diana brown senior director, network · pdf filediana brown – senior director, network...
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© 2014 SAP AG. All rights reserved. 2 PMAB
The Challenge: Too many ineffective approaches for B2B
collaboration across the End to End Process
Your
Company
Buyers
Mail, Phone, Face-to-Face
Enterprise and Supplier Portals
EDI VAN’s
Single Process Solutions
Dedicated Direct Connect
Fax Server
Manual paper-based collaboration
Suppliers
(*) Basex Research
Wasted time &
resources Missed sales
opportunities
© 2014 SAP AG. All rights reserved. 3 PMAB
The Opportunity: Business Networks facilitate electronic
inter-enterprise collaboration between trading partners
Strong business networks can create competitive advantage and help organizations grow top-line and save on the bottom-
line simultaneously1
Suppliers Buyers
Business
Network
65% of Best in Class companies have the
capability to effectively collaborate with their
network of suppliers versus only 21% of
laggards.
B2B Integration and Collaboration: Strategies for Building a ROI Business
Case, Aberdeen Group. June 2011
“
”
(1) Based on Ariba customer engagements and benchmarks
20% improvement in working capital
4 -15% reduction in unit price
60% improvement in compliance
4x increase in process efficiency
$
Higher Margins &
Positive EPS Impact
© 2014 SAP AG. All rights reserved. 4 PMAB
The Value: A winning proposition for buyers and
suppliers
Your Objectives
Procurement | Supply Chain
Finance | IT
• Significantly shorten contracting cycle times.
• Significantly grow seller base by building new
relationships.
• Reduce supply chain costs and risk.
• Gain better visibility and predictability.
• Manage working capital.
• Lower manual paper-based collaboration.
• Improve compliance.
• Faster cash-flow through discounts and proper
payments in-time.
Suppliers’ Objectives
Sales & Mktg. | Customer Service
Accounts Receivable | Business Development
• Improve payment visibility and timing.
• Lower customer service costs.
• Increase sales.
• Drive higher customer satisfaction.
• Find sales opportunities
Better Collaboration Leading to Winning Outcomes
Two-sided value proposition
Driving outcomes across your organization and for your suppliers
© 2014 SAP AG. All rights reserved. 5 PMAB
Typical benefits are significant Leveraging SAP and Ariba network and source-to-pay solutions
4-15% Sourcing savings
70% Operating cost reduction (AP & Procurement)
1-4% Compliance savings
$2-3M Discount savings for $1B addressable spend
40%+ Cost reduction
6 Days DSO reduction
15% Increased sales & wallet share
Buyer Benefits Supplier Benefits
BEST IN CLASS BENCHMARKS1
75% % of PO & Invoice
lines against item
Master/ Catalog/
Contract
86% of addressable
spend managed
strategically(2)
10,000 POs processed per
FTE
Invoices Processed
per FTE
% of spend under
early payment
discount
50,000+ 20%
(1) Based on Ariba customer engagements and benchmarks (2) Specific to Consumer Products industry; SAP Benchmarking & Best Practices Program
© 2014 SAP AG. All rights reserved. 6 PMAB
Invoice Against
Contracts
Services Invoicing
Procurement Content
Catalogs
PO & Invoice Automation
E-Transactions & Status
Sourcing
Analysis. Sourcing & Contracts
Your Trading Partners Your Applications
1.2+ million
Trading Partners
65+ million
Annual Invoices
190
Countries
>60%
Global 2000 use the
Network
$500B
In Annual
Commerce
40+ million
Annual Purchase Orders
How? The Ariba Network & Cloud Assets Addresses all trading partners, processes and back-end systems, simply
Discounting
Dynamic Discounting
© 2014 SAP AG. All rights reserved. 7 PMAB
Financial Services
CPG & Retail
Technology
Chemicals, Energy, Mining
Healthcare and Pharma
Manufacturing & Construction
Services and Other
BUYERS SELLERS
Network Experience across the Globe in many Industries
Businesses of all sizes, regions, sectors -- incl. 90% of Fortune 100
© 2014 SAP AG. All rights reserved. 8 PMAB
End to End Supplier Processing with Suppliers Standardized Approach – Ariba + ERP
One single solution for Suppliers
For all connected Clients
For all Processes
Supplier View
Procurement Spot Buy Request
Spot Buy Bid
PO, SO, BPO
Change Order
Forecasts
Order Confirmation
Adv. Shipment Notices
Service Entry
Enable & Catalog Supplier Enable
Catalog Enable
Catalog Manage
Sourcing Discover
Negotiate & Contract
Invoice & Pay PO /Non PO invoices
Invoice Against
Contracts
Credits
Invoice Status
Pay Schedule
Discount Update
Remitrance
Manage Data Updates
Performance
FI PM
SCM
MM VIM
SRM
© 2014 SAP AG. All rights reserved. 9 PMAB
Sourcing
Analysis. Sourcing
& Contracts
End to End Sourcing Support – Tactical to Strategic
Collaborative Sourcing Solution Analysis and Sourcing
Visibility into all supplier information
Supplier profile information on one tab
Supplier performance information on another – Scorecards – Contracts – Spend Analysis – Sourcing Events
Execute and Monitor Sourcing Projects and Forecasted Savings Opportunities – Strategic RFx Mgmt – Tracking & Monitoring – Tactical Bidding
Integrated Contract Initiation, Authoring and Negotiation
© 2014 SAP AG. All rights reserved. 10 PMAB
Procurement Content
Catalogs
Collaborative Commerce Catalogs – Seamless Shopping from ERP
Catalog Storage, Classification & Rich Attribute Searching
Contract Compliance
External Catalogues
Catalogue Reporting
Catalogue Validation
Catalogue Reporting
“Spot Buy” quote requests
Content Validation
© 2014 SAP AG. All rights reserved. 11 PMAB
Extending Collaborative Commerce to Suppliers
PO & Inovice Automation E-Transactions
& Status End to End PO Collaboration
Elimination of Lost POs
Supply Visibility & Assurances
Real Time Acknowledgements
Process Compliance Controls
Advanced Ship Notice collaboration
Invoice Receipt & Validation
Receive invoices in ANY format
Upfront Matching prior to Post to ERP
Real Time Communication of errors
Service Entry Compliance to Contracts
Supply Chain Assurances,
Visibility & Process Compliance
Immediate and clear explanation of Invoice exceptions
to SUPPLIERS prior to posting to ERP
Supplier View
© 2014 SAP AG. All rights reserved. 12 PMAB
Ariba’s Smart Order and Invoicing Approach
Invoice
Error
Exception
BUYERS
Ariba’s Smart Processing approach drives auto post rates of 98% by
eliminating errors and exceptions at the point of supplier submission
PO & Inovice Automation E-Transactions
& Status
AR
SUPPLIERS
Acct Coding
Price Compliance
Contract Match
VAT/GST Compliance
Qty Threshold
Unit Amt Threshold
Invoice” Number
Invoice Date
Ship to Address
Bill-to Address
Ariba
98%+
Auto Post
Supplier Portal provides real-time
access to PO, invoice and
payment status eliminating
inquiries to AP & Procurement
Over 80 configurable rules that
capture errors and exceptions
before they reach AP & Proc
Treasury
EAM
Procure- ment
SCM
MRP
AP
© 2014 SAP AG. All rights reserved. 13 PMAB
Complex Services Services Invoices directly again Contract Price Book Compliance
Complex Services Services Invoicing
Invoice Against Contracts by Suppliers
Direct compliance to Rate Terms
Complex Rate Term modeling
Immediate validation back to Suppliers
Field Approval (optional)
Approval of service delivery
Mobile access & handling
Supplier View
© 2014 SAP AG. All rights reserved. 14 PMAB
Service Entry Sheets & Invoice Creation
Easy Entry of SES’s by suppliers – conforming to Service POs (line & sub line compliance)
Flip approved SES’s into Invoices to assure invoice compliance
Contract Compliance & Mobile Approvals (optional)
• Automated and direct compliance to contract data
Mobile Email, PDA, iPad approvals & visibility
Services Entries for Complex Project Categories Network based management of service entry collaboration
BUYERS
Procurement
Field
Engineer
Finance/
Complex Services Services Invoicing
Supplier View
© 2014 SAP AG. All rights reserved. 15 PMAB
Complex Services Invoicing Service Entry for Services Orders (cont)
Suppliers can do service entry for confirmed Services PO
Supplier View
Complex Services Services Invoicing
© 2014 SAP AG. All rights reserved. 16 PMAB
Complex Services Invoicing Ad-hoc line items for Service Entries (cont)
© 2013 Ariba, Inc. All rights reserved.
Buyers can configure business
rules for ad hoc items in the
service sheets
Complex Services Services Invoicing
© 2014 SAP AG. All rights reserved. 17 PMAB
Services Invoicing Supplier Outbox / Buyer Inbox for Service Entries (cont)
© 2013 Ariba, Inc. All rights reserved.
Services Invoices: Supplier Inbox/ Buyer Inbox
Buyers and suppliers have listing of all submitted service entry sheets and related status with filtering logic and export to excel.
Suppliers can create invoices for any buyer approved Service Sheet
Suppliers can create invoice for multiple SES’s from the same PO.
Complex Services Services Invoicing
Complex Services Services Invoicing
© 2014 SAP AG. All rights reserved. 18 PMAB
PSFT + Ariba Network
SAP + Ariba Network
Oracle + Ariba Network
Automation with >2,500 suppliers
>16% of suppliers offering early payment discounts
Automation with > 400 suppliers & 300 catalogs in less than 8 weeks
PO and Invoice Automation efficiency on >$4.5B in spend
Cut 75% Processing Costs
Automation with >4,500 suppliers
Integrated with 8 SAP systems
Cut >30% BPO costs
Aligned Interest between Procurement & AP
Automation with >4,000 suppliers
Cut 80% processing costs
Cut cycle time 70%
Eliminated over-spending in field services ($1B+) with ‘Inv against Contracts’ on Network
Improved DPO 5 Days while expanding discounts $1.3M+ in Year 1
Ariba Network for Buyers
Value Achieved (SAP and Non-SAP)
Large Entertainment Co.
MAXIMO + Ariba Network
Transforming AP into a Profit
Center Transacting in 50+ countries
Process
Efficiency
Effectiveness &
Compliance Cycle
Times
Discounts &
Working Capital
Key Value Drivers
Increased Buyer Productivity 30%+
70% of invoice volume automated in 12 mos on Ariba Network
98.8% touchless invoice rate
© 2014 SAP AG. All rights reserved. 19 PMAB
Sellers also benefit from using Ariba solutions
Benefits
Decrease in PO errors.
Approved PO initiates
Perfect Order process
Decrease in Invoice errors
Reduced manual
intervention and decreased
customer support costs
Greater Process Efficiency Getting Paid Faster Top Line Revenue Growth
Reduced order processing costs 75% and 40% reduction in customer service calls
Order processing costs reduced 30%
Dramatically reduced invoices rejected by customer, resulting in significantly faster payment
Reduced days outstanding
by 75%
Several customers have grown triple digits through catalogs
Increase orders on contract
for up to an 80% decrease
in unauthorized spending at
customer
Benefits
Provide visibility into when, how
much, and what suppliers will be
paid for
Eliminate misplaced invoices
Improve on-time payment and
reduce Days Sales Outstanding
(DSO)
Benefits
Increase orders on contract
Extend catalog visibility to all
end users
Participate in Sourcing and
Spot Buy events to win new
business
© 2014 SAP AG. All rights reserved. 20 PMAB
Recommended Journey for Optimizing Supplier
Collaboration
Beginning Phases
Improve
Automation
Connect ERP to Network for PO to Invoice processes
80% electronic
98% touchless
60-80% process cost reduction
Improve Discount
Savings
Optimize Pay Terms – take advantage of Dynamic Discounting
$2-3M savings per £1 billion targeted
24%+ annualized rate of return on cash
25% of targeted suppliers participating
Improve
Sourcing
Enrich, rationalize and identify sourcing opportunities to drive down costs
30% decrease in sourcing cycle time
RFX creation and management
Identify and qualify suppliers, negotiate best-value agreements
Implement supplier agreements, track savings, and manage supplier performance
Improve
Procurement
Increase Catalogs – Materials & Services
Enable Supplier Self Service of content
Increase compliance during transaction process – materials & services (POs and Invoice against Contracts)
Eliminate over-spending from contract rates
Improve Supplier
Management
Manage the entire supplier
life cycle from discovery to on-boarding to risk and performance management
Unify supplier profiles across the company
Determine if suppliers deliver on contract
Have fact-based conversations with suppliers regarding performance
85% reduction in supplier management costs
$
Future Phases
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