Episode 2 - Understanding sourcing, vendors & purchasing | Architecting the Future of Procurement

Hello everyone, thank you for joining in. So welcome back. Hello everyone, thank you for joining in. So welcome to our Thursday procurement series, and let me then get started. If you're joining for the first time, just to say hi, FT in the chat box, or if you are coming again and again, still say procurement. Okay, so today is a day of procurement, and as I say always, we cover— we have a prime series. This is an 8 PM series, and we talk about 7 different topics in 7 different days. So today's topic is Procurement Thursday. As I say, Procurement Supply Transformation Series, and the business journey is all about source to pay. And today we'll be focusing— this is the episode number 2. If you have watched— if you have not watched the previous session, just to go to my YouTube channel and you watch the first series and the first episode, by the way. And as I said, if you're staying till the end in the channel or if you are staying in the webinar, you will be getting some of the gifts, which is actually having a Cloud Playbook, and there is a Procurement Thursday, there are some career roadmap. These are resources you'll be getting. Okay, and also there are 5 super bonus: Cloud Playbook, super bonus LE5 Guide. I don't want to explain what is LE5, you will discover it inside it. And there is a career roadmap, there is skills checklist, there is also beginner guide if you are a beginner. Okay, just like if you are starting just your career procurement point of view, very new to you, you can start with that. So that is what exactly the promise, uh, so stay till, till the end, then we will be going ahead. Okay, so now you'll be getting all the gifts and all. So before that, we'll be also having an announcement today that, uh, we are announced a Product Innovation Lab, okay, which will be getting in our platform very soon. And everything whatever you are doing as per this lab, okay, you are already a Diamond members, so you'll be getting access to this in our platform. So we have launched these things and there are do's and don'ts and also the case study-based approach. And there are different frequently asked questions, what kind of lab we should be having. And also we'll be applying all of this whatever you're learning and we'll be going to this lab and we will be also applying. Okay, so this is what exactly you'll be getting. And if you have not attended any of the workshop and bootcamp, any of these things, you can simply go to our website. This is exclusively available for everyone and you can go and enroll for any of these things, okay, which is required for you. Then maybe you can also have a book a session and these are live session free, okay. So you can simply go there, join our daily webinar Discover Now. And if you go there, it will take you to a page called transformation.successlabsacademy.com, and from here you can reserve your seat. This is completely free and free access, you'll be getting that. Okay, so with that note, let me then get started. Today's topic, Procurement Thursday, and today's topic is very special and very close to my heart. And also, if you have attended my earlier session, we have taken a case study from a food industry, especially maybe a foodie. And also, so we have taken an example. Even you learned a session in the FICO module, if you have seen that, we also conducted a session on the idli, right? And from there, from kitchen, then we went to the enterprise architecture, solution architecture side of it. In the same note, same theme, uh, we will be starting today's topic. So already, let's say it is ready for you especially, and but who actually bought the rice for your idli? So that is the context we are setting here. And from there I will connect the dot, the story, to the procurement. Okay, so we will understand today, this is, uh, what is sourcing, understand the sourcing, vendors, and purchasing through the lens of the simple everyday food. So this is just an analogy to connect the dot where it will be easy for you, especially for a beginner, right? And so that is something we'll be connecting the dot. Okay, so with that note, let me start. Let's say your idli, we talk about any food or any of the items, right? It doesn't start in the kitchen, right? It is not like that one day morning you woke up and asked for, I need idli, I need this dosa, or I need this aloo paratha, or some other of your favorite dishes, right? It doesn't come like that, okay? Even if you've ordered something, like, I'm not talking about ordered food from your food delivery app. Rather, I'm talking about the authentic which you are actually preparing in your kitchen. Okay, it didn't start with the kitchen, right? So directly before the idli reaches to your plate, there is a hidden procurement chain happens. What is that chain? Can anyone tell? Right, so you can think about it. What are the process inside? What are the process behind whenever you're preparing the idli reaching the plate? It's very simple that you are eating idli, but behind us, even if you are going for any restaurant or hotel, or even if you're ordering, right? So there is a behind the scene process. Okay, so there is a hidden procurement chain. That is a chain which you will be talking about. Let's say we will be having an AI exercise, why not, right? As we discussed, we'll be asking Gemini about this. Let's see that. Okay, think about the idli before it reaches the plate. There's a hidden procurement chain is talking about, right? But what is that procurement chain? Can you just explain? Uh, I'm pretty much new to the procurement process. So let's see that what it is giving me, okay, who actually brought the Italy. So you can see that sourcing means here in this, like, in this context, okay, planning and finding the— before you buying anything, you actually take some decisions have to be made about what to buy and who to buy it from, right? So we identified what are the— for any other dishes, what are the, you know, ingredients required, okay? And you require urad dal, maybe in this case rice and urad dal should come from a particular region. And let's say you evaluate suppliers for that, market research, you do that. Then your vendor management, this is all about relationship and standards. You're onboarding and vetting, you do it. We will go in technically, they have gone a little bit technical side of it, but we will discuss about it. But this is what exactly you'll be talking about Okay, once it is the vendor management relationship and standards, the onboarding, negotiating contract, all of these things happen, right? But thing is, it is a lot of process going. So we have 3 process. We have a sourcing process, that's the planning and finding process, vendor management process, that is a relationship and standard process, and we will be having a purchasing, the actual execution process. That means you actually, the kitchen or inventory manager raises a formal request that how many kg of rice you need, and a PO is sent to the approved vendor, and governance and control is there, delivery and payment is there., right? Then that is a bridge between the farmers who are the suppliers and your plate, right? So this is what exactly happens in general. So let me pull this to a mind map, okay? So let me check it out if I'm creating a mind map for you. Let me do that, okay? So I will say that understanding— so the today's topic, as I was saying, that today's topic is more of a Let me go to today's topic once again in depth, the episode number 2. That is the number 2 episode. So let me go there. That is the episode number 1 was We Did It, Italy for FICO, but Procurement Runs the World. That was the first episode. Second episode is Who Actually Bought the Rights for Italy. And this series will go on, so I've already planned for it. And today's second episode, so Understanding Sourcing. Vendors and purchasing. So we'd like to understand them in a very simplistic manner. Okay, so now my idea is to— nothing is actually difficult. So here what we discussed, if I present it further, right? And if I present it here, let me present it for you, right? We'll understand the sourcing, vendors, and purchasing from a different context. Okay, so the sourcing, which is actually we're talking about, the core idea is, uh, here very simple example which I've given, right? Right, to understand the where should the ice— so especially from Italy, I'll give you an example of Italy— where should the rice come from, which vendor can supply it, what is the price is acceptable, what is the quality, and is it acceptable or is consistent, can the supply deliver on the time, right, who approves the purchase, and how is the payment process. These are entire 7-8 things goes behind the scene before the Italy comes to your plate., right? Isn't it? So this is the core idea. Then we will connect this idea to our enterprise from understanding a product point of view. From a learning angle point of view, I will say that this is the foundational thing. The sourcing is how you find the right supplier. Vendor management is how we select and maintaining the, those supplier relations, because you will not be having only one supplier, there will be multiple suppliers, right? Then finally purchasing, you create actual buying trend. These are three things. This is actually the simply simplistic story. Now if any company, okay, so buying rice is not like buying it from a local shop, right? It is actually you have to have a proper vendor, approved vendor, negotiated rates, your PR, purchase requisition, purchase order, delivery tracking, invoice matching, supplier performance, lot of more these things goes behind the scene, right? So the message here is procurement is not about only that you are procuring, it is It's not about only buying, right? A lot of other things, the entire chain goes behind the scene, right? We have to ensure the right material is reaching to you, right place, right time, right cost, from the right vendor. There are 5 rights, okay? As I say, right material reaches the right place, right time, right cost, right vendor. 5 things here, okay? So this is the entire system. Whenever I'm saying, talking about the procurement, that is the entire system, the entire chain, the transformation, the entire chain, transitional chain. Okay, and that is what exactly we will be talking about, right? So today episode, as I say, is a very beginner-friendly. As I said, we are not going too technical, but this is very, you know, like user-friendly, beginner-friendly session. So, okay, and we will also understand the procurement professional. They're not only purchasing people, okay? They also do a lot of— even if you're using AI, a lot of things, but still the decision-making. So their decision-making Actually, there are a lot of decision-making happen because who will be protecting the cost, they will also protecting the quality of the material, quality of the supplier, there will be business operation, they will be also monitoring that, and also the supply continuity also should happen. So that is from a carrier perspective. And before we go to EA and BA angle to it, so I will also talk about here, this is something especially if you are an enterprise architect. Okay, so you are business architect, okay, you may not be involved too much into the configuration side of it, but before, at a high level, we have to understand if it is a business capability that has to work end-to-end, okay, we will try to understand what are the capabilities you are seeing here. The capability is your sourcing, as I said, then vendor management, purchasing, then you will be receiving, then invoice verification, your payment, and then supplier performance. So these are 7 capabilities from from an EA point of view, you have to think about it. Now if you talk about the value stream, if you have not attended any of the value stream sessions, I will recommend Saturday sessions where we talk about all of these terminologies. These terminologies I'm not going to repeat now in the interest of time, but in that case I have to recommend you attend my Saturday sessions where I talk about business transformation management series. In that I cover enterprise architecture, business architecture, data architecture, mostly those are architectural topics and business transformation management topics. So there I've actually explained capabilities, end-to-end value stream, what is the value stream, all of these things, right? So in a very simple language, so here the entire chain I will talk about, what is the process point of view from a value stream point of view. So from entire procurement point of view, you identify the need, then your supplier is selected, then you create your purchase order, then you receive the good, Goods received, then you do a matching of your invoice, then payment is released. 6 things you do in this entire value stream, right? Then from applications and integration point of view, you will be having your entire procurement suite, your any other module. So we'll not talk about any specific module, but we do have a SAP, we do have other modules in Oracle, similar modules. We have a different package, okay, in Odoo and whatever module talk about, right? Then we're having— I mean, we must be having a vendor portal, inventory system, finance system, account payable, account approval workflow, and all these systems will be connected to a repetitive, a clean integration pattern. Okay, so that is also an expectation. Okay, and fourth thing is data. Okay, so data is an enterprise asset, as I always say. Data is the oil, also organizations say that. But managing data is very, very important here. Okay, so your vendor master data, you'll be having item master data, you'll be having contract data, pricing data, lead times data, payment terms data, risk rating data, and also it can be governed, standardized, and trusted. These are the different things we'll be having. Now the fifth thing is the controls and compliance by design. So you will be— what much approval, your limit, you are doing it, segregation of duty, auditing point of view. So all these things are required. And also many times you may be also having any kind of non-functional requirements also, like reliability, security, scalability, resilience, okay? This is something from a— if you are an enterprise architect, if you are focusing on any of the case studies, okay, on the topics of procurement, okay, it is not possible to go inside or depth of it, but these are the 6 things you have to remember, okay? 6 things you have to assess whenever you're doing. And this is not about training people to buy better, but architecting the entire operating model, system, data, control, right? If you are an enterprise architect or an aspiring enterprise architect, this is for you, okay? So this is a segment which I will say this is for you so that you can understand this part of it. You know, you cannot ignore, and you have to understand Even if not at the configuration level, but a solutioning in-depth level, but at a high level, this is your understanding. So you have to understand idli rice procurement as an enterprise system. So that is just an analogy, just I'm trying to connect the dot between your that side to the enterprise side of it, right? So now we will go to the next part of it. So from a basic BA angle, okay, so from where we talked about the enterprise architecture angle, now we talk about the business architecture angle.. It's all about the real why behind procurement. So business architecture is, I always say that it is strategic business capability focusing on the outcome, not the paperwork. And what are the different blocks, 5 blocks we'll talk about. First of all, talk about the business outcome. What are the business outcome examples? It could be cost optimization, supplier continuity, quality assurance, faster cycle times, reduced risk, and better cash flow. These are different business outcomes you will be talking about. Then stakeholder and value point of view, definitely you have to manage your operations, finance, compliance, suppliers, customers, all the different stakeholders, okay, sitting in different, different part of your organization, right, and outside the organization. So that is what exactly we will be having. And the third things will— third building block for business architecture will be policies and decisions. So who can buy that from whom, under what contract, under which approval threshold, all of these things also we talk about, right. Operating model clarity point of view, You have to talk about the roles, what are the roles— requester, approver, buyer, receiver. All these things will be also focusing on the operating model point of view. Measures point of view, you will be having your purchasing cycle time, contract compliance, supplier on-time delivery, quality rejection, invoice match rate, cost saving, risk and safety. These are different parameters we'll be focusing on. These are 5 different building blocks, and the key takeaway for this business— this entire procurement is a decision system that will protect your margins and also the continuity. Okay. So if procurement breaks, definitely operation is also going to be break, right? So for that reason, be very careful as a business architect. And also whenever taking a requirements point of view from an organization's point of view, to take care of all these 5 things, 5 building blocks which you'll be focusing, right? So as I said, the next part of it we'll talk about, uh, these are something I will come to later point of time, which are the modules involved. If I talk about the entire SAP perspective 2, you have a P2P, Procure to Pay, module. Entire track, we will say that, right? And it involves SAP MM, that's the core procurement, materials management, okay? And it will be talking about your vendor selection process, your purchase requisition, the purchase order, pricing condition, lead times, MOQ, good receipt. This is part of SAP MM, and actually covering your sourcing decision, purchasing execution, vendor master uses, PO processing, and good receipt, okay? Now it comes to FI, okay? This is a FI module. Where you will be having accounts payable and payments. Okay, that means it covers invoice verification, accounting posting, vendor payment, and audit trail. These are the things we'll be covering. Then SAP CU part of it, it will talk about cost tracking and internal accountability. So it will talk about your posting, tracking which department cost spent the money, and budget versus actual. Then if it's required, then we will be having your— if warehousing is a mature one, you will be having EWM, warehouse management, or extended warehouses management.. This is all about receiving, put away, storage, picking, all these things. If you treat actually rice as a stock material, in that case you may be required warehouse, extended warehouse, that you have to manage it. Similarly, in sales distribution point of view, if you are indirect but common dependence, let's say not in buying rice directly, but procurement is often driven by a customer demand. Your demand from sales sort of all of these things, right? Then you will be having a PP, production planning, if the business manufactures something, right? And you are having a quality— that means if your quality inspection is enforced, then you will be having SAP QM. Then we have Ariba, as it is previously— we are having SAP SRM, sourcing and supplier collaboration. If you're using any modern sourcing tool like RFQs, bidding, contracts, supplier onboarding portal, and all of these things, right? Auctions. Okay, then if you need more of a governance risk control compliance, then you may require all of these things, right? So this is what exactly I just thought of talking about, the minimum is required MM, FI, CO, right? And also becomes relevant if you're depending upon the stock materials and for, if you're enforcing inspections and all. But from this point of view, would be required typical organization for SAP for procurement will be MM, your FI, your CO. These are the 3 things you will be having. And yeah, so I think this is what exactly I thought of sharing, the notes Notes. This notes will be available again for everyone who will be joining till the end of the sessions, and that is a gift for you for today's session. If you have missed the session, you will not be getting this, okay, this notes and all whatever I have prepared for you, okay. Now going back to the presentation mode, I will going to the presentation. Let me go back, okay. So here we talked about the Italy to not start the kitchen, and I say I already talked about it, so you will Sourcing, that means where should the rice come from, sourcing the right origin and supplier for your rice material. Then we talked about your specifically from what price is acceptable, negotiating rice with that protective margin. Then we talk about is the quality, that's the QM module I talked about, quality management, okay. And who approves the purchase, okay, governance and authorization control. And I say it starts with the sourcing decisions, your idli doesn't start in the kitchen, okay, it has to start with the sourcing decision. This entire chain I talked about. Okay, so now as I already told, so we will be now talking about this, some picture will be said, the 3 pillars of the procurement. Okay, although we have covered, but in the presentation I will talk about those things. Sourcing, okay, which I already told you, that finding the right supplier, who will be the right supplier for you, evaluating options for comparing quality and identifying who can reliably meet your needs, right? Then we will be saying that vendor management. So everywhere we'll be having the vendor selecting and maintaining supplier relationship, we'll be onboarding them, we'll be performance tracking, you having a long-term partnership with them, right? That is also we talk about, right? Now they will be having a— now you will be having here the, as I said, uh, then purchasing. These are 3 things, okay? Creating actual buying transaction, requisition, PO, delivery, and payment process. These are the 3 different pillars of the procurement: sourcing, vendor management, and purchasing, right? So now we will try to also understand from your sector's point of view. So from sector point of view, if I talk about So we will go back to our Capability Academy. Let me go to my Capability Academy. I will then talk about a little bit about it. Then inside that, we will be seeing which are the modules primarily we focus and all. So for procurement, we have a dedicated academy for that. Okay, we go in-depth sessions here, procurement. Okay, and if you are a consultant, if you're an aspiring consultant or aspiring architect, okay, you will be having this entire bundle. Okay. We have 132+ thing, okay, case studies or capstone projects which will be working, okay. And primarily I will be just giving you a brief about it. These are different courses in the behind the scene we are having, and you will be having an access to it once you are part of our any of the, you know, membership program. Depending upon your membership, you'll be having access to it. And any— if you're joining any of the hackathon program, you you will be getting that because I know you will not be able to finish everything in one day or one month or one year, right? It's a continuous process and we have made it sector-wise, okay? So if you go by sector-wise, so we would be starting with, let's say, you are typically energy sector, right? So if you go for energy sector, you would be going ahead with this and, uh, you will be going through this case study, right, for energy sector lab, okay? So this is the energy sector lab you will be having access. Then you will be having your Ariba sourcing for energy sector. So here we have an Ariba for, you know, sourcing point of view. We will be talking about that. And then we will be having your typically— so then the next one will be your— if I talk about the next one, let me present it for the Hmm, so this is what you will be getting. Applied SAP Ariba Sourcing. Then I will talk about one sector, then we will be up Supply Lifecycle Performance. I was talking about the lifecycle, right? So we'll be talking about the supply lifecycle and about how they're performing exclusively in the energy sector. Okay, so we have a different, different sector, 11 GIC sector following. Then Ariba Contract, because we also manage the contract of those people, and that's the energy sector will be having it. Then we do Business Network, Ariba Buying and Invoicing, Ariba category management, arrival supply risk, spend control tower, and SAP Analytics Cloud, GRC for procurement, Analytics Cloud and Databricks for procurement, Business AI, Joule, and AI Agents for the procurement, Integration Suite for the procurement. This is what exactly. Then similarly, we would be keeping, you know, for material sector, so on, right? So in this way, we have 12 different streams for each sector. So according to that, we have 132 case studies. Depending upon your choice and interest, you will will be, you can basically go through it and we'll be aligning it for you. For hackathon, everyone will be joining hackathon and for that the process is very simple. You just need to go for apply for our hackathon process. So you have to go to any of the labs and go there. Everywhere we have a hackathon, okay, we have a hackathon process. Simply go here and if you do not know anything about what is a hackathon, it's a 90 days quarterly challenge we give it and there are 6 live missions we conducted, okay, and then we deconstruct, design, and deliver in a real realistic project kind of a thing, okay? And all the details, uh, are given here, okay? And more details, you can see that inside there is a program called 21-Day Challenge. We conduct it for exactly in 21 days, you'll be finishing everything, okay? And if you want to extend, you can go up to 84 days. And but within 90 days, we have to wrap up everything, okay? That's the program. And if you're interested, you can join any of those things, okay? And I will be helping you to guide and everything, right? And as I say, this is the 90 days. And currently we are in Q3 mode, okay? The Q3 hackathon is currently going on, and for that you will be having an access. Once you go here, if you go to— once you register any of the Silver programs, the static program, the entry-level program, right? You will be having access to it. But it's not about only learning, learning, learning. It's learning by doing, right? So you'll be having an access to our 20 virtual coming lab. This is exclusive for Diamond members, but for our hackathons and all is open for everyone. This is for your SISBA members and all. And once you enroll in the Register for the NEP program, you'll be having a short orientation. This is something you have to go through. Then we have a Success Hackathon. At present, we are having— already have completed 5 missions of it. And as of now, so then we would be having the 6th mission in the coming week. Okay, so total 6 live sessions plus there will be Q&A, there will be a lot of other things. Okay, so these are different other courses, but I'm not going there. But that's the idea. So So you'll be going through an entire flow, entire end-to-end of it. But to support that, we will also having a boot camp, right, to support your hackathon process. Because in hackathon is very generic and SAP Activate methodology follows strictly. And similarly, we do have a very specific process orientation. And if I talk about it exclusively from HR point, from procurement, supply chain, all those things point of view, we have category, strictly follow a process category. Okay, so we do have a exclusively process orientation. And as I said, so we have detail like, you know, so all this kind of a process we follow, okay? Planning, supply chain, procurement, all this activity we'll be performing. And also in which lab which you'll be doing, okay? I will talk about it, right? For Product Innovation Lab point of view, what exactly you will be going to for that particular process, right? For any process you go for it, you will be finding a detail exclusively, you know, applicable. So all the lab rulebook and what are the dos and don'ts, okay, everything will be finding here, okay. So this is the whole, uh, most of these are available, but if you want more detail about it, so you'll be going, okay, all the details you can see that contracting, supplier, manufacturing, okay, all these things I was talking about, right. So this is pretty much available publicly, but if you want to more hands-on and all of this thing, definitely we will speak, okay? All these details will be available here, okay? So this is what we have. We have already enriched a lot of other things here exclusively for you, and you can prepare all of these things. Your supplier I was talking about, right? So you'll be having a supplier selection process. How do you do that? Pros and cons of various suppliers. We will be having who is the most appropriate and cost-effective supplier on the basis of the material quality, delivery speed, Schedule and its cost, right? So these are the different, uh, we follow the hierarchy of your entire process Epic use standard. At the top you have a category, then we have process group, then we have process, then activity. Level 5 is task. So you have 5 levels. Level 1 is category, level 2 is process group, level 3 is process, level 4 is activity, and level 5 is your task, okay? So this is the way we follow in any of the learning journey, right? So this is what exactly I will be recommending to go through this entire thing, right? So in the Product Innovation Lab, you will be going through, and as we see, so all of the sessions, okay, we will be going through in a live mode, okay? So that is what exactly. And now coming to the next part of it, our presentation, as I was saying that, okay, so we will be talking about this sourcing, vendor management, purchasing, and we will be also understanding in our boot camps and all how we can manage all of this in every spectrum because you are not going to do a typical configuration unless and until you understand this process and all. I will not be allowing you to go in inside the lab, okay. So to pick up a particular module, pick up a particular stream, particular sector, and based on that we will be going enter into the lab, okay. So that is very, very specific, okay. So I think that is good. So then next is the enterprise procurement. It is not like typically, as I said, not buying from a SOP, local SOP, right? So you have to have a pre-qualified vendor, pre-qualified suppliers who are eligible. You do a lot of price locking through a different contract, okay? You negotiate the rates with them. You do a PRPO, that is a formal request, okay? And order documentation, you do that. Then delivery tracking and the good received and verified against the order. Then you do the invoice matching, right? So now you may be, uh, it's a hands-on time which you are Okay, I'm not going to do that, but this is in this workshop. If you're already an SAP consultant or a similar kind of a module you're following, let me check it out. Think like an SAP consultant for all of this 5 process: Approved Vendor, Negotiated Rate, Purchase Requisition PO, Delivery Tracking, Invoice Matching. List down all the modules and their corresponding transaction codes if you are using SAP, right? So this is what exactly I will ask for it. Maybe this is something you can try, okay? And which are the modules and which is happening in which module, right? So you can see that SAP T-code has given me Central Master Data creating, changing, displaying a vendor. Then you're creating a vendor, must Central Vendor Creation. Then we have a Negotiated Rate. Again, we have a series of transactions for that. So we're not going to try— these are all things you will be doing in a typically in a hackathon and bootcamp and challenges and all of these things, okay? But at least you've got an idea that this is what exactly you'll be doing it, right? So this is what exactly I'm just putting in, uh, notes for you. This is the pre-work for your bootcamps and hackathons, okay? So I will say that this is a task for you, okay? So I will putting as a task for you, pre-hackathon tasks. No, this is the pre-bootcamp, I will say bootcamp for SAP consultants. Okay, so in this, uh, you have to do that. Okay, and I will be just putting the transactions here. At least even you do understand or do not understand, this is the pre-work for you. You will be at least trying all this transaction on your own. Then because we are not going to teach you transactions, we are going to teach transformation. So how you manage all of these things and all of this thing, right? So, and in general at architecture level. So for the reason, so I will say that this is something you have to do before the boot camps, okay? At least the transactions, you're aware of it and all of— because we are not going to study transactions, we are going to study transformation and architecture, right? So now this is, uh, very briefly how you have seen how I have— I'm doing it running AI side by side. The next is procurement as an end-to-end value stream. I was talking about the value stream, right? So people who have asked questions like what is the value stream, and let me go again on a little bit of AI exercise here. Think like an enterprise architect, explain a value stream and give an example of from each domain like your finance, procurement, supply chain, CRM, HR for energy sector. Okay, so let's see what is talking about. Okay, so value stream is, I say, it's end-to-end collection of value-adding activities. So whatever activities you are doing, it should be actually adding the value and that convert, and that convert a specific trigger into an outcome. So trigger to outcome. Okay, so we have one side you have a trigger, inside you have outcome, and the value stream is like an end-to-end collection of value-adding activities that convert trigger, like a customer need, a market event, to a value delivered. Okay, so this is what exactly the definition of value streams is, from outside in, focusing on how value is created, delivered, captured. 3 things: how the value is created, how the value is delivered, and how the value is captured. So the 3 things you have to understand here. Okay, and this is something I will putting as a mind map for you. So that it will be easy for you so that you can do it. So I will say that I will be converting into a mind map in AYOA, A-Y-O-A. So suggest me a structure for it and quickly we'll be doing this mind map. Okay, so this is the mind map we are going to create. The value stream process mapping and enterprise architecture point of view, right? So let me do this mind map and, um, I go to the mind map. So the project name is what? The project name What we are saying is the project name will be giving as this one, Procurement End-to-End Procurement Value Stream. We will be creating a mind map out of it and click Create to start a mind map. Select a tab above, you can generate ideas, and, uh, I will explain this. Let me pull it out from here. The structure which you have generated is here. Just a minute. Yeah, so the same structure I will be putting here in this. Let me go here. I think this is— I have to put an idea here. Create. The central theme will be— I will be using as this one, end-to-end procurement. And here what I will do, I will using AI here. Huh, so here in the summary I will be giving that, pasting that, that thing. Okay, so this is what we have. I will clean it up. Branch number 3 is the EA point of view. So what exactly we're doing here is in the value stream, we will be seeing that. Okay, yeah, so then all things I will summarize it. Let's see. So it will be creating a mind map for us. Again, we can further fine-tune it further. Okay, so you can see that how easily the mind map has been done. Dr. Niladri Bihari Nayak, the— and process overview. Okay, so this is something we talked about, and let me present in a different way the mind map presentation. I will do in a different way. So let me first of all focus it this play all the things. Okay, so as I said, on the procurement value stream we're talking about, then we say that, uh, you know, like we have started with the value stream. Okay, and as I said, let me present it in a way. So there is option here in the mind map, you can do an autofocus. I'm just checking in this one. Display autofocus mode. So there's an option here you can see that. Then here in the IOA Mind Map, what you have to do is while presenting it, keep it 1. Okay, then what you have to do is you go here, then come like this. Okay, this is the first We talk about the value stream, we talked about, right? So these are 5 value streams in the series, okay? 5 core stages of the value stream: need identified, supplier selected. Also, there are notes available, you can see that, okay? Inventory shortages or kitchen demand triggers the procurement process. Supplier selected means actually you are vetting your compliance or approval vendor, such as business partner or MK, sort of transition they talked about, right? Then we have in this value stream, we are having the next one is PO created, you have created a purchase order. Okay, so you go and if you're an SAP consultant, you can go to your respective transactions and you create that purchase order, right? So then you go for the good received. Okay, you have received your physical delivery and you track your all the things. Okay, the warehouse posting done using MIGO. Okay, then after that you go for your typical financial matching and all of the invoice and all. Okay, that's the value streams point of view. Okay, then if you're an SAP process mapping point of view, consultant point of view. Okay, so I will just give you notes on that. So you do the Vendor Master, you do that pricing especially, contract. Then you go for your typically, you know, like, uh, from the angle point of view, from this angle, if I go further, you have pricing and contract, we have a demand and ordering, then logistics. We have typically Okay, this is the way you can go further. Okay, demand and ordering, logistic and finance. Okay, now by EA point of view, you will be talking about more of an applications integration point of view, but the application vendor portal automation workflow point of view, we'll talk about that. You will be the data, then GRC control and all the things. This is our end-to-end procurement. I just thought of putting into a mind map, and this mind map also I will be enriching it later point of time, but at least we we can start, we can get a point of view, okay? What are the different stages? What are the process mapping point of view? What are the architectural EA point of view, right? So that is what exactly I just thought of sharing with you. Now we will be also same thing we have actually explained here as well. If I talk about that, uh, start with the identification of needs, supplier selection, PO creation, good receipt, invoice match, 5 things, okay? So At any point of time it is breaking, it could be late delivery, unmatched invoice, it will disrupting the entire operations, right? So now from, as I always told that from an EA point of view, talked about systems, data, and control. So you'll be having your different applications integrations, you have a data asset, control by design already talked about. So this is more from an EA point of view to understand at a high level. We are not going to, as an EA, we do not need to go to the enterprise transitional level activity, but at a high level you should be understanding. If you are a BA, Business Architecture, you have to understand those strategic things, business outcome, I already talked about stakeholders, value management, your KPIs. So KPIs again, what are the possible KPIs in this? We will be having another tools here today, we will talk about, right? List down the KPI for a typical procurement process, whatever we have learned today, exclusively for a food industry. So let's see. And meanwhile it is loading, we will be going to a tool called KPI Carta, KPI Carta. And inside that we will be capturing these KPIs. Okay, so if you are a part of our members, Diamond members, you'll be having access to this. Okay, because it is actually required. If you are not visualizing these things, you will not be able to get it. Okay. So you have to also visualize this thing. Okay, so we're creating a carta for you. Okay, that is the KPI setup. Okay, and what I will do is, uh, for this particular thing, okay, I will do an activity here as well using this. So it is in our lab, by the way. So in our process lab, you will be having an access to this KPI carta. Okay, and this is where exactly we set up the KPIs. KPIs. And for this case studies which you are talking about, the food sector, right? As I told, let me go there and create that KPIs. Okay, so these are the different KPIs, document KPIs for the food industries that we will be having. Equality and compliance, non-negotiable in food, supplier quality. This again very much common for everyone, every industry and sector, but we'll be giving a context to a food sector. Food processing or similar kind of environment. Okay, these are the 3, 6 things I actually, I have seen it. So let me pull it out here. Okay, and I will put it over here. Minimum prompt to create a cart with AI. Okay, so this is also an AI capability. So what it will do is tailored for procurement KPIs for food industry, right? So let me explain that. So I will go here, food procurement KPIs for the food industry. And here I'll be choosing a food industry. So we have dairy farming, a lot of other things are there, food and beverages, let me say. Okay, so I will choose that. Okay, otherwise we have a lot of other options also, but I will— for now I will choose this. Otherwise, design, education, entertainment, energy, mining, finance, healthcare, legal, manufacturing, media and communication, you name it, we have it. Okay, so real estate, recreation, travel, retail, software and IT services, transportation logistics, wellness and fitness, a lot of other things we are having it, okay. But today we'll be choosing a sector for food and beverage, okay, for this, okay. And department, let's say we are doing it for marketing, sales is there, okay. But here we'll be talking about is a procurement. Procurement is more of, um, I will say it's an interdisciplinary, okay. So I will— let me check it out with AI, what are the possible sector we can utilize it here. Let me check it out. We do not have an option for marketing, so I'm using KPI Carta platform for to design the KPI setup for my case study. And how do I set up, uh, which department I should select? I have only marketing, sales, and others. Uh, let's see that. So how do I set up? In this, we will be having a— in this lab, KPI Labs, we will be having, uh, department is a procurement or supply chain department, okay? And I will type this one, procurement, okay? And let me try procurement only, okay? It's a cross-functional operation, by the way. So vendor management, inventory cycle, and financial matching, everything, right? And it is not a traditional outbound sales or marketing, right? So I will choose procurement department here. I will be putting that here because we do not have that option. Procurement, okay, so procurement I will say. And you already have defined the KPIs here. Let me check it out if anything is there. Quality compliance KPIs we have of in food processing, like idli production which I talked about, or any other food production, rice, dal, and all. Supplier quality pass rate, we have a traceability Compliance rate, the speed and accuracy with which a raw material lot can be traced back to the farmer or vendor and forward to the finished product batch of safety audits and recall. Reject rate or return rate, percent of purchase goods due to spoilage, contamination, and failure to meet moisture and grade standards. This is the first set of KPIs exclusively for supplier quality pass rate. Okay, okay, this is first set, quality and compliance rate. There are KPIs. Okay, so 1, 2, 3. Similarly, we have operational cycle time KPIs because all these food items have a shelf life, shelf life limits, right? So it is actually, we have to have a purchase cycle time, on time in full, OTIF delivery, on time in full delivery. Okay, so then we have order lead time, okay, the average duration between placing an order with an approved vendor and physical delivery at the warehouse. That's called order lead time. Okay, these are the 3 KPIs which we have for, you know, like operation and cycle time, right? Then we have financial and contractual KPIs. We have procurement, direct to product, operational margin. So we are having contract compliance rate, invoice match rate, 3-way match efficiency, cost variance, and price variance. These are different KPIs we'll be having. Okay, so we'll be setting up all of these KPIs in our lab, and this KPIs you'll be tracking in your project. Okay, so it could be starting with this, but it can be more depending upon your organization complexities and maturity of your organizations. There could be multiple things, right? But this is something we— where we can start with. And this is the behind the scene. My AI will be creating that for now. So it will be creating shortly the behind the scene, which we'll be looking at at a point of time, right? And there is also an AI which I have seen there is a, you know, there is a tool. Yeah, I will be utilizing this. Maybe there's an AI for it. So instead of doing in that way, okay, so let me do that here. Uh, yes, so instant for you, no setup is required. Yeah, so I will click this. So we'll be setting up the entire KPIs, uh, like this. It will do that, but if you want to do it manually, we have to have a— first of all, in this way we have to set up a goal, okay? And after that you have to have a— like whenever you're having a cartas or my KPIs, right? So you have to have a detailed like this, okay? So if you go in here, change here here. And if I go further, it will be creating the KPI for me. Okay, so this is an activity which will be performing, so it will take some time. Okay, I know this is some server issues are there, but it takes some time. But you'll be having access to this tool where we'll be having a goal, critical success factor, page, segment, approach, action, and KPI. This is a layered approach to KPI. We do not say KPI directly straightforward, this is your KPI, that is your KPI. It is a goal-driven. Okay, goals, then we have a critical success factor What the first phase of your project you are in, what segment, what is your approach, what is the action you are taking, then the KPI. So this is the segmental structure which should be— I really like it. This is a kind of— I was just seeing, so some inventory, uh, KPIs, that's a marketplace will be coming. So we'll be seeing all these things at a point of time. Okay, but, uh, this is what exactly we'll be talking about in our boot camps, which will be acting. So we have done a similar activity for others also, farming, fashion sector, fashion retail procurements, farming sector, digital HR, okay, for procurement for energy sector, okay. All of these things we have done in earlier, okay. So this is something we will be doing later point of time, but that's the idea, which is just giving a glimpse of it, what you will be getting in our labs and all. So this is one of the labs, those 20+ labs which you are talking about, right? And you will be having access to it, and if you are a member, you know, our platform. So now let me talk about the last part of it. Decision system, it is a typically, they said there will be request or approver, buyer, receiver, and all of these people. Okay, and also there are policies, the decision rights and everything is there. All right, so this is what exactly we'll be covering and we'll be talking about. And if you're already a member in our platform, just do go mark your attendance. If you are not a member, you do not have to do that. Okay, so I'm just marking your attendance so that you get your gamification points for you. So yeah, so let me do that activity. So if you are already attending the session live, just to go to your, your platform and you just mark your attendance. Okay, so I'm marking, opening the attendance panel, and you'll be getting 100 points today. And once you attend your sessions, right? So now coming back to our thing, sessions. So you will be having this thing directly we see in our platform access also, all of these capabilities and everything. Let me go back. Yeah, so procurement is again governing who can buy what from what, under which contract, as I say, right? And now whenever I'm carrying the Italy story back again, if there is no sourcing decision, there is no rice, no Italy, no service, right? Very simple, the Italy story which is actually connecting or not, right? So a lot of process goes on behind the scene. Okay, so now from a process follow-up to transformation professional. So how many times your business has lost money because it didn't work hard, but because the system was missing something, because people make mistakes. But if it is system-driven, everything will be, you know, done perfectly. Okay, people always say, there is always saying that the system always does the entire work, but people fail, right? System, system do the work, but people fail, right? Many times. So the wrong vendor, wrong pricing, late delivery, all the things are actually, then firefighting will happen in any of those. That's the typical old view of things. Procurement, earlier it was more of buying things, the back office, transitional functions, okay. But if you are those kind of a, you know, purchasing department, if you are already working a similar kind of thing, the new view is that you are now procurement business architect in action. You make decision makers who protect quality, cost, supply quantity, and all of this thing, right. Then you learn and see procurement as a system, okay. You stop being a— you're following a process, rather becoming a procurement Transformation professionals, I will say. Okay, so with that note, uh, thank you for joining in and staying till the end. And as I promised, I will be giving all the gifts if you are attending the sessions till the end. If you're already watching this YouTube, okay, just to say hi to me in any of my social media messages, all the things are— links are there. And you can find me in LinkedIn, and that is something you will be seeing that, okay. You will also find in— go to LinkedIn and you just send a message and you will be getting free gifts. Okay, that is send a direct message to me. Okay, and I will be sending the promise, okay, which you already have document pointer, whichever talking about, right? So what you have to do is you have to simply go and text me, and this is my profile, Dr. Niladri Bihari Nayak ☁☁, and just text me here. Okay, so you can text me and I will be sending the free gifts for you if you're already watching the entire YouTube video till the end, okay? Or if you've attended the sessions live, definitely you can, okay? So that's all about this session. And as I promised, you'll be getting all of the free gifts, those templates, everything. Now if you want to go deeper— so today just we created awareness, right? We understand more detail about the frameworks, templates. Are you ready for it? Okay, if you want to go deep, if you If you are at this point of time, if you do not want those details, you can leave the session. But if you want to go deeper, so I have something surprise for you. Are you ready for it? Yes, yes, yes, yes, yes, I see a lot of yes in the chat. Okay, okay, so then I will be having a very good offer for you. So membership, so we have a very clear learning path will be sharing with you, the beginner friendly to transformation level depending upon your all of your career learning journey. So we are having a structured, okay, then we have different process labs. They say we have a dedicated process labs, we have dedicated, you know, enterprise transformation tools we are having. I have shown you one or two, so we have many such labs for you, okay. And also we have the structured sessions to keep you consistent in building your real capability, because now capability is everything, okay. People talk about skill-driven organizations, right? So we also empower organization and people to skill up upskill themselves. Okay, now what we can do is very simple. There's a free tool I will be sharing with you which is called a journey map. Okay, so for that we need to have to simply go to here. So I will be telling you the path actually. Okay, so we have a path called— though this is our website successlabsacademy.com, and from here you directly go to the journey. There is something, the journey. Click the journey. I will be also sharing this link with in the YouTube channel also, it's already there. So if you will start your journey, okay, this is a free, completely free, and we have 2,600+ career journeys, long, curated for every, every sector, every streams, every specialized tracks, okay. That is what how we operate. So if you go and you can choose any of the sector— energy industry, financials, utilities, healthcare, IT, anything— you can pick it up. So let's say I'll be choosing a material sector, okay. Then you choose What is your stream? If you are a beginner, I would recommend to go for Application Architecture. Yes, unless if you are techie, go for Technology Architecture. And it is not like one or two, but you can start with one. At a point of time, you can have a flavor of all of the major things. If you are senior professionals, maybe you can go for Enterprise Architecture if you want to, depending on your role. So there are 12 streams of architecture. We are highly focusing on architecture because that is what exactly we have been uniquely positioning ourselves, and we talk about architecture. We do not talk about configurations. We cover it, but that is a very next, is very low level. Okay, this is for people, we go in detail about the architectural thinking. Okay, so you can go for application architecture and you can choose any of the labs. Okay, you can choose 20 labs if you are comfortable and to manage. Okay, or you can start with maybe a product discovery. So if you select a product, you'll be having an access. If you're a Diamond member, you will be having a little limited limited access for those labs for other members. But if you are a Diamond member and all, you'll be having lifetime access. That means 1 year. That's a yearly renewal, as I said, yearly renewal. And you have to have access to this. So you just choose your labs, which are the labs you want to pursue in that particular hackathon or boot camps, basically. Okay, then you go for continue to confirm. You're getting a screen like this. Enter your full name. Okay, enter your email address. This is also applicable for our existing members, if you want to pursue a new career path, if you want to pursue a new track, you can always follow the same process, repeat the same process, okay? Then if you are a new member or you are not a member in our community, simply submit it so that I will be understanding what your interest, then we will be also having a talking about it. The most important part is there is an additional comment. So here you can talk about your— what is your thought process, what is the question, any goals, any specific questions you have for me. So this message I am reading, and you simply go and agree and submit the selection process. So this, in this way, this engine will be helping me. This is to under— this widget will be helping you to understand your need, understand your pain points, and according to that, we publish our bootcamp and guess what, based on your availabilities and your upcoming schedule, you can enroll in any of the programs in our environment. Okay, so that's all about today's session. So thank you for joining in and stay till the end, and see you in the next session. Till the time, God bless, take care, bye-bye.