Upload
dothuan
View
248
Download
7
Embed Size (px)
Citation preview
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?
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7 Public
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%
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10 Public
Procurement Content New Catalogue close to an ‘Amazon-Like’ Shopping experience for end-users
Old Catalog Ariba Catalog
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12 Public
Mobile Shopping Cart Approval Simplified Approval: Improved Manager Effectiveness
1. Mobile and flexible
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
Simple and intuitive
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13 Public
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
2. Mobile and flexible
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)
Simple and intuitive
Coming soon:
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16 Public
“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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 20 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22 Public
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 23 Public
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.
Questions?
© 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]