Sourcing Is Now Resourcing: How Sourcing Is Utilized Beyond Just the Basics
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The document summarizes a panel discussion on how sourcing is now being utilized beyond just cost savings to drive broader business objectives. Karina Matute of Viña Concha y Toro discusses how her company implemented SAP Ariba solutions to systematize their sourcing processes, increase transparency, and scale efforts across subsidiaries. Lauren Hymen of Coty explains how they used Ariba applications to harmonize sourcing globally and increase visibility within one year. Both highlighted benefits like improved reporting and supplier integration, as well as ongoing challenges of change management and maximizing new capabilities.
Sourcing Is Now Resourcing: How Sourcing Is Utilized Beyond Just the Basics
- 1. Sourcing Is Now Resourcing: How Sourcing Is Utilized Beyond Just the Basics Karina Matute, Head of Negotiations, Viña Concha y Toro Lauren Hymen, Global Procurement SAP Ariba Lead, Coty Moderator: Michael Koch, Director, SAP Ariba / March 16, 2016 Public
- 2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public Panelists Karina Matute Head of Negotiations Viña Concha y Toro Lauren Hymen Global Procurement SAP Ariba Lead Coty
- 3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public Strategic sourcing – driving sustainable savings year over year THE CPO’S TOP PRIORITIES (NEXT 3 YEARS) Source: Ardent Partners, CPO Rising 2015: The Agility Agenda, March 2015
- 4. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public Strategic sourcing – driving savings and collaboration Procurement teams less focused on savings in the short-term are more focused on technology optimization and improving staff, while the group more focused on savings looks to suppliers as well as sourcing and cash management to achieve its goals. 44% 36% 26% 22% 36% 21% 17% 29% Improve use of technology (buy new and/or improve current) Improve staff capabilities Optimize current systems and processes Improve collaboration with suppliers No Savings Pressure Savings Pressure © Ardent Partners - 2015 Source: Ardent Partners, CPO Rising 2015: The Agility Agenda, March 2015
- 5. Karina Matute, Head of Negotiations at Viña Concha y Toro Sourcing Is Now Resourcing: How Sourcing Is Utilized Beyond Just the Basics Public
- 6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public A leader in the wine industry WORLD’S
- 7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Public CHAPTER I INTRODUCTION Desde 1883
- 8. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public Heritage
- 9. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Public Consolidated sales
- 10. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Public Consolidated sales
- 11. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public Main wineries by volume
- 12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Public Main wineries: vineyard area planted
- 13. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public Global presence
- 14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public CHAPTER II THE WAY WE WORK Desde 1883
- 15. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public How to survive in such a competitive industry??? CYT complexity
- 16. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public The best wines… ….but also… CYT complexity
- 17. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public BEST SERVICE CYT complexity
- 18. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public IPP Indice Pedido Perfecto = Perfect Order Index CYT complexity
- 19. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Public CYT complexity IPP measures the Service Level Accomplished on each PO a customer places based on: 1.- Delivery on agreed date to the customer 2.- Delivery in quantity of all products
- 20. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Public CYT complexity
- 21. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Public CYT complexity
- 22. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Public CYT complexity
- 23. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Public CYT complexity
- 24. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Public CYT complexity
- 25. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public 30% 40% 50% 60% 70% 80% 90% 100% AxisTitle IPP Monthly Evolution CyT Holding Target IPP CYT complexity
- 26. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Public Strategic Suppliers Quality Service Level Price How do we accomplish a great IPP???
- 27. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Public CHAPTER III ARIBA SOURCING Desde 1883
- 28. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Public Project backgrounds It was created in 2009, to manage strategic purchases, not only based on price but on a number of variables which together generate a value proposition Agricultural Enology Negotiations and Operations Supply Chain Sales & Marketing Customer Services
- 29. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Public Our proposal Ensure compliance of the procurement process in a strategic manner within our current scope and replicable way to the holding Manual tasks keep us busy We need more detail in report to enhance the process Demand Analysis Supply Analysis Strategy Definition Communication Supplier Selection Implementation Supplier Management 1 2 3 4 5 6 7
- 30. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Public General objectives Increase quotation service level Scalable to other areas and subsidiaries Supplier Integration Benchmarks Quotes Transparency
- 31. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Public Challenge and solution Ensuring the availability of resources to optimize the tasks, through a transparent and reliable technology tool, scalable to all areas of Concha y Toro and subsidiaries, systematizing operational task and delivering internal and external visibility. The technological tool that solves the automation of purchasing and supply is the implementation of Ariba Sourcing, a Cloud solution for strategic negotiations by SAP Ariba CHALLENGE SOLUTION
- 32. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Public SAP Ariba Ariba Business Commerce Ariba Network Identify Oportunity Develop Strategy Source and Negotiate Contract and Procure Invoice and Pay Monitor and Manage SAP Ariba Business Commerce Spend Visibility Sourcing Contract Management Procure Invoice Pay Supplier Management Best Practice Services • Professional Service • Helpdesk
- 33. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 42Public Ariba Sourcing benefits Quote Agility Cross Suppliers and CyT Traceabili ty Remote Access No cost to Suppliers Transparency ReportabiltyTraceability
- 34. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 43Public Step by step Need • R&D Event • Negotiations Quotation • Negotiations Assignation • Negotiations
- 35. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 44Public Supplier selection criteria Price Quality Service Sustainability
- 36. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 45Public Results of 1st year in SAP Ariba +286 projects 6,2 projects x week 6.7 million dollars Quotation Time +10 days to 5 Incorporation of Argentina to our structure
- 37. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 46Public Next steps Simplify Step by Step: SAP Integration (both ways) Less steps – simplify process Ariba Supplier Information and Performance Management (SIPM) Supplier Selection
- 38. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 47Public Final words Working hand in hand with SAP Ariba, we’ve managed to customize SAP Ariba solutions for a business process with multiple RFQ needs. We use sourcing for Strategic + Tactical projects!
- 39. Thank you Contact information: Karina Matute Head of Negotiations Viña Concha y Toro kmatute@conchaytoro.cl
- 40. Sourcing Is Now Resourcing: How Sourcing Is Utilized Beyond Just the Basics Lauren Hymen, Global Procurement SAP Ariba Lead, Coty / March 16, 2016
- 41. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 50Public Coty is a global beauty leader Fragrances Color Cosmetics Skin and Body Care Who we are 10,000 employees 40+ brands 7 factories Offices in 30+ countries Presence in 130+ countries
- 42. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 51Public Why SAP Ariba One global system Increase visibility Harmonize local sourcing processes Contract repository Simplify contract approval / signature process
- 43. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 52Public Upstream implementation in one year • July 2015 • Available for all buyers to easily run their data analytics Ariba Spend Visibility • March 2015 • Create 4 generic templates for each category (Direct, ExO, A&CP, and BS) • Execute 4 events for each category in SAP Ariba • All buyers can make online events Ariba Sourcing • April 2015 • Build and deploy repository module • All new contracts from April 2015 onward managed in SAP Ariba Ariba Contract Management
- 44. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 53Public Project approach and journey Built Core Project Team Engaged Leadership Team Engaged Legal Team Created Vision Roadshow for Department Buy-In Delivered In- Person Training in All Countries
- 45. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 54Public Results Less than one year later… Sourcing (100 users): 160 Events 132 Projects Contracts: 527 Contracts Spend 2.5 fiscal years uploaded and cleansed
- 46. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 55Public Quick wins Sourcing: Direct RFQ sourcing library event templates Sourcing: All Direct / 3rd Party Events required paperwork only available in SAP Ariba Contracts: CPO would only sign contracts in SAP Ariba Contracts: Contract templates available Contracts: Massive upload of over 200 contracts
- 47. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 56Public Key success criteria Knowledgeable / well-respected project team Empowered key user community In-person customized training CPO engagement and compliance to process One global process
- 48. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 57Public Ongoing challenges De-centralized approach limits deep knowledge expertise True measures of adoption / success Spend classification Capitalizing on new functionality (e-auctions)
- 49. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 58Public Success is a journey – one step at a time
- 50. Thank you Contact information: Lauren Hymen Global Procurement Ariba Lead Coty Lauren_Hymen@cotyinc.com
- 51. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 60Public Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session