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RECENT POSTINGS

The SIG Career Network is bursting with opportunities.

New jobs are posted daily by some of the best known global

companies in the world for those

seeking careers in sourcing, outsourcing, procurement and

related functions.

For more information go to: www.sig.org/career-center.php

NEW to the Career Network!

• NetApp – posted June 9:• Global Sourcing Partner

• Whirlpool – posted June 3:• Sourcing Manager – Tier 2 Electronics• Strategic Sourcing Specialist – Cooling• Strategic Sourcing Specialist – Heating• Senior Sourcing Specialist – Delivery• Senior Sourcing Specialist - Indirect

• FedEx – posted June 3:• Sourcing Advisor

• Gap, Inc. – posted June 2:• Category Manager I – Marketing• Category Manager I – Merchandise• Category Manager I – Software• Category Manager II – Outsourcing• Category Manager II – Packaging• Category Manager II - Digital Sourcing

• Guidewell/Florida Blue – posted June 1:• Sourcing Specialist – Delivery• Sourcing Specialist - BPO

• Ross Stores – posted May 19:• Senior Analyst, Strategic Sourcing

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Upcoming Town Hall Teleconference:

July 13th

Unpacking Collaborative Bidding: Harnessing the

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Presented by:

Kate VitasekUniversity of Tennessee

Calendar of Town Hall TeleconferencesTaking place at 1:00 pm Eastern on the following dates:

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Online learning environment with multiple eLearning options: Virtual Classroom, Self-Paced and Custom Solutions

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Certified Sourcing Professional starting June 27, 2016!Certified Governance Professional starting July 25, 2016!

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Partnering with Universities

Introducing students to seasoned supply chain executives

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Giving access to internship and job postings on the SIG Career Network

Allowing students to get real world insight into supply chain careers

Finding tomorrow's supply chain professionals today

Show Me The Synergies – The

S2P Suite Story

Presenter

Richard Waugh

V.P. Corporate Development

Zycus

Richard has an extensive background in B2B E-

Commerce. He helped launch GE's Trading Process

Network (TPN), the first on-line Marketplace for Sourcing

and Procurement. He was also Co-Founder of

B2eMarkets, one of the first SaaS (Software as a

Service) Sourcing Suite providers and later covered the

Supply Management market as an Industry Analyst for

the Aberdeen Group.

Presenter

Sanjeet Calangutcar,

Senior Solutions Consultant, Zycus Inc

With 7 years of domain expertise in product marketing, solution sales and consulting with Zycus, Sanjeet brings a

sound knowledge of the business applications of the Zycus Procurement Suite. He works out of their Chicago office

and specializes in Procure-to-Pay engagements including new customer acquisitions and solutions delivery across

the US. Sanjeet holds a degree in Chemical Engineering from the University of Mumbai and is also currently working

on finishing his CPSM certification with ISM.

Zycus Comprehensive Solution Suite

Agenda

The Value of Integrated S2P

The Business Case

The Use Case(s)

Case Studies

Synergy Scenarios

Best Practices in Planning for S2P Deployment

Sequencing/Phasing

Resource Planning

Change Management

Q&A

The Value of Integrated Source-to-Pay (S2P)

Gartner’s August 2015 report, “IT Market Clock for Procurement and Sourcing Solutions, 2015,” cites a

key finding of “buyer interest in broad suites to reduce integration requirements, simplify architecture

and reduce the number of solution vendors to manage.”

All are key drivers for an end-to-end suite, but are there other synergies

that justify the all-in-one approach based on an incremental ROI?

ComponentCurrent Incremental

Improvement

Target Performance Incremental Savings

Incremental Spend Under Management (SUM) 10% 800% 90%Spend Sourced 44% 41% 62%

Sourcing Savings on Incremental Spend Sourced ($) $5,268,000 372% $24,843,600 $19,575,600 Subtotal Incremental Sourcing Savings $19,575,600Contract Compliant Spend 50.0% 33% 66%

Incremental Contract Compliant Spend Savings $6,000,000 33% $7,956,000 $1,956,000

Supplier Management Productivity Savings 0% 20% 20% $50,000

Supply Risk Mitigation 0.30% 50% 0.150% $900,000

Total Savings $22,481,600

Business Value

The Business Case

Integrated Source-to-Pay Suite Value Proposition

Increase SUM – Discover

Savings Opportunities

Higher Sourcing

Throughput & Savings ID

Rationalize Supply Base –

Increase Spend w/Preferred

Visibility & Compliance to

Preferred Agreements

Reduce/Eliminate Maverick

Purchases

Capture Prompt Pay

Discounts/P-Card Rebates

Reduce Transaction

Process Costs

Track Finance- Approved

Savings

The S2P Synergies

Spend Analysis

Sourcing

Project

Management

Contract

Management

Supplier

Performance

Supplier

Information

Management

Savings

Management

• Identify Savings Opportunities

• Initiate and Track Sourcing Projects

• Populate & Finalize Agreements with Negotiated Ts and Cs

• Establish Visibility and Compliance at point-of-use, e.g. Requisition

• On-board Contracted Suppliers

• Enable for Sourcing, P2P, Contracts, Scorecards

• Drive compliant Requisitions/Orders properly approved, coded and classified for spend analytics

• Route off-contract reqsto Sourcing for quote

• Document Finance-approved Savings

• Establish new spend baseline/future savings targets

• Engage Stakeholders

• Optimize Best Value Sourcing Decisions

P2P

S2P Synergies – The Best-in-Class Advantage

Spend Analysis

Sourcing

Project

Management

Contract

Management

Supplier

Performance

Supplier

Information

Management

Savings

Management

Spend Under Mgmt.BIC 90% - +37%

P2P

Spend Sourced.BIC 62% - +18%

Spend Contract CompliantBIC 66% - +14%

Transactions Contract CompliantBIC 74% - +14%

Suppliers EnabledBIC 37% - +10%

SavingsBIC 6.7% - +1%

+$1M per $100M Spend

Source: Ardent Partners, “CPO Rising 2015: The Agility Agenda”

Cumulative Benefits of Integrated Source-to-Pay

Spend Analysis SourcingContract

Mgmt. ProcurementAccounts

Payables

Enterprises that leverage spend analysis into their sourcing projects save, on average, between 24% -

41% more per project

Eliminating any sourcing/contract process gap can reduce savings leakage by up to 38%

Best-in-Class enterprises report compliance rates that are 20%+ superior

Linking and automating the P2P process can reduce invoice cost by up to 80%

Source: Ardent Partners, “CPO Rising 2015: The Agility Agenda”

Key Benchmarks

Spend Contract Compliant

All Others Best-in-Class

51.7% 66.3%

Spend Under Mgmt.

All Others Best-in-Class

53.1% 90%

Spend Sourced

All Others Best-in-Class

43.9% 61.8%

Savings

All Others Best-in-Class

5.8% 6.7%

Source: Ardent Partners, “CPO Rising 2015: The Agility Agenda”

Searchable Contract Repository

All Others Best-in-Class

53.9% 68.9%

Transactions Contract Compliant

All Others Best-in-Class

59.7% 73.8%

SAMPLE: Business Case Opportunity Analysis

Incremental Sourcing Savings

$19.6M (H*)

Supply Management

Productivity/Supply Risk

Reduction

$.9 M (S**)

Contract Leakage Reduction

Savings

$2.0M (H*)

Maximize Prompt Pay

Discounts/P-Card

Rebates

$.5M (H*)

Reduce P2P

Transaction Process

Costs

$1.9M (S**)

$24.9M Potential Savings4.15% of $600M Sourceable Spend

Hard (H*) $Savings =$22.1MSoft (S**) $Savings = $2.8M

S2P Case Studies – High Tech Manufacturer

Sourcing

• Needed to drive cost reduction and gross margin improvement during a period of intense market pressures

• Mandated procurement headcount reduction to Increase productivity – despite head count below industry benchmarks –necessitated process automation to increase productivity

Created a “Single Version of the Truth” for Spend Analytics to identify supplier rationalization and sourcing opportunities and payment term rationalization to Net 60

Deployed easy-to-use, intuitive eSourcing platform to power all RFx activities driving 15% higher adoptionover previous toolset, increasing sourcing throughput and savings achievement

Mitigated supplier & financial risk by rationalizing the supply base by 30% and preventing supply chain disruptions

Boosted Savings per Procurement FTE 26% while lowering headcount 23%

Standardized Supplier Performance Measurement with 100% adoption of tool and methodology for tracking and reporting supplier KPIs

Spend Analysis

Supplier Performance

Key S2P Synergy:

S2P Case Studies – Aerospace & Defense

• Needed to streamline complex Sourcing and Contracting process involving very large bid packages (10K+ line items) and 000’s of suppliers

• Mandate for SOX compliant contracting process with standard clauses, approval audit trails, and clause-level user access controls for confidential/sensitive data

Cut sourcing cycle time 65% by enabling complex what-if bid/cost analysis for large projects in single, on-line sourcing events

Implemented standardized contract authoring process utilizing 40+ standard templates and 10+ approval workflows approved by Legal and compliant with SOX and other regulatory requirements

Integrated Spend Analytics to Contracts and Supplier Performance Measurement to automatically update contract utilization and supplier KPI scorecard metrics

Spend

Analysis

SourcingSupplier

Performance

Key S2P Synergy:

Contract

Management

S2P Case Studies – Private Insurer

Supplier

Information

Management

P2P

• No single source of truth, ad-hoc supplier on-boarding process and incomplete supplier details

• Paper-based purchase-to-pay and high “No PO” non-compliant spend

• Communicated mandatory portal program participation for initial on-boarding of top 500 suppliers

Empowered end-user adoption, migrating from centralized to de-centralized purchasing and strengthening compliance with a “No PO – No Pay” policy

Reduced Vendor Management FTE support by 87% with self-service supplier portal for registration, on-boarding, as well as invoice status tracking

Automated 3-way Invoice Matching to save 40% of time spent by AP on invoice processing and exception management

Shaved 1/3 off invoice approval cycle times enabling 1% savings for prompt pay discounts on one-third of total spend

Key S2P Synergy:

The Use Case(s)

Contract-to-Source

Req-to-QuoteReq-from-Contract

Source-to-Contract

Spend-to-Source

Every spend

opportunity can be

converted to a

sourcing event

Spend to Sourcing

Sourcing to Contract

One-click contract creation from awarded sourcing events

P2P To Contract

Contracts can be

accesses during

requisition for

visibility and

compliance

P2P To Sourcing

Requisitions can be

sent to sourcing to

generate quotes

Contract to Catalog

Contract-to-catalog

links allows

organizations to buy

preferred items from

contracted suppliers

Overview of Source-to-Pay Integration Touchpoints

Request Management

Project Management

Spend Analyitcs Sourcing ContractsSupplier

ManagementSupplier

Performance

eProcurement eInvoicing

Request and

track Contract

creation

Create events

from requests

Create, track

and manage

sourcing events

Review past

performance before

inviting suppliers

Create

sourcing

projects

Convert PRs

to RFP and

award POs

Validate contract terms

for catalogs, PO to

contract matching

Update

preferred

vendor lists

Refer master

data for

creating

invoices

Review

supplier

history

Create, track

and manage

contracts

Transfer

Attachments, T&Cs,

Pricelist for

Contract creation

Create and invite

potential

suppliers

Control Layer

Strategic Layer

Operational Layer

Refer

supplier

data

Refer supplier scores

before ordering

Supplier Network

Synergy Scenarios

SSO(S)QBR

ERP TCO

QBR – Virtual and Mobile

The Backstory:

A Quarterly Business Review with a strategic supplier often requires days or weeks to prepare and schedule for a day or half–day face-

to-face meeting or web conference, causing delays and lost productivity to gather data across multiple, disparate systems and format

PPT charts and graphs

Scenario:

Real-time, mobile access to consolidated supplier data across the entire S2P process, enables strategic supplier business reviews

anytime, anywhere.

SSO - Procurement

The Backstory:

Organizations with disparate, “point” solutions across different Sourcing and Procurement functions often fail to achieve the ir user

adoption goals because each application module has a different log-in, look and feel, and separate underlying data structures

Scenario:

Integrated S2P suite allows users to log-in once, and seamlessly transition from one phase of the Sourcing and Procurement process to

another, creating rapid adoption and one “version of the truth.”

SSO - Suppliers

Yourcompany.com/zycus_suppliernetwork

MY PERFORMANCE

Task and Milestone

My Workbench

MY ORDERS

View Orders

MY CONTRACTS

View Contracts

MY CATALOGS

Upload New Catalog

View Catalogs

MY INVOICES

Create PO Invoices

Create Non PO Invoices

MY PAYMENTS

View Payments

SUPPLIER MANAGEMENT

Performance Reports

Development Report

ESOURCING

Respond to Events

View Event Score

The Backstory:

Suppliers are suffering from “portal fatigue” – not only a different portal for each buying customer, but for those customers with multiple

disparate applications for S2P, multiple portals for a single customer, sometimes incurring incremental fees to transact with customers

on business they already have

Scenario:

A single portal interface – with no fees to the supplier – makes it possible for suppliers to log-in once, and enter data once, across a

range of collaborative activities with multiple buying customers.

ERP – Integration and Optimization with S2P

S2P SuiteClient ERP

Client Email

Suppliers

Client A/P

Purchase Orders

MASTER DATA

Categories, GL,

Budgets, UOMs,

Users, Suppliers, etc.

Requests

Purchase Orders

MASTER DATA

Categories, GL,

Budgets, UOMs,

Users, Suppliers, etc.

Purchase Orders

Invoices

Invoices

Payments

Approved Invoices

Receipts Receipts

RequestorInvoices

1

3

4

7

8

2

6

The Backstory:

Buying organizations have made significant investments in ERP(s) as their “System of Record.” Integration between the S2P Su ite and

the ERP system is key to maintaining data integrity and optimal performance across the systems infrastructure.

Scenario:

An effective S2P-to-ERP Integration approach entails the

following:

APIs with available real-time, web-services or file-based

integration

Synchronization of supplier data between ERP Supplier

Master and S2P Suite

Archiving of transactional data in both S2P Suite and

ERP as “System of Record”

Updating S2P Supplier Portal with payment status from

Client A/P to enable self-service supplier invoice and

payment tracking

TCO

The Backstory:

Total Cost of Ownership for Sourcing and Procurement applications increases significantly if approached piecemeal, i.e. by licensing

individual modules separately, buying organizations pay more in total for software than if they leveraged their buying power across the

entire suite purchase, and incur added coordination and integration costs to manage multiple relationships and platforms.

Scenario:

Gartner offers the following recommendations for potential suite buyers:

■ Be clear and precise regarding the value you expect to get out of an

integrated S2S suite.

■ Make sure that all modules in the suite are mature enough to meet your

needs, and investigate upstream and downstream solutions independently to

ensure that requirements are met.

■ If you decide on a suite, negotiate all the modules at the same time, but don't

implement (or pay) all at once

Source: Gartner

Best Practices in Planning for S2P Deployment

Gather Benchmark Data

Prioritize Investment/ Phasing Strategy

Develop Implementation Project Plan

Allocate Internal Resources

Adopt Change Management Plan

Monitor Progress

Plan for Subsequent Roll-Out Phases

Build Business Case

Best Practice S2P Technology Sequencing

Spend analysis E-Sourcing SBM

Map external spendNegotiate Strategic

AgreementsManage compliance

Manage Supplier

Relationships

Key Success Factors• Identify and use data from relevant

transaction systems

• Deduplicate and classify

• Assign ownership of spend categories

Key Success Factors• Promote a culture of control and

responsibility

• Involve stakeholders in category plans,

work flow and templates

Key Success Factors• Build a pipeline of cost reduction

opportunities

• Create a center of excellence

• Make use of e-sourcing mandatory

Key Success Factors• Segment supplier base to rightsize

management

• Deploy solutions that support supplier

collaboration

CLM

VMSP2P

Source: Gartner “Best Practices for Sequencing Procurement Solution Investments” December 2014

Sample S2P Implementation Timeline

P2P

Spend

Analysis

SupplierGlobal Platform Ready

Configuration, Templates, Data Upload, Training

Global Adoption

Supplier Onboarding

Month 1 Month 2 Month 3 Month 5Month 4 Month 6 Month 7 Month 8 Month 9 Month 10

Sourcing

ContractRepository

Configuration, Data

Upload

Live Event & Adoption

Global Adoption

K

I

C

K

O

F

F

Gather

Require-

ments

Authoring

Templates, Workflow

Configuration, Templates, Data Upload,

Training

Global Platform Ready

Global Platform Ready

Configuration, Templates, Data Upload, Training

Configuration, Integration, Training

Global Platform ReadyGlobal Adoption

Timeline varies based on # BUs, geographies, ERP source systems, suppliers and users

Client Project Team Resources Required

Role Description:

• Act as single point of contact (SPOC)

• Co-ordinate with internal stake-holders

Time Requirement

During Deployment:

• Dedicated resource

During Production

• .5 FTE for Ongoing System AdministrationProgram

Manager/Business Lead

IT Project Lead

Role Description

• Provide access and support to ERP

• Leads Integration design/test

Time Requirement

During Deployment:

• .5FTE

During Production:

• 1 day per month

Subject Matter

Experts (SMEs)

Role Description:

• Define As-Is process/To-Be requirements

• Review and test (UAT) configured system

Time Requirement

During Deployment:

• 1-2 weeks requirements, UAT, training

During Production:

• 1 day per quarter for new requirements

SMEs Include:

• Sourcing/Procurement

• Finance

• Legal

• A/P

• Others e.g. IT, Marketing etc.

Implementation Best Practices - Change Management

Executive sponsorship a must – should include executive sponsor on project

steering committee

Key stakeholders involved up-front in solution selection and configuration

decisions, and updated throughout deployment process

Brand the project and promote regularly

Showcase benefits achieved and address “What’s in it for me?” to

stakeholders, as well as benefit to company

Train habitually – not a single training class, but also ongoing refreshers with

self-paced training and real-time chat support

How can we help you?

Thank You