© 2012 Ariba, Inc. All rights reserved.
Ariba Network
Seller Enablement is a PROGRAM,
not a project
Session 2
Elements for consideration in a successful
Supplier Enablement Program
© 2012 Ariba, Inc. All rights reserved. 2
Resources
Stakeholder Management
Program Cadence
AN
Administration• Transaction Rules
• Supplier Maintenance
• User Account Maintenance
• Maintain Supplier Portal
• Enablement Documents
Communication• Internal Approvals if
Necessary
• Supplier Go Live
Notifications
• Internal Communications
Training• Training Material Upkeep
• Supplier Training
• End User Training
Supplier
Engagement• Complete Upload File
• Maintain Tracking Tasks
• Trigger Tasks
• Monitor Review Progress
Data Collection• Obtain Supplier Information
• Update Vendor Master
Reporting• Track Supplier Status’
• Invoice Reporting
• PO Reporting
• Score Card Metrics
Compliance• Supplier Enforcement
• Business Process (end user)
Enforcement
Testing• Send Test PO’s
• Validate Incoming Invoice
• Supplier Feedback
• Validate Exceptions
• Re-Test
Resources: Critical Program Elements for a
Buyer
Buyer
Resources: What are the key coordination
points for your Network Lead?
© 2013 Ariba, Inc. All rights reserved. 4
NETWORK LEAD
Define goals
and objectives
Approve
Network
Strategy
Define
Policies and
Procedures
Implement
Policies and
Procedures
Program
Evaluation
Executive
Sponsor
Procurement
Accounts
Payable
IT
Continuous
Improvement
X X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Training X
Selecting your Network Lead is a critical aspect of
Network Adoption Success.
X
Resources: What should the Network Lead
expect from the various departments?
© 2013 Ariba, Inc. All rights reserved. 5
Executive
Sponsor
*Procurement
*Accounts
Payable
IT
• Approve the goals and objectives
• Assist in gaining access, buy-in, and support to
Procurement/AP/IT/Training as the program progresses
• Market the successes of the program internally
• Define and implement seller escalation process
• Define and implement seller testing process
• Define and implement seller “go live” process
• New vendor addition process
• Maintain rule changes and log ins
• Coordinate vendor master data collection
• Define and implement seller escalation process
• Update Vendor Master Records
• Collect W-9 as appropriate
• Support collection of vendor master data
• Troubleshoot during seller testing process
• Implement seller “go live” process
*Depending on your organization, Strategic Sourcing, Tax, and Legal will need to support some aspects of these responsibilities.
Resources: What skills and competencies
are required for the Network Lead?
• Ability to influence others
• Project Management Skills
• Problem solving skills
• Facilitation skills
• Expert level understanding of business systems specific to internal business processes
© 2012 Ariba, Inc. All rights reserved. 6
Example buyer team organizational charts
© 2012 Ariba, Inc. All rights reserved.
7
Network
Enablement
Lead
Buyer
Stakeholder
Buyer
Stakeholder
CPO -
Sponsor
IT
StakeholderAP
Stakeholder
CFO
CEOCEO
Network
Enablement
Lead
Buyer
Stakeholder
Buyer
Stakeholder
Director,
Procurement
AP
StakeholderIT
Stakeholder
Director IT
Sponsor
CFOCFOCPOCPO
Director AP
Network
Enablement
Lead
Network
Enablement
Lead
Buyer
Stakeholder
Buyer
Stakeholder
IT
StakeholderAP
Stakeholder
Director, AP
Sponsor
VP, Finance
CPO CFOCFO
CEOCEO
Procurement
AP
Matrix
Elements for consideration in a successful
Supplier Enablement Program
© 2012 Ariba, Inc. All rights reserved. 8
Resources
Stakeholder Management
Program Cadence
Purpose of Buyer Stakeholder Session
• Customer’s often embark on a Collaborative Commerce journey without fully understanding why and without key internal support.
• The purpose of a Buyer Stakeholder Session is to share the following with key stakeholders:♦ Here’s what you bought – Solution Overview
♦ Here’s why you bought it – Corporate Agenda
♦ Here’s your corporate stance – Compliance Policy
♦ Here’s your responsibility
• The goal is to conclude the session with:♦ Awareness of the Flight Plan and stakeholder acceptance
♦ Understanding and support of the Compliance policy
♦ Expectation of support for supplier escalations
© 2012 Ariba, Inc. All rights reserved. 9
Logistics of a Stakeholder Sessions
• Who?♦ Procurement representative
♦ AP representative
♦ IT representative
♦ Training representative
• When?♦ Just before campaigning to the sellers will begin
♦ Ongoing throughout the program
© 2012 Ariba, Inc. All rights reserved. 10
Example agenda for a Buyer Stakeholder
Session
• Introductions Executive Sponsor/CEx
• Corporate Initiative Executive Sponsor
• Ariba Network Overview CEx
• Compliance Policy Overview CEx
• Key Stakeholder Expectations Executive Sponsor
• Seller Value Proposition OverviewSE Lead/NG
• Lunch/Break
• Electronic Invoicing Demo SE Lead/NG
• Hands-on Training activity SE Lead/NG
• Q&A CEx/Executive Sponsor
© 2012 Ariba, Inc. All rights reserved. 11
Copyright 2013 Page 12
About this Project - Example
• Includes all Spend categories with the exception of:♦ Government
♦ Charities
♦ Utilities
♦ Freight
• Includes all divisions with the exception of Charter Services
• Will result in the automation of our PO and Invoice processes as well as increase spend under Catalog management. These processes will complement our current Sourcing and Contracting practices.
• Go-Live is scheduled for June, 2012
Copyright 2013 Page 13
Corporate Goals for Collaborative
Commerce - Example
Within 18 months:
• 95% addressable Spend under Management
• Less than 25% of supplier transactions via paper
• Invoice-to-Pay cycle time at 60 days for 95% of invoices
• 75% reduction in inbound supplier calls to AP
• Improved contract compliance and 50% improvement on realization of contractual volume discounts
• 25% improvement on realization of payment term discounts
Corporate Compliance Policy - Example
© 2012 Ariba, Inc. All rights reserved. 14
During this process we can expect:
• 30% of suppliers will require Buyer follow-up at some point in the process
• 70% of suppliers will enable within 4 months
• 50% of suppliers will transact within 6 months of enablement
Diligence and timeliness of response will improve our enablement results.
We will hold suppliers accountable for program compliance.
Your Role in Our Success
© 2012 Ariba, Inc. All rights reserved. 15
• Confirm current and immediate future business with targeted suppliers on Flight Plan.
• Discuss the initiative and Corporate Compliance policy with suppliers.
• Distribute POs via the Ariba Network only.
• Do not circumvent the electronic invoicing process.
• Ensure that all new contracts include the Collaborative Commerce clause.
• Ensure that you are using the updated RFx templates that include our Collaborative Commerce expectation.
• Follow-up promptly to any escalations from Network Lead.
Your Role in Our Success
© 2012 Ariba, Inc. All rights reserved. 16
Know where to go for questions and escalations:
• Non-Compliance
• New Supplier Setup
Jane Doe – Buyer Supplier Enablement; [email protected]
• Supplier Questions
Buyer Supplier Enablement team; [email protected]
• Ariba Enablement/SMP Questions:
SE Lead/NG name; [email protected]
Elements for consideration in a successful
Supplier Enablement Program
© 2012 Ariba, Inc. All rights reserved. 17
Resources
Stakeholders
Program Cadence
Supplier Enablement Framework
© 2012 Ariba, Inc. All rights reserved. 18
Strategy
Design
Communication
Plan
Technical
Build/Test
Supplier
Campaigning
Go Live
Cutover
• Buyer Goals and Objectives
• Defined program KPIs
• Network Enablement Strategy
• Network Rules
• Adapter mapping
• Buyer Compliance Policy
• Flight plan completion
• Seller communications
• Internal communications
• Seller escalation process
• Buyer Stakeholder training
• System build
• EDI/cXML mapping guides completed
• Unit Test
• Integration Testing support
• Buyer project notification letter sent
• Seller contact and business validation
• AN Value proposition
• Seller Training
• Escalation Process
• Build in production
• Data transfer
• Go live strategy per
supplier group
• Confirmation and initiation
of next wave of sellers
• Alignment on weekly
cadence
• Quarterly results review
Next Wave
Planning
Example Adoption Timeline
© 2012 Ariba, Inc. All rights reserved. 19
Wave 1
Wave 2
Wave 3
Wave 4
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Wk 14Wk 13 Wk 15 Wk 16 Wk 17
Project Notification
���� Seller Introduction, Seller Training, Seller Ready,Close Sellers
����
Project Notification
���� Seller Introduction, Seller Training, Seller Ready
Project Notification
���� Seller Introduction, Seller Training, Seller Ready
Project Notification
���� Seller Introduction, Seller Training, Seller Ready,
���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ����
Steering
Committee
Communication is key
• Communicate with your suppliers
• Communicate with your employees
• Communicate with leadership teams
• The message has 3 points : ♦ “We are changing the way we do business”
♦ “This change is not an “exercise” or “short –term project”. This program represents fundamental change to our business and is not temporary i.e.; we will not return to a paper based process after our Ariba Network deployment.
♦ Every employee and supplier , regardless of role, is expected to understand how they are impacted and do their part to ensure the success of the program .
© 2012 Ariba, Inc. All rights reserved. 20