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#AribaLIVE
Getting on the Same Page: A Discussion
on Catalogue Strategies
Alexander Graff, Head of Product Management, Sch...
Catalog Options on Ariba
• No catalog
Non-catalog purchase orders
• Hosted catalog
Catalog Interchange Format (CIF)
• Punc...
GETTING ON THE SAME PAGE: A DISCUSSION
ON CATALOGUE STRATEGIES
Alexander Graff, Head of Product Management, Schweitzer
© 2...
What We Do
Provide companies with catalogue, process and content to
implement the best way to buy and use all external kno...
Facts and Figures about Schweitzer
• Founded in 1868 (pre e-procurement era)
• Since 1972, owned by the C.H. Beck publishe...
What We Deliver to Our Customers
Find. Get. Use. … and kill the iceberg
© 2014 Ariba – an SAP company. All rights reserved...
Buyers and Sellers:
What Do They Want?
© 2014 Ariba – an SAP company. All rights reserved.8
• And e-Procurement
software p...
Why Sellers Love PunchOut
• Larger catalogues (up to 20.000.000 items)
• Higher update frequency
• Timeliness of updates
•...
Why Sellers Love PunchOut (Secret!)
• Want users to first choose the supplier…
• …and then the item
• Do not want to be co...
Why Buyers Love to Own
the Catalogue
• Stay in control
• Do not want to care about availability
• Reduce user training
• A...
Why Buyers Love to Own… (Secret!)
• Want to compare items among different sources
• Dream of the ―best price‖ cherry picki...
Another Secret:
The ―Long Tail‖ Is a Myth!
• Old mindset: core portfolio + long tail (-process)
• Truth: users do not care...
So? Can They Be Friends?
• Supplier/Commodity specific searches ARE better
• User guidance is a plus (Google-like search l...
Update frequency
So? Can They Be Friends?
© 2014 Ariba – an SAP company. All rights reserved.15
• Less maintenance = faste...
Intelligence and control
• You can only evaluate what you see, so coverage is
a must
• Focus on spend data, rather than ca...
And the Winner Is… Everyone…
• Look at the commodity/product
- specifics
• Ask your supplier, and maybe ask
a second one
•...
One More Way to Go:
Level 2 PunchOut
© 2014 Ariba – an SAP company. All rights reserved.18
It’s an almost perfect compromi...
© 2014 Ariba – an SAP company. All rights reserved.19
GETTING ON THE SAME PAGE: A
DISCUSSION ON CATALOGUE STRATEGIES
Daan Gooskens, E-Procurement Manager for Manutan in the BeN...
Agenda
• Introduction
Daan
Manutan
E-Solutions
• Catalogue Strategy
Struggle
Solutions
Results
© 2014 Ariba – an SAP compa...
Introduction
© 2014 Ariba – an SAP company. All rights reserved.22
Me
• Past in E-Procurement & ERP
• E-Procurement Manager @ Manutan
P2P automation
– Catalogue
– Order
– Invoice
―Develop &...
Manutan – Ambition
© 2014 Ariba – an SAP company. All rights reserved.24
Enterprising for a better world
We believe that b...
Manutan – Presence
© 2014 Ariba – an SAP company. All rights reserved.25
Manutan – Offer
…more than 40,000 products for office, warehouse, workshop and outdoor premises
© 2014 Ariba – an SAP comp...
Manutan – P2P Services
© 2014 Ariba – an SAP company. All rights reserved.27
After a while….
―Being part of the networked ...
Evolution of Catalogue Approach
© 2014 Ariba – an SAP company. All rights reserved.28
The Challenge – ‗Hosted‘ Catalogues
© 2014 Ariba – an SAP company. All rights reserved.29
10 Customers
9 Catalogue formats...
The Solution – PunchOut / Roundtrip
© 2014 Ariba – an SAP company. All rights reserved.30
Always up-to-date
Assortment, pr...
Customer Quotes
“Finally we can buy
Christmas trees @
Christmas”
© 2014 Ariba – an SAP company. All rights reserved.32
“I ...
Threats Tackled
© 2014 Ariba – an SAP company. All rights reserved.33
Same lack of
standardization as in
Catalogue files?
...
Lessons Learned
• Localized webshops & pan-European projects
• High level of standardization, >90% = plug&play
• Communica...
The Results
© 2014 Ariba – an SAP company. All rights reserved.37
Hosted Punchout
Initial setup
Yearly maintenance
% Eproc...
© 2014 Ariba – an SAP company. All rights reserved.38
daan.gooskens@manutan.nl
GETTING ON THE SAME PAGE:
A DISCUSSION ON CATALOGUE STRATEGIES
Byron Wilkinson, Consultant E-Business, Computacenter (UK)
...
Computacenter
…delivers IT services and solutions that enable our customers to achieve their goals
© 2014 Ariba – an SAP c...
Milton Keynes, UK
Barcelona, Spain
Cape Town, South Africa
Kuala Lumpur, Malaysia
Erfurt & Berlin, Germany
Sheffield, UK
H...
E-Business Solutions Are Inextricably
Linked with Our Company Strategy
“Ultimately the Catalogue strategy is about making
...
Spreadsheets and Shopping Carts —
the Usage of Catalogues Evolved
• Various kinds and formats
• Former catalogs didn‘t alw...
A Catalogue Represents Your Company
on the Customer Side
• The more information the better
• Fulfill expectations towards ...
Integrated Catalogues Are a Key Element for
Unlocking e2e eProc Efficiency
submitted via
Internet/opt.
Marketplaces
① Bask...
Integrated Catalogues Are a Key Element for
Unlocking e2e eProc Efficiency
submitted via
Internet/opt.
Marketplaces
① Bask...
Classifications: UNSPSC, eCl@ss,... or customer specific
Our Strategy Is Founded on a Solid Mix of
Standardization and Fle...
Did We Succeed with that Approach?
“We were very impressed with the Connect site that you demo’d to
us and think this will...
What Have Been Our Lessons Learned
• Two main layers (creation & categorization)
• Use industry standards and repeatable s...
Questions
© 2014 Ariba – an SAP company. All rights reserved.51
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Getting on the Same Page: A Discussion on Catalog Strategies

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So what is the best strategy for catalogs? Many buyers wish to own their catalogs while many Seller provide PunchOut™ Level 1 and 2 capabilities.

This Buyer and Seller panel discussion best practices and merits of different catalog strategies from buyer owned CSV files to the different sophistication levels of PunchOut catalog.

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  • Alexander’s current role is the definition and development of new Schweitzer products to meet changes in customer and user behavior. He also acts as the in house e-Procurement expert.Alex has 15+ years of working in eCommerce with 3 years of software development experience, and 10 years of sell-side and 1.5 years of buy-side eCommerce experience.Alex was leading Schweitzers Corporate business for 5 years (mainly e-Procurement-based) and then left to head a technology based procurement services company for 1.5 years. With the buy-side experience gained he now rejoined Schweitzer to support the evolution of the companies products to adjust to the changes in user behavior and demands. His original background is software development
  • Seller and Buyer15+ years of eCommerce experience3+ software, 10 sell side, 1.5 buy side, now back to the sell side
  • companies spend as much on professional information as they spend on office-supplies – sometimes even more …… but they don‘t know how much exactly and what for (newspapers, journals, books, e-books, databases, lincenses, documents, standards, …)with Schweitzer being their one and only source they know – every minutewe handle and manage all subscriptions (about 80% of the costs are reccuring)we even save them 10, 20 sometimes up to 40 % of their spending and up to 80% on process costsour business model: trading, so basically we are a bookseller or like somebody at an SAP meeting once called it: media subscription service provider ….
  • Achim T. OberhauserHead of Corporate Business since 2/2010> 10 years experience in sales and ecommerce
  • Basic online offering. No enhanced content. Generic. (SMB Market)Customers demands. Multiple Bids/requirements for capability. (BAML/Amex/JPMC)Growth (option to grow/need to enable growth). (Value Wales)Maturity of product business / focus on new strategic solution -> services. (JLP)
  • Be compliant with marketplaces. Ariba, ValueWales, PECOSOffer standard online catalogues, direct and punchout. Self registration options, BPCatalogue Feed, Uploads. Some customers only want this. BBCRespond to bids with standard message but with extend of flexibilityOwnership of the catalogues. Will customer use it. Some customers compare online price to previous price or competition NYSEInconsistencies across customer base.Some customers use their own – CarestreamSome resistance customers against punchout, VerizonOnline details.Stock level feeds – vary from distribution channels. Some are hourly, others once a dayCustom portal categorizations. CA, attempt didn’t workCustomers not fully using the catalogue, so education needed. GSKTransparency of pricing, build up of trust. UBSEducation of catalogue management, bring all sides togetherPortfolio of catalogue options, Flat file, PDF/PDF/XML/BMECat. Good for CC GroupWorked with Marketplaces, internal teams, Procserve
  • The effect on invoicing. If the catalogue is not correct, the PO isnt accurate. Leads to late payment, disputes, queries, confrontations etc. Credit Control have additional work to retrieve the money owed
  • Transcript of "Getting on the Same Page: A Discussion on Catalog Strategies"

    1. 1. #AribaLIVE Getting on the Same Page: A Discussion on Catalogue Strategies Alexander Graff, Head of Product Management, Schweitzer Fachinformationen Daan Gooskens, E-Procurement Manager for Manutan in the BeNeLux Byron Wilkinson, E-Business Development Consultant, Computacenter (UK) Ltd Christian Traud, Business Services Director, Computacenter (UK) Ltd © 2014 Ariba – an SAP company. All rights reserved. @ariba
    2. 2. Catalog Options on Ariba • No catalog Non-catalog purchase orders • Hosted catalog Catalog Interchange Format (CIF) • PunchOut catalog cXML integration to your e-commerce site 2 © 2014 Ariba – an SAP company. All rights reserved.
    3. 3. GETTING ON THE SAME PAGE: A DISCUSSION ON CATALOGUE STRATEGIES Alexander Graff, Head of Product Management, Schweitzer © 2014 Ariba – an SAP company. All rights reserved.3
    4. 4. What We Do Provide companies with catalogue, process and content to implement the best way to buy and use all external knowledge (professional information) © 2014 Ariba – an SAP company. All rights reserved.5
    5. 5. Facts and Figures about Schweitzer • Founded in 1868 (pre e-procurement era) • Since 1972, owned by the C.H. Beck publishers • 24+ sites in Germany • 1 site in the US • Volume 184 million Euro • 500 staff © 2014 Ariba – an SAP company. All rights reserved.6
    6. 6. What We Deliver to Our Customers Find. Get. Use. … and kill the iceberg © 2014 Ariba – an SAP company. All rights reserved.7
    7. 7. Buyers and Sellers: What Do They Want? © 2014 Ariba – an SAP company. All rights reserved.8 • And e-Procurement software providers seem to do too • Mostly level 1 • Excepted small suppliers with no webshop/very few products Sellers prefer PunchOut Buyers prefer static catalogues
    8. 8. Why Sellers Love PunchOut • Larger catalogues (up to 20.000.000 items) • Higher update frequency • Timeliness of updates • Maintenance effort and cost (1 vs. many) • Data licensing • Additional features (i.e., cross reference, stock…) • ―Search Intelligence‖ © 2014 Ariba – an SAP company. All rights reserved.9
    9. 9. Why Sellers Love PunchOut (Secret!) • Want users to first choose the supplier… • …and then the item • Do not want to be compared or transparent (to much) • Want to guide the users • Want users/customer to get used to them (retention) © 2014 Ariba – an SAP company. All rights reserved.10
    10. 10. Why Buyers Love to Own the Catalogue • Stay in control • Do not want to care about availability • Reduce user training • Avoid IT security issues • Want a uniform search • Enable ―Demand management‖ © 2014 Ariba – an SAP company. All rights reserved.11
    11. 11. Why Buyers Love to Own… (Secret!) • Want to compare items among different sources • Dream of the ―best price‖ cherry picking machine • Want to gain catalogue intelligence (true) • Do not trust the suppliers (well…) • Users should get used to the system — not the supplier • Want to interchange suppliers easily © 2014 Ariba – an SAP company. All rights reserved.12
    12. 12. Another Secret: The ―Long Tail‖ Is a Myth! • Old mindset: core portfolio + long tail (-process) • Truth: users do not care (everything they need is core) • Once having used the ―joker‖, they never return • Reducing ―core‖ catalogues means giving away control (not gaining it) • Users need not 10 pencils, but 1 and to FIND it • Buyers don‘t need many suppliers, but: many items © 2014 Ariba – an SAP company. All rights reserved.13
    13. 13. So? Can They Be Friends? • Supplier/Commodity specific searches ARE better • User guidance is a plus (Google-like search looks neat, but is not) • Sellers and Buyers want coverage (= many items) • Procurement doesn‘t know their users (and the supplier does not either) • Depends on the size of the catalogue © 2014 Ariba – an SAP company. All rights reserved.14 Both want the best “search-results”
    14. 14. Update frequency So? Can They Be Friends? © 2014 Ariba – an SAP company. All rights reserved.15 • Less maintenance = faster updates • Reduced supplier cost = better suppliers/pricing • Amazon has set the benchmark for user Catalogue experience = users more advanced
    15. 15. Intelligence and control • You can only evaluate what you see, so coverage is a must • Focus on spend data, rather than catalogue data (this you get) • You can still exchange suppliers • Cherry picking does not work (never did, never will) So? Can They Be Friends? © 2014 Ariba – an SAP company. All rights reserved.16
    16. 16. And the Winner Is… Everyone… • Look at the commodity/product - specifics • Ask your supplier, and maybe ask a second one • Ask your users and choose nothing but the best for them… • Never estimate you know better than your users • Remember its 2014 and people know ―online shopping‖ by now • Add content, add content, add content… © 2014 Ariba – an SAP company. All rights reserved.17 • Define your catalogue strategy • Ask your customers, ask your e-Procurement partner, your competition • Ask your end-users and choose nothing but the best for them… • Never estimate you know better than your users • Use state-of-the-art and beyond webshops as your benchmark • Provide 100% of your content
    17. 17. One More Way to Go: Level 2 PunchOut © 2014 Ariba – an SAP company. All rights reserved.18 It’s an almost perfect compromise (but is one). So you need to be clear on strategy first Go to the supplier webshop right away • User starts with ARIBA buyer • Sees the results and ―links to PunchOut/webshop‖ for Updated prices, stock levels additional information More items (can continue from there)
    18. 18. © 2014 Ariba – an SAP company. All rights reserved.19
    19. 19. GETTING ON THE SAME PAGE: A DISCUSSION ON CATALOGUE STRATEGIES Daan Gooskens, E-Procurement Manager for Manutan in the BeNeLux © 2014 Ariba – an SAP company. All rights reserved.20
    20. 20. Agenda • Introduction Daan Manutan E-Solutions • Catalogue Strategy Struggle Solutions Results © 2014 Ariba – an SAP company. All rights reserved.21
    21. 21. Introduction © 2014 Ariba – an SAP company. All rights reserved.22
    22. 22. Me • Past in E-Procurement & ERP • E-Procurement Manager @ Manutan P2P automation – Catalogue – Order – Invoice ―Develop & improve e-procurement relationships with Manutan customers to help them minimize the ‗fuzz‘ surrounding the procurement process.‖ © 2014 Ariba – an SAP company. All rights reserved.23
    23. 23. Manutan – Ambition © 2014 Ariba – an SAP company. All rights reserved.24 Enterprising for a better world We believe that by putting people and the environment first, our company can play a role in helping move society forward. By setting high standards, including responsibility and love, we want to introduce ethics into our business lives.
    24. 24. Manutan – Presence © 2014 Ariba – an SAP company. All rights reserved.25
    25. 25. Manutan – Offer …more than 40,000 products for office, warehouse, workshop and outdoor premises © 2014 Ariba – an SAP company. All rights reserved.26
    26. 26. Manutan – P2P Services © 2014 Ariba – an SAP company. All rights reserved.27 After a while…. ―Being part of the networked economy is a prerequisite for a sustainable business model.‖ In the beginning… ―Go with the flow, follow customer needs‖ Today & Tomorrow…. ―Added value is not (only) in our products, but in our relationship. For medium-sized and large companies E-Business relationships are a crucial part of our customer relation.‖
    27. 27. Evolution of Catalogue Approach © 2014 Ariba – an SAP company. All rights reserved.28
    28. 28. The Challenge – ‗Hosted‘ Catalogues © 2014 Ariba – an SAP company. All rights reserved.29 10 Customers 9 Catalogue formats Sub-optimal Content presentation • Limited space for images, descriptions • Searchability (classification, sysnonym, additional descriptions) • No assortment oriented presentation No realtime info Assortment, price, availability Labor intensive New publishing strategy Batch  Continuous
    29. 29. The Solution – PunchOut / Roundtrip © 2014 Ariba – an SAP company. All rights reserved.30 Always up-to-date Assortment, price, availability No manual content management Optimal Content presentation • User interface • Functionality • Product information
    30. 30. Customer Quotes “Finally we can buy Christmas trees @ Christmas” © 2014 Ariba – an SAP company. All rights reserved.32 “I didn’t know setting up a punchout connection was this easy” “Great search features. I can finally get rid of the paper catalogue.”
    31. 31. Threats Tackled © 2014 Ariba – an SAP company. All rights reserved.33 Same lack of standardization as in Catalogue files? Adapted cXML & OCI. Turns out to be all we need in our market. End-user/requester adaption (different GUI) 1. Intuitive webshop 2. People gain experience in private life  The time is right End-user/requester adaption (different GUI) Additional communication when switching to punchout. Communication / rollout plan. Full assortment control (items & prices) Trust. Customer specific Catalogue content.  Reporting. 
    32. 32. Lessons Learned • Localized webshops & pan-European projects • High level of standardization, >90% = plug&play • Communication is key: Seller-Buyer-Requester © 2014 Ariba – an SAP company. All rights reserved.36
    33. 33. The Results © 2014 Ariba – an SAP company. All rights reserved.37 Hosted Punchout Initial setup Yearly maintenance % Eproc transactions Contract compliance 2d 2h 2011 2014 New connections >2d -* +15% +20% 2/3 1/3 1/4 3/4 1/10 9/10
    34. 34. © 2014 Ariba – an SAP company. All rights reserved.38 daan.gooskens@manutan.nl
    35. 35. GETTING ON THE SAME PAGE: A DISCUSSION ON CATALOGUE STRATEGIES Byron Wilkinson, Consultant E-Business, Computacenter (UK) Christian Traud, Business Services Director E-Business, Computacenter (DE) 39 © 2014 Ariba – an SAP company. All rights reserved.
    36. 36. Computacenter …delivers IT services and solutions that enable our customers to achieve their goals © 2014 Ariba – an SAP company. All rights reserved.41 Germany Aachen, Berlin, Bielefeld, Bonn, Cologne, Erfurt, Essen, Frankfurt, Greven, Hamburg, Hanover, Heilbronn, Kassel, Kerpen, Kiel, Leipzig, Ludwigshafen, Munich, Nuremberg, Oberhausen, Ratingen, Rostock, Saarbrucken, Schwerte, Stuttgart, Wolfsburg France Antony, Bordeaux, Dijon, Grenoble, Lille, Lyon, Nantes, Nice, Orléans, Paris, Rennes, Rouen, Toulouse Benelux Luxemburg, Zaventem Switzerland Dietikon • Revenue £ 2.91 billion • Employees 12.300 • Profit before tax £ 71,3 million UK Birmingham, Cardiff, Edinburgh, Hatfield, London, Manchester, Milton Keynes, Nottingham, Reading WhatwedoOurmarketOurPartners • Medium - large private sector companies • Public sector • Technology Solutions & Systems integration • Multi-year outsourcing service arrangements • Supply of hardware and software technologies UK Birmingham, Cardiff, Edinburgh, Hatfield, London, Manchester, Milton Keynes, Nottingham, Reading
    37. 37. Milton Keynes, UK Barcelona, Spain Cape Town, South Africa Kuala Lumpur, Malaysia Erfurt & Berlin, Germany Sheffield, UK Hatfield, UK Nottingham, UK Paris, France Timisoara, Romania Dallas, US Mexico City, Mexico Germany – Erfurt, Berlin • 529 Staff / 482 Agents / Current Capacity 530 (expansion up to 725) • 24 hour German, English, Polish South Africa - Cape Town • 230 Staff / 40 Agents / Current Capacity 400 • 24 hour coverage in English UK - Milton Keynes, Hatfield, Nottingham, Sheffield • 470 Staff / 431 Agents / Current Capacity 581 • 24 hour coverage in English Int’l Service Centre - Barcelona, Kuala Lumpur • 570 Staff / 500 Agents / Current Capacity 716 • 24 hour Multilingual coverage France - Paris (Roissy) • 35 Staff / 28 Agents / Current Capacity 70 • 16 hour coverage in French English, Spanish and Italian Computacenter Group Service Desk © 2014 Ariba – an SAP company. All rights reserved.42
    38. 38. E-Business Solutions Are Inextricably Linked with Our Company Strategy “Ultimately the Catalogue strategy is about making it easy to do business with us in an efficient and effective way for all of our customers.” © 2014 Ariba – an SAP company. All rights reserved.43 Effectively this is the base for every E-Business solution Adrian Priest Group Inside Sales Director
    39. 39. Spreadsheets and Shopping Carts — the Usage of Catalogues Evolved • Various kinds and formats • Former catalogs didn‘t always help selling • Regular maintenance was time consuming • Maturity of technology brought new options • Reactive handling of queries was inefficient • Growth required efficient sales cycle © 2014 Ariba – an SAP company. All rights reserved.44 We are now using catalogues as an opportunity
    40. 40. A Catalogue Represents Your Company on the Customer Side • The more information the better • Fulfill expectations towards content/structure • Support the right industry standards • Flexibility to meet special requirements • Educate customers on usage • Never discuss the Catalogue as a single topic © 2014 Ariba – an SAP company. All rights reserved.45 A Catalogue is the first step towards efficiency
    41. 41. Integrated Catalogues Are a Key Element for Unlocking e2e eProc Efficiency submitted via Internet/opt. Marketplaces ① Basket provision ② Workflow approval ③ PO sent to CC ④ Order Acknowledgement/Rejection ⑤ Advanced Shipment Notification ⑥ Invoice NonSTD1 2034681 = NonSTD1 2034681 = NonSTD1 2034681 = NonSTD1 NonSTD1Additional Custom Mapping Required NonSTD1 = 2034681 Customer ERP/ Middleware © 2014 Ariba – an SAP company. All rights reserved.46
    42. 42. Integrated Catalogues Are a Key Element for Unlocking e2e eProc Efficiency submitted via Internet/opt. Marketplaces ① Basket provision ② Workflow approval ③ PO sent to CC ④ Order Acknowledgement/Rejection ⑤ Advanced Shipment Notification ⑥ Invoice 2034681 2034681 2034681 2034681 2034681 2034681 Customer ERP/ Middleware © 2014 Ariba – an SAP company. All rights reserved.47
    43. 43. Classifications: UNSPSC, eCl@ss,... or customer specific Our Strategy Is Founded on a Solid Mix of Standardization and Flexibility PunchOut Catalogue BMEcat 1.2 CSV PDF © 2014 Ariba – an SAP company. All rights reserved.48 Our true favourite is Connect, as it delivers the most comprehensive information and is always up to date
    44. 44. Did We Succeed with that Approach? “We were very impressed with the Connect site that you demo’d to us and think this will be a great addition to our offering” About 60% of our customers already have E-Business solutions with us We are electronically processing about 500,000 orders per year Centralized expertise and a capable tool to provide custom catalogues © 2014 Ariba – an SAP company. All rights reserved.49 Yes! But we are still aiming for more...
    45. 45. What Have Been Our Lessons Learned • Two main layers (creation & categorization) • Use industry standards and repeatable solutions where you can • The consumer sector is the benchmark for us • Trust is the basis for success • Don‘t solely discuss the provision of the catalog © 2014 Ariba – an SAP company. All rights reserved.50 ...then you will get on the same page with your customers
    46. 46. Questions © 2014 Ariba – an SAP company. All rights reserved.51

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