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Accelerate The Sales Cycle Through The Perfect Order
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Come hear a panel of Ariba sellers that subscribe to the concepts of the Supply Chain Council’s Perfect Order Initiative explain why they participate and how Ariba is an integral part in their plan ...

Come hear a panel of Ariba sellers that subscribe to the concepts of the Supply Chain Council’s Perfect Order Initiative explain why they participate and how Ariba is an integral part in their plan to attain the "Perfect Order."

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  • http://vimeo.com/60522431 Grainger-NSSM
  • Customer preferences are changing... Industry experts estimate that 40% of MRO will be transacted online by 2013. It is no longer a choice!Leverage business commerce to develop long term strategic partnerships. Become customer’s first choiceMeet customer needs at all levels:Find MRO products fastGain greater visibility to all MRO spend (planned and unplanned)Manage and reduce purchasing costs through automationDrive compliance to negotiated contract to achieve maximum savings
  • It all starts with the right Platform: A world-class eProcurement solution that can support the entire req-to-check processWith a great shopping experience:Accurate and up-to-date product and Supplier data available every timeSeamless and accurate ordering:Electronic Purchase Order transmitted to Supplier (connected directly to ERP system)Electronic Purchase Order Acknowledgment transmitted back to requesterElectronic Shipping Notification transmitted back to requesterSeamless and accurate invoicing:Electronic Invoice transmitted to Customer’s ERP systemEasy payment:Electronic Payment completes the cycle
  • Table Stakes Accepting the current ‘cost of doing business’ will come at the cost of generating new business

Accelerate The Sales Cycle Through The Perfect Order Presentation Transcript

  • 1. Accelerate the Sales Cycle through thePerfect OrderA Seller Panel© 2013 Ariba, Inc. All rights reserved.
  • 2. #AribaLIVEPresenters• Austin WhiteheadSr. Product Marketing Manager, Seller SolutionsAriba• Andre RegoSenior Manager, eCommerce Strategy,Grainger Inc.• Niels GjerloevB2B/eProcurement Sales LeaderIBM© 2013 Ariba, Inc. All rights reserved.2
  • 3. #AribaLIVETHE PERFECT ORDER: ANINDUSTRY PERSPECTIVEAustin Whitehead, Senior Product Marketing Manager, Ariba© 2013 Ariba, Inc. All rights reserved.3
  • 4. #AribaLIVESupplier Management: ParadigmShift© 2013 Ariba, Inc. All rights reserved.4Traditional View of “Vendors” Suppliers are companies that providegoods and services as needed Interactions are zero sum Leverage is the key to value Contracts and SLAs are the primarysupplier management andcommunication tools Suppliers are a source ofknowledge, expertise, and assets that wecan leverage to gain competitiveadvantage In a world of competing supply chains, oursuccess is tied to that of our suppliers Collaboration is the key to value Complex supplier relationships requireformalized governance and relationshipmanagementNew View of “Partners”
  • 5. #AribaLIVE“To be successful, we need to deliveron improving execution across thesupply chain.”~ Bob Eckert, Chairman and CEO, Mattel Inc.Competition in the New Age© 2013 Ariba, Inc. All rights reserved.5Supply Chain Success = Business Success
  • 6. #AribaLIVEWhat is a Perfect Order?• On Time• Complete• Damage Free• Correct Documentation© 2013 Ariba, Inc. All rights reserved.6On the road toPerfection, Remember toenjoythe journey!
  • 7. #AribaLIVEA Perfect Order Means DifferentThings to Different Partners© 2013 Ariba, Inc. All rights reserved.7For Buyers Ordering the right things from the rightsupplier At the right time On-time delivery Right location and complete Efficient invoice processing but slow pay ordiscount capture Shipping what was orderedt Efficient fulfillment On-time shipping Right location and complete Efficient invoicing to get paid quicklyFor Suppliers….AND IN DIFFERENT INDUSTRIES….
  • 8. #AribaLIVEHow to Define Perfect Order?© 2013 Ariba, Inc. All rights reserved.8
  • 9. #AribaLIVESpend Analysis eSourcingContractManagementeProcurement ePayablesThe Cost of Imperfection (Buyer)© 2013 Ariba, Inc. All rights reserved.9• Failing to identify best supplier can cost 10% - 20%• Non-compliance to contracts costs an extra 6% - 12%• Poor invoicing can add 40-60% admin cost plus loss of discountsand overpayments• Cash flow impact• Production – disruptions and higher risk• Erodes sales and customer satisfaction
  • 10. #AribaLIVEThe Cost of Imperfection (Supplier)© 2013 Ariba, Inc. All rights reserved.10• Sales• Production• Productivity• Cash flow• Innovation• AND MORE
  • 11. #AribaLIVEThe Network-Driven Perfect Order© 2013 Ariba, Inc. All rights reserved.11• Buyer Perspective• Supplier PerspectiveWhat?Who? When? Where? Why? How? How much?
  • 12. #AribaLIVERecommendations© 2013 Ariba, Inc. All rights reserved.• New approach to supply/spend management• Clearly define “The Perfect Order” and sharewith partners• Understand the cost of imperfection• Understand the cost of total perfection• Leverage network capabilities toimprove performance12
  • 13. #AribaLIVETHE PERFECT ORDER: ASUPPLIER PERSPECTIVEAndre Rego, Senior Manager, eCommerce Strategy, Grainger Inc.© 2013 Ariba, Inc. All rights reserved.13
  • 14. #AribaLIVEMy eProcurement Journey…© 2013 Ariba, Inc. All rights reserved.14Federal UniversityRio de JaneiroElectronic EngineerUniversity of Illinois atUrbana-ChampaignMasters in Business andInformation TechnologyeProcurement StrategyGlobal eProcurementGlobalPharmaceuticalCompany
  • 15. #AribaLIVEGrainger OverviewOne-stop-shop- Over 1 million MRO products, 3,400 suppliers- eCommerce and Inventory Management Solutions- Extensive distribution network© 2013 Ariba, Inc. All rights reserved.15North Americas leading B2B broad line supplier ofMaintenance, Repair and Operating supplies.(expanding presence in Asia and Latin America)Trusted eProcurement Partner- Ariba Ready Platinum Supplier with extensiveknowledge and experience in eProcurement solutionsFORTUNE Most Admired Companies in the World, #1 Diversified WholesalersInternet Retailer Top 500, #15 Overall and #1 in Category
  • 16. #AribaLIVEWhy Electronic Commerce?© 2013 Ariba, Inc. All rights reserved.16
  • 17. #AribaLIVEThe Perfect Order• Customers that invested on Ariba or other eProcurement solutionsexpect more, they want a retail-like experienceFast to find productsEasy to place orders and to pay based on agreed termsEfficiency gains through full automation (low transaction costs from req to check)© 2013 Ariba, Inc. All rights reserved.17• Unlike retail websites that control most of the onlineexperience, eProcurement solutions require greater collaborationacross internal departments and the entire Supply Chain• The good news:
  • 18. #AribaLIVEThe Perfect Order• Using all the tools currently available and collaborating with your keySuppliers, you can give your users a retail-like experience.© 2013 Ariba, Inc. All rights reserved.18Electronic Order Electronic NotificationsElectronic InvoicesElectronic Payment
  • 19. #AribaLIVEWhy does it matter?• For BUYERS:Retail-like experienceTimely delivery of productsReduced procurement costsReduced inventory due to increased trust indelivery timesReduced invoice rejections and increasedauto invoice to PO matching© 2013 Ariba, Inc. All rights reserved.19• For SUPPLIERS:Reduced PO receipt and fulfillment costsAccurate PO decreases costs of returnsand credit processingReduction/elimination of invoice rejectionsthat cause payment delays
  • 20. #AribaLIVEThe Opportunity• 51% COST REDUCTION1average requisition to order costbefore eProcurement was $63.20,after eProcurement, dropped to$32.28• 36% COST REDUCTON ININVOICE-TO-PO MATCHINGPROCESSING2Companies utilizing automatedmatching of Invoices to POs versusthose not currently leveraging thistechnology.© 2013 Ariba, Inc. All rights reserved.201 Source: The eProcurement Benchmark Report: eProcurement 2.0, Aberdeen Group, August 20062 Source: Invoicing and Workflow, Integrating Process Automation to Enhance OperationalPerformance, Aberdeen Group, May 2011
  • 21. #AribaLIVEBest Practices• Build strategic partnerships with your Suppliers andjointly define the right eProcurement strategy withclear objectives.• Engage the right people throughout the processand understand their specific needs.• Start with a vision for “The Perfect eProcurementOrder” and build the steps necessary to achievethat. Your users and Suppliers will thank you!• Avoid jumping to electronic invoices without a propershopping mechanism and electronic orderingprocess in place.• It is never a one-time event. Develop ongoingchange management and engage your strategicSuppliers to help you drive adoption.© 2013 Ariba, Inc. All rights reserved.21
  • 22. #AribaLIVETHE PERFECT ORDER: ASUPPLIER PERSPECTIVENiels Gjerlov, B2B/eProcurement Sales Leader, IBM© 2013 Ariba, Inc. All rights reserved.22
  • 23. #AribaLIVEBioNiels GjerløvB2B/eProcurement Sales Manager, Online Commerce Europe• M.Sc in Economics from Univeristy of CopenhagenMaster thesis on Operational Research• Joined IBM 1990• For over a decade, work has includedOrder Management processesProcess development and Order Data ModellingB2B xml integration projects (globally)IBM Online Commerce is the center of competence for Client interactionelectronically with IBM regarding catalogues, elecronic order and invoiceflows, web-based workflows.© 2013 Ariba, Inc. All rights reserved.23
  • 24. #AribaLIVEAgenda• IBM Sell Side and B2B/eProcurement• First steps• What is important – and to whom• Progression towards touchless integration• The optimal order flow© 2013 Ariba, Inc. All rights reserved.24
  • 25. #AribaLIVEIBM’s Involvement witheProcurement: Sell-Side Perspective• IBMs was as an early adopteron EDIFACT – from a Buy Side• Sell-Side first web orderingchannel for Business PartnersPartnerWorld) was built in the late 90s• First integrated (xml) orderingchannel in to IBM’s Sell Sidewas put in place in 2002© 2013 Ariba, Inc. All rights reserved.25
  • 26. #AribaLIVEIBM’s Involvement witheProcurement: Sell-Side Perspective• Today, IBM hasmultiple web-based workflow solutions toassist buyers– pre-ordering,– P2P management and– post-payment transactionsa well-established Enterprise Gateway– integrated communication between directClients, Business Partners and IBMover 4,800 clients connected– web solutions or– P2P transacting© 2013 Ariba, Inc. All rights reserved.26
  • 27. #AribaLIVEJumpstarting Our eCommerceCapabilities• External and internal events required IBM toquickly engage in Sell-Side B2BBusiness Partners required orderintegrationInternal web platform required structuredinternal data communiction• First project was implementation of theRosettaNet 3A4 Purchase Order, that wentlive in 2002.Additional RosettaNet projects forBusiness Partners include OrderResponse, Order Status, AdvancedShipment Notification, Sales OutReporting© 2013 Ariba, Inc. All rights reserved.27
  • 28. #AribaLIVEJumpstarting Our eCommerceCapabilities ... 10 Years AlongIBM is connected through a vast span of formats directly with our Clients andBusiness Partners, or through one of the many eProcurement ServiceProviders available on the market – the largest of which is Ariba.© 2013 Ariba, Inc. All rights reserved.28
  • 29. #AribaLIVEBut Buyers and Sellers HaveDifferent PrioritiesProcurement is looking tooptimise around invoicereconciliation to save money!Buyers are focused oneInvoicing in order to reduce theinvoice handling cost© 2013 Ariba, Inc. All rights reserved.29Sellers want tofocus on the order!Sellers are focusedon eOrdering, asthis means salesand revenueOne leads to the other!Procurement is looking tooptimise around invoicereconciliation to savemoney!Buyers are focused oneInvoicing in order to reduce theinvoice handling costSellers want tofocus on the order!Sellers are focusedon eOrdering, asthis means salesand revenueOne leads to the other!
  • 30. #AribaLIVEBut Buyers and Sellers HaveDifferent Priorities• Is there a common ground?© 2013 Ariba, Inc. All rights reserved.30A good order leads to...• on-time delivery• followed by a good invoice,• which leads to on-time payment...A bad order leads to...• additionalcommunication beforeorder acceptance,• delays inproduction/delivery,• incomplete invoice,• additional reconciliation,• perhaps an invoice rejectand claims handlingA bad transactionleads to...• more costs,• longer processing• and involvesmore people!
  • 31. #AribaLIVEBut Buyers and Sellers HaveDifferent Priorities• Is there a common ground?© 2013 Ariba, Inc. All rights reserved.31A good order leads to...• on-time delivery• followed by a good invoice,• which leads to on-time payment...A bad order leads to...• additionalcommunication beforeorder acceptance,• delays inproduction/delivery,• incomplete invoice,• additional reconciliation,• perhaps an invoice rejectand claims handlingA bad transactionleads to...• more costs,• longer processing• and involvesmore people!
  • 32. #AribaLIVEWhat does a perfect order look like?• Or rather – what does ”the perfect order flow” looklike? Quality in – quality out• Consensus between the Buyer and Seller onachieving the perfect order flow is essential.On-time payment requires a perfect invoiceA perfect invoice requires a perfect purchaseorder the can be matched and reconciliedA perfect purchase order from the Buyerrequires a perfect proposal or catalogue fromthe Seller• Consensus between the Buyer and the Seller onthe data elements contained is keyContract numbers and party identifiersPayment Terms and Delivery instructionsProduct/Service content© 2013 Ariba, Inc. All rights reserved.32
  • 33. #AribaLIVEThe ”Perfect Order” Flow• Simple e-mail communication is just the first step• Buyers should share their eProcurement agenda, while Seller their capabilities.• Requires collaboration and partnership between Buyer and Supplier.One cannot achieve optimisation without the other!• Integrating systems requires collaboration between Lines Of Business on eitherside, Procurement and Operations as well as the IT departments.© 2013 Ariba, Inc. All rights reserved.33IBM Solution - Maturity CurveClientSpend/ClientValueValueCostsBasic Intermediate Advanced Full IntegrationTwo-way low techTransaction exchangeLight TouchIntegration“No” TouchIntegrationOne-way message(e-mail)simple websimple e-mailstructured e-mailwith specific datainitial system-to-systemautomated andtouchless integration
  • 34. #AribaLIVEThe ”Perfect Order” Flow• Simple e-mail communication is just the first step• Buyers should share their eProcurement agenda, while Seller their capabilities.• Requires collaboration and partnership between Buyer and Supplier.One cannot achieve optimisation without the other!• Integrating systems requires collaboration between Lines Of Business on eitherside, Procurement and Operations as well as the IT departments.© 2013 Ariba, Inc. All rights reserved.34IBM Solution - Maturity CurveClientSpend/ClientValueValueCostsBasic Intermediate Advanced Full IntegrationTwo-way low techTransaction exchangeLight TouchIntegration“No” TouchIntegrationOne-way message(e-mail)simple websimple e-mailstructured e-mailwith specific datainitial system-to-systemautomated andtouchless integration
  • 35. #AribaLIVEThe “Perfect Order” Delivers© 2013 Ariba, Inc. All rights reserved.35Increases ProductivityReduces Manual WorkloadCut CostsReduces Cycle Time
  • 36. #AribaLIVEWhat Information, Where and When? Understanding whatinformation is needed andwhere it is needed in theintegrated order flow requiresinternal and externalcollaboration manual process has mulitplehand-offs and media changes. There is no data interlock There is no collaboration onachieving KPIs© 2013 Ariba, Inc. All rights reserved.36
  • 37. #AribaLIVEWhat Information, Where and When?• Information is added at allpoints in the order flow.Some is crucial, some is not.Agree on what is neededwhere!• If an eProcurement ServiceProvider is involved, besure all three partiesare involved• Start the process with theRequest and work all theway through to Payment© 2013 Ariba, Inc. All rights reserved.37
  • 38. #AribaLIVESummary• While many Procurement departments are focussing on theperfect invoice, many Sales organsations are only worriedabout the purchase order• Aligning focus and collaborating on the perfect order flowwill yield the desired benefit in a win-win scenario• Understand of what information is required and at whatpoint in the process is a necessity in order to create atouchless and automated process• Share and discuss eProcurement strategy, KPIs and otherfactors that will help align objecives For Buyers – focus on eReconciliation. i.e. touchless order-invoices matching For Sellers – focus on moving Clients up the maturity curve. The more integrated the flow, the better the Buyer-Sellerpartnership!© 2013 Ariba, Inc. All rights reserved.38
  • 39. Questions?© 2013 Ariba, Inc. All rights reserved.
  • 40. #AribaLIVEPlease Complete Session Survey© 2013 Ariba, Inc. All rights reserved.40Find Sessionin ScheduleClickChoose oneRateSessionThank you for joining usClick Survey andSelect BreakoutSession Survey