luc dewinter & rutger frissaer - staples - ariba : from cost to value creations ariba network

Ariba Supplier NetworkStaples : from cost to value creation

June 18 th, 2014

Luc Dewinter, Sr. Business Development Manager

Rutger Frissaer, E-Business Consultant

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It all started with a ribbon…

Staples founder: Tom StembergStaples founder: Tom Stemberg First office superstoreFirst office superstore RevolutionRevolution

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Staples today

• Staples is the world’s premier office products company.

• We’re committed to making it easy for our customers around the globe to buy a wide range of office products, including supplies, technology, furniture, and business services.

• With billions in sales, Staples serves businesses of all sizes and consumers in 26 countries throughout North and South America, Europe, Asia and Australia.

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Our vision

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Our Product Offering – Your Single Source

• Office Supplies (e.g. writing instruments, desk accessories, diaries and sticky notes)

• Paper (e.g. A4 80grams, colored premium for laser and inkjet printing and envelopes)

• IT Consumables (e.g. computer products and ink & toner cartridges)

• IT Peripherals (e.g. tablets, computer accessories, memory cards, etc…)

• Facility Products (e.g. cleaning and hygiene products/break room/safety supplies)

• Business Interiors (a single chair ora large project-managed installations)

• Print Management (business cards, letterheads, envelopes)

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Our brand promise

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Global Coverage

ArgentinaAustraliaAustriaBelgiumBrazilBulgaria*Canada

Russia*Singapore*Slovakia*Slovenia*SpainSwedenSwitzerland*

ChinaCosta Rica*Czech Republic*DenmarkFinlandFranceGermany

Hong Kong*HungaryIndiaIrelandItalyLuxembourgMalaysia*

Mexico*The NetherlandsNew ZealandNorwayPolandPortugalPuerto Rico*

TaiwanTurkey*United KingdomUnited States

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Our value creation

Total lowest delivered cost

•Hard savings through combining purchasing power and product substitutions

•Process cost savingso E-commerce orderingo Ordering behavior o Consolidation of ordering, delivery, invoicingo Control of ordering

(multiple subcategories)o Stock optimisation

•Office Products costs < 2% of the total costs of products and services procured

15% stock value

30% product price

55% process costs

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Staples eBusiness expertise

• Expert in e-Commerce- N°1 in online business after Amazon- N°1 in B2B online business- Several solutions : from Internet ordering

to Connectivity (SAP, Ariba, etc.)-One “look & feel” for all locations

• We process millions of orders a year through the Internet, so we know how to make ordering office products easy

• Staples Webshop serves over 365.000 registered accounts with more than half a million users

• Staples Advantage has eBusiness expertise in every country

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Staples eBusiness figures

Belgium

80% of all orders are processed electronically

6% or 1,5 M€ is processed via Ariba

Staples Belgium is active on ASN since 2003.

We currently have 15 transacting relationships. Global

Over 60% of global sales is processed electronically.

195 transacting relationships on ASN

+ 3.5 M transactions and counting via ASN since start

= 760M$ transaction spent via ASN

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Ariba implementation

Fast Implementation / Easy setup

We target a go-live of a full roundtrip within 1 month

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Ariba / punch out / e-invoice

ERP- vendor data- G/L data

enrich requisition to Purchase Order

generate PO and transmit

receive and process

ERP- vendor data- G/L data

enrich requisition to Purchase Order

generate PO and transmit

receive and process

Ariba Buyer Frontend - account data - user data - ship to data- bill to data

Ariba Buyer Frontend - account data - user data - ship to data- bill to data

Cat

alo

gu

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ayer

CountriesCountries SolutionSolution BackendBackend

Pu

rch

ase

Ord

er

Lay

erE

-In

voic

e L

ayer

ICC Seeburger(Middleware)

ICC Seeburger(Middleware)

Ariba ASN (Middleware)Ariba ASN (Middleware)

EuropeEurope

Country ERP- account data - Stock data - prices- assortment

E2C- Item content

receive and process

generate Response(s) and transmit

Country ERP- account data - Stock data - prices- assortment

E2C- Item content

receive and process

generate Response(s) and transmit

Punchout Setup Request

Transactionss/ Messagess

Purchase Order

Country ERPgenerate invoice

Country ERPgenerate invoice

ICC Seeburger (Middleware)

ICC Seeburger (Middleware)

ARIBA ASN (Middleware)ARIBA ASN (Middleware)

Finance receive and process

Finance receive and process

E-Invoice

Order Response / Dispatch Advise

STAPLESSTAPLES CUSTOMERCUSTOMER

VIE

WO

RD

ER

PA

YD

EL

.

WebshopFrontend - product information

-Item content

WebshopFrontend - product information

-Item content

create basket

final basket

send

send

send

send

sendsend

info

send send send

send send send

sendrequest

ship order deliver order

Basket transmissione.g. Product and price

data

Red: implementation effort = punchoutOrange: potential implementation effort

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The supplier console

Online Tool to manage incoming, outgoing messsages, request reporting,setup customer catalogs, etc…

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The supplier consolePurchase orders overview

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The supplier consoleSent Invoice overview

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The supplier consoleCatalog overview

CIF or Punchout Catalogs

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The Administration Console

Easy way to manage your relationships.

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Example : Staples customer start using ASN

• Spent with Staples (Pharma sector)

- 2012 : 750 € per month

- 2013 : bonding phase after ASN introduction : 2000 € per month

- 2014 : maturing phase 4000 € per month

- 2015 : adding additonal sites using same ASN catalog

• Average Order Value

- 2012 : 109 € (35% of orders < 50 €)

- 2013 : 196 € ( 9% of orders < 50 €)

- 2014 : 225 € ( 6% of orders < 50 €)

• Conclusion : ASN is decreasing indirect costs : less transactions, less delivery, manual PO’s replaced by e-po’s

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Thank you – Q&A

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