1. business and industrial

Our
Perspectives
on P2P
kpmg.com
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
1
A life-cycle view of the procurement function
Too often, procurement organizations place a disproportionate focus on one element of their function at the expense of the
others, resulting in benefits that are either immaterial or simply not realized by the organization. To help maximize the
value delivered, it is important to recognize the interconnectedness of the different components of the procurement
function that work in lock-step to create and deliver sustainable value.
Strategic Sourcing generates the savings – Transactional Procurement delivers them to the bottom line – Vendor
Risk and Supplier Management help preserve the value delivered.
BUSINESS STRATEGY AND GOALS
VENDOR PORTFOLIO AND PERFORMANCE MANAGEMENT
Procurement Intelligence
Define
Requirements/
Specifications
Profile
Product/
Service
Strategic
Sourcing
Cycle
Develop
Sourcing
Strategy
Approve
Requisition
Transition
Category
Negotiate
& Contract
Contract
Management
Create
Requisition
Transactional
Procurement
Cycle
Process
Payment
Select
Suppliers
Place
Purchase
Order
Receive
Goods/
Service
Post
Invoice
RISK AND COMPLIANCE MANAGEMENT
Transactional procurement or Procure-to-Pay (P2P)
Approve
Requisition
Create
Requisition
Place
Purchase
Order
Transactional
Procurement
Cycle
Process
Payment
P2P has a strong relationship with Strategic Sourcing and Category
Management because it provides the engine that ensures compliance
to a preferred supplier arrangement , driving adherence to agreed upon service levels and price, according to contractual conditions.
World-class P2P functions provide spend visibility, transactional
efficiency, improved controls and lower operational costs by following
several common characteristics:
Receive
Goods/
Service

Policies and governance support the role of P2P by providing the
incentive for employees to understand and comply with strategic
relationships and contracts

What you buy influences how you buy

Procurement resources are freed up from tactical activities to focus
on more strategic, high-value areas

Technology drives process automation and standardization, while
enhancing the end user experience

Data granularity and accuracy at source provide reliable
metrics to measure operational performance.
Post
Invoice
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
2
Buying channels
P2P is the process that begins with the identification of a need and ends with the disbursement to the supplier. A Buying
Channel is the specific combination of options used to request, buy, receive and pay for a material or service. Buying
Channels vary by the level of control, visibility and efficiency they provide. Assignment of a buying channel is determined
by the level of P2P support that is needed. By not assigning the same buying channel to all categories, leading
organizations are able to efficiently allocate their scarce resources.
CREATE
REQUEST
APPROVE
REQUEST
CREATE
PO
APPROVE
ORDER
TRANSMIT
ORDER
CONFIRM
ORDER
RECEIVE
GOODS/
SERVICES
CREATE
INVOICE
RECEIVE
INVOICE
PAY
INVOICE
Verbal
No Approval
Standard
Material PO
Purchase
Release
Authority
EDI/XML
No Confirm
Service Entry
3-Way Match
EDI/XML
Check
Shop via
Catalog/
Punch-out
Manager
Approval
Standard
Service PO
None
E-mail
EDI/XML
Goods
Receipt
2-Way Match
Email
ACH
Shop via
Free text
Budget
Owner
Approval
System
Generated
PO
Supplier
Portal
Supplier
Portal
ASN
Invoice w/o
PO
Supplier
Wire
Transfer
MRP-based
Request
Contract
Based PO
Fax
Email
No Receipt
Self Billing
Fax
P-card
Projectbased
Request
Blanket PO
Manual
Summary
Billing
Manual
Work Orderbased
Request
Buying Channel
Types of Buying Channels
H
Transaction Volume
Purchasing
Card
M
Recurring System
Generated or
Vendor Managed
Inventory
Catalog
Traditional PO
Invoice Only
L
L
Contract Based
PO
M
Cost of Goods Purchased
Contract Based PO: Using contract supported POs will help
maintain control, increase efficiency and maintain high visibility
into spend. This is the preferred channel to ensure spend on
contract and tracking of this spend.
Traditional PO: Traditional purchase orders are widely used
and are used for transactions with parts and vendors where an
existing contract may not be available. This channel provides
high visibility and control and is very common.
Catalog: Catalogs provide easy access to items which are
contracted and provide high visibility, efficiency, and control.
Supplier managed catalogs provide a strong option to increase
compliant spend.
Purchasing Card: This is commonly used for low-value, highvolume purchases. However, it does not allow for pre-spend
approval, which decreases visibility prior to purchase.
Recurring/System Generated Purchase Order: Using
automatic reorder points within ERP inventory management
systems can lead to high efficiency, spend visibility, and
contract compliance with a sufficient level of control.
Vendor Managed Inventory: For contracted and trusted
vendors, this channel provides high contract compliance and
efficiency but lesser control over the purchases.
Invoice Only: Not a leading practice nor recommended for
future use due to overall low contract compliance, spend
visibility, and control.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
3
P2P technology
Technology enablement is a component of a broader P2P Enablement strategy; our perspective is that deployment of
technology alone will not help to achieve the sustainable change needed to optimize procurement operations and a focus
on process, buying channels, skills and capabilities, supplier enablement, and metrics and targets is critical.
P2P Enablement
Objective: Design the technology enabled processes which support the P2P objectives and integrate the new process
into the organization.
Key Activities:

Design and deploy the tool enabled processes and convert manual processes to automated ones

Enable the buying channel options

Define the reports and metrics required to monitor and maintain the process

Develop a robust change management program that engages internal and external stakeholders (Supplier
Enablement)

Develop the organizational skills and capabilities to sustain the process long term.
Technology Enablement
Planning
Design
Realization
Test
Train
Deploy
Supplier Enablement
When evaluating P2P tools, the package selection effort should look at non-functional considerations in addition to
functional fit.


40%
25%
15%
10%
10%
FUNCTIONAL FIT
USABILITY
VENDOR PROFILE
TECHNOLOGY
TOTAL COST OF
OWNERSHIP
Functionality
(i.e., what the
application does)

User friendliness/
Ease of use


Flexibility to
support
personalized
settings


Support for mobile
applications
(i.e., PDA’s and
Tablets)
Fit for purpose
against business
requirements
Overall market
position

Stability and
maturity of
application

Software license
 Hardware
Client base and
 Implementation
Industry penetration  Integration
costs
capabilities with
 Financial position,
current systems
 Maintenance &
sales trends, and
Support
analyst reviews
 Compatibility with
hardware, database  Availability of skills
 R&D budget
and middleware
& resources
standards
 Vendor support and
maturity of user
groups
Note: Weight Percentages are for illustrative purposes and vary depending on the client’s requirements.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
4
Increased focus on ease of use and user adoption
The upcoming generation of end users is gravitating towards application interfaces that work similarly to social media and
consumer sites such as Google, Amazon, Twitter, and Facebook.
Advanced document workflow functionality is simpler to administer and empowers the business user without relying on IT.
Advancements in the mobile capabilities of e-Procurement solutions, such as access to applications via mobile browsers
and ability to execute offline approvals, continue to change the way business users can access information and execute
tasks when away from the office.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
5
Supplier enablement
A robust Supplier Enablement Strategy offers significant
value to P2P through:

Significant cost reductions and process efficiencies
(improved speed and accuracy, less rework).

Enhanced auditing and controls, better contract
compliance.

Real-time status and tracking.

Consistent processes across the supply base.
A comprehensive supplier enablement program covers the
following activities:

Identify and prioritize suppliers based upon transactional
volume and spend.

Define the corporate position for covering supplier
enablement costs and accountabilities.

Define the corporate position for supplier non compliance.

Develop a strategic communications plan based upon
the “Supplier’s Perspective”

Establish Metrics and KPIs to measure progress

Dedicate resources to execute, monitor, and control the
Supplier Enablement Plan.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
6
A life-cycle view of the master data management
function
Master data is a term used to describe relatively static reference data about key entities such as vendors, customers,
materials, products, assets, and locations. These data elements are typically used repetitively in transactions by multiple
functional groups across the organization and around the globe, are usually stored and used in multiple data systems,
and serve as a core element of reporting and analytics.
Procurement Analytics
Spend Analysis, Opportunity Assessment, Sourcing
Roadmap
Typical types of master
data
Category Management
RFX /Auctions, Negotiations, Benefits Tracking
Purchase-toPay
Contract
Management
Buying Channel
Definition, Purchasing
and Requisitioning,
Catalog Management
Routing and Approval,
Contract Compliance
Supplier
Integration
Inventory
Optimization
Supplier Performance
Management, EDI
Inventory Performance,
Process Controls,
WMS
Materials
Vendors
Services
Equipment
Plants
Master Data Management
Taxonomy Standardization, Master Data
Maintenance
Master data is the lifeblood of the procurement function. Process efficiency and effectiveness, reporting capabilities, and
technology all rely on complete, correct, and consistent master data. Master data impacts other areas beyond supply
chain and is a foundational element to identify benefits in other areas.
Complete, consistent, and correct material and vendor master data enable improved analytics and operational decision
making.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
7
An integrated approach to P2P transformation
Our methodology is based on practical insights and experience from large scale procurement transformation projects
across the globe.

The P2P transformation initiative must be underpinned by a robust and credible Business Case that will be used to
secure both executive sponsorship and engagement in the field. It is therefore prudent to begin this effort with a timeboxed Assessment that delivers a roadmap along with a bottoms-up, category-specific business case.
Assessment
STRATEGY
Optimization
ROADMAP
DESIGN
IMPLEMENT
MONITOR
Performance and
Stakeholder
Value Analytics
Technology
Roadmap
Rapid Value
Assessment
Data
Risk and
Controls
Business Change
Implementation
Technology
Change
Implementation
Release Management
Process
Transition to
Steady State
Launch, Go Live
Business and
IT Strategy
People
Detailed Implementation Plan
Target
Operating
Model
Design Architecture/Solution
Client Issues & Breakthrough Ideas
Vision
Requirements Management
Business and
Technology
Operations
Integrate and prioritize initiative portfolio
Business Case and Value Delivery
Ongoing
Maintenance
Continuous
Improvement
Behavioral Change Management
Program Design and Governance
Program and Project Management

The Optimization phase is aimed at designing and deploying the future-state P2P processes and tools. It is punctuated
by Value Gateways that are major milestones to examine the progress to date, in relation to managing incremental
benefits, reviewing outcomes, and determining course corrections.

The P2P implementation addresses people, process, technology, master data and controls to deliver a sustainable
model. The Change Management effort is directed towards engaging and enabling both the internal and external
stakeholders (i.e., suppliers).

There is a discrete and focused phase to Monitor the adoption of the P2P processes and tools in the business, with a
built-in feedback loop to react and adjust, as needed.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
8
Benefits of a P2P transformation
The benefits of P2P transformation investments are realized through spend effectiveness and transaction efficiency
with spend compliance typically representing the largest savings opportunity. Categories that have historically low
compliance but good contract coverage should be the initial area of focus.
Benefit drivers
Benchmarks
A. Spend Compliance
7.3% saving on spend against contracts1
B. External Contract
Compliance
2.5 – 5% savings from external contract auditing4
C. Spend Visibility
1 – 3% savings from increased spend visibility2
D. Competitive Bid
Mgmt
14.3% savings achieved thru eSourcing3 4 – 10%
savings through spend and demand aggregation4
E. Transaction
Automation
58% transaction savings from paper to electronic1
F. Cycle time
Reduction
50% cycle time reduction for electronic enablement3
G. Invoice Processing
Efficiencies
36% savings in electronic invoices processing4
Compliance
4 – 7% Savings Potential
Sourcing
5 – 15% Savings Potential
Process
3 – 5% Savings Potential
Sources:
(1) Aberdeen Group, e-Procurement Benchmarking Survey.
(2) Yankee Group Metric.
(3) Aberdeen Group, Sourcing Best Practices.
(4) KPMG Experience.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
9
Elements of a P2P transformation program
A successful P2P Transformation program contains multiple elements that are required to realize and sustain the benefits
of P2P.
Program Management Office (PMO)
Change Management
P2P Strategy
Overarching transactional
procurement goals and underlying
“Big Rules” in support of the
procurement vision
Organization Design
Design of the P2P organization in
the context of the broader
procurement function including the
definition of target competencies
needed by role and level
Process
Definition, design, and
implementation of future state
buying channels to optimize the
level of control, efficiency, and
visibility needed for a particular
commodity or service
Target Operating Model
Definition of the optimal delivery
framework for the components of
the P2P process and the interfaces
with the business including clearly
established roles and
responsibilities
Metrics
Definition, deployment and
monitoring of KPIs that measure
the process efficiency, spend
effectiveness and organizational
productivity as it relates to P2P
Talent Development
Supplier Enablement
Strategy and initiatives to attract,
develop and retain talent in the P2P
function, including but not limited to
certifications, career progression
and succession planning
On boarding of the suppliers to
manage catalog content and
support electronic exchange of key
P2P documents including purchase
orders, PO confirmations, ASN,
invoices, etc.
Tools
Master Data
Package selection and
implementation of enabling tools to
support requisitioning, approvals,
receipt, invoicing, content
management, as well as knowledge
management tools to facilitate
internal collaboration
Definition and implementation of an
enterprise master data taxonomy
and governance, as well as the
cleansing and classification of
master data
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
10
P2P Transformation critical success factors
 A P2P assessment should be
holistic and produce a bottom-up
business case that credibly
establishes a “case for change”
 Secure visible executive
sponsorship for P2P
 Design buying channels based
on the nature of spend
categories
 Focus on changing behaviors
and user adoption of the new
P2P processes and tools
 Actively engage and enable key
suppliers in the P2P
transformation initiative
 Test and tweak P2P design
through a limited pilot before a
full-scale deployment
 Treat master data as a corporate
asset and invest in data
cleansing and classification
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
11
Assessment perspective
Every P2P Transformation journey should start with a P2P Assessment. An effective P2P Assessment solicits input from
all stakeholders to identify improvement areas that help define the case for change:
A balanced 360-degree perspective includes input from all stakeholders
Input from the company
executives to determine the
degree of alignment between the
corporate agenda and
Procurement Strategy.
Voice of the
Executives
Voice of the
Business
Unit
An “outside-in” perspective of
what the business expects
from the procurement
function.
Holistic
View of
Procurement
Voice of
Supplier
Captures the perspective of key
suppliers on what the
organization should do to make
it a company that “is easy to do
business with”.
Voice of
Procurement
An “inside-out” perspective
capturing the issues and
opportunities identified by the
procurement group
P2P improvement opportunities are identified along six dimensions
Are the P2P policies and procedures defined and
communicated?
Are P2P roles and responsibilities documented?
Governance
What are the non value-added
activities that can be eliminated?
What processes need to be
simplified and standardized?
What skills exist in the
company today?
People &
Talent
Process
How are people keeping their
competencies current?
Six
Dimensions
of P2P
How are we monitoring
operational and financial risk?
What controls are in place
around adding vendors?
Technology
Controls
Master Data
Do we have the tools we
need?
Are we using the tools we
have optimally?
Is the material and vendor data
correct, consistent, and complete?
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
12
Business case and value gateways
KPMG’s Business Case & Value Gateway methodology not only facilitates the initial capture of the benefits of a P2P
program during the assessment phase, but also provides tools and methods to track and deliver value long after the
change has been implemented.

Companies that build a bottom-up business case are better positioned to secure approval and realize value

A comprehensive business case is critical to aligning investment with the firm’s strategic goals

A business case identifies measurable expected results that are owned by the business

A robust business case builds credibility and facilitates stakeholder engagement and support for the initiative
Seventy-three percent of companies that
develop and track a business case realize
value on time or earlier than plan
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
13
Change management
True success for P2P is neither obtained nor defined by the deployment of systems and processes alone. It is obtained
through people in the internal and external organization.
Change Management
Component
Common P2P Challenges

Role Impact Analysis
Disruption of ongoing business activities due to changes in
processes, technologies and organizational staff

Lack of confidence in the new solution/model results in a lack of
Organizational Architecture
empowerment of leadership (and a costly continuation of
“business as usual”)

Leadership Commitment
and Sponsorship
Leaders genuinely support the effort, but do not know what they
can tactically do to further it/demonstrate their support

Communication Strategy, Plan,
and Activities
Communication lacks audience/function-specific content and
quickly becomes irrelevant for most employees

Fear of job loss/change paralyzes the work force, resulting in a
Future State Skill Sets, Capabilities
and Mindsets
lack of activity, poor quality output, incomplete information, etc.
Creating the Right Environment for Change
World-class change management means preparing the organization to understand, accept, and be successful in
implementing change associated with the new P2P processes and tools.
Shared and
Agreed
Vision and
Direction
Assess and act on your organization’s
history with change and current
readiness to change

Articulate a clear business case and
vision for the change with degree of detail
appropriate to the magnitude of the effort

Integrate change management resources
and activities into the overall project plan

Develop and leverage leadership
commitment and stakeholder support on
an ongoing basis

Design and deploy a multi-audience, twoway communication strategy via clearly
accountable resources

Build team and individual skills and
capabilities to change

Be explicit regarding the degree of cultural
transformation required; realign cultural
change with operational change

Refine the organization structure and
performance management systems to
support the change effort
Leaders
Engaged
Behavior and
Culture Gaps
Addressed
Measurement,
Recognition,
and Reward
Updated

Change
Readiness
Appropriate
Technology
Operations
and
Management
Teams
involved
Stakeholders
Prepared
World Class
Procurement
Team
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
14
Training strategies
A comprehensive and fit-for-purpose training program flattens the transition curve and simplifies the change management
process.
Before Class
Classroom (and/or e-Learning)
Prepare Me
Tell Me
Show Me
On the Job
Let Me
Help Me
Instructor’s
Guide
Participant
Manual

Web-based system
overviews/demos

Navigation courses

Targeted
communications

Change
Owner/Change
Leader Briefings

Project
introduction and
course overview

Instructor
demonstrations
of transactions

Hands-on
classroom
exercises

Process and
 Live systems
system
 Simulations
demonstrations in
 Virtual
the classroom
workshops and
demonstrations

Exam/review
questions
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578

Work instruction
manuals

Job aids (quick
reference guides)

Online help

Post implementation
refresher trainings
15
Transformation resource considerations
Building the right team to support your P2P Transformation Program is critical to achieving success. The key is to strike
the right balance between “running the business” and “transforming the business”.
Assess
1-2 months
Design
2-3 months
Implement
6-8 months
Monitor
1-2 months
These figures are directional, based on typical KPMG transformation experience.
Other Team Considerations:

Internal stakeholders: Engineering, Plant Operations & Maintenance, and Finance

External stakeholders: Suppliers

Business Unit Leads

Super Users
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
16
Case study:
Procurement assessment
Area of assistance
Client challenge
Procurement
Functional

Our client, a $10 global petrochemicals company, engaged us to determine the maturity
and competitiveness of the client’s procurement organization relative to industry peers and
other leading procurement organizations.

Focus areas included: contracts, strategic sourcing and category management, projects,
accounts payables, maturity/organizational modeling, and spend management.
Benchmarking
Procurement
Maturity Framework
Modeling
Procurement
Organization and
Operating Model
Review
Key activities

Performed a benchmark study to measure how client’s procurement function compares
with similar companies in the petrochemical industry.

Documented procurement functions comparative performance, gaps, and
recommendations to address gaps and continue path to become a leading procurement
organization.

Interviewed both internal client resources and representatives from the client’s peer group.
Outcomes

Created a well-received client-specific procurement maturity assessment results inclusive
of comparator benchmark information.

Developed actionable recommendations with targeted initiatives tied to the procurement
maturity results.

Provided insight on the robustness of the existing procurement contracting terms and
conditions templates.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
17
Case study:
Procurement process design
Area of assistance
Client challenge
Procurement
Process Redesign
& Technology
Selection

The client was seeking help to upgrade its procurement related technology capabilities by
selecting and implementing a technology application to support efficient requisition,
approval, order, and payment for goods and services.

Challenges in the current environment included d deficiencies in workflow capabilities as
well as concerns regarding scalability.
Key activities

Conducted stakeholder interviews to document current state processes and high level
spend analysis utilizing BIQ (spend analysis software) to understand business
requirements

Provide recommendations for a future state framework that included procurement
processes at a category level and procurement policy and organizational design
considerations

Researched and identified leading P2P solutions (both traditional e-Procurement and VMS)
and recommended an RFP package that included detailed functional requirements

Developed a framework for evaluating P2P solutions that included evaluation criteria and
weighting considerations; generated scripts for conducting vendor demonstrations

Designed an implementation plan that included project management, detailed process
design (catalog design, business rules, report development), tool configuration and
integration, policy revision and organization design activities
Outcomes

Provided the client with a consolidated view of its current spend profile and procurement
processes

Presented set of enterprise wide future state procurement processes for all third -party
expenditures that streamlined workflow and provided visibility into and controls around
procurement activities

Developed an RFP package and evaluation framework that reflected the client’s unique
business requirements, environment and culture

Provided the client with a phased implementation plan tailored to the its roll out strategy,
business requirements and resource constraints
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
18
Case study:
Procure-to-pay transformation
Area of assistance
Client challenge
Procure-to-Pay
Transformation –
Indirect Goods and
Services

Our client, a global industrial packaging manufacturer, was lacking visibility into and control
over indirect spend due to disparate procure-to-pay processes and tools utilized across
the corporate and plant locations

High volume of invoice exception/matching issues coupled with inefficient and manually
intensive invoice approval processes
Coupa eProcurement
Implementation

Low utilization of negotiated contracts with preferred suppliers

Lack of internal spend analysis tools to track contract utilization and support strategic
sourcing objectives
Key activities
Supplier
Enablement
Program

Business process modeling and design of the future-state procure-to-pay processes

Definition of the integration strategy and data flow requirements between Coupa and clients
financial system (Infor LN ERP)

Configuration and testing of the Coupa Spend Management platform (r9) to meet client’s
specifications

Stakeholder analysis to assess the organization’s readiness and capability to support the
new processes and technology

Development of the training strategy to successfully transition the organization to the new
processes

Development and execution a supplier enablement plan to onboard ~600 suppliers on
Coupa Supplier Network (CSN). Effort included the integration of PunchOut Supplier
Catalogs and cXML suppliers for electronic document exchange (purchase orders,
invoices, and payment status)
Outcomes

Standardized procure-to-pay processes enabled by Coupa across 65 plants and 400 users
across North America

On-boarded approximately 50 suppliers in the initial wave of the supplier enablement
program to the CSN

Enabled 6 Suppliers with PunchOut Catalogs making 20,000+ contracted items available to
users to procure from

Established the foundation to enable a centralized buy-desk function, a dedicated
purchasing organization responsible for operational procurement needs of the plants.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
19
Case study:
Procure-to-pay transformation
Area of assistance
Client challenge
Procure to Pay

A North American energy company, striving to optimize its materials and services
procurement activities across its supply chain through improved process optimization and
technology enablement.
Key activities

Our client is currently engaged in a multiyear initiative of optimizing procure to pay
processes and technologies within their Canadian and U.S. business units. This set of
improved processes are being enabled by using SAP’s SRM 7.0, and SAP Sourcing
solutions to be integrated to multiple supply chain and financial systems environments in an
effort to improve transparency and controls over spend, while achieving efficiencies in the
sourcing and procurement functions.

Scope of solutions implemented included the following; SAP SRM server 7.0, SAP
Netweaver Enterprise Portal (EP) 7.0, NW SAP Netweaver Process Integration (PI) 7.0,
SAP Sourcing 5.2, ECC 6.0, Ariba Service Network, which were use to for enable the
following functional scenarios: Operational Procurement, Services Procurement, Plan
Driven Procurement, Strategic Sourcing (RFx Functions using SAP Bidding Engine),
Contract Management, Catalogue Management, and Supplier Self Service.

Scope of activities performed included: Program Management, Process Design & Blueprint,
BASIS, Security, Configuration and Development, Supplier Enablement, Catalogue Content
Management, Testing, Data Conversion, and Change Management, Post Go-Live Support.
Outcomes

Delivered a global blueprint designed to standardize and optimize core P2P business
process and control functions across the enterprise, while providing a framework for local
customizing to accommodate business essential requirements.

Enabled integration with a supplier network portal (powered by Ariba) designed to enable
suppliers to provide access to catalog content, while improving efficiency of order
management processes thru electronic transaction exchange.

KPMG delivered a technology landscape designed to leverage SAP’s SOA capabilities,
while ensuring continuous scalability and optimized performance.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
20
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
21
KPMG’s Operations Advisory Practice
KPMG Operations Advisory Practice
Our mission
Our vision is to help our clients create breakthrough competitive advantage by designing and implementing the value
chain of the future; one that is purpose built, globally integrated, demand driven, lean, agile, and resilient.
We help drive structural improvements that accelerate growth, lower costs, improve services, and reduce risks. We
partner with our clients throughout their transformation journey, delivering sustainable value from strategy through
results.
Our practice
Our Operations Advisory practice has a global footprint comprised of over 900 seasoned operations specialists
located in all major geographic markets. These practitioners have deep, pragmatic knowledge in every major
operations discipline, allowing us to provide objective advice and compelling insights, and deliver end-to-end
solutions with proven results to our clients. We leverage our industry leading practices with an eye on appropriate
controls to optimize efficiency and manage risk.
Contact us
Samir Khushalani
Americas Practice Leader
Operations Advisory
T (713)-319-3570
E [email protected]
kpmg.com
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 148578
22
© 2015 KPMG LLP, a Delaware limited liability partnership
and the U.S. member firm of the KPMG network of
independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. NDPPS 148578
The KPMG name, logo and “cutting through complexity” are
registered trademarks or trademarks of KPMG International.