A key challenge in strategic sourcing transformation is managing high volumes of components and assemblies and their relationships. Learn from two key innovators in high tech and industrial manufacturing how to use SAP Ariba solutions to address this, streamline business processes, and drive change management in direct spend procurement.

1. PUBLIC
March 2018
Yaskawa America and Microsoft
Transforming Direct Spend Sourcing
Processes in Discrete Manufacturing

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Today’s Presenters
SAP Ariba (SAP)
 Leah Knight, Solutions Marketing
Yaskawa America
 Andjelko Komlenac, Director of Strategic Sourcing
Microsoft
 Naveen Rajan, Sr. Software Engineer, Supply Chain Engineering

3. YASKAWA.COM ©2017 YASKAWA America, Inc.
Yaskawa America-
Direct Material Sourcing Using Ariba

4. AGENDA
• Introduction to Yaskawa
• The business problem
• Why SAP Ariba?
• The scope of the solution
• Business case and value
• Success realized so far
• Best practices and lessons learned

6. IN AMERICAS
High quality products,
plus personal attention
Drives & Motion Division
Headquarters: Waukegan, IL
 Founded: 1967
 Sales: $504 Million
 Associates: 987
Manufacturing & Distribution:
Buffalo Grove, IL
 Manufacture: AC Inverters and Servo Motors
 Square Feet: 200,000
Oak Creek, WI
 Manufacture: Configured and Custom Engineered
Drives and Controls
 Square Feet: 140,000
Yaskawa Solectria Solar: Lawrence, MA
 Manufacture: PV Inverters, Combiners
 Square Feet: 120,000
Motoman Robotics Division
Headquarters: Miamisburg, OH
 Founded: 1989
 Sales: $165 Million
 Associates: 500
Lawrence, MA
Santa Clara, CA
Calgary
Engineering & Sales:
Santa Clara, CA
Montreal, QB
Calgary, AB
YASKAWA AMERICA, INC

7. BUSINESS ISSUES
• Organizing Yaskawa for rapid growth
• Existing infrastructure limitations
• Functionality
• Scalability
• Maintenance
• Future development

8. WHY SAP ARIBA
• Connectivity / compatibility with existing SAP installation
• Available solutions & feature set
• Supplier Discovery
• Sourcing & Collaboration
• Contract Management
• Supplier Contact Management
• Ariba product roadmap

9. SOLUTION SCOPE
Sourcing
Professional
Contract Management
Professional
Supplier Information &
Performance Management

10. BUSINESS CASE
Product Margin
• Material Cost Reduction
• Supplier Performance
Operational
Efficiency
• Contract Management
• Standardized Process
New Product
Introduction
• Sourcing
• Timely Product Launches
• Lower activity cost
• Enable better quality outcomes

11. SUCCESS
Standardized
Process
Resource
Allocation
Real-time
Reporting

12. LESSONS LEARNED
• Current state process mapping
• Ariba feature & capability review
• Vs. needs
• Vs. wants
• Vs. must-haves
• Cross-functional alignment
• Supplier outreach and education

13. ENGAGEMENT
andjelko_komlenac@yaskawa.com

15. 191Countries Served
>600+
Number of Suppliers
(includes component suppliers)
~$11BTotal Amount of Annual Spend
30K+
Number of Outlets
(Carriers, Retailers and MS Stores)
13Number of Manufacturing Locations
3M+Est. FY16 Number of Retail and
Commercial Sales orders
52Number of Distribution Centers
>35,000Number of Active SKU’s
3.5M+Est. FY16 Deliveries
>290MUnits Manufactured & Shipped

16. Ariba Supplier Lifecycle
Performance(SLP)
Ariba Direct Material
Sourcing (DMS)
Qualification Workflow
New Supplier
Request
Entry
Approval
Supplier Creation
and Registration
ComplianceContractFinance
BusinessTSMSQM
Component
Engineer
Sourcing
Manager Technology
Total
BOM cost
Make/Buy
Cost Management
SQL
$ $ $
BOM
Cost
Estimate
$
Splits
Price
Contracting
$
Cost Calculator
$
Estimates
Sourcing
Manager
Power BI
Lead time
estimate
Sourcing
Operations

17. Master Data Management
StrategicSourcingfor DirectMaterials
Supply Chain Engineering Sourcing Landscape
ECO Release
from
OnePDM
Qualify SupplierPush to Ariba
MSource
Manage
Splits
Manage
Estimates
Send RFQ
Verify Results
Analyze
Variances
Report COGp Forecast &
Highlight Variances
Run COGp
STRATEGIC
SOURCINGPROCESS
Price Contracting Cost ManagementSupplier Management
SOURCINGAPPS&
SERVICESFORSOURCING
MSource Services Architecture
SCESYSTEMS
Create SAP ID
Onboard
Supplier
Publish
Data
AnalyzeMAX ADL Publish
Data
MSource API Validate & Load
MAX Visualize
Sourcing Event
Manage Part
Assignments
Engineering BOM SAP MDG
Accept
Contract
Price
Update PIR
On board Supplier
SAP MDG
SAP Add-in
Integration Service
OnePDM

18. Early & improved
collaboration between
Sourcing and Dev teams
100% compliant Price
Contracts and Purchase
Orders
Harmonized data creates
one source of truth
Digitization of work
processes reduce manual
effort
Reduces suppliers’ cost of
doing business
Improves visibility to supplier
quality and planning data
Suppliers statuses visible in OnePDM and
engineering CAD systems
Telemetry enables close monitoring of
BOM quality
Part Prices visible in OnePDM and
engineering CAD systems
One Supplier qualification status across
all systems
Synched master data across all systems
like AMS, OnePDM, ERP
One supplier and factory ID across
all systems
Significant reduction in administrative
cost of managing communication and
documentation
Presence on the ARIBA Network
increases supplier reach at no cost
Suppliers have one portal to
manage all Microsoft transactions
Consigned goods purchase orders can
only be created using a system
generated Purchase Info Record (PIR)
Reduces the risk of doing business with
restricted suppliers
Contractual part prices can only be
recorded through a formal RFP
(Request for Price) eventNo more manual price loading in
the ERP for consigned goods
Significantly reduces data
reconciliation effort
No more manual exhibits
Centralize collection of supplier
quality metrics
Enables informed decision making
by providing supplier 360 views
One platform for planning forecasts and
sourcing data
Early & improved
collaboration between
Sourcing and Dev teams
100% compliant Price
Contracts and Purchase
Orders
Harmonized data creates
one source of truth
Digitization of work
processes reduce manual
effort
Reduces suppliers’ cost of
doing business

19. Price Contracting
• Supplier RFQ collaboration, replacing any RFX
exhibits
• Ability to enter price estimates
• Ability to contract prices via formal RFQ
• Ability to view/maintain estimates and
contracted prices separately
• Ability to price out transformation cost
• Contracted prices for consigned parts
automatically sent to SAP
Cost Management
• Full BOM/Part/AML integration from PLM
• AML Split and BOM splits
• BOM Alternates can be entered at Program-CM
combination
• BOM alternates visible in a BOM view
• Ability to see part rollup costs in a BOM view
Supplier Lifecycle Management
• Suppliers created ONLY via request workflow in
ARIBA with statusing
• Workflow collaboration with other Supplier
Qualification participants
• Disjointed Supplier Lists retired - managed in
MSOURCE
• Key Supplier information ie. locations and
contacts managed in MSOURCE
• Supplier Manuals in MSOURCE
• Centralized management of Category
Qualifications and Supplier Statuses
Manage the onboarding, qualification and sourcing
status throughout the lifecycle of a supplier
Entering price estimates, executing online RFQ with
terms and contracting prices over time
Aggregation of contract prices, R&O, estimates and
splits

20. SupplierMgtSourcing
Config +
integration
08/31 SM Ariba Aug code release
UAT
10/17 Go No Go
10/19 Technical Go Live
Warranty Support
09/12 SM Build complete
Build & Unit
Test 08/01 SIT Services Available
SIT #1
8/23 UAT Deployment #1
U
A
T
Build #1 & Unit
Test
SIT #1
Build #2 and
Unit Test
UAT
Config
#1
08/04 Source Ariba Aug code release
SIT #1
09/08 Source Ariba Sep code release
UAT
Conf
ig #2
SIT #3
9/21 UAT Deployment #2
Onboarding UAT
E 1 > T E 2 > T Cutover> T > L
Load
#1
Load
#2
Train Suppliers
Register Suppliers
Training Content
8/15 Initial supplier
communication
Register Suppliers (continued)
9/23 Production cutover #2
Bug fixes
8/26 Production cutover #1
Issue
AtRisk
OnPlan
SIT #2
SIT #3
U
A
T
10/19 UAT Deployment #3
10/21 Production cutover #3
09/02
Pre-Baseline
09/16 Baseline 09/27 Build Complete
10/04 SIT Complete
10/11 UAT Complete
10/12 Go No Go
10/14 Deploy
SIT #3
10/07 Source Ariba Oct code release 11/04 Source Ariba Nov
code release
?? SIT Authentication Available
8/12 Ariba CI codedrop
UAT Support

21. Area Q1FY18 Q2FY18 Q3FY18 Q4FY18 H1FY19
Price Contracting
Cost Management
Supplier
Management
Process & Data
Advanced
Analytics
MSource UI Usability & Bug Fix
Enhance excel RFX
Quote Automation with Integrated PIR for FG
CTF - Advanced Search
Advanced Pricing (TBD)
Dynamic Price Management
(TBD)
CTF - MSource UI Usability & Bug Fix
Factory Level Status
(delay) Clean Sheets Modeling
Cost Reporting and R&O
Tracking BPC Tech Live
Part level R&O tracking
BOM Quality - BOM Accuracy, Governance and Integrations
I1131974 - ntelligent Supplier Allocation – i.e. automatic BOM/AML Splits (TBD)
Splits integration to JDM1
(align to “what-if”) Build Plan/COS Risk Evaluation
CTF - Dash Roll Mgmt
BOM Versioning – Short Term Fix
PI1 PI2 PI3 PI4 PI5 PI6 PI1FY19
Ensure contracted part prices prior to Risk Buy
Guided Buying – Part Selection to design in best cost and
performance
Bulk API for Analytics
CTF - (NEW) New UI Roll-out
(New) Part Type & Category
management
Clean Sheet - Analysis
Supplier Audit and Risk
Management
CTF - Ariba BOM Cost Roll-up
Enable Ariba Supplier Manual
distribution/acknowledgement
CTF - BOM Versioning for COGp Reporting
CM Collaboration for Price, Splits
Factory Level Audits
Microservices/API for Analytics
Perfect Part
Optimal Execution
Supplier Qualification & Compliance
Critical to functionality
Done

22. MigrationUse Case
Change
Management Integration
Incremental
Collaborati
on
Training Adoption

23. 23PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Optimizing inventory with direct spend supplier collaboration-
Ulta Beauty (SID 56695)
OR
Recent innovations in direct sourcing (SID 56812)
Which session to join next? Don’t miss these sessions on direct spend!
11:30am Direct & indirect procurement transformation at BASF
(SID 56554)
OR
Recent innovations in supply chain collaboration (SID 56816)
TIME TUESDAY MARCH 21 WEDNESDAY MARCH 22
12:30
Digitalized supply chain collaboration-GE Power (SID 56547)1:30pm
2:30pm
3:00pm
4:00pm Future of design-to-deliver supply chains-Microsoft (SID 56560)
Manage your supply chain by exception
(SID 56574)
Product
deep-dive
Supply chain
use case
Direct sourcing
use cases
Tuesday Wednesday
Collaborating with direct spend suppliers in the life
sciences industry-with Stryker (SID 56556)
OR
Finding the right supplier performance & lifecycle management
solution (SID 56685)
3:30pm
Quality collaboration innovation demo (SID 59103)
Transforming all spend for greater value-Ford Motor
& Raymond Corp (SID 56697)
OR
Enable end-to-end product specification & direct
sourcing (SID 56564)
Supply chain
use case
Direct
sourcing
use
cases
Supply chain
use case
Product
deep-dive
Transforming direct spend sourcing processes in discrete
manufacturing – Microsoft and Yaskawa Electric (SID 56558)
OR
Improve strategic sourcing & category management with
new article management capabilities (SID 56563)
Product
deep-diveRetail industry sourcing workshop (SID
56796)
OR
Recent innovations in supplier management
(SID 56795)
11:30am
2:30pm
3:00pm
Direct sourcing use cases

24. Thank you.
Contact information:
Leah Knight
Solution Marketing
SAP Ariba Solutions for Direct Spend
leah.knight@sap.com