People, processes and systems all need to be aligned for effective contract management. As you well know, finding a practical way to do that is not a simple a task. In this presentation Muhammad Ayub, Head of Process Integration Global Procurement Operations at Barclays will explain how to really drive for added value and efficiency gains there needs to be better interaction and understanding between P2P and sourcing.
Understanding responsibilities of both those parties and what actively must be done, will enable smarter processes and the opportunity to capitalise on opportunities to strip out redundant tasks. Increased transparency will also enable AP to better support Sourcing in adding value to supplier management for real financial wins.
In this presentation Muhammad Ayub, Head of Process Integration Global Procurement Operations at Barclays will
How purchase to pay can support the sourcing department for genuine effective contract compliance and supplier management
1. Roundtable: Contract
Management
How P2P can support the sourcing
department for effective contract
compliance and
supplier management
Sharedserviceslink.com
June 2012
Muhammad A Ayub
Head of Process
Integration &
eProcurement
2. About Barclays
• Barclays is a global financial services provider, engaged in retail and
commercial banking, credit cards, investment banking, wealth
management and investment management services all over the world.
• With over 300 years of history and expertise in banking, Barclays operates
in over 50 countries and employs more than 144,000 people.
• Barclays moves, lends, invests and protects money for more than 48
million customers and clients worldwide.
2 | SSL | June 2012
Barclays Plc. This document in whole or in part not to be re-used or distributed without prior approval
3. P2P & Procurement in Barclays
• c£8bn annual spend, approx 85% on services.
• 1m+ invoices per annum.
• Shared service A/P supporting major locations, with local operations in remainder. Plans in
place to migrate all to common SSC.
• Multiple ERP / P2P systems – standardisation in progress.
• Process / policy ownership and PO processing / support led by Procurement, invoice processing
/ support led by Finance. Teams co-located to support knowledge sharing and alignment.
• Procurement supported by single, standard e-procurement platform for category management,
eSourcing, contract management and supplier management activities.
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4. Key Challenges
• Increased scrutiny and pressure to demonstrate savings delivery through to P&L with a clear
line of sight.
• Low-hanging savings opportunities have been tackled, need to work harder and smarter to
sustain savings pipeline.
• Savings targets increasingly dependant on supplier management activities.
• Disparate systems and processes resulting in:
• Inefficiency through e2e with duplication of activities and data.
• Data inconsistencies – eg multiple vendor records in Procurement & A/P making reconciliation/compliance
between vendors, contracts and spend extremely difficult – particularly for services spend.
• Supplier discussions often dragged into focusing on operational issues / bottlenecks rather than value-add
opportunities.
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5. Roundtable Discussion
In your table groups, debate:
• How can P2P and Sourcing tackle these challenges to drive greater efficiency
and transparency through the e2e process?
• What can a P2P department do to help support contract compliance and
supplier management activity?
• What are the key practical actions that we could take to make this happen?
• Nominate a spokesperson to report back in detail
• You have 20 minutes
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6. Conclusion and questions
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Barclays Plc. This document in whole or in part not to be re-used or distributed without prior approval