Transcription
Procure to Pay Process Overview DiagramUse supplier reports tosupport supplier sourcingUse preferred supplier reports toimprove supplier performanceCost Centre Managers InfluencedInfluence spending behavior with data from spendreports (actionable uppliersContracted,Set up,networked- CataloguePublished- Travel ApprovedPurchaseOrderCreatedTravelBookedGSKSupply ceivedreceived(inc.timesheets)2/3 waymatchingor invoiceapprovalPay for goods/services viacard at point of mentsreconciledSpendReported
Procure to Pay Processes and SystemsUse supplier reports tosupport supplier sourcingEmptoris oods/ServiceSourcedeSP,EBPTravelinkSuppliers - CataloguePublishedContracted,- Travel infoSet up,publishednetworkedConTrakRateTrakeSP/EBPGSK PurchaseTravelinkRateTrak (freighttransport sourcing)PurchaseRequisitionCreatedOrange PagesTalaris (future?)RequisitionApprovedUse preferred supplier reports toimprove supplier performanceJDEdwards/OB10/EDI/ASNInfluence spending behavior with data from spendreports (actionable reports)Cost Centre Managers omABCTrak(inc.timesheets)Supplier2/3 waymatchingor invoiceapprovalpCardsExpense CardsPay for goods/services viacard at point of saleSAP, InSite (Fieldglass) (end to end portedSupplierPerformanceReviewed
Procure to Pay Process with Opportunities/IssuesNo automaticcheck oncatalog priceVs actsSpend managementcan be retrospective rather thanprogrammedinto purchasingchoicesUse supplier reports tosupport supplier sourcingUse preferred supplier reports toimprove supplier performanceNo automaticcheck oncontract priceVs invoicepriceHigh rate of new (nonpreferred) suppliersadded to supplier master(about 300/mth : UK)Over 25% ofUK suppliersstill requirechequesCost Centre Managers InfluencedInfluence spending behavior with data from spendreports (actionable uppliersContracted,Set up,networked- CataloguePublished- Travel uctionSupplier MasterEstablishedOrdersRecords don’t alwaysCreatedmeet businessintegrity rulesGSKSupply uctionOrderscalled offSelect, requisitionsolutions notintegrated - breakpoints in processwhere transactionsabandonedProcess and tools tomanage supplier risk,increase assurance imesheets)e-SP accessedvia Orangepages link, dReceipting inUS mainly inJDE, not e-SPSuspenseaccountsused toallocatespend Vs reconciledSpendReportedPay for goods/services viacard at point of saleProductionOrderscalled offRates oftravelbookingviaTravelinkare low2/3 waymatchingor invoiceapprovalUK format ofp-Card datadrives reworkbefore it canbe input toExpense MapExpense maphas noactionable costcentres forMERPS andBEBOPNo view of crossfunctional spend(e.g. whenCorporate spendon behalf ofPharma)Compliancetrackingdifficult due tocomplexnature ofdeals (mayinvolve up to4 suppliers)
Procure to Pay Process - Opportunities with no priority for actionComplete Compliancetracking difficult due tocomplex nature of deals (mayinvolve up to 4 suppliers)Use supplier reports tosupport supplier sourcingUncodedproductionspend inMERPSRequirement for immediatepaymentsmean moreUse preferredsupplier reportstotype supplierimproveRemittancesupplier performancerecords createdCost Centre Managers InfluencedInfluence spending behavior with data from spendreports (actionable uppliersContracted,Set up,networked- CataloguePublished- Travel oductionOrderscalled offGSKSupply eived(inc.timesheets)2/3 waymatchingor invoiceapprovalPay for goods/services viacard at point of mentsreconciledSpendReportedProductionOrderscalled offSuspense accounts used toallocate spend Vs eOrderedfromSupplierUK format of p-Card datadrives rework before itcan be input to ExpenseMapNo view of crossfunctional spend (e.g.when Corporate spendon behalf of Pharma)
Procure to Pay Process Achievements for 200418% increase inpreferred suppliercompliance within R&DeSP (Ariba) rolloutUS/UK 2004Use supplier reports tosupport supplier sourcingeSP (Ariba) upgradecompletedSupplier Diversity - 88% combinedreduction in the amount of timerequired to generate and distributestandard monthly reports and adhoc reporting requestsExpense Map goes LiveNov 2004Reduction in eSP orderexceptionsUse preferred supplier reportstobestpracticeBDRimprove supplier performanceCost Centre Managers InfluencedInfluence spending behavior with data from spendreports (actionable uppliersContracted,Set up,networked- CataloguePublished- Travel /ServiceInvoiceReceivedreceived(inc.timesheets)2/3 waymatchingor invoiceapprovalPay for goods/services viacard at point of sale35% reduction in low value paper invoices ( 1000) per month48% reduction in low value paper invoices ( 1500) per ymentsreconciledSpendReported96% reduction in supplier master recordswhich do not meet business data integrityrules (UK)Orange pagesupgradedGSKSupply rak migrated to EWHP2P subpage, including “how to” gadget liveDecommissioned obsolete applications ChangeTrak, Fleet portal, Buying guide,Self service applicationsstandardised against selfservice enablers.
Procure to Pay Process Overview Diagram - Metrics26% of invoicesreceivedelectronically inthe UK, 67 (US)Sept 200466% of lab3% to 82% ofsuppliestransactionsoverUse supplier reportspurchasedtoviasupportsupplier sourcing e-SP 1500/ 1000usingpurchase ordersUse preferred supplier reports to(varies by BU) 1.772 M pcm(June) bidsavings throughePass (Target 4.5M pcm)23% ofinvoicesmatch firsttime (UK)73% of invoicespaid to terms.(UK) July 2004)86% of PO lineswith preferredsuppliers (nonR&D) (Aug 04)improve supplier performanceCost Centre Managers InfluencedInfluence spending behavior with data from spendreports (actionable uppliersContracted,Set up,networked- CataloguePublished- Travel ed offIn 2003 32% of spend waspreferred and contracted withsuppliers against 75% of spendwith preferred suppliers (Global3Q04)DistributionGSKSupply oiceReceivedreceived(inc.timesheets)2/3 waymatchingor invoiceapprovalPay for goods/services viacard at point of mentsreconciledSpendReportedProductionOrderscalled offTravelinkadoption rate Vs allbookings12% US,1.5% UK (June 04)26% (UK) electronicpayments (Sept 2004)Jan 03 - June 04 nonpreferred suppliers with 4 Tx with GSK:- 22% (514) by volume,- 78% ( 42M) by value
Procure to Pay 2004 - Projects OverviewePass-eSP linkage toguide employees toreverse auctions etcwhere appropriateSupplier performancemodule integration witheSP and Orange pageseSP/Orange pages spenddirection integration toincrease compliance.- Target a 15% increase inspend compliance withpagestoUse Orangesupplier Continuingrollout ofOB10(electronicinvoicing)Expense Map rollout toprovide accurate andfocussed actionablereportsIncrease scope of dataextracted from MERPS& BEBOP to getactionable cost centresCost Centre Managers InfluencedUse preferred supplier reports toimprove supplier performanceInfluence spending behavior with data from spendreports (actionable uppliersEngaged,Set up,networked- CataloguePublished- Travel ntrolimprovements- e.g. contractprices Vsinvoice pricesContract moduleenhancements, processimprovement and integrationwith eSP - increase insuppliers preferred andcontracted from 32% to 50%Talaris willprovideintegration offront voiceReceivedreceived(inc.timesheets)2/3 waymatchingor pendReportedSupplierPerformanceReviewedPay for goods/services viacard at point of saleSupport UK SFS Policy tostandardise on electronicpayments - increase inelectronic payments from26% to 50%Risk Trak - tool tohelp key suppliersmanager their risk
Procure to Pay Processes and Systems Goods/ Service Sourced Goods/ Service Required Requisition Approved Purchase Order Created Goods/ Service Ordered from Supplier Goods/ Service ec iv d (inc. timesheets) Invoi ce received 2/3 way matching or invoice p app roval Supplier paid Card ayments econ il d Pay for goods/services via card at point of .
