Overcoming SOW procurement challenges thru automation

Session Goal ‘Simply to show how automation can greatly improve the process, overcome challenges and improve outcomes related to SOW procurement’

Interactive Session Break into groups Discuss your SOW process challenges Come up with 1-2 key challenges/group Share with the group Come up with 6-8 – put on flip chart As we go through the session we will ensure we discuss each one

The SOW Procurement Process Change Orders Accept Invoice Pay Negotiate & Contract Review Score Post to supply base Scope it out Project Office – Plan, Data Reporting & Analytics Important to baseline the process to help identify challenges

Scoping challenges Multiple inputs, tools & stakeholders Complex milestones & deliverables Budgets and approvals Project Management How single system automating can help Consolidate inputs into one system Visibility in one system for stakeholders Project plan embedded in system

Requisition Challenges Multi level & complex approvals Version Control Establishing Budgets Setting scoring & weighting How single system automating can help Built in automated approval routing Visibility in one system for stakeholders Project tools linked to system Embed scoring system in requisition

Posting to Supplier Challenges Many suppliers and contacts Marketplace management Gig economy? Sending the right version out manual approval routing & thresholds How single system automating can help Supplier profiles embedded One living version in system Automated approvals embedded

Proposal related challenges Manual review of proposals/printing Maintaining consistent scoring Pricing visibility Budgets and approvals How single system automating can help Initial automated match & scoring Bidders can see lowest pricing Users can score within system Project tools linked to system Integration with Freelance markets

Contracting challenges Tracking negotiations & pricing Managing contract changes/redlines Onboarding of supplier/workers HSE, Security, IT, Facility/Workspace etc. How single system automating can help Automated negotiations – cost savings eContracts – system managed Onboarding notices, training, etc.

Acceptance invoicing & payment challenges Manual acceptance process – audit trail Paper invoices, errors, labor intensive Issuing payments costly, labor intensive How single system automating can help Acceptance done in system – remote Closed loop – accurate invoicing Back office ERP integration

Change order challenges Project Plan management Building & managing the change order Approvals required Contract addendums to manage How single system automating can help Links to Project Plan – picks out changes & sends out change order(s) Manages approval and release process Updates contract & pricing

Project Office – Plan, Data Reporting & Analytics Data challenges Project Office – Plan, Data Reporting & Analytics Spreadsheet based data housing Data manipulation errors Analysis paralysis Laborious reporting work How single system automating can help SOW data housed in one system Canned reporting Full export capabilities

The Value Statement Soft Dollar Savings through Reduced manual processing Reduced paper handling Expedited buy process - work starts faster Vendor management Hard Dollar Savings through Auctions Online negotiations

The Future Gig economy Better upfront collaboration tools Sourcing freelancers for projects Uber for SOW Open markets Better upfront collaboration tools Built in project management functionality Large scale integrators commoditized Buyers need to push systems providers

Closing Did we cover off all process challenges? Questions Evaluations and Materials Take this time to go the conference app http://itps2016.sched.org find this class, and fill out evaluation. If you need the PowerPoint, it’s on your thumbdrive