sap contract management
DESCRIPTION
Presentation for Contract ManagementTRANSCRIPT
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 2
Breakout Session # WC05-147
Mike Kaul, CEO, diCarta, Inc.
Date: Wednesday, April 27, 2005
Time: 1:20PM
Eliminating Maverick Purchasing and Improving Supplier Performance
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 3
Agenda
• Challenges in Supplier Management
• Supplier Contract Management Blueprint
• Case Studies
• Building a Business Case
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 4
LEASE
CAPITALEQUIPMENT
PROFESSIONALSERVICES
Challenges in Supplier Management
Spend Analysis
?
Procurement
Supply Chain Systems
eProcurement
Operational Systems
Sourcing
Accounts Payable
?
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 5
LEASE
CAPITALEQUIPMENT
PROFESSIONALSERVICES
?Discounts & Rebates
Service Performance
Milestones
Delivery
Quality
?
?
?
?
Right Products ?
Challenges in Supplier Management
Spend Analysis
?
Procurement
Supply Chain Systems
eProcurement
Operational Systems
Sourcing
Accounts Payable
?
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 6
Existing Solution Limitations ERP, SRM, SCM
• Fail to support full lifecycle contract
management
• Limited contract management functionality
• Disjointed business process
• “Swivel-Chair” integration
• Multi-business unit enablement is challenging
• Requires significant resources for internal
development
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 7
Agenda
• Contract Challenges in Supplier Management
• Supplier Management Solution Blueprint
• Case Studies
• Building a Business Case
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 8
Spend Analysis
Sourcing Procurement
Accounts Payable
Supply Chain Systems
eProcurement
Operational Systems
Appro
ved
Paid
Verifi
ed
Contract Management Solution
Discounts & Rebates
Service Performance
Milestones
Delivery
Quality
Right Products
x
x
x
Blueprint for Success
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 9
Blueprint for Success
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 10
Blueprint for Success
Contract Authoring
Contract Negotiation
Contract Reporting & Analytics
Obligations, Compliance,
& Renewals Management
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 11
EnforcedPolicies
ClauseLibrary
Templates
EnforcedPolicies
Guidelines
Solving Contract Limitations of Sourcing Create and Control
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 12
EnforcedPolicies
ClauseLibrary
Templates
EnforcedPolicies
Guidelines
Suppliers
Partners
Customers
Negotiate
Author &Collaborate
Review &Approve
Solving Contract Limitations of Sourcing Create and Control
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 13
EnforcedPolicies
ClauseLibrary
Templates
EnforcedPolicies
Guidelines
Suppliers
Partners
Customers
Negotiate
Author &Collaborate
Review &Approve
Operations Systems
Mfg. Finance
Procurement / SCM
Solving Contract Limitations of Sourcing Create and Control
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 14
Solving Contract Limitations of Procurement and A/PAdminister and Comply
Supplier Compliance
Renewals,Terminations,Consolidation
Manage Obligations,Deliverables
Manage Amendments
AMENDMENTB
AMENDMENTD
AMENDMENTA
AMENDMENTC
AMENDMENTE
LEASE
CAPITALEQUIPMENT
PROFESSIONALSERVICES
Discounts & Rebates
SLA Performance
Milestones
Delivery
Quality
x
xx
Right Products
CALENDAR
Operations Systems
Mfg. Finance
Procurement / SCM
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 15
Administer and Comply
LEASE
CAPITALEQUIPMENT
PROFESSIONALSERVICES
Operations Systems
Mfg. Finance
Procurement / SCM
TRANSACTION
Compliant?
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 16
LEASE
CAPITALEQUIPMENT
PROFESSIONALSERVICES
Operations Systems
Mfg. Finance
Procurement / SCM
Administer and Comply
TRANSACTION
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 17
Administer and Comply
LEASE
CAPITALEQUIPMENT
PROFESSIONALSERVICES
Operations Systems
Mfg. Finance
Procurement / SCM
ComplianceRules
Engine
ComplianceValidation
Flows
TRANSACTION
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 18
LEASE
CAPITALEQUIPMENT
PROFESSIONALSERVICES
Operations Systems
Mfg. Finance
Procurement / SCM
ComplianceRules
Engine
ComplianceManager
ComplianceValidation
Flows
Discounts & Rebates
SLA Performance
Milestones
Delivery
Quality
x
xx
Right Products
Compliant
Administer and ComplyA Complete, Closed-Loop Process for Supplier Compliance
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 19
Solving Contract Limitations of Spend AnalysisAnalyze and Improve
Operational Efficiencies Contract Analysis
Contract Audit& Research
Workload Planning
CALENDAR
BUSINESSCONDITIONS
Business TrendAnalysis
BUSINESSCONDITIONS
CALENDAR
+
-
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 20
Agenda
• Challenges in Supplier Management
• Supplier Contract Management Blueprint
• Case Studies
• Building a Business Case
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 21
Managing the Procure-to-Pay Process
Profile: 3,000 Contracts 80 Global Business Users
Objectives: Single view of contract operations across the enterprise Reduce procure-to-pay cycle times Standardize contract language and enforce approval processes
Benefits from Deploying diCarta Contracts: Gained visibility of contract operations across the organization to
monitor procurement spend and manage operational efficiencies Achieved procure-to-pay processes and approval standards Reduced procurement cycle times
Founded in 1873, Kohler is a worldwide leader in plumbing, bath
and kitchen products.
Revenues: $3.0 billion Headquarters: Kohler, Wis.Employees: 25,000 worldwideAdditional Facilities: North America, Europe, and Asia.
Featured in Purchasing Magazine’s CM Issue (July 2004)
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 22
Global Contract Management Excellence
Profile: 40,000 contracts 40 global business units 600 contract administrators
Objectives: Integrate contract management with a single global instance of SAP Gain total global visibility of all supplier agreements Standardize global contract operations in a six sigma environment Drive contract compliance to improve procurement efficiencies Reduce contract process cycle time Measure & reduce overall contract administration time and cost
Benefits from Deploying diCarta Contracts: Drive Procure-to-Pay processes across the enterprise Provide total contract visibility to reduce supplier risk Monitor supplier compliance and improve procurement efficiencies
A Fortune 7 company, ConocoPhillips is the 3rd largest energy company in the United
States and 8th largest worldwide. Operating in more than 40 countries
Revenues: 105.1 billion Assets: $82.5 billion Headquarters: Houston TXEmployees: 39,000 worldwide
Find out more at the NCMA Webinar on June 15th!)
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 23
Streamlining Contracting Processes
Profile: 500,000 contracts per year $50 billion in aggregate healthcare spend 400,000 physicians 3,600 hospitals
Existing Challenges: Significant volume of contract requests from field Reduce cost of manual claims processing
Benefits from Deploying diCarta Contracts: Established and enforced standard contract processes to
streamline contract request and enable further business growth Improved auto-adjudication rates Reallocated 200 FTEs On target to save $61 million over three years
UnitedHealthcare provides individuals with access to cost-
effective healthcare services and resources through more than 400,000 physicians and 3,600 hospitals across the United
States. It manages approximately $50 billion in aggregate
healthcare spending on behalf of more than 170,000 employer-
customers and the consumers it serves.
Revenues: $31.6 billion Stock symbol: UNHMember: Fortune 100Headquarters: Minnetonka, MN Employees: 33,000 worldwide
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 24
Agenda
• Challenges in Supplier Management
• Supplier Contract Management Blueprint
• Case Studies
• Building a Business Case
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 25
Contract LeakageLack of an integrated process is costing companies money
(1) Independent Survey
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 26
Savings OpportunityAcross All Commodities
(1) Independent Survey
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 27
Breakout Session # WC05-147
Mike Kaul, CEO, diCarta, Inc.
There has to be some questions….
April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ
NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 28
Title of Slide
• Bullet point 1– Bullet point 2
• Bullet point 3