2. EVOLUTION OF SOURCE TO PAY
Process control for consistent global execution of
sourcing processes
Ulrich Baecker, Manager – Source to Pay Tools & Methods
21 October 2012

3. Agenda
Rockwell Automation – Who We Are
Sourcing – How Did We Get Here?
Evolution of Source To Pay
Source To Pay Cycle
Questions

4. Transforming Your Challenges
Into Advantages
That’s
Smart, Safe, Sustainable
Manufacturing

5. Transforming Your Business
Today’s marketplace demands
innovative strategies and
technologies to increase:
• Productivity
• Sustainability
• Business agility
That’s Smart, Safe
Sustainable Manufacturing

6. Who We Are
The world’s largest company dedicated to
industrial automation and information.
We make our customers more productive and
the world more sustainable.

7. Rockwell Automation At A Glance
Fiscal 2011 Sales
$6 billion
Employees
Over 21,000
World Headquarters
Milwaukee, WI USA
Leading global provider of industrial
power, control and information solutions. Market
Over 80 countries
Emerging Markets
22% of total sales
Trading Symbol
ROK

8. Serving You Around the World
North America:
57+ sales & support locations
9,600+ employees
Latin America:
16+ sales & support locations
4,400+ employees
Europe, Middle East & Africa:
39+ sales & support locations
20+ countries
4,000+ employees
Asia Pacific:
80+ sales & support locations
20+ countries
3,700+ employees

9. Agenda
Rockwell Automation – Who We Are
Sourcing – How Did We Get Here?
Evolution of Source To Pay
Source To Pay Cycle
Questions

10. How Did We Get Here?
Consistent evolution and process improvement
 Pre-2000 – Decentralized Functions
 2000 to 2004 – Functional Excellence
 2005 to 2009 – Global Process Transformation
 2010 onwards – Expanding to Source To Pay
Organization, Systems and Processes

11. Agenda
Rockwell Automation – Who We Are
Sourcing – How Did We Get Here?
Evolution of Source To Pay
Source To Pay Cycle
Questions

12. Evolution of Source to Pay Organization
:: Pre 2000
Decentralized Functions
 No centralized spend visibility
 Poor leverage with suppliers
 Overlap and duplication of
responsibility
 Inefficient use of buying and
sourcing resources
 Lost savings opportunities
 Highly fragmented process
flow
Organization and Process driven
by decentralization

13. Evolution of Source to Pay Organization
:: 2000 to 2004
Functional Excellence
 Improved centralized spend
visibility
 Improved leverage with
suppliers
 Reduced overlap and
duplication of responsibility
 Improved use of buying and
sourcing resources
 Improved savings
opportunities
Centralized Sourcing established to
drive spend efficiencies

14. Evolution of the Source to Pay Organization
:: 2005 to 2009
Global Process Transformation
 Global ERP becoming single
source of the truth
 Improved use of buying and
sourcing resources
 Reduced cost to maintain
disparate systems
 Improved spend analysis
 Move to global end-to-end
process flow
Move towards single source of the
truth and global process

15. Evolution of the Source to Pay Organization
:: 2010 onwards
Expanding to Source To Pay
 Incorporation of regional
sourcing and procurement
organizations
 Increased standardization
 Reduced risk of error
 Reduce manual steps
 Streamline responsibility
 Drive deeper analysis
 Improve master data
management
New tools to continue to optimize
organization and processes

16. So what…
 Incorporation of regional sourcing and procurement organizations – globalization of the
process w/ single instance ERP
 Increased standardization w/ common process, tools, data and reporting
 Improve master data management – disciplined approach to maintenance and change
management
New tools to continue to optimize organization
and processes

17. Global Business Process Evolution
Old Process Flow – Purchase to Pay
Material Locate / Create / Receive & Manage
Manage
P2P Service / Qualify Manage Material /
Accounts
Demand Vendor Source Service Payable
New Process Flow – Source to Pay
Analyze Manage Manage Manage Manage Manage
S2P Spends Source Contracts Supply Fulfillment Payments
Provides complete foundation for future capabilities.

18. Agenda
Rockwell Automation – Who We Are
Sourcing – How Did We Get Here?
Evolution of Source To Pay
Source To Pay Cycle
Questions

19. Source To Pay Cycle
Centrally managed contracts forge the link between Sourcing
Management & Supply Management

20. Agenda
Rockwell Automation – Who We Are
Sourcing – How Did We Get Here?
Evolution of Source To Pay
Source To Pay Cycle
Questions

21. Thank You