How Tesco Uses the Cloud to Work With Its Suppliers
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Transcript of How Tesco Uses the Cloud to Work With Its Suppliers
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Slide 2 | © GXS, Inc.
Agenda
• Introduction:Supplier community management and the Cloud
• Tesco Case Study:Simpler supplier lifecycle management, using cloud-based community management
• Wrap Up and Q&A
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Slide 3 | © GXS, Inc.
Communities and B2B GovernanceAt the Core of Today’s Supply Chain
• Thousands of companies
• Tens of thousands of people
• Different systems
• Different (or NO) productivity tools
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Slide 4 | © GXS, Inc.
Challenges with B2B Supplier Communities
Supplier Information and Process Management Often Manual
Many Departments Lack Visibility and Access to Information
Slowness to On-board and Set UpSupplier Impacts Profits
Legal, Regulatory and CSR Compliance Impact Your Brand
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Slide 5 | © GXS, Inc.
Information Managementis a Critical Component
Trading Partners in a constant state of flux…
Every…14 secondsa judgment is filed against a supplier
60 secondsa supplier’s risk profile changes
2 minutesa directorship (CEO, CFO, etc.) change occurs
2 minutesa new business opens
4 hoursa supplier’s
ownership changes
8 minutesa supplier files
bankruptcy
3 minutesa supplier ceases
operations
Source: D&B
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Slide 6 | © GXS, Inc.
Why the Cloud is Attractive to Procurement and Sourcing Executives
• Access to productivity and process management apps was traditionally out of reach for many procurement organisations
• Ability to unify departments and companies around a shared information profile
• Instant gratification
CLOUDSolutions
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Slide 7 | © GXS, Inc.
Supplier Lifecycle ManagementCloud Style
Procurement & Sourcing Organisations
• Single information profile for suppliers:• Company• People (business, social)• Items, Products & Matls.
• Governance & Control• Information• Process
Suppliers
• Self-service Information Management
• Process Handshake
• Auditable Interactions
• Business Social Network
• Customer Engagement
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Slide 8 | © GXS, Inc.
Case Study
Simpler Supplier Management
– in the Cloud
Stuart BlackeryTesco Group Corporate Purchasing
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Slide 9 | © GXS, Inc.
Tesco Corporate Purchasing Environment
Major purchasing organisation –global, multinational, multi buyer environment
POs with over 3,500 suppliers, from a catalogue of > 12,000+
Rolled out new Oracle-based procure-to-pay solution
Standardising on a best practice operating model for global purchasing practices
Founded: 1919 (London, UK) HQ: Cheshunt, UK UK’s #1 Retailer 3rd Largest Globally Stores: 5,400+ 2010/11 Revenue:
£60.93 billion ($97.9 billion)
Employees: 400,000+
Company Snapshot
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Slide 10 | © GXS, Inc.
Key Issues that led to Implementation of Supplier Lifecycle Management Automation
• Fragmented view of existing supplier information
• Difficult to communicate and govern massive community of existing suppliers around routine initiatives and rollouts
• Need for simplicity and paperless best practices in SRM
• Pressures to standardise and include supplier assessment and risk evaluation during supplier registration
• Same process for one-off “payees” as for major suppliers
• Unable to find cost-effective solutions from existing ERP and content management solutions
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Slide 11 | © GXS, Inc.
Supplier Registration and Setup Before Our Cloud-based Solution
Group Corporate Purchasing
Manually intensive Difficult to control Poor visibility Long lead timesSuppliers
PurchasingFinance & ITLegal & Executive
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Slide 12 | © GXS, Inc.
Tesco Selected GXS RollStream™Part of GXS Trading Grid ®
Focus
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Slide 13 | © GXS, Inc.
After Registration RollStream acts as Supplier Governance Hub for Corporate Purchasing
UK / EuropeIrelandEtc.
Flexible data model Extensible collaboration Control of the process
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Slide 14 | © GXS, Inc.
After RegistrationTotal automation of the workflow steps
Step Manual Process Before
GXS RollStream Registration
Search to see if supplier or product exists
Manual ✔ - Online
Request new supplier (if not found)
E-Mail Form ✔ - Online
Review new supplier request and send Application Packet to vendor
Manual ✔ - Online
Request more info from supplier E-Mail Form ✔ - Online
Supplier submits info / agreement E-Mail / Mail Form ✔ - Online
Request approved / declined Manual ✔ - Online
Supplier data entered into platform Manual ✔ - Online
Request approved / declined Manual ✔ - Online
Future supplier communications E-Mail ✔ - Online
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Slide 15 | © GXS, Inc.
Impact of Automation
• Real-time Visibility • Dashboards with latest status, flexible ad-hoc decision
reporting, regular report feeds into KPI reports• Improved Productivity
• Automatic notifications and reminders, approval workflow • Improved Data Quality
• Data completeness, data validation, complete audit history• Flexibility
• Business users can easily change process, including new approval group
• Oracle Integration • Automated integration, less errors
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Slide 16 | © GXS, Inc.
Solution Fly By…
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Slide 17 | © GXS, Inc.
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Slide 18 | © GXS, Inc.
Tesco team Members have a Simple Automated New Supplier Request Process
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Slide 19 | © GXS, Inc.
Internal Pre-approval Controls Ensure Governance over Supplier Addition
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Slide 20 | © GXS, Inc.
Supplier Request Email
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Slide 21 | © GXS, Inc.
Suppliers Self-Serve Their Log In
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Slide 22 | © GXS, Inc.
Create Appropriate Company and Contact Profiles
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Slide 23 | © GXS, Inc.
Simple, Comprehensive Information Collection
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Slide 24 | © GXS, Inc.
Flexible Custom Field Maintenance and Self-Policing Completion Prompts
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Slide 25 | © GXS, Inc.
Internal Tesco team of Requestors & Approvers has own To-Do list Dashboard
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Slide 26 | © GXS, Inc.
Full Review and Approval ControlsFor Tesco team Members Associated with Request
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Slide 27 | © GXS, Inc.
Management Information DashboardsEnable Visibility, Address Bottlenecks that Hinder time to On-Board
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Slide 28 | © GXS, Inc.
Suppliers have a Simple Extensible Self-Serve Profile that is Created via Registration
Example Profile Structure:
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Slide 29 | © GXS, Inc.
Configurability
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Slide 30 | © GXS, Inc.
Configurability…contd
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Slide 31 | © GXS, Inc.
RollStream API Enables Seamless data Exchange with ERP / Procure-to-Pay
RollStream enables simple exchange of data with ERP and Document Management systems(Import / Export/Flat File)
Or
Seamless exchange using our enterprise API interface
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Slide 32 | © GXS, Inc.
Benefits
• Quickly reduced lead-time to register new suppliers by up to 60% and with end-to-end visibility• Now reached 70% – 12 days on average
• Deployed rapidly (approx. 12 weeks), compared to 9 to 12 months for traditional solutions
• Paperless best practice for Corporate Purchasing, now extended into other geographies
• Overall control and governance over the process• Total time, stage time, buyer level, data quality & visibility
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Slide 33 | © GXS, Inc.
Summary
• Supplier lifecycle management is an ideal candidate for cloud-based tools
• Tackling supplier registration workflow now more strategic ever
• Applies to indirect and direct categories of spend
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Slide 34 | © GXS, Inc.
Thank You for Your Participation!For More Information…
Contact GXS• Web: www.gxs.eu• Email: [email protected]• Phone: +44 (0)1932 776047