Ariba Live 2008 Kane Presentation Final R

How Spend Management Complements ERP 13 May 2008 Ariba Live – Las Vegas, NV Presenter Bob Kane Sr. Director, Strategic Sourcing & Supply [email_address] Telephone (253) 924-3730

Speaker Background ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Weyerhaeuser Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* Announced sale to International Paper March 2008; projected to be finalized Q3 2008 pending approvals

Core Products & Services Packaging Cellulose Fiber Alternative Energy Real Estate & Home Building Timberlands Building Products

What can a tree be? http://www.weyerhaeuser.com

Weyerhaeuser Procurement…. by the numbers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Procurement & Energy Mission Safely deliver supply chain value while driving measurable competitive advantage in Procurement and Energy to the Enterprise

Today’s Landscape ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Research Observations ,[object Object],[object Object],[object Object],[object Object],[object Object],Where do you fit it?

Today’s Sourcing & Procurement Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

So, what needs to be in your toolbox? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The core question behind today’s session………… ,[object Object]

And….what should our strategy be?

ERPs are a backbone necessity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Challenges – ERP vs. Spend Mgmt. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

A Typical P2P Target Configuration Requirements Source Procure Receive Pay P2P Process Flow ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Evaluate & Improve

[object Object],[object Object],[object Object],One Business Challenge Faced Supply Chain Management Operations BU 1 BU 2 BU 3 ERP 1 ERP 2 (Instance 1) ERP 3 (instance 1), ERP 4, 5 ERP 6 ERP 2 (Instance 2) ERP 7 ERP 8 ERP 2 (Instance 3) ERP 9 ERP 3 (instance 3) ERP 3 (instance 2)

Solution - Overlay Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Architectural View ESM Separate ERP Instances & Installations Middleware (ESM) Data Warehouse Data warehouse acts as An information exchange Between ERP & portal Industry portal handles all Order-related transactions With suppliers via XML Middleware to Connect ERP Suppliers 1 2 3 4 5 6 7 8

ERPs Opportunity Identification Strategy Development Supplier Selection Contract Development Order Execution Enrichment Analysis Category Mgmnt Enrichment Analysis Category Mgmnt Sourcing Category Mgmnt Sourcing P.O. Transaction Engine + AP Contracts Purchase Order Purchase Order Copy Electronic Order Entry (EOE) One System for All Invoicing Spend Management Suppliers EDI XML FAX EMAIL HTML Ariba Supplier Network B U Y E R . A R I B A . C O M S U P P L I E R . A R I B A . C O M

Results ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

A Second Challenge Faced ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Spend Management + ERP – Why? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Integration: addressing the CIO’s concern ,[object Object],[object Object],[object Object],[object Object],[object Object]

Evaluation Areas for Tradeoff SM SM/ERP SM SM/ERP SM SM/ERP SM SM/ERP ERP ERP SM/ERP SM/ERP

Summary of joint proposed solution (example) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Slide

P2P Target Configuration (flows detail) Requirements Source Procure Receive Pay P2P Process Flow Not in scope for this process: WRECO, IFP, International, employees as vendors, Timberlands Chips & Logs (including 3 rd party and IFP, Recycled Fiber) Ariba Supplier Network Integration to 1000’s of WY Suppliers Procurement Compliance Content Mgmt Service & Spot Sourcing Spend Enrichment Data Enrichment Opportunity ID Spend Mgmt Services Core P2P Process (ERP) Invoice Management Invoice workflow; Dynamic Discounting SRM & MM (Operational Procurement) Financials (Account) Business Intel (Spend Analysis) SRM (eRFx) Business Intel (Monitor) Sourcing Services Sourcing Services & Public RFx Supplier Scoring Performance tracking Spend Enriched Data Category Expertise Public RFx Requisition Punchout Spot Sourcing Compliant Shopping Carts Transaction Routing Invoices Dynamic Discounts Supplier Scorecards Spend Visibility e-Sourcing Contracts Procurement Compliance Procurement Automation AP Automation Supplier Network And Scoring Evaluate & Improve

Benefits Achieved ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lessons Learned ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Ariba Live 2008 Kane Presentation Final R

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Ariba Live 2008 Kane Presentation Final R