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#AribaLIVE
@ariba
#AribaLIVE
@ariba
Supply Chain Collaboration with
Direct Materials Suppliers:
Manitowoc Shares Their Vis...
#AribaLIVE @ariba#AribaLIVE @ariba
Supply Chain Visibility Is Key to
Achieving the Perfect Order
2
of buyers have poor
vis...
#AribaLIVE @ariba#AribaLIVE @ariba
Few Organizations Use the Full Range of
Supply Chain Collaboration Options
3
Source: No...
#AribaLIVE @ariba#AribaLIVE @ariba
Today’s Presenters
• Bruno Durand
 Process Excellence and Data Governance
• Ariba
 Ma...
#AribaLIVE @ariba#AribaLIVE @ariba
Manitowoc’s Transformation
Manitowoc is a global industrial manufacturer
with two marke...
#AribaLIVE @ariba#AribaLIVE @ariba
Industry-Leading Foodservice Company
Broadest Portfolio Offering Market-leading Brands
...
#AribaLIVE @ariba#AribaLIVE @ariba
Industry-Leading Crane Company
Award-winning Technology #1 in Major Crane Categories
Le...
#AribaLIVE @ariba#AribaLIVE @ariba
Business transformation effort
Lean manufacturing
Project One drives supply chain proce...
#AribaLIVE @ariba#AribaLIVE @ariba
E A R L Y N O T I F I C A T I O N
Ariba replaces homegrown
supplier portals
Highly cycl...
#AribaLIVE @ariba#AribaLIVE @ariba
Manitowoc’s Supply Chain Strategy:
Robust Core Processes Build the Base
10
EDI
Email
We...
#AribaLIVE @ariba#AribaLIVE @ariba
How Ariba/SAP Fit in This
Supply Chain Strategy
11
ERP’s are the single source or truth...
#AribaLIVE @ariba#AribaLIVE @ariba
12
• Collaboration is a change
management journey for us
and suppliers
• Visibility & t...
#AribaLIVE @ariba#AribaLIVE @ariba
S P E N D
of
spend
I S
U S I N G
Scope of Our Efforts
13
$1.15B
G l o b a l
d i r e c t...
#AribaLIVE @ariba#AribaLIVE @ariba
Today’s Presenters
• Bruno Durand
 Process Excellence and Data Governance
• Ariba
 Ma...
#AribaLIVE @ariba#AribaLIVE @ariba
Complexity and Lack of Collaboration
Innovation Limit Supply Chain Visibility
Costly an...
#AribaLIVE @ariba#AribaLIVE @ariba
Strengthen Your Supply Chain with
Business Networks: What if You Could…
Network intelli...
#AribaLIVE @ariba#AribaLIVE @ariba
Order*
Discount Proposal
Invoice Status
Remittance Advice
Payment
Spot RFQ
Order Status...
#AribaLIVE @ariba#AribaLIVE @ariba
Ariba Collaborative Supply Chain:
CSC 1.0 Release - August 2014
• Collaboration
 Order...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
© 2015 Ariba – an SAP company. All rights reserved.19
What does the Per...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
© 2015 Ariba – an SAP company. All rights reserved.20
How and why to me...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
© 2015 Ariba – an SAP company. All rights reserved.21
At what point(s) ...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
Orchestrating Perfect Order
measurement across multiple
trading partner...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
© 2015 Ariba – an SAP company. All rights reserved.23
Best practices fo...
#AribaLIVE @ariba#AribaLIVE @ariba
© 2015 Ariba – an SAP company. All rights reserved.24
Lessons learned in buyer-seller
c...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
© 2015 Ariba – an SAP company. All rights reserved.25
How will fundamen...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
© 2015 Ariba – an SAP company. All rights reserved.26
How are these cha...
#AribaLIVE @ariba#AribaLIVE @ariba
K E Y T O P I C
© 2015 Ariba – an SAP company. All rights reserved.27
What role does te...
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Supply Chain Collaboration with Direct Materials Suppliers: Manitowoc Shares Their Vision

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In today’s distributed, global economy, greater reliance on trading partners has made supply chain collaboration a competitive mandate. As supply chains become more complex and dynamic, your ability in direct and indirect materials procurement to achieve the perfect order—receiving the right product, in the right place, at the right time, in the right quantity—depends on having the right tools and partners. You need to be able to collaborate across multiple processes, systems, and geographies in real time; accurately track and assess supplier performance; and quickly identify and respond to unplanned supply chain events. Join a panel of thought leaders and practitioners as they discuss how to attain The Perfect Order by collaborating effectively with trading partners both inside and outside their enterprises.

Published in: Business
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Supply Chain Collaboration with Direct Materials Suppliers: Manitowoc Shares Their Vision

  1. 1. #AribaLIVE @ariba #AribaLIVE @ariba Supply Chain Collaboration with Direct Materials Suppliers: Manitowoc Shares Their Vision Bruno Durand, Process Excellence and Data Governance, Manitowoc Marko Navala, Ariba, an SAP company Leah Knight, Ariba, an SAP company 10 June, 2015 © 2015 Ariba – an SAP company. All rights reserved.
  2. 2. #AribaLIVE @ariba#AribaLIVE @ariba Supply Chain Visibility Is Key to Achieving the Perfect Order 2 of buyers have poor visibility into source of supply of suppliers lack visibility into customer order management drop in stock price due to high cost of supply chain disruptions to the RIGHT PLACE, with the RIGHT PRODUCT, at the RIGHT TIME, in the RIGHT CONDITION, in the RIGHT PACKAGE, in the RIGHT QUANTITY, with the RIGHT DOCUMENTATION, to the RIGHT CUSTOMER, The Perfect Order is defined as the percentage of orders delivered with the CORRECT INVOICE. 65% 70% 9% © 2015 Ariba – an SAP company. All rights reserved.
  3. 3. #AribaLIVE @ariba#AribaLIVE @ariba Few Organizations Use the Full Range of Supply Chain Collaboration Options 3 Source: No Business is an Island, The Economist Intelligence Unit, 2014 © 2015 Ariba – an SAP company. All rights reserved.
  4. 4. #AribaLIVE @ariba#AribaLIVE @ariba Today’s Presenters • Bruno Durand  Process Excellence and Data Governance • Ariba  Marko Navala, Leah Knight 4 © 2015 Ariba – an SAP company. All rights reserved.
  5. 5. #AribaLIVE @ariba#AribaLIVE @ariba Manitowoc’s Transformation Manitowoc is a global industrial manufacturer with two market-leading business platforms 5 © 2015 Ariba – an SAP company. All rights reserved.
  6. 6. #AribaLIVE @ariba#AribaLIVE @ariba Industry-Leading Foodservice Company Broadest Portfolio Offering Market-leading Brands Leading brands across multiple foodservice categories Serving Global Customers Extensive Geographic Footprint  28 locations across 9 countries  24 manufacturing facilities  4 offices and technology center Footprint allows Manitowoc Foodservice to better serve its customers 6 © 2015 Ariba – an SAP company. All rights reserved.
  7. 7. #AribaLIVE @ariba#AribaLIVE @ariba Industry-Leading Crane Company Award-winning Technology #1 in Major Crane Categories Leading positions in each major crane category Extensive Geographic FootprintServing Global Customers  Crawler Cranes  Tower Cranes  37 facilities across 18 countries  13 manufacturing facilities  21 sales/service centers Strong presence in high-growth markets  Mobile Cranes  Boom Trucks 7 © 2015 Ariba – an SAP company. All rights reserved.
  8. 8. #AribaLIVE @ariba#AribaLIVE @ariba Business transformation effort Lean manufacturing Project One drives supply chain process maturity and goals Need for a new collaborative solution Why Supply Chain Collaboration? 8 Ten Years Ago Project One: Global SAP implementation Single-instance ERP with global design A 10-year journey that began in 2007 A single portal for our Collaborative Supply Chain needs Strong Direct Materials functionalities to sustain an accelerated Lean Journey Solutions that can evolve with Manitowoc and our suppliers 2017 © 2015 Ariba – an SAP company. All rights reserved.
  9. 9. #AribaLIVE @ariba#AribaLIVE @ariba E A R L Y N O T I F I C A T I O N Ariba replaces homegrown supplier portals Highly cyclical business drives need for collaboration The Business Case for Ariba Collaborative Supply Chain 9 Visibility and trust are a must to enable short-term planning and agility on our supply chain Eliminates three existing portals, reducing development costs Provides a “single face” of Manitowoc for suppliers Enables management of supplier maturity levels – ranging from very mature to immature of demand from Manitowoc of availability of supply from suppliers © 2015 Ariba – an SAP company. All rights reserved.
  10. 10. #AribaLIVE @ariba#AribaLIVE @ariba Manitowoc’s Supply Chain Strategy: Robust Core Processes Build the Base 10 EDI Email Web UI cXML Paper Smart PDF CSV xCBL SuppliersManitowoc Order Confirmation Shipment Notice Forecast Response Invoice Quality Report Service Entry Response Forecast Change JIT call Kanban Consumption Purchase Order Scheduling Agreements Forecast Invoicing Processed Quality Notifications Goods Receipt Notification Focus Supplier and Manitowoc attention on potential issues: past-due orders, new demand, changes in demand and supply © 2015 Ariba – an SAP company. All rights reserved.
  11. 11. #AribaLIVE @ariba#AribaLIVE @ariba How Ariba/SAP Fit in This Supply Chain Strategy 11 ERP’s are the single source or truth for us; Ariba network is a bridge to supplier partnership • Interaction enhancement between ERPs and the Ariba Network is a must • Ability to trust and monitor Ariba Network activities from the ERP’s side • Suppliers capability to visualize our systems data in full transparency • This enables the partnership to begin Manitowoc is an Ariba design partner • Implementing product’s first release of product in the short term, with the expectation to evolve the functionality together with Ariba in the long term • Ariba and Manitowoc have committed resources to ensure success – including an internal champion to rally the business and IT around common vision © 2015 Ariba – an SAP company. All rights reserved.
  12. 12. #AribaLIVE @ariba#AribaLIVE @ariba 12 • Collaboration is a change management journey for us and suppliers • Visibility & trust are a must • Change is prioritized based on value creation Best Practices and Lessons Learned • Focus on what really matters • Maturity differs per commodity, per type of supply (direct / indirect), per sourcing country • Interaction between ERPs and Ariba Network is a must © 2015 Ariba – an SAP company. All rights reserved.
  13. 13. #AribaLIVE @ariba#AribaLIVE @ariba S P E N D of spend I S U S I N G Scope of Our Efforts 13 $1.15B G l o b a l d i r e c t s p e n d $415M I n d i r e c t $204M France Portugal Italy 40% Purchase orders For pilot targeted countries 20% LPA Scheduling Agreements (target ~80%) of spend I S U S I N G Crane Segment Global Crane Segment Managed in SAP Crane Segment Managed in SAP Crane Segment Managed in SAP Pilot Invoice Pro © 2015 Ariba – an SAP company. All rights reserved.
  14. 14. #AribaLIVE @ariba#AribaLIVE @ariba Today’s Presenters • Bruno Durand  Process Excellence and Data Governance • Ariba  Marko Navala, Leah Knight 14 © 2015 Ariba – an SAP company. All rights reserved.
  15. 15. #AribaLIVE @ariba#AribaLIVE @ariba Complexity and Lack of Collaboration Innovation Limit Supply Chain Visibility Costly and time-consuming supplier onboarding FOR BUYERS High IT costs and risks for onboarding and using multiple point solutions FOR SUPPLIERS Inefficient, manual supply chain collaboration processes Inability to assess supplier performance Risk of excess safety stock or stock-outs Manual collaboration impacts The Perfect Order Complexity assessing performance and service levels Lack of compliance due to multiple collaboration systems 15 © 2015 Ariba – an SAP company. All rights reserved.
  16. 16. #AribaLIVE @ariba#AribaLIVE @ariba Strengthen Your Supply Chain with Business Networks: What if You Could… Network intelligence, data and insights One network to manage collaboration across the world’s largest community of buyers and sellers Comprehensive solution and services for onboarding trading partners Access Actionable Intelligence On-Board Efficiently Collaborate Broadly …and increase visibility in your supply chain Ariba Collaborative Supply Chain focuses on extending innovations and capabilities for trading partners to address their needs in relation to Supply Chain Visibility for Direct Materials, also known as Merchandise in Retail. 16 © 2015 Ariba – an SAP company. All rights reserved.
  17. 17. #AribaLIVE @ariba#AribaLIVE @ariba Order* Discount Proposal Invoice Status Remittance Advice Payment Spot RFQ Order Status Request Service Entry Response Scheduling Agreement Release Forecast Delivery Instruction Inventory Status 17 Collaborations ≤ 2014 Procurement, MRO, Invoicing, Payment, Services, Quotes, Direct Material Support 24 Collaborations – 2015 Supply Chain Processes 30 Collaborations ≥ 2016 Supply Chain, Logistics, Inventory EDI Email Web UI cXML Paper Smart PDF CSV xCBL Your trading partnersYour applications Self- Billing Subcontract PO * Supply Chain/Direct Material Extensions ** Some limitations exist Outbound Delivery Building a Single Business Network Order Confirmation Catalog Shipment Notice* Invoice*/Payment Status Discount Acceptance Spot Quote Order Status Response Service Entry Sheet Supply Chain Invoice Subcon. PO Consumption Proof of Delivery Component Consumption Forecast Response Inventory Status Replenishment Order Intelligent Automated, Real-Time, Big Data-Driven 3 Comprehensive All Suppliers, All Collaborative business processes, All Geographies** 2 Open Any Vendors / Any ERP system /Any Protocol 1 “Other” © 2015 Ariba – an SAP company. All rights reserved.17
  18. 18. #AribaLIVE @ariba#AribaLIVE @ariba Ariba Collaborative Supply Chain: CSC 1.0 Release - August 2014 • Collaboration  Order/ASN/Invoice (Direct Material Extensions, ASN Due List)  Scheduling Agreement Releases • Industry specific extensions for retail and manufacturing • Integration to SAP Supply Network Collaboration (SNC) CSC 2.0 Release – July 2015 • Collaborations  Contract manufacturing scenario – Subcontract PO  Consignment PO support- related Movement visibility • Order confirmation Due List Future Focus • Perfect Order Network Intelligence • Collaborations  Forecast, Inventory, Demand Signals • Multi-tier collaboration scenarios, Mobile, Network Intelligence • Integration to SAP Integrated Business Planning (IBP) Provides Visibility and Efficiency with Direct Materials / Merchandise Spend 18 © 2015 Ariba – an SAP company. All rights reserved.
  19. 19. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C © 2015 Ariba – an SAP company. All rights reserved.19 What does the Perfect Order mean to your organization?
  20. 20. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C © 2015 Ariba – an SAP company. All rights reserved.20 How and why to measure the Perfect Order?
  21. 21. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C © 2015 Ariba – an SAP company. All rights reserved.21 At what point(s) in the process to measure Perfect Order attainment?
  22. 22. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C Orchestrating Perfect Order measurement across multiple trading partners © 2015 Ariba – an SAP company. All rights reserved.22
  23. 23. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C © 2015 Ariba – an SAP company. All rights reserved.23 Best practices for trading partner collaboration in direct and indirect materials
  24. 24. #AribaLIVE @ariba#AribaLIVE @ariba © 2015 Ariba – an SAP company. All rights reserved.24 Lessons learned in buyer-seller collaboration K E Y T O P I C
  25. 25. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C © 2015 Ariba – an SAP company. All rights reserved.25 How will fundamental changes to the future of buying and selling impact the future of collaboration?
  26. 26. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C © 2015 Ariba – an SAP company. All rights reserved.26 How are these changes influencing your organization’s roadmap for collaboration?
  27. 27. #AribaLIVE @ariba#AribaLIVE @ariba K E Y T O P I C © 2015 Ariba – an SAP company. All rights reserved.27 What role does technology play in buyer-seller collaboration for the Perfect Order?

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