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© 2013 Ariba, Inc. All rights reserved.
Increasing Customer Retention Through Automation
B2B Automation and How To Do It
#AribaLIVE
© 2013 Ariba, Inc. All rights reserved. 2
What is Automation?
machine-to-machine
PunchOut
cXMLEDI
server-to-server
B2B integration
back-end integration
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Many Different Interpretations
0%
20%
40%
60%
80%
100%
Have Automated
Believe They Have
Automated*
* Are actually doing:• Emailed POs • Manual data entry
through the portal
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Why Automate?
Buyers Sellers
• Increased order accuracy
• Increased invoice accuracy
• Faster cycle time• Fewer disputes
• Increased customer satisfaction
• Improved shopping experience
• Greater order accuracy • Higher on-time payment
rates
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Today’s Presenters
Petra BurssensHead of Global eProcurement
Chad CrookDirector of Integration
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What We’ll Cover
• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned
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About Merck Millipore
*EMD Millipore in the USA and Canada
Merck Millipore*, a division of Merck KGaA, Darmstadt, Germany, offers solutions that enable scientists
to conduct life science research easily, efficiently, and economically.
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Merck Millipore Credentials
Europe38%
Asia, Africa, Australasia27%
Latin America8%
North America27%
2011 Sales by RegionIndustry Sector
Number of Employees
Revenues 2011
Manufacturing Operations
Number of Products
Number of Customers
Life Science Tools
~ 10,000 Employees
~ EUR 2.4 Billion
26 Sites Worldwide
> 60,000 Products
~ 1 Million
Number of Countries
67 Countries
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What We’ll Cover
• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned
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eProcurement Components
ePO
Electronic Purchase Order
eCatalogue
Static/hosted
PunchOut
eInvoice
Electronic Invoice
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Our eProcurement Vision
• To become the recognized partner and leader in helping our customers:
• Manage spend• Deliver significant transactional efficiency
• Through the rapid deployment of easy-to-use electronic procurement solutions such as:
• eCatalogues • Electronic Purchase Orders (ePO)• Electronic Invoices (eINV)
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eProcurement Value Pyramid
Incremental Revenue Growth
Scientific Collaboration(24/7 access to Merck Millipore content)
Transaction Efficiency (Merck Millipore and Customer)
Customer Retention
incr
easi
ng c
usto
mer
intim
acy
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A History of eProcurement
2010
2009
2008
2007
2006
2005 and before
2011 expected
0 605040302010
Massive decline in number of completed projects until 2008
Reactive Technical Approach
Proactive SalesApproach
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Enablement Transformation
Our Business Commerce Management Evolution & Roadmap
2003-2009:• Randomly non -
dedicated approach• First relationships
via Ariba
2009-2011:• More strategic
proactive approach with dedicated ePro team
• Prioritization of projects
• Training of Sales presenting benefits
Since 2011• Strategic and
focused approach including a fully dedicated support team
• Stronger focus on eInvoicing
• Combined MM eProcurement
• Applying lessons learned
Phases of Merck Millipore Evolution
Reactive
Proactive
Innovative
Colla
bora
tive
Com
mer
ce
Busi
ness
Val
ue
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What We’ll Cover
• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned
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Solution Portfolio for Our End Customer
Customer Merck MilliporeeCatalogue
Static/hosted
PunchOut
Awareness Less calls requesting portfolio information
Full transparency to portfolio
Correct item number/price
Correct information in order
Accurateproduct data
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ePO
electronic Purchase Order
Solution Portfolio for Our End Customer (cont.)
Customer Merck Millipore
Proof of posting
Automatic entering in system
Data flow between ERP system
No manual touch
No manual touch
Transaction efficiency
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eInvoice
electronic Invoice
Solution Portfolio for Our End Customer (cont.)
Customer Merck Millipore
No chasing of paper invoices
No resending of paper invoice
Receipt
Invoice accessible in system
Proven reduction of DSO
Payment
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What We’ll Cover
• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned
#AribaLIVE
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Stay in Line: Be Most Efficient
• eProcurement components are often requested separately, leading to:¨ Inconsistencies in the process¨ Delays through false data (content/price)¨ Inefficiencies while implementing
ePOeCatalogue eInvoice
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Step 1: eProcurement Team
• Owner of global eProcurement channel and activities within Merck Millipore
• Primary contact for eProcument-related questions¨ Customer¨ Sales¨ Third-party providers¨ Other internal customers
• Partners with the support team
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eProcurement Team Since Q4_2009• Business Development Manager (BDM)
¨ Front-office operations¨ “Work around the customer”
– Market analysis– Prospecting– Relationship Management (customer visits/sales trainings)
• Project Manager (PM) = Key contact¨ Back-office operations¨ “Coordinate projects”
– Driving projects to completion – Relationship Management (third party)– Process Optimization
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Step 2: Support Team Since Q2 2012• Located in customer service organization
¨ Optimal skill set• Essential functions covered
¨ Static/hosted catalogues– Creation and maintenance
¨ PunchOut – Set up/testing
¨ eConnection – Set up/testing
¨ Integrated IT support– Ongoing development work
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A Dedicated Approach
eProcurement isGLOBAL
and requires100% DEDICATION
eProcurement Team
Support Team
per g
eogr
aphy
dist
ribut
ed o
ver a
ll ge
ogra
phie
s
• Qualify• Drive • Complete
• Build• Maintain• Troubleshoot
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7 Key Points to Take Home
• eProcurement needs dedication and ownership¨ 100% FTE in Sales and Support
• Project Managers are key¨ One single point of contact
• eProcurement is teamwork ¨ Alignment of customer and supplier side
• Every customer is unique¨ Listen to determine best solution for both parties
• No bits and pieces!¨ Take a structured approach starting with the catalogue component
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7 Key Points to Take Home (cont.)
• Align your activities with internal key directions¨ Get your internal stakeholders on board
• A strong partner like Ariba speeds up your success
¨ Standardize your approach
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Results* (5-year period)
• 49 active customers on Ariba today¨ Up from 39 in 2007
• 40% growth in accounts over 5 years• 5 accounts > 60% in transaction value
• 84% cXML/punch-out adoption rate
• 286% growth in invoice volume representing a 168% increase in invoice value
*Millipore only
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Today’s Presenters
Petra BurssensHead of Global eProcurement
Chad CrookDirector of Integration
#AribaLIVE
© 2013 Ariba, Inc. All rights reserved. 29
50 – 99
<1000
Ariba Integration OptionsIn-house Technical Capability
EDI CSV
>300
>100
1200
combined transactions monthly
ortransactions annually invoices
monthly
orinvoices annually documents
annually
• High volume of transactions
• Existing EDI infrastructure
• Invoice only• High volume of
transactions• Lack infrastructure for
cXML/EDI• Requires manual effort to
upload to Ariba Network
• High volume of transactions• On-demand based
Integration via ERP/Package to Ariba Network
• No need for additional infrastructure/software
• Dell Boomi-supported SaaS and on-premise applications ¨ Sage Peachtree¨ Intuit Quickbooks¨ Microsoft Dynamics
• Other ERP/packages supported can be built from scratch
Ariba
cXML
>100
1200
combined transactions monthlyor
transactions annually
• High volume of transactions
• Human readable data structure
• Recommended if not already integrated
• Existing integration capability
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Why Does Automation Make Sense?• Electronic communication makes full integration with
your Supply Chain possible• Electronic communication is:
¨ Operationally efficient¨ More accurate (45-60%)¨ More repeatable¨ Less expensive (60-75%)¨ Increased customer satisfaction¨ Secure
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Technical Considerations for Automation
• Security• Business Process• Infrastructure• ERP or Accounting Systems• Connect Once Trade Many• Up-Time• Compliance (PCI, Legal Invoicing)
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Ariba’s Offering to Platinum Sellers
Key contact in UK (same time zone!) taking care of all issues, monthly update calls
Experts of all kinds (technical, marketing, etc.) to support
Frequent meetings with other “Platinum Sellers” to exchange ideas
Account Managers for Strategic Sellers
Services and Training Resources
Seller Steering Committee
24x7 Global Support
Global helpdesk to sort out basic issues for sellers and their customers
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Dell Boomi Integration Services
PO/INV
Supplier
Supplier
Supplier
DB
HTTPS
cXML
DB / HTTPS
Supplier
Boomi Atom
Boomi Atom
Supplier
FTP / HTTPS
Boomi Atom
Supplier
Supplier
Supplier
Boomi Atom
Buyer
Buyer
Buyer
PO/CO
Boomi Atom
Supplier
Supplier
Boomi AtomINV
DB
INV /INV
Status
Patent-Pending Atom®
Technology
Centralized Control
Distributed Execution
Instant Load Scalability
No Single Point of Failure
Distributed Architecture with Centralized Management & Monitoring
© 2013 Ariba, Inc. All rights reserved. 35
Clo
ud a
pps
On-
prem
ise
128-bit encryption(metadata only)
DataData
External firewall
Dell Boomi and Ariba NetworkOn-premise Deployment
© 2013 Ariba, Inc. All rights reserved. 36
Dell Boomi and Ariba NetworkHybrid Deployment
Clou
d ap
psO
n-pr
emis
e
128-bit encryption(metadata only) Data
DataData
External firewall
Data
Dell Boomi and Ariba NetworkCloud-to-cloud Deployment
© 2013 Ariba, Inc. All rights reserved. 37
Cloud apps
Data
Data
Atom Cloud
© 2013 Ariba, Inc. All rights reserved. 38
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