In this webinar we want to give you 3 keys to solving this challenge so that you, your suppliers and your customers can all benefit from a stronger value-chain.
Join the webinar and hear from our experts how you can better manage suppliers and supplier information and how you can eliminate maverick buying and entire change the definition of a free-text order. Lastly, we want to show you how suppliers can leverage self-service options to support your services procurement processes.
3 keys to solving services procurement that will help you cut costs and grow.
2. AGENDA
▪ Introduction to OpusCapita
▪ Goods vs. Services eProcurement
▪ Three keys to solving services eProcurement
-Know your use cases
-Itemize for efficiency
-Empower the Supplier
▪ Summary
4. OpusCapita by the numbers
Established 1984
~350 Employees
65m € Revenue 2018
3000 Customers with
users in over 100
Countries
Over 1 Million Suppliers
and 100,000,000
eTransactions
Over 40,000,000
products and services
bought & sold
Over 130 Billion € in
payments annually
5. DIGITAL OPTIMIZATION
The process of using digital
technology to improve existing
operating processes and/or
business models.
DIGITAL TRANSFORMATION
The process of exploiting the
latest digital technologies and
practices to create a new
sustainable digital business
model.
THE PATH TO BECOMING A DIGITAL BUSINESS
Gartner, Digital Business Transformation: Closing the Gap Between Ambition and Reality, Ian Cox, Kristin Moyer, 18 June 2018.
6. GLOBAL
PAYMENTS
PAYABLES
AUTOMATION
SOURCING &
SUPPLIER
ENGAGEMENT
RECEIVABLES
AUTOMATION
OPERATIONAL
PROCUREMENT
CASH
MANAGEMENT
Comprehensive
supplier information
management and
agile sourcing for
goods and services.
Improve your cash
inflows and reduce
the time spent
matching payments
to invoices.
Create a centralized
product catalog with
a modern guided
buying experience
with full mobility.
Consolidate and
optimize your in-
house bank and
liquidity
management
functions.
Enable control and
compliance over AP while
dramatically lowering
transactional costs.
Connect directly to over
200 banks, SWIFT certified
for global payment
coverage.
OpusCapita is a platform
that combines source-to-
pay & cash management,
enabling full source-to-cash
process optimization.
HOW WE SUPPORT YOU
CONNECT, TRANSACT AND
GROW ON THE
OPUSCAPITA BUSINESS
NETWORK
7. “Several studies suggest that, in practice, service procurement is more challenging
than goods procurement. The underlying but largely implicit argument is that the
procurement process for services involves higher buyer uncertainty and therefore
requires extra efforts to mitigate this uncertainty.”
-Journal of Purchasing and Supply Management, 2018
NATURE OF DEMAND
GOODS VS. SERVICES (E)PROCUREMENT
-definite vs open-ended
-materials vs resources
-inputs vs desired outcome
SPECIFICATIONS &
REQUIREMENTS
-specific vs imprecise
-stakeholder involvement
-understanding value add
CONTRACT AND SRM DELIVERY AND QA
-frame agreements + SOWs
-transactions vs relationship
-service delivery is SRM
-what vs by whom & how?
-results & receipt tracking
-proactive vs reactive QA
SERVICES VS PRODUCTS PROCUREMENT
9. KNOW YOUR SERVICE PROCUREMENT USE CASES
A thorough as-is vs. to-be analysis is required to
significantly impact purchase and process costs when
it comes to the operational procurement of services.
SERVICE ITEMIZATION OR “PRODUCTIZATION”
In terms of requisitioning, some service categories
can be treated like goods. By productizing services
and utilizing service order configurators even complex
service categories can be managed efficiently.
EMPOWER THE SUPPLIER
In certain service procurement use cases it is highly
feasible to utilize supplier self-service tools, after all
reducing the TCO should be a joint effort.
THE THREE KEYS
13. GUIDED BUYING FOR SERVICE
CATEGORIES
• Reduce complexity by standardizing and
repackaging services to be more “product-like”
• Start planning in the pre-contract phase and lay the
foundation for efficient services eProcurement
• Get instant results especially from service categories
with measurable & specific variables, like:
• Operational communication & marketing
• Information & telecom services (software licences)
• Admin services, conference rooms & catering
• Courier services
• Guide buying via catalogs and e-forms / smart forms
SERVICE ITEMIZATION / PRODUCTIZATION
14. GUIDED BUYING FOR SERVICE
CATEGORIES
• Increase efficiency of requirements specification by
utilizing order configurator forms (smart forms).
• Get results from inherently complex service
categories, such as:
• Professional and commercial services
• Temporary staffing
• Maintenance & repair operations
• Training & personnel services
• Guide buying via smart forms with field dependencies
• Enable enhanced control, compliance & automation,
especially in combination service entry sheets
SERVICE ORDER CONFIGURATOR
16. SERVICE REQUISITION
• often based on an estimate
• hard to estimate task/effort
correctly
• is often the basis of the
purchase order
SERVICE DELIVERY
• actual task/effort can deviate
from the original order
• can have an objective driven
outcome
• is the basis of the invoice
SERVICE ENTRY
• allows the supplier to report the
“actuals”
• bridges gap between order/delivery
• is a service receipt / enables control
& accounts payable automation
SERVICE CONFIGURATION & SERVICE ENTRY
“Ten hours of work
should do it”
“Phew, I can’t believe
this took 15h”
“Time to report the
actual effort”
Buyer Supplier
17. “REVERSE” REQUISITION
VIA SERVICE ENTRY
• is initiated by the supplier…
• …. meaning the estimate of
work is often more accurate
• estimate / service entry
subjected to Buyer approval
CONTROL POINT
• approval is often based on
e.g. vendor quota or budget
• easy to automate
• can be redone after service
delivery & reporting of efforts
SERVICE DELIVERY AND
SERVICE (RE-)ENTRY
• after the approval, the service is
delivered
• service re-entry only required if the
delivery deviates from original entry
• results in a service receipt
REVERSE REQUISITIONING OF SERVICES
“This facility needs
tending to”
“This seems to be in
order”
“Seems I was a bit off,
but not by much”
Supplier Buyer Supplier
18. KNOW YOUR USE CASES ITEMIZE TO IMPROVE EMPOWER THE SUPPLIER
In order to significantly increase
the spend under management in
service categories a
comprehensive analysis of the
service procurement use cases is
required e.g. from requisition to
invoice matching and the
associated costs.
Itemization is crucial groundwork
for services eProcurement overall,
with quick wins achievable via:
operational communications &
marketing, information & telecom
services, admin. services,
conference rooms & catering,
courier services etc.
Supplier self-service and
collaborative tools should not be
overlooked in efforts to decrease
the TCO. In service procurement
optimization it is in both the
Buyer’s and Supplier’s interest to
make the process work.
THE THREE KEYS
SUMMARY