7.pdf This presentation captures many uses and the significance of the number...
Automate all spend and collaborate with all suppliers
1. Automate All Spend and Collaborate
with All Suppliers
Dominic Franey John Lark
S2P Programme Director Director of Marketing
Astra Zeneca Ariba
Dominic.Franey@astrazeneca.com JLark@ariba.com
8. Creating a Vision:
Buyers and Sellers Have Common Goals
and Intertwined Processes
Source Procure Pay (Settle)
Maximizing
Risk Process Continuous
Matchmaking Negotiated Compliance
Management Efficiency Improvement
Value
Invoice &
Sell Fulfill
Collect
9. Intertwined processes are hard to manage …
Source Procure Pay
Delayed
Wasted Lost Poor Manual Limited
payment;
time and negotiation visibility into ad hoc visibility
Cash
resource history compliance collaboration and risk
“mis-mgmt”
Invoice &
Sell Fulfill
Collect
22. Top Performers are focused on:
• Vision Alignment • Adoption
Source-to-Settle Collaboration Effective usability
All Spend Types Coverage
Global: Buyer AND Supplier Sustainability
• Beyond “process cost” • Compliance
Value proposition Vendor
Strategic enablement Terms
Invoice
• One size does NOT fit all
Better understanding of supplier and • Global Visibility
transactional profile Processes
Systems
• Re-assign resources to high- Suppliers
value activities
Build Your Business Case for Procure-to-Pay AutomationInsights from The Hackett Group, a Leader in Business Best Practices and BenchmarkingYou can cut costs, time, and risks by overcoming the barriers between you and your suppliers. Specifically, by automating and connecting your procure-to-pay (P2P) processes to their order-to-cash processes. Procurement and financial management experts from The Hackett Group and Ariba will share strategies and information you can use to:Set value-driving objectives for your P2P program, and measure results Benchmark your organization’s performance against industry and peer groupsEnsure compliance with processes, policies, and contractsLeverage your payables to optimize working capitalMitigate risk with greater visibility and controlImprove ROIP2P automation is critical for improving inter-enterprise collaboration. This webinar can help you build your business case to make it a reality. Register today.Featured Speakers: Kurt Albertson, Associate Principal, Procurement Advisory, The Hackett GroupJames Tucker, Director, Product Marketing, Network and Finance Solutions, Ariba
somehow common goals get lost in the clutter of the day to day operations and within the four walls of your organization
Nearly all customers have issues discovering with their trading partners, connecting with them and collaborating with them
So we have a collaboration imperative that is key for both process cost containment, cash flow control, as well as growth. In fact, a recent McKinsey study revealed that organizations using collaborative technology to connect internal efforts to customers, suppliers, and trading partners are 50% more likely to lead their market segments and achieve higher margins. These networked enterprises are enjoying a competitive advantage through inter-enterprise collaboration while those organizations relying on internal process automation alone are falling behind. Let me share a few quick examples…
A recent WSJ article shows that large corporate treasurers are keeping cash in highly liquid, highly secure short term securities at unprecedented levels while controllers are stretching supplier payment terms. At the same time, availability of credit for smaller and mid-size suppliers is very tight. This creates a serious tension between buying organizations and suppliers. Buyers are looking for higher-yield lower-risk returns on their growing pile of short term cash, and sellers are looking for liquidity relief from tight credit markets and extended payment terms. So many suppliers are looking to their customers flush with cash for early payment discounts and other supply chain financing options to provide them the liquidity relief they need, which ultimately reduces the buyer’s supply chain risk. Here’s the article: http://online.wsj.com/article/SB10001424053111904007304576494633247890952.html?mod=WSJ_hp_LEFTTopStories A couple of key quotes: “Although the S&P downgrade threatens to dry up already thin trading in the investment-grade-bond market, rates remain relatively low on a historical basis for corporate borrowers, and their borrowing is likely to pick up, Mr. Bender said. Indeed, companies of all stripes moved to bolster their finances last week, prior to the downgrade. A raft of investment-grade companies including Coca-Cola Co., Hyatt Hotels Corp., J.P. Morgan Chase & Co. and Kinder Morgan Energy Partners LP sold about $5 billion of bonds.But rather than using these funds for hiring, capital expenditures, or even shareholder dividends, corporations are filling their coffers further, said Mr. Carfang of Treasury Strategies.” And this: Those hoping that executives are looking for an excuse to loosen the purse strings are headed for a disappointment, said Steven Lear, deputy chief investment officer at J.P. Morgan Asset Management."We see these large surpluses held by Asian countries and that's a natural response to the crisis they went through in 1997-1998, saying 'You know what, we're never going to be short cash again,' " Mr. Lear said."Corporate treasurers in the U.S. went through that in 2008, and their reaction is going to be the same."Companies are hoarding cash because interest is at historic lows. Coupled with the tight credit markets, this has created a liquidity problem and significant risk in the supply chain. How are corporations that have excess cash dealing with it in the current environment?To the extent we can, we are hoarding it a little, just like the banks are. People want to have a little something in their rainy-day fund because things are so volatile right now. Our investments are extremely conservative—bank deposits, treasuries—and we want to know more about what we are investing in. …
[walk through samples quickly]So how does your organization measure up?To help answer this, our guest speaker, Kurt Albertson,a senior advisor in The Hackett Group’s Procurement practice where he advises executives on strategic business decisions and promotes thought leadership through research and speaking on topics in the Procure-to-Pay and broader Supply Chain space, will provide the latest benchmarks across the procure-to-pay function to help your organization establish a business case for procure-to-pay automation and working capital optimization.