supplier enablement: the path to 100%

Supplier Enablement: The Path to 100%

Sept 30, 2015

Agenda

• Introductions

• Hackett Overview: e-invoicing and onboarding suppliers

• Greif’s supplier enablement story

• Coupa’s vision for e-invoicing and supplier enablement

• Q&A

©2015 Coupa Software, Inc -

Today’s Speakers

Myron Gramelspacher

Sr. Director, Global Indirects

Sourcing & Supply Chain

Greif

Meredith Volpe

eProcurement Systems

Manager

Greif

Amy Fong

Executive Advisor and

Program Lead

The Hackett Group

Adam Alphin

Director, Supplier

Enablement Services

Coupa

4

The world’s leading industrial packaging provider

$4.3 BILLIONNearly $4.3 billion in

sales

>50Operations in more

than 50 countries

13,500Approximately 13,500

employees worldwide

250Over 250 operations

Amy Fong

Supplier Enablement to e-Invoicing Networks

6© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Top performers leverage electronic transactions far more than peers, with the greatest gap in e-invoice receipt

Percent of Electronic

Invoices and Invoice-less

Transactions2

Percent of Electronic

Payments as Percent of

Total Payments

2Invoiceless transactions includes

Evaluated Receipt Settlement

19%

70% 69%

80%

Peer Top Performer

42%

68%

Percent of “No Touch” Orders1

1Purchase Orders and Releases Requiring No

(or minimal) Intervention from a Buyer to Turn

the Requisition into an Order and Disseminate to

the Supplier


Most companies approach e-Invoicing with realistic expectations of onboarding high volume suppliers, but often fall short

Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, 2015

Initial Onboarding Goal versus Progress to Date

Percent of Suppliers Percent of Invoices

49%

32%

62%

49%

Initial Onboarding Goal Progress To Date


Software vendor fees and limited resources are most often cited as challenges to supplier enablement

10%

15%

20%

30%

30%

35%

40%

40%

65%

A lack o f su f f i c i en t ded i ca ted resou rces f rom the so f twa re p rov ide r f ocused on onboard ing supp l i e rs

Supp l i e rs on the so f twa re vendor ’ s ne twork need add i t i ona l se tup to i nvo i ce new buye rs

I n i t i a l bus iness case d idn ’ t a l l oca te enough t ime o r budge t f o r supp l i e r onboard ing e f fo r t s

Insu f f i c i en t and /o r i naccu ra te supp l i e r mas te r da ta

In teg ra t i on requ i remen ts a re too much o f a bu rden on the supp l i e r

A l ack o f supp l i e r awareness a round the i n i t i a t i ve

Ine f fec t i ve and manua l ex i s t i ng onboard ing p rocess

A l ack o f ded i ca ted i n te rna l resou rces to f ocus on onboard ing supp l i e rs

The so f twa re vendor ’ s f ees d i scou rage supp l i e rs f rom enro l l i ng



Successful enablement requires a joint effort internally and externally

Activity

Percent of

respondents

carrying out activity

Primarily responsible for completing

the work

Creation of data upload utilities 88%Internal IT working with the

sourcing/procurement team

Creation of data definition documents to map interfaces 88% Internal IT working with the software vendor

Setup of supplier security roles and

data access rules82%

An even mix of responsibility

between procurement, IT and the

software vendor

Staffing a dedicated supplier onboarding help

desk/hotline77%

An even mix of responsibility between

procurement, AP and the software vendor

Creation of supplier onboarding guide and FAQ

documentation75%

AP supported by procurement and

the software vendor

Providing testing and data validation services 71% Software vendor supported by AP

Generating supplier onboarding status reports 69% Software vendor supported by AP

Configuration of online/supplier self-service

data entry screens59% Software vendor



The cost and effort to enable a supplier can be significant

Metric Average response

Estimated total cost to onboard a single supplier $925

Percent of respondents unable to estimate total cost of onboarding a single supplier 47%

Average time required to onboard a supplier 17 hours

Total days from start to finish 16 days



Fresh Market Story

Greif’s Supplier Enablement Story: The Path to 100%


Fresh Market Story

• Maverick spend, no centralized system for indirect purchases

• Poor spend visibility & control

• 0% e-invoicing for indirect spend: all paper

• Needed a centralized global e-procurement system and

e-invoicing solution

• Solution must be scalable

Greif – Original situation


Fresh Market Story

• Internal cross-collaboration was key in decision

(AP, IT, Sourcing, Supply Chain, Plants)

• 4.5 months implementation

• Significant cultural change for plants & users

• Supplier onboarding important for success

Coupa Implementation


Fresh Market Story

• Vastly underestimating the importance of early

communication with our supplier base

• Insufficient explanation of the Coupa Supplier Network,

what it is, its benefits and value

• Incomplete Supplier Master details (missing contacts,

agreements, information)

• Pockets of internal resistance and pushback

• Not properly prioritized

Initial Challenges to Supplier Onboarding


Results

• Around 3,500 active suppliers

• More than $220M invoiced spend annually

• 20%+ suppliers enabled on day 1 of go-live; 50% today

• Currently e-invoice volume at 85% • 95% targeted by end of 2015

• 100% goal in 2016 (use of actionable emails will extend adoption)

• Supplier visibility: Real-time access to payment status

• Supplier trust: Strategic discussions beyond price

• Supplier relationships: Enabling catalogs to increase sales

• Cost to on-board a supplier is ~ $50 / supplier

The numbers

The value

Greif Manual Invoices vs. Electronic Invoices

0

1,000

2,000

3,000

4,000

5,000

6,000

jan feb mar apr may jun jul aug sept

Manual Invoices

Electronic Invoices

What Changed?

85%

2015 Invoice Counts


Fresh Market Story

• First priority – internal organizational alignment

• Communicated broadly to supplier base as requirement for

doing ongoing business

• Letters illustrated value of adoption

• Training materials sent to suppliers to prepare for transition• e.g. how to e-invoice, add additional users

Strategy for Driving Adoption Among Suppliers


Supplier Feedback

“We initially felt it was going to be a time consuming effort

to feed our invoices through the system for all of the

different plants. Once we got used to it, we found it was

very easy and it has drastically reduced our aging invoices

as we know the status immediately through the CSN and

know who to follow-up with if we haven’t seen a receipt

take place long before payment due date.” Greif

Supplier


Fresh Market Story

• Validate and cleanse the Supplier Master data, ensure

contacts are up-to-date

• Prepare training materials in advance. Make sure training

opportunities are available

• Make Coupa and the CSN a part of supplier onboarding for

all NEW suppliers

• Internal organizational alignment - secure support on the

initiative, ensure all critical departments are aligned

Lessons Learned


Coupa’s Mission: Savings-as-a-Service


One Unified Application Suite

©2015 Coupa Software, Inc - Confidential

QUANTITATIVE RESULTS

ONE CLOUD PLATFORM

INTEGRATED & UNIFIED

APPROACH

UNPRECEDENTED USER

ADOPTION

MANAGEMENT VISIBILITY,

CONTROL & COMPLIANCE

LOWEST TCO

HOLISTIC BUSINESS IMPACT


Coupa’s Supplier Enablement Vision

BORDERLESS commerce & MEANINGFUL collaboration for

ALL trading partners, BIG or SMALL, LOCAL or GLOBAL

Zero cost, no

contracts for

suppliers

Localized

transactional

data residency

Self service to

full service or

anything in

between

Global

Compliance

Technology

AgnosticEmbrace Email

as Common

Denominator


How Does Coupa Help AP be Successful?



Top Tier Suppliers Are Not Driving Costs


The majority of your invoices will come from the mass of small,non-preferred suppliers that you use infrequently

Preferred suppliers

Non-preferred

The majority of

suppliers

are non-preferred

Only 20% of spend

accounted for by

them

But they account for

80% of invoice costs

25© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.©2015 Coupa Software, Inc - Confidential

MINIMAL ENABLEMENT

NO REGISTRATION REQUIRED

NO SUPPLIER FEES

NO CONTRACT TO SIGN

FULL VISIBILITY OF INVOICE

(AUTO EMAILED)

Coupa Enables All Suppliers to Invoice on Day 1


Coupa Enables All Suppliers to Invoice on Day 1


SUPPLIER

ACTIONABLE

NOTIFICATION

PORTAL AP INBOX DIRECT

CONNECTION

PAPER

Contact us at:

www.coupa.com/contact-us

650.931.3200

Thank You!