The document discusses strategies for procurement and payables (P2P) success in mid-sized companies. It recommends taking a holistic approach to P2P, defining clear goals and metrics, engaging stakeholders early, prioritizing collaboration with suppliers, gaining executive sponsorship, and developing a comprehensive P2P blueprint. Adopting these strategies can help mid-market companies overcome common P2P challenges and achieve greater efficiency, compliance, and cost savings.

1. DESIGN THINKING: TOP
STRATEGIES FOR P2P SUCCESS
IN THE MID-MARKET
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2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
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3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
TODAY’S PRESENTERS
Robert Cohen
Research Director
Ardent Partners
Richard Waugh
VP of Corporate Development
Zycus
Andrew Bartolini
Founder & Chief Research Officer,
Ardent Partners

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ABOUT ZYCUS – COMPREHENSIVE SOURCE-TO-PAY SUITE
Zycus is among the only 3 Leaders in the Gartner’s
2017 MQ for Strategic Sourcing Application Suites

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ARDENT PARTNERS: RESEARCH WITH RESULTS

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Check out our webinar at http://zyc.us/2IrSVnu

7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
CPO RISING & PAYABLES PLACE
www.cporising.com
www.payablesplace.com

8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Visit events.cporising.com today, and join us in Boston1
THE CPO RISING SUMMIT 2018

9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
AGENDA
 Introduction
 The State of P2P in 2018
 The Top Strategies for P2P Success in the Mid-Market
 Q & A

10. THE STATE OF P2P IN 2018

11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
PROCUREMENT’S TOP PRIORITIES

12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
PROCUREMENT’S TOP CHALLENGES

13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
ELEMENTS OF PROCUREMENT MASTERY

14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
AP’S TOP PRIORITIES

15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
AREAS CURRENTLY MANAGED OR SUPPORTED BY AP

16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
THE ESSENTIAL ELEMENTS FOR AP’S FUTURE SUCCESS

17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
P2P TECHNOLOGY ADOPTION

18. 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 http://zyc.us/2IrSVnu

19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
CORE AP CAPABILITIES, BEST-IN-CLASS VS. ALL OTHERS

20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
P2P AUTOMATION, BEST-IN-CLASS VS. ALL OTHERS

21. TOP STRATEGIES FOR P2P SUCCESS IN
THE MID-MARKET

22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
DEFINING THE MID-MARKET

23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
CLASSIC CHALLENGES IN MID-MARKET P2P OPERATIONS

24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Mid-Market Procurement Challenges
 Not enough FTEs
 Existing FTEs Consumed by Tactical
 Rampant Maverick Spend
 Limited Spend and Process Visibility
 Antiquated Systems
 Best-of-Breed Technologies Out of Reach
 Limited (Or No) IT Support
 Aggressive Savings Goals
 Rapid Proliferation of Supply Base 62% Tactical vs. 38% Strategic
X-Industry Average.

25. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
NEW OPPORTUNITIES FOR MID-MARKET P2P TEAMS
The Cloud Usability

26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
NEW OPPORTUNITIES FOR MID-MARKET P2P TEAMS
Competitive Pricing ePayments

27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
1. THINK HOLISTICALLY
COMPREHENSIVE SCOPE: FULL PROCURE-TO-PAY

28. 28© 2017 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pa
Zycus Genesys – Critical First Step Towards Digitization
Supplier
Setup/
Onboarding
Digitized
Contracts
Process
Invoices
Place
Purchase
Orders
Manage
Catalogs &
Punchouts
Create
Requisitions
Manage
Approvals
SUPPLIER
NETWORK
Supplier Information Management
• Onboard, Manage, Track & Transact with Suppliers
Contract Repository
• Aggregate Key Agreements/Integrate to P2P Process
Procure-to-Pay
• Automated Approval Workflow Process
Management
• Paperless Requisition, PO and Invoice Processing
• Hosted and Punchout Catalog Management
• “Quick Source” Req-to-Quote Bid Process
• ERP Integration for Payments/Posting to G/L

29. 29© 2017 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pa
Zycus Genesys Value Proposition
Zycus Genesys A turnkey solution for the first step of Procurement Automation and Transformation
Best-in-Class
Procurement Solution
Fast-Track
implementation
(8-12 weeks)
Easy to Buy and Own
 Affordable, Fixed
Annual Cost Smooths
Investment
 Strong ROI
Justification and Time-
to-Value
 Recognized Leader by
Gartner & Forrester
 Intuitive, “Guided
Buying” UX for Rapid
Adoption
 Leverage “Out-of-the-Box”
Best Practices & Expert
Resources
 Cloud Delivery, Supplier On-
Boarding Services Minimize
IT Support
World-Class Transactional Procurement in <90 Days @ ~1 FTE C&B Cost

30. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
2. DEFINE GOALS, OBJECTIVES, AND SUCCESS

31. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Prioritize Goals and Objectives, Define Success Metrics
Reduce
Maverick
Spending
Enforce
Budget
Control
Drive User/
Supplier
Adoption
Gain Real-
Time,
Granular
Spend
Visibility
Achieve
Process
Efficiency
Ensure
Process &
Regulatory
Compliance
Maximize
Early Pay
Discounts or
DPO

32. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
3. ENGAGE USERS EARLY IN THE PROCESS

33. 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 http://zyc.us/2IrSVnu

34. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Focus on User Experience: Guided Buying
GUIDED BUYING
AI suggests relevant categories based on
user’s natural language search term and
organizational buying patterns
Steer users to approved suppliers and
Buy/Pay channel for the category
Invoke category-specific workflows, map to
GL account and default bill to/ship to based
on user profile

35. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
4. COLLABORATION IS KING: “GIVE TO GET”

36. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
 No single source of truth, ad-hoc supplier on-boarding process and incomplete supplier data
 Paper-based purchase-to-pay and high “No PO” non-compliant spend
 No standard approval workflows, extensive manual re-work to process orders, invoices in ERP
 Empowered end-user adoption, migrating from centralized to de-centralized purchasing and strengthening compliance with a “No PO – No
Pay” policy
 Reduced Vendor Management FTE support by 87% with self-service supplier portal for registration, on-boarding, as well as invoice status
tracking
 Automated 3-way Invoice Matching to save 40% of time spent by AP on invoice processing and exception management
 Slashed Req-to-PO cycle from 7 days to a few hours and shaved 1/3 off invoice approval cycle times, enabling 1% savings for prompt pay
discounts on one-third of total spend
 Netted $100K savings by eliminating duplicate payments alone
 Deployed integrated P2P and Supplier Management Portal
 Communicated mandatory portal program participation along with webinar outreach
 Initial on-boarding of 500 suppliers – focus on 20% that account for 80% of volume
 Enabled for e-invoicing and self-service status checks – 20% via cXML/80% via portal
 “Go Live” ahead of schedule with end-to-end P2P process workflows configuration, ERP integration, 40 punch-out/hosted catalogs, and
library of configured, “Guided” e-forms
20%
80%
Case Study: Private Insurer Realizes Benefits for both AP & Procurement

37. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
5. SEEK CFO SPONSORSHIP

38. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Business Case for Achieving Best-in-Class P2P Performance
Early Payment
Discount
PO & Invoice
Processing
Contract Compliance Total Savings
$108,000
$254,400
$2,320,000
$2,682,400
Savings Impact:
2-3% per $100M Spend
3
15
$17.37
$4.80
1
3
$4.58
$2.27
Req-to-Order (Days) Order-to-Pay (Days) PO Processing Cost
($)
Invoice Processing
Cost ($)
Efficiency Impact - Processing Cost & Cycle Time
Current Estimate
Post Genesys
Business Metrics - Annual Spend & Transaction
Volume
Total Adressable Spend $100,000,00
0
Potential Maverick Spend (%) 60%
Spend Compliant to Contract 40% Targeted Spend Compliant to Contract (%) 69%
Targeted Savings from On-Contract Spend
(%)
8% Req-to-Order Cycle Time (Days) 3
Annual Requisition Volume 7,500 Invoice Processing Cycle Time (Days) 15
Annual Purchase Order Volume 10,000 Per PO Processing Cost $17.37
Annual Invoice Volume 50,000 Per Invoice Processing Cost $4.80
Current Early Pay Discounts (% of Spend) 0.002% Targted Early Pay Discounts (% of Spend) 0.11%
Business Value - Savings & Process Improvement
Component
Current
Estimate
Genesys
Impact
New Value
with Genesys
Estimated
Savings
Savings from Contract
Compliance ($)
40% 73% 69% $2,320,000
PO Processing Cost ($) $17.37 74% $4.58 $127,900
Invoice Processing Cost ($) $4.80 53% $2.27 $126,500
Early Pay Discount Savings ($) $2,000 5400% $110,000 $108,000
Total Savings $2,682,400
Cycle Time Improvement:
Requisition-to-Order Cycle
(Days)
3 67% 1*
Invoice Processing Cycle (Days) 15 80% 3*
* Note: Assumes Best-in-Class Cycle Time Achievement with P2P of 1 Day Order and 3 Days Invoice Process Cycle Times

39. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
6. DESIGN FOR SUCCESS (ARDENT’S P2P BLUEPRINT)
1. Process efficiency and savings goals
2. System capabilities
3. Integration requirement
4. Visibility and reporting capabilities
5. Business user engagement, requirements, &
adoption
6. Functional user engagement, requirements, &
adoption
7. Supplier enablement
8. Requisition to PO to Invoice to Payment
9. Payment & cash management strategies
10.Process, contract, and regulatory compliance

40. SUMMARY

41. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
SUMMARY
In 2018, there is no excuse for a P2P operation to be
siloed and operating around the fringes of the
business. However, it is incumbent for Procurement
and AP executives take the lead role in driving their
transformation.

42. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Summary
1. Think holistically
2. Set clear goals and objectives
3. Engage stakeholders (early and
often)
4. Collaboration is king - “Give, to
get”
5. Seek CFOSponsorship
6. Develop a P2P blueprint

43. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
&

44. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Ardent Partners Speaker Contact Information
For more information please visit:
www.ardentpartners.com & www.payablesplace.com
Andrew Bartolini
Chief Research Officer
Ardent Partners
abartolini@ardentpartners.com
@andrewbartolini
Bob Cohen
Research Director
Ardent Partners
rcohen@ardentpartners.com
@bobcohen_ardent

45. +1 866 563 9219
info@zycus.com
www.zycus.com