SUPPLIER ENABLEMENT: THE PATH TO 100%

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Gregory Robertson
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2 SUPPLIER ENABLEMENT: THE PATH TO 100% Christopher S. Sawchuk Meredith Volpe Amy Fong Richard Landerholm, Myron Gramelspacher Principal & Global Procurement Advisory Practice Leader Eprocurement systems Manager Principal, Procurement and Purchase to Pay Advisory Global Supplier Manager Sr Director, Global Indirect Sourcing & SC Greif, Inc. The Hackett Group The Hackett Group Woodward, Inc. Greif, Inc.

3 Top performers leverage electronic transactions far more than peers, however invoice automation is still a challenge for most organizations 42% of POs are Fully Automated No Touch Compared to 68% for Top Performers 19% of Invoice Receipts are Electronic Compared to 70% for Top Performers Most companies approach e-invoicing with realistic expectations of onboarding high volume suppliers, but often fall short 62% of suppliers targeted for e-invoicing Only 49% on-boarded 49% of suppliers targeted for e-invoicing Only 32% automated Source: 2015 Hackett P2P Performance Study Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group, The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 3

4 While software vendor fees are an often cited challenge, resource constraints and awareness are also a significant barrier to supplier enablement The software vendor s fees discourage suppliers from 65% A lack of dedicated internal resources to focus on Ineffective and manual existing onboarding process A lack of supplier awareness around the initiative Integration requirements are too much of a burden on the Insufficient and/or inaccurate supplier master data 40% 40% 35% 30% 30% Initial business case didn t allocate enough time or budget Suppliers on the software vendor s network need additional A lack of sufficient dedicated resources from the software 10% 15% 20% 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group,

5 The cost and effort to enable a supplier on a supplier network can be significant $ $925 Estimated total cost to onboard a supplier to a network Average time to onboard a supplier Total days from start to finish 17 Hours 16 Days 47% of respondents were unable to estimate supplier onboarding costs 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group,

6 Successful enablement requires a joint effort internally and externally Implementation Tactic % Using Primary Responsibility Creation of data upload utilities 88% PR IT Creation of data definition documents to map interface 88% IT SW Setup of supplier security roles and data access rules 82% PR IT SW Staffing a dedicated supplier onboarding help desk/hotline 77% PR SW Creation of supplier onboarding guide and FAQ documentation 75% PR AP SW Providing testing and data validation services 71% AP SW Generating supplier onboarding status reports 69% AP SW Configuration of online/supplier self-service data entry screens 59% SW 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: E-Invoicing/Supplier Onboarding Poll, The Hackett Group,

7 COUPA INVOICING CHANNELS DIRECT CONNECTION PORTAL SUPPLIER ACTIONABLE NOTIFICATION AP INBOX PAPER / OCR / LEGACY

8 GREIF S SUPPLIER ENABLEMENT STORY: THE PATH TO 100%

9 250 Over 250 operations >50 Operations in more than 50 countries $3.6 BILLION Over $3.6 billion in sales 13,500 Approximately 13,500 employees worldwide

10 GREIF ORIGINAL SITUATION Maverick spend, no centralized system for indirect purchases Poor spend visibility & control 0% e-invoicing for indirect spend: all paper Needed a centralized global e-procurement system and e-invoicing solution Solution must be scalable

11 COUPA IMPLEMENTATION Internal cross-collaboration was key in decision (AP, IT, Sourcing, Supply Chain, Plants) 4.5 months implementation Significant cultural change for plants & users Supplier onboarding important for success

CURRENT RESULTS AND VALUE TO GREIF Around 3,500 active suppliers fully

at 87% Leveraging actionable notifications to drive increased adoption

Strategic discussions beyond price Supplier relationships: Enabling catalogs

12 CURRENT RESULTS AND VALUE TO GREIF Around 3,500 active suppliers fully electronic More than $220MM invoiced spend annually Currently e-invoice volume at 87% Leveraging actionable notifications to drive increased adoption Supplier visibility: Real-time access to payment status Supplier trust: Strategic discussions beyond price Supplier relationships: Enabling catalogs to increase sales Cost to onboard 1 Coupa Supplier Portal supplier <$50 (Compared to industry avg: $925)

13 RESULTS 100% Greif einvoicing Summary 90% 80% 70% 60% 50% Percentage Electronic (Excluding Utilities) Percentage Electronic (Including Utilities) 40% 30% 20% What Changed? 10% 0%

14 OUR LEARNINGS First priority Internal organizational alignment Communicated broadly to supplier base as requirement for doing ongoing business Letters illustrated value of adoption Training materials sent to suppliers to prepare for transition e.g. how to e-invoice, add additional users <1 FTE dedicated to Supplier Enablement Validate and cleanse the Supplier Master data, ensure contacts are up-to-date Make sure an electronic invoice channel is enabled and agreed to by all new or renegotiated suppliers

15 SUPPLIER TESTIMONIAL

16 Woodward, Inc Supplier Enablement Story: The Path to 100%

17 ORIGINAL SITUATION No centralized system for indirect purchases, in multiple ERPs Poor spend visibility & control High volume of Messy supplier data in multiple ERP systems Very little supplier consolidation within a category

18 INITIAL SUPPLIER ENABLEMENT CHALLENGES Defining our Strategy we did not take Coupa implementers initial recommendation Significant Cultural change for users and plants Turnover in Implementation managers

19 RESULTS Averaging 90% e-invoicing rates on all Coupa managed spend Centralized spend in one place Negotiated more national accounts with steeper discounts Still have work to do bring some spend into Coupa (~60% of all manageable indirect spend currently in Coupa)

20 E-INVOICING RATES, LAST 12 MONTHS: % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00%

21 SUPPLIER ENABLEMENT APPROACH All suppliers must use cxml, CSP, SAN, or invoice inbox Took a strong posture with suppliers Enable all suppliers for plants as they are brought onto Coupa Consolidate all duplicate suppliers records into single supplier record in Coupa All new supplier requests will be added in Coupa

22 LESSONS LEARNED We required e-invoicing, but focused on value for suppliers in our communications was most effective: Simple, easy to use platform Single point of contact Better invoice visibility Access to other Coupa customers Turn on Coupa SANs and make sure Suppliers know it is there. This has been very effective at e-invoicing for low volume suppliers Prioritize your integrations, they are the long pole in implementation.

COUPA S APPROACH TO SUPPLIERS BORDERLESS commerce & MEANINGFUL collaboration for ALL trading partners, BIG or SMALL, LOCAL or GLOBAL Zero cost, no contracts for

23 COUPA S APPROACH TO SUPPLIERS BORDERLESS commerce & MEANINGFUL collaboration for ALL trading partners, BIG or SMALL, LOCAL or GLOBAL Zero cost, no contracts for suppliers Self service to full service or anything in between Complianceas-a-Service Embrace as Common Denominator Instant Connectivity, Technology Agnostic

24 Q&A

AP Automation: Struggles, Strategies and Solutions

AP Automation: Struggles, Strategies and Solutions Gateway OAUG Presented by: Howard McKinney, AP Express Product Manager May 12, 2017 2017 Nivo1 LLC. All rights reserved. AFFORDABLE, WORKFLOW-DRIVEN AP