Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

Spend Analysis: What Your Data Is Telling You and Why It’s Worth Listening

Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Chargement dans…3
×

Consultez-les par la suite

1 sur 26 Publicité

Spend Analysis: What Your Data Is Telling You and Why It’s Worth Listening

Driving bottom-line savings continues to top the wish list of the chief procurement officer’s agenda, yet the decision path to get there often relies on perceptions and intuition. Without the right visibility into spend data, suppliers, or related market information in hand, sourcing and procurement decisions often run counter to the business objectives. Gaining comprehensive visibility is the stepping stone to effective spend management. Join this session where experts share their secrets on striking it rich by listening to what their spend numbers have to say.

Driving bottom-line savings continues to top the wish list of the chief procurement officer’s agenda, yet the decision path to get there often relies on perceptions and intuition. Without the right visibility into spend data, suppliers, or related market information in hand, sourcing and procurement decisions often run counter to the business objectives. Gaining comprehensive visibility is the stepping stone to effective spend management. Join this session where experts share their secrets on striking it rich by listening to what their spend numbers have to say.

Publicité
Publicité

Plus De Contenu Connexe

Diaporamas pour vous (20)

Similaire à Spend Analysis: What Your Data Is Telling You and Why It’s Worth Listening (20)

Publicité

Plus par SAP Ariba (20)

Plus récents (20)

Publicité

Spend Analysis: What Your Data Is Telling You and Why It’s Worth Listening

  1. 1. Rohit Namdeo - Deloitte Consulting SEA Michael Koch - SAP Ariba / August 30, 2016 Spend Analysis: What Your Data Is Telling You and Why It’s Worth Listening Public
  2. 2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public Important information This information reflects the status of SAP Ariba solution planning as of June 2016. All such information is confidential information (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon SAP or Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. SAP and Ariba assume no responsibility for errors or omissions in this document. SAP and Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials.
  3. 3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public Agenda Welcome Session Overview Deloitte Industry Overview Q&A
  4. 4. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public Good spend management begins with good spend visibility The spend management ecosystem
  5. 5. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public 86% of companies say spend visibility is very important … Source: SAP / Procurement Leaders Survey 2011 But only 40% of companies have good visibility into their spending.
  6. 6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public Traditional business intelligence is just the tip of the iceberg Data aggregation Dashboards and reporting Commodity classifications Supplier data enrichment Market insights and benchmarks
  7. 7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public It doesn't matter how many "resources" you have if you don't know how to use them. Spend analysis: What your data is telling you and why it’s worth listening
  8. 8. Panelists
  9. 9. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public Panelists Rohit Namdeo Manager, Deloitte Consulting SEA Michael Koch Director, Solutions Marketing, SAP Ariba
  10. 10. Spend Analysis What Your Data Is Telling You and Why It’s Worth Listening Rohit Namdeo, Manager, Deloitte Consulting Pte Ltd
  11. 11. In procurement, improvement goals and strategy are often well defined, but execution lacks in several areas Should we negotiate new contracts? Are our contracts aligned with what we actually buy? How much of our buying is covered by contracts anyway? What categories are experiencing maverick buying? How can we monitor purchasers and make them accountable? Should we limit the number of suppliers? What are the consequences? (costs & risks) Can we improve efficiency in our procurement department by cutting down on small orders? Are different Opco’s experiencing different prices? © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  12. 12. Decision making becomes difficult due to common challenges and problems which exist across organizations Issues • Difficult to identify improvement opportunities because of inaccessible information • Hard to measure project success or failure • Improvement activities are one-time only • Continuous improvement is only possible with timely, complete information • Impossible to drill down to individual orders which limits problem solving to strategic level Cumbersome and incomplete ERP reporting does not allow for meaningful analysis Manually creating an Excel snapshot might take weeks or months. By then, the data is expired Disparate data sources make it a time consuming job to gather all spending data Incongruent master data (supplier naming, categories) leads to data cleansing activities Common Challenges © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  13. 13. Analysis of spend leads to deep insight into the composition of the volume and in savings opportunities Which Departments or Business Units determine the size and composition of the total spend? Who are the biggest Suppliers and to what cost center do they supply? To what Categories do the supplier belong and what is their contribution to the total spend? Insights Opportunities • Improve process efficiency • Expel maverick buying • Negotiate better contracts • Make right decisions on what to buy from whom • Maximize value creation • Reduce costs by optimizing purchase to pay process © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  14. 14. Traditionally, Spend Analysis required multiple manual activities in order to achieve end results Issues Static Data Reports Time- Consuming Up-to-date reports not available Dedicated & Expert resources © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  15. 15. Ariba Spend Visibility has simplified this Spend Analysis process Data enrichment processes in Ariba Spend Visibility Customer data source systems Raw data loaded into Ariba Spend Visibility portal (input) 1 Extract, transform, and load process ERP 1 ERP 2 P- Card ……. Ariba Spend Visibility portal powered by SAP HANA in the cloud Market data benchmarks 4 6 Enriched data loaded to portal (output) Quality assurance 5 Commodity classification Supplier data enrichment 2 3 Source: SAP Ariba © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  16. 16. Ariba Spend Visibility supports a wide variety of views, all associated to the same data set and filters Dashboard Supplier View Price Analytics © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  17. 17. Ariba Spend Visibility gives procurement manager the total spend of the organization in one single overview Who Business Unit A determines the spend volume • To be able to run the Procurement department, the CPO needs to have insight into Who buys What and Where • This insight enables him to create the necessary reports for boardroom meetings • Knowing the exact spend at all times enables the CPO to make quick decisions and act swiftly when necessary What Direct materials determine the spend volume Where Supplier 2829 is the biggest supplier Scenario © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  18. 18. Ariba Spend Visibility gives insight into process efficiency due to fragmentation of spend and the amount of invoices received • An inefficient process taps heavily in the available time of your purchasers and administrative personnel • Identified inefficiencies can be discussed with supplier • Synergy between departments enables an increased efficiency • Insights provide the business case to implement e-Invoicing Scenario Pareto Pareto shows a long tail of small suppliers Top 20 based on # invoices More than 1,000 invoices are received from top suppliers Identify synergy Synergy is identified and enables a significant reduction © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  19. 19. With Ariba Spend Visibility, the purchasing manager gains insight into contract compliance to expel maverick buying • The procurement manager identifies product categories with a substantial amount of spend on non-contracted suppliers • He identifies the product category with most spend savings based on the average price of the preferred suppliers • He finds out who are responsible for buying from these non-contracted suppliers and he can enter the dialog to find out what is needed to prevent this Scenario Proportion Non-contracted suppliers cover 20% of the spend Missed spend savings Spend savings can be realized in specific product categories Responsible purchasers Maverick buying of 5 individuals identified © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  20. 20. With Ariba Spend Visibility, the category manager gains insight into the supply base for better contract negotiations • The Category manager selects the product category with the highest number of suppliers • He identifies the suppliers that account for 80% of the spend in the selected category • The number of suppliers can be reduced by excluding the least stable suppliers for better contract negotiations Scenario Product categories Products within this category are delivered by >200 suppliers 80-20 rule 80% of the spend in this category is covered by 20 suppliers Reduce supply base A significant reduction of the supply base is possible © 2016. For information, contact Deloitte Touche Tohmatsu Limited.
  21. 21. - 21 - ©2016 Deloitte All rights reserved. www.Deloitte.com/SAP @DeloitteSAP © 2016. For information, contact Deloitte Touche Tohmatsu Limited. Rohit Namdeo, Manager, Deloitte Consulting Pte Ltd rnamdeo@deloitte.com Continue the Conversation
  22. 22. Case Studies
  23. 23. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public Ariba Spend Visibility Delivers Comprehensive Insights on Supplier and Spend Data Organization Boliden Group Headquarters Stockholm, Sweden Industry Mining and metals Products and Services Exploration, mining, smelting and metals recycling Employees 4,800 Revenue €3.8 billion Web Site http://www.boliden.com/ Solutions Ariba Spend Visibility Top Objectives  Create a single source for all spend and supplier information that resided in multiple systems  Improve sourcing and procurement strategies based on insights gained from spend analytics  Drive continuous improvement through benchmarking and comparison of spending patterns between business units Resolution  Deployed the Ariba Spend Visibility solution as a stepping stone to drive strategic sourcing initiatives  Classified all spend data using a blend of custom and industry standard taxonomies  Leveraged the unified D&B database offered within Ariba Spend Visibility to enrich all supplier data  Enabled rapid user adoption through intuitive and simple user interface and training sessions Key Benefits  Gained an aggregated view of spend data across all seven procurement sites, resulting in better cross-site visibility and identification of spend reduction opportunities  Identified linkages and parentage hierarchies across a portfolio of 6,000 suppliers, thus enabling supplier optimization and better negotiation clout  Increased data quality standards and analytics coverage for spend data spanning €800 million annually 340,000Transactions classified €2 billionTotal spend analyzed 6,000Supplier records enriched “Using Ariba Spend Visibility, Boliden was able to apply a baseline for performance improvement across all of our procurement sites. With this greater visibility and a user-friendly approach, we are able to identify the cross-site and cross business unit leverage that that will lead to reduced spend and greater efficiency.” Simon Miller, Sourcing Project Manager, Boliden Group
  24. 24. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public Good Data and Analytics Pave the Way for Strategic Sourcing Excellence Organization Air Products & Chemicals, Inc Headquarters Allentown, Pennsylvania, USA Industry Chemicals Products and Services Chemicals, Gases, Equipment, Services and Solutions Employees 20,000 Revenue US$10.2 billion Web Site www.airproducts.com Solutions Ariba Spend Visibility Ariba Sourcing The company’s top objectives  Improve spend data quality to identify hidden sourcing opportunities and subsequently execute confident strategies  Reduce maverick spending and increase total spend under management by leveraging state-of- the-art sourcing platform  Gain visibility on depth and breadth of supplier relationship with accurate supplier data enrichment The resolution  Deployed Ariba Sourcing to execute strategic sourcing initiatives for indirect and direct products with suppliers across multiple regions  Ariba Spend Visibility was used to analyze over USD 8 Billion worth of spend data across large spend categories as well as difficult to categorize groups such like indirect spend, non-PO based spend and text-description based purchases  Created 820 online rules for weak material groups and non PO payments. Over 188 material groups were mapped to UN codes The key benefits  Realized full return on investment (ROI) on Ariba Spend Visibility within a year of implementing the solution  Over 400,000 materials that were previously unclassified were categorized at 95% + accuracy based on UNSPSC standards  Identified sourcing synergies in newly acquired entities by rapidly scaling up and integrating spend data from the new sources $3 MillionSavings realized per year 400,000+Goods and services categorized based on industry taxonomies 98.6%Data classification accuracy achieved “Ariba Spend Visibility has provided us the capability to leverage spend data to reduce costs. It has enabled us with the insights to mobilize our sourcing team towards areas of opportunities that have the maximum impact to our business” Tony Verheggen, Sourcing Process Owner Air Products
  25. 25. Q&A Session
  26. 26. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public Please complete session survey Locate session Click Surveys button Select Breakout Session Survey Rate session

×