2008 newell rubbermaid drives global procurement changes armed with powerful spending data

2011 SAP AG. All rights reserved. 1

Newell Rubbermaid Drives Global Procurement Changes Armed with

Powerful Spending Data

Troy Bohanon, Director Supply Chain IT, Newell Rubbermaid

SAP Spend Performance Management 3.0 Features & Roadmap Raj Alluri, Director Solution Management, SAP


SAP Sourcing

SAP SRM &

SAP ERP (w/ SAP Cart Approval

mobile app)

SAP Invoice Mgmt

by OpenText

SAP Supplier Self-Service

SAP Commodity Procurement

New!

SAP

Contract Lifecycle

Management

SAPs Procurement Portfolio Today

SAP

Supplier Lifecycle

Management

New!

SAP Spend

Performance

Management

SAP Data

Enrichment and

Classification

OnDemand

New!

Spend

Analytics

Supplier Management

Sourcing Contract

Management

Operational

Procurement

Invoice

Management

SAP Confidential

SAP eInvoicing for

Compliance

OnDemand

SAP SRM

Bidding Engine SAP Information Interchange OnDemand

SAP SRM

Central Contract

Management


Information is key for procurement performance

. . . and that requires

Enterprise-wide visibility to spend

and buying patterns

Complete, accurate, and reliable

data

Powerful information at the hands

of the business user

An ability to take action based on

profound decisions

To meet strategic business

goals, procurement needs to . . .

Know what and from whom

youre buying and how much youre spending

Identify savings opportunities

Develop strong supplier

relationships

Monitor compliance

If I can take the data from my spend analysis tool and understand

where it comes from and tie it to performance, then I can easily address

the opportunities to drive savings and reduce spend.

CPO, Large North American Insurance Company


Challenges for effective spend analysis

Partial solutions: master data management and extraction, transformation, and loading (ETL)

Expensive manual processes

Multiple vendor licenses

Cant quantify buying leverage without knowing supplier parent-child

Cant identify aggregate volume by category of spend

Cant optimize for common purchases across departments

Complex spreadsheets

Reliance on IT for reports

Complicated analysis tools

Analysis not integrated with transaction systems

GL

P-cards BW

Government watch lists

Supplier financial and

operational data

Disparate data sources Dirty data Difficult to access


SAP Spend Performance Management

Data integration Data enrichment and

classification Business analysis

Transaction knowledge Base

P-cards

GL/AP BW

Supplier data

Business compendium

Spend-specific data model


SAP Spend Performance Management Solution Overview

Customer Pain Points

No insight into Corporate Spend on a subsidiary level

No Performance Management to act on plan deviations

Description

Simplify and optimize spend management and performance

Automate and streamline spend management processes

Monitor continuously results of spend management

Value Proposition

Gain full spend visibility through automated data capturing and data accuracy processes

Increase Spend Under Management through collaboration and target alignment

Rapidly identify savings opportunities through finding savings potential and pro-active compliance monitoring

Reduce Supplier Risk through Cortera Risk Data and Reporting* and simulation

Outcome Opportunity

Efficient standard spend management processes

Increased Procurement business ROI

* add-on solution separately priced.

GL

P-Cards T&E

BI

ERP

Data Enrichment & Classification*

Spend Performance Management

at Newell Rubbermaid

Troy Bohanon

Procurement IT Director

Newell Rubbermaid

Our Business is Transforming

We are a global marketer of consumer and commercial products that touch the lives of

people where they work, live and play

Approximately 21,000 employees worldwide Becoming known for Brands That Matter Investing in consumer-driven branding Leveraging one global company to drive

innovation and achieve scale efficiencies

Strengthening our financials with top-line, bottom-line and gross margin increases

Expanding our global footprint

More than 90% of

US households have at least one Newell Rubbermaid product

Project Catapult

Multi-year SAP implementation with a vision of building and implementing a common corporate-wide software

system that supports our business

Business Unit Big Bang Implementation Approach Office Products October 2007 Home & Family April 2008 Tools & Hardware August 2009 Cleaning and Organization April 2010 Dcor August 2011 EMEA April 2012 LATAM - 2012/13 APAC - 2013

Single Global Instance

9

Business Challenges

General Gaining visibility into spending patterns Prioritizing procurement initiatives to balance costs, service and

risk of supply base

Organizational One Global Company Centralized sourcing with decentralized execution Leveraging NWLs purchasing power throughout the enterprise

Technology Expanding the Global Blueprint footprint while hitting

implementation, maintenance and release schedules

Providing tools to enable the changing organization Providing an integrated sourcing and procurement landscape

10

Why SAP Spend Performance

Management?

New Indirect Procurement Leadership High-Level Requirements

Single global spend analytics platform for indirect & direct materials Web-based application with built-in graphical capabilities Ability to drill into the data to investigate spending patterns /

scenarios

Quick implementation with standard integration to SAP Leverage existing content Ability to quickly create custom reports on-the-fly

Low adoption of the use of BEx Replacement of a Cognos Spend Cube from legacy source

systems

SPM Project Objectives

Fully exploit the power of information to leverage NWLs purchasing power, increase operational and manufacturing efficiencies, improve shareowner and customer value and enhance supplier relationships

Gain visibility to company-wide spending patterns and supply base

Establish key measures across critical success factors to manage spend

Identify hidden savings opportunities and supplier risk factors Launch procurement initiatives that meet strategic goals Consolidation of spend across multiple source systems Supplier base rationalization Streamline spend analysis processes

12

Scope

Technical Went live on SPM 2.1 and recently upgraded to SPM 3.0 First implementation where SPM leveraged existing BW/BI &

Portal environment

Automated data loading using BIs ETL capabilities Evaluated the 120+ standard SAP reports 39 standard reports / Over 200 Public Reports / 20+ Public

Dashboards

Spend slicing and dicing based on 68 dimensions and 36 measures

Spend aggregation based on 5 hierarchies- UNSPSC, Spend Type, Supplier Diversity, Profit Center, Product Hierarchy

Specific customizations to match Newell Rubbermaid profile

Scope (Continued)

Source System One ECC 6.0 All data since 10/2007 No Data Standardization & Enrichment (DSE) services No non-SAP sources

Initial Pilot 25 Users (Mostly Corporate and Group Based) North America

Currently over 100 Users

14

15

Newell Rubbermaid Standard Content

Groups folder contains standard Newell Rubbermaid

content. 6 Subfolders with dimension-specific reporting:

Direct Indirect Non PO Spend Payment Terms Price Optimization Spend By

SPM 3.0 Scope and Learning's

SCOPE Expanding usage beyond North America Technical Upgrade in Phase 1 Currently over 100 Users

Upgrade Experiences Compared to overall BW upgrade issues this is Walk in Park

and went very smooth

Ran into BI 4.0 and BW SP5 dependencies Worked with SAP to resolve issues and upgraded to BW SP5 with SPM 3.0 SP1

on March 15th

Users like New SPM 3.0 Usability enhancements and solution was accepted by user community without a formal Change

Management process.

16

SPM 3.0 Implementation Challenges

Web Dispatcher Issue Date Filters not applying to Newell Standard Reports Missing Configuration of Dimensions/Measures Detail Report Functionality Changes Adobe Flash Crashes

All Issues were resolved by SAP Development prior to Go Live!!

17

SPM 3.0 Benefits

Performance Improvements Application launches faster and reports run as fast or faster than SPM 2.1

Improved Security Capabilities SPM now allows for custom roles to better control folder and report access

for end-users.

Exclude Filter Option Requested feature that was unavailable in 2.1 means instead of having to select

many values for inclusion only one selection is required

Hierarchy Functionality Improved hierarchy views allow users to display multiple levels of profit center, UNSPSC,

and Spend Type Hierarchy

18

SPM 3.0 Phase 2 Features (Future)

Advanced Analysis Functionality What-if Analysis Spend Advisor Supplier Risk Analysis Business Synergy Analysis

Custom Workspaces Procurement Oriented Finance Oriented

Days Payable Analysis Analyze Days Payable Outstanding Review Trends in Delays in Payment

19

Critical Success Factors of Upgrade

Tight coordination between Newell Rubbermaid & SAP Solution Management and RIG

Rigorous governance through daily team calls, biweekly calls with SAP and milestone based steering committee meetings

Cohesive team consisting of BI development & production support, Security, Portal, Basis & Data base administration

Milestone based signoff by key stakeholders Top management commitment

20

2011 SAP AG. All rights reserved. 21 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Key Features Business Value

SAP Spend Performance Management Version 3.0

New UI Features/Enhancements

New landing page provides a role-based view of the applications version 3.0 features

Workspace concept allows grouping together of similar tasks

New reporting features improve ad-hoc analysis capabilities

Ability to adjust the text size in UI for better visibility

Provides business users an enhanced UI with more intuitive navigation to content

and new functionality within the

application

The ability to provide feature-based authorization to the applications new functionality will ease of navigation and

ensure maximum use of the features

version 3.0

New reporting functionality like scope context and enhanced charting provided

by BUI will add value to the ad-hoc

reporting and charting in version 3.0 of

the application


New Landing Page

Favorites

Recent Documents


User/Role Specific Workspaces

Users Can Organize their own Content (Reports, Dashboards,

BriefingBooks etc)


Expanding Tree Hierarchies

Visualize all hierarchy levels on single screen


Improved Folder Management

Browse all reports from single screen


Ability to Filter Out Values in Reports

Excluded values


SAP Spend Performance Management Version 3.0 What-if Analysis


Perform what-if simulations within SAP BusinessObjects Spend Performance

Management

Provides a framework based on variables (global, local) and formulas

Provides ability to perform business simulations

Empower procurement end user to make improved decisions during the

sourcing process

Build and compare different sourcing scenarios

Manipulate the results to identify the most beneficial scenario

Some examples for what-if analysis are

Buy now vs. buy later

Ability to analyze savings potential based on different payments terms

Buy local vs. buy global


SAP Spend Performance Management Version 3.0 What-if Analysis

Example: Total Landed Costs Simulation

Local Variables


SAP Spend Performance Management Version 3.0 Savings Analysis Reporting


Calculate period over period savings at the Item or category level

Savings formula is variance of selected price measure between selected time

periods x quantity measure for current

time period

Compare spend for a specific Item or category over an end-user-defined time

period

Calculate the savings gained from previous sourcing activities

Report can be saved and added to briefing books for presentation to

senior management or LoB

stakeholders or performance reviews


SAP Spend Performance Management Version 3.0 Savings Analysis Reporting

Local Variables

Global Variables

Calculate period over period savings at the Item or category level


SAP Spend Performance Management Version 3.0 Business Synergy Reporting


Analyze common spend between management organizations (business

units, divisions, plants etc. at the same

level) for a specified time period (cross

tab view)

Review spend across an organization to identify suppliers that are common

between divisions

Identify opportunities for global contracts that cover the entire spend,

resulting in cost savings


SAP Spend Performance Management Version 3.0 Business Synergy Reporting: Analyze Common Spend


SAP Spend Performance Management Version 3.0 Payment Analysis Reporting


Perform a DPO analysis by grouping the DPO into DPO groups and reporting

on payment amounts associated with

each group

Report on the supplier by DPO group

Navigate to the payments detail report

Analyze effectiveness of the organizations payment operations

Gain visibility into utilization of payment terms and leverage during negotiation

with suppliers

Navigate to payments detail report to analyze transaction level payment

information from source systems


SAP Spend Performance Management Version 3.0 Payment Analysis (DPO-Days Payable Outstanding)

Fast access to additional payment

analysis reports

Report on the supplier by DPO group for better

insight


SAP Spend Performance Management Roadmap

First Release as xAPP

Spend Analysis

Spend Analytics

1.0/2.0

2011 2010

Spend Performance Management

Global Support Multi Currency

E sourcing Integration

Enhanced Time and Trend Analysis

Language support (English, German, Czech, Spanish,

French, Hungarian,

Japanese, Portuguese,

Russian and Simplefied

Chinese

SPM2.1

What if Analysis and Simulation Framework

Business Synergy, Savings and Payment Analysis

New UI features and enhancements

Language support(Korean, Danish, Dutch, Finnish, Italian, Slovak)

2008/2009

Support of HANA as DB Platform (Optional)

Improved UI and Data Load performance

Architected Data Mart with BW7.3 as EDW

Innovation without Disruption

SPM3.0

HANA as DB SPM3.0

2012

Q2

This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Enhanced Integration with

LoB procurement applications

Integration with SAP BusinessObjects GRC and SAO BusinessObjects EPM applications

Predictive analytics capabilities

Additional integration with SAP BusinessObjects BI tools

Enhanced mobile scenarios

Future Versions

(Planned)

>=2013

Q&A

Thank You

Presenters:

Troy Bohanon, Director Supply Chain IT, Newell Rubbermaid

Raj Alluri, Director Solution Management, SAP

2008 newell rubbermaid drives global procurement changes armed with powerful spending data

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