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December 18th, 2014 | Derek du Preez | Diginomica

TD Direct Investing rolls out Coupa to get to grips with spending

TD Direct Investing has rolled out Coupa to get to grips with its spending – savings are being made and procurement is getting control of costs as a result

 

TD Direct Investing is a UK-based offshoot of the very large Toronto Dominion Bank in North America and provides online share trading to customers. Although TD Direct, by its very nature, is very used to handling and managing all things money related – up until a couple of years ago its internal spend management systems were in desperate need of an overhaul.

 

Senior relationship manager at TD, Jon Utley, who looks after all third-party relationships, procurement, vendor management and contract management, explains that when he joined the procurement team it was very small and all procurement processes were carried out manually using Excel. He says:

 

“I think it was around 5% of our third party spend was coming via procurement, effectively we were doing the stationary and a few bits and pieces and not a lot else. That was one part of the problem. The bigger problem was our invoice approval system – we would spend all of our time sending out invoices to the business to approve as a valid expense, but we had no means of tying this back to a commitment to spend or a purchase order. So a lot of our invoice approval was based on: we think it’s this sort of cost, we think it’s this cost centre, we think this person might have bought it, we then try and identify the person that has committed to that spend way after.”

 

As a result, a lot of the time TD was posting costs incorrectly because it wasn’t taking the time to check who was going to accept the cost, which cost centre it was coming from, what type of cost it was, or even whether the cost was planned. It needed a whole new purchase to pay process, which sparked the decision to start looking for new purchase to pay solutions on the market.

 

Utley initially considered TD’s internal systems, as the company’s ledger, invoice approval and IT ticketing system all had elements that could do purchase orders – but it was decided that none of them would meet the need of a full purchase to pay solution.

 

Luckily, TD’s parent bank – Toronto Dominion in North America – had just signed a large enterprise agreement with spend management cloud provider Coupa. Utley says:

 

“So I went to see Coupa in London and it was clear to me that the product was very, very good – it was probably a bigger solution than what we needed, but because we had signed off in Canada we were able to speak with Coupa and that tie up enabled us to secure a very good deal here in the UK that made it cost effective for us to go down that route. Effectively it was like buying a Mini and getting a Rolls-Royce. 

 

Not only was it a good product, but some of the key attractions were the ability to set up and configure yourself, without any IT involvement. I saw it as an opportunity where we could get something up and running very quickly, have it entirely within control and it met a lot of our other needs. We don’t do a lot of purchasing, but we do use a lot of the functionality – for example, we took the opportunity to take out the contracts module, which has been particularly useful for us.

 

It has meant we now have a database, for the first time, of all of our contracts so that we can track renewal dates on our contracts and store information against that contract relating to its performance.”

 

Utley explains that one of the key issues facing TD when he joined was that a lot of the contracts were five to ten years old and when they came up for renewal, they would just roll-over automatically. As a result, TD couldn’t revalidate the costs and it would end up getting tied into a contract that it didn’t need. Coupa has now enabled TD to put all of these contracts into the system, where it tracks the renewal dates and allows Utley’s team to take actions in a timely manner. Not only this, but Coupa also stores all of the service reviews and performance data against the contracts in a central place for the team to manage.

 

TD’s total third party spend in the UK is approximately £35 million – Coupa has enabled TD and Utley to better manage this spend, where most of it is now going through the procurement team. He says:

 

“On the purchasing side, Coupa has enabled us to roll-out a process across the business that our users have welcomed. It’s very easy and intuitive to use, there’s no real need for end-user training.

 

We have increased the throughput through procurement, certainly on the transactional side, up to about 20% of third-party spend. The rest of our third-party spend is primarily contracted – and now we have those contracts on Coupa – what that does is give me and the team visibility of around 90% of our total third party spend.

 

There are other things we could do to increase that further, we could put expenses on Coupa, but unless they were going to give us the functionality at a drastically reduced rate, it’s not economic for us. It’s not an immediate priority.”

 

Unfortunately, TD has had to put the invoicing part of the process on hold because it is now swapping out its general ledger system so that it is better aligned with the parent company Toronto Dominion Bank. Utley says that this was “a bit infuriating” but it is something that he intends to pick up once the new system is in place because the procurement team is “very excited about having the full purchase to pay picture”.

 

Utley also explains that there were two main challenges with getting Coupa up and running – but as we see time and time again with enterprise software, the problems didn’t actually lie with the vendor, but TD itself. Utley says:

 

“I think our challenge here in the UK was that we are a very small team, a bit tight on resource, we didn’t have people with procurement experience, we didn’t have existing processes, not all of us were technically competent. I think the first month or so was quite daunting. But it’s one of those things, the more you use and learn the product, it becomes more intuitive. The challenge was us being able to put the time, the effort and the right people in at the right time.

 

Also, I used Salesforce in the very early days when it first came out, and what I learnt from Salesforce was that it was incredibly intuitive and easy to use, so you rush ahead setting all sorts of things up, putting all sorts of things in place and after three months you’ve created something that’s not sustainable.

 

Coupa is similar in that respect – the challenge is understanding what you can do with the system in the first few months. I think any advice I would give to people is that while there is a desire to get things up and running as quickly as possible, it’s always worth taking that little bit of extra time to think a few things through and make sure you’ve got the right people in the room to make some of those decisions. I think for us a lot of it was very little experience of purchase to pay and procurement processes in the team at that time.”

 

However, despite these challenges, TD took the time and made the investments to get the implementation right. And the evidence is not only seen in the amount of spend going through the procurement team now, as highlighted previously, but also the savings that the company expects to see. Utley says:

 

“There have been savings – but those savings have only been realised because we have visibility and transparency across our cost-base. I know who is spending what before they spend it, I’ve got the opportunity to stop it, or validate it, or renegotiate that spend, I know what spend we have committed to, I know where the opportunities lie, I can make timely decisions on our contract renewals and more importantly the ability to plan more effectively financially.

 

If we can put £3million to £5 million through the system and we can get 5-10% savings on everything that comes through the system, you are talking quite big savings for an organisation of our size.”

 

Disclosure: Coupa is a diginomica partner.

 

 

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October 21st, 2014 | Nancy Clinton | Spend Matters UK/Europe

Coupa Inspire EMEA — Announcements and Customer Comments

 

In part two of our review (see part 1 here) of last week’s Coupa Inspire event, we look at the important messages …

 

In true Coupa style, they made the most of the opportunity to coincide their first EMEA user conference with some big announcements, sending the press releases out that morning.

 

Firstly: Coupa EMEA posts record growth as global enterprises and partners embrace the Coupa Cloud Suite. EMEA is Coupa’s fastest-growing region with 250% YOY revenue growth, 9 new partners in one quarter, a worldwide customer support centre in Dublin to support EMEA operations and

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October 20th, 2014 | Nancy Clinton | Spend Matters UK/Europe

Coupa Inspire EMEA and 3 Announcements: Record Growth, Version 12 and a New Partner

 

Now, I would normally tweet live from an event, but at Coupa Inspire on Thursday last week there was so much to take in, visuals, music (loved the music, especially Alex Kleiner giving his keynote address to – who’d have thought – Metallica), lights, buzz, and more customers taking the stage than I’ve ever witnessed before, that I genuinely didn’t get time. It really did feel a bit like being on a set: “Lights! Camera! Sound! Action! and then the whole thing exploded! In fact there is so much to report back on, that you may have to look out for some additional posts

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October 9th, 2014 | ComputerWeekly.com | TechTarget

Application integration demands a light touch in the cloud

The appeal of cloud applications is irrepressible. Low capital costs, flexibility and “free” upgrades – anyone who has experienced behemoth on-premise application upgrades can be easily swayed by the appeal. 

 

Last year, IDC forecast that from 2013 to 2017 spending on public IT cloud services would enjoy a compound annual growth rate of 24% – five times that of the

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September 8th, 2014 | Ilene MacDonald | FierceHealthFinance

Molina Healthcare's new centralized procurement operation saves time, money

Accounts payable (AP) and the cloud may hold the secret to providing quality healthcare.

 

At least that's what Molina Healthcare--an organization that provides healthcare to financially vulnerable families and individuals covered by government programs--discovered when it created an in-house centralized procurement operation, a move that kept administrative costs down while it expanded staff and membership.

 

Rapid growth was the main reason the Long Beach, California-based organization, which offers health plans in nine states and has medical clinics in California, Florida, New Mexico, Virginia, Washington and Utah, decided to centralize the process, Bryce Berg, vice president of corporate administration (pictured right), told FierceHealthFinance in an exclusive interview.

 

When Berg came to Molina in 2010, the organization was experiencing

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September 4th, 2014 | Proquest LLC | Insurance News Net

Molina Healthcare's Bryce Berg Gets Coupa Innovation Leaders Award

Coupa Software reported that Bryce Berg, Molina Healthcare's Vice President of Corporate Administration, has won Coupa's Innovation Leaders Award in Healthcare.

 

The company said that the award recognizes Berg's successful transformation of Molina's procurement sourcing and invoicing processes, an initiative that has facilitated Molina's growth.

 

According to a release from the company, the Coupa Innovation Leaders Award recognizes

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September 2nd, 2014 | Stuart Lauchlan | Diginomica

Coupa’s Irish eyes are smiling as global customer support moves to Europe

California-based spend management firm Coupa is shifting its global customer support operation to Dublin, Ireland as it looks to be perceived as an international player

 

One thing the Irish government has done well is prove to be an attractive destination for US tech companies – and increasingly cloud companies in particular – to set up their European headquarters. Last week, for example, Derek highlighted Birst as being the latest to join the likes of Google and Amazon in the Emerald Isle.

 

But none of those firms has done what spend management firm Coupa has just done which is to route its entire global customer support operation through Dublin.

 

In addition, Kieran Brady of Coupa Dublin has been

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June 25th, 2014 | Jason Busch | Spend Matters

Coupa Inventory: Expanding the P2P Value Proposition and Surrounding Core Financials

 

Earlier this spring, Coupa provided a briefing and demonstrated a version of its latest inventory module to Spend Matters. Coupa sells its inventory module as an add-on to core procurement but separately from accounts payable, contracts management, and other suite components. But the question remains: in its initial release, does it provide enough value to justify the added cost and modular expansion for companies using other Coupa suite components?

 

After seeing it, Chief Research Officer Pierre Mitchell and Managing Director Jason Busch argue in this Spend Matters PRO research brief that Coupa’s new inventory management capabilities are likely to bring the company closer to marginalizing the

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May 27th, 2014 | Paul Demery | InternetRetailer.com

An online procurement system slashes costs for a health care company

 

With a new online procurement system for stocking its 55 health care facilities with supplies ranging from medical equipment to cleaning supplies, Avalon Health Care is saving money while also slashing the time it takes to receive supplies.

 

With 330 people buying supplies across its 55 health care facilities in several 

 

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May 27th, 2014 | Gurjit Degun | SupplyManagement.com

Coupa, Basware and Ariba 'lead the e-procurement pack'

 

E-procurement providers Coupa, Basware and Ariba have been recognised as leaders in the field by Forrester Research.

 

The Forrester Wave e-procurement Q2 2014 noted that Coupa is “the most customer-centric organisation with the most flexible product”.

 

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