sapphirenow; was a great platform for SAP Procurement customers to showcase, how an SAP Procurement LOB solution has helped transform their Sourcing, procurement and SRM strategies in multiple ways. In this video, we will try and emphasize how United Utilities has leaped in Procurement transformation from moving their manual intense Contract, Sourcing & Procurement process to a fully automated electronic process with SAP Sourcing OnDemand.
The line of the show for me from Colette Conroy was SAP Sourcing brings United Utilitiesone step nearer to one source of truth :ONE DATA in ONE PLACE
Stop at time-stamps to emphasize what Mark Ellis – SVP of OnDemand LoB sourcing, SAP speaks
0:35 – Mark Ellis introducing Collette Conroy from United Utilities
1:15 – Referencing CPO rising about the concept of Cost Savings being the top priority 2011 & for next 3 years (Ref SPO Rising 2011, Ardent Partners LLC)
2:00 – SAP Sourcing is broken into 3 areas Strategic Sourcing, Contract lifecycle Management, Supplier Management
2:35 - Introducing Adobe echo Sign for Digital signatures with SAP CLM Contracts
2:50 – With Supplier Management feature define KPI and measure Supplier performance, Collaboration is key Contracts, Projects, RFP, Auctions
Stop at time-stamps to emphasize what Colette Conroy – Lead Contract formulator (United Utilities) speaks
4:05 – Collette Conroy emphasizes that she had no IT experience before implementing SAP Sourcing/CLM at United Utilities
4:20 – this means that the implementation with the product was so seamless that anybody inside UU could have done it J
4:35 – An introduction into UU, their spend and what they spend on (a company that deals with Waste Water treatment in the North West of England )
4:50 – Bring 7 Million customers clean water take waste away, bringing 3.2 Mn households 7 Mn Customers, 400K business clean water
5:00 – to do this, they are heavily regulated, OFWAF pumps the budget to help achieve this, invested more than 3Bn pounds into Waste Water treatment (about 5.6 Bn US $), they are under the utility directive, EU laws govern and pose challenges
5:55 – A snapshot on the spend categories leans heavily on construction contracts, Framework contracts, Asset Management, a cluster of big pieces and little pieces of spend
9:12 – Prior to SAP Sourcing ondemand there was a disparate landscape to manage the spend, as a buyer it was extremely difficult to manage with Spread-sheets..a problem with different places, different areas
10:15 – Prior to SAP Sourcing OnDemand, it was Paper Strategy, Paper Framework Contract, Transfer the information into a DVD, download the information, calculate pricing, collaborate with contractors via e-mail, brain storm on a paper ledger, re-do the CD : IN A NUTSHELL, a MANUAL HEAVY PROCESS
12:30: Responding back to court, legal etc would be very critical to get back information that was part of the negotiation process
What has SAP Sourcing OnDemand done for United Utilities…Colette’s opinions continued?
13:01 – SAP Sourcing OnDemand has recued United Utilities from the paper heavy intense process to bring all bits and pieces together in one place electronically
13:20 – SAP Sourcing OnDemand out of the box + some customizations + development has made the system unique and seamless to use
13:30 – SAP Sourcing OnDemand went into upgrade 2 times, without hassle, single IT platform for Contracts.
14:01- Large part of the system is automated from Tender to award, with increased visibility, Automatic notification of slipped deadlines and reported
14:23 - Instead of having teams using CD and disposing them, now any scoring is done via the system score-card and some basic reporting
15:00 - Led to cost savings and led to hard savings on the bottom line
15:10 - Templates have made life structured and easy, what more can we ask for? To move from a system that was so heavy to something so methodical and structured
15:15 - Extending the solution to do pricing and quality part of the process to help make it a completely system driven approach from Tender to award
Future of SAP Sourcing OnDemand at United Utilities…Colette’s opinions continued?
16:00 - Integration of SAP Sourcing with SAP ECC 6.0 for taking P2P to the next level, expected to complete full integration by 2013.
16:20 - Trying to extend SRM to the platform, being evaluated and will be under the P2P road-map shortly.
17:25 - Use Auction feature to help solicit more competitive pricing for future state contracts.
The Summary at the 18th minute of what United Utilities achieved with the SAP Sourcing OnDemand implementation……Colette’s opinions continued?
Fair, transparent & Consistent way to procure good, services and works.
Reduced cost to serve.
Greater visibility into their savings.
Reporting facilities gives greater transparency and can be accessed easily.
SAP Sourcing brings United Utilities one step nearer to one source of truth – famous last words, ONE DATA in ONE PLACE