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What You Don’t Know Can Hurt You – Why Collaboration is Essential

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Information is power and information comes from collaboration between you and you customers and suppliers. Industry leaders will discuss how everyone in can benefit with integrated supply chain ...

Information is power and information comes from collaboration between you and you customers and suppliers. Industry leaders will discuss how everyone in can benefit with integrated supply chain collaboration.

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  • Ariba’s On Demand applications and the Network generate measurable value to organizationsBuyer’s experience significant savings that fall right to the bottom lineSome savings are obvious (see above) but others less so. For example, a large Oil company was able to significantly cut inventory of replacement parts in its refineries due to the visibility into order status the network provided. This visibility not only enabled the managers to focus on the operations instead of whether a critical shipment was going to come, but also enabled them to reduce the excess inventory they needed as safety stock to ensure the refinery didn’t go downSuppliers experience savings through the automation of non-value added activities (like AR clerks having to call their customers each month to see when payments will be made)Suppliers also see top line growth from participation on the network – including net new business and increased wallet share with existing customers

What You Don’t Know Can Hurt You – Why Collaboration is Essential What You Don’t Know Can Hurt You – Why Collaboration is Essential Presentation Transcript

  • What You Don’t Know Can Hurt You –Why Collaboration is Essential!Information is power and information comes from collaboration between you and youcustomers and suppliers. Industry leaders will discuss how everyone in can benefitwith integrated supply chain collaboration.© 2013 Ariba, Inc. All rights reserved.
  • What You Don’t Know Can Hurt You -Why Collaboration Is Essential!Robert CalvertHewlett PackardDirector, eBusiness Strategy© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEAriba®Collaborative Value Chain – Direct, Indirect,Services© 2012 Ariba, Inc. All rights reserved.3Buyer’s Processes: Analyze to PaySupplier’s Processes: Market to CashThe Ariba Network is the world’s largest Business Network, allowingBuyers and Sellers to become more efficient across their Buying,Selling, and Cash Management Processes
  • #AribaLIVEAriba®Collaborative Value Chain – Direct, Indirect,Services© 2012 Ariba, Inc. All rights reserved.4•Spend DataEnrichment•SpendAnalysis•ContractCollaboration•Authoring•Repository•RequisitionOwnership•CatalogCompliance•ContractCompliance•ApprovalWorkflow•POCollaboration•POTransmission•Goods &ServicesReceipt•InvoiceReceipt•InvoiceCompliance•InvoiceApproval•ExceptionWorkflow• AwarenessMarketing•LeadCollaboration•ProposalCollaboration•BiddingOpportunity•ContractCollaboration• ContractRepository•CatalogCollaboration•CatalogSyndication•RequisitionCollaboration•SpecificationNegotiation•OrderCollaboration•OrderStatus•InvoiceDelivery•InvoiceCollaboration•Supplier Info;Performance Mgmt;Supplier Research•Company Profile Mgmt•Customer Account ManagementBuyer’s Processes: Analyze to PaySupplier’s Processes: Market to Cash•PaymentCollaboration•DiscountCollaboration•PaymentCollaboration•PaymentVisibility•WorkingCapitalCollaboration•Category /ProjectMgmt•RFI / RFP /AuctionCollaboration•SavingsTracking &Pipeline
  • #AribaLIVEDelivering Measurable BenefitsValue to Companies of All Sizes, Industries, RegionsSupplier ValueBuyer ValueSourcingProcurementProcessAP ProcessComplianceWCM &Discount3-9%ProcessSavings$3-20Savings/Document1-8%SpendSavingsTotalSavingsFasterPaymentAR ProcessProcessingOrdersSales &MarketingIncreasedRevenue15-75%TimeSavings15-75%ProcessSavings5-32%RevenueIncreaseTotalSavingsSource: Ariba customer surveys and interviews© 2013 Ariba, an SAP Company. All rights reserved.5
  • #AribaLIVETouchpoints© 2013 Ariba, Inc. All rights reserved.6SourcePurchase OrderOrder StatusInvoice/PaymentSupport
  • #AribaLIVEBuyerSellerBlack Box Collaboration© 2013 Ariba, Inc. All rights reserved.7SourcePurchase OrderOrder StatusInvoice/PaymentSupport
  • #AribaLIVEBuyerSellerWhite Box Collaboration© 2013 Ariba, Inc. All rights reserved.8SourcePurchase OrderOrder StatusInvoice/PaymentSupport
  • #AribaLIVEAll Roads Begin with Source© 2013 Ariba, Inc. All rights reserved.9Catalog/SimplePunchoutWizard/ComplexPunchouteQuote NonCatalogContractSimpleGoods● ● ● ● ●Complex/ConfiguredGoods● ● ● ● ●MilestoneService● ● ● ● ●MeteredService● ● ● ● ●MonthlyService● ● ● ● ●Open EndedService● ● ● ● ●Goods and ServicesAll touchpoints within theprocurement lifecycle tie backto source:• Customer use Source to create PO• PO acknowledge match the PO• Ship Notice match the PO• Packing slip match the PO(receiving)• Invoice match the PO (reconciliation)If source is not clean then allsubsequent matching will failDelays in receiving and/orreconciliation cause delayin payment/settle.
  • #AribaLIVEPO, Order Status and Invoice© 2013 Ariba, Inc. All rights reserved.10Purchase Order :“Must be viewed separate fromsales orders”“Anchor document to invoicereconciliation”“Process Savings requireswhite box thinking”Order Status:• “Unsung Process Savings”Why does buyer drive eInvoicing:“legally required”“reduce AR costs”Why does a supplier support eInvoicing:“legally required”“customer required”“to improve Cash Mgmt (reduce DSO andDRS)10Delivery Time +Digitized Data +ReconciliationDelivery Time+ DigitizedDataDeliveryTimeeInvoice (Customer PO)Web InvoicingeInvoice (HP Sales Order)PDF converted to eInvoicePDF+ EFT PaymentTier 13+2+3 daysTier 23+2 daysTier 33 days3 days
  • #AribaLIVESpend Savings vs. Revenue Increases“Mutually Exclusive”“Revenue protection”“competitive differentiation”Process Savings vs. Process Costs“ROI proportionate to frictionless processTime Savings vs. Role Shift“Impact to Cash Mgmt - decrease DSO & DRS”“Shift of reconciliation role”Impacts of CollaborationDoes not reflect HP figures11 © 2013 Ariba, Inc. All rights reserved.
  • Questions?© 2013 Ariba, Inc. All rights reserved.12