CLIENT STORY

Smart spend happens

KPMG helped a global insurer design and build a single, streamlined and user-friendly procure-to-pay process on Coupa technology for deployment across 120 countries.

Client
A global leader in risk management, insurance and reinsurance brokerage
Sector
Financial services
Project
Procure to pay (P2P) transformation
  • Client challenge
  • Benefits to client
  • Approach
  • KPMG insights

Client challenge

This client’s global P2P platform had grown over time into a complex landscape of fragmented systems and disjointed processes that were not well defined or user friendly. KPMG supported an enterprise-wide P2P transformation, helping to design and build a single, streamlined, and user-friendly P2P process that will be deployed across 120 countries.

The global P2P platform needed world-class enhancements. Each business and region was pursuing its own purchase order process, with lack of standardization causing delays in approvals and order fulfilments. A lack of systems and disjointed front-end processes created a strong reliance on manual interventions and workarounds. Users had to navigate uncertainty, thereby increasing exception behaviors, and limiting adoption of agreed processes. 

In addition, the lack of automation was leading to surprises, unexpected spend, and an inability to accrue accurately. Approvals were based on manual processes story and often gathered after the spend occurred. This hindered the ability to gain spend visibility and achieve sourcing efficiencies.

Benefits to client

The KPMG team implemented an integrated Coupa P2P technology platform to enhance the client’s ability to automate and report on procurement processes across the organization. Simplicity and ease of use by internal customers were key objectives in the design of the new system. 

Team members reduced unnecessary complexities in the requisition and invoicing processes to limit exception behaviors. They also leveraged a more streamlined process to reduce manual interventions and drive out inefficiencies within the P2P organization. Buying channels were simplified through a consolidated approach, purchasing options were rationalized, and effective approval workflows were embedded into the new system, all of which limit spend leakage and increase procurement’s ability to influence and control spend.

Based on a pilot implementation of Coupa, spend under management increased 40 percent; user adoption reached 57 percent the first month; catalog spend increased 50 percent; and e-invoicing went from from zero to 45 percent.

Approach

APPROACH

KPMG completed a comprehensive planning phase for the Coupa P2P implementation that included assistance in selecting a P2P technology solution and the establishment of a global program management office (PMO). The KPMG team also developed an implementation plan for the global core model design phase and UK deployment; established the scope of the change management efforts; and established workstreams and ownership of critical implementation requirements.

The global core model design phase included standardizing P2P process design and developing application configurations from input captured across all key global geographies and key stakeholder groups. KPMG professionals also implemented the Coupa P2P system in the UK as a pilot deployment and established the baseline for future go-lives. In Phase II, the Coupa solution was rolled out for the US and Canada as well.

Finally, the team developed and executed the supplier enablement strategy to onboard approximately 2,000 suppliers. Efforts included onboarding suppliers on the Coupa Supplier Network (CSN), integration of punchout supplier catalogs, and integration of cXML suppliers for electronic document exchange to support the processing of purchase orders, invoices, and payment status.

KPMG insights

Plan for great

Even before the first stage of implementation, think in terms of a step change in the procurement process, not just incremental improvements in operations. Be sure to identify benchmarks for success in terms of customer usage, overall business value, and long-term growth of the system. Mind the details but keep your eye on the big picture. You can’t get to great unless you know what great looks like.

Match global projects to global teams

Global implementation projects need in-house resources across multiple countries. In addition, third-party consulting firms should have a strong international presence and a deep familiarity with local markets, cultures, tax regimes, regulations, and legal structures.

Teach the client how to fish

As the saying goes, give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. Even a complex, enterprise-level software platform should be implemented with tools and methodologies that client resources can use in the future to modify the system themselves.

In the pilot implementation, spend under management increased 40 percent, catalog spend increased 50 percent, and user adoption was 57 percent in the first month.

 

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