managing services spend. provade proprietary and confidential. no redistribution without permission....

Managing Services Spend

Provade Proprietary and Confidential. No Redistribution Without Permission.

Oracle’s BPO Program

Definition: Business Process Outsourcing (BPO) is the outsourcing of a related set of business processes to an organization other than your own.

Not just IT or apps management services


BPO Powered by Oracle

“BPO Powered by Oracle” places Oracle applications, technology and ancillary services “under the hood” of BPO Provider service offerings

Strategy

To help BPO providers reduce risk, lower cost and improve flexibility in the services offered to their customers and provide “BPO Powered by Oracle” choices to our customers.

Objective


Service Provider Software Matters

Look for a service provider that delivers BPO Powered by Oracle:– Protect your investment – now and future– Reduce process transition risk– Improve time-to-deployment – Mitigate change management disruption– Improve process continuity – Increase end-user adoption

Oracle solutions deliver:– Lower operational TCO– Tools/templates enable standardized deployments– Proven upgrade track record


•5

e-Procurement and Services ProcurementPowerful Combo to Manage Goods and Services Spend

Capability Goods Services

Powerful, easy to use self service capability X X

Configurable, flexible approval workflow X X

Simple services requisition management X X

Integration with Enterprise ERP suite X X

Easy to use catalogs for purchasing indirect goods X

Integration with Resource Management X

Competency based requisitions X

Integrated strategic sourcing module and bidding ability for Services X

Services specific workflow items like interviews and on-boarding/off-boarding X

VMS capability X

Integrated, rules based time reporting, progress reporting and expense reporting feeds back to projects and financials X

Integrated pro-forma invoicing X


•6

Specific Benefits

Driver Benefit Best Practices

Competitive Bidding

2-5% Hard Cost Savings

Enforce contract rates & require minimum number supplier bids/resumesEnforce “market-driven” rate bands (not-to-exceed) Monitor rates by position/supplier

Preferred Supplier Enforcement

1.5-5% Hard Cost Savings

Enforce supplier selection logic and manage exceptionsCapture qualitative and quantitative metrics to feed performance scorecardsIncrease buying leverage buying using less suppliers

Process Efficiency

1-2% Savings, 55%+ cycle time

reductions

Close loop procure to pay processEnforce no-PO no-Buy policyAutomate PO/CO/Invoice processes

Visibility & Control

Risk Mitigation Eliminated/Control co-employment riskIncrease supplier quality – drive more spend to the best suppliersAuditable process tracking

Accurate Invoicing


Auto-generated invoicing from timesheets and deliverablesAutomated rate sheet complianceAutomated budget compliance

Early Pay Discount


Negotiate and enforce discountsDon’t negotiate discounts that can’t be enforcedEvaluated Receipt Settlement (ERS)Automated invoice generation

•** Not illustrated – headcount optimization / increased capacity


About Provade

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Sample Customers

Mission: To enable companies to gain the maximize spend under management while leveraging current investments in Oracle Technology & Infrastructure

HQ in Silicon Valley with global presence (Sydney, Singapore, UK, Hong Kong, India)

Oracle Tier 1 Procurement SaaS Partner

Largest sPro customer for Oracle

MASSIVE spend volume• No single instance under $100M in annual

spend under management (throughput)• Over $1.6 billion in spend in 2007 alone


Provade delivery model

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ProcurementProcurement

Strategic Sourcing

Benchmarking

Category Management

Content Management

Supplier Management

Contract Management

Candidate SourcingCandidate Sourcing

Requisition Management

Candidate Management

On-Boarding / Off-Boarding

Non-Panel Sourcing

Compliance Management

Timesheet / Approvals

AnalyticsAnalytics

Benefits Tracking

Compliance Reporting

Time to Recruit and

Fulfilment ratio

Candidate and Supplier

Performance

Spend Analytics

Implementation Help Desk Change Management

• Support Services

•Technology Foundation

• Infrastructure Services

Oracle/PeopleSoft Service Procurement Provade Enhanced (Provade CSM)

SAS70 Level II Certified (24/7 Availability, Security, Integrity)

PaymentPayment

Invoice Management

Exceptions Management

Payroll (Direct)

Compliance Reporting

Global Managed Services Provider



&


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Case Study: Regional Subsidiary of a Global Financial Services Firm

Project Scope• Drive spend for contingent labor, professional recruitment,

legal and consulting towards preferred suppliers with renegotiated rates

• Automate the procure-to-pay process to facilitate compliance and increase visibility

Approach• Phased program to address contingent labor and professional

recruitment spend first, with legal and consulting spend thereafter• Utilize Provade Managed Services to manage these categories of

spend– Strategic Sourcing to select preferred suppliers, as well as

negotiate rates and contract terms– Ongoing Category Management services to monitor and

report on program status, savings and supplier performance• Implementation and rollout of Provade Category Spend

Manager™ (Provade CSM), an on-demand procure-to-pay system based on Oracle/PeopleSoft procurement applications

Results-to-Date• Renegotiated and standardized bill rates for each service that

resulted in a 16% rate reduction• Savings of 10-15% in each category• Eliminated the manual entry of 10,000+ invoices/year• 75%+ reduction in supply base• Increased quality of contractors and services provided

•Profile

• Regional division of a large global financial institution

• 9,000+ employees

•Background

• Division growing rapidly

• Lack of visibility into

— Services spend

— Contractors onsite

— Management of intellectual property by contractors

• Inconsistent process to request and manage services across operating units

• Increasing number of exceptions from invoicing errors


10

Services Case Study: Global Enterprise Solutions Company

• Project Scope– $250M in spend for North America and Asia-Pacific– Address other global areas in following phases

• Approach– Complete Managed Services

• On-site resources to manage procure-to-pay process• Supplier management, including contracting, monitoring

and management• Consolidated invoicing to simplify settlement• Program management to help organization drive ongoing

savings and additional opportunities– Provade Category Spend Manager

• Self-service online requisitioning• Transactional sourcing• Timesheet and Expenses• Integration with Oracle iProcurement and Financials

• Results-to-Date– Mitigation of risk from co-employment– Consolidation of supplier contracting terms into a

standardized MSA– Improved compliance to procurement policies– Process efficiencies from consolidated invoicing– Improved visibility for department managers

Profile

• 60,000+ employees

• 7,000+ contractors

• 250+ suppliers

Background

• $250M+ in annual contingent labor and subcontracted services spend in the US, Europe and Asia-Pac

• Lacking full visibility into global contingent labor spend

• Centralized procurement with resource constraints

• Oracle eBusiness Suite for Procure-to-Pay


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Migration Case Study: Fortune 500 Financial Institution

• Project Scope– Transition of niche provider solution to Provade– Go-live with $400M of contingent labor and

professional services spend in first phase– Second phase to integrate with on-boarding/off-

boarding systems and have Provade be the system-of-record for all contingent workers

• Approach– Provade Category Spend Manager™ to manage

contingent labor and professional services spend• Conversion of all contractor and supplier data over

to new system• Full integration with PeopleSoft Financials• Training• Level 2 Technical Support and Data Maintenance

Services

Profile• 38,000 employees

• 30,000+ contractors

• 90+ suppliers

• 600 active users

BackgroundCurrently doing $700M+ in annual

contingent labor and professional services spend, which is growing rapidly due to M&A

Issues with their second point solution to manage services spend

Lacked the promised integration

Viability concerns – owner of solution has changed twice

Support and stability issues

PeopleSoft Enterprise ERP


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• Obtain highest value of spend under management– Provide enterprise procure to pay solution for all categories possible on a

single stack– Obtain highest throughput possible

• Achieve best-in-class savings on total spend– Conservatively recognizing cost savings of 6% with no assistance and up to

15% within months of “go-live” with Provade’s Managed Services offering

• Drive compliance, reduce overhead– Provade’s “same technology stack” solution provides full transactional audit

trail while integrating to Oracle

• Improve ‘effectiveness’ of spend management– By providing req-to-check processing and tying into Oracle, spend is now

clear and actionable

• Deploy a ‘storefront’ model to enable easy, self-service spend management processes

– Provade solution seamlessly directs users through e-procurement technology and leverages future Oracle investments

Summary

Questions

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