This is your opportunity to hear how SAP’s Supplier InfoNet has been integrated with the Ariba Network--aggregating data from online activity with external sources, and delivering actionable intelligence at the point of decisions. Deeper and more complicated value chains decrease visibility and the opportunity to quickly react to challenges and disruption. Supplier InfoNet will exponentially expand the collective intelligence of Ariba Network participants by compiling, analyzing, and interpreting the multi-tiered, inter-enterprise interactions within this global community. Supplier InfoNet is a cutting-edge solution that helps you mitigate supply risk to protect your company’s brand, market share, and shareholder value. It quickly identifies concerns that can cause significant disruption. Don’t miss this session to learn how Supplier InfoNet can benefit your organization.
2. Business disruptions create several pitfalls for executives
They can impact current and potential Market Share
They can have a significant effect on Shareholder Value
They can permanently tarnish your Brand
The Impact of an Increasingly Integrated Global Economy
Fundamental changes to the way firms do business today
3. Complex Value Chains Create New Risks
Dependency on suppliers increases disruption potential
• Companies must understand supply network to mitigate impacts of unexpected operational
events
• New systems needed to reveal relevant events, enabling near real-time responses
Revenue loss – Air India claimed revenue loss of around $1.5 billion due to 787 production delays
Reduced profits – Toyota’s profit crumbled over 75% after part suppliers shut down
Brand damage – Mattel experienced brand damage and costs of $30 million after recall for lead
paint.
• By enabling software with content, companies combine internal knowledge with external
insight – and can act in real time upon unforeseen events
1 Gartner, IDC
4. To address these critical issues, Ariba is offering a cutting edge
solution that can leverage the intelligence resident in the Ariba
Network to provide an early warning system to identify potential
disruption in the value chain
Properly leveraging this solution will provide important benefits,
including:
Establishing more trust with your customers by delivering increased
transparency throughout your entire supply chain
Providing your executive team more peace of mind through early
warnings of potential supply chain disruptions
Demonstrating organizational commitment to your shareholders by
predicting and avoiding the unecessary costs associated with poor
supplier performance
And because this is a cloud-based solution it is straightforward
and cost-effective to deploy
Ariba’s Solution – Supplier InfoNet
5. What is Supplier InfoNet?
And how does it address my supply management needs?
A big data network for supplier intelligence that enables firms to attack potential
disruptions and drive stronger performance across their multi-tiered value chain
Peer into the sub-tier and find the risk
Capture relevant news – as it happens
Compare your partner’s performance to how they
perform for others
Mitigate risk from a variety of perspectives
Collaborate more effectively
Track the overall health of your value chain
6. Supplier InfoNet = Proactive Intelligence
Cloud-based network to minimize supply chain risks
Is there a problem with my supplier’s
suppliers (sub –tier)?
Do they perform well for me? For
others?
Will my suppliers behave the same in
the future?
Gain Instant InsightsProactively Monitor and
Predict Risks
Track and Manage Supplier’s
Performance
HANA based
Content
Factory
Supplier Network
Information
Government / public data, Licensed
3rd party data, Newsfeeds
Your Business
Systems
7. Uniquely Informed Decision Making
Big Data Analytics, Machine Learning Algorithms, NLP
Supplier InfoNet Data Pools
Your Business
Systems
Supplier Network
Information
3rd Party Information
Predict company
performance using
KPIs
Machine learning
algorithms
Extract and classify
news events
Language
processing and
text analysis
Combine structured &
unstructured data
Network
Intelligence
8. Supply Chain Disruption Alerts
Relevant & timely information on issues you care about
• Acquisition
• Bankruptcy
• Business Selling Unit
• Counterfeit Parts
• Corporate Responsibility
• Debarment
• Environmental Issues
• ERP Implementation
• Layoffs
• Leadership Change
*Alerts types are frequently updated based on customer requests
• Litigation
• Site Damage
• Site Disruption
• Site Launch
• Site Technical Problem
• Workload or Production Change
• Supply Problem
• Contract Awarded
• Patent Issued or Upheld
9. Understanding Trading Partners
InfoNet to leverage the power of the Ariba Network
External
Events
Tier 2
Supplier
Tier 1
Supplier
Customer
& Supplier
1 Customer
& Supplier
2
Supplier
3
Customer 1
Supplier
2
Supplier
1
Customers can be
Suppliers, too
Monitor external events
Supplier Risk
Exposure
Collaborate with
suppliers
Drive Tier-1 supplier
performance
Understand and
mitigate business
disruptions.
YOU
Multi-tiered Supplier Risk
Exposure
10. SAP Supplier InfoNet
Multi-tier Business
Network intelligence Cloud-based service
Proactive supplier risk
information
HANA powered comprehensive
database
Demonstration
11. A Big Data Network for Supplier Intelligence
Designed to help our customers stay informed
Supplier InfoNet is
continuously updated
from over 160,000 global
sources
Intelligent algorithms
created to stay on top of
key events
Over 500,000 articles are
processed daily
Alerts are received on
suppliers and sub-tier
suppliers
12. How Customers Use Supplier InfoNet
A system to proactively address unexpected events
• Key insight assisted in supplier negotiations
Situation: July 2013, auto manufacturer renegotiating
with high intensity discharge ballast supplier receives
notification of price-fixing conspiracy..
• Project timeline protected by immediate information
Situation: Electronics firm informed fiber-optic cable
supplier sustained $35 million in flood damage, forced
to close for 30 days
• Firefighting costs reduced due to proactive
notification of site shut down
Situation: March 15, 2012, rotating equipment
manufacturer received alert that primary chemicals
provider shutting down manufacturing site in
Wesseling, Germany in October 2012
13. Simple to Deploy, Cost Effective to Use
Reduce the cost of managing your supply base
Content Factory: Enriches supplier information
Cleansed, harmonized and enriched data
Matched at event, supplier & commodity levels
Enhanced with predictions, insights and signals
Anonymized to ensure data security and privacy
Visualization: Business context decision support
Real-time alerts and risk predictions
Powerful KPI benchmarks
Intuitive views into your sub-tier supply base
Content Capture: Collect all relevant supplier data
Easily onboard suppliers and “suppliers’ suppliers”
Capture unstructured data from 160,000+ sources
Benefit from the “network effect”
Accurate information
Good coverage of “emerging markets”
Manage supplier risk well beyond Tier 1
N-Tier Network
VisibilityAlerts Benchmarks
Content
Factory
Cloud
solutionHANA-
based
Supplier
Network
Information
Government / public
data, Licensed 3rd party
data, Newsfeeds
Your Business
Systems
14. Special Ariba Live! Offer
On Supplier InfoNet contracts signed before June 30, 2014
• Applies to: First 10 Ariba Spend Visibility customers to purchase InfoNet
• Requirements:
1. Execute contract for Supplier InfoNet before June 30, 2014
2. Load all your Spend Visibility suppliers into Supplier InfoNet too
3. Identify 5 of your suppliers whose supply bases you want loaded/to link to
• Offer:
1. Supply bases(1) for 5 identified suppliers loaded at no additional charge
2. One month of web-based implementation & training services provided free
(1) Only the portion of the supply bases electronically matched to the Ariba master reference file (i.e., using
computer algorithms and requiring no manual services) will be loaded into Supplier InfoNet