The beneﬁts of Dell PremierConnecti.dell.com/sites/doccontent/shared-content/solutions/en/...The beneﬁts of Dell PremierConnect Recognizing your need for a global end-to-end electronic

The benefits of Dell PremierConnectThe PremierConnect ROI Calculator referred to in this document is provided to you subject to the Dell Software License Agreement terms located here:

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The Calculator provides estimates, the general accuracy of which depends on many factors, including your inputs. Although these real world factors dictate that we can’t guarantee the accuracy or reliability of the Calculator’s specific results, we believe in the power of the Calculator as a helpful tool for general business planning.

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The benefits of Dell PremierConnect

Recognizing your need for a global end-to-end electronic procurement process, Dell o�ers PremierConnect.

An e�cient eProcurement solution from catalog through payment, PremierConnect integrates your current Enterprise Resource Planning (ERP)/procurement system with a customized Dell catalog to create a user-friendly purchasing environment that o�ers only your organization’s agreed-upon products, prices, and standard configurations.

And because PremierConnect helps automate everything from ordering to invoicing, time-consuming and error-prone manual entry is virtually eliminated, saving your organization time and money.

Dell’s B2B eCommerce solution, PremierConnect, can do more than just save you money.

With streamlined, e�cient ordering, PremierConnect can free your team to focus on your company’s core business.

Lower costs

Global end-to-end electronic procurement process

From catalog through payment

Securely shop a catalog customized with your standards and pricing

User-friendly purchasing environment

Increased productivity

Over 1,500 PremierConnect customers globally

PremierConnect’s direct-to-Dell connection can significantly cut the time it takes to receive your ordered products.

Benefits

Streamlined order processing

PremierConnect can help reduce the costs related to duplicates, errors, and omissions found in traditional, manual-entry ordering processes.

Increased accuracy

With a user-friendly digital catalog of approved configurations, PremierConnect can help significantly reduce expensive unauthorized, and o�-contract spending.

Increased compliance

“ Dell’s end-to-end solution approach helps to limit the workload involved in coordinating multiple suppliers. ” — Bertus van der MeerICT Purchasing Department, University Medical Center

Reduced cycle time

By electronically automating your order processing, PremierConnect can help reduce labor costs, boost productivity, and maximize your category spend management.

~45 minutes per order of procurement man-hours freed up for higher value activities4

Reduced from an average manual cost of

$30 to an automated cost of $3.505

Reduced from an average manual cost of

$100 to an average automated cost of $253

$30

$3.5

$100

$25

PO processing cost reduction

Invoicing cost reduction

Time reclaimed

90% reduction in invoice processing costs7

75% reductionin order processing costs6


Increase labor productivityWith PremierConnect, time previously spent faxing, emailing, or manually processing procurement and invoicing systems can now be used to help your company focus on more important things. Whether looking for new vendors or simply sourcing new products, your team will have more time to focus on higher value, strategic purchasing activities.

Optimize category spend managementIntegrating your Enterprise Resource Planning/procurement system with PremierConnect gives you direct insight into your total category spend and helps your company harness the power of your ERP. Better category management not only helps you monitor budgets, it can also help ensure you are getting the best prices from your suppliers by allowing easy cost comparison on every item in your company’s catalog.

Reduce transaction costs

By automating order processing, invoicing*, and approvals, PremierConnect can help free up labor resources. In fact, eliminating paper-based systems can lower your company’s labor costs significantly. According to industry research, companies can reduce the cost of Purchase Order requisition, submittal, and approval by up to 75%.1 Invoice processing costs can also be reduced by up to 90%.2

*eInvoicing may not be available in all regions

On average, IT category spend has 8% unauthorized spending11 : Companies without B2B integration have up to 30% unauthorized IT Category spending 12

80% reduction in unauthorized spending14

30%

Industry average Without B2B integration

Percentage of unauthorized IT spending

8%


Increase category spend visiblityPremierConnect o�ers management tools that allow increased visibility into category spending. With easy access to pricing details and order history, your company can optimize its budget more e�ectively.

Increase volume negotiating powerAn increase in compliance allows better tracking of actual buying andspending patterns. Plus, PremierConnect paired with your ERP caneliminate the need for manual reconciliation, giving you easy access to real numbers to help negotiate future volume rates.

Reduce o�-contract spend

PremierConnect’s online integration with your ERP system can make compliance easier for your company’s end users. According to industry research, a B2B eCommerce solution can increase compliance up to 95%.8 And with o�-contract purchasing accounting for up to 30% of IT spend, the potential savings can be significant.9

On average, items bought o�-contract cost up to 20% more10

B2B On-contract Spend

O�-contract Spend



Order accuracy Time reclaimed

~10 minutes per order of procure-ment man-hours freed up for higher value activities 17

1% cost savings by eliminating inaccurate pricing from manual POs and invoicing19

37% reductionin invoice errors18

Increased accuracy

Save error-related timeWith its automated ordering process, PremierConnect can free time spent on returns, exchanges, and re-ordering. It can also virtually eliminate the need to manually verify PO receipts, allowing your team to focus on maximizing e�ective purchasing.

Reduce error-related costs

PremierConnect’s streamlined eProcurement can significantly reduce expensive errors associated with manual ordering processes. From duplicate orders to omissions, integrating with Dell can help reduce the costs of returns and exchanges from inaccurate orders. And elimination of manual entry can lead to 83% fewer order entry errors.15

83% reduction in PO errors 16


7 Days

Time from PO creation to order confirmation reduced from 7 days to 2 days –

receive product 5 days faster20

Order cycle time reduced

ResourcesResults are estimates based on public Industry Data from the following sources: 1) Tomkins Associates, 2) Sterling Commerce, 3) Tomkins Associates, 4) Summit Strategies, 5) Sterling Commerce, 6) Ariba, 7) Sterling Commerce, 8) Sixhills Consulting, 9) Tomkins Associates, 10) BuyIt,11) Hackett Group, 12) Sixhills Consulting, 13) Sixhills Consulting, 14) Sixhills Consulting, 15) Ariba,16) Ariba, 17) Summitt Strategies, 18) Sterling Commerce, 19) Ariba, 20) Sixhills Consulting. These figures are not a reflection of any one specific company or one organization’s data. The numbers used represent a compilation of data based on Dell-commissioned research.

2 Days

Additional benefits

Because PremierConnect’s electronic procurement process reduces the amount of paperwork associated with manual-entry systems, it doesn’t just help save you money, it can also help save trees. That’s good for the planet—and good for everyone.

Not only is PremierConnect easy to integrate into most ERP systems, it also comes with Dell expertise. After thousands of implementations over many years, we can help guide you through the whole process with ease.

Earth friendly Dell expertise

Reduced cycle time

Receive products faster

Implementing PremierConnect can cut cycle time from 7 days to 2 days. Not only does this mean you receive product for key projects sooner, it can also increase invoice-to-pay e�ciency.



Reduced cycle time


Increased accuracy

Example savings & benefitsEvery company’s results will be determined by their size, goals, and region. Ask your Dell sales team about our B2B Integration ROI Calculator, a tool to generate a customized report filled with detailed analysis of the potential savings and benefits your company can appreciate. Based on industry research, we’ve created four scenarios using the B2B Integration ROI Calculator to demonstrate the potential increase in productivity and savings your company could see by integrating your ERP with PremierConnect.

Company profile Each profile o�ers the example company’s goals and the inputs used to calculate potential ROI.

Total B2B impactThese numbers demonstrate the total potential savings and benefits the example company could realize.

2

1

4

Benefit-by-benefit savingsThis section subtotals the example company’s potential savings by benefit.

3

Tactical savingsThe charts in this section the break each benefit into smaller, more tactical savings.

Benefit color keyEach benefit is color coded to help you track the savings directly.

1 2

4 3

Section Key

University with no B2B implementations

Total B2B impact

$57,780

Total order processing costs reduced

$141,375/yr

Total o�-contract spend savings

$128,000/yr

Total savings from increased accuracy

O�-contract orders reduced from 260 orders per year to 52 per year

260

52

PO accuracy savings of

$7,780Invoice accuracy savings of

$50,000

Savings

Invoice processing costs drop from $48,750 to $4,850 for an annual post-B2B savings of $43,875

$43,875Savings

North American educational institution

Purchases $5.0 million from Dell via 1,625 annual orders

Currently does not have any B2B integrations with any suppliers

Plans to eventually go full B2B with all of their suppliers

Has a year 1 goal of 80% of Dell transactions through B2B

»

»

»

»

»

Invoice processing

PO processing costs drop from $162,500 to $65,000 for an annual post-B2B savings of $97,500

$97,500PO processing

$327,155 in annual cost savings

1,355 hrs total Procurement man-hours per year saved/reallocated to higher value activities

6.5% total B2B savings as percentage of total Dell spend

Potential savings


Large enterprise company with multiple B2B integrations

Total B2B impact

North American company


Currently has over 500 B2B integrations with several high volume strategic suppliers

Plans to channel 100% of Dell transactions through B2B

»

»

»

»



6.3%total B2B savings as percentage of total Dell spend

$154,646


$354,654/yr


$353,280/yr



556

111


$16,646Invoice accuracy savings of

$138,000

Savings

Invoice processing costs drop from $104,300 to $10,400 for an annual post-B2B savings of $93,879

$93,879Savings

Invoice processing

PO processing costs drop from$347,700 to $86,925 for an annualpost-B2B savings of $260,775

$260,775PO processing

Potential Savings


Large government agency with moderate B2B integration

Total B2B impact

European agency

Purchases €8.0 million from Dell via 4,700 annual orders

Currently has 25 B2B integrations with di�erent suppliers

Evaluates B2B integrations on a case by case basis for suppliers

Plans to channel 80% of Dell transactions through B2B

»

»

»

»

»

€606,236 in annual cost savings



€96,876


€304,560/yr


€204,800/yr



752

150


€16,876Invoice accuracy savings of

€80,000

Savings

Invoice processing costs drop from €103,400 to €10,340 for an annual post-B2B savings of €93,060

€93,060Savings

Invoice processing

PO processing costs drop from €352,200 to €141,000 for an annual post-B2B savings of €211,200

€211,200PO processing

Potential savings


Large enterprise company with limited B2B integrations

Total B2B impact


317

63

Potential Savings

Total procurement man-hours saved per year

1,921 hrs


$174,080/yr

Asian-Pacific company


Currently has only 1 supplier on B2B

Expects to channel 65% of orders through B2B to Dell

»

»

»

»




Potential savings


Dell is committed to integrating your eProcurement system from end-to-end. Our vast experience with unique customer requirements and many platforms has led to the following six-step integration process:

What’s next?

1. EngagementReceive customer request for purchasing system integration.

2. ScopingWork with customer to scope business/technical requirements.

3. Integration Build unique customer requirements, profile, and maps in test environment.

4. Testing Provide thorough testing of associ-ated transactions/testing sign-o�.

5. ProductionMove to production and validate initial production orders.

6. SupportProvide ongoing production support and test environment.

Just ask us!We understand that making the decision to implement an integrated B2B solution may involve multiple discussions within your company—and we want to be there to help. Our PremierConnect experts can meet directly with your team and answer any questions.

Ready to get started? Contact your Dell Account team, [email protected] or visit www.dell.com/premierconnect today!


Additional resources

1 2 3

B2B processPunchOut catalog process

Buyer-hosted catalog process

PunchOut catalogHosted and maintained by Dell, this user-friendly option o�ers a company-specific, customized online catalog of your approved products, pricing, and configurations. Because it’s integrated into your existing procurement applica-tion, processing and approvals are automated, reducing cycle time.

Buyer-hosted catalogFor customers who cannot implement the recommended PunchOut solution, Dell can create a customized buyer-hosted catalog file that can be easily imported directly into most procurement applications.

Punchout to Premier Page from your purchasing system

Add items to your cart and create an Order Requisition

Order Requisition issent to your ERP for approval

4Electronic Purchase Order is transmitted to Dell fromyour purchasing system

5Electronic Invoice is generated and sent to yourpurchasing system*

6Send Electronic Payment*

1Our sales team creates and sends yourcustom catalog

2Create a purchase request in your purchasing system

3Send purchase request through your purchasing system approval process


The beneﬁts of Dell PremierConnecti.dell.com/sites/doccontent/shared-content/solutions/en/...The beneﬁts of Dell PremierConnect Recognizing your need for a global end-to-end electronic

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