How SAP ARIBA is Empowering Purchasing · Procurement compliance & collaboration Order management Collaboration for buyers, business users, partners from anywhere and any device ®

Luís Matos

Senior Procurement Solution Advisor | EMEA South

How SAP ARIBA is Empowering PurchasingConferência APCADEC: "O estado do Procurement em Portugal"

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

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• Leaders are Emerging from Nowhere90% of CEOs believe the digital economy will impact their industry, but less than 15% are executing on a digital strategy *

• Early Adopters are WinningEarly adopters are achieving +9% revenue creation, +26% impact to profitability, and +12% market valuation.*

• Industry Boundaries are BlurringEvery company is expanding beyond traditional industry boundaries and also becoming a technology company

Source: * MIT Sloan and CapGemini, 2013,

Digital business models are disruptive. The rules have changed.

Siemens is not just an industrial powerhouse – It is a software company connecting its industrial assets in the cloud and enabling customers to generate new revenue streams by selling services, not products

Uber is not just another taxi company – It is transforming into an “urban logistics” company with 200,000 drivers, roughly double the size of the UPS delivery workforce

Facebook is not just a social network – It is the largest media company, even though it doesn’t create content

Under Armour is not just selling shirts and shoes – It is connecting 38 million people on a digital health platform

Digital Business is Here to StayDisruption and business opportunities are everywhere

In a digital economy, speed and agility matter more than ever.


ADOPTION = Compliant spend + happy users

Procurement compliance & collaboration Order management

Collaboration for buyers, business users, partners from anywhere and any device

Ariba® Supplier mobileAriba® Buyer mobileAriba® Buyer mobileAriba® Buyer mobile

Note: samples from presented videos

Requisition Approval Purchase Order


The Ariba Network is the leading business networkThe proof: Nearly 2.0 million partners use the Ariba Network for one trillion spend

Buyers Suppliers

Ariba

Network 2.0 million trading

partners across all industries

40+ million Purchase Orders

60+ million Invoices

~$1000 billion in spend

190 countries

72 currencies

40 Invoice compliant countries

1 company joins every minute

EDI

Email

HTML

cXML

AS2

Paper

CSV

xCBL

“Other”

An SAP Company


Contingent Labor & Services

28%

Travel & Other Services

11%

Indirect & MRO

23%

Capex

11%

Direct & Supply Chain

27%

After successfully driving indirect spend under management,

procurement leaders are ready to harness direct materials spend

Source: Spend Categories for Global Top 2000


Ariba solution, End-To-End Coverage Across Spend Categories

Buyers Suppliers

EDI

Email

HTML

cXML

AS2

Paper

xCBL

“Other”

An SAP Company

BUY • Supplier Discovery, Strategic Sourcing & Contracting

• Procurement & Order Collaboration, SCM

• Collaborative Invoice to Pay

• Dynamic Discounting, Supply Chain & Receivables Financing

MANAGE

CASH

SELL

Single Supplier Portal

INDIRECT & MRO

DIRECT Sourcing, Supplier Manag,

Subcontract PO, Forecast, inventorySourcing, Supplier Manag., component

consumption, Forecast, replenishment


Supplier ValueBuyer Value

Sourcing

Procurement

Process

AP Process

Compliance

WCM &

Discount

3-9%

Process

Savings

$3-20

Savings/

Document

1-8%

Spend

Savings

Total

Savings

Faster

Payment

AR Process

Processing

Orders

Sales &

Marketing

Increased

Revenue

15-75%

Time

Savings

15-75%

Process

Savings

5-32%

Revenue

Increase

Total

Savings

Source: Ariba customer surveys and interviews

Typical Benefits are Significant Ariba network and source-to-pay solutions to Companies of All Sizes, Industries, Regions

Driving outcomes across your organization and for your suppliers


Network Collaboration – Driving Buyer and Seller ValueCustomer success – Buy side

Up to 60%

Faster sourcing cycles

2 weeks

To realize first year ROi

>30% reduction in

BPO costs

75% reduction in invoice

approval and processing

times

18% savings for categories

managed through SAP Ariba

3,000+ suppliers onboarded

and

7,500+ contracts managed

MAP Deutsche Bank

AmBank Posadas

AIR FRANCE KLM

“No Ariba, no business”

100% Estimated single-year

rise in sourcing events

Auchan

http://www.ariba.com/customers


Spend Visibility

Identify Savings

Opportunities

Increase Spend

Under Mgmt

Sourcing

Process

Reduce Sourcing

Cycle Times

Improve

Compliance

Identify, quantify and prioritize sourcing activities


Spend before and after enrichment out of the box reports

& end user dashboard configuration


Source to Contract

Executive Sourcing Dashboard Ariba Discovery – Ask to market

Easy access to

>2 M global suppliers

Enhanced

Sourcing

Savings

Increased

Sourcing

Throughput

Reduced

Sourcing Cycle

Times

Reduced

Sourcing Cycle

Times

Continuous

Improvement

Project Management


http://iwdfvm4772.wdf.sap.corp:8080/speeddemo/demo/108181/

http://iwdfvm4772.wdf.sap.corp:8080/speeddemo/demo/108181/


Procurement Finance Supply Chain IT Your Suppliers

• Enhanced buying

power

• More time for

strategic activities

• Tighter controls

• Strong audit trail

• Improved WCM

• Reduced risk

• Better visibility &

predictability

• Low maintenance

• Automatic

upgrades

• 99%+ uptime

• Improved visibility

• Reduced costs

• More leads

With Stronger Collaboration Everybody Wins…

Ariba’s on-demand offerings

provide us with market-leading

technology and expert capabilities

that we can access as we need

them to effectively control our

costs, minimize risk and improve

our cash flow and operations.

Luca Guzzabocca, Director of Procurement,

Logistics, HSE and Security

MPS

“

”

The adoption of the Ariba system

has transformed our approach to

the purchase function. This has led

not only to significant dollar savings

but also to a transparent, open

methodology resulting in increased

confidence and deeper

commitment of our vendor base.

.Vishesh Bhatia, Group Director [EET]

Al-Futtaim

“

”

Ariba’s global coverage,

standardized

implementation, and

dedicated supplier

management help us

maximize efficiency and

drive a high degree of

customer satisfaction.

.Petra Burssens,

Head of Global eProcurement

EMD Millipore

“

”


Value Proposition

of SAP ARIBA for Procurement

• Spend Visibility

• Increased Savings Opportunities

Increased Spend Under Management

• Spend Under Contract

• Reduced spend due to improved Compliance

Increased Contract

Compliance

• Increased Number of Sourcing initiatives

• Sourcing Standardization

Increased Spend with Sourcing

• Spend via Catalog & Approved Vendors

• Content Consolidation

Reduced Maverick Spend

• Increased POs With Compliance

• Improved Early Settlement Discount

Improved Procurement Enforcement

• Coverage per FTE

• Improved Supplier Collaboration

Increased Procurement Productivity

Deliver sustainable cost savings in the procurement process SAP ARIBA enhances the ability to rapidly identify savings opportunities, quickly source the perfect supply base, get the

maximum value in contract negotiations and sustain the generated savings with an automated source-to-pay solution.

Manage more effective relationships with suppliers SAP ARIBA integrates all business partners, allowing organizations to collaborate efficiently with suppliers on product

development, purchase-order management, invoice processing and payment management.


Build your Business Case!!!Benefits Summary

Savings

Impact Area Savings Opportunity

Price

Reduction• Better sourcing: visibility and collaboration

• More sourcing: shorter bid and contracting

• One-off savings from tactical sourcing (3-bids and a buy)

Spend

Compliance• Ensuring purchases and invoices are based of negotiated contract

pricing & terms

• Expanded usage of catalog content

• Reduction of over payment errors, tighter AP tolerances

Productivity

Improvement• Reducing lost purchase orders and time spent expediting

• Streamlining & automating processes

• Reduction of exceptions

• Reduced costs: people, legacy technology, paper, checks, & postage

• Reduction of supplier management, maintenance and payment status

inquires

Cash

Management • Optimization of early payment discounts

• Improve working capital via DPO extension and inventory reduction

• Pay electronically to further extend payment window

Compliance

$2.88 M

Price Reduction

$1.92 M

Process Improvement

$0.48 M

$6 M

2.3% Savings on

Addressable

Spend

Enterprise-level value opportunities created

through greater alignment of P2P are estimated

to be around 4.8% of addressable spend

The Hackett Group

Cash Management

$0.72 M

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Customerhttp://www.aribalive.com/2016/madrid

http://www.aribalive.com/2016/madrid




http://www.ariba.com/


Conferência APCADEC: "O estado do Procurement em Portugal"

How SAP ARIBA is Empowering Purchasing

Luís Matos

Senior Procurement Solution Advisor | EMEA South

E [email protected]

T +3531214465500

Thank you!

www.ariba.com

Go global with the world’s largest business network!

www.ariba.com



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

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How SAP ARIBA is Empowering Purchasing · Procurement compliance & collaboration Order management Collaboration for buyers, business users, partners from anywhere and any device ®