The SIG Webinar will begin shortly.

Once the webinar begins, the sound

will come from your computer

speakers.

In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen

and plan to join us if you are in one of these cities this fall.

NETWORKING EVENTS

GLOBAL SUMMITSMar 10-12 2015 – Amelia Island

SYMPOSIUMS

Oct 29 – New York

Nov 12 – San Francisco Bay Area

REGIONAL ROUNDTABLES

Nov 14 – Orange County

For more information and to register for all SIG events:

www.sig.org

Become a SIG Champion and earn points in the process by…

•Attending an event

•Dialing into a webinar

•Speaking at a Summit

•Submitting content to our blog or SRC

•Referring a new member

•And more

For more information and to register for all SIG events:

www.sig.org

special member

benefits

6 months of free

buy-side access (a

$30,000 value) to the

Vendor Evaluation &

Assessment Tool

(NEAT)

2 free Market Intelligence

Reports for Facilities

Management and

Application Software (a

$10,000 value)

supplemented with

quarterly updates and a

20% discount on any

additional report

subscriptions

For more information, go to: http://sig.org/provider-benefits

Complimentary due

diligence report and

analysis on a company

of your choice for a

deep look at the

potential risks you can

uncover within your

supply chain

RECENT POSTINGS

The SIG Career Network is

bursting with opportunities.

New jobs are posted daily by some of the best known global

companies in the world for those seeking careers in sourcing,

outsourcing, procurement and related functions.

For more information go to: www.sig/career-center.org

NEW to the Career Network!

• Wellmark – posted October 13:

• Asset Licensing Analyst

• AXIS Insurance – posted October 8:

• Category Manager – Indirect Services

• Sun Life Financial – posted October 7:

• Sourcing Specialist

• Motorists Insurance – posted October 7:

• Sourcing Manager

• LSI Industries – posted October 6:

• Junior Buyer/Planner

• PepsiCo – posted October 3:

• Global Procurement Senior Manager

• Huntington Bank – posted September 30:

• Senior Sourcing Manager

• GEP – posted September 26:

• Manager, Consulting

• Adobe Systems – posted September 23:

• Marketing Category Manager

New Topic Each Week

2:00 pm Eastern

(11:00 am Pacific)

Upcoming Free SIG Webinars:

October 28, 2014Realizing the Power of Market Intelligence in a Dynamic Global EconomyPresented by Denali Group

October 30, 2014Don’t Let the Affordable Care Act Turn Your Business Upside-DownPresented by PeopleFluent

November 4, 2014Best Practices when Contracting for Facilities Management Outsourcing: A Sourcing Integration StrategyPresented by Mayer Brown

Register at www.sig.org

For more information and to register for all SIG events:

www.sig.org

Upcoming Town Hall Teleconference:

November 12th

Best Practices for Risk Assessment

Presented by:

Cathy Luoma

Director, Sourcing & Procurement

American Family Insurance

SIG Town Hall Teleconferences

bring a small group of buy-side ONLY attendees together for a facilitated

discussion on top-of-mind issues in an open-mic, private conversation.

Town Hall Teleconferences are NOT recorded.

Calendar of Town Hall

TeleconferencesTaking place at 1:00 pm Eastern on

the following dates:

February 12 July 9

March 12 August 13

April 9 September 10

May 14 October 8

June 11 November 12

For more information and to register for all SIG events:

www.sig.org

SIG Symposiums and Regional Roundtables provide education and local

networking for members and invited non-member corporate users

Symposiums:

Minneapolis – Feb 6

Toronto, Canada – Jun 9

Columbus – Sep 24

New York– Oct 29

San Francisco Bay Area – Nov 12

Regional Roundtables:

Hartford – Mar 12

Seattle – Apr 30

Chicago – Jun 9

Orange County – Nov 14

For more information and to register for all SIG events:

www.sig.org

A SIG Global Summit is…

• Non-commercialized

• Almost 70% buy-side

• Global brands

• 3 days of networking

• Executive Roundtables

• Multiple keynote sessions

• Nearly 50 breakout sessions

69% at director level or above, of which 43% are VP/C-level

www.sig.org/summits.php

Source-to-SettleWhy It’s Time to Connect

the Last Mile

October 23rd, 2014

© 2011 SAP AG. All rights reserved. 10

Today’s Speakers

Global Vice President, Audience Marketing

for Line of Business Procurement

Emily drives the direction and market

awareness for the portfolio of procurement

solutions at SAP to ensure customer value

and business growth. She brings 20 years of

experience in high tech marketing and

management consulting to SAP, with prior

procurement and sourcing-focused

experience at several technology providers

such as Ariba and eBreviate as well as A.T.

Kearney. Emily has a degree in International

Relations as well as an MBA.

Emily Rakowskiemily.rakowski@sap.com

Chief Research Officer & Founder

Andrew is a recognized expert in sourcing, AP

and supply management, having

benchmarked thousands of procurement and

finance departments. He has held leadership

roles in sales, marketing and services at Ariba

and Commerce One in addition to a consulting

and banking background. Andrew has been

named a SDCE “Pro to Know” three times,

and holds both a BA and MBA. Visit his blog

at www.cporising.com

Andrew Bartoliniabartolini@ardentpartners.com

© 2011 SAP AG. All rights reserved. 11

World Class Procurement Excellence

…is essential to be competitive

>85% Spend Under Management

8% Annual Recurring Savings

74% Compliant Spend

Source: Ardent Partners CPO Rising 2014

Are you World Class?

© 2011 SAP AG. All rights reserved. 12

The Business Case for Procurement Excellence

Spend Optimization Reliability Productivity Innovation

Improve spend

visibility

Increase internal

collaboration

Source more and

better

Identify and

mitigate supply

risk

Drive supplier

responsiveness

Improve quality

and consistency

Increase

operational

effectiveness

Integrate the

procurement

process

Leverage team

knowledge

Focus on revenue

generation

Use supplier know-

how and reward

innovation

Promote

sustainability

© 2011 SAP AG. All rights reserved. 13

Inefficient source-to-pay processes result in high costs

Inconsistent, Incomplete,

and Unclassified Data

Limited Cost Savings

Poor Contract

Management

High Procure-to-Pay

Process Costs and

Adoption Challenges

Lack of Supplier

Management and

Collaboration

Corporate

buyers

SuppliersCategory managers

Production

Chief

procurement

officer

Contract

managers

Contract

Mgmt

Supply ChainProduct

Development

FinanceCost

Accounting

Strategic

Sourcing

Supplier Management

Spend Analysis

Procure-to-Pay

© 2011 SAP AG. All rights reserved. 14

Efficient source-to-pay processes ensure cost savings

Achieve Consistent,

Complete, and Classified

Data

Ensure Sustainable Cost

Savings

Achieve Comprehensive

Contract Management

Reduce Procure-to-Pay

Processing Costs and

Gain High Adoption

Manage Suppliers and

Collaborate Effectively

Corporate buyers

SuppliersCategory managers

Production

Chief

procurement

officer

Contract

managers

Supply ChainProduct

Development

FinanceCost

Accounting

Contract

Mgmt

Strategic

Sourcing

Supplier Management

Spend Analysis

Procure-to-Pay

© 2011 SAP AG. All rights reserved. 15

Let’s get tactical – what does real process integration

mean?

Contract

Mgmt

Spend

AnalyticsSourcing

Operational

Procurement

Invoice

Mgmt &

Payments

Supplier

Management

• Create a sourcing

project from a

report (bringing

over items,

current prices,

total spend,

supplier lists)

• Bring spend

analysis reports

into project

workspace as

reference

• If needed, bring

direct material

information from

MM type module

into sourcing

event

• Place standard

contract clauses

into RFP for pre-

agreement

• Bring items,

prices, awarded

suppliers directly

onto draft

contracts

• Bring RFP

responses into

contract as

clauses / SLAs

• Establish vendor

for procurement

use

• Bring approved

contract items,

prices and

payment terms

into global

‘operational

agreements’ /

material info

records

• Publish items /

pricing into

catalogs for use

by employees

• Automated PO

collaboration

• Automated PO or

contract flip

available to

ensure accuracy

• Disputes resolved

collaboratively /

visibly

• Evaluated receipt

settlement when

possible

• Supplier

performance

reported against

spend amounts,

used in sourcing

events, included

as contract SLAs

• Supplier master

data maintained

throughout all

records

• One place to see

all supplier

interactions

© 2011 SAP AG. All rights reserved. 16

Integration Status Poll

This isn’t even a major consideration yet

Manual handoffs or very separate applications

Automated integration in a few places, but not the whole

process

Fairly clean end-to-end automated integration

How closely integrated are your source to pay processes?

think BIGStart Small&

Considerations

On Demand Solutions

Modular Capabilities

Integrated, End to End Suite

Global Footprint / Compliance

Shared Service / Multi-Backend

18

AGENDA

The Current State of “Source-to-Settle“

Why it’s Time to Connect the Last Mile

Designing for “Source-to-Settle” Success

Copyright © 2014 - Ardent Partners Ltd.

19

WHAT DO WE MEAN BY SOURCE-TO-SETTLE?

Spend

AnalysisSourcing

Contract

ManagementProcurement Accounts

Payables

Copyright © 2014 - Ardent Partners Ltd.

Source to Settle

20

TOP CPO PRIORITIES (NEXT THREE YEARS)

Copyright © 2014 - Ardent Partners Ltd.

©Ardent Partners - 2014

Innovation

21

TOP STRATEGIES FOR CPOS IN 2014

Copyright © 2014 - Ardent Partners Ltd.

55%

47%

42%

32%31% 31%

Improvecollaborationwith business

Improvecollaborationwith suppliers

Improve use oftechnology (buynew systems /

improve currentones)

Implementstronger

policies andprocesses

Improvecollaborationwith the CFO

and otherexecutives

Optimize currentsystems and

processes

© Ardent Partners - 2014

Collaboration

22

AP’S TOP PRIORITIES IN 2014

Copyright © 2014 - Ardent Partners Ltd.

23%

25%

27%

31%

37%

63%

Generate discounts on spend

Better link P2P processes and systems

Improve collaboration/communication withprocurement

Improve visibility into invoice and paymentdata

Improve reporting and analytics around AP

Reduce processing costs

© Ardent Partners - 2014

23

THAT PERSISTENT PAPER PROBLEM

Copyright © 2014- Ardent Partners Ltd.

70%

30%

Manual Electronic

© Ardent Partners - 2014

Invoice Formats Payment Formats

44%56%

Manual Electronic

© Ardent Partners - 2014

24

THE BENEFITS OF ELECTRONIC PAYMENTS

24% of all AP groups report

increased accuracy and control

of payment delivery

24% 45% 51%

24

45% of AP groups say that

electronic payments enable

more efficient and streamlined

processing (e.g., review,

approval, execution).

51% of enterprises rate cost

savings as the top benefit seen

from electronic payments

25 25

Greater

involvement in

working capital

optimization

Skill set

required within

AP will change

Stronger AP &

Procurement

partnership

AP process will

be largely

automated

AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3 YEARS)

83% 69% 66% 57%

26

1 IN 5 CPOS OWNS ACCOUNTS PAYABLE

Copyright © 2014 - Ardent Partners Ltd.

27

SUITE ADOPTION RATES

Copyright © 2014 - Ardent Partners Ltd.

43.4%

35.9%

19.9%

Integrated Procure-to-PaySuite

Integrated StrategicSourcing Suite

Integrated Source-to-SettleSuite

© Ardent Partners - 2014

28

S2S: WHY IT’S TIME TO CONNECT

THE LAST MILE

29

WHY SOURCE-TO-SETTLE MATTERS?

Copyright © 2014 - Ardent Partners Ltd.

30

WHY SOURCE-TO-SETTLE MATTERS?

Copyright © 2014 - Ardent Partners Ltd.

31

WHY SOURCE-TO-SETTLE MATTERS?

Copyright © 2014 - Ardent Partners Ltd.

22%

4%

2006 2011

Motorola Market Share: Mobile Phones

32

WHY SOURCE-TO-SETTLE MATTERS?

Copyright © 2014 - Ardent Partners Ltd.

22%

4%

2006 2011

Motorola Market Share: Mobile Phones

33

WHY SOURCE-TO-SETTLE MATTERS?

Copyright © 2014 - Ardent Partners Ltd.

22%

4%

2006 2011

Motorola Market Share: Mobile Phones Key Takeaways:

Joy’s Law: “Innovation will happen, and it

will happen elsewhere.”

Innovation extends to all supply markets

A ‘static “supply base is now a red flag

No company can risk going it alone

Increasing reliance on suppliers

Suppliers are partners assets

34

WHY IT’S TIME TO CONNECT THE LAST MILE

Spend

AnalysisSourcing

Contract

ManagementProcurement Accounts

Payables

Copyright © 2014 - Ardent Partners Ltd.

Seamless processes capture and retain value

• Efficiently

• Effectively

• Repeatable

• Scalable

Automation amplifies and accelerates the benefits

© 2011 SAP AG. All rights reserved. 35

Impact on Savings Poll

We probably lose over 50% of negotiated savings

We probably lose over 25% of negotiated savings

We probably lose over 10% of negotiated savings

No leakage – we’re rock stars

How much of your negotiated savings do you believe is lost along the

process (between sourcing/contracts, or contracts/procurement, or

procurement/payment)?

36

WHY IT’S TIME: 4 PROOF POINTS

Spend

AnalysisSourcing

Contract

Mgmt.Procurement Accounts

Payables

Copyright © 2014 - Ardent Partners Ltd.

• Enterprises that leverage spend analysis into their sourcing

projects save, on average, between 24% - 41% more per

project

• Eliminating any sourcing/contract process gap can reduce

savings leakage by up to 38%

• Best-in-Class enterprises report compliance rates that are

20%+ superior

• Linking and automating the P2P process can reduce invoice

cost by 40% to 70%

37

DESIGNING FOR S2S SUCCESS

38

RECOMMENDATIONS

Begin building your S2S business case today

Develop an S2S blueprint with the end-state in mind

Place any current programs, systems and processes

into a larger source-to-settle context

Look beyond savings

Improve communication and collaboration with internal

AND external stakeholders

Embed the procurement staff in the business

Copyright © 2014- Ardent Partners Ltd.

© 2011 SAP AG. All rights reserved. 39

Thank You.

Questions?