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Design thinking

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The development of a Best-in-Class P2P program takes, among other things, sponsorship, effort, collaboration, vision, expertise, and supporting technology infrastructure. Superior program design also remains a critical element in the speed and level of P2P excellence and financial agility that is ultimately achieved.

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Design thinking

  1. 1. DESIGN THINKING: TOP STRATEGIES FOR P2P SUCCESS IN THE MID-MARKET Thank you for joining us, we will begin momentarily.
  2. 2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Tips for using WebEx  Audio is provided through your computer speakers only If you are unable to hear the audio through your computer speakers, simply click on the phone icon above the chat window to receive teleconference information.  The chat box (asking questions/tech issues)  In case of any other technical problems mail us at webcasts@zycus.com
  3. 3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay TODAY’S PRESENTERS Robert Cohen Research Director Ardent Partners Richard Waugh VP of Corporate Development Zycus Andrew Bartolini Founder & Chief Research Officer, Ardent Partners
  4. 4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay ABOUT ZYCUS – COMPREHENSIVE SOURCE-TO-PAY SUITE Zycus is among the only 3 Leaders in the Gartner’s 2017 MQ for Strategic Sourcing Application Suites
  5. 5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay ARDENT PARTNERS: RESEARCH WITH RESULTS
  6. 6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Check out our webinar at http://zyc.us/2IrSVnu
  7. 7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CPO RISING & PAYABLES PLACE www.cporising.com www.payablesplace.com
  8. 8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Visit events.cporising.com today, and join us in Boston1 THE CPO RISING SUMMIT 2018
  9. 9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay AGENDA  Introduction  The State of P2P in 2018  The Top Strategies for P2P Success in the Mid-Market  Q & A
  10. 10. THE STATE OF P2P IN 2018
  11. 11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay PROCUREMENT’S TOP PRIORITIES
  12. 12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay PROCUREMENT’S TOP CHALLENGES
  13. 13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay ELEMENTS OF PROCUREMENT MASTERY
  14. 14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay AP’S TOP PRIORITIES
  15. 15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay AREAS CURRENTLY MANAGED OR SUPPORTED BY AP
  16. 16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay THE ESSENTIAL ELEMENTS FOR AP’S FUTURE SUCCESS
  17. 17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay P2P TECHNOLOGY ADOPTION
  18. 18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Check out our webinar at http://zyc.us/2IrSVnu
  19. 19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CORE AP CAPABILITIES, BEST-IN-CLASS VS. ALL OTHERS
  20. 20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay P2P AUTOMATION, BEST-IN-CLASS VS. ALL OTHERS
  21. 21. TOP STRATEGIES FOR P2P SUCCESS IN THE MID-MARKET
  22. 22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay DEFINING THE MID-MARKET
  23. 23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CLASSIC CHALLENGES IN MID-MARKET P2P OPERATIONS
  24. 24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Mid-Market Procurement Challenges  Not enough FTEs  Existing FTEs Consumed by Tactical  Rampant Maverick Spend  Limited Spend and Process Visibility  Antiquated Systems  Best-of-Breed Technologies Out of Reach  Limited (Or No) IT Support  Aggressive Savings Goals  Rapid Proliferation of Supply Base 62% Tactical vs. 38% Strategic X-Industry Average.
  25. 25. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay NEW OPPORTUNITIES FOR MID-MARKET P2P TEAMS The Cloud Usability
  26. 26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay NEW OPPORTUNITIES FOR MID-MARKET P2P TEAMS Competitive Pricing ePayments
  27. 27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 1. THINK HOLISTICALLY COMPREHENSIVE SCOPE: FULL PROCURE-TO-PAY
  28. 28. 28© 2017 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pa Zycus Genesys – Critical First Step Towards Digitization Supplier Setup/ Onboarding Digitized Contracts Process Invoices Place Purchase Orders Manage Catalogs & Punchouts Create Requisitions Manage Approvals SUPPLIER NETWORK Supplier Information Management • Onboard, Manage, Track & Transact with Suppliers Contract Repository • Aggregate Key Agreements/Integrate to P2P Process Procure-to-Pay • Automated Approval Workflow Process Management • Paperless Requisition, PO and Invoice Processing • Hosted and Punchout Catalog Management • “Quick Source” Req-to-Quote Bid Process • ERP Integration for Payments/Posting to G/L
  29. 29. 29© 2017 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pa Zycus Genesys Value Proposition Zycus Genesys A turnkey solution for the first step of Procurement Automation and Transformation Best-in-Class Procurement Solution Fast-Track implementation (8-12 weeks) Easy to Buy and Own  Affordable, Fixed Annual Cost Smooths Investment  Strong ROI Justification and Time- to-Value  Recognized Leader by Gartner & Forrester  Intuitive, “Guided Buying” UX for Rapid Adoption  Leverage “Out-of-the-Box” Best Practices & Expert Resources  Cloud Delivery, Supplier On- Boarding Services Minimize IT Support World-Class Transactional Procurement in <90 Days @ ~1 FTE C&B Cost
  30. 30. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 2. DEFINE GOALS, OBJECTIVES, AND SUCCESS
  31. 31. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Prioritize Goals and Objectives, Define Success Metrics Reduce Maverick Spending Enforce Budget Control Drive User/ Supplier Adoption Gain Real- Time, Granular Spend Visibility Achieve Process Efficiency Ensure Process & Regulatory Compliance Maximize Early Pay Discounts or DPO
  32. 32. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 3. ENGAGE USERS EARLY IN THE PROCESS
  33. 33. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Check out our webinar at http://zyc.us/2IrSVnu
  34. 34. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Focus on User Experience: Guided Buying GUIDED BUYING AI suggests relevant categories based on user’s natural language search term and organizational buying patterns Steer users to approved suppliers and Buy/Pay channel for the category Invoke category-specific workflows, map to GL account and default bill to/ship to based on user profile
  35. 35. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 4. COLLABORATION IS KING: “GIVE TO GET”
  36. 36. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay  No single source of truth, ad-hoc supplier on-boarding process and incomplete supplier data  Paper-based purchase-to-pay and high “No PO” non-compliant spend  No standard approval workflows, extensive manual re-work to process orders, invoices in ERP  Empowered end-user adoption, migrating from centralized to de-centralized purchasing and strengthening compliance with a “No PO – No Pay” policy  Reduced Vendor Management FTE support by 87% with self-service supplier portal for registration, on-boarding, as well as invoice status tracking  Automated 3-way Invoice Matching to save 40% of time spent by AP on invoice processing and exception management  Slashed Req-to-PO cycle from 7 days to a few hours and shaved 1/3 off invoice approval cycle times, enabling 1% savings for prompt pay discounts on one-third of total spend  Netted $100K savings by eliminating duplicate payments alone  Deployed integrated P2P and Supplier Management Portal  Communicated mandatory portal program participation along with webinar outreach  Initial on-boarding of 500 suppliers – focus on 20% that account for 80% of volume  Enabled for e-invoicing and self-service status checks – 20% via cXML/80% via portal  “Go Live” ahead of schedule with end-to-end P2P process workflows configuration, ERP integration, 40 punch-out/hosted catalogs, and library of configured, “Guided” e-forms 20% 80% Case Study: Private Insurer Realizes Benefits for both AP & Procurement
  37. 37. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 5. SEEK CFO SPONSORSHIP
  38. 38. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Business Case for Achieving Best-in-Class P2P Performance Early Payment Discount PO & Invoice Processing Contract Compliance Total Savings $108,000 $254,400 $2,320,000 $2,682,400 Savings Impact: 2-3% per $100M Spend 3 15 $17.37 $4.80 1 3 $4.58 $2.27 Req-to-Order (Days) Order-to-Pay (Days) PO Processing Cost ($) Invoice Processing Cost ($) Efficiency Impact - Processing Cost & Cycle Time Current Estimate Post Genesys Business Metrics - Annual Spend & Transaction Volume Total Adressable Spend $100,000,00 0 Potential Maverick Spend (%) 60% Spend Compliant to Contract 40% Targeted Spend Compliant to Contract (%) 69% Targeted Savings from On-Contract Spend (%) 8% Req-to-Order Cycle Time (Days) 3 Annual Requisition Volume 7,500 Invoice Processing Cycle Time (Days) 15 Annual Purchase Order Volume 10,000 Per PO Processing Cost $17.37 Annual Invoice Volume 50,000 Per Invoice Processing Cost $4.80 Current Early Pay Discounts (% of Spend) 0.002% Targted Early Pay Discounts (% of Spend) 0.11% Business Value - Savings & Process Improvement Component Current Estimate Genesys Impact New Value with Genesys Estimated Savings Savings from Contract Compliance ($) 40% 73% 69% $2,320,000 PO Processing Cost ($) $17.37 74% $4.58 $127,900 Invoice Processing Cost ($) $4.80 53% $2.27 $126,500 Early Pay Discount Savings ($) $2,000 5400% $110,000 $108,000 Total Savings $2,682,400 Cycle Time Improvement: Requisition-to-Order Cycle (Days) 3 67% 1* Invoice Processing Cycle (Days) 15 80% 3* * Note: Assumes Best-in-Class Cycle Time Achievement with P2P of 1 Day Order and 3 Days Invoice Process Cycle Times
  39. 39. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 6. DESIGN FOR SUCCESS (ARDENT’S P2P BLUEPRINT) 1. Process efficiency and savings goals 2. System capabilities 3. Integration requirement 4. Visibility and reporting capabilities 5. Business user engagement, requirements, & adoption 6. Functional user engagement, requirements, & adoption 7. Supplier enablement 8. Requisition to PO to Invoice to Payment 9. Payment & cash management strategies 10.Process, contract, and regulatory compliance
  40. 40. SUMMARY
  41. 41. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay SUMMARY In 2018, there is no excuse for a P2P operation to be siloed and operating around the fringes of the business. However, it is incumbent for Procurement and AP executives take the lead role in driving their transformation.
  42. 42. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Summary 1. Think holistically 2. Set clear goals and objectives 3. Engage stakeholders (early and often) 4. Collaboration is king - “Give, to get” 5. Seek CFOSponsorship 6. Develop a P2P blueprint
  43. 43. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay &
  44. 44. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Ardent Partners Speaker Contact Information For more information please visit: www.ardentpartners.com & www.payablesplace.com Andrew Bartolini Chief Research Officer Ardent Partners abartolini@ardentpartners.com @andrewbartolini Bob Cohen Research Director Ardent Partners rcohen@ardentpartners.com @bobcohen_ardent
  45. 45. +1 866 563 9219 info@zycus.com www.zycus.com

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