Pay It Forward: How AribaPay Can Accelerate Your E-Commerce Strategy by Increasing Adoption and Removing Risk in Your B2B Payments

Pay it Forward - How AribaPay Can Accelerate Your E-Commerce Strategy
by Increasing Adoption and Removing Risk in Your B2B Payments
Chris Talbot, Director, Procurement, T-Mobile
Ken Crouse, Owner, 487 Consulting Services
Drew Hofler, Sr. Director, SAP Ariba / March 15, 2016
Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Chris Talbot
Director, Procurement,
T-Mobile
Ken Crouse
Owner, 487
Consulting Services
Drew Hofler
Sr. Director, SAP
Ariba
Public

Session agenda
Welcome and Introduction to AribaPay
T-Mobile – A Procurement view of Payment
487 Consulting – A Supplier’s Perspective on Payment
Panel Discussion / Q&A

Consumer payments are simple…
Single Transaction
Payment at Point of Purchase
Payment at Time of Purchase
Required Data Captured
with Payment

…B2B payments are not
Multiple invoices in
single payment
Payment much LATER
Credits, Adjustments,
Discounts…
Required data must be
added separately

merchant acquirer
B2B payments are opaque, complex, and risky
receipts
purchase order
sales order
invoice
order confirm
ASN
paper  email  portal
P2P & payment data
Buyer
bank
Supplier
bank
lockbox remittance report
Buyer ERP
check print & mail mail to lockbox
check
file
check
processor
sensitive bank information
Store bank
account #
Send bank
account #
ACH
file
ACH debits & credits ACH credits
FED
ACH
Where
is the
payment
What
is the
payment
for
Why is
payment less
than invoiced
Why 3%
fee for on
time
payment
charge
report
funds settlement charge file

Buyer
Payment
instructions
Rich remittance
Track and trace
payment status
Bank account
management
Invoice status
Purchase orders,
invoices,
contracts, and
receipts
Supplier
Buyer
Bank
Supplier
Bank
Debit Credit
Integrate Payment with Data
POs, Invoices,
Contracts,
Receipts
B2B payments future: AribaPay – Certain. Secure. Simple.

Next-generation payment solution and service
• Lower cost to collect/
maintain bank account
data and pay suppliers
• Reduce “first-line” A/P
help desk inquiry calls
• Single P2P process
visibility for buyers
and suppliers
• Electronic payment
supports working
capital initiatives
• Verify supplier data
• Data stored in external
I/T environment
• Rich remittance
detail to easily
apply funds
• Suppliers can go
online or call 24 x 7
for inquiries/support
AribaPay allows buyers to securely pay suppliers via the Ariba Network, while
eliminating the need to maintain supplier bank account information and reducing
supplier payment inquiries.
Lower
A/P Costs
Buy Right,
Pay Right
Security, Eliminate
Fraud, Reduce Risk
Real Supplier
Value

AribaPay
Chris Talbot,Director- Procurement
AribaLive2016
T-MobileConfidential

18
18
Quick Facts
Connection is good.
 In a world full of busy and fragmented lives, we at T-Mobile USA, Inc., have this idea that wireless communications can help. The
value of our plans, the breadth of our coverage, the reliability of our network, and the quality of our service are meant to do one thing:
help you stick together with the people who make your life come alive. That's why we're here.
Headquarters:
 Bellevue, Washington
Coverage:
 T-Mobile USA is a national provider of wireless voice, messaging, and data services capable of reaching over 293 million Americans
where they live, work, and play. Around the country, our Personal Coverage Check gives customers a clear picture of their local
coverage.
Number of Employees:
 Approximately 45,000 employees.
Ownership:
 T-Mobile US, Inc. (NYSE: "TMUS") is a publicly traded company.
T-MobileUS, Inc.

19
19
Scenario:Expiring ACH Software
The existing automated clearing house (ACH) software used byT-Mobile topay
vendors (Xign by JPMorganChase) was set toexpire in October 2014. Also,
thousands ofvendors were still being paidbypaper checks. To replace these
payment methods, it was necessary forT-Mobile tomigrate all of its active
vendors tonew ACH solutions, including AribaPay
Issue
T-Mobile is more easily andefficiently able topay vendors with AribaPay,
resulting in greater satisfaction throughout the Procure-to-Pay (P2P) value
chain. Additionally, the automated process eliminated the need tosend paper
checks, significantly reducing cost in the long term
Impact
LegacyProcess
Vendorsubmitsinvoice toT-Mobile for
services rendered
Invoice isreceived andprocessed byT-
MobileAccounts Payable(A/P)
Dependingonvendor preference,A/P
cuts acheck, orissues anelectronic
paymentthroughXign
Checkmust betakentothebanktobe
deposited

20
20
Solution: Migrate as many Vendors as possible to Electronic
Payments
Deployment
Technical Set-Up Buyer Onboarding Supplier Onboarding
WorkstreamDetails
Technical Team Treasury,A/P,Procurement A/P,Procurement
Using the Integration Toolkit, AribaPay andthe
Ariba Network areintroduced intothe existing
T-Mobile payment system
Supplier communications arecreated to
articulate tosuppliers the advantages of
migrating toAribaPay,andprogress is tracked
rigorously
Aconcrete migration timeline andstrategic
supplier outreach plan allowT-Mobile totrack
the progress ofhigh-profile vendors that require
moreaggressive pursuit

21
21
T-Mobile USA primary vendor
payment method.
 3266 Suppliers Utilizing the system (80% of invitees to date).
 More than $14 Billion in payments since inception in Late 2014.
 Enabled 1364 Suppliers in first 6 months
 Enabled ~2000 in first 9 Months
 3266 Enabledto date
AribaPaySuccess

22
22
 Vendor enablement process can be time consuming,
hence it is important to develop a robust vendor
outreach strategy and reach out to vendors often
 It is imperative to do an internal stakeholder (business
unit) alignment early in the process and report
progress on a regular basis as vendors will reach out
to their internal contacts with questions and concerns
 Getting accurate vendor contact information can
be challenging
 Internal supplier relationship managers are essential
in the onboarding process, as they generally interact
most frequently with vendors
 Vendor outreach should be customized to align with
vendor’s importance, i.e. strategic and high priority
vendors will require personalized communications
Lessons Learned

23
23
 Suppliers Value Payment Visibility
 Payment pulls along PO/Invoice
Adoption
 Value to multiple internal stakeholders
 True P2P Control within single platform
 Single user experience
(Buy & Sell side)
 Single “throat to choke” with 1 vendor
 Full P2P on Ariba + SAP base =
Best of Breed
Why Payment Matters to Procurement

487 Consulting
Ken Crouse, Principal Consultant & Owner

487 Consulting Services, LLC is a Sacramento-based professional
services firm providing real estate leasing, entitlement and building permit
services to the wireless communications industry for nearly twenty years.
The firm’s Principal Consultant, Ken Crouse, has been engaged in a
variety of real estate projects throughout the western United States over
his 40-year professional career.

How I got started with the AribaPayTM
solution
Started
Receiving payments
2014
Started
invoicing
Set up
account in Q4
Sept
2015
Oct
2015
Jan
2015
Attended
webinar

Invoice to payment process before SAP Ariba
Process: Bill to Receiving Payments (Net 60 terms with customer)
Time spent
on invoices
Prepare
Mail/fax
Follow up
Resubmit
Reconcile
Before After
Generated a
dozen invoices
in 45minutes
ONEminute
Acknowledgment
back

Benefits of AribaPay
individual
invoices
440
separate
tasks
Did not have
to go back
on any invoices
250 Significant
revenue

Results
the volume
1/2 the time
2x
Excess of
of company’s
business
75%
in

Dedicated
customer service

• Greater efficiencies
• Improved relationships with customers
• Confidence to predict/apply cash flow

Jump in with
both feet —
it’s not hard
Once it’s
operational it’s a
simple process
Would cringe
about going
back

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34

Thank you Contact information:
Ken Crouse
Principal Consultant & Owner
Email: 487consulting@gmail.com
Phone: 916-220-0085
Twitter: @487Consulting

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Pay it Forward - How AribaPay Can Accelerate Your E-Commerce Strategy by
Increasing Adoption and Removing Risk in Your B2B Payments
Chris Talbot, Director, Procurement, T-Mobile
Ken Croce, Owner, 487 Consulting Services
Drew Hofler, Sr. Director, Ariba / March 15, 2016
Public

Pay It Forward: How AribaPay Can Accelerate Your E-Commerce Strategy by Increasing Adoption and Removing Risk in Your B2B Payments

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Pay It Forward: How AribaPay Can Accelerate Your E-Commerce Strategy by Increasing Adoption and Removing Risk in Your B2B Payments