Breakout Session # 2104 Thomas Pfeiffer, Sr. Associate, Booz Allen Hamilton Rajendra Rathod, Associate, Booz Allen Hamilton April 24, 2007 10:45 am – 11:45

Breakout Session # 2104

Thomas Pfeiffer, Sr. Associate, Booz Allen Hamilton

Rajendra Rathod, Associate, Booz Allen Hamilton

April 24, 2007

10:45 am – 11:45 am

Taking Spend Analysis to the Next Level

Key Learning ObjectivesKey Learning Objectives

Defining a process to achieve an enterprise wide view of spending to leverage in the strategic sourcing process

Creating an integration layer to facilitate increased spend visibility and data transformation, both upstream and downstream

Impacting the enterprise through increased contract compliance, cost savings tracking and spend reporting

Defining a process to achieve an enterprise wide view of spending to leverage in the strategic sourcing process

Creating an integration layer to facilitate increased spend visibility and data transformation, both upstream and downstream

Impacting the enterprise through increased contract compliance, cost savings tracking and spend reporting

Fully Automated SpendManual Spend Analysis Spend Analysis Continuum

Manual spend analysisManual spend analysis

Requires organizations to identify, compile and scrub data when requirements change

Data analysis currently segregated by Procurement, Finance, Human Resources, CIO, etc., reporting

Manual mapping of data into appropriate taxonomy

Avoids risk of buying an immature SW solution in a SW market that is consolidating and changing

Organizations refresh data and dashboards on a regimented time interval while changes to schedule add costs

Requires organizations to identify, compile and scrub data when requirements change

Data analysis currently segregated by Procurement, Finance, Human Resources, CIO, etc., reporting

Manual mapping of data into appropriate taxonomy

Avoids risk of buying an immature SW solution in a SW market that is consolidating and changing

Organizations refresh data and dashboards on a regimented time interval while changes to schedule add costs

Automated spend analysisAutomated spend analysis Repeatable, automated solution enables near real-time

spend analysis

Improved support of enforcement and compliance activities

Automated mapping into spend taxonomy

Comprehensive and accurate spend database leveraging third party data to increase intelligence of analysis

Design dashboards to provide enterprise level visibility

Repeatable, automated solution enables near real-time spend analysis

Improved support of enforcement and compliance activities

Automated mapping into spend taxonomy

Comprehensive and accurate spend database leveraging third party data to increase intelligence of analysis


How does spend analytics impact my organization and why is it important?

OMB has recently mandated all government agencies adopt strategic sourcing – but they have provided little direction on “how” to do it

Agency chief acquisition officers are required to report the cost reductions and agency improvements achieved through strategic sourcing to OMB’s Office of Federal Procurement Policy.

Some of the agencies and services have experimented in sourcing – with little consistency in practices

GSA has awarded a Strategic Sourcing BPA to provide a vehicle that agencies can utilize to secure sourcing and spend analytics support

GSA has awarded a Strategic Sourcing BPA to provide a vehicle that agencies can utilize to secure sourcing and spend analytics support

Spend analytics is important because it is key to everything from commodity analysis to contract compliance

Diagnostic & Opportunity Identification Validation & Execution Implementation

EstimatedSavings

EstimatedSavings

IdentifiedSavings

IdentifiedSavings

BudgetedSavings

BudgetedSavings

RealizedSavings

RealizedSavings

Draft & IssueRFP for Select Commodities


Segment and evaluate spend

Profile supply base Understand current

purchasing processes Develop basic

economics

Identify requirements Understand current

contracts Understand drivers of

cost Identify service/quality

issues

Develop & convert hypotheses into actionable ideas

Estimate potential savings by source

Categorize/prioritize opportunities

Identify “Quick Wins”


Analyze RFP Responses


Conduct Negotiations and

Finalize Agreement


Finalize Agreement

Screen and select suppliers

Compose and validate RFP

Release RFP Address supplier

questions

Assess Key Demand Issues and Tradeoffs


Identify Business Process

Opportunities


Opportunities

Gain Buy-In of Key Constituents


Formulate business case and estimate savings potential

Review and revise proposals

Identify champions

Initiate SavingsTrack Savings

Monitor Compliance


Monitor Compliance

Supply Side

Demand/Process Side

Establish screening criteria

Revise savings estimate

Short-list vendors Develop negotiation

strategy

Conduct negotiations Select final supplier(s) Resolve timing issues Finalize and sign

agreement(s)

Document strategy Create action/

transition plan Develop necessary

support systems Track progress

Product specification Order practices/

quantities Contract and policy

compliance

Define alternative approaches

Leverage best practices

Restructure operating models

“Workshop”

Develop Savings Hypotheses

Baseline Commodity

Identify Needs & Define Objectives

1

2 3

Today programmatic spend management is growing in importance as organizations want to find ways to do more with less

Scope of the CPO Agenda

What it means

What it comprises

“What are we trying to

achieve?”

Objectives, e.g.,

– Capture cost savings

– Support of agency wide initiatives

– Provide safe and reliable operations to all stakeholders

Alignment to Federal goals and intiatives

“How do we plan to achieve our mission?”

“What are we actually

achieving?”

Budgetary objectives

Mission support and readiness

Individual organizational goals

Technology

PerformanceManagement

Metrics Management

Process

Procurement Processes

Financial Management

MissionMission ResultsResultsVisionVision

Strategic Sourcing

Contract Mngt. Executional Client relations Supplier

management

Systems functionality

Accessibility / Usability

Organizational efficiency

Budgeting Track savings Performance

reporting

ObjectivesObjectives

Spend Visibility

Enterprise wide spend visibility is the catalyst for successfully impacting downstream activities

Data & System Integration

Pathway to Cost Savings

Compliance & Reporting

Creation of an integration layer to facilitate spend visibility and data transformation, both upstream and/or downstream


Leveraging the increased spend visibility through the development of an Opportunity Assessment to build a Strategic Sourcing Roadmap


Development of a closed loop process to build in robust compliance monitoring and cost savings performance


Defining a process to achieve an enterprise wide view of spend across the organization to leverage in the strategic sourcing and contracting processes


ArmyDataSource

Air ForceData Source

NavyData Source

Other Data Sources

Limited data sharing & integration

Some data are posted to local web sites

Local security limits cross Domain or cross Service access

Difficult to find the right web site with the right information

Numerous disparate applications

Many pointto point

connections

User

ArmyDataSource

Air ForceData Source

NavyData Source

Other Data Sources

Limited data sharing & integration

Some data are posted to local web sites

Local security limits cross Domain or cross Service access

Difficult to find the right web site with the right information

Numerous disparate applications

Many pointto point

connections

User

Understanding the primary challenges to obtaining increased breadth and depth of spend visibility is the first step to achieving it

Unique approaches such as Net-Centric Transformation creates increased data accessibility and usability

Post Netcentric TransformationCurrent State

• Data analysis was time consuming and may have required numerous resources

• Existence of a lack of trust in data

• Data resided in multiple systems and in inconsistent formats

• Data querying required knowledge of SQL

• Dissemination and reporting of data was limited

• Reactive decision making

• Increased data accessibility and reporting and analysis capabilities

• More reliable data and information

• Data resides in a data warehouse and in a common format

• User-friendly querying at varying levels of detail within the organization

• Data can be viewed and shared over the Internet

• Proactive decision making

Net-Centricity is the realization of a robust, globally interconnected network environment that includes infrastructure, systems, processes, and people in which data is shared in a timely and seamless manner among users, applications, and platforms. Net-centricity will ensure that users of information at any level can both take what they need and contribute what they know.

Net-Centricity is the realization of a robust, globally interconnected network environment that includes infrastructure, systems, processes, and people in which data is shared in a timely and seamless manner among users, applications, and platforms. Net-centricity will ensure that users of information at any level can both take what they need and contribute what they know.

A Net-Centric approach creates a virtual data warehouse as a backbone facilitating compliance, reporting and strategic sourcing…

Financial System 1(Oracle)

• Balance Scorecards• Dashboards• Interactive Reports• Static Reports• Data Mining

Data Warehouse

• OLAP• Ad-hoc ReportsFinancial

System 2(Peoplesoft)

Accounting System(Access)

Analytics• Organizational• Commodity• Procurement • Customer

Metrics & KPI’s• Number of Awards

by Buyer• Number of

Requisitions Rejected

• Length of Time from One Stage to the Next in Cycle

Procurement System(PRISM)

• Portal• Web Services

Multidimensional Cube

External Systems(FPDS, P Card, CCR)

Source Systems Data Stores Analytics & BI Services Users

Ext

ract

– T

ran

sfo

rm –

Lo

ad (

ET

L) Categorization

of spend

Optimization of the Supply Base

Opportunity for Strategic Sourcing

Off

ice

Su

pp

lies

IT S

ervi

ces

Tel

eco

m

Pri

nti

ng

Fac

iliti

es

Categorization of spend

Optimization of the Supply Base

Opportunity for Strategic Sourcing

…ultimately building an enterprise wide spend cube aids in identifying who you are buying from and what you are buying

2

1 Who do you buy from?

What are you buying?

Creation of an Enterprise Wide Spend Cube

Off

ice

Su

pp

lies

IT S

ervi

ces

Tel

eco

m

Pri

nti

ng

Fac

ilit

ies

3 How is it being Sourced?

Drawing and imaging software43161900Adobe /AE 5.5 PB Std-Pro M

File security software43162503Cobra+ 120GB 7200Rmp Firewall

Printer photocopier drums44103109HP LaserJet8500 Drum

Printing and writing paper14111500HI-SPD WHT 8-1/2X11 1000+

Toner44103103HP C4127X UP MAX CAPACITY

UNSPSC DescriptionUNSPSC

CodeTransactional Description






















$0

$5

$10

$15

$20

$25

Perceived Spend

Perceived Spend

Actual Spend

Actual Spend

Increased visibility will immediately aid in highlighting areas of opportunity that were not identified previously…

Primary issues driving a large delta between Actual and Perceived spend includes a lack of detailed transactional data, incorrect categorization and/or incorrectly identified corporate family spend

Utilization of a common spend taxonomy (e.g UNSPSC) and unique supplier ID (e.g. DUNS No.) will help to correctly set an accurate spend baseline

Spend by Supplier

Rationalizing the Supplier Spend Baseline and

US

$ M

illi

on

s

Developing Accurate and Actionable Dashboards

Demonstrated Best PracticesDemonstrated Best Practices

Build spend categories utilizing an industry accepted taxonomy

Leverage third party data to increase intelligence of analysis

Refresh data and dashboards on a regimented time interval


Compliance should be integrated across the dashboard views

Build spend categories utilizing an industry accepted taxonomy

Leverage third party data to increase intelligence of analysis

Refresh data and dashboards on a regimented time interval


Compliance should be integrated across the dashboard views

…and creates an inherent transparency at the enterprise level


Spend Visibility

The task of increasing spend visibility means evaluating process changes, tools and analytics












Organizations vary significantly as to current state and technology can play an essential role in incremental impacts

LaggardsLaggards Common PracticesCommon Practices Best in ClassBest in Class

Analysis Tools No standardized analysis tool Analysis performed on an ad-hoc

basis with data retrieved manually

Analysis performed on centrally stored information

Tools are local and non standardized (e.g. Excel, Power-point)

Analysis performed using data warehousing solutions

Standard analysis and reporting tools to support executive decisions

eSourcing and eProcurement

Tools

Locally (buyer level) maintained contracts

No standard procurement tool

Centralized contract management and spend analysis tools

Centralized eProcurement tools

Integrated sourcing and procurement tools with spend analysis

Auction to quote to contract tools Robust Portal management

capabilities to provide information

Single Platform Multiple non standard technologies Standardized platforms within business units but not across business units

Mostly common database platform

Standardized platform across business units

Business processes established to maximize effectiveness /efficiency

Applications Spotty supplier performance history based on the tracking capability of local materials management environments

Basic supplier buy and performance consolidation environment

Application technology now typified by contract to purchase terms links, and call-off / receipt / quality transaction data capture

Data No centralized data storage Data stored on individual machines Fragmented procurement transaction

history databases,

Excel, Access or other local database store data with manual and automated populations which are transmitted and centrally consolidated

Databases standardized within business units

Integrated sourcing knowledge bases based on robust databases

Consolidated sourcing and procurement data across business units

Increasing Sophistication

Contract Procure PayMonitor &

Report

Sel

ecte

d V

end

ors

To

ols

/F

un

ctio

nal

ity

Contract Life Cycle Mgmt (CLCM)•Creation•Negotiation•Optimization•Approval Support•Fulfillment Tracking•Repository

CLCM•diCarta•I-many•Upside Software •Ariba•Nextance•Hummingbird•Procuri•Oracle

Business Intelligence (BI) for contract compliance & supplier performance mgmt, spend data analysis, and mgmt reporting

Spend Data Enhancement/ Enrichment

BI•Hyperion•Business Objects•SASSpend Data Enhancement/ Enrichment

•D&B •Zycus•Austin Tetra

eRequisitioningeCatalog/Order ManagementReceipt and Acceptance Tracking

ERP vendors •SAP•Oracle•Peoplesoft

Pure-play procurement software vendors (e.g., Ariba, i2, Emptoris)

Invoice ManagementAccounts PayableThree-Way (PO/R&A/Invoice) Match

ERP vendors •SAP•Oracle•Peoplesoft

eSourcing •Spend Analysis•Supplier Discovery

•eRFx/Reverse Auction

•Sourcing Decision•Sourcing Activity Mgmt

•Supplier Assessment

•Bid Optimization

eSourcing•Ariba•Emptoris•Verticalnet•Frictionless Commerce (SAP)

•Oracle•Global eProcure•Procuri

Key Systems Issues:• Lack of systems

integration• Disparate data sources• Redundant data stores• Incongruent naming

conventions

Lead To:• Limited spend data• Lack of contract

visibility/compliance• Unauthorized, duplicate

payments

Source

The landscape of offerings and vendors is complex with many areas of overlap from contract management to reporting

Vendor Ratings Framework

Market Leaders

– Ariba and Emptoris are leaders with strong spend analysis and sourcing decision capabilities

Strong Competitors

– Global eProcure, Synertrade and Verticalnet have strong current offerings although face competition from suite vendors

Challengers

– Suite vendors like SAP, Oracle and Peoplesoft

Vendor Positions

Understanding product positioning and total cost/benefits requires a structured and disciplined approach to the evaluation process

Create an integration layer to clean, consolidate and standardize sourcing data from disparate systems across units and technologies

Map and Integrate data across multiple technologie

Develop spend analysis and reporting solutions over the integration layer to provide corporate wide spend analysis and decision making

Key Benefits Lower initial cost of implementation to develop the solution versus

standardizing on a single platform

Lower on-going maintenance costs due to data standardization and common reporting

Consolidated spend analysis across technologies and locations

Integrate Existing Technologies Solution Overview

Global ProcurementGlobal Procurement

Location Unit-1

Location Unit-1

Location Unit-2

Location Unit-2

Location Unit-3

Location Unit-3

LegacyLegacy SAPSAP OracleOracle

Corporate Head-Quarters

Locations

Technology

Integration LayerIntegration Layer

Spend Analysis

Spend Analysis eSourcingeSourcing Contract

Mngt. Contract

Mngt.

As an alternative to selecting a new technology platform organizations are creating an integration layer…

…depending upon the level of integration both upstream and downstream options exist for tools and data

Spend Analysis ToolSpend Analysis Tool

Direct DataDirect Data Transformed Data

Transformed Data

Integration LayerIntegration Layer

Sourcing Data

Direct DataDirect Data Transformed Data

Transformed Data

Sourcing Data

Global ProcurementGlobal Procurement

Locations Unit-1

Locations Unit-1

Locations Unit-2

Locations Unit-2

Locations Unit-3

Locations Unit-3



Locations

Technology

Upstream Integration (Tools, Data Normalization)Upstream Integration (Tools, Data Normalization)

Supplier Data

Supplier Data

TransactionalData

TransactionalData

Downstream Integration (Bolt-on, Data Normalization)Downstream Integration (Bolt-on, Data Normalization)

Supplier Data

Supplier Data

TransactionalData

TransactionalData

Enterprise ViewData Cleansing View


Spend Visibility












Leveraging the increased spend visibility naturally translates into developing a Sourcing Opportunity Assessment

The evolution of spend transformation will be an enabler to identifying and executing against sourcing opportunities…

Procurement Value Levers

Increase coverage of spend

Basic cost insights

Credible threat to switch supplier

– “Designed-in” competition

– Consistent messages

Tenders / auctions

Multi-year target commitments

Timing of the buy for traded commodities

Rationalise supplier base

Switch to cost advantaged suppliers

Manage drivers of total cost of ownership, to reduce Internal costs

Reduce internal process burden to manage supply and transaction flow

Streamline logistics at supplier interface

Reduce consumption

Reduce specification

Standardise according to overall product architecture

Use industry standards instead of custom designed parts

Switch to substitute technologies with desired functionality

Leverage supplier innovation capabilities

Find appropriate make/buy/ outsource balance across supply chain tiers

Source and compete for business at tier 2 of supplier base

Supplier base restructuring

Influence product mix/regional preferences to favour products with greater supplier base leverage

PriceLevers

CostLevers

DemandLevers

ValueLevers

Sourcing function enablesProcurement function delivers

Strategic Sourcing Impact

3-5% opportunity ± commodity pricemovements + value of growth

8-25% opportunityover 6-24 month time horizon


EstimatedSavings

EstimatedSavings

IdentifiedSavings

IdentifiedSavings

BudgetedSavings

BudgetedSavings

RealizedSavings

RealizedSavings






economics




issues









Finalize Agreement


Finalize Agreement




questions




Opportunities


Opportunities





Identify champions


Monitor Compliance


Monitor Compliance

Supply Side

Demand/Process Side




strategy


agreement(s)






compliance




“Workshop”


Baseline Commodity


…and developing Savings Hypotheses which can aid the organization in meeting its socio-economic goals

2

Identifying high priority opportunities and gaining buy-in to the process requires organizational involvement…

Identify opportunities, quantify and qualify

Initial long list of hypotheses

Develop actionable opportunities

AreaArea Savings LeverSavings Lever

SupplySupply

Global agreement

Bundling HW/SW and Services when applicable

Don’t buy

Global agreement


Don’t buy

ExplanationExplanation

Some purchases are questioned (PDAs)


% Savings Target

% Savings Target

Realization Obstacles


11


Understanding exactly what is being bought

Resources for implementation



DemandDemand

Promote desktops vs laptops

Lease vs buy – and buy after three years for using another year at cheaper costs than year leasing

Buy batches end of market cycles HW

Substitutes solutions

Consolidated servers

Purchase processing powers







Substitutes: use PDA but no laptop!


11


Users reluctance


Users reluctance

TotalTotal 10-15%10-15% 11

- IT Hardware Sourcing Strategy Blueprint -

Legend 0 4Low complexity High complexity

AreaArea Savings LeverSavings Lever

SupplySupply

Global agreement


Don’t buy

Global agreement


Don’t buy




% Savings Target

% Savings Target



11






DemandDemand















11


Users reluctance


Users reluctance

TotalTotal 10-15%10-15% 11

- IT Hardware Sourcing Strategy Blueprint -

Legend 0 4Low complexity High complexityLegend 0 4Low complexity High complexity

21 3

Booz Allen Commodity Workbooks

Sourcing Opportunity Framework

Interviews

Segment higher priority

opportunities

Commodity Complexity Value chain transparency Number of specifications Complexity of drawings

Organizational Impact Budgetary impact in current

fiscal year Make vs. buy

Switching Costs Transition plan Risk mitigation Knowledge transfer

Total

Relative Ranking Based on Opportunity Criteria

50% 40% 30% 20% 10% 0% +10% +20% +30% +40% +50%

ParityParity AdvantagedAdvantagedDisadvantagedDisadvantaged

EXAMPLEEXAMPLE

Opportunity A Opportunity COpportunity B

Average OfAbsoluteRankings

…and employing a quantitative approach to run hypotheses to ground is a practical approach to building consensus

Finding the right sourcing approach to apply to the opportunity depends on the criticality and the complexity of the category

Multiple dimensions driving high value chain complexity, e.g. tough requirements on delivery times, large variety of products, short product life-cycles, high level on built-in structural costs

Rapid sourcing focusing on supply side

levers

Strategic sourcing focusing on supply and

demand side levers

Collaborative Sourcing addressing the entire value

chain

Complexity of value chain/

benefits capture

Complexity of value chain/

benefits capture

Level of criticalness for own business, e.g. total cost impact and operational impact

Strategic importance Strategic importance

Low

Medium

High

HighLow Medium

Incremental value

vs. effo

rt to capture value

Sourcing Approach Framework

Mutual willingness to participate is a prerequisite for collaboration.

Mutual willingness to participate is a prerequisite for collaboration.

Striking the right balance between collaboration and competition is key to successfully executing against the sourcing opportunity

Collaboration Competition

RelationshipEnablers

Building and Sustaining Supplier Relationships

Building and Sustaining Supplier Relationships

Defined and clearly communicated supplier roles

Supplier and internal process improvement targets

Investment in supplier development

Defined and clearly communicated supplier roles

Supplier and internal process improvement targets

Investment in supplier development

Maintaining Competition Among Suppliers

Maintaining Competition Among Suppliers

Supplier commitment to competitiveness and continued cost reductions

External benchmarking Exit clauses

Supplier commitment to competitiveness and continued cost reductions

External benchmarking Exit clauses

Balance

RelationshipProcesses

Integrating Value ChainIntegrating Value Chain

Working a joint improvement agenda

Aggregate capacity planning Benefit sharing Communication and info sharing Investment in infrastructure E-procurement

Working a joint improvement agenda

Aggregate capacity planning Benefit sharing Communication and info sharing Investment in infrastructure E-procurement

Measuring Economic Viability of RelationshipMeasuring Economic

Viability of Relationship

Performance measurement Performance monitoring Corrective action plans Ongoing competitive assessment

Performance measurement Performance monitoring Corrective action plans Ongoing competitive assessment

Achieving Balanced Sourcing


Spend Visibility

Engineering in a robust compliance and reporting process is key to the measurement of progress made against organizational goals…












…yet spend compliance is the leading challenge for organizations today and addressing the “spend compliance gap” is critical


EstimatedSavings

EstimatedSavings

IdentifiedSavings

IdentifiedSavings

BudgetedSavings

BudgetedSavings

RealizedSavings

RealizedSavings






economics




issues









Finalize Agreement


Finalize Agreement




questions




Opportunities


Opportunities





Identify champions


Monitor Compliance


Monitor Compliance

Supply Side

Demand/Process Side




strategy


agreement(s)






compliance




“Workshop”


Baseline Commodity


3

Savings leakage can be attributed to a number of issues related to transparency and the alignment of the organization to common goals

Chief Reasons for Savings LeakageChief Reasons for Savings Leakage

Lack of clear responsibilities, procedures and controls for ensuring spend and performance compliance

Insufficient infrastructure to communicate negotiated terms to all relevant stakeholders

Limited involvement of internal functions or stakeholders in sourcing requirements development, supplier discovery, and sourcing award decision making activities

No executive mandate or support for compliance with negotiated agreements

Lack of clear responsibilities, procedures and controls for ensuring spend and performance compliance

Insufficient infrastructure to communicate negotiated terms to all relevant stakeholders

Limited involvement of internal functions or stakeholders in sourcing requirements development, supplier discovery, and sourcing award decision making activities

No executive mandate or support for compliance with negotiated agreements

METRICSMETRICS

Alignment begins with an executive mandate and vertical integration of organizational metrics to establish a performance baseline

PERFORMANCE MANAGEMENT

ALIGN KPIs & TARGETS

Align KPIs and targets with interfacing functions

Complement financial KPIs with strategic KPIs to align with organizational strategies

Report higher order KPIs for the function as a whole

Maintain category and specific KPIs for contract performance and management

Align KPIs and targets with interfacing functions

Complement financial KPIs with strategic KPIs to align with organizational strategies

Report higher order KPIs for the function as a whole

Maintain category and specific KPIs for contract performance and management

Sr. Mgmt Metrics

Indicator Metrics

Indicator Metric

Indicator Metric

Detailed Metric

Detailed Metric

Detailed Metric

Detailed Metric

Detailed Metric

......

DATA

...... ...

Ultimately, technology can play the role of enabler but it is clearly the role of management to define organizational performance and build processes to measure against it

ProcurementProcurement

Locations Unit-1

Locations Unit-1

Locations Unit-2

Locations Unit-2

Locations Unit-3

Locations Unit-3



Locations

Technology

Upstream Integration (Tools, Data Normalization)Upstream Integration (Tools, Data Normalization)

Supplier Data

Supplier Data

TransactionalData

TransactionalData

Downstream Integration (Bolt-on, Data Normalization)Downstream Integration (Bolt-on, Data Normalization)

Enterprise View Bolt-on applications validating supplier and

requisition compliance

Spend analytics identifying non-compliance through spend rationalization and categorization

Leveraging eForms in upstream integration applications for supplier on-boarding and compliance approval flows

Key Benefits Requires only incremental investments leveraging existing

platforms, providing substantial impacts on realized cost savings due to higher compliance percentages

Strong downstream impact from increased spend visibility providing insight into more accurate spending patterns

Integrating Compliance

SummarySummary

Fully Automated SpendManual Spend Analysis Spend Analysis Continuum

Automated enterprise wide spend analysis, provides the strongest foundation for programmatic sourcing, benefit capture, performance alignment and compliance

Incremental increases in investment, to capture greater spend visibility, through a Net-Centric Data Strategy, can provide significant value through increased cost savings identification and capture

Development of a spend integration layer, and the deployment of upstream spend tools and processes, will aid downstream value capture and increased levels of compliance

Utilization of commercial best practices, tools and processes, in developing spend analytics and sourcing strategies, will directly impact the learning curve and the results achieved

Documents

Breakout Session # 2104 Thomas Pfeiffer, Sr. Associate, Booz Allen Hamilton Rajendra Rathod, Associate, Booz Allen Hamilton April 24, 2007 10:45 am – 11:45