Procure-to-Pay Summit, February 16-18, 2011

jhg b2b, e-procurement, purchasing

Procure-to-Pay Summit

On February 16-18, the i-Procure.com team will participate in the 9th Procure-to-Pay Summit in Miami, FL… want to join us?

Procure-to-Pay is about increasing cash flow and improving business outcomes as we move away from a reactionary mode toward sustainable practices. It is clear that the harsh economic climate in 2010 has created opportunities for companies to create new synergies with P2P partners to help promote growth for 2011 and beyond. At the Procure-to-Pay Summit, we will meet with Procurement, Accounts Payable and Sourcing professionals to discuss new initiatives, including e-procurement and consortium bidding as well as AP optimization (Centralization, Outsourcing and Automation).

Agenda, day 1

Chairperson’s Welcome & Opening Remarks

Debbie Hamel, President & CEO, TakeCharge Technologies

Opening Keynote: Expanding And Enhancing P2P With The Cloud & Other Next Generation IT Tools

Jon Crump, VP, Procure to Pay Program, Lockheed Martin

Lockheed Martin’s P2P project has earned it the distinction of one the nation’s most innovative users of information technology on the 2010 InformationWeek 500, ranking 1st in the manufacturing category and 46th overall. Due to the size and complexity of the legacy P2P environment, Lockheed Martin’s procure-to-pay platform is being deployed in 6 to 9 month “waves” across all Lockheed Martin businesses with a total of 6 phased deployments. The first wave deployment was successfully completed in August 2009 and the last is scheduled to be completed in the first quarter of 2013. Once fully deployed, the new integrated system will be used by more than 10,000 internal Lockheed Martin users and more than 80,000 external users/suppliers.

  • Consolidating more than 40 different systems into a single corporate-wide platform used for non-classified procurements
  • Avoiding significant costs through system retirement, reducing labor primarily associated with legacy system support and enhancing productivity
  • Optimizing P2P processes on the Cloud

Going Global: Transforming P2P With A World Class Shared Services And Outsourcing Strategy

Jessica Hill-Johnson, Director, Financial Disbursements, Amgen Inc.

The arguments for shared services and outsourcing from a cost and efficiency perspective are self-evident. Where a rather ad-hoc order, approval and payment process may survive under one roof, it is almost sure to fail when split between locations that are countries or continents apart. With adherence to comprehensive ordering processes, streamlined systems and good user training and acceptance testing, P2P can be an efficient, low-effort, lowintervention process. At the same time, this does not mean that once you outsource you don’t have to think about it anymore!

  • Outsourcing “The Big Three”: Procurement, invoice processing and T&E
  • Eliminating non-value added services in procure-to-pay
  • Optimizing P2P processes with multiple process owners

Turning Risks Into Rewards: How To Reduce “Value Leakage” And Improve Compliance

Mani Mangalathumadam, Supply Chain Practice Leader, Wipro BPO

Value Leakage is a key area of focus for organizations on the P2P side of business, specifically around invoice leakage and contract leakage. Ineffective contract non-compliance and non- PO spend has a significant impact on value leakage across direct and indirect spend. There is also a major savings leakage area in the buy side due to duplicate payments, delayed payments, penalty and missed early payment discounts. In this session you will hear how we have helped customers prevent value leakage in the P2P process area, specifically in chargeback and accounts payables areas.

  • Examining the problems, causal factors and map potential solutions
  • Identifying where enterprise content management solutions can quickly close the P2P gaps and how they can deliver real back-office savings
  • Establishing a practical decision framework

Top Speaker: Closing In On 100% Payables Automation: Can It Be Done?

Eric Jones, Director of Corporate Payables, Lowe’s Companies, Inc.

With over 20 million transactions representing an excess of $30 billion in spend annually, 98% electronic penetration, 95.2% clear rate, 98.6% on time payment and an individual transaction cost below $0.50, how can even the most advanced, high transaction companies tackle the “untouchables” and move to the next tier of excellence? With automation of merchandise vendors at 99% and 100% of freight billing automated – indirect spend has been the one anchor preventing them from achieving the desired level of automation.

  • Utilizing P-cards to eliminate 50% of indirect spend paper and leveraging internal systems to eliminate 20% of indirect spend paper
  • Partnering with Procurement to increase control and efficiency
  • Automating employee expense reporting to increase control, efficiency, and compliance

Bringing Purchasing And Payables Under A Common Leadership Structure

Sandy L’Herault, Director, Purchasing and Accounts Payable, Fairview Health Services

Several years ago, Fairview Health Services decided to end the struggle of the deficient and somewhat tenuous relationship between Purchasing and Accounts Payable by combining both functions under common leadership. They created a high performing and extremely effective team and it continues to evolve positively each year.

  • Building the value proposition: Why combine?
  • Obtaining senior leadership and audit buy-in
  • Managing internal controls, job descriptions and organizational layout

Leveraging Web Invoice And Rapid Pay For Increased Efficiency & Supplier Discount Optimization

Scott Engelking, Sr. Director, North American Shared Service Center and BPO, Eli Lilly and Co.

What happens when you’ve already maximized electronic transactions with existing tools yet still have too much paper? For Eli Lilly, the P-card worked well for low volume suppliers while traditional EDI, eCatalog and Excel billing were ideal for high volume suppliers. The implementation of web invoice and its continued expansion allows the company to e-enable an “inbetween” group of suppliers that was generating the bulk of the remaining paper and manual transactions. Lilly also leveraged the North American hosted Web Invoice tool to implement Rapid Pay for increased supplier discounts.

  • Reducing paper invoices by over 80% to reach 97% electronic status
  • Increasing discounts by 300% and reducing supplier collection costs by up to 40%
  • Evaluating Web Invoice for U.S. vs. OUS markets and internal solutions vs. leveraging outside providers

Leveraging New Age Automation To Capture Contract Terms In POs And Invoices

Melonie Humphreys, Director of GNFR Accounts Payable and Workflow Solutions, Walmart

With many companies having strategically squeezed costs out of their suppliers, ensuring that these negotiated terms are incorporated into SLAs, invoices and other automated systems is a major undertaking, especially since a failure to do so can end up in making erroneous payments. In this session, you will learn how to:

  • Leverage next generation SRM and SCM enterprise management tools to drive process efficiencies across highly competitive negotiation markets and drive working capital
  • Provide effective internal controls for managing new changes to supplier contracts and capturing negotiated savings
  • Evaluating new technologies and integrated organizational processes that will maximize these technologies, including converting vendors to e-Payment

Agenda, day 2

Free Cash: Building And Sustaining Focus On Improving Cash Flow With A Company-Wide Change Management Framework

Stephen Kunz, Director, Corporate Finance, GlaxoSmithKline

GlaxoSmithKline has made improving working capital efficiency a key priority as an essential part of their growth and diversification strategy. Becoming more ‘lean’ in the turnover of their working capital has released significant cash for reinvestment in research and development, and for investment in acquisitions and other business development opportunities. It also helps to simplify processes and reduce costs by shining a light on inefficient and non-value-added activities that can be improved or eliminated.

  • Partnering with commercial teams and transaction processing centers globally
  • Delivering cash benefits of >USD $3.2b, 16-day lower DSO and 26-day higher DPO
  • Building a “Center of Excellence” of world knowledge and skill resources supporting front-line order to cash and procure-to-pay improvements

Driving Sustainable Efficiencies In PCard Programs

David Peterson, Vice President of Productivity, OSI Restaurant Partners

With a successful Pcard program at the 2 year mark, OSI Restaurant Partners is executing the second phase of our program by targeting transactions that represent 22% of monthly invoices in our restaurants. OSI has developed a clear vision to capture this spend through detailed analytics, a sound business case that includes efficiencies for Corporate and Field resources, and a robust change management program that engages our field Partners and suppliers. By leveraging the expertise of our PCard program provider, and working closely with Accounts Payable, OSI will continue to refine and execute a strategy that captures spend from existing suppliers, and onboard new suppliers identified through our strategic sourcing programs. Topics will include:

  • Analysis required to ensure PCard program was aligned to achieve the highest level of efficiency during initial launch, and ongoing analysis to grow the volume and reduce transaction costs
  • Development of a sound “change management” program that provides clear direction to end users and suppliers, and leverages PCard reporting to enforce usage
  • Program sustainability and growth strategies to ensure PCard features are maximized and aligned with purchasing strategies

The Changing Role of AP in the P2P Work Stream

Andre Hale, Director, Accounts Payable, Disney Worldwide Shared Services, The Walt Disney Company

AP shops are moving from transactional excellence to value-add through cash management, vendor management, spend management, contract management and much, much more. But how do these changes in AP affect Procurement and the end-to-end P2P work stream?

  • Leveraging business intelligence; using metrics more effectively to manage business and communicate value of shared services
  • Implementing an effective segregation of duties and delegation of authority policies and processes
  • Maturity levels – tips on getting to the next level in adding value

Creating A Seamless P2P Organization Out Of Multiple Business Processes And Technologies

Jaime Morea Strumberger, Group Manager, Procurement Process and Technology, MillerCoors

Following on from the joint venture formed in 2008 by the two global adult beverage powerhouses, SABMiller and MolsonCoors, MillerCoors continues to streamline policies, people and technology across two separate companies to ensure that processes like P2P runs as smooth as its beer tastes.

  • Engaging the business decision makers and budget holders across all of the different brands and bringing them together around standard requirements and suppliers
  • Moving toward a negative Cash Conversion Cycle by effectively receiving payment from customers on goods before paying the suppliers
  • Managing proactively, executing with discipline and actively managing the change process

Building On The Value Proposition For P2P

Michael Daranyi, Manager, Budget Planning & Analysis, UniSource Energy Corp.

You already know the benefits of a robust P2P program; otherwise, you probably wouldn’t be reading this. But does your staff? Change hasn’t been simply about aligning people with the processes but in communicating the value of change. Without the buy-in from all stakeholders, not just senior management, your program’s success is limited. To reach its full potential, P2P needs to be clearly defined so that everyone is on board.

  • Process mapping, budgeting and analysis of The Good, The Bad and The Ugly across Purchasing and Payables
  • Drafting a charter and corporate-wide mission statement: What does P2P mean for us?
  • Internal compliance: Understanding the use of tools necessary for change

Maximizing Corporate Profits With Strategic Supplier Management

Cynthia Villaire, Category Manager, Development & Procurement, Bacardi U.S.A. Inc.

To unlock the hidden value from within your master vendor file and to make these suppliers do more for you each year, companies are always searching for new and innovative ways to rationalize a vast supplier universe into a select few that will, in the end, make a greater impact on the bottom line. Bacardi has taken this one step further by assigning in-house “experts” with specific strategic suppliers that in turn yields greater soft dollar cost savings and more efficient use of staff resources.

  • Securing high value agreements by leveraging supplier management expertise
  • Managing supplier shipping with a custom-tailored order management program
  • Measuring supplier performance through a combination of internal quarterly reviews and KPIs

Ask The Experts: Cashing In On Quick Wins For Your P2P Program (Interactive Session)

You ask the questions, we provide the answers. During the course of the conference, drop your questions off in our fishbowl located at the Registration Desk and we’ll choose 30 at random to be answered by our panel of experts.

  • Control
  • Processing Functions
  • Relationships and Responsibilities
  • Tax and regulatory issues
  • Technology
  • T&E
  • P2P and Cloud Computing

Panelists:

  • Andre Hale, Director, Accounts Payable, Disney Worldwide Shared Services, The Walt Disney Company
  • Stephen Kunz, Director, Corporate Finance, GlaxoSmithKline
  • David Peterson, Vice President of Productivity, OSI Restaurant Partners

Who Will Attend?

VPs, Directors and Managers involved in:

  • Purchasing/Procurement/Sourcing
  • Accounts Payable
  • Supply Chain Management
  • Information Systems/Solutions
  • Warehousing/Distribution
  • Logistics
  • Contract Management

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