The Extraprise:B                            CC                                          Using Collaborative Commerce      ...
Agenda    •   Air Liquide    •   Understanding the Extraprise                  What is the Extraprise and why does it matt...
3   © 2012 Ariba, Inc. All rights reserved.
Air Liquide, the World Leader in Gasesfor Industry, Health and the Environment                                            ...
The World Leader in Gases for…                   Industry                           Health        Environment             ...
European Procurement Target Operating    Business Model    OBJECTIVES                                                     ...
Results and Benefits    • User-friendly application: Good feedback from End Users    • Compliance enabler on European or l...
European E-Procurement at AL from    January, 2011                         Ariba APC (1 realm)                            ...
B@ALi2 Solution Overview                                                                                                  ...
Deploying B@ALI2: Pre-requisites     and Organisation     •      Minimal pre-requisites to start the project              ...
B@ALI2 – Processes Scenario      Air Liquide B@ALi2 Welcome Page               HERMES categories               Key word...
B@ALI2 - Success Story     •     Feedback on 2011 deployments           Benefits                    User friendly applicat...
European Procurement Organization         European Procurement Platform                                    European IT / I...
Centralization of Procurement Referentials     •     Managing Referentials for European affiliates                        ...
Hindsight     •     Hindsight                    Ariba P2O (integrated with JDE, Movex, SAP)                        –     ...
Hindsight     •     Releases and Support Services                    New release                        –     Copy of Prod...
Main Strength / Weaknesses / Pre-requisites     •     Main strength (before / after project)                    Good excha...
Next Steps         • Build an E-Procurement roadmap         • Continue to deploy B@ALi2         (Our European e-procuremen...
Agenda     •   Air Liquide     •   Understanding the Extraprise                   What is the Extraprise and why does it m...
eProcurement Is No Longer New                                          No plans to purchase or deploy                     ...
The Rise of the Networked Enterprise –     Enabled by Collaborative Technology                                            ...
Inefficient Processes Between Companies Hinder Results                    The Extraprise                                  ...
The Extraprise Is about Understanding     Your Business Partners                                                1 Buyer   ...
Making 1-to-1 Connectivity Messy     for Even Just a Few Suppliers                                                        ...
And to Extend Influence to All of Your Suppliers Becomes Impossible                                                       ...
So eProcurement Challenges Remain                 •        Multiple instances of ERP platforms                 •        Du...
Managed Spend Underperforms                                               61%27   © 2012 Ariba, Inc. All rights reserved.
Spend Management Is Falling Short                      Incomplete coverage of spend types / catalog categories in         ...
And You’re Pushed Harder to ChangeAccording to CFO Research…                                                              ...
Top Initiatives Are Reducing Costs and Collaboration30   © 2012 Ariba, Inc. All rights reserved.
The Personal Version of Extraprise                                                          Communication                 ...
A Business Commerce Network     Is the Gateway to the Extraprise                                                          ...
Value of the Extraprise33   © 2012 Ariba, Inc. All rights reserved.
Buyers Win                   Reduce process costs                                                                Reduce Pr...
And Suppliers Win…        •     $10M in annual transactions        •     Support to 25 Customers                          ...
Network Development Is Strategic…                                                   Wave I                                ...
AND… Considers All Spend Types                Spot Buys           Simple Services        Goods with Options               ...
Extraprise = Improved Efficiency     across the Entire Global Business     Environment                                    ...
Real-World Results39   © 2012 Ariba, Inc. All rights reserved.
Results          Suppliers – 1st 12 months – 500 active relationships          (150 new suppliers through PO quick enablem...
Results     •   Implemented with:                   100+ suppliers                   15 catalogs                   1,282 u...
Results     •    Addressable spend down 24% vs. 2008 baseline     •    Spend down 3.6% most recent YTY     •    Spend Unde...
Results         Integrate w. PeopleSoft                                                          E-Procurement Implementat...
Five Steps to Extraprise Success     •   Obtain Executive Sponsorship     •   Clarify Vision (Network Strategy, Training) ...
Resources     •      Aberdeen Benchmarking Report:              http://resourcecenter.aberdeen.com/GL/27-procure-to-pay/  ...
Share This Session…NOW…from     your mobile!     •   All presentations are posted:                   Guidebook mobile app ...
Q&A                       Contact info:                       John Lark JLark@ariba.com47   © 2012 Ariba, Inc. All rights ...
E-procurement•    Back-up slides48
Integration = Files Tranfer PO &GR•   2 information are exported from B@ALI2 :         Purchase Orders (PO) & Good Receipt...
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The Extraprise - Using Collaborative Commerce to Extend the Value of Your ERP and Maximize Supply Chain Performance

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  • This desire to work more effectively together is giving way to a major trend that is changing the way companies do business. This trend is something McKinsey calls the “Networked Enterprise,” and buyers and sellers who have been early to adopt it are transforming their trading partner relationships. And they are gaining huge business benefits: increased revenue, better access to knowledge through shared knowledge, higher margins. Becoming a networked enterprise requires a transformation of your people, processes and technology.
  • Taking this paradigm of a networked economy, from a B2B perspective, there’s lots of room to grow in the Networked Economy.Companies have spent billions of dollars in personnel, reengineering, and systems over the past two decades to improve their internal process and information flows within their four walls. These “Islands of Efficiency” are disconnected from the outside world and fall down where it matters most – when buying, selling, or exchanging cash with other businesses. For example:80% of POs, Invoices, and other transactions still take place offline…Additionally, Marketing Sherpa has reported a decrease of 50% in B2B marketing impact over the previous year as people utilize more consumer driven sources of information such as Google and blogs and not the marketing/sales materials produced by your companyAlso, Aberdeen Research reports that 5 – 9% of revenue is leaked due to contract compliance issues and other inefficienciesLots of paper…lots of people…and lots of inefficiency.All this inefficiency costs business $650 billions per year in missed sales opportunities, higher operating and supply chain costs, and slower cash flow cycles.
  • Many buyers don’t even think about the fact that often times the biggest users of their procurement system are the suppliers. In fact, in some cases the suppliers out-number the buyers by 20 to 1. This is why, if the system isn’t one that is scalable and helps your suppliers, it’s likely you’re going to stall out after Waves 1 or 2.Also, be sure to ask yourself how you can handle key processes such as:Shouldn’t you automate order confirmations, delivery status, and order cancellation notices?How do you handle a stuck order?How do you know which orders have failed?
  • To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well
  • To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well
  • In a recent CFO study, more than half of them are increasing cost savings goalsMany of these target more than 5% savingsYet only 7% of Finance Execs feel Procurement brings good ideas to the table
  • The networks we use to run our daily lives share these three components of TECHNOLOGY, COMMUNITY AND CAPABILITIES.
  • To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well
  • Across both Ariba customers and analysts, we see that companies who truly drive adoption of the solutions can significantly exceed the wishes of their executivesNote to AE - In the chart on the left, the letters represent: R = Republic Services A = Axxess Financial L = Liberty MutualBe aware that many companies do NOT want to disclose actual savings because they view it as a competitive advantage.
  • Talk to one or 2 stories that seem most relevant to your prospect
  • You don’t have to do it all at once, but you must start. Many can support Wave 1, some even Wave 2; but it’s only the best in class companies that ever get to Wave 3, which just happens to be the area of biggest savings that really matters to the CFO’s
  • Most companies have only about 10-15% of their spend that can easily be categorized and managed by your traditional or simple procurement solutions. As a result, nearly 85% of the spend is never captured, and the savings on all that is missed. So it’s key to ask yourself, what is your strategy around… (read spend types as appear)(Proceed with Slide Buid)And don’t forget the elements that are needed to keep all these up and running with the current information that your users must have
  • To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well
  • The Extraprise - Using Collaborative Commerce to Extend the Value of Your ERP and Maximize Supply Chain Performance

    1. 1. The Extraprise:B CC Using Collaborative Commerce to Extend the Value of Your ERP and Maximize Supply Chain Performance Najib Zouggar - Air Liquide E-Procurement Manager & Supplier Pole Coordinator Valeris Villard - Air Liquide European Referential Analyst & E-Catalogs team leader John Lark Marketing Director - Ariba© 2012 Ariba, Inc. All rights reserved.
    2. 2. Agenda • Air Liquide • Understanding the Extraprise What is the Extraprise and why does it matter? Real-World Results Steps to Success2 © 2012 Ariba, Inc. All rights reserve.
    3. 3. 3 © 2012 Ariba, Inc. All rights reserved.
    4. 4. Air Liquide, the World Leader in Gasesfor Industry, Health and the Environment Present in 80 countries 43,600 employees Revenue €13.5 billion4 © 2012 Ariba, Inc. All rights reserved.
    5. 5. The World Leader in Gases for… Industry Health Environment  Forreducing polluting emissions  For hospitals • For a wide range of  Forproducing industrial processes  Forhomecare the energies of for customers: patients tomorrow energy, metals, food, c  Forhygiene and hemicals, pharmaceuti disinfection cals, automotive …5 © 2012 Ariba, Inc. All rights reserved.
    6. 6. European Procurement Target Operating Business Model OBJECTIVES Sourcing Methodology Sourcing  Category Managers Improving  Analysts  P&L Savings Savings  Compliance auditor  Compliance to forecasted European agreements Procurement Family Policy Accounting Requisitioning Referentials Guide users Roles & processes to the right supplier (Suppliers, Catalogs) segregation  Requesters Receipt Goods PROCURE TO PAY according to  Requisitionners Compliance Group Audit Create PO Improving Process efficiency Invoice Receipt / PO Savings  Accountants Realized6 © 2012 Ariba, Inc. All rights reserved.
    7. 7. Results and Benefits • User-friendly application: Good feedback from End Users • Compliance enabler on European or local agreements • Requisitioning process under Procurement control • Control of « Out of catalog » purchase by Procurement Requisition • 70% per-PO Cost Reduction ♦One PO costs 25€ using e-procurement instead of 90€ in the past.7 © 2012 Ariba, Inc. All rights reserved.
    8. 8. European E-Procurement at AL from January, 2011 Ariba APC (1 realm) Ariba P2O (1 realm) PM PM SRM SRM ERP Opera E2 ERP ERP 23 affiliates 5 affiliates Out of Opera scope Old E-proc tool ~ 25 affiliates To be closed (Commerce One)8 © 2012 Ariba, Inc. All rights reserved.
    9. 9. B@ALi2 Solution Overview SC: Shopping Cart ARIBA’s Network POR: Purchase Order Confirmation SN: Ship Notice (Supplier’s access) File Transfer POC SN Automatic Scope E-Catalogs  Indirect B@ALi2 PO procurement Automatic sending  Direct Procurement SC SC Goods (with some transformat creation validation Receipt limitations) ion into PO Outside REQUESTOR MANAGER  Purchase on (BUDGET) AL Network catalog & out of catalog  Open Purchase Orders INVOICE Affiliate’s ERPs Receipt • SaaS (Software as a Service) solution chosen „Turn-Key‟ solution, well-tried (Proof of Concept), low running costs compared to hosted solution • European CORE system : one single application for all Affiliates • E-Catalogs Management Centralization of the E-Catalogs management at European level through an external supplier9 © 2012 Ariba, Inc. All rights reserved.
    10. 10. Deploying B@ALI2: Pre-requisites and Organisation • Minimal pre-requisites to start the project Have identified a Local Project Team: – Business Project Manager / IT team / KeyUsers Use the Group Procurement classification Have a cleaned Suppliers DataBase or a project starting on this topic Have Procure-to-Pay processes in place or a project starting on this topic Have Procurement validation process (release strategy) in place Have Internet connections available for EndUsers via AL network Have SFTP protocol for files transfer (interfaces with ERPs) Have Referential Management Tool implemented at Go-Live for Suppliers and Catalogs requests (creation, updates, deletion) • A checklist (« Impact study ») exists and is reviewed with the affiliate some months before the deployment10 © 2012 Ariba, Inc. All rights reserved.
    11. 11. B@ALI2 – Processes Scenario  Air Liquide B@ALi2 Welcome Page  HERMES categories  Key words  Sub-categories  From Purchase Request (PR) to Purchase Order (PO) Automatic PO sent via Ariba’s PR PO creation Network OR PO sent manually Supplier Requester Manager for Budget approval  Purchase on catalogs  Approvers thanks to Delegation matrix (Cost center or project or Investment, Amount)  The manager approves the Purchase Request off-line (through e-mail)  Purchase Order is created automatically and sent through the Ariba Network or sent manually if supplier not linked to Air Liquide  Goods Receipt is done by the Requester  Purchase out of catalog  Requisitioner is involved in the process as an approver. He is guarant of the Procurement policy Requester Manager Requisitioner Supplier11 © 2012 Ariba, Inc. All rights reserved.
    12. 12. B@ALI2 - Success Story • Feedback on 2011 deployments Benefits User friendly application: Good feedback from End Users Compliance enabler on European or local agreements Requisitioning process under Procurement control Control of « Out of catalog » purchase by Procurement Requisitioners Points of attention Some subjects must be taken into consideration before starting the project (it requires time) – Suppliers database (cleaning, data enrichment) – Catalogs – Integration into ERP Procure to Pay: process & organization initiated Change Management must be done all along the project – Define and communicate organization changes (if required) – Training must be held by Business with the support of Key Users – Documentation must be localized for the affiliate(s) Key Users must be defined/nominated at the beginning of the project – Well known of the application at Go-Live -> best support to end users12 © 2012 Ariba, Inc. All rights reserved.
    13. 13. European Procurement Organization European Procurement Platform European IT / IS Platform Finance & Controlling Sales & Marketing Direct Procurement Indirect Procurement tools Category Managers Category Managers tools Maintenance tools Logistics tools Business Process European Manager Supply Chain tools Procurement Etc. Referential E-Procurement Procurement tools Maintenance team Manager (SAP, E-procurement..)  Centralization of Referentials  Centralization of Procurement Evolution Requests  Validated by Procurement before its implementation by IT/IS platform13 © 2012 Ariba, Inc. All rights reserved.
    14. 14. Centralization of Procurement Referentials • Managing Referentials for European affiliates AFFILIATE EUROPEAN PROCUREMENT PLATFORM Referential* Management Tool Need validation of European Business Referential Category Managers? domains Administrator  Local Referential Administrators in affiliates  Validation by domains (local or Europe) REFERENTIAL TEAM Operates in Procurement tools (*) Referentials: Suppliers, Catalogs, materials (SAP, E-Procurement)14 © 2012 Ariba, Inc. All rights reserved.
    15. 15. Hindsight • Hindsight Ariba P2O (integrated with JDE, Movex, SAP) – Using almost 12 months (deployed in Jan. 2011) Ariba APC (integrated with SAP SRM&PM) – Using almost 12 months (deployed in Jan. 2011) • Our most important issues Master Data (Suppliers, Catalogs) management – Complexity – Volume (6,000 suppliers) vs. system performance – European requirements (catalogs in two currencies for Switzerland, etc.) PO Layout – 80% of PO printed (1% of suppliers registered into Ariba Network) – One layout for the realm Operational Reporting – Arduous  Our Ariba Customer Success contact: Jonathan Kiefe15 © 2012 Ariba, Inc. All rights reserved.
    16. 16. Hindsight • Releases and Support Services New release – Copy of Production environment provided to customers for testing purpose – Do not forget to foresee/do a Non-regression testing campaign – Feedback on our first release migration » No issues during this testing campaign Support service – Escalation needed sometimes – Good reactivity globally16 © 2012 Ariba, Inc. All rights reserved.
    17. 17. Main Strength / Weaknesses / Pre-requisites • Main strength (before / after project) Good exchange, honesty Be able to mobilize good consultants Good project quality following-up • Weaknesses (before / after project) Project closure modalities (after 10 weeks in standard) Ariba‟s Internal Organization (lots of different contacts) Application maintenance via csv files – Complex to manage at all levels Some elements exceeded initial project scope so had additional costs Supplier onboarding took more time than anticipated • Project Pre-requisites Central Organization for Application and Referentials management Procurement Organization in affiliate(s) Functional needs clearly defined and common for all affiliates17 © 2012 Ariba, Inc. All rights reserved.
    18. 18. Next Steps • Build an E-Procurement roadmap • Continue to deploy B@ALi2 (Our European e-procurement CORE solution)18 © 2012 Ariba, Inc. All rights reserved.
    19. 19. Agenda • Air Liquide • Understanding the Extraprise What is the Extraprise and why does it matter? Real-World Results Steps to Success19 © 2012 Ariba, Inc. All rights reserved.
    20. 20. eProcurement Is No Longer New No plans to purchase or deploy 20% Level of eProcurement Maturity Plan to deploy beyond 12 months 3% Plan to deploy within 12 months 10% Purchased not using 6% Less than one year 3% 1 to 2 years 10% 3 to 4 years 16% 5 to 8 years 18% 48% More than 8 years 14% 0% 5% 10% 15% 20% 25% Percentage of Respondents, n=156 Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup20 © 2012 Ariba, Inc. All rights reserved.
    21. 21. The Rise of the Networked Enterprise – Enabled by Collaborative Technology “Increasingly companies are embracing collaboration as part 77% of their strategy to grow.” increased access to 63% 55% knowledge increased marketing better 41% information sharing effectiveness 43% improved greater collaboration market across silos 24% share increased revenue 8% higher margins “ Networked enterprises are 50% more likely to have increased sales, higher profit margins, gain market share, and be a market leader. ” Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0 finds it’s payday.” Survey of 4,394 executives. December 201021 © 2012 Ariba, Inc. All rights reserved.
    22. 22. Inefficient Processes Between Companies Hinder Results The Extraprise THE CORPORATE EPIDEMIC Transactions completed manually: 80% Cost of ineffective business collaboration: (Source: Celent Communications) 12-month decline in B2B marketing impact: 50% (Source: Marketing Sherpa) €500 BILLION (Source: Basex Research) Revenue leaked due to compliance issues: 5% (Source: Aberdeen Research)22 © 2012 Ariba, Inc. All rights reserved.
    23. 23. The Extraprise Is about Understanding Your Business Partners 1 Buyer 20 Suppliers ● Supplier Enablement and value creation is crucial to procurement success ● Without Supplier success, Buyer opportunities fall short23 © 2012 Ariba, Inc. All rights reserved.
    24. 24. Making 1-to-1 Connectivity Messy for Even Just a Few Suppliers Sourcing / Discovery Catalog Maintenance Contract Management Source-to-Settle Processes Purchase Requisition Local ERP Cost Assignment Contract Compliance Approval Workflow Buyer’s tools Purchase Order Management Shipment Notice Visibility Goods/Service Reception Invoice / Approval Payment Booking Cash Management Discount management24 © 2012 Ariba, Inc. All rights reserved.
    25. 25. And to Extend Influence to All of Your Suppliers Becomes Impossible Sourcing / Discovery Catalog Maintenance Contract Management Source-to-Settle Processes Purchase Requisition Local ERP Cost Assignment Contract Compliance Approval Workflow Buyer’s tools National ERP Purchase Order Management Shipment Notice Visibility Goods/Service Reception Invoice / Approval Payment Booking Global ERP Cash Management Discount management25 © 2012 Ariba, Inc. All rights reserved.
    26. 26. So eProcurement Challenges Remain • Multiple instances of ERP platforms • Duplicated efforts on eProcurement systems • Inability to connect with multiple suppliers • Low levels of eProcurement adoption • Low levels of Supplier Network adoption • Need to harmonize approaches for onboarding Catalogs, Purchase Orders and Invoicing • Struggle between IT and Procurement needs (CIO v. CPO) Sources: CFO Research; Aberdeen, Ariba Live 201226 © 2012 Ariba, Inc. All rights reserved.
    27. 27. Managed Spend Underperforms 61%27 © 2012 Ariba, Inc. All rights reserved.
    28. 28. Spend Management Is Falling Short Incomplete coverage of spend types / catalog categories in corporate eProcurement systems 35% Confusion on policy and requirements for buying products or services 27% Employee reluctance to use the eProcurement system(s) currently in place 27% Difficulty in understanding and/or leveraging information generated in the eProcurement system 21% Increased operational cost of IT management for existing procurement solutions 19% 0% 5% 10% 15% 20% 25% 30% 35% 40% Percentage of Respondents, n=156 Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup28 © 2012 Ariba, Inc. All rights reserved.
    29. 29. And You’re Pushed Harder to ChangeAccording to CFO Research… 61% of you will have increased cost savings targets 44% of these targets will be greater than 5% Creating Procurement Process Efficiencies is the top priority for CFOs Source: CFO Magazine survey of 263 senior finance executives29 © 2012 Ariba, Inc. All rights reserved.
    30. 30. Top Initiatives Are Reducing Costs and Collaboration30 © 2012 Ariba, Inc. All rights reserved.
    31. 31. The Personal Version of Extraprise Communication Shopping & Collaboration Entertainment Research31 © 2012 Ariba, Inc. All rights reserved.
    32. 32. A Business Commerce Network Is the Gateway to the Extraprise Sourcing / Discovery Catalog Maintenance Contract Management Source-to-Settle Processes Purchase Requisition Local ERP Cost Assignment Contract Compliance Approval Workflow Buyer’s tools National ERP Purchase Order Management Shipment Notice Visibility Goods/Service Reception Invoice / Approval Payment Booking Global ERP Cash Management Discount management32 © 2012 Ariba, Inc. All rights reserved.
    33. 33. Value of the Extraprise33 © 2012 Ariba, Inc. All rights reserved.
    34. 34. Buyers Win Reduce process costs Reduce Procurement by 25-60% cycles by 50-70%+ Source: 2011 Hackett P2P Study Source: 2011 Hackett Procurement Benchmark Source: 2011 Hackett P2P Study Source: 2011 Hackett Procurement Benchmark34 © 2012 Ariba, Inc. All rights reserved.
    35. 35. And Suppliers Win… • $10M in annual transactions • Support to 25 Customers • 10-15% of our new account revenues are directly a • 25% Annual Growth result of Ariba Network membership • 25% of total order volume is transacted via the Ariba Network eInvoicing eliminated rekeying, resulting in 83% lower error rate which reduced DSO by 75% 99% customer retention rates – (10 to 15% better than industry average, per Forrester) and 30% growth in accounts Reduced manual intervention and errors, lowering processing costs from $8 to $2 per purchase35 © 2012 Ariba, Inc. All rights reserved.
    36. 36. Network Development Is Strategic… Wave I • Enable core spend categories • Automate basic requisition-to-order workflow • Improve policy, contract, and pricing compliance • Integrate to back-end finance and ERP systems Wave II • Enable more users and supplier relationships Solution Scope • Expand to manage larger, more complex spend categories (business services, MRO, etc.) • Enhance collaborative procurement capabilities Wave III • Expand procurement efficiencies and cost savings to global users and suppliers • Automate and integrate broader source-to- settle processes • Enhance strategic impact via Discount Mgmt., Supply Chain Financing, etc. 4 wk 16 wk N wk36 © 2012 Ariba, Inc. All rights reserved.
    37. 37. AND… Considers All Spend Types Spot Buys Simple Services Goods with Options Contracts Complex Services And much more Goods37 © 2012 Ariba, Inc. All rights reserved.
    38. 38. Extraprise = Improved Efficiency across the Entire Global Business Environment Sourcing / Discovery Catalog Maintenance Contract Management Source-to-Settle Processes Purchase Requisition Local ERP Cost Assignment Contract Compliance Approval Workflow Buyer’s tools National ERP Purchase Order Management Shipment Notice Visibility Goods/Service Reception Invoice / Approval Payment Booking Global ERP Cash Management Discount management38 © 2012 Ariba, Inc. All rights reserved.
    39. 39. Real-World Results39 © 2012 Ariba, Inc. All rights reserved.
    40. 40. Results Suppliers – 1st 12 months – 500 active relationships (150 new suppliers through PO quick enablement) Internal Users – 250 throughout nine divisions POs – 1st 12 months – 25,000 Invoices – 1st 12 months – 35,000 Discounting – Standing and dynamic plans/Discount Pro40 © 2012 Ariba, Inc. All rights reserved.
    41. 41. Results • Implemented with: 100+ suppliers 15 catalogs 1,282 users, across six divisions • Increased awareness: 300+ additional new users in five months post go live 50+ suppliers added Averaging 1,200 requisitions/month41 © 2012 Ariba, Inc. All rights reserved.
    42. 42. Results • Addressable spend down 24% vs. 2008 baseline • Spend down 3.6% most recent YTY • Spend Under Management at 54% (and rising) • Compliance at 50% (continued challenges) • Procurement function expense = 0.28% of spend • Vendor Management Program established • Over 2,000 suppliers enabled within system42 © 2012 Ariba, Inc. All rights reserved.
    43. 43. Results Integrate w. PeopleSoft E-Procurement Implementation Activities Months After Project Start System Testing Initial User Training Begin Wave 1 Savings (Full savings 6 mo later) Enable Wave 1 Suppliers Begin Wave 2 Savings Ramp-up Enable Wave 2 Suppliers Begin Wave 3 Savings Ramp-up Enable Wave 3 Suppliers Begin Wave 4 Enable Wave 4 Suppliers Savings Ramp-up 3 6 9 12 15 18 21 24 26 Cumulative Savings $ MM Q1 $0.00 Q2 $0.00 Q3 $0.08 Q4 $0.37 Q5 $1.31 Q6 $1.91 Q7 $3.00 Q8 $4.32 Q9 $7.0743 © 2012 Ariba, Inc. All rights reserved.
    44. 44. Five Steps to Extraprise Success • Obtain Executive Sponsorship • Clarify Vision (Network Strategy, Training) • Determine Waves • Define Metrics (Process, FTE, First Match, Days to OK to Pay, x% of Spend) • Report / Maintain visibility44 © 2012 Ariba, Inc. All rights reserved.
    45. 45. Resources • Aberdeen Benchmarking Report: http://resourcecenter.aberdeen.com/GL/27-procure-to-pay/ • Reaching New Heights: The Dividends of Collaboration between Finance and Procurement http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=871 • Ariba LIVE Replays: http://www.slideshare.net/ariba45 © 2012 Ariba, Inc. All rights reserved.
    46. 46. Share This Session…NOW…from your mobile! • All presentations are posted: Guidebook mobile app – Search Apple or Android app store for Guidebook – Enter code “collabor8” Or at Slideshare.net/Ariba • Share via email or social media **Come back soon – we are syncing #AribaLIVE audio and video interviews to the presentations**46 © 2012 Ariba, Inc. All rights reserved.
    47. 47. Q&A Contact info: John Lark JLark@ariba.com47 © 2012 Ariba, Inc. All rights reserved.
    48. 48. E-procurement• Back-up slides48
    49. 49. Integration = Files Tranfer PO &GR• 2 information are exported from B@ALI2 : Purchase Orders (PO) & Good Receipts (GR) PO_AFFILIATE ! SFTP TRANSFER ! ARIBA.zip PO PO & GR Split by PU B@ALI2 ARIBA system ! SFTP TRANSFER ! GR_AFFILIATE GR ARIBA ALSEIS AFFILIATES INTEGRATION IN AFFILIATE’s ERP PO Naming Convention to define per PU during• PO & GR files : Project / Workshop ½ Interface for Integration to be GR managed by the Affiliate (Gap Analysis, Mapping, Devt …) 49

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