Role of ProcuretoPay Technology Todays Presenter Vaibhav Pani Senior Solutions Consultant ANZ Zycus Inc Vaibhav has been handling the presales responsibility for Zycus since nearly 4 years and has been instrumental in helping large global organizations based in the ANZ region t ID: 584836
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Slide1
TAMING INDIRECT SPEND
Role of Procure-to-Pay TechnologySlide2
Today’s Presenter
Vaibhav
Pani
Senior
Solutions Consultant
(ANZ)
Zycus Inc.
Vaibhav
has been handling the presales responsibility for Zycus since nearly 4 years and has been instrumental in helping large global organizations based in the ANZ region to enhance their upstream and downstream procurement processes with Zycus’ procurement performance solutions. Slide3
Comprehensive Source to Pay SuiteSlide4
Procurement landscape & indirect spend influenceSlide5
Characteristics of Indirect SpendSlide6
Segmentation of Procurement Landscape
High
Spend
& High
Volume
Commodity
Many Vendors
Can
Leverage Competitive Market
Key
To Core Business
Key
to core business
Vendor dependency Price controlled by government No true substitutes
Not key to core business Many Vendors Large usage from numerous end users across the organization
Low price negotiation levers Price controlled by market movement
HIGH
Supply Market Complexity
Business Impact
Leverage
Non - Critical
Strategic
Bottleneck
LOWSlide7
Segmentation of Procurement Landscape
High
Spend
& High
Volume
Commodity
Many Vendors
Can
Leverage Competitive Market
Key
To Core Business
Key
to core business
Vendor dependency Price controlled by government No true substitutes
Not key to core business Many Vendors Large usage from numerous end users across the organization
Low price negotiation levers Price controlled by market movement
HIGH
Supply Market Complexity
Business Impact
Leverage
Non - Critical
Strategic
Bottleneck
LOW
Green field for indirect
A mix of direct and indirect – easier to capitalize
Mainly indirect – Very difficult to capitalize
Mainly direct expenditureSlide8
Poll Question - Indirect spend influenceWhat percent of indirect spend does your organization influence currently?
<
40%
40 - 60%
60 – 80%
> 80%
Not awareSlide9
Indirect Spend Influence
Almost two-thirds of procurement organizations influence less
than
70
%
of indirect spending
Source – Zycus P2P Benchmark Study Part1
X axis - % of indirect spend influenced
Y axis - % of respondentsSlide10
Proven Sources of Savings – Indirect SpendSlide11
Indirect spend KPI’s – BENCHMARK STUDYSlide12
Contract compliance – Benchmark Study
Source
– Zycus P2P Benchmark Study Part1
Respondents
Indirect SpendSlide13
Budgetary Compliance – Benchmark StudySource – Zycus P2P Benchmark Study Part1
Respondents
Indirect SpendSlide14
Capturing Early Payment Discount – Benchmark Study
Source – Zycus P2P Benchmark Study Part1
Respondents
Indirect SpendSlide15
Indirect spend with detailed spend visibility – Benchmark Study
Source – Zycus P2P Benchmark Study Part1
Respondents
Indirect SpendSlide16
Role of procure-to-pay technologySlide17
Poll QuestionHow does your organization currently manage your Procure-to-Pay processes?
Manual
ERP based
Cloud based best-in-class P2P solutions
Not awareSlide18
How Procure-to-Pay solution can help?
“P2P solutions can deliver tremendous return on investment for private- and public-sector organization through improved compliance to contracts, quicker order processing cycle times and better adherence to budget.”
“
Build a Compelling Procurement
Business Case
for
Indirect Procure-to-Pay Technology” - Slide19
Managing Indirect Spend with next generation P2P Slide20
Managing Indirect Spend with next generation P2P Slide21
Back-Office Operations
EfficiencySlide22
Managing Indirect Spend with next generation P2P Slide23
Managing Indirect Spend with next generation P2P Slide24
Approaches for standardization
Commercial arrangements are emulated in terms of end-user friendly catalogs
Give
requisitioners
an experience of an online consumer
Usually setup with strategic
suppliers with established
contracts
Large suppliers with
eCommerce
websites who cater to a large number of indirect categories (
Eg. Staples, Officeworks, Dell)Services, one-time buys, OEMs
Major portion of purchasing processesCOMPLIANCE BLINDSPOT – DIFFICULT TO STREAMLINE PROCESSES!Slide25
Spend at risk – by the numbersSlide26
Evil of free form requestsSlide27
Ways to combat the evil of free-form requestsCategory
classification at the point of requisition – Needs to be accurate!
Category
specific forms for avoiding back-and-forth between
requisitioners
and buyers
Category
specific approval workflows for inclusion of relevant stakeholders
Category
specific budgetsCategory specific tolerance levels for proper invoicing – Making life easy for AP!Category specific account assignment – Making life easy for AP!Category based spend analysisSlide28
Enforcing compliance by guiding end usersSlide29
Next Generation P2P solution advantagesSlide30
Technology Enablement – A snap shot
Easy to use consumer-like experience for
requisitionersSlide31
Technology Enablement – A snap shot
Easy to use consumer-like experience for
requisitioners
Actions via mobileSlide32
Technology Enablement – A snap shot
Easy to use consumer-like experience for
requisitioners
Emulate simple and complex business processes
Actions via mobileSlide33
Technology Enablement – A snap shot
Easy to use consumer-like experience for
requisitioners
Emulate simple and complex business processes
Category specific recommendations and preferred/contracted supplier recommendations
Actions via mobileSlide34
Poll QuestionWhat according to you is the biggest challenge in implementing a procurement enhancement solution?
Internal Resistance to Change
Weak Interest/support from stakeholders
Inadequate technology
Weak Interest/support from
exec management
Poor information infrastructure
Poor integration with other functions
Inadequate professional skillsets
OtherSlide35
Change Management – The biggest roadblock
Change management among spend stakeholders is the number one obstacle for enterprise procurement organizations in Australia/New Zealand companies.
Source - Procurement Performance Pulse Report ANZSlide36
Dealing with Challenges in Procurement AutomationSlide37
Dealing with Challenges in Procurement AutomationSlide38
Dealing with Challenges in Procurement AutomationSlide39
Dealing with Challenges in Procurement AutomationSlide40
Dealing with Challenges in Procurement AutomationSlide41
Technology enablement checklistSlide42
Technology Enablement Checklist
What are the pain points
?
How do you tackle these pain points?
What is going to be your evaluation
strategy for the solution provider?
The functionalities are good. But does it deliver value
?
Are the features practical?
Do you have strong management backing
?
How will the solution interface with the existing IT ecosystem?How Change management strategy and migration from existing processes will impact everyone?Slide43
Upcoming eventsSlide44
Upcoming demo connectsSlide45
Upcoming demo connectsSlide46