UC Ariba Procurement Content and Ariba Catalog Management Valerie Blatt, Sr. Director, On-Demand Deployment Services Dawn Fisher, Senior Catalog Knowledge

UC

Ariba Procurement Content and Ariba Catalog ManagementValerie Blatt, Sr. Director, On-Demand Deployment Services

Dawn Fisher, Senior Catalog Knowledge Expert

© 2011 Ariba, Inc. All rights reserved.

Session Goal

• Share best practices and recommendations on Content management

• Learn from customer experiences

© 2011 Ariba, Inc. All rights reserved. 2

Agenda

• Best practices in catalog management• Frequently Asked Questions - Practical tips!• RockTenn Learnings• Catalog Self-Service (New capability)• Demo• Ariba Express Content• Questions?


“Content management is the foundation upon which every e-Procurement initiative must be built. If this foundation is unstable or incomplete, the rest of the

project will crumble.”

- Aberdeen Group


What are content management options?

• CIF Catalogs loaded on your e procurement system

• PunchOut Catalog residing on supplier site. Accessible through e

procurement system• Level 2 PunchOut

All benefits of PunchOut plus single view across multiple suppliers.


What Are Your Catalog Options?Option 1: Catalog Interchange Format (CIF)


• Rapid deployment

• Greater compliance control

• Low setup cost and complexity

Catalog uploaded to your eProcurement system

What Are Your Catalog Options?Option 2: PunchOut


• Automated updates of price/availability data

• Product configuration and customization

• Large number of catalog items

Interactive catalogs residing on supplier Website, accessible through your eProcurement system

What Are Your Catalog Options?Option 3: Level 2 PunchOut


• All benefits of PunchOut plus additional

• Auto updated price and availability

• Ridiculously simple catalog updates

Interactive catalogs residing on suppliers’ Websites, searchable across multiple suppliers

Content Catalog (CIF)

• Why Use CIF? Any supplier can support CIF Consistent user interface Easy comparison of items/price Control over displayed products

and pricing Fast for suppliers to implement

• Considerations Timeliness of data Internal catalog management Catalogs with many SKUs


PunchOut Catalog

• Why use PunchOut? Latest pricing and products Supplier site value adds No administration

• Considerations Supplier readiness Different user interface

across supplier sites Product/pricing control Catalog size


Level 2 PunchOut

• Why Use Level 2 PunchOut? Real time price/availability Consistent user interface Direct punchout to item Simple catalog updates

• Considerations Supplier readiness Kit, favorites support Cross site comparison Content file maintenance


• Keyword search - View results across local and PunchOut suppliers and select item

Buyer’s Point of View: Which Option Best Fits Your Requirements?


Control over Spend

High Number of Catalog Items

Search across Multiple Suppliers

Rapid Supplier Enablement

High User Adoption

Timely, Accurate and Complete Information

CIF PunchOutLevel 2

PunchOut

Supplier’s Point of View: What Will Your Supplier Recommend?


CIF PunchOutLevel 2

PunchOut

Ability to Direct Buyers to Shelf or Item Level

Opportunity to Increase Wallet Share

Ease of Updating

Ease and Speed of Implementation

Flexibility in Merchandising

Ease of Integrating to eBusiness Website

UC

Frequently Asked Questions - Practical Tips


Who should manage catalogs?

• What you should consider when developing a catalog management plan? Are there enough resources in house to support an

aggressive rollout and the ongoing support? Is it worth the cost of developing the skills required? Does the organization have, or willing to invest in tools

for cleansing and content enrichment? Will an investment be made to develop quality

processes and best practices?


Which catalogs?


Top Categories Additional Categories ServicesOffice SuppliesIT EquipmentMRO

Books/PublicationsOffice Furniture and EquipmentLaboratory and Safety DevicesWireless Devices and Accessories

Temp LaborConsultingFacilitiesPrintMarketing Services

How many catalogs should be online?


Targeted for eCatalog• Items with “part number to “price”

relationship• All Contracted Items• Suppliers who receive150 orders or

more annually

Benefits• Savings identified in the sourcing

process will be realized• Time to requisition is reduced• Purchasing compliance• Reduction of errors

The Aberdeen Group has found that best in class organizations do at least 74% of their buying through an eCatalog.

How do you keep pricing current?


• Contracted Items Usually have a set time period for

price validity Utilize expiration date features in the

procurement application to avoid displaying outdated pricing

Follow up with supplier prior to contract end date

• Non-contracted items Can have a random refresh schedule Most update quarterly Don’t expect suppliers to be diligent about

providing updated content

UC© 2011 Ariba, Inc. All rights reserved.

Customer Profile• The Walt Disney Company is a leading

diversified international family entertainment and media enterprise.

• Revenues $35.5B• Largest single instance of SAP in the world for

financials

Before After2-4 weeks 5 business days5-7 days 1 dayKeyword only Parametric RefinementCategory/Supplier SKU level50,000 SKUs 500,000 SKUs6 Western European 6 Western European &

4 double byte95% 99%+

© 1996 - 2009 Ariba, Inc., All Rights Reserved

Ariba Snapshot: The Walt Disney Company

The Challenge• Time and costs to enable and maintain supplier

catalogs• Existing system did not scale• System did not provide needed reporting,

searching and overall ease of use

The Solution• Ariba Procurement Content

• New Supplier Training and Enablement• Supplier Catalog Updates• Advanced Searching Techniques• Reporting Capability• Maximum catalog size • Multilingual Catalogs

• Supplier Catalog Accuracy

UC

RockTenn Lessons Learned

Kay Ree Lee

Director, Purchasing System and Administration, RockTenn


RockTenn Overview

© 2011 Ariba, Inc. All rights reserved. 21 © 2010 Ariba, Inc. All rights reserved. 21

RockTenn is a leading producer of paperboard, containerboard, consumer and corrugated packaging

• Headquarters in Norcross, GA (Atlanta)• 100 facilities in the US, Canada, Mexico, Chile and Argentina• Annual net sales of approximately $2.9 billion (FY09)

RockTenn Business Segments:• Consumer Packaging • Corrugated Packaging • Merchandising Displays • Specialty Paperboard Products

RockTenn Implementation Summary• Ariba P2P

More than 1,900 suppliers 90% of POs are electronic 50+% of invoices are electronic 90+% of invoices flow directly with no exceptions for payment

• Catalogs: More than 20 catalogs today (punchout and cif’s) Punchout catalog categories:

– MRO (5 – 6 different vendors)– Office Supplies– Temp Labor– IT

More than 50 item level contracts (essentially the same look and feel as a cif catalog but pricing is maintained internally via the contracts module)

• Ariba Procurement Content More than 20 catalogs (CIF and punchouts) Implementation of the 10S2 Catalog Self-Service functionality whereby catalog updates can

be managed in a more automated fashion between the supplier and category managers 13 item level contracts Integrated with JD Edwards


Catalog Adoption and Enablement on Ariba Can Be Separated into Three Categories


There were three different types of

suppliers that we encountered

during the process of enabling

them on Ariba. These suppliers

guided the amount of effort

required to enable them on Ariba:

A. High volume/high transaction

(office supplies, general

industrial supplies, MRO)

B. Large suppliers that are new to

Ariba (OEM parts)

C. Small suppliers that are new to

Ariba


Size of supplier

Re

sis

tan

ce

to

ch

an

ge

L

H

H

Guide supplier through process, hand-hold, and

monitor progress(B)

Advise supplier of process and guide

as needed (walk then run – manual,

E-PO, E-Invoice)(C)

Guide supplier through process

quickly and monitor to ensure

compliance (A)

Quick Enable Process

(C)

L

RockTenn Lessons Learned

© 2011 Ariba, Inc. All rights reserved. 24 © 2011 Ariba, Inc. All rights reserved. 24

LESSONS LEARNED

Catalog Enablement • Get the easy wins with suppliers that have existing Ariba

punchout catalogs and Express Content

• Test rigorously with sending POs and receiving invoices

electronically as well as other transactions (order

confirmation, order ship notices, etc.)

• Ensure standard process for catalog/pricing updates

(punchout vs. cif)

• Create training documentation to walk users through

punchout experience (some punchouts are more complex

than others)

• Proactively track your spend and compliance for catalog vs.

non-catalog orders

AREA

UC

Catalog Self Service


Catalog Self Service – 1 of 2


Features

• Complete self service in enabling and maintaining catalogs• Buyers

Self service to set up catalog validation rules Support for supplier specific rules

• Rule Engine Load catalog default rules Create, modify and save new rules Validate catalogs against the defined rules set Identify and display errors in catalog to both suppliers and buyers Communicate error status via email

• Suppliers View and download catalog validation rules View and correct catalog errors Do catalog comparison

Description

Ability for buyer and supplier to manage catalogs in a self-service mode

Catalog Self Service – 2 of 2


Benefits

• Buyers Reduce cycle time. Faster catalog enablement. Lower enablement/maintenance costs by reducing manual steps Enabling more catalogs

• Suppliers Reducing time and cost to enable catalogs Increased visibility and transparency Increasing catalog coverage > More transactions

Examples

• Loading catalogs with rules to check Required fields filled in (Price, Classification Code, UOM, Lead Time Supplier specific check on (Classification code range 4312****, Lead

time < 10days & UOM = EA)

Description

Ability for the buyer and supplier to manage catalogs in a self -service mode

Roles/Responsibilities

• Ariba: Work with the customer to confirm current customer validation rules; Work with suppliers to ensure their catalogs are current on the Ariba Network.

• Customer: Once rules are confirmed, identify desired catalog processing method (Manual/Auto Subscription level Sync/Mix)

• Supplier: Each time a catalog update is submitted, the supplier must maintain the same catalog subscription name; otherwise this will cause errors when the subscriptions are pushed to the customer’s OnDemand application if Auto Subscription Sync is used.


Catalog Self Service - Demo


Catalog Self Service – New Process


SupplierSupplier

Prepare CIF

AN

Validate Data Completeness and Accuracy

Raw CIF File Load CIF

Normalize Raw CIF fFile

Pass?Send Error Messages

Error Messages

Update CIFUpdated

CIF

No

Where? TBD

Buyer

Buyer Rules

Configure Buyer Rules

GSO

GSOGSO Enrich the Data

Enriched CIF File

P2P

Load CIFEnriched CIF FileBuyer

Normalized CIF File

Yes

Catalog Self Service – Use Case• Catalog validation rules definition (Buyer)

Set up catalog validation rules– All Suppliers (Green \ Hazardous \ UOM)– Supplier Specific Rules (Classification Code \ Expiration Date \ Lead Time)

• Download rules & create catalog file (Supplier) View and download catalog validation rules Prepare and load catalog file through Network account

• Catalog Validation (Catalog Self Service Engine) Synchronize catalog with buyer instance Validation of catalog and error reporting (field, line wise)

• Error correction and republish catalog (Supplier) Email notification on errors View errors online and correct catalog file Publish new catalog version

• Publish catalog (Buyer) Email notification on catalog load View and validation. Catalog difference report. Approval and publish to end users

• Catalog Status update (Supplier) Online update of catalog status

– Published– Pending– Validated– Approved– Activated


Roadblocks? (Issue, Resolution plan)


• Catalog Upload errors on Ariba Network (Publishing error. Call support) View Customer Ariba Network Validation preferences

• Customer Validation errors (Errors in catalog. Log into AN account, check and correct errors)

Will receive Email notification on catalog failure Will receive new status on Ariba Network May need to contact customer or Ariba catalog expert for more information

• Catalog Status Updates (Don’t panic. Contact customer or Ariba catalog expert)

• Catalog Updates (Create new standard Vs. new versions)

UC

Catalog Self Service Screen Shots


Buyer Rules Page (Expanded)


Supplier Rules Page


On Loading File, Validation Errors Found


Error UI, Supplier View (summary pg)


New Error UI, Supplier View (detailed errors, expanded)


Compare Catalog Versions (Buyer view)


UC

Ariba® Express Content


Ariba Express Content Is

• Ariba® Express Content provides buyers “ready-to-use” supplier content for commonly used goods and services via Ariba Ready Certified PunchOut, Level 2 PunchOut Catalogs or highly enriched content CIF catalogs (with images).

• PunchOut and CIF catalogs contain discounted below retail pricing which Ariba will pre-load into the Ariba solution available to Buyers.

• Provides Buyers with ready-to-go, priced below retail, free content that will expand spend coverage and enhance the ROI on Buyer’s P2P program. Pre-enabled into Ariba Procurement solutions

• Ariba Ready tested with Procurement solutions, Ariba Network


Value – WIN/WIN for Buyers/Suppliers


• Rapid Catalog Compliance across a broad set of indirect categories• Free Catalog set-up and refresh and Transaction Enablement for Purchase

Orders (except EDI, cXML)*• Discounted Pricing can potentially lead to unit price savings

• New Business Introductions• Volume Consolidation with Existing Clients• Ariba Ready Certification for Express Content

CustomerAcquisition

CustomerAcquisition

IncreasedExposure

IncreasedExposure

Market-share/New Business

Market-share/New Business

OutpaceCompetitors

OutpaceCompetitors

ImmediateContent

- Rapid Compliance

ImmediateContent

- Rapid Compliance

Potential UnitPrice Savings

Potential UnitPrice Savings

Free Content –Improved TCO

Free Content –Improved TCO

Higher UserSatisfaction

Higher UserSatisfactionBUYER

SUPPLIER

Brief Overview of Existing Suppliers


• Complete line of IBM System x (x86) and BladeCenter servers• Software, Services and Accessories• Ariba clients include Fortune 2000 across range of industries

• Over 100K Periodical titles (Magazine, Newspapers, Journals) • Over 2 Million Book titles from top Publishers e.g. McGraw Hill• Clients include several Ariba clients, 7 of top 10 Fortune 500

• 200K MRO SKUs incl. Janitorial, Safety, Metals, Tools, Hydraulics • Over 55K SKUs in Threaded Fasteners, Anchors, Bolts, Nails, Rods• Multiple Ariba clients incl. Caterpillar, Holcim, Textron, Cummins

• 4000+ SKUs in Electrical, Industrial Controls, Power products etal• 200K SKUs in Interconnect Products, Semiconductors, Passives• Multiple Ariba clients include Honeywell, Caterpillar, Northrop



• Leader in industry since 1969, works with leading manufacturers • Office Furniture, Display Products, Binding Machines & Supplies• Multiple Ariba clients incl. Panasonic, VWR, Camcor, Demco, Indoff

• Minority Supplier in business since 1933• Standard/ Custom Rubber Stamps, Name Plates, Badges/ Banners• Multiple Ariba clients incl. Bank of America, Kaiser, PNC, Schwab

• Leading Supplier in Web-to-Print solutions• Business Cards, Office Stationery, Marketing Communications• Multiple Ariba clients across industries and geographies

• Leader in office supplies from office essentials to technology• 20,000+ SKUS in Office Products, Furniture and Technology• Multiple Ariba clients incl. H J Heinz, Motorola, Morgan Stanley



• World's leader in the production and leasing of postal meters• Provide products and solutions, including digital mailing machines

and complete servicing of their printing fleet• Over 100 ink and toner products

• Lifetime Guarantee• Hundreds of Items Ship Today• Exclusive Products

• Full Sprint-Nextel device catalog with corporate contract discounts• Customized procurement with Tier 1/Tier 2 technical support • Specialized in servicing large, Fortune 500 organizations

• Huge In Stock assortment of material handling, storage, industrial and business products

• High-quality and competitive pricing including on our dependable, value priced Relius Solutions brand products.

• Ariba clients include Caterpillar, Johnson & Johnson and PolyOne

• Huge selection for cell-phone/ PDA accessories, office headsets• Corporate discounted pricing averages 30-40% less than carriers• Multiple Ariba clients incl. Disney, DuPont, Metlife, HomeDepot etal

Category Coverage: Some Coverage in 13 Indirect Spend CategoriesSr. Sample Spend Categories… Supplier Coverage

1 Books, Periodicals, Journals

2 Electrical/ Electronics

3 Office Display Products

4 Office Furniture & Equipment

5Custom Office Products (Rubber Stamps, Nameplates, Badges and Banners)

6 Computer Hardware- Servers, Storage, Support

7Computer Hardware–Desktops, Laptops, Monitors, Accessories

8Print Products and Services (Business Cards, Commercial Print, Custom Forms)

9 Wireless Accessories

10 Industrial MRO and Supplies

11 Janitorial, Material Handling Services

12 Office Supplies

13 Promotional Items46

Buyer Participation


Q&A/Wrap Up


Thank you!


Questions



“Safe Harbor” and Confidential Information Statement

This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials.

UC

Ariba Procurement Content and Ariba Catalog ManagementValerie Blatt, Sr. Director, On-Demand Deployment Services

Dawn Fisher, Senior Catalog Knowledge Expert


Documents

UC Ariba Procurement Content and Ariba Catalog Management Valerie Blatt, Sr. Director, On-Demand Deployment Services Dawn Fisher, Senior Catalog Knowledge