If you’re ready to move on from paper invoice processing, this session is for you. Hear from customers who have automated their accounts payable operations to accelerate invoice processing, eliminate invoice errors and exceptions, improve on-time payment performance, and improve compliance. With a smart invoicing approach, you can free up accounts payable resources to focus on higher-value activities that help improve business performance.

1. Maarten Eddes, Global Business Process & Systems Manager, Avery Dennison
Pedro Martinez, CIO, Navantia
Albert Buijze, Global Manager Accounts Payable, ASML / June 14, 2016
Mission Possible: You Can Achieve Touchless
Invoice Processing
Public

2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is the confidential information (per the contract between our companies), and must not
be further disclosed, as stated in the confidentiality clause of that contract. This presentation
contains only intended guidance and is not binding upon SAP or Ariba to any particular course of
business, product strategy, and/or development. Its content is subject to change without notice.
SAP and Ariba assume no responsibility for errors or omissions in this document. SAP and Ariba
shall have no liability for damages of any kind including without limitation direct, special, indirect,
or consequential damages that may result from the use of these materials.

3. » Founded in 1935 - world’s first self-adhesive label
» Sales of $6 billion in 2015, with Fortune 500 ranking
» Two industry-leading businesses with operations in over 50 countries
» Sales in nearly 90 countries, with more than 25,000 employees worldwide
» Committed to building prosperous communities where our employees work and live
» Vision: To make every brand more inspiring and the world more intelligent
Avery Dennison - A Global Leader
3

4. Avery Dennison’s
Procurement Journey

5. Avery Dennison’s Procurement Journey
5
Relationship with SAP
Avery Dennison began the journey to improve its indirect procurement process in the early 2000’s by deploying an
on-premise application. SAP and Avery Dennison will collaborate and embark on a path for business and process
improvements to realize greater value and positive impact to the bottom line.
2003 & 2004
•THE BEGINNING
•Ariba Solution Deployment
•On-Premise Buyer
2014
•BUILDING THE FOUNDATION
•Move to the Cloud
•Sourcing Pro
•Contract Mgmt (repository)
•P2O
•Spend Visibility
2015 / 2016
•DRIVE P2P EFFICIENCIES
•eInvoicing deployment
•Centralized buying
•eForm Vendor Requests
•PO Collaboration
•Pushing more catalogs
•Policy & Compliance
Future Roadmap
•CONTINUOUS IMPROVEMENTS
•Vendor Consolidation (Spot Buy)
•Increase Supplier Automation via the
Network & Catalogs
•Regional Expansion (SA / APAC)

6. eInvoicing

7. eInvoicing
7
Challenge: Redefining Procurement for the Digital Age
Objectives Results Lessons Learned
 Centralize all procurement
activities
 Build a robust, sustainable
procurement platform
 Digitize and automate paper-
based processes to maximize
efficiency
 Reduce the risk of human error
and fraud
 Streamline and accelerate the
invoicing cycle
• eInvoicing implemented on time
and on budget
• 400 hours per week buyer and
AP estimated time saved from
reduced match exceptions and
answering supplier queries
• 5 days to process an invoice
compared to 23 days in the past
• 87% of purchase orders in NA
and 66% in EU managed
through SAP Ariba solutions
• Introduced the mobile app for
employees to work on the go
• Strong cross-functional team
structure is key for the
success of the project
• Supplier enablement is more
important than initially
thought
• North American market
adopted the Ariba Network

8. Pilot started in January 2016 in North America and Europe
Next Steps:
» Q2: deploy eInvoicing to top 200 suppliers (Top 100 NA and Top 100 EU based on transactions)
» Q3: deploy eInvoicing to next 200 suppliers
» Q3: deploy BPO functionality
eInvoicing
8

9. Supplier Enablement

10. Supplier Enablement
10
Challenge: Inefficiencies in communicating with our suppliers
Objectives Results Lessons Learned
 Interact with suppliers via
single electronic channel,
i.e., the Ariba Network
• 87% of purchase orders in NA
and 66% in EU managed
through SAP Ariba solutions
• Implemented SAP Ariba
compliance policy for suppliers
• Aligned internal functions to
importance of enablement
• Substantial reduction of IT tickets
related to purchase orders not
received by supplier
• Less supplier maintenance
• Dedicate resource(s) to supplier
enablement in order to be
successful
• Only deploy Quick Enablement
when you grasp the functionality
and impact
• Supplier Enablement is a Journey
and not a Project
• Be result driven. Be VERY result
driven
• Change Management internally
AND externally
• Build supplier enablement into
sourcing and RFP process and
contract (renewals)

11. Supplier Enablement
30%
40%
50%
60%
70%
80%
90%
100%
NA
EU
Our Journey
Percentage of purchase orders
(by volume) issued through the
Ariba Network:
North American: 70% to 87%
Europe: 35% to 66%

12. Next Steps:
» Focus on deploying eInvoicing
» Q2: Test & Pilot Light Enablement
» Q3: Deploy Light Enablement
» Q3: Pilot Spot Buy in North America
Supplier Enablement
12

13. About Navantia
• Design and construction of high-tech military vessels and civil vessels.
• Design and manufacturing of control and combat systems.
• Technology transfer.
• Overhauls, repairs and alterations of military and civil vessels.
• Support to the Service Life of vessels and systems.
• Diesel engine manufacturing.
• Turbine manufacturing.  Public Company of Spain belonging
to SEPI
 Revenue: 906 Million Euros
 5,500 employees
Navantia is a Spanish public company that belongs to the SEPI (a state-owned enterprise group
subordinate to the Spanish Ministry of Economy and Treasury). Navantia is a world leader in the
products it offers:
Latest or current international customers include the National Navies of Australia, Norway, Turkey,
India, Malaysia, Chile and others.

14. Navantia Values
Vision: To be a sustainable company in the naval industry, strategic and international.
Mission: Design and execution of competitive naval programs, and serving to National Security.
Values: Commitment with the results – Technological leadership – Teamwork – Orientation to the
customer– Ethical commitment – Responsibility.

15. NACE - NAVANTIA ELECTRONIC PROCUREMENT
Mission & Objectives
• Make use of the opportunities provided by the new technologies
to negotiate with our suppliers and meeting our principles of
concurrency, transparency and traceability.
• Add our suppliers to our value chain, saving time, improving
information quality by having all data in electronic format to allow
revisions and traceability by all involved stakeholders.
• Improve the communication with our suppliers in a more efficient
and rapid manner.
• Facilitate the collaboration and the full interchange of
purchase orders, shipping notices and invoices in
electronic format between Navantia and our suppliers in order
to contribute to the ongoing Company Transformation by:
• Improving the efficiency in the process.
• Increasing the operating efficiency.
• Reducing costs as supply chain risks
• Creating value to our suppliers.
• Increasing the satisfaction in the relationships with our
suppliers.
• Eliminating clock barriers.
Why the Ariba Network?
• The Ariba Network offers a robust and proven solution
since the foundation of the first eProcurement
platforms being one of the leaders on the sector.
• The Ariba Network is directly related to the SAP ERP
application deployed in Navantia for all the processes
and facilitates and guaranties the Integration
with them.
• The Ariba Network offers functionality that covers all
the scenarios needed for eProcurement thanks to its
configuration & parameterization capabilities allowing
a rapid deployment.
• SAP provides worldwide commercial support, offering
supplier support services to facilitate to our suppliers
the interaction with the Ariba Network and to solve
the problems and doubts they may have about
the solution.
• The Ariba Network is a cloud-based system, making it
easier and faster to deploy and maintain than other
on-premise solutions.

16. Where We Started (2014)
• 2.000 active suppliers, 10.000 Purchase Orders (45.000 Line Items), 27.000 Invoices.
• 20% of suppliers concentrate 75% of the invoices.
• Average time to register invoice: 28 days.
• Lyreco supplier: Monthly invoice including all the shipments done during the month → Invoices frequently
blocked due to lack of goods receipt in the system.

17. Goals
Electronic management of Purchase Orders, Shipment Notices and Invoices to:
• Decrease invoice registering time
• Decrease process costs
• Decrease invoice errors
• Improve transparency to suppliers about invoice status
• Change process in certain scenarios (Invoice per Shipping vs. Monthly Invoices)
• Decrease use of paper
Internal process has not changed (VIM + ERP), but communication with suppliers has been greatly
improved, as well as the information suppliers get.

18. Deployment
Pilot
• Oct/2014 - Jan/2015
• Selected core set of national suppliers already on the Ariba Network willing to work on this project with Navantia.
Phase 1
• Jan/2015 - Sept/2015
• Selected next set of suppliers with highest invoice number in 2014.
Phase 2
• Sept/2015 - Mar/2016
• Selected another wave of suppliers with highest invoice number in 2014.
Phase 3
• Mar/2016 - ??
• All suppliers with relevant number of invoices in 2015.
Enablement efforts have effectively automated 25% of total invoices.

19. Challenges Encountered and Overcome
Supplier engagement
• Harder for suppliers with few high-value orders.
• Easier for suppliers with many low-value orders.
Integration to SAP ERP
• It’s not plug-and-play.
• More information needed when some errors occur.
Support
• Language barrier can be an issue.

20. Results
• Key targeted suppliers enabled on the Ariba Network.
− They recognize the value of transacting electronically over the network.
• Thousands of purchase orders and invoices routed so far through the Ariba Network.
• 25% of invoices received in electronic format. (72% through the Ariba Network, 28% other systems).
• Average registration time for invoices received through the Ariba Network has changed
from 28,36 days to 2,92 days.
• AP is highly satisfied with the SAP Ariba solution .
Our goal is to achieve 50% electronic invoices by 30 June 2016.
The light enablement option in the Ariba Network will help us.

21. Next Steps
Deploy light enablement option to invoice via interactive email to keep increasing percentage
of electronic invoices.

22. <Dat
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23. Our ASML Finance Mission Statement:
Add value by supporting ASML’s business and driving
financial performance to a World-Class Level
We will achieve this by:
1. Being recognized as a business partner that supports decisions at all levels, giving guidance on and
deploying cross sector operational measures and processes
2. Protecting the business by securing corporate governance, integrity and risk mitigation
3. Realizing cost effective transactional and financial processes on a global scale, ROIAC
4. Maintaining a learning environment where people can grow and challenge each other with high
commitment, the right flexibility and continuous improvement in mind.
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

24. Current Process
SAP Ariba – AFI – SAP PO – Invoice Integration
Tibco
DHC Scan
center
AFI Ctrl Box AFI
(enrich)
MIRO
(book&m
atch)
SAPInv. XML Inv. XML
Inv. XML
(Push)
Inv. XML (Pull)
Inv & PO
Approval
task
Inv. Appr. IDoc
Livelink
Existing PR & NPR Invoices
Task
ASML
PO
PO Appr Idoc
PO XML (Push)
TIFF
Ariba Network
PO IDoc
PDF
Approved
SAP Ariba
PO
Ariba P2O
Supplier
NPR POs
PR POs
PO (copy)
W
O
R
K
F
L
O
W
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

25. S
A
P
To Be Process SAP Ariba – SAP
PR & NPR Invoices
Ariba
Network
Approved
SAP Ariba
PR-PO
S
U
P
P
L
I
E
R
NPR POs
PR POs
ASML
SAP Ariba AddOn
Livelink/SAP Extended
Enterprise Content
Management by
OpenText
SAP IM
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

26. Facts & Figures 2012 & 2015
• Auto posting rate of invoices went up from 40 to 75%
• Saving 7 FTE
• Total FTE reduction since 2010 is 18 till now, process and automation improvements
• 53% vendors enabled (invoice volume) on the Ariba Network in two years
• More POs, better Spend Control
• Better quality resulted in throughput time reduction of 50%
• PR vendor enablement on the Ariba Network is 78%
• NPR vendor enablement on the Ariba Network is 75%
• This is excluding Freight, Flex invoices and Invoices without PO
• Annual Spend 2015
• 4.1 billion in value
• 425.000 invoices
• 5.500 active suppliers worldwide
Principles – Process – Digital World – Why, how, what – Financial Control – Lessons

27. How are top companies performing?
Principles – Process – Digital World – Why, how, what – Financial Control – Lessons
KPI Average World-class Source ASML
% of PO invoices to total invoices received 66% 82% Hackett 86%
First Pass invoice matching rate 78% 95% Hackett 65%
Number of invoices per AP FTE 11,786 35,147 Hackett 31.500
Cost per invoice €14.03 €5.29 Aberdeen
Cost per electronic invoice €5.22 €2.14 Hackett 1.21 -0.25
Days to process invoice and schedule to pay 16 3 Aberdeen 2
% of dynamically discounted spend 0% 5% Ariba N/A
% of suppliers with discount terms 1% 20% Hackett N/A
% of standing discounts captured 52% 100% Hackett N/A

28. From AP current Process, 75% auto posting to 100%
• Enable as much vendors on the Ariba Network
 Better quality invoices, less errors, will improve auto-posting rate
 Only allow invoices which are 100% correct for posting, this will make Work Flow superfluous.
• Freight Invoices through Transparix, e-invoicing on Freight PO (10%)
• Auto Processing of remaining invoices without PO, like pension fund, insurance invoices, etc., through Sticky Notes
on invoice PDF (10%)
• Smart adjustments in P2P process (5%)
• DIRECT POSTING FROM THE ARIBA NETWORK IN SAP FMO
• Cutting Interfaces and Maintenance Programs
• Less IT dependent
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

29. Why, How, What
• Why
 Transparent Vendor Invoice Posting, Stable Controlled process for all parties involved at
the lowest cost
• How
 Close Cooperation (Key) between Procurement, Finance (AP), Suppliers,
IT Providers & Demand
• What
 Transparent AP Process, Stable Controlled
 Low Cost and Sustainable
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

30. Simplify
• Understand P2P Chain
• Respect the stakeholders in P2P process
• Use Buckets
Split Spend in digestible parts
Create Clear Processes per bucket
Automate
• Posting Invoices is easier through clear process and
instructions (students instead of Flex)
• Vendor Master Data Management through MDG,
(later combined with the Ariba Network)
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons
Business
Demand
Procurement
VendorAccounts Payable
Service Providers
(In- & External)

31. Buckets, P2P Kinds of Demand
Product
&
Non-Product
Spend
High Volume
–
Low Value
Travel
&
Entertainment
P-Card – now Ariba Procure-to-Order –
Easy Buy
Concur
Accounts Payable
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

32. Non-Product-Related Spend
EasyBuy Ariba
NPR Spend
IT
Facility
Utilities
Contracts
TimeMat
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

33. Transform
• From Manual Posting of received paper invoices to
• AFI Tool with logic and auto posting
Manual posting is boring and is not stable
• Paper invoices to PDF to scan center
• Ariba Network for e-invoicing, plus rules
• Students, incorrect posting rate did not change
More Flexibility
• Vendor Master Data Management through the Ariba Network in MDG, SAP
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

34. One Source of Truth (less IT, interfaces)
• AFI software
• All invoice related events, from invoice date to payment date, per invoice are
registered in AFI
• AFI is basis for reporting. Combined with BW and Spotfire
• This way issues can be monitored and improved
• Software Development by ASML AP and AFI and SAP Ariba (SAP)
• SAP, BW, Spotfire, daily automated reporting
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

35. Accelerate
• Ariba Network, e-collaboration
Prohibit incorrect invoices entering SAP software
• SAP Fieldglass solutions, better Flex Process
Easy hiring, quality, stable process, self billing
• Transparix, Freight solution, autoposting
• EasyBuy development
Contract buying and POs
Rent contract POs
• Less depending on IT services
• SAP, SAP HANA, Spotfire, daily automated reporting
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

36. What’s in it for Financial Control
• Compliance
• More POs through EasyBuy
Better and Earlier Insight in Commitments
Better Accrual Process
Fixed assets, better process, digital approval flow
• Invoice posting is 100% correct
Less PPV
Less corrections, if any
• Invoice posting is fast, minutes
Add relevant information for review
• More accurate Cash Flow planning
• Less depending on IT services
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

37. Lessons Learned
• You can only excel if you understand and work with the entire chain, in this
case the P2P chain, P2P Process
• Pay Lots of Attention to Details
• Never Trust your External IT service providers
• Always ask for POC (Proof of Concept)
• Be aware of the IT “JWGWJBS” syndrome
• Internal awareness, need for change
• Vendor Awareness
• Software Development by ASML AP, AFI and SAP Ariba (SAP)
Principles – Process – Why, how, what – Digital World – Financial Control – Lessons

38. Albert Buijze
Work Flow
Yvonne Kox
Ad Antonis
Business Support
Cathy Antonise
Financial Analyst
Stefan Reijs
Abdu Nuru
Vendor Communication Team
Louise Looijen
Rene de Brouwer
Magret Walraven
Accountants
Astrid van Dael Bas de Viet Hilke Visser Dongmin Son Ling Wu
Maran de Loo Paul de Kleine Jelle Bakker Harm van Schaijk
Improvements
Tim Op Heij
Nick Veldman
Rob Klaassen
Team To Be Proud Of

39. Questions?

40. Thank you

41. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Public
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