Procurement Solutions - Paul Turner

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A brief overview of our Procurement Solutions and industry reviews

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Procurement Solutions - Paul Turner

  1. 1. Basware Procurement Solutions
  2. 2. Presentation Content • Basware in Brief • Procurement Challenges, Stakeholders and Profit Potential • Basware Procurement Offering • Basware EPP and Procurement Solutions - General Features - Sourcing - Contract Lifecycle Management - Buyer-Supplier Interaction - Matching Invoices to Purchase Orders • Solution Benefits • Implementation and Integration • Customer Cases • Why Basware for Procurement?
  3. 3. Basware in Brief • Founded in 1985, publicly listed on NASDAQ OMX Helsinki • The global leader in purchase-to-pay automation • Develops software for procurement and financial process automation • More than 1,000,000 software users in over 1,500 large organizations • Services through a network of 11 offices in Europe, Asia-Pacific and the US • Business partners in 30+ countries • Net sales EUR 93 million in 2009 • 750 employees at end of 2009
  4. 4. Procurement Challenges in Organizations Control & Drive OPEX* Organizational Compliance Savings Through Efficiency Procurement High cost Inability to enforce Buyers’ time of inefficient purchasing wasted on procurement policies routine tasks processes Poor ability to Contracts Limited knowledge audit purchasing not managed of spend decisions or utilized Manual handling Purchasing Maverick buying of invoices across power dispersed organization *OPEX=operational expenses
  5. 5. Stakeholder Interests End-users Line-of-Business Budget Holders – Getting things done, quickly and – Tracking business performance easily – Achieving complete spend control – Obtaining necessary items – Enabling real-time budget follow-up – Accessing up-to-date information on one’s own requisitions Procurement Finance – Spend and category management – Gaining real-time data on spend – Contract management and use vs. budget – Eliminating maverick buying – Transparent reporting – Streamlining standard transactions – Minimizing manual work, automating invoice handling Successful implementation requires addressing the interests of all stakeholders
  6. 6. Profit Potential of Purchasing Company A Company B Company C Performance Excellent Mediocre Poor Sales 100 100 100 Purchasing Costs 57 60 63 Other Expenses 30 30 30 Total Costs 87 90 93 Gross Profit 13 10 7 Tax 30% 3.9 3 2.1 Net Profit 9.1 7 4.9 Incremental Sales Required for - 30M EUR 85.7M EUR Excellent Performance - 30% 85.7% All example amounts reflect Euros (in Millions) Source: Helsinki School of Economics, 2005
  7. 7. Successful ePurchasing involves addressing process, technology, and organization hurdles — multiple technology choices are needed, not just one Andy Bartels, Forrester
  8. 8. High-level benefits of eProcurement Benefits of Working Control over Cash flow Process electronic capital spend optimization efficiency procurement optimization
  9. 9. Real time information flow drives continuous improvement Procurement contracts Contract compliance Sourcing Purchasing Invoice automation S Spend data analysis
  10. 10. From Purchase to Pay Procurement Solutions • Basware Procurement Solutions offer you a reliable way to improve spend compliancy and make cost savings throughout your procurement cycle, from sourcing and contract management to day-to-day purchasing and supplier connectivity. • Basware Procurement Solutions consists of the following applications: - Basware Purchase Management - Basware Order Matching - Basware RFx management - Basware Contract Lifecycle Management - Basware Supplier Portal
  11. 11. Basware Purchase Management Requisitions Predefined Automated Electronic Online Goods receipt created using coding, review order confirmations and quality as predefined allowing and approval creation of orders prerequisites catalog supplements workflow for automatically from suppliers for invoice selections or during the requisitions or by payment free-text approval flow professional buyers
  12. 12. Many Methods of Purchasing The right tools guarantee maximum coverage for all purchases • Purchasing based on product catalogs - Company standard, contract-based products and services, full control over content • External punch-out catalogs – supplier extranets and marketplaces - Large selections, advanced configuration, availability of information • Free-text requisitioning - Non-standard services and products, one-off purchases • Plan-based purchasing - Pre-approved purchasing for campaigns, projects etc. - Supports budget and other controls
  13. 13. Increased level of Automation with Basware Connectivity Catalog Management ► Time savings on routine catalog validation and management ► Suppler self-service enables 24/7 updating of catalog content Purchase Message Exchange ► Strengthen buyer supplier interaction ► Enable supplier self-service for suppliers of all sizes ► Eliminate errors and manual work in order management ► Supplier activation to connect suppliers in buyers network Catalog Exchange ►Accelerate amount of catalog items in your Purchase Management solution ► Increased data quality of catalogs ► Constant updates of catalog items ►Supplier activation to increase number of supplier catalogs Basware Purchase Management ► Spend control ► Easy deployment and adaptation ► Ramp-up of people and process analytics
  14. 14. Basware Connectivity for purchase messages Basware Connectivity (BT) Catalog, order confirmation etc. Basware ERP / Sales Management system Supplier Basware Purchase Management Supplier Order Portal Buyer Catalog, order confirmation etc. Direct Integration to Supplier Order supplier system Supplier Activation
  15. 15. Creating catalog content Basware Connectivity Basware Supplier Supplier ERP / Sales management system Basware Purchase Management Portal Supplier Direct Integration to Buyer supplier system Supplier Punch-out integration Supplier Activation
  16. 16. Matching Invoices to Purchase Orders Invoice matches Informative work flow with approved purchase order (PO) Invoice does not Automation match with PO (discrepancy)
  17. 17. Basware RFx Management adds Sourcing functionality to Procurement Process • Request for Quotation, Information, Proposal (RFx  RFQ, RFI, RFP) - Organization-wide collaboration in a workspace - Structured organization and storing of documents - Efficient reuse and utilization of earlier experiences • Electronic communication through Basware Supplier Portal - Publication of RFx documents for download - Online Q&A – Questions and Answers - Submitting of tenders: documents and web-forms - Automatic closing of reception after tendering period • Tender opening and evaluation - Scoring of both price and qualitative criteria • Awarding and execution - Tight integration to transactional Purchase to Pay process - Contract drafts processed and utilized in Basware Contract Lifecycle Management
  18. 18. Basware Contract Lifecycle Management Complements the Procurement Process • Meant for the development and maintenance of supplier / customer / partner business agreements in a structured manner • Facilitates coordination, reporting, and monitoring of multiple business processes and partners throughout the supply chain • Streamlines the management of each contract through its entire lifecycle with maximum level of automation • Support for all the corporate contracts (buy, pay, sales, partner etc.) • Integrated Purchase to Pay process automation - Importing contracts e.g. as a result of tendering process - Creation of contract based purchase orders - Automatic price/discount control - Pay/buy control and contract spend reporting - Automatic handling of contract based invoices - Contract based self-billing
  19. 19. Integration • Seamless integration with Basware EPP solutions • Flexible Enterprise Resource Planning (ERP) interfaces for online collaboration and batch integration - Ideal fit for international organizations with multi- ERP environments - Quickly adaptable to changes in the ERP environment • Basware integrates with over 100 different ERP and other business support systems - Certified partnerships with Oracle, Microsoft and SAP - Dual SAP interface certification for the Basware anyERP Adapter ("SAP® Certified Interface" and "Certified for SAP® NetWeaver™")
  20. 20. Solution Benefits • Compliance and efficiency through automation • Cost control before ordering • Real-time spend tracking • Contract-based purchasing • Complete control over what is purchased in the organization • Efficient product content management • Online buyer-supplier interaction • Full integration with invoice processing - Flexible matching of invoices to orders - Payment upon receipt of goods - Elimination of manual invoice processing through 5- way matching
  21. 21. Analyst Review ―Basware stakes out a strong position as a new player in eProcurement.‖ A survey made in the US in Q2 2007 of eProcurement Solution vendors The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
  22. 22. Basware Implementation • Fast implementation (6 - 8 weeks calendar time) - Off-the-shelf package solution – quickly adaptable through parameterization, without lengthy programming • Flexible ERP interfacing with online collaboration and batch integration - Ideal fit for international organizations with multi-ERP environments - Basware has been integrated with over 200 different ERP and other business support systems • Standardized delivery project MILESTONES Start Definition Server Installation Ready for testing Ready for production GO-live Closing Implement- Customer Production Hand over Planning Building ation testing set-up and closing Project & Change Management
  23. 23. References
  24. 24. Cut Costs and Inventory at Helsinki Energy “Optimizing our procurement Helsinki Energy, one of the largest energy companies in Finland, wanted to improve its processes with Basware procurement processes as: Purchase Management has enabled us to reduce our capital • Processes were not clearly defined. expenses by €2,000,000 thanks to clearer processes and better • Its purchasing process allowed maverick buying. supplier integration.‖ • The old procurement system was not compatible with other solutions. Results • Removed the capital cost of paying for unnecessary stock and inventory. • Deployed a catalog system; employees now order approved items as they are needed, which has Markku Vettenranta, decreased maverick buying. Head of Purchasing Services, Helsinki Energy • Improved integration with suppliers.
  25. 25. Better Transparency for Ritter Sport Ritter Sport, the German chocolate ―Basware Purchase manufacturer, wanted to: Management will help us • Create a uniform process for purchasing indirect improve our electronic materials. procurement processes.‖ • Increase transparency of spend and category management. • Achieve process and price savings. Results • Reduced the time and cost of administering each purchase. • Eliminated maverick buying. • Introduced catalog buying; reducing the number of suppliers used. • ―Basware Purchase Management will help us Carsten Knebel, improve our electronic procurement processes.‖ Purchasing Manager, Ritter Sport
  26. 26. Basware has more than 1,000 large customers
  27. 27. Why Basware for Procurement? • Savings. Offers guaranteed cost savings based on procurement management program. • Agile solution. Easily integrates with other systems like ERPs and Basware Enterprise Purchase to Pay Products. • Human-driven. Addresses process needs by empowering end-users to purchase through approved channels using easy-to-use packaged procurement solution. • In-house procurement. Provides internal controls to ensure that the same policies are executed everywhere within the company. • Think Basware for... - All indirect purchasing - Direct purchasing for service industries - MRO (maintenance, repair, operations)
  28. 28. For more information: paul.turnmer@Basware.com 0408 617 110 or 02 6255 9905 Controlled Performance – from Purchase to Pay

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