Supplier Enablement:
The Path to 100%
Sept 30, 2015
Agenda
• Introductions
• Hackett Overview: e-invoicing and onboarding suppliers
• Greif’s supplier enablement story
• Coupa’s vision for e-invoicing and supplier enablement
• Q&A
©2015 Coupa Software, Inc -
Today’s Speakers
Myron Gramelspacher
Sr. Director, Global Indirects
Sourcing & Supply Chain
Greif
Meredith Volpe
eProcurement Systems
Manager
Greif
Amy Fong
Executive Advisor and
Program Lead
The Hackett Group
Adam Alphin
Director, Supplier
Enablement Services
Coupa
4
The world’s leading industrial packaging provider
$4.3 BILLION
Nearly $4.3 billion in
sales
>50
Operations in more
than 50 countries
13,500
Approximately 13,500
employees worldwide
250
Over 250 operations
Amy Fong
Supplier Enablement to
e-Invoicing Networks
6© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Top performers leverage electronic transactions far more than
peers, with the greatest gap in e-invoice receipt
Percent of Electronic
Invoices and Invoice-less
Transactions2
Percent of Electronic
Payments as Percent of
Total Payments
2Invoiceless transactions includes
Evaluated Receipt Settlement
19%
70% 69%
80%
Peer Top Performer
42%
68%
Percent of “No Touch” Orders1
1Purchase Orders and Releases Requiring No
(or minimal) Intervention from a Buyer to Turn
the Requisition into an Order and Disseminate to
the Supplier
7© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Most companies approach e-Invoicing with realistic expectations
of onboarding high volume suppliers, but often fall short
Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015
Initial Onboarding Goal versus Progress to Date
Percent of Suppliers Percent of Invoices
49%
32%
62%
49%
Initial Onboarding Goal Progress To Date
8© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Software vendor fees and limited resources are most often cited
as challenges to supplier enablement
10%
15%
20%
30%
30%
35%
40%
40%
65%
A lack of sufficient dedicated resources from the software
provider focused on onboarding suppliers
Suppliers on the software vendor’s network need additional
setup to invoice new buyers
Initial business case didn’t allocate enough time or budget for
supplier onboarding efforts
Insufficient and/or inaccurate supplier master data
Integration requirements are too much of a burden on the
supplier
A lack of supplier awareness around the initiative
Ineffective and manual existing onboarding process
A lack of dedicated internal resources to focus on onboarding
suppliers
The software vendor’s fees discourage suppliers from
enrolling
Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015
9© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Successful enablement requires a joint effort internally and
externally
Activity
Percent of
respondents
carrying out activity
Primarily responsible for completing
the work
Creation of data upload utilities 88%
Internal IT working with the
sourcing/procurement team
Creation of data definition documents to map interfaces 88% Internal IT working with the software vendor
Setup of supplier security roles and
data access rules
82%
An even mix of responsibility
between procurement, IT and the
software vendor
Staffing a dedicated supplier onboarding help
desk/hotline
77%
An even mix of responsibility between
procurement, AP and the software vendor
Creation of supplier onboarding guide and FAQ
documentation
75%
AP supported by procurement and
the software vendor
Providing testing and data validation services 71% Software vendor supported by AP
Generating supplier onboarding status reports 69% Software vendor supported by AP
Configuration of online/supplier self-service
data entry screens
59% Software vendor
Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015
10© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The cost and effort to enable a supplier can be significant
Metric Average response
Estimated total cost to onboard a single supplier $925
Percent of respondents unable to estimate total cost of onboarding a single supplier 47%
Average time required to onboard a supplier 17 hours
Total days from start to finish 16 days
Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015
11© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Fresh Market Story
Greif’s Supplier Enablement Story: The Path to 100%
12© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Fresh Market Story
• Maverick spend, no centralized system for indirect purchases
• Poor spend visibility & control
• 0% e-invoicing for indirect spend: all paper
• Needed a centralized global e-procurement system and
e-invoicing solution
• Solution must be scalable
Greif – Original situation
13© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Fresh Market Story
• Internal cross-collaboration was key in decision
(AP, IT, Sourcing, Supply Chain, Plants)
• 4.5 months implementation
• Significant cultural change for plants & users
• Supplier onboarding important for success
Coupa Implementation
14© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Fresh Market Story
• Vastly underestimating the importance of early
communication with our supplier base
• Insufficient explanation of the Coupa Supplier Network,
what it is, its benefits and value
• Incomplete Supplier Master details (missing contacts,
agreements, information)
• Pockets of internal resistance and pushback
• Not properly prioritized
Initial Challenges to Supplier Onboarding
15© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Results
• Around 3,500 active suppliers
• More than $220M invoiced spend annually
• 20%+ suppliers enabled on day 1 of go-live; 50% today
• Currently e-invoice volume at 85%
• 95% targeted by end of 2015
• 100% goal in 2016 (use of actionable emails will extend adoption)
• Supplier visibility: Real-time access to payment status
• Supplier trust: Strategic discussions beyond price
• Supplier relationships: Enabling catalogs to increase sales
• Cost to on-board a supplier is ~ $50 / supplier
The numbers
The value
Greif Manual Invoices vs. Electronic Invoices
0
1,000
2,000
3,000
4,000
5,000
6,000
jan feb mar apr may jun jul aug sept
Manual Invoices
Electronic Invoices
What Changed?
85%
2015 Invoice Counts
17© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Fresh Market Story
• First priority – internal organizational alignment
• Communicated broadly to supplier base as requirement for
doing ongoing business
• Letters illustrated value of adoption
• Training materials sent to suppliers to prepare for transition
• e.g. how to e-invoice, add additional users
Strategy for Driving Adoption Among Suppliers
18© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Supplier Feedback
“We initially felt it was going to be a time consuming effort
to feed our invoices through the system for all of the
different plants. Once we got used to it, we found it was
very easy and it has drastically reduced our aging invoices
as we know the status immediately through the CSN and
know who to follow-up with if we haven’t seen a receipt
take place long before payment due date.” Greif
Supplier
19© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Fresh Market Story
• Validate and cleanse the Supplier Master data, ensure
contacts are up-to-date
• Prepare training materials in advance. Make sure training
opportunities are available
• Make Coupa and the CSN a part of supplier onboarding for
all NEW suppliers
• Internal organizational alignment - secure support on the
initiative, ensure all critical departments are aligned
Lessons Learned
20© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Coupa’s Mission: Savings-as-a-Service
21© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
One Unified Application Suite
©2015 Coupa Software, Inc - Confidential
QUANTITATIVE RESULTS
ONE CLOUD PLATFORM
INTEGRATED & UNIFIED
APPROACH
UNPRECEDENTED USER
ADOPTION
MANAGEMENT VISIBILITY,
CONTROL & COMPLIANCE
LOWEST TCO
HOLISTIC BUSINESS IMPACT
22© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Coupa’s Supplier Enablement Vision
BORDERLESS commerce & MEANINGFUL collaboration for
ALL trading partners, BIG or SMALL, LOCAL or GLOBAL
Zero cost, no
contracts for
suppliers
Localized
transactional
data residency
Self service to
full service or
anything in
between
Global
Compliance
Technology
AgnosticEmbrace Email
as Common
Denominator
23© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
How Does Coupa Help AP be Successful?
©2015 Coupa Software, Inc - Confidential
24© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Top Tier Suppliers Are Not Driving Costs
©2015 Coupa Software, Inc - Confidential
The majority of your invoices will come from the mass of small,
non-preferred suppliers that you use infrequently
Preferred suppliers
Non-preferred
The majority of
suppliers
are non-preferred
Only 20% of spend
accounted for by
them
But they account for
80% of invoice costs
25© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
©2015 Coupa Software, Inc - Confidential
MINIMAL ENABLEMENT
NO REGISTRATION REQUIRED
NO SUPPLIER FEES
NO CONTRACT TO SIGN
FULL VISIBILITY OF INVOICE
(AUTO EMAILED)
Coupa Enables All Suppliers to
Invoice on Day 1
26© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Coupa Enables All Suppliers to
Invoice on Day 1
©2015 Coupa Software, Inc - Confidential
SUPPLIER
ACTIONABLE
NOTIFICATION
PORTAL AP INBOX DIRECT
CONNECTION
PAPER
Contact us at:
www.coupa.com/contact-us
650.931.3200
Thank You!

Supplier Enablement: The Path to 100%

  • 1.
    Supplier Enablement: The Pathto 100% Sept 30, 2015
  • 2.
    Agenda • Introductions • HackettOverview: e-invoicing and onboarding suppliers • Greif’s supplier enablement story • Coupa’s vision for e-invoicing and supplier enablement • Q&A ©2015 Coupa Software, Inc -
  • 3.
    Today’s Speakers Myron Gramelspacher Sr.Director, Global Indirects Sourcing & Supply Chain Greif Meredith Volpe eProcurement Systems Manager Greif Amy Fong Executive Advisor and Program Lead The Hackett Group Adam Alphin Director, Supplier Enablement Services Coupa
  • 4.
    4 The world’s leadingindustrial packaging provider $4.3 BILLION Nearly $4.3 billion in sales >50 Operations in more than 50 countries 13,500 Approximately 13,500 employees worldwide 250 Over 250 operations
  • 5.
    Amy Fong Supplier Enablementto e-Invoicing Networks
  • 6.
    6© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Top performers leverage electronic transactions far more than peers, with the greatest gap in e-invoice receipt Percent of Electronic Invoices and Invoice-less Transactions2 Percent of Electronic Payments as Percent of Total Payments 2Invoiceless transactions includes Evaluated Receipt Settlement 19% 70% 69% 80% Peer Top Performer 42% 68% Percent of “No Touch” Orders1 1Purchase Orders and Releases Requiring No (or minimal) Intervention from a Buyer to Turn the Requisition into an Order and Disseminate to the Supplier
  • 7.
    7© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Most companies approach e-Invoicing with realistic expectations of onboarding high volume suppliers, but often fall short Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015 Initial Onboarding Goal versus Progress to Date Percent of Suppliers Percent of Invoices 49% 32% 62% 49% Initial Onboarding Goal Progress To Date
  • 8.
    8© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Software vendor fees and limited resources are most often cited as challenges to supplier enablement 10% 15% 20% 30% 30% 35% 40% 40% 65% A lack of sufficient dedicated resources from the software provider focused on onboarding suppliers Suppliers on the software vendor’s network need additional setup to invoice new buyers Initial business case didn’t allocate enough time or budget for supplier onboarding efforts Insufficient and/or inaccurate supplier master data Integration requirements are too much of a burden on the supplier A lack of supplier awareness around the initiative Ineffective and manual existing onboarding process A lack of dedicated internal resources to focus on onboarding suppliers The software vendor’s fees discourage suppliers from enrolling Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015
  • 9.
    9© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Successful enablement requires a joint effort internally and externally Activity Percent of respondents carrying out activity Primarily responsible for completing the work Creation of data upload utilities 88% Internal IT working with the sourcing/procurement team Creation of data definition documents to map interfaces 88% Internal IT working with the software vendor Setup of supplier security roles and data access rules 82% An even mix of responsibility between procurement, IT and the software vendor Staffing a dedicated supplier onboarding help desk/hotline 77% An even mix of responsibility between procurement, AP and the software vendor Creation of supplier onboarding guide and FAQ documentation 75% AP supported by procurement and the software vendor Providing testing and data validation services 71% Software vendor supported by AP Generating supplier onboarding status reports 69% Software vendor supported by AP Configuration of online/supplier self-service data entry screens 59% Software vendor Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015
  • 10.
    10© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. The cost and effort to enable a supplier can be significant Metric Average response Estimated total cost to onboard a single supplier $925 Percent of respondents unable to estimate total cost of onboarding a single supplier 47% Average time required to onboard a supplier 17 hours Total days from start to finish 16 days Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015
  • 11.
    11© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Fresh Market Story Greif’s Supplier Enablement Story: The Path to 100%
  • 12.
    12© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Fresh Market Story • Maverick spend, no centralized system for indirect purchases • Poor spend visibility & control • 0% e-invoicing for indirect spend: all paper • Needed a centralized global e-procurement system and e-invoicing solution • Solution must be scalable Greif – Original situation
  • 13.
    13© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Fresh Market Story • Internal cross-collaboration was key in decision (AP, IT, Sourcing, Supply Chain, Plants) • 4.5 months implementation • Significant cultural change for plants & users • Supplier onboarding important for success Coupa Implementation
  • 14.
    14© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Fresh Market Story • Vastly underestimating the importance of early communication with our supplier base • Insufficient explanation of the Coupa Supplier Network, what it is, its benefits and value • Incomplete Supplier Master details (missing contacts, agreements, information) • Pockets of internal resistance and pushback • Not properly prioritized Initial Challenges to Supplier Onboarding
  • 15.
    15© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Results • Around 3,500 active suppliers • More than $220M invoiced spend annually • 20%+ suppliers enabled on day 1 of go-live; 50% today • Currently e-invoice volume at 85% • 95% targeted by end of 2015 • 100% goal in 2016 (use of actionable emails will extend adoption) • Supplier visibility: Real-time access to payment status • Supplier trust: Strategic discussions beyond price • Supplier relationships: Enabling catalogs to increase sales • Cost to on-board a supplier is ~ $50 / supplier The numbers The value
  • 16.
    Greif Manual Invoicesvs. Electronic Invoices 0 1,000 2,000 3,000 4,000 5,000 6,000 jan feb mar apr may jun jul aug sept Manual Invoices Electronic Invoices What Changed? 85% 2015 Invoice Counts
  • 17.
    17© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Fresh Market Story • First priority – internal organizational alignment • Communicated broadly to supplier base as requirement for doing ongoing business • Letters illustrated value of adoption • Training materials sent to suppliers to prepare for transition • e.g. how to e-invoice, add additional users Strategy for Driving Adoption Among Suppliers
  • 18.
    18© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Supplier Feedback “We initially felt it was going to be a time consuming effort to feed our invoices through the system for all of the different plants. Once we got used to it, we found it was very easy and it has drastically reduced our aging invoices as we know the status immediately through the CSN and know who to follow-up with if we haven’t seen a receipt take place long before payment due date.” Greif Supplier
  • 19.
    19© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Fresh Market Story • Validate and cleanse the Supplier Master data, ensure contacts are up-to-date • Prepare training materials in advance. Make sure training opportunities are available • Make Coupa and the CSN a part of supplier onboarding for all NEW suppliers • Internal organizational alignment - secure support on the initiative, ensure all critical departments are aligned Lessons Learned
  • 20.
    20© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Coupa’s Mission: Savings-as-a-Service
  • 21.
    21© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. One Unified Application Suite ©2015 Coupa Software, Inc - Confidential QUANTITATIVE RESULTS ONE CLOUD PLATFORM INTEGRATED & UNIFIED APPROACH UNPRECEDENTED USER ADOPTION MANAGEMENT VISIBILITY, CONTROL & COMPLIANCE LOWEST TCO HOLISTIC BUSINESS IMPACT
  • 22.
    22© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Coupa’s Supplier Enablement Vision BORDERLESS commerce & MEANINGFUL collaboration for ALL trading partners, BIG or SMALL, LOCAL or GLOBAL Zero cost, no contracts for suppliers Localized transactional data residency Self service to full service or anything in between Global Compliance Technology AgnosticEmbrace Email as Common Denominator
  • 23.
    23© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. How Does Coupa Help AP be Successful? ©2015 Coupa Software, Inc - Confidential
  • 24.
    24© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Top Tier Suppliers Are Not Driving Costs ©2015 Coupa Software, Inc - Confidential The majority of your invoices will come from the mass of small, non-preferred suppliers that you use infrequently Preferred suppliers Non-preferred The majority of suppliers are non-preferred Only 20% of spend accounted for by them But they account for 80% of invoice costs
  • 25.
    25© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. ©2015 Coupa Software, Inc - Confidential MINIMAL ENABLEMENT NO REGISTRATION REQUIRED NO SUPPLIER FEES NO CONTRACT TO SIGN FULL VISIBILITY OF INVOICE (AUTO EMAILED) Coupa Enables All Suppliers to Invoice on Day 1
  • 26.
    26© 2015 TheHackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Coupa Enables All Suppliers to Invoice on Day 1 ©2015 Coupa Software, Inc - Confidential SUPPLIER ACTIONABLE NOTIFICATION PORTAL AP INBOX DIRECT CONNECTION PAPER
  • 27.