B                                         The Extraprise:                                          Using Collaborative    ...
Session Abstract    Companies with strong collaboration networks are significantly more    profitable, have lower risk, an...
Speaker - Cox Enterprises    •       Brooke Krenn – Senior Manager, Procurement Systems                      Procurement S...
Speaker - Aberdeen    • Constantine G. Limberakis    A senior analyst in the Global Supply Management practice at Aberdeen...
The Extraprise:                                          Using Collaborative                                          Comm...
Company Info    • Cox Enterprises, Inc. (CEI) is a leading communications, media         and automotive services company. ...
Business Background    • Cox embodies a decentralized environment with multiple ERPs:                      PeopleSoft     ...
The Story    • How to incorporate one eProcurement platform with multiple ERPs?                      Needed a solution tha...
Results    • Single source for indirect spend                      Consistent experience for end users                    ...
Results     • Implemented with:                       100+ suppliers                       15 catalogs                    ...
Conclusions     •     Using the Supplier Card model within Ariba P2P allowed us to           support multiple ERPs:       ...
B                                         A Review of                                          eProcurement:              ...
What are the core challenges we     still see today for eProcurement?     •         Multiple instances of ERP platforms   ...
While Many Report up to Finance,      There Is No Single Organizational      Structure           Procurement reports up to...
Respondents’ Response to + or -       Change in eProcurement Budget                                                      D...
Maturity of eProcurement      Deployments                                          No plans to purchase or deploy         ...
Final Decisions on eProcurement            Leaders from Procurement and IT and/or Finance meet as                         ...
Top Pressures in Implementing      eProcurement                      Incomplete coverage of spend types / catalog categori...
From how many suppliers does your      company purchase indirect      products and services?                              ...
Supplier Catalogs Currently in      eProcurement                                 Number of Catalogs (CIF or Punchout)     ...
Spend Categories Managed by One      or More eProcurement Solutions in      an Enterprise                                 ...
Spend Categories Managed by One      or More eProcurement Solutions in      an Enterprise                                 ...
Average Time to “On-board"      a New Supplier into Your      Procurement System                                          ...
Top “Two” Stated Areas Preventing      Procurement From Using an      eProcurement System         35%         30%         ...
Distinct Vendor Systems Used to      Manage “Source to Pay" Processes      in the Enterprise     Effective eProcurement: A...
% of Transactions that Begin in Your      eProcurement Ultimately Completed      Outside of the System     10% said they ...
% Suppliers Enabled Receive/Deliver     ePurchase Orders             30%                                                  ...
Defining the Best-in-Class Use      of eProcurement     Effective eProcurement: Assessing Options for the New Economic Nor...
Defining the Best-in-Class Metrics     Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010)   ...
Best-in-Class Metrics      Catalogs, Common Data and Contract      Management     Effective eProcurement: Assessing Option...
Deployment Approach for eProcurement     Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) ...
Platform Approach for eProcurement     Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010)   ...
Goals for using a Supplier Network today                                     Optimize supplier collaboration              ...
Reasons for lack of supplier    network adoption for suppliers     35%                                                    ...
Primary Reasons Why Supplier    Network was chosen         60%                     52%         50%                        ...
Summary – Solutions around     eProcurement     •         Need a platform to integrate multiple ERP     •         Coordina...
Contact Info     Constantine G. Limberakis, Senior Research Analyst       Global Supply Management, AberdeenGroup         ...
Q&A                                Contact info:                                Steve Carlson scarlson@ariba.com38   © 201...
Share This Session…NOW…from     your mobile!     •   All presentations are posted:                   Guidebook mobile app ...
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The Extraprise - Using Collaborative Commerce to Extend the Value of Your ERP and Maxmimize Supply Chain Performance

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  • Increase by 10% or more 20% Increase by 5% to 9% 7% Increase by 1% to 4% 10% No change 30% Decrease by 1% to 4% 4% Decrease by 5% to 9% 6% Decrease by 10% or more 6% Don't Know 13% Don't Measure 1%
  • Ariba Procurement ContentProduct Catalog Data and Contract Compliance are tied together 37% 27% 16% Consolidated Procurement and Contracts under one platform 60% 44% 27% Enablement of electronic catalogs over the supplier networkCompliance with contracts based on Electronic Catalogs 50% 30% 21% Percentage of Purchase Orders compliant with Contracts 86% 51% 36%
  • The Extraprise - Using Collaborative Commerce to Extend the Value of Your ERP and Maxmimize Supply Chain Performance

    1. 1. B The Extraprise: Using Collaborative Commerce to Extend the Value of Your ERP and Maximize Supply Chain Performance Cox Enterprises Aberdeen© 2012 Ariba, Inc. All rights reserved.
    2. 2. Session Abstract Companies with strong collaboration networks are significantly more profitable, have lower risk, and more likely to be market leaders than their peers. ERPs, while effective for driving productivity within the enterprise, are limited in their ability to help you connect and collaborate with customers, suppliers, and other partners outside. In this session, leading SAP and Oracle shops examine how theyve used commerce networks to extend the value of their ERP and reap more return from their supply chain.2 © 2012 Ariba, Inc. All rights reserved.
    3. 3. Speaker - Cox Enterprises • Brooke Krenn – Senior Manager, Procurement Systems Procurement Systems Team - three full-time employees Support all divisions of Cox Responsible for administering: – JP Morgan Chase Procurement Card Program ($100M+ yearly spend) – Ariba P2P ($50M+ yearly with 15k+ POs) – Comdata Fuel Card Program – Corporate Headquarters’ Oracle Purchasing3 © 2012 Ariba, Inc. All rights reserved.
    4. 4. Speaker - Aberdeen • Constantine G. Limberakis A senior analyst in the Global Supply Management practice at Aberdeen, Constantine Limberakis examines how procurement organizations are utilizing technology and streamlining “source to pay” processes in the areas of strategic sourcing, purchasing, contract management, invoicing, and supplier management. Through his benchmarking and analysis of fact-based research, Limberakis examines how organizations look to improve their usage of spend management processes and technology in order to achieve Best-in-Class status. His most recent published research focused on the evolution of supplier networks, entitled Supplier Networks v2.0 – A Look at Commerce in the Cloud.4 © 2012 Ariba, Inc. All rights reserved.
    5. 5. The Extraprise: Using Collaborative Commerce to Extend the Value of Your ERP and Maximize Supply Chain Performance Brooke Krenn Cox Enterprises© 2012 Ariba, Inc. All rights reserved.
    6. 6. Company Info • Cox Enterprises, Inc. (CEI) is a leading communications, media and automotive services company. With revenues of nearly $15 billion and more than 50,000 employees, major operating subsidiaries include: Cox Communications, Inc. (cable television distribution, telephone, high-speed Internet access, commercial telecommunications and advertising solutions) Manheim, Inc. (vehicle auctions, repair and certification services and web-based technology products) Cox Media Group, Inc. (television and radio stations, digital media, newspapers, advertising sales rep firms, Valpak) AutoTrader.com (online automotive advertising and Kelley Blue Book, vAuto, HomeNet Automotive and VinSolutions subsidiaries) Kudzu.com6 © 2012 Ariba, Inc. All rights reserved.
    7. 7. Business Background • Cox embodies a decentralized environment with multiple ERPs: PeopleSoft Great Plains SAP Two instances of Oracle • Mid-2011, our main goal was to replace existing eProcurement platform with a more user-friendly interface that could easily interact with all divisions’ ERP systems • Initiative led by CEI Supply Chain Services department Very small team “Grass Roots” approach – no formal executive sponsorship Required to partner with six divisions to obtain unique business needs7 © 2012 Ariba, Inc. All rights reserved.
    8. 8. The Story • How to incorporate one eProcurement platform with multiple ERPs? Needed a solution that could work with multiple ERPs, with proven track record Speed to market – how quickly and easily could we implement? • How to capitalize on indirect spend with suppliers spanning all divisions? Ariba was perfect answer – majority of our existing eProcurement suppliers already transacting via Ariba Network Ariba Network offered opportunity to grow eProcurement supplier list8 © 2012 Ariba, Inc. All rights reserved.
    9. 9. Results • Single source for indirect spend Consistent experience for end users User-friendly and easy-to-navigate interface Streamlined payment and reconciliation process through use of Supplier Card Continually increasing supplier base via the Ariba Network • Increased compliance Better visibility to spend – much improved reporting More positive user experience resulting in better user adoption9 © 2012 Ariba, Inc. All rights reserved.
    10. 10. 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/month10 © 2012 Ariba, Inc. All rights reserved.
    11. 11. Conclusions • Using the Supplier Card model within Ariba P2P allowed us to support multiple ERPs: “Back end” process is seamless to the end user Easily accommodate multiple Charts of Accounts Automated payment process11 © 2012 Ariba, Inc. All rights reserved.
    12. 12. B A Review of eProcurement: Tying the Knot on Suppliers, POs and Contracts Constantine G. Limberakis Snr. Research Analyst, Aberdeen Group© 2012 Ariba, Inc. All rights reserved.
    13. 13. What are the core challenges we still see today for eProcurement? • 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)13 © 2012 Ariba, Inc. All rights reserved.
    14. 14. While Many Report up to Finance, There Is No Single Organizational Structure Procurement reports up to the Finance organization / CFO 43% Procurement reports up to the Supply Chain organization 22% Procurement reports up to executive management / CEO 15% Procurement reports up to management of individual business units / locations 10% Other 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Percentage of Respondents, n=156 Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup14 © 2012 Ariba, Inc. All rights reserved.
    15. 15. Respondents’ Response to + or - Change in eProcurement Budget Dont Know / Dont Measure 15% Expect Budgets to Increase 38% Expect Budgets to Decrease or Stay Same 47% On Avg. +4.0% Percentage of Respondents, n=156 increase Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup 15 © 2012 Ariba, Inc. All rights reserved.
    16. 16. Maturity of eProcurement Deployments 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% 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: AberdeenGroup16 © 2012 Ariba, Inc. All rights reserved.
    17. 17. Final Decisions on eProcurement Leaders from Procurement and IT and/or Finance meet as 44% an executive board to finalize decisions Decisions are made by Procurement and IT plays an 24% advisory role only Decisions are made by Finance, and Procurement and IT 21% play advisory roles Decisions are made by IT and Procurement plays an 6% advisory role only Other 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Percentage of Respondents, n=156 Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup17 © 2012 Ariba, Inc. All rights reserved.
    18. 18. Top Pressures in Implementing eProcurement 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: AberdeenGroup18 © 2012 Ariba, Inc. All rights reserved.
    19. 19. From how many suppliers does your company purchase indirect products and services? 30% Percentage of Respondents, n=135 25% 25% 20% 19% 16% 15% 13% 10% 7% 7% 5% 0% Up to 100 101 to 1000 1001 to 5000 5001 to 10000 10000 to 25000 25000+ Range of Suppliers Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup19 © 2012 Ariba, Inc. All rights reserved.
    20. 20. Supplier Catalogs Currently in eProcurement Number of Catalogs (CIF or Punchout) 100+ 14% 26 - 100 19% 1 to 25 44% Zero 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 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. Spend Categories Managed by One or More eProcurement Solutions in an Enterprise Top 5 Managed Categories • 62% - Office Equipment, Furniture & Supplies • 56% - IT Equipment Software • 52% - Maintenance, Repair & Operating (MRO) • 47% - Maintenance Services • 46% - Telecom Equipment & Services Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup21 © 2012 Ariba, Inc. All rights reserved.
    22. 22. Spend Categories Managed by One or More eProcurement Solutions in an Enterprise Bottom 5 Managed Categories • 20% - Strategic Meetings • 23% - Legal Services • 25% - Employee Benefits • 26% - Real Estate & Facilities • 30% - Fleet Management & Operations Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup22 © 2012 Ariba, Inc. All rights reserved.
    23. 23. Average Time to “On-board" a New Supplier into Your Procurement System More than a month 15% 12% Time to Enable New Suppliers Up to a month 18% 24% Up to a week 12% 14% Goods Services 1 to 3 days 23% 20% Less than 1 day 14% 17% 0% 5% 10% 15% 20% 25% 30% Percentage of Respondents, n=127 Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup23 © 2012 Ariba, Inc. All rights reserved.
    24. 24. Top “Two” Stated Areas Preventing Procurement From Using an eProcurement System 35% 30% 29% 27% 25% 24% 21% 20% 15% 14% 10% 5% 0% User knowledge of System and process Ease of using the system Perception of system’s Management support system capabilities alignment / UI Navigation utility/purpose Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup24 © 2012 Ariba, Inc. All rights reserved.
    25. 25. Distinct Vendor Systems Used to Manage “Source to Pay" Processes in the Enterprise Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup25 © 2012 Ariba, Inc. All rights reserved.
    26. 26. % of Transactions that Begin in Your eProcurement Ultimately Completed Outside of the System  10% said they Don’t Know  6% said they Don’t Measure 18% 17% 16%  Avg. 16% fall outside 14% 14%  11% Best-in-Class 13% 12% 10% 9% 10% 8% 7% 6% 7% 4% 3% 2% 3% 0% 0% 1% to 5% 5% to 10% 11% to 15% to 21% to 31% to 41% to 51% or 15% 20% 30% 40% 50% more Percentage Range - Percent of transactions that begin in eProcurement system are ultimately completed outside of the system (i.e. end-users opt to complete the transaction manually), Percentage of respondents, n=129 Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup26 © 2012 Ariba, Inc. All rights reserved.
    27. 27. % Suppliers Enabled Receive/Deliver ePurchase Orders 30%  15% said they Don’t Know  3% said they Don’t Measure 25% 24%  Avg. 20% enabled 20%  27% Best-in-Class 15% 10% 9% 5% 5% 4% 4% 3% 5% 5% 3% 1% 0% Less than 11% to 15% 16% to 20% 21% to 25% 26% to 30% 31% to 40% 41% to 50% 51% to 60% 61% to 75% More than 10% 75% Percentage Range - Enabled to receive and deliver electronic transactions (including XML and EDI, but excluding fax and email), Percentage of respondents, n=98 Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup27 © 2012 Ariba, Inc. All rights reserved.
    28. 28. Defining the Best-in-Class Use of eProcurement Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup28 © 2012 Ariba, Inc. All rights reserved.
    29. 29. Defining the Best-in-Class Metrics Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup29 © 2012 Ariba, Inc. All rights reserved.
    30. 30. Best-in-Class Metrics Catalogs, Common Data and Contract Management Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup30 © 2012 Ariba, Inc. All rights reserved.
    31. 31. Deployment Approach for eProcurement Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup31 © 2012 Ariba, Inc. All rights reserved.
    32. 32. Platform Approach for eProcurement Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010) Source: AberdeenGroup32 © 2012 Ariba, Inc. All rights reserved.
    33. 33. Goals for using a Supplier Network today Optimize supplier collaboration 41% Transact with suppliers electronically 37% Improve transparency throughout the source-to-pay cycle 31% Improve the utilization of eProcurement system 30% Instill a culture of supplier focused best value solutions 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Percentage of Respondents, n=121Supplier Networks v2.0 – A Look At Commerce in the Cloud(April 2012) Source: AberdeenGroup
    34. 34. Reasons for lack of supplier network adoption for suppliers 35% 32% 30% 27% 27% 25% 25% 25% 20% 20% 15% 10% 5% 0% Cost of There are too Proprietary There are too Lack of ability to Don’t know subscription for few buyers and nature of the many networks support technical suppliers is too suppliers using network to support specifications high themSupplier Networks v2.0 – A Look At Commerce in the Cloud(April 2012) Source: AberdeenGroup
    35. 35. Primary Reasons Why Supplier Network was chosen 60% 52% 50% Best-in-Class All Others 40% 38% 36% 30% 29% 24% 21% 20% 9% 10% 3% 0% Chosen independently to Pre-connected as part of Recognized and used by Was the only platform complement existing an eProcurement Platform most others in the industry available for its purpose purchasing and AP systemsSupplier Networks v2.0 – A Look At Commerce in the Cloud(April 2012) Source: AberdeenGroup
    36. 36. Summary – Solutions around eProcurement • Need a platform to integrate multiple ERP • Coordinate IT and Procurement strategy • Strategize on category approach / technology • Increase enablement of suppliers through programs • Improve visibility / ease of use for buying • Capture identified savings through catalog efforts • Proactively apply contract pricing to purchases • Leverage a supplier network and network capabilities36 © 2012 Ariba, Inc. All rights reserved.
    37. 37. Contact Info Constantine G. Limberakis, Senior Research Analyst Global Supply Management, AberdeenGroup constantine.limberakis@aberdeen.com Twitter: @ABG_SpendMngmt Office: +1.312.470.6071 | Mobile: +1.312.927.5769 For More Research Please Visit: www.aberdeen.com
    38. 38. Q&A Contact info: Steve Carlson scarlson@ariba.com38 © 2012 Ariba, Inc. All rights reserved.
    39. 39. 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**39 © 2012 Ariba, Inc. All rights reserved.

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