Procurement organizations are often challenged with lack of spend visibility, little-to-no automation around sourcing processes, difficulties in on-boarding, registering and measuring performance, and more. These organizations need to not only show value to the enterprise by reducing costs, but also provide value-added services to the business.
Sarah Radka, senior business consultant in Perficient’s IBM industry solutions practice, demonstrates how a leading international producer and marketer of beer, wine and spirits improved efficiency in the contract process by implementing a full IBM Emptoris solution.
During this webinar, our solution experts covered the keys to addressing critical contracting and supplier issues such as:
Streamlining procurement operations and removing bottlenecks
Providing and increasing overall spend visibility for an entire organization
Rationalizing and consolidating all templates into a standardized subset
Improving performance, attaining cost savings, mitigating risks and more
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Gain Faster Closure, Lower Risk and Better Results with IBM Emptoris
1. Gain Faster Closure, Lower Risk and
Better Results with IBM Emptoris
A Procurement Organization’s Success Story with the Industry’s
Leading Source to Contract Solution
facebook.com/perficient linkedin.com/company/perficient twitter.com/Perficient_ibm
2. About Perficient
Perficient is a leading information technology consulting firm serving clients throughout
North America.
We help clients implement business-driven technology solutions that integrate business
processes, improve worker productivity, increase customer loyalty and create a more agile
enterprise to better respond to new business opportunities.
3. Perficient Profile
• Founded in 1997
• Public, NASDAQ: PRFT
• 2013 revenue ~$373 million
• Major market locations throughout North America
• Atlanta, Boston, Charlotte, Chicago, Cincinnati,
Columbus, Dallas, Denver, Detroit, Fairfax,
Houston, Indianapolis, Los Angeles, Minneapolis,
New York City, Northern California, Oxford (UK),
Philadelphia, Southern California, St. Louis,
Toronto and Washington, D.C.
• Global delivery centers in China, Europe and India
• >2,200 colleagues
• Dedicated solution practices
• ~85% repeat business rate
• Alliance partnerships with major technology vendors
• Multiple vendor/industry technology and growth awards
4. BUSINESS SOLUTIONS
Business Intelligence
Business Process Management
Customer Experience and CRM
Enterprise Performance Management
Enterprise Resource Planning
Experience Design (XD)
Management Consulting
Our Solutions Expertise
TECHNOLOGY SOLUTIONS
Business Integration/SOA
Cloud Services
Commerce
Content Management
Custom Application Development
Education
Information Management
Mobile Platforms
Platform Integration
Portal & Social
6. Agenda
• About the company (beverage
alcohol)
• The business problem
• Policies/regulations
• Emptoris acquisition process
• Choosing Emptoris
• Current Emptoris footprint
• Benefits of using Emptoris/future
plan
• Source-to-contract solution
implementation services and
capabilities
• Future plan
• Lessons learned
• Q/A
7. About the Company
The client is a leading international producer and marketer of beer, wine
and spirits with operations in the U.S., Canada, Mexico, New Zealand
and Italy.
It is a significant player in the beverage alcohol industry with more than
100 brands in its portfolio, sales in approximately 100 countries, about
40 facilities and over 6,000 talented employees.
The are also:
– #1 premium wine producer in the world
– #1 multi-category beverage alcohol company in the U.S.
– #3 beer company in the U.S.
– #1 wine company in Canada
– #1 producer of New Zealand wine
8. Compliance
Management
The Business Problem
Purchasing SLM
Purchasing Spend Legal SLM
• Lack of uniform and
automated
purchasing practices
• No governance
structure in place to
sustain sourcing or
to strategically
source goods.
• RFX have little to no
process/procedures
• Many disparate
global purchasing
departments
• No visibility to
overall spend in
various critical
direct material and
indirect material
categories (eg –
labels, temporary
labor)
• Lack of common
processes, approved
legal templates, and
clearinghouse for
contract
management
• Inability to track
agreed upon
business terms
• Manual tracking of
terms and expiration
dates for both the
buy/sell side
• Inability to
systematically
track performance
of supplier
• Little to no defined
corporate wide,
standard metrics
in place with little
to no governance
Overarching Issue: Lack of overall processes and procedures; disparate systems
9. Policies/Regulations
SBOX - Section 404 of The Sarbanes-Oxley Act of 2002 (SOX) requires public
companies and their independent auditors to report upon and verify the
effectiveness of the companies' internal control over financial reporting in their
annual reports filed with the Securities and Exchange Commission (SEC)
Excise taxes, federal taxes regulations vary by product
Differing tax brackets as it relates to the amount of alcohol in products
State taxes and import/export laws differ state by state
Various products can’t be sold in certain states contingent on alcohol
percentage
Big box vs. convenience store vs. package store
Age restrictions as it relates to consumption (over 21 only). Age relations as it
relates to marketing (participants can’t be under 24). Alcohol can never be
marketed at ‘fun’ or ‘healthy.’
9
10. Emptoris Acquisition Process
Evaluation
initiated by
supply chain
management
• Company sent
out detailed
request for
proposal
• Conducted an
extensive four
month selection
process
Selection criteria
involved team
score carding
potential vendors
on the following:
• Ease of system
use
• Price
• Meeting
business
requirements
Original
implementation
approach
centralized
through
procurement/
legal/finance
Team included
supply chain,
legal,
procurement,
finance,
information
technology, and
change
management
Over 200
stakeholders
involved in
decision making
process
11. Why They Chose IBM Emptoris
IBM Emptoris provided a best in class solution
IBM Emptoris offered the solution that solved the
client’s business needs and requirements
IBM Emptoris offered integration touch points that
solved previous determined business requirements
12. Current IBM Emptoris Footprint
Spend Analyzer
• Standard
Named Users:
20 per module
• Procurement
• Senior
management
• Wine makers
• Limited Named
Users: 450
Users
Contracts
Management
• Standard
Named Users:
20 per module
• Procurement
• Legal
• Finance
• Compliance
• Risk
management
• Limited Named
Users: 450
Users
Sourcing
• Standard
Named Users:
20 per module
• Procurement
• Finance
• Limited Named
Users: 450
Users
Supplier Lifecycle
Management
• Standard
Named Users:
20 per module
• Procurement
• Finance
• Operations
• Limited Named
Users: 450
Users
13. Benefits of IBM Emptoris
• Spend has been made visible for all of the operating
companies to view by
Category
Fiscal year
Facility
Company
• Upon uncovering true spend number, a number of strategic
sourcing opportunities arose
• All legacy contracts have been loaded
• Standard and approved contract templates are available for
use
• A number of category teams have already successfully used
Emptoris for their sourcing needs
• Prescribes strategic sourcing guidelines that will help to
maximize and sustain benefits from sourcing and procurement
efforts to create a competitive advantage
• Standard SPM have been formalized and utilized to track key
supplier metrics
14. Best In Class Procurements Tools
• Defined policies and control processes to align sourcing
behaviors across the business with established best practices
to manage savings
• Introduction of the application, Emptoris, which allows the
organization to see the total spend for the first time, and
expands the ability to analyze spend information. It was
customized for the company based on our specific business
requirements.
• Spend Analyzer: View spend by category (e.g. glass),
specific winery, date, business unit, account, etc.
• eSourcing: Create and manage various RFXs (request for
information, request for proposal, request for quotation)
• Contract Management: Store contracts in a central library,
version control and keyword search
• Supplier Performance: Track a supplier's overall
performance through scorecards utilizing key performance
indicators
15. Future Plan
Where does this client potentially see taking Emptoris?
The continued
build of a
supplier portal
16. Lessons Learned
Providing an understanding of who the client is and
what they wish to accomplish is key.
Be sure to repeat the objectives over again to
ensure all parties are aware of what needs to be
done. Then, follow up with an e-mail and a phone
call. Probe your audience for questions.
Different parties understand information differently.
Find the medium that works best for all parties.
From a technical perspective, integration points are
constantly changing. Keep the group well versed
on the implications of these changes and try to pre
determine any ramifications they could have on the
client.
You can never over communicate.
Cultures matter.
Change management.
17. Process
Strategy Technology
Business
Objectives
Vision
Solution
Strategy
Implementation
Strategy
Technology
Strategy
ROI Analysis
ECM
ERP
CRM
E-Procurement
EAI
Data
Warehouse
Legacy System
Qualifications
People
People
Training
Evaluations
Training
Knowledge Transfer
Roles Design &
Knowledge Transfer
Roles Design &
Definition
Definition
Communications
Internal
Collaboration
External
Development,
Reporting &
Analysis, KPIs
Communications
Classification Collaboration
Risk
Assessment
Source-to-Contract
Solution Implementation
Strategy, People, Process, Technology
18. Our Enterprise Contract & Strategic Supplier
Lifecycle (SSLM) Management Practice
Sample Clients ECLM/SSLM Services Perficient’s Value Proposition
Current State Operations
Assessment & “Blueprinting’
ROI Business Case Development
and Implementation Planning
Contract Inventorying and
Template Rationalization
Requirements Definition and
Software Selection
ECLM/SSLM Systems Design &
Implementation
Project Management
Configuration/Customization
Integration
Data Migration
Testing
Training & Change Management
• Dedicated practice with approx. dozen practitioners
and experience with a vast number of customers and
industries.
• Understand “nuances” of the IBM Emptoris solution
minimizing “surprises”/risks
• Relationships with IBM Emptoris senior mgmt., with
influence on product roadmap strategy
• Library of solution accelerators for planning and
implementation (e.g., future state blueprints,
requirements, software selection, roadmaps)
• Only IBM Emptoris partner with certified experience in
Emptoris installations, both functional and technical
(customized solutions) implementations,
upgrades/migrations, etc.
• A single partner to build a program (strategy –
requirements – design – implementation – support)
Sample Case Studies/Whitepapers
• Best Practices for Authoring a Contract through an Enterprise Contract Management System
• Supplier Lifecycle Management – Supplier 360
• Creating the Business Case for Sourcing and its Impact on Contract Management
19. Enterprise Contract and Strategic Supplier Lifecycle
Management Services and Capabilities
• Current State
Assessment
• Future State
Modeling and
Design, Roadmap
Development
• Vendor Analysis
and Selection
• Implementation
Planning
• ROI and Business
• Change
Management
• Training
• Requirements and
Design
• Workflow
Development
• Template
Rationalization
• Program and Project
Management
• Supplier
Classification
• Supplier Qualification
• Supplier
Development
• Supplier Registration
• Score Carding
• Configuration and
Customization
• Testing
• Data Extraction
and Migration
• Interface
Development
• Report
Development
• Upgrades
• Installation
• Wizard
Development
20. As a reminder, please submit your
questions in the chat box.
We will get to as many as possible.
22. Thank you for your participation today.
Please fill out the survey at the close of this session.
23. Daily unique content
about content
management, user
experience, portals
and other enterprise
information technology
solutions across a
variety of industries.
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For more information contact:
Katie.Hull@Perficient.com