Leveraging SaaS to Enable Procurement
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The document outlines a webinar discussing the trends and advantages of leveraging cloud-based Software as a Service (SaaS) for procurement in small and medium-sized businesses (SMBs). Key topics include the efficiency, cost-effectiveness, and integration of e-procurement systems, as well as the importance of technology enablement. A case study illustrates the benefits of using procurement software like Procurify, which simplifies and speeds up purchasing processes.
Leveraging SaaS to Enable Procurement
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- 2. Overview Leveraging SaaS to Enable Procurement Welcome, Webinar Format Topic Overview Trends: cloud, procurement, SaaS, Mobile The case for cloud/SaaS Procurement function Technology Enablement Procurify: Case study Why purchase in the cloud Key Learnings Questions Webinar Host: Brittany Whitmore Director of Communications, Procurify Cloud application use for SMBs is set to grow by 44% in 2014 -Small Business Computing, Jan 8, 2014 67% of SMBs reported mobile solutions as critical to their business SMB Group, Inc., Dec 3, 2013
- 3. Featured Speakers Herman Chandi, CPA CA, VP Business Development, Procurify Norbert Huber Partner, Management Consulting, Technology Enablement, KPMG
- 4. Cloud and SaaS Host Build Consume CloudServiceStack Integrate Public Private Hybrid Thin client Mobile Web Business Process Application Platform Infrastructure Cloud Service Model Where and For What Cloud Client How Deployment Model Payment Sourcing Office Processes Payroll Shared Service Center Operating System Servers and Virtualization Data Centers & Storage System Management Access & Security Application Hosting Application Design Development & Testing Scalability & Storage Monitoring Service Management Finance & Operations Procurement Resource Planning Customer Relationships Collaboration Tools Desktop Solutions + sometimes off-line with replication … How to consume? How to set-up? Apps IaaS Infrastructure as a Service SaaS Software as a Service PaaS Platform as a Service BPaaS Business Process as a Service Source: KPMG
- 5. ?Things to know about SaaS Established functionality & leading practices Scalability ‘Old school’ versus ‘New school’ Multiple access points Online / remote Business role in technology strategy Cross-vendor compatibility Cost to Value TCO Pay as you go/use Adoption Performance Consumption Value Technology Integration Speed to Value Try before you buy Subscription The cloud strategy should be integral to IT and business strategy. Each organization should perform an analysis of how cloud could be adopted in your organization – create a case for cloud.
- 6. ?Considerations when adopting SaaS Business accelerates the ”as-a-service” model. Complexity of data management, system integration and management of multiple cloud providers often comes as a curve ball. IT is increasingly expected to be a business partner and advisor. Navigating the Cloud jungle Holistic System Landscape Business drives SaaS adoption IT as Business Advisor Data SaaS Vendor Contract Negotiation
- 7. Procurement at SMEs Timely support of business / operations Typical pain points Efficiency & Best Value Manual, time consuming procurement process What matters to SMEs? Visibility in availability, price and delivery time of goods and services Controlled spend combined with simplicity Integrated e-Procurement systems improve visibility & spend control End-to-end visibility in the procurement process Easily accessible and efficiently managed Technology enabled Procurement at SMEs Reliance on spreadsheets, paper and offline data Limited insight and spend analysis
- 8. The Procurement Process Purchase Requisition Purchase Order Vendor Invoice Payment Goods Receipt 3-way match Approval workflow Core Procurement Process Extended Procurement functionality / requirements: 1. Contract Lifecycle Management 2. Catalogue & Pricelists 3. Strategic Sourcing 4. Enhanced Integration 5. Budgeting & Planning 6. Materials Requirements Planning (MRP) 7. Supplier Self Service 8. Supplier Marketplace / Portal 9. Analytics 10. Supplier Performance Management Catalogue Needs Request Quote PO
- 9. Trends in Procurement and Systems Procurement Systems and Processes that go along with growth Scalable and flexible systems – “think big start small and scale fast” Enable insight & analytics for the right decision making Simple and easy accessible Procurement Systems Low or non-real time adoption often an obstacle to improved visibility and control Reduced configuration & set-up complexity Eliminate level of reliance on IT to perform business functions and the effort to change business rules should be minimal
- 10. Procurify Purchasing made ridiculously easy Next generation of purchasing software Cloud, SaaS, Mobile In 52 countries Multi-Vertical in SME’s Focus on SME’s
- 11. Procurify Purchasing in the cloud Cloud Innovative process design and increased efficiency Without the high cost and lengthy time requirement of a traditional ERP implementation Trial account - test drive Register online and import data - start fast No obligation - quit if you don’t like it Example – Field workers off-site
- 13. Why Choose E-Procurement? Old Way No processes or antiquated processes Paper/excel spreadsheets for requisitions and approvals ERP system makes accounting happy, process falls apart for everyone else Disputes with vendors/missed discounts Finding out too late – who spent what and why??
- 14. The Old Way…
- 15. Who is a Good Fit for E-Procurement? You’re a fast growing company, hiring rapidly or growing into new markets You’re under pressure to control and cut costs Types of Spending – everything outside of payroll Marketing budgets Production Indirect spend Maintenance and Repairs Travel Employee expense reports
- 16. The Old Way…
- 17. The New Way… ERP Financial System of Record
- 18. Procurement: The New Way Streamline purchase order process If you use PO’s already Average cost per PO: $25 - $100 Cloud e-procurement Cost per PO goes down to a few dollars Mobile Both head office and field workers using the same process
- 19. Automates key workflows so they can be done rapidly Saves time and creates visibility into all company spending 5% reduction in costs = 30% increase in revenues Procurement: The New Way
- 20. Case Study ASCO Aerospace, USA Manufacturer with 200 employees Requisitions were done on excel – printed out to be signed off by approver manually No way to know if goods were actually received Procurify Decreased time spent per PO by 80% Ability to manage all spending on supplies ranging from $2 dollar items to capital investments of $1,000,000+ Read the Whole Story: http://www.procurify.com/testimonials/asco
- 21. Key Learnings Cloud, SaaS, mobile usage on the rise for SMB/SMEs Technology enablement for procurement Efficiency, lower upfront costs, multiple-location management, real-time data Test-drive solutions before committing Fact: Cutting costs > increasing revenue for increasing the bottom line Good fit for cost-control, high-growth, processes-upgrades, you are decentralized or project-based, better decision-making
- 22. Questions Norbert Huber, KPMG LLP Email: NorbertHuber@KPMG.ca Herman Chandi, Procurify Email: Herman@Procurify.com Phone: 1-888-463-5254 Brittany Whitmore, Procurify Email: Brittany@Procurify.com Phone: 1-888-463-5254