Supercharge your Ariba Investmentwith Dynamic Discounting andValue Engineering!© 2013 Ariba, Inc. All rights reserved.
Deb BolingerDirector of Operations, UPS Accounts Payable & Purchasing© 2013 Ariba, Inc. All rights reserved.Andrew Riching...
#AribaLIVEValue Engineering Team(Managed Services)Discount Professional™(Technology)$/€ Savings + DPO Improvement(Outcome)...
#AribaLIVE1) Capturing missed discounts through Ariba’s smart invoicing approach2) Rapidly enabling more suppliers to incr...
#AribaLIVEAbout Ariba Value Engineering• Trusted Advisor RoleInterview key stakeholder: What’s working and challengesRecom...
#AribaLIVEAriba Working Capital Managed Service• Spend Analysis and Business Case DevelopmentPeer benchmarking and Data En...
UPS – Early Payment OutreachDeb BolingerDirector of Operations, UPS Accounts Payable & Purchasing© 2013 Ariba, Inc. All ri...
#AribaLIVEUPS – Overview• Founded in 1907• Corporate Headquarters: Atlanta, GA• Primary Business Units: Small Package, Sup...
#AribaLIVEUPS Terms Challenges• Issues• Incorrect ERP Payment Terms• Contracts without Defined Payment Terms• Long-Term Co...
#AribaLIVEEarly Payment Outreach Campaign• Partnered with Ariba for a three-year managed programPay-for-performance model ...
#AribaLIVECampaign ResultsWave 1 – Low Spend Suppliers• $308MM in target spend• 20% of spend and 18% ofsuppliers converted...
#AribaLIVELessons Learned/Key Insights• Higher Levels of Procurement EngagementCreate up-front partnership between Campaig...
John Wiley & Sons Publishers: GlobalWorking Capital & Discount StrategyAndrew RichingsManager, Strategic Sourcing and Proc...
#AribaLIVEAbout Wiley• Established in New York, N.Y. in 1807• Serves professionals, scientists, educators, students, lifel...
#AribaLIVECurrent State Challenges• Paper-based Procure to Pay processes• No centralized contract repository• Process larg...
#AribaLIVEWorking Capital Objectives• Alignment and standardization of global payment term strategyImproved Days Payable O...
#AribaLIVEProject Status (Still early stage)• Project kick off (Jan) and planned Procure To Pay and DiscountPro Go live(Ju...
#AribaLIVELessons Learned• Cross-functional executive team allowed for fastapprovals• Ariba’s guidance was meaningful and ...
ONEOK: Funding AP/TreasuryTransformation with DynamicDiscountingAndrea CooperDirector, Treasury & Finance© 2013 Ariba, Inc...
Page 20ONEOK, Inc.• Assets that fit and worktogether– Integrated operations– Connecting prolific supplybasins to key marke...
Page 21ONEOK’s Accounts Payable Journey• Our vision:– Centralized structure– Transition from manual entry method to an onl...
Page 22Strategic Partner - Ariba• Discount professional services (Rapid Ramp Service) –started immediately after contract ...
Page 23Lessons Learned / Key InsightsJuly 2012 – “go live” with Ariba– Invoice/PO automation; invoice professional; invoic...
Questions?
#AribaLIVEPlease Complete Session SurveyGo to Surveys© 2013 Ariba, Inc. All rights reserved.25Select SessionClickChoose on...
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Supercharge Your Ariba Investment with Dynamic Discounting and Value Engineering

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Are you considering Dynamic Discounting with Ariba Discount Professional™, but not sure if you have the internal expertise or focus to achieve your full potential? Never fear, the Value Engineering Team is here! Ariba combines market leading dynamic discounting technology with the industry’s most experienced managed services team dedicated solely to helping you achieve world class dynamic discounting results. In this session you will hear from a panel of customers who have combined Ariba Discount Professional™ and Managed services to accelerate their time to value and achieve excellent results.

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  • At ONEOK and ONEOK Partners:We have assets that fit and work together.. connecting prolific supply basins to key marketsA track record of… and commitment to… disciplined growth… in and around our operating footprint… which now includes approximately $3 billion of investments planned through 2014… and a $1 billion-plus backlog of unannounced projects.And a proven ability to create value for our investors and customers…
  • Supercharge Your Ariba Investment with Dynamic Discounting and Value Engineering

    1. 1. Supercharge your Ariba Investmentwith Dynamic Discounting andValue Engineering!© 2013 Ariba, Inc. All rights reserved.
    2. 2. Deb BolingerDirector of Operations, UPS Accounts Payable & Purchasing© 2013 Ariba, Inc. All rights reserved.Andrew RichingsManager, Strategic Sourcing and Procurement Operations, JohnWiley & Sons PublishersAndrea CooperDirector, Treasury & Finance, ONEOK, Inc.Linda PiazzaDirector, Working Capital Management, Ariba, An SAP company
    3. 3. #AribaLIVEValue Engineering Team(Managed Services)Discount Professional™(Technology)$/€ Savings + DPO Improvement(Outcome)Ariba Discount Management ComponentsTechnology + Managed Services packaged together
    4. 4. #AribaLIVE1) Capturing missed discounts through Ariba’s smart invoicing approach2) Rapidly enabling more suppliers to increase the amount of spend under discount3) Introducing sliding scale dynamic discounts.4) Giving Visibility into Opportunity to right audience and providing Technologyto act on it.Example:2% 10 Net 302%1%0%2.5%Best Practices for Dynamic DiscountingSupercharge Savings with Ariba Discount Management
    5. 5. #AribaLIVEAbout Ariba Value Engineering• Trusted Advisor RoleInterview key stakeholder: What’s working and challengesRecommend solutions/services that address current challengesPrescribe process changes to support efficiencies or prepare for transformation to automationHelp identify risks in advance and advise how to mitigate• Success PlanningAn evaluation that not only pinpoints savings and cash management opportunities thatare trapped inside your Procurement and Finance operations, but provides details on how torealize those benefitsSavings timelineIntegrated supplier flight plans that show size/scope/timing of deployment• Why do companies participate?A personalized readout that shows areas of savings potential and categories of spend thatcan/should be fully enabledProjected benefits, ROI and how to accelerate time-to-valueClear understanding of what it will take to achieve benefitsMinimal investment of time and resources to ensure success© 2013 Ariba, Inc. All rights reserved.5
    6. 6. #AribaLIVEAriba Working Capital Managed Service• Spend Analysis and Business Case DevelopmentPeer benchmarking and Data EnrichmentSupplier Liquidity AnalysisSuppliers already participating in early pay programs• Program DesignWorking Capital/DPO Improvements and/or Early Pay SavingsPayment Terms Standardization and Early PayACH• Unlimited Supplier OutreachPosition customer approved messaging and termsAugments Procurement by working through a different stakeholder: Finance Channel• Lifetime Program Management© 2013 Ariba, Inc. All rights reserved.6
    7. 7. UPS – Early Payment OutreachDeb BolingerDirector of Operations, UPS Accounts Payable & Purchasing© 2013 Ariba, Inc. All rights reserved.
    8. 8. #AribaLIVEUPS – Overview• Founded in 1907• Corporate Headquarters: Atlanta, GA• Primary Business Units: Small Package, Supply ChainSolutions and UPS Freight• 2012 Delivery Volume: 4.1 Billion packages/documents• 2012 Total Revenue: $54.1 Billion• Employees: 397,100• 2,915 Operating Facilities Worldwide© 2013 Ariba, Inc. All rights reserved.8
    9. 9. #AribaLIVEUPS Terms Challenges• Issues• Incorrect ERP Payment Terms• Contracts without Defined Payment Terms• Long-Term Contracts that Neglect Changes inthe Financial Climate• Considerations when Finding a Solution• 30,000+ local and national suppliers• Avoid risk associated with “reopening” existing contracts• Identifying the supplier’s financial contacts vs. sales© 2013 Ariba, Inc. All rights reserved.9
    10. 10. #AribaLIVEEarly Payment Outreach Campaign• Partnered with Ariba for a three-year managed programPay-for-performance model based on actual discounts realized• Inclusion of all spend, not just the spend targeted for Ariba Networke-invoicingFacilitates prioritization of suppliers for Ariba Network enablementValidation of commodities interested in cash acceleration• Objectives:Validate Contract Payment TermsConvert suppliers without Contract Terms to Net 45 Payment TermPosition Early Payment Offers to Supplier’s Financial Teams© 2013 Ariba, Inc. All rights reserved.10
    11. 11. #AribaLIVECampaign ResultsWave 1 – Low Spend Suppliers• $308MM in target spend• 20% of spend and 18% ofsuppliers converted to adiscount term• 31% of spend and 32% ofsuppliers agreed to paymentterm extensions of at least15 daysWave 2 – Med. Spend Suppliers• $276MM in target spend• 15% of spend and 19% ofsuppliers converted to adiscount term• 44% of spend and 46% ofsuppliers agreed to paymentterm extensions of at least15 days© 2013 Ariba, Inc. All rights reserved.11• Low UPS resource impact• Exceeded projected discount savings goals by three times• High call quality – low supplier escalations• Solid partnership and executing above expectations
    12. 12. #AribaLIVELessons Learned/Key Insights• Higher Levels of Procurement EngagementCreate up-front partnership between Campaign andProcurement leadership• ImplementationAn all-encompassing approach works for some, but not all organizationsPhasing smaller groups of spend/suppliers provides the opportunity toshowcase success• Change ManagementLarge, complex organizations require frequent andmulti-level coordinationSenior management cross-functional support© 2013 Ariba, Inc. All rights reserved.12
    13. 13. John Wiley & Sons Publishers: GlobalWorking Capital & Discount StrategyAndrew RichingsManager, Strategic Sourcing and Procurement Operations© 2013 Ariba, Inc. All rights reserved.
    14. 14. #AribaLIVEAbout Wiley• Established in New York, N.Y. in 1807• Serves professionals, scientists, educators, students, lifelong learners, andconsumers worldwide.• Publisher/provider of books, journals and content-enabled services• Unique collection of businesses/subject mattersGlobal ResearchProfessional DevelopmentGlobal Education• 5,200 employees• $1.8 billion revenue (FY2012), 50% generated outside U.S.• Global headquarters: Hoboken, NJ• Global operations: North America, Europe, Asia, South America,Middle East© 2013 Ariba, Inc. All rights reserved.14
    15. 15. #AribaLIVECurrent State Challenges• Paper-based Procure to Pay processes• No centralized contract repository• Process large volumes of paper invoices• Wide variation in global payment terms with limitedearly payment discount terms in place• Approval cycles often missed early payment window© 2013 Ariba, Inc. All rights reserved.15
    16. 16. #AribaLIVEWorking Capital Objectives• Alignment and standardization of global payment term strategyImproved Days Payable OutstandingProvide guidelines for Procurement and AP• Growth in adoption of early payment termsDeliver incremental savings• Growth in US ACH/electronic payment• Leverage Ariba’s Rapid Ramp methodology and working capitalManaged ServiceExperience and Network insightFaster ROI with reduced impact on Wiley resources• Create savings to fund larger automation project initiatives© 2013 Ariba, Inc. All rights reserved.16
    17. 17. #AribaLIVEProject Status (Still early stage)• Project kick off (Jan) and planned Procure To Pay and DiscountPro Go live(June 2013) – Part of an overall strategic sourcing and procurement implementation• Completed working capital strategy and scope (Feb/Mar)Countries and suppliers in scopeAgreed to payment terms offering (regional variations)Completed supplier messaging (regional variations)• Completed internal communications (Feb/Mar)CEO message and corporate-wide announcementEmail to Regional AP and Procurement headsIndividual Email to procurement owner/AP approversInternal Portal – Housing pertinent tools, resources and informationfor colleagues• Ariba payment terms supplier outreach (Apr)© 2013 Ariba, Inc. All rights reserved.17
    18. 18. #AribaLIVELessons Learned• Cross-functional executive team allowed for fastapprovals• Ariba’s guidance was meaningful and adopted• Leveraging Rapid Ramp methodology is key todelivering results while still deploying larger solution• Early and frequent internal communication wasbeneficial• Payment terms were all over the place…savingsthrough consolidating© 2013 Ariba, Inc. All rights reserved.18
    19. 19. ONEOK: Funding AP/TreasuryTransformation with DynamicDiscountingAndrea CooperDirector, Treasury & Finance© 2013 Ariba, Inc. All rights reserved.19
    20. 20. Page 20ONEOK, Inc.• Assets that fit and worktogether– Integrated operations– Connecting prolific supplybasins to key markets• Proven ability to growprofitably• ONEOK Partners isONEOK’s primary growthvehicle• ONEOK Partners’ cashdistributions drive ONEOKshareholder value• Demonstrated financialflexibility and disciplineA Premier Energy CompanyONEOK Natural Gas DistributionONEOK Energy ServicesLeased Pipeline CapacityLeased Storage CapacityONEOK PartnersGeneral Partner43.4% ownership (as of Dec. 31, 2012)
    21. 21. Page 21ONEOK’s Accounts Payable Journey• Our vision:– Centralized structure– Transition from manual entry method to an online, automated method withcoding/approval workflow– Outsource invoice scanning to capture the suppliers that are not participating inelectronic invoicing process– Ability to have dynamic discounting available to our suppliers• ONEOK centralized the accounts payable organization in 2010• ONEOK needed a strategic partner to complete our visionespecially as it relates to dynamic discounting– Discounting returns were a key component in business casePrior to 2010 ONEOK and ONEOK Partners accounts payable organization was decentralized, paper basedand with a manual entry method
    22. 22. Page 22Strategic Partner - Ariba• Discount professional services (Rapid Ramp Service) –started immediately after contract signing – October 2011– First wave approximately 500 suppliers; $1.1 million in potential discounts– Offered the following terms:• 2.0% 10, net 30• 1.5% 15, net 30• 1.0% 20, net 30• 0.5% 25, net 30• Net 45– Ariba instrumental helping target the right suppliers, strategy of how westructured the calling campaign and flexible on the message to our suppliersDiscounting program and early successes
    23. 23. Page 23Lessons Learned / Key InsightsJuly 2012 – “go live” with Ariba– Invoice/PO automation; invoice professional; invoice conversion servicesWhat we did right?– Engage the Rapid Ramp service– Monitor the missed discounts and target where the in the approval process isslowing the payment– Provide all new vendors with discount options at the time of setupWhat would we have done differently?– Engage supplier relationship manager early in the project for “buy in”– More robust company-wide communications & education– Change-management initiatives – you need the operations staff in your corner!Communication! Communication! Communication!
    24. 24. Questions?
    25. 25. #AribaLIVEPlease Complete Session SurveyGo to Surveys© 2013 Ariba, Inc. All rights reserved.25Select SessionClickChoose oneRate SessionThank you for joining us

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