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PUBLIC
Olaf Schrader, SAP; Peter Jonas, Dell; Håkan Hultén, AB SKF Group
June 13, 2017
How to Get Mass Supplier Enablement:
Transform Your Supplier Enablement
Program Globally
2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Introductions
Supplier Enablement Overview
Dell Program
SKF Group Program
Panel Questions
Agenda
3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
What’s happening in the world today
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 That’s why we introduced the light enablement
methodology in March 2016 (revolution).
 Light account is an evolution of light enablement
addressing limitations we had when using the
current one-time password (OTP) approach.
 Now our vision can be accomplished.
 AND we still have a two-sided business model.
 AND fully managed supplier enablement is still
required and key for the ROI of our customers.
 Segment suppliers into three groups (A, B, C):
A: Suppliers need full enablement out of the gate
B and C: Suppliers can and should be enabled on the
fly using light enablement  95%
Our vision for supplier onboarding
Our goal is to digitize transactions between all trading partners and remove
barriers to conduct commerce
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
TRR invite
Light enablement versus full enablement  supplier segmentation
Help desk and support
M2M integration
Mobile portal
Full CSC transaction set
Innovations such as
AribaPay ACH
…
SLP, SAP Ariba
Sourcing, SAP Ariba
Discovery
Interactive e-mail
Light account
Free, simple
Upgrade by choice
NEW! LIGHT ENABLEMENT
$
A B C
500
suppliers
1,500
suppliers 5,000…suppliers
No compulsion
Buyer
Eliminate
friction
Inbox/outbox
Catalogs
Reports
Interactive e-mail
All basic fulfillment
transactions +
€$ ¥
Crucial for
business case
NEW! LIGHT ENABLEMENT
Full Ariba Network functionality
Full enablement out of the gate for vendors
with legacy EDI integration or catalogs 
strategic suppliers
But only ~2% to 5% of the active vendors
6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Light enablement is the methodology
All suppliers perceive and pay for value in line with their usage
 Exchange of all basic transactions, free for the supplier, with no change management supporting instant
sign-up
 Light-enabled suppliers can choose to pay for value-added services
Incentivize buyers to enable all suppliers
 Ability to turn off parallel processes, reduce supplier inquiries, get more accurate invoices
 Majority of suppliers can be enabled ad hoc  start transacting faster and gain digital efficiency sooner
Supplier enablement is efficient
 Free and e-mail based: minimal change impact
 Only actively enable suppliers that need full-use account like catalogs and integration. All others come on
through light enablement  less effort and expense needed
Light enablement (LE) methodology
7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Supplier onboarding process
Key high-value
categories and spend
Everyone following
processes/categories
across geographies
All trading partners
regardless of size
and sophistication
Category optimization
and replacement
suppliers across areas
Easy setup | Frictionless onboarding | Rapid expansion
Enablement
planning
Primary supplier
rollout
Secondary supplier
enablement
Process/category/
geography
expansion
Optimized
enterprise
8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Supplier enablement project phases
Strategy Continuous onboardingPilot onboardingDesign and build
 Continue supplier onboarding by
steady state team
 Adopt Ariba Network internally and
externally
 Enable new vendors through an
automated approach
 Roll out new geographical regions
 Onboard pilot suppliers
 Train suppliers
 Adjust communication approach or
configuration, if needed
 Report on progress and follow up
with noncompliant suppliers
 Conduct ordering and invoicing
requirements gathering
 Build communication and escalation
strategy
 Create supplier education material
 Configure Ariba Network
 Execute internal change
management
 Conduct user acceptance testing
and end-to-end testing
 Set project goals
 Assign resources
 Analyze vendor master data
 Identify suppliers and develop
flight plan
 Define compliance message
 Define pilot suppliers
Project deployment phase Ongoing supplier enablement
Ongoing change management
Ongoing performance monitoring
Supplier Enablement Program: Dell
Dell Technologies is a unique family of businesses
that provides the essential infrastructure for organizations
to build their digital future, transform IT and protect their
most important asset, information.
Dell Technologies consists of 7 brands:
The world’s largest
privately controlled
technology company
in numbers:
$72B revenue1
Serving 98% Fortune 500
~145,000 team members
30,000 full time customer services
and support team members
180 countries
© Copyright 2017 Dell Inc.11
1 Pro Forma revenue for the fiscal year ended January 29, 2016 as filed in the Form 8-k on Sept. 9, 2016
Summary
• We are in the midst of integrating Dell Technologies
• To ensure success, we recognized the need for cross-
functional collaboration
• Tracking improvement across 4 KPIs
• On a journey to enable frictionless commerce for our
suppliers and business partners
Integrating Dell Technologies
• SAP Ariba solutions customer for 10+ years
• Legacy Dell is an on-premise customer with P2O and all upstream modules enabled
• Moving to SAP Ariba cloud solution with legacy Dell and legacy EMC
• Global footprint:
 8,000 users
 53 countries
 ~$5B in spend through Ariba Network
 e-Commerce enabled in 29 countries
Dell Technologies
Cross-functional collaboration to ensure success
Objectives Actions taken
 Secured co-sponsorship with
Global Financial Services and
Indirect Procurement
 Developed cross-functional
project governance structure
 Selected and managed 9 work-
streams
Deliver new capability to procurement and
business partners
• Reduce noncompliant spend
• Automate governance of non-PO spend
• Increase transactional automation %
o e-PO was 53% globally
o e-Invoicing (29 countries) was 67% globally
o Reduce invoice discrepancies
Tracking improvement across 4 KPIs
0%
2%
4%
6%
8%
10%
12%
14%
16%
FY15 FY16 FY17
Invoice discrepancy %
57%
60%
63%
52%
54%
56%
58%
60%
62%
64%
FY15 FY16 FY17
Electronic POs %
11%
40%
67%
79% 81%
60%
65%
70%
75%
80%
85%
FY15 FY16 FY17
Electronic Invoices %
26%
30%
31%
23%
24%
25%
26%
27%
28%
29%
30%
31%
32%
FY15 FY16 FY17
Auto Received POs %
19%
20%
Drivers
• Policy changes
• Ariba Network
mandatory
• Three enablement
programs
• Vendor Master DB
management
• Accounts Payable
oversight
Enabling frictionless commerce for our suppliers and business partners
Complete deployment of SAP Ariba cloud solutions across legacy Dell and legacy EMC
Areas of focus Desired future state
Supplier enablement
• Ariba Network
• Supplier light enablement
Moving from P2O to P2P within
SAP Ariba solutions
• Move invoice reconciliation and matching from
ERPs to P2P
• Enabling non-PO Invoicing via Ariba Network
• Drive the same automation across legacy EMC
• Approvals via smartphones and tablet devices
• Improved user experience
• User adoption
Automation and mobility
Usability
Supplier Enablement Program:
AB SKF Group
SKF Introduction
© SKF Group 17-06-19
SKF vision and mission
A world of reliable rotation
The undisputed leader
in the bearing business
Slide 19
© SKF Group Slide 20
SKF – a truly global company
• Established 1907
• Sales 2015 SEK 75,997 million (~USD 7,600 million)
• Employees 46,635
• Production sites ~115 in 29 countries
• SKF presence >130 countries
• Distributors/dealers 17,000 locations
• Global certificates ISO 14001
OHSAS 18001 certification
ISO 50001
• # Suppliers ~40,000
eProcurement - background
© SKF Group
Why SAP Ariba Procurement – How buying matters!
• Transparency – Enable analysis of needs and buying patterns
• Cost – Spend consolidation and leverage SKF buying power
• Compliance – Compliance to policy and process
• Significant global spend on IDMS
• Limited possibilities to in-depth analysis
• Limited leverage of SKF consolidated volumes
From To
Total savings vs. baseline
1.5 BSEK
One Purchasing in SKF
Harmonized purchasing, tools and processes, across SKF
is enabling transparency, compliance and cost savings
© SKF Group
Roll out – wave time plan Roll out Projects
Compliance Projects Go Live
Q1 Q2 Q3 Q4 Q1 Q2
2017 2018
Q3 Q4
Central programPrepare
Wave 1Wave 1
Wave 2Wave 2
Wave 3Wave 3
Q1 Q2 Q3 Q4
2016 2019
Q1 Q2 Q3 Q4Q3 Q4
2015
Pilot
SwedenSweden
GermanyGermany
How?
• Spain
• Belgium
• China
• Italy
• Poland
• France
• UK
• US
• Mexico
• Brazil
• Austria
• Canada
• Argentia
• Netherlands
• India
• Bulgaria
• Malaysia
• Singapore
• Ukraine
• Korea
Vendors +2.800
A: TBD
B+C: TBD
+ ~3.000
Vendors: 2193
(All with Full Enablement)
+ ~3.000
Organisation
Supplier Enablement
© SKF Group
SKF Global
Supplier
Enablement Lead
Ariba
Network
enablement
ePRO Business
Manager
Poland
Supplier enablement
Lead
France
Supplier enablement
Lead
Italy
Supplier enablement
Lead
Spain
Supplier enablement
Lead
China
Supplier enablement
Lead
Belgium
Supplier enablement
Lead
Outsourcing
Partner
Supplier enablement global team – wave 1
• SAP Ariba solutions will engage our suppliers on behalf of SKF
• SAP Ariba solutions will assist suppliers in creating their account
• The account can be configured in minutes
© SKF Group
Full Enablement
 Integrated solution
 E-invoicing
 Supplier maintain their own master data
 Catalogue and category drivers
 Collaboration
 Cumbersome and long process
 SAP Ariba resources bottleneck
 Require much coordination
 Charging model
Light Enablement
 Fast, no supplier interactions
 No charge for suppliers
 No portal access to past transaction
 SKF maintain suppliers master data
 Not possible to use catalogues or category
drivers
 Not possible to use RFx collaboration
 Not practical to use e-invoicing
Full vs Light Enablement using one-time password (OTP)
Under review: Light account + vendor master in cloud (SM)
© SKF Group
2193 total suppliers uploaded (full enablement)
 Ready to transact (RTT): 52%
 Transacted: 15%
 Not yet enabled: 39%
 Closed/out of scope: 9%
 Average time to RTT for enabled suppliers: 54 days
German and Swedish enablement numbers
Adjusted approach going forward
 Full enablement only when needed
 Remaining suppliers as Light Enablement
 Review and investigate Light Account to benefit from
new functionalities
28PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Please complete session survey
Locate Session Click Surveys Button Select Breakout Survey Rate Session
Contact information:
Olaf Schrader
Director,
Network and Seller Solutions,
SAP Ariba (SAP)
o.schrader@sap.com
Thank you.
Håkan Hultén
Senior Manager,
Group Purchasing Business Process and
Transformation Manager, AB SKF Group
Håkan.Hultén@skf.com
Peter Jonas
Senior Manager,
World Wide Procurement, Dell
peter.jonas@dell.com

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How to Get Mass Supplier Enablement: Transform Your Supplier Enablement Program Globally

  • 1. PUBLIC Olaf Schrader, SAP; Peter Jonas, Dell; Håkan Hultén, AB SKF Group June 13, 2017 How to Get Mass Supplier Enablement: Transform Your Supplier Enablement Program Globally
  • 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Introductions Supplier Enablement Overview Dell Program SKF Group Program Panel Questions Agenda
  • 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ What’s happening in the world today
  • 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  That’s why we introduced the light enablement methodology in March 2016 (revolution).  Light account is an evolution of light enablement addressing limitations we had when using the current one-time password (OTP) approach.  Now our vision can be accomplished.  AND we still have a two-sided business model.  AND fully managed supplier enablement is still required and key for the ROI of our customers.  Segment suppliers into three groups (A, B, C): A: Suppliers need full enablement out of the gate B and C: Suppliers can and should be enabled on the fly using light enablement  95% Our vision for supplier onboarding Our goal is to digitize transactions between all trading partners and remove barriers to conduct commerce
  • 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ TRR invite Light enablement versus full enablement  supplier segmentation Help desk and support M2M integration Mobile portal Full CSC transaction set Innovations such as AribaPay ACH … SLP, SAP Ariba Sourcing, SAP Ariba Discovery Interactive e-mail Light account Free, simple Upgrade by choice NEW! LIGHT ENABLEMENT $ A B C 500 suppliers 1,500 suppliers 5,000…suppliers No compulsion Buyer Eliminate friction Inbox/outbox Catalogs Reports Interactive e-mail All basic fulfillment transactions + €$ ¥ Crucial for business case NEW! LIGHT ENABLEMENT Full Ariba Network functionality Full enablement out of the gate for vendors with legacy EDI integration or catalogs  strategic suppliers But only ~2% to 5% of the active vendors
  • 6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Light enablement is the methodology All suppliers perceive and pay for value in line with their usage  Exchange of all basic transactions, free for the supplier, with no change management supporting instant sign-up  Light-enabled suppliers can choose to pay for value-added services Incentivize buyers to enable all suppliers  Ability to turn off parallel processes, reduce supplier inquiries, get more accurate invoices  Majority of suppliers can be enabled ad hoc  start transacting faster and gain digital efficiency sooner Supplier enablement is efficient  Free and e-mail based: minimal change impact  Only actively enable suppliers that need full-use account like catalogs and integration. All others come on through light enablement  less effort and expense needed Light enablement (LE) methodology
  • 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Supplier onboarding process Key high-value categories and spend Everyone following processes/categories across geographies All trading partners regardless of size and sophistication Category optimization and replacement suppliers across areas Easy setup | Frictionless onboarding | Rapid expansion Enablement planning Primary supplier rollout Secondary supplier enablement Process/category/ geography expansion Optimized enterprise
  • 8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Supplier enablement project phases Strategy Continuous onboardingPilot onboardingDesign and build  Continue supplier onboarding by steady state team  Adopt Ariba Network internally and externally  Enable new vendors through an automated approach  Roll out new geographical regions  Onboard pilot suppliers  Train suppliers  Adjust communication approach or configuration, if needed  Report on progress and follow up with noncompliant suppliers  Conduct ordering and invoicing requirements gathering  Build communication and escalation strategy  Create supplier education material  Configure Ariba Network  Execute internal change management  Conduct user acceptance testing and end-to-end testing  Set project goals  Assign resources  Analyze vendor master data  Identify suppliers and develop flight plan  Define compliance message  Define pilot suppliers Project deployment phase Ongoing supplier enablement Ongoing change management Ongoing performance monitoring
  • 10. Dell Technologies is a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most important asset, information. Dell Technologies consists of 7 brands:
  • 11. The world’s largest privately controlled technology company in numbers: $72B revenue1 Serving 98% Fortune 500 ~145,000 team members 30,000 full time customer services and support team members 180 countries © Copyright 2017 Dell Inc.11 1 Pro Forma revenue for the fiscal year ended January 29, 2016 as filed in the Form 8-k on Sept. 9, 2016
  • 12. Summary • We are in the midst of integrating Dell Technologies • To ensure success, we recognized the need for cross- functional collaboration • Tracking improvement across 4 KPIs • On a journey to enable frictionless commerce for our suppliers and business partners
  • 13. Integrating Dell Technologies • SAP Ariba solutions customer for 10+ years • Legacy Dell is an on-premise customer with P2O and all upstream modules enabled • Moving to SAP Ariba cloud solution with legacy Dell and legacy EMC • Global footprint:  8,000 users  53 countries  ~$5B in spend through Ariba Network  e-Commerce enabled in 29 countries Dell Technologies
  • 14. Cross-functional collaboration to ensure success Objectives Actions taken  Secured co-sponsorship with Global Financial Services and Indirect Procurement  Developed cross-functional project governance structure  Selected and managed 9 work- streams Deliver new capability to procurement and business partners • Reduce noncompliant spend • Automate governance of non-PO spend • Increase transactional automation % o e-PO was 53% globally o e-Invoicing (29 countries) was 67% globally o Reduce invoice discrepancies
  • 15. Tracking improvement across 4 KPIs 0% 2% 4% 6% 8% 10% 12% 14% 16% FY15 FY16 FY17 Invoice discrepancy % 57% 60% 63% 52% 54% 56% 58% 60% 62% 64% FY15 FY16 FY17 Electronic POs % 11% 40% 67% 79% 81% 60% 65% 70% 75% 80% 85% FY15 FY16 FY17 Electronic Invoices % 26% 30% 31% 23% 24% 25% 26% 27% 28% 29% 30% 31% 32% FY15 FY16 FY17 Auto Received POs % 19% 20% Drivers • Policy changes • Ariba Network mandatory • Three enablement programs • Vendor Master DB management • Accounts Payable oversight
  • 16. Enabling frictionless commerce for our suppliers and business partners Complete deployment of SAP Ariba cloud solutions across legacy Dell and legacy EMC Areas of focus Desired future state Supplier enablement • Ariba Network • Supplier light enablement Moving from P2O to P2P within SAP Ariba solutions • Move invoice reconciliation and matching from ERPs to P2P • Enabling non-PO Invoicing via Ariba Network • Drive the same automation across legacy EMC • Approvals via smartphones and tablet devices • Improved user experience • User adoption Automation and mobility Usability
  • 19. © SKF Group 17-06-19 SKF vision and mission A world of reliable rotation The undisputed leader in the bearing business Slide 19
  • 20. © SKF Group Slide 20 SKF – a truly global company • Established 1907 • Sales 2015 SEK 75,997 million (~USD 7,600 million) • Employees 46,635 • Production sites ~115 in 29 countries • SKF presence >130 countries • Distributors/dealers 17,000 locations • Global certificates ISO 14001 OHSAS 18001 certification ISO 50001 • # Suppliers ~40,000
  • 22. © SKF Group Why SAP Ariba Procurement – How buying matters! • Transparency – Enable analysis of needs and buying patterns • Cost – Spend consolidation and leverage SKF buying power • Compliance – Compliance to policy and process • Significant global spend on IDMS • Limited possibilities to in-depth analysis • Limited leverage of SKF consolidated volumes From To Total savings vs. baseline 1.5 BSEK One Purchasing in SKF Harmonized purchasing, tools and processes, across SKF is enabling transparency, compliance and cost savings
  • 23. © SKF Group Roll out – wave time plan Roll out Projects Compliance Projects Go Live Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 Q3 Q4 Central programPrepare Wave 1Wave 1 Wave 2Wave 2 Wave 3Wave 3 Q1 Q2 Q3 Q4 2016 2019 Q1 Q2 Q3 Q4Q3 Q4 2015 Pilot SwedenSweden GermanyGermany How? • Spain • Belgium • China • Italy • Poland • France • UK • US • Mexico • Brazil • Austria • Canada • Argentia • Netherlands • India • Bulgaria • Malaysia • Singapore • Ukraine • Korea Vendors +2.800 A: TBD B+C: TBD + ~3.000 Vendors: 2193 (All with Full Enablement) + ~3.000
  • 25. © SKF Group SKF Global Supplier Enablement Lead Ariba Network enablement ePRO Business Manager Poland Supplier enablement Lead France Supplier enablement Lead Italy Supplier enablement Lead Spain Supplier enablement Lead China Supplier enablement Lead Belgium Supplier enablement Lead Outsourcing Partner Supplier enablement global team – wave 1 • SAP Ariba solutions will engage our suppliers on behalf of SKF • SAP Ariba solutions will assist suppliers in creating their account • The account can be configured in minutes
  • 26. © SKF Group Full Enablement  Integrated solution  E-invoicing  Supplier maintain their own master data  Catalogue and category drivers  Collaboration  Cumbersome and long process  SAP Ariba resources bottleneck  Require much coordination  Charging model Light Enablement  Fast, no supplier interactions  No charge for suppliers  No portal access to past transaction  SKF maintain suppliers master data  Not possible to use catalogues or category drivers  Not possible to use RFx collaboration  Not practical to use e-invoicing Full vs Light Enablement using one-time password (OTP) Under review: Light account + vendor master in cloud (SM)
  • 27. © SKF Group 2193 total suppliers uploaded (full enablement)  Ready to transact (RTT): 52%  Transacted: 15%  Not yet enabled: 39%  Closed/out of scope: 9%  Average time to RTT for enabled suppliers: 54 days German and Swedish enablement numbers Adjusted approach going forward  Full enablement only when needed  Remaining suppliers as Light Enablement  Review and investigate Light Account to benefit from new functionalities
  • 28. 28PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
  • 29. Contact information: Olaf Schrader Director, Network and Seller Solutions, SAP Ariba (SAP) o.schrader@sap.com Thank you. Håkan Hultén Senior Manager, Group Purchasing Business Process and Transformation Manager, AB SKF Group Håkan.Hultén@skf.com Peter Jonas Senior Manager, World Wide Procurement, Dell peter.jonas@dell.com