strategic alignment of finance and procurement€¦ · implementation of p2p •executive...
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November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
Strategic Alignment of Finance and Procurement
Steve Iannarone
Sr. Manager Global Shared Services
Arthur J Gallagher & Co
Overview
As AP becomes Procure-to-Pay, it is essential for Finance and Procurement to collaborate, communicate and work closely together to remain aligned. In this session, we will discuss process challenges and changes that Finance and Procurement realize as they transition to P2P. Discover how to unlock the value of an aligned operational process for spend control, compliance, supplier relations and profitability. And learn the intricacies of how to implement Procure-to-Pay, the maturation process involving technology required to manage spend and pave the way for the combined team, how to foster successful relationships with Procurement, and how to identify/overcome pitfalls that may arise along with way.
Mise en place
Ingredients
• Vendor Master Data – Buy from, Ship to & Pay to
• Direct Spend – Quality Data
– Material Contracts
• Indirect Spend – Procurement Card
– Preferred Vendors
– Catalogs
– Service Contracts
P2P Value
• Procurement
– Control of spend
– Compliance to contracts
– Increased catalog usage
• AP
– Remove Paper
– Eliminate Exceptions
– Reduce payment cost and risk
• Treasury
– Increase cash flow visibility and control
– Working Capital
– Cash Discounts
• IT
– Deep integration
– Cloud benefits
– Low Total Cost of Ownership
Implementation of P2P
• Executive Sponsorship
• Process Change
– Exception Transformation
• Over customization
• Business Subject Matter Experts
• Reporting
– KPI’s which are actionable and assigned responsibility
Phases of P2P Approach
• Foundation
• Process Improvement
• Spend Visibility & Control
• Continuous Improvement
Pitfalls
• Standard Approvals
• Paper Invoices
• Line Item Data
• Receiving Issues
• Vendor Scorecards
• System Integration
• Silos
• Decentralization
Terminology of P2P
• Supplier Network
• PO Flip
• Contingent Labor
• Contract Management
• Supplier Portal
• Payment Card
• Auction
• Reverse Auction
• Cart
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
Questions
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas