Gain Faster Closure, Lower Risk and Better Results with IBM Emptoris

A Procurement Organization’s Success Story with the Industry’s Leading Source to Contract Solution

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Perficient is a leading information technology consulting firm serving clients throughout

North America.

We help clients implement business-driven technology solutions that integrate business

processes, improve worker productivity, increase customer loyalty and create a more agile

enterprise to better respond to new business opportunities.

About Perficient

• Founded in 1997

• Public, NASDAQ: PRFT

• 2013 revenue ~$373 million

• Major market locations throughout North America• Atlanta, Boston, Charlotte, Chicago, Cincinnati,

Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Los Angeles, Minneapolis, New York City, Northern California, Oxford (UK), Philadelphia, Southern California, St. Louis, Toronto and Washington, D.C.

• Global delivery centers in China, Europe and India

• >2,200 colleagues

• Dedicated solution practices

• ~85% repeat business rate

• Alliance partnerships with major technology vendors

• Multiple vendor/industry technology and growth awards

Perficient Profile

BUSINESS SOLUTIONSBusiness IntelligenceBusiness Process ManagementCustomer Experience and CRMEnterprise Performance ManagementEnterprise Resource PlanningExperience Design (XD)Management Consulting

TECHNOLOGY SOLUTIONSBusiness Integration/SOACloud ServicesCommerceContent ManagementCustom Application DevelopmentEducationInformation ManagementMobile PlatformsPlatform IntegrationPortal & Social

Our Solutions Expertise

Sarah Radka, Sr. Business Consultant, Perficient

Agenda

• About the company (beverage alcohol)

• The business problem• Policies/regulations • Emptoris acquisition process• Choosing Emptoris• Current Emptoris footprint• Benefits of using Emptoris/future

plan• Source-to-contract solution

implementation services and capabilities

• Future plan • Lessons learned• Q/A

About the Company

The client is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, New Zealand and Italy.

It is a significant player in the beverage alcohol industry with more than 100 brands in its portfolio, sales in approximately 100 countries, about 40 facilities and over 6,000 talented employees.

The are also:– #1 premium wine producer in the world– #1 multi-category beverage alcohol company in the U.S.– #3 beer company in the U.S.– #1 wine company in Canada– #1 producer of New Zealand wine

Compliance Management

The Business Problem

Purchasing SLM

Purchasing  Legal Spend SLM  • Lack of uniform and

automated purchasing practices

• No governance structure in place to sustain sourcing or to strategically source goods.

• RFX have little to no process/procedures

• Many disparate global purchasing departments

• No visibility to overall spend in various critical direct material and indirect material categories (eg –labels, temporary labor)

• Lack of common processes, approved legal templates, and clearinghouse for contract management

• Inability to track agreed upon business terms

• Manual tracking of terms and expiration dates for both the buy/sell side

• Inability to systematically track performance of supplier

• Little to no defined corporate wide, standard metrics in place with little to no governance

Overarching Issue: Lack of overall processes and procedures; disparate systems

Policies/Regulations

SBOX - Section 404 of The Sarbanes-Oxley Act of 2002 (SOX) requires public companies and their independent auditors to report upon and verify the effectiveness of the companies' internal control over financial reporting in their annual reports filed with the Securities and Exchange Commission (SEC)

Excise taxes, federal taxes regulations vary by product

Differing tax brackets as it relates to the amount of alcohol in products

State taxes and import/export laws differ state by state

Various products can’t be sold in certain states contingent on alcohol percentage

Big box vs. convenience store vs. package store

Age restrictions as it relates to consumption (over 21 only). Age relations as it relates to marketing (participants can’t be under 24). Alcohol can never be marketed at ‘fun’ or ‘healthy.’

9

Emptoris Acquisition Process

Evaluation initiated by supply chain management• Company sent

out detailed request for proposal

• Conducted an extensive four month selection process

Selection criteria involved team score carding potential vendors on the following:• Ease of system

use• Price• Meeting

business requirements

Original implementation

approach centralized

through procurement/ legal/finance

Team included supply chain,

legal, procurement,

finance, information

technology, and change

management

Over 200 stakeholders involved in decision making process

Why They Chose IBM Emptoris

IBM Emptoris provided a best in class solution

IBM Emptoris offered the solution that solved the client’s business needs and requirements

IBM Emptoris offered integration touch points that solved previous determined business requirements

Current IBM Emptoris Footprint

Spend Analyzer

• StandardNamed Users: 20 per module• Procurement • Senior

management • Wine makers

• Limited Named Users: 450 Users

Contracts Management

• Standard Named Users: 20 per module• Procurement• Legal• Finance• Compliance• Risk

management

• Limited Named Users: 450 Users

Sourcing

• Standard Named Users: 20 per module• Procurement• Finance

• Limited Named Users: 450 Users

Supplier Lifecycle Management

• Standard Named Users: 20 per module• Procurement • Finance • Operations

• Limited Named Users: 450 Users

Benefits of IBM Emptoris

• Spend has been made visible for all of the operating companies to view by Category Fiscal year Facility Company

• Upon uncovering true spend number, a number of strategic sourcing opportunities arose

• All legacy contracts have been loaded• Standard and approved contract templates are available for

use• A number of category teams have already successfully used

Emptoris for their sourcing needs• Prescribes strategic sourcing guidelines that will help to

maximize and sustain benefits from sourcing and procurement efforts to create a competitive advantage

• Standard SPM have been formalized and utilized to track key supplier metrics

Best In Class Procurements Tools

• Defined policies and control processes to align sourcing behaviors across the business with established best practices to manage savings

• Introduction of the application, Emptoris, which allows the organization to see the total spend for the first time, and expands the ability to analyze spend information. It was customized for the company based on our specific business requirements.

• Spend Analyzer: View spend by category (e.g. glass), specific winery, date, business unit, account, etc.

• eSourcing: Create and manage various RFXs (request for information, request for proposal, request for quotation)

• Contract Management: Store contracts in a central library, version control and keyword search

• Supplier Performance: Track a supplier's overall performance through scorecards utilizing key performance indicators

Future Plan

The continued build of a 

supplier portal

Where does this client potentially see taking Emptoris?

Lessons Learned

Providing an understanding of who the client is and what they wish to accomplish is key.

Be sure to repeat the objectives over again to ensure all parties are aware of what needs to be done. Then, follow up with an e-mail and a phone call. Probe your audience for questions.

Different parties understand information differently. Find the medium that works best for all parties.

From a technical perspective, integration points are constantly changing. Keep the group well versed on the implications of these changes and try to pre determine any ramifications they could have on the client.

You can never over communicate. Cultures matter. Change management.

Strategy Technology Business

Objectives

Vision

Solution Strategy

Implementation Strategy

Technology Strategy

ROI Analysis

ECM

ERP

CRM

E-Procurement

EAI

Data Warehouse

Legacy System

People

Process

TrainingKnowledge Transfer

Roles Design & Definition

Communications

Evaluations

InternalCollaboration

ExternalCollaborationClassification

Development,Reporting &

Analysis, KPIs

Qualifications

Risk Assessment

TrainingKnowledge Transfer

Roles Design & Definition

Communications

People

Source-to-Contract Solution Implementation

Strategy, People, Process, Technology

Sample Clients ECLM/SSLM Services Perficient’s Value Proposition

Current State Operations Assessment & “Blueprinting’

ROI Business Case Development and Implementation Planning

Contract Inventorying and Template Rationalization

Requirements Definition and Software Selection

ECLM/SSLM Systems Design & Implementation Project Management Configuration/Customization Integration Data Migration Testing Training & Change Management

• Dedicated practice with approx. dozen practitioners and experience with a vast number of customers and industries.

• Understand “nuances” of the IBM Emptoris solution minimizing “surprises”/risks

• Relationships with IBM Emptoris senior mgmt., with influence on product roadmap strategy

• Library of solution accelerators for planning and implementation (e.g., future state blueprints, requirements, software selection, roadmaps)

• Only IBM Emptoris partner with certified experience in Emptoris installations, both functional and technical (customized solutions) implementations, upgrades/migrations, etc.

• A single partner to build a program (strategy –requirements – design – implementation – support)

Sample Case Studies/Whitepapers• Best Practices for Authoring a Contract through an Enterprise Contract Management System• Supplier Lifecycle Management – Supplier 360• Creating the Business Case for Sourcing and its Impact on Contract Management

Our Enterprise Contract & Strategic Supplier Lifecycle (SSLM) Management Practice

Enterprise Contract and Strategic Supplier Lifecycle Management Services and Capabilities

• Current State Assessment

• Future State Modeling and Design, Roadmap Development

• Vendor Analysis and Selection

• Implementation Planning

• ROI and Business

• Change Management

• Training

• Requirements and Design

• Workflow Development

• Template Rationalization

• Program and Project Management

• Supplier Classification

• Supplier Qualification • Supplier

Development• Supplier Registration• Score Carding

• Configuration and Customization

• Testing• Data Extraction

and Migration• Interface

Development• Report

Development• Upgrades• Installation• Wizard

Development

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We will get to as many as possible.

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For more information contact:Katie.Hull@Perficient.com