2. Presentation Content
• Basware in Brief
• Procurement Challenges, Stakeholders and Profit
Potential
• Basware Procurement Offering
• Basware EPP and Procurement Solutions
- General Features
- Sourcing
- Contract Lifecycle Management
- Buyer-Supplier Interaction
- Matching Invoices to Purchase Orders
• Solution Benefits
• Implementation and Integration
• Customer Cases
• Why Basware for Procurement?
3. Basware in Brief
• Founded in 1985, publicly listed on
NASDAQ OMX Helsinki
• The global leader in purchase-to-pay
automation
• Develops software for procurement and
financial process automation
• More than 1,000,000 software users in
over 1,500 large organizations
• Services through a network of 11 offices
in Europe, Asia-Pacific and the US
• Business partners in 30+ countries
• Net sales EUR 93 million in 2009
• 750 employees at end of 2009
4. Procurement Challenges in Organizations
Control & Drive OPEX*
Organizational
Compliance Savings Through
Efficiency
Procurement
High cost
Inability to enforce Buyers’ time
of inefficient
purchasing wasted on
procurement
policies routine tasks
processes
Poor ability to Contracts
Limited knowledge
audit purchasing not managed
of spend
decisions or utilized
Manual handling
Purchasing
Maverick buying of invoices across
power dispersed
organization
*OPEX=operational expenses
5. Stakeholder Interests
End-users Line-of-Business Budget Holders
– Getting things done, quickly and – Tracking business performance
easily – Achieving complete spend control
– Obtaining necessary items – Enabling real-time budget follow-up
– Accessing up-to-date information
on one’s own requisitions
Procurement Finance
– Spend and category management – Gaining real-time data on spend
– Contract management and use vs. budget
– Eliminating maverick buying – Transparent reporting
– Streamlining standard transactions – Minimizing manual work,
automating invoice handling
Successful implementation requires addressing the interests of all stakeholders
6. Profit Potential of Purchasing
Company A Company B Company C
Performance Excellent Mediocre Poor
Sales 100 100 100
Purchasing Costs 57 60 63
Other Expenses 30 30 30
Total Costs 87 90 93
Gross Profit 13 10 7
Tax 30% 3.9 3 2.1
Net Profit 9.1 7 4.9
Incremental Sales Required for - 30M EUR 85.7M EUR
Excellent Performance - 30% 85.7%
All example amounts reflect Euros (in Millions)
Source: Helsinki School of Economics, 2005
7. Successful ePurchasing
involves addressing
process, technology,
and organization hurdles —
multiple technology choices are
needed, not just one
Andy Bartels, Forrester
8. High-level benefits of eProcurement
Benefits of Working
Control over Cash flow Process
electronic capital
spend optimization efficiency
procurement optimization
9. Real time information flow drives continuous
improvement
Procurement contracts
Contract compliance
Sourcing
Purchasing Invoice automation
S
Spend data analysis
10. From Purchase to Pay
Procurement Solutions
• Basware Procurement Solutions offer you a reliable way to improve spend compliancy
and make cost savings throughout your procurement cycle, from sourcing and contract
management to day-to-day purchasing and supplier connectivity.
• Basware Procurement Solutions consists of the following applications:
- Basware Purchase Management
- Basware Order Matching
- Basware RFx management
- Basware Contract Lifecycle Management
- Basware Supplier Portal
11. Basware Purchase Management
Requisitions Predefined Automated Electronic Online Goods receipt
created using coding, review order confirmations and quality as
predefined allowing and approval creation of orders prerequisites
catalog supplements workflow for automatically from suppliers for invoice
selections or during the requisitions or by payment
free-text approval flow professional
buyers
12. Many Methods of Purchasing
The right tools guarantee maximum coverage for all purchases
• Purchasing based on product catalogs
- Company standard, contract-based products
and services, full control over content
• External punch-out catalogs – supplier
extranets and marketplaces
- Large selections, advanced configuration,
availability of information
• Free-text requisitioning
- Non-standard services and products, one-off
purchases
• Plan-based purchasing
- Pre-approved purchasing for campaigns,
projects etc.
- Supports budget and other controls
13. Increased level of Automation with Basware
Connectivity
Catalog Management
► Time savings on routine catalog validation and management
► Suppler self-service enables 24/7 updating of catalog content
Purchase Message Exchange
► Strengthen buyer supplier interaction
► Enable supplier self-service for suppliers of all sizes
► Eliminate errors and manual work in order management
► Supplier activation to connect suppliers in buyers network
Catalog Exchange
►Accelerate amount of catalog items in your Purchase Management solution
► Increased data quality of catalogs
► Constant updates of catalog items
►Supplier activation to increase number of supplier catalogs
Basware Purchase Management
► Spend control
► Easy deployment and adaptation
► Ramp-up of people and process analytics
14. Basware Connectivity for purchase
messages
Basware Connectivity (BT)
Catalog, order confirmation etc.
Basware
ERP / Sales Management system
Supplier
Basware Purchase Management
Supplier Order Portal
Buyer
Catalog, order confirmation etc.
Direct
Integration to
Supplier Order supplier
system
Supplier Activation
15. Creating catalog content
Basware Connectivity
Basware
Supplier Supplier
ERP / Sales management system
Basware Purchase Management
Portal
Supplier Direct
Integration to Buyer
supplier
system
Supplier Punch-out
integration
Supplier Activation
16. Matching Invoices to Purchase Orders
Invoice matches
Informative work flow with approved
purchase order (PO)
Invoice does not
Automation match with PO
(discrepancy)
17. Basware RFx Management adds Sourcing
functionality to Procurement Process
• Request for Quotation, Information, Proposal (RFx
RFQ, RFI, RFP)
- Organization-wide collaboration in a workspace
- Structured organization and storing of documents
- Efficient reuse and utilization of earlier experiences
• Electronic communication through Basware Supplier Portal
- Publication of RFx documents for download
- Online Q&A – Questions and Answers
- Submitting of tenders: documents and web-forms
- Automatic closing of reception after tendering period
• Tender opening and evaluation
- Scoring of both price and qualitative criteria
• Awarding and execution
- Tight integration to transactional Purchase to Pay process
- Contract drafts processed and utilized in Basware Contract
Lifecycle Management
18. Basware Contract Lifecycle Management
Complements the Procurement Process
• Meant for the development and maintenance of supplier / customer /
partner business agreements in a structured manner
• Facilitates coordination, reporting, and monitoring of multiple business
processes and partners throughout the supply chain
• Streamlines the management of each contract through its entire lifecycle
with maximum level of automation
• Support for all the corporate contracts (buy, pay, sales, partner etc.)
• Integrated Purchase to Pay process automation
- Importing contracts e.g. as a result of tendering process
- Creation of contract based purchase orders
- Automatic price/discount control
- Pay/buy control and contract spend reporting
- Automatic handling of contract based invoices
- Contract based self-billing
19. Integration
• Seamless integration with Basware EPP solutions
• Flexible Enterprise Resource Planning (ERP)
interfaces for online collaboration and batch
integration
- Ideal fit for international organizations with multi-
ERP environments
- Quickly adaptable to changes in the ERP
environment
• Basware integrates with over 100 different ERP and
other business support systems
- Certified partnerships with Oracle, Microsoft and
SAP
- Dual SAP interface certification for the Basware
anyERP Adapter ("SAP® Certified Interface" and
"Certified for SAP® NetWeaver™")
20. Solution Benefits
• Compliance and efficiency through automation
• Cost control before ordering
• Real-time spend tracking
• Contract-based purchasing
• Complete control over what is purchased in the
organization
• Efficient product content management
• Online buyer-supplier interaction
• Full integration with invoice processing
- Flexible matching of invoices to orders
- Payment upon receipt of goods
- Elimination of manual invoice processing through 5-
way matching
21. Analyst Review
―Basware stakes out a strong position as a new player in
eProcurement.‖
A survey made in the US in Q2 2007 of
eProcurement Solution vendors
The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester
and Forrester Wave are trademarks of Forrester Research, Inc. The
Forrester Wave is a graphical representation of Forrester's call on a
market and is plotted using a detailed spreadsheet with exposed scores,
weightings and comments. Forrester does not endorse any vendor,
product, or service depicted in the Forrester Wave. Information is based
on best available resources. Opinions reflect judgment at the time and are
subject to change.
22. Basware Implementation
• Fast implementation (6 - 8 weeks calendar time)
- Off-the-shelf package solution – quickly adaptable through
parameterization, without lengthy programming
• Flexible ERP interfacing with online collaboration and batch integration
- Ideal fit for international organizations with multi-ERP environments
- Basware has been integrated with over 200 different ERP and other business
support systems
• Standardized delivery project
MILESTONES
Start Definition Server Installation Ready for testing Ready for production GO-live Closing
Implement- Customer Production Hand over
Planning Building
ation testing set-up and closing
Project & Change Management
24. Cut Costs and Inventory at Helsinki Energy
“Optimizing our procurement
Helsinki Energy, one of the largest energy
companies in Finland, wanted to improve its processes with Basware
procurement processes as: Purchase Management has
enabled us to reduce our capital
• Processes were not clearly defined. expenses by €2,000,000 thanks
to clearer processes and better
• Its purchasing process allowed maverick buying. supplier integration.‖
• The old procurement system was not compatible
with other solutions.
Results
• Removed the capital cost of paying for
unnecessary stock and inventory.
• Deployed a catalog system; employees now order
approved items as they are needed, which has Markku Vettenranta,
decreased maverick buying. Head of Purchasing Services,
Helsinki Energy
• Improved integration with suppliers.
25. Better Transparency for Ritter Sport
Ritter Sport, the German chocolate ―Basware Purchase
manufacturer, wanted to: Management will help us
• Create a uniform process for purchasing indirect improve our electronic
materials. procurement processes.‖
• Increase transparency of spend and category
management.
• Achieve process and price savings.
Results
• Reduced the time and cost of administering each
purchase.
• Eliminated maverick buying.
• Introduced catalog buying; reducing the number of
suppliers used.
• ―Basware Purchase Management will help us Carsten Knebel,
improve our electronic procurement processes.‖ Purchasing Manager,
Ritter Sport
27. Why Basware for Procurement?
• Savings. Offers guaranteed cost savings based on
procurement management program.
• Agile solution. Easily integrates with other systems like
ERPs and Basware Enterprise Purchase to Pay
Products.
• Human-driven. Addresses process needs by
empowering end-users to purchase through approved
channels using easy-to-use packaged procurement
solution.
• In-house procurement. Provides internal controls to
ensure that the same policies are executed everywhere
within the company.
• Think Basware for...
- All indirect purchasing
- Direct purchasing for service industries
- MRO (maintenance, repair, operations)
28. For more information: paul.turnmer@Basware.com
0408 617 110 or 02 6255 9905
Controlled Performance
– from Purchase to Pay
