SAP Ariba P&I Update and Here and Here - T\|A\|C Events€¦ · Multiple solutions and buying...

$: SAP Ariba P&I Update and Here and Here - T\|A\|C Events€¦ · Multiple solutions and buying process can covered (e.g. Marketing, SAP Fieldglass, SAP Concur etc.) Free Forms to configure$
Florian Seebauer, Senior Director for Solutions for Direct Spend

October 2018

Achieving an Intelligent Enterprise with Procurement: SAP S/4HANA and SAP Ariba Solutions

2© 2018 SAP SE or an SAP affiliate company. All rights reserved |

PublicPUBLIC

The information in this presentation is confidential and proprietary to SAP SE or an SAP affiliate company and may not be

disclosed without the permission of SAP SE or the respective SAP affiliate company. This presentation is not subject to your

license agreement or any other service or subscription agreement with SAP SE or its affiliated companies. SAP SE and its

affiliated companies have no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and

SAP SE or an SAP affiliate company’s strategy and possible future developments, products and or platforms directions and

functionality are all subject to change and may be changed by SAP SE and its affiliated companies at any time for any

reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any

material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including

but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This

document is for informational purposes and may not be incorporated into a contract. SAP SE and its affiliated companies

assume no responsibility for errors or omissions in this document, except if such damages were caused by SAP SE or an

SAP affiliate company’s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which

speak only as of their dates, and they should not be relied upon in making purchasing decisions.

LEGAL DISCLAIMER


PublicPUBLIC

Digital Disruption is here

96% are influenced by social

media and reviews before buying

Sophisticated customers expect

100% service experience

83% of companies use public cloud,

51% workload through cloud today

Data Explosion: 90% of data

generated in last 2 years

50.3% of commerce transactions

through mobileAnd many Supply Chain and

Procurement technologies today?


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“For every graduate with supply chain skills there

are six holes to be filled, and it could be as high

as nine to one in the future. 25 to 33 percent of

the current supply chain workforce is at or beyond

retirement age”

--Jake Barr, CEO of BlueWorld SCM Consulting

By 2020, 50% of the workforce will be Millennials

54% believe that only companies that

prioritize innovation can succeed

A new generation of users, customers, buyers and suppliers


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Today It’s Time To Purchase

Guided Buying

▪ One central “landing page” to cover all

buying channels

▪ Multiple solutions and buying process

can covered

(e.g. Marketing, SAP Fieldglass, SAP

Concur etc.)

▪ Free Forms to configure specific

requests

▪ Business Rules for compliance in

requisitioning

▪ Common Design Principles

▪ Collaboration and information sharing

with procurement and colleagues

https://www.youtube.com/watch?v=0iR9JQV0cwo

https://www.youtube.com/watch?v=giH2RFVM6Tw

https://www.youtube.com/watch?v=0iR9JQV0cwo

https://www.youtube.com/watch?v=giH2RFVM6Tw


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Buyer

Supp

liers

Fulfill SettleMarket

Buyer management

Procure SettleSource

Supplier management

Ariba Network

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Spen

d c

ate

gori

es

Direct

Indirect and MRO

Contingent labor

Travel

Integration to SAP and non-SAP solutions, secure, open platform

SAP Ariba solutions in the context of

the Intelligent Enterprise


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Intelligent Procurement with SAP Ariba and SAP S/4HANA

Digital core in

SAP S/4HANA

Procurement

transformation

with

SAP S/4HANA &

SAP Ariba

Ariba Network

for all supplier

collaboration

Out-of-box

integration for

seamless user

experience and

data flows

One procurement

product strategy


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Source & Contract Buy & Make Invoice & Pay

ContractSourcePlan MakeOrderRequest ManageReceive Pay

Plan

CommitForecast

Add Suppliers to the Digital Transformation Program

Supply Chain CollaborationSourcing for

Direct Spend

SAP S/4HANA, Leonardo

SAP IBP


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Overview of SAP Ariba Strategic Sourcing Suite (PI)

Total Landed

Cost

calculation

Standard

SAP ERP /

S/4

Integration

Supplier qualification and segmentation

SAP Ariba Supplier

Lifecycle and PerformanceSAP Ariba ContractsSAP Ariba Sourcing

User experience + SAP Cloud Platform + integration of SAP ERP and non-SAP

A new layer of innovations to support directs sourcing

Large Line

Item Events

Advanced

Pricing

Conditions

(Index)

Supplier

performance

automation

Advanced

optimization

& what if

analysis?

Service &

Service

Master

support

Bonus &

Penalty

Material

Master

support


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Legend: Potential starting points of the process are indicated with the following symbol:

SAP Ariba

Contracts

Ariba Network

Supplier /USE

SAP Ariba

Sourcing

SAP ERP

SAP S/4HANA

SAP ERP – SAP Ariba Strategic Sourcing Suite Integration flow

Sourcing

request

RFX

auction

Sourcing

project

RFQPROperational

contract

Purchase

order

Supplier

response

Award

Contract

workspace

PIR

Price

acceptance


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Supplier-managed information

SAP Ariba Supplier Management Architecture

Common supplier record

Other

ERPs

MDG-S

Other DWs

SQL and

NoSQL DBs

SAP Business

Suite and

other ERPs

Two-way sync

Syn

c b

usin

ess p

roce

ss

Syn

c b

usin

ess p

roce

ss

Supplier Lifecycle and Performance

Vendor

model

Qualification

matrix

Segmentation

matrix

Spend

matrix

SAP Ariba Source-to-Settle application suite

OnboardingDue Diligence &

QualificationSegmentation

Performance

management

Development

& phase-out

News

sources

Government

sources

Ratings

sources

Financial

sources

External data sources

Supplier Risk

Segmentation

by RiskPreliminary

Due DiligenceRisk

Remediation

Ongoing

Monitoring

Engagement

Risk

Assessments


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Product capabilities Key benefits

Vendor model alignment with ERP:

In the SAP Ariba supplier management

system we are aligning the object

model to have all details of the ERP.

Some of the high level data are:

– Vendor general data

– Vendor purchasing data

– Vendor company code data

– Vendor bank details

– Vendor partner functions

– Vendor hierarchy

– Vendor dunning data

– Vendor attachments

Support vendor master in the cloud as an extension to the ERP

Easier integration within SAP Ariba solutions and with SAP ERP

Vendor model

Correspondence


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Registration, Qualification and SegmentationUnified vendor master, combined with lifecycle management, using smart matrix-based filtering

Qualification

Statusfor category/region/

business unit

Segmentation

(Preferred)

Qualification

(Validation)RegistrationRequest/Creation

Qualification

Questionnairesfor category/region/

business unit

Streamlined

processes

Preference

Statusfor category/region/

business unit

Preliminary

Due DiligenceRisk insight

Ariba Vendor Master: High Fidelity Data Model

ERP Vendor Master

Granular

Segmentation

IMPACT

Matrix filters

Approverfor category/region/

business unit

Process

Management

Status

Management

Content

Management


business unit


business unit


business unit

Registration

Status

Category

Region

Business unit


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Our vision for our direct, indirect and

packaging procurement transformation

is really to be the game changer for

BASF: to leverage our scale and

digitalize with new technologies.

Dr. Matthias Dohrn, Vice President Procurement Controlling & Governance, BASF

BASF’s strategic procurement transformation

Structuring and optimizing spend across worldwide sites

Qualifying suppliers by plant and enforcing qualification in sourcing processes

Focusing efforts around high-value categories


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SAP Ariba innovation priorities

Persona-baseduser experience

1

Deeper supplier engagement

2

Data-drivensmarter decisions

3


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SAP Ariba — Persona-based User Experience

SOURCE PLAN PROCURE PAY

User

Guided Buying

Shared Service

Agent

Procurement Desk

Category

Buyer

Cate

gory

Experience

Supplier

Supp

lier

Experience


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Source & Contract Buy & Make Invoice & Pay

ContractSourcePlan MakeOrderRequest ManageReceive Pay

Plan

CommitForecast

Add Suppliers to the Digital Transformation Program

Supply Chain CollaborationSourcing for

Direct Spend

SAP S/4HANA, Leonardo

SAP IBP


PublicPUBLIC

SAP Ariba Supply Chain Collaboration Brings real time visibility and efficiency for manufacturing supply chains

Your trading partnersYour company

Raw material suppliers

Component suppliers

Subassembly suppliers

Contract manufacturers

3PL/Distribution

centers

buyer supplier

High-Tech manufacturer

IM&C manufacturer

Consumer manufacturer

Life sciences manufacturer

▪ Collaboration simplicity with a single business network

▪ Embedded supplier onboarding services

▪ End-to-end process orchestration across all supplier channels to validate and enforce

compliance

▪ Network intelligence, data, and insights to reduce supply chain risk

S/4HANA

/ECC

IBP

Any Channel

X12

EDIFACT

OAGIS

GUSI

EANCOM

PIDX

xCBL

cXML

Any Backend

PORTAL

Email


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SAP Ariba Supply Chain Collaboration Business Process Coverage

Forecast Collaboration

Supplier Managed Inventory

PLAN

INVOICE &

PAYMENT

BUY & MAKE

PO Collaboration (all PO types)

Vendor Consignment

Subcontract/ Contract

Manufacturing w/ Multi-tier orders

Share forecast

Scheduling Agreement Release

Quality Notifications

Quality Inspections

Quality Reviews

SUPPLIERBUYER

Forecast commit

Share demand, inventory and min/max levels Provide & execute against shipment plan via scheduling agreement

Place, inquire and receive orderConfirm order and provide advanced shipment notification

Report consumption of consigned stock

Provide rolling delivery schedule w/ different

firming levels

Execute against firmed orders

(released)

Place order with components

Provide notification of components’ shipment

Provide component inventory & order visibility

Notify buyer of components’ receipt

Provide component consumption

Communicate & respond to quality notification

Request test results, COC, COA

Collaborate and share quality documents

Self-Billing/ ERS InvoicingProvide self-bill/ ERS invoice based on GR

Provide payment notification

Vendor Invoice ProcessingProvide invoice processing status & payment notification Provide invoice based on PO/ ASN

Return Order Collaboration Place return order & provide return ship notice Provide credit memo

Request & respond to quality notification

Submit test results, COC, COA

Collaborate and share quality documents

External Manufacturing Visibility Provide Manufacturing and Inventory Status

Thank you

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companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are

set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release

any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,

and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The

information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various

risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)

in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.

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