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B e s t P r a c t i c e s i nCa t a l o g M a n a g em e n t
& Su p p l i e r En a b l em e n t
Beth Arvidson(Solutions Manager, Procurement)
Cathal OSullivan(Solutions Manager, Services
Procurement)
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PayProcure
A r i b a Pr o c u r em e n t
F l e x i b l e s u p p o r t o f t h e b u s i n e s s n e e d s
Network Compliance Workflow Approvals Analysis Reporting Knowledge
Procure to Pay (P2P)
Services Procurement
Travel & Expense
Procurement Content ERP
ERP Invoice & Pay
ERPProcure to Order (P2O)
SELECT
GOODS &
SERVICES
COMPLIANCE
& PO
RECEIVE &
RECONCILE
INVOICE
& PAY
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A r i b a Pr o c u r em e n t
T h e o n l y so l u t i o n d e l i ve r in g i m m e d ia t e s a v i ng s o n t o t a l in d i r e c t s p e n d
Immediate Savings
Positive ROIs within 6 months Self funding
Agile response to business needs
SaaS - Fast implementation/Quick time to value/Low IT impact
Compliance
Drive operational efficiency - process, price and supplier
Strong user adoption through a single, B2C-like interface
Unify disparate ERP systems
Total Spend Management
Complete coverage for the procurement of all goods and services
The worlds largest supplier network 200,000+
End-to-End Spend Management Suite and Global Services
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Ex p a n d i n g y o u r d e l i v e r e d s a v i n g s
How do you Stack Up?
Sources: Customer reports based on public customer statements. Hackett Group, Delivering on the Evolving ValueProposition of Procurement 2008; Aberdeen e-Procurement Benchmark 2008.
Enhancement opportunities:
Establish end user metrics andgoals around usage.
Actively track usage levels andareas of usage.
Clear leadership and ownership fordelivered savings.
Mandate usage with pre-determined enforcement steps
Proactively introduce new catalogsbased on usage levels.
Deliver increased levels of end usertraining.
Evaluate coverage of goods andservices.
Annual Savings
Ariba Customer R: 16%
Ariba Customer A: 11%
Ariba Customer L: 10%
Analyst: Aberdeen 7.3%
Analyst: Hackett 4.4%
1 5 %
External Savings Triangulations
1 0 %
5 %
Analyst: AMR 17%
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Se s s i o n Go a l
Share best practices and recommendations
Content management
Supplier Enablement
Learn from customer experiences
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A g e n d a
Content Management
Why content is critical?
What are your content management options? Recommendations \ Conclusion
Supplier Enablement
Why supplier enablement is critical?
Recommendations \ Conclusion
Customer Story: DeloitteCustomer Story: Rock Tenn
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Content management is the foundation upon
which every e-Procurement initiative must bebuilt. If this foundation is unstable orincomplete, the rest of the project will
crumble
- Aberdeen Group
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Wh a t a r e c o n t e n t m a n ag em e n t
o p t i o n s ?
CIF
Catalogs loaded on your e procurement systemPunchOut
Catalog residing on supplier site. Accessiblethrough e procurement system
Level 2 PunchOut
All benefits of PunchOut plus single view acrossmultiple suppliers.
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Wha t A r e Y o u r Ca t a l o g Op t i o n s ?
Op t i o n 1 : Ca t a l o g I n t e r c h a n g e Fo rm a t (C I F)
Rapid deployment
Greater compliancecontrol
Low setup cost andcomplexity
Catalog uploaded to your eProcurement system
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Wha t A r e Y o u r Ca t a l o g Op t i o n s ?
Op t i o n 2 : Pu n c hOu t
Automated updatesof price/availabilitydata
Productconfiguration andcustomization
Large number ofcatalog items
Interactive catalogs residing on supplier Website,
accessible through your eProcurement system
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Wha t A r e Y o u r Ca t a l o g Op t i o n s ?
Op t i o n 3 : L e v e l I I Pu n c hOu t
All benefits ofPunchOut plusadditional
Consistent viewacross multiplesuppliers
Auto updated priceand availability
Interactive catalogs residing on suppliers Websites,searchable across multiple suppliers
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Con t e n t Ca t a l o g (C IF )
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
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Pu n c hOu t Ca t a l o g
Why Use PunchOut?
Latest pricing and products
Supplier site value adds
No administration
Reduced costs
Considerations Supplier readiness
Different user interface acrosssupplier sites
Product/pricing control
Catalog Size
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L e v e l I I Pu n c hOu t
Why Use Level II PunchOut?
Consistent user interface
Real time price/availability Easy comparison of items/price
Direct punchout to item
Considerations Cross site comparison
Content file maintenance
Supplier readiness
Kit, favorites support
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Bu y e r s Po i n t o f V i e w : Wh i c h O p t i o n
B e s t F i t s Y o u r Re q u i r em e n t s ?
Control over Spend
High Number of CatalogItems
Search across Mult ipleSuppliers
Rapid SupplierEnablement
High User Adoption
Timely, Accurate and CompleteInformation
CIF PunchOutLevel 2
PunchOut
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Su p p l i e r s P o i n t o f V i ew : Wha t W i l l
Y o u r Su p p l i e r Re c om m e n d ?
CIF PunchOutLevel 2
PunchOut
Ability to Direct Buyersto Shelf or Item Level
Opportunity to IncreaseWallet Share
Ease of Updating
Ease and Speed of
Implementation
Flexibility inMerchandising
Ease of Integrating toeBusiness Website
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B e s t P r a c t i c e s i nSu p p l i e r En a b l em e n t
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Enabling and managing supplier catalogs and transactionalcapabil ities has long been the Achilles heel of eProcurementInitiatives the [2004] benchmark shows supplier enablementas an activity that is vital to the success of eProcurementinitiatives
- Aberdeen Group
26% of the companies interviewed cited Supplier enablementand content management as an unplanned headache
- Forrester Research
Dont underestimate the amount of support youl l need whenimplementing supplier adoption is difficult
- Utility Company
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Why Su p p l i e r En a b l em e n t i s c r i t i c a l ?
Vendor Data Dispersed through Org.
Disparate, inconsistent vendor data. Aggregation \
Rationalization not feasible
Incomplete and inaccurate data
Process automation and associated savings notrealized
Lack of Incentive to E-Procurement
Project delays. ROI impacted.
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Su p p l i e r En a b l em e n t Ch a l l e n g e s
B t P t i f S l i
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Be s t Pr a c t i c e f o r Su p p l i e r
E n a b l em e n t ?
Choose wisely
Utilize the knowledge of proven suppliers
Plan well. Be prepared for surprises.
Have a clear project plan that includes: roles &
responsibilities, time lines, contingency.
Over communicate
Keep suppliers in the loop for everything. Dont giveyour suppliers mixed messages.
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Ch o o s e w i s e l y
Choose experience
Utilize the knowledge of proven Suppliers
Leverage the experience and work that suppliers havegained in previous enablement projects.
Provide your business rules and strategy upfront.
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P la n w e l l
State all requirements up front.
Clear Requirements and Specifications, and limit"special requirements". Standardize.
Be aware that suppliers have e-commerce limitationsand may not be able to meet all your needs.
Multiple integrations are being worked onsimultaneously. Allow time for resources to beallocated in order to meet your implementationschedule.
Make sure IT is on board and available beforeengaging the supplier.
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Ov e r Com m u n ic a t e
Be sure everyone in your company (Purchasing, IT,Finance) is on the same page. Don't give yoursuppliers mixed messages.
Include all parties who will be involved in theintegration on the initial requirements call;
Keep the suppliers informed of changes to the projectplan
Listen to your suppliers. They may have solutions that
will benefit you!
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Cu s t om e r S t o r y D e l o i t t e
Yadira MaciaseEnablement Specialist, Strategic
Procurement Operations
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De lo i t t e S t a t s
Deloitte is the brand under which dedicated professionals in independent firms throughout
the world collaborate to provide professional services to selected clients. These firms aremembers of Deloitte Touche Tohmatsu (DTT), a Swiss Verein.
44,000 Employees
1,200 Unique Requisitioners per Quarter
Managed Spend of $2 Billion Ariba Spend of $111.6 Million
YTD 46 PO Suppliers
4 Temp Labor suppliers in ACP with 15 catalog skill sets and one ad hoc
8 IT Contract Labor suppliers in ACP with 36 catalog skill sets, one ad hoc skill set withpreferred suppliers and 1 ad hoc skill set with ad hoc supplier (quick enablement)
10 Punch-out catalogs (Level 1)
17 CIF catalogs one which we are working to transfer to Punch-out
2 CIF & Punch-out supplier
5 Ad hoc only suppliers
Change Orders - We allow change orders for all but flowers, stationery, businesscards, office supplies.
We havent activated electronic invoicing for PO suppliers, only for the Labor Services
categories (time sheet and PO flip)
2 6
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L e s s o n s L e a r n e d /B e s t P r a c t i c e s
Communicate the timeline to your tech team.
Confirm if other deployments or projects affect your timeline (black out dates)
Engage the supplier
Share the objectives with the supplier, they can provide experience .
Supplier Limitations
Technology, resources and their own pipeline PLAN
Give yourself enough time (plan for the worst)
Communication, Communication, Communication
Never assume
Other competing initiatives and availability of resources impacted scope and timeline
Have a check list, re-confirm milestones
Category Management teams need to take ownership
It is still your category even when enabled in Ariba
User Adoption Create easy to follow training materials, offer refresher courses
Dedicated support email box for any inquiries
2 7
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Cu s t om e r S t o r y Ro c k T e n n
Antoinette FaggionPurchasing Manager
Ro c k T e n n a n d A r i b a P2 P
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Ro c k T e n n a n d A r i b a P2P Ro c k T e n n w e n t i v e w i t h A r i b a P 2P n Ma r c h o f 2 0 0 8 . S i n c e t h e g o -l i v e d a t e R o c k T e n n h a s s e e n
t r em e n d o u s m p r o vem e n t s n u s e r c om p l ia n c e o r d e r e f f i c i e n c i e s a n d s i t e -a c c e p t a n c e .
When RockTenn launched Ariba P2P in March 2008,we had:
One site using Ariba
Less than 50 suppliers enabled
Approximately 10 catalogs loaded intoproduction
Today, approximately a year and a half after ourlaunch date, RockTenn has:
67 sites using Ariba across 5 divisions
1870 suppliers enabled
19 catalogs (6 small CIFs, 3 large CIFs, 10punch-out) in production and more in ourtest environment
29
Electronic POs v Manual POs March 08 Sept 09
Su p p l i e r En a b l em e n t Ch a l l e n g e s
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Su p p l i e r En a b l em e n t Ch a l l e n g e sR o c k T e n n h a d t o f a c e a n d o v e r c om e s e v e r a l o b s t a c l e s w h e n e n a b l in g s u p p l ie r s fo r A r ib a P 2 P.
D e ve l o p in g a c l e a r s t ra t e g y f o r s u p p l ie r e n a b lem e n t c a n y o u h e lp a v o i d som e o f t h e c h a l l e ng e s w e
f a c e d .
In order to properly allocate the supplier enablement efforts, RockTenn identified 3 primary types ofsuppliers when implementing Ariba:
Suppliers that were currently using Ariba and familiar with the systemLarge suppliers unfamiliar with AribaSmall supplier unfamiliar with Ariba
Size of supplier
Resistance
tochange
H
LH
Guide supplier through
process, hand-hold, and
monitor progress
Guide supplier through
process quickly and monitor
to ensure compliance
Advise suppl ier of process
and guide as needed (walk
then run manual, E PO, E
Invoice)
Quick Enable Process
The majority of RockTenn suppliers
to be enabled were upper left quadrant vendors
Keys to Successful Supplier and Catalog Enablement:
Define a clear strategy for catalog selection, testing, implementation, and trainingHave a central repository for training materials, process flows, etcHave a central supplier request portal if multiple users/groups can request suppliers
Wherew
e
wantedtobe!
B e s t P r a c t i c e s & L e s s o n s L e a rn e d
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S u p p li e r E n ab l em e n t a n d Ca t a l o g D e p lo y m e n t w a s a e a r n in g p ro c e s s fo r R o c k T e n n . N ow t h a t w e
h a v e o v e rc om e t h e c h a l l e n g e s s u r ro u n d i n g t h e s e a c t i v i t i es w e a r e a b l e t o m o v e o n a n d s t a r t
r e a l i zi n g t h e a d d i t i o n a l b e n e f i t s o f A r i b a P 2P .
Lessons Learned
Define your strategy for what an Ariba supplier is
Document your supplier set-up process clearly
Timely supplier set-up is important to increase user adoption
Interns are a cost-effective option to staff short-term needs for initial supplier set-up Establish a strategy and communication plan for suppliers for the purpose of addressing fees
associated with Ariba
Best Practices
Now that RockTenn has standard processes and procedures established for Ariba SupplierEnablement, we are trying to leverage the P2P system to improve efficiency and purchasingdecisions. To do this, RockTenn has identified several Best Practices in order to fully realize thebenefits of the Ariba Supplier Network:
Prioritize effort with highest value payback: high volume high SKU count multiple sites
Leveraging Ariba capabilities to identify optimal transaction method:Pcard Invoice Conversion Electronic Transaction
Utilizing BPOs and Contracts to drive value (bottom-line benefit) Drive efficiencies for RockTenn and our suppliers Automated 3-way match (ePO, eInvoice, smart receiving) Utilize ASN Supplier Discovery tool to discover new suppliers
31
Ad d i t i l R
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Ad d i t i o n a l Re s o u r c e s
Improving User Adoption and ContractCompliance with Your Existing ProcurementPlatform Whitepaper
Ariba Catalog Management Service
datasheet
Level 2 Punchout Value and Benefits
datasheetwww.exchange.ariba.com
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Q& A