Live with Customers: BC Hydro and ConvergentIS
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1 Live with Custmers: BC Hydr and CnvergentIS Hanif Dhrlia, ecmmerce Manager and Allisn McDnald, Enablement Lead, BC Hydr, Burnaby Campus Shaun Syvertsen, Managing Partner, CnvergentIS
2 BC Hydr: Imprving Hw We Pay Our Suppliers
3 Agenda Challenges prir t implementing SAP Ariba Why SAP Ariba? ecmmerce prject verview Obstacles Insights What s in it fr us? 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 3
4 Challenges In-surcing prcurement with AP utsurced Nn-cmpliant and duplicate invices Duplicate payments Lengthy apprval prcesses with n cntrls Lack f understanding f prcurement prcesses and prcedures (us and ur suppliers) Nt paying ur suppliers n time Strained relatinships Gvernment audit Fiscal restraint 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 4
5 Guiding principles and bjectives in mving t SAP Ariba Imprve Relatinships Make it easier fr suppliers t wrk with us Obtain benefits fr us and ur suppliers Pay ur suppliers n time Give suppliers visibility int the rder and payment cycle Leverage Technlgy Adpt practices f leading prcurement and supply chain rganizatins Reduce manual invicing Reduce Csts Becme mre efficient and reduce csts Minimize manual effrt t free up time fr higher-level activities Realize early payment discunts 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 5
6 ecmmerce Prject Overview 2011 Successful pilt with 12 vendrs Grwing the prgram stalled when phne calls / letters weren t wrking and internal flks weren t supprtive One supplier at a time and a lt f hand-hlding 2012 Categry enablement apprach (BC Hydr utreach) Gal 60% transactins by end f prject Strategically selecting categries fr ptimal benefit (difficult categries) Steady rll ut, enabling multiple vendrs in each phase Direct senir-level cmmunicatin with vendrs in high pririty categries Cllabrative tne t imprve relatinships and high internal visibility Fcus n n-time payment made the business respnsible Cntract Manager apprval f supplier list and cmmunicatin supprt Identificatin f key apprvers and verifiers t develp champins within business units Bi-weekly cnference call and Live Meetings Bi-weekly Q&A published and distributed Respnsive help desk fr internal and external queries 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 6
7 ecmmerce Prject Overview 2013 Using ecmmerce became a general cnditin in ur cntracts 2014 ecmmerce Prject Sustainment Internal prcess changes Time spent managing internal and external issues thrugh ecmmerce helpdesk Internal & external change management 2015 ecmmerce Expansin Prject Mve frm 60% t 80% electrnic invice transactins Implement dynamic discunts With an Ariba enablement team t assist with the nbarding f suppliers using a wave apprach 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 7
8 ecmmerce Prject Overview June 2016 Three waves cmpleted Discunt Pr implemented Octber 2016 Ranked first in industry sectr fr number f supplier relatinships Mved frm184 suppliers t 988 suppliers (580 suppliers in first 6 Mnths f the expansin prject) Invices prcessed electrnically rse frm 58% t 83% 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 8
9 Invices Prcessed Number f Suppliers Supplier Enablement Year t Date Target Invices Prcessed Frcaset Invices Prcessed Number f Suppliers 90% 1,200 80% 70% 60% 60% 58% 62% 68% 73% 70% 69% 71% 72% 65% 80% 80% 80% 82% 83% 83% 83% 83% 78% 80% 80% 80% 80% 76% 77% 78% , % % 30% % 10% % Sep-15 Oct-15 Nv-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep SAP SE r an SAP affiliate cmpany. All rights reserved. Public 9
10 Obstacles It wasn t always easy fr us r ur suppliers! Change management is challenging in an rganizatin as large and gegraphically diverse as BC Hydr Organizatin had t accept a lt f prcess and prcedure change in a shrt perid f time Insurcing Prcurement while AP remained ut-surced ERP tl utilizatin had t be adpted by many within ur rganizatin Sme f ur suppliers are nt technlgically sphisticated, are resistant t change, r gegraphically remte with n r limited internet Sme f ur internal flks were nt always supprtive We were asked t accmplish a lt with very limited resurces 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 10
11 Insights Executive supprt is required but it is really the end-user and frnt line wrker wh wns the relatinship with suppliers they need t be ur champins Our end-users nw prefer dealing with invices submitted thrugh the Ariba netwrk and are encuraging their ther suppliers t use the Ariba Netwrk We prbably needed t have had mre engagement with ur supplier cmmunity prir t launching the ecmmerce prject The mre familiar ur nn-enabled suppliers became with the ecmmerce, the easier it was t get them nbard The mre suppliers we enable, the mre we can enable - bit f a dmin effect Suppliers nw practively apprach us and ask t be enabled fr ecmmerce Change management, change management, change management 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 11
12 What s in it fr us? We are ding things better! Paying ur suppliers n time 95% OTP Reducing invice errrs and exceptins 83% f ur invices are electrnic We are saving mney! Direct csts > ~$1M/year in AP administratin Early payment discunts Over 680 invices discunted in the first 4 mnths Time: Autmated rders and cmpliant invice submissins mean faster prcessing & payment Envirnment: paperless means reduced envirnmental impact 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 12
13 Next steps Supplier enablement Wave 4 / 5 Case study publicatin n ur successes Create a discunting (Early Payment Optin) strategy with Ariba Cnsideratins Light enablement SIPM integratin int SAP MDG Spend visibility 2016 SAP SE r an SAP affiliate cmpany. All rights reserved. Public 13
14 Cntact infrmatin: Hanif Dhrlia ecmmerce Manager BC Hydr, Burnaby Campus Allisn McDnald Enablement Lead BC Hydr, Burnaby Campus Thank yu
15 CnvergentIS
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