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Growing Your B2B Business Online
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  • 1. B S Growing Your B2B Business Online Moderated by Ceylan Thomson, Sr. Product Marketing Manager, Ariba Discovery Barcelona, May 30, 2012© 2012 Ariba, Inc. All rights reserved.
  • 2. Agenda • Ariba Discovery Overview • Panel Introduction • Best Practice Sharing • Summary • Q&A2 © 2012 Ariba, Inc. All rights reserved.
  • 3. What Is Ariba Discovery? • The premier service for matching business buyers and sellers globally Over 700K buyers and sellers More than 20K categories Over 190 countries Innovative matching engine Advanced collaboration capabilities Rich seller profiles and lead management tools Over $3B USD in business opportunities More than 30K green and diverse sellers3 © 2012 Ariba, Inc. All rights reserved.
  • 4. More Value for Buyers and Sellers BUYER VALUE SELLER VALUE • Achieve incremental savings of 15% • Tap into over $3B USD buying volume right in Discovery • Reduce costs up to 75% for seller identification and qualification • Maintain high visibility in front of real decision-makers, with budget and • Save up to 90% of time for seller ready to buy identification and qualification • Cost effective lead source versus • Make better, more informed seller traditional methods selection decisions • New sales channel, comprising 15-50+% of revenue for many sellers4 © 2012 Ariba, Inc. All rights reserved.
  • 5. Introducing Our Panel Steve Eastman Commercial & Purchasing Manager .d Markus Hilmes Regional Facility Manager Florian Boehme Director Professional Services & Consulting5 © 2012 Ariba, Inc. All rights reserved.
  • 6. Jotun Overview • One of the worlds leading manufacturers of paints, coatings and powder coatings • Group with 74 companies and 8,600 employees • Family-owned business • Headquartered in Norway • Global purchasing organization Local purchasing managers at 39 sites worldwide Regional purchasing managers on three continents Global category managers at headquarters6 © 2012 Ariba, Inc. All rights reserved.
  • 7. Jotun’s Challenges • Time-consuming manual supplier identification process for new business areas • Resource-intensive process of gathering market insights on competitive pricing • Difficulty increasing competition due to small supplier database • Reducing purchasing costs with little time for supplier discovery and qualification • Achieving coherent buying process and data consistency7 © 2012 Ariba, Inc. All rights reserved.
  • 8. Jotun and Ariba Discovery • Uses Ariba Discovery to easily find new sellers and Ariba Sourcing to manage sourcing events • Results First RFX for $750K of packaging for UK operation Received first seller responses within 24 hours of posting Discovered the best offers through the service Achieved 20% or $150K in savings in record time Exceeded equivalent of three-year Sourcing subscription costs after only three months of using service – using Ariba Discovery as a buyer is free8 © 2012 Ariba, Inc. All rights reserved.
  • 9. ray Overview • Family-owned company • Established in 1975 • ISO EN ISO 9001:2000 certified • ISO EN ISO 14001 certified • SCC certified • Over 36 Mio. Euro turnover in Germany • Over 3.400 employees in Germany • Over 45 Mio. m² of service area in Germany9 © 2012 Ariba, Inc. All rights reserved.
  • 10. ray Service Spectrum Commercial Building Technical Building Infrastructural Building Management Management Management Property Management Technical Inspections and Cleaning Accounting of service charges Maintenance Window Cleaning Lease administration HVAC Façade Building Cleaning Budget Management Fire Safety Hotel Services and Cleaning Controlling Electrical Industrial- / Machine Cleaning Object and Project Management Mechanical works Hospital Services and Cleaning Quality Management Support Industrial Machines Specialist Cleaning Performance Knowledge Transfer / Educations Conveyance Security Services Public-Private-Partnership Data system technology Internal Post and Print Services Projects (start up) Plumbing Waste Management Roofing Catering Services Carpentry Winter Services Painting Landscaping Management Handyman Reception Services 24/7 Helpdesk10 © 2012 Ariba, Inc. All rights reserved.
  • 11. ray’s Challenges • Securing business from companies abroad – specifically in the U.S. • Getting exposure to large buying organizations • Building strong, long-lasting relationships to provide additional services11 © 2012 Ariba, Inc. All rights reserved.
  • 12. ray and Ariba Discovery • Receives email notifications with new matching leads • Discovers new opportunities they weren’t aware of • Access to large buyers and million-dollar projects • Won several contracts with Abercrombie and Fitch for more than € 500,000 • Opportunity to grow the business12 © 2012 Ariba, Inc. All rights reserved.
  • 13. source:net Overview • Founded 2002 • Provides procurement success and efficiency • Consulting focus on procurement data and processes • Supports tender projects, driving all procurement and cross-functional levers • Large multi-national customers in aerospace, automotive, financial services, and more industries13 © 2012 Ariba, Inc. All rights reserved.
  • 14. Sourcing OnDemand Success Factors: Basics Success Factors: Cost Know-how, Expertise and Experience Costinformation and Benchmarks Spend Analysis and Bundling Price-Escalation-Clauses Specifications Cost-Structures Contractual Terms Seasonal Price-Movements Success Factors: Competition Success Factors: eTools Supplier-Databases eRFx Supplier-Ratings eBidding / eAuction Optimization/combinatorial Mailing analysis14 © 2012 Ariba, Inc. All rights reserved.
  • 15. source:net and Ariba Discovery • Started using Ariba Discovery in 2009 for most Indirect, but also Direct, Capex, and Services projects • Uses the services both as a buyer and seller • Starts overall buying process with a post, if possibleAriba Discovery Analysis AnalysisPosting Expression Optimization RFI RFP Validation RFQ Validation Auction Award of Interest ScenariosDirect Mailings Clarification Optimization 15 © 2012 Ariba, Inc. All rights reserved.
  • 16. Sample Postings Spend • Wide range of Printed Items (Germany) (€) 150k categories Services: Relocation (Germany) 2 Mn. • Mostly for Toner / Ink (Germany) 1 Mn. business in Europe Services: Small Parcel (DE, AT, CZ) 5 Mn. • Higher response Furniture (Germany) 3 Mn. rates in global Services: IT consulting (Europe) 100 Mn. tenders Plastic injection moldings (Austria) 1,3 Mn. Packaging (pallets, films, ..) (CH, DE, ES, PT, UK) 15 Mn. FurnitureDisplay in Retail Shops (Global) 50 Mn.16 © 2012 Ariba, Inc. All rights reserved.
  • 17. Sample Postings17 © 2012 Ariba, Inc. All rights reserved.
  • 18. Posting Effort Task Time (Minutes) Search & find your password, Login 2-3 Minutes Create Posting (Title & Description) 15-30 Minutes Add Commodity (classify) 5-10 Minutes Add Location(s) 1-10 Minutes Additional Information (Contract, Spend, Timeline) 2-3 Minutes Add Preferences (Size, Years in Business, Type, …) 2-3 Minutes … a phone call lasting more than 30 minutes comes in … you lose all work ….18 © 2012 Ariba, Inc. All rights reserved.
  • 19. Best Practice • Ariba Discovery facilitates our approach to the market Solid description of needs and requirements Granular and precise classification of products and services Detailed specification of locations down to state level Ability to hide participating supplier list Accommodates logistical requirements Tender / business languages19 © 2012 Ariba, Inc. All rights reserved.
  • 20. Maximize Your Impact as a Buyer • Easy seller identification For any occasion, including spot sourcing, entering a new market, or meeting diversity program requirements • Quick seller vetting Access relevant details to screen sellers and manage risks • Integrated approach Contact sellers directly to learn more Upload sellers to sourcing database Invite sellers to postings and events20 © 2012 Ariba, Inc. All rights reserved.
  • 21. Maximize Your Impact as a Seller • The Top 5 things to do to leverage your company 1. Update your profile and contact details 2. Get the commodity right 3. Provide customized responses 4. Invite more references 5. Network with buyers21 © 2012 Ariba, Inc. All rights reserved.