united utilities drives value with sap sourcing ondemand
DESCRIPTION
View this informative presentation from SAP's Annual 2012 SAPPHIRE Conference. These slides were presented by United Utilities, which is an SAP Sourcing OnDemand customer. They were presented in the Cloud Campus theater.TRANSCRIPT
United Utilities Drives Value with SAP Sourcing OnDemand
Colette Conroy, Lead Contract Formulator, United UtilitiesMark Ellis, SVP of OnDemand LoB Sourcing, SAP
© 2012 SAP AG. All rights reserved. 2
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
© 2012 SAP AG. All rights reserved. 3
Cost savings is the top priority for procurement over the next three years.
Source: CPO Rising 2011, Ardent Partners LLC
Procurement’s top priority
© 2012 SAP AG. All rights reserved. 4
Strategic sourcing
Drive sourcing best practices
through projects
Generate cost savings through RFx and auctions
Gain insight into activities through
user-friendly dashboards
Save time with sourcing process automation
© 2012 SAP AG. All rights reserved. 5
Contract lifecycle management
Gain full visibility into
contracts via a
repository
Gain control over your contract management
Standardize legal contract
creation
Provide security with electronic signatures
© 2012 SAP AG. All rights reserved. 6
Supplier management
Help ensure top supplier
performance with scorecards
Empower suppliers with self-service capabilities
Gain visibility into suppliers via a
repository
Foster close supplier relationships through collaboration
United Utilities 2012/13United Utilities Drives Value with SAP Sourcing OnDemand
Colette ConroyLead Contract Formulator
United Utilities in the United Kingdom
London
North West of England
What do United Utilities do
Regulators
How do we do it
Prior to SAP Sourcing OnDemand
Present UU
Present Savings
Soft cost savings have been generated by reducing costs through less labour, more efficiency, productivity increase, more usable information, better compliance, better work environment. One version of the truth
Hard SavingsGenerated reducing head count, reducing storage costs, but mostly by carrying out auctions
Future - Benefits from – Integration with ECC6 (P2P)
E Tendering Work Flow
Contract Award Management
Contract Management
E Auction
Supply Chain Phase 1
New Instance of SAP “Req
to BACS”
OCR read invoices
InventoryManagement
Spend Analytics
Additional Contract Management Functionality
Catalogues
Front EndPortal
Supplier Self Service
Workflow for mismatches
Payment ByBACS
ManagementReporting
Automatic loading of conformed contracts
Amazon Dot Com type of order generation
Good search engines for Requisitioners to find contracts suppliers and items
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Supplier Relationship Management withinSAP Sourcing OnDemand
What will we do together?
End to end process reviews
Risk reduction
Supplier innovation
Shared incentives
J oint Relationship Management
(J RM)
Supplier Relationship
Management (SRM)
Contract Management
AM&D & OPS owned for contractors on agreed list (£10m+). Budget owner / Supply Chain operated for suppliers of goods and services
Contract Administration and Service Management
Common Model Owned by Supply Chain
Future plans - what UU want
• Auctions enhancements
• United Utilities in line with most Utility companies in the UK generally do not procure on price alone, quality plays a huge part in our decisions.
Utilities Contracts Regulations 2006, Article 56• (13) During each phase of an electronic auction, the utility
—• (a) shall instantaneously communicate to all economic
operators participating in the auction at least sufficient information to enable them to ascertain their relative rankings in the auction at any time;
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Summary
• We have a fair, transparent and consistent way to procure goods, services and works
• We have reduced our cost to serve
• We have greater visibility of our savings
• Our reporting facilities gives greater transparency and can be accessed easily
• SAP Sourcing OnDemand is one step nearer to one
version of the truth
Thank You!
Visit SAP Sourcing OnDemand at http://sourcing.ondemand.com/