The document discusses opportunities for improving spend and contract management through various strategies and tools. It identifies challenges with traditional approaches and highlights best practices such as electronic transactions, visibility into contracts and suppliers, and improved spend data capture. Specific areas covered include enterprise spend analysis, contract lifecycle management, data management, electronic invoice processing, and deployment considerations. The key is taking a holistic approach through continuous improvement, stakeholder engagement, and driving initiatives to reduce expenses and deliver value.

1. Spend & Contract Management Bottom Line Improvements & Savings Anand Subramaniam

5. Enterprise Spend Management / Analysis

8. Current Spend Analysis Challenges.. Spend Analysis No consolidation of buying power to negotiate favourable contract prices / terms Lack standard approach, no internal taxonomies and / or ineffective reporting on classification / categorisation of products and / or services Price vary among the same item Lack information on the spend analysis across the firm for budgets, forecasts or in managing suppliers Lack key cost drivers to negotiate low cost / prices from contracts Commodities with the same functions have multiple specs Lack customisable Executive Dashboards Lack tools to cleanse, normalise, categorise spend data from a variety of sources No bundling of high demand spend with low demand items under long term agreement

10. Contract Management

14. Contract Management Lifecycle Initiate Contracts Contract Drafting Manage RFx Negotiation Terms / Conditions Library – clauses / templates Analyse Contracts Evaluate Corporate spending Contract Admin. / Compliance Supplier Audits / Evaluation Contract Renewal / Optimisation Execute Contracts Adherence to procurement practices / Contract Terms Supplier Engagement Contract Repository

17. Data Management

18. Current Data Management Challenges. Current Challenges Inconsistent formats, quality, consistency (e.g., vendor name spelling) Incomplete and / or poor data at decentralised locations as there is no o n-line capture of pertinent spend data No Standardised taxonomies Data cleaning is an ordeal task due to inconsistent coding or resource constraints Lack electronic procurement records / standardised solutions Reluctance to share information Lack on-line capture of pertinent spend data Data entry errors & omissions due to incompetent / untrained resources Data has less meaning / lack source classification No continuous improvement initiatives in place to classify / normalise data

19. Data Management Continuous Improvement in Data Classification and Normalisation Data Collection Data Definition Data Normali-sation Data Validation Data Analysis Data Refine-ment

21. Electronic Invoice Presentment and Payment (EIPP)

22. Current EIPP Challenges No EIPP system for quick invoice / payment processing, to avoid late payment fees or avail discount from early payment EIPP not integrated with eProcurement / Finance / ERP systems creating reconciliation headaches Or lack adaptation between supplier / buyer firms

25. Spend Management - Deployment

26. Risks & Opportunities Opportunities Increased sales and establishment of strategic relationship due to leveraged volume spending Improved customer satisfaction due to improved product and process visibility Improved market share within customer’s organisation due to reduction in maverick spending Process efficiencies through use of electronic transactions Risks Technical requirements to participate and support new technology Adoption of new processes to support new technology Training of personnel to perform new roles and responsibilities Less competitive, non-strategic suppliers may not retain/gain business with existing customers

27. Benefit Realisation Effective and efficient service delivery Program governance in place and all roles and forums fully resourced Functional coordinators and team members identified, committed to the program and clear about their roles External resource requirements identified and engaged Program budget established Program Management Plan considered and endorsed by Reference Groups and Steering Group All stakeholders identified and initial communication undertaken Future delivery blueprint complete Potential benefits & change articulated Mobilisation of the change program Planning Diagnostic Design / Build / Test Savings potential determined Quality improvement potential determined Cultural change requirement articulated (Functional) change priorities established Broad improvement program (clusters of improvement opportunities) defined All stakeholders aware of potential change impacts on them Continued stakeholder commitment to change Deploy Post implementation review and further improvement Service delivery models defined (incl. roles & responsibility & org structure) Target savings known and impacted areas identified Staff transition plans complete Program to develop service culture defined Program of improvement initiatives defined Tailored communication to all stakeholders defined Capability and leadership to drive the implementation defined Demonstrable improvements in service delivery & Savings realised Staff appointed in new roles Reengineering of business processes completed Service oriented culture embedded Implementation of enabling projects completed Staff and management training & development programs delivered Organisational development capability established

28. Spend - Value Proposition.. Stakeholder Buy-in Improved decision making via reporting and anlytics Savings opportunities = cost, sourcing pipeline, maverick spend reduction, demand & supply chain management etc Improved spend visibility People, process & system Integrated with business operations leads to improved SCM (e.g., supplier performance, reduced inventory Profit improvements, higher EPS, and extended budgets Procurement visibility leads to better negotiation positions and compliance Improved supplier and customer relations Consolidation of spend data into a single interface

31. Change Management /Implementation Planning Determine Vision and Governance Conduct Readiness Assessment Develop Strategy and Plan Deliver Change Mgmt Workshops Review and Align Business Processes Transition Organisation Stakeholder Communication Conduct Communication Assessment Develop Strategy and Plan Develop Communication Material Information Distribution Performance Reporting Manage Stakeholders Training Conduct Needs Analysis Develop Strategy and Plan Develop Training Material Conduct Train-the-Trainer Workshops Deliver Training Evaluate Training Documentation Conduct Documentation Assessment Develop Strategy and Plan Develop Templates & Standards Develop Business & Technical Doc. Develop Online Help Maintain Documentation Support Conduct Support Assessment Develop Strategy and Plan Develop Service Level Agreement Select Help Desk Software Establish Help Desk Manage Ongoing Support Testing Determine Testing Needs & Develop Strategy Prepare Test -Plans, Scenarios & Scripts Co-ordinate Test Data Conduct Testing Support UAT Validate Software in Production Data Conversion Determine Data Conversion Needs Develop Strategy and Plan Develop Decommission Strategy Conduct Data Analysis & Design Develop and Test Data Conversion Manage Conversions Configuration Mgmt (CM) Conduct CM Assessment Develop Strategy and Plan Build Environments Support Environments Develop CM Documentation Rollout to Production Authority Levels / Change Budget Manage Risks, Issues, Change Control Change Management Approach Conduct Reviews at Milestone, Deliverables, Stage Gates and Post Implementation QA / Audits / Health Checks Benefit Realisation / Change Readiness Monitor and Evaluate Progress

32. Program Governance Program plan Drivers for change Program objectives Program Management & Governance Plan and priorities Resourcing Change baseline Core Program Governance Checkpoints Case for Change Services effectiveness and quality Client needs and satisfaction Improvement opportunities (IT, process, organisation) Common design principles Savings potential Program Management, Communication and stakeholder engagement Change Management Design Preparation Implementation Diagnostic Service performance Improvement potential Benchmarking Staff inventory Common issues/opportunities Program planning & organisation Change baseline Future services Roles & responsibilities Service delivery model Structure Implementation Plan Blueprint for the future Service portfolio Service delivery model Management & organisation model Staffing profile IT systems map and plan Implementation plan Design principles Process & improvement Capability building People Management & Development Work Organisation Benefit realisation LEGEND Capacity Building/Leadership Development Within service area Across service areas Governance milestone

33. Eg. - Supplier Spend Segementation Spend $0 to $2K Spend $3K to $20K Spend $21K to $200K Spend $201K to $2M Spend $2.1M plus 1 to 5 Invoices 6 to 10 Invoices 11 to 50 Invoices 51 to 100 Invoices 101 to 500 Invoices 501 plus Invoices Transaction Volume by Supplier High Low Spend by Supplier High Low 1,001 plus Invoices

34. Eg. - Spend Analysis Matrix Priority Gaps Market influence Scope for improve-ment Risk / Opportunity $ Spend Spend area