Source-to-Pay outsourcing services from IBM

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1 Source-to-Pay outsourcing services from IBM Flexible Source-to-Pay outsourcing options help optimise savings and enable smarter spending Highlights Provides greater visibility to reduce expenses and better collaborate with suppliers Optimises end-to-end source-to-pay processes to help significantly reduce spend and drive compliance savings Leverages our integrated global delivery model to drive flexibility, performance improvement and operational dexterity To mitigate the impact of a challenging global economy, companies are taking a new look at their source-to-pay (S2P) processes for ways to drive cost improvements and operational efficiencies. Creating a smarter supply chain roadmap means today s S2P organisations need a strategic approach to sourcing and procurement that delivers greater savings, enhanced visibility, and consolidated globalised processing with increased control and innovation. During this time of unprecedented economic pressures, procurement executives across the globe are exploring a variety of outsourcing and shared services solutions. Well-established as a highly effective means to help reduce costs; achieve greater leverage with suppliers; and improve control, compliance and user satisfaction, outsourcing your S2P processes accomplishes all of this while helping you avoid capital expenditures. IBM S2P Services IBM s business process outsourcing (BPO) services and solutions help standardise, consolidate and optimise the full source-to-pay (S2P) footprint, including sourcing, procurement and payment processes. 1

2 Our services are flexible and designed to help meet your specific business needs, whether you choose a single-point or end-to-end solution from IBM. Whether you need strategic sourcing services that allow you to capitalise on IBM s sizable managed-spend base, our world-class procure-to-pay services to optimise these processes, or both, we can tailor a strategy to match your organisation s unique requirements. Optimising processes for reduced spend and better compliance Our S2P solutions are designed to build a responsive, integrated supply chain that operates in virtually real time with suppliers, partners and customers helping you to continuously identify savings opportunities and better collaborate with suppliers. From the outset, IBM works alongside your team to understand your business goals and set the scope, approach and timing of your outsourcing engagements. Together, we develop a detailed business case, transition, and change management plan that meets your industry-specific needs. This approach helps us identify opportunities to commit to specific business outcomes. IBM s multidimensional approach to S2P outsourcing enables your business to leverage scalable solutions that positively impact bottom-line results and top-line growth. In fact, we have been able to help companies consistently: Reduce annual procurement spend by 3 to 7 percent Drive contracted sourcing savings of 5 to 12 percent Achieve consolidation benefits with greater success IBM s robust S2P infrastructure, respected professional skills and end-to-end management of business processes can help you gain control over your procurement spend. Our solutions are backed by intelligent monitoring technology and an embedded analytics framework that provide additional insight and greater visibility into your spending patterns. IBM manages procurement spend worth more than US$50 billion under rigorous control. Combined with our global supplier network, these capabilities can help you realise significant cost savings and rapid time to value. By leveraging our worldwide supplier relationships, we can streamline your internal operations, deliver cost savings and give you the flexibility to adapt to even anticipate volatile supply markets. Consistent process execution and an award-winning governance model are designed to boost your organisation s compliance with procurement policies and end-user satisfaction with the procurement organisation. Enhanced supplier relationships, combined with the ability to proactively identify future and past spending trends, enable greater business agility and resiliency. We emphasise compliance through a comprehensive control and real-time monitoring process. Our proactive training and certification for buyers coupled with effective separation of duties, regular reporting of control-point measurements, corporate audit programs and unique fraud detection practices help you to better manage risks and reduce errors in S2P operations. 2

3 Using IBM s proven EPIC methodology to power your services Business process innovation built on a foundation of our proven, end-to-end methodology is at the core of our service delivery. We simplify, standardise and then optimise key sourcing and procurement processes using business process reengineering (BPR) techniques and a common taxonomy. Using our Enterprise Process Innovation Continuum (EPIC) methodology, we capture granular data, analyse key work drivers in real time, and continuously drive visibility and actionable insight across your processes, human activities, and technology. EPIC helps provide your enterprise with meaningful intelligence across your end-to-end business processes and retained activities extending to single-point solutions. This translates into ongoing process efficiency, quality and effectiveness for a distinct competitive advantage. EPIC drives process innovation and continuous improvement, enabling the implementation of best practices for enhanced business agility that moves you toward top-quartile performance. Using IBM WebSphere Business Modeler process maturity models, EPIC allows us to quickly identify areas for improvement in process execution. Our unique patent-pending Time Volume Capture (TVC) technology dynamically pinpoints the root causes of poor process health by tracking in real time the availability, performance, and behavioural patterns of every delivery resource at highly granular levels. EPIC s innovative technology-based tools automate and standardise sourcing and procurement transactions to dramatically drive up productivity and drive down manual labour and costs so you can do more with less. With standardised processes in place, you can more easily implement global process ownership while better managing compliance, controls and risk. This comprehensive approach combined with workflow tools that enable near-real-time communication with suppliers helps you streamline payment processing strengthening those relationships and increasing your buying power. Assess process maturity and analyse performance in real time EPIC Enterprise Process Innovation Continuum Implement innovative technologies and build quality into processes Evolve best practice designs against IBM and Industry benchmarks, extending innovation Figure 1: Enterprise Process Innovation Continuum (EPIC) methodology 3

4 Taking advantage of advanced analytics to compete more effectively Our solutions are built on an advanced analytics framework embedded across every process, enabling us to continuously refine, improve and optimise your sourcing and procurement operations. IBM s process experts apply best-in-class analytics and innovative technology to our service delivery to improve process performance, predict customer behaviour and enable you to leverage better discounts from our vast supplier network. Cross-client analytics allow us to further detect critical intelligence about your business, so you can quickly identify and respond to growth opportunities and marketplace conditions. Our advanced analytics capabilities, with constant measurement and monitoring, help enable greater control over spending and compliance. By leveraging IBM s vast supplier base, innovative technology and proven expertise, you can better manage your procurement spend and increase buying power. As a result, we continuously drive unique and forward-looking insight and operational dexterity to your business. Our services are backed by IBM s multibillion-dollar analytics investments and an ongoing aggressive acquisition strategy. Our award-winning joint governance model brings a flexible, dedicated approach to client relationships that aligns expectations, ensures seamless operations without interruption, and enables your organisation to compete more effectively. Leveraging IBM s globally integrated delivery model to optimise operations IBM s integrated infrastructure, advanced technology, highly trained process experts and well-established global relationships allow us to provide consistent excellence in our service delivery. With over 20 global and regional centres, our process-led delivery organisation supports more than 40 languages and offers numerous options for local, nearshore, and offshore delivery to match your unique business needs. Staffed by highly qualified sourcing and procurement specialists, our delivery organisation gives you access to vast industry expertise; most have accounting certifications and are trained in Lean and Six Sigma techniques. As we continually evaluate new delivery locations, we also monitor local labour rates and assess skills availability and location risk. With our ability to easily shift work across centres, this evolving global footprint delivers consistency, ongoing flexibility and performance improvements to your business. Why IBM? IBM brings a total service value derived from our ability to listen, understand your business needs, then assemble and deploy the full breadth and depth of our considerable resources and create economies of scale and end-to-end process harmonisation for your enterprise. We are committed to helping you build a responsive, integrated sourcing and procurement organisation that unlocks innovation and enables easier compliance management. 4

5 Building on decades of experience developing and managing business processes for global organisations, including our own, IBM Global Process Services provides a range of services to meet the sourcing, procurement and payment requirements of virtually every business environment. Using a proven, collaborative approach, IBM partners with your business to deliver sustainable S2P solutions implemented within an integrated, end-to-end operating structure to provide flexibility and scalability across multiple sites, processes and organisations. IBM offers consultative expertise and collaborative governance, proven EPIC methodology, and an established global infrastructure. This unique combination of capabilities has helped propel companies to top performance more easily and faster than they could do on their own. Because our EPIC methodology fosters process ownership, we are able to help businesses like yours smoothly and incrementally adopt standards enterprise-wide. Built on a foundation designed to deliver advantages beyond short-term cost reductions, our solutions also provide sustainable cost benefits that help drive improved supplier relationships, spend and compliance savings and governancedriven predictability. Our embedded analytics framework provides actionable business insight that can give your organisation greater resiliency and significant performance advantage and enables us to commit with confidence to expected business outcomes. A global leader and trusted adviser We know that choosing an outsourcing partner can be challenging, which is why we have worked hard to become a respected global leader and trusted adviser in the S2P industry. With the world s largest supply chain management consulting functions, IBM has repeatedly delivered industry-recognised results. Not only are our services consistently recognised by independent research organisations including IDC, Everest and Gartner, but we also continually push the boundaries of innovation. Our goal is to deliver more than simple cost improvements and ensure you remain focused on your brand and market differentiators so you can achieve and maintain competitive advantage. IBM s unique combination of collaboration, flexibility, and unparalleled expertise is based on our experience, leading-edge innovation, world-class technology, and an established global footprint all of which attest to our long-term commitment and ability to help you attain and sustain superior business performance. 5

6 For more information Whether you are considering outsourcing your procure-to-pay or sourcing operations or want to leverage the full capability of IBM through a complete S2P solution we invite you to continue the discussion and discover how other global enterprises are achieving significant, ongoing savings with IBM s procurement solutions. To learn more about the IBM Global Process Services for S2P outsourcing, please contact your IBM marketing representative or IBM Business Partner, or visit our website: ibm.com/bpoutsourcing/au ibm.com/scmoutsourcing/au Alternatively, askbpo@au1.ibm.com or call: Australia: New Zealand: 0508 ASK IBM ( ) Copyright IBM Corporation 2012 IBM Global Services Route 100 Somers, NY U.S.A. Produced in the United States of America January 2012 All Rights Reserved IBM, the IBM logo, and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol ( or ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at Copyright and trademark information at ibm.com/legal/copytrade.shtml. Other company, product or service names may be trademarks or service marks of others. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. The customer is responsible for ensuring compliance with legal requirements. It is the customer s sole responsibility to obtain advice of competent legal counsel as to the identification and interpretation of any relevant laws and regulatory requirements that may affect the customer s business and any actions the reader may have to take to comply with such laws. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the customer is in compliance with any law or regulation. Please Recycle MBS03017-USEN-01 GL_