Automate all Spend and Collaborate with all Suppliers

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  • Dan/John do introduction pass to James on slide 4 or 5 for brainstorming and wrap up.
  • This sense of urgency was also shared by delegates at a recent KPMG event in Hong Kong, where KPMG shared results of recent research, most notably, the process challenges CFO’s have regarding compliance and tax. Complying with global tax regulations like VAT tax in Europe, is very difficult and mistakes can be very costly. And the business process challenges highlighted point to an increasing need to connect their procure-to-pay functions with their suppliers order-to-cash functions. Both processes focus on cost take out and improved cash flow control.
  • So we have a collaboration imperative that is key for both process cost containment, cash flow control, as well as growth. In fact, a recent McKinsey study revealed that organizations using collaborative technology to connect internal efforts to customers, suppliers, and trading partners are 50% more likely to lead their market segments and achieve higher margins. These networked enterprises are enjoying a competitive advantage through inter-enterprise collaboration while those organizations relying on internal process automation alone are falling behind.  Let me share a few quick examples… 
  • OK. So we had three key take aways for today’s eLearning session:Remember that the CFO and finance organizations are inundated with proposals for improving their business. So it’s essential to quickly establish a sense of urgency with your finance contacts.We’ll look at three collaboration imperatives for finance: cash flow, productivity, and supply chain risk mitigationWe’ll learn how to map Ariba solutions to these imperatives for financeResearch tells us that Companies must become more closely linked in a volatile business environment because of supply chain disruptions (i.e. Japan) , financially weak trading partners and changing market demand all of which require immediate responses to questions like: Q: where are revenues coming from, and when can i expect them? Q: how can I spot problems that will affect my cash position? Q: How can I reduce the chance of cash flow problems occurring in the first place? Q: how long before cash goes out or comes in? Q: Am i paying too quickly? Am I paying too slowly? What can I do to optimize working capital? And of course as managing cash performance gains greater scrutiny, how is my performance perceived by investors and Wall Street?
  • [walk through samples quickly]So how does your organization measure up?To help answer this, our guest speaker, Kurt Albertson,a senior advisor in The Hackett Group’s Procurement practice where he advises executives on strategic business decisions and promotes thought leadership through research and speaking on topics in the Procure-to-Pay and broader Supply Chain space, will provide the latest benchmarks across the procure-to-pay function to help your organization establish a business case for procure-to-pay automation and working capital optimization.
  • Automate all Spend and Collaborate with all Suppliers

    1. 1. Automate All Spend and Collaborate with All SuppliersCollaborative Commerce and e-Invoicing<br />Ariba Commerce Summit<br />James Tucker<br />Director Product Marketing<br />Ariba Network & Finance Solutions<br />(650) 390-1702<br />jtucker@ariba.com<br />Dan Ashton<br />Sr. Solutions Marketing Manager<br />Cloud Commerce Solutions<br />(650) 390-1732<br />dashton@ariba.com<br />
    2. 2. What to Expect… <br />Combining Collaboration and e-Invoicing sessions<br />Participation is key<br />Business issues<br />How addressed them<br />Success, metrics and best-practices<br />Break<br />Ariba, Inc. 2011 All rights reserved. <br />2<br />
    3. 3. A Sense of Urgency Connectivity and collaborative with trading partners<br />© 2011 Ariba, Inc. All rights reserved. <br />PROCESS CHALLENGES<br /><ul><li>Risk Management (e.g. compliance and tax)
    4. 4. Procure-to-Pay
    5. 5. Order-to-Cash</li></ul>BARRIERS TO SUCCESS<br /><ul><li>Systems out-of-date, inflexible
    6. 6. Limited time and resources
    7. 7. Unclear business benefits</li></ul>“We see companies shifting a whole range of business functions to the cloud.”<br />Edge Zarrella<br />Performance & Technology Partner, KPMG<br />
    8. 8. BrainstormingParticipation key to success<br />Issues preventing you from getting more commerce under management?<br />Solutions to business challenges?<br />Best-practices and benchmarks?<br />Ariba, Inc. 2011 All rights reserved. <br />4<br />
    9. 9. The Network Key to Enabling Cloud CollaborationMany-to-Many Connections of Buyers to all Suppliers<br />© 2011 Ariba, Inc. All rights reserved. <br />Network<br />Adapter<br />Buyer Portal<br />BUYERS<br /> SUPPLIERS<br />Supplier Portal<br />Finance<br /><ul><li>Administration
    10. 10. Catalog Management
    11. 11. Order Management
    12. 12. Invoice & Payment Management
    13. 13. Reporting & Analytics
    14. 14. Administration
    15. 15. Supplier Enablement
    16. 16. Catalogs
    17. 17. Discounts
    18. 18. Reporting & Analytics</li></ul>Procurement<br />Back Office Systems<br />Direct<br />EDI <br />HTML, PO-Flip® <br />PO Automation<br />Indirect<br />Invoice Automation<br />CSV<br />NETWORK®<br />Buyer<br />Payment Automation<br />Complex<br />Paper / Fax<br /><ul><li>700K+ Trading Partners
    19. 19. $193B+ annual Spend
    20. 20. 40M+ annual PO’s & Invoices
    21. 21. Expanding value-add services</li></ul>AP<br />IT<br />
    22. 22. Benefits of 2-Sided Business NetworkCollaborative Business Commerce Added Value for Buyers and Sellers<br /> Supplier Benefits<br /><ul><li>Improved visibility and control from self-service supplier portal
    23. 23. Reduced order-to-cash cycle
    24. 24. Eliminate exception with smart invoicing
    25. 25. Increased revenue from new customer discovery
    26. 26. Broad value proposition drives 90%+ renewal rate</li></ul>Buyer Benefits<br /><ul><li>70% process cost savings
    27. 27. $2M discount savings on every Billion in spend
    28. 28. $9M in contract leakage savings per Billion in spend
    29. 29. $3M in working capital impact per Billion in spend
    30. 30. Rapid success from buyer/supplier matching
    31. 31. Single connection to existing back office systems</li></ul>6<br />© 2011 Ariba, Inc. All rights reserved. <br />
    32. 32. The Collaboration ImperativeThe Rise of the Networked Enterprise<br />© 2011 Ariba, Inc. All rights reserved. <br />The Networked Enterprise <br />One that uses collaborative technology to connect internal employee efforts to customers, suppliers, and partners. <br />Suppliers<br />50% more likely to:<br /><ul><li>Be a Market Leader
    33. 33. Gain Market Share
    34. 34. Achieve Higher Margins
    35. 35. Increase sales</li></ul>Customers<br />Partners<br />Source: “The Rise of the Networked Enterprise”, December 2010, McKinsey<br />Jacques Bughin and Michael Chui<br />
    36. 36. Q&A<br />www.ariba.com/programs/invoicenow<br />© 2011 Ariba, Inc. All rights reserved. <br />Best-Practice Webinar Series <br /><ul><li>Free Business Case Assessment
    37. 37. Transaction and ramp assessment
    38. 38. Savings estimate
    39. 39. Business case and ROI
    40. 40. Nov 15th– Invoicing Insights
    41. 41. Nov 16th– Solution Demo</li></ul>James Tucker<br />Director Product Marketing<br />Ariba Network & Finance Solutions.<br />(650) 390-1702<br />jtucker@ariba.com<br />Dan Ashton<br />Sr. Solutions Marketing Manager<br />Cloud Commerce Solutions<br />(650) 390-1732<br />dashton@ariba.com<br />Ariba Collaborative Commerce Whitepaper<br />http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=829<br />PayStream Advisors E-invoicing Adoption Benchmarking White Paper<br />http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=819<br /><ul><li>The New Deals: Why Companies Deepening Alliances in Post-Recession Economy White Paper – CFO Research
    42. 42. http://www.ariba.com/resourcelibrary/views/microsites.cfm?asset_id=811</li></li></ul><li>9<br />© 2011 Ariba, Inc. All rights reserved. <br />
    43. 43. Success of Networked Enterprises<br />© 2011 Ariba, Inc. All rights reserved. <br />EQUIPMENT MANUFACTURER<br />GLOBAL INVESTMENT BANK<br />Before<br />After<br />Before<br />After<br /><ul><li>Huge A/P staff for manual P2P processing
    44. 44. Large volume of non PO invoices
    45. 45. Lack of global spend visibility
    46. 46. Risk over ability to conform to VAT requirements
    47. 47. Lost discounts
    48. 48. 75% reduction in A/P headcount
    49. 49. 90% global spend Networked
    50. 50. Improved price, vendor, and VAT compliance
    51. 51. Capturing prenegotiated discounts
    52. 52. Reduced vendor management costs
    53. 53. Enabled 4K suppliers onto Network
    54. 54. Reduced BPO costs by 35%
    55. 55. Now processing ~ 500k invoices/year electronically
    56. 56. Went from 100% paper to nearly 60% e-invoicing with goal of 80% electronic
    57. 57. Drive 70% of invoice transactions off POs
    58. 58. High cost of paper-based, manual invoice processing
    59. 59. Difficulty in managing orders generated by SAP
    60. 60. Interest in improving system ease-of-use</li></ul>WATER TREATMENT<br />HOUSEHOLD PRODUCTS<br />Before<br />After<br />Before<br />After<br /><ul><li>Lack of visibility into orders and invoices
    61. 61. 5% lost POs
    62. 62. 7 FTEs just to track orders
    63. 63. Order/Invoice process delays revenue
    64. 64. Invoice exceptions cause raw materials or equipment delays
    65. 65. Reduced Days Sales Outstanding (DSO) by 5 days
    66. 66. Improved PO and contract matching to invoice
    67. 67. Redeployed 6 employees
    68. 68. Eliminated vendor credit holds since all POs and invoices now visible and managed
    69. 69. Expanding solution deployment to Europe
    70. 70. 970 supplier relationships established in < 1 year
    71. 71. Handling 12K POs and 15K invoices per month
    72. 72. Self-service Supplier Portal reduces costs
    73. 73. PO-Flip® option virtually eliminating invoice exceptions
    74. 74. 99% straight-through processing
    75. 75. “much better option than build solution ourselves in SAP”
    76. 76. Paper invoice costs too high
    77. 77. Unable to deliver and monitor PO’s through SAP
    78. 78. Too many missed discounts due to long invoice process times
    79. 79. Poor on-time payment statistics
    80. 80. Need one global system</li></li></ul><li>BREAK<br />** Ariba Confidential© 2011 Ariba, Inc. All rights reserved. <br />11<br />

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