What You Don’t Know Can Hurt You – Why Collaboration is Essential
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Information is power and information comes from collaboration between you and you customers and suppliers. Industry leaders will discuss how everyone in can benefit with integrated supply chain collaboration.
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What You Don’t Know Can Hurt You – Why Collaboration is Essential
- 1. What You Don’t Know Can Hurt You – Why Collaboration is Essential! Information is power and information comes from collaboration between you and you customers and suppliers. Industry leaders will discuss how everyone in can benefit with integrated supply chain collaboration. © 2013 Ariba, Inc. All rights reserved.
- 2. What You Don’t Know Can Hurt You - Why Collaboration Is Essential! Robert Calvert Hewlett Packard Director, eBusiness Strategy © 2013 Ariba, Inc. All rights reserved.
- 3. #AribaLIVE Ariba ® Collaborative Value Chain – Direct, Indirect, Services © 2012 Ariba, Inc. All rights reserved.3 Buyer’s Processes: Analyze to Pay Supplier’s Processes: Market to Cash The Ariba Network is the world’s largest Business Network, allowing Buyers and Sellers to become more efficient across their Buying, Selling, and Cash Management Processes
- 4. #AribaLIVE Ariba ® Collaborative Value Chain – Direct, Indirect, Services © 2012 Ariba, Inc. All rights reserved.4 •Spend Data Enrichment •Spend Analysis •Contract Collaborat ion •Authoring •Repository •Requisition Ownership •Catalog Compliance •Contract Compliance •Approv al Workflo w •PO Collaborat ion •PO Transmissio n •Goods & Services Receipt •Invoice Receipt •Invoice Compliance •Invoice Approval •Exception Workflow • Awareness Marketing •Lead Collaborat ion •Proposal Collaborat ion •Bidding Opportunit y •Contract Collaborat ion • Contract Repository •Catalog Collaborat ion •Catalog Syndication •Requisition Collaborat ion •Specificati on Negotiation •Order Collaborati on •Order Status •Invoice Delivery •Invoice Collaborat ion •Supplier Info; Performance Mgmt; Supplier Research •Company Profile Mgmt •Customer Account Management Buyer’s Processes: Analyze to Pay Supplier’s Processes: Market to Cash •Payment Collaborat ion •Discount Collaborat ion •Payment Collaborat ion •Payment Visibility •Working Capital Collaborat ion •Category / Project Mgmt •RFI / RFP / Auction Collaborati on •Savings Tracking & Pipeline
- 5. #AribaLIVE Delivering Measurable Benefits Value to Companies of All Sizes, Industries, Regions Supplier ValueBuyer Value Sourcing Procurement Process AP Process Compliance WCM & Discount 3-9% Process Savings $3-20 Savings/ Document 1-8% Spend Savings Total Savings Faster Payment AR Process Processing Orders Sales & Marketing Increased Revenue 15-75% Time Savings 15-75% Process Savings 5-32% Revenue Increase Total Savings Source: Ariba customer surveys and interviews © 2013 Ariba, an SAP Company. All rights reserved.5
- 6. #AribaLIVE Touchpoints © 2013 Ariba, Inc. All rights reserved.6 Source Purchase Order Order Status Invoice/Payment Support
- 7. #AribaLIVE Buyer Seller Black Box Collaboration © 2013 Ariba, Inc. All rights reserved.7 Source Purchase Order Order Status Invoice/Payment Support
- 8. #AribaLIVE Buyer Seller White Box Collaboration © 2013 Ariba, Inc. All rights reserved.8 Source Purchase Order Order Status Invoice/Payment Support
- 9. #AribaLIVE All Roads Begin with Source © 2013 Ariba, Inc. All rights reserved.9 Catalog/ Simple Punchout Wizard/ Complex Punchout eQuote Non Catalog Contract Simple Goods ● ● ● ● ● Complex/ Configured Goods ● ● ● ● ● Milestone Service ● ● ● ● ● Metered Service ● ● ● ● ● Monthly Service ● ● ● ● ● Open Ended Service ● ● ● ● ● Goods and ServicesAll touchpoints within the procurement lifecycle tie back to source: • Customer use Source to create PO • PO acknowledge match the PO • Ship Notice match the PO • Packing slip match the PO (receiving) • Invoice match the PO (reconciliation) If source is not clean then all subsequent matching will fail Delays in receiving and/or reconciliation cause delay in payment/settle.
- 10. #AribaLIVE PO, Order Status and Invoice © 2013 Ariba, Inc. All rights reserved.10 Purchase Order : “Must be viewed separate from sales orders” “Anchor document to invoice reconciliation” “Process Savings requires white box thinking” Order Status: • “Unsung Process Savings” Why does buyer drive eInvoicing: “legally required” “reduce AR costs” Why does a supplier support eInvoicing: “legally required” “customer required” “to improve Cash Mgmt (reduce DSO and DRS) 10 Delivery Time + Digitized Data + Reconciliation Delivery Time + Digitized Data Delivery Time eInvoice (Customer PO) Web Invoicing eInvoice (HP Sales Order) PDF converted to eInvoice PDF + EFT Payment Tier 1 3+2+3 days Tier 2 3+2 days Tier 3 3 days 3 days
- 11. #AribaLIVE Spend Savings vs. Revenue Increases “Mutually Exclusive” “Revenue protection” “competitive differentiation” Process Savings vs. Process Costs “ROI proportionate to frictionless process Time Savings vs. Role Shift “Impact to Cash Mgmt - decrease DSO & DRS” “Shift of reconciliation role” Impacts of Collaboration Does not reflect HP figures 11 © 2013 Ariba, Inc. All rights reserved.
- 12. Questions? © 2013 Ariba, Inc. All rights reserved. 12
Editor's Notes
- Ariba’s On Demand applications and the Network generate measurable value to organizationsBuyer’s experience significant savings that fall right to the bottom lineSome savings are obvious (see above) but others less so. For example, a large Oil company was able to significantly cut inventory of replacement parts in its refineries due to the visibility into order status the network provided. This visibility not only enabled the managers to focus on the operations instead of whether a critical shipment was going to come, but also enabled them to reduce the excess inventory they needed as safety stock to ensure the refinery didn’t go downSuppliers experience savings through the automation of non-value added activities (like AR clerks having to call their customers each month to see when payments will be made)Suppliers also see top line growth from participation on the network – including net new business and increased wallet share with existing customers