Aribacustomersuccessstorybook

Business is Better in the
Ariba Commerce Cloud:
Stories of Success from the
World’s Leading Companies
©Copyright 2010 Ariba, Inc. All rights reserved.
ARIBA, Inc.
807 11th Avenue
Sunnyvale, CA 94089
www.ariba.com

Buying. Selling. Managing trading partners and cash. On the surface, it seems
pretty simple. But business commerce is anything but. Each year, companies like yours
spend millions streamlining and automating processes within their four walls. But
when it comes to collaborating with other companies, you’re probably still hampered by
inefficient processes. And it’s costing you—and your trading partners—big money.
There is a better way. For more than 15 years, Ariba has helped companies drive more
productive, effective, and collaborative commerce. Whether you’re looking to control
supply chain costs, increase sales, minimize risk, or enhance cash flow and operations,
Ariba delivers the technology, capabilities, and global community of trading partners you
need to do it better than ever before.
More than 300,000 companies, including more than 80 percent of the Fortune 500,
use the Ariba®
Commerce Cloud to manage their commerce activities and optimize
their operations. In the pages that follow, you can read many of their stories and learn
how the Ariba Commerce Cloud can help you transform your results by controlling
and optimizing your business relationships for maximum efficiency and effective
financial performance.

Comprehensive Approach
Yields £80M in Savings
Company
British Airways
Profile
Europe’s largest airline
Ariba Commerce Cloud Features
Ariba sourcing solutions
Ariba contract management solutions
Ariba procurement solutions
Challenges
• 10 percent operating margin goal
• Phased cost reduction of £650M,
then £450M, then £300M
• £4B annual spending (350,000
orders/500,000 invoices)
Results
• Savings of more than £80M
- Average annual savings per
procurement MPE of £380,000
• 80 percent of purchases
processed electronically
- 4X increase in order capacity
- Transaction costs reduced
by 40 percent
- Employee productivity
improved by 48 percent
• Reduction in suppliers from
14,000 to 2,000
• Reduction in inventory by
over £200M
Solutions
• Deployed Ariba sourcing
technology to close the loop
from sourcing to procurement
• Deployed Ariba contract
management technology to
link negotiated agreements
with purchases
• Deployed Ariba procurement
technology to automate
purchasing of £1B indirect spend
“Working with Ariba has been instrumental in helping us realise our cost saving objectives,
and demonstrating the critical role procurement can play when industry revenues are
down. Moving forward, we plan to expand our use of Ariba Spend Management™
to ensure
the whole company benefits from the new procurement process.”
Silla Maizey, Procurement Director, British Airways

Complete Savings Approach
Cuts Sourcing Cycles to
Six Weeks; Automates
Compliance on $100M in
Spending in Four Months
Company
Saks Incorporated
Profile
A leading retailer
Challenges
• $500M in spending on non-
merchandise goods and services
• Reducing costs and increasing
procurement efficiencies
• Manual, paper-based processes
unable to scale
• Wanted uniform and visible
spending processes
Results
• Six-week sourcing cycle times
enable broader commodity coverage
• 10 to 20 percent savings on
private label purchases
• $100M in non-merchandise goods
ordered through Ariba in first
four months
• Managing $6M in employee
expenses
• Achieved five-year payback
projection in just two years
Solutions
technology to streamline
sourcing processes
- Find new suppliers, negotiate
better contracts, lower costs
- Used a total landed cost
model to include shipping
fees, taxes, foreign tariffs
electronically manage agreements
technology to automate purchase
requisition and approval
- Integration with
back-end systems
- Paperless invoice processing
“With Ariba Sourcing™
, we accelerated our negotiating cycle time from an average of four months
to six weeks, and saved millions of dollars during the first six months of use, realizing a
unit saving of 10 to 20 percent off baseline prices. Online sourcing has positively influenced
our private label margins. In addition, our eProcurement solution represents a centralized,
compliance tool to help us realize those negotiated savings—directly affecting our bottom line.”
Management at Saks Incorporated

$166M in Savings Opens
Door to New Marketplace
Leadership
Company
Tata Motors Limited
Profile
The largest manufacturer of
commercial and passenger
vehicles in India
Ariba sourcing services
Challenges
• Profit pressures
- Cyclical and shrinking
consumer demand
- Increased competition as a
result of reduced tariff barriers
• Achieving internal targets for
- Cost reduction
- Quality levels
- Delivery metrics
Results
• $166M in savings
• 3,000 sourcing projects that
address $2B+ of annual spend
- Negotiation transparency
supports the Tata Motors
corporate code of conduct
- Reduced negotiation times and
purchasing staff required
• Lower costs allowed creativity
in pricing strategy for new model
truck introduction, which resulted
in immediate segment leadership
Solutions
technology to execute online
supplier negotiations
- Mandated most categories,
including direct/indirect
materials, be sourced online
• Utilized sourcing technology to
create cost advantages for
planned new vehicle
- 50 to 60 percent of new vehicle
costs negotiated online
• Engaged Ariba services to
understand buying patterns,
constraints, and savings potential
- Focused on direct vehicle costs
(75 percent of total costs)
- Identified project pipeline,
schedule, and execution teams
- Category experts facilitated
market-specific activities

Integrated Solutions and
Standardized Processes
Automate Payment
Approvals and Cycles for
$1.2B in Global Spending
Company
Industrial manufacturing company
Profile
Global specialty gas and
chemical company
Ariba invoicing solutions
Ariba Network for
business collaboration
Ariba working capital
management solutions
Ariba discount management services
Challenges
• Optimization of global
procure-to-pay process
- Paper reduction
- Prompt supplier payment
- Recovering lost discount
opportunities
• Interoperability with global single
instance of SAP
Results
• Global spending under automated
management increased from
$708M to $1.182B
• Reduced internal approval time
for invoice payment from
14 to < four days
• Reduced number of blocked
invoices > seven days from
nine percent to five percent
• Increased payment discounts
from < 50 percent to 79 percent
($300K savings)
• Improved days past terms from
nine days to two days
• Inquiry calls dropped from
700/week to 285/week
Solutions
• Deployed Ariba technology
to automate procurement of
indirect materials
- Integration with SAP
• Implemented paperless invoicing
- Automated exception
handling and approval workflow
• Implemented paperless supplier
interaction through the Ariba
Network with thousands
of suppliers

End-to-end Online
Commerce Process
Reduces Service Calls
by 40 Percent
Company
Staples
Profile
World’s largest office products company
Ariba Network for
Ariba online catalog solutions
Challenges
• Large customer base of 66,000
companies (5M+ users)
• Desire to streamline the online
order-to-cash cycle
- Create a superior
shopping experience
- Increase program
adoption rates
- Reduce manual intervention
throughout the order process
Results
• 40 percent reduction in customer
service calls
• 94 percent electronic and
program compliance
• Online catalogs resulted in
10 percent reduction (200,000
books) in printed catalogs
• Processing costs reduced from
$8 to $2 per purchase
• 99 percent average fill rate
• 98 percent on-time delivery rate
Solutions
• Deployed Ariba technology to
optimize electronic purchasing
in combination with
StaplesLink.com®
- Provided online
catalog integration
- Now able to quickly update
content and increase
product variety
• Standardized customer
integration methods
- New customer
implementation in
30 days or less
• Implemented electronic invoicing
for quick invoice delivery, routing,
and approval “The Ariba Network is a dependable platform that gives Staples flexibility
to meet our customer requirements and allows us to continue to make
the customer experience easy.”
Denis Kudriashov, Senior Manager,
eProcurement, Staples

Global Network Fuels
New Business While
Saving 10 Percent
in Marketing Expenses
Company
Support Services of America (SSA)
Profile
Large facilities
maintenance corporation
Ariba business discovery
Ariba Network for
Challenges
• Generating leads with
Fortune 1000 companies
• Costly and time-consuming
traditional lead generation
methods
- Low response rate using
direct mail, email, and
telemarketing
- Mid-range company with
finite resources
Results
• $50K savings in labor, travel, and
marketing expense (10 percent
of overall budget)
Solutions
• Deployed Ariba technology for
more-effective lead generation
- Set-up time < 10 minutes
- Immediate access to numerous
potential customers
• Quickly identified new
opportunities
- Automatic notification of
relevant high-quality RFPs
- Exposure to previously
un-accessed market niches
• Used “Advantage Profile”
to differentiate against
other suppliers
- Preferential search placement
and expanded profile listing
“As a mid-range company with finite resources, it’s difficult to get our
arms around a national audience and canvas Fortune 1000 companies.
Ariba Discovery maximizes our resources. SSA anticipates that in two
years we could bid on several times the amount of business we do
today utilizing Ariba.”
Greg Bosserman, Vice President,
Business/Program Development, SSA

Visibility Solutions
Consolidate Disparate
Data and Lead to £600,000
in Identified Savings
Company
Rexam
Profile
World’s second-largest consumer
packaging group
Ariba visibility and analysis solutions
Ariba analysis services
Challenges
• Nearly £3 billion in
annual spending
- More than 20 disparate
IT systems world-wide
- Difficulty correlating and
consolidating reporting
and sourcing data
• No standardized data format
• Limited IT resources
Results
• £600,000 in total savings identified:
- £100,000 office supplies
- £100,000 mobile
telecommunications
• £400,000 in savings identified
within six months
• £200,000 in cash savings by
managing payment terms
• Global dashboards
- Eliminated business unit
finger pointing
- Source of trusted data
Solutions
• Deployed Ariba visibility and
analysis technology
• Enriched and classified 96 percent
of spending
• Custom taxonomy created
to classify direct and indirect
categories
- Aluminum, logistics, resin,
capital equipment, utilities,
packaging and freight
• Ariba services used to accelerate
initial opportunity assessment
• SaaS technology deployment
key to accelerating adoption
of new product functionality
- Price indexes
- Embedded market
knowledge to prioritize
sourcing opportunities
“We are now leveraging Ariba Spend Visibility™
to collaborate better and to identify
more opportunities for 2010. We expect to realize even-more savings
going forward. Renegotiating and extending payment terms has
provided significant cash savings as well.”
James Mortimer, Group Supply
Chain Manager, Rexam

Automated Sourcing
and Procurement Drive
Savings throughout Entire
Commerce Cycle
Company
CVS Caremark
Profile
Largest prescription drug provider
in the U.S.
Challenges
• Control spending associated with
building new stores
- Required more-efficient
purchasing processes
- Lengthy seven-day to 10-day
cycle for supplier receipt
• Negotiating agreements for goods
and services
• Creating and managing contracts
Results
• Users receive orders within
four days
• Improvements in billing accuracy
• Reduction in reconciliation cycle
time and processing costs
• Enterprise-wide compliance
ensures negotiated savings
reach the bottom line
Solutions
technology to streamline
procurement
- New store construction
- Non-resale goods and services
• Suppliers receive orders
within hours
- Productivity gains from
using the kitting capability
to bundle multiple catalog
items into one line item
• Paperless invoicing
eliminates re-work
technology to capture
savings opportunities
foster cross-function collaboration
(sales, finance, marketing, real
estate, legal, procurement and IT)
“At CVS Caremark, we continue to look for ways to improve our sourcing and procurement
capabilities and drive savings. Ariba’s on-demand solutions will help us accomplish this by
providing technology, capabilities and best-practice processes that we can use to create
a standard, automated process for sourcing from bid to contract, manage content and
workflow and ensure compliance with our agreements.”
Anna Umberto, Vice President,
Strategic Procurement, CVS Caremark

Automated Payment
Processes Increase
Discount Capture to
> 90 Percent
Company
Sports equipment manufacturer
Profile
One of the world’s largest sports
equipment manufacturers with global
direct and channel retail outlets
Ariba working capital
management solutions
Ariba discount management services
Challenges
• $600 million in spending across
260 suppliers
• Very complex services spending
(marketing, retail stores, etc.)
• Broad inability to take advantage
of early payment discounts
- Few negotiated agreements
- Low capture rate (35 percent)
- No opportunity for discount
after initial discount day (i.e.
day 15 for a 2 percent/
15 net-45 term)
• Unable to capture ad-hoc discounts
Results
• Increased early payment discount
capture to greater than 90 percent
• Increased early payment discount
agreements by 20 percent
• Increased average discount to
1.5 percent (24 percent APR)
• Capturing discounts for
four percent of targeted spend
• Over $1M in annual savings
Solutions
automate manual processes and
capture discount opportunities
• Utilized Ariba services to speed
implementation, optimize
processes, and improve ability
to act on discount capture
• Automated discount-related
supplier interactions
- “Always Accelerate” and
ad-hoc features
- Accelerate terms to
every supplier
- Pro-rated term sliding scale
to maximize capture

Network + Ecosystem
Increase Sales by
20 Percent
Company
MarkMaster, Inc.
Profile
Manufacturer of marking and
identification products for
Fortune 500 companies
Ariba Network for
Challenges
• Manual, paper-based transactions
were inefficient and costly
• Gaining market share with
limited budget
• No IT resources to develop
electronic transaction capabilities
Results
• 20 percent year-over-year
growth without incurring
additional cost of sales or order
management costs
• Gained national sales exposure
although sales organization
regionally focused
• 65 percent new client
growth directly from Ariba
Supplier Programs
• 50 percent increase in product line
expansion with current clients
• 95 percent paperless transactions
Solutions
enable prospects to buy
electronically
- Online catalogs
- Paperless invoicing, status
updates and automated
ship notices
• Obtained Ariba Ready silver-level
certification to validate MarkMaster’s
online commerce capabilities
• Used Ariba Network to solidify
existing relationships and develop
new opportunities
“Being an online commerce expert has solidified our existing customer relationships, enhanced trust,
and opened up many opportunities for new business. As an Ariba Ready Silver member, we have
been able to expand our marketing opportunities to include events and exposure opportunities,
regularly participate in Ariba LIVE, and last year alone picked up three new high-profile
clients that total $1 million in sales over a 12-month period.”
Craig Moore, Customer Relations Manager,
MarkMaster, Inc.

Web-based Supplier
Discovery Service Delivers
22 Percent Savings
Company
Aeon Nexus
Profile
Public sector management
consulting firm
Ariba business discovery
Ariba Network for
Challenges
• Manual and lengthy supplier
identification process
- Reliance on searches using
Hoover’s, Internet, or referrals
- Took two weeks for follow-up
phone calls/emails
• Wanted to shift resources
from identifying suppliers
to qualifying them
- Desire to extend
sourcing globally, including
low-cost countries
- Need support for
multi-language/currency
projects
Results
• Price reductions of 22 percent
to 30 percent
• Reduced time for supplier
identification from two weeks
to one day
• Using Ariba is a required step
in the sourcing process
Solutions
improve sourcing team efficiency
- Quickly identify
global suppliers
- Access to deep information
on capabilities
- Easily obtain bids from
qualified suppliers
• Paperless communication via
the Ariba Network to expedite
supplier interaction and easily
review contract terms
and conditions
• Used for a broad range of goods
and services
- Steel, chemicals, janitorial
supplies, polyresins, IT, and
gas cylinders
- School buses, police cars,
and ambulances
“Ariba Discovery™
is a major time saver, and allows us to focus on delivering maximum
value to our customers by quickly finding the best supplier that meets the requirements of
any sourcing event. It’s transformed our business and I think every company can benefit by
using Ariba Discovery.”
Thomas Pandola, Managing Director,
Aeon Nexus

Receivables Auctioning
Yields 50 Percent Better
Financing Rate; Staves
Off Cash Crisis
Company
Smedberg Machine Corporation
Profile
Supplier of equipment and solutions
to improve metal stamping production
Ariba receivables financing
Challenges
• An unexpected change in
payment date put cash needed
for holiday payroll at risk
• Small company without access
to “large company” financial
resources
Results
• Prevailing rates were less than
half versus alternatives (example:
factoring rates of 36 to 42 percent
APR at the time)
• Payment within a day after
auction closure
• Trustworthy solution with little
risk and increased control
Solutions
• Engaged Ariba Receivables
Financing to auction receivables
for cash
- Fair and diligent
application process
• Self-initiated process when cash
needs arise
- Able to dictate auction
time frames and acceptable
discounts
- Flexibility to manage cash as
payment terms stretch to net
45, 60, or more
- Able to avoid dependency on
bank line of credit
“There are many suppliers who are in the same jam we were in; they’ve had nowhere to
turn and no trusted source to help them with cash flow. And with all the drastic economic
changes going on—which will continue happening in this industry—now there’s a place to
go where you can feel comfortable, especially if you’re familiar with Ariba.”
Ken Smedberg, President,
Smedberg Machine Corporation

Closed-loop System
Shortens Contract
Cycle Times
Company
Medbuy Corporation
Profile
Group Purchasing Organization
(GPO) that negotiates agreements
for healthcare providers
Challenges
• Disparate systems used across
the purchase process for RFIs,
contracts, renewals and reporting
• Lack of resources to maintain
and grow a decade-old
in-house application
• Savings leakage due to difficulty
in tracking supplier rebates
Results
• Achieved targeted results within
one year of implementation
• Contracting cycle times
significantly shortened
Solutions
• Deployed Ariba sourcing, contract
and purchasing technologies as a
single, closed-loop system
• Implemented paperless buyer-
supplier transactions
• Developed customized tracking
for rebate dollars against
anticipated volume
“Having everything reside in one system, when it used to be in several
different systems, makes the process significantly more efficient for us.”
Bill Bouwmeester, Vice President
and Chief Financial Officer, Medbuy Corporation
“The contracting process, which might have taken six months before, has
now been greatly reduced. What used to take two weeks now takes only
20 minutes with the push of a button.”
Cyndy Donnell, Chief Contracting Officer,
Medbuy Corporation

Automation Increases
On-time Payments to
85 Percent
Company
Financial Services Provider
Profile
Global leader in financial protection
products such as life insurance
and pensions
Ariba invoicing solutions
Ariba Network for
Challenges
• Streamlining financial settlement
operations (procurement, invoice
approval, payment)
• Needed improved collaboration
between procurement and
accounts payable
- Eliminate non-preferred
suppliers appearing
without approval
- Problems with supplier
invoice accuracy
- Failure to meet on-time
invoice payment objectives
Results
• Eliminated finger-pointing
between procurement and
accounts payable
• Enabled volume of paperless
invoices to increase from
five percent to 40 percent
• Increased spend under
management from
£1.5M to £180M
• Improved on-time payments
from 50 percent to 85 percent
• Realized lower costs from
improved compliance to contracts
and preferred supplier policies
Solutions
automate payment operations
- Paperless invoice processing
- Standardized payment terms
- Improved efficiency
and controls
- Best practices for supplier
enablement and management
• Integration to the Ariba Network
for paperless supplier transactions
- Mandated usage of new
electronic process
- Ongoing training and
communications for
employees and suppliers
to foster adoption

Advanced Order-to-Cash
Capabilities Reduces
DSO by 27 Days
Company
Fastenal
Profile
North America’s largest
fastener distributor
Ariba Network for
Challenges
• 2,300 stores worldwide (825,000
products each)
• Individual stores responsible for
order accuracy, line item number,
PO entry, and other aspects of
electronic fulfillment
• Lack of integration of broad
commerce practices with
individual store transactions
Results
• Reduced days outstanding to
9.5 days (versus 37 days for
paper invoices)
• Purchase order error rate reduced
by 83 percent
• Real-time purchase order and
acknowledgement delivery
Solutions
enable prospects to buy
electronically
- Online catalogs
- Off-Catalog ordering and
‘Quote to Order’ functionality
- Electronic purchase orders,
change orders, order
cancellations, order
acknowledgment
- Paperless PO-Flip™ and
cXML invoicing
• Obtained Ariba Ready platinum-
level certification, validating
Fastenal’s best-in-class
supplier capabilities
- New customer
implementation in minutes
• Automated order-to-cash processes
to reduce invoice “days out” and
maximize discounts
“Ariba has received Fastenal’s highest ranking in terms of functionality, adaptation, and
supplier on-boarding—a true benchmarked win-win for the customer and the electronically
enabled supplier base.”
Keith Klos, E-Business Sales
Manager, Fastenal

Online Procurement
Reduces “Maverick”
Purchasing from
80 Percent to 20 Percent
Company
Avaya, Inc.
Profile
Communications equipment and
software provider for voice and data
service integration
Ariba procurement services
Ariba commodity services
Challenges
• Maximizing savings on
indirect purchases
• Paper-based purchasing processes
• High amount (80 percent) of
purchases considered “maverick”
(off-contract or non-compliant)
Results
• Maverick purchases reduced from
80 percent to 20 percent
• Company-wide adoption of
paperless purchasing
Solutions
• Deployed Ariba technology
to 17,000 employees for use
in purchasing most commodities,
primarily telecom, software
and hardware
• Developed change management
approaches to guide
implementation and
train employees
• Worked with Ariba to develop
best practices for ensuring
compliance and adoption
• Utilized Ariba Services to
understand market trends for
key commodities
“Ariba has always been ahead of Avaya in terms of what solutions or
programs we need. What we do in our team is to try to keep pace with the
changes Ariba makes to take advantage of their knowledge and experience.”
Joe Siciliano, Senior Manager
of Procurement, Avaya, Inc.

Global Source-to-Settle
Approach Yields Sourcing
Savings of 15 Percent
Company
Air Products and Chemicals, Inc.
Profile
Worldwide supplier of industrial
gases, chemicals, and environmental
systems
Challenges
• Operations in more than
30 countries
• Sourcing tools lacked state-of-the-
art capabilities
• Remote employees can’t easily
buy what they need at the
best prices
• Compliance with centralized
contracts challenged by
local relationships
Results
• Sourcing savings of
15 to 40 percent
• Decreased sourcing cycle times
• Compliance with national and `
global contracts
Solutions
technology to manage supplier
negotiations globally
enable employees to purchase
using online catalogs
- One-click access to catalogs
from the corporate website
- 40 unique catalogs covering
business cards to cranes
- Catalogs based on centrally
negotiated contracts
“With Ariba Sourcing, we have achieved savings from 15 to 40 percent. But one of the things
that is most important to us is how the tool allows us to do business on a global scale for global
projects, executed with global offices with global suppliers. With the advantages of speed,
visibility and collaboration, what used to take four weeks now only takes two.”
Jeff Hoover, Strategic Sourcing Manager,
Air Products and Chemicals, Inc.

Ariba, Inc. is the leading provider of collaborative business
commerce solutions. Ariba combines industry-leading software
as a service (SaaS) technology to optimize the complete commerce
lifecycle with the world’s largest web-based community to discover,
connect and collaborate with a global network of trading partners and
expert capabilities to augment internal resources and skills, delivering
everything needed to control costs, minimize risk, improve profits and
enhance cash flow and operations—all in a cloud-based environment.
Whether you’re buying, selling or managing cash, you can do it
more efficiently and effectively in the Ariba®
Commerce Cloud.
More than 300,000 companies, including more than 80 percent
of the Fortune 500, use Ariba’s solutions to drive more efficient
inter-enterprise commerce. Why not join them? For more
information on Ariba commerce solutions and the results they
deliver, visit www.ariba.com.

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