E-Procurement

E-PE-Procurement
by : Vincent Leroux Lefebvre
PM MODULE

E-PE-Procurement
E
D
I
E-Sourcing
E-Procurement
ERP
SaaS
Cloud
R.F.I
R.F.P
R.F.Q
R.F.x
Best of Breed
KPI
SLA
E-Req.
E-Cat
P2P
Cart
ReportingSRM
Spend Analysis
E-Invoice
Purchase to pay
Contract Management
CategoryManagement
E-Auction
Suppliers portals
CSR
One World, around corporate words
Workflow
E-Tendering
B2B
Design Cost
Produce by : V.L.L for AUDENCIA PM MODULE

E-Procurement History
 Starting at the beginning of 80’s, EDI exchanges,
recognized as a general standard, started to
invade relationship between Suppliers and Clients.
 In 90’s the first AS 400 systems been introduced
with workflows in order to provide information
exchanges
 In 2001 experts and providers considered an
evolution on inter enterprise relations and
introduce B2B concept.
E-PE-Procurement

E-Procurement History
 In the same time, groups, holding, and central
started to organize Procurement function to allow
cost reduction and efficiency. TCO (Total Cost of
Ownership) is raised as a standard.
 For Companies, cost plays a huge impact on profit
margin and start to take in account to be
competitive
 Activities must be run and report efficiently to
board in order to reduce T2M (Time to Market).
E-PE-Procurement

Procurement Vision
 Drive by efficiency, the first families touch were
automotive industries for direct activities. The past
schema was observed as “procurement” to “E-
Procurement” new scheme.
 Changing structure from MTS (Make To sale) to MTO
(Make To Order) obliged to have an high reactivity.
 In the same time, Supplier Relationship was reduced
to minimum actors number in order to erase "special
deals"
E-PE-Procurement

Delivery
Past Procurement Vision
E-PE-Procurement
Accounting Dept./ Cost Control Dept.
Procurement Dept.
Supplier
Needs
Quotation or ContractInternal
Client
invoice
P.R
P.O

Past Procurement Vision
 No needs anticipating and mutualizing
 No control on Purchasing Activities and Spend
 No Best Practices sharing
 Little or any negotiation
 Lack of communication
E-PE-Procurement

Delivery
E-Procurement Vision
E-PE-Procurement
Accounting Dept./ Cost Control Dept.
Procurement Dept.
Supplier
Internal
Client
invoice
CATALOGUENeeds P.R / P.O
RFx
Quotation or Contract
Needs Request
Contract

E-PE-Procurement
 Focus the use of the purchasing tool on a main
CATALOGUE including specific and unused
demand with user friendly application
 Facilitate approvals and workflows based upon
B.U activities and mutualized with all needs.
 Ensure a collaborative approach to B.U

 P.R are P.O
 Order are issued on electronic way from different
catalogues
 Workflow is placed at any level (B.U, Line, C.C,…)
 Easy approval system
 Reduce purchasing risk overlap on commodities
and stocks
E-PE-Procurement
Mainstream vision for Business as POWER

 No more purchase without approval and order
 Early knowledge for Project and activities
 Auto billing allowing a reduction in accounting
activities
 Traceable activity by families, suppliers, products,…
E-PE-Procurement
Mainstream vision for Purchase as NEAT

 Improvement of purchasing condition
 Productivity gains
 Overall improvement consumption
E-PE-Procurement
Mainstream vision for Finance as IPO

E-PE-Procurement
Full
coverage
Information processing
User’s friendly
Documents flow
A full workflow
Procurement
segmentation
Efficient Reporting
Before any enrolment for the Full coverage: The five element's strategy

E-procurement Requirements
 Define a approval workflow where :
 Each actors (Requester, Controller, Approvers)
are assigned and fixed with limits,
 Each roles and functions are defined,
 decision-makers hierarchy is in correspondence
with the purchasing strategy.
 Hierarchy is fixed
A full workflow
E-PE-Procurement

 Procurement segmentation is :
 Each Purchaser is assigned to a Portfolio,
 Each article are defined,
 Each suppliers are linked to a segment,
 Purchasing hierarchy is fixed
Procurement
segmentation
E-PE-Procurement

 IP user’s friendly :
 The opportunity for each employee authorized
to formalize his own requisition,
 All request are archived,
 Open or restricted Catalogues are online and
managed with segments,
 A overall overview and tracking for users
Information processing
User’s friendly
E-PE-Procurement

 Documents flow :
 All documents are embedded in solution,
 Legal & GPC are linked with suppliers and
segments,
 Assessment are directly issued
Documents flow
E-PE-Procurement

 Efficient Reporting :
 Integration of e-procurement tool to the
enterprise information system,
 KPI are integrated in tool,
 Dashboard regularly communicated,
 Cross goal from Purchasing, CC, Consumption
Efficient Reporting
E-PE-Procurement

A full coverage means a clear view of process :
 Macro process,
 Process,
 Sub process,
 Activities
E-PE-Procurement
Process MappingCall :

E-PE-Procurement
Process Mapping example for Direct & Indirect

E-procurement Market’s
E-Procurement
ERP
SaaS
Cloud
Best of Breed
E-Req.
E-Cat
P2P
SRM
E-Invoice
Contract Management
E-Auction
Suppliers portals
E-Tendering
E-PE-Procurement
Outsource specialist

The E-Procurement market is addressed by
various players of the software editors :
 Best of breed,
 ERP,
 Outsource Specialist,
E-PE-Procurement

E-PE-Procurement
eProcurement
Suppliernetwork
EIPP
eSourcing
Company Origin Cover SaaS On Premise Users Clients
Baseware, Finlande
France,
Europe,
US
X X X X X 1 000 000
IKEA
Grosfillex
Heineken
Renault Retail
Proactis UK
US,
UK,
Europe
X X X X X 2 000 000
CBRE
King Fischer
FTSE
Europecar
I Valua, France
France,
US
X X X X X
ARCELOR
MICHELIN
SPIR
ORANGE
B-pack, France
France,
US
X X X X X 30 000
AON
Webhelp
BUT
International
Bravo solution Italie
Europe,
Asia,
US
X X X X 50 000
SODEXSO
AUTOGRILL
AIR LIQUIDE
MONSTER
Hubwoo France
Europe,
US
X Non X X X X
SHELL
HONEYWELL
MICROSOFT
Lawson's US Worldwide X X X X
Esize Nthl X Non X X X X
CAP GEMINI
DOW
COUPA US US X Non X X
ADIDAS
BNP PARIBAS
Lawson's US Worldwide X X X X
Ariba, USA Worldwide X Non X X X X 5 000 000
Purchasingnet US X Non X X X
Verian US US X Non X X
SciQuest US
US,
UK
X Non X X
BP
DUPONT
Leaders
Performers
* source Forester
Best of Breed

E-PE-Procurement
Spend
analysis
K.P.I
Reports
Supplier
Ref
P.R
E
Bidding
R.Fx
Risk
assess.t
Contract
Library
Supplier
Ranking
E
Bidding
Process &
Workflow
ERP
E-Cat
Suppliers portals
ERP ERP
Best of Breed

E-PE-Procurement
e-Procurement
Suppliernetwork
EIPP
e-Sourcing
e-Archiving
Company Origin Cover SaaS Premise Users Clients
SAP
SRM7
Germany Worldwide X X X X X X X 2 000 000
Tarkett,
Saint Gobain
ORACLE
PeopleSoft
US Worldwide X X X X X X 1 500 000
ESILOR
SNCF
Société Generale
Microsoft
Dynamics
US Worldwide X X X X X X
Sage UK
Europe,
US, X X X
HERAKLES France France, X X X 5 000
Comarch France
Europe,
US
X X X X X 3 000
Printemps
Company Origin Cover SaaS Premise Users Clients
IBM
BPO services
US Worldwide X X X X X X
Turner & Townsend US Worldwide X X X X X X
Capgemini France Worldwide X X X X X X Fazer
ERP
Outsource specialist

E-PE-Procurement
ERP
Infrastructure System
Referential
Documents
Catalogues
Suppliers
Finance HR PLM SCMCRM P.M
Spent Analysis Saving track Activities Dashboard
Purchasing Performance MonitoringB.I
RFI RFP/RFQ
Timesheet
management
E-bidding
Request For x (RFI/ RFP/RFQ)Sourcing
Budget P.R P.U
Good
receipt
Invoice
Procurement FlowProcurement
Supplier
Portal
Supplier
Intelligence
Risk
Management
Supplier
Valuation
Issues
Supplier relationship ManagementSRM
HR PLM SCMCRMFinance

Why E-procurement for indirect and non stock items
 No purchasing tool in place
 No approval procedures before something is purchased
 Improve invoice control
 This project should do the following:
 Implement SAP SRM and SAP ERP purchasing tools
 Implement an common, standardized approval procedure for purchase
requests (shopping carts) in TWE division
The smell, & the taste of SAP : not look like SAP
E-procurement Case study : Tarkett (ERP)
E-PE-Procurement

E-PE-Procurement
COMMITMENTS
 All purchasing process for services into sap;
 Provides interface with e-procurement system
 Better requester / approval acessability of quotation and
purchase order;
 Enlargement to all locations with multi lingual and multimodal
 Administration of import process or interface with the current
domestic program (microsoft access);
 Easier transfers of sap data to excel reports

E-PE-Procurement

E-PE-Procurement
code Spend area code Spend family code Sourcing category Total
02 Total COGS 3.786.974
03 Indirect 02 Total Technical (included C433) 21.964.561
03 Indirect 03 Total IT & Telecoms 5.897.997
03 Indirect 05 Total Facilities management 8.273.828
03 Indirect 06 Total Marketing 11.722.334
03 Indirect 07 Total Intellectual services 7.171.012
03 Indirect 08 Total Human resource 1.920.123
03 Total INDIRECT 56.949.854
Total 60.736.828
Location Legal entity
FR01 – Nanterre C433 Tarkett France
FR04 – Templemars C433 Tarkett France
FR01 – Nanterre C438 Fieldturf Tarkett
DE01 – Frankenthal C214 Tarkett Holding GmbH
NL01 – Breda C214 Tarkett Holding GmbH
AT01 – Vienna C214 Tarkett Holding GmbH
A multi spend categories and
locations from plants to offices.

E-PE-Procurement
 Diffrent purchasing process in order to respect local practice
Sedan Flow
Plant
Nanterre – Frankenthal Flow
Offices
SRM
Brazil office & plant
SAP

E-PE-Procurement
 A single portal with User inditification,
 A three step process,
 An activity overview,
 A central place for catalogues

E-PE-Procurement
 A direct acces to supplier
catalogue
 A pick up on shopping cart

E-PE-Procurement
 A flow for approval based on Supplier data

E-PE-Procurement
E-procurement Case study : Tarkett
 Approval workflow information through e-mail and/or application
mail
Application portal

E-PE-Procurement
 All information are available on Approval Module

E-PE-Procurement
 When it’s approve information are in both system
SRM Portal
SAP transaction

E-PE-Procurement
Conclusion
 Today more than 2 000 users and used in 22 different countries
 More than 280 M€ in the system
 Indirect spend reduction from 5 to 7%
 Forecast are linked with expenditures and budget;
 Reports are used every week

E-PE-Procurement
E-procurement Case study : Sage (BoB)

E-PE-Procurement
Why a P2P with E-procurement
 Develop 4 years ago by internal without Purchasing expert
support,
 Sage ERP X3 has been turn to budget control tool with a workflow,
 Out « system » purchase are more than 20%,
 No Purchasing Dept. Validation ,
 No families spent and product categories in place
A tool not able to fulfil its function
As all software editors Sage do not buy materials only indirect

E-PE-Procurement
Two choices :
 Rebuilt Purchasing application ,
OR
 Find on market a Best of Breed (BoB) easily pluggable
on Sage ERP X3

E-PE-Procurement
 A multi breed offer with SaaS and On premise solution
FUNCTIONAL AREA RESPONSE
Purchasing Performance
Spend Analysis Bravosolution
KPI Bravosolution
Dashboard Bravosolution
Procurement /Sourcing
P.R / Need request Bravosol / Basware PM
Suppliers database referencing Basware PM
Catalogue Basware PM
RFX (RFI, RFP, RFQ, RFx, …) Bravosolution
Contract Legal room Bravosolution
Suppliers performance
Supplier qualification process Bravosolution
Performance Assessment Bravosolution
Risk Assessment & Issues Bravosolution
E-Invoicing
Invoicing Process Basware IA
Capturing Invoices Readsoft
Others solutions have been evaluated (b-pack, Ivalua)

E-PE-Procurement
P.R or Need requests are maked and valid in Bravos/ Basware PM
through Catalogue

E-PE-Procurement
When it’s approved pruchase will sumit in RFx module from Baseware
to Bravosolution and analyse in multi axis

E-PE-Procurement
Analyse in multi axis and send the order from Baseware as G.R
(good Receipt)

Suppliers
Workflow
Purchase
Order
E-Procurement
E-Procurement : What we can sum up from this
E-PE-Procurement

Project Management Culture
Cross Functional
Approach
Technical
Functional
Services
Access to resources
Strategic planning and
resource allocation
well define.
Communication
Communication Plan
with all parties
involvement
E-Procurement : Success Factor’s
E-PE-Procurement

Lexical
 M.T.S : Make To Stock
 M.T.O : Make To Order
 P.R : Purchasing Request
 P.O : Purchasing Order
 L.V.P : Low Value Purchases
 P2P : Procure to Pay
 K.P.I : Key Performance Indicator
E-PE-Procurement
 R.F.I : Request For Information
 R.F.P : Request For Price
 R.F.Q: Request For Quotation
 R.Fx : R.F.I / R.F.P / R.F.Q
 B.U : Business Unit
 C.C : Cost Center
 G.P.C : General Purchasing Condition
 G.R : Good Receipt

E-Procurement

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