Catalog and Content Management in Ariba Procure-to-Pay

Catalog and Content Management in
Ariba Procure-to-Pay
Gary Borgardt, Director, Global Procurement – Indirect, Bemis Company Inc. / March 16, 2016
Public

Gary Borgardt, Director, Global Procurement – Indirect, Bemis Company Inc.
Catalog and Content Management in
Ariba Procure-to-Pay

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
Abstract
Catalog management is one of the strengths of the SAP Ariba solution portfolio.
Learn from our customer, the Bemis Company Inc, that has successfully deployed
SAP Ariba for:
supplier enablement,
catalog management,
standardized processes,
improved procurement cycle-time,
compliance,
resource allocation, and
lower transactional costs.

Bemis Company
NYSE: BMS
Based in Neenah, WI
2015 net sales $4.1 billion
60 locations – 11 countries
17,000 employees worldwide
We supply packaging for food, consumer, medical and pharmaceutical companies worldwide.

BEMIS: A BETTER WAY
Our customers, our mission
13
Passionate commitment
to the growth and success
of our customers
will make Bemis the clear choice
for inspired packaging solutions
©BEMIS COMPANY, INC.

Bemis: where we do business
6%
4%
20%
70%
Using SAP Ariba

The procure-to-pay automation project initiated with a request from
finance to procurement:
“How can you help us?
We have all this paper!”
We are processing:
450,000 paper invoices per year
Plus, purchase orders and goods receipts
> 700,000 MANUAL DOCUMENTS!

Where is the greatest opportunity?
The indirect space in
the middle: many,
many transactions
$$s
Suppliers
Direct materials.
Few transactions,
big $s: MRP
The Tail:
P-Cards

Project charter
Automate the indirect procure-to-pay process
with best-in-class technology that is a scalable solution,
providing information for advanced sourcing,
transactional process efficiency,
with contract pricing visibility for low-cost item requisitioning
and ease of use

Transformation to a standard process
The New landscape
SAP SRM
 The foundational system for POs, contracts,
and financial documents of record
SAP Ariba
 Ariba Sourcing Pro
 Ariba Network – PO / Invoice Automation
 Procurement Content (Catalog)
The Old Landscape
• Multiple ERPs
• Multiple purchase order methods
and processes
• No integration
• Lack of visibility to data
• Manual 3-way match
• No automation

Project leadership
Steering committee
CIO
VP Procurement
VP Operations
VP Finance
Business sponsors
Director of Procurement
Director of Financial Services

Project team
Bemis Core team
Business sponsors
Project manager / IT lead
SMEs: Procurement, Finance, Maintenance
Support: Internal Audit, Master Data, Training

Project team
SAP Ariba configuration team
Project Management and
Supplier Enablement
Bemis Deployment team
Core team
Local site champion
Local cross-functional team
Pay-it-forward resources

Pay-it-forward Resources
The key strategy for acceleration and adoption
Key users from previously implemented sites support the training and go-live
of subsequent sites.

Implementation timelineTotalSitesLive
2012
INITIATE
2013
PILOT
2014
STABILIZE & EXPAND
2015: Q1 – Q2
ACCELERATE
Site-centric
deployment
** 31 Sites **

A repeatable 8-week deployment process
Kick-off meeting
Data prep and load
Process gap assessment
Security and system configuration
Key user training (centralized)
End user training (local)
Command center for multi-site go-lives (core team)
On-site support (pay it forward)

Supplier enablement strategy
Selection criteria: Transactions
Quantity by supplier and by plant
Minimum threshold: 30 POs per year
Selection criteria: Category
In-scope: Goods and Services
Out-of-scope:
 Milestone payments (such as Cap Ex)
 Logistics, Corporate Services, Energy
 Raw Materials

Supplier enablement strategy
Communication with Suppliers
Kick-off communication with clear deadlines
60-days notice
Benefits of participation
Set the new standard with which we will conduct business
Firm tone with risk of losing business by not participating (not mandated)
Leveraged SAP Ariba’s resources
Penny PO test to build confidence

Enablement results
ACTIVE SUPPLIERS: 210
TRANSACTED DOCs: 140,000 / YEAR
LINE ITEM AUTOMATION
Ariba Network: 55%
 Non-SAP Ariba: 40%
 P-CARD: 5%
NETWORK LINE ITEMS: 256,000 / YEAR
FOR IN-SCOPE TRANSACTIONS

Catalog content strategy
Criteria
Goods (not services)
Stable pricing
Repetitive purchases
Collaborate with operations on priority
Site-specific catalogs and views for local and regional suppliers
Company-wide catalogs are typical for major distributors
UNSPSC taxonomy

Catalog content strategy
CIF Catalog: (Preferred)
Hosted by Bemis
Full search and compare capability
Supplier uploads then Bemis approves
LEVEL 1 & 2 Punch-Out:
Level 1: Supplier hosted. Accessed via web
Level 2: Bemis hosted CIF, but punch-out step to supplier to access price (-)
Unique user experience for each catalog (-)
Difficult to perform comparisons (-)
Typical format for large distributors
Great for VMI programs (+)

Catalog results
Empowered Requestors
Procurement Resources Allocated to More Strategic Activities
Compliance to Contract Pricing
Total Catalogs: 153
Catalog Purchases: 45%
Automated Purchases (Catalog, SAP Contract, SAP PIR): 56%
Overall Average Procurement Cycle Time for Both Catalog and
Non-Catalog Purchases at 0.6 Days

Cash flows and net project value
2012 2013 2014 2015 Proj 2016 Proj
NetProjectValue
Expenses&Savings
Savings Expenses Net Value

Lessons learned
1. Assure top-down alignment
2. Close the gap between current and to be workflows
3. Maximize catalog content
4. Maximize supplier enablement
5. Closed-loop (penny po) testing
6. Drive a focused deployment process
7. Comprehensive training and support
8. Pay-it-forward resources
9. Local teams owning the deployment
10. Stabilize then accelerate

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