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© 2014, GEP. All Rights Reserved.
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NOTE: If the audio quality from your computer is poor,
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© 2014, GEP. All Rights Reserved.
The Future of Procurement Technology: Portable,
Powerful, Pivotal
July 25th, 2014
3 © 2014, GEP. All Rights Reserved.
Santosh Nair
Vice President – Client Services & Innovation
Areas of expertise
• Procurement Transformation, Strategic Planning and Organizational Design,
Business Process Improvement, Operations Cost Reduction, Project and Team
Management
Background
• Santosh has over 15 years of expertise in managing large scale Procurement Transformation engagements for
leading Fortune 500 companies, including advisory and implementation services
• Santosh has led several large scale IT implementation and supply chain transformation programs, and most
recently led the global procurement transformation engagement for one of the world’s largest pharmaceutical
companies
• He has deployed Supply Chain best practices at multiple clients including spend management (enterprise-wide
spend visibility, opportunity assessment and sourcing roadmap), supplier management (supplier performance
tracking and risk management) and market intelligence (commodity price movements and supply)
Education
• Santosh has an MBA from the Wharton School of Business and a Bachelors degree in Engineering
4 © 2014, GEP. All Rights Reserved.
Clark, NJ
Mexico City
São Paulo
London
Prague
Shanghai
Mumbai
Hyderabad Singapore
Sydney
• A global leader in procurement services and software
(Everest, HfS, Gartner MQ Leader, ISG, IDC)
• Complete end-to-end solutions set -- focused on
sourcing & procurement
• More than $50 Billion in spend managed annually
• Extensive category & industry expertise
• Recognized leader in procurement technology –
complete source-to-pay platform, cloud, touch & mobile
native
• More than 150 Fortune 500 & Global 2000 Customers
• Delivery centers in Europe, North America & Asia,
supporting multiple languages
• ISO 9001:2008; SSAE 16, SOC 2 Certified
• NMSDC Certified minority-owned enterprise
Reducing costs and driving savings to the bottom line gets us excited. GEP PEOPLE are
distinguished by their drive to do better, go further and achieve more for clients.
About GEP
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We combine innovative technology and end-to-end services to drive realized
savings to your bottom-line
What We Do
Increased visibility and control
Reduced operating costs
Improved compliance
Superior customer service
Faster time to value
Transaction Management
Procurement Software
End-to-End Services
Category Management
Procurement Strategy
Sourcing
Support Services
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The Changing Technology Landscape
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In the last few years, technology has
drastically altered the business landscape
• More email is read on Mobile than on a desktop email client
• 62 percent of emails are opened on mobile
• Over 1.2 billion people access the web from their mobile devices
• By 2015, global smartphone use will reach 2 billion
• By 2017, 85 percent of the world will have 3G access
Unit Shipments (in millions)
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User activities on Smartphones continue
to expand
Why not
- Approve POs
- Review spend dashboards
- Rate suppliers
- Receive orders
- Collaborate with suppliers
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Industries have been disrupted due to
these technological forces
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Kodak and Instagram
At the height of its power, Kodak employed more than
140,000 people and had a market value of $28 billion
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Instagram was bought by Facebook for $1 billion
Employed only 13 people at that time, but has over 200
million active users
Kodak and Instagram (contd.)
Scale does not work as well as it used to. It stifles innovation, and leads to excessive
corporate atrophy. Companies, no matter what size they are, should behave like a
small company not a bigger one.
So should Procurement !!
12 © 2014, GEP. All Rights Reserved.
Many other industries are being disrupted
in similar ways
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The key forces of disruption are Social,
Mobile, Analytics and Cloud
Social Technologies allow for
the rapid sharing & creation of
knowledge over social networks,
enhances collaboration and
information distribution
Mobile Technologies have created an era of
ubiquitous connectivity. Users are now able to (and
expect to) access information anywhere at anytime
with ease
Cloud Computing can lend Procurement a newfound
agility, breaking down geographic barriers and cutting the
costs associated with physical server maintenance with
limitless scalability
Big Data can allow Procurement to
deconstruct new forms of data, which
generates unprecedented insight
scalable to enable smart boardroom
decision making in real time
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But Procurement seems to be stuck in an
older technological era
Procurement
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Current state of Procurement Technology
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This operating model has several gaps and
is ripe for disruption
• Large ERP solutions continue to charge multi-million
dollar fees with lengthy implementation timelines
• Other niche solutions operate in a modular manner,
with little information flow across the solution
• Companies are repackaging web-native applications
with front-end window dressing that doesn’t unleash
the power of SMAC
• Solutions have not been designed by practitioners and
hence don’t always reflect the users priorities or
usability needs
• Procurement technology has not had a major evolution
for over a decade and is at risk of being disrupted
17 © 2014, GEP. All Rights Reserved.
SMART by GEP aims to be that disruptive force in
Procurement Technology
• Comprehensive spend, sourcing and procurement
functionality in single, unified platform
• Designed around the way procurement professionals
really work, switch fluidly between related tasks
• Cloud, mobile and touch technologies native for flawless
performance anywhere, anytime
• Advanced, A.I.-based analytics and proprietary algorithms
that can easily process the heaviest data through-put our
Fortune 500 and Global 2000 enterprise clients can
muster
• Rich repository of best-practice process and work flows,
checklists, scorecards, templates and tools
• Works with any F&A or back-end ERP system, such as
SAP or Oracle
Sandra L. Surma,
Vice President, Corporate Purchasing
Zions Bancorporation
“SMART by GEP is a truly game changer. And
it's beautiful – the best platform I've ever seen.”
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Leverages platform level benefits with
cloud infrastructure
Complete functionality in one unified app – spend analytics, sourcing, contract and supplier management,
purchasing – for fluid work and process flow. No need to integrate modules or awkward bolt-ons, with all the
delays, glitches and costs
No barriers, no bumps
• Unhindered work, information and process flows
• Pooled data automatically populates process chain
• No integration costs, glitches or delays
• Users can shift between tasks fluidly
Foundation of Microsoft Azure & PaaS
Microsoft Azure is an open, flexible cloud platform that enables business process experts like GEP to quickly
build, deploy and manage applications across a global network of Microsoft-managed datacenters.
• Always Up. Always On.
• Unlimited Servers. Unlimited Storage.
• Single Identity Systems. Single Sign-on.
• Unrivaled Business Continuity, Security & Privacy
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Benefits of Cloud Infrastructure versus
Cloud Applications
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We leverage SMAC to the highest extent
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Spend Sourcing Contract Supplier Purchase
• Data collection &
cleansing
• Industry/Client
specific classification
• Supplier parent-child
matching
• Multi-dimensional
analysis
• Hundreds of standard
reports and ability to
build custom reports
• Opportunity
assessment and
sourcing planning
• Buyer form
customization
• Self registration for
suppliers
• Announcements
and document
sharing
• Administration -
NDA
• Supplier scoring
and ranking
• Supplier
performance
tracking
• Hierarchical view
• Flexible field
configuration
• Contract and
clause library
• Version control
• Notification and
alerts
• Administrative
controls
• Discount and
rebate alerts
• RFx, auctions
• Collaborative
authoring
• Auto-scoring
• Team scoring
• Timeline
management
• “Reverse/Forward”
auction
• Real-time auctions
• Event-level
supplier bid reports
• Hosted & Punch-
out catalogs
• Requisition/PO
creation
• Receiving receipt
• Customizable
approval process
• Advance shipping
notification
• Return material
authorization
• Invoice creation
• 3-way matching
• Search, analysis
and reporting
Spend Analysis &
Strategy
Sourcing &
Negotiations
Contract
Management
Requisition, Order &
Invoice Management
Supplier Performance
Management
A powerful, unified platform that speeds the entire source-to-pay cycle
SMART by GEP Platform Overview
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Smart by GEP makes flipping documents
across functionalities easy
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Gain fast, easy access to all
category-specific information
and tools – market and supplier
research, templates, models,
guidelines, pricing and
performance data, purchase
history, contracts and more – in
a single intuitive work space
Track the real impact of the
procurement team in hard
dollars, from a single initiative
to enterprise-wide programs.
Validate against multi-
dimensional financial
measures. Identify the levers
that produce the greatest
realized saving
Flexible, full power on the
go. SMART by GEP is the
first sourcing and
procurement platform native
to mobile and touch
technology. Work anywhere,
anytime on any device –
laptop, tablet, phone – with
equal ease and impact
Connect with thousands of
global, regional and local
suppliers in a massive, cloud-
based marketplace. Search,
explore and discover new
relationships. Expand your
options and create more
competition for your business
Get wise to compliance issues
before things get out of hand. All
contract terms and conditions
monitored – price and non-price
items. Exposure is made plain in
automatic alerts, so you can take
corrective action quickly and limit
leakage.
Create full audit trails available
in real time. Match requisitions,
purchase orders, invoices and
reconcile to contracts and
budget automatically. Link to
rules to boost compliance and
budget reconciliation
Complete functionality in one
unified app – spend analytics,
sourcing, contract and supplier
management, purchasing – for
fluid work and process flow. No
need to integrate modules or
awkward bolt-ons, with all the
delays, glitches and cost that
entails
Tap a vast repository of
document templates. Render a
new document with three-
clicks or less. Then
automatically create multiple
supporting documents. Go
from RFP to contract to PO
instantly.
Mobility
Snap Docs Unified Platform
GEP Nexus Savings Tracking Category Workbench
Proactive Contract Compliance Five-Way Matching
Additional features that leapfrog
Procurement’s business impact
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Value Drivers of SMART by GEP
• Unified Platform: All functionality is native in unified platform – spend analytics, sourcing, contract
management, supplier management, purchasing – which enables fluid information, process and work flow
• User Experience: Rich user experience that is visually appealing, flexible tool precision-engineered to look,
feel and perform nimbly
• Enhanced Feature set: Advanced, A.I.-based analytics with proprietary algorithms. Drag and drop
functions across the platform with user configurations
• Best-practice tool kits: Pre-built rich repository of best-practice process and work flows, checklists,
scorecards, templates and tools
• Native Integration Capability: Works with any F&A or back-end ERP system, such as SAP or Oracle with
pre-built adaptors and API’s
• Scalability: Infrastructure, maintenance and on-going operational costs are virtually eliminated thereby
allowing to scale exponentially
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Why It Matters
Boost Adoption & Happiness – Intuitive, easy-to-use tools flatten the learning curve, increasing adoption and
sustaining use over the long term, no extensive or expensive re-training
Keep Pace – Leverage mobile, touch and cloud technologies to boost productivity, responsiveness and savings and
position your procurement team better for continued change and rising expectations
Proven Best Practices – Standardize on documented, best- practice processes field-tested across a wide range
of industries, requirements and use cases, which helps your procurement team achieve tangible savings faster
Minimize Training – Because SMART by GEP is designed by procurement professionals for procurement
professionals, little or no training is required, so results and payback begin now
Increase Savings – The comprehensive functionality of the SMART by GEP sourcing and procurement platform
enables the realization of significantly savings, typically 25% to 40% higher
Improve Productivity – Enable your team to work flexibly on any computing device. SMART by GEP is an
efficient, easy-to-use digital workspace that streamlines and automates the entire sourcing and procurement process
Better Economics – Best-of-class software on the cloud, with no additional IT infrastructure, integration, personnel,
support or maintenance costs, delivers unrivalled speed to value
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In conclusion
Organizations need to avoid being shaped by the digital technology, and instead shape their responses to
it proactively. Some recommendations on moving forward:
• Review your eProcurement investment plans and applications portfolio
• Research the potential of existing technology solutions and identify the scope of business needs for the medium
and long-term
• Review & finalize internal policies on Smartphone usage, BYOD, social media, remote working and cloud
computing investments
• Understand what the business needs are for procurement intelligence and develop an integrated approach to
Big Data analytics
• Focus on process first and then on the suitable technology
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Come to the 2nd
Annual
NLPA Conference!