Supplier Enablement Part 2: A Customer's Journey to P2P/eInvoicing Success

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eInvoicing & P2P programs have the potential to drive tremendous value to an organization, greatly empowering Finance/AP/Procurement. While deployments can be challenging, the real risk lies in supplier enablement. Failure to properly plan and execute your supplier onboarding and enablement program can prevent you from realizing the promised benefits, regardless of how good a solution you selected and how well its implemented. You must think global, even if your project is local, because your supplier base almost certainly is. You need the right resources, approach and support to be effective. Join this session to hear best practices and lessons learned from companies that have successfully tackled this challenge.

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Supplier Enablement Part 2: A Customer's Journey to P2P/eInvoicing Success

  1. 1. #AribaLIVE Supplier Enablement Part 2: Practitioners’ Journey to P2P/E-Invoicing Success Paula Zijda, Gasunie Procurement Project Manager Peter Beyeler, Clariant Global eProcurement & Automation Manager © 2014 Ariba – an SAP company. All rights reserved.
  2. 2. Global Supplier Enablement: The Key to P2P/eInvoicing Success Paula Zijda Project Manager Ariba - Gasunie Procurement 8 april 2014 Ariba Live 2014, Rome
  3. 3. Gasunie: gas infrastructure & gas transport
  4. 4. Volume ~100 bcm gas p/y Length transport grid ~15.500 km Compressor stations 22 Blending stations 19 Pressure regulating stations 93 Gas delivery stations 1.300 Export stations 14 LNG ( incl peakshaver) 2 Nitrogen facility 2 Underground gas storage 1 Underground nitrogen storage 1 Gas transport grid (in The Netherlands and Northern Germany)
  5. 5. NAM pijpleidingen The gas roundabout
  6. 6. Ariba at Gasunie – The Netherlands DONE Sim and Sourcing P2O and ASP, temp. labor Contract management P2P including ICS -6- Registration Supplier Information Management Requirement Sourcing Contract Contract Management Purchase Requisition (PR) Purchase Order (PO) Receipt (RC) Invoice (IR) Reconciliation Payment (PAY) TO DO POC connecting SAP-PM with Ariba POC stock driven materials ASP for subcontracted work ICS roll-out NOT (YET) Stock materials and Energy
  7. 7. The key success factor for implementing Ariba CHANGE MANAGEMENT Software as a Service Work process changes Digital way of working ICT component 8 april 2014-7- TWO STEPS FORWARD ONE STEP BACK IS STILL FORWARD PROGRESS
  8. 8. Change management for suppliers Supplier Supplier Supplier Supplier Supplier Supplier Buyer Buyer Requester Finance Accounts Payable Buyer Buyer
  9. 9. Characteristics of the Gasunie supplier base  Each year a delta of 300 suppliers  80% Dutch suppliers / 20% foreign suppliers  < 1% was familiar with Ariba at start of the project  In the energy industry, Gasunie is an early adopter of Ariba  874 suppliers enabled on the Ariba Network 8 april 2014-9- 1100 suppliers (per year) spread over 4 different spend categories Category # Suppliers Spend (M€) Materials 500 (only maintenance) 150 Contracting 250 300 Services 325 150 Energy 25 (not in Ariba) 300
  10. 10. Approach  Start in 2011 – implementation Sourcing and P2O  Information sessions for suppliers, with Ariba team present  Flyers - manuals www.gasunie.nl/en/suppliers  In 2012 we switched to a more personal approach – implementation P2P  Tender conditions prescribe the use of Ariba (for tender and order phase)  Currently we are reconsidering the approach for small suppliers since enabling them requires too much effort 8 april 2014-10-
  11. 11. Feedback from suppliers All POs are in one place (the Ariba Network) Transparency in invoicing process – status updates Process for hiring temporary labor is more efficient Some invoices from Ariba lead to discussion Invoicing in 2 systems (own ERP and Ariba Network when manually processed) 8 april 2014-11-
  12. 12. Lessons learned – conclusions  Enablement approach: personal approach works best  Timing of enablement, align with roll out plan  Change management, define strategy  Act with one voice  Arrange support for suppliers  Be open about the Ariba network fees, don’t be the go-between  P2P delivers more value to the supplier then P2O  Enabling small suppliers is time consuming 8 april 2014-12- “THE SECRET OF CHANGE IS TO FOCUS ALL YOUR ENERGY NOT ON FIGHTING THE OLD, BUT ON BUILDING THE NEW ” (Socrates)
  13. 13. Peter Beyeler Group Procurement Services 25.03.2014 Global Supplier enablement
  14. 14. Peter Beyeler, Group Procurement Services, 25.03.2014 Employees 2013 18 099Business Areas EBITDA 2013 (CHF m) before exceptionals 14.1% Net result 2013 (CHF m) from continuing operations Sales 2013 (CHF m) from continuing operations A globally leading company in specialty chemicals Public, Corporate Presentation, Clariant at a glance14 Clariant focuses on creating value through innovation and sustainability. 6 076 858 EBITDA margin 2013 before exceptionals 323 4 Corporate Center, Pratteln, Switzerland
  15. 15. Peter Beyeler, Group Procurement Services, 25.03.2014 Clariant world-wide Public, Corporate Presentation, Clariant at a glance15 More than 100 Group companies worldwide Over 200 production sites Represented in over 60 countries
  16. 16. Peter Beyeler, Group Procurement Services, 25.03.2014 Clariant’s products and services are grouped into four Business Areas Natural Resources BA Natural Resources, comprising BUs Oil & Mining Services and Functional Minerals, is characterized by high growth and low cyclicality as well as strong megatrend orientation. Main drivers are the rising demand for high-value added specialty chemicals used in the oil, mining, food and packaging industries, and increased consumption of oil, gas and base metals, driven by the fast-growing economies. Plastics & Coatings BA Plastics & Coatings comprises the BUs Additives, Pigments and Masterbatches. The BA has a large exposure to Europe and, as such, is subject to lower growth and to economic cycles. Main drivers are the increasing use of plastics with tailor-made properties in applications such as mobile phones, cars, construction, as well as the rising consumption of plastics in line with increased wealth. Care Chemicals Business Area (BA) Care Chemicals comprises the Industrial & Consumer Specialties (ICS) Business Unit, food additives as well as the future Industrial Biotechnology business. It demonstrates a clear focus on highly attractive, high margin, and low cyclicality segments. The BA follows a lifestyle-driven megatrend and strengthens Clariant’s image of being a supplier of green and sustainable products. Catalysis & Energy Business Area Catalysis & Energy develops, manufactures, and sells a wide range of catalyst products for the chemical, fuel and automotive industries, as well as producing materials for electric vehicles and energy storage systems. The BA is the smallest within Clariant but is highly profitable with high growth rates and low cyclicality.
  17. 17. Peter Beyeler, Group Procurement Services, 25.03.2014 17 P2P Supplier enablement benefits  Reduce process costs  Improve purchase to pay cycle times (efficiency & effectiveness)  Reduce material and service cost e.g. streamlining  Reduce CO2 and paper usage – carbon footprint  Modern purchasing tool – state of the art  Reduction of complexity  Increase transparency and spend under control  Globally used tool fully integrated  Compliance improvement  Functional excellence
  18. 18. Peter Beyeler, Group Procurement Services, 25.03.2014 P2P system integration @ Clariant An SAP Company MM FI SRM eProcurement SRM PO 300.. Call Off & Standard MM PO450.. Collaboration , Integration, Transparency, Network EDI HTML cXML CSV Business Rule Check entity PO Comp liance Invoic e # Supplier
  19. 19. Peter Beyeler, Group Procurement Services, 06.02.2014 Implementation Strategy | Data Analysis 19 Possible Suppliers to be on boarded Supplier Supplier Supplier Wave 1 >1000 Transactions >10 Mio. CHF Invoiced Value Wave 2 >300 Transactions <10 Mio. CHF Invoiced Value Wave 3 >100 Transactions >1 Mio. CHF Invoiced Value Indirect Spend Suppliers 1. Materials 2. Services Direct Spend Suppliers 1. Chemicals 2. Services Logistics Suppliers
  20. 20. Peter Beyeler, Group Procurement Services, 06.02.2014 Implementation Strategy | Onboarding 20 Possible Suppliers to be on boarded Suppli er Suppli er Suppli er Invoice Data Analysis Flight Plan 1st Supplier Contact Initial Wave Start Ariba to contact Suppliers Testing / Go Live Flight Plan creation based on Invoice analysis and Ariba Network information Procurement to contact Suppliers with initial Information and Contact collection Supplier Manager to contact suppliers to introduce the eInvoice strategy Ariba to contact suppliers for Network Training PO Flip Go Live CSV and XML Tests and Go Live
  21. 21. Peter Beyeler, Group Procurement Services, 06.02.2014 Lessons Learned Public, Global eProcurement @ Clariant21 Top Management Support! Clear statement to suppliers what the corporate strategy is Relation and cooperation Procurement and AP Clear Organization & Responsibilities Analyze and align processes and technical environment
  22. 22. Peter Beyeler, Group Procurement Services, 06.02.2014 22

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