Apollo Group Strategic Sourcing & Procurement presentation from the 2009 Apollo Group Strategic Supplier Summit, June 10, 2009 in Tempe, AZ

1. Strategic Supplier Summit
June 10, 2009
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2. Working together toward a mutually beneficial relationship
PATRICK BLISS
DIRECTOR, STRATEGIC SOURCING &
PROCUREMENT
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3. Agenda
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• Introduction to Strategic Partnerships
• Apollo Procurement Transformation
• Expectations of our strategic suppliers
• Benefits to our strategic suppliers
• Closing remarks
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4. The three pillars of a strategic relationship
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Proc ment g p
mics
ommunity
cadem
curem
Ac
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5. Apollo Strategic
Partnerships - Defined
• Unencumbered two-way communication,
including pro-active communication of
pro active
opportunities
• Information sharing, planning, continuous
improvement
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• Best in class pricing, efficiency-reduced
transactions costs for both parties
• Risk sharing
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• Customer of Choice
• Supplier industry development (technology,
service level, cost)
, )
• Social responsibility/sustainability
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6. The Pyramids of Strategic Partnership
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7. The Pyramids of Strategic Partnership
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8. The Pyramids of Strategic Partnership
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9. The Pyramids of Strategic Partnership
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10. The Pyramids of Strategic Partnership
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11. Apollo Purchasing – pre 2009
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• Transactional in nature
• Fewer RFP’s / Less Defined
RFP s
• NOT Strategic
• Few partnerships
– Supplier changes at random
• Inability to consolidate supply base
– Less maximizing of spend volume to key
g p y
suppliers
• Manual Processes (PO, Contract,
Settlement)
)
– Costly to Apollo/Suppliers
– Delays on invoice payment
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12. Present Day Sourcing & Procurement
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• Purchase Order Automation • Spend Analysis/Visibility
– Catalog Items – Accurate classification of
– Immediate PO creation, spend data
approval and transmission to • Less Maverick Spend
strategic supplier (upon • I
Increased volume f
d l for
Requisition approval) strategic suppliers
– July 2009 go-live – Visibility into existing
volume/consolidation
– Supplier record enrichment
• Parent/child relationships
• Duplicate records
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13. The Future – 2010 and Beyond
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• Contract Lifecycle • Invoice Settlement
Management – e Invoicing solution
e-Invoicing
– Robust, automated • Ariba
contract authoring, – Upgrade to invoice
monitoring and approval workflow
l kfl
management tool and application
repository
– Enhancement of
– Will enhance contract Purchasing Card (P-Card)
procedures and process functionality
timelines
– R
Renewals and expirations
l d i ti
more diligently controlled
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14. Apollo Strategic Sourcing & Procurement
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• Definition
– …….identifying value opportunities within the Supply environment
identifying environment…….
• The Goal
– More value for Apollo’s spend
• The Means
– Aggressive, market competitive cost structures/discounts
– Developing and maturing key business partnerships to provide
maximum opportunity
– Integrating transparency in supply process to streamline sourcing
activities and acquisitions
– Finding added value services that enhance Apollo operational and
financial processes
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15. Apollo Strategic Sourcing & Procurement
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16. World-Class Sourcing/Procurement
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• Measurable and sustainable cost savings/cost avoidance
• Alignment of strategic plans to organizational objectives and business strategy
• Adoption f
Ad ti of appropriate technology/automation to maximize P2P process effectiveness
i t t h l / t ti t i i ff ti
• Development and retention of highly qualified, highly motivated staff
• Standardization of key procurement processes and policies that are clearly defined and
maintain maximum compliance and support within the entire organization
• “Green” or socially responsible purchasing considerations
• Well-developed strategic supplier partnerships which incorporate detailed supplier
scorecards and measurements
• Contract compliance
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• Minimal “maverick” spending
• Integration into the budgeting/planning process to ensure accurate budgetary expectations
• Multi-year strategic procurement plans
• Center-led P
C t l d Procurement functionality
tf ti lit
• Low-Cost Country Sourcing
• Utilization of spend analytics to focus sourcing efforts
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17. Current Apollo Initiatives
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• Ariba Implementation
– Spend Visibility, Sourcing Pro,
Procurement Content, Invoice Pro
• Contract Lifecycle Management (CLM)
tool
• Purchase Order Automation
• Improved forecasting with strategic
suppliers
• Supplier Scorecards
• Organization changes
– Separation of tactical and strategic duties
• Sustainable alternatives
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18. Apollo Expectations of Strategic
Suppliers
• Customer of Choice
– Market Competitive/Best-in-Class
pricing
– First fill of orders
– Advance notice of supply
restrictions
• Alternative product
recommendations
– Transparency
• Down to 2nd/3rd level of supply
chain
• Supplier financial stability
• Business technology adoption
– e-Invoicing (B2B)
• Standard/Consistent information
on invoices (PO/CC# Qty Price,
(PO/CC#, Qty, Price
Description)
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19. Apollo Expectations of Strategic Suppliers
p p g pp
• Communication
– Industry Trends
– Upcoming Supplier
Developments
– Competitive Insights
– Open Feedback
• Apollo processes, incompatibility
– Focused Communication
• Sourcing – central communication
point for SRM (non-technical
discussions)
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20. Apollo Expectations of Strategic Suppliers
p p g pp
• Legal resource commitment
– M t service agreements
Master i t
– Timely turnaround
• Early Payment Discounts
• Global Procurement support
• S i l responsibility/sustainability
Social ibilit / t i bilit
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21. Benefits to Strategic Suppliers
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Source: Hackett Group 2008
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22. Benefits to Strategic Suppliers
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• Growth Opportunities • Quicker
– Supplier consolidation
pp turnaround/settlement of
payments
• Earlier forecasting of Apollo
needs • Longer term contracts
– Annual volume commitments • Expansion of client base
• Clear understanding of – Students/Faculty/Employees/
Apollo’s “grade” of supplier’s Alumni
services/delivery • Academic Alliance
• Apollo open communication on • Apollo recognition
organizational – PR/Testimonial opportunities
strategy/direction
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23. Questions & Answers
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