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Seizing the Spot Buy Opportunity
Moderated by Chris Wang, Director of Marketing, Ariba Discovery
May 15, 2013 – Orlando, FL
© 2013 Ariba, Inc. All rights reserved.
What is Ariba Discovery?
• The premier service for matching business buyers and sellers globally
© 2013 Ariba, Inc. All rights reserved. 2
“I’m looking for…”
“I can offer that!”
How Does It Work for Buyers?
• Buyers describe needs in a posting and get matched to sellers
Create a posting Review proposals Make selection
Describe your buying
need in a posting
Receive offers from sellers
who offer what you need
Review proposals and
choose the best offer
Find relevant new sellers faster and easier than
through traditional search methods
3 © 2013 Ariba, Inc. All rights reserved.
What Can I Use It For?
• Finding trading partners for any product or service
Over 730K buyers and sellers
More than 20K categories
Nearly 200 countries
36% of sellers with global reach
Over 40K green and diverse sellers
o 16,000 Women-Owned
o 11,000 Minority-Owned
o 5,000 Veteran-Owned
o 4,700 Small Disadvantaged
o 13,000 Green
Buyers can search for green and diverse sellers
© 2013 Ariba, Inc. All rights reserved. 4
Market Intelligence
Spot Buys
Sourcing Initiatives
Leading Seller & Buyer Posting Categories
5 © 2013 Ariba, Inc. All rights reserved.
Sellers Buyer Postings
More Value for Buyers and Sellers
BUYER VALUE
• Achieve incremental savings of 15%
• Reduce costs up to 75% for seller
identification and qualification
• Save up to 90% of time for seller
identification and qualification
• Make better, more informed seller
selection decisions
SELLER VALUE
• Tap into over $5B USD buying volume
right in Discovery
• Maintain high visibility in front of real
decision-makers, with budget and
ready to buy
• Cost effective lead source versus
traditional methods
• New sales channel, comprising
15-50+% of revenue for many sellers
© 2013 Ariba, Inc. All rights reserved. 6
The Speakers
Brian Bender
Sr. Director, Global Purchasing
Cal Miller
VP Business Development
7 © 2013 Ariba, Inc. All rights reserved.
J.M. Huber & Its Challenges
• Enhance the performance of multiple process manufacturing businesses
with support across a variety of industries, markets and geographies
• Challenges
Complicated sourcing process across a broad range of products
– 7 businesses, 24 process manufacturing plants, 5 R&D centers, 7 admin centers
Managing spend across 5 continents in direct & indirect categories
– FY 2012 spend = $840 million
Manage large capital goods & services
– FY 2012 = $80M
Manage MRO & plant services
– FY 2012 = $45 million
Center led with decentralized execution at the plant level
– Plant buys focused on local sellers
– Multiple ERP applications
8 © 2013 Ariba, Inc. All rights reserved.
J.M. Huber & Ariba Discovery
• Uses Ariba Discovery to easily find sellers for a broad range of products
across manufacturing footprint
• Ariba Discovery Results
Allows for identification of potential sellers quickly and easily
Provides easy access for lower dollar value ‘Spot Buys’
Improves sourcing productivity
Best used for standard ‘commodity’ grade equipment vs. specialty
Provides easy platform ability for market tests across geographies
Alleviates local capacity issues and enhances productivity of plant/category buyers
Quickly conducts market research and seller identification in new markets
9 © 2013 Ariba, Inc. All rights reserved.
Business Development Options… and Costs
• Cold calls
• Advertising in print/B2B networks
• Buying mailing lists & email lists
• RFPs / RFIs (need to be invited)
• Purchasing organizations (pay membership fee)
• Business development outsourcing services
• Networking events
• And Ariba...
Time / in-house resources / outside resources / out-of-pocket money
Wasted efforts on unqualified prospects
Coordination of email, snail mail, calls, tradeshows, etc.
© 2013 Ariba, Inc. All rights reserved. 10
Benefits of Ariba Discovery
• Received 40 quality leads in first six months of using Ariba Discovery
• Started building new relationships with nine large buying organizations
• Quickly secured a $35K contract from a large bank through Ariba
• Jumped ahead of competition with prospects that prefer to buy via the Ariba
Network and accelerated vetting process
• Using Ariba Discovery for lead generation, saved 80 man-hours of research in
six months
Time saved, efficient, professional, good value, access to large companies
Excellent technical support
Long term strategy, building blocks approach, cost management & savings
“Good House Keeping Seal” for large firms
Great Spot Buy sell strategy
© 2013 Ariba, Inc. All rights reserved. 11
Navigating the Network
• Your Profile / References / Attachments
• Responding to Introductions – do’s & don’ts
• Managing your account
• Develop your messages (high level & strategic)
• Organize your message support docs
• Getting help – lots of support to assist you!
• Follow up!
© 2013 Ariba, Inc. All rights reserved. 12