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Automate all Spend and Collaborate with all Suppliers

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Automate all Spend and Collaborate with all Suppliers

  1. 1. Automate All Spend and Collaborate with All SuppliersCollaborative Commerce and e-Invoicing<br />Ariba Commerce Summit<br />James Tucker<br />Director Product Marketing<br />Ariba Network & Finance Solutions<br />(650) 390-1702<br />jtucker@ariba.com<br />Dan Ashton<br />Sr. Solutions Marketing Manager<br />Cloud Commerce Solutions<br />(650) 390-1732<br />dashton@ariba.com<br />
  2. 2. What to Expect… <br />Combining Collaboration and e-Invoicing sessions<br />Participation is key<br />Business issues<br />How addressed them<br />Success, metrics and best-practices<br />Break<br />Ariba, Inc. 2011 All rights reserved. <br />2<br />
  3. 3. A Sense of Urgency Connectivity and collaborative with trading partners<br />© 2011 Ariba, Inc. All rights reserved. <br />PROCESS CHALLENGES<br /><ul><li>Risk Management (e.g. compliance and tax)
  4. 4. Procure-to-Pay
  5. 5. Order-to-Cash</li></ul>BARRIERS TO SUCCESS<br /><ul><li>Systems out-of-date, inflexible
  6. 6. Limited time and resources
  7. 7. Unclear business benefits</li></ul>“We see companies shifting a whole range of business functions to the cloud.”<br />Edge Zarrella<br />Performance & Technology Partner, KPMG<br />
  8. 8. BrainstormingParticipation key to success<br />Issues preventing you from getting more commerce under management?<br />Solutions to business challenges?<br />Best-practices and benchmarks?<br />Ariba, Inc. 2011 All rights reserved. <br />4<br />
  9. 9. The Network Key to Enabling Cloud CollaborationMany-to-Many Connections of Buyers to all Suppliers<br />© 2011 Ariba, Inc. All rights reserved. <br />Network<br />Adapter<br />Buyer Portal<br />BUYERS<br /> SUPPLIERS<br />Supplier Portal<br />Finance<br /><ul><li>Administration
  10. 10. Catalog Management
  11. 11. Order Management
  12. 12. Invoice & Payment Management
  13. 13. Reporting & Analytics
  14. 14. Administration
  15. 15. Supplier Enablement
  16. 16. Catalogs
  17. 17. Discounts
  18. 18. Reporting & Analytics</li></ul>Procurement<br />Back Office Systems<br />Direct<br />EDI <br />HTML, PO-Flip® <br />PO Automation<br />Indirect<br />Invoice Automation<br />CSV<br />NETWORK®<br />Buyer<br />Payment Automation<br />Complex<br />Paper / Fax<br /><ul><li>700K+ Trading Partners
  19. 19. $193B+ annual Spend
  20. 20. 40M+ annual PO’s & Invoices
  21. 21. Expanding value-add services</li></ul>AP<br />IT<br />
  22. 22. Benefits of 2-Sided Business NetworkCollaborative Business Commerce Added Value for Buyers and Sellers<br /> Supplier Benefits<br /><ul><li>Improved visibility and control from self-service supplier portal
  23. 23. Reduced order-to-cash cycle
  24. 24. Eliminate exception with smart invoicing
  25. 25. Increased revenue from new customer discovery
  26. 26. Broad value proposition drives 90%+ renewal rate</li></ul>Buyer Benefits<br /><ul><li>70% process cost savings
  27. 27. $2M discount savings on every Billion in spend
  28. 28. $9M in contract leakage savings per Billion in spend
  29. 29. $3M in working capital impact per Billion in spend
  30. 30. Rapid success from buyer/supplier matching
  31. 31. Single connection to existing back office systems</li></ul>6<br />© 2011 Ariba, Inc. All rights reserved. <br />
  32. 32. The Collaboration ImperativeThe Rise of the Networked Enterprise<br />© 2011 Ariba, Inc. All rights reserved. <br />The Networked Enterprise <br />One that uses collaborative technology to connect internal employee efforts to customers, suppliers, and partners. <br />Suppliers<br />50% more likely to:<br /><ul><li>Be a Market Leader
  33. 33. Gain Market Share
  34. 34. Achieve Higher Margins
  35. 35. Increase sales</li></ul>Customers<br />Partners<br />Source: “The Rise of the Networked Enterprise”, December 2010, McKinsey<br />Jacques Bughin and Michael Chui<br />
  36. 36. Q&A<br />www.ariba.com/programs/invoicenow<br />© 2011 Ariba, Inc. All rights reserved. <br />Best-Practice Webinar Series <br /><ul><li>Free Business Case Assessment
  37. 37. Transaction and ramp assessment
  38. 38. Savings estimate
  39. 39. Business case and ROI
  40. 40. Nov 15th– Invoicing Insights
  41. 41. Nov 16th– Solution Demo</li></ul>James Tucker<br />Director Product Marketing<br />Ariba Network & Finance Solutions.<br />(650) 390-1702<br />jtucker@ariba.com<br />Dan Ashton<br />Sr. Solutions Marketing Manager<br />Cloud Commerce Solutions<br />(650) 390-1732<br />dashton@ariba.com<br />Ariba Collaborative Commerce Whitepaper<br />http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=829<br />PayStream Advisors E-invoicing Adoption Benchmarking White Paper<br />http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=819<br /><ul><li>The New Deals: Why Companies Deepening Alliances in Post-Recession Economy White Paper – CFO Research
  42. 42. http://www.ariba.com/resourcelibrary/views/microsites.cfm?asset_id=811</li></li></ul><li>9<br />© 2011 Ariba, Inc. All rights reserved. <br />
  43. 43. Success of Networked Enterprises<br />© 2011 Ariba, Inc. All rights reserved. <br />EQUIPMENT MANUFACTURER<br />GLOBAL INVESTMENT BANK<br />Before<br />After<br />Before<br />After<br /><ul><li>Huge A/P staff for manual P2P processing
  44. 44. Large volume of non PO invoices
  45. 45. Lack of global spend visibility
  46. 46. Risk over ability to conform to VAT requirements
  47. 47. Lost discounts
  48. 48. 75% reduction in A/P headcount
  49. 49. 90% global spend Networked
  50. 50. Improved price, vendor, and VAT compliance
  51. 51. Capturing prenegotiated discounts
  52. 52. Reduced vendor management costs
  53. 53. Enabled 4K suppliers onto Network
  54. 54. Reduced BPO costs by 35%
  55. 55. Now processing ~ 500k invoices/year electronically
  56. 56. Went from 100% paper to nearly 60% e-invoicing with goal of 80% electronic
  57. 57. Drive 70% of invoice transactions off POs
  58. 58. High cost of paper-based, manual invoice processing
  59. 59. Difficulty in managing orders generated by SAP
  60. 60. Interest in improving system ease-of-use</li></ul>WATER TREATMENT<br />HOUSEHOLD PRODUCTS<br />Before<br />After<br />Before<br />After<br /><ul><li>Lack of visibility into orders and invoices
  61. 61. 5% lost POs
  62. 62. 7 FTEs just to track orders
  63. 63. Order/Invoice process delays revenue
  64. 64. Invoice exceptions cause raw materials or equipment delays
  65. 65. Reduced Days Sales Outstanding (DSO) by 5 days
  66. 66. Improved PO and contract matching to invoice
  67. 67. Redeployed 6 employees
  68. 68. Eliminated vendor credit holds since all POs and invoices now visible and managed
  69. 69. Expanding solution deployment to Europe
  70. 70. 970 supplier relationships established in < 1 year
  71. 71. Handling 12K POs and 15K invoices per month
  72. 72. Self-service Supplier Portal reduces costs
  73. 73. PO-Flip® option virtually eliminating invoice exceptions
  74. 74. 99% straight-through processing
  75. 75. “much better option than build solution ourselves in SAP”
  76. 76. Paper invoice costs too high
  77. 77. Unable to deliver and monitor PO’s through SAP
  78. 78. Too many missed discounts due to long invoice process times
  79. 79. Poor on-time payment statistics
  80. 80. Need one global system</li></li></ul><li>BREAK<br />** Ariba Confidential© 2011 Ariba, Inc. All rights reserved. <br />11<br />

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