The document discusses spend visibility and analysis tools. It notes that while most companies see spend visibility as important, only 40% have good visibility into spending. Traditional tools provide limited visibility and intelligence. The Ariba Spend Visibility solution powered by SAP HANA aggregates and enriches spend data through partnerships to provide comprehensive spend intelligence across suppliers, categories, and markets. It helps optimize procurement through savings, risk mitigation, and compliance. Case studies show benefits like 20% supplier reductions and $27.3M in savings over 2.5 years. User adoption best practices are also discussed.

1. Spend Analysis: Driving Procurement
Excellence with Numbers by Your Side
Presenters: Annie Vaseekaran, Keertan Rai
July, 2016

2. 2© 2016 Ariba - an SAP company. All rights reserved.
Good Spend Management Begins With Good Spend
Visibility
The Spend Management Ecosystem

3. 3© 2016 Ariba - an SAP company. All rights reserved.
86% of companies
say spend visibility
is very important …
But only 40% of
companies have
good visibility into
their spending
Source: SAP / Procurement Leaders Survey 2011

4. 4© 2016 Ariba - an SAP company. All rights reserved.
Inconsistent Data Quality
Disparate Data Sources
Manual Effort Intensive Processes
Limited Access to Market
Information
Poor Visibility on Suppliers
Why is Gaining Visibility on Your Spending a Challenge ?

5. 5© 2016 Ariba - an SAP company. All rights reserved.
Traditional Spend Visibility is Only the Tip of the Iceberg…
Data
Aggregation
Dashboards &
Reporting

6. 6© 2016 Ariba - an SAP company. All rights reserved.
Turning Data into Actionable Intelligence Requires More
Supplier
Enrichment
 Negotiation leverage
 Financial health & risk ratings
 Diversity & sustainability
 Price & industry indices
 Online communities
Supplier network intelligence
Commodity
Classification
 Increased spend under management
 Category optimization
 Contract compliance
Data Aggregation
Dashboards &
Reporting
Market
Intelligence
Integrated Spend
Management
 Collaborative sourcing
 Reduced maverick spending
 Capture savings leakages

7. 7© 2016 Ariba - an SAP company. All rights reserved.
Ariba® Spend Visibility powered by SAP HANA
A Clear View of All Your Spend and Suppliers in One Place
Ariba Spend Visibility unified with D&B Business Insights and powered by HANA
provides you the ability to make trusted and confident spending decisions by
delivering comprehensive visibility on your spend data.
 How much are we spending?
 What are we buying?
 Who are we buying from?
 Improve sourcing pipeline
 Increase purchasing clout with suppliers
 Rationalize supplier & product portfolio
 Reduce inventory costs
 Increase spend under management
 Mitigate supplier risk
 Diversity and sustainability adherence
Insights Decisions

8. 8© 2016 Ariba - an SAP company. All rights reserved.
Ariba® Spend Visibility powered by SAP HANA
Your on-ramp to effective spend management
 Data enrichment
• Unique partnership with Dun & Bradstreet (D&B) for insights into
the supply base with 245 million records updated monthly in a
5-level hierarchy
• Optional green/diversity/risk scores through D&B
• Flexible data schema and custom taxonomy to address industry-
specific needs
 3D visibility for true spend intelligence
• Granular commodity classification – United Nations Standard
Products and Services Code (UNSPSC), ACT, or custom
• Robust supplier enrichment
• Market indicators and benchmarks
 Robust analytic tools
• Prepackaged, best-practice reports, role-specific dashboards,
and slice-and-dice reports
• Shared network supplier profiles completing the 360-degree view
 Ariba Spend Visibility Benchmarking Program
• Gauge your spend profile and Compare insights on key metrics
against aggregated peer group data

9. 9© 2016 Ariba - an SAP company. All rights reserved.
Realize Benefits Beyond Sourcing
Sourcing Savings
Increased spend under
management and improved
sourcing pipeline
Contract Compliance
Improved adherence to negotiated contracts and
reduced off contract spending
Working Capital Leverage
Total visibility on supplier level payment
terms and better supplier negotiation
leverage
Mitigated Supplier Risks
Insights on supplier financials,
litigations and other risk
indicators
Reduced Cost of Procurement
Optimized supplier base and categories,
visibility in to price indices and discount
leakages

10. 10© 2016 Ariba - an SAP company. All rights reserved.
Unlocking Insights Across Multiple Fronts
Entertainment &
Media
Organization
ROI on three year
subscription reached in
single category identified
and sourced
97% of the annual spend
classified and enriched over
98% of the supplier base
thus resulting 20% supplier
reduction
USD 27.3 million savings in
2.5 year period and 18%
average savings across all
spend categories
Over 400,000+ goods and
services categorized based
on industry taxonomies at
99% accuracy

11. 11© 2016 Ariba - an SAP company. All rights reserved.
Ariba Spend Visibility: Process workflow
Data enrichment
processes in
Ariba Spend Visibility
Customer data
source systems
Raw data loaded
into Ariba Spend
Visibility portal (input)
1
Extract, transform, and
load process
ERP 1 ERP 2 P- Card
…….
Ariba Spend Visibility
portal
powered by SAP
HANA
in the cloud
Market data
benchmarks
4
6
Enriched data
loaded to
portal
(output)
Quality
assurance
5
Commodity
classification
Supplier data
enrichment
2 3

12. 12© 2016 Ariba - an SAP company. All rights reserved.
Sustaining end user adoption is the key to ensuring long
term benefits
Deployment of a new tool often raises questions:
Where is this information coming from?
What does it tell me?
How do I build the reports I need?
Can I trust the data?
How do I identify sourcing opportunities and areas for improvement?

13. 13© 2016 Ariba - an SAP company. All rights reserved.
And it Takes More than Just Software to Get There
User Adoption Best Practices
Core user / core team
Best Practice Center (BPC) projects
Dashboards, templates
Regular refinement process
ACT vs. Custom Taxonomy

14. 14© 2016 Ariba - an SAP company. All rights reserved.
Thank You
Keertan Rai
Director – Solutions Management
SAP India Private Limited
Bangalore, India 560103
Tel: +91 98861 28425
Keertan.rai@sap.com
Annie Vaseekaran
Manager – Solutions Marketing
SAP India Private Limited
Bangalore, India 560103
Tel: +91 9611277511
Annie.vaseekaran@sap.com