Realizing The Full Potential Of Your SAP Procurement Systems


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You've invested tremendous time and money into implementing one or more instances of SAP SRM, PM or MM. Why not the the most out of them? Capture more spend and more suppliers and eliminate your catalog management burden. Hear from companies that have successfully leveraged cloud-based solutions and business networks to extend the reach and ROI of their existing procurement software from SAP, providing an improved user experience, enabling all spend categories, reducing costs, and improving compliance.

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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
  • Realizing The Full Potential Of Your SAP Procurement Systems

    1. 1. Realizing the Full Potential of Your SAPProcurement SystemsPeter BeyelerGlobal eProcurement & Automation ManagerClariant© 2013 Ariba, Inc. All rights reserved.
    2. 2. #AribaLIVEDelivering Measurable BenefitsValue to Companies of All Sizes, Industries, Regions© 2013 Ariba, Inc. All rights reserved.2Supplier ValueBuyer ValueSourcingProcurementProcessAP ProcessComplianceWCM &Discount3-9%ProcessSavings$3-20Savings/Document1-8%SpendSavingsTotalSavingsFasterPaymentAR ProcessProcessingOrdersSales &MarketingIncreasedRevenue15-75%TimeSavings15-75%ProcessSavings5-32%RevenueIncreaseTotalSavingsSource: Ariba customer surveys and interviews
    3. 3. #AribaLIVEAriba Collaborative Value Chain – Direct,Indirect, Services© 2013 Ariba, Inc. All rights reserved.3• 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
    4. 4. #AribaLIVESpeaker Bio - Peter Beyeler© 2013 Ariba, Inc. All rights reserved.4
    5. 5. PublicPeter BeyelerGroup Procurement Services17.05.2013Integrated procure topay process
    6. 6. #AribaLIVEA World Leader in SpecialtyChemicalsCorporate Presentation, February 2013Clariant focuses on creating valueby investing in future profitable andsustainable growth.KEY FACTSSales 2012 (CHF m)6038More than100Group companiesworldwideEBITDA 2012 (CHF m)before exceptionals802End 2012~21202employeesRepresented in76countries worldwide7Business Units(incl. discontinued operations)
    7. 7. #AribaLIVEOur Vision. Our MissionOur VisionWhere we want to goWe aim to be the global leading company forspecialty chemicals and to stand out byabove-average value creation for all of ourstakeholders.Our MissionHow we aim to get thereWe build leading positions in the businesses we areactive in.We adopt functional excellence as part of ourculture.We create value through appreciating the needs ofour customers, our employees,our shareholders and our environment.
    8. 8. #AribaLIVEProcurement Value Added for theAdoption of Functional Excellence improve the procure to pay process transferring standard procedures into automated processes to reduce manual errors and gain process speed reduce requisition to order cycle times and lack of requisition to order efficiency facilitate strategic supplier relationships and increase the use of preferred vendors reduce supplier complexity reduce material and service costs (negotiation and contracts) enforces compliance to contract reduce material costs and increase spending controls streamline approval process e-procurement empowers requestors leaving the purchasing professionals to concentrate on more addedvalue activities than operational purchasing
    9. 9. #AribaLIVEProcurement Evolution @ Clariant9Traditional “Purchasing Mindset” Service to the Company Fragmented supplier base Negotiate case by case Local view etc.Supplier consolidation / Global lead buyerconcepts Reduce complexity (PRAGMATISM andSIMPLICITY) Global view and global negotiation Supplier consolidation Tool StandardizationProcurement management for strategygrowth Source of innovation Faster introduction of new markets Manage Cash Exclusive knowledge capture and leverage Procurement is a strategic key activity Long term securing of price, volumes,serviceScopeOperational StrategicImpacttoClariantCostShareholderValue
    10. 10. #AribaLIVEContinuous Improvement ofeProcurementKEY FACTSEnabled CountriesWorldwide20Until 201251%Indirect automationMore than203`049Transactions
    11. 11. #AribaLIVECategory Automation
    12. 12. #AribaLIVECommon P2P ProcessEnduser is creating hisMaterial request in SAPTo send it to the responsibleProcurement PersonProcurement issues the POAccording the first in first outprinciple.OCRScanningVerifierInterpretTransferCockpitApprovalManual Handling and plausibility checkPayables
    13. 13. #AribaLIVEP2P Complexity ReductionEnd-user accesses one of theover 280 catalogs and selectsthe needed Products and ordersimmediatelyeInvoice GRCockpitApprovalPayables
    14. 14. #AribaLIVEP2P System Integration @ ClariantAn SAP CompanyMMFISRMeProcurement SRM POsCall Off & Standard MM POsCollaboration , Integration, Transparency, NetworkEDIHTMLcXMLCSVBusiness Rule CheckentityPOComplianceInvoice#Supplier
    15. 15. #AribaLIVEP2P Enablement Targets• Reduction of NWC• Cash Flow Savings• Reduction of Invoice ageing• P2P Process Speed up• Proc & AP Process Optimization• Realizing more cash discount• Process compliance• Back Log reduction• Process compliance and failure rate reduction
    16. 16. #AribaLIVELessons LearnedTop Management Support!Understand eProcurement as Key Element and Strategic Tool forOperational Procurement Activities!Agree on Personal Targets based on the eProcurement Rate!Clear Organization & ResponsibilitiesDedicated Support Functions from Network Provider Necessary
    17. 17. #AribaLIVE17
    18. 18. #AribaLIVEDisclaimerThis presentation contains certain statements that areneither reported financial results nor other historicalinformation. This presentation also includes forward-looking statements.Because these forward-looking statements are subjectto risks and uncertainties, actual future results may differmaterially from those expressed in or implied by thestatements. Many of these risks and uncertainties relateto factors that are beyond Clariant’s ability to control orestimate precisely, such as future marketconditions, currency fluctuations, the behavior of othermarket participants, the actions of governmentalregulators and other risk factors such as: the timing andstrength of new product offerings; pricing strategies ofcompetitors; the Companys ability to continue to receiveadequate productsfrom its vendors on acceptable terms, or at all, and tocontinue to obtain sufficient financing to meet its liquidityneeds; and changes in the political, social andregulatory framework in which the Company operates orin economic or technological trends or conditions,including currency fluctuations, inflation and consumerconfidence, on a global, regional or national basis.Readers are cautioned not to place undue reliance onthese forward-looking statements, which speak only asof the date of this document. Clariant does notundertake any obligation to publicly release anyrevisions to these forward-looking statements to reflectevents or circumstances after the date of thesematerials.
    19. 19. Questions?
    20. 20. #AribaLIVEPlease Complete Session Survey© 2013 Ariba, Inc. All rights reserved.20Find Sessionin ScheduleClickChoose oneRateSessionThank you for joining usClick Survey andSelect BreakoutSession Survey