It really takes two to tango. Managing contracts was never meant to be within the four walls of your enterprise. Collaborative contract management today offers organizations opportunities to mitigate those countless risks that haunt supply chain operations. During this session, contract management professionals share their experiences with how working in tandem and on a real-time basis with their counterparts has helped them to identify and address compliance leakages, supply chain risks, and savings opportunities. Learn more about Ariba LIVE at http://spr.ly/LIVE2014LV-d

1. Unlock True Contract Management and
Maximize Return on Investment
Speakers
• Phyllis Sills – American Red Cross
• John deBrun – Top Source LLC
• Craig Fischer – Las Vegas Sands
Moderator:
• Jennifer Gassaway – Ariba, an SAP Company
#AribaLIVE
@ariba

2. Agenda
•
•
•
•
2
Introduction
Panel Discussion
Key Takeaways
Q&A
© 2014 Ariba – an SAP company. All rights reserved.

3. The Panel Team
Speakers:
Phyllis Sills – American Red Cross
John deBrun – Top Source LLC
Craig Fischer – Las Vegas Sands
Moderator:
Jennifer Gassaway
3
© 2014 Ariba – an SAP company. All rights reserved.

4. Contract Lifecycle Management
Top Pressures Within Procurement
Risk management, visibility, and
compliance concerns
are paramount
Top 5 Top 5 Reasons Cited
Reasons Cited
Establish better control
of enterprise spend
66%
Poor visibility of
contractual relationships
44%
Pressure to reduce
supply and supplier
risk
40%
37%
Need to improve
compliance
Poor visibility into
supplier performance on
contracts
34%
Source: Aberdeen Group,
Procurement Contract Lifecycle Management, January 2012
0
4
“Contract Management
technology provides an
opportunity for procurement
organizations to take contract
maintenance out of the hands
of legal counsel, while
allowing them to focus on
increasing efficiency and
driving cost savings.”
10
20
© 2014 Ariba – an SAP company. All rights reserved.
30
40
50
60
70

5. Ineffective Contract Lifecycle Management
Results in Increased Compliance Risks
5
© 2014 Ariba – an SAP company. All rights reserved.

6. Contract Management Automation Lead
to Better Visibility and Compliance
Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
6
© 2014 Ariba – an SAP company. All rights reserved.

7. - - - And Drive Superior Procurement
Results and Maximize ROI
Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
7
© 2014 Ariba – an SAP company. All rights reserved.

8. Agenda
•
•
•
•
8
Introduction
Panel Discussion
Key Takeaways
Q&A
© 2014 Ariba – an SAP company. All rights reserved.

9. Unlock True Contract Management
and Maximize Return on Investment
Phyllis Sills, PMP
American Red Cross
#AribaLIVE

10. American Red Cross
The American Red Cross prevents and alleviates human suffering in the face of emergencies by
mobilizing the power of volunteers and the generosity of donors.
Vision: The American Red Cross, through its strong network of volunteers, donors and
partners, is always there in times of need. We aspire to turn compassion into action so
that...
...all people affected by disaster across the country and around the world receive
care, shelter and hope;
...our communities are ready and prepared for disasters;
...everyone in our country has access to safe, lifesaving blood and blood products;
...all members of our armed services and their families find support and comfort
whenever needed; and
...in an emergency, there are always trained individuals nearby, ready to use
their Red Cross skills to save lives.
10
© 2014 Ariba – an SAP company. All rights reserved.

11. The Starting Point
•
•
•
11
2007 - 2009 Strategic Sourcing Organization implemented
2009 - 2011 – Search began for an end-to-end Supply Chain
Management System
May 2012 – ReQuest, the Red Cross Ariba solution
was implemented!
© 2014 Ariba – an SAP company. All rights reserved.

12. Ariba Solutions Deployed
•
•
Ariba Solutions Implementation was a rapid deployment to the
NHQ, Chapters, Disaster, In-Kind and non-regulated Biomedical lines of
business. The roll-out moved us from paper to online ordering overnight.
Full Suite of solutions:
Supplier Information
Procure to Pay
Sourcing Professional
Contract Compliance
Contract Professional
Integration of solutions to current data sets
(Oracle, data warehouse, etc…)
Order Management
Process changes necessary to
implement solutions
Supplier Performance Management
Supplier Enablement
Spend Visibility
12
© 2014 Ariba – an SAP company. All rights reserved.

13. The Numbers
•
•
•
•
•
13
1.3 billion = Sourceable spend
85-90% = Spend under Management
7,500 Suppliers
350 Suppliers Enabled to-Date
25 Catalogs are Live
© 2014 Ariba – an SAP company. All rights reserved.

14. Challenges – Across the Enterprise
•
•
•
14
Prior to ReQuest - Procurement was largely a paper operation
Until 2012 - Chapters were unique entities with their own
ordering processes and financials
Some LOBs were/are change averse
© 2014 Ariba – an SAP company. All rights reserved.

15. Challenges – Supply Chain
•
Contracts
Moved to Ariba – we had all of our contracts together at last
Training happened – Supply Chain Team
–
A lot of information but not a clear understanding
No - Migration Plan for existing contracts. Direct impact on
effectively moving forward with Supplier Enablement.
•
•
•
15
Small team for support
Accrual issues
Contract Compliance vs. Purchase Orders
© 2014 Ariba – an SAP company. All rights reserved.

16. Tackling the Challenges
•
Contracts
Providing additional training for Supply Chain Team
Developed migration plan for existing contracts. Direct impact on effectively moving
forward with Supplier Enablement.
Still struggle with setting up some contracts
•
•
Small team for support
Accrual issues
Contacted Ariba and began a Crash coarse in Contract compliance resulting in training
for Sourcing Managers
Modified existing reports and developed additional reports to reflect accruals for
the Red Cross
Addressing issues as encountered
16
© 2014 Ariba – an SAP company. All rights reserved.

17. Change Management – still a challenge
“The world as we have created it is a process of our thinking.
It cannot be changed without changing our thinking."
Albert Einstein
17
© 2014 Ariba – an SAP company. All rights reserved.

18. Unlock True Contract Management
and Maximize Return on Investment
March 2014
#AribaLIVE

19. Agenda
•
•
•
•
19
Introduction
Panel Discussion
Key Takeaways
Q&A
© 2014 Ariba – an SAP company. All rights reserved.

20. Agenda
•
•
•
•
20
Introduction
Panel Discussion
Key Takeaways
Q&A
© 2014 Ariba – an SAP company. All rights reserved.

21. TopSource Overview
TopSource is a wholly owned subsidiary of Topco Associates LLC and provides not-for-resale (NFR)
spend management. For 65 years, Topco has leveraged the scale with its members in procurement
to lower product costs.
For-Resale Programs









21
Frozen
Dairy/Bakery
Grocery
HBC/GM
Rx
Fresh Meat
Branded Meat
Produce
National Brands
© 2014 Ariba – an SAP company. All rights reserved.
NFR Spend Programs











Construction
Equipment
Hired Services
IT Telecom
Logistics & Distribution
Marketing
Office Products & Supplies
Packaging & Supplies
HR Benefits
Fuel
Utilities

22. TopSource Overview
Our customer network represents collectively over $150 billion in annual retail sales which includes over
sixty grocery retailers, drug stores, wholesalers, food manufacturing companies, food
services, restaurants, and other retail businesses.
22
© 2014 Ariba – an SAP company. All rights reserved.

23. TopSource Overview
TopSource manages not-for-resale spend on behalf of our wholesale and retail customers. In
addition, TopSource conducts auctions on behalf of all customers across for-resale and indirect spend.
Spend
Management
eSourcing Center
Of Excellence
Supplier
Management



Retail and Distribution Strategic Sourcing Professionals
Sourcing Leverage – over $13 Billion in potential indirect spend
Proven sourcing process meshed with enabling technology
(Spend Analytics, eSourcing, and Contract Management)





Dedicated eSourcing / Auctions team with wide ranging experience
Mature process and capabilities
Mature and Strategic Supplier Scorecarding Process
Financial Risk Assessment
Price Change Management

24. Strategic Sourcing and Contracting Process
TopSource utilizes a number of esourcing technology tools to conduct its strategic sourcing process
more effectively and to institutionalize their learning.
Sourcing
• Utilize Discovery
Auction

Negotiate price
 Standardize
contract creation
• Issue RFx and
collect responses
 Maximize
• Store profile
information
 Increase
• Create category
specific templates
• Drive process
adoption
24
Contract
Management
© 2014 Ariba – an SAP company. All rights reserved.
competition
 Generate
notifications to
buyers and teams
 Consider
alternative
price scenarios

Measure
supplier
performance
 Store all contract
related documents
speed to
savings
Supplier
Management
 Provide robust
search and
reporting
 Drive
continuous
improvement
 Monitor
supplier
financials
 Manage price
changes

25. Challenges to Ensure Optimal ROI
Compliance/People
Consistent message from leadership
Change management/incentivize use
Diagnose reasons for non-compliance
Take the easy way out
Disagree/rogue/maverick
Create training process for practice
25
© 2014 Ariba – an SAP company. All rights reserved.

26. Challenges to Ensure Optimal ROI
Process
Simple yet thorough process
Initial upload – remember amendments
Leads to dual processes and confusion
Look for bottlenecks
Look for ways to make amendments easier
Run health check reports
Have designated go to resource for questions
Create a quick Legal Approval process
26
© 2014 Ariba – an SAP company. All rights reserved.

27. Results
•
•
•
•
•
27
100% compliance within TopSource
Over 1,300 contract workspaces
11 different processes for different departments, with associated
super users
Multi-location benefits
Corporate council mandated the use of Ariba contracts
throughout entire Topco organization
© 2014 Ariba – an SAP company. All rights reserved.

28. Unlock True Contract Management
and Maximize Return on Investment
Craig Fischer
Las Vegas Sands
#AribaLIVE

29. LAS VEGAS SANDS CORPORATION (LVSC)
Las Vegas Sands Corporation (NYSE: LVS)
Leading global developer and operator of destination integrated resorts (IRs)
Properties include Las Vegas, Macao, Singapore, and Bethlehem (PA)
Net Revenue for the past 6 years from LVSC’s 2013 10-K
Year
Net Revenue
2008
2009
2010
2011
2012
2013
$4.38B
$4.56B
$6.85B
$9.41B
$11.13B
$13.77B
Confidential
29

30. VALUE OF A CONTRACT MANAGEMENT SOLUTION TO LVSC
Controls Tool to ensure compliance to the contracting process
• Global system of record (SOR) for all LVSC contracts
• Ensures that Legal and Sr. Management approval workflows are followed
• Facilitates the appropriate signature through eSignature capability and
automatic storage of signed document
• Access control that allows users to see contracts related to their areas
of responsibility
• Develop and quantify process improvements
Confidential
30

31. GLOBAL SYSTEM OF RECORD (SOR)
Global System of Record (SOR)
Contract Management system that has:
• Standard processes
• Easy access to contracts details and analytics
• Allows for compliance audits
Legal Entity or
Property
Date of
Deployment
Contracts
2012
Contracts
2013
Contracts
2014
Corporate
April 2012
276
444
123
Bethlehem
May 2012
64
98
12
Las Vegas
June 2012
325
885
116
August 2012
287
1,087
160
June 2013
1
848
403
953
3,362
814
Marina Bay Sands
Macao
Yearly Totals
Totals
Confidential
5,129
Contract Data as
of February 27th
Contract Data as
of February 27th
31

32. PERCENT OF SPENDS VS. CONTRACTS
Confidential
32

33. REQUIRED APPROVAL WORKFLOWS
•
Required Approval Workflows
3 Types of Approvals are used at LVSC:
 Contract Request approval by Department Vice-President
 Legal review of the contract
 Sr. Management approval of tentative contract
- Legal review completion is a predecessor to Sr. Management approval
•
Approval routes can be built on many factors such as dollar amount, General
Operations vs. Capital Expense, etc
•
Approvals can be completed by email; email can be configured with
document/summary information
•
Active Approval report in analytics allows for approval follow-up
Confidential
33

34. EXAMPLE OF CONFIGURED APPROVAL EMAIL
Example of Configured Approval email
Confidential
34

35. ESIGNATURE CAPABILITY
Integration of eSignature Capability
• Solution configured for required LVSC signer to sign a contract
–
•
Fully supported by the eSign Act of 2000 in the USA
–
•
Completed contract is sent to all parties involved and uploaded automatically to the contract in Ariba
Various countries have similar laws
In use since February of 2013 for LVSC’s USA operations
–
–
Deployed in Singapore in December of 2013
Over 1,200 contracts signed through eSignature
•
Signer can choose to sign electronically or physically
•
LVSC underestimated the value of eSignature. Applying it to other areas for
efficiency gains
Confidential
35

36. ACCESS CONTROL TO INFORMATION
Access Control to contract information in Ariba
Control can be set from the lowest of levels to the highest:
• Low – Individual document or contract
• Med – Department contracts
• High – Property
Access Control field is available in analytics for
compliance checks
Confidential
36

37. PROCESS IMPROVEMENT
Process Improvement due to available contract data
Contract Request Approval by VP switching to a Notification
•
Audit of approval data show no rejections by VPs
Ability to do Self-Audits of contracts
•
Analytics can pull a majority of the audit data points
Identify opportunities for Master Contract/Amendments vs. multiple contracts
identified through data exploration
Automated contract reporting for regulatory filings
Many other ideas to explore…
Confidential
37

38. Thank you
Q&
A
Contact information:
Jennifer Gassaway
Product Marketing Manager
E: jennifer.gassaway@sap.com
38
© 2014 Ariba – an SAP company. All rights reserved.