How Automation is Driving Strategic Sourcing Transformation at Citi

Transcription

1 How Automation is Driving Strategic Sourcing Transformation at Citi Michael Krassos SVP Strategic Sourcing & Procurement Services Procurement Systems / Applications Management July 2012

2 Agenda Who We Are History of SAP Sourcing Usage Current State / Summary Modules used Projects, RFx, Auction, Contracts Metrics Goals, Challenges, & Opportunities Procurement s Top Priorities Lack of End-to-End Integration Contract Lifecycle Management Vision Procurement Systems Priorities Implementation Lessons Learned 2 7/31/2012

3 Who we are - Citi 3 7/31/2012

4 Who we are SS&PS Institutional Businesses Consumer Businesses Ops & Tech Suppliers 100+ Countries Regional CoE CLM RFX/Auction Strategic Sourcing & Procurement Services 800+ Employees in 55 Countries Largest hubs in NYC and Tampa serving NAM, London serving EMEA, Singapore serving APAC, and Mexico City serving LATAM Applications Management Procurement Systems Program Management 6 employees +1 Consultant BAU support (L1 and L2) for issues Subject Matter Expertise for Projects / New Development / Solutions Project Management for optimization, integrations, and enablement efforts SAP IT Development, Hardware, Software, L3 Support 4 7/31/2012

5 History of SAP Sourcing Usage - Current State / Summary General Goals Management visibility into sourcing activity Standardized metrics and reporting Save time with sourcing process automation ti Meet all risk and compliance requirements through standard practices Collaborate with partners Deciding Factors Custom reports Multi-language capability Collaboration (including discussions/chat) i Document attachments Contract generation Pro and Con - Highly configurable and customizable application Workflow, alerts, notifications ( & workbench) Capture, Link, and Report Planned / Forecasted / Actual Projects and Saves 5 7/31/2012

6 History of SAP Sourcing Usage - Projects Manage sourcing events Drive sourcing best practices through projects Risk Mgmt & Compliance Central repository & standard reporting Focus on tracking forecast and actual savings 6 7/31/2012

7 History of SAP Sourcing Usage RFx/Auction Generate additional savings through erfx and eauction 7 7/31/2012

8 History of SAP Sourcing Usage Contracts Currently utilized as repository only 8 7/31/2012

9 History of SAP Sourcing Usage Contracts (Search & Report) Robust search and report functions enabled: 9 7/31/2012

10 History of SAP Sourcing Usage Contracts (Customizations) Requester Information: Contract Type Hierarchy: Organizational Hierarchy to isolate access 10 7/31/2012

11 History of SAP Sourcing Usage Contracts (Customizations) Software Asset Tracking 11 7/31/2012

12 History of SAP Sourcing Usage Contract Lifecycle Challenges Entitlement Regulation, managing risk & compliance results in need for multiple roles/groups to access contract information Although centralized Procurement function, pockets of users managing contracts Provide access only to what is required (by Function, Commodity, Region, Country, Business Regional CoEs creating contract records on behalf of Contract Managers Result: Complex entitlement model Inefficient, Manual Contract Generation / Signature Paperless Contract Relationships beyond 2-level hierarchy 12 7/31/2012

13 Metrics # of Active internal users: 1,716 # of Active registered Suppliers: 15,630 # of Active Contracts: ~25,000 # of Auctions Completed in 2011: 138 # of esourcing RFx s recorded in 2011: /31/2012

14 Goals, Challenges, & Opportunities - Procurement s Top Priorities 14 7/31/2012

15 SAP Contract Lifecycle Management Value Proposition Reduce corporate risk Standardize di contract t processes and language Gain visibility to contract commitments Accelerate time-to-value of contracts Reduce creation cycle times Streamline stakeholder engagement Realize full value of contracts Realize hard-won sourcing savings / revenue Identify new business opportunities 15 7/31/2012 Graphic courtesy of SAP

16 Achieving Best in Class Procurement Need to Optimize, Enable and Integrate Procurement s Processes and Tools Create Operational Efficiencies Ensure Visibility Operational Procurement Spend Analysis CPO Contract Management Strategic Sourcing Identify Savings Leakage Eliminate Lost Savings Opportunities 16 7/31/2012

17 Contract Lifecycle Management Vision Demand Aggregation Spend Analysis Data Enrichment Spend Data Collection Reporting Workflow / Control Points Contract Performance Non-contract activities Tool Utilization Data Centralization Risk Management Analyze SS&PS Adoption Procure Business Requirements Collection Project Task Management Collaboration Supplier Registration Supplier Qualification Supplier Selection Risk Management RFI / RFP Tender Creation Tender Publication Bidding, RFQ, Auction Contract Creation Collaboration Review Award / Execution Document Management / Archive Contract Leakage / Discover Connect Collaborate Pricing Pricing / Schedule Register Payment Terms Compliance Catalog Renewal Contract PO Fulfillment Terms 17 7/31/2012 Compliance

18 Procurement Systems Priorities Program Goal Optimize, enable and integrate Procurement s processes and tools with the Procurement Contract Lifecycle Management (CLM) framework and standardize sourcing process globally to manage Procurement efficiently and effectively CLM Vision goes beyond contract document management and focuses on all the aspects of the lifecycle: Sourcing - Business requirements, discovery and negotiation Contracting - Collaboration, creation, award and execution Procurement - Catalogs, contract Purchase Orders Payment - Contract payment terms, contract leakage, price auditing Management - Contract performance, risk mitigation, compliance Analysis - Demand aggregation, spend analytics Strategy Integrate and extend system capabilities to enable an end-to end solution 18 7/31/2012

19 Procurement Systems Priorities Cont Developed CLM program with goal to Optimize, enable and integrate Procurement s processes and tools with the Procurement Contract Lifecycle Management (CLM) framework and standardize sourcing process globally to manage Procurement efficiently and effectively Optimize Enable Integration Implement standard system solutions for processes Retire zero valueadd activities, remove fields, reports, etc Automated Procurement Engagement Model Contract Generation and Negotiation / Electronic Signature Contract ID Supplier ID BAW/Reporting 19 7/31/2012

20 Implementation Lessons Learned Management accountability and support Clear definition of goals and priorities Define goals, develop process, then implement solutions Citi operates in a complex environment To extent possible develop processes; data elements, roles, reporting, etc before implementation Patience from management in complex environment When implementing solution must balance system capabilities with trying to meet business need Documentation!! 20 7/31/2012