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Machine teaching webinar

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For Machines to truly learn – they must, not unlike Humans – be taught properly, providing them with complete, accurate data from which to establish patterns and draw inferences. The first step of teaching your machines to be able to effectively apply AI is to digitize and enrich the massive amounts of data being captured through core Sourcing and Vendor Management processes, such that the resulting data analytics represent a Master Class in Strategic Procurement – for your Machines.

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Machine teaching webinar

  1. 1. Machine Teaching: Apply AI for Predictive Procurement
  2. 2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Today’s Presenter – Richard Waugh, VP Corporate Development, Zycus Extensive background in B2B e-commerce Helped Launch GE's TPN, first on-line Marketplace for Sourcing & Procurement Industry Analyst in Supply Management market for the Aberdeen Group Co-Founder of B2eMarkets First SaaS Sourcing Suite providers
  3. 3. 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 Recognized by Leading Analysts
  4. 4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Machine Teaching – Apply AI for Predictive Procurement 01 Train your machines to clean Master Data at the source by leveraging AI to properly categorize and classify transactional and supplier-related data the first time, and to learn more from the exercise every time 02 Let AI Guide your users through key decision-making processes for better outcomes, a better user experience, and better data 03 Digitize the entire Source-to-Pay Process including “pockets of paper”: • Incoming Request Management • Tail Spend not under management by Procurement • Performance and Savings Management tracking and reporting 04 Leverage RPA to automate repetitive tasks – flawlessly
  5. 5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Applying AI to Procurement Starts with Spend “Vendors such as Zycus, SpendHQ and Coupa Spend360 are already using machine learning to improve spend classification. The next step in this area is to explore the predictive spend analytics that can further improve the planning and prioritization of strategic sourcing activities.” Source : Gartner : “Start Preparing Now for the Impact of AI on Procurement” Train your machines to clean Master Data at the source by leveraging AI to properly categorize and classify transactional and supplier-related data the first time, and to learn more from the exercise every time
  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 https://zyc.us/2AQGwXK
  7. 7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Spend Classification – Before AI Data • Distributed data • Multiple GL codes • Multiple languages • Multiple classification standards Spend Report • Inaccurate reports • Low reliability • Low spend visibility • No ROI Garbage In Data Warehouse Garbage Out
  8. 8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Spend Classification – After AI Data • Distributed data • Multiple GL codes • Multiple languages • Multiple classification standards Spend Report • Statistical model based data classification • Handles erroneous data • Automated and rapid classification • Quick ROI Quality In Quality Out Analytics
  9. 9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Spend Mining Next Generation Spend Analytics COST MODELS Market Indices Spend Data Spend Benchmarking QuickSearchLaptop T430 from Lenovo Spend Search Prescriptive Proactive Predictive Participative Spend Monitoring
  10. 10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay AI suggests relevant categories based on user’s natural language search term and organizational buying patterns AI steers users to approved suppliers and Buy/Pay channel for the category AI Invokes category-specific workflows, map to GL account and default bill to/ship to based on user profile GUIDED BUYING Key Finding AI-Enabled Guided Buying – Key to Better UX and Better Data Let AI Guide your users through key decision- making processes for better outcomes, a better user experience, and better data
  11. 11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Key Finding AI-Enabled Guided Sourcing & Contracting – Better Decisions “SmartAssist” Suggestions: • Which Suppliers to Shortlist for Sourcing • What Type of Negotiation Yields Best Results • When Do I Need to Start Contract Process • Which Clauses Need to Be Included Let AI Guide your users through key decision-making processes for better outcomes, a better user experience, and better data
  12. 12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Digitize the Entire Source-to-Pay Process including “pockets of paper” Sourcing Spend Analytics Contracts Supplier Management eProcurement Supplier Performance eInvoicing Strategic Operational Request Management Digitized Source-to-Pay…Connected Dots, No Pockets of Paper Financial Savings Management Non-Procurement Managed Tail Spend
  13. 13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Benchmarking Best-in-Class Source-to-Pay Performance SUM Avg. – 55.2% BIC – 92.0% Spend Sourced Avg. – 41.1% BIC – 69.8% On-Contract Spend Avg. – 52.8% BIC – 70.9% Contracting Cycle Avg. – 22.2 Days BIC - 11.5 Days Discount Spend% Avg. - .02% BIC - .10% Cost per PO Avg. - $17.18 BIC - $4.93 Maverick Spend Savings 8% Sourcing Savings Avg. – 5.6% BIC – 7.1% Cost per Invoice Avg. - $4.84 BIC - $2.23 P-Card Spend% Avg. - .66% BIC - 4.75% Spend w/Line Item Visibility Avg. – 38% BIC – 99% Suppliers w/Failing Scores BIC – 3.8% Sourcing Cycle Avg. – 75 Days BIC – 45 Days Invoice Approval Cycle Avg. - 5 Days BIC - 3 Days SM Productivity Savings 20% Suppliers per $1B Avg. -17,899 BIC - 6,795 Source: Hackett Group Benchmarks Source: SpendMatters Benchmark Source: Hackett Group Benchmark Source: Aberdeen Group Benchmark Source: Ardent Partners Benchmarks Source: Ardent Partners Benchmark Source: Ardent Partners Benchmark Source: Hackett Group Benchmark
  14. 14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Benchmarking Digital Transformation Requisition Purchase Order Release to Blanket Order PO Change Order Invoice Receipt Payment Full Automation – Digital Transformation Target 95–98% Top Performer Peer Source: Hackett Group P2P Performance Study 2017 % Electronic Transactions (Fully Automated Approval Workflow/Order Dispatch) 81% 79% 100% 66% 85% 100% 63% 28% 62% 28%33% 80%
  15. 15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Best Practices for S2P Transformation Sequencing Spend analysis E-Sourcing SBM Map external spend Negotiate Strategic Agreements Manage compliance Manage Supplier Relationships Key Success Factors • Identify and use data from relevant transaction systems • Deduplicate and classify • Assign ownership of Key Success Factors • Promote a culture of control and responsibility • Involve stakeholders in category plans, work Key Success Factors • Build a pipeline of cost reduction opportunities • Create a center of excellence • Make use of e-sourcing mandatory Key Success Factors • Segment supplier base to rightsize management • Deploy solutions that support supplier collaboration Source: Gartner “Best Practices for Sequencing Procurement Solution Investments”
  16. 16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Best-in-Class Advantage – Realized Savings Spend/Transaction Volumes • $1B Spend • $2.5M Supplier Management Cost • 75K POs • 150K Invoices Savings Management Spend Analysis eSourcing Procure-to-Pay Contract Management Supplier Management ₊ 37% More SUM ₊ 29% Incremental Spend Sourced ₊ 1.5% Higher Savings Capture Rate ₊ 18% Higher Compliance to Contract ₋ 20% Lower Supplier Management Cost √ Best-in-Class Cost per Transaction √ Best-in-Class Discount Capture Rate $287M Incremental Spend Sourced $26.5M Incremental Savings Identified $18.8M Retained Sourcing Savings $.5M Supplier Management Cost Savings $1.3M Transaction Cost Savings $.8M Early Pay Discounts ------------- $21.4M Incremental Realized Savings Best-in-Class Advantage vs. Average
  17. 17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Best-in-Class Advantage – Source-to-Cash Cycle Time Best-in-Class Achieve Higher NPV of Savings Realized 42% Faster Best-in- Class Industry Average 45 Days Sourcing Cycle 75 Days 11 Days Contracting Cycle 22 Days 1 Days Order Cycle 2 Days 3 Days Invoice Cycle 5 Days60 Days 104 Days RFX Award Contract Order Invoice Pay
  18. 18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Customer-Centric Procurement Teams Focus on User Experience
  19. 19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Procurement Request Management Solutions Reject inappropriate requests eSourcing Contract Management Project/ Savings Management Supplier Management/ P2P ProcurementApproverRequester Sends requests Approves requests Manages and Processes Requests Create Contract Create Sourcing Event Onboard a Supplier Pre-purchase Request Supplier Performance improvement PO Amendment Contract Amendment Task Assignment Initiating a Project Price or terms change request by Supplier Configurable Flexiform Configurable Approval Workflow Conditional Logic / Rules Calculated Fields Delegation Comprehensive Reporting Process Use Cases Features
  20. 20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay  Automated request management and tracking triages procurement’s work queue – empowers and engages end-users  Sophisticated, conditional approval workflows (>175 conditions, 4-5 approvals per form)  Conditional logic integrates IT security reviews with on-boarding requests  Supports multiple request use cases, e.g. negotiate contract, run sourcing project, on-board supplier, capital appropriation project approval  Seamless process flow from request to execution – e.g. approved request initiates activity in target module  Also supports non-procurement (Hotel, Facilities, HR, IT) requests Extending Beyond Procurement Users Integrating Business Processes Customer- Centric iRequest - Porsche Customer-Centric Case Study: Request Management
  21. 21. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay • Focus Sourcing FTEs • Collaborate Globally • Standardize Process • Self-Service Sourcing • Ensure Compliance • Standardize Process Customer-Centric Doesn’t Mean All Customers are Equal
  22. 22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Standardized, Self-Service Tail Spend Sourcing Tactical, Spot Buys – 3 Bids & Buy Create and Invite New Suppliers on the Fly Create RFQ Inquiry on Single Screen
  23. 23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Financial Savings Management Challenges/Solutions Challenges • Most organizations tracking with spreadsheets/home- grown tools • Existing tools lack Finance collaboration and approval workflow • No standard definition of savings calculation and allocation methods exists, and lifecycle tracking visibility is missing Solution Align: • Import baseline spend from Spend Analytics • Establish Finance-approved spend baseline and savings calculation formulae on common, enterprise platform Validate: • Employ workflow to obtain validation from stakeholders • Map savings projects to stakeholders and approvers Analyze: • Segregate savings by type, e.g. cost reduction vs. avoidance, and accounting period • Identify savings by project/sourcing strategy • Map savings impact to P&L, Balance Sheet, Cash Flow Source: Gartner/Rutgers Survey
  24. 24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Case Study: Financial Savings Management 600+ Savings Projects Initiated $40-50M Annual Incremental Savings Realized To Date 000’s of Users 40 Power Users Create Savings Projects and Collaborate with 000’s of Stakeholders (600 Financial Analysts Alone) 25% Productivity Gain Category Managers Save 2 Hours per Day from Data Gathering Tasks Single Version of Savings Truth  Standardized calculation/allocation formulae  Full audit trail and version control  Secure user access by BU/Div/Dept/Cat  Fx conversion and multi-lingual UI  Flexible/multiple savings types/definitions  Approval workflow sign-off by budget owner and Finance  Dashboard analytics and Financial Statement impact reporting: P&L/Budget/Balance Sheet,/Cash Flow Savings Tracking for Non-Procurement Platform applied to non-procurement savings projects (e.g. Reorg, ERP Consolidation, M&A), Budgeting/S&OP, Cash Flow Forecasting iSave - Qualcomm
  25. 25. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Leverage RPA to automate repetitive tasks – flawlessly Accounts Payable Supplier/Vendor On-boarding Requisition & Order Management Sourcing & Supplier Negotiations Contract Management Stakeholder Collaboration (Legal, Suppliers, Finance/AP) Procurement Processes Transactional/ Manual Tasks LOW HIGH Applying RPA-Enabled AI to Core Procurement Processes
  26. 26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Finding the Right Bot for the Job Merlin A.I. StudioTM Buyers Desk BOT Invoice Email Attachment BOT Invoice Metadata Extraction AI BOT Contract Metadata Extraction AI BOT Contract Clause Classification BOT Contract Risk Analytics AI BOT Buyer-Supplier Negotiation AI BOT RFQ/Auction Assembler AI BOT Supplier Onboarding RPA BOT Request Fulfillment BOT Approver Reminder BOT Requester Reminder BOT Sample RPA Bots
  27. 27. +1 866 563 9219 info@zycus.com www.zycus.com Thank You

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