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Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
Network Growth Strategies: Getting More Out of Your Ariba Investment
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Network Growth Strategies: Getting More Out of Your Ariba Investment

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If your collaborative commerce program is established and you are now wondering, “now what?”, this session is for you. Ariba customers are managing and automating their spend in many categories beyond …

If your collaborative commerce program is established and you are now wondering, “now what?”, this session is for you. Ariba customers are managing and automating their spend in many categories beyond the indirect areas where many start. Procurement and invoicing processes vary for different supplier industries and global geographies.

In this session, you will learn best practices to develop programs and enjoy collaborative commerce benefits in categories including: Facilities Maintenance/ Repair/ Operations, Insurance Claims, Engineering and Construction Services Telecom, and Legal.

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  • Talk Track:As both the Retail and CP industry specialists began to piece together the entire business process that regularly takes place between a retailer and their supplier, we wanted to make sure that we could identify the most important areas of collaboration – defined in metrics of cost and time. Both sides, including the wholesalers and distributors agree that getting the Order process right is where the bulk of the errors are, and the highest costs and time expenditures are found. As it happens, much of this business functionality is already available within the Ariba Network. In a three day workshop last February, we established a solid roadmap of functionality that we believe both retail and manufacturer communities would like to see in a collaboration network. The chart here represents not only the Retail-CP functionality, but also those critical areas within high tech direct materials billing and discrete manufacturing component procurement – two other areas with significantly overlapping functionality within Ariba. There are white spaces, to be sure; but we believe we can get to market early with a solid package of collaborative functionality.
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    • 1. Getting More Out of Your Ariba Investment: Leveraging All Spend in Ariba (ASIA) Network Growth Strategies Geeta Menon Sr. Director, Network Commerce Enablement Dennis Glenn, Manager, Procurement Systems Gary Kearns, Director of IT Business Analyst and Quality Assurance Wednesday, March 19, 1:30pm – 2:45pm, Brera 2 #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
    • 2. Topics Introduction MRO Complex Services Direct Materials Insurance Claims Freight Media Wrap Up 2 © 2014 Ariba, an SAP Company. All rights reserved.
    • 3. Summary of ASIA Initiatives $ 486 B Jun 7, 13 ThomasNet (MRO) ● Use ThomasNet to create and manage highquality, level 2 procurement contract catalogs to accelerate network commerce $ 952 B Sep 5, 13 Facilities Mgt ● Manage, repair and operate facilities including buildings, food & beverages, cleaning, furniture & fixtures, and security $ 80 B Dec 6, 13 advertising, public relations, marketing, print and promotion goods & services using Ariba Mar 6, 14 Retail Merchandise Manage planning and procurement of Goods for Sale in the retail industry using Ariba solutions $ 222 B Jul 3, 13 Maximo (MRO) ● Connect customer back end Maximo systems to the Ariba network to unlock MRO spend in asset-intensive industries $ 313 B Direct ● Use blanket purchase orders to manage forecast and consumption based process for direct, bulk and VMI goods $ 191 B Jun 5, 14 Contract Labor ● Use sourcing, time sheet and contract invoice to manage contingent labor, tech, consulting, translation, professional services learning and development through Ariba services procurement solutions $ 113 B through integration of Ariba and 3rd party/SAP solutions $ 91 B road/ rail/ water transportation/ warehousing/ storage using Ariba $ 35 B spend through seamless integration of Ariba and Tymetrix solutions telecom and network spend through integration of Ariba and Tangoe solutions $ 329 B © 2014 Ariba, an SAP Company. All rights reserved. May 1, 14 ICT Support ● Manage procure to pay process related to ICT infrastructure and service desk through integration of Ariba and ServiceNow TBD Jan 2, 14 Fleet ● Manage fleet, dealers, vehicle purchase, conversion, hire and lease using Ariba and 3 rd party solutions Other - Fuel ($ 1.8 B), Utilities, Airlines Catering, Financial Services, Pharmaceuticals, Sub Contract Mfg, Accenture AP, Medical/ MedAssets, Ventyx ($ 10 B), Travel ($ 36 B), HR, Real Estate Construction & Lease, Chemicals, Subscriptions, Capital/Asset Mgt $ 159 B) 3 Feb 6, 13 Tangoe (Telecom) ● Manage procure to pay process related to Jul 10, 14 Tymetrix (Legal) ● Manage procure to pay process related to legal Nov 7, 13 Freight ● Manage sourcing, procurement, invoicing for air/ Apr 3, 14 Training ● Manage training spend including those related to Aug 1, 13 Insurance ● Manage P2P related to property insurance claims Jan 9, 14 engineering, construction and field operations services TBD $ 52 B Oct 3, 13 Engineering, Construction and Field Ops Services ● Manage planned and unplanned spend on Media ● Manage media spend incl. provision of TBD $ 67 B
    • 4. MRO - Goods and Services 4 © 2014 Ariba, an SAP Company. All rights reserved.
    • 5. MRO - Power of Catalogs and ThomasNet MRO is an important, but often overlooked spend category that lends itself well to catalog-driven procurement Accounts for approximately 16% of COGS 50% of MRO is not on-site when needed Catalogs deliver “Consumerized B2B Commerce” Improves buying experience for end users, making it easier and faster to find exactly what’s needed. Focuses procurement to on-contract items, reducing maverick spend and increasing compliance Streamlines Buying and Selling processes Increases stickiness and wallet share for Suppliers Delivers a “perfect PO”, which helps increase the ROI for their existing investment in Ariba Our partner, ThomasNet, develops high-quality content that drives the catalog procurement process Has existed for 112 years and creator of high-quality, attribute-rich, parametrically refinable procurement content Supports Level 2 Punchout catalogs that provide greater flexibility for dynamic and complex pricing and spot buying Category expert and hosting and technology provider Not a distributor/supplier – they don’t “sell” MRO or a GPO or 3rd party negotiator 5 © 2014 Ariba, an SAP Company. All rights reserved.
    • 6. MRO - Maximo Adapter Connect Maximo users to suppliers via the Ariba Network Maximo adapter for connectivity with the Ariba Network for Collaborative Commerce & Collaborative Finance Trading Partners • • • • • 6 Adapter built on Maximo Integration Framework and leverages integration capabilities and error handling Includes necessary object structures, enterprise services, publishing channels, end points and handlers to transact with the Ariba Network Pre-configured Maximo e-Commerce functionality, screen design, escalations/ notifications, and error management Delivered by Maximo/IBM as a services offering - no additional Maximo software to buy Connect Maximo directly to Ariba Network or via Requisition Import into Ariba Buyer On Premise and On Demand © 2014 Ariba – an SAP company. All rights reserved.
    • 7. MRO/Facilities Mgt - Services Procurement Robust Bidding All Spend Types • • Simple/Complex, Offsite/Onsite, Contract/Non-Contract, PO/Non-PO, Labor/Non-labor, Item master/Free text, Planned/Unplanned, Goods/Services Standard or Blanket PO issued based on Contract, Catalog, Bid or Requisition Import from inventory mgt system (autogenerated by reorder point trigger) • • Collaborative Requisitions Responses, evaluation, selection, award, order transmission SOW Management - Milestones, Service Levels • Configurability • Configurable by location and supplier, e.g. invoice approval process only for a photocopying service, vs. SOW, bidding, and invoicing for a repair supplier Supplier Management • • • 7 Survey, Benchmarking and KPIs Attachments - Safety, Insurance certificates On-boarding and off-boarding © 2014 Ariba – an SAP company. All rights reserved. Time & Material Sheets • • • Time card entry, Authorization for Payment and Integration with ERP Table of Rates Compliance to Rate Cards/Contracts/Labor Law
    • 8. Spotlight on GAF Connect Maximo to Ariba Network to Unlock MRO Spend Situation • Long buying process (search/ source maintenance part off paper/ web catalogs); non compliant (based on personal preference) • Invoice reconciliation process for MRO spend was very resource intensive • Only 8% of their invoices did not require some type of intervention. • Receiving both paper invoices as well as through scanning. • High invoice processing costs and delays/ procurement time wasted • Maximo for MRO e.g. power transmissions; PeopleSoft (Aspen) for 3rd party, drop-ship, finished goods e.g. fasteners Solutions • • GAF worked with Ariba to enable business commerce collaboration that improves supplier interactions, while optimizing procure-to-pay (P2P) processes and improving visibility into transactions APC punch-out from Maximo to supports catalog search, source, order from preferred suppliers for better speed and negotiating power • PO flip to Invoice and smart invoice business rules utilized for automatic validation, touch-less processing • Plant users/store personnel handle day-to-day purchases, so buyers only get involved for approvals Results • 800 suppliers are currently transacting on the Ariba Network which represents 60% of the GAF MRO suppliers (80% of spend) • GAF has achieved 66.2% straightthrough processing (STP) - goal is 80%; before the Ariba Network, Aspen allowed GAF to achieve 8% STP. • • Of the invoices that do not straightthrough process, GAF is still achieving a savings since touching electronic invoices is still more efficient than paper-based or scanned invoices. Direct materials is the next focus area At GAF plant sites, Fastenal has MRO vending machines with VMI. Prior to APC, GAF would set up a blanket PO and Fastenal would send monthly summary invoices with attached details. These invoices would be manually reconciled and would take a lot of time. Now, Fastenal can post a quote in APC and GAF can punch out to Fastenal and turn the quote into a detailed line item PO. This allows a line item invoice to be created for each issuance of an MRO supply from the vending machine that then matches automatically to the detailed PO – 100%STP! 8 © 2014 Ariba, an SAP Company. All rights reserved. Company Profile Founded in 1886, GAF is one of North America's largest manufacturers of commercial and residential roofing systems, shingles, flashing, vents, decking, and wrought iron balusters. Ariba Commerce Cloud Features Ariba PO & Invoice Automation and Procurement Content IBM Maximo adapter for POs and Liaison PeopleSoft adapter for invoices
    • 9. Spotlight on GAF - Solution Architecture GAF Firewall PO and Invoice Automation Catalog Shopping Catalog Management Electronic Capture: Web Entry, XLS Upload, EDI and XML Adapter Service Maximo PO Export PeopleSoft POs, COs, Cancel Supplier Supplier Supplier Receipt Export Supplier Supplier Aspen Scanning Aspen 360 Aspen 3-Way matched Invoice 9 © 2014 Ariba – an SAP company. All rights reserved. Indexing Indexed eInvoice Scanned Invoice Aspen Indexing Paper Invoice Supplier
    • 10. Complex Services - Self-Managed or Outsourced Engineering, Construction and Field Operations Services General Services • Cleaning (incl.): • General • Toilets • Internal/ External Glass • Internal/ External Jetty • Dust Mats • Pest control • Security • Landscaping/ Plants • Energy and Water • Waste mgmt. process • Reception/Office Services 10 General + • Fabric (inc) • Painting • Decoration • Tiling (floor & ceiling) • Doors • Janitorial • Locks • Domestic plumbing • Pans • Sinks • Drains • Hand driers • Re-lamping • Normal • Emergency • Illuminated signs • Fit Out © 2014 Ariba, an SAP Company. All rights reserved. On-site Services • HVAC • Lighting control • Electrical services & test • Emergency reactive response • Boiler repairs • Asset maintenance Specialist Services • Installation and Civil Engineering • Terminal structure • Roofing • Lighting protection • Fire &Life Safety • Detection • E/light control • Sprinklers • Fire doors • Electrical services & 5 yearly’s • Asbestos removal • Ductwork cleaning • Access equipment • Escalators/Elevators • Workshop degreasers Off-site Services and Consulting • Asbestos management • PUWER • Structural • Slip testing
    • 11. Complex Services - Invoice against Contract Requester Adapter Field Approver Req  PO PO & Invoice Auto BPO * OC Approval & Workflow Invoice Approval Financial Approver Invoice Status Adjustments Supplier Invoice Status Blanket POs may be masked budgetary POs or unmasked using price masking indicator Blanket POs are supplier level contract allowing supplier to choose from catalog Blanket PO is collaborative invoice flag triggers new contract invoicing approach © 2014 Ariba, an SAP Company. All rights reserved. BPO OC Contract Invoicing Pay Proposal / Schedule 11 Supply Side Price Sheets Catalog Management Supplier Remittance Advice
    • 12. Direct Materials How our customers handle this today • Stock must be optimal in terms of availability and cost ♦ ♦ ♦ • Bulk commodities can leverage Price Basis Quantity ♦ • e.g. if the Price Basis is $123.45 for 1000, the Unit Price calculates to be 0.12345 without needing 5 decimals on the PO and Invoice Scenarios supported today ♦ ♦ ♦ 12 Customers may give replenishment role to vendors (VMI) Inventoried Indirect and MRO share similar characteristics Forecast collaboration, Bill of Material processing, and Delivery Scheduling have to be supported AN - PO/CO – OC – ASN – INV (GR viewable) w/ order collaboration AN - BPO – OC – PO/CO – ASN – INV (GR viewable) w/ forecast collaboration SNC Portal + AN – includes above and more advanced SCM collaboration © 2014 Ariba – an SAP company. All rights reserved.
    • 13. Direct Materials - Industrial Manufacturing Company PO and Invoice Automation for Direct Buyer Cincom Suppliers Procure to Pay for Corporate Indirect High Volume Suppliers MAPICs Low Volume Suppliers JBA In-house Supplier Network Collaboration for Direct 13 © 2014 Ariba, an SAP Company. All rights reserved. Suppliers with Advanced SCM Transactions
    • 14. Direct Materials - Collaborative Processes  Product Design collaboration Contracts and Agreements Management Planning and Forecasting Product Design     Forecast/Order Forecast Collaboration Consumption Based Inventory replenishment (VMI/SMI) Demand signal exchange Shared consumer insight and visibility    Supplier Management Sourcing Contract Management Buying and Order Management    Focus of Discussion Order Collaboration (incl. Subcontract PO) Delivery Schedule Collaboration Invoice and Payment collaboration  Quality Collaboration  Category Management  Transportation Tendering (delivery and Returns)  Promotion Collaboration  Promotion execution (ReX)  Merchandising     Technology, Master Data, Analytics and Intelligence 14 © 2014 Ariba, an SAP Company. All rights reserved. Merchandising and Promotion Execution Transportation & Logistics Track and Trace Freight Invoice collaboration Transportation and Logistics Contracting and Tendering Direct Store Delivery
    • 15. Insurance Claims - Procurement Scenarios • Homeowners Burglary Claim • Claim handler needs to procure replacement of electronics, other household goods for a policyholder who had a home burglary • Homeowners Fire Claim • Claim handler needs to procure replacement of appliances, electronics, household goods and also procure the services of a general contractor to repair the policyholder’s fire-damaged house • Auto Claims – Claim handler needs to procure services of auto repair shop, towing, car rental for policyholder and perhaps for other party as well • Catastrophe Claims • 15 Claim management needs to procure services of multiple independent adjusters, general contractors, generators, other emergency goods to respond to a large storm © 2014 Ariba – an SAP company. All rights reserved.
    • 16. Insurance Claims – Using Ariba Network Goods / Service Providers Notice of Loss Policyholder Insurance Carrier Property Replacement / Service Request Estimates / Inv-Payment Request Contract / Rate Validation Claim Handler Vendor Performance Feedback SAP Claims Management or Non-SAP Claims System Service Payment 16 © 2014 Ariba, an SAP Company. All rights reserved.
    • 17. Freight - Invoice Gap Analysis - Logistics Provider 17 © 2014 Ariba, an SAP Company. All rights reserved.
    • 18. Freight - Network RFQ via SAP TM – Oil and Gas Company 18 © 2014 Ariba, an SAP Company. All rights reserved.
    • 19. • Freight – EDI Invoicing Support – Pharmaceuticals Company Needs US Freight services provided by 47 providers including Fedex 10 of the high-volume providers required EDI support – the others could utilize the web portal or CSV upload for freight invoices • Solution Build a generic (not provider -specific) EDI adapter using Boomi for Freight Provider Invoices - 110 Air, 210 Motor, 310 Ocean Providers log in to Ariba Network and punch-into Invoice Pro to access the supplier-level blanket PO Freight provider Contract Invoices are received in Invoice Pro through the Ariba Network using the Boomi Adapter, for transformation of the Invoice documents from EDI to cXML formats Users can view and approve the Contract Invoice in Invoice Pro Consolidated Invoices need to be received as a “Single Invoice” that references multiple shipments and multiple fees for each of the shipments • • 19 Multiple surcharges/accessorials for the same line (weight surcharge + insurance + special handling + shipping for e.g.) handled as separate service lines Each child service line references the parent service line that it applies to (handled via an extrinsic supplierPartAuxiliaryID © 2014 Ariba, an SAP Company. All rights reserved.
    • 20. Media - Advertising Example – Financial Services Company • • • • • • • 20 Use Services Procurement heavily for Marketing spend Each Marketing campaign is attached to a unique code that holds the budget These codes allow reporting of actual vs. budget and track compliance with suppliers Monthly accrual is also derived across suppliers Rate cards/collaborative requisition process – pass-through, output and milestone items added from contract catalog in response Invoice against PO for billing PO closed upon project completion to prevent further invoicing against it © 2014 Ariba, an SAP Company. All rights reserved.
    • 21. • • • • • Media – Pre-Publication and Market Data Example – Media Company Pre-publication includes Composition, Art, Design, Editorial, Media Tech, Reprints/ Photo, Pre-press, Downloading/ File Conversion, Production Generic driver has custom fields for Complexity, Catalogs are scale-based (corporate policy rates across all suppliers - collaboration used to negotiate actual pricing with the preferred suppliers), rate-based (specific to supplier) or SOW-based (pricing based on milestones/terms) ISBN(s) for the publication and account category(s) to which the commitment and final costs are captured Market Data Subscription (e.g. Competitive, Brokerage, Clearing and Research Data providers like Bloomberg, DACS, IRESS, Thomson Reuters, IRESS, ASX) fixed an recurring fee/ no release contracts allow suppliers to directly invoice against the line items without the need for a PO Usage tracking supported Additional custom fields: Rounds, Colors, Page Size and Dimensions 21 © 2014 Ariba, an SAP Company. All rights reserved.
    • 22. Next Step – Design Partnership Opportunity to provide feature direction and influence product evolution Pre-release access to software Ability to experiment with new features prior to production use Establish a direct line of communication to the product development organization Opportunity to make internal stakeholders aware of and trained on new features Gain early insights into product visions/ideas/ research projects Opportunity to share ideas, solutions and best practices with ecosystem of similar SAP/ARIBA customers and partners 22 © 2014 Ariba – an SAP company. All rights reserved.
    • 23. Next Step - Category Enablement • Engineering • Solution Consulting Product Management 23 Services Customer Engagement Executive (+COE lead) Appointment of 1-3 customer representatives who understand the business process and technology at play Engagement with Ariba/SAP Center of Excellence team: o Kick-off workshop o At peak, weekly 1-hour feedback sessions via o User Centered Design Group © 2014 Ariba, an SAP Company. All rights reserved. o o WebEx/Conference call Ad hoc availability via email or phone to answer questions or provide clarifications Willingness to provide input on functionality At least 1 trip to Sunnyvale/Palo Alto, CA to participate in feedback workshops
    • 24. Wrap Up and Questions #AribaLIVE © 2014 Ariba – an SAP company. All rights reserved.

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