Download - SAP Cloud Conference | Manila | 6th March | ARIBA Business Network

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Supplier Perspective: Benefits of Joining ARIBA Network

Tushar Gulhane | Procurement & Business Network LOB SAP Cloud Conference | Manila | March 06, 2014

Public

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2Public

Agenda

2

3

1 Networks in Social and Business Context

Philippines Supplier Community at-a-glance

Why Suppliers are joining ARIBA Network

Benefits Summary4


‘Networks’ in Social Context

Discover

Connect

Collaborate


Transforming Social Network Models to Business

Discovery

Connect & CollaborateShopping

The Ariba Network combines domains from various personal networks in which end-users are engaged into a single platform for businesses

1.2 Million trading partners


ARIBA Network Activity by Country in Asia

VIET NAM

INDONESIA

THAILAND

KOREA

TAIWAN

HONG KONG

MALAYSIA

SINGAPORE

INDIA

JAPAN

PHILIPPINES

CHINA

0 500 1,000 1,500 2,000 2,500

By # of Transacting Suppliers

Philippines has 2nd highest number of suppliers transacting on ARIBA Network in Asia

2nd Highest number of PO transactions in Asia


ARIBA Network Activity - Philippines

In last 12 months …. 2257 # of Active Suppliers on AN and growing…

93,163 # of POs sent on AN

63,754 # of E-Invoices (PO based) sent on AN

$ 200 M+ Total Spend Throughput (PO amount)

$ 58 M Total Invoice amount through AN

Why Sellers are Joining Ariba Network ?


Philippines Supplier Community At-A-Glance

Micro, 74,3250

Small & Medium, 73,509

Large; 3496 820,200+ business enterprises operating in the Philippines

Of these, 99.6% (816,759) are micro, small, and medium enterprises (MSMEs)

Backbone of the economy employing around 65% of the country workforce


Top 10 Challenges of the SME Community in Philippines

1. Banks are wary of SME lending because it is costly

2. Information asymmetries raise the risks of lending to SMEs

3. Collateral takes precedence among lending criteria

4. SMEs lack skills in preparing financial records

5. Few SMEs maintain extensive banking relations

6. SMEs need to be more financially literate

7. Inadequate supply of skilled workers

8. A huge proportion of SMEs are still not “e-ready”

9. Acquiring technologies can be prohibitive

10. Limited awareness of alternative technologies and support services

ARIBA is helping them address these challenges. HOW ?

Access to Finance

Technology Adoption

Skills Shortage


ARIBA Commerce Cloud for Suppliers

Suppliers create ARIBA Commerce Cloud Profile on seller.ariba.com No need to install a software.

This enables a supplier to:

A

LEADS: Discover new business relationships and receive leads

PROPOSALS: Participate in online sourcing events & quotations

CONTRACTS: Access your customer contracts and negotiate terms

ORDERS & INVOICES: Manage your online orders, catalogues and invoices.


Multiple Buyers through Single ARIBA Supplier Account

Supplier : Information, Communications and Security Technology (ICST) company based in the Philippines

1 ARIBA Network Account

4 Buyers (all Philippines based)

# of POs received in last year: 300+

Business transactions worth PHP 50 M through ARIBA Network

Supplier

Buyer1

Buyer2

Buyer3

Buyer4

B

Supplier Feedback - “We are managing 4 customers in Philippines and are now getting invitations from international buyers to submit quotations through our ARIBA account”


Get Paid Faster & Reduce Cost of Borrowing

ARIBA Network Enables: Lower errors and invoice disputesFaster invoice processing Improved traceability of invoices

Result: Faster payments by 10-15 daysFor a supplier with annual sales of

PHP 36.5 M (Daily sales ~ 100,000 PHP) => 100 K – 150 K PHP in cost savings

C

XYZ DSO 60 Days 45 Days

1 Day sales (avg.) 100,000 PHP 100,000 PHP

Cash invested 60,00,000 PHP 45,00,000 PHP

Cost of Borrowing 10% 10%

Annual Interest charges

600,000 450,000

Savings 150,000 PHP

Example

Supplier Feedback - “Our overdue payments have reduced by 80%. Since we started getting paid on-time we now have a positive cash flow”


Manage Latest Products & Pricings through Catalogues D

Supplier Feedback -

“We are now able to update catalogue regularly with latest product offerings & prices. Orders we receive are more accurate. ”


Case Study – Charles Seafoods Supply


Priceless Benefits !

How ARIBA is Helping SMEs

Improving cash flow and reducing cost of borrowing

Become e-commerce ready Increasing awareness of cloud

based technologies Training them on new sourcing

& procurement skills Making them ARIBA Ready for

other buyers

E

SME Challenges

Access to Finance

Technology Adoption

Skills Shortage


Buyer Objectives

Reduce Supply Chain Costs

Find New Sources of Supply

Becoming more efficient and effective with existing suppliers

Better manage working capital, DPO

Seller Objectives

Sell more to existing customers

Find new customers to sell to

Greater payment visibility

More efficient and effective with customers

Improve working capital, DSO

Win-Win Situation for Both Buyers and Sellers


Conclusion

Buying & Selling. More fun in the

Philippines

…with ARIBA Cloud Apps & Network

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

Contact information:

Tushar GulhaneProcurement & Business Network LOBSAP Cloud Customer [email protected]+65 9673 8509

mailto:[email protected]

Download - SAP Cloud Conference | Manila | 6th March | ARIBA Business Network

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