Best Practices in Spend Management: Spend Management...
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Best Practices in Spend Management: Spend Management, Powered by PROACTIS Tom Jones: Director - Product Marketing, ADERANT Steve Ferranti: VP Services North America, PROACTIS
Transcript of Best Practices in Spend Management: Spend Management...
Best Practices in Spend Management:Spend Management, Powered by PROACTIS
Tom Jones: Director - Product Marketing, ADERANTSteve Ferranti: VP Services North America, PROACTIS
Agenda
• Introduction• Business Drivers for Spend Management• Gartner Report on e-Procurement• Spend Management, Powered by
PROACTIS– Product Overview– Demo
• Conclusions / Q&A
Business Drivers for Spend Management
Profit Pressure in the Current Economy
Revenue
Costs
Revenue Growth vs. Cost Reduction: NIPP Impact
Sample Firm• 100 Partners
• 400 Lawyers
• $200M annual revenue
• Net Income Per Partner: $700K
Description Baseline P&L 5% Expenses Decrease Scenario % Chg 5% Revenue
Increase Scenario % Chg
Revenue $200,000,000 $200,000,000 0.0% $210,000,000 5.0%Compensation Expense ($70,000,000) ($70,000,000) 0.0% ($73,500,000) 5.0%
Operating Expenses ($60,000,000) ($57,000,000) -5.0% ($63,000,000) 5.0%
Total Expenses ($130,000,000) ($127,000,000) -2.3% ($136,500,000) 5.0%
Gross Profit $70,000,000 $73,000,000 4.3% $73,500,000 5.0%
Net Income per Partner $700,000 $730,000 4.3% $735,000 5.0%
Identify a Need
Source Goods / Services
Request
Check Budget
Management ApprovalOrder from
Supplier
Receive Goods / Service
Register Invoice
3-Way Match:Order/GRN/
Invoice
Handle Supplier Queries
Pay Supplier Analyse
Preferred P2P Best Practice
Typical P2P Process
Identify a Need
Source Goods / Services
Request
Check Budget
Management ApprovalOrder from
Supplier
Receive Goods / Service
Register Invoice
3-Way MatchOrder/GRN/
Invoice
Handle Supplier Queries
Pay Supplier Analyse
Mystery Invoices & “Spent” Control
• Where did it come from? • Is it a duplicate invoice? • Was it budgeted?• Do we have budget for it?• Who bought it? • Who approved it?• Were the goods received?• Does everything match? • Where should it get charged?• Missing terms? • Approved Vendor?• Disbursement?
• A/P performs the “Workflow”• Segregation of duties?
Lost Productivity
Maverick SpendContract Leakage
Budget Overages
Supplier Proliferation
No Leverage
Errors
No Visibility
Accountability
No Time for Strategic Sourcing
Administrative Burden
Disbursement Write Offs
The Leaky Pipe
Compliance?
Gartner Report on e-Procurement
Gartner Report on e-Procurement
Gartner Report on e-Procurement
• Implementing e-procurement now results in immediate cost savings
• When the economy starts to expand again, your firm will have the system and processes in place to control spending and maximize profitability going forward
Gartner Report: Vendor Analysis
• Presents “use cases” for e-Procurement– “Unified purchasing / e-procurement”
• Defines application capabilities• Then evaluates 15 vendors across those
use cases and capabilities
Analyst Review
Sources: Critical Capabilities for Best-of-Breed E-Procurement Vendors, June 2009 and Critical Capabilities for ERP E-Procurement Vendors, July 2009
The Proactis solution was rated:• Highest in terms of overall functionality• Highest in the “unified purchasing/e-procurement application” usage scenario• Top 5 or higher in all four usage scenarios• Excellent in terms of product viabilityOther solutions rated included those from Ariba, Coupa, Ketera, PurchasingNet, and others.
BEST-OF-BREED REPORT ERP REPORT
Proactis Ariba Average Oracle EBS
Total Score 47.5 (highest) 39.9 39 35
Gartner Vendor Summary for Spend Management, Powered by Proactis
Spend Management
ADERANT Expert
Spend Management extends ADERANT’s end-to-end financial offering to include world class cost management
Spend Management
• Spend Management Features– Electronic Requisitions, Purchase
Orders & Check Requests– Flexible Authorization Workflow– Web, Email and PDA Approvals– Auto 2-Way and 3-Way Invoice
Matching
• Controls and Compliance– Automated Authorization Rules– Default Account Coding & Supplier
Choices– Pre-Commitment Budget Check and
Authorization– Complete Authorization Audit Trail– Contract Compliance/Supplier
Rationalization
PROACTIS Spend Management ClientsCommercial Not for Profit Public Sector
Spend Management, Powered by PROACTIS is the spend control software of choice for leading firms world-wide
Product Demonstration
Conclusions
Enforce Budget
Risk mitigation
Fraud prevention
Purchase cost management
Corporate Governance
Analysis
Auditability
Transparency
Accountability for spend
Decision-support
Optimized AP
Leverage supplier deals
Cut maverick spend
Cut purchase costs
Microsoft technology (low TCO)
Spend Management: Value Proposition
In Closing…
• Questions?• Product information is available on
– www.aderant.com and – www.proactis.com
• For more information or a firm demonstration– Contact your ADERANT Account Executive– Or [email protected]
• Thank You!
