Emptoris – Supply and Contract Management - IBM · Leading provider of strategic supply...

© 2012 IBM Corporation

Emptoris – Supply and Contract Management

13. Nov 2012

Gerald IsmaierEmptoris Sales Manager CER/CEE


The past year…

Economy80% of CEOs are concerned

about uncertain economic growth

Volatility56% of CEOs said their operations were impacted by Euro-zone debt crisis

Risk29% of CEOs

cited an impact from Japan's

earthquake and tsunami

Emerging Markets50% 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


Our mission and our commitment to you

Delivering strategic supply and contract management solutions that

enable your company to maximize financial performance and optimize commercial risk


Leading provider of strategic supply management solutions –

spend analysis, supplier lifecycle management, sourcing, and contract management, TEM, services procurement

Emptoris History

- Founded in 1999; first product release in 2000

- Products used in 400+ customers, in 75+ countries

- IT-friendly platform available SaaS or BTF

- 10 years experience implementing large, complex, global solutions

- Acquired 7 companies including: Xcitec (5/11), Rivermine (1/11), Click Commerce (1/09), Mindflow Technologies (7/06), diCarta (4/06), Intigma (6/05), Zeborg (9/03)


HealthcareConsumer Goods/RetailOil and Gas, Chemicals

CommunicationMedia &

Entertainment

FinancialServices

Life Sciences / Pharmaceutical

High Tech / Manufacturing

Driving Value with Industry Leaders

Aerospace & Defense

Transportation & Distribution

Government/ Public Sector

Insurance


Consistently Recognized as a Leaderby Independent Research Firms

Market Leader

Leaders Quadrant

GartnerTelecom Expense

Management Magic Quadrant

2010

The ForresterWaveTM: Services

Procurement Q3 2010

Leaders Quadrant

GartnerStrategic Sourcing

Magic Quadrant2010

Market Leader

Market Leader

The ForresterWaveTM:

eSourcing Q1 2009

The ForresterWaveTM: Contract

Life-Cycle Management

Q2 2011

Leading Analyst Recognition


Sourcing, controlling, and procurement of

goods and services

Targeted and personalized

marketing across all customer interactions

Selling and fulfillment of products and services across all channels

Servicing customer needs

across all interaction

channels

MarketBuy

Service SellCustomer

Insight

Strategy

Engagement

Sourcing, controlling and

procurement of goods and services

Targeted and personalized marketing across all customer interactions


Servicing customer needs across all

interaction channels

MarketBuy


Sourcing, controlling and

procurement of goods and services

Targeted and personalized marketing across all customer interactions


Servicing customer needs across all

interaction channels

MarketBuy


Sustain Savings

Manage Risk

Optimize Compliance

Capital Efficiency

Improve Productivity

Smarter Commerce Lifecycle

Strategic Supply Management enhances Smarter Commerce Buy Solutions

© 2012 IBM Corporation© 2012 IBM Corporation

Our Solution – Emptoris Suite V9

§ Spend Analysis§Gain deep visibility of spend across systems and across the enterprise

§ Sourcing§Leverage the industry’s most robust and advanced sourcing solution

§ Contract Management§Establish a centralized contract repository, proactively drive compliance and create stronger contracts

§ Supplier Lifecycle Management§On-bosrd the right suppliers, manage performance and optimize the supply base, mitigate risk

§ Services Procurement§Compliance and control for growing contingent labor and services spend

§ Telecom Expense Management§Reduce telecom expenses and improve device management for mobile and global team


How are they doing?Who should you buy from?

Emptoris Virtual Supply Master Technology

Emptoris Program Management

Emptoris Portal and Suite Reporting

External Market Forces

What should you buy?+ +

Your Enterprise SpendAnalysis SupplierOn-Boarding Supplier Classification Risk Management SourcingEnterpriseContractManagement

CategorySpend Management

Supplier Performance & Development

SpendAnalysis




EnterpriseContractManagement

SourcingRisk ManagementSupplier Classification

SupplierOn-Boarding

SpendAnalysis

Spend Analysis

SpendAnalysis

Emptoris Spend Analysis Customers

§ Leverage Superior Data Enrichment– Ensure accuracy through best in class algorithms– Leverage a knowledgebase that has enriched $85T and

25B transactions

§ Identify Opportunities Within Categories– Track maverick spend across categories and savings

opportunities

§ Create and Prioritize Sourcing Pipeline– Source and rationalize entire supply base

via advanced analytics


Supplier On-Boarding / Supplier Qualification

§ Maintain One “Portal” For All Suppliers– Register/on-board suppliers – Questionnaire-based supplier assessment

§ Ensure Low Maintenance Costs– New suppliers update own questionnaire

§ Enforce Compliance with Corporate Standards– Collect and maintain certificates

§ Find the Right Suppliers for Sourcing

§ Conduct Detailed Purchasing Market Analyses– Benchmark new suppliers against market standards

Emptoris Supplier On-Boarding Customers

General infor mation (finished)

Personal infor mation (executing)

Main contact (todo )

Save & next SuspendBack

Second c ontact (todo)

Financial infor mation

Environment infor maiton

In this chapter we request you to state your personal information. Based on this information a user account in the application will be created for you. You will receive your user name and password via e-mail.

Position

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Download Roadmap 2010 (1,2 MB)

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Download Roadmap 2010 (1,2 MB)

First name Last name

show 50 | 100 | 200 | all

OrganizationContactsRegistration date

First access at

Personal data

Last name

Membership due date

First name

Salutation Mr.

Certification assessment 5 of 26 prev. next

Cockpit la youtCockpit Cockpit la yout

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Assessment pr ocess chart

Initia te assessment

ReleasedFinis hedSchedule In progress

Start assessment

Release assessment

Manage assessment

AbortedIn initia tion

Answer internal

Answer external

Go to

Financial information

Second contact

Main contact

Personal information

Environment information

General information

B uswell

Telephone

Fax

E-Mail

SpendAnalysis

SpendAnalysis





SupplierOn-Boarding


Supplier Classification

§ Identify High Impact Suppliers– Categorize/segment suppliers based on profile

§ Provide Cross-organizational Transparency to Supplier Importance

– View and assign classification by organization and category

§ Direct Resources to Strategic Relationships– Segment suppliers according to strategic importance– Designation Preferred Supplier relationships

§ Define Standard Strategies to Manage Suppliers– Associate programs with supplier classification

Emptoris Supplier Classification Customers

Cockpit Cockpit layout

The following tasks are currently open for the workflow of this evaluation

Task Evaluate

Status started

Remind Reassign Abort

Due date 15.12.08

Current tasks (2)

70 %

Executed tasks (3 | 2)

Executed tasks

The following tasks were conducted for this evaluation

Send notifications

The following notifications were send for this measure

Task

Initiate evaluationCoordinate

Hans Huber (I80)Peter Suiter (I81)

Responsible

07.11.0827.11.08

Due date

18.11.08 15:1025.11.08 13:20

Finished on

donecanceled

Status

Evaluate Maria Weiss (I81) 28.11.08 26.11.08 12:05 done

Mail typeEvaluation reminderEvaluation reminder

Irene Mol (I702)Leon Hamm (I702)

Recipient16.12.2009 16:5016.12.2009 16:53

Send on

show50 | 100 | 200 | all

show50 | 100 | 200 | all

Responsible Leon Hamm (I702)

Task Evaluate

Status started

Remind Reassign Abort

Due date 15.12.0815 %

Responsible Irene Mol (I702)

Quarterly Steel Evaluation 5 of 26 prev. next

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Performance evaluation

Quarterly Steel Evaluation T204 Q2

Supplier: 378474747, Buswell AGCategories: A01 Steel cables, A02 Steel wiresOrganizations: O104, Tech Dept. Time frame: 01.04.2010 - 30.06.2010

84,24 %Good

Manage process

Manage evaluation

Start evaluation

Coordinate

Evaluate

Release evaluation

Abort evaluation

Reset contributions

Evaluation process chart

Initiate evaluation

ReleasedFinishedSchedule In progress

Start evaluation

Release evaluation

Manage evaluation

AbortedIn initiation

Evaluate

Coordinate

Performance evaluation series

M ar 09A pr 09

M ay 0912% 17%

26% 36%60%

July 09June 09

64 % 64%72% 80%

90% 91% 92%

Quarterly Steel Evaluation T204 Q267,34 %AverageSupplier: 378474747, Buswell AGCategories: A01 Steel cables, A02 Steel wires

Organizations: O104, Tech Dept.

SpendAnalysis

SpendAnalysis




SourcingRisk ManagementSupplierOn-Boarding



Risk Management

§ Identify Risks Earlier– Defines risk indicators for suppliers, material groups and

regions – Secure process for identifying, evaluating and controlling

risks

§ Analyze Risks in Real-Time– Active purchasing risk formulation– Defines measures for risk avoidance, reduction or

acceptance

§ Mitigate Risks via Advanced Decision Support– KPI’s are integrated as an early warning system (economic

information, UN indices)– “Traffic light system” graphic analyses

Emptoris Risk Management Customers

SpendAnalysis

SpendAnalysis




SourcingSupplier Classification

SupplierOn-Boarding

Risk Management


Sourcing

§ Flexible/Scalable Sourcing Events– Manage the entire sourcing process for either a single

RFx or a complex multi-stage negotiation

§ Self-Service Scenario Analytics– Create constraints to meet your unique sourcing

requirements and business preferences

§ Supplier Decision Support– Provide feedback allowing suppliers to optimize their

bids

§ Sourcing Desktop Intelligence– Access sophisticated capabilities in Microsoft Excel to

perform a number of analytical tasks

§ Flexible Awarding– Gain control with award flexibility, award incrementally

or re-run scenarios at a later date

SpendAnalysis

SpendAnalysis




Risk Management


SupplierOn-Boarding Sourcing

Emptoris Sourcing Customers


Enterprise Contract Management

Emptoris Contract Management Customers

§ Support All Industry Contract Types– Manage “buy” and “sell” side contracts from a single

instance

§ Increase Contract Efficiencies– Streamline authoring with wizards and templates– Increase productivity via mass operations and bulk

loading capabilities

§ Enable Risk Mitigation and Contract Compliance– Enforce use of preferred languages and terms via

approvals– Proactively manage key milestones via alerts– Enforce compliance (e.g. spend) against contract

SpendAnalysis

SpendAnalysis




SupplierOn-Boarding



Category Spend Management

SpendAnalysis

SpendAnalysis




SupplierOn-Boarding


Emptoris Category Spend Management Customers

§ Dramatically Reduce Telecom/Services Spend– Manage the complete procurement lifecycle (order to

payment) for Telecom/Mobile and Advanced Services spend

§ Minimize Costs of Invoicing Errors– Validate invoices, track bill disputes, perform audit checks

§ Increase Compliance to Contracted Terms– Ensure early payment discounts, increased use of

preferred suppliers, etc.



Emptoris Supplier Performance & Development Customers

134, Logistic development 5 of 26 prev. next

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Cockpit layoutCockpit Cockpit layout

Performance evaluation

TitleQuarterly Steel evaluationQuarterly Service evaluation

Performance evaluations considered in this project

OrganizationO102, Tech Dept.O103, Service Dept.

1 PurchasingSelected evaluations[ open all | open structure | collapse all ]

1.1 Prices

85,00%

90,00%

1.2 Contracts 90,00%

1.2.1 Behaviour in contract negotiations 91,00%

1.1.1 Price compared to market 90,00%

1.1.3 Behaviour in contract negotiations n/a

1.1.2 Price development 80,00%

25%

15%

10%

5%

7,5%

0%

7,5%

1.2.2 Quotation transparency and quality 89,00%5%

Target

90,00%

95,00%

80,00%

Performance evaluation target

CategoriesA01, Steel productsB02, Electronic goods

Result90,00%80,00%

show 50 | 100 | 200 | all

Valid from01.03.201001.01.2010

Statusfinishedfinished

Valid until10.03.201001.03.2010

Savings calculation

Potential calculation for this project

Position

Purchasing savingsPersonal costsMaterial costs

Ist

77.200,00

13.200,00

V-Ist

7.500,0013,560,00

Budget

13.005,0024.000,00

Netto 44.000,0020.450,0018.070,00

KPIs (4)

KPIs defined for this project

KPI title% of repeat business turnover

Deviation of planned budget

DescriptionThe value of repeat business expressed as a percentage

The deviation of the planned budget (cost) is the differe

Last edited10.03.2010

14.04.2010

show 50 | 100 | 200 | all

Target80%

12.000

Current83%

17.000

% of invoices disputedRevenue per employee (or FTE)

Percentage of invoices disputed.Average revenue per employee (or FTE)

12.03.201013.04.2010

5%45.000

12%27.500

Project thumbnail

134, Logistic Development

Project responsible : Max Muster (T104)Planned end: 31.01.2010Project status: started (in time)

Total number of measures: 15Number of open measures: 5

01.01.2015 31.06.2015

35 days left

Project KPI progress

134, Logistic development

KPI Risiko

Process status overview

Total: 204 projects

In initiationIn progress

stoppedaborted

finished

10250%

2415%

5624%

7437%

6128%

§ Identify Strong & Weak Performing Suppliers– Supplier ratings leveraging objective and subjective

information

§ Obtain Complete View of a Supplier’s Performance Cross Organization & Category

– Execute category specific evaluations and analyze

§ Grow your Qualified Supplier Base– Cooperate with potential suppliers to achieve minimum

qualification criteria

§ Remediate Suppliers that Pose a Risk to your Supply Chain

– Define programs, with goals and track progress

SpendAnalysis

SpendAnalysis




SupplierOn-Boarding



Suite Reporting

Suite Reporting

SpendAnalysis





SupplierOn-Boarding

SpendAnalysis

§ Access Valuable Procurement Intelligence– Gain a better understanding of performance

and opportunities through powerful, flexible reporting

§ Solution Specific Reporting– Contract Management– Services Procurement– Sourcing

§ Complete 360 Degree View– Provides complete supplier, spend and contract

data in a single view– Flexible and configurable

§ Where You Need It– Accessible via an easy-to-use Web or iPad

interface


Program Management

Program Management

SpendAnalysis





SupplierOn-Boarding

SpendAnalysis

§ Improve Management Control and Accountability

– Provides a framework through which all procurement programs can be managed, including budget and savings programs

§ Improve Productivity and Increase Organization Capacity

– Improves global coordination of procurement activities and the allocation of resources

– Provides a central, configurable workspace that simplifies communication, with tools that automate standard tasks and provide alerts for exceptions

§ Ensure Compliance– Guides users to follow pre-defined processes

and data collection guidelines compliant with corporate rules


Emptoris Virtual Supplier Master

Virtual Supplier Master (VSM)

SpendAnalysis





SupplierOn-Boarding

SpendAnalysis

§ Rationalize Disparate Supplier Data– Process supplier data inputs from multiple

sources to build a dynamic configurable master supplier record

– Configurable data fields allow VSM to manage critical non-ERP data such as performance and risk, diversity status, CSR records, etc

– Allocates suppliers a unique global ID that can be used throughout the Emptoris Suite

§ Discover New Suppliers– Search externally for new suppliers utilizing

external data services– Create supplier records from the data found

§ Category Data Management – Maintain a master category reference tree that

allocates all categories a unique global category ID that can be used throughout the Emptoris suite


Emptoris Suite V9: Sustainable Benefits

Drive sustainable savings§ Manage all spend categories and identify savings opportunities across global

operations§ Actively enforce contract compliance to maximize revenue§ Maximize service and value from supply base

Ensure compliance and mitigate risk§ Centralize visibility, transparency and control across sourcing and contracting

processes§ Avoid supply disruptions and maintain brand image by closely managing and

monitoring your suppliers

Improve productivity§ Streamline and automate business processes to increase efficiency and

reduce workload§ Provide actionable intelligence, not just data, to enable optimal performance

and decision making

© 2012 IBM Corporation© 2012 IBM Corporation

Thank you!

Emptoris – �Supply and Contract ManagementThe past year……has shaped the corporate agendaOur mission and our commitment to youPage 5Driving Value with Industry LeadersConsistently Recognized as a Leader�by Independent Research FirmsPage 8Our Solution – Emptoris Suite V9Page 10Spend AnalysisSupplier On-Boarding / Supplier QualificationSupplier ClassificationRisk ManagementSourcingEnterprise Contract ManagementCategory Spend ManagementSupplier Performance & DevelopmentSuite ReportingProgram ManagementVirtual Supplier Master (VSM)Emptoris Suite V9: �Sustainable BenefitsPage 23

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