CC                                          Five Steps to Better                                          Trading Partner ...
Inefficiencies Between Companies    Hinder Results      Sellers                                                     “The W...
Collaborative Business Commerce     Addresses These Challenges                                                            ...
Collaborative Business Commerce    Provides Value to Sellers and Buyers                                 Seller Value      ...
Ariba Can Help Your Collaborative    Business Commerce Evolution                                                          ...
Introductions    •    Cindy Fox                  Process Development and Support    •    Anna LaBelle                  VP,...
Objectives    •   Share the goals for Electronic Invoicing and        Ordering (EIO)    •   Discuss supplier collaboration...
Kimberly-Clark
A Global Health and Hygiene Leader•   56,000-plus employees worldwide•   $2.1 Billion in Net Sales in 2011                ...
Our Business Commerce Vision     •       Enable round-trip electronic procure-to-pay process with suppliers               ...
Our Business Commerce Vision: Why     Electronic Invoicing and Ordering?     •       Challenge:                       Manu...
The Tools                                                                                  Suppliers                      ...
Kimberly-Clark     Current State     •       700 suppliers transacting today                       Over 600 transacting su...
Our Experiences •   What Has Worked Well                      •   Lessons Learned             Having Standard PO          ...
The Team     • Design Phase                       IT (only for system implementation)                       Business teams...
Our Business Commerce ManagementEvolution and Roadmap                                                                     ...
The Benefits of Vendor     Collaboration     •       Reduce Process Costs                       Aligns the supplier with K...
Introductions     •    Cindy Fox                   Process Development and Support     •    Anna LaBelle                  ...
Staples     •       World’s largest office supply company and trusted source for             office solutions     •       ...
eCommerce at Staples     •   Engaged in eCommerce for 12+ years     •   Collaborative commerce evolution began with a     ...
Top Objectives for Collaborating –     the Seller’s Perspective     •       Customer satisfaction                      Thr...
Our Business Commerce     Management Evolution                                                                            ...
Staples and Ariba     Current State     •   159 customers on Ariba today                   65% engaged in invoicing and or...
Our Experiences: PunchOut vs.     Catalogs     PunchOut                                   Hosted Files     + On-line retur...
Introductions     •    Cindy Fox                   Process Development and Support     •    Anna LaBelle                  ...
Objectives     •   Share the goals of customer collaboration     •   Provide insights into the seller’s perspective     • ...
Overview of Lawson Products, Inc.     •   Lawson Products, Inc. founded in 1952     •   Headquartered in Des Plaines, IL  ...
Why Collaborate? A Seller’s     Perspective      • Customer compliance      •       Win new customers      •       Source ...
Our Business Commerce     Management Evolution                                                                            ...
Collaboration at Lawson Products     Today     Dedicated E-Procurement Website     •    Supporting Business Tools and Proc...
Our eCommerce Organization     •   Primary contact is a member of the E-Commerce Team                   Project Manager – ...
Our Experiences: Catalogs     What Has Worked Well                          Lessons Learned     •       Single point of co...
Our Experiences: Trading Partner     Onboarding Best Practices     •   Supplier                               •   Customer...
Lawson Products – Results•    Over the last five years            Sales have increased by 359%            Relationships ha...
Thank you!35   © 2012 Ariba, Inc. All rights reserved.
Share This Session…NOW…from     your mobile!     •   All presentations are posted:                   Guidebook mobile app ...
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Five Steps to Better Trading Partner Collbaoration

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  • Suppliers want things to change. They want to connect to their customers electronically. And why do suppliers want change – well first, consider what motivates suppliers. Suppliers have many goals – depending on whether you are talking with someone in sales and marketing, or in operations who fulfills customer purchase orders, or if you are talking with someone in accounts receivable and treasury who wants to manage cash more effectively. They are working with various stakeholders on the buy side across sourcing, procurement and invoicing process, and they struggle with a white space between enterprises – it’s a space where documents get lost – important documents like contracts and invoices. Or where it is challenging to get leads or just to get noticed by prospective customers. Suppliers are looking for a more effective way to work with their customers.
  • Five Steps to Better Trading Partner Collbaoration

    1. 1. CC Five Steps to Better Trading Partner Collaboration A panel of thought leaders – representing buy-side and sell-side© 2012 Ariba, Inc. All rights reserved.
    2. 2. Inefficiencies Between Companies Hinder Results Sellers “The White Space” Buyers Finding Qualifying leads customers Sales / Responding to Sourcing Marketing RFI’s Negotiating Getting orders Publishing Operations / catalogs Procurement Fulfillment Acknowledging orders Getting order cancellations Submitting Managing invoices Accounts Accounts Receivable / errors Getting Payable / Treasury Finance Getting paid payment status 80% of transactions completed manually – costing $650 Billion Source: Celent Communications, Basex Research- “Information Overload”2 © 2012 Ariba, Inc. All rights reserved.
    3. 3. Collaborative Business Commerce Addresses These Challenges SELLER: MARKET-TO-CASH Market Bid Sell Contract Fulfill Invoice Collect E-Marketing Online Business Better Automated Greater Early payment and exposure negotiating opportunities compliance collaboration visibility opportunities Identify Source Select Contract Procure Receipts Pay BUYER: DISCOVER-TO-PAY3 © 2012 Ariba, Inc. All rights reserved.
    4. 4. Collaborative Business Commerce Provides Value to Sellers and Buyers Seller Value Buyer Value Faster AR Processing Sales Total Increased Sourcing Req Invoice Compliance WCM & Total Payment Process Orders & Savings Revenues to Process Discount Savings Mktg PO 15-20% 60-75% 5-32% 3-9% $3-20 1-8% Improvement Process Revenue Process Savings/ Spend Savings Increase Savings Document Savings Increased visibility across the entire value chain4 © 2012 Ariba, Inc. All rights reserved.
    5. 5. Ariba Can Help Your Collaborative Business Commerce Evolution Innovating Collaboration as a strategic Collaborative Commerce Extending mandate Business Value Establishing repeatable Growing processes while expanding the footprint across Expanding into geographies, Exploring additional processes, process and/or business units, Just getting segments of trading partners started trading partners Enablement Transformation5 © 2012 Ariba, Inc. All rights reserved. Phases of Buyer and/or Seller Evolution
    6. 6. Introductions • Cindy Fox Process Development and Support • Anna LaBelle VP, Customer Service and eProcurement • Jamie Banks Director, Customer Support Systems and eProcurement • Salim Lakha E-Procurement Manager6 © 2012 Ariba, Inc. All rights reserved.
    7. 7. Objectives • Share the goals for Electronic Invoicing and Ordering (EIO) • Discuss supplier collaboration and its fit • Guiding principals • Keys to success7 © 2012 Ariba, Inc. All rights reserved.
    8. 8. Kimberly-Clark
    9. 9. A Global Health and Hygiene Leader• 56,000-plus employees worldwide• $2.1 Billion in Net Sales in 2011 ® ® ®• Well-known global brands HUGGIES KLEENEX SCOTT ® KOTEX ® ® PULL-UPS DEPEND• #1 or #2 position in more than 80 countries• 1.3 billion consumers use our products daily9 © 2012 Ariba, Inc. All rights reserved.
    10. 10. Our Business Commerce Vision • Enable round-trip electronic procure-to-pay process with suppliers Establish electronic transmittal of purchase orders, changes, and acknowledgements to and from K-C vendors • Establish electronic invoicing with vendors and pass the invoices to K-Cs back-end system for direct entry and workflow Automated validation of invoice Verification of invoices against PO Supplier self-service • Project launched late 200910 © 2012 Ariba, Inc. All rights reserved.
    11. 11. Our Business Commerce Vision: Why Electronic Invoicing and Ordering? • Challenge: Manual paper-based PO and invoice process – Extensive mailroom/data entry resource requirements Invoice errors and rework No easy way to administer EDI process • Approach: Strong alignment between Procurement and Accounts Payable to drive process improvement Ariba Network for PO delivery, invoice automation Standardized Ariba Supplier Enablement approach Original Project: Three Enablement Phases totally approximately 1,000 suppliers Project had 70% Conversion Rate for enabling suppliers Original goal: 60% Electronic Invoicing now expanded to 80% by end of 201311 © 2012 Ariba, Inc. All rights reserved.
    12. 12. The Tools Suppliers Ariba Network Purchase Orders Portal Supplier Order Confirmations Change Orders EDI Supplier eInvoices Invoice and Pay Status cXML Kimberly Supplier Clark SAP Flow of Information12 © 2012 Ariba, Inc. All rights reserved.
    13. 13. Kimberly-Clark Current State • 700 suppliers transacting today Over 600 transacting suppliers in less than a year Over 200 in current enablement initiative • Purchase Orders and Changes 13,000 POs per month (email, fax, EDI, cXML and online) Service (i.e. Blanket) and Material (i.e. standard) PO Acknowledgements and Advanced Shipment Notices • Invoicing 20,000 invoices per month (EDI, cXML, CSV and PO-Flip) 95% straight-through invoice processing via Ariba Network PO-Flip automatically validates invoice on front-end, virtually eliminating invoice errors EDI and cXML feeds for high-volume suppliers to consolidate invoice processing via Ariba Network13 © 2012 Ariba, Inc. All rights reserved.
    14. 14. Our Experiences • What Has Worked Well • Lessons Learned Having Standard PO Mid to higher volume (material) and Blanket PO suppliers more accepting (service) has allowed us Integrated suppliers can flexibility with our business take one to three months configuration to enable Collaboration between Internal buyer involvement Procurement and is key. They have the Accounts Payable relationship with suppliers Suppliers already Suppliers need access to on network up to date training material14 © 2012 Ariba, Inc. All rights reserved.
    15. 15. The Team • Design Phase IT (only for system implementation) Business teams were responsible for design of system and supplier enablement – Procurement » 1 Lead » 1 FTE – Accounts Payable » 1 Lead » 3 FTE • Ongoing – Supplier Enablement and Day-to-Day Support Procurement – 1 Lead (20%) – 1 FTE – Internal Buyer as needed for supplier pushback Accounts Payable – 1 Lead (20%) – 2.5 FTE15 © 2012 Ariba, Inc. All rights reserved.
    16. 16. Our Business Commerce ManagementEvolution and Roadmap Innovating • Strategic approach to new Collaborative Commerce opportunities Extending • P2P Council Business Value • Internal evaluating new transformation opportunities reflecting globally (e.g., Growing lessons learned dynamic • Move to majority • Internal buyer discounting, of electronic training and invoice receipt orders knowledge date) Exploring • Develop suite of transfer • Invoices and options (paper, orders (many P-Card, EDI, manual) Ariba) • A few EDI suppliers • Move to Ariba Enablement Transformation16 © 2012 Ariba, Inc. All rights reserved. Phases of Kimberly Clark’s Evolution
    17. 17. The Benefits of Vendor Collaboration • Reduce Process Costs Aligns the supplier with Kimberly-Clark’s standard document transmission to drive down the cost of doing business together. Transmit purchase orders and related documents to vendors electronically More options for supplier to select from in terms of how to receive and/or send documents using the Ariba Network and integration with their systems. Reduce costs and time of handling paper invoices – Eliminates 8-12 days of processing time, including mail time, for a mailed invoice Reduce the amount of problem solving time (caused by vendor or A/P errors) required by various groups to pay invoices Reduce the amount of inquiry and statement work from vendors – Online access through a web portal to allows visibility into the status of invoice17 © 2012 Ariba, Inc. All rights reserved.
    18. 18. Introductions • Cindy Fox Process Development and Support • Anna LaBelle VP, Customer Service and eProcurement • Jamie Banks Director, Customer Support Systems and eProcurement • Salim Lakha E-Procurement Manager18 © 2012 Ariba, Inc. All rights reserved.
    19. 19. Staples • World’s largest office supply company and trusted source for office solutions • We provide products, services and expertise in the categories of office supplies, technology, furniture, Copy & Print, and cleaning and breakroom • Founded in 1986 • Annual sales of $25 billion • Rank 2nd in the world in eCommerce sales • 90,000 associates • 26 countries19 © 2012 Ariba, Inc. All rights reserved.
    20. 20. eCommerce at Staples • Engaged in eCommerce for 12+ years • Collaborative commerce evolution began with a customer request • Approach is to be proactive, stay ahead of the curve and be the supplier that customers look to for piloting eProcurement programs • Offer multiple solutions to buyers C2B customers order on Staples.com Contract customers order on private website20 © 2012 Ariba, Inc. All rights reserved.
    21. 21. Top Objectives for Collaborating – the Seller’s Perspective • Customer satisfaction Through compliance to eProcurement and eInvoicing initiatives Awarded J.D. Power and Associates certification for 8 consecutive years • Increase efficiency and eliminate costs for us and for our customers Automation of transactions – today 94+% of all order line volume is conducted electronically Eliminate manual handling of as many transactions as possible Provide round-trip order receipt, order confirmation, invoicing to customers • Increased order accuracy Electronic orders ensure compliance and accuracy in pricing, specifications, etc. • Going green Staples is saving costs by reducing paper catalogs while offering an environmentally–friendly alternative21 © 2012 Ariba, Inc. All rights reserved.
    22. 22. Our Business Commerce Management Evolution Innovating • Global adoption of eInvoicing Collaborative Commerce • eCommerce Extending implementation Business Value • Adoption of in 30 days or less eInvoicing • Drive to Growing PunchOut vs. • Move to majority hosted files of electronic • Eliminate most orders manual Exploring • Integrate transactions • Initial customer eCommerce Web request 12+ storefront to years ago Ariba Network through PunchOut Enablement Transformation22 © 2012 Ariba, Inc. All rights reserved.
    23. 23. Staples and Ariba Current State • 159 customers on Ariba today 65% engaged in invoicing and orders • Implementation in 30 days or less • 94%+ rate of electronic and program compliance23 © 2012 Ariba, Inc. All rights reserved.
    24. 24. Our Experiences: PunchOut vs. Catalogs PunchOut Hosted Files + On-line returns - Increased invoicing issues + Order status - No customized items + Order history - No order management + Personal shopping lists + World class search engine - Costly + Real-time price and product availability + No catalog maintenance + No on-going catalog creation costs24 © 2012 Ariba, Inc. All rights reserved.
    25. 25. Introductions • Cindy Fox Process Development and Support • Anna LaBelle VP, Customer Service and eProcurement • Jamie Banks Director, Customer Support Systems and eProcurement • Salim Lakha E-Procurement Manager25 © 2012 Ariba, Inc. All rights reserved.
    26. 26. Objectives • Share the goals of customer collaboration • Provide insights into the seller’s perspective • Share Lawson’s collaborative commerce evolution • Best practices - what makes buyer-supplier collaboration work more effectively26 © 2012 Ariba, Inc. All rights reserved.
    27. 27. Overview of Lawson Products, Inc. • Lawson Products, Inc. founded in 1952 • Headquartered in Des Plaines, IL • 2010 Sales of $316.8 million • Publicly traded company listed on the NASDAQ stock exchange (LAWS) • Offering over 100,000 standard products • Serving over 160,000 customers in the industrial, commercial, institutional and government markets • Shipping 99% of all lines complete within 24 hours from several strategically located distribution centers in North America • Over 1,300 sales representatives throughout North America • ISO 9000 Registered Company • GSA Contract Holder: Schedule Contract GS-06F-0027L • Distinctions: Listed among Industrial Distribution magazine’s “Big 50” distribution companies Listed among the Selling Power® “25 Best Service Companies to Sell For”27 © 2012 Ariba, Inc. All rights reserved.
    28. 28. Why Collaborate? A Seller’s Perspective • Customer compliance • Win new customers • Source of information for customers • Automation • Levels the playing field28 © 2012 Ariba, Inc. All rights reserved.
    29. 29. Our Business Commerce Management Evolution Innovating • Edit / Inspect / Quote Collaborative Commerce • Level 2 PunchOut Extending • cXML Order Business Value • Adoption of Processing eInvoicing • cXML Invoices • Adoption of Growing PunchOut Level • Move to majority II of electronic • Ariba Ready orders Certification Exploring • Integrate • Initial customer eCommerce Web request 10+ storefront to years ago Ariba Network through PunchOut Enablement Transformation29 © 2012 Ariba, Inc. All rights reserved. Phases of Lawson Products’ Evolution
    30. 30. Collaboration at Lawson Products Today Dedicated E-Procurement Website • Supporting Business Tools and Processes • Integration into sales ordering system - eVMI Standards-Based Technology • Fast integration • PunchOut Level II and RoundTrip • Turn-key style implementation Training and Support • “Ariba Ready” Certification (six consecutive years) • Field Sales and Customer training • Dedicated support team • Customer Feedback Process30 © 2010 Ariba, Inc. All rights reserved.
    31. 31. Our eCommerce Organization • Primary contact is a member of the E-Commerce Team Project Manager – Asses the request and timeline Participates in conference calls and is single point of contact • Level 1 Support is provided by our Web Customer Care via toll free support Support provided to both internal / external clients post production31 © 2012 Ariba, Inc. All rights reserved.
    32. 32. Our Experiences: Catalogs What Has Worked Well Lessons Learned • Single point of contact • Getting engaged during from customer sales cycle (to avoid • Collaboration before, during surprises) and after the project • Cover all scenarios • Using PunchOut over CIF (even those you think whenever possible that won’t happen) • Buyer mandate to use solution32 © 2012 Ariba, Inc. All rights reserved.
    33. 33. Our Experiences: Trading Partner Onboarding Best Practices • Supplier • Customer Standards-based approach Work with “Ariba Ready” Use business tools to on Suppliers board customers Engage suppliers in Provide training for both internal rollouts buyers and sales reps Mandate use of Feedback from customer authorized vendors to for continuous improvement drive compliance33 © 2012 Ariba, Inc. All rights reserved.
    34. 34. Lawson Products – Results• Over the last five years Sales have increased by 359% Relationships have increased by 62% E-Invoicing has increased from 10% to 50% 95% PunchOut catalogs (all marketplaces) are still live34 © 2012 Ariba, Inc. All rights reserved.
    35. 35. Thank you!35 © 2012 Ariba, Inc. All rights reserved.
    36. 36. Share This Session…NOW…from your mobile! • All presentations are posted: Guidebook mobile app – Search Apple or Android app store for Guidebook – Enter code “collabor8” Or at Slideshare.net/Ariba • Share via email or social media **Come back soon – we are syncing #AribaLIVE audio and video interviews to the presentations**36 © 2012 Ariba, Inc. All rights reserved.

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