Page 13 - Eversource and SAP Supply Chain Value Expansion with SAP Working Capital Management & Supplier Risk Management

WORKING CAPITAL MANAGEMENT SAVINGS
2020 - 04 To 2021 - 03

Benefits Savings Calculation for Best In Class Savings
Utilize this section to understand the savings generated from: Savings captured through increased
days payable outstanding and/or seeking early payment discounts for strategic suppliers. By 4.54 M 51.31 M 55.85 M
automating the invoice process, reducing the invoice-to-pay cycle, and proactively seeking early +
payment opportunities, buyers can take advantage of early payment discount savings. Discount Savings DPO savings Working Capital Savings
Definition
Discount Savings: Savings Calculation - Details : Best In Class Savings
Savings estimated based on supplier discount estimated on invoice reconciled spend coming from
P2P or AN. Spend Throughput is the reconciled spend. This metric shows a range of possible Discount Savings
savings based on the assumption that the customer moved either from the bottom quartile to avg
or the latter to the top quartile. The quartile performance is based on benchmark Savings from
Discounts Estimated/$B.
DPO Savings: 6,330.41 M X 717,423.23 4.54 M
Savings estimated based on savings estimated from the Weighted Average Cost of Capital on Savings from Discounts
invoice reconciled spend coming from P2P or AN. Spend Throughput is the reconciled spend. Invoice Spend Estimated/$B Discount Savings
Document throughput is all Invoices transacted in the given date range. This metric shows a Reconciled Invoice Spend SAP Ariba Benchmark
range of possible savings based on the assumption that the customer moved either from the
bottom quartile to avg or the latter to the top quartile. The quartile performance is based on
benchmark DPO.
Solutions in Scope
DPO Savings
Discount Savings: SAP Ariba Buying and Invoicing, SAP Ariba Invoicing, Ariba Network
DPO Savings: SAP Ariba Buying and Invoicing, SAP Ariba Invoicing, Ariba Network X 59.17 X
Savings Methodology 6,330.41 M 365 5% 51.31 M
Discount Savings = Invoice Spend X Savings from Discounts Estimated/$B Weighted
Data Source Savings from Discounts Estimated/$B: SAP Ariba Benchmark Invoice Spend Industry DPO Average Cost of DPO Savings
Capital
DPO Savings = Invoice Spend X Industry DPO X Weighted Average Cost of Capital
SAP Ariba
Data Source Industry DPO: SAP Ariba Benchmark Reconciled Invoice Spend SAP Ariba Benchmark Assumption
Weighted Average Cost of Capital: SAP Ariba Assumption
Filters
Invoice status = "Reconciled"

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