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The Four Pillars of Sourcing Success
Presenter ndash Andrew Bartolini
Chief Research Officer
Ardent Partners
Recognized expert in sourcing procurement AP and
supply management Andrew has been named a ldquoPro to
Knowrdquo by Supply and Demand Chain Executive three
times Andrew has been an industry veteran for over 15-
years and has benchmarked thousands of enterprises
across all facets of their supply management operations
Andrew has held leadership roles in sales marketing
and services at Ariba and Commerce One He has
experience in strategic sourcing business process
transformation and software implementation
Background also includes consulting and investment
banking
Panelist ndash Richard Waugh
VP Corporate Development
Zycus Inc
Richard Waugh VP Corporate Development at
Zycus Inc has an extensive background in B2B E-
Commerce going back to his early career at GE
where he helped launch GES Trading Process
Network (TPN) the first on-line Marketplace for
Sourcing and Procurement in the mid 1990s He
was 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
Panelist ndash Sonia Jimenez
Category Manager- Technology
E amp J Gallo Winery
Ms Jimenez led the development and
implementation of E amp J Gallorsquos Procurement
Academy as well as the companyrsquos Sourcing and
Spend Analytics tool In addition she leads two
categories IT and Corporate Services In past years
she has rotated in several positions within Supply
Chain New Products and IT
She received her MBA from Saint Maryrsquos College of
California and a dual Bachelor of Arts Degree in
International Business from San Diego State
University and Universidad Autoacutenoma de Baja
California Meacutexico
5
STATE OF STRATEGIC SOURCING 2015 THE FOUR
PILLARS OF SOURCING
Introduction
The State of Strategic Sourcing
Best-in-Class Sourcing
The Four Pillars of Strategic Sourcing
Strategies for Success
Copyright copy 2015 - Ardent Partners Ltd
6
INTRODUCTION
7
INTRODUCTION
Copyright copy 2015 - Ardent Partners Ltd
Andrew Bartolini Chief Research Officer
Analyst firm focused on supply management
Research news amp analysis for CPOs and
procurement executives
wwwcporisingcom
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Presenter ndash Andrew Bartolini
Chief Research Officer
Ardent Partners
Recognized expert in sourcing procurement AP and
supply management Andrew has been named a ldquoPro to
Knowrdquo by Supply and Demand Chain Executive three
times Andrew has been an industry veteran for over 15-
years and has benchmarked thousands of enterprises
across all facets of their supply management operations
Andrew has held leadership roles in sales marketing
and services at Ariba and Commerce One He has
experience in strategic sourcing business process
transformation and software implementation
Background also includes consulting and investment
banking
Panelist ndash Richard Waugh
VP Corporate Development
Zycus Inc
Richard Waugh VP Corporate Development at
Zycus Inc has an extensive background in B2B E-
Commerce going back to his early career at GE
where he helped launch GES Trading Process
Network (TPN) the first on-line Marketplace for
Sourcing and Procurement in the mid 1990s He
was 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
Panelist ndash Sonia Jimenez
Category Manager- Technology
E amp J Gallo Winery
Ms Jimenez led the development and
implementation of E amp J Gallorsquos Procurement
Academy as well as the companyrsquos Sourcing and
Spend Analytics tool In addition she leads two
categories IT and Corporate Services In past years
she has rotated in several positions within Supply
Chain New Products and IT
She received her MBA from Saint Maryrsquos College of
California and a dual Bachelor of Arts Degree in
International Business from San Diego State
University and Universidad Autoacutenoma de Baja
California Meacutexico
5
STATE OF STRATEGIC SOURCING 2015 THE FOUR
PILLARS OF SOURCING
Introduction
The State of Strategic Sourcing
Best-in-Class Sourcing
The Four Pillars of Strategic Sourcing
Strategies for Success
Copyright copy 2015 - Ardent Partners Ltd
6
INTRODUCTION
7
INTRODUCTION
Copyright copy 2015 - Ardent Partners Ltd
Andrew Bartolini Chief Research Officer
Analyst firm focused on supply management
Research news amp analysis for CPOs and
procurement executives
wwwcporisingcom
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Panelist ndash Richard Waugh
VP Corporate Development
Zycus Inc
Richard Waugh VP Corporate Development at
Zycus Inc has an extensive background in B2B E-
Commerce going back to his early career at GE
where he helped launch GES Trading Process
Network (TPN) the first on-line Marketplace for
Sourcing and Procurement in the mid 1990s He
was 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
Panelist ndash Sonia Jimenez
Category Manager- Technology
E amp J Gallo Winery
Ms Jimenez led the development and
implementation of E amp J Gallorsquos Procurement
Academy as well as the companyrsquos Sourcing and
Spend Analytics tool In addition she leads two
categories IT and Corporate Services In past years
she has rotated in several positions within Supply
Chain New Products and IT
She received her MBA from Saint Maryrsquos College of
California and a dual Bachelor of Arts Degree in
International Business from San Diego State
University and Universidad Autoacutenoma de Baja
California Meacutexico
5
STATE OF STRATEGIC SOURCING 2015 THE FOUR
PILLARS OF SOURCING
Introduction
The State of Strategic Sourcing
Best-in-Class Sourcing
The Four Pillars of Strategic Sourcing
Strategies for Success
Copyright copy 2015 - Ardent Partners Ltd
6
INTRODUCTION
7
INTRODUCTION
Copyright copy 2015 - Ardent Partners Ltd
Andrew Bartolini Chief Research Officer
Analyst firm focused on supply management
Research news amp analysis for CPOs and
procurement executives
wwwcporisingcom
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Panelist ndash Sonia Jimenez
Category Manager- Technology
E amp J Gallo Winery
Ms Jimenez led the development and
implementation of E amp J Gallorsquos Procurement
Academy as well as the companyrsquos Sourcing and
Spend Analytics tool In addition she leads two
categories IT and Corporate Services In past years
she has rotated in several positions within Supply
Chain New Products and IT
She received her MBA from Saint Maryrsquos College of
California and a dual Bachelor of Arts Degree in
International Business from San Diego State
University and Universidad Autoacutenoma de Baja
California Meacutexico
5
STATE OF STRATEGIC SOURCING 2015 THE FOUR
PILLARS OF SOURCING
Introduction
The State of Strategic Sourcing
Best-in-Class Sourcing
The Four Pillars of Strategic Sourcing
Strategies for Success
Copyright copy 2015 - Ardent Partners Ltd
6
INTRODUCTION
7
INTRODUCTION
Copyright copy 2015 - Ardent Partners Ltd
Andrew Bartolini Chief Research Officer
Analyst firm focused on supply management
Research news amp analysis for CPOs and
procurement executives
wwwcporisingcom
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
5
STATE OF STRATEGIC SOURCING 2015 THE FOUR
PILLARS OF SOURCING
Introduction
The State of Strategic Sourcing
Best-in-Class Sourcing
The Four Pillars of Strategic Sourcing
Strategies for Success
Copyright copy 2015 - Ardent Partners Ltd
6
INTRODUCTION
7
INTRODUCTION
Copyright copy 2015 - Ardent Partners Ltd
Andrew Bartolini Chief Research Officer
Analyst firm focused on supply management
Research news amp analysis for CPOs and
procurement executives
wwwcporisingcom
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
6
INTRODUCTION
7
INTRODUCTION
Copyright copy 2015 - Ardent Partners Ltd
Andrew Bartolini Chief Research Officer
Analyst firm focused on supply management
Research news amp analysis for CPOs and
procurement executives
wwwcporisingcom
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
7
INTRODUCTION
Copyright copy 2015 - Ardent Partners Ltd
Andrew Bartolini Chief Research Officer
Analyst firm focused on supply management
Research news amp analysis for CPOs and
procurement executives
wwwcporisingcom
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
8
March 29 amp 30 mdash Boston MA
Join us for Ardent Partnersrsquo CPO Symposium
This exclusive event promises valuable networking
opportunities and the interactive exchange of ideas
Donrsquot Miss Out on the Procurement Event of the Year
Visit httpeventscporisingcom for more details
Copyright copy 2015 - Ardent Partners Ltd
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
9
Research Report
Goal (I) Capture the strategies performance and intentions of Chief
Procurement Officers in 2015 (and beyond)
Goal (II) Present a clear and comprehensive view of the ldquoState of Procurementrdquo
Goal (III) Identify the strategies and levers that drive Best-in-Class results
Approach
Utilize a web-based survey to capture responses from 330 CPOs and other
procurement executives
Interview 26 leading CPOs (and ex-CPOs) to add context and understand
critical and emerging trends
Leverage experience and orientation of a leading analyst team
RESEARCH PROCESS
Copyright copy 2015- Ardent Partners Ltd
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
10
TODAYrsquoS PRESENTATION
Report Demographics
330 Respondents
o 72 VP or Director-level
o 82 work in procurement
o 63 from large enterprises
o 61 North America 26 EMEA
o 28 industries
o Interviewed 16 CPOs
Copyright copy 2014- Ardent Partners Ltd
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
11
THE STATE OF STRATEGIC SOURCING
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
12
THE CPOrsquoS TOP TWO PRESSURES IN 2015
Copyright copy 2015 - Ardent Partners Ltd
51
2725
2118
Find more savings Increase overalleffectiveness and
influence
Better communicatevalue and
performance
Increase thepercentage of spendunder management
Better alignprocurement with
business goals andneeds
copy Ardent Partners - 2015
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
13
THE TOP SOURCING CHALLENGES IN 2015
41
36 3533
Challenges in aligningprocesses and systems
StaffTalent constraints Lack of technologyinfrastructure (ietechnology gaps)
Budget constraints
copy Ardent Partners - 2015
Copyright copy 2015- Ardent Partners Ltd
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Poll Question 1
What are the key focus areas and challenges for your
organization in 2015 for Procurement
1 Savings amp Cost Reduction
2 Operational Efficiencies
3 TalentPersonnel
4 Technology Infrastructure
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Challenges amp Focus Areas for 2015
Source Transforming Procurement Performance of Food amp Beverage Industry
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
16
THE CPOrsquoS TOP DRIVERS FOR FUTURE SUCCESS
Copyright copy 2015 - Ardent Partners Ltd
44
48
53
53
66
Better team execution
Better communication plan
Larger andor more talented staff
New (or improved) technology
Earlier engagement on sourcingopportunities
copy Ardent Partners - 2015
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
17
TOP SOURCING TEAM CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
42
47
60
62
62
64
65
Standardized spend analysisprocess
Good or strong collaboration withthe line-of-business budget holders
Good or strong collaboration withsuppliers
Standardized contracting process
Ability to leverage spend data toidentify sourcing opportunities
Active sourcing program andorpipeline
Standardized sourcing process
copy Ardent Partners - 2015
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
18
SOURCING VISIBILITY CAPABILITIES
Copyright copy 2015- Ardent Partners Ltd
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
19
OVERALL STRATEGIC SOURCING ADOPTION
37
48
42
16
28
19
AutomatedSpend Analysis
eSourcing(andor Reverse
Auctions)
AutomatedContracts
(Repository)
AutomatedContracts
(Authoring)
SupplierPerformanceManagement
SupplierInformation
Management
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
20
THE 2015 PROCUREMENT BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Spend under
Management
614
Savings Target
2015
66
Addressable
Spend that is
Sourced
479
552 - Spend that is contract compliant
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
21
THE 2015 SUPPLIER BENCHMARKS
Copyright copy 2015 - Ardent Partners Ltd
Suppliers who
comprise 80
of spend
219
Enabled
suppliers
292
High-risk
suppliers
65
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
22
MORE SOURCING METRICS
Copyright copy 2015- Ardent Partners Ltd
Metrics
All
Respondents
Average savings percentage identified on a sourcing project 75
Average savings percentage identified in an online competitive bid (eSourcing) 86
Diversity spend as percentage of total spend 79
Percentage of spend from low-cost country sources 106
Percentage of spend data that is automatically matched cleaned and classified 406
Percentage of spend data that is automatically processed and must be manually
corrected
290
Percentage of contracts that utilize standard TampCs 594
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
23
THE FOUR PILLARS OF STRATEGIC SOURCING
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
24
BEST-IN-CLASS STRATEGIC SOURCING DEFINITION
Copyright copy 2015 - Ardent Partners Ltd
Percentage Actual Savings gt 6
Percentage of Addressable Spend Sourced gt 40
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Multi-tiered Savings Approach- A New Norm
Forecast Savings ndash 60 already do
Forecasting Savings help prioritize amp manage strategic
procurement initiatives for ongoing and pipeline
projects
Dedicated Team for Savings Measurement
A dedicated team for investigating how multi-tiered
savings measurement is being accomplished This
increases effectiveness and cost efficiently
Collaboration with Finance
Collaborate with finance to develop explicit processes
for tracking conversions of procurement savings either
into reduced corporate spending (improved
profitability) or explicit re-investment into future-
growth initiatives
Source Procurement Performance Management comes of Age
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Poll Question 2
Which of the following Savings do you measure
1 Hard Savings
2 Cost Avoidance
3 Expected Savings
4 Actual Savings
5 Savings via Budget Cuts
6 NonndashpriceProcess Savings
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Results amp What Zycus Research revealedhellip
Source Procurement Performance Management comes of Age
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
28
KEY PERFORMANCE INDICATORS ndash BEST-IN-
CLASS VS ALL OTHERS
MetricsBest-in-
ClassAll Others
Spend Under Management 71 48
Savings Last Year (Actual) 11 3
Savings This Year (Planned) 10 4
Spend Sourced 63 21
Percentage of on-contract spend 64 46
Percentage of transactions compliant with contracts 69 51
Copyright copy 2015- Ardent Partners Ltd
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Poll Question 3
Which of the below key metrics do you track to assess
your organizational performance and define success
1 Spend Under Management
2 Savings
3 Spend Sourced
4 On Contract Spend - of spend
5 Compliance - transactions compliant with
contracts
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
30
STRATEGIES FOR SUCCESS ndash BEST-IN-CLASS
VS ALL OTHERS
Copyright copy 2015- Ardent Partners Ltd
12
33
21
26
35
41
44
50
Drive high adoption of technology
Contract compliance savingsleakage reduction or internal
audit program
Automate strategic sourcingprocesses
Tighter linkage andor partnershipswith other business functions
Best-in-Class
All Others
copy Ardent Partners - 2015
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
31
THE FOUR PILLARS OF STRATEGIC SOURCING
Copyright copy 2015- Ardent Partners Ltd
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
32
AUTOMATED SPEND ANALYSIS ADOPTION BY MATURITY CLASS
433
167
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
33
SPEND ANALYSIS CAPABILITIES
44
53
27
42
Standardized spend analysis process Ability to leverage spend data to identifysourcing opportunities
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
34
ESOURCING ADOPTION
ADOPTION BY MATURITY CLASS
51
42
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
35
SOURCING CAPABILITIES
66
75
47
59
51
12
Standardized sourcingprocess
Active sourcing programandor pipeline
Tight linkage betweensourcing and contracting
processes
Best-in-Class All Others
Copyright copy 2015 - Ardent Partners Ltd
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
36
533
286
Best-in-Class All Others
CONTRACT REPOSITORY ADOPTION BY MATURITY CLASS
Copyright copy 2015 - Ardent Partners Ltd
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
37
AUTOMATED CONTRACT AUTHORING ADOPTION BY MATURITY CLASS
Best-in-Class All Others
276
88
Copyright copy 2015 - Ardent Partners Ltd
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
38
CONTRACT MANAGEMENT CAPABILITIES
47
53
12
29
Tight linkage between sourcing andcontracting processes
Standardized GRC processes
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
39
SUPPLIER PERFORMANCE MANAGEMENT
Best-in-Class All Others
241
54
Copyright copy 2015 - Ardent Partners Ltd
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
40
SUPPLIER INFORMATION MANAGEMENT
All OthersBest-in-Class
54
207
Copyright copy 2015 - Ardent Partners Ltd
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
41
SUPPLIER MANAGEMENT CAPABILITIES
3129
20
7
Standardized supplier performancemanagement process
Strategic supplier initiatives (ieinnovation or performance)
Best-in-Class All Others
copy Ardent Partners - 2015
Copyright copy 2015 - Ardent Partners Ltd
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
User Adoption Drivers for Procurement Technology
Source Procurement Challenges amp Motivators ndash Zycus MSU Study
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
43
STRATEGIES FOR SUCCESS
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
44
STRATEGIES FOR SUCCESS
Collaborate and get engaged sooner in the sourcing process
Develop sourcing agility
Standardize and if possible automate spend analysis for both
visibility and spend intelligence
Leverage contract management automation for enhanced
compliance and value
Enhance supplier management programs and integrate them
into the larger strategic sourcing process
Lastly all enterprise sourcing teams need to ldquoconnect the
dotsrdquo between all pillars for a solid foundation
Copyright copy 2015 - Ardent Partners Ltd
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
iContract
Repository
iContract
Authoring
Contract
Management
iSourceeSourcing
Zycus Comprehensive Solution Suite
ZycusSource-to-Pay Suite
iSave
iPerform
iSupplier
Auto
Class
iCost
iAnalyze
Financial
Savings
Management
Procure-to-
Pay
Supplier
Management
Spend
Analysis
One
View
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Questions and Follow Up
We will be sharing a copy of the Ardent Partnerrsquos study titled lsquoThe Four
Pillars to Sourcing Successrsquo as a follow up to all attendees via E-Mails
Contact Information
Contact Information
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