(upbeat music) >> Welcome back to theCUBE everyone Lisa Martin here. On the ground in Las Vegas at COUPA INSPIRE 2022. This is our second day of coverage here. There's been about 2,400 to 2,500 folks at the event. This year people are ready to come back. I've been happy to talk with lots Coupa folks, their partners, their customers and I've got both a customer and a partner here with me. Heidi Banks joins us, the Senior director of Global Procurement at Jabil. Heidi it's great to have you on the program. >> Thank you for having me give. >> Give the audience an overview of Jabil and what you guys do. >> So Jabil is a $30 billion manufacturing solutions partner that provides contract manufacturing services for 450 of the world's largest and most premier brands around the globe. Most people don't know our name but we're the wonderful face behind the name. >> Well you guys had, I was looking at some stats, over 260,000 employees across 100 locations. Very customer centric you guys are, as is Coupa, this good obviously synergy there but you had some objectives from a global procurement perspective. What were those? What were some of the challenges that you wanted to solve? >> So about seven years ago, Jabil went on a journey to identify what challenges we had out in the indirect procurement space. Being such a large global company, we had no idea what we were spending on indirect at the of time. After a little bit of digging, we found out that we had over 2 billion in spend that was untapped from a category management perspective. And so we knew that we needed to grow as a company and PaaS technology as a foundation, as our goal and our mission in the company is to be the most technologically advanced manufacturer solutions partner for our customers. >> Was there any sort of one thing or a compelling event seven years ago that caused you guys to go, "We need to be really getting our hands around this indirect spend?" >> So we started off by bringing in category managers and they were doing amazing job delivering savings in our contracts, but we had no way to deliver that out to the company. And the company being so big in so many different jurisdictions in countries around the world, you could negotiate the best contract in the world, but if you couldn't communicate it out to your users then it was a challenge to really capture that savings and make sure we were delivering bottom line savings to the company. >> And you guys are, we're talking about three different SAP ERP systems so a lot of technology in the environment. What were some of the core technology requirements that Jabil had when it came looking for a business plan management solution? >> Yeah, so we were looking for something that was very user friendly. Of course, Coupa takes that box very well. Also something that could drive governance and policy controls again challenging being such a global organization and making sure that things were going according to our policy into our global category managers to be sourced and negotiated for the company. We looked for one that was end to end from a business spend management platform perspective. We wanted something that was integrated and could cover three ERP systems from one pane of glass across the company. So we could get great analytics without having to search in so many different places. >> That is so key. I was talking with Rob, I was talking with Raja and they were all talking about how those silos still exist and how they're helping organizations like Jabil break those down and give them that single pane of glass, as you mentioned, to be able to see, to get that visibility into indirect spend, for example. Talk to me about the solutions that you implemented from Coupa. >> So we started off with Coupa's procure to pay system. Really our focus was to get off of our old system as quickly as we could and get everyone managing on the same policy controls approval flows. We then also had analytics, so we had Coupa AIC and brought in analytics and in the last year and a half I've also deployed strategic and tactical sourcing through Coupa as well, and spend guard from a audit control and compliance perspective. >> So then that the phrase "sweet synergy" that actually probably means a lot to you Coupa was talking about that during the keynote this morning. Your Jabil is living that sweet synergy kind of experience through Coupa >> That's right. As we source in Coupa and we can see, are there different behaviors that we need to look into maybe suppliers that are bidding at the last minute and winning or less than that desirable number of suppliers coming in or duplicate invoices and being able to really look through that and see spend patterns that we would never otherwise uncover is highly important to us from a compliance standpoint, we've gotten a great value out of that solution. >> And in terms of value, one of the things I know that was important to you when you were looking for the right technology partner, was you wanted to involve other folks within the organization across IT, other lines of business. Talk to me about how important that was to bring in that cross-functional team to help make the right decision. >> Yeah, that was one of the most critical things that we did. We needed to make sure, especially being an SAP shop right, we needed to make sure that we were standing back and really being impartial in our decision and driving a non-biased decision in that RFP process. And so we got our executives together, talked to them about the value drivers and the ROI that we could do if we had all of the right support from the right departments, so that we could avoid resistance as we tried to deploy in such a rapid way. So we brought IT, legal, users together, procurement and in advance did a balanced scorecard approach to say these were the important factors that we had whether it was IT infrastructure, whether it was capabilities to make sure that when we came out of that decision and we picked a solution, we could all look at each other and have a handshake and say it was the right decision for us as a company, and so no departments had push back at that point because of that approach that we took. >> An objective approach that you took. >> That's right. >> Let's talk about some of the outcomes look at, actually let's not, let's talk about your deployment first, 'cause you guys started with probably your most challenging sites whereas other folks might go. Let's start with the low hanging fruit and kind of work our way up. Jabil said, "Nope, we're going to flip the script on that." >> That's right. So we, we went with what we call an east to west strategy. We are heavily concentrated in our Asia markets and so we were also wanted to deliver our ROI as quickly as possible and get our spend into the system as quickly as possible. So we we went live with 12 sites, 11 mega sites in China and our corporate headquarters in St. Petersburg in order to get that spend in as quickly as possible and get our ROI delivered. So we started in China and the US then in our second phase deployed the rest of Asia and then the US and North America and then over to Europe. So we went regional from a time zone perspective but also just I say, go bold. I hear a lot of people that start small and then grow but if you want to deliver that ROI and get your money out of that system as soon as possible go big or go home. >> I like that go big, go home. It's like Mick Ebeling was talking about this morning from not impossible labs commit and then figure it out. >> That's right. >> That's right. >> You know what? That's actually brilliant advice because it's probably the opposite that a lot of us want to be we want to be able to figure this out and then go, okay we can do that. And he said no >> Yeah >> To the opposite. >> To the opposite >> Did you have to get buy-in from those cross-functional folks to say we want to start with our most challenging sites first, was that a team decision? >> That was a decision that we did just basically to get that ROI delivered. And we also had a really strong team that still partners with our Coupa admins today that were really invested in getting onto a solution where they can automate and drive control and compliance. And so not only do we involve the team in the solution selection, but also in the global design. So we brought different cross-functional departments together into one location together, we made all of our decisions on how we were going to configure Coupa So that way again all of our divisions and departments had buy-in to how we were going to move forward and then we went from there. >> Well then, and in that case everybody feels like they have a stake >> That's right >> In the issue they have a vested interest >> That's right. >> Which is critical for these types of large projects to be successful. >> That's right. So they were involved in the RFP process so they knew why we were doing it and they were then involved and the design and how we were going to set it up so that they knew that they had a vested interest in how it was going to perform in the end. And then of course there were things that we had to tweak. So we needed to have a design committee that we could come back to and make changes as we needed to, make changes throughout the projects. You don't always get every single decision right. The first time, but you need to be nimble and make changes first and get consensus across the company. >> Right. Talk to me about some of the outcomes I know I've seen a lot of stats in your case study and I always love those numbers always jump out at me. Talk to me about some of those metrics based business outcomes that Jabil is achieving so far. >> Yeah. So in the last four years we've had a heavy focus on catalog. So actually in the last few months, we've gone from 20 to 30% by using Coupa analytics and drilling really into the details and putting really great category strategies in order to drive more catalog penetration. We've got great stats around electronic invoicing especially in certain countries where people think it's not possible. >> Right. >> There's a great change management story we have for what we've achieved in our Asian markets around electronic invoicing and from an ROI perspective, we were able to deliver 3X our ROI by the end of year two which we projected would take three years to do and 7X by year four. So we had a very conservative and achievable ROI that got the buy-in and then we were able to accelerate it by being aggressive, but also with a great solution it was easy to then get that done. >> Can you talk a little bit about the change management that you were able to achieve in the Asian market change management is the difficult thing to do. People are resistant to change, one of the things we've learned in the last two years is sometimes the change comes in there's nothing you can do about it but how did you affect that change management within that culture in the Asian market? >> Yeah. So with the executive buy-in that we had because they knew that there was high potential for us to deliver an ROI. We had executive sponsorship that helped us get through some of those barriers. So if we decided not to bring certain users into the system, for example and there was pushback that they needed to have access we had executive messaging as to why from a policy governance and control standpoint we couldn't break that. So we used our executives' voice and their support to do that. But also we brought in a great system that was user are friendly and so we didn't get a lot of resistance in, in that sense. So they actually embraced the change compared to the solution we had in place before. So by making the right selection from a user centric company we also didn't get as much resistance there as well. >> That's nice the path of least resistance is good especially if you're not exactly sure if you're going to find it, but verifying that and getting that ROI is is probably a big, a big win. Talk to me a little bit about you guys liked Coupa so much you had such, you mentioned 3X ROI within, you said the first year? >> With after year two >> After year two >> Yeah. >> 3X ROI, you liked it so much you decided to become a Coupa partner. Talk to me about that. What does that mean? What are you guys doing as partner? >> Yeah, so this is a super exiting thing for us to adventure into. So we pride ourselves on our theme as built for practitioners by practitioners. We've run the system every single day. We've been running it for years. So my team members are deep in the knowledge and capabilities of Coupa it's functionality, how to manage it every day, how to get the most you out of it and we want to share that knowledge with other Coupa customers to get the most value out of their system as well. So whether that's optimization and helping them get more out of their system or whether it's roadmap or assessments in our perspective, or even doing net new implementations we're excited to venture into that area of services with Coupa as a partner. >> Or have you guys started doing that yet? >> Today is our first Coupa inspire as a partner, which is exciting. And we literally just got started in the last few months. So we are working on getting our first customer here hopefully very shortly and have had a lot of of really great conversations with customers at the show so far. >> That's one of the great things that Coupa took the risk to bring us all together because there's they have a phenomenal community of which you guys have been a part now you said I believe about seven years, but there's nothing that replaces the connections that you make in the community that is grown from doing events like this. I imagine that you've gotten to talk with a lot of prospect >> Yes. >> Prospective customers who, what, how did you do this? This seems like an impossible feat that you've gotten to share with them. This is doable, here's how we did it. >> That's right. So fortunately I've been at previous inspires as well. So I've gotten to talk to people that I haven't seen in a couple of years, which is always exciting. I've been able to talk to customers that I've done, referrals for with Coupa before that are now Coupa customers and we get to talk about that and also those perspective customers and helping them know that it is doable, it is achievable you can get consensus in a decentralized company where all the sites if you have lots, lots of sites and countries have their own autonomy, you can do it. You can do it fast. You can do it effective if you take the right approach. And so it's exciting to get here and share that opportunity and our adventure and our journey with Coupa and the journey is only just beginning. >> Right, what are some of the things that you are excited about in terms of the innovations that they've announced at the event? I know Coupa is very much symbiotic with its customers that the community very much generates a lot of the direction in which the technology goes. But what are some of the things that you've heard announced that you thought, yes, they're going they continue to go in the right direction. >> Yeah. So there's some actual foundational capabilities around things like payment agreements and group carts and things that actually we've contributed through either customer cabs or VP sessions with design, just doing collaboration together but I'm also excited to see some of their price benchmarking that they're doing so that we can know how well are we doing and from our pricing standpoint and also where they're going supply chain I'm excited to see where they're going with that. Being a big supply chain company ourselves, we're hoping that all turns out to be something that we can innovate with Coupa on and hopefully have in the future as well. >> Well, as they said, Rob said it to me just an hour ago, they're tip of the iceberg but what its seems that you've become Heidi yourself and Jabil is really kind of an influencer within the Coupa community. We appreciate you coming by theCUBE, sharing with us what you've accomplished and how you're expanding your Coupa partnership into helping other companies. >> Great. Thank you again for having me today. >> My pleasure. >> All right. >> For Heidi Banks, I'm Lisa Martin and you're watching theCUBE's coverage of COUPA INSPIRE 2022 from Las Vegas. Stick around my next guest joins me momentarily. (upbeat music)

(upbeat music) >> Welcome back to the CUBE's Coverage of Coupa Inspire 2022 at the Cosmopolitan in bustling Las Vegas. I'm Lisa Martin, and very pleased to be welcoming back. One of our CUBE alumni, the chairman and CEO of Coupa, the man himself Rob Bernshteyn, Rob great to have you back on the program. >> Great to be with you again. >> It's great to be in person. >> Sure. >> I applaud Coupa for taking the risk and getting all the people here. People are absolutely ready for this. And if there's a company that brings the energy it's Coupa. >> Well, thank you for saying that, we're definitely feeling it. You're right, we took a bit of a risk when we opened up registration that was before COVID, omicron hit. We didn't know what would happen, but we just had such an overwhelming onslaught of registrations and people wanted to be here. And in the last two days of interaction with folks it's just been like a huge reunion after three years of kind of being in home and away. >> Absolutely a huge reunion. One that was, I just felt so normal walking into your keynote yesterday. And of course, I always look for numbers because I know you're going to have numbers. 3.3 trillion, spend under management. You're almost at a trillion, a year run rate, that's huge. The growth of Cuopa, just up into the right. >> It is and it's really in thanks to our customer community. I mean, there are just incredible champions here. Courageous folks that are pushing for change inside their of companies. And we're honored to be the technology platform that drives a lot of that change. A more and more spend driven through the system that spend being optimized going to the right channels. Companies are saving money and it's given them more fuel to pursue their own missions and visions and everything that their companies seek to do. >> I just had a conversation with a customer about an hour ago and he was talking about everything was paper-based, manual, no visibility, and I've talked to other customers and I think I've got Jabil on this afternoon who had like 6 billion in indirect spend. They couldn't see. And with Cuopa, the blinders are off. And there's that visibility, the BSM community is really helping organization glean value, drive profitability. Talk to me about from your perspective how the BSM community has grown to be able to deliver, as you say, value as a service. >> Look what's happening is that the customers we have, we have over 2,500 customers around the world. Every one of these customers, they have their own missions. They have their own visions, they're pursuing their goals, but in order to do that, they need energy. They need gas in their tank, right? And with every dollar we save them, with every method we allow them to become more efficient in the way that they work, the way that they have visibility, the way that they collaborate one another, the way that they think about fulfillment of demand through supply chain design, or sourcing activities, contract negotiations, procurement, sourcing, treasury the way they manage that cash. It's unlocking that firepower. It's given them more gas in the tank and that's incredibly rewarding for me and my colleagues and everyone here because our mission is the amplification of all of their missions on a daily basis, really. >> Right, that amplification that acceleration the AI and Coupa. I got to see you about, about a year and a half ago. We were a few months into the pandemic but I'm just curious what some of the customer conversations are that you've had given the challenges with the supply chain that's on the lips of every politician and pretty much everybody. What are some of the things that Coopa has really helped customers to mitigate? >> Well, first of all, the simplest things were when everyone went home they couldn't do those paper based processes anymore. So they leverage our platform much more, right? I mean, they couldn't write paper checks for example and go in the office and do that. And that's just a simple example, order things or or get goods and services to their folks that are now working from home, for example. But then they're also faced with the acute issue of supply chain needs and the agility of their supply chain. So we help them figure out different ways to transport the goods and services they need, different freighting routes in real time through our AI capabilities. So, I mean, those are just some of the examples but we really think of our value proposition as almost like a Swiss army knife. And what happened during COVID is, you know we went out into the jungle and you didn't know which of those tools you would've needed but we tried to be right there with our customer to give them, you know, the knife, the match, the scissors, the, you know the fishing line, whatever was needed at that point in time to help them survive and thrive. And that's really how we see ourselves is you know, a true partner to our customers. >> Yeah, a true enabler. Well, I was looking at your FY22 numbers growth in new business in excess of 60% percent record annual revenue, 725, be up for up 34% subscription revenue up. Coupa up into the right. >> Well, it is, and what we're trying to be very thoughtful with this business. We're trying not to grow so fast that suddenly we leave our customers behind. We really try to take it one customer at a time, but the beauty of this growth, this measured and thoughtful growth is that this, we have an incredible renewal rate. I mean, our customers stay with us and they add more and more capabilities. And that drives an incredible cash flow situation for our business. And that makes us as Coupa very resilient. That's why we love being so transparent with our customers. Here's our growth, here's our margins, here's our cash flow. Here's how we're investing into R&D and innovation. Here's the M&A that we're doing to bring you a greater set of value propositions. And I love that transparency. It's one of the beauties of being a public company everything's out there and everyone can see and decide whether they want to be a customer, be an investor, be a colleague. It's a wonderful thing. >> Talk about the power of the community. Community AI launched in FY22. You showed some numbers and just the power of all of that anonymized, aggregated data to be analyzed. What is that? How has that really driven the evolution of Coupa in the last 13 years you've been at the helm? >> Well, we set our sites on doing this as far back as 13 years ago. I know you interviewed Donna recently and she was sharing with you that we set up our contracts with the customers in a way where we could take their anonymized sanitized data, aggregate it, and see if we can glean insights from it that could be used to the benefit of each individual customer. Really break the silos of traditional enterprise software. You know, where you do one deployment at a time and you live in your own little silo in your own little world. Now we're pushing, you know, a myriad of prescriptions out to each of our customers. They can see the best ways in real time to avoid supplier risk for example, make sure that the goods and services they buy they get on time at the right price points, make sure that the suppliers that they're working with support their diverse needs, their minority own supplier needs. All of the transparency that comes with seeing trillions of dollars in data in real time and gleaning insights from it. And we're just scratching the surface in this area. We're absolutely just scratch and service. We've pushed out this platform to our customers and now they're coming back to us and saying, wow, could I glean this sign insight from the community? What if we can get access to that information? And we're encoding that for them and pushing that information and those applications out to them. So this is going to be an exciting couple of months and quarters and years to take this concept of community AI to a completely different level. And I think it's not only new for Coupa, but I really see it as something completely new for the enterprise software industry where the opportunity to break silos is really upon us. >> It's critical, but a lot of communities are very transactional episodic, Coupa isn't like that. >> Well, you know that there's no shortcut to that. That has taken 13 years. And I think that begins with the O in Coupa which is the openness, the openness, the transparency the authenticity in which we, with which we engage with our customers. They understand how we work. They have access to all of our other customers. They can interface with them and interact with them within their own industry, within their own company size, whether they're the largest companies in the world, or you know, upper mid-market or mid-market customers whether they're subscribing to our treasury applications or our supply chain or procurement applications. And by having access to this community in real time and a community that's grounded in that trust and authenticity, you know, only great things happen. Only great things happen. >> The trust in a authenticity is critical. It's easy to say, you can trust us. We're authentic. It's a whole other thing to actually feel it and believe it and see it. And you get that sense here from your keynote. Barbara Corcoran was fantastic. Inspiring, I loved how she said she'd probably never had an original good idea herself that always gets them from others. And I thought that's Coupa to me, that's the spirit of community, the spirit of collaboration. All of those Cs to me embody what Coupa is. >> Exactly, exactly. None of us is as smart as all of us. That's what it is. No doubt. >> It's true that power of that community is. And I think I read in Fast Company just really recently that you described the community AI as a moonshot. And I thought, where is he going to go from here? (laughing) >> Well, it's continuing to build on this concept. It's really continuing to build on this concept of breaking these siloed data stores, aggregating them and distilling insights from them in ways that we ourselves as Coupa, as our R&D team or Raj and our product team we don't know all the different ways the customers will want to use this power of community. But we know we have a very scalable underlying platform that operates in virtually every language and virtually every currency that will be there to support their evolving needs. As we continue our, you know, what we hope to be lifelong relationship with our customers. >> I was talking to one of your customers. I think it was Jabil recently, and we're having them on the program today. And they actually said they were an SAP ERP shop. They could have gone the SAP route and chose Coupa. And one of the main reasons was because Coupa was going to be able to evolve with them, but allow them to help Coupa evolve. And I get that sense from a lot of your customers that we have the opportunity to influence the direction that the technology goes. Because we are here in the back office now moving to the front. >> Rob: That's right. >> In a day to day, really figuring out what if it did this? What if it did that? Now it does all of these things because the community gets to be that influential >> That's right. And we also, the beauty is we're able to help them. Our customers unlock the value of their investments into core ERP platforms, whether it be SAP or Oracle a host of other ERPs, we help them get strategic leverage from those applications. And we're building this company very much on the shoulders of early, you know, enterprise software companies like themselves. So it's really a beautiful, you know relationship with our customers, but also a way to, to give them more and more leverage >> That's critical. Especially as every company these days it has to be a data company, but they have to be able to see the data, glean insights act on it, make pivots. It's one of the words that we probably use so often in the last two years is pivot, but I think without these companies having a data strategy from a competitive perspective, their toast. >> I think so I think it's really tough. You know, I frame it very simply. We spent many, many years in the industrial revolution. We're worried about, you know, physical labor, moving parts. We entered into the information revolution with the advent you know, the internet and now I think we're really in what I would call the knowledge revolution it's, as you said, it's not only the data, but gleaning valuable insights from that massive growing data store and delivering them at the point of need so that people can take advantage of that insight and that knowledge. And, you know, we're proud to be on the forefront of that as a growing, you know, technology company, a cloud based what we call values as a service company. >> Value as service, right. You mentioned in your keynote, you were talking about the the struggles of being a parent during the pandemic and trying to get your kids to watch some of the classics. I know it was right there with you, Superman, Rocky, was it Planes, Trains & Automobiles, that's another one, and I thought you mentioned, you know my kids had about three minutes of attention span. I thought in the business world, people have three seconds. The real time, get me what I need in the point of time when they need it. Is critical for every business in every industry because the consumer is so, our demands are just higher and higher. >> That's right. That's right. And you know, the U in Coupa stands for user centricity and the logic there was simply, if the machine could do the majority of the work there should be less and less stress upon the end user the user themselves, as I say, deliver exactly what they need at the point of need to them on the screen or on their phone or wherever it is so that they could keep business moving forward as efficiently thoughtfully and optimally as possible. And you know we take the responsibility as a value of service company, you know very seriously try to make sure that we optimize the time spent of the sort of the man machine, woman machine interaction then less and less is on the, on the man or woman, and much much more is on the, you know the platform that we continue to develop. >> One of the things I read that you said in the press release I think it was yesterday's, chief financial officers, chief information officers, CEOs, they need to be chief transformation officers. That's a hard thing to do, especially for, I can imagine organizations like I had Casey's General Store on, this is a company that was founded in the fifties. How are you seeing that manifest into reality when you're talking with those CFOs and CEOs, are they really becoming those chief transformation officers? >> Well, they're all aspiring to it and we're, in my view proudly helping them move as quickly as possible toward that end, to have companies that are highly agile, that can respond to shift and consumer demands, consumer needs, shifting supply chain, you know, challenges, shifting financial scenarios out in the marketplace given the volatility of the stock market. So if we could offer that agility and resiliency and that additional stool of digital transformation for CEOs, CFOs and CIOs, and, you know we're doing something special out there. >> So Rob, last question for you. What does tomorrow look like for Coupa? What are we going to see and feel next year? Any crystal ball insight you can share with me? >> You know, I don't know. One of the things about us is we're not we're a little bit of a boring company. It's one quarter after the next week. >> I saw the dancing video that is not boring. (Rob laughing) >> But you know, it's been what, 52 quarters of going at it, one quarter at a time, one customer at a time one interaction at a time, one line of code at a time, you know, one QA assurance at a time, one support ticket at a time just moving forward moving forward, moving forward. And before, you know, it, you turn around, you look around and we began as you know, know a couple of handfuls of people with a desire to inspire an industry is starting to take shape. And we feel like, you know, we're not just getting started, but we're certainly in the early innings of I think creating a very special company and more importantly, a very special community around the company that we're forming. I would say a very special community. Rob, great to have you on the program, congrats on doing the event in person, getting all of these people that are so ready to see you guys and to be able to interact with Coupa and its partner ecosystem, getting us all together. One of my favorite events, we appreciate you stopping by on the CUBE. >> Thank You. Thanks for having me again. >> All right. For Rob Bernshteyn, I'm Lisa Martin. You're watching the CUBE's coverage of day two Coupa Inspire 2022 from Las Vegas. Stick around. My next guest will join me shortly. (lighthearted music)