source-to-pay technologies - sig · westfield insurance. operating information. history of...
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SIG Working Council
Source-to-Pay Technologies
Working Council Leadership Team
Amy Fong
The Hackett GroupPhilip Wood
Microsoft
Our Journey…• We started this journey in October 2016
• Conducted WebEx sessions in February and April of 2017, and then met in person in October 2017 at the SIG Global Executive Summit
• We started the council with an emphasis on sourcing and governance tools and technologies, talked about machine learning, but then focused our discussions on source-to-pay considerations and value drivers
• Ensure that SIG Members have a resource to turn to when they have questions concerning the use of Source-to-Pay technologies;
• Provide an environment for SIG Members to network and develop relationships with subject-matter experts, thought leaders and practitioners in this business area;
• Assist SIG Members in understanding how enterprises use Source-to-Pay technologies to drive value throughout the entire sourcing and relationship governance life-cycle (i.e. Source-to-Pay, Transition to Delivery, Relationship Optimization Risk & Compliance etc.);
• Enable SIG Members to stay apprised of how transformational technologies can either simplify and/or add complexity to the sourcing and governance environment, especially with the proliferation of advanced technologies and platforms.
Our Purpose…
SIG WORKING COUNCIL
SOURCE-TO-PAY TECHNOLOGY
Zachary Engels – Procurement Operations
Westfield Insurance
HISTORY OF PROCUREMENT
Objective: Standup a center-led procurement function inclusive of third party risk management. Strive to become an industry leader in terms of procurement practices through the areas of: 1) People 2) Process 3) Technology
2015 – [People] Employed our CPO who recruited and hired various individuals to fill open roles in category management and 3rd party risk management
2016 – [Process] Reworked existing policies surrounding approved buying channels while creating new policies related to contract signing authority, our internal sourcing approach as well as our vendor risk policy
2017 – [Technology] Evaluate our current technology roadmap and make strategic investment(s) that will enable the business to become more agile while mitigating risks
Fin
an
ce (
CF
O)
Group Leader (CPO)
Operations Manager
Category Management
Leader
CM 1
CM 2
CM 3
CM 4
Specialist 1
Specialist 2
Specialist 3
3rd Party Risk Leader
Manager
Analyst
PROCUREMENT TECHNOLOGY
CURRENT STATE
Upstream Downstream
Spend Analytics
Category MGMT
E-Sourcing
Contract MGMT
Supplier MGMT
Catalogs & Buying
Invoice & Payment
Financial MGMT
Source-to-Pay Spectrum
INEFFICIENCIES
Inadequate spend
insight which leads
to inaction
Wrong negotiation
strategy / incorrect
supplier
segmentation
Savings
Leakage
Manual
invoice entry
and receipt
process
Manual governance process to
check contract compliance
Manual governance process to
check contracted rates to invoices
1. Non-PO invoices due to lack of system integration and timely processes
2. Increased use of P-card purchases
3. Adverse business impact due to speed to delivery
PROCUREMENT TECHNOLOGY
FUTURE STATE
Ideally, have one technology platform with a single provider
that can deliver the upstream and downstream functionality
required by Westfield.
Source-to-Pay
Providers
SAP
Ariba
Ivalua
Zycus
Basware
Oracle
Coupa
JAGGER
GEP
Tradeshift
BRAVO
RFQ CHECKLIST
Consisted of 85 questions across 8 sections:
Participants were able to answer using the following drop down selections:1. Fully Supported – The function meets requirement fully as standard /
configurable feature
2. Partially Supported – The desired function is available in a separate optional package, or could be made available through the development of a new application. Please elaborate on complexity in person hours to complete
3. Not Supported – The desired functionality is outside the scope of the package and there is no practical way to provide it
4. Future Release - Functionality expected in future release (state release date)5. Customization - (Coding) required to support requirement
6. Third Party - Application fulfils requirements fully (state application, source, integration method)
• General
Business Info.
• Architecture • Supplier Risk & On-Boarding
• Spend
Visibility
• Sourcing &
Contracts
• Operational Procurement
• Invoicing &
Payment
• Pricing information
NEXT STEPS
Begin the Process of commercial discussions
Formal commercial negotiation
Review MSA / Software Agreements
Begin to align internal resources
Understand the service implementation process
In house versus an external SI partner
SOW’s and design documentation process
Conduct IT workshops to dive into architecture and
integration discussions
Phased / module implementation versus end-to-end
Understand migration needs / timeline off
existing technology