1. TAMING INDIRECT SPEND Role of Procure-to-Pay Technology

2. Today’s Presenter Vaibhav Pani Senior Solutions Consultant (ANZ) Zycus Inc. Vaibhav has been handling the presales responsibility for Zycus since nearly 4 years and has been instrumental in helping large global organizations based in the ANZ region to enhance their upstream and downstream procurement processes with Zycus’ procurement performance solutions.

3. Comprehensive Source to Pay Suite

4. PROCUREMENT LANDSCAPE & INDIRECT SPEND INFLUENCE

5. Characteristics of Indirect Spend Large supplier base Low volume purchases Diverse stakeholder spread across the organization Frequent usage

6. Segmentation of Procurement Landscape High Spend & High Volume Commodity Many Vendors Can Leverage Competitive Market Key To Core Business Key to core business Vendor dependency Price controlled by government No true substitutes Not key to core business Many Vendors Large usage from numerous end users across the organization Low price negotiation levers Price controlled by market movement HIGH Supply Market Complexity Business Impact Leverage Non - Critical Strategic Bottleneck LOW

7. Segmentation of Procurement Landscape High Spend & High Volume Commodity Many Vendors Can Leverage Competitive Market Key To Core Business Key to core business Vendor dependency Price controlled by government No true substitutes Not key to core business Many Vendors Large usage from numerous end users across the organization Low price negotiation levers Price controlled by market movement HIGH Supply Market Complexity Business Impact Leverage Non - Critical Strategic Bottleneck LOW Green field for indirect A mix of direct and indirect – easier to capitalize Mainly indirect – Very difficult to capitalize Mainly direct expenditure

8. Poll Question - Indirect spend influence What percent of indirect spend does your organization influence currently? a)< 40% b)40 - 60% c)60 – 80% d)> 80% e)Not aware

9. Indirect Spend Influence Almost two-thirds of procurement organizations influence less than 70% of indirect spending Source – Zycus P2P Benchmark Study Part1 X axis - % of indirect spend influenced Y axis - % of respondents

10. Proven Sources of Savings – Indirect Spend Negotiated savings Compliance to budgets Efficient back-office operations Early payment discounts Detailed insight into spend

11. INDIRECT SPEND KPI’S – BENCHMARK STUDY

12. Contract compliance – Benchmark Study Source – Zycus P2P Benchmark Study Part1 Respondents Indirect Spend

13. Budgetary Compliance – Benchmark Study Source – Zycus P2P Benchmark Study Part1 Respondents Indirect Spend

14. Capturing Early Payment Discount – Benchmark Study Source – Zycus P2P Benchmark Study Part1 Respondents Indirect Spend

15. Indirect spend with detailed spend visibility – Benchmark Study Source – Zycus P2P Benchmark Study Part1 Respondents Indirect Spend

16. ROLE OF PROCURE-TO-PAY TECHNOLOGY

17. Poll Question How does your organization currently manage your Procure-to-Pay processes? 1.Manual 2.ERP based 3.Cloud based best-in-class P2P solutions 4.Not aware

18. How Procure-to-Pay solution can help? “P2P solutions can deliver tremendous return on investment for private- and public-sector organization through improved compliance to contracts, quicker order processing cycle times and better adherence to budget.” “Build a Compelling Procurement Business Case for Indirect Procure-to-Pay Technology” -

19. Managing Indirect Spend with next generation P2P Procurement cycle time reduction Enhanced level of governance Standardization of procurement framework for indirect spend

20. Managing Indirect Spend with next generation P2P Procurement cycle time reduction Cross functional coordination Easy to use interface Minimizing data entry by all functions Quick and Easy data access for analytics Higher adoption

21. Back-Office Operations Efficiency

22. Managing Indirect Spend with next generation P2P Enhanced level of governance Inclusion of relevant stakeholders through approval workflows Minimize maverick spending with enhanced contract and budgetary compliance Exceptions automatically highlighted

23. Managing Indirect Spend with next generation P2P Standardization of procurement framework for indirect spend Enterprise-wide contracts with restricted supplier base Maximizing number of categories with each supplier Establishing budgets, P-card policies, early payment discounting structures Establishing the entire indirect procurement landscape

24. Approaches for standardization eCatalog Punchouts Free text Commercial arrangements are emulated in terms of end- user friendly catalogs Give requisitioners an experience of an online consumer Usually setup with strategic suppliers with established contracts Large suppliers with eCommerce websites who cater to a large number of indirect categories (Eg. Staples, Officeworks, Dell) Services, one-time buys, OEMs Major portion of purchasing processes COMPLIANCE BLINDSPOT – DIFFICULT TO STREAMLINE PROCESSES!

25. Spend at risk – by the numbers

26. Evil of free form requests

27. Ways to combat the evil of free-form requests Category classification at the point of requisition – Needs to be accurate! Category specific forms for avoiding back-and-forth between requisitioners and buyers Category specific approval workflows for inclusion of relevant stakeholders Category specific budgets Category specific tolerance levels for proper invoicing – Making life easy for AP! Category specific account assignment – Making life easy for AP! Category based spend analysis

28. Enforcing compliance by guiding end users

29. Next Generation P2P solution advantages Makes your search “Fast” Makes selection “Fun” Makes navigation “Easy” Makes checkout “Right”

30. Technology Enablement – A snap shot Easy to use consumer-like experience for requisitioners

31. Technology Enablement – A snap shot Easy to use consumer-like experience for requisitioners Actions via mobile

32. Technology Enablement – A snap shot Easy to use consumer-like experience for requisitioners Emulate simple and complex business processes Actions via mobile

33. Technology Enablement – A snap shot Easy to use consumer-like experience for requisitioners Emulate simple and complex business processes Category specific recommendations and preferred/contracted supplier recommendations Actions via mobile

34. Poll Question What according to you is the biggest challenge in implementing a procurement enhancement solution? 1.Internal Resistance to Change 2.Weak Interest/support from stakeholders 3.Inadequate technology 4.Weak Interest/support from exec management 5.Poor information infrastructure 6.Poor integration with other functions 7.Inadequate professional skillsets 8.Other

35. Change Management – The biggest roadblock Change management among spend stakeholders is the number one obstacle for enterprise procurement organizations in Australia/New Zealand companies. Source - Procurement Performance Pulse Report ANZ

36. Dealing with Challenges in Procurement Automation Challenges Lack of Senior Management Support Dealing with challenges Creating a value driven business case to persuade senior management

37. Dealing with Challenges in Procurement Automation Challenges Change Management across the user base Dealing with challenges Having easy-to-use, intuitive, wizard driven software solutions

38. Dealing with Challenges in Procurement Automation Challenges Budgetary Restrictions Dealing with challenges Phased approach to immediate issues to self fund future initiatives

39. Dealing with Challenges in Procurement Automation Challenges Niche Business Requirements Dealing with challenges Re-evaluate internal processes & scope for standardization to best- in-class processes

40. Dealing with Challenges in Procurement Automation Challenges Lack of Visibility into internal processes Dealing with challenges Identifying gaps & opportunities for improvement with the help of third party/internal audits

41. TECHNOLOGY ENABLEMENT CHECKLIST

42. Technology Enablement Checklist What are the pain points? How do you tackle these pain points? What is going to be your evaluation strategy for the solution provider? The functionalities are good. But does it deliver value? Are the features practical? Do you have strong management backing? How will the solution interface with the existing IT ecosystem? How Change management strategy and migration from existing processes will impact everyone?

43. UPCOMING EVENTS

44. Upcoming demo connects

46. Thank You