How to build an E-procurement Machine - Concept to-control

1. Concept to Control
How Berkshire Bank built an e-procurement machine that
put their savings initiatives into overdrive

2. Today’s Session
IMPACT
CONCEPT PLAN IMPLEMENT ADOPT CONTROL
TIME

3. Who We Are
Dee Harnish Rob Bernshteyn
Purchasing CEO

4. About Us
 Leader in Cloud Spend Management enterprise applications
 Empowering organizations to:
 Spend Less: Reduce maverick spending by ~33%
 Pay Less: Lower average order costs by ~25%
 Reduce Cycle Time: Reduce time to get goods by ~30%
 Reduce Operating Costs: Reduce time spent on purchasing / auditing by ~20%
 Improve Spend Predictability: Increase spend under management by ~20%
 Total Customers: 160+ around the world
 Platform Spend: Billions of Dollars with over 35,000 suppliers
 Pure Cloud Platform: 99.999% uptime

5. About Us
 $2.7 billion in assets
 Integrated insurance and wealth management ($650 million AUM)
 New England asset based lending group
 Largest local regional bank
 46 Financial Centers in Western MA, Eastern NY, and Southern VT
 A leader in philanthropy and community involvement and leadership
by providing over $12 million in funding
 Committed to the RIGHT core values: Respect, Integrity, Guts,
Having Fun and Teamwork
 Constantly developing fresh new approaches to our customer
service experience

6. Concept
To increase procurement
efficiency and spend
control.

7. Develop the Concept
Accessible
• 41 branches
• Consistent
process, suppliers
Accurate Innovative
• Real-time data Efficiency • Easy to implement
and maintain
& Control
• Immediate action
• Compliance and • Would be adopted
audit tracking by users
Automated
• Eliminate manual
processing
• Ensure proper
review, approval

8. Roundtable Discussion – Conceptualize the Goal
What ideas and concepts
are you considering
achieve efficiency and
control?
What challenges have
you faced in developing
your concept? How are you working
around these challenges
to get your concept off
the ground?

9. Plan
Make your concept a
reality.

10. Putting A Plan in Place
 Get stakeholders involved, they will be more accepting of
change and will help make it happen
 Start a steering committee
 Include stakeholders from all areas

11. Putting A Plan in Place
 Understand user needs and identify requirements
 Vendor and contract management
 Policies and procedures
 Compliance and auditing
 Reporting and budgeting
 Collaborate with end users
 What is working with the existing process? What isn’t? How do they use
process / solution in day-to-day job?
 Prioritize feedback based on impact
 Aggregate and identify trends
 Pick out a subset of things to tackle – doing it all is impossible and
unnecessary

12. Putting A Plan in Place
 Conduct a vendor due diligence
 Submit an RFP, get a demo
 Create a “short list”
 Trial solution, test and push boundaries
 Let end users have a go
 Select the vendor that meets your requirements
Coupa Cloud Spend Management
e-procurement “lite” enterprise e-procurement
Basic P2P functionality Advanced features, complex capabilities
On-demand On-premise

13. Roundtable Discussion – The Plan
How are you making your
concepts a reality?
What part of the
planning process is most
challenging? How are you engaging
stakeholders in the
planning process?

14. Implement
Turn your plan into real action.

15. Innovation Fuels Accelerated Implementation
 Implementation taking months –
not years like an on-premise solution
 Phased roll-out to 41 locations
• Requisitioning • Contract • Asset • Travel & Expense
• PO Generation Management Management Reporting
• Invoicing • Vendor • Supplier
• Reporting Management Punchout
• Receiving
• Budgeting

16. Why the “cloud”

17. Innovation in the Cloud
Traditional Dev Model Cloud Dev Model
1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades
VS

18. Innovation in the Cloud
Traditional Dev Model Cloud Dev Model
1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades
2.Difficult Independent Implementations 2.Rapid Implementation
VS

19. Innovation in the Cloud
Traditional Dev Model Cloud Dev Model
1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades
2.Difficult Independent Implementations 2.Rapid Implementation
3.Multiple Code Bases 3.One Optimized Code Base
VS Cloud Platform

20. Innovation in the Cloud
Traditional Dev Model Cloud Dev Model
1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades
2.Difficult Independent Implementations 2.Rapid Implementation
3.Multiple Code Bases 3.One Optimized Code Base
VS Cloud Platform
Non-viable long-term business model Sustainable Business Model

21. The Cloud is the Most Cost Effective
• IT Support
•Maintenance
•Upgrade
•Professional
Services
• IT Support • IT Support
•Maintenance •Maintenance
•Professional •Professional
Services Services
•Implementation • Implementation • Implementation •
•Hardware •Hardware •Hardware
•Database / •Database / •Database /
Middleware Middleware • Middleware •
•Software Fee •Software Fee
•Software Fees • • •
Year 1 Year 2 Year 3

22. Roundtable Discussion - Implementation
How quickly can change
happen at your
organization?
What are the typical
bottle necks
encountered?
How do you work around
those to get things done?

23. Adoption
You can’t control what is not
visible.

24. Users Drive Spend Visibility & Control
 If it’s not in the system, it’s not controllable
 Drive user adoption
 Make it easier than any alternative
 Include stakeholders in planning to develop buy in
 Continuously train and educate
 Champion change, lead by example

25. Roundtable Discussion - Adoption
Do you know how much
of your spend is under
management?
How do you drive users
to adopt processes and
systems? What are some of the
ways you have
championed change in
your organization?

26. Control
Manage spend with real-time data
and action.

27. Gain Spend Visibility and Control
 100% of indirect spend – purchasing and expenses – visible
and under control
 Infrastructure to manage, report and control spend
 Reduce admin burden through automation / integration
with AP / GL systems
 Historical audit trails to standardize and enhance policies
 Greater negotiation power and adherence to preferred
vendor contracts

28. An Action Plan for Savings
 Increase control over company spending
 Review and approve immediately via email
 Enable strategic purchasing initiative to lower costs
 Make the shift from damage control to spend control
 Control maverick Spending
 Save 5% - 20% on every dollar under management in
the system
 Spend 25% less on total purchasing activities

29. Roundtable Discussion – Spend Control
How do you get spend
information?
What enables you to take
action to stop waste?
How are you delivering
savings to your
organization?

30. Your Ideas CAN Become a Reality!
IMPACT
CONCEPT PLAN IMPLEMENT ADOPT CONTROL
TIME

31. THANK YOU
Dee Harnish Rob Bernshteyn
Purchasing CEO
dharnish@berkshirebank.com rob.berhshteyn@coupa.com