sap - ariba İle tedarİk sÜrecİnİzİ bulut bİlİŞİme taŞiyin - sap forum 2013

Stefano Manna, Regional Sales Manager

June 7th 2013, Istanbul

Innovation in Procurement Leveraging Ariba’s Cloud-based Solutions & Network

© 2013 SAP AG. All rights reserved. 2

RESEARCH SHOPPING ENTERTAINMENT

COMMUNICATION

& COLLABORATION

Personal Networks Make Our Lives Run Better…


But Businesses Still Struggle

Inter-Enterprise Collaboration: The Corporate Epidemic


Challenge: Too many Ineffective Approaches…

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

!!!!!!!!!!!!!!!!! Buyer Supplier

Fax Server Direct Connect

EDI VAN’s

Enterprise Portals

Buyer Supplier

Supplier Buyer

Single Process Solutions

Buyer Supplier

Mail, Phone, Face-Face


There is a Better Way

“Other”

Buyers Suppliers

Partner and

Ecosystem Solutions

An SAP Company

Ariba Network ~1 million trading partners across all industries

40+ million Purchase Orders

60+ million Invoices

~$400 billion in spend

142 countries

72 currencies

40 Invoice compliant countries

EDI

Email

HTML

cXML

AS2

Paper

Smart

PDF

CSV

xCBL


Source: Billentis, The Hackett Group 2011 P2P Benchmark Report, Aberdeen, and Ariba Results

The Impact of Networked Business

Cost Savings

Only .2% contract

leakage

60 – 80% operational

cost takeout

$2M savings for every

$1B in spend from

discount execution

$3 - $20 savings per

document

Seller Benefits

Average DSO

reduction of 5.6 days

Increase of annual

sales by 15%

98% customer

retention rate

Business Results

+5 - 7%

Net Income Impact

Productivity

66% decrease in

approval times

98% touch-less

processing

8x more invoices

managed per FTE


Ariba solution landscape

With close to 1 Million suppliers

Analyze Discover Plan Negotiate Evaluate

suppliers

Contract Broadcast

catalog

Request Approve Receive Process

Invoice

Manage

Cash

Sign and broadcast the deal

Buy it Be invoiced Pay it

Your

Need

Find a deal (Sourcing)

Spend visibility Ariba Discovery Sourcing SIPM

Contract mgmt APC

Ariba Procure To Order

Ariba Procure To Pay

Invoice Pro Discount mgmt

Contracts Tenders/RFx/Auction

Catalogs Purchase Orders

Order confirmations Shipping notices

eInvoices Invoice & Payment status

Early payments


Leading Organizations are Already Using the Ariba

Network to…

Collaborate immediately with

all trading partners – activate

not implement

Turn paper into efficient

electronic transactions

Catch errors – and correct

them – before they happen

Reduce the cost of

goods – beyond

sourcing efficiencies

See opportunities you’re

missing and have the ability to

participate worldwide

Access to all Network suppliers already enabled

Unlimited supplier on boarding

15+ collaboration processes

Enforce policy & compliance rules in real time

Notifications and alerts based on transaction data

Global invoice compliance

Visibility into fulfillment & supply chain

Optimize working capital with discounting

Cloud catalog and contract compliance

Proactive notification of sales growth opportunities

Promote your organization’s offerings with ease

Dynamic proposal of new sources of supply

Automatically accept electronic PO and Invoices

Convert paper with conversion services

Easily allow sellers to flip PO into Invoices


Ariba Network: Extending the Value of SAP

Corporate System

of Record

Solution Components

• Seamless integration to SAP ERP, SRM, SCM

• Purchase-to-Invoice Collaboration

• Network-based Supplier Self Catalog & User

Buying Experience

• Unlimited Supplier Enablement

Solution Value Levers

• Single point of collaboration for ALL your

suppliers

• Collaborative capabilities for ALL spend types

• Best practice and bundled enablement services

• Known up-front cost

• Rapid activation

1. ECC Fin. + MM

2. ECC Fin. Only

3. ECC MM Only

4. ECC + SRM

5. SRM Only

6. SCM

7. TMS

Scenarios

EDI

Email

HTML

cXML

AS2

Paper

Smart

PDF

CSV

xCBL

Trading Partners

Enables your business to address 100% of your corporate spend

and 100% of your supplier relationships…


>1,500 global suppliers networked enabled

98%+ touchless invoicing -- integrated with

8 SAP systems worldwide

96%+ on-time payments – and enhanced

discount capture

75% reduction in AP costs

Global VAT and regulatory compliance – incl.

in China

>4,000 suppliers network enabled

>500,000 electronic invoices/yr.

– integrated with 7 SAP systems

globally

70% global invoice volumes moved

from paper to electronic – incl. non-PO

>30% reduction in BPO costs

Collaborative Finance Case Studies Extending Reach & Value of SAP

© 2012 Ariba, an SAP Company. All rights reserved.


Your current investment is the foundation, whether Ariba

or SAP and whether in the Cloud or OnPremise…

OnPremise Solutions

Cloud Solutions

An SAP Company

Spend

Analytics Sourcing

Contract

Management

Operational

Procurement

Invoice

Management

Supplier Management

Spend

Analytics Sourcing

Contract

Management

Operational

Procurement

Invoice

Management

Supplier Management

Suppliers Buyers

© 2013 SAP AG. All rights reserved. 13 © 2010 Ariba, Inc. All rights reserved. 1

3

Supplier Enrichment - Supplier Normalization/ Rationalization

-Parentage

-Enrichment: SIC, Credit, Revenue,

Bankruptcy, Diversity*, Green*,

& Risk Ratings*

Data Extract (Tools & Services)

-Extract data from multiple Source Systems

-Leverage sample scripts or optional services

Ariba Visibility Overview

Source Data ERP 1

ERP x

P-Card

Ariba Analysis (Output)

- Personalized Role Based Dashboards

-Drag & Drop Reporting

-Prepackaged & Custom Reports

- Alerts & Formulas

Opportunity Analysis (What-if modeling)

-Benchmark Savings, Indexes, etc.

-Scheduled Reports emailed to Team

-Supports classification changes thru UI

Commodity Classification (Classified via best practice combination of

Knowledgebase, Databases & Services) Classification to UNSPSC & Ariba Best Practice Taxonomy

-Custom Taxonomy supported

--Granular drill down from highest to lowest to part

-Flex fields to support any customer reporting needs

© 2013 SAP AG. All rights reserved. 14 © 2011 Ariba, Inc. All rights reserved.

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4

Process Flow…

Ariba Sourcing Technology and Expertise…

Identify Sourcing

Opportunities , Suppliers

And Build a Pipeline

Create Sourcing

Project / Event

Publish for

Supplier Review and

Response

Receive Electronic

Bids from

Suppliers

Grade and Evaluate

Supplier Bids

Suppliers Selected

Notified of Award

Ariba Sourcing

Expertise

Event Day Management

Event Analysis

Ariba Sourcing

Expertise

Sourcing Support Desk


© 2010 Ariba, Inc. All

rights reserved.

1

5

Typical Contract Management Automation Business

Requirements

Tools to Manage Your

Contracts…

• Contract authoring tools including clause libraries and conditional templates

• Microsoft Word integration

• Contracting process standardization incorporating workflows and approvals

• Audit trail for internal and external/regulatory requirements

…and Your Commitments

• Centralized electronic contract repository

• Search and reporting capabilities

• Task-driven notification alerts

• Expiry notification for improved renewal management

• Improved relationships resulting in more up-sell opportunities

© 2010 Ariba, Inc. All rights reserved. © 2010 Ariba, Inc. All rights reserved. 15


Best Practice: Ariba Smart Invoicing


rights reserved.

Invoice

The best invoice solution is the one that is TOUCHLESS

Ariba Smart Invoicing drives auto post rates of 98% compared to

less than 60% with other solutions

Lower AP/AR Costs

Faster Cycles

Lower Risk

Over 70 configurable rules

that capture errors and

exceptions before they reach

AP

Supplier Portal provides real-

time access to invoice and

payment status eliminating

inquiries to AP

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6

N E T W O R K ®

BUYERS

AP

Acct Coding

Contract Match

Price Compliance Ship to

Address

Invoice Number

Invoice Date

Bill-To Address

VAT/GST Compliance

Qty Threshold

Unit Amt Threshold

Ariba

98%+

Auto Post

SUPPLIERS

AR

• Fewer than 2% exceptions

• Massive decrease in AP effort

• Procurement time and cost

savings

• Real-time visibility into errors

• Rapid resolution and re-

submission

• Faster days sale outstanding

Error

Exception



rights reserved.

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7

© 2011 Ariba, Inc. All rights reserved. 17

20 10 30

1%

2%

3%

Dynamic Discounting: Pro-Rated Sliding Scale Ensures Fairness

45 3

Invoice

approved

Accelerated Payment Program: Immediate Payment!! € 972.00

2.8%

Choose Not to Participate – Full Payment in 42 days! € 1,000.00

Date Paid Determines Discount: € 980.00

2.0%

Pro-Rated: € 990.00

1.0%

0

Invoice

Received

via Ariba

24,33% APR

Zero Risk


• New Corporate Purchasing Group operative with an automated end-to-end process

• Sourcing process online and first e-RFP executed in just six weeks from project launch

• Over 600M € sourced annually with 10% average savings

• Sourcing savings after first 6 months exceeded overall Ariba investment for the next 3 years

• P2P enabled in 12 weeks and integration to ERP in 20 weeks

• Paperless invoicing process in place, improving visibility into cash flow. 500M € invoiced in 2012


rights reserved.

Company

Fomento de Construcciones Y Contratas

Profile

Leading European Construction

Company, with operations in

Spain, South and North

America and Central Europe.

Ariba Solutions

Ariba Sourcing

Ariba Contract Management

Ariba Supplier Information

Performance Mgmt

Ariba Procure to Pay

Ariba Invoice Management

Ariba Network

Challenges Solutions Results

• Global construction slowdown, especially severe in HQ country (Spain)

• Need for quick cost reductions to balance sudden decline in turnover

• Newly formed centralized purchasing organization to control spend, reduce costs and increase savings

• Disparate, manual processes – lacked systems to empower organization

• Corporate ERP not covering purchasing process, but rather only financial ones

• Selected Ariba

solutions to cover end-to-end Sourcing to Invoicing process

• Integration with existing ERP to assure seamless follow-up of accounting and financials

• Leveraged the Ariba Network to ensure quick connectivity with suppliers

• Ariba Consulting Services to ensure rapid deployment, enable the spend across the Ariba platform and support ongoing supplier enablement

• All purchases above threshold must be negotiated by purchasing

Cloud Suite Enables Fully Restructured Purchasing

Organization to Protect the Bottom Line


70% reduction in per PO operating costs

Over 600 catalogues enabled

All spend categories now enabled for e-procurement

For purchases through SRM, improved coverage and catalogue interface with a seamless end user experience

For all other purchases, improved user adoption and compliance with easy-to-use interface

Improved supply base collaboration and increased inter-enterprise productivity

Improved VAT and contract compliance

Collaborative Commerce at Air Liquide Extending Value of SAP, JDE & Movex

Company

Air Liquide

Profile

World Leader in Gases

for Industry, Health and

the Environment

Ariba Commerce

Cloud Features

Ariba Procurement

Content

Ariba Procure-to-Order

Ariba Network


• Extremely dispersed organization, with operations in 80 countries

• Even more global supply base – struggle to onboard suppliers and catalogues

• Multiple purchasing systems not well adopted

• Need to improve contract and VAT compliance

• Continued pressure to drive greater savings to P&L

• Desire to forge more strategic and collaborative supplier relationships

Ariba Procurement

Content™ solution integrated with SAP SRM and PM for direct materials purchased via SAP

Ariba Procure-to-Order™ solution integrated with SAP, JDE, and Movex for indirect spend and other direct materials

Ariba® Network as the single connection to catalogues and suppliers

© 2012 Ariba, an SAP Company. All rights reserved.


Cloud Suite Enables Transformation into a Strategic

Purchasing Organization


rights reserved.

Company NSG Group

Profile Global leader in

glass technology

Ariba Solutions Ariba Sourcing

Ariba Contract

Management

Ariba Supplier

Performance

Management

Ariba eInvoicing

Ariba® Network


• Extremely dispersed operations, with manufacturing in 29 countries, sales in 130 countries, and procurement operating in silos

• Multiple SAP and legacy systems across four continents

• Procurement was extremely transactional

• Significant maverick spending

• Manual processes due to a patchwork of legacy technology and a failed e-procurement implementation

Restructure Procurement

organization / upskill team

Selected Ariba’s cloud-based suite to ensure rapid time to value and enable seamless, efficient processes

Ariba eInvoicing solution integrated with multiple SAP/legacy systems to drive efficiency gains in invoice processing and working capital management

Ariba Sourcing™ solution to drive consistent, best practice e-sourcing for all categories

Ariba Supplier Performance Management™ solution as the single source of truth for supplier information

Ariba Contract Management ™ solution as sole database for procurement contracts

A more strategic, integrated, and credible purchasing organization

In first six months, over 375 suppliers enabled and 45,000 e-invoices processed (over 90% “touchless”)

Real-time information sharing across countries, time zones, and functions improved quality and speed of decision making

Drastic uptick in technology adoption, with over 250 users running 529 sourcing events and loading 2,296 contracts into Ariba solutions in first half of FY12

Improved achievement of sustainability targets and risk and performance mgmt

Teşekkürler!

Stefano Manna

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]