Purdue Pharma & SAP Ariba - Creating Long-term Sustainable Value for Purdue Pharma - Premikati
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Purdue Pharma & SAP Ariba Creating Long-term Sustainable Value for Purdue Pharma
Linking Purdue Pharma’s Vision to the Value of SAP
Purdue Pharma Inc.
How can SAP Help Business Benefits
Vision & Strategic Priorities
Purdue Pharma’s vision is to position the By partnering with SAP, Purdue Pharma can Purdue Pharma can realize significant benefits
company as a leading life sciences company streamline the following processes and through process improvements:
by providing innovative, sustainable products accelerate its journey towards achieving its
• 1,416.2 K in annual recurring benefits
for the prevention and treatment of diseases vision:
• Sourcing • 2,238.8 K in one-time benefits
To achieve its vision Purdue Pharma is focusing
on: • Supplier Management
This analysis elaborates on the potential benefits
• Building a portfolio of differentiated medicines • Contract Management
that help patients live longer, better lives that SAP solutions can enable for Purdue
• Embracing emerging digital technologies to • Buying and Invoicing Pharma.
help drive innovation and improve efficiency
• Bringing medicines to as many people in need
as possible SAP can help Purdue Pharma in accelerating
• Strengthening and maintaining an excellent the journey to the intelligent enterprise.
workplace where every person feels valued and
respected
*The steady state benefit represents the potential benefit that can be gained in an year by considering 100% realization for the value driver
© 2021 SAP SE or an SAP affiliate company. All rights reserved. | CONFIDENTIAL 2
Recurring benefits One-time benefit
Purdue Pharma Inc. Can Realize Significant Benefits
Sourcing and Procurement
Currency: U.S.Dollar
Reduce days in inventory 1,970.0 K
Reduce time to market for new products 743.8 K
Comprehensive improvement on indirect spend 476.5 K
Improve days payable outstanding 268.8 K
Improve sourcing savings on direct spend 56.1 K
Potential Cumulative Value
Improve procurement FTE productivity 39.3 K
Reduce inventory carrying cost 31.9 K
1,416.2 K 2,238.8 K
Improve tactical sourcing savings 23.8 K
Reduce revenue loss due to stock-outs 14.8 K
Improve incremental discounts 13.3 K
Improve supplier/external partner compliance 10.7 K
Improve accounts payable FTE productivity 6.0 K
Note: The steady state benefit represents the potential benefit that can be gained in an year by considering 100% realization for the value driver
© 2021 SAP SE or an SAP affiliate company. All rights reserved. | CONFIDENTIAL 3
PUBLIC
Paylocity: Consistently Recognized
Nationally for Technology Industry
Innovation, Culture and Growth
Among Paylocity’s accolades is consistently ranking in recent years among top 20
companies to work for, according to Glassdoor, for example. This may come as no
surprise considering their payroll and benefits core competencies – and a culture that
champions diversity, equity and inclusion. The company also has a penchant for progress
in many other respects, as Paylocity Director of Procurement Sabine Bieschke knows first-
hand. She brought more than 20 years of direct and indirect procurement experience to
this position she began in 2019.
Bieschke’s well-honed expertise included similar roles at much larger companies, such as
a multinational engineering and IT leader with 400,000 employees and $14 billion in sales.
Learn how contract management, procurement innovation and related best practices now
contribute to bottom-line success in the mid-size enterprise space where Paylocity thrives.
© 2021 SAP SE or an SAP affiliate company. All rights reserved. | CONFIDENTIAL 4
Picture Credit | Paylocity. Schaumburg, IL. Used with permission.
From Contract to Procurement Management, SAP Ariba Delivers
Before: Challenges and Opportunities “SAP Ariba is critical to our digital transformation
• Need for comprehensive contract management system to optimize related agreements journey – an investment that has and will continue
• Standardizing and strengthening procurement processes also among key objectives to pay off without a doubt. It’s an integral aspect of
• Company’s growth and expansion as publicly traded company warrants turnkey solution supporting our operations, securely available to all employees
leaner processes and increasingly faster “speed to market” essential to technology industry success and departments.”
Sabine Bieschke, Director of Procurement, Paylocity
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC ǀ
Why SAP and Premikati
• Extensive review of competing contract management and procurement systems resulted in SAP Ariba
standing out as best overall choice for Paylocity’s growing business and encouraging outlook
• Premikati “a great all-around implementation partner” that provides ongoing support as needed
• Overall solution expected to address vast majority of needs without customization or extensive training 10% 99%
Estimated annual cost Leverage of SAP Ariba “as
After: Value-Driven Results savings with SAP Ariba since is” with no more than
January 2019 deployment estimated 1% customization
• A contract and procurement management system “that’s designed to grow with a company like ours”
and highly reliable in unanticipated circumstances such as with work-from-home pandemic mandates
• Able to centralize contract storage, strengthen compliance, and automate the creation, execution and
management of any type of contractual agreement spanning more than 700 suppliers
• Entire base of 3,600 employees able to access and leverage SAP Ariba as needed, with powerful Featured Partner
security, role-based authorizations and controls, streamlined approval processes, etc.
• Supporting direct-to-manufacturer agreements, wholesaler partnerships and unique LoB demands
Paylocity Industry Products and Services Employees Revenue Featured Solutions and Services
Schaumburg, IL Professional Payroll, Workforce Management, 3,600 561 Million SAP Ariba
www.paylocity.com/ Services HR, and Benefits
© 2021 SAP SE or an SAP affiliate company. All rights reserved. | CONFIDENTIAL 5
Scaling Up, Sharpening Processes and Cutting
Costs While Optimizing Contractual Agreements
Paylocity Director of Procurement Sabine Bieschke had a vision when she joined the
company to make contract management functionality a top priority “to get right” before
moving quickly thereafter to advance, scale up and streamline procurement. “We set out
to do the initial deployment in no more than 12 weeks – and easily beat this target. The
investment yields many thousands of dollars in related annual savings.”
Best practices inherent with SAP Ariba are a major advantage, according to Bieschke, yet
in “ways that complement how we do business.” This means fitting their ambition to nimbly
and swiftly serve clients, with supplier pipelines and agreements that ideally meet quality,
cost and timeframe specifications whether direct or indirect procurement.
“SAP Ariba gave us the flexibility we needed to initially focus sharply on
contract management and then unfold into big-picture procurement processes
as well as supply-chain optimization. A high-caliber implementation partner,
Premikati, made related challenges painless and inconsequential.”
Sabine Bieschke, Director of Procurement, Paylocity
© 2021 SAP SE or an SAP affiliate company. All rights reserved. | CONFIDENTIAL 6Follow us www.sap.com/contactsap © 2021 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See www.sap.com/trademark for additional trademark information and notices. © 2021 SAP SE or an SAP affiliate company. All rights reserved. | CONFIDENTIAL 7
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