sap contract management

April 25–27, 2005Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ

NCMA World Congress 2005“Prime Time: Contract Management at the Core of the Enterprise” 2

Breakout Session # WC05-147

Mike Kaul, CEO, diCarta, Inc.

Date: Wednesday, April 27, 2005

Time: 1:20PM

Eliminating Maverick Purchasing and Improving Supplier Performance



Agenda

• Challenges in Supplier Management

• Supplier Contract Management Blueprint

• Case Studies

• Building a Business Case



LEASE

CAPITALEQUIPMENT

PROFESSIONALSERVICES

Challenges in Supplier Management

Spend Analysis

?

Procurement

Supply Chain Systems

eProcurement

Operational Systems

Sourcing

Accounts Payable

?



LEASE

CAPITALEQUIPMENT


?Discounts & Rebates

Service Performance

Milestones

Delivery

Quality

?

?

?

?

Right Products ?

Challenges in Supplier Management

Spend Analysis

?

Procurement


eProcurement

Operational Systems

Sourcing

Accounts Payable

?



Existing Solution Limitations ERP, SRM, SCM

• Fail to support full lifecycle contract

management

• Limited contract management functionality

• Disjointed business process

• “Swivel-Chair” integration

• Multi-business unit enablement is challenging

• Requires significant resources for internal

development



Agenda

• Contract Challenges in Supplier Management

• Supplier Management Solution Blueprint

• Case Studies




Spend Analysis

Sourcing Procurement

Accounts Payable


eProcurement

Operational Systems

Appro

ved

Paid

Verifi

ed

Contract Management Solution

Discounts & Rebates

Service Performance

Milestones

Delivery

Quality

Right Products

x

x

x

Blueprint for Success




Contract Authoring

Contract Negotiation

Contract Reporting & Analytics

Obligations, Compliance,

& Renewals Management



EnforcedPolicies

ClauseLibrary

Templates

EnforcedPolicies

Guidelines

Solving Contract Limitations of Sourcing Create and Control



EnforcedPolicies

ClauseLibrary

Templates

EnforcedPolicies

Guidelines

Suppliers

Partners

Customers

Negotiate

Author &Collaborate

Review &Approve




EnforcedPolicies

ClauseLibrary

Templates

EnforcedPolicies

Guidelines

Suppliers

Partners

Customers

Negotiate

Author &Collaborate

Review &Approve

Operations Systems

Mfg. Finance

Procurement / SCM




Solving Contract Limitations of Procurement and A/PAdminister and Comply

Supplier Compliance

Renewals,Terminations,Consolidation

Manage Obligations,Deliverables

Manage Amendments

AMENDMENTB

AMENDMENTD

AMENDMENTA

AMENDMENTC

AMENDMENTE

LEASE

CAPITALEQUIPMENT


Discounts & Rebates

SLA Performance

Milestones

Delivery

Quality

x

xx

Right Products

CALENDAR

Operations Systems

Mfg. Finance

Procurement / SCM



Administer and Comply

LEASE

CAPITALEQUIPMENT


Operations Systems

Mfg. Finance

Procurement / SCM

TRANSACTION

Compliant?



LEASE

CAPITALEQUIPMENT


Operations Systems

Mfg. Finance

Procurement / SCM


TRANSACTION




LEASE

CAPITALEQUIPMENT


Operations Systems

Mfg. Finance

Procurement / SCM

ComplianceRules

Engine

ComplianceValidation

Flows

TRANSACTION



LEASE

CAPITALEQUIPMENT


Operations Systems

Mfg. Finance

Procurement / SCM

ComplianceRules

Engine

ComplianceManager

ComplianceValidation

Flows

Discounts & Rebates

SLA Performance

Milestones

Delivery

Quality

x

xx

Right Products

Compliant

Administer and ComplyA Complete, Closed-Loop Process for Supplier Compliance



Solving Contract Limitations of Spend AnalysisAnalyze and Improve

Operational Efficiencies Contract Analysis

Contract Audit& Research

Workload Planning

CALENDAR

BUSINESSCONDITIONS

Business TrendAnalysis

BUSINESSCONDITIONS

CALENDAR

+

-



Agenda



• Case Studies




Managing the Procure-to-Pay Process

Profile: 3,000 Contracts 80 Global Business Users

Objectives: Single view of contract operations across the enterprise Reduce procure-to-pay cycle times Standardize contract language and enforce approval processes

Benefits from Deploying diCarta Contracts: Gained visibility of contract operations across the organization to

monitor procurement spend and manage operational efficiencies Achieved procure-to-pay processes and approval standards Reduced procurement cycle times

Founded in 1873, Kohler is a worldwide leader in plumbing, bath

and kitchen products.

Revenues: $3.0 billion Headquarters: Kohler, Wis.Employees: 25,000 worldwideAdditional Facilities: North America, Europe, and Asia.

Featured in Purchasing Magazine’s CM Issue (July 2004)



Global Contract Management Excellence

Profile: 40,000 contracts 40 global business units 600 contract administrators

Objectives: Integrate contract management with a single global instance of SAP Gain total global visibility of all supplier agreements Standardize global contract operations in a six sigma environment Drive contract compliance to improve procurement efficiencies Reduce contract process cycle time Measure & reduce overall contract administration time and cost

Benefits from Deploying diCarta Contracts: Drive Procure-to-Pay processes across the enterprise Provide total contract visibility to reduce supplier risk Monitor supplier compliance and improve procurement efficiencies

A Fortune 7 company, ConocoPhillips is the 3rd largest energy company in the United

States and 8th largest worldwide. Operating in more than 40 countries

Revenues: 105.1 billion Assets: $82.5 billion Headquarters: Houston TXEmployees: 39,000 worldwide

Find out more at the NCMA Webinar on June 15th!)



Streamlining Contracting Processes

Profile: 500,000 contracts per year $50 billion in aggregate healthcare spend 400,000 physicians 3,600 hospitals

Existing Challenges: Significant volume of contract requests from field Reduce cost of manual claims processing

Benefits from Deploying diCarta Contracts: Established and enforced standard contract processes to

streamline contract request and enable further business growth Improved auto-adjudication rates Reallocated 200 FTEs On target to save $61 million over three years

UnitedHealthcare provides individuals with access to cost-

effective healthcare services and resources through more than 400,000 physicians and 3,600 hospitals across the United

States. It manages approximately $50 billion in aggregate

healthcare spending on behalf of more than 170,000 employer-

customers and the consumers it serves.

Revenues: $31.6 billion Stock symbol: UNHMember: Fortune 100Headquarters: Minnetonka, MN Employees: 33,000 worldwide



Agenda



• Case Studies




Contract LeakageLack of an integrated process is costing companies money

(1) Independent Survey



Savings OpportunityAcross All Commodities

(1) Independent Survey



Breakout Session # WC05-147

Mike Kaul, CEO, diCarta, Inc.

There has to be some questions….



Title of Slide

• Bullet point 1– Bullet point 2

• Bullet point 3

sap contract management

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