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Struggling to find vendors? Looking to reduce risk in the supplier research process? Looking to increase your productivity or team productivity? In this interactive discussion we will talk about why ...

Struggling to find vendors? Looking to reduce risk in the supplier research process? Looking to increase your productivity or team productivity? In this interactive discussion we will talk about why relying on Google to find new suppliers is a recipe for disaster.

We will go over key best practices for finding new suppliers, assess capabilities and aligning supplier research activities with your company’s compliance guidelines. We also discuss applications for Ariba Discovery in the areas of strategic, tactical and emergent spend segments from MRO all the way through to services.

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Overcoming Obstacles to Finding Vendors: Advanced Ariba Discovery Methods Across all Spend Segments | Ariba LIVE Rome Overcoming Obstacles to Finding Vendors: Advanced Ariba Discovery Methods Across all Spend Segments | Ariba LIVE Rome Presentation Transcript

  • #AribaLIVE Overcoming Obstacles to Finding Vendors: Advanced Ariba Discovery Methods across All Spend Segments Stuart Maron, Discovery Adoption Consultant Ariba Discovery smaron@ariba.com April 8, 2014 © 2014 Ariba – an SAP company. All rights reserved. @ariba
  • Agenda • Challenges Finding Suppliers • Overcoming Obstacles with Ariba Discovery • Best Practice Sharing • Q&A 2 © 2014 Ariba – an SAP company. All rights reserved.
  • 3 Traditional Supplier Discovery Process Sub-Optimal Trading Partner Decisions Time-Consuming Poor Quality of Information Resource-Intensive © 2014 Ariba – an SAP company. All rights reserved.
  • Traditional Supplier Discovery Process 4 Poor Quality of Information • Can they do the job? • In the area I need? • By the required date? • For the needed amount? • At the right quality? • In the colors I need? • Do they have the right certifications? • Within budget? Resource-Intensive • Highly manual • Time-intensive • Limited competition • Unreliable findings • Limited scope • Questioning quality • No guarantee for success • Figure out potential suppliers • Research websites • Search for contact details • Find right contact person • Call, leave a message, call again… • Find out if they can do it • Possibly get a quote Time-Consuming © 2014 Ariba – an SAP company. All rights reserved.
  • Traditional Supplier Discovery Process 5 Source: Aberdeen Group E-Sourcing Obtain capability information 6% Gather market data 8% Identify suppliers 10% Make contact 5% Qualify suppliers 12% Develop RFP 12% Negotiate 15% Analyze RFP Responses 15% Finalize contract terms 8% Consumes about 30% of sourcing resources © 2014 Ariba – an SAP company. All rights reserved.
  • 6 Introducing: Ariba Discovery • Quickly discover and qualify new sources of supply  Discover new suppliers in days or hours, not weeks  Compare multiple bids for every project  Easily import suppliers into other Ariba solutions Save up to 75% of cost Save up to 90% of time Lower spend by 15% *Identifying and qualifying suppliers. Based on documented customer experiences ** 2011 Ariba GSO Case Study© 2014 Ariba – an SAP company. All rights reserved.
  • Find relevant new suppliers faster and easier than through traditional search methods 7 • Use Ariba Discovery for free in 3 easy steps How It Works © 2014 Ariba – an SAP company. All rights reserved.
  • Analyze, Discover, Qualify Create Posting on Ariba DiscoveryConduct Analysis on Ariba Discovery RFP PhaseRFI PhaseSupply Market Analysis  Create a posting in just a few minutes  Target all matching suppliers (or invite selected)  Share requirements publicly  Receive offers from qualified suppliers  Compare all offers in single location  Preview suppliers by category or keyword  Review supplier profiles  Message interesting suppliers for more details  Include relevant suppliers in Posting  Find suppliers with existing transacting relationships on the Ariba Network  Review rich supplier profiles with Ariba Network activity data  Access objective third-party financial and risk information Planned Purchases Unplanned Purchases Fully integrated with Ariba Sourcing™ On-Demand and Ariba Procurement © 2014 Ariba – an SAP company. All rights reserved.8
  • Insight-Rich Supplier Profiles • All key details on a single page:  Ariba Network activity data  Financial and risk information  Diversity qualifications  References 9 “Having access to suppliers already transacting on the Ariba Network makes things much easier.” Kory Manley, Director, Strategic Sourcing, Caesars Entertainment
  • 10 Key Benefits Fast & Easy Interactive Effective Trusted Integrated It’s Free! Save up to 90% time and 75% cost finding and qualifying suppliers Lower your cost by 15%, reduce lead time, and improve quality Communicate with suppliers in real time, and make better decisions Join other buyers who post over $5B USD per year in business volume Easily bring suppliers into your Ariba Sourcing project from the start Post your buying needs in 10 minutes, and get matched to suppliers at no risk © 2014 Ariba – an SAP company. All rights reserved.
  • Integration with Ariba Sourcing • Easy access directly from Create menu  “Market Research Posting” (RFI) or “Quick Quote Posting” (RFP) © 2014 Ariba – an SAP company. All rights reserved.11
  • Integration with Ariba Procurement 12 Sourcing Initiatives #AribaLIVE • Easy access, use with or without a requisition  To create posting without requisition, click on “Create” menu and select “Quick Quote Posting”, then click on “Post Now” button  Create requisition under “Create Non-catalog Item”, then click on “Start Now” button to create a posting
  • Integration with SAP ERP System • Ariba® Spot Quote for easier supplier identification and qualification:  ERP system generates automated RFQ and publishes it in Ariba Sourcing  Suppliers (invited/matched by Ariba Discovery) provide responses through Ariba Sourcing  Responses are sent back automatically to the source system © 2014 Ariba – an SAP company. All rights reserved.13
  • More Benefits from SAP Integration • Ariba® Spot Quote – Benefits:  Reduction in processing time for spot quotes through highly automated process  New supplier discovery via Ariba Discovery provides increased saving potentials  Quick ROI due to out-of-the-box configuration of templates/integration adapters, plus zero implementation and training  Bundled customer support for supplier participants and Sourcing administrators  Robust out-of-the-box integration with SAP ERP and Oracle E-Business Suite © 2014 Ariba – an SAP company. All rights reserved.14
  • Buyer Successes in Key Categories 15 Reduced time to find suppliers from 4-8 weeks to days or hours Up to 58% cost savings through competitive bidding Solves challenges by tapping into supplier expertise Connects with suppliers in a few days instead of weeks 15% cost saving across different categories 40% productivity increase Retail Manufacturing Chemicals Received first responses within 24 hours 20% cost savings for packaging Delivered savings 3x initial investment in Ariba Sourcing © 2014 Ariba – an SAP company. All rights reserved. Reduced supplier identification processes from 2 weeks to 1 day Achieved price reductions of 22-30% for its customers Deliver maximum value to its customers Services
  • • Quickly and easily find suppliers for every need on Ariba Discovery  Obstacle 1: New commodities  Obstacle 2: Low-cost countries  Obstacle 3: Re-shoring  Obstacle 4: Diversity & Green  Obstacle 5: Rush orders  Obstacle 6: Fostering innovation Overcoming Obstacles © 2014 Ariba – an SAP company. All rights reserved.16
  • Obstacle 1: Finding Suppliers for New Commodities • New or additional suppliers are needed sometimes  New product launches  Expansion into new markets  Existing suppliers not available  Supplier consolidation efforts © 2014 Ariba – an SAP company. All rights reserved.17
  • Overcoming Obstacle 1: Finding Suppliers for New Commodities • Ariba Discovery has grown exponentially with more suppliers than ever before  20,000 product and service categories © 2014 Ariba – an SAP company. All rights reserved.18 2012 2013 2014 500K 750K 1.2M Agriculture, Farming & Fishing, 1% Construction & Engineering, 11% Culinary Equipment, Food & Beverage, 3% Education, Organizations & Clubs, 3% Electronics & Electrical Components, 5% Energy, Drilling & Mining, 2% Facilities & Maintenance, 7% Industrial Equipment, 5% Industrial Services, 5% IT & Telecomm, 9% Marketing & Communications, 7% Medical, Healthcare & Lab Equipment, 4% Office Supplies & Printing, 4% Other Products, 5% Paper, Packaging & Containers, 3% Parts & Components, 5% Professional Services, 12% Raw Materials & Chemicals, 4% Vehicles, Transportation & Logistics, 5%
  • Overcoming Obstacle 1: Case Study Finding Suppliers for New Commodities • Used Ariba Discovery to easily find and vet local, large beverage distributors that were already supplying other casinos  Received multiple responses despite very targeted search criteria, saved time by eliminating unqualified suppliers © 2014 Ariba – an SAP company. All rights reserved.19 “Ariba Discovery has been helpful for me because I took over a different region and category with a learning curve. Using Ariba Discovery, I was able to easily find and vet suppliers in this new category.” Tim Thompson, Strategic Sourcing - National Beverage Manager at Caesars
  • Obstacle 2: Finding Low-Cost Country Suppliers • Outsourcing, off-shoring, or moving production abroad can bring cost savings and other benefits  Lower labor costs  Higher level of expertise (e.g. IT)  Shorter lead time (e.g. transportation)  Lower turnover © 2014 Ariba – an SAP company. All rights reserved.20
  • Overcoming Obstacle 2: Finding Low-Cost Country Suppliers • International Supplier Base  Over 30% of suppliers are head-quartered outside of the United States  More than 36% of suppliers have global reach in addition to serving locally and regionally  Review suppliers’ credit and risk scores © 2014 Ariba – an SAP company. All rights reserved.21 Other, 5% Asia-Pacific, 15% Europe, Middle East & Africa, 10%North America, 69% Latin America, 1% Geographic distribution of suppliers “The opportunity to get vendors in the game by using Ariba Discovery is big for us. It’s a good tool – whether you’re in the Americas, EMEA, or Asia Pacific – as it allows us to look well beyond local vendors. It helps grow the maturity of the buyer organization and capture the efforts in building commercial bid analyses.” Brian Bender, Sr. Director Global Purchasing, J.M. Huber
  • Overcoming Obstacle 2: Case Study Finding Low-Cost Country Suppliers • Discovered highly competitive supplier  Cut the time it took to find low-cost country suppliers of banquet chairs by 50% © 2014 Ariba – an SAP company. All rights reserved.22 “We already have many suppliers in our database, but if you have been using the same suppliers for years and don’t want to go elsewhere, you may not be using the right or the best suppliers.” Celia Parsons, Category Manager – Indirect and Professional Services, Caesars
  • Obstacle 3: Finding Local Suppliers (Re-shoring) • US is poised for a large growth in exports as manufacturing moves stateside • Exports have reached their highest point in 50 years4 • Favorable wage, natural gas, and electricity prices • Increased wages in export-heavy developing countries • US shipping advantage along important trade routes © 2014 Ariba – an SAP company. All rights reserved.23
  • Overcoming Obstacle 3: Finding Local Suppliers (Re-shoring) • Through Ariba Discovery, you can find high-quality suppliers that may allow you to move production back home  Many suppliers are already transacting on the Ariba Network  Conduct geography-based market and supply research  Evaluate shipping routes and other specific requirements  Assess skills and resources through detailed RFI/RFP process  Achieve cost savings through shorter lead times and reduced shipping rates  Widen supply opportunity © 2014 Ariba – an SAP company. All rights reserved.24
  • Overcoming Obstacle 3: Case Study Finding Local Suppliers (Re-shoring) • Discovered highly competitive local supplier of iron-on products and moved entire production from China to US  Achieved 34% cost savings  Reduced lead time by 75%  Improved product quality  Increased marketability © 2014 Ariba – an SAP company. All rights reserved.25 “Posting my buying needs on Ariba Discovery has been a huge success. I was able to discover a supplier that was right below my nose. Not only did I achieve huge savings and significantly improved quality, I can now market our products as “Made in America” – it’s a win all the way around.” Leanne Melton, Strategic Supply Base Manager, Plaid Enterprises
  • Obstacle 4: Finding Diverse & Green Suppliers • Complying with diversity requirements can be a burden and result in extra cost  Need to research and invite diverse suppliers  Diverse suppliers may not provide best quotes © 2014 Ariba – an SAP company. All rights reserved.26
  • Overcoming Obstacle 4: Finding Diverse & Green Suppliers • Find over 80,000 diverse suppliers  Find small businesses that are already on the Ariba Network and reduce on- boarding efforts  Highlight diverse and green requirements in postings or during preview and get matched to diverse suppliers  See available qualifications on supplier profile pages © 2014 Ariba – an SAP company. All rights reserved.27
  • Overcoming Obstacle 4: Case Study Finding Diverse & Green Suppliers • Receives 5+ supplier responses on average  Reduced cycle time to find suppliers by 50% and costs by up to 10%  Streamlined supplier enablement for P2P, suppliers already on Ariba Network  Met diversity requirements: – CO2: woman-owned, local supplier provided most competitive offer – Baked goods: minority-owned supplier, closed deal within 30 days © 2014 Ariba – an SAP company. All rights reserved.28 “It doesn’t take much time to do, and you may just find that there are more suppliers than you think, especially minority, women and disadvantaged businesses. […] We received strong bids from diverse suppliers through Ariba Discovery. The best price came from a local, woman-owned supplier. This is a huge win – without Ariba Discovery, it would have been very challenging to find this supplier.” Kory Manley, Strategic Sourcing Process & Compliance Manager, Caesars Entertainment “It’s now an essential piece of our regional supplier diversity outreach program.” Jessica Rosman, Director of Supplier Diversity and Sustainability, Caesars Entertainment.
  • Obstacle 5: Finding Suppliers for Rush Orders • Even with strategic sourcing processes in place, you may have urgent buying needs  Supply chain disruptions (e.g. natural disaster)  Unanticipated demand  Quality issues  Supplier issues (e.g. illegal practices) © 2014 Ariba – an SAP company. All rights reserved.29
  • Overcoming Obstacle 5: Finding Suppliers for Rush Orders • Use Ariba Discovery to quickly find suppliers and get quotes, especially in the Manufacturing arena  Run rapid RFI/RFP to respond quickly to market changes  No need to search for suppliers – let Ariba Discovery do the work for you  Creating a posting takes only minutes, get first supplier responses within hours  Deep pool of OEM and MRO suppliers through integration with ThomasNet – Access to ThomasNet directory of over 600K suppliers from Ariba Discovery – Detailed product information for 100 million+ parts, components, materials and more – Greatly expanded match and response rates for direct and MRO category postings © 2014 Ariba – an SAP company. All rights reserved.30
  • Overcoming Obstacle 5: Case Study Finding Suppliers for Rush Orders • Typically receives bids from 7-15 for a single sourcing event  Reduced sourcing lead time from several weeks down to a couple of days  Alleviates local capacity issues and enhances productivity by leveraging available resources outside the plant  Leveraging Ariba Discovery for large percentage of capital equipment purchases to receive multiple competitive offers © 2014 Ariba – an SAP company. All rights reserved.31 “Ariba Discovery is a great spot buying tool for low-dollar MRO parts and accessories. It provides buyers for spot buys of non-catalog items with an opportunity to easily conduct market research and identify qualified suppliers.” Niclas Truedsson, Sr. Manager CAPEX, J.M. Huber
  • Obstacle 6: Finding Innovative Suppliers • Many sourcing professionals don’t have technical expertise in the commodities they are charged with.  Product development  Prototyping  Disruptive technology  Engineering support © 2014 Ariba – an SAP company. All rights reserved.32
  • Overcoming Obstacle 6: Finding Innovative Suppliers • Through Ariba Discovery, find suppliers who are  Experts in their fields  Already transacting with other buyers with similar needs • Engage with suppliers  Conduct pre-RFI analysis and contact relevant suppliers  Publish RFI or RFP postings to gather more feedback  Experience no-risk process to foster product innovation – Leverage supplier community’s deep knowledge and expertise – Find new solutions for solving sourcing challenges © 2014 Ariba – an SAP company. All rights reserved.33
  • Overcoming Obstacle 6: Case Study Finding Innovative Suppliers • Created 6 RFPs, received about 10 bids on each, and found 5 new suppliers through Ariba Discovery  Discovered suppliers who provided strategic insight to influence product development  Collaboration resulted in more cost-effective solution ($1>$17) and more predictability © 2014 Ariba – an SAP company. All rights reserved.34 “Ariba Discovery saved me at least a couple of days worth of time. It has been a huge advantage. Having done a few RFPs on Ariba Discovery, I can now justify time spent on Ariba Discovery as a solid investment. I am confident I will get excellent responses” Ian Thomson, Head of Business Development, Koozoo
  • How to Get Started 35 • Getting started with Ariba Discovery is easy: 1. Contact us. We will show you how to get the right process set up. 2. Onboard and train team members. Assign user accounts and access permissions. 3. Try different categories. Create postings for different categories to increase success. © 2014 Ariba – an SAP company. All rights reserved. Ariba Procurement (P2P) Ariba Discovery (Website) Ariba Sourcing (On-Demand, On-Premise) discovery.ariba.com
  • Q&A 36 © 2014 Ariba – an SAP company. All rights reserved.
  • © 2013 Ariba, Inc. All rights reserved.37 Helpful Resources • Resources on Ariba Discovery for Buyers  Live Demo Registration http://www.ariba.com/resources/live-demo/ariba- discovery-for-buyers  Buyer Posting Tips Datasheet http://exchange.ariba.com/docs/DOC-2366  Ariba Spot Buy (Tactical Spend) Datasheet http://exchange.ariba.com/docs/DOC-2591  Ariba Discovery Customer Presentation http://exchange.ariba.com/docs/DOC-2101  Quick Start Guide for Ariba Sourcing Buyers http://exchange.ariba.com/docs/DOC-2592  Quick Start Guide for Ariba P2P/P2O Buyers http://exchange.ariba.com/docs/DOC-2361  Quick Start Guide for Ariba Discovery Website Buyers http://exchange.ariba.com/docs/DOC-2517
  • Thank You! 38 © 2014 Ariba – an SAP company. All rights reserved.
  • How Ariba Discovery Works © 2014 Ariba – an SAP company. All rights reserved.39
  • How Ariba Discovery Works © 2014 Ariba – an SAP company. All rights reserved.40
  • How Ariba Discovery Works © 2014 Ariba – an SAP company. All rights reserved.41
  • How Ariba Discovery Works © 2014 Ariba – an SAP company. All rights reserved.42
  • How Ariba Discovery Works © 2014 Ariba – an SAP company. All rights reserved.43
  • Standard Free to join No annual fee Advantage $449 USD / year Less than $38 USD / month Advantage Plus $1,999 USD / year Less than $167 USD / month Create a company profile and appear in buyer search results Included Included Included Allow buyers to contact you and be able to respond to them directly 20 messages per year 50 messages per year Unlimited Get a premium profile and prioritized listing in buyer search results Included Included Promote your company to active buyers with a ProfilePitch 1 standard ProfilePitch 5 ProfilePitches Unlimited ProfilePitches Network with buyers at Ariba LIVE with a free ticket Included Get easy access to active buyers Receive email notifications when new RFI/RFQ postings match your business Included Included Included View buyer RFI/RFQ postings online and ask questions Included Included Included Respond to RFI/RFQ postings and collaborate with buyers Response fee by deal size Free up to $10,000 $19 up to $50,000 $39 up to $100,000 $79 over $100,000 Included Included Maximize your presence Receive priority customer service and expert advice to increase your success rate Included 44 Ariba Discovery Supplier Subscriptions Sales tax not included. Get easy access to active buyers Maximize your presence Showcase your company © 2014 Ariba – an SAP company. All rights reserved.
  • 45 Maximize Your Impact as a Buyer 1. Add critical details in your posting to allow faster seller response 2. Give seller feedback on their bidding process and your decision 3. Provide more guidance to sellers through Q&As and messages 4. Review seller ratings and customer references 5. Share your buyer portal URL broadly to increase awareness • Top 5 things to do to get what you need fast © 2014 Ariba – an SAP company. All rights reserved.