Simplify Supplier Risk Management Across Your Procurement Processes

PUBLIC
Month 21, 2017
Chris Wang, SAP Ariba (SAP)
James Edward Johnson, Nielsen
Padmini Ranganathan, SAP Ariba (SAP)
Simplify Supplier Risk Management Across
Your Procurement Processes

2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Introduction
SAP Ariba Supplier Risk Solution Overview
Sharing Best Practices
Q&A
Agenda

Public
Speaker introduction
Chris Wang
Senior Director, Product Marketing
SAP Ariba (SAP)
Padmini Ranganathan
Vice President, Products & Innovation
SAP Ariba (SAP)
James Edward Johnson
Director, Risk Management & Analytics
Strategic Partnerships & Sourcing
Nielsen

SAP Ariba Supplier Risk Solution Overview

Public
Don’t become the next headline
Multiple global auto
manufacturers temporarily
suspended production after
Fukushima nuclear plant
radioactive leaks
2011
Major entertainment
company to pay as
much as $8M to settle
data breach case
2014
Global fast-food chain’s
image as a safe food
provider in China
shattered over expired
meat scandal
2014
“In 2020, less than 2% of organizations with $1 billion or more in revenue will have a single
solution to manage risk across all spend categories, direct and indirect.”
– Gartner 2016 Strategic Roadmap for Supply Risk Solution Deployment, May 2016

Public
Gaps in supplier risk management
Costly, time-consuming
processes; neglected market
signals
Unknowingly engaging at-risk
suppliers; unrecoverable
business disruptions
Manual risk scoring
Fragmented risk
information
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6
Compromised business results
and reputation
Sporadic supplier due
diligence

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…segment your
supply base by risk
level and risk
categories for
focused risk due
diligence
What if you could…
…focus on risk
information from
onboarding to
qualification to
performance
management for all
supplier segments
…establish proactive
risk due diligence
while qualifying and
evaluating your
suppliers
Move from reactionary crisis management to proactive risk management across all spend categories

Public
SAP Ariba Supplier Risk
Simplify risk management across procurement processes
Resolves barriers to information
Applies to your entire supply base
Is integrated into your SAP Ariba solution cloud
Keeps procurement compliant
Segmentation
by risk
Due
diligence
Risk
Scoring
Compliance
checks
Real-time risk
dashboards
Engagement
assessments*
Issue
management*
Regulatory
and legal
compliance
Financial
Environmental
and
social
Operational
* Include planned innovations.

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How SAP Ariba Supplier Risk works
Incidents
Legal and regulatory
compliance
Financial Operational
Environmental
and social
Impact*
Exposure
Assessments
Adjudication*
Remediation*
Supplier risk
scoring model
Integrated, open, configurable
Business
continuity
Business
reputation
Supplier engagements*
Inherent Relationship
Performance Supplier ratings

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Solution highlights
 Segment suppliers based on risk exposure grouped by risk
categories for focused due diligence
 Consolidation of fragmented supplier risk information from internal
systems, relationship/procurement profiles on Ariba Network and
external signals
 Data syndication from 500,000+ sources including news sites,
government data, disaster system, public and private data sources,
and more
 Unified corporate information enrichment, compliance checks
and reporting, country-specific risk profiles, supplier parentage and
linkages, natural disaster information
 Over 130 risk incidents tracked and delivered as risk alerts to users
 Integration with supplier lifecycle process; for example, new
supplier request automatically generates a risk exposure profile
including compliance checks which can serve as guidance for
qualification
 Comprehensive supplier 360-degree reporting with one view
across full supplier profile, ongoing activities and risk profile
 Supported by a scalable and rapid supplier onboarding through a
unified supplier model that integrates to the ERP
 Planned capabilities including intelligent inherent risk identification,
guided risk assessments, collaborative supplier response, and action
tracking

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Models that calculate risk
exposure using
 Supplier relationship
context
 Ongoing engagement
assessments*
 External data
 Integrated with SAP
Ariba Procurement
solutions
 Leverages unified vendor
model
 Supplier self-service*
EFFICIENTSMART SIMPLE
 130+ tracked risk incidents
 500,000+ sources, including
open Web, NGOs, news sites,
government data, natural
disaster information systems,
and private data sources
 Risk segmentation made easy
The SAP Ariba Supplier Risk difference
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Public
SAP Ariba Supplier Management solution portfolio
Other
ERPs
MDG-S
Other DWs
SQL and
NoSQL DBs
SAP Business
Suite and
other ERPs
Two-
way
sync
Common supplier record
Syncbusinessprocess
Syncbusinessprocess
SAP Ariba source-to-settle application suite
SAP Ariba Supplier Lifecycle and Performance
Onboarding Qualification Segmentation
Performance
management
Development
& phase-out
Vendor
model
Qualification
matrix
Segmentation
matrix
Spend
matrix
Supplier-managed
information
buyer supplier
SAP Ariba Supplier Risk
News
sources
Government
sources
Ratings
sources
Financial
sources
External data sources

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SAP Ariba Supplier Management portfolio in a nutshell
Embedded within
the source-to-
settle process
Help the world run better and improve people’s lives!
Proactive risk
management
Single source of
supplier information
collection, ongoing
management, and
syndication

Sharing Supplier Risk Management Best Practices

Public
Question 1 – What are some of the key challenges you face in managing supplier risk?
Question 2 – How are you deploying the SAP Ariba Supplier Risk solution?
Question 3 – What is the longer-term road map for SAP Ariba Supplier Risk in your
organization?
Question 4 – What are some of the key trends in supplier compliance and sustainability risks
that you are pursuing?
Sharing best practices

Public
Please complete session survey
Locate Session Click Surveys Button Select Breakout Survey Rate Session

Thank you.
Contact information:
Padmini Ranganathan
Vice President, Products &
Innovation
SAP Ariba (SAP)
padmini.ranganathan@sap.com
Chris Wang
Sr. Director Product Marketing
SAP Ariba (SAP)
xin.wang03@sap.com
James Edward Johnson
Director, Risk Management & Analytics
Strategic Partnerships & Sourcing
Nielsen
james.e.johnson@nielsen.com

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