richard bradbury head of nvo apj and china, sap ariba sap ... · 28/07/2016 · richard bradbury...
TRANSCRIPT
Richard Bradbury
Head of NVO APJ and China, SAP Ariba
SAP Forum - July 26, 2016
Art and Science to Deliver High Performance Procurement
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Internal
AGENDA
Introduction
The Procurement Environment
Expectations of Procurement
The Gap
The Opportunity
The Way Forward
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PRESSURE ON PROCUREMENT
Increasing Globalization• Expansion into new markets
• Global process standardization
• International supply chains
• Increased off/near shoring
Economic Volatility• Volatility in markets
• Decreased stock valuation
• Slow economic growth
• High expense ratio
More Competition • Pricing pressures
• New sources of competition
• Decreased budgets and spending
Greater Risk• Supply chain disruption
• Financial risk and fraud
• Commodity risk
Accelerating Technological Change• Changing business models
• Faster innovation cycles
• Expanding partnerships and channels
• Leveraging big data for decisions
Regulatory Changes• Increasing disclosure
requirements
• Country-specific regulations
• Industry-specific disclosures
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Internal
2016: MORE CHALLENGING, MORE PRESSURES
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THE CPO’S TOP PRIORITIES (2016 – 2019)
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THE GAP
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MISALIGNMENT WITH OVERALL BUSINESS OBJECTIVES
Customer Case StudyDavid Man, Group Controller , AIA
https://www.youtube.com/watch?v=8ZMM4yYaL3k&feature=youtu.be
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DIRECT AND SUPPLY CHAIN
Source & Contract Request & Buy Invoice & Pay
ContractSourcePlan OrderApproveRequest ManageReceive
Supplier Management
INDIRECT AND MRO
User Experience + Cloud Platform + INTEGRATION to all ERPs
Pay
Smart Procurement enabled with cloud applications and a business network
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Typical benefits are significant Leveraging SAP Ariba network and source-to-pay solutions
4-15% Sourcing savings
70% Operating cost reduction (AP & Procurement)
1-4% Compliance savings
$2-3M Discount savings for $1B addressable spend
40%+ Cost reduction
6 Days DSO reduction
15% Increased sales & wallet share
Buyer Benefits Supplier Benefits
BEST IN CLASS BENCHMARKS1
75% % of PO & Invoice lines
against item Master/
Catalog/ Contract
75% of addressable
spend managed
strategically(2)
10,000POs processed per FTEInvoices Processed
per FTE
% of spend under
early payment
discount
50,000++20%
(1) Based on Ariba customer engagements and benchmarks (2) Specific to Banking industry; SAP Benchmarking & Best Practices Program
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BEST-IN-CLASS DIFFERENCE
Best-in-Class impact on $1B = $31.2 million in extra savings
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How can SAP Ariba help?
Spend analysis
Business Case
Benchmarks & PositioningProgram Roadmap
Vision & Mission
Network Match OutputsRoles & Responsibility
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STRATEGIES FOR SUCCESS
Think end to end and build to an end vision
Ensure your objectives are mapped to the primary goals and objectives of the enterprise
Build the capability to deliver the things that support primary business objectives
Drive adoption of simple and consistent processes throughout the organisation
Demand greater investment in people and technology
Regularly assess the strengths and weaknesses of the organization’s capabilities
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Internal
Art or Science?
“Procurement is a blend of art and science, combining business, category, and supply expertise
with leading technology, data analytics, and associated value-based decision support
capabilities.”
~ CPO Rising 2016: The Art and Science of Procurement
Thank youRichard Bradbury
Head of Network Value Organisation
Asia Pacific Japan and Greater China
E-Mail: [email protected]