Krishan K. Batra, President and CEO of ISM-India, gave a presentation on re-inventing procure-to-pay and key 2018 procurement trends. He discussed how procure-to-pay is shifting from traditional paper-driven processes to modern automated systems. Emerging trends driving this change include cloud computing, robotic process automation, artificial intelligence, mobile access, and blockchain technology. Successful transformation requires change management strategies to gain stakeholder buy-in for new procurement software and processes.

1. Re-inventing Procure-to-Pay
Key 2018 Procurement Trends
Krishan K. Batra
President & CEO
ISM-INDIA
Access an on-demand Webinar on this topic here: https://zyc.us/2q4fZkD

2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Today’s Presenter: Krishan K. Batra
 Education:
• MBA from Syracuse University (USA)
• PGDIM (Bombay University)
• DCM (Bombay University)
• M.Tech (IIT, Delhi)
 Professional Certification:
• ERP Certification
 Recognition: Hind Ratna
 Experience:
• President, ISM-India, www.ism-india.org
• Chairman: UNDP/ACP, New York (Overseeing 166 Countries)
• Senior Executive Director: NSIC Ltd, India
• GM, TRTC and many other senior positions in various companies including Voltas

3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Agenda
 Traditional to Modern P2P
 P2P Trends – 2018
 P2P Transformation – Change Management
 Quick Quiz

4. TRADITIONAL TO MODERN P2P
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5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Procure-to-Pay

6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Traditional P2P
 Series of multiple steps
 Each handled by different BU/ stakeholder
 From Requisition to Payments – too many hands involved
• Unnecessary expenses
• Delays
• Errors
 All businesses need supplies, and generally spend 50% and
sometimes as much as 70% of their budget procuring them

7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Traditional P2P – Characteristics
 Paper driven process – no workflow or automation
 Procurement not linked to AP
 Employees buy things what/when/from whom they want
 Many purchases outside specified catalogue
 Lack of invoice visibility – misplacement
 Low quality insights from spend data
 Low end-to-end compliance and control
 Lengthy and time consuming processes

8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Transaction Types
Inventory, 50%
Non-Inventory,
20%
Check Requests,
5%
Non-PO Invoices,
10%
Payroll
Deductions, 2%
Utilities, 3% Service Rentals,
5%
T&E, 5%
Production, Direct
Materials, SKUs
MRO Materials

9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Top Opportunities for Improvement in Procurement Process

10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Why Automate P2P?
 Demand for such a solution is expected to increase to 50% in the next 5 years

11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
P2P in Organizational Context
Spend
Category
Strategy
Vendor
Selection &
Negotiation
Purchase
Requisition
Approval
Purchase
Order
Generation
Invoice
Receipt &
Processing
Payment
Processing
Vendor
Management
Procurement Accounts PayableProcurement
& Finance
Procurement
& Legal
Procurement &
Business Areas
Procure-to-Pay
Source-to-Pay
Procurement & IT

12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Direct Cost Savings From P2P
 In times of economic uncertainty and slow-growing revenues, reducing the
cost base of an organisation is the single best measure to improve the
bottom line.
 For a typical company, a 5% reduction in purchasing cost can increase the
bottom line with as much as a 25% increase in sales
 Indirect spend presents a huge opportunity
 Tactical, Strategic & Managerial benefits

13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Procurement’s Relationships: AP and Suppliers
 AP: Matching is the process used to compare AP Vouchers with
Purchase Orders and Receipts
• 2-way match – AP voucher & PO
• 3-way match – AP voucher, PO & Receipt
 Suppliers: Experience shows 30% or more of the effort will be
managing suppliers and getting content online
• P2P automates cumbersome supplier processes

14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Elements of Planning a P2P Implementation
 Build a numbers-driven case
 Communication and change management
 Performance measurement
 Impact on the procurement department

15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
P2P-ERP Integration
 Most P2P implementations happen because ERPs are inadequate
in the procurement technology area
 Investing in procurement-specific software yields better results
 Choosing a solution with seamless ERP integration

16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Gartner Magic Quadrant – Strategic Sourcing Application Suites
High level of overall customer satisfaction
High scores across all four core modules:
Spend Analytics, eSourcing, CLM and SBM
Strong combination of functionality and
platform capabilities
Highly thought of product offerings compared
with most other vendors
Strong market understanding

17. P2P TRENDS – 2018
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18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
P2P Trends Reinventing 2018
 Cloud, IoT
 Post Modern ERP Strategy
 RPA, AI, ML
 Big Data
 Mobile P2P
 Bonus: Blockchain Technology

19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Cloud, IoT
 The cloud is still news! Cloud systems are internet based solutions
that give access to shared computer resources on demand. The
SaaS model and resources like Amazon AWS and Microsoft’s Azure
are contributing to the growth of cloud services for the enterprise – a
trend that is not slowing down
 More organizations are using technology to create “touchless”
business processes, such as PO matching that delivers a matched
invoice to the ERP without human intervention.

20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Post Modern ERP Strategy
 ERP Replacement versus Adding a specialized P2P layer on top of
existing ERP
 Bifurcate existing applications into Core and Operational
• Stability v/s Agility
 Are operational applications becoming inefficient because they are
being subjected to the same treatment as Core applications?
 Evaluate specialized P2P solutions with seamless ERP integration

21. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
RPA, AI, ML
 A form of process automation technology that can be deployed to
perform manual, rules-based and repetitive tasks
• Plays a key role in automating transactional P2P processes
• RPA can reduce costs by 35-65% for onshore delivery
operations and 10-30% for offshore delivery operations
 AI and ML come into play when the P2P solution starts learning from
these repetitive tasks
• Flagging fraudulent/ non-compliant suppliers
• Smart contracts

22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Big Data
 Management of increasingly large data sets
• Analysis – Capture – Visibility – Curation – Transfer – Updation
 Making more informed decisions
• Spends, Savings, Payments, Accountability
 Bringing Procurement, AP, Admin, Legal on the same page
 Rebranding Procurement
• ‘Cost Centre’ to ‘Savings Centre’

23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Mobile P2P
 On the go
• Raising requisitions
• Approvals
• Modifications
• Authorizing payments
 Productivity boost
 Connect with suppliers in real time

24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Bonus: Blockchain Technology
 A shared digital ledger which includes a continually updated list of all
transactions associated with a given “object” or grouping of objects
 Relevance to P2P
• Ability to program activities when matches occur
• Supply chain traceability
• Compliance
 Still in infancy, little hope for maturity till 2022

25. P2P TRANSFORMATION – CHANGE
MANAGEMENT
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26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Change Management
 It’s always a good idea to map out your “change journey” and
present it to your stakeholders to get their buy-in before you start
implementing your software to avoid any future policy issues
 Include these in the plan:
• Training plans
• Adoption plans
• Supplier communication plan
 Look out for the solution that partners with you in this Change
Management journey

27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
P2P Best Practices
 Look out for these while choosing the right solution!
• Contract Management:
• Catalog Management & Catalog Search Engine
• Catalog and Non-Catalog based Requisition
• Requisition Approval and Tracking
• Auto/Manual PO
• Payment Processing/ Early Payment Discount
• Analytics & Reports
• Pre-Built Integrators (Complements ERP)
• Mobility
• Deeper Supplier Engagement (Self Service, Dispute Resolution)
• Full P2P Functionality

28. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Summary
 P2P has a significant role to play in the future of Procurement and
its advancement
 It should not only be seen as cost cutter but as a Strategic Function
that can have a real impact on the bottom line
 The P2P bandwagon is rolling. The question that all businesses
must ask is should I jump on now or be mowed under by its wheels

29. QUICK QUIZ

30. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Quick Quiz
 E-Procurement and P2P are same.
• True
• False
 Combine the e-procurement and e-invoicing/ invoice-to-pay modules, and what you have is:
• P2P
• S2P
 E-procurement was essentially created to combat the gaps in ERP support for purchasing
activities.
• True
• False
 Invoice-to-pay is simply a combination of e-invoicing and e-payments
• True
• False
 Organizations across all industries, from retail to construction to education, rely on Procure-to-Pay
(P2P) solutions to convert negotiated contracts to realized savings and ensure compliance
• True
• False

31. Krishan K. Batra
President & CEO
ISM-India
(+91) 124-4221353
(+91) 9971171220
krishan.batra@ism-india.org
www.ism-india.org
/company/ism-india/
/ismindia
/ismindia
Access an on-demand Webinar on this topic here: https://zyc.us/2q4fZkD

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