Marketplaces are increasingly important for business-to-business (B2B) buying and selling. But how do you enforce procurement policies without the right access, filters, and control? This must-attend session will teach you how to rationalize your supply chain, simplify nonsourced buying, and augment and replace outdated and overpriced catalogs. The panel will feature experts from the SAP Ariba solution innovation team, AIG, eBay, and HP.

1. PUBLIC
March 22, 2017
Shannon Simmons, Ariba Program Manager, AIG - P2O + Spot Buy
Juan Sans, Director Finance Technology, eBay - SRM  APC + Spot Buy
Chris Dunlap, Director Global Indirect, HP - Ariba Buyer  APC + Spot Buy
James Tucker, Vice President, Go-to-Market Strategy, SAP Ariba Spot Buy
Spot Buy Capability
Your Custom B2B Marketplace
Session #42895

2. The Emergence of Spot Buy Capability in B2B Buying and Selling
James Tucker, Vice President, Go-to-Market Strategy, SAP Ariba Spot Buy

3. 3© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Strategically sourced
 High-dollar
 High complexity
 Category management
 RFx/auctions
Catalogs / Buy desk
 Mid-dollar items
 Lower complexity
 Punch-out or CIF
 3 bids and a buy
H i
Ad hoc
 Low-dollar Items
 Not sourced
 Not in catalog
 P-Card, expense, …
*The Hackett Group: “Using Technology to Streamline Tactical Sourcing”. April 2013.
Today’s buying challenges
L o
H iTime
Cost/Risk
 Strategic spend represent 70% of spend, but
often less than 20% of suppliers
 Catalogs / Buy desk face increasing
pressure to maintain advantages in
disruptive era of marketplaces
 Ad hoc is the last frontier for spend
management and CPOs want to get control over
P-Card abuse and the growing tail of one-off
suppliers

4. 4© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Strategically sourced
 High-dollar
 High complexity
 Category management
 RFx/auctions
Catalogs / Buy desk
 Mid-dollar items
 Lower complexity
 Punch-out or CIF
 3 bids and a buy
H i
Ad hoc
 Low-dollar Items
 Not sourced
 Not in catalog
 P-Card, expense, …
L o
H iTime
Cost/Risk
*The Hackett Group: “Using Technology to Streamline Tactical Sourcing”. April 2013.
Spot buy capability for today’s buying challenges
Spot buying
capability
 Strategic spend represent 70% of spend, but
often less than 20% of suppliers
 Catalogs / Buy desk face increasing
pressure to maintain advantages in
disruptive era of marketplaces
 Ad hoc is the last frontier for spend
management and CPOs want to get control over
P-Card abuse and the growing tail of one-off
suppliers

5. 5© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Your custom B2B marketplace
Spot buy capability
EASY to buy goods from TRUSTED
supply with built in CONTROL
EASY to find and buy what you need
fast from over 11 million items
Search Select
CheckoutReceive
TRUSTED source of pre-enabled
supply with over 130 vetted suppliers
Delivery
Quality
Price
CONTROL because you customize to
meet your policies and procedures

6. User convenience

7. Bluetooth headset

8. Nothing found in
company catalog …
Company catalog (0)
so try
spot buy…

9. 24,692 items found
24,692!!

10. 50 100
24,692 items found2,185 items found
2,185

11. 50 100
24,692 items found2,185 items found
10
835 items found
835

12. 50 100
10
835 items found
x
7 items found
7

13. 50 100
10
x
7 items found1 item found
Buying made
simple…

14. Procurement control
Can we limit
suppliers?
It’s our
custom B2B
marketplace!
And, it will help
with our
existing
catalogs.
Can we set
price
thresholds?
Yes, and select
approved
categories.Yes, and
select
favorites too.

15. 15© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Preparation
 Assign a single ghosted P-Card
 Add single proxy vendor to ERP
Spot buy – advance preparation and analysis
1234 5678 1111 2222
Company Exp 9/2019
Eliminates walk-around P-Card usage and misuse.
Increases P-Card rebate savings (~1%)
One vendor added to ERP reduces vendor management
and long-tail supplier costs (~$100 per vendor)ERP
Spot
Buy
Suppliers
Spend
Suppliers
Spend
Suppliers
Catalogs
Users
Analysis
Spend
Basic users – SAP Ariba users,
employees, …
Power users - Buy-desk,
BPO, commodity managers,
exec admins, …
Identify catalogs with gaps, high
prices, not used, … to augment or
replace with spot buy
Identify spend of non-sourced
goods, non-travel T&E, P-Card,
non-catalog, catalog replace, and
more
Identify one-time ad hoc suppliers with
potential for replacement with spot buy

16. 16© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Spot buy – your custom B2B marketplace
Commodity / price
• Select approved commodities (UNSPSC)
• Establish spot buy workflow rules
• Set pricing thresholds
* Spot buy capability is subject to regional availability
It starts with trusted supply…
Delivery
Quality
Price
Your supply controls
All available supply
Top rated
Select
Custom
t h o u s a n d s m o r e
Preferred items and swimlanes
Select items you want at top of search results
Placement of promotional and preferred items
Reporting and reconciliation
03/07/2017, $50, Acme Co.
+PO#, user, commodity code,
line item $, tax, shipping, …
Lvl-1
Lvl-3
Enriched transactional data for improved
reporting, analysis, and reconciliation

17. PUBLIC
Director Finance Technology @ eBay
juansans@ebay.com
Juan Sans
eBay Business Supply

18. eBay Business Supply
 Overview and Differentiator
eBay For Work
 Opportunity, Adoption and Financial Reconciliation
Agenda

19. • 7 million B2B-oriented item listings
• Thousands of trusted, top rated, commercially vetted
suppliers
• Facilities & MRO, Electrical & Test, Technology, Office
Supplies, Parts & Accessories, and many more categories
• eBay seller prices often lower than negotiated catalog
supplier prices
• eBay Money Back Guarantee protects every purchase on
eBay

20. $21.1B Global GMV
$1.9B Global Revenue
1.1 Billion Live Listings
67% of transactions Ship for Free (US, UK, DE)
81% of items sold on eBay are New
87% of eBay’s GMV is Fixed Price (not Auctions)
eBay Marketplace at a glance (Q4 2016)

21. Level 1 Vetting – eBay Top Rated Seller (eTRS)
 Upload valid ship tracking within 1 day of selling the item
 Defect rate of <0.5% of transactions within a month period
 Cases closed without seller resolution <0.30%
 Carrier scan of ship tracking <3% of transactions beyond the stated 1 day or less handling time
Level 2 Vetting – Business Preferred Suppliers
 Organizational structure – parent and subsidiary relationships
 Supply Chain – quality and stability of suppliers
 Company history
 Review of new and existing Inc. relationships
 Brand Risk Management or Compliance concerns
 Financial Statement analysis
Spot Buy Seller Vetting
Two level Vetting to ensure Buyer Confidence and Satisfaction
 Review of debt ratings (if any)
 Detail of capital funding
 Business credit review
 Derogatory credit public filings
 Calculation of estimated exposure

22. Facilities & MRO Electrical & Test Auto Parts &
Accessories
Technology &
Accessories
Office Supplies Other Goods

23. eBay For Work – Opportunity & Adoption

24. Address Tail Spend
Productivity - Cost. Focus on what’s “Core”
Simple, Controlled, Convenient
Adoption
Opportunity
Focus Groups
Spend Categories
Top-Down Communication
Financial
Reconciliation
PO Processing
Conversion, Enrichment, and Matching

25. Financial Reconciliation
APCERP
Shopping Cart
ARIBA
NETWORK
Spot buy
capability
Purchase
Order
Ordering
Charge Data
Enrichment SAP
Ariba buyer
Approval
Level 3 Enriched
Data Charge
Invoice
Creation
SRM Catalog
SRM Shopping
Cart
Seller
Place
Order
Seller
Accepts
Order
L1 Bank
Statement
Conversion
Format
Macro
Upload
Program
Desktop
Folder
Invoice
Upload
Post Against
POs
Vendor
Payment
SAP ARIBA
BUYER
User

26. What’s Next
Guided Buying
Category Augmentation
Migration to P2O

27. PUBLIC
Mar 21, 2017
Shannon Simmons, Program Manager
Spot Buy at AIG

28. 28© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
 AIG is a leading global insurance organization with 56,400 employees and
operations in more than 80 countries
 Founded in 1919 in Shanghai, China
 Headquartered in New York
 Core Businesses:
− Commercial Insurance
− Consumer Insurance
− Other Operations
 AIG serves over 87% of the Fortune Global 500 and 83% of the Forbes
2000
Data: AIG Company Site /2016 10k Report

29. Greece and France
begin using Ariba
Ariba at AIG
deploys globally
• Spain (P2P)
• Italy (P2O)
• Germany (P2P)
• South Africa (P2P)
• UK (P2O)
Japan begins
using Ariba
• Japan (P2P)
2000 2013 2014 2015 2016
• Greece (P2P)
• France (P2P)
• Spot Buy
Pilot Go-Live
• Interactive
Email Go-live
2017
Spot Buy
Live for all
US Users
AIG, Inc. – Our Procurement Journey
Ariba
launched
throughout
AIG in US

30. 30© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Goals & Strategies – Tie into Spot Buy
Goal Spot Buy Strategy
Manage Spend and Compliance Better Upfront controls
User Satisfaction Ease of Use
Reduce costs Competitive Pricing and Savings

31. Spot Buy Adoption Strategy and Next Steps
Phase 1
Pilot Users
Phase 2
All Users
Categories All Commodities – Price
Restricted (over $3K)
Evaluating Office Supplies,
MRO & Facilities
Users 50 Pilot Users (w/ more
added)
All US Users
Suppliers Ebay Sellers & some
Network Sellers
Ebay Sellers & some Ariba
Network Sellers

32.  Greater savings achieved
than anticipated
 Sourcing Decisions &
Catalog Strategy
 Training & Adoption
Key Learnings and things to consider
“I was pleasantly surprised at the
significant savings compared to our
approved vendors. We saved over
$150 reordering a sit-stand desk.
Have also used this for ordering
items for our Mac users. Great new
tool!! Happy customer here….  ”
“Spot buy is a life saver!”

33. Spot Buy at HP Inc.
Global Indirect Procurement
Chris Dunlap
March 21, 2017

34. HP today
© Copyright 2016 HP Development Company, L.P. The information contained herein is subject to change without notice.34
Fortune 100
company
$48.2B
revenue in FY16
Operations in
170 countries
~50,000
employees
Fortune
Most Admired
#7 in technology
250,000+
channel partners
18,000+
patentsHP ships 1 printer
every second
HP’s Commercial PCs
rank #1 or #2
in 44 of the top
48 countries
HP ships 1.7 PCs
every second
HP’s Printing
ranks #1 or #2
in 42 of the top 45
countries (ink + laser)
Powering 430 of
the Global
Fortune
500 companies

35. Global Indirect Procurement Landscape at HP Inc.

36. Buying Challenges at HP
Currently..
 Catalogs are complex to maintain
 Average Request to PO (R2PO) approval process is 9.5 days
 Average 3.5 days to setup a vendor
 Customers experience difficulty finding the right products, commodities, etc.
 Small amount of spend channeled through a long tail of suppliers

37. HP Inc. Indirect Procurement Supplier Spend Analysis
37
Tail Spend at HP Inc
Findings:
• 6% of Suppliers account for 80% of the total Spend
• 49% of the Global Spend occurs in the US
• 44% of Indirect Suppliers at HP are considered “one-off”
Spend 80%
with 6% of Suppliers
Spend 20%
with 94% of Suppliers
SUPPLIERS
US
Spot Buy
Potential
PO Volume 27% of global 34% of US
Spend 49% of global >$20M of US
80% Spend against
6% of suppliers
2300+0
20% Spend against
94% of suppliers
GIP Spot Buy Assessment

38. Spot Buy at HP
The Solution
Implement SAP Ariba Spot Buy Catalog to drive low
risk, low cost spend away from the non-catalog and
managed catalog channels to spot buy.
Timeframe Users Commodities
Phase 1 – Pilot Oct ‘16 – Jan ‘17
25 (PCard
Users)
5 categories: PC accessories, office supplies, gifts/flowers,
paper supplies, R&D/material accessories
Phase 2 – US Roll-Out March ‘17 >15K
+ manufacturing parts, electrical components, additional PC
accessories, raw materials, cleaning equipment and
supplies, containers and storage, office equipment, books
Phase 3 – Global Roll-Out
TBD (target
4Q17)
TBD TBD
Implementation
Plan

39. Spot Buy Benefits for HP Inc.
Cost Reduction Purchasing Efficiency Employee Experience Control Spend
• Less manual interaction
• Increase corporate card
incentives
• Saving on PO costs
• Reduced catalog
maintenance costs
• Competitive pricing
• Speed to purchase (TAT)
• Reduced Vendor
Management (reduce the
tail)
• Fewer non-Catalog orders,
fewer one-off suppliers
• Integrated to Ariba Buyer
• Reduction of Approvals
• Much wider variety of
products
• Improved employee
satisfaction
• Return process
• Robust workflow and
Approval controls
• Full control over available
commodities, spend
thresholds and available
suppliers
• Restriction by Brand (an HPI
/ SAP Ariba enhancement)

40. Key Learnings
Adoption Challenges
• Current PCard users have become used to
using other consumer on line marketplaces
(and like the 2 day shipping option that is not
always available in spot buy)
• Some needed product categories are not
available in spot buy (e.g., Flowers and R&D
Parts)
• Return Process requires extra handling from
HPI personnel
Technical implementation
• On Premise platform required extra configuration
from IT and hotfixes from SAP Ariba solutions
• Our PayPal implementation required us to bypass
employee social security number (we had HPI
personnel in Mexico setting up a US account)
• We needed to create a generic company mailbox for
PayPal and Ebay business accounts
• Reconciliation process for spot buy did not integrate
with our existing PCard configuration requiring us to
create a separate spot buy process
• Commodity classification may be different from
different suppliers for the same product
What our Customers are saying
“This stuff is great!”
“I love this new tool!”
“It is cheaper than SmartBuy..”

41. Wrap-Up

42. 42© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Vision for spot buy
TRUSTED SUPPLY EVERY SAP CUSTOMER ALL OVER THE WORLD
Delivery
Quality
Price
Note: SAP Ariba Spot Buy supply subject to regional availability
Offer trusted pre-enabled supply to
every SAP customer all over the world

43. 43© 2017 SAP SE or an SAP affiliate company. All rights reserved.
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Spot buy capability in 2017
Ariba Network suppliers –
expanding sources of trusted
supply in USA
… and in Europe
… expanded to Canada,
Australia and New Zealand
Amex (gold sponsor) – expanded partnership to include
virtual card technology that will streamline payment and
reconciliation
eBay – 1st marketplace partner
for trusted supply in USA
Mercado Libre – new partnership
to power supply in Latin America
Note: Spot buy supply subject to regional availability

44. 44© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
How to acquire spot buy capability*
2 options – included feature or stand-alone product
SAP Ariba Spot Buy Catalog
• Stand-alone product
• On-demand catalog of trusted pre-
enabled supply including 11 million
items from 130 suppliers with thousands
more from marketplace partners
• Plugs into your existing e-procurement
tool
SAP Ariba Buying
• Included features of SAP
Ariba Buying solutions
formerly known as
o Ariba Procure-to-Pay
o Ariba Procure-to-Order
o Ariba Procurement Content
Other e-procurement
such as SRM/MM/PM
solutions from SAP
Savings
• Process savings
• Price savings
• Increase rebates
Control
• Improve visibility
• Increase compliance
• Simplify reconciliation
Value
• Increase managed spend
• Rationalize vendors and catalogs
• Improve user adoption and satisfaction

45. 45© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Additional information
www.ariba.com/go/spotbuy
Sessions at SAP Ariba Live
• #42895 Buyer focus – “Spot Buy –Your Custom B2B
Marketplace” – Wed 3:15 PM-04:15 PM Yaletown 4
• Demo Theatre – Spot Buy Tuesday 2:00 pm
• #42828 Supplier focus – “New Channel to Reach SAP
Customer Tactical Buying Demand” – Wed 2:00 pm
• #42895 Buyer focus – “Spot Buy – Your Custom B2B
Marketplace” – Wed 3:15 PM-04:15 PM Yaletown 4
Speaker contact information
 James Tucker, SAP Ariba (SAP)
James.tucker01@sap.com
 Juan Sans, eBay
Juansans@ebay.com
 Shannon Simmons, AIG
Shannon.Simmons@aig.com
 Chris Dunlap, HP, Inc.
Chris.dunlap@hp.com
Questions?

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