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Gain Faster Closure, Lower Risk and Better Results with IBM Emptoris


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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

Published in: Technology
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Gain Faster Closure, Lower Risk and Better Results with IBM Emptoris

  1. 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
  2. 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. 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. 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
  5. 5. Sarah Radka, Sr. Business Consultant, Perficient
  6. 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. 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. 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. 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. 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. 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. 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. 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. 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. 15. Future Plan Where does this client potentially see taking Emptoris? The continued build of a supplier portal
  16. 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. 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. 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. 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. 20. As a reminder, please submit your questions in the chat box. We will get to as many as possible.
  21. 21. Questions?
  22. 22. Thank you for your participation today. Please fill out the survey at the close of this session.
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