How to Sell The PeopleSoft Source to Settle Solution Show Me the Money!


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How to Sell The PeopleSoft Source to Settle Solution


Show Me the Money!

  • Strong Value Proposition in a Slow or Recovering Economy

  • Modules are a strong entry with lots of add-on opportunity

  • Shorter Sales Cycles

  • Compelling and Proven Customer ROI



Some 2003 SRM Goodness

  • After completing its first anniversary of its merger with Compaq, who looked for more ways to reduce costs?

  • As part of their relentless pursuit of customer service, which electronics retailer sought to automate their source-to-settle process?

  • Which building materials company looked to us to help build up their supply chain efficiencies?

  • Which commuter rail line sought our help to keep their trains running and on time?

  • Which major appliance and cleaning equipment company asked us to help tidy up their spend?



PeopleSoft Showed Me the Money

  • “PeopleSoft allows us to evaluate and target suppliers that have high-volume transactions with Sprint, then negotiate a more

  • strategic deal to reduce our costs.”

  • - Andrew Spidle Sprint

  • “PeopleSoft will help us prove to our tax payers that we’re spending their money effectively and efficiently.”

  • - Jeff Weiler, CFO Gwinnett County Schools

  • “We recently rolled out our PeopleSoft solution to several off-site clinic locations. The savings we have realized from just that limited group of locations has already offset our entire investment in the solution — handheld devices and software included. “

  • Head of Materials Management Information Systems Dartmouth-Hitchcock Medical Center



PeopleSoft SRM Garners Industry Awards



Topics for How to Sell SRM Session

  • SRM Introduction

  • SRM Solution Overview

  • Case Studies

  • Selling Strategies & Tactics

  • Competitors

  • Summary

  • Q & A



  • SRM Introduction



Corporate Imperatives



Manual, labor intensive processes

  • Manual, labor intensive processes

  • “Silo” supply solutions and processes

    • Lack of visibility and control over all
    • categories of spend
    • No single integrated insight into activity, performance, or spend
  • Inability to leverage spend and supply base for volume discounts

  • Lack of cost effective sourcing and security of supply

  • Inefficient communication with suppliers resulting in lengthy processes, high error rates and costly transactions

  • Limited access to current supplier performance data to make well-informed decisions



Spending Growth Increases the Importance of SRM



The Truth About Where $$ Is Spent



Improve Revenue - Reduced customer delivery cycle times for goods & services, improved quality, increased margins/ competitiveness

  • Improve Revenue - Reduced customer delivery cycle times for goods & services, improved quality, increased margins/ competitiveness

  • Reduce Cost - Eliminate non-value added layers and processes, leverage spend for volume discounts, streamline payment processes

  • Improve Efficiency - Reduce administrative time, standardize processes, and compress goods and services sourcing and procurement cycles

  • Increase Visibility - Track and utilize resources, monitor supplier effectiveness, and leverage historical information

  • Ensure Production – Optimize sourcing and procurement of critical material, meet customer needs, respond to market changes and prevent stock-outs



Duke Energy

  • Duke’s Challenges

  • Decentralized procurement systems and processes across divisions

  • Separate inventory systems across business units

  • No integrated end-to-end procurement process

  • High MAVERICK SPEND





What Difference Can SRM Make?



  • SRM Solution Overview



Source to Settle Process Flow



Only PeopleSoft SRM Controls 100% of Spend



What is Total Spend Management?

  • PeopleSoft SRM



Source to Settle Solution From PeopleSoft



Challenges with Analysis



Today’s Spend Analysis Challenges



Sprint



Challenges of Sourcing



Why Source Strategically?



Challenges of Sourcing



Improvements Can Be Dramatic and Very Profitable



No Subscription, Transaction, or Supplier Fees

  • No Subscription, Transaction, or Supplier Fees



Adobe Systems: Strategic Sourcing



Challenges of Supplier Enablement



Challenges of Supplier Enablement



Boise: Supplier Enablement



Challenges of Procurement



Challenges of Procurement



Results bring more dramatic benefits…..



Challenges of Procurement



Why Indirect Goods Require a Different Tool

  • Characteristics indirect goods that

  • determine the best procurement tool:

    • Every employee is a “buyer”
    • Approvals are distributed and contingent upon division
    • Catalog for 1,000s of items
      • Homogenized products
    • Large # of suppliers


Aquila: Procurement



Challenges of Procurement



Service Procurement Has A Big Impact On Profits



…And Is Incredibly Difficult to Track And Control



All Services Are Not The Same



Example of Customer Business Process



Commonwealth Bank of Australia: Services Procurement



Challenges of Settlement



Today’s Settlement Challenges



City of Los Angeles: Settlement



  • SRM Case Study



Boise – Background

  • Headquartered in Boise, Idaho

  • Owns more than 2M acres of US timberlands

  • International Distributor of

    • Paper Products
    • Packaging
    • Building Materials
  • Over 24,000 employees

  • Ranks 241 on Fortune 500

  • Corporate MRO Purchases account for over $60M annually

    • Assemblies, scientific equipment, IT assets, etc.


Boise – Company Situation



Boise – The Sales Process



Boise – Why We Won

  • Seamless extension to other applications

    • No middle layers for integration
    • Big lever for going with PeopleSoft
  • Flexibility in methods to connect to suppliers

    • Could prove ability to connect via multiple methods with quickly developed demos
    • Most other competitors told them direct connect was a big mistake
  • Outstanding customer support

    • Responsiveness to help in demoing and implementing new functionality
  • Our commitment to make Boise successful

  • Our financial viability compared to other point solution vendors



Boise – Why They Lost



Boise – Realized Benefits

  • Simplified purchasing system offers employees easy request processing and a 360º view, anytime, anywhere

    • Easy to use with minimal training required
  • Provides an automated purchasing solution that invites access and exposes preferred suppliers

  • Buyers now focused on strategic activities such as analysis, sourcing and supplier negotiations

  • Suppliers get immediate feedback on what works and what does not

  • Tighter relationship between employees and suppliers

  • Transaction cost and time savings dramatically reduced

  • “We would go with PeopleSoft again, no question”



SRM Selling Strategies and Tactics



Who To Target

  • SRM Plays EVERYWHERE

    • Horizontal/Vertical Industries
    • Installed-base/New Deals
  • Targeted Vertical Industries



New Prospects

  • New Prospects – Sweet Spots

    • Targeted Industries
    • No or “Homegrown”/Fragmented SRM solutions
    • Highly competitive market
    • Narrow Margins
    • High Corporate Spend as Percentage of Sales
    • Fragmented Supply Base and Many suppliers per category
    • Working to have Key Strategic Supplier Relationships
  • New Prospects – “It’s Been Done”

    • Oracle or SAP backend (Nextel, BNP Parabas)
    • Not in Targeted Industry
    • Poor or Missing Process Controls or Accountability


The Truth About Where $$ Is Spent







Existing Customers

  • Existing Customers– Sweet Spots

    • Targeted Industries
    • No or “Homegrown” SRM solutions
    • Successfully control one type of spend (e.g. Direct Goods)
    • High Corporate Spend as Percentage of Sales
    • Fragmented Sourcing and Purchasing activities
    • Merger and Acquisitions
    • Working to have Key Strategic Supplier Relationships
  • Existing Customers – “It’s Been Done”

    • Best of Breed SRM point solution - Nextel
    • Multiple stakeholders disparate processes ….Services Procurement


Ample Opportunity In The PeopleSoft Customer Base



Qualify – Who Do You Call?



Importance of SRM to Finance

  • Sarbanes Oxley Compliance

  • Need to prove effective cost management of enterprise

  • Obliged to protect the fiduciary interests of shareholders

  • Must relentlessly pursue bottom line results



The Importance of SRM to IT

  • Must ensure interoperability of new applications with existing technology investments

  • Need to centralize procurement processes to minimize costs

  • Need to manage complex tasks of increased outsourced service personnel



The Importance of SRM to Executive Management

  • Lower costs and meet shareholder expectations

  • Increase market share and reduce costs thru M&A activity

  • Foster collaboration with suppliers and trading partners

  • Enable global “real time” visibility in all areas of supply



The Importance of SRM to Procurement

  • Need to transition from tactical to strategic role

  • Balance process efficiencies without sacrificing employee satisfaction

  • Need tighter control and communications with suppliers

  • Required to align procurement strategy with business goals



Discovery – Survey

  • Look for Opportunities to Source More Effectively

    • How many suppliers to you have in total, per category?
    • How much to you spend with your suppliers in total, per category?
    • How do you source new product and service suppliers?
  • Look for Services Procurement Opportunity

    • How much do you spend on services?
    • How long does it take to hire a contractor from time of requisition?
    • Do you have a single process to monitor and control services spend?
  • Look for eProcurement Opportunities

    • How do your buyers spend the majority of their time?
    • What percentage of your spend is under contract?
    • How many duplicate items are in your catalog?


Discovery – Survey

  • Look for Supplier Performance Optimization Opportunities

    • Who are your top performing suppliers?
    • How do you monitor and rate your suppliers?
    • Do you have a single place to go for full spend visibility?
  • Look for Supplier Enablement Opportunities

    • How do you communicate with your suppliers?
    • What % of your supplier transactions are handled electronically?
    • What % of your suppliers are electronically enabled?
    • How do you manage supplier content?
  • Look for Integrated SRM Opportunities

    • Does your sourcing process automatically create contracts in procurement?
    • Do you share supplier performance metrics with your suppliers?
    • Do your transaction systems feed a single data repository?
    • Are you fully integrated with your financial systems?


  • Competitors







Lead & Control – Competition – SAP



We Have Pummeled SAP



Lead & Control – Competition - Oracle



We Have Clobbered Oracle



Lead & Control – Competition – Specialty Vendors



Lead & Control – Competition - Ariba



We Have Beaten Ariba



E-Sourcing - E-Procurement Vendor Landscape



SRM Summary



Part of A Complete SRM Solution



A Powerful SRM Solution



Reduce Cost - Reduce goods & services spend, manage budgets, eliminate non-value added layers and processes across all suppliers, leverage contracts and discounts, and streamline payment process

  • Reduce Cost - Reduce goods & services spend, manage budgets, eliminate non-value added layers and processes across all suppliers, leverage contracts and discounts, and streamline payment process

  • Improve Efficiency - Simplify sourcing activities, manage services effectively, reduce administrative time, standardize processes, and compress procurement and hiring cycles

  • Increase Visibility - Ensure legal compliance, track and utilize quality resources, monitor supplier effectiveness, leverage historical information

  • Ensure Production – Optimize sourcing and procurement of critical material, meet customer needs, respond to market changes and prevent stock-outs



Thank You!



  • Back Up Slides



Emerging Source To Settle Trends

  • Shift to active partnering with suppliers

  • Increase collaboration to improve security of supply

  • Use technologies to automate transactions for lower costs

  • Shift the procurement staff toward strategic activities as buying specialists not clerical workers

  • Implement tools to address market volatility resulting in shortages and customer dissatisfaction (Lean procurement, VMI, outsourcing)




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