More Related Content Similar to Increasing market share in customer accounts through online catalogs Similar to Increasing market share in customer accounts through online catalogs (20) 1. Increasing Market Share in Customer
Accounts Through Online Catalogs
Why Buyers and Sellers Collaborate Using Catalogs
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Catalog Options on Ariba
• No catalog
Non-catalog purchase orders
• Hosted (static) catalog
Catalog Interchange Format (CIF)
• PunchOut catalog
cXML integration to your E-commerce site
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What We‟ll Cover
• Company Background
• History of E-Business
• Why PunchOut?
• Lessons Learned
• Q&A
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6. #AribaLIVE
Who is Fleurop AG?
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German partner network with
more than 7,000 florist stores
founded: 1908 in Berlin
turnover: 71 Mill. Euro
employees: 75 in headquarter
orders: 3,5 m. incl. voucher
associated with Interflora network worldwide:
50.000 florists in more than 150 countries
over 25 million Fleurop greetings a year
Headquarters in Berlin
7. #AribaLIVE
© 2013 Ariba, Inc. All rights reserved.
Fleurop – business model
Each Fleurop greeting
is put together by
professional florists
exclusively,
and handed over
to the recipient
personally.
Worldwide.
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8. #AribaLIVE
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Why Flowers in Business?
• Improve customer relationships
• Retain customers
• De-escalate in critical situations
• Honor achievements
• Emotionalize communication
• Reach “target“ directly and personally
• Get high attention and create a positive atmosphere
• Touch recipient
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9. #AribaLIVE
© 2013 Ariba, Inc. All rights reserved.
E-Business and Fleurop
• Reason why?
- Large companies search for a centralized solution.
- Fleurop secures business for professional partner florists.
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10© 2013 Ariba, Inc. All rights reserved.
History of Fleurop„s E-Business
First Hosted-Catalog
Solution
Implementation
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11© 2013 Ariba, Inc. All rights reserved.
History of Fleurop„s E-Business
More Hosted-Catalog
Solution
Implementation
More Hosted-Catalog
Solution
Implementation
More Hosted-Catalog
Solution
Implementations
13. #AribaLIVE
13© 2013 Ariba, Inc. All rights reserved.
History of Fleurop„s E-Business
Document Exchange
cXML-Implementation
PO + e-Invoice
First Ariba
PunchOut catalog
Integration
First project with Ariba was customer driven
-> change from XML to cXML was necessary
:
14. #AribaLIVE
14© 2013 Ariba, Inc. All rights reserved.
History of Fleurop„s E-Business
Document Exchange
cXML-Implementation
PO + e-Invoice
More Ariba
PunchOut catalog
Integrations
Multiple use of PunchOut catalog for further customers:
Less effort for further projects because of standards
Document Exchange
cXML-Implementation
PO + e-Invoice
More Ariba
PunchOut catalog
Integrations
Document Exchange
cXML-Implementation
PO + e-Invoice
More Ariba
PunchOut catalog
Integrations
16. #AribaLIVE
© 2013 Ariba, Inc. All rights reserved.
Why PunchOut?
• flower greetings require a special order logic
- fixed delivery date
- shipping address (buyer or recipient)
- personal message
- additional fees for express / Sunday
hardly possible to provide in hosted catalogs
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Exclusive features for buyer
- Choose from 7,000 florist stores
- order product from the florist you know and trust
- option to pick up flowers personally
- possibility to deliver on the same-day
- enclose personal cover letter
- flexible free-text arrangements for individual needs
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Advantages for Seller
- order data is transferred without any integration gap
- cost and time required to fill and process has been reduced
- to be not only “mail order provider”
but
- to be a partner = Managed Service Provider
to offer added values
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20© 2013 Ariba, Inc. All rights reserved.
Buyer perspective Seller perspective
PunchOut offers “Best of two worlds”
• service and quality of florists
• consistent with purchasing policies
• offering the full flexibility
• tailored product catalogs
• user acceptance
• savings of €35 in administrative costs
per arrangement
20
• secure orders for florists
• fully automated process without
integration gap
• greater efficiencies
• Managed Service Provider =
deep integration + strong relationships
21. #AribaLIVE
© 2013 Ariba, Inc. All rights reserved.
Lessons learned
• customers have different
technical requirements and
business demands.
• create one PunchOut catalog and keep it flexible:
multi-client capability
configurable / parameterizable features
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© 2013 Ariba, Inc. All rights reserved.
Further Improvements planned
• offering additional services of florists e.g.
maintance of plants, gardening and landscaping
subscriptions e.g. decoration of entrance areas
• customize design / layout of PunchOut
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Advantages of PunchOut at a Glance
Managed
Service Provider
Order data
automatization
Strong
customer
loyalty
Integrated
solutions
Offer added
values
Savings in
administrative
costs
Transparency Compliance
Consumer-like
shopping
experience
Attractive
assortment
Buyer
Seller
PunchOut
catalog
23© 2013 Ariba, Inc. All rights reserved.
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What We‟ll Cover
© 2013 Ariba, Inc. All rights reserved.25
• Company Overview
• Problems that justified PunchOut and the results
• How IESA have invested in PunchOut to increase on-boarding
• The IESA PunchOut Marketplace
• Best Practice for PunchOut adoption
• Astra Zeneca story – why we like to work with Ariba PunchOut
26. #AribaLIVE
Company Overview
© 2013 Ariba, Inc. All rights reserved.26
IESA is the largest Integrated Supply organization in the EU providing
integrated self-financing procurement and inventory management
solutions to Industry on all aspects of Tail-end indirect spend
particularly MRO materials
•€150+Million Turnover p.a. on Industrial Materials
•1Million+ active stock materials under daily MRP
•30,000 Global Suppliers consolidated into one for our clients
•6Million+ transactions p.a.
•1.1Million+ MRO PO lines p.a. / Average PO line Value €138
•530,000 NON-STOCK PO lines p.a. / Average PO line value €118
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Classic Non-Stock
Indirect Spend Problem
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IESA is committed to make savings for our clients.
However using “traditional” procurement techniques, unit-cost savings alone
will be inadequate, as the transaction cost is close to the line value of the
Purchase Order line.
2004 –
Started using PunchOut as a means to attack transaction cost on the
50+% of our business which is non-stock purchasing.
2013 –
IESA handle 239,000 PunchOut Order lines p.a.
PunchOut Provides
•100% Accuracy on material codes and descriptions
•100% Accuracy cost and stocking positions from suppliers
•Client Contract compliance checks in real time
•Higher Granulation on Purchasing Categories
•100% Perfect match on e-Invoicing from suppliers and to clients
•Client user to PO to e-Invoice with ZERO IESA human involvement
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MyMRO Marketplace
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PunchOut has been so successful in 2010, IESA developed the
MyMRO Marketplace for our clients
to extend PunchOut beyond supplier web catalogues
Increase on-boarding for
large suppliers as Ariba
and IESA have done this
many times
Increase on-boarding for
small tail-end suppliers as
one-off purchases appear
in Ariba as PunchOut
catalogue orders
29. #AribaLIVE
How Does It Work?
© 2013 Ariba, Inc. All rights reserved.29
FREETEXT
SUPPLIER
PUNCHOUT
QUOTATION
PICKUP
AN PunchOut
Composite Order-pad
AN
PunchOut
Return
Approved cXML PO
100% matched
cXML Invoice
IESA send individual PO to
suppliers, delivery to ship-to
as specified in client PO
with client PO numbers
30. #AribaLIVE
Best Practice for PunchOut Adoption
© 2013 Ariba, Inc. All rights reserved.30
Keep to the cXML standard and use the Extrinsic Tags for variants
- Leads to seamless integration from PunchOut to ePurchase-Orders to eInvoicing
- The Key to eInvoicing success is good data at the beginning
- Use the Extrinsics to allow variations with suppliers/customers
Insist on the inclusion of Purchasing Categories during development
- Ideally as granular as possible UNSPSC/8
Define a UOM and Category Policy at the beginning
- Supplier Mapping vs inbound mapping
31. #AribaLIVE
Astra Zeneca Story
- an example of why we like to work with Ariba
© 2013 Ariba, Inc. All rights reserved.31
AZ policy was that as many non-stock purchases were processed electronically via
Ariba as possible
Today IESA process 100% of Non-stock purchases for AZ through Ariba and our
Marketplace
AZ have strict contract compliance rules on certain material types ( H&S, PPE, etc )
PunchOut allows IESA to block non-compliant requests in real-time
AZ wanted the interface live as fast as possible
From handover of IESA ASN code to first test PunchOut and PO on IESA – 45minutes
Go live after full cycle test to cXML e-Invoice - 1 week
AZ wanted to maximize on-boarding of the small sporadic tail end suppliers
Direct website punch-out to their largest 8 MRO suppliers at go-live
800+ small vendors onboard and PO placed through freetext Marketplace
32. #AribaLIVE
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Editor's Notes savings of €35 in administrative costs per arrangement An attractive assortment AgendaCompany OverviewProblems that justified PunchOut and the resultsHow IESA have invested in PunchOut to increase on-boardingThe IESA PunchOut MarketplaceBest Practice for PunchOut adoptionAstra Zeneca story – why we like to work with Ariba PunchOut Introduction to IESA.€150+Million Turnover p.a. on Industrial Materials1Million+ Stock materials under daily MRP30,000 Suppliers consolidated into one for our clients6Million+ transactions p.a.1.1Million+ MRO PO lines p.a. / Average PO line Value €138530,000 NON-STOCK PO lines p.a. / Average PO line value €118Leading to the point that IESA handles 100,000s of Non-stock PO at very low value Justification for Punchout to reduce transaction2004 started 2013 239,000 PO lines pa through punchout100% Accuracy on material codes and descriptions100% Accuracy cost and stocking positions from suppliersClient Contract compliance checks in real timeHigher Granulation on Purchasing Categories100% Perfect match on e-Invoicing from suppliers and to clientsClient user to PO to e-Invoice with ZERO IESA human involvement MyMRO MarketplaceDesigned to extend Punchout beyond web cataloguesIncrease on-boarding for both large company web-catalogues andSmall sporadic buy suppliers. MyMRO flowASN to MyMRO MarketplaceFreetext OrderQuotation request then Quotation pickupPunchout to Supplier web catalogueComposite OrderpadChecks for Contract compliancePurchasing category mapping UOM mappingReturn Orderpad to ASNASN to IESA POIESA e-Invoice to ASN Best PracticeKeep to the cXML standard and use the Extrinsic Tags for variants - Leads to seamless integration from Punchout to ePurchase-Orders to eInvoicing - The Key to eInvoicing success is good data at the beginning - Use the Extrinsics to allow variations with suppliers/customers - Don’t be tempted to allow standard butcheryInsist on the inclusion of Purchasing Categories during development- Ideally as granular as possible UNSPSC/8Define a UOM and Category Policy at the beginning - Supplier Mapping vs inbound mapping The AZ StoryWhy IESA like to work with AribaAZ policy was that as many non-stock purchases were processed electronically via Ariba as possibleToday IESA process 100% of Non-stock purchases for AZ through Ariba and our MarketplaceAZ have strict contract compliance rules on certain material types ( H&S, PPE, etc )Punchout allows IESA to block non-compliant request in real-time AZ wanted the interface live as fast as possibleFrom handover of IESA ASN code to first test punch-out and PO on IESA – 45minutesGo live after full cycle test to cXML e-Invoice - 1 weekAZ wanted users to maximize on-boarding of the small sporadic tail end suppliersDirect website punch-out to their largest 8 MRO suppliers at go-live800+ small vendors onboard and PO placed through freetext Marketplace
