The Faculty CPO Forum Singapore Bangalore Manila Melbourne Mumbai Sydney Tokyo. Erich Winsloe / Head of Regional Procurement APJ, SAP May 14-15, 2014

Transcription

1 The Faculty CPO Forum Singapore Bangalore Manila Melbourne Mumbai Sydney Tokyo Erich Winsloe / Head of Regional Procurement APJ, SAP May 14-15, 2014

2 Agenda SAP s Procure-to-Pay Organization Innovations at SAP s P2P Organization The SAP Runs Ariba Program Our keys to Success/ Future Plans Q & A 2014 SAP AG or an SAP affiliate company. All rights reserved. 2

3 SAP s Procure-to-Pay Organization

4 SAP Vision, Goals and Structure GPO* vision is to help SAP buy better and be a trusted advisor to the business for all procurement related activities, globally Structure Goals CPO and Procure-to-Pay Business Owner Cover all units of SAP centrally with prioritized geographies Leverage purchasing power and drive sustainable savings Category Procurement strategic and tactical sourcing Procurement Shared Services operational procurement Operational Shared Service* accounts payable Deliver best-in-class procurement processes and highest possible service levels to internal customers Mitigate risk to SAP 44 Locations Worldwide Be a fair partner to our suppliers * Global Procurement Organization 2014 SAP AG or an SAP affiliate company. All rights reserved. 4

5 SAP Key Facts and Figures for 2013 Key Facts Spend by Region 65,000+ Global SAP employees >460,000 PO Line Items billion Revenue 2013 >730,000 Annual invoices billion Spend 2013 >780,000 Trip Entries ,000+ Global suppliers 420 FTE in P2P AMERICAS 33% EMEA 54% ASIA PACIFIC 13% 2014 SAP AG or an SAP affiliate company. All rights reserved. 5

6 Strategic importance of procurement SAP Procurement Transformation Journey Operational Partner Tactical Partner Strategic Partner SAP SRM Globalization E2E Process Simplification Automation Strategic Solutions Providing SAP AG or an SAP affiliate company. All rights reserved. 6

7 One of the key challenges to achieve our goals: Too many ineffective approaches for B2B collaboration Non-standardized processes Suppliers Manual paper-based collaboration Mail, Phone, Face-to-Face Wasted time and resources Higher operating and supply chain costs Delayed payments, overpayments and missed documents, slow cash flows. EDI (Electronic Data Interchange) Enterprise and Supplier Portals Poor compliance Objective: Increase overall efficiency and effectiveness of the team 2014 SAP AG or an SAP affiliate company. All rights reserved. 7

8 Innovations at SAP s P2P Organization

9 Simplify the user experience with a mobile-first experience Procure-to-Pay Innovations at a Glance 1 2 New Catalog/ Google fast and Amazon like shopping experience with Ariba Catalog Mobile Solutions Improved Usability and increased Manager Effectiveness 3 Analytics 4 Procurement Dashboards are key to manage the Procure-to-Pay Process SAP Cloud for Travel & Expenses Reduced time with faster reimbursement and increased employee satisfaction Ariba Cloud / Business Networks Reduced Process costs and faster cycle times Leveraging purchasing power of SAP 2014 SAP AG or an SAP affiliate company. All rights reserved. 10

10 1.1 Ariba Procurement Content New catalog close to an Amazon-like Shopping experience for end-users Old Catalog Ariba Catalog 2014 SAP AG or an SAP affiliate company. All rights reserved. 11

11 1.2 SAP runs Ariba - Ariba Procurement Content 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 2014 SAP AG or an SAP affiliate company. All rights reserved. 12

12 1.3 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 3. User friendly User-Interface Simple and intuitive 2014 SAP AG or an SAP affiliate company. All rights reserved. 13

13 2. SAP Cloud for Travel and Expense at SAP Reduced time with faster reimbursement and 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 Expense report creation via an Outlook meeting request 2. Mobile and flexible Mobile apps for ipad, iphone, Android smartphones and Blackberry available 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 2014 SAP AG or an SAP affiliate company. All rights reserved. 14

14 3. Ariba Spend Visibility New Analytics Frontend to have full transparency on Spend data to define Sourcing Strategies 1. Mobile and flexible Flexible filter criteria to customize reports to individual needs Extracts can easily be send via HANA and Supplier Dashboard accessible on ipad 2. Real time Real time data available in the SAP HANA Dashboard Fast access to information allows immediate reaction on any kind of change incl. crisis 3. User friendly User-Interface Simple and intuitive Full end-to-end process transparency 2014 SAP AG or an SAP affiliate company. All rights reserved. 15

15 4. Ariba Cloud and SAP On Premise Procurement Solution Reduced Process costs and faster cycle times Industry s only complete & integrated Source-to-Pay suite, on-premise and in the cloud with network Procure-to-Pay Process Demand Planning / Aggregation and Spend Analytics Sourcing / Procurement and Contract Management Supplier Management Invoice Management and Accounts Payable Ariba Spend Visibility Ariba Collaborative Commerce Ariba Collaborative Sourcing Ariba Cloud & Network Solutions Ariba Collaborative Finance Ariba Procurement On Demand SAP On Premise Solutions FI PM PP SAP Business Suite MM SCM SRM Sourcing CLM SPM 2014 SAP AG or an SAP affiliate company. All rights reserved. 16

16 The SAP Runs Ariba Program

17 For us in GPO, we see with a powerful combination of SAP and Ariba 220,000+ Customers 16.3B total SAP revenue 5M+ Users >1 million Companies in 190 countries 63% Of the world s transaction revenues touch an SAP system 34 Languages 1200 New network suppliers weekly $460B+ Commerce conducted annually 2014 SAP AG or an SAP affiliate company. All rights reserved. 18

18 Program Step 1: The Supplier Match for SAP 12 % of our suppliers are on Ariba 34 % of our Invoices come from those suppliers 45 % of our Top 100 suppliers matched 2014 SAP AG or an SAP affiliate company. All rights reserved. 19

19 Program Step 2: Selection of Initial Ariba Cloud Solutions Selected Ariba Solutions Single Point for Business Collaboration Ariba Supplier Management Maintain Supplier Profile Information Ariba Sourcing RFI, RFP, eauction Ariba Procurement Content Catalogs, Punch Out Catalogs Ariba Collaborative Commerce PO, OC, ASN, Invoice, Invoice Status Ariba Spend Visibility SAP Suppliers SAP Global Procurement 2014 SAP AG or an SAP affiliate company. All rights reserved. 20

20 Program Step 3: Implementation of Hybrid Model by orchestrating SAP On Premise and Ariba Cloud Solutions Strategic and tactical procurement Operational Procurement Accounts Payable and T&E Spend Visibility Supplier Manageme nt esourcing Contract Management Catalog Procurement Content Service Procurement SRM on HANA Self Service Procurement ERP on HANA Purchasing/ Invoicing Purchase Order, Invoice Status Ariba Discount Pro Supplier Supplier Ariba Cloud Solutions Vendor Invoice Management by Open Text Invoices, Order Conf., ASN Supplier Ariba PO & Invoice Automation 2014 SAP AG or an SAP affiliate company. All rights reserved. 21

21 Thousands/ Week Program Step 4.1: Measure and Refine Example for Invoice Management Actually 28,019 invoices have been posted (target: 28,600) Capacity actuals increased compared to previous week * 1,145 suppliers enabled on ERP 3.0 Processed invoices December 19th Jun-13 1-Jul-13 1-Aug-13 1-Sep-13 1-Oct-13 1-Nov-13 1-Dec-13 1-Jan-14 Invoice planned Invoice actuals Capacity planned Capacity actuals * Please note that capacity actuals also include invoice count for suppliers enabled for PO only 2014 SAP AG or an SAP affiliate company. All rights reserved. 22

22 Program Step 4.2: Measure and Refine Example for Invoice Management Transacting Document Count History 80,000 70,000 60,000 50,000 40, ,000 20,000 10,000 - PO Count (1 Year) Invoice Count (1 Year) >3.000 invoices per week since beginning of 2014 (38% ARP) 2014 SAP AG or an SAP affiliate company. All rights reserved. 23

23 SAP runs Ariba Benefits we achieved since Go-Live in June 2013 Ambitious objectives defined: 7% annual savings, 50% increase in automation by 2014 and overall 20% productivity gain in end-to-end P2P process by months implementation time using an SAP rapid-deployment solution to connect to the Ariba Network (record time) More than 200m sourced via ARIBA. First ARIBA eauction led to significant savings More than 57,000 supplier invoices already transmitted via ARIBA -> automation in Procure to Pay (Target 190,000 invoices) More than 1,200 top suppliers of SAP are already live on ARIBA More than 500m PO Value already transmitted via ARIBA on ARIBA 2014 SAP AG or an SAP affiliate company. All rights reserved. 24

24 Our key to Success / Future Plans

25 Our Team s Keys to Success Implementation Approach Project Management Focus Implementation of vanilla standard OnDemand Ariba solutions Use of SAP Rapid Deployment Solution (RDS) Use of scrum project methodology Coordination of involved business groups (Internal IT / Business / Ariba) Harmonization of four workstreams and alignment with supplier enablement efforts Simplification and standardization Focus on enablement of suppliers already registered on the network first Highly motivated teams taking responsibility The team implemented in just 3 months record speed! 2014 SAP AG or an SAP affiliate company. All rights reserved. 32

26 Our Optimization Strategy Achievements in 2013 and Future Outlook Summary Leverage the Ariba Network by bringing all 1,000 top suppliers (spend > 500k ) on a business collaboration platform enables Implement highly automated Ariba Cloud Solutions for Strategic Procurement and Accounts Payable Roll-out Roll-out Roll-out Roll-out Roll-out Roll-out accelerates Single Point for Business Collaboration Ariba Cloud Solutions Team Targets: 7.0% Annual Savings (Sourcing) 50% increase in invoice automation by % productivity gains by SAP AG or an SAP affiliate company. All rights reserved. 33

27 Q & A The Faculty CPO Forum

28 Thank you Erich Winsloe Head of Regional Procurement APJ Global Procurement Organization SAP Asia Pte Ltd 30 Pasir Panjang Road, Tower B #03-32, Mapletree Business City Singapore SAP AG or an SAP affiliate company. All rights reserved.