richard bradbury head of nvo apj and china, sap ariba sap ... · 28/07/2016 · richard bradbury...

Richard Bradbury

Head of NVO APJ and China, SAP Ariba

SAP Forum - July 26, 2016

Art and Science to Deliver High Performance Procurement

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Internal

AGENDA

Introduction

The Procurement Environment

Expectations of Procurement

The Gap

The Opportunity

The Way Forward


PRESSURE ON PROCUREMENT

Increasing Globalization• Expansion into new markets

• Global process standardization

• International supply chains

• Increased off/near shoring

Economic Volatility• Volatility in markets

• Decreased stock valuation

• Slow economic growth

• High expense ratio

More Competition • Pricing pressures

• New sources of competition

• Decreased budgets and spending

Greater Risk• Supply chain disruption

• Financial risk and fraud

• Commodity risk

Accelerating Technological Change• Changing business models

• Faster innovation cycles

• Expanding partnerships and channels

• Leveraging big data for decisions

Regulatory Changes• Increasing disclosure

requirements

• Country-specific regulations

• Industry-specific disclosures


2016: MORE CHALLENGING, MORE PRESSURES


THE CPO’S TOP PRIORITIES (2016 – 2019)

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6InternalCopyright © 2016 - Ardent Partners Ltd.

THE GAP


MISALIGNMENT WITH OVERALL BUSINESS OBJECTIVES

Customer Case StudyDavid Man, Group Controller , AIA

https://www.youtube.com/watch?v=8ZMM4yYaL3k&feature=youtu.be

https://www.youtube.com/watch?v=8ZMM4yYaL3k&feature=youtu.be


DIRECT AND SUPPLY CHAIN

Source & Contract Request & Buy Invoice & Pay

ContractSourcePlan OrderApproveRequest ManageReceive

Supplier Management

INDIRECT AND MRO

User Experience + Cloud Platform + INTEGRATION to all ERPs

Pay

Smart Procurement enabled with cloud applications and a business network


Typical benefits are significant Leveraging SAP Ariba network and source-to-pay solutions

4-15% Sourcing savings

70% Operating cost reduction (AP & Procurement)

1-4% Compliance savings

$2-3M Discount savings for $1B addressable spend

40%+ Cost reduction

6 Days DSO reduction

15% Increased sales & wallet share

Buyer Benefits Supplier Benefits

BEST IN CLASS BENCHMARKS1

75% % of PO & Invoice lines

against item Master/

Catalog/ Contract

75% of addressable

spend managed

strategically(2)

10,000POs processed per FTEInvoices Processed

per FTE

% of spend under

early payment

discount

50,000++20%

(1) Based on Ariba customer engagements and benchmarks (2) Specific to Banking industry; SAP Benchmarking & Best Practices Program


BEST-IN-CLASS DIFFERENCE

Best-in-Class impact on $1B = $31.2 million in extra savings


How can SAP Ariba help?

Spend analysis

Business Case

Benchmarks & PositioningProgram Roadmap

Vision & Mission

Network Match OutputsRoles & Responsibility


STRATEGIES FOR SUCCESS

Think end to end and build to an end vision

Ensure your objectives are mapped to the primary goals and objectives of the enterprise

Build the capability to deliver the things that support primary business objectives

Drive adoption of simple and consistent processes throughout the organisation

Demand greater investment in people and technology

Regularly assess the strengths and weaknesses of the organization’s capabilities


Art or Science?

“Procurement is a blend of art and science, combining business, category, and supply expertise

with leading technology, data analytics, and associated value-based decision support

capabilities.”

~ CPO Rising 2016: The Art and Science of Procurement

Thank youRichard Bradbury

Head of Network Value Organisation

Asia Pacific Japan and Greater China

E-Mail: [email protected]

richard bradbury head of nvo apj and china, sap ariba sap ... · 28/07/2016 · richard bradbury...

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