Collaborative Sourcing expands the scope of traditional strategic sourcing disciplines to engage more effectively with internal and external stakeholders to find the best opportunities that unlock greater value. SAP customers who are currently using SAP ECC 6.0, SRM, SAP SPM, SAP Sourcing and CLM customers can attend this session to get a thorough understanding of complementing their existing SAP footprint with Ariba Network Cloud Solutions for Spend Analytics, Strategic Sourcing and Supplier Management.
Topics covered in this session include:
i. SV Basic service solution for SAP SPM customers with seamless integration to D&B content using Ariba Data Enrichment.
ii. Ariba Discovery for SAP Customers
iii. Ariba Sourcing - Network RFQ to drive sourcing events directly from SAP MM and SRM
iv. SIPM for SAP customers (advantages of using a network driven approach to manage supplier information and performance)
v. Planned Integrations – SAP ECC to Ariba Network Solutions
2. #AribaLIVE
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without
the permission of SAP. This presentation is not subject to your license agreement or any other service or
subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this
document or any related presentation, or to develop or release any functionality mentioned therein. This
document, or any related presentation and SAP's strategy and possible future developments, products and
or platforms directions and functionality are all subject to change and may be changed by SAP at any time
for any reason without notice. The information in this document is not a commitment, promise or legal
obligation to deliver any material, code or functionality. This document is provided without a warranty of any
kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness
for a particular purpose, or non-infringement. This document is for informational purposes and may not be
incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except
if such damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results
to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-
looking statements, which speak only as of their dates, and they should not be relied upon in making
purchasing decisions.
Legal
disclaimer
6. #AribaLIVE
SAP Spend Performance Management
Best-in class comprehensive Spend Analytics solution
• Extractor Starter Kit (SAP)
• SAP BOBJ Data Integrator ETL
Tool (Non-SAP) – Included in
SPM License
• Web based
• Self-service data
management portal
• Aggregated Raw Data
Views
• Enriched and Classified
Views
• Analyze Savings
Opportunities
• Monitor KPIs
• Track compliance
• Assess Risk
Supplier Enrichment
• Supplier Normalization/
Rationalization
• Parentage
• Enrichment:
SIC, Credit, Revenue, Bankruptcy,
Diversity*, Green* & Risk
Ratings*
P-Cards
GL/AP
Supplier data
Data Extraction/
Integration
Source Systems
Powerful, Actionable
and Easy to Use!
SAP SPM
Ariba Spend Visibility
Basic for SPM
OnDemand
Spend Reporting
SAP SPM
Commodity Classification
• Classified via best practice
combination of
Knowledgebase, Databases &
Services
• Classification to UNSPSC & Ariba
Best Practice Taxonomy
• Custom Taxonomy supported
Daily
Weekly
Monthly
Quarterly
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SAP Spend Performance Management
Data Flow and Responsibilities
• As part of SPM Implementation
Customers use SPM Extractor
Starter Kit or other ETL process
to extract data from Source
systems
• Customers loads the raw
data into SPM and upon
Validation exports un-
enriched (raw) data from
SPM Data Management into
flat files in SPM Formats and
uploads them to Ariba
Secured Site.
• Customers download the
Enriched and Classified data
and Loads them into SPM.
• Any post Enrichment and
Classification process related
support will be provided by
Ariba PM
P-Cards
GL/AP
Supplier data
Data Extraction/
Integration
Source Systems
Powerful, Actionable
and Easy to Use!
SAP SPM
Ariba Spend Visibility
Basic for SPM
OnDemand
Spend Reporting
SAP SPM
Daily
Weekly
Monthly
Quarterly
• Ariba team will pick up the
files, take them through SPM to
ADE transformation
service, validates the data and
runs it through Enrichment and
classification service
• Results of the service will be
validated as per SLA’s agreed
with customer, take them through
refinement process with
customer power user
involvement, export results and
transform to SPM formats.
Customer Responsibility Customer Responsibility Ariba PM Responsibility Customer/Ariba PM
Responsibility
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Strong Seller Community
Over 730,000 suppliers
Across 20,000 categories
In more than 190 countries
Over 30,000 green and diverse sellers*
36% have global reach
*12,000 Women, 900 Veteran, 8,000 Minority, 13,000 Green
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Relevant & Trusted Information
Rich Supplier Profiles
• Supplier Provided Information
♦ Description
♦ Business Information
♦ Certifications (Green, Diversity)
• Ariba Community Information
♦ References
♦ Ratings
• Ariba Information
♦ Ariba Commerce Cloud Activity
♦ Advantage designation
♦ Ariba Ready Certification
• Objective third-party financial
and risk information
♦ Up to 4 types of D&B® financial
and risk scores
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Benefits
Fast & Easy
Interactive
Effective
Trusted
Integrated
It’s Free!
Save up to 90% time and 75% cost
finding and qualifying sellers
Lower your cost by 15%, reduce
lead time, and improve quality
Communicate with sellers in real-
time, and make better decisions
Join other buyers who post over $350B
USD per year in business volume
Easily bring sellers into your Ariba
Sourcing project from the start
Post your buying needs in 10 minutes,
and get matched to sellers at no risk
22. #AribaLIVE
0%
5%
15%
20%
35%
30%
25%
10%
Savings vs. Number of Bidders
2 3 4 5 6 7 8 9 10 11 12 13
Number of Participants
Source: Ariba Customer Averages 2011; Ariba GSO Services Experience, 2010
AverageSavings
Adding additional savings
opportunities by inviting
more suppliers
Typical number of
suppliers invited
Missed Savings With Too Few Sellers
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Network RFQ
Network RFQ’s
• An automated RFQ generated from a backend ERP system like SAP
ECC (MM) and or a Supplier Relationship Management system like
SAP SRM that allows for the Sourcing event to be built and published
in Ariba Sourcing with little to none buyer / project owner actions.
• Suppliers who are either invited as part of the Network RFQ or who
get matched through Ariba Network / Ariba Discovery can provide
their responses through Ariba Sourcing. And the responses are sent
automatically back to the source system like SAP ECC or SAP SRM
with little or no buyer action.
29. #AribaLIVE
Network RFQ
• RFQ initiated in SAP SRM or MM and sent to Ariba Sourcing via
Ariba Network
Tactical RFQ meant to be run without requiring buyer
interaction in Ariba Sourcing
Document includes Items, Suppliers, and Timings
30. #AribaLIVE
Network RFQ
• Ariba Sourcing Consumes the information and creates and
publishes the RFQ
If document contains all required information, it publishes
automatically
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Network RFQ
• Suppliers can be invited in 3 different ways
Direct invite Suppliers
Invite by Commodity
Open to New Suppliers
– Match on Discovery by Commodity / Location
– Suppliers “self-invite” via Discovery
– Notification sent to event initiator if new
supplier(s) quotes are sent back
32. #AribaLIVE
Network RFQ
• After the bidding, results are sent back over via Ariba Network
Best Bid
Lead Bid
Awarded Suppliers
Eric and Greg both spoke to the importance of identifying corporate linkage, diversity status and total spend when working with their suppliers. These are just some of the categories that we’d recommend companies explore to get a clear, overall snapshot of supplier health. Companies must also take into consideration overall financial health, socio-political stability of the supplier’s location, and the health of tier-2 suppliers. Establishing a central repository of all supplier data gives companies the ability to see the entire supply chain at a glance. From my days managing supply chains for HP, I know that compiling all that information can be challenging – and worse, can lead to incorrect information being used to make decisions. As a best practice, it is always beneficial to employ some sort of third-party review of the data – that not only validates the quality of the data, but can uncover opportunities as well. At D&B we use the DUNS-Right system – every supplier/organization has a unique identifying number which allows us to identify parent and children companies, branches, violations, etc.
Fourth: “How can I get advance warning of a supplier disruption or change in the status quo?”Advance warning of supplier trouble can mean the difference between avoiding a disruption and coming out on top or scrambling to pick up the pieces. Your options for resolution are so much broader when you have the luxury of time.
And most importantly: “What can your company do to stay out ahead of the competition?” Having the right information, in the right place is the first step in staying ahead of the competition. It gives you the tools you need to do the proper analysis to make informed business decisions.