Post on 20-Aug-2015
Patrick D. Quirk CEO, Emptoris
Inspiring Success in the Era of “Smart” IBM Emptoris
Strategic Supply Management
The past year… Economy
80% of CEOs are concerned
about uncertain economic
growth
Volatility 56% of CEOs said their operations were impacted by Euro-zone debt crisis
Risk 29% of CEOs
cited an impact from Japan's
earthquake and tsunami
Emerging Markets 50% of CEOs believe emerging economies are more important to their company’s future than developed markets
…has shaped the corporate agenda
Global growth and sustainable savings
Manage risk and compliance
Identify volatility and maximize predictability
Drive innovation
Meeting the Business Needs of Chief Procurement Officers
Chief Procurement Officers are challenged to: – Drive global growth and
sustainable savings – Manage risk and compliance – Identify volatility and maximize predictability – Maximize sourcing and fulfillment flexibility
Buy Adaptive
procurement and optimized
supply chain Procurement transformation requires a combination of best practices and
the right technology
What if you could deliver greater value?
99% of spend visibility achieved for customers on
average
99% 90% 11% 35%
90% of contracts under
management and compliance
11% average savings on total sourced spend
35% savings possible on
telecom expenses
$30B
$30 Billion in savings
documented in a survey
of our customers
Ability to: Analyze $1 Trillion
of spend
Ability to: Manage more
than 2.5M contracts
Ability to: Conduct more
than 25,000 eSourcing events
annually
Ability to: Seamlessly
manage $1.2B in telecom expenses
Ability to: Sustain savings
Era of “Smart” Forrester is beginning to characterize many of the
SVM-centric offerings as “smart process apps” due to the deep process, collaboration, analytics, and integration built into these solutions
By connecting the sourcing-life-cycle processes that are already taking place with these smart process apps, SVMOs can bootstrap themselves out of a transactional-effectiveness mode and into a strategic value driver role for the business
Source: The Forrester Wave™: SVM Tool Set, February 25, 2013
New value to inspire customer success People • 500 consultants
worldwide supported by 3,000 supply chain professionals
• Recognized by Gartner as BPO leader
Processes • Market leader in
Procurement Services
• Over $57B in managed spend
• Sourcing Councils supported by analytics
Technology
Our mission and our commitment to customer success
Delivering strategic supply and contract management solutions that enable our customers to maximize
financial performance and optimize commercial risk.
Challenge
Solution
Results
IBM success story
Transform the IBM procurement organization to become an essential corporate function. Standardize procurement best practices globally in an effort to reduce costs, generate revenue, increase customer satisfaction and drive supplier innovation and collaboration.
IBM Emptoris Strategic Supply Management IBM Cognos Procurement Analytics IBM ILOG Optimization
Realized savings of $7b savings in the last year Common global process and platform Comprehensive strategic sourcing agenda Spend compliance greater than 95% Integrated and automated approach to Business Unit Requirements, RFX,
Contracting, and transaction execution
IBM spends approximately $36.5 billion annually through its supply chain, procuring materials and services globally. The supply, manufacturing and logistics and customer
fulfillment operations are integrated in one operating unit that has optimized inventories
over time.
Customer Profile
“IBM’s platform utilizing Emptoris, Cognos, ILOG offers fast time to value by enabling predictive analytics. Organizations who
leverage this new technology will be the leaders in the next wave of procurement”
– John Paterson, CPO, IBM
Coming in May! IBM’s Institute for Business Value (IBV) will deliver its first ever…
http://www.ibm.com/services/c-suite/series-download.html
Global Chief Procurement
Officer Study
Contributor Demographics
19%
2%
79%
32%
8%8%
19%
33%
Survey Respondent Headquarters Region
Approximate Annual Revenue
1128 large, geographically diverse companies completed CPO survey, and one-on-one conversations with senior procurement leaders gave context to findings
12% of respondents hold the title ‘Chief Procurement Officer’, and 88% report directly to the CPO
Geographic representation from 22 countries and all industry sectors
One-on-one interviews conducted between December 2012 and February 2013 by IBM procurement specialists
Topics covered included procurement management metrics, procurement technologies, human resource challenges, best practices, and emerging procurement trends
12
$1bn to $10bn
$10bn to $100bn
Over $100bn
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
Strategic Supply Management addressing client needs
Maximize and lock in savings with advanced sourcing and enterprise contract management capabilities
Analyze enterprise spend across systems and effectively source and manage complex categories
Effectively manage supplier information, relationships and processes to ensure compliance and mitigate risk
Enterprise and Category Spend Management Source to Contract Supplier Management,
Risk and Compliance
It’s all about ROI An Army of Solution Sellers: +200 people
utilizing the ROI model and business case template world wide.
A lot of value being found:
• Customer Loyalty has completed over 350 studies in 2.5 years.
• +30% of the Pro-forma (L1) studies move to L2 studies with heavy customer engagement
Accuracy, accuracy, accuracy: L1's are typically within 75% of the achievable value. Working with the customer to adjust moves accuracy to >90% of achievable value.
Recent examples of top brands utilizing the process: 3M Company AON Apple AT&T Cathay Pacific Airways Citigroup Florida Blue Frontier Communications Altria Group Qantas
Spend Management – Best In Class
Ease of Use Success Requires Adoption
Uncompromised Best in Class in Every Area
True Savings Identified & Realized
What does best of breed combination really mean?
Transaction Engine
Channel Spend Through Preferred Suppliers
Capture Savings & Ensure Compliance
Strategic Sourcing
Identify & Contract With Preferred Suppliers
Negotiate Savings & Favorable Terms
Coupa-Emptoris Solution
Back office “strategic” analysis
and negotiations Powerful analytics, sourcing
and contract processes Negotiate savings from
sourcing and contracting
Front office “procure to pay” offering Captures and controls your spend Realize savings from strategic initiatives
Analyze
Source
Create Contracts
Enforce Compliance
P2P
Coupa-Emptoris Solution POWERFUL PARTNERSHIP
INDUSTRY ACKNOWLEDGED LEADERS
COMPREHENSIVE SOLUTION ANALYTICS Dashboards Advanced reporting What-if analysis
SOURCING RFI, RFQ, RFP, Reverse Auction Bid Optimization Comparison charting
CONTRACTS Buy side – Sell side Approvals Redlining Authoring and negotiation
PROCURE–TO–PAY eProcurement Budgets Approvals Inventory CSN Taxes Freight AP/Invoicing Shopping Compliance T&E Transactional reporting
Analyze
Source
Create Contracts
Enforce Compliance
P2P
Coupa-Emptoris Solution
Out of the box integration Business processes mapped to
your requirements
POWERFUL PARTNERSHIP
INDUSTRY ACKNOWLEDGED LEADERS
COMPREHENSIVE SOLUTION
SEAMLESS, INTEGRATED WORKFLOW Analyze
Source
Create Contracts
Enforce Compliance
P2P
You can’t afford NOT to get a better handle on your data
“The Year of the Supplier: Perspectives on Supplier Management in 2011”, published by Aberdeen, May 2011
“Nearly one third of respondents don’t know the costs related to supplier management disruptions.”
“44% of organizations don’t know or don’t measure supplier failure costs.”
“only 20% of organizations are tracking supplier corporate social responsibility.”
“supplier data residing in multiple systems”
systems “unable to manage the depth of supplier information being demanded”
You can’t afford NOT to have your forecasted savings materialize
“The State of Strategic Sourcing: Building a Context for the Next Decade”, published by Aberdeen, April 2011
Savings leakage
Off-contract spending and poor
contract management
Failure to accurately forecast and
understand business performance
Unexpected supplier price increases
Inconsistent supplier information • Due to multiple procurement and purchasing systems
Single supplier master record • Cross-referenced to source systems eliminates
duplication and confusion
No single supplier view • Due to unlinked data spread across multiple systems
Single supplier view • Provides information on performance, risk status,
spend, bids and contracts
Challenges Capabilities
Supplier data inaccuracy • Due to lack of data checking and cross-referencing
Supplier data governance • Ensures that supplier data is consistent and correct
Limited procurement insights • Due to data inaccuracies and lack of consistent
structure
Analytics • Across all procurement applications provides deep
procurement insights
Limited scope of suppl. programs • Due to manual processes for managing supplier
information
Process Automation • Improving productivity and increasing the number of
suppliers under management
Start buying smarter
Solutions to help you buy smarter
Emptoris Integration Services
Virtual Supply Master Technology Suppliers
Categories Events Users Organizations
Regions Bids
Program Management
Supplier Lifecycle
Management
Suite Reporting / e360
Spend Analysis
Sourcing Contract Management
Telecom Expense
Management
Services Procurement
Suppliers Users
Suppliers Users
Consistently recognized as a Leader by independent research firms
Market Leader
Leaders Quadrant
Gartner Telecom Expense
Management Magic Quadrant
2012
The Forrester WaveTM: Services
Procurement Q3 2010
Leaders Quadrant
Gartner Strategic Sourcing
Magic Quadrant 2010
Market Leader
Market Leader
The Forrester WaveTM:
Sourcing and Vendor
Management Q1 2013
The Forrester WaveTM: Contract
Life-Cycle Management Q2
2011
Leading Analyst Recognition