NETWORKING EVENTS - SIG - Sourcing Industry Group Zycus 6232016 Webinar.pdf · which 43% are...
Transcript of NETWORKING EVENTS - SIG - Sourcing Industry Group Zycus 6232016 Webinar.pdf · which 43% are...
The SIG Webinar will begin shortly. Once the webinar begins, the sound
will come from your computer speakers.
In the meantime, please take a look at the upcoming SIG networking events
listed on the right side of your screen and plan to join us if you are in one of
these cities this fall.
NETWORKING EVENTS
GLOBAL SUMMITS
Oct 18-20 – Carlsbad, CA
SYMPOSIUMS
Sep 13 – SF Bay Area, CA
Sep 29 – New York, NYOct 4 – Toronto, CAN
REGIONAL ROUNDTABLES
Sep 27 – Cincinnati, OH
Nov 3 – Pittsburgh, PA
Nov 9 – London, UK
For more information and to register for all SIG events:www.sig.org
RECENT POSTINGS
The SIG Career Network is bursting with opportunities.
New jobs are posted daily by some of the best known global
companies in the world for those
seeking careers in sourcing, outsourcing, procurement and
related functions.
For more information go to: www.sig.org/career-center.php
NEW to the Career Network!
• NetApp – posted June 9:• Global Sourcing Partner
• Whirlpool – posted June 3:• Sourcing Manager – Tier 2 Electronics• Strategic Sourcing Specialist – Cooling• Strategic Sourcing Specialist – Heating• Senior Sourcing Specialist – Delivery• Senior Sourcing Specialist - Indirect
• FedEx – posted June 3:• Sourcing Advisor
• Gap, Inc. – posted June 2:• Category Manager I – Marketing• Category Manager I – Merchandise• Category Manager I – Software• Category Manager II – Outsourcing• Category Manager II – Packaging• Category Manager II - Digital Sourcing
• Guidewell/Florida Blue – posted June 1:• Sourcing Specialist – Delivery• Sourcing Specialist - BPO
• Ross Stores – posted May 19:• Senior Analyst, Strategic Sourcing
special member
benefits
• 6 months of free buy-side
access to the Vendor Evaluation & Assessment
Tool (NEAT)
• 2 free Market Intelligence
Reports• 15% discount on direct
hire placement fees
For more information, go to: http://sig.org/member-discounts
• $20,000 discount on
Enlighta Govern or Risk pilot• 5 relationship assessment
surveys• 20% discount on
assessment or implementation services
• 20% discount on research
reports on Chinese cities, technology parks, providers
and advisory services
• 50% discount off fees
associated with GSOS Health Check
• 10% discount on all
annual subscriptions• Complimentary 1-hour
consulting session• SkillsVillage membership
and software test drives
bit.ly/SIGLinkedIn @SIGinsights bit.ly/SIGfacebookbit.ly/SIGYouTube
Join the discussion in SIG’s Peer2Peer Resource program too!
Stay connected with other SIG members through various social media channels
SOCIAL MEDIA
bit.ly/SIGBlog
New Topic Each Week8:00 am PST
11:00 am EST4:00 pm GMT5:00 pm CET
Upcoming Free SIG Webinars:
June 30, 2016 Solution Deep Dive: Analytics – Identify Opportunities and Eliminate BottlenecksPresented by Coupa Software
July 20, 2016 Outsource Talks – Episode 5Presented by Outsource
July 28, 2016 The Rise of the Analytical CPOPresented by Tamr
For more information and to register for all SIG events:www.sig.org
Upcoming Town Hall Teleconference:
July 13th
Unpacking Collaborative Bidding: Harnessing the
Potential of Supplier Collaboration While Still Using a
Competitive Bidding Process
Presented by:
Kate VitasekUniversity of Tennessee
Calendar of Town Hall TeleconferencesTaking place at 1:00 pm Eastern on the following dates:
February 10 August 10
March 9 September 14
May 11 October 12
June 8 November 9
July 13 December 14
For more information and to register for all SIG events: www.sig.org
SIG Town Hall Teleconferences
bring a small group of buy-side ONLY attendees together for a facilitated discussion on top-of-mind issues in an open-mic, private conversation.
Town Hall Teleconferences are NOT recorded.
Upcoming SIG Events:
15 Jun – New York, NY*10-11 Aug – Mooresville, NC
13 Sep – San Francisco Bay Area
27 Sep – Cincinnati, OH
29 Sep – New York, NY
4 Oct – Toronto, CAN
3 Nov – Pittsburgh, PA
9 Nov – London, UK
Upcoming SIG/Outsource/Partner Events:
4-5 Oct – Zurich, CH – GBS Roadmap Series
15-16 Nov – Copenhagen, DK – GBS Roadmap Series17-18 Nov – London, UK – Challenge the Future Awards
For more information and to register for all SIG events:www.sig.org
Regional Events provide education and local networking for members and invited non-member corporate users. Events vary in terms of length, topics, etc. For more information, visit the SIG website
SIG Global Summits are semi-
annual events with 350-450
decision-makers in attendance
• Non-commercialized• Hundreds of industry
thought leaders
• 68% buy-side
• 4-5 keynote sessions• Global brands
• 3 days of networking
• CPO Roundtables
• Over 50 breakout sessions
67% of delegates are
director level or above, of
which 43% are VP/C-level
Recent speakers include:
For more information go to: www.siguniversity.org
Online learning environment with multiple eLearning options: Virtual Classroom, Self-Paced and Custom Solutions
Sourcing and Governance certifications with Professional and Executive level courses
Modules with lessons, formative assessments, summative testing and final proctored exam
Certification good for 5 years
Early enrollment options that can save you up to 25%
Certified Sourcing Professional starting June 27, 2016!Certified Governance Professional starting July 25, 2016!
For more information go to: sig.org/student-outreach.php
Partnering with Universities
Introducing students to seasoned supply chain executives
Sharing thought leadership with students in class, SIG University courses and at SIG events
Giving access to internship and job postings on the SIG Career Network
Allowing students to get real world insight into supply chain careers
Finding tomorrow's supply chain professionals today
Show Me The Synergies – The
S2P Suite Story
Presenter
Richard Waugh
V.P. Corporate Development
Zycus
Richard has an extensive background in B2B E-
Commerce. He helped launch GE's Trading Process
Network (TPN), the first on-line Marketplace for Sourcing
and Procurement. He was also Co-Founder of
B2eMarkets, one of the first SaaS (Software as a
Service) Sourcing Suite providers and later covered the
Supply Management market as an Industry Analyst for
the Aberdeen Group.
Presenter
Sanjeet Calangutcar,
Senior Solutions Consultant, Zycus Inc
With 7 years of domain expertise in product marketing, solution sales and consulting with Zycus, Sanjeet brings a
sound knowledge of the business applications of the Zycus Procurement Suite. He works out of their Chicago office
and specializes in Procure-to-Pay engagements including new customer acquisitions and solutions delivery across
the US. Sanjeet holds a degree in Chemical Engineering from the University of Mumbai and is also currently working
on finishing his CPSM certification with ISM.
Zycus Comprehensive Solution Suite
Agenda
The Value of Integrated S2P
The Business Case
The Use Case(s)
Case Studies
Synergy Scenarios
Best Practices in Planning for S2P Deployment
Sequencing/Phasing
Resource Planning
Change Management
Q&A
The Value of Integrated Source-to-Pay (S2P)
Gartner’s August 2015 report, “IT Market Clock for Procurement and Sourcing Solutions, 2015,” cites a
key finding of “buyer interest in broad suites to reduce integration requirements, simplify architecture
and reduce the number of solution vendors to manage.”
All are key drivers for an end-to-end suite, but are there other synergies
that justify the all-in-one approach based on an incremental ROI?
ComponentCurrent Incremental
Improvement
Target Performance Incremental Savings
Incremental Spend Under Management (SUM) 10% 800% 90%Spend Sourced 44% 41% 62%
Sourcing Savings on Incremental Spend Sourced ($) $5,268,000 372% $24,843,600 $19,575,600 Subtotal Incremental Sourcing Savings $19,575,600Contract Compliant Spend 50.0% 33% 66%
Incremental Contract Compliant Spend Savings $6,000,000 33% $7,956,000 $1,956,000
Supplier Management Productivity Savings 0% 20% 20% $50,000
Supply Risk Mitigation 0.30% 50% 0.150% $900,000
Total Savings $22,481,600
Business Value
The Business Case
Integrated Source-to-Pay Suite Value Proposition
Increase SUM – Discover
Savings Opportunities
Higher Sourcing
Throughput & Savings ID
Rationalize Supply Base –
Increase Spend w/Preferred
Visibility & Compliance to
Preferred Agreements
Reduce/Eliminate Maverick
Purchases
Capture Prompt Pay
Discounts/P-Card Rebates
Reduce Transaction
Process Costs
Track Finance- Approved
Savings
The S2P Synergies
Spend Analysis
Sourcing
Project
Management
Contract
Management
Supplier
Performance
Supplier
Information
Management
Savings
Management
• Identify Savings Opportunities
• Initiate and Track Sourcing Projects
• Populate & Finalize Agreements with Negotiated Ts and Cs
• Establish Visibility and Compliance at point-of-use, e.g. Requisition
• On-board Contracted Suppliers
• Enable for Sourcing, P2P, Contracts, Scorecards
• Drive compliant Requisitions/Orders properly approved, coded and classified for spend analytics
• Route off-contract reqsto Sourcing for quote
• Document Finance-approved Savings
• Establish new spend baseline/future savings targets
• Engage Stakeholders
• Optimize Best Value Sourcing Decisions
P2P
S2P Synergies – The Best-in-Class Advantage
Spend Analysis
Sourcing
Project
Management
Contract
Management
Supplier
Performance
Supplier
Information
Management
Savings
Management
Spend Under Mgmt.BIC 90% - +37%
P2P
Spend Sourced.BIC 62% - +18%
Spend Contract CompliantBIC 66% - +14%
Transactions Contract CompliantBIC 74% - +14%
Suppliers EnabledBIC 37% - +10%
SavingsBIC 6.7% - +1%
+$1M per $100M Spend
Source: Ardent Partners, “CPO Rising 2015: The Agility Agenda”
Cumulative Benefits of Integrated Source-to-Pay
Spend Analysis SourcingContract
Mgmt. ProcurementAccounts
Payables
Enterprises that leverage spend analysis into their sourcing projects save, on average, between 24% -
41% more per project
Eliminating any sourcing/contract process gap can reduce savings leakage by up to 38%
Best-in-Class enterprises report compliance rates that are 20%+ superior
Linking and automating the P2P process can reduce invoice cost by up to 80%
Source: Ardent Partners, “CPO Rising 2015: The Agility Agenda”
Key Benchmarks
Spend Contract Compliant
All Others Best-in-Class
51.7% 66.3%
Spend Under Mgmt.
All Others Best-in-Class
53.1% 90%
Spend Sourced
All Others Best-in-Class
43.9% 61.8%
Savings
All Others Best-in-Class
5.8% 6.7%
Source: Ardent Partners, “CPO Rising 2015: The Agility Agenda”
Searchable Contract Repository
All Others Best-in-Class
53.9% 68.9%
Transactions Contract Compliant
All Others Best-in-Class
59.7% 73.8%
SAMPLE: Business Case Opportunity Analysis
Incremental Sourcing Savings
$19.6M (H*)
Supply Management
Productivity/Supply Risk
Reduction
$.9 M (S**)
Contract Leakage Reduction
Savings
$2.0M (H*)
Maximize Prompt Pay
Discounts/P-Card
Rebates
$.5M (H*)
Reduce P2P
Transaction Process
Costs
$1.9M (S**)
$24.9M Potential Savings4.15% of $600M Sourceable Spend
Hard (H*) $Savings =$22.1MSoft (S**) $Savings = $2.8M
S2P Case Studies – High Tech Manufacturer
Sourcing
• Needed to drive cost reduction and gross margin improvement during a period of intense market pressures
• Mandated procurement headcount reduction to Increase productivity – despite head count below industry benchmarks –necessitated process automation to increase productivity
Created a “Single Version of the Truth” for Spend Analytics to identify supplier rationalization and sourcing opportunities and payment term rationalization to Net 60
Deployed easy-to-use, intuitive eSourcing platform to power all RFx activities driving 15% higher adoptionover previous toolset, increasing sourcing throughput and savings achievement
Mitigated supplier & financial risk by rationalizing the supply base by 30% and preventing supply chain disruptions
Boosted Savings per Procurement FTE 26% while lowering headcount 23%
Standardized Supplier Performance Measurement with 100% adoption of tool and methodology for tracking and reporting supplier KPIs
Spend Analysis
Supplier Performance
Key S2P Synergy:
S2P Case Studies – Aerospace & Defense
• Needed to streamline complex Sourcing and Contracting process involving very large bid packages (10K+ line items) and 000’s of suppliers
• Mandate for SOX compliant contracting process with standard clauses, approval audit trails, and clause-level user access controls for confidential/sensitive data
Cut sourcing cycle time 65% by enabling complex what-if bid/cost analysis for large projects in single, on-line sourcing events
Implemented standardized contract authoring process utilizing 40+ standard templates and 10+ approval workflows approved by Legal and compliant with SOX and other regulatory requirements
Integrated Spend Analytics to Contracts and Supplier Performance Measurement to automatically update contract utilization and supplier KPI scorecard metrics
Spend
Analysis
SourcingSupplier
Performance
Key S2P Synergy:
Contract
Management
S2P Case Studies – Private Insurer
Supplier
Information
Management
P2P
• No single source of truth, ad-hoc supplier on-boarding process and incomplete supplier details
• Paper-based purchase-to-pay and high “No PO” non-compliant spend
• Communicated mandatory portal program participation for initial on-boarding of top 500 suppliers
Empowered end-user adoption, migrating from centralized to de-centralized purchasing and strengthening compliance with a “No PO – No Pay” policy
Reduced Vendor Management FTE support by 87% with self-service supplier portal for registration, on-boarding, as well as invoice status tracking
Automated 3-way Invoice Matching to save 40% of time spent by AP on invoice processing and exception management
Shaved 1/3 off invoice approval cycle times enabling 1% savings for prompt pay discounts on one-third of total spend
Key S2P Synergy:
The Use Case(s)
Contract-to-Source
Req-to-QuoteReq-from-Contract
Source-to-Contract
Spend-to-Source
Every spend
opportunity can be
converted to a
sourcing event
Spend to Sourcing
Sourcing to Contract
One-click contract creation from awarded sourcing events
P2P To Contract
Contracts can be
accesses during
requisition for
visibility and
compliance
P2P To Sourcing
Requisitions can be
sent to sourcing to
generate quotes
Contract to Catalog
Contract-to-catalog
links allows
organizations to buy
preferred items from
contracted suppliers
Overview of Source-to-Pay Integration Touchpoints
Request Management
Project Management
Spend Analyitcs Sourcing ContractsSupplier
ManagementSupplier
Performance
eProcurement eInvoicing
Request and
track Contract
creation
Create events
from requests
Create, track
and manage
sourcing events
Review past
performance before
inviting suppliers
Create
sourcing
projects
Convert PRs
to RFP and
award POs
Validate contract terms
for catalogs, PO to
contract matching
Update
preferred
vendor lists
Refer master
data for
creating
invoices
Review
supplier
history
Create, track
and manage
contracts
Transfer
Attachments, T&Cs,
Pricelist for
Contract creation
Create and invite
potential
suppliers
Control Layer
Strategic Layer
Operational Layer
Refer
supplier
data
Refer supplier scores
before ordering
Supplier Network
Synergy Scenarios
SSO(S)QBR
ERP TCO
QBR – Virtual and Mobile
The Backstory:
A Quarterly Business Review with a strategic supplier often requires days or weeks to prepare and schedule for a day or half–day face-
to-face meeting or web conference, causing delays and lost productivity to gather data across multiple, disparate systems and format
PPT charts and graphs
Scenario:
Real-time, mobile access to consolidated supplier data across the entire S2P process, enables strategic supplier business reviews
anytime, anywhere.
SSO - Procurement
The Backstory:
Organizations with disparate, “point” solutions across different Sourcing and Procurement functions often fail to achieve the ir user
adoption goals because each application module has a different log-in, look and feel, and separate underlying data structures
Scenario:
Integrated S2P suite allows users to log-in once, and seamlessly transition from one phase of the Sourcing and Procurement process to
another, creating rapid adoption and one “version of the truth.”
SSO - Suppliers
Yourcompany.com/zycus_suppliernetwork
MY PERFORMANCE
Task and Milestone
My Workbench
MY ORDERS
View Orders
MY CONTRACTS
View Contracts
MY CATALOGS
Upload New Catalog
View Catalogs
MY INVOICES
Create PO Invoices
Create Non PO Invoices
MY PAYMENTS
View Payments
SUPPLIER MANAGEMENT
Performance Reports
Development Report
ESOURCING
Respond to Events
View Event Score
The Backstory:
Suppliers are suffering from “portal fatigue” – not only a different portal for each buying customer, but for those customers with multiple
disparate applications for S2P, multiple portals for a single customer, sometimes incurring incremental fees to transact with customers
on business they already have
Scenario:
A single portal interface – with no fees to the supplier – makes it possible for suppliers to log-in once, and enter data once, across a
range of collaborative activities with multiple buying customers.
ERP – Integration and Optimization with S2P
S2P SuiteClient ERP
Client Email
Suppliers
Client A/P
Purchase Orders
MASTER DATA
Categories, GL,
Budgets, UOMs,
Users, Suppliers, etc.
Requests
Purchase Orders
MASTER DATA
Categories, GL,
Budgets, UOMs,
Users, Suppliers, etc.
Purchase Orders
Invoices
Invoices
Payments
Approved Invoices
Receipts Receipts
RequestorInvoices
1
3
4
7
8
2
6
The Backstory:
Buying organizations have made significant investments in ERP(s) as their “System of Record.” Integration between the S2P Su ite and
the ERP system is key to maintaining data integrity and optimal performance across the systems infrastructure.
Scenario:
An effective S2P-to-ERP Integration approach entails the
following:
APIs with available real-time, web-services or file-based
integration
Synchronization of supplier data between ERP Supplier
Master and S2P Suite
Archiving of transactional data in both S2P Suite and
ERP as “System of Record”
Updating S2P Supplier Portal with payment status from
Client A/P to enable self-service supplier invoice and
payment tracking
TCO
The Backstory:
Total Cost of Ownership for Sourcing and Procurement applications increases significantly if approached piecemeal, i.e. by licensing
individual modules separately, buying organizations pay more in total for software than if they leveraged their buying power across the
entire suite purchase, and incur added coordination and integration costs to manage multiple relationships and platforms.
Scenario:
Gartner offers the following recommendations for potential suite buyers:
■ Be clear and precise regarding the value you expect to get out of an
integrated S2S suite.
■ Make sure that all modules in the suite are mature enough to meet your
needs, and investigate upstream and downstream solutions independently to
ensure that requirements are met.
■ If you decide on a suite, negotiate all the modules at the same time, but don't
implement (or pay) all at once
Source: Gartner
Best Practices in Planning for S2P Deployment
Gather Benchmark Data
Prioritize Investment/ Phasing Strategy
Develop Implementation Project Plan
Allocate Internal Resources
Adopt Change Management Plan
Monitor Progress
Plan for Subsequent Roll-Out Phases
Build Business Case
Best Practice S2P Technology Sequencing
Spend analysis E-Sourcing SBM
Map external spendNegotiate Strategic
AgreementsManage compliance
Manage Supplier
Relationships
Key Success Factors• Identify and use data from relevant
transaction systems
• Deduplicate and classify
• Assign ownership of spend categories
Key Success Factors• Promote a culture of control and
responsibility
• Involve stakeholders in category plans,
work flow and templates
Key Success Factors• Build a pipeline of cost reduction
opportunities
• Create a center of excellence
• Make use of e-sourcing mandatory
Key Success Factors• Segment supplier base to rightsize
management
• Deploy solutions that support supplier
collaboration
CLM
VMSP2P
Source: Gartner “Best Practices for Sequencing Procurement Solution Investments” December 2014
Sample S2P Implementation Timeline
P2P
Spend
Analysis
SupplierGlobal Platform Ready
Configuration, Templates, Data Upload, Training
Global Adoption
Supplier Onboarding
Month 1 Month 2 Month 3 Month 5Month 4 Month 6 Month 7 Month 8 Month 9 Month 10
Sourcing
ContractRepository
Configuration, Data
Upload
Live Event & Adoption
Global Adoption
K
I
C
K
O
F
F
Gather
Require-
ments
Authoring
Templates, Workflow
Configuration, Templates, Data Upload,
Training
Global Platform Ready
Global Platform Ready
Configuration, Templates, Data Upload, Training
Configuration, Integration, Training
Global Platform ReadyGlobal Adoption
Timeline varies based on # BUs, geographies, ERP source systems, suppliers and users
Client Project Team Resources Required
Role Description:
• Act as single point of contact (SPOC)
• Co-ordinate with internal stake-holders
Time Requirement
During Deployment:
• Dedicated resource
During Production
• .5 FTE for Ongoing System AdministrationProgram
Manager/Business Lead
IT Project Lead
Role Description
• Provide access and support to ERP
• Leads Integration design/test
Time Requirement
During Deployment:
• .5FTE
During Production:
• 1 day per month
Subject Matter
Experts (SMEs)
Role Description:
• Define As-Is process/To-Be requirements
• Review and test (UAT) configured system
Time Requirement
During Deployment:
• 1-2 weeks requirements, UAT, training
During Production:
• 1 day per quarter for new requirements
SMEs Include:
• Sourcing/Procurement
• Finance
• Legal
• A/P
• Others e.g. IT, Marketing etc.
Implementation Best Practices - Change Management
Executive sponsorship a must – should include executive sponsor on project
steering committee
Key stakeholders involved up-front in solution selection and configuration
decisions, and updated throughout deployment process
Brand the project and promote regularly
Showcase benefits achieved and address “What’s in it for me?” to
stakeholders, as well as benefit to company
Train habitually – not a single training class, but also ongoing refreshers with
self-paced training and real-time chat support
How can we help you?
Thank You