Developing an Ariba Network Growth/Supplier Enablement Strategy to Achieve Your Business Case | Ariba LIVE Rome
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Without a defined network growth strategy and relevant tracking metrics, your efforts to move off paper and automate the management of orders and processing of invoices will not gain much momentum. In this session, you will hear experts discuss how you can develop and implement a strategy that will effectively engage suppliers for e-commerce over the Ariba Network and ensure broad internal and external support for your e-invoicing or procure-to-pay initiative.
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Developing an Ariba Network Growth/Supplier Enablement Strategy to Achieve Your Business Case | Ariba LIVE Rome
- 1. #AribaLIVE Growing Electronic: Developing an Ariba Network Strategy that Promotes Business Case Achievement Christine O’Shea – Director, Network Enablement EMEA April 10, 2014 © 2014 Ariba – an SAP company. All rights reserved. @ariba
- 2. Why Is Strategy Important? Enables an individual or entity to tell where they are where they are going and the way to get there © 2014 Ariba – an SAP company. All rights reserved.2
- 3. A Defined Network Strategy ensures that we are “rowing in the right direction”
- 4. The Key to Success © 2014 Ariba – an SAP company. All rights reserved.4 Viewing Supplier Enablement as a Function of your business and not as a Project It is a Marathon… not a Sprint
- 5. A Strong Network Strategy Includes: Strong Leadership Commitment Focus on Program Goals / ROI Foundational Pillars Enablement Lead + TeamSupporting Infrastructure Flight Planning Communication Plan Compliance Management Dynamic Elements: Review and Update Regularly
- 6. Strong Leadership Commitment Executive support and oversight Established program charter Regular Steering Committee meetings and quarterly reviews “Make it Important”
- 7. A Strong Network Strategy Includes: Strong Leadership Commitment Focus on Program Goals / ROI Foundational Pillars Enablement Lead + TeamSupporting Infrastructure Flight Planning Communication Plan Compliance Management Dynamic Elements: Review and Update Regularly
- 8. Focus on Program Goals / ROI © 2014 Ariba – an SAP company. All rights reserved.9 Report results Implement incentives Create scorecard Define Baseline Select Metrics Align on Objectives “Remind Everyone Why it Matters”
- 9. Key Metrics – Guidance Along the Way • Supplier Enablement Efficiency • % e-PO/e-Invoices • % Spend Under Compliance • % Discounts Captured • % Touch-less POs/Invoices • # Invoices/FTE • # Days Payables Outstanding Inv / FTE % e-PO SE Yield 10 © 2014 Ariba – an SAP company. All rights reserved.
- 10. A Strong Network Strategy Includes: Strong Leadership Commitment Focus on Program Goals / ROI Foundational Pillars Enablement Lead + TeamSupporting Infrastructure Flight Planning Communication Plan Compliance Management Dynamic Elements: Review and Update Regularly
- 11. Flight Planning Prioritisation and Planning Take Customer Input to refine the Plan Resource constraints, conflicting objectives etc Flight Plan Sign Off Flight Plan finalised and converted into waves of enablement Conduct Detailed Data Analysis First Analysis Vendor Master data that contains the last 12 Months transactional data Remove duplicates in Vendor Master and aggregate transactional data. Identify existing Ariba Network Suppliers Draft Flight Plan Clearly identify what suppliers will be enabled when and how Highlight the benefits achieved tied to the business case Build in a reserve to ensure the targets are met Understand the Customer’s Goals What are they trying to achieve? Reduction in FTEs and/or costs associated with manual processing? Reduction in Errors/Mismatch due to human error? What are their limitations? Resources available to support this project and any deadlines? Existing contracts or systems changes that may affect timescales? “Show them how you’ll get there”
- 12. A Strong Network Strategy Includes: Strong Leadership Commitment Focus on Program Goals / ROI Foundational Pillars Enablement Lead + TeamSupporting Infrastructure Flight Planning Communication Plan Compliance Management Dynamic Elements: Review and Update Regularly
- 14. Communication Plan Communicate to everyone internally and externally Communicate early and often • Why…are you making the change? • What... • …is changing • …is expected of them? • …support is available? • When…will the change be happening? • How…will the change be carried out? © 2014 Ariba – an SAP company. All rights reserved.15 “Market the Change”
- 15. A Strong Network Strategy Includes: Strong Leadership Commitment Focus on Program Goals / ROI Foundational Pillars Enablement Lead + TeamSupporting Infrastructure Flight Planning Communication Plan Compliance Management Dynamic Elements: Review and Update Regularly
- 16. Compliance Policy • The Compliance Policy Is the foundation of all communications both internally and with suppliers Has a direct impact on the effectiveness of supplier enablement efforts All internal stakeholders should be aware of be able to communicate the Compliance Policy “Let Everyone Know Where you Stand”
- 17. Compliance Management 20% 40% 60% 80% Percentage of targeted suppliers transacting on the Ariba Network Weak Policy - No internal communications - Optional participation - No Deadline - No Consequence Best in Class - Internal Buy-in - Expectation embedded - Mandatory with Deadline - NCE Process in place - Incentives - Consequences Moderate Policy - Internal awareness - Expectations set - Deadline - Incentive - No Consequence
- 18. A Strong Network Strategy Includes: Strong Leadership Commitment Focus on Program Goals / ROI Foundational Pillars Enablement Lead + TeamSupporting Infrastructure Flight Planning Communication Plan Compliance Management Dynamic Elements: Review and Update Regularly
- 19. Supplier Enablement Team Find the right dedicated Supplier Enablement Lead… • Ability to influence others • Project Management skills • Extremely organized • Problem solving skills • Facilitation skills • Expert level understanding of business systems specific to internal business processes “Find the right people”
- 20. Supplier Enablement Team 21 Role INVOLVEMENT NEEDED Planning - Deployment Phase Ongoing Supplier Enablement Program Sponsor 0.2 FTE A few hours / week Supplier Enablement Lead (Project Manager) 1 - 1.5 FTE 0.5 - 1 FTE Supplier Enablement Team (approx. 150 suppliers/month) 0.5 - 1 FTE 1 - 2 FTE Finance / Account Payables Clerks (Process Experts) A few hours / week Ad hoc support a few hours month (for escalation process) Procurement Clerks (Process Experts) A few hours / week Ad hoc support a few hours / month (for escalation process) Legal Department Ad hoc support Ad hoc support Catalog Lead (40 Catalogues/Month)*optional 1 FTE Ad hoc support Ariba Network Account Administrator Initial AN account administration and settings a few hours / month Ad hoc AN account administration (as needed) Change Management / Training Lead *Variable *Variable
- 21. A Strong Network Strategy Includes: Strong Leadership Commitment • Executive support and oversight • Established program charter • Regular Steering Committee meetings and quarterly reviews Focus on Program Goals / ROI • Documented goals and success metrics • Program scorecard regularly reviewed through Steering Committee • Ongoing benchmarking and continuous improvement focus Foundational Pillars Enablement Lead + Team • Dedicated team that manages enablement process • Team members understand sellers and internal stakeholders and are change agents within the organization Supporting Infrastructure Flight Planning • Flight Plan for supplier onboarding: Pilot, Waves, and Timing • Comprehensive analysis based on ROI and probability of successfully transacting across the Ariba Network Communication Plan • Internal communication plan educating organization and driving adoption • External communication plan for suppliers focused on compliance (see below) and Ariba Network benefits Compliance Management • Agreed upon approach for making sure sellers participate in initiative • EDICT with: Expectations, Deadlines, Incentives, Consequences, and Togetherness Messages Dynamic Elements: Review and Update Regularly
- 22. #AribaLIVE Supplier Enablement Automation Balachandar Ponnusamy
- 23. Buyer Tech Support Customers Supplier Enablement Automation - Overview Ariba Services Supplier Enablement Service Supplier Help Desk • Configure Enablement Thresholds • Manage Transaction Rules • Initiate Relationship Request • Assign Activities • Send Quick Enablement Transactions • Monitor Enablement • Manage Vendor Data Supplier Supplier Supplier Supplier 24 QE Invite (PO, ICS, CC, PP,CR) Suppliers © 2014 Ariba – an SAP company. All rights reserved.
- 24. 25 Achieve quicker value with your Vendors already on Ariba Network Workflow escalation to only work on exceptions Leverage the connectivity to the extended suite of Ariba Commerce Cloud products Leverage the new SE enhancements & additional „Market Pioneer‟ features Buyer and Supplier Values from Ariba Network Supplier Enablement howAribaSupplierEnablementUnlocksValue SE Automation / SE Service Choice to select combination of Self Enablement/ Ariba SE Service Clear task oriented workflow to seamlessly collaborate with Buyer‟s expectations Assisted Account Creation, Self-Service training materials. Supplier Help-Line Auto-Complete Logic for previously completed tasks for new relationships Buyers Sellers Automatic notifications and reminders for pending tasks Buyer requested relationship allows to use existing account or create new account
- 25. Thank You © 2014 Ariba – an SAP company. All rights reserved.26
Editor's Notes
- Responsible for the coordination of all activities to achieve a shared vision Enables an individual or entity to tell where they are (current state)where they are going (vision) and the way to get there (flight plan)
- Before we start, one thing must be clear…when your company decides to make the change to eCommerce the program that you embark on will be a marathon and not a sprint. It is not a technology project but rather a fundamental shift in the way you will do business. This is why it’s important to view supplier enablement as a function of your business and not as project. Every decision that is made must be about achieving long term success and with the end game in mind.
- NEED TO ADD SOMETHING ABOUT BUSINESS CASE
- “Make it Important”
- Reminding people of why the program matters, what they’re trying to achieve
- Break out detail regarding supplier enablement efficiency, things like transacting yield, etc. PRODUCE MOMENTUM
- A few hints…Make it easy for them to find information and talk to someone about the change