224Accenture Procurement BPO Services Brochure

8/9/2019 224Accenture Procurement BPO Services Brochure

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Accenture Procurement

BPO ServicesGenerating value, reducing costs and driving highperformance through procurement outsourcing

Outsourcing


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Research shows that companies that are

mastering procurement to drive business

value are increasingly relying on outsourcingsolutions.

A leader in procurement BPO services,

Accenture helps clients across a wide

range of industries on their journey to

high performance in procurement. By

supplementing their procurement capabilities

with our full suite of source-to-pay BPO

servicessupported by leading practices,

innovative tools and our Global Delivery

Networkorganizations can increase their

control, generate savings, lower risk and

improve their speed to value.


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In the quest for greater business value,cost savings and high performancethrough business process outsourcing,senior executives from nearly everyindustry are turning their attention totheir procurement function.

Why? Because for the typicalcompany, procurement costs canrepresent anywhere from 50 percentto 70 percent of annual revenues. Soeven small percentage reductions inthat cost base can have a big impact

on profitability.

At the same time, becauseprocurement connects so manyfunctions of an organizationgenerating a unique, enterprise-wideperspectiveprocurement has astrategic power that is often notsufficiently leveraged by companiesto generate value and drive highperformance. Delivering savings aswell as additional business value andhigh performance is Accentures goal

with every procurement BPO client.

Outsourcing: The choice of

procurement masters

Chief procurement officers (CPOs) facea host of challenges today: acquiringthe necessary procurement skills,reducing risks, improving compliance,optimizing processes, loweringtransactional costs and increasingcontrol over spend at scale.

The question all organizations must

ask themselves is if they have or canacquire the internal organizationand capabilities to maximize thevalue-generating potential of theirprocurement function. As oneAccenture procurement BPO clientputs it, You can do it yourself Or,you can turn to an organization thathas already made the investment intime, effort, money and experience

in developing advanced procurementcapabilities.

Accentures research into how theprocurement function can drivehigh performance has found thatprocurement masters realize that theycannot acquire all the capabilitiesneeded to manage the procurementfunction cost effectively, nor togenerate maximum value in theleast possible time. These mastersof procurement are increasingly

turning to outsourcing solutionsacross the range of procurementactivitiesfrom order managementto help desk to catalog managementand goods receiving. (For moreinformation on the Accentureresearch initiative, see page 6.)

Procurement outsourcing thatdrives high performance

The swift and smoothimplementation of the programwas of high importance. In ourcase, it took less than 4 weeksafter signing the contract toallow the first purchase orders tobe placed.

- Tossan Souchon, Head of GlobalProcurement, HOCHTIEF


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Accenture is a leader in developingand delivering procurement BPOservices that can drive highperformance for organizationsthrough increased transparency andcontrol, reduced risk, more favorablecontracts, improved compliance,deeper category mining and industry-leading intelligence capabilities.

Flexible end-to-end services

Our end-to-end, source-to pay suiteof procurement BPO services (seefigure 1) includes:

Sourcing & Category Management

Accenture puts the depth of itsmultinational network and expertiseinto action to identify and manage

the best supplier relationships on themarket. By evaluating pricing andtrends, uncovering areas of additionalsavings, and executing on its provenseven step sourcing methodology,Accenture delivers negotiatedcontracts that quickly yield real andmeasurable benefits.

And such negotiated contracts are just the beginning. To achieve thefull benefit of their agreements, CPOsmust ensure their suppliers remain

compliant with the established terms.Accenture performs meticulouscontract management and identifiesopportunities to continuously improverelationships.

Specific components include:

Developing strategic sourcing plan

Identifying and evaluating sourcing

opportunities

Developing category strategy

Screening suppliers and selection

factors

Negotiating and developing

sourcing recommendations

Implementing agreements

Analyzing and forecasting demand

Monitoring and evaluating supplier

relationships and performance

Sourcing Support

Companies that enjoy reliablerelationships and comfortable pricepoints with suppliers can still improveon their advantage. Accenture helpsto identify better opportunities by

analyzing internal spending trendsand market information that pointto additional savings. Accenturecombines this extensive analysis withfast, reliable buying strategies toleverage competition and negotiatethe best achievable price.

Specific components include:

Spend analytics

Market analytics

Spot buy

Auction services

Contract administration

Procurement Operations

Even the best contract savings canbe enhanced by improved internalefficiencies. Accenture thereforeprovides the support that CPOs needin order to achieve high performanceoperations that help companies

Accenture: A leader inprocurement BPO services

Sourcing

Services

Demand

Management

Supplier

PerformanceManagement

Requisition

Processing

Invoice

Processing T&E

Processing

Supplier

Enablement

Catalog

Enablement

Contract

Administration

Auction

Services

Spot Buy

Market

Analysis

SpendAnalytics

ProcurementOperation

s

Sou

rcingS

upp

or

t

Sou

rc

ing

and

Cate

gory

Managem

ent

Figure 1. Our suite of source-to-pay BPO services


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reduce cycle time, lower procurementcosts, and make the most out ofcapital investments.

Service components include:

Requisition processing

Invoice processing

T&E processing

Supplier enablement

Catalog enablement

For companies looking beyond smaller-scale operational cost reductionsto value-generating procurementtransformation, Accenture offerscompelling solutions, deeply skilledresources and a track record ofinnovation, measurable results andgame-changing implementations.

Extensive, cross-industry

experience

Accenture has proven sourcingexperience in more than 1,000 goodsand service categories on behalf of

hundreds of clients in more than 30countries. Our clients represent awide range of industries includingfinancial services, high-tech,

retail, pharmaceuticals, industrialequipment, utilities, real estate andgovernment.

Technology and alliances

We design and deliver our servicesbased on a true one-to-manytechnology platform that can deliverbusiness process excellence costeffectively, starting with sourcingand contracting, right through totransaction processing of payables.

Accentures strong alliances withleading procurement softwarevendors help us deliver leading-edgesolutions faster, with less risk.

Delivery excellence

One of our most important anddistinctive assets is the AccentureGlobal Delivery Network, with more

than 50 centers in more than 40cities across the globe includingCenters of Excellence focused on

procurementwhich enables anindustrialized, high-quality, globalprocure-to-pay platform in amulticlient environment. Advanced

business analytics capabilitiesand tools, also available throughthe Centers of Excellence, helpdrive additional savings. Theseassets enable Accenture to deliverefficiency and cost savings, as well asinnovation and consulting guidance.


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Accentures High Performance through Procurement research todate has spanned 11 industry segments and covered nearly 600companies including an extensive analysis of 225 respondents. In ourongoing research into the characteristics of high performance throughprocurement, we defined procurement masters as those companiesthat consistently outperform their peers over the long term. We foundthat companies that master procurement generate significantly highersavings and have far lower costs than companies with average- orlow-performing procurement functions.

The evidence is compelling. Across the board of procurement activities,

procurement masters use outsourcing business models more than lowperformers.

High performance through procurement:An exclusive Accenture research program

13%

Order

management

Catalogue

management

Accounts

payable

Supplier

help desk

User

help desk

Goods

receiving

28%

11%

33%

9%

36%

18%

33%

9%

18%

0% 0%

Master

Low performer

Comparing masters and low performers in their use of procurement outsourcingservice providers


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Procurement outsourcing withAccenture is a powerful lever thatCPOs and their executive teams canuse to achieve high performancethrough increased profitability andimproved shareholder value. Accenturehelps companies make money, throughsustained savings and compliance notmerely source it.

Working with Accenture givescompanies and their procurementorganizations access to market-leading

practices, knowledge, tools and skillsthat are generally too expensive ortoo specialized for CPOs to invest indeveloping within their organizations.The most notable benefits delivered byAccenture include:

Sustained spend savings

Accenture has a proven track recordin driving high performance forclients based on deep sourcingsavings. For European constructionservices company HOCHTIEF, forexample, Accenture has enabled theprocurement organization to generatenet savings of 23 percent across sevenof the purchasing categories beingoutsourced, with double-digit savingsfor the entire project.

Improved transparency

and increased control over

procurement expenses

Accenture offers a unique set of toolsto help business and government

entities gain maximum control overspend. One of the challenges CPOsface today is achieving the necessaryvisibility, at scale, over globalspending. With Accentures end-to-end capabilities combined with ouranalytic tools, clients gain a morecomprehensive view of who is buyingwhat from whom, leading to bettercontract management and control overgreater percentages of spend.

For example, at global f inancial giantDeutsche Bank, its procurementoutsourcing arrangement withAccenturecurrently the worldslargestprovides purchasingoperations (sourcing, requisitioningand payment) for 40,000 users. Thisarrangement is advancing DeutscheBank toward high performance inseveral ways, including increasedvisibility and management controlacross the enterprise, reductions inindirect spend and lower procurement

operating costs.

Better compliance

Accentures High Performance throughProcurement research found thatprocurement masters excel in the areaof category spend compliancetheshare of spending managed througha formal process. An increase incategory spend compliance to asmuch as 95 percent across the entireenterprise can reduce internal costs by

as much as 3 to 5 percent. Accenturehelps companies improve complianceby increasing management controlover spend. For example, we helpeda major UK clearing bank increasecontract and channel compliance from50 percent to 95 percent.

Access to expertise

Access to broad and deep procurementknowledge is a key benefit of theoutsourcing relationship withAccenture. As one Accenture

procurement BPO client puts it,With an outsourcing solution, welook to maximize the advantages ofhaving access to intellectual capital,supply market information, sourcingtechniques and tools.

Driving measurable benefits withAccenture Procurement BPO Services

Accentures team brings deepprocurement experience andcapabilities that would have beenmore costly to create internally.

- Tom Baker, Chief Procurement Officer,First Horizon National Corporation


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End-to-end process excellence

and innovation

As a critical subset of an

organizations overall supply chain,procurement is made up of a setof core processes that must beoptimized if an organization is toachieve high performance throughprocurement.

In fact, the Accenture ProcurementInnovation Foruma peer groupof leading procurement executivesconvened by Accentureidentifiedprocess optimization as a key togenerating and sustaining value

through procurement. (For moreinformation on the Innovation Forumpage, see page 9.) According to Forummembers, CPOs must go beyond atransactional understanding of corerequisition processes and move moreinto downstream processes.

Accenture procurement BPO servicesreflect this advanced and innovativethinking, with end-to-end businessprocess management. Accentures

commitment to continuousimprovement and innovation isdemonstrated by our operationalexcellence discipline. This continuous

improvement culture, centered ontotal quality improvement, alignsprocesses, tools, people and businessstrategies to drive optimal businessresults, making process outcomesconsistent and predictable each time,every time.

Lower risk

Accentures Sourcing and CategoryManagement Centers of Excellence

deliver measurable, repeatable and

predictable processes that canreduce risk. An innovative Accentureassetthe Accenture Delivery Suitecontains methods, tools, architecturesand metrics that enable us to deliverreliable and high-quality outsourcedservices on time and at a lower cost.We also have significant experiencein the risk mitigation aspects ofglobal procurement outsourcing,as well as extensive global disasterrecovery capabilities.

Procurement masters aredifferent. They approach thefunction more strategically

and holistically and are thusmore likely to explore thebenefits of working withan outsourcing provider.


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At their inaugural meeting, members of the Accenture ProcurementInnovation Forum identified seven key themes and trends when itcomes to generating value from procurement:

1. Business focus: Achieving and sustaining the broader business focusneeded if procurement is to generate greater value.

2. Business intelligence: Developing the broader access to timely dataneeded to generate insights about the present and future states of thebusiness.

3. Communication: Extending the reach of procurement through

better internal marketing and communications.

4. Process transformation: Transforming core processes essential toprocurement and expanding into downstream processes.

5. Supplier relationships: Enlisting suppliers in the broader quest togenerate value.

6. Procurement talent: Sourcing, developing and retaining the skillsneeded to reinvent procurement.

7. Innovation: Identifying and leveraging innovation and insight to

transform procurement.

According to the renowned purchasing and supply chain expertDave Nelsonthe former Chief Procurement Officer of Deere &

Company and Honda Motor Co.s American manufacturing division

and a member of the Innovation Forumoutsourcing is now asignificant tool available to companies to generate greater valuefrom procurement. For companies that have $500 million or more indirect spend, Nelson says, the opportunities today to leverage the

capabilities of a procurement outsourcing provider are something tobe closely considered.

Whats on the minds of todays mostinnovative procurement executives?


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Our commitment to innovation onbehalf of our clients is backed bymethods, tools, architectures andmetrics that enable us to deliverreliable, predictable and high-qualityprocurement solutions on time and at alower cost than companies can typicallyachieve themselves. Accenture believesoutsourcing isnt about what you cansubtract from a business. Its aboutwhat you can add

Accenture has a proven ability to

deliver measurable improvementsin business performance throughprocurement outsourcing. Whatsets Accenture apart?

A history of successful

procurement BPO delivery

Hundreds of sourcing and

procurement clients across a broadrange of industries and geographies.

We source and contract-manage

more than $30 billion in annual spend

for our clients and transact more than$38 billion.

Outstanding performance: For a

leading bank, Accenture has developeda centralized procurement capabilitythat is delivering substantial savings,improved compliance and demandmanagement, more efficient sourcingoperations and lower procure-to-payoperating costs.

Deeply-skilled and experienced

resources More than 2,300 procurement

specialists in our outsourcing andconsulting businesses worldwide, andan even larger number of professionalswith broader supply chain expertise.

A culture that is results-driven,

flexible and responsive to clientsneeds.

Extensive implementation andchange management capabilities basedon our years of experience managinglarge, complex, global technology andoutsourcing initiatives.

The Accenture Global Delivery

Network


Network enables industrial-strength

solutions that leverage commonassets, tools and people, resulting in

greater cost savings and efficiencies,optimized labor rates, lower risksand proven knowledge transfer andtransition. Because of our deliverynetwork, our clients can leverageour investments in innovation andcontinuous improvement.

Our Global Delivery Network

holds many industry-wide externalcertifications that embody Accenturessingular focus to achieve the highestavailable standards in our deliverymethods and workforce practices.Further, key delivery centers undergoStatement on Auditing Standards(SAS) 70 Type II audits on an annualbasis that assess our internal controlenvironment and confirm that controlsare operating effectively.


Network provides procurement BPO

services from locations includingBangalore, India; Dalian, China;Bratislava, Slovakia; and San Antonio,Texas.

Why Accenture forprocurement BPO services? The alliance with Accenturesupports our strategic objectiveof implementing dramaticimprovements in our utilitybusiness. This collaborationwill help us to balance moreeffectively our efforts to provideenhanced services, manage ouroperating expenses and continueproviding safe, reliable naturalgas service to customers at areasonable cost.

- James H. DeGraffenreidt, Jr.,Chairman and Chief Executive Officer,Washington Gas


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Distinctive technologies

and capabilities

A true one-to-many platform

based on a standardized, globalsource-to-pay technology, regionalsourcing centers and multilingualProcurement Centers of Excellence.

Fully electronic integration with

our worldwide supplier network.Clients use one standard global buyingportal that supports high degreesof compliance against contracts.

In-depth profit recovery and

analytics capability to prevent,detect and recover lost profits due tooverpayments and under-recoveries.

A market-leading supply

chain consulting practice tocomplement the capabilities ofour procurement professionals.

Commitment to innovation

and market leadership

Game-changing innovations

guided by initiatives such as ourproprietary research program intoprocurement mastery and highperformance; our Executive ActionGroup comprised of retired CPOs andhighly regarded procurement leaders;and our Accenture ProcurementBPO Services Innovation Forum.

The financial strength to make

continued investments in leadingprocurement capabilities, technologiesand in our Global Delivery Network.

Procurement outsourcing is anindustry game-changer. It isinevitable that CPOs will have to

go down this path. There will bea tidal wave of activity and youneed to get in early, as we did, toget the most value.

- Jeff Baer, Global Head of Sourcing,Deutsche Bank


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Copyright 2009 AccentureAll rights reserved.

Accenture, its logo, and

High Performance Deliveredare trademarks of Accenture.

About Accenture

Accenture is a global managementconsulting, technology services and

outsourcing company. Combiningunparalleled experience, comprehensivecapabilities across all industries andbusiness functions, and extensiveresearch on the worlds most successfulcompanies, Accenture collaborateswith clients to help them becomehigh-performance businesses andgovernments. With more than 181,000people serving clients in over 120countries, the company generated netrevenues of US$23.39 billion for thefiscal year ended Aug. 31, 2008. Its

home page is www.accenture.com.

Contact us

Accenture stands for high performance,built on innovation, research-basedknowledge and unparalleled experience.Ask us how we can help yourorganization become a procurement

master and achieve high performance.

Visit us at www.accenture.com/procurementBPO

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224Accenture Procurement BPO Services Brochure

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