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Sap Overview Essay

1613 words - 7 pages

SAP’s Approach to Sourcing and Procurement Strategies in Today’s Economy;

MARKET

?

Global Trends are Driving Change in Procurement Practices
Economic Downturn Focus on Efficiency

Globalization

Sustainability

Increased Focus on Costs
New approaches to savings Pressure to increase spend visibility and management

Growing Supplier Risk
Supply base becoming more global Need to effectively manage risk and provide insights

Importance of Governance
Increased pressure on sustainability objectives New regional and global regulations

Demand for Rapid Productivity
Employees requiring intuitive self services Focus on automated and integrated processes

In this ...view middle of the document...


William Reis, Chief Procurement Officer

300% increase in managed spend, using same staff levels

Live implementation in three weeks

© SAP 2010 / Page 18

SAP Customers are Extending Their Reach with Analytics – Spend
Drive Spend Performance Management

Spend Related Insight Savings Potential

Comparison to Plan/Budget

Price Variance

Evaluate Supplier Risk Contract Performance

Data Standardization & Enrichment
ERP
BI

GL P-Cards T&E

Deliver Integrated Data Management “Automate data capture Enable data enrichment and normalization
© SAP 2010 / Page 19

Provide Transparency and Insight Comprehensive data model Powerful adhoc analytics

Identifying Value

!

© SAP 2009 / Page 20 2010 Page 20

SAP Value Discovery Offer

Helps Identify and Prioritize Quick Wins
SAP Performance Benchmarking Sample Analysis:
Performance of primary KPIs and potential benefit
Benchmark Performance
Bot 25% 3.0 Bot 25% 2.0 Bot 25% 68.9 69.0 Average 1.5 1.1 Average 3.3 Average 74.7 Average 7.2 6.4 Top 25% 0.6 Top 25% 5.0 5.8 Top 25% 89.0 Top 25% 1.2

One of the largest global benchmarking programs Over 5,000 participants Over 20 processes, including Sourcing and Procurement Comparison with industry peers

KPI
Procurement Costs As % of Spend Average Annual Savings (in %) Spend Managed Strategically (in %) Maverick Spend (in %)

Potential Benefit (in $ Million)
0 – 2.9

0 – 4.4

1.1 – 3.7

Bot 25% 15.8

0.1 – 1.0

Benefit of Closing Gap to Average Benefit of Closing Gap to Top 25%

Industry Specific Benchmarks Available:
Example Spend Managed Strategically (Indirect)

Average
© SAP 2010 / Page 21

Top 25%

SUMMARY
© SAP 2009 / Page 22 2010 Page 22

THE

!

Key Take Aways

The pace of change continues to increase in all solutions areas and particularly with respect to on-demand The SAP sourcing and procurement platform provides the best opportunity to drive increased speed of productivity across your organization no matter how diverse Increasing importance of managing all aspects of your source-to-pay process to obtain realized cost savings

In today’s market, you need to drive incremental, as well as quick wins through flexible deployment options – on premise, hosted or on-demand

© SAP 2010 / Page 23

Join us October 20th – to hear from some of our customers.......to register
www.sapevent.co.uk/procurement

Cathy Daw
© SAP 2007 / Page 24

Procurement Specialist

SAP’s...

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