transforming procurement @ · pdf filetransforming procurement @ sap erich winsloe, head of...

Transforming Procurement @ SAP

Erich Winsloe, Head of Regional Procurement, SAP APJ and Greater China

Hong Kong, June 16, 2015 Public

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2 Public

Agenda

Why Transform?

The Procure-to-Pay Organization

Simplifying the User Experience

‘SAP Runs Ariba’ Program

The Road Ahead

Question?

3 © 2014 SAP AG or an SAP affiliate company. All rights reserved.

…why transform?


The World is changing fast Todays Challenges are bigger in nature and uncertainty persists

True Global Economy

Incidents can have significant impact

on global supply chains

Disruptive Technologies

Cloud | Mobile | Social | Big Data

Growing Middle Class

Millennials entering labor market

expect different leadership and

working environment


Changing Business Environment increases pressure on companies Increases 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


Procure-to-Pay @ SAP Organization and Goals

Leverage purchasing power and driving

sustainable savings across all geographies

Deliver best-in-class procurement processes

and highest possible service levels to

internal customers

Mitigate risk to SAP

Be a fair partner to our suppliers

Structure

GPO vision is to help SAP buy better and be a value generating business partner to the

business for all procurement related activities, globally.

Goals

CPO and Procure-to-Pay Business Owner

Procurement

Shared Services*

operational procurement and

accounts payable

Category

Procurement

strategic and tactical sourcing

in 36 locations

>3.8 billion € Spend

>710,000

Annual invoices

>970,000

Trips

*reports solid line into Global Finance Shared Services Organization


Procure-to-Pay @ SAP Key Facts and Figures (2014)

Spend by Region Key Facts

74,000+ Global SAP Employees

> 430,000 PO Line Items

17.6€ billion Revenue

> 710,000 Annual Invoices

3.8€ billion Spend

> 910,000 Trip Entries

14,000+ Global Suppliers

420 FTS in P2P ASIA PACIFIC

13%

EMEA

54% AMERICAS

33%


Evolution of Procurement towards a Strategic Function The Transformation Journey towards Run Simple and Business Value Enabler Role

Operational Strategic Partner

Today

Processes & Systems E2E P2P & Cloud Systems,

Networks, Mobile

Organization Globalization Category

Managements

People Development & Change

Management

Regional

Purchasing

SRM 5.0 SRM 7.02 Cloud

Change

Management

Tactical

Procurement

Operations

People

Development Business Partner

Leadership

Global

Categories

Globalization Simplification Automation Strategic Solutions Providing E2E Process


Simplify the user experience. Procure-to-Pay Innovations at a Glance

Mobile Solutions Improved Usability

Increased Manager

Effectiveness

Simplify Travel Reduced time with faster

reimbursement and increased

employee satisfaction

New Catalogue Google fast and Amazon like

shopping experience with

Ariba Catalogue

Analytics Procurement Dashboards are

key to manage the Procure-to-

Pay Process

Business Networks

Reduced Process costs and

faster cycle times

Leveraging purchasing

power of SAP


Procurement Content New Catalogue close to an ‘Amazon-Like’ Shopping experience for end-users

Old Catalog Ariba Catalog


Mobile Easy order Simplified Shopping experience: Shopping in three clicks

1. Mobile and flexible

Mobile apps for iPad, iPhone, available

Easy ordering of preferred end-use

consumable articles (online/offline)

Using of non productive waiting time to

process shopping carts

2. Full Integration

Integration to online SRM system

Detailed information of articles on item

level

3. User friendly User-Interface

Simple and intuitive


Mobile Shopping Cart Approval Simplified Approval: Improved Manager Effectiveness


Mobile apps for iPad, iPhone, Android

smartphones and Blackberry available

Approval and rejection of shopping carts

with mobile apps (online/offline)

Using of non productive waiting time to

process shopping carts

2. Full integration

Integration to online SRM system

Submission of the receipts via mobile app

or email

3. User friendly User-Interface



Travel and Expense Management on the Cloud Faster reimbursement. Increased Employee Satisfaction

1. Reduction of the entries/clicks and time spent on the

expense report entry (77% time and 57% clicks saved)

Integration to online booking systems like GetThere or

Amadeus e-Travel Management

Data feed of the credit card items

Submission of the receipts via mobile app or email

Expense report creation via an Outlook meeting request


Mobile apps for iOS, Android & BB Devices

Scanning of receipts with mobile apps

Using of non productive waiting time during trip for

expense entry

3. User friendly User-Interface - usability satisfaction level

of 71% (good)


Coming soon:


Spend Visibility. Run Simple New analytics frontend creating full transparency to strategically manage spend

Before After PO and non-PO Spend aggregated

SRM

ERP

ERP

SRM

ERP

ERP

PO-Spend

BW

non

PO-Spend


Moving on to the Business Network. Collaborate to win

Reduced Process costs and faster cycle times

Demand Planning / Aggregation

and Spend Analytics

Sourcing / Procurement

and Contract Management

Invoice Management

and Accounts Payable

Supplier Management

Procure-to-Pay Process

Ariba® Spend Visibility

Ariba® Collaborative Sourcing

Ariba® Procurement On Demand

Ariba® Collaborative Commerce

Ariba® Collaborative Finance Ariba Cloud &

Network Solutions

SAP Business Suite

FI

PM

PP

MM

SCM

SRM

SAP On Premise

Solutions

Sourcing

CLM

SPM


“SAP runs ARIBA” The Power of 2

253,000+ Customers

€17.6B+ 2014 total SAP revenue

74% Of the world’s transaction

revenues touch an SAP system

34 Languages

8M+ Users

>1.7 million Companies in 190 countries

$750 Bn+ Commerce conducted annually

1200 New network suppliers

weekly


12 % of our

suppliers are on Ariba

34 % of our

Invoices come from

those suppliers

45 % of our Top 100

suppliers matched

Program Step 1: The “Supplier Match” for SAP


Example Purchase Order Invoice Automation and Run Simple Automation of Invoice to Pay – Eliminate Manual, no Value Adding Tasks

Transition to fully integrated and automated purchase-order to invoice process will be a must in the future to

reduce transactional costs and free up resources to focus on value adding activities in the end-to-end process.

Manual paper based process

from Purchase Order to Invoice

Purchase Order to Invoice fully

automated on Ariba Network

Invoice

creation in

a system

Printing Mail

Shipping

Manual

Data Entry

Purchase Order

creation / Invoice data

Purchase Order

data conversion in invoice

Scanning


Program Step 2: The Solution Framework we got started with

Single Point for Business Collaboration

SAP Suppliers

Ariba Collaborative Commerce

Ariba Supplier Management

Ariba Sourcing

Ariba Procurement Content Catalogues, Punch Out

Catalogues

RFI, RFP, eAuction

Maintain Supplier Profile

Information

SAP Global Procurement

Selected Solutions

PO, OC, ASN, Invoice,

Invoice Status


Program Step 3: Implementation of Hybrid Model by orchestrating

SAP On Premise and Ariba Cloud Solutions

Service

Procurement

Catalogue

Procurement

Content

Supplier

Supplier

Supplier

Purchase Order, Invoice Status

Invoices, Order Conf., ASN

SRM on

HANA

Self Service

Procurement

Ariba Discount

Pro

ERP on

HANA

Purchasing/

Invoicing

Vendor Invoice Management

by Open Text

Spend

Visibility eSourcing

Supplier

Management

Contract

Management

Ariba Cloud Solutions

Ariba PO & Invoice Automation

Accounts Payable and T&E Strategic and tactical procurement Operational Procurement


Achievements Source-to-Pay Automation, Business Networks and Shared Services

Streamline entire Source-to-Pay Process

Leverage economies of scale and control through

shared services

Cut costs through automated data extraction and

process automation

Create workforce efficiency through streamlined

processes including mobile approvals

Reduce errors at the source

Improve working capital management through better

visibility to cash requirements

Optimize cash discount utilization including dynamic

discounting

Achievements: Facts & Figures

3 Months Implementation Time

>4,000 Suppliers on ARIBA Network

268,000 Documents transmitted

50% Increase in Automation

20% Productivity gain

<1.0bn Purchase Order value sourced


Evolution of SAP’s Procurement Function. Organization Source-to-Pay,

People Development and Change, Processes & Systems: Cloud only

Ariba for Goods,

Fieldglass for Services and

Concur for Travel

to-Pay

Accounts Payable and

Travel & Expenses

Source-to-Purchase

Strategic and Tactical Procurement

Purchase- Operational

Procurement

Processes & Systems E2E P2P & Cloud Systems,

Networks, Mobile

Organization & People Globalization Category

Managements


Our Team’s Keys to Success

Implementation

Approach

Implementation of

“vanilla” standard

OnDemand Ariba

solutions

Use of SAP Rapid

Deployment Solution

(RDS)

Use of “scrum” project

methodology

Project

Management

Coordination of involved

business groups (Internal

IT / Business / Ariba)

Harmonization of four work

streams and alignment with

supplier enablement efforts

Focus

Simplification and

standardization

Focus on enablement of

suppliers already registered

on the network first

Highly motivated teams

taking responsibility

Implementation done in just 3 months – record speed!

Transformation is a Journey

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Thank You! Erich Winsloe

Head of Regional Procurement, Global Procurement Organization

SAP Asia Pacific Japan and Greater China

E-Mail: [email protected]