Service Entry Sheets for Major and Complex Capital Projects

Service Entry Sheets for Major and
Complex Capital Projects
Darrow Weiss, SAP / March 16, 2016
Public
Cor van der Scheer
Procurement Processes & Systems Manager
Mark Paparelli
Director of Procurement

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Manual field ticket or automated service entry sheet?
This? Or this?
`

Service entry sheet options
No-PO Invoice
Contract Invoice
BPO Contract Invoice
Multi-Level PO Flip
SES Auto-Generation
SES with PO Flip
ERS in ERP

Panelist questions
1. Why did your company choose to automate service entry sheets (SES) through SAP Ariba?
2. What benefits has/will your company realized with SAP Ariba SES?
3. What are your top 3 recommendations for implementing SES, and which is the most
important/why?
4. What is your company’s plan to increase the use of SES with buyers, suppliers, and
internal customers?
5. What other industries do you think should be considering the use of SAP Ariba SES?

National Grid
Mr. Mark Paparelli, Director Global Procurement

Company overview & procurement background
National Grid is one of the largest investor-owned energy companies in the world and we own and
manage the grids that connect people to the energy they need, from whatever the source. In Britain,
we run the gas and electricity systems that our society is built on, delivering gas and electricity across
the country. In the North Eastern US, we connect more than seven million gas and electric customers
to vital energy sources, essential for our modern lifestyles.
A key contributor to our company is the Global Procurement Department which manages over $3.2
billion in spend across the UK and US. The company has invested in two major transformations over
the past six years to achieve Procurement Excellence. The first, was a process transformation to a
category based methodology and the second is our technical transformation.

Procurement transformation journey
• Business led and IT supported, on-going journey.
• Started in 2013 to automate processes across P2P, Inventory & Fleet to improve the
customer experience.
• In August 2014 started to replace the on premise SUS Supplier Portal system to the Ariba Network
Cloud and replace Hubwoo external catalog with Ariba Procurement Content.
• Integration between SAP ECC, SAP SRM, Ariba Network and Ariba Procurement Content was
successfully completed in November 2015.
• Monthly Supplier enablement waves being carried out thereafter.

Procurement journey – initial goals & expected outcomes
Initial Goals:
• Improve Procurement’s value to the organization
• Remove redundant /manual processes
• Build a technical foundation for the future
• Drive Procurement and Shared Services to become more customer centric
The Ariba implementation provided many technical and process enhancements in our journey to
Procurement Excellence.
 18 new interfaces between ECC, SRM and SAP Ariba to support National Grid business requirements
 Enabled Service and Limit procurement through Ariba Network that includes Service Entry
Sheet Functionality
 Established a single catalog solution for Contract, Hosted Catalog, Punch-out and Stock materials
 Auto creation of Stock Transfer Orders in SAP backend from an Ariba Procurement Content stock material
shopping cart
 Introduction of Advanced Shipping notice to support demand planning
 Addition of Dynamic discounting for suppliers

Procurement journey – final outcomes & best practices
Final Outcomes
 5 Supplier Enablement Waves targeting around 500 Suppliers, with ~250 already enabled
 ~$1 billion worth of Supplier spend transacting on Ariba Network by end of April, 2016
 ~200,000 invoices to be processed on Ariba Network by end of April
 75 catalogs are successfully hosted on Ariba Network – all owned and managed by Suppliers
 Catalog quality has been improved with availability of 70% images
 Both SUS and non-SUS category of suppliers are targeted for enablement
Best practices
• Consider the Art of Possibility – blank sheet of paper
• Have a 3-5 year roadmap across P2P
• Spend time up front on technical design
• Have the projects business led and IT supported
• Put your best resources on the project
• Don’t forget business enablement

AusNet
Mr. Cor van der Scheer, Procurement Processes & Systems Manager, AusNet Services, Australia

Suite of high-quality assets
100% own, operate and control critical energy delivery infrastructure in Victoria
* All figures are approximate as at 31 March 2015
Electricity Transmission
• 6,573km of transmission lines
• 13,000 towers
Electricity Distribution
• 50,987km of electricity
distribution network
• 679,213 customers
Gas Distribution
• 10,630km of gas distribution
network
• 647,536 customers

Comments
Why SES via SAP Ariba? – tracking activity to assets
 Hundreds of Thousands of Notifications – Bundled into WOs
 Detailed cost management per Asset (e.g. 440,000 poles alone)
 2.1M pieces of
equipment grouped
by class
 Manage notifications,
inspections and
subsequent new
repair/fix notifications,
leading to new WOs
 Enables us to allocate
costs to each asset
Equipment count in SAP (thousands) by Eq_class Insights2.139K
TOTAL
MISC
166K
SURGE
DIVERTER
58K
DIST
TRANS-
FORMER
98K
INSULATOR
117K
GASMAINS
127K
CONDUC-
TOR
412K
CABLE
401K
CROSSARM
256K
439K
FUSE
DISCON-
NECTOR
65K
POLE
76% of equipment
count in 5 main
categories

Third party processing via SAP Ariba – supplier connectivity
Service Entry
Sheet
Purchase Order
Requisition for 3rd
Party Service
Work Order
SAP Ariba Service Provider
PO /
WO list
SES
csv file
RCTI or
Invoice
1
2
3
5
4
6
7
7
3PI
21

Top 3 recommendations
 Stakeholder identification – who is going to be affected most, in what way, to
what extent?
 Understand the full impacts of the End to End process on each of the parties
 Change management is critical – between Procurement / Supplier Management /
Supplier IT enablement / Internal Business Management and Internal Project
team streams
Stakeholder Management Asset Management and Procurement/Logistics stream,
and with key supply partners and SAP Ariba

AusNet Services plan to increase use of SAP Ariba SES?
 In essence our targets are being met
 Key suppliers on board
 Next phase, though, is with Labour Hire Agencies
In stabilisation phase, but

What other industries should be considering SAP Ariba SES?
 Require detailed information about services provided for distinct projects,
assets, activities
 Those services are able to be defined and repeatable
 Suppliers capture the respective data points on your behalf
Essentially an industry which incurs a lot of service orders – and:

Auto PO creation is critical, as is fixed pricing
Purchase
Order
Purchase
Requisition
Work
Order
Ariba
Network
Then SAP automatically generates a Purchase Requisition
Subsequently a modified ME59N is triggered when the OA
referenced is a ZDP type to convert the PRs into POs
Finally, the PO is routed through Ariba Network to the supplier
(based on the PO transmission setting on the vendor record)
When the work order calls out CUs with task lists,
and the “control key” is set to PM03 and the Purchase Req field is
set to “immediate”, and WO status is Released

Thank You Cor van der Scheer
Procurement Processes &
Systems Manager
+61 413 150 545
Transmission Distribution

Request, order, approve, SES, reconcile, pay process
SAP Fieldglass

Thank you
Contact information:
Darrow Weiss
Director, Value Realization
Houston, Texas, USA
+1 281-569-9677
Cor van der Scheer
Procurement Processes &
Systems Manager
+61 413 150 545
Mark Paparelli
Director of Procurement
Waltham, MA USA
Mark.paparelli@nationalgrid.com
+1 (401) 714-1608

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Service Entry Sheets for Major and Complex Capital Projects

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