Have you achieved cost savings in procurement but ignored the business value to be gained from automating the payables process? In this session, you'll hear from organizations that have effectively linked procurement and accounts payable through Ariba Network to extend the impact of e-procurement to accelerate invoice processing, improve on-time payment performance, and more.

1. PUBLIC
Michiel Ven, Senior Business Analyst, ABN Amro
Drew Hofler, Sr. Director, SAP Ariba (SAP)
June 12, 2017
When Procurement Meets Accounts
Payable: The Power of Alignment

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Paper-based transactions
“61% of invoices require manual
processing.”
IOFM, 2016
“71% of companies experienced
actual or attempted check fraud.”
2016 AFP Electronic Payments Survey
Too many exceptions
“19.1% of invoices have exceptions,
delaying the processing of invoices.”
Ardent Partners, 2015
Lack of visibility into invoice
and payment data
“34% of survey respondents cited
lack of visibility as a key problem for
accounts payable.”
Ardent Partners, 2015
Leakage of value
“>50% of businesses capture <21%
of early payment discount offers.”
IOFM, 2016
“Tens to hundreds of millions of
dollars in contract leakage for global
organizations.” Multiple sources
(1) Basex Research
Collaboration inefficiencies cost companies $650 billion
(1)
annually
Inefficient procure-to-pay (P2P) process affects buyers and suppliers
Visibility – source –
contract
Request – buy –
invoice
Finance – pay

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Business networks – on-ramp to the digital economy
Connecting people, systems, and processes to simplify business commerce

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Value to business stakeholders
Procurement
 Control of spend
 Compliance to contracts
 Increased catalog usage
AP/finance
 Remove paper
 Eliminate exceptions
 Capture discounts
 Reduce payment cost and risk
Treasury
 Increased cash flow
visibility and control
 Working capital
 Return on cash (discounts)
IT
 Deep integration
 Rapid deployment solution
packages
 Cloud benefits
 Low TCO
Working capital
(DPO and
discounts)
Invoice
(automate and
accelerate)
B2B payment
Certain. Secure.
Simple.
Right supplier,
right price
buyer supplier

5. When procurement meets Accounts Payable: the power of alignment
5
• Introduction & Context
• Take aways & Objectives
• What we actually did…
• … and what the challenges were
• Examples
• Wrap up & Discussion

6. Mr. Dijkhuizen (CEO): “One of our
main objectives is to deliver
convenience to our clients [and]
deliver our products and services
fast.
[We] can now offer a mortgage
loan within 24 hours [and] clients
who submit a digital application
for a loan of up to EUR 1 million
can now obtain a credit decision
from the bank within 48 hours.
Full service-bank

7. Context
7
• We are a bank: services
• SAP ECC (FI/CO/MM), Ariba CM/SV, Ariba P2P/ASP
• Automated interface between Ariba and SAP ECC
• Global Procurement
• Decentralised requestors
• Roll-out started in IT

8. Takeaways and Objectives
8
• Governance Get and keep Procurement and Finance aligned
• User perspective Enforce a restrictive system usage
• Technical Focus on business rules and master data
Objectives
• Uniform ordering process
• Straight Through Processing (STP)

9. What we actually did
9
• Requestors do not fill in accounting data. Business rules:
• Department code / project code + commodity code 
cost centre, G/L, account assignment, …
• Mandatory receiving (3-way match)
• Only 4 order types:
• hours, one time cost, recurring cost, asset
• Simple 3-step approval flow:
• administrative, content, budget
• Use of catalogs

10. The challenges
10
• Discipline to receive in time
• Get clarity about the business rules for accounting
• Get clarity about ownership of data (RACI)
• Onboarding of suppliers
• Long term vision or creation of points of no return

11. Examples
11
• The mystery of the lost cost centre owner.
• Surprise! I have found some budget.
• The devil’s dilemma: uniformity or standardization? Long live
customizations!
• Please stand up if you understand what a cost centre is.
• “But, but, but … I did it always like this…”
• The challenge of receiving: “How can I know if they worked 40 hours
in India?”

12. Wrap up
12
• There is no reason at all why the bank should have a different
procurement or finance process than the rest of the world.
• There is absolutely no reason why one department should work
differently than another.
• Alignment of Procurement/Finance to convince businesses.
• Don’t take the easy route. No pain, no gain.
• If you do it, do it good.

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14. Thank you.
Contact information:
Michiel Ven, ABN Amro
michiel.ven@nl.abnamro.com
Drew Hofler, SAP Ariba
drew.hofler@sapariba.com