down; gives you info per company- to use for spend decisions; spend more/less?Info by number of invoices and also spend per invoiceHeaders 0- change view e.g. invoices, categorized, active suppliersEverything colour code –e.g. charts with blue relates to spendVisibility
Number of key results here, using platform, users able to accomplish a lot[outline each point][Shaper way of saying last point?]-[ Hard to become a knowledge centre for business to empower decision-making]
Longer-term aspect to this implementation as well – procurement empowermentKeep providing team (and business) with visibilityMore its used, more get out of it
TBC
For more information, please contact Rosslyn Analytics – [XX]Anything you missed, webinar will be available on the Rosslyn website – will share link when available
