Post on 17-Jan-2016
transcript
UC
Chandra Yeleshwarapu and Rick Collison
© 2011 Ariba, Inc. All rights reserved.
Ariba Procurement SolutionsWhat's New, What's Coming, Best Practices
Agenda
• Procurement State of the Union What’s New
– Procure to Pay and Procure to Order– Procurement Content– Services Procurement
What’s Coming– Product Roadmap– Vision
• Summary and Q&A
© 2011 Ariba, Inc. All rights reserved. 2
Economy ScorecardRate of change is increasing
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Responding to Changing MarketCPO Priority: Focus on spend management outcomes
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1
2
3 Slower Investment
Tight budgets
Conserve Cash
Cash flow focus
Risk and Compliance
Supply Risk
Renegotiate Contracts
Spend Mgmt Effectiveness
1
2
3
Top Drivers Top Priorities
The CPO Situation
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Drive more savings
5
“Can you give me some shade?”
What are your top business drivers in 2011?
• Ariba / ISM (Institute for Supply Management) Survey conducted February 23, 2011
Normal channels have less to giveYou are here
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The Business Commerce Problem…Investments Inefficiencies Remain Between Companies
+ Average number of trading partners: 134,500(Source: Forbes Global 2000)
+ Transactions completed manually: 80%(Source: Celent Communications)
+ Paper-based invoices and payments: 85%(Aite Group: Global Cash Management: Going Green. 2009)
• Costs of ineffective collaboration: $650 Billion(Source: Basex Research- “Information Overload” Feb, 2008)
Inefficient Commerce Collaboration is Costing G2000 $338 Billion(Source: Ariba Benchmarking)
Source Procure Pay
Sell FulfillInvoice &
Collect
Wastedtime andresource
Lostnegotiation
history
Poorvisibility intocompliance
Manualad hoc
collaboration
Delayedpayment;
Cash“mis-mgmt”
Limitedvisibilityand risk
Buyer
Seller
ERP or Niche ERP
CRM ERPOrder Mgmt.
The Impact on Procurement
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• Poor control of spend• Poor visibility into what
is being spent and with which vendor
• Lack of standardization across business units and geographies
• High maverick spend• Spend not compliant with
negotiated terms• Poor visibility and management
by post-spend auditing• Failure to meet commitments
increases risks and costs• Multiple contracts and terms
with the same vendors• Duplicate processes and
global disparities
7
Challenges Business Impact
Efficiency Prize in Procurement
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What are your targets for improving P2P processing costs within the next two years:
Source: Defining and expanding the value proposition of P2P survey, ISM, Forrester, Ariba; February 2011; relative population sample.
The Approach: Holistic
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What is your top Procurement initiative for 2011?B
ett
er p
roce
sses
an
d a
uto
mat
ion
Source: Defining and expanding the value proposition of P2P survey, ISM, Forrester, Ariba; February 2011. Entire registrant population of 1,137.
Multi-yearstrategic plan withenterprise goals
Internal andexternalcollaboration
Compliance Training &
investment
Procurement Business Processe-Procurement
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Solution Ariba Commerce Cloud
BUY MANAGECASH SELL
COMMUNITY
CAPABILITIES
Peer CollaborationPeer Collaboration Partner EcosystemPartner EcosystemWorld’s Largest Trading NetworkWorld’s Largest Trading Network
Domain ExpertiseDomain Expertise Execution SupportExecution SupportValue EnablementValue Enablement
TECHNOLOGY
ApplicationsSpend Mgmt. | Collaborative Finance Mgmt. | Sales Acceleration Mgmt.
ApplicationsSpend Mgmt. | Collaborative Finance Mgmt. | Sales Acceleration Mgmt.
PlatformAnalytics | Security | Performance | Integration | Mobility
PlatformAnalytics | Security | Performance | Integration | Mobility
Ariba Procurement: Compliance, Collaboration, Visibility
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Automate AP:
Compliant ERP Ordering:
Require ERP receipt or payment:
Control goods, services, across all ERP’s:
Why It Matters:
Up to 80% of spend is Services:
• Recapture Savings Leakage: Supplier, Price, Term• Improved Processes and Visibility• Lower resource needs: short- and long-term across all ERPs• Flexible many-to-many networking = long-term system efficiency• Allows for strategic cash management
• Proven value
Supplier Network
Ordering Approval Fulfillment Receive Reconcile SettleContractSource
Collaboration on the Network is the Key
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“We feel the system is beneficial from the upfront control process. We also think the system is very easy to use. It's intuitive and our users have been able to adopt it quickly.”
– Bob Fair, Director of Global Procurement OperationsMcGraw Hill
13
ERPERP
SupplierSupplier
Supplier
Supplier
Buyer
Sourcer
Buyer
Buyer
Mgr
Any Buyer
Any Supplier
Any ERP
Total Process Control
Comprehensive Spend Management
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Supplier on Boarding
Time and Labor
Payments
Plan to Procure
Capacity Constraints & Sourcing Splits
Extended Enterprise – On Time Delivery
Catalog Management
Source to Procure
Bids and Auction
IndirectService
Direct
Commodities & Options
Direct
Best Practice - Procurement 2011
• Process Efficiency Hyper Collaboration and Usability Expand Spend Categories under process control
• Spend Visibility Control contract leakages and identify the savings
• Supply Risk Management Use the Ariba Cloud Commerce, Expand spend
categories and implement across geographies
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UC
What’s New
© 2011 Ariba, Inc. All rights reserved.
Disciplined Innovation ApproachCombining all customer experience into the journey
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Functionality and usability testing
Early access programs and design partnerships
Feature surveys
connect.ariba.comOn-site customer visits
Advisory councils and user groups
Common Code Line
On-Demand Releases
9s59s5 10s110s1 10s210s2 Future ReleasesFuture Releases
Thanks for Making Ariba the Leader
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Ariba Procurement Leader
What’s new in Procurement?Theme – Process Efficiency and Usability
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Procurement Content
Procure to Pay • Determine Account Type by Item Price
• Denial by Approver in Parallel Chain
• Mass edit of Partial Items
• Support Flexfields in Receipt Import
• Reporting - Accounting Contract facts
• Respect User ship to and Deliver to in requisitions
• New Language support – Swedish, Dutch, Danish, Norwegian
• SRM 7 Certification
• Catalog Self Service
Services Procurement • Collaborative Requisitioning
Determine Account Type by Item Price
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• We support determining account type based on commodity and the spend
• This enhancement allows users to determine the account type by price of the commodity
10s2 SP1, P2P, P2O
Account Type PolicySpend ≤ $1,000 Expense AccountSpend > $1,000 Capex Account
Since spend is $5000, it will be Capex Account
Account Type PolicyPrice ≤ $500 Expense AccountPrice > $500 Capex Account
Since price is $10, it will be Expense Account
Example RequisitionItem per unit price = $10Quantity = 500
Denial by an Approver in Parallel Chain
• Earlier, even if Archie denied the requisition, Gene could approve the requisition without knowing that Archie had already denied it
• The requisition was eventually denied• Now, the approver in the parallel chain cannot
approve this requisition
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10s2 SP1, P2P, P2O
Catalog Self Service – 1 of 2
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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
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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
Catalog Self ServiceNew Process
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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
Collaborative Requisitioning
• Description Ability for the buyer to collaborate with suppliers on all requisition types
• Features Extends collaboration to catalog and non catalog items (deployed on P2P, P2O, APC) Can enforce X Bids and a Buy on any type of requisition (deployed on P2P, P2O, APC,
Services Procurement) Quick Enablement Collaboration Request
• Benefits Buyer can negotiation with supplier on any type of requisition, X bids and a buy can be enforced Suppliers no longer need to be on the AN to receive a Collaboration Request
• Examples Buyer has a standard catalog item (Widgets at $10 a unit) from Supplier XYZ. They can
collaborate with Supplier XYZ and 2 other suppliers on this item to see if the supplier has the item in stock and to negotiate a lower price.
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Procurement Track Overview
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Sr. No Title Presenter Time
1. Collaborative Procurement Cathal O’Sullivan Monday April 114:45 to 6:00
2. Ariba Procure to Pay and Procure to Order Sybel Bevington Tuesday April 121:30 to 2:45
3. Ariba Payment and Invoice Management Chris Chase Tuesday April 123:15 to 4:30
4. Ariba Network Order Management Achim Voermanek Tuesday April 123:15 to 4:30
5. Ariba Supplier enablement Olaf Schrader Tuesday April 124:45 to 6:00
6. Best in class approval rules Leslie Martensen Tuesday April 123:15 to 4:30
7. Ariba procurement content and catalog management Dawn Fischer Tuesday April 124:45 to 6:00
UC
What’s Coming
© 2011 Ariba, Inc. All rights reserved.
Ariba’s New Release ModelGuiding Principles
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Ariba’s Future Release VisionMore improvements behind the scenes
“Cloud Cadence”
11s1 (Spend Vis, Sourcing,
SIPM, Contracts)
11s1 (Spend Vis, Sourcing,
SIPM, Contracts)
11s2 (Procurement & Invoicing)
11s2 (Procurement & Invoicing)
11s3 (Ariba Network)
11s3 (Ariba Network)
11s - Series 12s - Series
12s112s1
12s212s2
12s312s3
13s113s1
13s213s2
13s313s3
14s114s1
14s214s2
14s314s3
13s - Series
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What’s coming in Procurement?Theme – Network & Usability
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Procurement Content
Procure to Pay • Enhanced accounting information in contracts
• Improved Budget Management
• Improved e-mail notification
• Enforce Minimum and Maximum order size from contract
• Handle Old and hanging POs
• Adhoc shipping address in user profile
• Improve Operational Reporting
• Catalog Search
• Catalog Reporting
Services Procurement
• Enhanced Contingent Labor operational reports
• Time Sheet Supplier upload
How to Get Involved and Influence Direction
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• Get involved on ariba.exchange.com
• In addition to User Groups, other forums include venues such as our Advisory Council, customer surveys, beta programs and design partnerships, and functionality and usability testing
• Get involved in the early access program before each release
• Volunteer to provide feedback to the Solution Manager for your product
UC
Vision Discussion
© 2011 Ariba, Inc. All rights reserved.
Trends
• Data explosion requires new navigation paradigm• Consumer technology trends impact the way
business is done• Procurement organizations have myriad
operational models
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#1 Data Management and RetrievalEnterprise Data Growth & Enterprise Search
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Skimming the SurfaceData Explosion
Information Maze
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Where is it?• Desktop
• Intranet
• Internet
Access?• Security
• Navigation
Relevance?• Role
• ContextRich and
actionable?
Find the InformationGo right then left and then
right, then left …..
Take decision based on inadequate data ……
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# 2 Consumer Technology Trends Are Changing the Way Business Is Done
Then
Now
• Broader access to data• Social networking going mainstream• Increased collaboration between companies • Information provided contextually
Matching Services
Access to Content
Mobile Computing
CommunicationNetworking
Solution:Enterprise Search & Collaboration
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Multiple Sources Distributed Information
Internal
Extended
Enterprise
Outside World
# 3 Trends in ProcurementEmerging models need Flexibility in Procurement
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• Integration
• Extensions
• Deployment
Solution:Flexibility & P2P Automation
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Business Process Automation1. Direct Spend, Service Spend2. Invoicing and reconciliation3. Contract and terms
Overlay With Network & Collaboration1. Social Network and collaboration2. Network Operations3. Add on Functions
Ease of Integration with legacy applications
In SummaryFocus on process efficiency
• Collaboration is the key to process efficiency Use the Ariba Cloud Commerce, Expand spend
categories and expand to other geographies Hyper Collaboration and Usability
• Ariba is committed to improving solution usability and process efficiency Control contract leakages and identify the savings Expand Spend Categories under control
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Questions
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“Safe Harbor” Statement
This information reflects the status of Ariba solution planning as of April 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.
© 2011 Ariba, Inc. All rights reserved. 44
UC
Chandra Yeleshwarapu and Rick Collison
© 2011 Ariba, Inc. All rights reserved.
Ariba Procurement SolutionsWhat's New, What's Coming, Best Practices