Procurement Excellence

7/23/2019 Procurement Excellence

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Solution Overview

OptimizeProcurementImpact

Procurement

Procurement Excellence

ExecutiveSummary

SAP and AribaSolutions

ReferencesContact Us

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP and AribaInnovations



2 / 29© 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Today’s procurement professionals are bombarded with increasingly complex

challenges. They need to manage global supply risk and protect profitability – despite volatile pricing in many supply markets – and contribute new innovationsto the business. These are just a few examples of the imperatives they face.

Global supply risk – heightened by geopolitical

instability and dramatic natural disasters – isfront and center for many companies; they arenow quickly establishing key processes tomanage this risk and define contingency plans.

Meanwhile, cost savings is still job number one,and it’s getting harder to realize when markets

and pricing swing by large margins as they areaffected by the same global risk factors.

At the same time, procurement is being asked

to align and contribute to corporate initiativessuch as diversity and sustainability, as well asbring innovation from suppliers to new productdevelopment teams.

Most procurement departments have to juggleall of these demands with a limited workforce,making it essential that they find efficient, smartapproaches to manage workloads. This re-quires giving people the right skills, processes,

and technologies to get the job done.

Sustainable Savings and Innovation


Savings and Innovation

SAP and Ariba Innovations

Growth and Profitability


ExecutiveSummary








A best-run procurement department delivers year-over-year cost savings as a corecompetence, while balancing new initiatives that align with the corporate strategy.Chief procurement officers (CPOs) instantiate best practices and then turn to newdisciplines, pushing boundaries to add additional business value.

Driving Procurement Excellence

With tight resources and high expectations,

procurement executives are turning to tech-nology to drive best practices for containingcosts. For example, helping to ensure visibilityinto spending, effective strategic sourcing, low-risk contracting, and compliant purchasing canset the baseline for cost savings.

One proven approach to expanding valueinvolves broadening procurement’s influence

to cover all categories of spending. By having

access to rich information in key categories,procurement can partner with the business togain entry into categories such as marketing,advertising, legal, and other areas.

Another approach is to collaborate more

strategically with suppliers. For instance,procurement can leverage network-basedinsights to understand differentiatingcompetencies and draw innovation from thesupply base for top-line growth initiatives.Market data and insights can also supportdiversity and sustainability programs, which canbe important to an organization’s brand.


ExecutiveSummary












85%

In highly competitive industries, the positive impact of strategic procurement cannotbe overestimated. On average, delivered cost savings increase a company’s net

income five times faster than the same percentage of revenue increase. At thesame time, procurement can support growth initiatives.

Bottom- and Top-Line Profitability

Spend under procurement

management for best-in-classorganizations

Source: Ardent Partners

The first step in identifying opportunities for

cost savings and revenue impact is to under-stand your organization’s spending. By using

software to aggregate, cleanse, enrich, andevaluate spending data, you can uncoverissues such as fragmented spending acrosstoo many suppliers, purchase price variances,and supply risks.

Then your team can pursue savings opportu-nities that will likely involve strategic sourcing

projects. To maximize the number of categoriesyou can source, you need ways to efficientlycollaborate with business stakeholders,discover new sources of supply, and rapidlyconduct requests for information and proposals.You also need to execute low-risk contractsusing a standardized process.

Moving contracted goods and services into

procurement execution systems supportscompliance for purchasing from approvedsuppliers – and at the right price and terms torealize negotiated savings. By making thisprocess simple and straightforward, you canavoid maverick spending.

Lastly, managing supplier performance andrisk – and collaborating closely with suppliersover time – will boost your company’s top line,

as suppliers bring new ideas that supportgrowth initiatives.


ExecutiveSummary








https://valuemanagement.sap.com/disclaimer/






Advanced technologies are propelling the discipline of procurement forward. Withthe world of possibilities expanding daily, procurement organizations can gain acompetitive advantage by being at the forefront of adoption.

Procurement organizations have access to vast

amounts of internal and external qualitative andquantitative data. Breakthrough database andtechnology solutions such as the SAP HANAplatform make information available instantlyat any level of granularity.

Leveraging that information requires flexible,scalable, cost-effective analytics embeddedwithin business processes and networks toenable real-time modeling and optimization,

decision support, and effective analysis toinform future planning.

Most employees today are mobile, connected,

and always on. Innovative procurement depart-ments are using mobile solutions from SAP tostreamline processes, increase efficiency, andenable on-the-go approvals.

Our mobile analytics and briefing applicationsprovide up-to-date information to supportsupplier meetings and field-related needs.

With the acquisition of Ariba, SAP now offers

market-leading, cloud-based solutions forsourcing and procurement – in addition to theworld’s largest trading network for supplier

collaboration. These low-cost, low-risk solutionsserve the needs of both IT departments andprocurement executives.



ExecutiveSummary












By driving efficient, effective supplier management, sourcing, procurement, andcommodity management programs, procurement teams are delivering greaterprofitability.

Proactively Manage the Supply Base

Engage the right suppliers to help ensure a responsive supply network and mitigate

risk.

Source More and Better

Effectively source more of your organization’s spending on a regular basis to

optimize savings.

Ensure Procurement Compliance

Provide a simple, intuitive self-service shopping experience to help ensureemployees buy the right goods and services.

Enable Accurate Invoicing and Timely Payment

Automate collaborative invoice management and bank communications for efficient,accurate, and timely process completion.

Manage Commodity Risk

Leverage sophisticated pricing engines and integration with treasury procedures tomanage commodity exposures.

Optimize Procurement Impact

Manage the Supply Base


Collaborative Invoicing

Procurement Compliance

Better Sourcing


ExecutiveSummary









Gaining a 360-degree view of every strategic supplier toyour business helps you make informed decisions aboutthe future of these relationships. At the same time, byunderstanding your supplier portfolio holistically, you cantake a true category management approach toprocurement.

Your supply base is essential to operating yourorganization effectively. So you can’t afford

supply disruptions, quality issues, or poorservice levels.

Ensuring smooth operations requires that yoube proactive about performance and riskmanagement for top-tier suppliers. An effective

program will include designated personnel,well-developed processes for risk identificationand mitigation, and ongoing performancemanagement procedures that bring under-performing suppliers back on track – or helpyou discover new suppliers.

The right program will also enable collaborationwith your suppliers – and your suppliers’

suppliers – by providing visibility into supplierperformance across your network.

You also need basic supplier information man-agement – an efficient way to keep information,logistics, banking data, and diversity and

insurance certifications up-to-date. With theright data readily available, you can run yourbusiness efficiently without administrativebottlenecks.

Proactively Manage the Supply Base

39%Higher average annualsavings where systemprovides real-time visibilityinto supplier performancefor proactive improvements

Source: SAP PerformanceBenchmarking


ExecutiveSummary








Better Sourcing

















With category expertise on hand, your organization maybe known for strong sourcing abilities. Even so, beingable to source more categories in a shorter time frame – and being able to do so more collaboratively and effec-tively – can bring additional savings to the bottom line.

Many organizations have learned best sourcingpractices by hiring external consultants orbringing on board a team of category andsourcing experts. Institutionalizing thesepractices so they can be leveraged morebroadly within your company and conductedmore quickly creates valuable opportunities foradditional savings.

You also need to speed up the process ofspend analysis and ensure that data is easy tounderstand and reliable. When sourcingprofessionals are armed with the right insights,sourcing projects get off to the right start.

It’s also important to organize procurement

projects so that they encourage collaborationwith business stakeholders and consider totalvalue. You’ll find that the purchasing behavior

of stakeholders is more likely to be compliant,helping you to realize expected savings once acontract is awarded. By executing the projectsand contracts faster over a collaborative

technology platform, you can source morecategories and implement savings morerapidly.

Source More and Better

73% Amount of addressable spendsourced annually by best-in-class organizations versus49% on average



ExecutiveSummary








Better Sourcing








Lower maverick spend(direct) for organizationswhere contract compliance isdirected, or even mandated,by system controls


After doing an effective job of sourcing goods and ser-vices and creating favorable contracts, your organizationwants to see those savings hit the bottom line. But inorder for that to happen, employees making purchaseshave to leverage those contracts – whether they areinside or outside your department.

Driving compliant purchasing across allspending categories is a tricky business. Itrequires careful consideration of how eachcategory will eventually be purchased by thedifferent divisions and systems of yourorganization.

Once that purchasing is mapped, it’s likely that

you’ll need to create integrated processes in avariety of systems, supporting direct materials,indirect goods, and both direct and indirectservices.

Your organization can take further cost out ofthe process by eliminating paper transactionsand conducting purchase order collaborationelectronically, which also speeds delivery.

Your direct materials buyers may not needguidance to adhere to contracted terms andpricing. But for indirect materials and services,placing items into catalogs for directed buyingby company employees is essential to reapexpected savings. You also need a self-servicebuying process that is intuitive and drivespeople to purchase from the correct supplier at

the correct price.

Ensure Procurement Compliance

40%


ExecutiveSummary








Better Sourcing

















At the tail end of the procurement process, your accountspayable department handles an enormous volume ofincoming invoices. Help ensure that suppliers are paid ontime at the right prices based on your agreements, whiledriving process efficiency.

The first issue AP managers must tackle isdealing with the many different invoice formatsthat are received. To automate this process, allinvoices must be accepted and transformedinto a consistent electronic format.

The next step is to validate the invoice and helpensure the outgoing payment is accurate. To

accomplish this task, you need to compare theinvoice information to the related purchaseorders, receipts, and contracts. Often there willbe errors or issues that require resolution withthe supplier, so you need a platform thatenables you to work with the supplier until theinvoice is correct and ready to be paid.

To finalize the process, you need to supportelectronic payments with standards-basedelectronic payment networks – such as Automated Clearing House (ACH) – and thenprovide remittance details.

Streamlining the invoice-to-pay process byproviding workflow and exception-based

management of invoices frees up yourpersonnel to focus on higher value-addactivities, which includes the opportunitiesprovided by dynamic discounting to optimizeworking capital.

Drive Accurate Invoicing andTimely Payments





Better Sourcing



ExecutiveSummary









Of survey respondents saidcommodity management was“critical” or “very important” totheir organization

Source: SAP and ProcurementLeaders Survey

If your organization purchases commodities such as rawmaterials, or even services such as electricity, yourprofitability could be heavily impacted by pricing swings inmarkets where you heavily invest. To manage this risk,you need a commodity management strategy and thetools to execute on it.

Nearly all manufacturing-related companies,and even those in other industries, interact withthe broader commodity market. Whether yourcompany produces commodities to sell, buysand uses commodities to make products,leverages commodities to operate, or does allof these, the discipline of commodity manage-ment is important to your business success.

To do this effectively, you need to manageshort- and long-term pricing, profitability, andrisks related to your commodity purchases andsales. You also need a tool set to bettermanage commodity risk by supporting sales,procurement, and risk management processesthat are impacted by commodities.

By their nature, the processes are interdependent – so integration results in more accurate, rapidresponse times.

This approach enables you to managecommodity risk using integrated processesdesigned specifically for your needs, as well asperform timely and profitable commodity

purchasing, selling, and hedging.

66%



ExecutiveSummary








Better Sourcing









Procurement Excellence Value Map


ExecutiveSummary




SAP and Ariba Solutions

Strategic Sourcingand Contracting

Collaborative Invoice to Pay

Procurement and OrderCollaboration

Supplier Discovery andLifecycle Management

Commodity Management

CommodityProcurement

CommodityRiskManagement

SupplierDiscovery

SupplierInformationManagement

SupplierPerformanceand RiskManagement

Spend AnalysisOperationalContractManagement

StrategicSourcing

OperationalSourcing

ContractLifecycleManagement

OperationalProcurement – Direct

OperationalProcurement – Indirect

CatalogContentManagement

ServicesProcurement

Purchase Order Automationand OrderCollaboration

Supplier Discoveryand LifecycleManagement

Procurementand OrderCollaboration


CommodityManagement

DocumentRetention and Archiving

CollaborativeInvoicing

InvoiceException and ApprovalManagement

Discount andPayment TermOptimization

AccountsPayable

CollaborativeInvoice to Pay

BankCommunication Automation





Supplier Discovery and Lifecycle ManagementDiscover, onboard, and manage suppliers formaximum value.

Solutions from SAP and Ariba, an SAP company, help you discovernew suppliers to meet business needs and then onboard them bycreating rich profiles and transactional information. They also enrichrelationships over time by supporting performance and riskmanagement.

SupplierDiscovery

Supplier discovery matches business buyers and suppliers globally, aligningneeds with capabilities. Cut the time and cost of finding and qualifyingsuppliers by up to 90% and project spend by up to 15%.

SupplierInformationManagement

Supplier information management allows companies to quickly identify andassess new sources of supply, rapidly onboard approved suppliers, and gaina 360-degree view of supplier information.

SupplierPerformanceand RiskManagement

Supplier performance and risk management facilitates the definition,measurement, and collaborative enhancement of supplier performance andrisk to meet business needs, improve supplier relationships, and minimizedisruptions within the supply base.


ExecutiveSummary














Of best-in-class procurementorganizations use accuratespend data to drive sourcingresults


Strategic Sourcing and ContractingSource efficiently and effectively to drive superiorsavings.

Solutions for strategic sourcing and contracting from SAP and Aribaenable rich spend analyses for savings opportunity identification andeffective strategic-sourcing project management. They support low-risk, standardized contracting processes that tie sourcing andprocurement together for realized savings.

Spend Analysis Spend analysis helps you to identify savings opportunities by enriching,classifying, and analyzing company spend data.

StrategicSourcing

Strategic sourcing management supports a programmatic, collaborativeapproach to sourcing project management to generate cost savings.

OperationalSourcing

Operational sourcing allows you to automate spot sourcing or demand-driven sourcing activities for fast turnaround.

ContractLifecycleManagement

Contract lifecycle management enables standardized contract managementfor better visibility, reduced risk, and enhanced compliance.

OperationalContractManagement

Operational contract management helps unify contract distribution andexecution across a varied system landscape for holistic usage tracking anddiscount management.

90%


ExecutiveSummary






















OperationalProcurement – Direct

Operational procurement for direct materials supports both plan-driven and ad hocpurchasing with pricing compliance based on outline and service agreements.

OperationalProcurement – Indirect

Operational procurement for indirect goods and services enables compliantemployee self-service purchasing based on catalogs while also allowing for ad hocrequests.

Catalog ContentManagement Catalog content management functions keep each catalog up-to-date with correctitems and pricing, as well as support for punch-out catalogs.

ServicesProcurement

Services procurement supports processes for collaborative purchasing withsuppliers and allows goods and services to be purchased together.

Purchase Order Automationand OrderCollaboration

Purchase order automation and order collaboration enables the transmission of POsand other order-related documents through the Ariba Network.

Lower maverick spend (direct)where change orders or POacknowledgements are con-trolled and recommunicatedto the supplier electronically


Procurement and Order CollaborationDrive compliant purchasing and automatedcollaboration.

Solutions for procurement and order collaboration from SAP and Ariba enable sound purchasing processes for spend categories,intuitive self-service procurement with robust catalog contentmanagement, and efficient order transmission and collaboration overthe Ariba Network.

17%


ExecutiveSummary


















Document Retentionand Archiving

Improve invoice storage and access, leading to faster, more-accurate invoiceprocessing and lower costs.

CollaborativeInvoicing

Send and receive digitally signed, legally compliant invoices electronically as part ofthe accounts payable process.

Invoice Exceptionand Approval Mgmt.

Verify invoices against preconfigured business rules. Handle exceptions andproduce an audit trail with workflow approvals, from receipt through settlement.

Discount andPayment TermOptimization

Reduce the time for invoice processing and improve cash management planning byautomating discount collaboration, evaluation, and capture.

Accounts PayableRecord and manage all accounts payable data and integrate that data with thecompany’s purchasing system.

BankCommunication Automation

Provide open interfaces and standards, intuitive status monitoring, batching ofpayments, and automated exception handling. Facilitate compliance with digitalsignatures and flexible approval.

Collaborative Invoice to PayDrive process efficiency across the payables functionto help staff focus on value-add activities.

Collaborative invoice-to-pay solutions from SAP and Ariba digitizethe invoice-to-pay process for PO and non-PO invoices and can betransmitted over the Ariba Network. Invoices submitted electronicallyundergo a “smart invoice” submission process that eliminates errorsand exceptions.








ExecutiveSummary









Commodity ManagementOptimize commodity procurement and riskmanagement.

Commodity management solutions from SAP provide a consoli-dated, real-time view of physical and paper commodity positions.Enabled by a direct transfer of procurement data to treasuries, theysupport decisions that integrate with your physical supply chain,financial risk management, and accounting processes.

CommodityProcurement

Price commodities based on quotes from exchanges, automate pricecalculations, and streamline invoicing. This provides a clear view into thephysical positions of commodities, a streamlined process for pricing andsettling commodities according to market conventions, and the ability tomanage risk in times of high volatility.

Commodity RiskManagement

Identify and quantify exposure to commodity price and foreign-exchangerisk from commodity procurement processes in real time so you can monitorand reduce price risks with appropriate hedging. You can also handle thefinancial transactions used to hedge this risk, gain insights into overall riskpositions, and generate comprehensive reporting of your commodityportfolio.

56%Of survey respondents saythey use price indexing, and30% leverage hedging tomanage commodities

Source: SAP and ProcurementLeaders Survey


ExecutiveSummary

















Real-time data and analytics, on-the-go applications, andcloud-based solutions provide more flexibility than ever toprocurement organizations. These solutions enable pro-curement to deliver more value faster, as they eliminatecostly bottlenecks in strategic processes.


SAP HANA

Handle large volumes of spending and supplier data, coupled with external information, to drivebetter decisions.

Mobile

Unwire employees and equip them with access to your sourcing and procurement processes toprevent bottlenecks and provide real-time insights.

Analytics

Generate relevant insights that matter most to procurement so you can focus on identifying andexecuting on opportunities.

Cloud

Leverage Ariba solutions for fast, flexible deployment of procurement processes, and tap theworld’s largest business network to capture rapid, unique value.

SAP HANA


Mobile

Analytics

Cloud

90%Estimated penetration ofcloud-based sourcing andprocurement tools

Source: Spend Matters


ExecutiveSummary








SAP HANAMost procurement organizations struggle with capturing,transforming, enhancing, and analyzing large volumesof spending and supplier data from various systems withanything but a hindsight view. By exploiting Big Datatechnology, you can change this paradigm to supportreal-time insight and action.

SupplierDiscovery andLifecycleManagement

Supplier Discovery and Lifecycle ManagementWith the 800,000+ suppliers in the Ariba Network and continued expansion,opportunities for new supplier discovery abound. These opportunities areenhanced by external data feeds from thousands of sources, adding criticalinformation about risk, diversity, and sustainability, and making high-speedperformance a must.

StrategicSourcing andContracting

Strategic Sourcing and Contracting As large enterprises bring granular, line-item detail to sourcing events and

contracts, you need to collect and evaluate responses and transact againstlarge-scale contracts. This requires the processing power of Big Datasolutions.


Procurement and Order CollaborationWith so many buyers and suppliers collaborating on the Ariba Network,transacting on hundreds of thousands of POs and invoices daily, heavyhorsepower and real-time transaction execution keep business moving inreal time.

250,000+Invoices processed over the Ariba Network daily

Source: Ariba


ExecutiveSummary



SAP HANA


Mobile

Analytics

Cloud







MobileToday, the rule is “Nothing Important Happens in the

Office” (NIHITO). If your procurement team follows this

mantra, mobile functions are critical to helping them keepprojects and transactions on track and access informationthat supports field-based supplier interactions.


Supplier Discovery and Lifecycle ManagementNot long ago, it was impossible to imagine having a 360-degree view ofeach important supplier relationship, including spend, RFx, contracts,supplier transactions, performance and risk information, diversity andsustainability status, and joint strategic programs. With mobile solutions,you get visibility into all this and more in a mobile-friendly format – whenand where it’s needed most.


Strategic Sourcing and Contracting

Mobile solutions from SAP help you avoid bottlenecks. You can review andapprove important RFx and contract activities on the go so that negotiatedsavings hit the bottom line faster. And with Web-based applications for sourcingand contracting available from both SAP and Ariba, entire platforms areaccessible on mobile devices for anytime, anywhere work management.


Procurement and Order CollaborationLeverage on-the-go approvals for purchase requisitions and purchase orders tokeep business flowing at all times.


ExecutiveSummary



SAP HANA


Mobile

Analytics

Cloud






AnalyticsGain up-to-the-minute visibility into key performanceindicators across every facet of procurement operations,enabling real-time monitoring, spend and savingsanalysis, risk mitigation, and predictive supplierperformance modeling.


Supplier Discovery and Lifecycle ManagementInsight into your current supplier portfolio, including category coverage andperformance and risk analysis, allows you to proactively manage the supplybase to minimize risk and identify opportunities to add more business value.


Strategic Sourcing and Contracting A robust spend analysis that aggregates and enhances your data is alwaysthe first step to enabling effective sourcing and contracting. Beyond deliv-ering insightful spend analysis, solutions from SAP and Ariba help youanalyze all sourcing and contracting projects and activities. This helps bal-ance team workloads, identify process bottlenecks that must be addressed,and ultimately prove sourcing program savings.


Procurement and Order Collaboration Analysis and insight into your company’s purchasing operations enable

program enhancements for process and policy changes and new catalogrequirements in support of ever-more-compliant purchasing.


ExecutiveSummary



SAP HANA


Mobile

Analytics

Cloud






Cloud

1,200+New companies join the Ariba Network every week

Source: Ariba

Our on-demand software offers fast, flexible deploymentof both critical and complementary solutions. Best-runprocurement departments deploy cloud solutions fromSAP and Ariba to enable flexible processes and supplynetworks for faster, deeper collaboration.


Supplier Discovery and Lifecycle ManagementBy leveraging our cloud-based solutions for supplier information, you canintegrate this data and make it accessible and usable by both people andsystems, allowing for an efficient assessment of supply bases and new supplysources.


Strategic Sourcing and ContractingBy their nature, sourcing and contracting are collaborative processes thatextend beyond your own four walls. That’s why Ariba offers a cloud-based

solution for conducting RFx and contract negotiations; it provides a secure yetaccessible platform for this critical activity.


Procurement and Order CollaborationThe procurement process is perfect for the cloud – for example, managing cata-log content collaboratively and keeping it up-to-date is achieved more easilythis way. Further, electronic collaboration on POs and all related documents – confirmations, ASNs, and service entries – speeds the process and savessignificant administrative burden. Leveraging the cloud-based Ariba Networkto support this activity has become the de facto standard in procurement.


ExecutiveSummary



SAP HANA


Mobile

Analytics

Cloud












Of the Global 2000 and morethan 90% of the Forbes 500transact and collaborate overthe Ariba Network

Source: Ariba

Best-Run Customers

>60%

Best-Run Customers

Korea Exchange Bank

H.J. Heinz

Why SAP and Ariba?

Lexmark


ExecutiveSummary

















“By leveraging SAP software, we have driven process standardization, fullspend visibility, and system-enabled compliance, allowing us to achievesignificant savings across multiple indirect categories.”

Bill Durbin, Global Process Owner for Procurement, The H.J. Heinz Company

The H.J. Heinz Co. is a global food products company withover $10 billion annual revenue and worldwide operations.

To standardize on global sourcing and procurement processes andsystems, Heinz has leveraged the SAP Sourcing application and the SAPSupplier Relationship Management (SAP SRM) application, supported bythe Ariba Network. Considerable savings have resulted, paving the wayfor additional investments in procurement.

Key Benefits:

Double-digit savings in many categories of spend

Approximately 65% of transactions on catalog/compliant

Real-time spend information (vs. previously 6 weeks prior)

Streamlined and standardized processes in sourcing and procurement

Savings generated from initial deployments that funded subsequentrollouts of the solutions

>65%On catalog spend-ing, up from about10% globally

Availability of real-time spending datato drive policyand processimprovements

Savings from bothsourcing andmore efficientprocurement


ExecutiveSummary



Best-Run Customers

Korea Exchange Bank

H.J. Heinz

Why SAP and Ariba?

Lexmark






“Ariba Procurement Content is helping us to get where we need to be froma spend compliance and catalog compliance activity. The time it takes to setup a new catalog is greatly reduced. I’m able to do things with business

resources, whereas before it would require IT resources.”

Matt Montgomery, Manager, Practices, Legal and Supplier Sustainability, Lexmark

Lexmark International is a $4 billion leading provider ofprinting and imaging products, software, and servicesoperating in 70 countries.

To create a more automated, low-touch environment on purchasingtransactions and drive compliant employee usage of a standard system,Lexmark leverages Ariba Procurement Content and the Ariba Network.

Key Benefits:

Increase in user adoption of 15% and growing

Anticipated 30% improvement in invoice/payment processing cycletimes

Flexible Ariba Procurement Content interface allows procurement tohappen from any back-end system (had multiple ERPs in place,including enterprise source planning software from SAP)

New catalog set up in less than 1 week

60%Reduction in time toset up catalogs

2 daysTo connect AribaProcurementContent to SAPsoftware

High useracceptance andease of use withouttraining


ExecutiveSummary



Best-Run Customers

Korea Exchange Bank

H.J. Heinz

Why SAP and Ariba?

Lexmark






“Standardized software makes it easier for our bank officers to manageend-to-end processes, while providing all our employees with more accurateand consistent data.”

Song Jong-Hwa, Manager, Information Development Team,Korea Exchange Bank

With the equivalent of $15 billion in revenue, Korea ExchangeBank is one of South Korea’s largest commercial banks with

350 domestic branches and 25 international locations.

To streamline all its operations and data management including a majorfocus on procurement, Korea Exchange Bank implemented the SAP ERPapplication with SAP SRM for purchasing and sourcing activities.

Key Benefits:

Improved lifecycle management of supply operations

Improved budget planning and control

Increased efficiency and productivity with greater automation

Significant first-year savings driven by efficiency and sourcingactivities, in a year when total spending was meant to increase fromexpansion efforts

“Straight-through” processing of purchase orders through payment

7%First year annualprocurementsavings

$10millionSourcing savingsin first year

30%Staff availablefor strategicredeployment


ExecutiveSummary



Best-Run Customers

Korea Exchange Bank

H.J. Heinz

Why SAP and Ariba?

Lexmark




27 / 29 © 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP and Ariba solutions empower your team by enabling accurate spend analysis,effective sourcing and contracting, compliant purchasing, robust suppliermanagement, and efficient order collaboration – all with flexible deployment optionsusing the latest technology innovations.

Why SAP and Ariba?

Tightly Integrated, Comprehensive Solutions

SAP and Ariba offer the most complete on-premise and cloud-based platforms for sourcing andprocurement, enabling the closed-loop cycle of identifying and realizing savings for greaterprofitability.

Leveraging Key Breakthrough InnovationsOur solutions leverage the industry’s most innovative technologies, combining solutions for

database and technology, mobile, analytics, and cloud-based applications, as well as the world’s

largest trading network. This provides unsurpassed process efficiency at the lowest possible cost.

Proven Time to Value in Large-Scale Implementations

The world’s leading companies, across every major industry throughout the world, continue to rely

on SAP and Ariba to enable them in their journey for procurement excellence.


ExecutiveSummary



Best-Run Customers

Korea Exchange Bank

H.J. Heinz

Why SAP and Ariba?

Lexmark




28 / 29 © 2013 SAP AG or an SAP affiliate company. All rights reserved.

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ExecutiveSummary



Benchmark Your Performance

Position your organization for dominance in this new economy with the business performancebenchmarking program from SAP – available free to SAP customers and select prospects.The SAP benchmarking program has helped more than 3,000 organizations assess theirstrengths, uncover areas for improvement, and identify best practices and IT strategies that

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Go Live in Weeks

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Solution Overview

To learn more, visit:

www.sap.com/procurement

www.ariba.com

http://thenetworkedeconomy.com

Or visit our community pages:

http://scn.sap.com/community/sourcing

Ariba Exchange

https://twitter.com/ariba

https://twitter.com/sap_procurement

Procurement

CMP 25206 (13/04)


ExecutiveSummary



© 2013 SAP AG or an SAP affiliate company. All rights reserved.


http://www.sap.com/procurement

http://www.ariba.com/

http://thenetworkedeconomy.com/


http://exchange.ariba.com/welcome







http://exchange.ariba.com/welcome





http://www.ariba.com/

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