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Advanced Procurement Solutions at Lowe ’ s A Success Story. Kevin Dioquino, Procurement Manager, Lowe ’ s Rajesh Rajagopalan, Lead Consultant, Infosys September 25,2013. Table of Contents. Introduction Lowe’ s Overview Program Scope & Challenges Advanced Procurement Benefits

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advanced procurement solutions at lowe s a success story

Advanced Procurement Solutions at Lowe’s A Success Story

Kevin Dioquino, Procurement Manager, Lowe’s

Rajesh Rajagopalan, Lead Consultant, Infosys

September 25,2013

table of contents
Table of Contents

Introduction

Lowe’s Overview

Program Scope & Challenges

Advanced Procurement Benefits

Advanced Procurement Needs

Implementation Approach

Hidden Gems

Advanced Procurement Solutions

Business benefits realized

Key Take Away

Conclusion & Discussions

introduction
Introduction

Speakers introduction

lowe s overview
Lowe’s - Overview

Heritage

  • Founded in North Wilkesboro, NC
  • Helping customers improve the places they call home since 1946.
  • Headquarters in Mooresville, NC

Retailing

  • 16th Largest retailer in the World
  • Over 245,000 employees
  • Serves more than 15 million customers a week
  • Operates 1,750+ stores in the United States, Canada, Mexico
lowe s overview1
Lowe’s – Overview

Financial 2012

  • 2012 Revenue $50.5 Billion
  • 2012 Net Earnings of $2.0 Billion
  • Ranked #20 on 2012 Global Powers of Retail List

Awards

  • 4th Consecutive Energy Star Partner of the Year – Sustained Excellence Award
  • Lowe’s Corporate Leadership Award from NABEF
  • #1 in J.D. Power Appliance Retail Customer Satisfaction
program scope
Program Scope
  • Standardize business process by embracing industry best practices
  • Instigate control and compliance across business processes to reduce duty violation and risk
  • Align business process and rollout new process for Canada operations
  • Re-Implement PeopleSoft 9.1 to instigate automation and utilize new features across P2P business process
program challenges
Program Challenges
  • Opportunities to reduce Procure to Pay life cycle time
  • Non Standard business process
  • “Maverick” spend and exception handling
  • Increased business opportunities for supplier enablement
  • Opaque procure to pay process forcing business critical resource’s time
  • Disparate procurement systems
lowe s procure to pay
Lowe’s Procure to Pay

Indirect Goods and Services

Identify Needs

Sourcing

Supplier Contracts

Catalog Management

Make Payments

Source Vendors

eProcurement

Purchasing

eSupplier

Electronic Invoicing

Negotiate Contracts

Indirect P2P

eSettlements

Payables

Workflow

Receive

Upload Catalogs

Supplier Relationship Management (SRM)

Receive ASN

Create Req

Create PO

Receive POA

slide9

Advanced Procurement Benefits

Supplier Enablement

Spend Analytics and Dashboards

Supplier Competition

  • Collaboration with supplier
  • Source more from spend
  • Drive contract compliance

Benefits

Managing Rebates

Contracts to Control Spending

  • Ensure traceability

Evaluate

Analyze

  • Track full life cycle
  • Proactive control
  • Free cash flow

360 Degree view of P2P

Self Service and Workbench

  • Focus on strategic activities

Audit Trail

advanced procurement needs
Advanced Procurement Needs
  • Non standard processes
  • Unapproved spend
  • Prolonged P2P lead times
  • Manual communication and status updates
  • Enhanced spend control, reduce cost
  • More automation, improved productivity, efficiency
  • Improved compliance and simplified auditing structure
  • Improved transparency and reduced lead time
re implementation approach
Re-Implementation Approach

Non Standard business process

Benchmarking assessment, best practice usage

“Persona” based business requirements

Prolonged P2P lead time, automate business process

Value based governance framework

“Maverick” Spend and Exception control

Preventive vs. Reactive Control

Dashboard analytics, Auto provisioning

Opaque P2P Process

Employee empowered, transparency built in processes

Disparate Systems

Re-Implement P2P business process

hidden gems at lowe s
Hidden Gems at Lowe’s

Enhance Collaboration & Automation

Extend & Enhance Sourcing

Analyze

Drive Contract Compliance

Identify

GEM’s

End to End Life Cycle Visibility

Improve

Best Practices

Improve Compliance & Reduce Risk

Better Cash Flow Management

advanced procurement solutions powered by technology
Advanced Procurement Solutions – Powered by Technology
  • Enhance Collaboration & Automation
  • Implementation of Advance Shipment Notifications
  • Purchase Order Acknowledgements driven change orders
  • Electronic Data Interchange solution for driving business growth
  • Right order from the right vendor
advanced procurement solutions powered by technology1
Advanced Procurement Solutions – Powered by Technology
  • Extend & Enhance Sourcing
  • Identified opportunities for sourcing across the different Lines of Business (LOB)
  • Empowered LOB to use and utilize sourcing
  • Driving optimal results by re-using best practices
    • Sourcing templates
    • Bidder groups
    • Sourcing workflow
    • Bid factors
    • Notifications
advanced procurement solutions powered by technology2
Advanced Procurement Solutions – Powered by Technology
  • Drive Contract Compliance
  • Source of truth for all transactional contracts
  • Automatic enforcement of contract compliance on Requisitions and Purchase Orders
  • Contract expiry date and spend threshold
  • notifications
  • Agreement notification to automate work trigger
  • Automation of recurring payment vouchers
advanced procurement solutions powered by technology3
Advanced Procurement Solutions – Powered by Technology
  • End to End Life Cycle Visibility
  • Leverage delivered dashboard to develop pagelets
  • 360 degree view of the transaction enabling timely decisions
  • Mass requisitions by end users with advanced notifications reducing lead time
  • Streamline transfer of requestor information across P2P process
advanced procurement solutions powered by technology4
Advanced Procurement Solutions – Powered by Technology
  • Improve Control & Reduce Risk
  • Preventive Control
    • AWE workflow for spend control & exception
    • Pre-check commitments
    • Proactive vendor based matching control
    • Auto provisioning
  • Detective Control
    • Spend analytics
    • Performance evaluation
    • Commitments tracking
    • Legal entity accounting
advanced procurement solutions powered by technology5
Advanced Procurement Solutions – Powered by Technology
  • Better Cash Flow Management
  • No Po, No Payment
  • Improved automation to reduce payment lifecycle
  • Dynamic discounting framework
  • Automatic spend threshold control
business values derived
Business Values Derived

Customization Governance: 52% customizations reduced

  • 15 % of EDI transactions increased
  • 200vendors moved to EDI enabled
  • P2P Lead time reduced by 48 hrs

Enhanced Collaboration & Automation

Extend &

Enhance Sourcing

  • # of Sourcing events created in PS tripled
  • 32 % increase in Supplier Contracts Volume
  • Proactive notificationsfor all Voucher Contracts

Drive Contract Compliance

  • 60 %of time savings for Buyer
  • 25% P2P lead time saved

End to End Visibility

Improved Control & Reduced Risk

  • 30 %reduction in Reconciliation Effort
  • 70% of time savings for Buyer & AP Clerk
  • 30 %savings on P2P lead time

Better Cash Flow Management

key take aways
Key Take Aways
  • Business Requirements
    • Infosys “Persona” based requirements
  • Workshop & CRP
    • CRP0 – Product exploration
    • CRP1 - Lowes business process
    • CRP2 - Day in Life View – Train the Trainer
  • Customization Decision
    • Infosys Value based Governance Framework
  • Stakeholder engagement
    • Proactive communication to end users
    • User Communities – Lowe’s Connections
  • Deployment
    • Fool Proof Go-Live rehearsals
thank you
Thank You

Kevin Dioquino - Kevin.L.Dioquino@lowes.com

Rajesh Rajagopalan - rajesh_rajagopalan@infosys.com

Sudharsan Srinivasaraghavan - sudharsan_s@infosys.com