Altus Alliance

Feb 5, 2016

P2P

Readiness

&

Transformation

Agenda

• Introductions (5-10 mins)

• P2P Readiness (10-15 mins)

– Drivers

– Business Case

• P2P Transformation (10-15 mins)

– Platform Integration

– Order Method Transformation

• Q & A (5-10 mins)

INTRODUCTIONS

Presenter information

Kevin WallCountry Manager - Canada

cloudBuy

416-951-6326

Kevin.Wall@cloudBuy.com

• Founded in 1999

• Headquartered in UK

• Listed on UK AIM Stock Exchange since 2005

• Operations in UK, India, USA, Australia, HK, Singapore

• Canadian Sales

• cloudBuy e-commerce platform meets the highest security standard of the payment industry -PCI DSS Level 1 compliant

• 5-year partnership agreement with Visa AP (to the end of 2019)

• cloudBuy CEO, Lyn Duncan, profiled as cloudBuyrecognised as one of the 20 most valuable CloudComputing Companies

cloudBuy

cloudBuy Source-to-Settle modules

• Rationalize Spend– Spend Analytics

– Category Management

– Strategic Sourcing

– Contact Management

• Optimize Procurement– Supplier Management

– Purchasing

– Invoice and Payment

– Metrics, Reporting, Analytics

cloudBuy P2P

• Automated P2P platform

• Easy, approved ordering

• Automated invoice processing and payment

• Accurate and timely visibility in ERP

• Decrease order processing time and costs

• Reporting and Metrics

• innovative pricing model

cloudBuy Customers

• B2B focus

• Government, Public Sector, Education, Health

• 5,000+ organizations in marketplace

• 1M+ users

• 2.3M+ products available

cloudBuy / Altus / NAV

• Good business fit for customers

• P2P increases value of NAV investment

– Extend the reach of NAV in organization in new ways

– New key data shared with NAV increasing value of reports

– 2 way synchronization through order lifecycle

• Interesting for existing Altus / NAV customers

• Interesting for new Altus / NAV customers

P2P

READINESS

P2P Readiness Questions

• Is procurement an important part of your business?

• Are processes and policies no longer meeting business

needs (governance, compliance, costs, visibility,…)?

• Can you envision a better way?

• Is there a business case for change?

• Is there a way to change?

P2P Business Drivers

• Increasing demands from business units

• Increasing demands for compliance and legislation

• Simplified, approved purchasing– In accordance with governance and compliance framework

• Pressure for reducing cost of procurement

• Increasing need for financial visibility• Auditing

• Planning

• Optimizing

Common ‘as-is’ problems

• Disparate order methods

– Paper, vendor sell-side, others

• Manual steps throughout order lifecycle

• Different approval hierarchies

• Different/limited visibility in ERP

• Different receiving practices

• Different invoice matching strategies

• Difficult to get metrics

• Difficult to analyze and make decisions

• Difficult to measure vendor performance

Scenario 1 – Paper based orders

• Paper based ordering from approved vendors

• High transaction volume

• Low dollar value purchases

• Goals

– Simplify shopping and approving process

– High ERP visibility

– eInvoicing

– Automated matching (2/3/4 way matching)

– Automated vendor payment

Scenario 2 – Vendor Sell Side Stores

• Shoppers access vendor sell side store

• PR created in vendor store

• Approvers access vendor sell side store

• PO created in vendor store

• Order status and history tracked in vendor store

• Receipting usually not part of vendor store

• Orders/Invoices are somehow received in AP and

entered into ERP

Scenario 3 – ERP with manual processes

• Shopper creates PR (paper, spreadsheet, etc)

• ERP user data enters PR into ERP

• Approvers use ERP to approve

• PO created in ERP

• PO somehow sent to Vendor

• Receipting (ERP or other system)

• Invoices received from Vendor (paper, electronic)

• Matching Strategy applied (manual, other system, ERP)

• ERP commitments

• Vendor payment process

P2P Goals

• Easy, approved ordering

– Right vendors, right pricing and terms

• Automated invoice processing and payment

• Accurate and timely visibility in ERP

• Decrease order processing time and costs

• Reporting and Metrics

P2P Readiness - Business Case

• Extremely collaborative process

– Many stakeholders (procurement, AP, Fin, BU, Vendors)

– Blend of unique organization and best practices

• Identify and measure the as-is processes

• Define the desired ‘to-be’

• Create meaningful, relevant ROI model

• Realistic transformation plan

– Phases (an ordered sequence that delivers value)

– Schedules (realistic)

– Roll-out plans (realistic)

• Identify Risks

P2P

TRANSFORMATION

P2P Transformation Phases

• Integrate P2P with existing systems

• Prioritize order methods to move into P2P

• Move order methods sequentially (not parallel)

• Get order method rock-solid, and rolling out, before starting next

• Don’t under estimate the level of effort and schedule for roll out

Order Method Transformation

• As-is: How does it work today?

• To-be: How would we like it to work?

– Adhere to financial policy requirements

– Optimize (remove unnecessary steps)

• Map the ‘to-be’ into P2P flexible workflow

• Configure P2P workflow

• POC/Test this order method in P2P

• Make any necessary changes

• Sign-off

• Roll out to user community

P2P Transformation Phases (order methods)

Conceptual Workflow Stages

P2P workflow planning

• Flexible workflows to accommodate key variations:

– Shopper profiles

– Approval hierarchies

– Receipting

– Matching

– … and more

Q & A

FIN

Thank You!