Procure to Pay (P2P) has been on the roadmap for most companies for the past decade. However, incomplete vision, poor adoption and lack of supplier enablement have often hampered the realisation of the full potential value. Successful approaches to P2P not only improve spend under management and drive compliance to unlock value, but also enable innovation through better collaboration with suppliers. This session explores how some of the high performance companies are unlocking value through P2P programmes and driving innovation through improved collaboration. Sourav Niyogi , Senior Manager, Operations Consulting – Accenture Andrew Brimacombe, Senior Manager, Operations Consulting – Accenture 2013 Ariba Commerce Summit London

1. Procure-to-Pay as a Catalyst to
Unlock Value and Drive Innovation
Through Collaboration
Ariba Commerce Summit
London
15th January 2013

2. Welcome : Your Speakers Today
Sourav Niyogi
Senior Manager
Accenture UK & Ireland
Management Consulting
Supply Chain Management
sourav.niyogi@accenture.com
Andrew Brimacombe
Senior Manager
Accenture UK & Ireland
Management Consulting
Supply Chain Management
andrew.brimacombe@accenture.com
Copyright © 2013 Accenture. All rights reserved. 2

3. P2P is not a new concept, while Globalisation fuelled its adoption
high performing companies are constantly redefining it
1990s 2000 2004 2008 2010 2013
Globalisation Control User Friendliness Cost Reduction Networked Economy
Standardisation Compliance Velocity Efficiency Innovation
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4. The business case is clear – without an effective P2P solution
the benefits from sourcing are lost
Illustrative
Increased Results
from Sourcing & Spend reduction of More Effective P2P Improve compliance
Demand Mgmt 150M$ after 3 years Operations from 50% to 90%
Activities
Better Spot
Increased Efficiency
Higher Increased Buys and
Increased visibility savings –
Frequency of Saving % per Improved
Spend Under from better lower cost of
Sourcing Sourcing Compliance
Management spend buying
Events Event to PSLs and
management operations
contracts
150M$ from 50% to 90% compliance = 60M$
150M$ at 50% compliance = 75M$
20M$ incremental spot buy savings
$ on the table
$ in your pocket
*50% compliance assumed is enabled by P2P
For every 1B$ of indirect spend, 155M$ tangible spend reduction
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5. More is asked of High Performers and More is delivered –
controlling the spend throughout the lifecycle
Best Practice in Requisition to Pay Best Practice in technology
Identified and mapped Req 68% Integration of Source to 49%
to Pay process 28% Pay technology / modules 12%
Integration of Req to Pay 81% 73%
Master data strategy
processes and technology 34% 31%
Buying channel strategies 73% 55%
Data visibility
identified 19% 10%
Integration with suppliers to 58% 60%
Supplier integration
streamline Req to Pay
10% technology 19%
process
Master Non-Master Master Non-Master
Accenture high performance procurement survey analysed responses
from 432 procurement organisations across a broad range of industries
worldwide.
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6. Our research indicates that procurement will evolve across
six dimensions and that P2P will be a key enabler for this
Networks –
Contribution to with suppliers, other buyers and Innovation –
business results – other business partners additional business
grow sales/revenue opportunities
& optimize costs
Procurement
Opportunities
Technology – Risk Management –
increased flexibility through market volatility, unexpected
evolving technologies
Analytics – external events, financial crisis,
supporting strategic decisions global operations 1
with facts & figures
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7. Top organisations are already applying controls and structures
on top of the P2P backbone to drive greater bottom line impact
Contribution to Business Results
2 3
Category Ownership Priority Based Budgeting
HR Marketing Supply Finance IT/IS …
Fees
Travel
Labor & Benefits
Sales
1 Transport Appoint Senior Category
Visibility … Owners, aligned with
Procurement Category Mgt
Define consumption policies, optimized Create bottom-up budget starting
specifications and optimal sourcing from a zero base, adhering to strict
strategies. Sourcing Execution policies
5 4
Control & Monitoring P2P- Buying Operations
Provide full transparency on ‘who- Monthly Variance Report by Sub Category and Entity Level - Example figures -
Apr-08
spends-how-much-on-what’ in USD
Entity xyz
Cost Category Budget Mon Actuals Mon Var Mon Var Mon %
01 Fees 12,984,168 11,454,191 1,529,977 12%
0102 Insurance 7,543,567 6,209,382 1,334,185 18%
0104 Audit Fees 2,599,883 2,389,493 210,390 8%
0105 Recruitment 1,508,845 1,392,830 116,015 8%
0106 Legal Fees 677,786 809,392 -131,606 -19%
0107 Consultant Fees 197,196 190,002 7,194 4%
0108 Medical fees 456,890 463,092 -6,202 -1%
02 Travel & Meetings 16,280,335 17,079,003 -798,668 -5%
0201 Flights 3,320,554 3,492,099 -171,545 -5%
0202 Lodging 6,065,169 6,209,392 -144,223 -2%
0203 Meetings & Events 2,659,867 2,589,383 70,484 3%
0204 Meals 2,426,755 2,393,299 33,456 1%
0205 Ground Transportation 1,807,990 2,394,830 -586,840 -32%
06 Telecom 2,795,000 2,167,667 627,333 22%
0601 Mobile Services 2,089,000 1,628,739 460,261 22%
0602 Telephone Services 706,000 538,928 167,072 24%
TOTAL TOTAL 47,769,282 46,253,864 1,515,419 3%
Track actual variances against the
budget and document during monthly Drive spend into compliant buying
meetings to ensure budget achievement channels, while constantly reducing spot
by year end buys, all in the most efficient way.
Copyright © 2013 Accenture. All rights reserved. 7

8. The economy is already increasingly networked and procurement teams
will need to collaborate more broadly to realise value in the future
Networks & Innovation
Impact in the future
Transactional spend catered by
Impact today Networked Economy
Supplier
Leverage Strategic Relationship
Management
Supplier Network
Spend
Non-Critical Bottleneck
Criticality
Supplier Portal
From structured roles… …to flexible innovation networks
New requirements for P2P and procurement technology
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9. Thank you
Questions ?
Copyright © 2013 Accenture. All rights reserved. 9