Short Presentation Title - sap-sbn.no · •Lead time •Higher Service ... SAP Ariba Sourcing SAP...

SAP AribaMay 9th, 2017

Alex Tesdorf - Director, Network Value Organisation Nordics

Einar Magelssen – Senior Solutions Advisor, Nordics

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

Agenda

1. What is SAP Ariba?

2. Value Drivers

3. SAP Procurement Roadmap

4. Ariba and PEPPOL/EHS

5. Reference Cases/Customers


What is SAP Ariba?SAP Ariba is an application portfolio for End-to-end business commerce

SUPPLIERS | MARKET TO SETTLE

Ariba Network

Operational

Procurement

Supply

Chain

Financial

Supply Chain

Supplier

Management

Strategic

Sourcing

BUYERS | SOURCE TO SETTLE

Selling Fulfillment


Order*

Discount Proposal

Invoice Status

Remittance Advice

Payment

Spot RFQ

Order Status Request

Service Entry Response

Scheduling Agreement

Release

Forecast

Delivery Instruction

Inventory Status

EDI

Email

Web UI

cXML

Paper

Smart

PDF

CSV

xCBL

Self- Billing

Subcontract PO

Outbound Delivery

What is SAP Ariba?SAP Ariba extends SAP ERP for Digital Supplier Collaboration

Order Confirmation

Catalog

Shipment Notice*

Invoice*/Payment Status

Discount Acceptance

Spot Quote

Order Status Response

Service Entry Sheet

Supply Chain Invoice

Subcon. PO Consumption

Proof of Delivery

Component Consumption

Forecast Response

Inventory Status

Replenishment Order

“Other”

Quality Notification Quality Notification

Response

Buyer Supplier


What is SAP Ariba?SAP Ariba is more than Indirect Procurement

Buyer-to-Supplier Digital Collaboration through single interface, integrated to the ERP Backend.

Customer

RevenueAcceleration

Inventory

Collaborative Sourcing

RFx, BOM’s, Compliance, Contracts, Pricing

$

Collaborative Planning

Forecast, Sched. Agreement., Inventory, Mfg. Visibility

Collaborative Execution

PO’s, Changes, Confirmations, ASN, Returns

Collaborative Finance

Invoices,, Status, SC Finance, Payments

Ariba Business Network$1,3Tn Spend

2,7M Trading Partners

Operating Expense

Expectations ↑ Digital Experience Faster Innovation Perfect Order Full Transparency

Global

Complex

Responsive

Efficient

Contract Manufacturers

Direct Suppliers

Distribution Partners

3PL’s

Indirect Suppliers

IOT

Extended Supply Chain

S4Hana / ECC / any ERP

Demand

Supply

Control

IBP

Value

• Price control• Regulatory compliance • Faster time-to-market

• Inventory • Assurance of Supply• Lead time

• Higher Service Levels• Expedites • Manual Overhead

• Dynamic discounting• Free Cash • Exceptions


Ariba NetworkInvoice Matching on the Network through configurable Business Rules

Suppliers

AS2

EDI

HTML

Paper

cXML

Email

CSV

Post

Supplier Name

/ ID

Bill To / Ship

To

VAT / GST

ID’s

Invoice Number

Non-PO

Contact

PO

Number

Remit

Access

Currency

Price

Variance

Unit Of

Measure

PO Line

Reference

Receipt

Consumption

Variance

Total

Amount

Sub Total

Amount

Contract

Compliance

Tax Code

Compliance

Line & Header

Tax

Invoice

Exception

Exception

Exception

Exception

Customers achieve up to 98% Auto-posted invoices

F I


Ariba Network – 2016 in numbers


• Full Spend and Contract Visibility

• Increased Automation

• Best Practice Workflow

• Continuous Performance Tracking

Current Future

Strategic

Sourcing

Lowest Bidder Total Value Delivered

Hunting Down Contract

Information

Contract Lifecycle

Management

Data Collection &

Cleansing

Opportunity Identification,

Leveraging Highly Automated

Spend Analytics

Manual Supplier

Management Admin.

Supplier Performance & Supply

Risk Management

Operational

Procurement

Manual Approval-to-Pay Automated Approval-to-Buy

Manual Order TrackingManage Order Exceptions,

Highly Visible Order Status

Paper-Based Invoicing,

Disconnected

Electronic & Continuous

Invoicing

Pay Upon Receipt

Electronic Payment & Optimize

Working Capital

Qualify

Discover

Analyze/

Strategize

Contract

Source

Requisition

Approve

Assign

Invoice

Negotiate

Order

Receive

Award

Source

to Pay

Pay

Value DriversFuture Operating Model – Capability Shift


Value DriversSAP Ariba Value Lever Framework

Value Levers Savings Levers Key Metrics

Price

Reduction

Spend

Compliance

Process

Efficiency

Cash

Management

User Compliance

Supplier Compliance

Accounts Payable Error Reduction

Purchase Order Processing

Invoice Receipt and Processing

Vendor Master Data Management

Discount Capture – On Pre-Negotiated Discounts

Discount Capture – Net New Discounts

Days Payable Outstanding (DPO) Extension

Sourcing Savings – Unit Price Reduction

Sourcing Savings – Increased Spend Capture

Tactical Sourcing Savings

Continuous Improvement

Average Annual Sourcing

Savings

% of Spend Under

Management

POs & Invoices per FTE

% Spend Under Discount


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

75% of addressable

spend managed

strategically(2)

10,000POs 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) Industry specific; Ariba Benchmarking & Best Practices Program


Business Process Key Capabilities Solutions Value Drivers

Supplier Info &

Performance

• Data integration

• Data enrichment and classification

• Powerful, actionable, and easy to use

• Ariba Spend Visibility • Process efficiency

• Visibility improvement

Sourcing and

Contract

Management

• Collaborative project management

• Document management and knowledge

repository

• Contract authoring, workflow, and negotiation

• Ariba Contracts

• Ariba Sourcing

• Ariba Supplier Lifecycle

Performance (SLP)

• Better unit price reduction

• Contract cycle time

reduction

Procurement

• Consumer-like buying experience

• Rapid enablement of supplier catalogues

• Advanced contract compliance

• Travel and Expense with mobile access

• Ariba Buying

• Ariba Network

• Tactical sourcing

• User compliance

improvement

Supplier

Collaboration

• Collaborative requisitioning

• Spot quoting through supplier network

• Access to online marketplace

• Invoice/service entry against contracts

• Supplier and category-specific rate sheets

• Ariba Network

• Ariba Buying / APC

• Ariba Supply Chain Collaboration

• Collaborative sourcing

• User and supplier

compliance improvement

• Inventory carrying cost

reduction

Invoice

Management

• Supplier self-service portal to receive invoices in

any format

• Upfront matching prior to post

• Real-time communication of errors

• Business rules that capture errors and exceptions

• Ariba Buying and Invoicing

• Ariba Network

• Invoice Conversion Services

• A/P process efficiency

• Supplier compliance

improvement

Working Capital

Management

• Dynamic discounting

• Sliding scale – prorated discounts

• Standing discount expansion coupled with

payment term extension

• Ariba Payables

• Ariba Network

• Early pay discount capture

• Days payable

outstanding extension

Value DriversCapability, Solutions and Value Impacts


Value DriversSupplier Collaboration Options

Ariba Network

Helpdesk & Support

M2M integration

Mobile Portal

Full CSC transaction

set

Innovations like

AribaPay

…

SLP, Sourcing, Discovery,

Spot Quote

Interactive email

Light Account

Free, simple

Upgrade by Choice

FULL USE ACCOUNTS

INTEGRATED AND PORTALLIGHT ACCOUNT

$

A B C500 Suppliers

1500Suppliers 5000 Suppliers

No compulsion

Buyer

Eliminatefriction

Full Ariba Network

functionality

• Catalogs

• Reports

Interactive email

All basic fulfillment

transactions +

€$ ¥Crucial for business case

LIGHT ACCOUNT

FULL-USE ACCOUNT


SAP Digital Procurement Overview: 15 End-to-End Processes


Sourcing pipeline

Category management

Savings tracking

Bidding (RFI, RFQ, RFP)

Auctions

Category best practices

Contract authoring

Workflow approval

Contract repository

Catalog

SAP Ariba Sourcing SAP Ariba Sourcing SAP Ariba Contracts

SAP Ariba Catalog

Project/Category Management

Sourcing ContractContract

MonitoringOperational

Contract

SAP S/4HANA SAP S/4HANA

Contract Release

Contract Update

Contract Distribution

Contract Consumption

Value Drivers

Price reduction Contract compliance Supplier consolidation Integration to contract terms and pricing

Strategic Sourcing - Flow


1 Place to go

Consumer-grade user

Policy & price compliance

Managed content

Spot buy marketplace

Contract Compliance

PO execution

Inventory reservation

Inventory transfer

POC, POA, ASN, SES

Smart invoice

Payment status

Goods receipt

Invoice receipt

Invoice workflow

Guided Buying CatalogSupplier

CollaborationGoods Receipt Invoice Receipt

Purchase Order or reservation

SAP Ariba Buying SAP Ariba Catalog Ariba NetworkSAP S/4HANA /SAP Ariba Buying

Value Drivers

Simplicity/End user adoption Contract compliance Policy enforcement Process efficiency Supplier compliance

SAP S/4HANA /SAP Ariba Buying

Procurement of Indirect, MRO, and Services


Plant Maintenance/Project System

Managed CatalogSupplier

CollaborationGoods Receipt Invoice Receipt

Purchase Order or Reservation

SAP Ariba Catalog Ariba NetworkSAP S/4HANA

Value Drivers

Increased asset parts ordering and uptime Simplicity for maintenance operations Contract compliance Lower inventory Process efficiency Supplier compliance

SAP S/4HANASAP S/4HANA

Workorder/ Project

Component planning

Materials & Services

Supplier managed content

Contracted prices

Spot buy marketplace

PO execution

Inventory reservation

Inventory transfer

POC, POA, ASN, SES

Smart invoice

Payment status

Goods receipt

Invoice receipt

Invoice workflow

Workorder and Project-driven Procurement


MRP run

Supply plan

Min/max replenishment

MRP generates req’s

Schedule lines

Scheduling agreement

Auto source of supply

Source lists

Quota arrangements

Purchase order creation

Price compliance to

Outline Agreements / PIRs

Schedules, POC, POA, ASN

Consignment, Contract Mfg

Smart invoicing

MRP RequisitionSource

DeterminationSupplier

CollaborationPurchase Order

Ariba NetworkSAP S/4HANA

Value Drivers

Plan-driven process automation Lower inventory Compliance Lower expediting Invoice accuracy

SAP S/4HANASAP S/4HANASAP S/4HANA

Plan-driven Procurement of Direct & MRO


Asset-driven Procurement

Asset sensor drivenReplenishment

Order for Approval/ Release

Supplier Collaboration

Core Processing

SAP Cloud Platform SAP Ariba Buying Ariba Network SAP S/4 HANA


Native integration

Cloud integration

SAP Ariba solutions and the SAP customer baseCommon hybrid scenarios to consider

Ari

ba

Ne

two

rk

Clo

ud

so

luti

on

s

On

-pre

mis

e

so

luti

on

s

Hybrid procurement

with Ariba Network

Ariba Spend VisibilityAriba Sourcing

Ariba Contract ManagementAriba Supplier Information and

Performance Management

SAP S/4HANA

or SAP ECC

PO/invoice automation Catalog content

Dynamic discountingCollaborative supply chain

Full cloud procurement

with Ariba Network

SAP S/4HANA

or SAP ECC



Ariba Spend VisibilityAriba Sourcing

Ariba Contract ManagementAriba Supplier Information and

Performance ManagementAriba Procure-to-Pay

On-premise procurement

with Ariba Network

SAP S/4HANA

or SAP ECC

SAP SRM




Direct Material Sourcing

Direct Material Sourcing has support for the following innovations

• Large line item events enabling:

• reduction of time/cost by elimination of the need for splitting up large number of items into multiple events

• Improved sourcing results due to running larger sourcing events, bundling and awarding across a single tender and enhanced visibility by avoiding splitting into many small tenders

• Support for bonus/penalty on supplier/line item level enabling:

• technical evaluators/graders to provide bonus/penalty feedback which can impact the commercial supplier response

• cost evaluation beyond the price information provided by the supplier

• collaboration between multiple evaluators/graders

• Material Master Search

The above features are provided over and above the existing functionality that supports sourcing such as:

• Modern dashboards

• Powerful universal search

• Sourcing Program & Category management which enables:

• sourcing project management with the ability to embed best practice sourcing processes, including collaboration with suppliers

• RFX and Auction Management with:

• Electronic, template-based event support for RFI, RFP and RFQ

• Comprehensive automated and team scoring features, comparison reporting

• Decision Support and Optimization

• Savings pipeline and tracking


SAP AribaRecent Innovations


Digital Futures with SAP AribaContinuous Innovation via Build/Buy/Partner Execution

BlockchainAI

IoTMachine Learning

Offerings Proactively

Assist with Business

Processes and

Decisions

Why it Matters

• Continue to serve our market, expand into new markets and keep customers/prospects successful

• Expand Customer Value by bringing the future of digital commerce forward to today

• Enhance Our Portfolio and Capability Globally by embedding these technologies where appropriate

Offerings Learn and

Act in Context of

Customers’

Business

Internet Aware

Devices and Goods

Trigger Processes

and Increase

Visibility of Business

Innovation

Expansion with

Inclusion of Trust

Protocol

Digital Core


2017 SAP Ariba Application Suite Roadmap Priorities


Ariba and PEPPOL/EHS: Cloud Integration Gateway

SAP Ariba is supporting and addressing interoperability in 3 ways

1. By Q3 a partnership with a Nordic operator will be announced enabling SAP Ariba to handle all Nordic formats

2. By Q2 Ariba Network will be able to process machine readble PDF invoices

3. The Cloud Integration Gateway is already available to suppliers to simplify integration to the Ariba Network providing

1. More industry & regional standard: D96A, D01B, PIDX, etc.

2. More connectivity protocols than HTTPS: AS2 for all formats, VAN is coming in 2017

3. Test Central - This potentially means any seller can integrate any relationship – without buyer approval since not needed for full E2E testing


5

SAP Ariba Standard integrations – 158

29

MasterAccount categories

Assets

Company codes

Cost centers

Cost center languages

ERP commodity codes

General ledger

Internal orders

Plant

Payment terms

Purchase groups

Tax codes

WBS elements

User data

User group mapping

Remittance locations

Supplier data

Supplier location

Contracts

FM derive

Material PO

Service PO

Change PO

Cancel PO

Close PO

Goods receipt

Service entry sheet

Invoices (OK-to-pay)

Advance payment requests

Advance payments

Cancel advance payment

Requisition

Change requisition

Budget check

SES response

Purchasing organization

Purchasing groups

Company code

Payment terms

Supplier (inbound)14Master

Quote request

Quote messageMaterial master/plant

Manufacturer part number

Purchase info record

Material groups (product categories)

22Transaction

Transaction

SA

P A

rib

a a

pp

licati

on

s Supplier (outbound)

Plants

Incoterms

Bill of material

Material master

Company code internal order mapping

Company code WBS element mapping

Purchasing organization supplier combo

Account category field status

Plant to purchasing organization

Currency conversion rates

Fund management objects

Purchasing organizations

General ledger languages

Expense report

PO status

Change PO status

Receipt status

Invoice status

Remittances

Catalog

Pro

cu

rem

en

tS

ou

rcin

g Sourcing award to PO

Contract workspace

Sourcing award to outline agreement

107 = SAP ERP and SAP S/4HANA

51 = Other formats – Network sell side

70

Ari

ba

Ne

two

rk 28

Buy side

Order

Change order

Cancel order

9Sell side

Buy side

Order confirmation

Invoice

Shipment notification

Remittance advice

Delivery schedule (forecast)

Delivery schedule (JIT)

51

Sell side

88

810

830 (Forecast)

830 (Commit)

846

850

855

856

860

861

862

866

866 (MO/PO)

997

820

ORDERS

ORDCHG

ORDRSP

INVOIC

DESADV

CONTRL

RECADV

REMADV

INVRPT

DELFOR

DELJIT

INVOIC

ProcessPurchaseOrder

AcknowledgePurchaseOrder

NotifyShipment

ProcessReceiveDelivery

NotifyPlanningSchedule

NotifyPlanningSchedule

NotifyInventoryConsumption

NotifyProductionOrder

NotifyInventoryBalance

ConfirmBOD

X12 v4010 EDIFACT D96A OAGiS v9.2

EDIFACT D01B

Order

ChangeOrder

OrderResponse

Invoice

InvoiceResponse

PiDX v1.61

Order

ChangeOrder

InvoiceResponse

GoodsReceiptNotice

ServiceEntrySheetResponse

OrderResponse

Invoice

AdvanceShipNotice

ServiceEntrySheet

RemittanceAdvice

xCBL v3.0

Buy side

Standard PO

Subcontract PO

Consignment PO

Change PO

Cancel PO

Order Enquiry request

Order Confirmation

Inbound Ship Notice

Outbound ASN

Component consumption

Outbound payment remittance

Inbound remittance advice

Remittance Cancellation

Inbound Payment proposal

Outbound Payment proposal

Scheduling Agreement (incl. Forecast/

Delivery Schedule and JIT)

Product Replenishment

Transfer movement / product activity

Inbound Receipt

Outbound Receipt

Service Entry Sheet

Service Entry Status update

Invoice (incl. Credit Memo)

Invoice status

Carbon copy (CC) invoice

Quote request

Quote message

Payment instruction file


SAP Ariba Nordic Customers


CompanyAtos SE

Headquarters Bezons, France, andMunich, Germany

IndustryProfessional services –digital services

Products and ServicesConsulting and systems integration services, managed services and business process outsourcing, cloud operations, Big Data and security solutions, and transactional services through Worldline, the European leader in the payments and transactional services industry

Employees

>90,000

Budget

€11 billion

Web Site

atos.net

Objectives

Increase visibility of strategic sourcing and procurement activity across the group

Reduce overhead in the accounts payable function

Improve collaboration with suppliers

Facilitate integration of newly acquired companies

Why SAP® Ariba® solutions

Wide selection of solutions all powered by a single platform

Digital processes to replace ones that were previously paper based

Existing SAP® solutions that can be integrated into the new system

Resolution

Implemented a complete suite of SAP Ariba® solutions for compliance and control

Enabled group-wide insight into sourcing and spend

Reduced manual processing of purchase orders and invoices

Benefits

Greatly improved visibility of group sourcing activity

Standardized and automated procurement processes

Reduced administrative workload by 70% to 80%

€4.7 billionIn spend managed through the SAP ERP application

80%Reduction of paper purchase orders and invoices

>200E-sourcing events executed per year

>80%Of purchase orders to be managed on Ariba Network

900Suppliers onboarded in one year

“We standardized, simplified, and automated our procurement processes and now have

full visibility of our entire system thanks to SAP Ariba solutions.”

Peter Hobday, Deputy Chief Procurement Officer, Atos SE

Reference - Atos: Transforming Sourcing and Collaborative

Commerce with SAP® Ariba® Solutions

http://www.atos.net/


Reference - Groupe Auchan: Gaining Control Over Spend

with the SAP® Ariba® Solutions

Company

Groupe Auchan

Headquarters

Croix, France

Industry

Retail

Products and Services

Discount stores, specialty

electronics, hypermarkets,

supercenters, supermarkets,

superstores, e-banking, and

real estate

Employees

330,700

Revenue

€53.5 billion

Web Site

www.groupe-auchan.com

Objectives

Drive efficiencies by gaining control of indirect spend

Centralize and standardize spend processes across thousands of sites with disparate needs

Improve supplier management and onboarding

Resolution

Deployed the SAP® Ariba® Sourcing, SAP Ariba Supplier Information and Performance Management, and SAP Ariba Buying, advanced edition, solutions to effectively manage all of the indirect spend for all business units

Helped ensure standardized SAP Ariba solutions were used to manage both buyers and sellers throughout the purchasing cycle

Used Ariba Network to better manage Auchan’s global network of 15,000 suppliers

Benefits

Increased savings from standardization and better-quality information for purchasers

Managed all indirect spend effectively

Established a consistent and common approach for all buyers and users

Future plans

• Deploy electronic transactions to suppliers across Ariba Network

• Roll out the SAP Ariba Supplier Information and Performance Management solution to more users

€3 billionAnnual indirect spending

managed by SAP Ariba

solutions

100% Estimated single-year rise

in sourcing events

15,000Suppliers managed

12,000Auchan users of SAP Ariba

solutions globally

3,050 sitesUsing centralized,

standard processes

“SAP Ariba solutions are very complete and handle the entire purchase cycle, allowing us to start an

event with sourcing and end it by receiving the goods, so much so that our mantra is ‘no SAP Ariba, no

business.’ SAP Ariba solutions help us do business the right way.”

Pascal Delval, Chief Purchasing Officer, Groupe Auchan

http://www.groupe-auchan.com/


Reference - KAESER: Delivering Up to 30% Savings and

Retaining Flexibility with SAP® Ariba® Solutions

Company

KAESER KOMPRESSOREN SE

Headquarters

Coburg, Germany

Industry

Industrial machinery and

componentes

Products and Services

Rotary screw compressors,

rotary blowers, air compressors,

equipment treatment, delivery

services

Employees

5,000

Revenue

€500 million

Web Site

www.kaeser.com

Objectives

Create a single platform for all indirect spend

Benefit from groupwide purchasing economies

Improve process efficiencies at the departmental level

Drive compliance and verify that agreed terms and conditions are applied in all order processes

Why SAP® Ariba® Solutions

Existing SAP® ERP application would easily adapt

Wide range of offerings, including the SAP Ariba® Buying, SAP Ariba Contracts, Ariba Supplier Information Management,* and SAP Ariba Sourcing solutions

Resolution

Implemented SAP Ariba Buying for transactional procurement

Created centralized catalogs for all indirect purchasing

Enabled supplier information and contract management

Benefits

Standardized process, allowing for greater purchasing efficiency at the department and enterprise level

Major spend categories consolidated through SAP Ariba solutions, delivering greater management control and reducing maverick purchases

Process compliance verifying that all orders follow preagreed conditions

Easy price comparisons resulting in lower overall costs

30%Reduction in select commodity costs

AllMajor vendors onboarded through the solution

50%Reduction in time spent processing orders

23 millionProducts soon available for purchase

EliminatedManual invoicing errors

50Countries with active sales and service

39752 (16/12) This content is approved by the customer and may not be altered under any circumstances.

“With SAP Ariba solutions we can expand our catalog options. We started with 8 catalogs and within

9 months KAESER KOMPRESSOREN had 50 catalogs with more than 23 million products, which is up

from just a few thousand two years ago.”

Jörg Hülsmann, Head of Strategic Purchasing, KAESER KOMPRESSOREN SE

*No longer available as an individual product, but some features and capabilities may have been rolled into other SAP Ariba offerings.

http://www.kaeser.com/

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