There are always opportunities to improve your spend management program. If you have your eye on areas of spend, but are uncertain how to tackle them, this session is for you. We explore different ways of buying with SAP Ariba solutions, and discuss which categories of spend are best suited to each. You’ll leave the session well-armed to take on projects for invoice against contract, spot buy, non-PO invoicing, and more, maximizing the value your organization derives from SAP Ariba solutions.

1. PUBLIC
Amina Anderson, Steven Chittenden, Prakhar Singh
August 23, 2017
More Ways to Buy Means More Savings:
Maximizing the Value of SAP Ariba Solutions

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
How Digital Is Your Procurement?
7 Buy Processes in SAP Ariba Solutions
 Catalog (Demo)
 Spot Buy (Demo)
 Contract-Based Requisition
 Invoice Against Contract (Demo)
 Collaborative Requisition (Demo)
 Non-Catalog Requisition
 Non-PO Invoice
Future of Procurement
Q&A
Agenda

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“It is not the strongest of the species that
survives, nor the most intelligent that
survives. It is the one that is most adaptable
to change.”
Charles Darwin

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
World’s largest taxi company
owns no taxis
Largest accommodation provider
owns no real estate
Largest phone company
owns no infrastructure
World’s most valuable retailer
owns no inventory
World’s largest movie house
owns no cinemas
Largest music company
owns no music
Worlds biggest book distributor
owns no books
The digital disruption
is happening
Digital economy

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
How digital
is your
procurement ?

6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
40%
Have a clear digital strategy
Source: Deloitte CPO Survey 2017
26%
Have a clear digital strategy aligned
with the needs of the wider
organization
60%
Of procurement does not have a
clear digital strategy
Source: Deloitte CPO Survey 2017
22%
Have not even started

7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Many CPOs invest heavily in technology trying to improve procurement
effectiveness
45%
70%
43%
Self Service Procurement Mobile Technologies
23%
42%
26%
Cloud based solutions
2014 2015
1.6x
1.8x 1.7x
Excellent
32%
Poor
3%Average
65%
Procurement
effectiveness

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
If you want to streamline your process
Appropriate
content
One landing
page
Reduce
free text
Sufficient
workflows
Right, simple buying
processes
Electronic
data
Mobile access
Advanced
technology and software
Change
management
Supplier
collaboration

9. Buying Processes

10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Different methods are used to support different purchase
needs:
 Groceries 
Weekly, amount varies, paid with credit card or cash
 Mortgage 
Monthly, regular amount, scheduled auto-payment through online bank
 Gas and electric 
Monthly, amount varies, paid manually through online bank
 Household products 
Regular frequency, auto-purchased using subscribe and save
 Home improvement projects 
Infrequent and large amounts, billed by milestone, paid by online bank
Personal examples of buying processes

11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
A procurement solution must be able to
support different types of purchases
 Office supplies
 Promotional products
 Building rental or lease
 Computer equipment and software
 Marketing services
 Business process outsourcing
 Consulting
Corporate purchase examples
25%of organizations truly use the full functionality of
their e-procurement solutions*
* Source: The Hackett Group, “Understanding e-Procurement Part I,” (2014)

12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Buy processes in SAP Ariba solutions
Buy process Description Best used for
Catalog Buyer selects items from a company-specific catalog for purchase.
SKU-based items such as office supplies, promotional products,
noninventoried MRO, IT hardware and peripherals
Spot buy
Buyer selects items from a public marketplace catalog (for example,
eBay, Grainger) for purchase.
Infrequent, one-off purchases fulfilled through public marketplace e-
catalog; can include nonsourced categories
Contract-based requisition
Buyer selects item from a company-specific catalog linked to a contract
based on item, commodity code, or supplier (for example, volume-based
discounts).
Materials and services that include facilities maintenance, items on
consignment, items with tiered pricing
Invoice against contract
Contract pricing terms are entered into the application without the need
for a PO. These terms are available for the supplier to invoice.
Simple and complex services for recurring, milestone, or fixed-fee
activities that include consulting, professional services, snow removal,
janitorial services, rent
Collaborative requisitioning
Collaborative requisitioning takes place between buyer and supplier,
supporting clarification on specifications, spot quotes, and three bids and
a buy.
Simple and complex products and services that require collaboration
between buyer and supplier to include materials with variable pricing,
marketing services, and temp labor
Non-catalog requisition
Buyer enters information manually into requisition, in many cases with a
supplier quote attached.
Infrequent, one-off purchase; sourced through existing suppliers for
materials and services not in a catalog
Non-PO invoice
AP group creates invoice in system for payment, or supplier creates
invoice and routes to buyer for payment.
Infrequent, one-off, and low-dollar purchases such as catering
services, employee reimbursements, and charitable contributions

13. Demo of Catalog and Spot Buy

14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Buy processes in SAP Ariba solutions
Buy process Description Best used for
Catalog Buyer selects items from a company-specific catalog for purchase.
SKU-based items such as office supplies, promotional products,
noninventoried MRO, IT hardware and peripherals
Spot buy
Buyer selects items from a public marketplace catalog (for example,
eBay, Grainger) for purchase.
Infrequent, one-off purchases fulfilled through public marketplace e-
catalog; can include nonsourced categories
Contract-based requisition
Buyer selects item from a company-specific catalog linked to a contract
based on item, commodity code, or supplier (for example, volume-based
discounts).
Materials and services that include facilities maintenance, items on
consignment, items with tiered pricing
Invoice against contract
Contract pricing terms are entered into the application without the need
for a PO. These terms are available for the supplier to invoice.
Simple and complex services for recurring, milestone, or fixed-fee
activities that include consulting, professional services, snow removal,
janitorial services, rent
Collaborative requisitioning
Collaborative requisitioning takes place between buyer and supplier,
supporting clarification on specifications, spot quotes, and three bids and
a buy.
Simple and complex products and services that require collaboration
between buyer and supplier to include materials with variable pricing,
marketing services, and temp labor
Non-catalog requisition
Buyer enters information manually into requisition, in many cases with a
supplier quote attached.
Infrequent, one-off purchase; sourced through existing suppliers for
materials and services not in a catalog
Non-PO invoice
AP group creates invoice in system for payment, or supplier creates
invoice and routes to buyer for payment.
Infrequent, one-off, and low-dollar purchases such as catering
services, employee reimbursements, and charitable contributions

15. Demo of Invoice Against Contract and
Collaborative Requisition

16. 16PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Buy processes in SAP Ariba solutions
Buy process Description Best used for
Catalog Buyer selects items from a company-specific catalog for purchase.
SKU-based items such as office supplies, promotional products,
noninventoried MRO, IT hardware and peripherals
Spot buy
Buyer selects items from a public marketplace catalog (for example,
eBay, Grainger) for purchase.
Infrequent, one-off purchases fulfilled through public marketplace e-
catalog; can include nonsourced categories
Contract-based requisition
Buyer selects item from a company-specific catalog linked to a contract
based on item, commodity code, or supplier (for example, volume-based
discounts).
Materials and services that include facilities maintenance, items on
consignment, items with tiered pricing
Invoice against contract
Contract pricing terms are entered into the application without the need
for a PO. These terms are available for the supplier to invoice.
Simple and complex services for recurring, milestone, or fixed-fee
activities that include consulting, professional services, snow removal,
janitorial services, rent
Collaborative requisitioning
Collaborative requisitioning takes place between buyer and supplier,
supporting clarification on specifications, spot quotes, and three bids and
a buy.
Simple and complex products and services that require collaboration
between buyer and supplier to include materials with variable pricing,
marketing services, and temp labor
Non-catalog requisition
Buyer enters information manually into requisition, in many cases with a
supplier quote attached.
Infrequent, one-off purchase; sourced through existing suppliers for
materials and services not in a catalog
Non-PO invoice
AP group creates invoice in system for payment, or supplier creates
invoice and routes to buyer for payment.
Infrequent, one-off, and low-dollar purchases such as catering
services, employee reimbursements, and charitable contributions

17. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
What’s next?
Robotic process
automation
Machine
learning
Smart
workflow
Cognitive
agents
Natural language
processing
McKinsey identified 5 major trends in source to pay
 Simple rules
 Repeatable tasks
 No interpretation
Examples: enter invoice
capture, copy data into
systems; simulation
 Complex rules
 Pattern matching
 Judgments
 Recommendations
Examples: negotiations,
spend classification,
“what others buy,” trend
recognition
 Simplifies
 Guides
 Extracts insights
 Converts voice
Example: shopping cart
through voice (“Ariba…
I need a new headset”),
such as Siri or Alexa, or
recognizes free text
 Dynamic
 Smart
 Governs
 Learns
Examples: recognizes
and analyzes context,
focuses on impact, such
as warranty case vs.
shopping cart
 Chatbots
 Direct support
 Structured help
 Guides
 Predictive
Examples: chatbox for
direct end-user help; dialog
boxes

18. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“With improved procurement methods, we now have visibility
into spending and cost reduction opportunities. A centralized
service group manages spending across the business, and
proactive analysis is in place to ensure that business needs are
forecasted and addressed.”
Rachean Chanthaweekul,
Vice President Procurement,
PTT Global Chemical Public Group Limited
“SAP Ariba solutions offer flexibility and ease of use while still supporting
robust policies. We were able to emphasize transparency and fairness,
which is very much appreciated by our vendors.”
Asad Zaidi
Director, Procurement and Performance Improvement,
Al-Futtaim Automotive Group

19. 19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“If you don’t change what you
are doing today, all of your
tomorrows will look like
yesterday.”

20. Q&A

21. 21CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
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