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Best Practices in Trading Partner Collaboration
The document discusses improving collaboration between trading partners through better business processes. It outlines that 80% of transactions are currently completed manually, costing $650 billion annually. The document proposes using collaborative business commerce solutions to address these challenges by automating processes across the entire value chain from marketing to payment. Implementing such solutions could provide benefits like faster payment, reduced order processing costs, increased revenues, and compliance. It introduces representatives from Merck Millipore and Computacenter to discuss their experiences with eProcurement.
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Best Practices in Trading Partner Collaboration
- 1. CC Five Steps to Better Trading Partner Collaboration A panel of thought leaders: • Petra Burssens, Head of Global eProcurement, Merck Millipore • Sam Purches, Principal e-Business Development Consultant, Computacenter © 2012 Ariba, Inc. All rights reserved.
- 2. Inefficiencies Between Companies Hinder Results Sellers “The White Space” Buyers Finding Qualifying leads customers Sales / Responding to Sourcing Marketing RFI’s Negotiating Getting orders Publishing Operations / catalogs Procurement Fulfillment Acknowledging orders Getting order cancellations Submitting Managing invoices Accounts Accounts Receivable / errors Getting Payable / Treasury Finance Getting paid payment status 80% of transactions completed manually – costing $650 Billion Source: Celent Communications, Basex Research- “Information Overload” 2 © 2012 Ariba, Inc. All rights reserved.
- 3. Collaborative Business Commerce Addresses These Challenges SELLER: MARKET-TO-CASH Market Bid Sell Contract Fulfill Invoice Collect E-Marketing Online Business Better Automated Greater Early payment and exposure negotiating opportunities compliance collaboration visibility opportunities Identify Source Select Contract Procure Receipts Pay BUYER: DISCOVER-TO-PAY 3 © 2012 Ariba, Inc. All rights reserved.
- 4. Collaborative Business Commerce Provides Value to Sellers and Buyers Seller Value Buyer Value Faster AR Processing Sales Total Increased Sourcing Req Invoice Compliance WCM & Total Payment Process Orders & Savings Revenues to Process Discount Savings Mktg PO 15-20% 60-75% 5-32% 3-9% $3-20 1-8% Improvement Process Revenue Process Savings/ Spend Savings Increase Savings Document Savings Increased visibility across the entire value chain 4 © 2012 Ariba, Inc. All rights reserved.
- 5. Ariba Can HelpYour Collaborative Business Commerce Evolution Innovating Collaboration as a strategic Collaborative Commerce Extending mandate Business Value Establishing repeatable Growing processes while expanding the footprint across Expanding into geographies, Exploring additional processes, process and/or business units, Just getting segments of trading partners started trading partners Enablement Transformation 5 © 2012 Ariba, Inc. All rights reserved. Phases of Buyer and/or Seller Evolution
- 6. Introductions • Petra Burssens Head of Global eProcurement • Sam Purches Principal e-Business Development Consultant 6 © 2012 Ariba, Inc. All rights reserved.
- 7. About Merck Millipore As a division of Merck KGaA of Germany, Merck Millipore offers a broad spectrum of proven tools and technologies, together with performance solutions innovations, dedicated to helping our customers succeed in the research, development and production of biotechnology and pharmaceutical drug therapies. 7 © 2012 Ariba, Inc. All rights reserved.
- 8. About Merck Millipore Industry Sector Life Science Tools Merck Millipore Credentials North Number of America ~ 10,000 Employees Employees 27% Europe Revenues 38% 2.393 million € 2011 Number of > 40,000 products Products Latin America Number of 8% > 1 million Customers Asia, Afric a, Australi Number of a 67 Countries 27% Countries 8 © 2012 Ariba, Inc. All rights reserved.
- 9. eProcurement Components Catalogue ePO eInvoice • Direct • Direct (cXML) • Static/hosted • Via Third Party • Via Third Party • Punch-out 9 © 2012 Ariba, Inc. All rights reserved.
- 10. A Dedicated Approach Customer Relationship Support Team Team eProcurement qualify/drive/complete is build/maintain/troubleshoot distributed over all geographies GLOBAL • Business Development Manager • Management of hosted catalogues Market analysis per geography Prospecting Relationship Mmgt. • PunchOut setup/testing – Customer visits – Sales trainings • eConnection setup/testing • Project Manager KEY CONTACT • IT-Support Driving projects to completion Relationship Mmgt. • development work – Platform provider • Process Optimization and requires 100% DEDICATION 10 © 2012 Ariba, Inc. All rights reserved.
- 11. Results* (5-year period) • 32 active customers on Ariba today Up from 24 in 2007 • 73% overall growth • 9 accounts > 100% in transaction value • 84% of cXML/punch-out adaption rate • 213% growth in invoice volume representing a 183% increase in invoice value *Merck Millipore only 11 © 2012 Ariba, Inc. All rights reserved.
- 12. Desired Solutions “One-platform Approach“ • PunchOut •real-time pricing/availability •No product comparison between •full breath of technical information diff. suppliers •personalization •diff. user experience • Static/Hosted •easy solution for small+static portfolios •maintenance intensive •adding of internal information •risk to be outdated soon 12 © 2012 Ariba, Inc. All rights reserved.
- 13. Our Business CommerceManagement Evolution and Roadmap – NEED TO FILL IN DETAILS for Millipore Innovative • Strategic approach to new Collaborative Commerce Proactive opportunities • P2P Council Business Value • Internal evaluating new This slide will be update prior to AribaLive Barcelona transformation opportunities reflecting globally (e.g., Responsive lessons learned dynamic • Move to majority • Internal buyer discounting, of electronic training and invoice receipt orders knowledge date) Reactive • Develop suite of transfer • Invoices and options (paper, orders (many P-Card, EDI, manual) Ariba) • A few EDI suppliers • Move to Ariba Enablement Transformation 13 © 2012 Ariba, Inc. All rights reserved. Phases of Merck Millipore Evolution
- 14. Best Practice -Lessons Learned • eProcurement needs DEDICATION+ OWNERSHIP! 100% FTE in Sales and Support • Project Managers are KEY! One single point of contact • eProcurement is TEAMWORK! Alignment of Customer and Supplier side • Every customer is UNIQUE! Listen to determine best solution for both parties • NO bits and pieces! Structured Approach starting with the Catalog component 14 © 2012 Ariba, Inc. All rights reserved.
- 15. What´s NEXT? • Combined eProcurement offering: Expand current MP components to Merck/EMD customers Enlarge ePro customer base (ASPAC, etc.) • eInvoicing-Focus 2012: Process Excellence project to optimize current process 15 © 2012 Ariba, Inc. All rights reserved.
- 16. Introductions • Petra Burssens Head of Global eProcurement • Sam Purches Principal e-Business Development Consultant 16 © 2012 Ariba, Inc. All rights reserved.
- 17. Overview of Computacenter • Technology Solutions & Systems integration What we do • Multi-year outsourcing service arrangements • Supply of hardware and software technologies Market • Medium - large private sector companies segments • Public sector Financials £2.85bn Revenue 2011 £74.3m Profit before tax UK Partners Germany Benelux France Spain South Africa Global coverage Malaysia
- 18. eCommerce at Computacenter • 65% orders through eCommerce routes • Standalone Webshop, Punchout, eOrdering, eInvoicing and Request Management capabilities • Working with Ariba since 2001 • $160M yearly transactions through Ariba 18 © 2012 Ariba, Inc. All rights reserved.
- 19. Our Business CommerceManagement Evolution and Roadmap Innovative • Focus on consultancy to add value to Collaborative Commerce Proactive customer journey Business Value • Group Platform • Implementation (DE/GB/FR) by business in • Multilingual & Sales cycle Multicurrency Responsive • Non cXML • Fully automated • cXML Punchout solutions internal process offered developed can be controlled • cXML/EDI • OCI Punchout per customer Reactive offered by ordering on • Marketplace • eOrders still repeatable business collaboration manually platform • Invoicing via checked • Still require IS for cXML made • Each solution implementation repeatable bespoke • OB10 Invoicing • Move to Ariba Enablement Transformation 19 © 2012 Ariba, Inc. All rights reserved. Phases of Computacenter’s Evolution
- 20. Industrialise.... to Customise Cost Continuous Risk Reduction Improvement / Avoidance Innovation 20 © 2012 Ariba, Inc. All rights reserved.
- 21. eCommerce in theShared Service Factory at Computacenter • Punchout (cXML and OCI) • Pre Sales consultancy and demonstrations • Electronic Ordering • eCommerce Workshops BTO Integration • Electronic Invoicing • Standard Connect • Complex Connect • Service Improvement Webshop • Connectplus Consultancy 21 © 2012 Ariba, Inc. All rights reserved. 21
- 22. 5 Key Pointsto Help Industrialise • Give integration to the business • Make integration a repeatable solution • Use industry standards wherever possible • Get a BTO take on document in place • Make sure internal benefits are clear 22 © 2012 Ariba, Inc. All rights reserved.
- 23. Customising! Removing timeand complication in setup allows more time to innovate and add value 23 © 2012 Ariba, Inc. All rights reserved.
- 24. 5 Key Pointsto Help Customise • Consumerise customer journey • Understand your users’ product knowledge • Collect customer satisfaction data • Design dynamic custom content to reduce maintenance • Get talking! Build a relationship with your customer to help innovate 24 © 2012 Ariba, Inc. All rights reserved.
- 25. How This HelpsCustomer Agenda More time for strategic procurement Cost Reduction Improving customer satisfaction Continuous Improvement / Innovation Risk Avoidance Correct items procured 25 © 2012 Ariba, Inc. All rights reserved.
- 26. Thank you! 26 © 2012 Ariba, Inc. All rights reserved.
- 27. Share This Session…NOW…from your mobile! • All presentations are posted: Guidebook mobile app – Search Apple or Android app store for Guidebook – Enter code “collabor8” Or at Slideshare.net/Ariba • Share via email or social media **Come back soon – we are syncing #AribaLIVE audio and video interviews to the presentations** 27 © 2012 Ariba, Inc. All rights reserved.
Editor's Notes
- #2 Title: Best Practices in Trading Partner CollaborationTrack: Commerce CollaborationPresenters: Merck Millipore (confirmed); Computacenter (UK) Ltd(confirmed); Staples (not-Confirmed)Abstract: Working more collaboratively with your trading partners is sometimes easier said than done, isn’t it? Buyers and sellers may establish a solid program to automate inter-enterprise collaboration, yet old ways of doing business sometimes die hard. Attend this session of leading buyers and sellers on the Ariba Network and learn how to escape the 80/20 rule. Panelists will discuss best practices in trading partner onboarding, managing catalog content, approaches to different product/service categories, optimal enablement team structures, and addressing change management internally and externally.
- #3 Suppliers want things to change. They want to connect to their customers electronically. And why do suppliers want change – well first, consider what motivates suppliers. Suppliers have many goals – depending on whether you are talking with someone in sales and marketing, or in operations who fulfills customer purchase orders, or if you are talking with someone in accounts receivable and treasury who wants to manage cash more effectively. They are working with various stakeholders on the buy side across sourcing, procurement and invoicing process, and they struggle with a white space between enterprises – it’s a space where documents get lost – important documents like contracts and invoices. Or where it is challenging to get leads or just to get noticed by prospective customers. Suppliers are looking for a more effective way to work with their customers.
- #7 Petra Burssens,Head of Global eProcurement - Merck MilliporePetra Burssens is heading Merck Millipore’s global eProcurement organization, driving implementations of eCatalogues and eConnections in collaboration with the customers organizations. Prior to leading the organization she has worked as a Business Development Manager Europe for eProcurement. She has an extensive background in sales, understanding customers needs, as she spent almost 10 years in direct sales and management of distributor networks in the German speaking area.
- #17 Sam Purches,Principal e-Business Development Consultant – ComputacenterA self motivated and confident e-Business Professional with extensive eCommerce experience gained from working for an Industry leader. Sam has 10 Years IT Service industry experience including working across the whole P2P cycle. Over the last 5 years Sam has focused on eCommerce working with Global Financial Services customers and Retail Banks.