As industrial manufacturers become more reliant on their direct spend suppliers, supply chain processes become more iterative and collaborative. Learn how a major industrial manufacturer is leapfrogging traditional collaboration methods like portals, EDI, or manual efforts and extending collaboration to large and small suppliers alike.

1. PUBLIC
March 2018
Matt Parinella, GE Power
Digitalized Supply Chain Collaboration

2. • Powering more than
30% of the world’s power
• Expansive global reach …
>140 countries
• Equipping 90% of
transmission utilities
worldwide
© 2018 General Electric Company. Proprietary. All Rights Reserved.
AUTOMATION
& CONTROLS
$1
GAS
POWER
SYSTEMS
$10
GRID
SOLUTIONS
$5
GE HITACHI
NUCLEAR
ENERGY
$1
POWER
CONVERSION
$2
POWER
SERVICES
$15
STEAM
POWER
SYSTEMS
$2
INDUSTRIAL
SOLUTIONS
$3
GE Power
2016 revenue, $ in billions*
* Segments do not include eliminations

3. GE Power Business Case
• Largest industrial acquisition in company history
• Massive ERP system implementation underway
• Many sourcing tools
• Global supplier e-collaboration
• Business performance needs
• Inventory management
• Payables optimization
• Sourcing functional cost productivity

4. Why SAP Ariba for GE Power?
• Core business SAP ERP system
• ERP agnostic
• Global e-invoicing
• Strong supplier network
• Strategic sourcing tools
• Cloud subscription model
• Supplier relationship management

5. GE Power - Sourcing ERP tool architecture
PLM
ERP
Ariba Indirect
Ariba
Strategic
Sourcing
Ariba
Supplier
Collaboration
Requisition
Purchase Orders
Invoice
Receipt
Supplier data
RfQ quote/award
Qualification
Contract
Material
Master
Bill of Material
Suppliers
ASN
• Indirect purchasing
• PO/Inv automation
• Request for Quote
• Contract management
• Performance mgmt.
• Product qualification
PO confirmation

6. GE Power Value Story
• Digital buy-to-pay process
• Cash discount income
• AP process cost and quality
• Supplier promise date management
• Supplier base simplification
• Buyer productivity
• Supplier experience
• Simplification

7. GE Power - Success To Date and Current Plans
2018
• 5 ERP go-lives +5
• Direct PO/ Invoice
• Indirect requisitioning and catalogs
• Request for Quote
• Purchase order automation in 20 countries +25
• e-Invoice automation in 3 countries +5
• $1 Billion of purchase orders +$4B
• ~4,000 suppliers +6,000

8. GE Power - Best Practices & Lessons Learned
• Master data cleanliness
• Supplier contact and banking info
• Cultural change to digital process
• Buyer and Supplier
• Standardized business processes
• Integrations add complexity
• Ariba learning curve

9. 9PUBLIC© 2018 SAP SE or an SAP affiliatecompany. 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)
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)
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
Product
deep-dive
Direct sourcing
use cases
Supply chain
use case
Supply chain
use case

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

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