Digitize Procurement Operations with Tenthpin Management ... · Consulting & SAP Ariba Solutions ....

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The economic environment of today is rapidly evolving and growing to new heights. Global companies must adapt quickly to the changing environments or face economic hardships due to complex technical advancements, increased competition and changing regulations. In order to remain competitive in the market, many companies are embracing digital transformation to cut back on costs, streamline business operations, improve on efficiencies, track performance, and increase supplier competition. Companies that digitize their procurement organization with Tenthpin’s process optimization and enablement with Ariba can expect the following benefits: § Digitize Innovation: interact with suppliers and partners with an innovation mindset § Digitize Workforce: build an organization of knowledgeable workers § Digitize Operations: automate, simplify & optimize operations § Digitize Insights: use advanced insights for continuous business performance improvement Digitize Procurement Operations with Tenthpin Management Consulting & SAP Ariba Solutions

Transcript of Digitize Procurement Operations with Tenthpin Management ... · Consulting & SAP Ariba Solutions ....

Page 1: Digitize Procurement Operations with Tenthpin Management ... · Consulting & SAP Ariba Solutions . Tenthpin provides market-leading solutions for digitizing and integrating the source-to-pay

The economic environment of today is rapidly evolving and growing to new heights. Global companies must adapt quickly to the changing environments or face economic hardships due to complex technical advancements, increased competition and changing regulations. In order to remain competitive in the market, many companies are embracing digital transformation to cut back on costs, streamline business operations, improve on efficiencies, track performance, and increase supplier competition.

Companies that digitize their procurement organization with Tenthpin’s process optimization and enablement with Ariba can expect the following benefits:

§ Digitize Innovation: interact with suppliers and partners with an innovation mindset

§ Digitize Workforce: build an organization of knowledgeable workers

§ Digitize Operations: automate, simplify & optimize operations § Digitize Insights: use advanced insights for continuous business

performance improvement

Digitize Procurement Operations with Tenthpin Management

Consulting & SAP Ariba Solutions

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Tenthpin provides market-leading solutions for digitizing and integrating the source-to-pay or order-to-cash processes using SAP Ariba. Extensive portfolio of solutions for large, midsize, and growing companies, for your direct and indirect spending. What makes SAP Ariba great?

§ Flexible – o Supports all types of goods and services o Enhance your solution with targeted apps and extensions

§ Smart –

o End-to-end automated system o Manage everything from source to pay on a single integrated

platform

§ Simple – o Real-time insight into your business o Error-free transactions

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Tenthpin assists clients across various industries to define the journey of their digital transformation enabled with SAP Ariba and help clients realize and sustain the value from the implementation. We have accelerators of value realization and KPI formulation frameworks in the industries of focus. A typical SAP Ariba landscape with Tenthpin delivers strategic benefits across these value drives.

SAP Ariba source-to-pay solutions can handle all your procurement activities, including indirect and direct spend. Historically, customers leveraged Ariba as a solution for indirect spend, but that has changed

Value realization with SAP Ariba Solutions

Procurement Deployment Options

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with the SAP Ariba Solutions for Direct Spend. Integrate seamlessly with your PLM, ERP, and SAP Integrated Business Planning systems.

From a procurement deployment perspective, customers have 3 options:

Procurement Activities

Ariba Procure-to-Pay Ariba SNAP

Ariba Network working with

Foundational ERP Business Size -

Applicable Medium – Large Small - Medium Large

Relevant Spend Types

Any (commonly used for Indirect)

Indirect Direct

Strategic Sourcing Hub Ariba Ariba Ariba

Industry Types

Indirect & Direct Spend - Animal Health, Sales & Distribution Buy/Sell (In Agriculture, Biotechnology, Chemicals, Consumer Goods, Services or Diversified Industries) Indirect Spend – Life Science, Pharmaceutical, Medical Devices, Chemicals, Agriculture, Oil & Gas, Diversified Industries) with manufacturing operations.

Indirect & Direct Spend - Animal Health, Sales & Distribution Buy/Sell (In Agriculture, Biotechnology, Chemicals, Consumer Goods, Services or Diversified Industries) Direct Spend - Typically not used by clients with manufacturing operation

Indirect Spend – Life Science,

Pharmaceutical, Medical Devices,

Chemicals, Agriculture, Oil & Gas, Diversified Industries) with manufacturing

operations.

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Transaction Hub

Ariba Ariba ERP Good Receipts

Invoice Reconciliation

Spend Analytics

Tenthpin has experience advising clients on developing the right architecture for any combination of the above options. We also assist larger clients on how to successfully migrate Direct spend to Ariba (see illustration below) to optimize their overall spend as a part of their S/4 journey or to augment their existing SAP, Oracle, and other ERP foundations.

There has been a surge in the deployment of cloud-based procurement solutions over the past decade. Since the economic crash in 2008, many companies began to look at technology in order to lower TCO, quick ROI, shorten business process cycles, and more. However, the technology will only provide these benefits if deployed successfully and adopted by end-users. There are 3 simple rules to follow to ensure that the SAP Ariba solutions are deployed successfully:

FAST Implementation

Methodology

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1) Establish clear and measurable goals 2) Define procurement processes, KPIs & Operating Model that

complement the technology 3) Identify the main Ariba users in the company from the various teams

Tenthpin brings a proven and agile FAST approach leveraging SAP Activate to help your company achieve business performance improvement.

At Tenthpin, we approach digital transformation enabled with SAP Ariba in a holistic context using FAST Methodology, our four pillars for success. Tenthpin FAST leverages industry best practices, experienced teams & agile approach to enhance adoption and realize value. These pillars lead to a nimble, cost-effective and business focused approach to the program with predictable outcome.

Tenthpin FAST & The Four Pillars of

success

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§ Tenthpin leverages industry specific experience gained in past projects to help future clients. We help clients increase adoption of the SAP Ariba solutions by designing simple processes and by developing comprehensive training guides

§ Tenthpin’s highly experienced process and industry SMEs help guide the client teams to explore, adopt, use and realize value from digitization their source-to-pay activities

§ We use an Agile methodology for implementing the SAP Ariba solutions. Review and test configurations as they take place, planning and adjusting where necessary. Incremental go-lives of each module to quickly begin value realization and ROI

§ Tenthpin provides stakeholder alignment and management with our years of industry experience in enabling processes and technology to deliver on-time, on-budget and exceed program expectations

Key Learnings

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Tenthpin experts work with global clients across industries on successful transformations enabled by the SAP Ariba source-to-pay solutions. Some of our key learnings from recent experiences include the following: § Developing the strategy

o Define the overall digital transformation strategy linked closely with your business strategy

o This is a Business transformation, more than a technology transformation

o Focus on simplifying the user experience from a process and end to end organizational perspective

§ Funding the journey o Digital enablement requires high level of collaboration between

business and IT o ROI from digital enablement are mostly realized across business

functions and requires user adoption o Full business case including Payback Period, NPV and IRR

Analysis across business scenario and deployment options

§ Right Team across business processes o Assign full-time business process owners across organization to

establish standardized processes and to achieve continuous performance improvement

o KPI alignment across processes and roles are essential to achieving the targeted ROI from these initiatives

o Instill common processes across business segments and geographies to enhance value capture

§ Analytics/Value Realization o Develop an open, and transparent culture to defy status quo and

develop digital mindset to innovate o Leverage power of data and insights to drive growth,

efficiencies and make real-time decisions across business

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o Data Profiling, & Conservative Spend Benchmarking across Spend categories is essential for initial and sustained value capture

Tenthpin uses a FAST-front-end engineering approach to align the transformation program with the client’s business strategy to develop a medium term and longer-term journey map to quantify value and align stakeholders towards the journey.

The deliverables of the FAST-front-end engineering include:

§ Assessment of current state and the business strategy § Assist client develop and prioritize an end-to-end value map of

digitization activities and align them to the business strategy § Establish the governance and stakeholder map for value realization

across business including roles and responsibilities § Enable a program team of business process owners and IT required

for program success including a sustenance plan § Detail and align roadmap of medium term and long-term

implementation plan including costs, budgets and business case

How do we get started in the journey?

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Tenthpin is a global management consulting firm, with deep expertise in SAP Ariba solutions having assisted clients in Life Sciences, Agriculture & Chemicals and Diversified Industries in their digital transformation journey. Tenthpin is a Certified SAP Ariba implementation Partner with global presence across Americas, Europe and Asia. We strive to be our client’s trusted advisor as business and technology consultants who understands the unique challenges within each sector across the entire value chain. We provide independent, unbiased advice and services to our clients by combining our industry and process knowledge with the latest technology drivers making the difference in any transformational change. For additional information, please contact us at the links below.

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