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Driving P2P Excellence at Monsanto by Integrating Ariba with SAP

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Bringing Ariba into the SAP family was a strategic move to accelerate SAP's Cloud business, allowing SAP customers to quickly and easily integrate with the Ariba Network, and offering quickly …

Bringing Ariba into the SAP family was a strategic move to accelerate SAP's Cloud business, allowing SAP customers to quickly and easily integrate with the Ariba Network, and offering quickly deployable spend management solutions for Procurement organizations around the globe.

Join this session to hear how the team at Monsanto rapidly implemented the Ariba P2P solution, including integration with SAP ERP and the Ariba Network, in order to gain maximum compliance and efficiency, and accelerate their journey to procurement excellence.

Published in: Business, Technology

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  • This builds the framework and structure for an efficient and effective P2P process. Actual value obtained depends upon regional adoption and execution
  • Transcript

    • 1. Taking eProcurement to the Next Level at Monsanto – the Power of Networked Collaboration and Integrated Processes Carlos Guzmán Global Strategic Sourcing & Procurement Operations Lead Monsanto March 18, 2014 #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
    • 2. At A Glance Products: Procurement: • • • • • • Agricultural and vegetable seeds Plant biotechnology traits Crop protection chemicals Globally: • • • • FY 2013 Sales $14.9 Billion USD 21,183 employees 404 facilities in 66 countries HQ – St. Louis, MO FY 2013 Spend ~$7 Billion USD ~ 325 employees Global function, regional execution ♦ ♦ ♦ ♦ ♦ ♦ ♦ 2 © 2014 Ariba – an SAP company. All rights reserved. North America Latin America North Latin America South Brazil EMEA India Asia Pacific
    • 3. Focused on improving…. Compliance  Working Capital Eliminate the number of audit findings related to procurement & suppliers globally.  Increase cash flow through supplier payment terms standardization and management and the potential of dynamic discounting. Policy compliance Pmt Terms Zero Major Findings Dynamic Discounting Efficiency  Increase procurement operations productivity by 30%. Providing flexibility to align resources to effectively support business growth. Strategic Sourcing  30% Productivity Increase Increase Cash Flow Improved spend management through efficient tools will enable faster identification and implementation of savings helping Monsanto manage costs.
    • 4. Why Ariba? • • Global scale and experience Comprehensive suite of modules Spend, Sourcing, Contracts, P2P, SIPM, etc. • • • 4 Supplier network Best potential for full automation An SAP Company © 2014 Ariba – an SAP company. All rights reserved.
    • 5. Initial Implementation Scope • Sourcing Professional Global roll out to 6 regions Over 150 team members to train • P2P Roll out to 4 global regions 13 supplier catalogs 4 different languages Over 400 requisitioners to train 5 © 2014 Ariba – an SAP company. All rights reserved. And the Challenge was: Go Live in 15 weeks!!!
    • 6. We met the challenge by…… • • Identifying a cross-functional team – IT, Procurement and Ariba Cross-functional commitment and accountability All team members signed a contract • Clearly defining all steps by week and ownership Ariba’s out of the box project plans were exceptional! • • 6 Delivering on milestones Comprehensive, but simple governance © 2014 Ariba – an SAP company. All rights reserved.
    • 7. Governance Global GoPro Team Executive Sponsors Core Team Members Steering Team Global North America Latin America North Latin America South Brazil EMEA India Asia Pacific Core Team Expectations • Develops and implements global strategy • Establishes connectivity across regions and mechanism for sharing of best practices • Collaborates and engages with category management and strategic sourcing teams • Escalates business imperatives, validations, decisions, and outcomes • Represents, champions and executes global strategy within own region • Maintains and responds to performance measurements Steering Team Expectations • Assures Global Operations Strategy is active and effective • Serves as initial leadership point of contact for escalation issues • Engaged in relationship building with key stakeholders and suppliers
    • 8. Outcome • We went live as planned!!! What made a difference? • • • • • 8 Cross-functional commitment and accountability Ariba’s rapid deployment plan and expertise Leadership support Cross-functional commitment and accountability Cross-functional commitment and accountability © 2014 Ariba – an SAP company. All rights reserved.
    • 9. Technical Interfaces • We have 1 single instance of SAP deployed globally All transactions flow through SAP as the system of record (requisition through payment) • Interfaces consist of 18 Master Data & 6 Transactional ITK first then move to Web Services soon after. • Bulk of the work was carried out by remote resources – needed few face-to-face meetings to get over some humps. On-site Ariba Project Manager through the initial implementation • Pre-packaged interfaces only get you so far….Plan for customization of ITK. Interfaces can be complex depending on each environment; having the right knowledgeable resources are critical to success 9 © 2014 Ariba – an SAP company. All rights reserved.
    • 10. Supplier Network Strategy • • Scope: All indirect and non-inventory spend Process: Utilizing Ariba Spend Visibility to help identify the right suppliers Spend > $100k USD; Transaction count >100 annually Will yield approx ~$1 billion in spend through the network NA LAS South Africa LAN Global Connectivity/ Governance Regional Execution APAC Brazil India 10 © 2014 Ariba – an SAP company. All rights reserved. EMEA