2008 newell rubbermaid drives global procurement changes armed with powerful spending data
DESCRIPTION
Global Procurement Charges Armed with Powerful Spending DataTRANSCRIPT
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2011 SAP AG. All rights reserved. 1
Newell Rubbermaid Drives Global Procurement Changes Armed with
Powerful Spending Data
Troy Bohanon, Director Supply Chain IT, Newell Rubbermaid
SAP Spend Performance Management 3.0 Features & Roadmap Raj Alluri, Director Solution Management, SAP
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2011 SAP AG. All rights reserved. 2
SAP Sourcing
SAP SRM &
SAP ERP (w/ SAP Cart Approval
mobile app)
SAP Invoice Mgmt
by OpenText
SAP Supplier Self-Service
SAP Commodity Procurement
New!
SAP
Contract Lifecycle
Management
SAPs Procurement Portfolio Today
SAP
Supplier Lifecycle
Management
New!
SAP Spend
Performance
Management
SAP Data
Enrichment and
Classification
OnDemand
New!
Spend
Analytics
Supplier Management
Sourcing Contract
Management
Operational
Procurement
Invoice
Management
SAP Confidential
SAP eInvoicing for
Compliance
OnDemand
SAP SRM
Bidding Engine SAP Information Interchange OnDemand
SAP SRM
Central Contract
Management
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2011 SAP AG. All rights reserved. 3
Information is key for procurement performance
. . . and that requires
Enterprise-wide visibility to spend
and buying patterns
Complete, accurate, and reliable
data
Powerful information at the hands
of the business user
An ability to take action based on
profound decisions
To meet strategic business
goals, procurement needs to . . .
Know what and from whom
youre buying and how much youre spending
Identify savings opportunities
Develop strong supplier
relationships
Monitor compliance
If I can take the data from my spend analysis tool and understand
where it comes from and tie it to performance, then I can easily address
the opportunities to drive savings and reduce spend.
CPO, Large North American Insurance Company
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2011 SAP AG. All rights reserved. 4
Challenges for effective spend analysis
Partial solutions: master data management and extraction, transformation, and loading (ETL)
Expensive manual processes
Multiple vendor licenses
Cant quantify buying leverage without knowing supplier parent-child
Cant identify aggregate volume by category of spend
Cant optimize for common purchases across departments
Complex spreadsheets
Reliance on IT for reports
Complicated analysis tools
Analysis not integrated with transaction systems
GL
P-cards BW
Government watch lists
Supplier financial and
operational data
Disparate data sources Dirty data Difficult to access
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2011 SAP AG. All rights reserved. 5
SAP Spend Performance Management
Data integration Data enrichment and
classification Business analysis
Transaction knowledge Base
P-cards
GL/AP BW
Supplier data
Business compendium
Spend-specific data model
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2011 SAP AG. All rights reserved. 6
SAP Spend Performance Management Solution Overview
Customer Pain Points
No insight into Corporate Spend on a subsidiary level
No Performance Management to act on plan deviations
Description
Simplify and optimize spend management and performance
Automate and streamline spend management processes
Monitor continuously results of spend management
Value Proposition
Gain full spend visibility through automated data capturing and data accuracy processes
Increase Spend Under Management through collaboration and target alignment
Rapidly identify savings opportunities through finding savings potential and pro-active compliance monitoring
Reduce Supplier Risk through Cortera Risk Data and Reporting* and simulation
Outcome Opportunity
Efficient standard spend management processes
Increased Procurement business ROI
* add-on solution separately priced.
GL
P-Cards T&E
BI
ERP
Data Enrichment & Classification*
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Spend Performance Management
at Newell Rubbermaid
Troy Bohanon
Procurement IT Director
Newell Rubbermaid
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Our Business is Transforming
We are a global marketer of consumer and commercial products that touch the lives of
people where they work, live and play
Approximately 21,000 employees worldwide Becoming known for Brands That Matter Investing in consumer-driven branding Leveraging one global company to drive
innovation and achieve scale efficiencies
Strengthening our financials with top-line, bottom-line and gross margin increases
Expanding our global footprint
More than 90% of
US households have at least one Newell Rubbermaid product
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Project Catapult
Multi-year SAP implementation with a vision of building and implementing a common corporate-wide software
system that supports our business
Business Unit Big Bang Implementation Approach Office Products October 2007 Home & Family April 2008 Tools & Hardware August 2009 Cleaning and Organization April 2010 Dcor August 2011 EMEA April 2012 LATAM - 2012/13 APAC - 2013
Single Global Instance
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Business Challenges
General Gaining visibility into spending patterns Prioritizing procurement initiatives to balance costs, service and
risk of supply base
Organizational One Global Company Centralized sourcing with decentralized execution Leveraging NWLs purchasing power throughout the enterprise
Technology Expanding the Global Blueprint footprint while hitting
implementation, maintenance and release schedules
Providing tools to enable the changing organization Providing an integrated sourcing and procurement landscape
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Why SAP Spend Performance
Management?
New Indirect Procurement Leadership High-Level Requirements
Single global spend analytics platform for indirect & direct materials Web-based application with built-in graphical capabilities Ability to drill into the data to investigate spending patterns /
scenarios
Quick implementation with standard integration to SAP Leverage existing content Ability to quickly create custom reports on-the-fly
Low adoption of the use of BEx Replacement of a Cognos Spend Cube from legacy source
systems
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SPM Project Objectives
Fully exploit the power of information to leverage NWLs purchasing power, increase operational and manufacturing efficiencies, improve shareowner and customer value and enhance supplier relationships
Gain visibility to company-wide spending patterns and supply base
Establish key measures across critical success factors to manage spend
Identify hidden savings opportunities and supplier risk factors Launch procurement initiatives that meet strategic goals Consolidation of spend across multiple source systems Supplier base rationalization Streamline spend analysis processes
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Scope
Technical Went live on SPM 2.1 and recently upgraded to SPM 3.0 First implementation where SPM leveraged existing BW/BI &
Portal environment
Automated data loading using BIs ETL capabilities Evaluated the 120+ standard SAP reports 39 standard reports / Over 200 Public Reports / 20+ Public
Dashboards
Spend slicing and dicing based on 68 dimensions and 36 measures
Spend aggregation based on 5 hierarchies- UNSPSC, Spend Type, Supplier Diversity, Profit Center, Product Hierarchy
Specific customizations to match Newell Rubbermaid profile
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Scope (Continued)
Source System One ECC 6.0 All data since 10/2007 No Data Standardization & Enrichment (DSE) services No non-SAP sources
Initial Pilot 25 Users (Mostly Corporate and Group Based) North America
Currently over 100 Users
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Newell Rubbermaid Standard Content
Groups folder contains standard Newell Rubbermaid
content. 6 Subfolders with dimension-specific reporting:
Direct Indirect Non PO Spend Payment Terms Price Optimization Spend By
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SPM 3.0 Scope and Learning's
SCOPE Expanding usage beyond North America Technical Upgrade in Phase 1 Currently over 100 Users
Upgrade Experiences Compared to overall BW upgrade issues this is Walk in Park
and went very smooth
Ran into BI 4.0 and BW SP5 dependencies Worked with SAP to resolve issues and upgraded to BW SP5 with SPM 3.0 SP1
on March 15th
Users like New SPM 3.0 Usability enhancements and solution was accepted by user community without a formal Change
Management process.
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SPM 3.0 Implementation Challenges
Web Dispatcher Issue Date Filters not applying to Newell Standard Reports Missing Configuration of Dimensions/Measures Detail Report Functionality Changes Adobe Flash Crashes
All Issues were resolved by SAP Development prior to Go Live!!
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SPM 3.0 Benefits
Performance Improvements Application launches faster and reports run as fast or faster than SPM 2.1
Improved Security Capabilities SPM now allows for custom roles to better control folder and report access
for end-users.
Exclude Filter Option Requested feature that was unavailable in 2.1 means instead of having to select
many values for inclusion only one selection is required
Hierarchy Functionality Improved hierarchy views allow users to display multiple levels of profit center, UNSPSC,
and Spend Type Hierarchy
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SPM 3.0 Phase 2 Features (Future)
Advanced Analysis Functionality What-if Analysis Spend Advisor Supplier Risk Analysis Business Synergy Analysis
Custom Workspaces Procurement Oriented Finance Oriented
Days Payable Analysis Analyze Days Payable Outstanding Review Trends in Delays in Payment
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Critical Success Factors of Upgrade
Tight coordination between Newell Rubbermaid & SAP Solution Management and RIG
Rigorous governance through daily team calls, biweekly calls with SAP and milestone based steering committee meetings
Cohesive team consisting of BI development & production support, Security, Portal, Basis & Data base administration
Milestone based signoff by key stakeholders Top management commitment
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2011 SAP AG. All rights reserved. 21 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
Key Features Business Value
SAP Spend Performance Management Version 3.0
New UI Features/Enhancements
New landing page provides a role-based view of the applications version 3.0 features
Workspace concept allows grouping together of similar tasks
New reporting features improve ad-hoc analysis capabilities
Ability to adjust the text size in UI for better visibility
Provides business users an enhanced UI with more intuitive navigation to content
and new functionality within the
application
The ability to provide feature-based authorization to the applications new functionality will ease of navigation and
ensure maximum use of the features
version 3.0
New reporting functionality like scope context and enhanced charting provided
by BUI will add value to the ad-hoc
reporting and charting in version 3.0 of
the application
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2011 SAP AG. All rights reserved. 22 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
New Landing Page
Favorites
Recent Documents
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2011 SAP AG. All rights reserved. 23 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
User/Role Specific Workspaces
Users Can Organize their own Content (Reports, Dashboards,
BriefingBooks etc)
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2011 SAP AG. All rights reserved. 24 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
Expanding Tree Hierarchies
Visualize all hierarchy levels on single screen
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2011 SAP AG. All rights reserved. 25 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
Improved Folder Management
Browse all reports from single screen
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2011 SAP AG. All rights reserved. 26 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
Ability to Filter Out Values in Reports
Excluded values
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2011 SAP AG. All rights reserved. 27 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 What-if Analysis
Key Features Business Value
Perform what-if simulations within SAP BusinessObjects Spend Performance
Management
Provides a framework based on variables (global, local) and formulas
Provides ability to perform business simulations
Empower procurement end user to make improved decisions during the
sourcing process
Build and compare different sourcing scenarios
Manipulate the results to identify the most beneficial scenario
Some examples for what-if analysis are
Buy now vs. buy later
Ability to analyze savings potential based on different payments terms
Buy local vs. buy global
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2011 SAP AG. All rights reserved. 28 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 What-if Analysis
Example: Total Landed Costs Simulation
Local Variables
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2011 SAP AG. All rights reserved. 29 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 Savings Analysis Reporting
Key Features Business Value
Calculate period over period savings at the Item or category level
Savings formula is variance of selected price measure between selected time
periods x quantity measure for current
time period
Compare spend for a specific Item or category over an end-user-defined time
period
Calculate the savings gained from previous sourcing activities
Report can be saved and added to briefing books for presentation to
senior management or LoB
stakeholders or performance reviews
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2011 SAP AG. All rights reserved. 30 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 Savings Analysis Reporting
Local Variables
Global Variables
Calculate period over period savings at the Item or category level
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2011 SAP AG. All rights reserved. 31 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 Business Synergy Reporting
Key Features Business Value
Analyze common spend between management organizations (business
units, divisions, plants etc. at the same
level) for a specified time period (cross
tab view)
Review spend across an organization to identify suppliers that are common
between divisions
Identify opportunities for global contracts that cover the entire spend,
resulting in cost savings
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2011 SAP AG. All rights reserved. 32 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 Business Synergy Reporting: Analyze Common Spend
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2011 SAP AG. All rights reserved. 33 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 Payment Analysis Reporting
Key Features Business Value
Perform a DPO analysis by grouping the DPO into DPO groups and reporting
on payment amounts associated with
each group
Report on the supplier by DPO group
Navigate to the payments detail report
Analyze effectiveness of the organizations payment operations
Gain visibility into utilization of payment terms and leverage during negotiation
with suppliers
Navigate to payments detail report to analyze transaction level payment
information from source systems
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2011 SAP AG. All rights reserved. 34 This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Spend Performance Management Version 3.0 Payment Analysis (DPO-Days Payable Outstanding)
Fast access to additional payment
analysis reports
Report on the supplier by DPO group for better
insight
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2011 SAP AG. All rights reserved. 35
SAP Spend Performance Management Roadmap
First Release as xAPP
Spend Analysis
Spend Analytics
1.0/2.0
2011 2010
Spend Performance Management
Global Support Multi Currency
E sourcing Integration
Enhanced Time and Trend Analysis
Language support (English, German, Czech, Spanish,
French, Hungarian,
Japanese, Portuguese,
Russian and Simplefied
Chinese
SPM2.1
What if Analysis and Simulation Framework
Business Synergy, Savings and Payment Analysis
New UI features and enhancements
Language support(Korean, Danish, Dutch, Finnish, Italian, Slovak)
2008/2009
Support of HANA as DB Platform (Optional)
Improved UI and Data Load performance
Architected Data Mart with BW7.3 as EDW
Innovation without Disruption
SPM3.0
HANA as DB SPM3.0
2012
Q2
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
Enhanced Integration with
LoB procurement applications
Integration with SAP BusinessObjects GRC and SAO BusinessObjects EPM applications
Predictive analytics capabilities
Additional integration with SAP BusinessObjects BI tools
Enhanced mobile scenarios
Future Versions
(Planned)
>=2013
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Q&A
Thank You
Presenters:
Troy Bohanon, Director Supply Chain IT, Newell Rubbermaid
Raj Alluri, Director Solution Management, SAP