coupa - chief spend officer 2.0 - procurecon west 2012

Considerations for the Chief Spend OfficerAmplifying Procurement’s Role

Tony Wessels Vice President

Spend Optimization

Customers HighlightsRetail Finance Mfg. Health

CareHigh Tech

Change

Business Drivers

Growth Strategy

Cultural Shift

OperationalTransition

Business Drivers

Growth Strategy

Cultural Shift

OperationalTransition

“It’s The Economy Stupid”

Fortune 500: Revenue Growth

Stubbornly low / negative revenue growth rate

Fortune 500: Profit Growth

Erratic profit growth

Growth Strategies

Acquisitions

Geographic Expansion

Agile Spend Integration

Plan for M&A activity

Proactively integrate acquisitions quickly

Bring distributed locations under management

Case Study

21 Plants 3 Weeks

35% Savings

What can you do?

Learn your company’s growth strategies

Investigate spend savings During M& A activity

Geographic expansion

Be proactive. Reach out to other organizations

Business Drivers

Growth Strategy

Cultural Shift

OperationalTransition

User Adoption Drives Savings

User Adoption

Spend Under Management

Increase Savings

85%

9%

Culture of Responsible Spending

Your Users• Remote workers • Mobile• Short attention span

Your TeamPolice: c.1530, at first essentially the same word as policy

Conductor: c.1520s, "one who leads or guides"

Be A Conductor

Make it easy

Home Experience

Home Experience

Work Experience

Opening A Req

1. Account Number

2. Item No

3. Quantity

4. Unit Cost

5. Extended Cost

6. LT (Line Type)

7. Desc 1 (Description 1)

8. Desc 2 (Description 2)

8. G/L Date

9. Trans UOM (Transaction Unit of Measure)

10. Purch. UOM (Purchasing Unit of Measure)

11. Last Sts (Last Status)

12. Subledger

13. Subledger Type

14. Next Sts (Next Status)

Complete the following fields:

Make it mobile

world population 6.8 billion

5 billion cell phone users

85% of children own a phone

73% own books at home

Source: National Literacy Trust

“In the last twelve months, customers around the world have ordered more than US$1 billion of products from Amazon using a mobile device," – Jeff Bezos, founder and CEO of Amazon.com (July 2010).

Culture of Responsible Spending

• Convenient & Familiar

• Reward them for their frugality

• Crowd source ratings

Case Study

70 hat options to 4

25 suppliers

25 emergency P.O.s only from ERP

to 2

What Can You Do?

Rethink your role – How can you conduct vs. police

Make it frictionless Are you making it easy for users

Eliminate super users

Implement a reward system for being frugal

Leverage their collective wisdom Supplier ratings

Business Drivers

Growth Strategy

Cultural Shift

OperationalTransition

Old hierarchies

How We Spend

What Can You Do

Evaluate effectiveness of your workflow. Is it based on hierarchy or function?

Establish management by exception where possible to streamline efficiencies

Automate paper processes for increased flexibility

Summary

Learn your company’s growth strategies. Are there opportunities for spend savings during M&A or branch growth?

Assess your corporate culture. Be a catalyst for creating a culture of responsible spending.

Evaluate your company’s organizational structure. Are your processes aligned with function or hierarchy? Are there opportunities to amplify your spend power?

Evaluate technologies that drive user adoption for increased spend management and increased savings.

AQ &