This panel discussion will focus on various companies’ reasons for using Ariba Discovery to find new suppliers, as well as why they are choosing to continue to use it for all of their sourcing projects moving forward. Whether you are sourcing new commodities, completing a rush order, or fulfilling specialized requirements, Ariba Discovery is the go-to tool for finding and qualifying new suppliers quickly.

1. Rush Orders, Specialized Requirements, New Commodities,
and More – Finding New Suppliers for Various Use Cases
Chris Wang, Senior Director, Product Marketing, Ariba Discovery, SAP Ariba
Brian Bender, Senior Director, Global Purchasing, JM Huber / March 16, 2016
Public

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Agenda
Introductions
Ariba Discovery Insights
Learning from JM Huber’s Experience
Q&A

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Introductions
Chris Wang
Senior Director, Product Marketing, Ariba Discovery, SAP Ariba
Brian Bender
Senior Director, Global Purchasing, JM Huber

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B2B eCommerce is evolving rapidly
E-COMMERCE IS HUGE
B2B e-commerce will hit $12 trillion in sales worldwide by 2020, up from $5.5 trillion
in 2012.1
B2B E-COMMERCE SALES ALMOST DOUBLE B2C
Customer-facing front-end B2B e-commerce will reach $559 billion – that number
excludes EDI transactions
CONSUMERIZATION OF B2B
80% of companies implementing B2B e-commerce believe that their customer
expectations have changed due to B2C practices
BUYERS WANT ENHANCED SEARCH
76% of B2B buyers listed Enhanced Search as one of their top three features, with 48%
of B2B sellers citing enhanced search as a top technology priority
B2B BUYING DECISIONS
57% of the buying process is done prior to engaging with Sales. B2B sites should be
sales tools assisting the buying process.
*Information from a Frost & Sullivan study (http://ecommerceandb2b.com/b2b-e-commerce-trends-statistics/)
1This number is exclusive of EDI

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High importance of supplier discovery
Driving Compliance
(3-Bids & Buy)
Unanticipated
Rush Orders
Secondary
Sources
Low-cost
Country Sourcing
Specialized
Requirements
New
Commodity
• Cycle time of traditional process is
too long to address stock-outs or
quality problems
• Approved vendor lists quickly become
outdated for service markets where
personnel turnover is high
• Higher demand for supplier risk
management
• Lack of enterprise resource or expertise
• Compliance in lower-priority commodities
outside strategic sourcing coverage
• Company-wide requirements for 3 bids
• Traditional search tools do not identify
eBusiness technical abilities, minority,
veteran, women-owned, green certification
• Expertise is difficult to find
• Enterprises have not yet invested in it

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Missed savings with too few suppliers
Source: Ariba OND Sourcing Customer Averages 2011; Ariba GSO Services Experience, 2010
0%
5%
15%
20%
30%
25%
10%
2 3 4 5 6 7 8 9 10 11 12 13
Number of Participants
AverageSavings
Average number
of participating
suppliers
Missed savings
opportunities with
too few suppliers
Savings vs. Number of Bidders

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Traditional supplier discovery process
SUB-OPTIMAL TRADING PARTNER DECISIONS
TIME CONSUMING
RESOURCE INTENSIVE
POOR QUALITY OF
INFORMATION

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Traditional supplier discovery process
Time Consuming
FIGURE OUT POTENTIAL SUPPLIERS
RESEARCH WEBSITES
SEARCH FOR CONTACT DETAILS
FIND RIGHT CONTACT PERSON
CALL, LEAVE A MESSAGE, CALL
AGAIN…
FIND OUT IF THEY CAN DO IT
POSSIBLY GET A QUOTE

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Traditional supplier discovery process
Poor Quality of Information
CAN THEY DO THE JOB?
IN THE AREA I NEED?
BY THE REQUIRED DATE?
FOR THE NEEDED AMOUNT?
AT THE RIGHT QUALITY?
IN THE COLORS I NEED?
DO THEY HAVE THE RIGHT CERTIFICATIONS?
WITHIN BUDGET?

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“I’m looking for…” “I can offer that!” “Perfect Match!”
Introducing Ariba DiscoveryTM: matching you with suppliers who
offer products and services you need
US$5 billion+ in buyer
postings
20,000 categories
4,000+ buying organizations
1,000,000+ suppliers
in network

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Save time and resources
Describe your buying needs in a posting, and get
matched to suppliers – it’s free!
FAST RESULTS
QUICK & EASY
Receive quotes from
interested suppliers and
compare multiple bids
Describe your buying
needs. It takes less than
10 minutes
SELECT THE BEST
Choose the supplier that
best meets your needs
Find relevant new suppliers faster and easier than
through traditional search methods

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Strong supplier community
2 MILLION+ SUPPLIERS

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Find suppliers for common…or uncommon things
Specialty Retailer: $3M,
Pizza Slice Box and Hot Wing Box
Major University: $75K,
Championship Rings
Consumer Products Company $1M,
Shelf-stable fish
Specialty Retailer: $500K,
Mannequins
Luxury Retail Brand: $500K,
Global Mystery Shopper
Hong Kong Buyer: $1M,
Straight and Safety Pins

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Major US Retailer: $1M,
Artificial Christmas Trees
Food Distribution Company: $1M,
Peanuts in Shells
Consumer Products Company $1M,
Toilet Paper
Specialty Retailer: $500K,
Pickles
Major Retailer: $500K,
Organic Dog Treats
Beauty Salon: $50K,
Human Hair
Find suppliers for common…or uncommon things

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“Exactly what I need!”
products
territories
diversity
activity
ratings
services
location
industry
green quality
membership last updated
references credit score
certification
How the matching works
Ariba Discovery’s powerful matching algorithm takes supplier’s
whole profile into account when matching them to buyers

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FAST & EASY INTERACTIVE
EFFECTIVE
TRUSTEDIT’S FREE!
Save up to 90% time and
75% cost finding and
qualifying suppliers
Lower your cost by 15%,
reduce lead time, and
improve quality
Communicate with buyers
and prospects in real time
Join other buyers who post
over $5B USD per year in
business volume
Post your buying needs
in 10 minutes,
and get matched to
suppliers at no risk
Key benefits
INTEGRATED
Easily bring suppliers into
your Ariba Sourcing,
Procure-to-Pay, or Spot
Quote projects from the start

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Additional savings with more suppliers
Source: Ariba OND Sourcing Customer Averages 2011; Ariba GSO Services Experience, 2010
Savings vs. Number of Bidders
0%
5%
15%
20%
30%
25%
10%
2 3 4 5 6 7 8 9 10 11 12 13
Number of Participants
AverageSavings
Average number
of participating
suppliers
Missed savings
opportunities with
too few suppliers

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How Ariba Discovery fits into the SAP Ariba solution suite
Supplier Management
SAP Ariba procurement solutions
Ariba Spot Buy (w/ P2P, P2O, APC)
Ariba Sourcing w/ Ariba Discovery
SAP Ariba sourcing solutions
Plan Request Approve Order Receive Manage PayContractSourceBUYERS
SELLERS
Source & Contract Request & Buy Invoice & Pay
Customer Management
Confirm Fulfill Invoice Monitor CashContractMarket Bid Specify
Strategic
Spend
Tactical
Spend
Ad-Hoc (Non-
Contracted)
Spend
Ariba Spot Quote
SAP Ariba procurement solutions

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A few pointers

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REVIEW PROFILES OF
SUPPLIERS WHO
RESPONDED WITH BIDS
REVIEW PROFILES WHEN
PREVIEWING SUPLIERS
Rich supplier information via supplier profile page
PROFILE FEATURES
• Company information
• Product and service categories, ship-to
and service locations, and industries
• Diversity, quality, green classifications
• Transacting relationships
• Ariba-Ready certification
• Customer references and ratings
Review suppliers’ profile pages to learn more about their
capabilities and credentials

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Collaborate and build relationships with new suppliers
Build your relationship with new
suppliers through a variety of channels
SEND MESSAGES
Contact suppliers you find interesting
ANSWER QUESTIONS
Provide more details to suppliers through Q&As
and messages
VET SUPPLIERS
Review supplier ratings and customer references
REVIEW SUPPLIERS
Get presented with matching suppliers within your
Ariba Sourcing solution
GET NOTIFIED
Get e-mail alerts for new postings and bidding progress
@

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Manage your own presence with buyer portal page
BUYER PORTAL PAGE
• Company information
• Product and service categories, ship-to
and service locations, and industries
• Unique URL
• Centrally displayed aggregate list of
current buying opportunities (RFI, RFQ)
posted by your organization
Share your portal page with suppliers
to increase awareness of your
buying opportunities

23. THIS IS HUBER
08.03.12

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The Huber portfolio

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JM Huber and its challenges
Challenges
Complicated sourcing process across a broad
range of products:
 8 different businesses, 27 process
manufacturing plants
Managing spend across 5 continents in direct &
indirect categories:
 FY 2015 spend = $1.1 billion
Manage large capital goods budget:
 FY 2015 = $135M
Manage MRO & plant services:
 FY 2105 = $60 million
Center led with decentralized execution at the
plant level:
 Plant buys focused on local sellers
 Multiple ERP applications
 Several organizational designs
Enhances the performance of industrial products with applications and support
across a variety of industries and markets

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Organizational KPIs for purchasing – global sourcing efforts

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Organizational KPIs for purchasing – global sourcing efforts

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JM Huber and Ariba Discovery
Uses Ariba Discovery to easily find sellers for a broad range of products across
manufacturing footprint
Ariba Discovery Results:
 Receives multiple competitive offers on a single platform
 Provides easy access for lower-dollar ‘Spot Buys’
 Expands number of potential sellers quickly
 Lowers sourcing & delivery lead time from several weeks down to sometimes days
 Best used for standard ‘commodity’ grade equipment vs. specialty
 Provides easy platform ability for market tests
 Alleviates local capacity issues and enhances productivity of plant and category buyers
 Quickly conducts market research and seller identification in new markets

29. Thank you

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