how procurement and finance can thrive in a downturn - webinar presentation
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How can Procurement and Finance together build the visibility over the purchase-to-pay process in order to continuously measure the supplier performance and proactively reduce the supply risk? For more information and ideas read Basware White Paper: Seven points of engagement for Procurement and Finance to improve collaboration http://www.basware.com/knowledge-center/seven-points-of-engagement-for-procurement-and-finance-to-improve-collaborationTRANSCRIPT
Strangers No More – How Procurement and Finance Can Thrive in a Downturn
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Procurement and finance – the Odd Couple no more
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Direct and indirect savings: Working together to make sourcing savings stick
Collaborative improvement: Cost reduction and working capital management improvements from joint initiatives
Lowering transaction costs: Jointly reducing transaction costs and not waiting for the next IT upgrade or multi-tower outsourcing program to do so
Mitigating risk: Lowering supply risk in an increasingly dangerous economic environment impacting suppliers of all sizes
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“Your supplier’s LC is locked away and safe”
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“It’s a little too late for a gold standard …”
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“Don’t worry about your supplier’s credit lines—they’re safe with us”
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“A run on the bank”
2007 2008
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“We’re using the new Federal money we’ve takenfor a small renovation project”
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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The case for visibility into suppliers’ financial health: “We’ve found a new lender to sell our receivables to”
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“Our investment bankers tell us not to worry”
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“Sure … we can underwrite that”
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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“I hear that Chapter 11 is better than 7”
Chapter
7Chapter
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Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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And let’s not forget other reasons why procurement and finance are being forced together by necessity
“Fair Trade” not “Free Trade”
Failed stimulus policies (e.g., automotive
incentives in US vs. China)
Commodity volatility and negative growth
Commodity inflation and deflation
Declining GDP
Financial meltdown / accounting changes
Credit crunch, bank failures
Liquidity concerns, supplier access to capital
LIFO FIFO
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
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Upstream vs. downstream P2P – a few lessons learned from the trenches
Integration upstream can be a hobby—downstream it
needs to be a full-time job
Administrative / initial upstream activities touch fewer
individuals—by an order of magnitude (thinking through
what this means is critical)
Neither set of activities (contrary to popular perception)
should be looked at as any more IT-centric than
the other
Companies should treat both areas just like any other
sourcing category—but so few ever do
Copyright © Spend Matters, LP and Azul Partners, Inc. – Not for distribution
Basware Enterprise Purchase to Pay Solutions
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Basware in Brief►The Global Leader in Enterprise Purchase to Pay Automation
► Purchase Management, Invoice Automation and Document Archiving Solutions
►Established in 1985
►1,200 customers and 700,000 users in 50+ countries
►Public company with rapid and profitable growth
► 2008 revenue of $120+ million
► 17.5% growth from 2007
►Over 725 employees worldwide
►AAA D&B Rating
►Listed in Deloitte’s Fast 500 Technology Companies
►Global coverage with operations in Europe, North America, and Asia-Pacific
►Business partners in over 30 countries
►Certified SAP, Oracle, and Microsoft partner
Basware has more than 1,500 large customers
Basware ConnectivityBasware Connectivity
Customer Legacy Systems e.g. Financial Systems, ERPCustomer Legacy Systems e.g. Financial Systems, ERP
Basware EPP Solutions
Procurement Invoice Automation
KPI Measurement and Continuous ImprovementKPI Measurement and Continuous Improvement
Supplier CatalogExchange
Purchase message Exchange
Scan and captureE-invoiceExchange
Why Basware?
► Complete Purchase to Pay offering
► Highly functional, easy-to-use software
► Customer-Driven Solutions
► Delivery, implementation and upgrade services as well as training and
support for the users
► Multi-ERP, multi-language, multi-currency, SSC, support
► Rapid implementation timelines
► Technology partnerships with Microsoft, Oracle, SAP, and Citrix to ensure
seamless integration with other IT systems
► Integration with over 200 ERP / financial packages
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For more information jointheconversation.basware.com/en