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Increasing Customer Retention Through Automation B2B Automation and How To Do It © 2013 Ariba, Inc. All rights reserved.

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Page 1: Slideshare tweet demo

© 2013 Ariba, Inc. All rights reserved.

Increasing Customer Retention Through Automation

B2B Automation and How To Do It

Page 2: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 2

What is Automation?

machine-to-machine

PunchOut

cXMLEDI

server-to-server

B2B integration

back-end integration

Page 3: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 3

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

Page 4: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 4

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

Page 5: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 5

Today’s Presenters

Petra BurssensHead of Global eProcurement

Chad CrookDirector of Integration

Page 6: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 6

What We’ll Cover

• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned

Page 7: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 7

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.

Page 8: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 8

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

Page 9: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 9

What We’ll Cover

• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned

Page 10: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 10

eProcurement Components

ePO

Electronic Purchase Order

eCatalogue

Static/hosted

PunchOut

eInvoice

Electronic Invoice

Page 11: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 11

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)

Page 12: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 12

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

Page 13: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 13

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

Page 14: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 14

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

Page 15: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 15

What We’ll Cover

• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned

Page 16: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 16

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

Page 17: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 17

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

Page 18: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 18

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

Page 19: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 19

What We’ll Cover

• Company Background• What Is Automation? • Our Approach to Automation• Benefits to Buyers and Sellers• Best Practices and Lessons Learned

Page 20: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 20

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

Page 21: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 21

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

Page 22: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 22

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

Page 23: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 23

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

Page 24: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 24

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

Page 25: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 25

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

Page 26: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 26

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

Page 27: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 27

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

Click to Tweet!

Page 28: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 28

Today’s Presenters

Petra BurssensHead of Global eProcurement

Chad CrookDirector of Integration

Page 29: Slideshare tweet demo

#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

Page 30: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 30

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

Page 31: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 31

Technical Considerations for Automation

• Security• Business Process• Infrastructure• ERP or Accounting Systems• Connect Once Trade Many• Up-Time• Compliance (PCI, Legal Invoicing)

Page 32: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 32

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

Page 33: Slideshare tweet demo

#AribaLIVE

© 2013 Ariba, Inc. All rights reserved. 33

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

Page 34: Slideshare tweet demo

Patent-Pending Atom®

Technology

Centralized Control

Distributed Execution

Instant Load Scalability

No Single Point of Failure

Distributed Architecture with Centralized Management & Monitoring

Page 35: Slideshare tweet demo

© 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

Page 36: Slideshare tweet demo

© 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

Page 37: Slideshare tweet demo

Dell Boomi and Ariba NetworkCloud-to-cloud Deployment

© 2013 Ariba, Inc. All rights reserved. 37

Cloud apps

Data

Data

Atom Cloud

Page 38: Slideshare tweet demo

© 2013 Ariba, Inc. All rights reserved. 38

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