nauc09.ariba procurement.best practices in supplier enablement and content

7/24/2019 NAUC09.Ariba Procurement.best Practices in Supplier Enablement and Content

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2009. Ariba, Inc. All rights reserved.

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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2 2009. Ariba, Inc. All rights reserved.

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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3 2009. Ariba, Inc. All rights reserved.

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%



Se s s i o n Go a l

Share best practices and recommendations

Content management

Supplier Enablement

Learn from customer experiences



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



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



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.



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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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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1 1 2009. Ariba, Inc. All rights reserved.


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)

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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

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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

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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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3 0 2009. Ariba, Inc. All rights reserved. 30

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

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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
http://www.exchange.ariba.com/http://www.exchange.ariba.com/


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