Christian Lanng Delivers Keynote at ProcureCon Indirect West
Coupa - Chief Spend Officer 2.0 - ProcureCon West 2012
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Transcript of Coupa - Chief Spend Officer 2.0 - ProcureCon West 2012
Considerations for the Chief Spend OfficerAmplifying Procurement’s Role
Tony Wessels Vice President
Spend Optimization
Customers HighlightsRetail Finance Mfg. Health
CareHigh Tech
Change
Business Drivers
Growth Strategy
Cultural Shift
OperationalTransition
Business Drivers
Growth Strategy
Cultural Shift
OperationalTransition
“It’s The Economy Stupid”
Fortune 500: Revenue Growth
Stubbornly low / negative revenue growth rate
Fortune 500: Profit Growth
Erratic profit growth
Growth Strategies
Acquisitions
Geographic Expansion
Agile Spend Integration
Plan for M&A activity
Proactively integrate acquisitions quickly
Bring distributed locations under management
Case Study
21 Plants 3 Weeks
35% Savings
What can you do?
Learn your company’s growth strategies
Investigate spend savings During M& A activity
Geographic expansion
Be proactive. Reach out to other organizations
Business Drivers
Growth Strategy
Cultural Shift
OperationalTransition
User Adoption Drives Savings
User Adoption
Spend Under Management
Increase Savings
85%
9%
Culture of Responsible Spending
Your Users• Remote workers • Mobile• Short attention span
Your TeamPolice: c.1530, at first essentially the same word as policy
Conductor: c.1520s, "one who leads or guides"
Be A Conductor
Make it easy
Home Experience
Home Experience
Work Experience
Opening A Req
1. Account Number
2. Item No
3. Quantity
4. Unit Cost
5. Extended Cost
6. LT (Line Type)
7. Desc 1 (Description 1)
8. Desc 2 (Description 2)
8. G/L Date
9. Trans UOM (Transaction Unit of Measure)
10. Purch. UOM (Purchasing Unit of Measure)
11. Last Sts (Last Status)
12. Subledger
13. Subledger Type
14. Next Sts (Next Status)
Complete the following fields:
Make it mobile
world population 6.8 billion
5 billion cell phone users
85% of children own a phone
73% own books at home
Source: National Literacy Trust
“In the last twelve months, customers around the world have ordered more than US$1 billion of products from Amazon using a mobile device," – Jeff Bezos, founder and CEO of Amazon.com (July 2010).
Culture of Responsible Spending
• Convenient & Familiar
• Reward them for their frugality
• Crowd source ratings
Case Study
70 hat options to 4
25 suppliers
25 emergency P.O.s only from ERP
to 2
What Can You Do?
Rethink your role – How can you conduct vs. police
Make it frictionless Are you making it easy for users
Eliminate super users
Implement a reward system for being frugal
Leverage their collective wisdom Supplier ratings
Business Drivers
Growth Strategy
Cultural Shift
OperationalTransition
Old hierarchies
How We Spend
What Can You Do
Evaluate effectiveness of your workflow. Is it based on hierarchy or function?
Establish management by exception where possible to streamline efficiencies
Automate paper processes for increased flexibility
Summary
Learn your company’s growth strategies. Are there opportunities for spend savings during M&A or branch growth?
Assess your corporate culture. Be a catalyst for creating a culture of responsible spending.
Evaluate your company’s organizational structure. Are your processes aligned with function or hierarchy? Are there opportunities to amplify your spend power?
Evaluate technologies that drive user adoption for increased spend management and increased savings.
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