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Reinventing P2P Trends

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This presentation will address key P2P trends within the overall Procurement landscape. Whether it is the buzz around robotic technology, digital transformation or IoT, understanding trends in P2P becomes more valuable when seen in a business context.
• Trends reinventing Procure-to-Pay in 2018
• Best practices defining vendor management, savings maximization, procurement and invoicing automation, catalog management and technological integrations
• How procurement leaders should interpret these trends in their business contexts
• How to plan and take action ahead of a procurement transformation

Published in: Technology
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Reinventing P2P Trends

  1. 1. Re-inventing Procure-to-Pay Key 2018 Procurement Trends Krishan K. Batra President & CEO ISM-INDIA Access an on-demand Webinar on this topic here: https://zyc.us/2q4fZkD
  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: Krishan K. Batra  Education: • MBA from Syracuse University (USA) • PGDIM (Bombay University) • DCM (Bombay University) • M.Tech (IIT, Delhi)  Professional Certification: • ERP Certification  Recognition: Hind Ratna  Experience: • President, ISM-India, www.ism-india.org • Chairman: UNDP/ACP, New York (Overseeing 166 Countries) • Senior Executive Director: NSIC Ltd, India • GM, TRTC and many other senior positions in various companies including Voltas
  3. 3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Agenda  Traditional to Modern P2P  P2P Trends – 2018  P2P Transformation – Change Management  Quick Quiz
  4. 4. TRADITIONAL TO MODERN P2P Access an on-demand Webinar on this topic here: https://zyc.us/2q4fZkD
  5. 5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Procure-to-Pay
  6. 6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Traditional P2P  Series of multiple steps  Each handled by different BU/ stakeholder  From Requisition to Payments – too many hands involved • Unnecessary expenses • Delays • Errors  All businesses need supplies, and generally spend 50% and sometimes as much as 70% of their budget procuring them
  7. 7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Traditional P2P – Characteristics  Paper driven process – no workflow or automation  Procurement not linked to AP  Employees buy things what/when/from whom they want  Many purchases outside specified catalogue  Lack of invoice visibility – misplacement  Low quality insights from spend data  Low end-to-end compliance and control  Lengthy and time consuming processes
  8. 8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Transaction Types Inventory, 50% Non-Inventory, 20% Check Requests, 5% Non-PO Invoices, 10% Payroll Deductions, 2% Utilities, 3% Service Rentals, 5% T&E, 5% Production, Direct Materials, SKUs MRO Materials
  9. 9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Top Opportunities for Improvement in Procurement Process
  10. 10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Why Automate P2P?  Demand for such a solution is expected to increase to 50% in the next 5 years
  11. 11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay P2P in Organizational Context Spend Category Strategy Vendor Selection & Negotiation Purchase Requisition Approval Purchase Order Generation Invoice Receipt & Processing Payment Processing Vendor Management Procurement Accounts PayableProcurement & Finance Procurement & Legal Procurement & Business Areas Procure-to-Pay Source-to-Pay Procurement & IT
  12. 12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Direct Cost Savings From P2P  In times of economic uncertainty and slow-growing revenues, reducing the cost base of an organisation is the single best measure to improve the bottom line.  For a typical company, a 5% reduction in purchasing cost can increase the bottom line with as much as a 25% increase in sales  Indirect spend presents a huge opportunity  Tactical, Strategic & Managerial benefits
  13. 13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Procurement’s Relationships: AP and Suppliers  AP: Matching is the process used to compare AP Vouchers with Purchase Orders and Receipts • 2-way match – AP voucher & PO • 3-way match – AP voucher, PO & Receipt  Suppliers: Experience shows 30% or more of the effort will be managing suppliers and getting content online • P2P automates cumbersome supplier processes
  14. 14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Elements of Planning a P2P Implementation  Build a numbers-driven case  Communication and change management  Performance measurement  Impact on the procurement department
  15. 15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay P2P-ERP Integration  Most P2P implementations happen because ERPs are inadequate in the procurement technology area  Investing in procurement-specific software yields better results  Choosing a solution with seamless ERP integration
  16. 16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Gartner Magic Quadrant – Strategic Sourcing Application Suites High level of overall customer satisfaction High scores across all four core modules: Spend Analytics, eSourcing, CLM and SBM Strong combination of functionality and platform capabilities Highly thought of product offerings compared with most other vendors Strong market understanding
  17. 17. P2P TRENDS – 2018 Access an on-demand Webinar on this topic here: https://zyc.us/2q4fZkD
  18. 18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay P2P Trends Reinventing 2018  Cloud, IoT  Post Modern ERP Strategy  RPA, AI, ML  Big Data  Mobile P2P  Bonus: Blockchain Technology
  19. 19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Cloud, IoT  The cloud is still news! Cloud systems are internet based solutions that give access to shared computer resources on demand. The SaaS model and resources like Amazon AWS and Microsoft’s Azure are contributing to the growth of cloud services for the enterprise – a trend that is not slowing down  More organizations are using technology to create “touchless” business processes, such as PO matching that delivers a matched invoice to the ERP without human intervention.
  20. 20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Post Modern ERP Strategy  ERP Replacement versus Adding a specialized P2P layer on top of existing ERP  Bifurcate existing applications into Core and Operational • Stability v/s Agility  Are operational applications becoming inefficient because they are being subjected to the same treatment as Core applications?  Evaluate specialized P2P solutions with seamless ERP integration
  21. 21. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay RPA, AI, ML  A form of process automation technology that can be deployed to perform manual, rules-based and repetitive tasks • Plays a key role in automating transactional P2P processes • RPA can reduce costs by 35-65% for onshore delivery operations and 10-30% for offshore delivery operations  AI and ML come into play when the P2P solution starts learning from these repetitive tasks • Flagging fraudulent/ non-compliant suppliers • Smart contracts
  22. 22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Big Data  Management of increasingly large data sets • Analysis – Capture – Visibility – Curation – Transfer – Updation  Making more informed decisions • Spends, Savings, Payments, Accountability  Bringing Procurement, AP, Admin, Legal on the same page  Rebranding Procurement • ‘Cost Centre’ to ‘Savings Centre’
  23. 23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Mobile P2P  On the go • Raising requisitions • Approvals • Modifications • Authorizing payments  Productivity boost  Connect with suppliers in real time
  24. 24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Bonus: Blockchain Technology  A shared digital ledger which includes a continually updated list of all transactions associated with a given “object” or grouping of objects  Relevance to P2P • Ability to program activities when matches occur • Supply chain traceability • Compliance  Still in infancy, little hope for maturity till 2022
  25. 25. P2P TRANSFORMATION – CHANGE MANAGEMENT Access an on-demand Webinar on this topic here: https://zyc.us/2q4fZkD
  26. 26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Change Management  It’s always a good idea to map out your “change journey” and present it to your stakeholders to get their buy-in before you start implementing your software to avoid any future policy issues  Include these in the plan: • Training plans • Adoption plans • Supplier communication plan  Look out for the solution that partners with you in this Change Management journey
  27. 27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay P2P Best Practices  Look out for these while choosing the right solution! • Contract Management: • Catalog Management & Catalog Search Engine • Catalog and Non-Catalog based Requisition • Requisition Approval and Tracking • Auto/Manual PO • Payment Processing/ Early Payment Discount • Analytics & Reports • Pre-Built Integrators (Complements ERP) • Mobility • Deeper Supplier Engagement (Self Service, Dispute Resolution) • Full P2P Functionality
  28. 28. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Summary  P2P has a significant role to play in the future of Procurement and its advancement  It should not only be seen as cost cutter but as a Strategic Function that can have a real impact on the bottom line  The P2P bandwagon is rolling. The question that all businesses must ask is should I jump on now or be mowed under by its wheels
  29. 29. QUICK QUIZ
  30. 30. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Quick Quiz  E-Procurement and P2P are same. • True • False  Combine the e-procurement and e-invoicing/ invoice-to-pay modules, and what you have is: • P2P • S2P  E-procurement was essentially created to combat the gaps in ERP support for purchasing activities. • True • False  Invoice-to-pay is simply a combination of e-invoicing and e-payments • True • False  Organizations across all industries, from retail to construction to education, rely on Procure-to-Pay (P2P) solutions to convert negotiated contracts to realized savings and ensure compliance • True • False
  31. 31. Krishan K. Batra President & CEO ISM-India (+91) 124-4221353 (+91) 9971171220 krishan.batra@ism-india.org www.ism-india.org /company/ism-india/ /ismindia /ismindia Access an on-demand Webinar on this topic here: https://zyc.us/2q4fZkD
  32. 32. Need more insights? An On-Demand Webinar on the topic "Re-inventing Procure-to-Pay" can be accessed here: https://zyc.us/2q4fZkD Follow us on social media for more updates! Twitter | LinkedIn | Google+ | Xing
  33. 33. +1 866 563 9219 info@zycus.com www.zycus.com Thank You

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