Best Practices in End-to-End Contract Management - SID 51374
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The document outlines best practices in end-to-end contract management, emphasizing the importance of procurement compliance to achieve expected savings from contracts. It highlights the benefits of automation in contract authoring and compliance, showcasing capabilities that enhance visibility into compliance, negotiated savings, and invoice management. Overall, effective management leads to significant savings and improved operational efficiency for both buyers and suppliers.
Best Practices in End-to-End Contract Management - SID 51374
- 1. PUBLIC Deepak Sanghi, Debashis Banerjee August 2017 Best Practices in End-to-End Contract Management
- 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Procurement compliance is needed to ensure realized savings from sourced contracts Contract Savings From Sourcing (20-25%) Realized Savings Without Procurement (10-13%) Time Value of Procurement Lost Savings via Leakage (10-12%) 1 2 3 Invoice Reconciliation /Discounts Poor Process Management Lost Contract Compliance 5-7% 1-2% 4-6% 10-12% Lost Savings Without Procurement compliance
- 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public “Applying procurement guardrails is of paramount importance to achieve the compliance goals and realize the forecasted savings. It not only helps buyers but suppliers as well.” Sudhir Bhojwani Senior Vice President, SAP Ariba Apps
- 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public * Source: Ardent Partners, The Rewards of Best-in Class Contract Management, February 2015 21% 35% 34% 39% 35% 41% 54% 56% Visibility into contract compliance rates Visibility into implemented savings Visibility into booked savings Visibility into identified or negotiated savings Best-in-Class All Others © Ardent Partners - 2014 Procurement teams differentiate themselves by having greater visibility into contract negotiation, performance, savings and compliance. Contract Management Automation Visibility into Savings and Compliance
- 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public End-to-end Contract Authoring and Compliance Solution Authoring Repository Compliance Visibility Clause 1 Clause 2 Clause 3 Signed Legal Contract Repository Release No Release Purchase Order Receipt or Service Sheets Invoice Catalog Spend Visibility buyer supplier
- 6. Demo – Contract Authoring, Contract Compliance
- 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Contracts cover PO based spend, invoices and ad-hoc services spend Po Based Spend, takes care of contract compliance during requisitioning Invoices, takes care of invoices against contracts and automatic generation of invoices for fixed and recurring payments Ad-hoc Services Spend, helps in enforcing price compliance for ad-hoc services (service entry sheets) Contract Compliance
- 8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Capabilities Automatic selection of best contract for a purchase Automatic creation of requisitions based on pre-determined forecasted spend Benefits Automatic selection guarantees contact utilization and best prices Timely booking of liabilities for the forecasted spend Easy monitoring of spend Contract Compliance – PO Based Spend
- 9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Capabilities Suppliers can submit invoices directly against a contract Automatic creation of invoices on-behalf of suppliers for the fixed and recurring spend Benefits Spend under control even without a PO – price check, cap on spending, receiving checks, etc. Easy monitoring of spend Contract Compliance – Invoice Spend
- 10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Capabilities Services PO reference a contract Suppliers can select items from the contract for the service entry sheets Benefits Buyer can control the items that are added to the service entry sheets Price compliance Easy monitoring of spend Contract Compliance – Ad-hoc Services Spend
- 11. Demo Remove this after the demo is prepared 1. Create a supplier level contract 2. Supplier punches in to create a contract invoice 3. Show invoice in downstream with exceptions and stress of the fact that you now have a procurement document to ensure that invoice goes through basic checks
- 12. 21PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
- 13. Thank you. Contact information: Deepak Sanghi Director, Product Management Debashis Banerjee, Product Owner