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SAP Runs Ariba How the SAP Procure-to-Pay Organization Is Harnessing the Power of Ariba
Martin Reichmann, Program Lead
May 15, 2013
© 2013 SAP AG. All rights reserved. 2
Agenda
2
3
1 SAP's Procure-to-Pay Organization
The SAP Runs Ariba Program
Keys to Success
© 2013 SAP AG. All rights reserved. 3
SAP procure-to-pay: scope of coverage
65,000+ SAP employees worldwide
16.3bn revenue (2012)
3.6bn spend (2012)
> 607,000 received invoices
120 / 350 countries / buildings
14,000+ suppliers worldwide
© 2013 SAP AG. All rights reserved. 5
Procure-to-pay at SAP Overview of key facts and figures for 2012
Spend by regions 2012
33%
22%
31%
14%
Corporate EMEA AMERICAS APJ
FTE working for P2P at SAP
Active suppliers in 2012
Trip entries in 2012
Invoices in 2012
Purchase order line items in
2012
Procurement volume at SAP in 2012
Per PO for a nonautomated P2P process cycle
© 2013 SAP AG. All rights reserved. 7
Procure-to-pay at SAP: goals and structure
• Cover all units of SAP centrally
with prioritized geographies
• Leverage purchasing power and
driving sustainable savings
• Deliver best-in-class procurement
processes and highest possible
service levels to internal customers
• Mitigate risk to SAP
• Be a fair partner to our suppliers
44 locations worldwide
Procurement
shared services
Operational
procurement
CPO and P2P business owner
Category
procurement
Strategic and
tactical sourcing
Operational
shared service*
Accounts
payable
*Reports solid line into global finance shared services organization
© 2013 SAP AG. All rights reserved. 8
SAP runs SAP Five game changers within procure-to-pay….
2012 2013 and beyond
SAP SRM
7.01
Cart
approval
mobile app
Supplier
mgmt.
dashboard
SAP HANA–
based
Reporting
Ariba
Network
and
solutions Global
catalog
management
© 2013 SAP AG. All rights reserved. 9
Opportunities for improvement in procure-to-pay organization
• Increase invoice automation and reduce paper
• Assure rapid and high-quality sourcing with knowledge sharing
• Improve usability – “no training required” for end-user and
professional buyer
• Guarantee supplier compliance and minimize supplier risk
• Create transparency on status for buyers and suppliers
Increase overall efficiency and effectiveness of the team
© 2013 SAP AG. All rights reserved. 10
Agenda
2
3
1 SAP's Procure-to-Pay Organization
The SAP Runs Ariba Program
Keys to Success
© 2013 SAP AG. All rights reserved. 12
12% of our
suppliers are on
Ariba
34% of our
invoices come
from those
suppliers
49% of invoices of
the top 100 are
matched
45% of our top 100
suppliers are
matched
Program step 1: “The Supplier Match” for SAP
© 2013 SAP AG. All rights reserved. 13
Program step 2: selection of initial Ariba cloud solutions
Single point for business collaboration
SAP suppliers
Ariba Collaborative Commerce
Ariba Supplier Information and
Performance Management
Ariba Collaborative Sourcing
Ariba Procurement Content Catalogs, punch-out catalogs
RFI, RFP, e-auction
Maintain supplier profile information
SAP global procurement
Ariba cloud solutions:
PO, OC, ASN, invoice,
invoice status
rapid-deployment solution
from SAP
© 2013 SAP AG. All rights reserved. 14
Program step 3: orchestration of on-premise and on-demand solutions
Spend
visibility*
Collaborative
sourcing
Procurement
content
Supplier
information &
performance
management
Supplier
Supplier
Supplier
Purchase
order
Invoices
Procure-to-pay
SAP SRM (shopping cart)
SAP ERP (PO creation/payment)
Strategic procurement Operational procurement Operational shared service
* Spend visibility project will start in June
© 2013 SAP AG. All rights reserved. 15
Success leveraging rapid-deployment solution for SAP and Ariba solutions
Purchase orders,
invoice status
SAP ERP (MM)
Purchase order
Inbound delivery
Invoice
Order confirmation,
ASN, invoice
Purchase order
and invoice
automation
Suppliers
SAP NetWeaver
Process Integration
Adapter
© 2013 SAP AG. All rights reserved. 16
Agenda
2
3
1 SAP's Procure-to-Pay Organization
The SAP Runs Ariba Program
Keys to Success
© 2013 SAP AG. All rights reserved. 17
Keys to success
Implementation
approach
Implementation of
“vanilla” standard on-
demand Ariba solutions
Use of “scrum” project
methodology
Use of rapid-deployment
solution
Implementation
challenges
Coordination of involved
business groups (IT/
business owners/Ariba
personnel)
Harmonization of four
workstreams and
alignment with supplier-
enablement efforts
Key success
factors
Simplification and
standardization
Focus on enablement of
suppliers already registered
on the network first
Highly motivated teams
taking responsibility
The team implemented in just 3 months – record speed!
© 2013 SAP AG. All rights reserved. 19
Thank you
Contact information:
Martin Reichmann
Global Lead for SAP Runs Ariba,
SAP Global Purchasing Organization
