Ariba Network Summary 1. Exchanges between supplier and buyers need to become 100% electronic 2. Invoice business rules deliver PO compliance
PLAN
3. New opportunities for finance optimization are ready to be considered
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 3 Unit 2: Ariba Payment Innovation
Ariba Payment Innovation Table of contents
Unit 1
• Ariba Network
Unit 2
• Ariba Payment Innovation
Unit 3
• Seller Advantage of Leveraging Ariba
Ariba Payment Innovation Consumer payments
Check
Ariba Payment Innovation Consumer payments…
…are experiencing rapid innovation…
Ariba Payment Innovation Consumer payments are simple…
Single transaction
Payment at point of purchase
Payment at time of purchase
Required data captured with payment
Ariba Payment Innovation …Business-to-business (B2B) payments are not
Multiple invoices in a single payment
Payment much later
Credits, adjustments, discounts, and so on
Required data must be added separately
Information = $ £ €
Ariba Payment Innovation B2B payments are stuck in the past
54% use Microsoft Excel for processing support
50-60% complete business transactions by check
65% manually correct remittances
80% process invoices manually
90% manually enter or rekey data
” ”
Issuing and depositing checks cost U.S. businesses between $26 billion and $54 billion in 2010 *
A business check can cost between $4 –$20 *
“ “
*”U.S. Companies Cling to Writing Paper Checks”, Wall Street Journal , March 10, 2014, based on sources from MineralTree and Bank of America. See http://on.wsj.com/1gXF8xW
Ariba Payment Innovation Big Blue, Batman, Betamax and B2B payments
Betamax®
IBM
®
SONY®
Ariba Payment Innovation B2B electronic payment data limits (1)
NACHA The Electronic Payments Association
80 characters TM
Ariba Payment Innovation B2B electronic payment data limits (2)
NACHA The Electronic Payments Association
SEPA Single Euro Payments Area
80 characters TM
Ariba Payment Innovation B2B electronic payment data limits (3)
NACHA The Electronic Payments Association
SEPA Single Euro Payments Area
80 characters TM
140 characters
Ariba Payment Innovation B2B electronic payment data limits – no better than a tweet
NACHA The Electronic Payments Association
twitter
80 characters TM
140 characters
Ariba Payment Innovation B2B payments past: 1970’s innovation
Buyer
Supplier
80-140 Characters
80-140 Characters
Bank
Credit
Bank
Buyer
Connect Data to Payment
Supplier
Ariba Payment Innovation B2B payments present: extract data
Buyer
Purchase orders, invoices, contracts, and receipts
Purchase orders, invoices, contracts, and receipts Invoices status
Supplier
80-140 Characters
80-140 Characters
Bank
Credit
Bank
Buyer
Connect Data to Payment
Supplier
Ariba Payment Innovation B2B payments future: AribaPay – Certain. Secure. Simple.
Buyer
Purchase orders, invoices, contracts, and receipts
Purchase orders, invoices, contracts, and receipts
Payment instructions
Invoices status Rch remittance
Supplier
Track and trace payment status Bank account management
Bank Buyer
Debit
Credit
Integrate Payment with Data
Bank Supplier
Ariba Payment Innovation It’s 2015…Do you know where your vendor bank account info is? ACH (& SEPA) payments require YOU to keep…
1. Capture – Collect and Validate 2. Manage – Updates & Changes 3. Maintain – in YOUR ERP …sensitive bank account
information from your vendors.
Is that your core competency??
Ariba Payment Innovation Major retailer – customer bank account info hacked
Retailer reports bank account info hacked on 9/2/14.
92.96 = $125.49B market cap
90.02 = $121.53B market cap
Market cap loss in 2 hours:
$3.9B
Ariba Payment Innovation B2B payments future: AribaPay – Certain. Secure. Simple.
Buyer
Purchase orders, invoices, contracts, and receipts
Purchase orders, invoices, contracts, and receipts
Payment instructions
Invoices status Rch remittance
Supplier
Track and trace payment status Bank account management
Bank Buyer
Debit
Credit
Integrate Payment with Data
Bank Supplier
Ariba Payment Innovation B2B payments future: AribaPay – Certain. Secure. Simple. AribaPay is a net term B2B payments solution delivering rich remittance, bank account security and fraud protection, and full track and trace visibility via the Ariba Network.
AribaPay is NOT a card offering! Buyer
Purchase orders, invoices, contracts, and receipts
Purchase orders, invoices, contracts, and receipts
Payment instructions
Invoices status Rch remittance
Supplier
Track and trace payment status Bank account management
Bank Buyer
Debit
Credit
Integrate Payment with Data
Bank Supplier
Ariba Payment Innovation Not just payment….but PAYABLES! Working
1. Establish a foundation with invoice automation
Capital
2. Leverage approved payables to optimize working capital management 3. Close the loop with certain, secure, & simple B2B payment Invoice Automation
B2B Payment
Payables optimization occurs at the union of invoice automation, working capital management, and B2B payment connected by a single, unified, & integrated platform… the Ariba Network.
Ariba Payment Innovation Ariba payment innovations
Security, Fraud Elimination, Reduced Risk
Buy Right, Pay Right
Real Supplier Value
Lower Costs/ Increased Savings
• Verify supplier data
• Single P2P process
• Rich remittance detail to
• Lower cost to collect /
• Sensitive data not stored
in-house • Payments tied directly to
verified documentation (invoices, and so on)
visibility for buyers & suppliers • Electronic payment
supports working capital initiatives
easily apply funds • Suppliers can go on-line
or call 24/7 for inquiries and support • Accelerated cash flow
maintain bank account data & pay suppliers • Reduce “first-line” A/P
helpdesk inquiry calls • Increased discounts
• Optimized DPO
Ariba payment innovations enable buyers to optimize working capital, save money, and securely pay suppliers via the Ariba Network, while eliminating the need to maintain supplier bank account information and reducing supplier payment inquiries.
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 3 Unit 3: Seller Advantage of Leveraging Ariba
Seller Advantage of Leveraging Ariba Table of contents
Unit 1
• Ariba Network
Unit 2
• Ariba Payment Innovation
Unit 3
• Seller Advantage of Leveraging Ariba
Unit 4
• Weeks in Review
Seller Advantage of Leveraging Ariba Digital economy is affecting sellers as well landscape is changing
85.3% of buyers go online to research purchases
42%
$31.4 billion online payments for e-commerce to reach, growing at
20%
of all B2B spend is electronic
$212 billion
$40 billion
“things” will be connected
in marketing spend is migrating from print to online
Seller Advantage of Leveraging Ariba
Ariba Business Network for Sellers LEADS
PROPOSALS
CONTRACTS
ORDERS & INVOICES
PAYMENTS
FIND buyers ready to buy
Seller
ACCELERATE the sales cycle IMPROVE customer retention PREDICT and APPLY cash
Buyer
Seller Advantage of Leveraging Ariba Seller profiles
Marketing Marsha
Sales Sam
IT and E-Commerce Marty
Accounting Arlene (and Treasury)
Overwhelming online marketing options Find qualified leads Rapidly changing customer needs/ expectations
Find active buyers
Manage multiple platforms
High processing costs
Get deals closed
Varying customer expertise
Grow business with customers
Increase customer adoption
Unpredictable cash flow
Service internal customers Meet growing demand with fewer resources Dynamic environment
Inadequate remittance detail
Seller Advantage of Leveraging Ariba What is important to them… FIND buyers ready to buy
Marketing Sales IT E-Commerce AR/Treasury
ACCELERATE the IMPROVE customer sales cycle retention
PREDICT and APPLY cash
Seller Advantage of Leveraging Ariba Find buyers ready to buy (1)
SUPPLIER MANAGEMENT ANALYZE
PLAN
SOURCE
CONTRACT
REQUISITION
APPROVE
ORDER
INVOICE
PAY
CONTRACT
CATALOG
SPECIFY
FILL
INVOICE
CASH
ARIBA NETWORK
MARKET
PLAN
BID
CUSTOMER MGMT
Seller Advantage of Leveraging Ariba Find buyers ready to buy (2)
Single access point to publish catalogs to multiple customers
Allowing sellers to:
Discover new business and qualified leads
Grow sales by supporting customer online procurement initiatives Streamline interactions with customers Track and manage all customer catalogs from one place
Seller Advantage of Leveraging Ariba Accelerate the sales cycle & improve customer retention
SUPPLIER MANAGEMENT ANALYZE
PLAN
SOURCE
CONTRACT
REQUISITION
APPROVE
ORDER
INVOICE
PAY
PLAN
BID
CONTRACT
CATALOG
SPECIFY
FILL
INVOICE
CASH
ARIBA NETWORK MARKET
CUSTOMER MANAGEMENT
Seller Advantage of Leveraging Ariba Accelerate the sales cycle – through automation 1
Open Any Vendors Any Protocols
2
Comprehensive All Suppliers, All Collaborative Business Processes
3
Intelligent “Open the Envelope”, Real-Time, Big Data-Driven
Your trading partners
Mobile
“Your Applications”
Order Invoice Status Remittance Advice Discount Proposal Payment Spot RFQ Order Status Request Service Entry Response Scheduling Agreement Release Self- Billing Subcontract PO Outbound Delivery Forecast Delivery Instruction Inventory Status Quality Notification
Order Confirmation Catalog Shipment Notice Invoice/Payment Status Discount Acceptance Spot Quote Order Status Response Service Entry Sheet Supply Chain Invoice Subcon. PO Consumption Proof of Delivery Component Consumption Forecast Response Inventory Status Replenishment Order Quality Notification Response
Web UI Mobile
cXML Paper CSV Email EDI
Seller Advantage of Leveraging Ariba Accelerate the sales cycle – proposal collaboration
Consolidated dashboard to manage proposal responses Distribute/send proposals directly to buyers online
Allowing sellers to:
Support for fair bidding environment View RFP information
Interact with buyers in real-time to respond effectively to RFPs Manage all sourcing events and tasks across all buyer relationships Track and manage proposal activity from a central location
Seller Advantage of Leveraging Ariba Accelerate the sales cycle – contract collaboration
Preapproved contract templates and clauses Store and search all contracts in central repository Contract processing workflows with full audit trail Advanced notification of contract renewal and expiration dates
Allowing sellers to:
Accelerate negotiations and close the sale Eliminate paper contracts and streamline the contracting process Receive advance notification of expiration dates and other key milestones and take advantage of renewal and upsell opportunities
Seller Advantage of Leveraging Ariba Improve customer retention
Single access point for customer interaction
Allowing sellers to:
Central location for managing customer accounts
Dashboard landing page for tracking customer activity and messages
See leads and opportunities Grow sales by supporting customer online procurement initiatives Streamline interactions with customers Track and manage all customer activity from a central location
Seller Advantage of Leveraging Ariba Predict and apply cash (1)
SUPPLIER MANAGEMENT ANALYZE
PLAN
SOURCE
CONTRACT
REQUISITION
CONTRACT
CATALOG
APPROVE
ORDER
INVOICE
PAY
SPECIFY
FILL
INVOICE
CASH
ARIBA NETWORK MARKET
PLAN
BID
CUSTOMER MGMT
Seller Advantage of Leveraging Ariba Predict and apply cash (2)
Manage early payment discount offers
Allowing sellers to:
Manage payment notification and options
Know when and how they are getting paid Set their preferences and get visibility into the payment Take advantage of early payments
Seller Advantage of Leveraging Ariba Ariba seller benefits may include...
FIND BUYERS READY TO BUY
ACCELERATE THE SALES CYCLE
IMPROVE CUSTOMER RETENTION
PREDICT AND APPLY CASH
30% growth in existing accounts
75% faster deal closure
15% increase in customer retention
64% reduction in manual intervention
35% growth in new business
75% order processing productivity gains via cXML
Up to 99% renewal rates
62% decrease in late payments
80% increase in order accuracy through PunchOut
68% improvement in reconciling payments
Thank you
Contact information:
[email protected]
