Altus Alliance
Feb 5, 2016
P2P
Readiness
&
Transformation
Agenda
• Introductions (5-10 mins)
• P2P Readiness (10-15 mins)
– Drivers
– Business Case
• P2P Transformation (10-15 mins)
– Platform Integration
– Order Method Transformation
• Q & A (5-10 mins)
INTRODUCTIONS
Presenter information
Kevin WallCountry Manager - Canada
cloudBuy
416-951-6326
• Founded in 1999
• Headquartered in UK
• Listed on UK AIM Stock Exchange since 2005
• Operations in UK, India, USA, Australia, HK, Singapore
• Canadian Sales
• cloudBuy e-commerce platform meets the highest security standard of the payment industry -PCI DSS Level 1 compliant
• 5-year partnership agreement with Visa AP (to the end of 2019)
• cloudBuy CEO, Lyn Duncan, profiled as cloudBuyrecognised as one of the 20 most valuable CloudComputing Companies
cloudBuy
cloudBuy Source-to-Settle modules
• Rationalize Spend– Spend Analytics
– Category Management
– Strategic Sourcing
– Contact Management
• Optimize Procurement– Supplier Management
– Purchasing
– Invoice and Payment
– Metrics, Reporting, Analytics
cloudBuy P2P
• Automated P2P platform
• Easy, approved ordering
• Automated invoice processing and payment
• Accurate and timely visibility in ERP
• Decrease order processing time and costs
• Reporting and Metrics
• innovative pricing model
cloudBuy Customers
• B2B focus
• Government, Public Sector, Education, Health
• 5,000+ organizations in marketplace
• 1M+ users
• 2.3M+ products available
cloudBuy / Altus / NAV
• Good business fit for customers
• P2P increases value of NAV investment
– Extend the reach of NAV in organization in new ways
– New key data shared with NAV increasing value of reports
– 2 way synchronization through order lifecycle
• Interesting for existing Altus / NAV customers
• Interesting for new Altus / NAV customers
P2P
READINESS
P2P Readiness Questions
• Is procurement an important part of your business?
• Are processes and policies no longer meeting business
needs (governance, compliance, costs, visibility,…)?
• Can you envision a better way?
• Is there a business case for change?
• Is there a way to change?
P2P Business Drivers
• Increasing demands from business units
• Increasing demands for compliance and legislation
• Simplified, approved purchasing– In accordance with governance and compliance framework
• Pressure for reducing cost of procurement
• Increasing need for financial visibility• Auditing
• Planning
• Optimizing
Common ‘as-is’ problems
• Disparate order methods
– Paper, vendor sell-side, others
• Manual steps throughout order lifecycle
• Different approval hierarchies
• Different/limited visibility in ERP
• Different receiving practices
• Different invoice matching strategies
• Difficult to get metrics
• Difficult to analyze and make decisions
• Difficult to measure vendor performance
Scenario 1 – Paper based orders
• Paper based ordering from approved vendors
• High transaction volume
• Low dollar value purchases
• Goals
– Simplify shopping and approving process
– High ERP visibility
– eInvoicing
– Automated matching (2/3/4 way matching)
– Automated vendor payment
Scenario 2 – Vendor Sell Side Stores
• Shoppers access vendor sell side store
• PR created in vendor store
• Approvers access vendor sell side store
• PO created in vendor store
• Order status and history tracked in vendor store
• Receipting usually not part of vendor store
• Orders/Invoices are somehow received in AP and
entered into ERP
Scenario 3 – ERP with manual processes
• Shopper creates PR (paper, spreadsheet, etc)
• ERP user data enters PR into ERP
• Approvers use ERP to approve
• PO created in ERP
• PO somehow sent to Vendor
• Receipting (ERP or other system)
• Invoices received from Vendor (paper, electronic)
• Matching Strategy applied (manual, other system, ERP)
• ERP commitments
• Vendor payment process
P2P Goals
• Easy, approved ordering
– Right vendors, right pricing and terms
• Automated invoice processing and payment
• Accurate and timely visibility in ERP
• Decrease order processing time and costs
• Reporting and Metrics
P2P Readiness - Business Case
• Extremely collaborative process
– Many stakeholders (procurement, AP, Fin, BU, Vendors)
– Blend of unique organization and best practices
• Identify and measure the as-is processes
• Define the desired ‘to-be’
• Create meaningful, relevant ROI model
• Realistic transformation plan
– Phases (an ordered sequence that delivers value)
– Schedules (realistic)
– Roll-out plans (realistic)
• Identify Risks
P2P
TRANSFORMATION
P2P Transformation Phases
• Integrate P2P with existing systems
• Prioritize order methods to move into P2P
• Move order methods sequentially (not parallel)
• Get order method rock-solid, and rolling out, before starting next
• Don’t under estimate the level of effort and schedule for roll out
Order Method Transformation
• As-is: How does it work today?
• To-be: How would we like it to work?
– Adhere to financial policy requirements
– Optimize (remove unnecessary steps)
• Map the ‘to-be’ into P2P flexible workflow
• Configure P2P workflow
• POC/Test this order method in P2P
• Make any necessary changes
• Sign-off
• Roll out to user community
P2P Transformation Phases (order methods)
Conceptual Workflow Stages
P2P workflow planning
• Flexible workflows to accommodate key variations:
– Shopper profiles
– Approval hierarchies
– Receipting
– Matching
– … and more
Q & A
FIN
Thank You!
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