Zurich's Source to Pay Overhaul, Featuring KPMG & Coupa
Zurich Insurance Group has been at the forefront of serving global customers but was hindered by a disjointed source-to-pay (S2P) system. This system was not only outdated but also failed to meet the evolving demands of modern business operations. The necessity was clear: Zurich needed to overhaul their procurement technology to simplify and modernise, aiming for a unified approach that would enhance efficiency throughout their supply chain.
For this task, Zurich joined forces with KPMG and Coupa. Together, they embarked on designing and implementing a future-ready, streamlined S2P system. With Zurich operating in 215 countries and catering to 55,000 employees, the challenge lay in the old system’s fragmented and unfriendly user interface. It was more than a decade old, laden with manual, error-prone processes that negatively impacted spend visibility and reporting accuracy.
Sally Davis, Project Co-Sponsor from Zurich Insurance Company, underscored the inadequacies of the previous system. She said: "Zurich’s previous spend management tool was fragile and ill-equipped to move into a future world. Our world and our expectations are changing and we need a system to help take us there."
Streamlining operational complexity
A major goal for Zurich was to achieve standardisation across its operations. The pre-existing system was highly intricate due to differing regional systems, 3,000 customisations in their old tool, and numerous applications needing redundancy. Addressing these issues required robust planning and coordination, as the new system’s rollout needed to accommodate various stakeholders from diverse departments and regions.
The solution devised by KPMG harnessed the powers of Coupa to establish a singular procurement and expenses system applicable across the entirety of Zurich. This transition to electronic purchasing and invoicing streamlined processes, curtailed unrecorded spending and reduced manual tasks significantly.
To ensure inclusivity and alignment, the initiative incorporated a three-day collaborative event. This forum facilitated stakeholder engagement from every level, promoting a global design strategy that could be locally customised if necessary. This integrative approach was pivotal in designing and deploying the new S2P system effectively across Zurich’s global operations.
Achieving transformative outcomes
Phil Soderberg, Global Head of Procurement and Vendor Management at Zurich, shared insights on the impact of the new system: "We had the opportunity to deliver a better end user experience, that was simple, easy to use, and mobile enabled. Together we delivered just that."
The implementation of a uniform S2P process throughout all regions heralded tremendous improvements. Notably, it enhanced reporting accuracy and automation, streamlined user experiences, and boosted operational efficiency with touchless electronic invoicing. Post-implementation statistics highlighted a reduced average approval time for purchase orders to just 2.4 days, with more than 800 suppliers engaging via the Coupa Supplier Portal. The widespread adoption across Zurich’s divisions marked a significant milestone in their operational strategy.
"Coupa has given us an easier to use, easier to access procurement tool - this has changed the view of procurement in my business in a very positive way," remarked John Keppel, former UK Chief Operations Officer and now Chief Sustainability Officer at Zurich UK.
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