Page 3 - FlipBuilder Test
P. 3
Estimated Incremental Steady-State Savings
Impact area Improvement opportunity Conservative Likely
Spend compliance • Expanding use of catalog content $800 K $1.8 M
• Ensuring purchases and invoices are based on negotiated
contract pricing and terms
• Reducing overpayment errors
Process improvement $500 K $1.2 M
• Reducing lost purchase orders and time spent expediting
• Reducing invoice exceptions
• Improving planning process efficiency.
• Reducing costs: people, legacy technology (such as EDI), paper, postage
• Reducing total payment processing costs
Working capital $1.0 M $1.3 M
optimization • Optimizing early payment discounts
• Improving working capital with days payables outstanding (DPO) extension
• Eliminating inventory and working capital from the supply chain
• Reducing carrying cost of eliminated inventory.
Price reduction • Better tactical sourcing practices and competitive bid process $11.0 M $12.4 M
• Per-unit cost savings
Total $10.3–11.9 million
Estimated annual benefits
© 2020 SAP SE or an SAP affiliate company. All rights reserved. EXTERNAL Joann and SAP Ariba proprietary and confidential | 3 3
Customer
