EHF/PEPPOL for B2B e-commerce - ADFAHRER · PEPPOL • Even before Statoil actively promoted use of...

EHF/PEPPOL for B2B e-commerce Statoil’s experiences after adoption of EHF/PEPPOL (v1.1) 8 mars 2017 Classification: Open

© Statoil ASA

Statoil’s history on e-commerce •  Statoil was an early adopter of e-commerce and it all started around year 2000

when Statoil initiated the industry initiative Trade-Ranger together with 13 other corporations. Later this initiative was handed over to Hubwoo. The suppliers could choose interaction via a supplier portal or B2B connection. Format between Hubwoo and Statoil is xCBL

•  Statoil was an early adopter of the national eInvoice e2b format with B2B connections directly or via message providers

•  After a while Statoil identified the need for an e-commerce solution that did not require IT resources from the supplier side. Statoil developed its SAP SRM SUS based Vendor Portal which is aimed at suppliers with low transaction volume

•  Statoil’s acquisition of onshore operator ship in the USA introduced Statoil to the North American based OpenInvoice solution which is using the PIDX format. The suppliers can choose interaction via a supplier portal or B2B connection

8 mars 2017 2 Classification: Open © Statoil ASA

What is our goal with e-commerce?

• Our goal is to achieve a digital interaction between Statoil and the suppliers with electronic exchange of business transactions without human intervention and as such have a foundation for robotics process automation

• A digital Statoil will never succeed if we can’t overcome the weakest link: a paper based transaction flow and business requirements that requires a paper based transaction flow

•  In order to achieve a more structured and digitized transaction flow, both sender and receiver must be able to produce, receive and utilize the structured and digitized information in their respective ERP systems


Experiences from NSC M&M 2016

• With the Maintenance & Modifications 2016 (M&M 2016) for the Norwegian Continental Shelf (NCS) project we saw that replacing just parts of the paper based transaction flow for purchase orders and invoices and changing the business requirements lead to a win-win situation for both Statoil and the suppliers with minimal cost compared to the business benefits


Why did Statoil end up with EHF/PEPPOL?

•  In 2013 Statoil did a research in the market and believed that the upcoming EHF/PEPPOL could be as supplement to a well functioning commercial network combined with a supplier portal and a direct B2B connection for the largest volumes

•  Fortunate for Statoil, considerations around selection of formats and standards for NCS in particular meant that we experienced the rapid adoption of the EHF/PEPPOL solution that happened in Norway during 2014 and the increasing number of requests from suppliers to support EHF/PEPPOL

•  Initially the adoption of EHF/PEPPOL was a result of the B2G requirements from the public authorities, but once setup it soon became obvious that private sector participants could use this as a B2B as well


Lower oil price and an intention of a lean, low cost e-commerce solution

• We kept a close eye on EHF/PEPPOL as a B2B solutions with a high potential, especially due to the large number of participants and the expected ease of implementation and a lower threshold than traditional solutions, but a low oil price meant that the first real case came autumn 2015

•  In autumn 2015 we received a project request with the purpose to implement a new e-commerce solution in conjunction with new contracts for NCS Modification and Maintenance, with a delivery March/April 2016

•  Initially the main evaluation focused on re-using existing solutions in Statoil with EHF/PEPPOL as a new, alternative candidate


Lower oil price and an intention of a lean, low cost e-commerce solution

• Statoil did a research with all potential M&M suppliers with respect to their preferences, capabilities and plans within e-commerce, at the same time we performed a proof of concept evaluation of potentials solutions

• The outcome was very clear; All suppliers singled out the EHF/PEPPOL B2B solution and our own proof of concept showed that a solution utilising EHF/PEPPOL was easier to achieve, faster to implement, with a lower cost and efforts for both Statoil and the suppliers

MM16 Go-live

First cut-off


Flipping PO to invoice

• With all the market place networks and our supplier portals we always emphasised the ability to flip PO information into an invoice; this ability has existed since year 2000

• For a portal solution this was a good solution in the early days, but suppliers with higher volume will often look upon portal solutions as a burden; they need to manually duplicate the information from the purchase order into a sales order in their own system and afterwards they need to manually duplicate sales information back to invoice input in the supplier portal

•  In a B2B setting all the flipping from PO->sales Order -> invoice in their own ERP/sales system avoiding the manual burden of duplicating information

Statoil ERP

Supplier ERP

Statoil ERP

Supplier ERP

Flipping the PO on a portal

Flipping the PO on B2B


Content validation

• Validation of message content has normally been resolved by a “filter” between the supplier and buyer. Depending on standards and business content this validation might cause a lot of efforts up front, or a lot of manual coding and clean up after receiving the message

• One of the beauties with EHF/PEPPOL is that all messages are pre-validated according to given EHF/PEPPOL standards. In Norway this means that EHF invoices are and will be according to the national accounting rules and current and upcoming regulatory requirements

• The expected mandatory requirement from the Norwegian government for e-invoicing in the private sector will be fulfilled with EHF/PEPPOL

• Even if the pre-validation of EHF/PEPPOL will not satisfy all business requirements, there are less information elements to validate compared to other formats


The transport network

• Traditional direct B2B connections can be compared to having to dig a ditch an place a “landline” for each connection

• For an established marketplace network, one only “landline” needs to be created towards the network and you will have B2B reach similar to the number of “landlines” they already have connected

• To connect a new B2B supplier to the network a new “landline” has to be prepared

• Up until now this has been the best practice on how to establish and expand the B2B coverage for ecommerce transactions


• The PEPPOL eDelivery transport is similar to having access to a mobile phone network

• You select a certified provider (Access Point), look up in the address book for the right (company registration) number and can call the receiver immediately. No need to “prepare the Iandlines”, no need to exchange and agree upon communication protocols and certificates

• The PEPPOL eDelivery transport enables true B2B self-onboarding

PEPPOL eDelivery transport vs traditional B2B connection

vs


Experiences from the implementation

•  Identify what business requirements you really need, not what you used to have in the past

• Look for potential for automation and make it a requirement

• Start using the basic transactions in EHF/PEPPOL like invoice and purchase order, learn and evolve

• Self-onboarding is just so much better than anything else you have seen in the ecommerce world

• The first experiences with EHF/PEPPOL were so positive that Statoil has made it as a demand towards suppliers in Norway


Development of EHF/PEPPOL B2B suppliers towards Statoil

0

20

40

60

80

100

120

140

160

Jan-16 Feb-16 Mar-16 Apr-16 May-16 letter sent suppliers

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

EHF/PEPPOL B2B suppliers per month


Number of suppliers sending e-invoice towards Statoil in Norway on different channels

Decision to demand e-invoicing in Norway have been a success

0

200

400

600

800

1000

1200

1400

Jan '15

Jul '15

Jan '16

Jul '16

Jan '17

xCBL e2b EHF / PEPPOL


Statoil is experiencing better than expected growth of B2B enabled suppliers due to utilization of EHF/PEPPOL

•  In February 2017 Statoil passed 1300 active suppliers on the EHF/PEPPOL B2B solution and is still growing

• Statoil is on track to achieve over 1500 active suppliers in total within May 2017, 12 months after sending letters to Norwegian suppliers demanding utilization of EHF/PEPPOL

• Even before Statoil actively promoted use of EHF/PEPPOL there was a steady growth of suppliers that self-onboarded wanting to utilize their EHF/PEPPOL capabilities

• The technical supplier enablement team has supported approx. 5% of the suppliers with significantly less efforts needed for follow up compared to previous solutions


Statoil’s B2B enabled EHF/PEPPOL supplier profiles

• Medium to small sized companies that already have an ERP/Sales system with off-the-shelf built in capabilities for EHF/PEPPOL

• Large to medium sized companies that are using Microsoft Dynamix ERP system with EHF/PEPPOL plug-in

• Other large to medium sized companies that have seen the market possibilities and added EHF/PEPPOL capabilities to their existing SAP, Oracle or other ERP system

• Observation: compared to any other B2B solution or network there is no need to differentiate between high and low volume on spend and transactions


Future plans regarding P2P and use of networks for other messages

• Statoil will continue to maximize the utilization of the EHF/PEPPOL solution with more business transaction types, more automation by consuming the information and active participation in the future development of the EHF/PEPPOL standards

• Current business transactions in production are Order, Order Response, Invoice, Credit Note and Invoice Message Level Response

•  In a short timeframe Statoil plan to implement Despatch Advice

• Statoil also see a potential to use the new Order Agreement message for variation orders and service entry proposals or enrichment of limit PO’s

• Statoil will push for the implementation of a standard for Order Change through active participation in OpenPEPPOL


Other networks

• Statoil will be open for other solutions and their capabilities in the future

• One size doesn’t fit all…. Changes in the market, standards, network coverage and regulatory requirements might bring new opportunities

• As a long time SAP consumer solutions from SAP, like Ariba, will always be something Statoil will consider how we can benefit

• We always strive to maximize the potential of what we already got and know is working


E-commerce transactions for Statoil via EHF/PEPPOL today

SAP ERP

Supplier

ERP/sales system

Electronic transactions via eDelivery

Invoice/ Credit note.

Order

Order response

Invoice response

(MLR)

Despatch Advice

Valid for Statoil now

Valid for Statoil during 2017


Future state e-commerce transactions for Statoil via EHF/PEPPOL

SAP ERP

Supplier

ERP/sales system

Electronic transactions via eDelivery

Invoice/ Credit note.

Order

Purchase Order

response

Despatch Advice

Order Agreem

ent

Valid for Statoil now

Valid for Statoil during 2017

Statoil to consider later

Statoil to propose new standards

Order change

*Order agreement for VOR, SES proposal etc

Catalogue

Invoice response

(BLR)

Invoice response

(MLR)


Benefits with EHF/PEPPOL

• Solution prepared by the public authorities in Europe, which have taken the initial cost of development of standards and transport infrastructure

• The true gem is the PEPPOL eDelivery infrastructure that make it quick and easy to implement – a single B2B connection for multipurpose usage

• Multiple access point providers and inexpensive to swap access point provider on a short notice

• New formats and message transactions are actively added to support even more business scenarios


Summary

•  If you really understand the beauty of the PEPPOL eDelivery network, self-onboarding and pre-validation of an evergreen format, I believe you will experience how easy B2B interaction can be. Not without challenges, but with so much more opportunities than any other alternatives. And the best is that this can be win-win opportunity for both buyer and supplier


This presentation, including the contents and arrangement of the contents of each individual page or the collection of the pages, are owned by Statoil. Copyright to all material including, but not limited to, written material, photographs, drawings, images, tables and data remains the property of Statoil. All rights reserved. Any other kind of use, reproduction, translation, adaption, arrangement, any other alteration, distribution or storage of this presentation, in whole or in part, without the prior written permission of Statoil is prohibited. The information contained in this presentation may not be accurate, up to date or applicable to the circumstances of any particular case, despite our efforts. Statoil cannot accept any liability for any inaccuracies or omissions.

EHF/PEPPOL for B2B e-commerce

Arne Johan Larsen Statoil GBS IT, E-commerce & Supplier Integration Services team www.statoil.com

© Statoil ASA


How to start sending EHF/PEPPOL?

• Make sure to enable support for EHF/PEPPOL – some got it already in their ERP/Sales system without knowing

• Create an agreement with an Access Point and report to the central address register which message types the company will support

• Companies can search other companies in the central register and start to send messages; «self-onboarding»

• Statoil already got over 1300 suppliers (Mar 2017) which sends invoices via EHF /PEPPOL – most of them self on-boarded during since summer 2016. In Norway these 1300 plus over 70 000 other companies are already using EHF/PEPPOL


Technical set-up in Statoil; e-commerce via EHF/PEPPOL

SAP ERP

Microsoft BizTalk

IDOC EHF XML

Statoil on-premise

PEPPOL eDelivery

Supplier ERP

Suppliers Access Point

Statoil’s Access Point


•  EHF – Elektronisk Handelsformat (Electronic Commerce Format) •  PEPPOL – Pan-European Public Procurement Online •  BIS – Business Interoperability Specifications •  UBL- Universal Business Language, a royalty-free library of standard electronic XML business documents •  CEN – European Committee for Standardization •  BII – Business Interoperability Interfaces •  Explanations: •  EHF: a customization of the CEN BII information models by using the PEPPOL eDelivery transport infrastructure and BIS format

extensions incorporating Norwegian regulatory requirements for accounting and validation. EHF is based upon PEPPOL BIS which is based upon the UBL XML standards

•  PEPPOL BIS: the international standard for business documents based upon the work carried out in CEN-BII •  PEPPOL eDelivery: A standards-based IT transport infrastructure that provides services for eProcurement with standardised electronic

document formats based on UBL and CEN BII such as PEPPOL BIS and EHF documents •  CEN-BII: a public procurement imitative in Europe to help achieve a Digital Single Market by fostering implementation of e-procurement

and e-invoicing. CEN BII relies on actual XML Schemas for electronic documents published by international standard development organizations such as UN/CEFACT or UBL

•  OpenPEPPOL: The OpenPEPPOL Association was established on 1st September 2012 after successful completion of the PEPPOL project which saw PEPPOL specifications being implemented in several European countries solving interoperability issues for electronic procurement. OpenPEPPOL is a non-profit international association and consists of both public sector and private members. The association has assumed full responsibility for the development and maintenance of the PEPPOL specifications, building blocks and its services and implementation across Europe

Misc abbreviations and explanations

EHF/PEPPOL for B2B e-commerce - ADFAHRER · PEPPOL • Even before Statoil actively promoted use of...

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