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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. Introduction Lowe’ s Overview Program Scope & Challenges Advanced Procurement Benefits

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Advanced Procurement Solutions at Lowe ’ s A Success Story

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  1. Advanced Procurement Solutions at Lowe’s A Success Story Kevin Dioquino, Procurement Manager, Lowe’s Rajesh Rajagopalan, Lead Consultant, Infosys September 25,2013

  2. 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

  3. Introduction Speakers introduction

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. Conclusion & Discussions

  22. Thank You Kevin Dioquino - Kevin.L.Dioquino@lowes.com Rajesh Rajagopalan - rajesh_rajagopalan@infosys.com Sudharsan Srinivasaraghavan - sudharsan_s@infosys.com

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