Week 2 Unit 1: Ariba iba Sourcing ing Professional
Ariba Sourc Sourcing ing Profe Profession ssional al Table of contents
Unit 1
• Ariba Sourcing Professional Professional
Unit 2
• Ariba Contracts Contracts
Unit 3
• Ariba Procure-to-Pay Procure-to-Pay Part 1
Unit 4
• Ariba Procure-to-Pay Procure-to-Pay Part Part 2
Ariba Sourc Sourcing ing Profe Profession ssional al Table of contents
Unit 1
• Ariba Sourcing Professional Professional
Unit 2
• Ariba Contracts Contracts
Unit 3
• Ariba Procure-to-Pay Procure-to-Pay Part 1
Unit 4
• Ariba Procure-to-Pay Procure-to-Pay Part Part 2
Ariba Sourcing Professional Overview
• Analyze • Source & Track
PLAN
BUY
PAY
1: Arib Ariba a Sour Sourcing cing Profes Professio sional nal
• Negotiate • Contract
• Request • Order & Receive • Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
From a savings pipeline, plan your RFPs or other types of sourcing event and award them.
Ariba Sourc Sourcing ing Profe Profession ssional al Instant expert
Sourcing
It all boils down to a good template and many prospects.
Problem: too many details to handle
It takes lots of energy for a human mind to analyze
Transparency cannot be achieved from file folders
Typically, 30% of the savings are not executed
This means:
Too many shortcuts: to speed things up, fewer suppliers are invited, analysis only focuses on prices, risks are taken Slow and limited scopes: projects restart “from start” each time Lost savings: savings are not “broadcast” to procurement; they remain on paper but are not enforced
What needs to be done
Use technology to deploy templates and enforce usage
Adopt an aggressive aggressive sourcing sourcing pipeline pipeline tracked in the tool
Dare to be aggressive: invite more suppliers, use reverse auctions, track what happens in procurement
Ariba Sourcing Professional What is top class eSourcing? What is top class eSourcing?
Scenarios
Analyze price against score and assign 25% incumbent and minimum 3 suppliers
Reviewer
John to review technical drawing and provide score from 1 to 10
Scores Formulas Extra Costs Prices
0 points for I month 5 points for 6 months 10 points for 1 year
If delivered in more than 5 days, add 1% inventory costs Delivery cost
Price per item
Ariba Sourcing Professional Reporting
Structured Processes
What do you get with Ariba Sourcing?
Templating Tools
Ariba Sourcing
Workflows RFx Quotes & Tenders Auctions Scoring Suppliers
Services
Full Support
Ongoing Support In the tool “Check my Event”
Ariba Sourcing Professional eSourcing – screenshot cascade Reporting & Dashboards RFP Questionnaire Auto-Scoring
eSourcing View in Presentation Mode
Awarding Scenarios Integrated Messaging Find New Suppliers Auctions Project Management Approval Workflows Template Driven
Ariba Sourcing Professional Summary 1. Technology opens the door to more competition and more complex analysis 2. The system will cater to simple and strategic events with different levels of sophistication
• Analyze • Source & Track
PLAN
3. You receive support from Ariba on the content and for the suppliers
BUY
PAY
• Negotiate • Contract
• Request • Order & Receive • Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
Week 2 Unit 2: Ariba Contracts
Ariba Contracts Table of contents
Unit 1
• Ariba Sourcing Professional
Unit 2
• Ariba Contracts
Unit 3
• Ariba Procure-to-Pay Part 1
Unit 4
• Ariba Procure-to-Pay Part 2
Ariba Contracts Overview
PLAN
BUY
PAY
• Analyze • Source & Track • Negotiate
• Contract • Request • Order & Receive • Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
4: Ariba Contracts Auto-generate contracts with clauses and tracking for renewals. Prices can also be published automatically to procurement.
Ariba Contracts Instant expert
Contract Management
I would have written a shorter letter, but I did not have the time. Blaise Pascal
Problem: prepare faster, execute better
It’s not only about the legal agreement; the process, the data, and the renewals must also be managed
If not centralized, contracts are lost in f ile folders
Legal does all the work because of a lack of structure
What needs to be done
This means:
Costs: important contract leakage in procurement
Risks: contracts enter litigation and go into overtime
Inefficiency: high cost legal FTE gets too much involved
Contracts have structured data: manage them in a system, not in folders. Invest time in building your clause library to have contracts auto-drafted.
Assign the tasks of tracking, drafting, and executing of contracts to sourcing FTE with legal oversights.
Ariba Contracts Components
What does a contract entail?
Dates
Items, types, time and material, contract value, SLAs, discounts, extra costs, statement of work Drafting, validation, negotiation, amending, approving, executing, litigation, documenting, versioning Effective from and to, milestones, invoicing structure, renewal, grace period, notification
Types
Renewal, framework, master and sub, parties
Utilization Tasks
Clauses Signature
Risk management
Legal validity
Ariba Contracts Solution Structure Contract Workspace
How is a contract managed?
Attributes Expiration Owner Renewal Amount
Tasks
Department Commodity Product
Team
Reporting
Documents
Searchable Repository
Ariba Contracts Links with procurement
The contract is the bridge
Contract Management
Procurement Catalog items
Sourcing Contract terms and consumption
Ariba Contracts Contact Management – screenshot cascade Document Management Integrated with MS Word Full Version Control Contract Lifecycle Mgt
Contract Management
Project Management
View in Presentation Mode Team & Access Control Message Board + Email Template-driven Full-text Search Reporting & Dashboards
Ariba Contracts Summary 1. A lot of risks can be reduced by letting the system enforce the process 2. You can start managing by exception only
PLAN
3. The contract is the link to procurement compliance
BUY
PAY
• Analyze • Source & Track • Negotiate
• Contract • Request • Order & Receive • Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
Thank you
Contact information:
[email protected]
© 2015 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduc ed or transmitted in any form or for any p urpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as the ir respective logos are trademarks or registered trademarks o f SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the ma terials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated co mpanies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this docu ment is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
Week 2 Unit 3: Ariba Procure-to-Pay Part 1
Ariba Procure-to-Pay Part 1 Table of contents
Unit 1
• Ariba Sourcing Professional
Unit 2
• Ariba Contracts
Unit 3
• Ariba Procure-to-Pay Part 1
Unit 4
• Ariba Procure-to-Pay Part 2
Ariba Procure-to-Pay Part 1 Overview
3: Procure-to-Pay PLAN
• • • •
Analyze Source & Track Negotiate Contract
• Request • Order & Receive
BUY
PAY
• Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
Everything needed to order, receive, and reconcile with the invoice. And for the supplier, be able to transact electronically and view incoming payments.
Ariba Procure-to-Pay Part 1 An analogy And US tracks have the same gauge as British tracks
Illustration in another context:
(4 feet 8.5 inches – 143.5cm)
And this came from this
These are smaller than desired because they had to pass through this
So a bureaucratic measure made in imperial Rome survived all the way into space.
Is your procurement the result of time or has it been efficiently designed?
While the gauge of European chariots came from these
Ariba Procure-to-Pay Part 1 Instant expert
Ariba Procure-to-Pay
No one can whistle a symphony. It takes a whole orchestra to play it. H.E. Luccock
Problem: prepare faster, execute better
Strategic buying, procurement, accounts payable, and finance all have their own tools
Suppliers are only used passively
More complex procurement process is left on paper
What needs to be done
This means:
Leakage: divide to conquer… it’s too easy to find loopholes Costs: non-compliance, missed opportunities, and lack of adoption all drive costs and maverick spend Bad Governance: It’s very difficult to audit structurally
Concentrate and refocus: processes, technology, tools, and people Collaborate internally: AP & Procurement must work together Shift work to the supply side: catalogs, invoice compliance, pricing quotes, collaboration
Ariba Procure-to-Pay Part 1 Before and after… “Analog” vs “Digital” Process
Online
Online
Online
Online
Online
Online
Online
Online
Search
Agreed
ePO
Confirmed
Ship Notice
GRN
Invoice
Remittance
Send purchase order
Check if supplier agrees
When will it be delivered?
Confirm receipt
Reconcile invoice
Inform about payment
Identify what you need
Have it approved
Ariba Procure-to-Pay Part 1 Needs of each group But as a BUSINESS
Reduce Costs 1. Quick process to request 2. Orders are approved and sent 3. Exactness in delivery
Achieve best cost/quality ratio • Improve efficiency – maximize FTE use • Impose compliance throughout the process •
Minimize Risks •
Procurement
• •
1. No penalties for late payments 2. Prove governance was achieved 3. Minimize risks and abuses
Order and receive in time Apply and track contracts Address legal risks (corruption, fraudulent charges, theft, etc.)
Report Track spend, categories, maverick, results • Track people, efficiency, duration, compliance, achievements •
•
Synthesize for decision making, financial reporting, planning
Ariba Procure-to-Pay Part 1 Contact Management – screenshot cascade In Catalogue Self Configured Forms List of suppliers Ask vendor’s input
Procurement Dynamic Forms View in Presentation Mode
Formula Pricing Form Reporting
Ariba Procure-to-Pay Part 1 Summary 1. Compliance should be enforced by the system 2. Each teams need to collaborate 3. When all in the same tool, everybody speaks the same language.
PLAN
• • • •
Analyze Source & Track Negotiate Contract
• Request • Order & Receive
BUY
PAY
• Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
Thank you
Contact information:
[email protected]
© 2015 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduc ed or transmitted in any form or for any p urpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as the ir respective logos are trademarks or registered trademarks o f SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the ma terials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated co mpanies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this docu ment is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
Week 2 Unit 4: Ariba Procure-to-Pay Part 2
Ariba Procure-to-Pay Part 2 Table of contents
Unit 1
• Ariba Sourcing Professional
Unit 2
• Ariba Contracts
Unit 3
• Ariba Procure-to-Pay Part 1
Unit 4
• Ariba Procure-to-Pay Part 2
Ariba Procure-to-Pay Part 2 Overview
PLAN
BUY
PAY
• • • •
Analyze Source & Track Negotiate Contract
• Request • Order & Receive • Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
4: Technology Options Understand the options available from the different modules and mix possibilities for the buyerside and the Marketplace.
Ariba Procure-to-Pay Part 2 Identifying the scope
Supplier Portal
Catalogs
Buying Tool
Tenders
Spot Buys
Approvals
Auctions
Budgets
Contracts
Receiving
Invoice Management Credit Memos Approvals
Marketplace Electronic PO, Invoices, and More
Ariba Procure-to-Pay Part 2 Cloud procurement menu Catalog
The Cloud Procurement Menu
A
Procurement Tool Requesters
Name: Ariba Procure-to-Pay Invoice Mgmt Tool Accounts Payable Marketplace
Catalog B
On your ERP(s)
Name: Ariba Procure-to-Order
Procurement Tool Requesters
On your ERP(s)
Invoice Mgmt Tool Accounts Payable
Marketplace Cheat sheet: What’s in the cloud with those options? A. B. C. D. E.
Everything Procurement & Network Catalog & Network Invoice Process & Network Network Only
Catalog C
Name: Ariba Procurement Content + Ariba PO and Invoice Automation
On your ERP(s)
Marketplace
D
E
Name: Ariba Invoice Professional
Invoice Mgmt Tool Accounts Payable Marketplace
Name: Ariba PO and Invoice Automation Marketplace
Procurement Tool Requesters
Invoice Mgmt Tool Accounts Payable
Catalog On your ERP(s)
Procurement Tool Requesters Catalog
On your ERP(s)
Procurement Tool Requesters
Invoice Mgmt Tool Accounts Payable
Ariba Procure-to-Pay Part 2 Importance of integration – standard offering
Solutions with only a few “sockets” available…
When you use a solution “built for integration”…
Ariba Procure-to-Pay Part 2 Ariba/SAP packaged integrations Network Transactions
Standard Integrations
Master Data to P2P
P2P Transactions to ERP
ERP Transactions to P2P
Ariba Procure-to-Pay Part 2 Delivered integration programs with SAP/Ariba Standard Services
All Native SAP – Pre-Built
Ariba Procure-to-Pay Part 2 Technology options – summary 1. Enriching existing systems 2. The Marketplace fits everywhere 3. It is all related to how integrated your teams are
PLAN
BUY
PAY
• • • •
Analyze Source & Track Negotiate Contract
• Request • Order & Receive • Reconcile
• Send & Track Orders • Control Invoices • Optimize Payment
Thank you
Contact information:
[email protected]
