Love Your Sourcing Strategy by Letting it Go Access this presentation where our expert speakers will guide you on how you can responsibly put sourcing into the hands of distributed buyers and empower them to select their suppliers and scale procurement’s impact. Learn to: 1. To identify the most common fears procurement experiences in the wake of decentralized buying 2. To understand the root cause of those fears so they can be overcome 3. To articulate the advantages (for procurement and the enterprise) of effectively managed distributed buying

1. Access an on-demand webinar
on this topic here: https://zyc.us/2FaQMK3
Love Your Sourcing
Strategy by Letting it Go

2. Love Your Sourcing Strategy by
Letting it Go
Kelly Barner and Richard Waugh

3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Today’s Presenters
Kelly Barner
Buyers Meeting Point / Palambridge
Richard Waugh
Zycus, VP Corporate Development

4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
The Psychology of Fear

5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Fear as a Motivator
• Hormesis: a phenomenon by
which something that could
significantly impair or even
kill you in high doses can
make you stronger in low
doses
• Better advance planning
• Willingness to consider more
innovative (if untried) solutions
• More perceptive to signs of
trouble
• Actively open to soliciting and
accepting offers of help
• Amygdala: where fear lives in
the human brain, constantly
on guard to ensure our
survival
• Fear is the most primitive and
powerful human emotion
• Inability to prioritize efforts
• Defensive posturing – unwilling
to consider new ideas or make
changes
• Distrust of others’ help and
suggestions

6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Advantages of Decentralized Procurement

7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Breaking Our Fears Apart
 Common types of procurement fear
• Loss of savings
• Loss of standardization
• Loss of control
• Loss of procurement’s role
 Source of the fear in procurement’s ‘evolution’
 Positive and negative responses to the fear
 Advantage to overcoming the fear
 Real life examples

8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Fear: Loss of Savings
 Source: procurement’s primary mandate, “food and shelter”
 Positive response: ensure that distributed buyers understand why
they need to save and receive quantifiable reinforcement
 Negative response: savings at the
expense of all other benefits,
including innovation and
competitive advantage
 Advantage to overcoming this fear:
improved relationships and greater
value creation

9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Sourcing FTEs Focused on Higher Spend/Long Cycle Categories

10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Half of Sourcing Cycle Time Spent on Evaluation and Selection

11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Quantifying Benefits of Sourcing Process Automation
• Reduce Overall Sourcing Cycle Time 30%
• Standardize Process for More Consistent, Repeatable Results
• Increase Process Transparency, Data Accuracy

12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Best Practice: Sourcing Portfolio Management – Concierge to Self- Service
• Focus Sourcing FTEs
• Collaborate Globally
• Standardize Process
• Self-Service Sourcing
• Ensure Compliance
• Standardize Process

13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Phase 1
Identify Opportunities
Phase 2
Develop Category
Profile & Strategy
Phase 3
Prequalify Suppliers &
Conduct RFX
Phase 4
Develop & Negotiate
Agreement
Phase 5
Implement Agreement
Standardizing the Sourcing Process for Strategic Spend

14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Standardizing End-User, Self-Service “Quick Source” for Tail Spend
Tactical, Spot Buys – 3 Bids & Buy
Create and Invite New Suppliers on the Fly
Create RFQ Inquiry on Single Screen

15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Fear: Loss of Standardization
 Source: traditional reliance upon
repeated processes flows
 Positive response: ensures critical
steps are not skipped
 Negative response: lack of all
flexibility, fearing a “slippery slope”
 Advantage to overcoming this fear:
new approaches to managing
spend, building supplier
partnerships, and innovating

16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Best Practice: AI-Driven Source-to-Pay Yields Better Decisions
Contract Management
Spend
Analysis
Supplier
Management
eSourcing
Procure-to-Pay
Financial
Savings
Management
Spend Mining
Spend Monitoring Guided Buying“SmartAssist” Suggestions
Supplier Risk Monitoring

17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Fear: Loss of Control
 Source: positioning procurement as responsible for governance and
compliance
 Positive response: articulate the freedoms that are beneficial to the
enterprise v. those that are potentially damaging/risky
 Negative response: Becoming more controlling, especially when a
natural ‘easing’ has started to take place
 Advantage to overcoming this fear: remove procurement from
‘command & control’ role

18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Best Practice: Striking Proper Balance Between Control/Efficiency
Source: Hackett Group P2P Performance Study 2017
For Some Purchases a 2-
Way – Not the Traditional
3-Way Match is Optimal.
How Can Approval
Workflows and Buy/Pay
Processes be Optimized
Based On:
• Purchase Type
(Opex/Capex, Project)
• Category
• $ Amount
• BU/Geo/Dept.

19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
How It Works: Configurable Workflows
Drag and Drop
creation of category-
specific workflows to
govern buy/pay
process
Reduced cycle time
due to
comprehensive,
automated approval
workflow
Real-time,
graphical view of
approval status with
automated alerts
and reminders

20. 20© 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
Top Performers are more
than 3X more likely to be
“very effective” in driving
requisitioners to the
preferred buy/pay channel –
what best practices account
for the disparity?
Best Practice: Make it Easy for End-Users to Follow the Process
Source: Hackett Group P2P Performance Study 2017

21. 21© 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
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
How It Works: Guided Buying

22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Fear: Loss of Procurement’s Role
 Source: increased automation
 Positive response: take as an opportunity
to re-create procurement’s role
 Negative response: territorial response,
hoarding information, blocking access to
suppliers
 Advantage to overcoming this fear:
opening the capacity to take on new
roles, responsibilities, and project types

23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Best Practice: Create Customer-Centric Procurement Role

24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
How it Works: Request Management Gives Users a Portal to Procurement
Reject inappropriate requests
eSourcing
Contract
Management
Project/
Savings
Management
Supplier
Management/
P2P
ProcurementApproverRequester
Sends
requests
Approves
requests
Manages and
Processes
Requests
Create Contract
Create Sourcing Event
Onboard a Supplier
Pre-purchase Request
Supplier Performance improvement
PO Amendment
Contract Amendment
Task Assignment
Initiating a Project
Price or terms change request by
Supplier
Configurable Flexiform
Configurable Approval Workflow
Conditional Logic / Rules
Calculated Fields
Delegation
Comprehensive Reporting
Process Use Cases
Features

25. Need more insights?
Access an on-demand webinar
on this topic here: https://zyc.us/2FaQMK3

26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
 Automated request management and tracking triages procurement’s
work queue – empowers and engages end-users
 Sophisticated, conditional approval workflows (>175 conditions, 4-5
approvals per form)
 Conditional logic integrates IT security reviews with on-boarding
requests
 Supports multiple request use cases, e.g. negotiate contract, run
sourcing project, on-board supplier, capital appropriation project
approval
 Seamless process flow from request to execution – e.g. approved
request initiates activity in target module
 Also supports non-procurement (Hotel, Facilities, HR, IT) requests
Extending
Beyond
Procurement
Users
Integrating
Business
Processes
Customer-
Centric
iRequest - Porsche
Customer-Centric Case Study: Request Management

27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
 How can Procurement more
effectively measure and communicate
performance and value delivered to
the business?
 In particular, how can Procurement
align more effectively with Finance to
ensure value contributions are
acknowledged?
 Which processes/platforms can
enable Procurement to create
credibility with the C-Suite and sign-
off from the CFO on value delivered?
Source: Key Issues Study, The Hackett Group, 2018
Best Practice: Re-define Procurement Role by Measuring Value

28. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Challenges
• Most organizations tracking with spreadsheets/home-
grown tools
• Existing tools lack Finance collaboration and approval
workflow
• No standard definition of savings calculation and allocation
methods exists, and lifecycle tracking visibility is missing
Solution
Align:
• Import baseline spend from
Spend Analytics
• Establish Finance-approved
spend baseline and savings
calculation formulae on
common, enterprise
platform
Validate:
• Employ workflow to obtain
validation from stakeholders
• Map savings projects to
stakeholders and approvers
Analyze:
• Segregate savings by type,
e.g. cost reduction vs.
avoidance, and accounting
period
• Identify savings by
project/sourcing strategy
• Map savings impact to P&L,
Balance Sheet, Cash Flow
Source: Gartner/Rutgers Survey
How it Works: Financial Savings Management Challenges/Solutions

29. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Case Study: Financial Savings Management
600+
Savings Projects Initiated
$40-50M
Annual Incremental Savings Realized To Date
000’s of Users
40 Power Users Create Savings Projects and Collaborate with
000’s of Stakeholders (600 Financial Analysts Alone)
25% Productivity Gain
Category Managers Save 2 Hours per Day from Data Gathering
Tasks
Single Version of Savings Truth
 Standardized calculation/allocation formulae
 Full audit trail and version control
 Secure user access by BU/Div/Dept/Cat
 Fx conversion and multi-lingual UI
 Flexible/multiple savings types/definitions
 Approval workflow sign-off by budget owner and Finance
 Dashboard analytics and Financial Statement impact reporting:
P&L/Budget/Balance Sheet,/Cash Flow
Savings Tracking for Non-Procurement
Platform applied to non-procurement savings projects (e.g. Reorg, ERP
Consolidation, M&A), Budgeting/S&OP, Cash Flow Forecasting
iSave - Qualcomm

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

31. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
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32. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Speaker Contact Information
Kelly Barner
Buyers Meeting Point / Palambridge
Twitter: @BuyersMeetPoint
Email: kelly@buyersmeetingpoint.com
Richard Waugh
Zycus, VP Corporate Development
Twitter: @Zycus
Email: richard.waugh@zycus.com

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