Boost Your Productivity Through an Innovative E-Sourcing Process Using Ariba Discovery

Jonathan Fernande, Enterprise Adoption Consultant EMEA, Ariba Discovery, SAP Ariba (SAP)
Chris Wang, Senior Director, Product Marketing, SAP Ariba (SAP)
Yvonne Paternó, Global Procurement e-Sourcing and Contract Manager, Atos / June 14, 2016
Boost Your Productivity Through an Innovative
E-Sourcing Process Using Ariba Discovery
Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is the confidential information (per the contract between our companies), and must not
be further disclosed, as stated in the confidentiality clause of that contract. This presentation
contains only intended guidance and is not binding upon SAP or Ariba to any particular course of
business, product strategy, and/or development. Its content is subject to change without notice.
SAP and Ariba assume no responsibility for errors or omissions in this document. SAP and Ariba
shall have no liability for damages of any kind including without limitation direct, special, indirect,
or consequential damages that may result from the use of these materials.

Agenda
3Public© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Introductions
Ariba Discovery: Insights
Learnings from Atos
Q&A

Introductions
• Jonathan Fernande
Enterprise Adoption Consultant EMEA, Ariba Discovery, SAP Ariba (SAP)
 Chris Wang
Senior Director, Product Marketing, SAP Ariba (SAP)
 Yvonne Paternó
Global Procurement e-Sourcing and Contract Manager, Atos

B2B e-commerce is evolving rapidly1
1. Information from a Frost & Sullivan study (http://ecommerceandb2b.com/b2b-e-commerce-trends-statistics/)
2. This number is exclusive of EDI
E-commerce is huge.
B2B e-commerce will hit US$12 trillion in sales worldwide by 2020,
up from $5.5 trillion in 20122.
B2B e-commerce sales almost double B2C.
Customer-facing front-end B2B e-commerce will reach $559 billion –
that number excludes EDI transactions.
We are facing the consumerization of B2B.
80% of companies implementing B2B e-commerce believe that their
customer expectations have changed due to B2C practices.
Buyers want enhanced search.
76% of B2B buyers listed enhanced search as one of their top three features,
with 48% of B2B sellers citing enhanced search as a top technology priority.
B2B buying decisions are key.
57% of the buying process is done prior to engaging with sales.
B2B sites should be sales tools assisting the buying process.

Driving compliance
(3 bids and buy)
Specialized requirementsNew commodity
• Compliance in lower-priority commodities
outside strategic sourcing coverage
• Company-wide requirements for 3 bids
• Traditional search tools that do not identify
e-business technical abilities, minorities,
veterans, women-owned resources, and
green certification
• Expertise difficult to find
• Enterprises not yet invested in it
Unanticipated rush ordersSecondary sourcesLow-cost country sourcing
• Cycle time of traditional process
too long to address stock-outs or
quality problems
• Approved vendor lists quickly becoming
outdated for service markets where
personnel turnover is high
• Higher demand for supplier risk
management
• Lack of enterprise resource or expertise
ASAP!
High importance of supplier discovery
Send
Quote
Automation

What can this mean for your business?
TACTICAL spend
• 20% of indirect spend
• Both recurring and nonrecurring
spend, often undermanaged
• 80% of suppliers
• 1–4 weeks
STRATEGIC spend
• 80% indirect spend
• Planned and managed
spend
• 20% of suppliers
• 4+ weeks
Source: “Spot Buy Software: A Modern Approach to Managing Tail Spend”. The Hackett Group. 4/2016.
1. 47% of revenue is spent on goods and services (industry average) based on SAP Ariba
industry commodity spend profiles and benchmarking from Ariba Spend Visibility.
2. AT Kearney, “Indirect Procurement: Too Many Missed Opportunities.”
3. “Shining a Light on ‘One-Off’ Purchases.’” Procurement Leaders, 2016.
Potential spend coverage for Ariba Discovery
in Global 2000 companies
$18T
Addressable
spend²
$9T
Tactical
spend3
US$38.4T
Revenue1
47% of Global 2000
revenue is spent on
goods and services
(industry average).
$1.8T
Ariba Discovery
opportunity
50% of addressable
spend is indirect
(industry average).
20% of indirect spend is
tactical spend (that can
be addressed by Ariba
Discovery).
Suppliers
20% 40% 60% 80% 100%
$$$$
$$$
$$
$

Traditional supplier discovery process
Suboptimal trading partner decisions
Is time consuming
Is resource intensive
Provides poor quality of information

“I’m looking for…” “I can offer that!” “Perfect match!”
Ariba Discovery: matching you with suppliers who offer products
and services you need
 >US$5 billion in buyer postings
 20,000 categories
 >4,000 buying organizations
 2 million suppliers in network

Quick and easy process
Describe your buying needs.
It takes less than 10 minutes.
Save time and resources
Describe your buying needs in a posting,
and get matched to suppliers – it’s free!
Fast results
Receive quotes from interested
suppliers and compare multiple bids.
Selection of the best
Choose the supplier that best meets
your needs.
Find relevant new suppliers faster and easier
than through traditional search methods.

Strong supplier community
2 MILLION+ SUPPLIERS

Find suppliers for common – or uncommon – things
Specialty retailer: $3M,
Pizza slice box and hot wing box
Major university: $75K,
Championship rings
Consumer products company $1M,
Shelf-stable fish
Specialty retailer: $500K,
Mannequins
Luxury retail brand: $500K,
Global mystery shopper
Hong Kong buyer: $1M,
Straight and safety pins

Find suppliers for common – or uncommon – things
Major U.S. retailer: $1M,
Artificial Christmas trees
Food distribution company: $1M,
Peanuts in shells
Consumer products company: $1M,
Toilet paper
Specialty retailer: $500K,
Pickles
Major retailer: $500K,
Organic dog treats
Beauty salon: $50K,
Human hair

Free!
Post your buying needs
in 10 minutes, and get matched
to suppliers at no risk
Key benefits
Fast and easy
Save up to 90% time and 75%
cost finding and qualifying
suppliers
Effective
Lower your cost by 15%, reduce
lead time, and improve quality
Trusted
Join other buyers who post
over US$5 billion per year in
business volume
Interactive
Communicate with buyers
and prospects in real time
Integrated
Easily bring suppliers into your
Ariba Sourcing, Ariba Procure-to-
Pay, or Ariba Spot Quote solution
projects from the start

Additional savings with more suppliers
Savings versus number of bidders
0%
5%
15%
20%
30%
25%
10%
2 3 4 5 6 7 8 9 10 11 12 13
Number of participants
Averagesavings Average number
of participating
suppliers
Achievable savings
opportunities with
additional suppliers
Source: Ariba OND Sourcing Customer Averages. SAP Ariba Services Experience.

How Ariba Discovery fits into the SAP Ariba solution suite
Supplier Management
Plan Request Approve Order Receive Manage PayContractSourceBuyers
Sellers
Source and contract Request and buy Invoice and pay
Customer management
Confirm Fulfill Invoice Monitor CashContractMarket Bid Specify
Strategic
spend
Tactical
spend
SAP Ariba procurement solutions
Ariba Spot Buy (with Ariba Procure-to-Pay, Ariba Procure to Order,
and Ariba Procurement Content)
Ariba Sourcing with Ariba Discovery
SAP Ariba sourcing solutions
Ariba Quote Automation
SAP Ariba procurement solutions

Ariba Discovery at Atos
Yvonne Paternó
e-Sourcing and Contract Manager
Atos Procurement

Atos procurement facts & figures
FY 2015
19
250 procurement experts operating in 44 countries working on over 3000 bids
covering 94% of total costs of sales pipeline
80%
spend with < 500 suppliers
95%
purchase orders coverage15,000
active suppliers
6,305
savings related activities
having an impact in 2015
7,748
e-purchase orders
500,000
invoices in Nessie
6,776
e-invoices
150
sub-categories
€565m
spend through e-sourcing
€3,6bn
active TCV in contract
management
350+
e-catalogues
€4.79bn
total spend in 2015
(excl. newest acquisitions)
50%
reduction in shop approval steps
180,000
purchase orders
Savings and synergies
delivered on time and to
plan for acquisitions

Atos procurement recognition
FY 2015
20
Procurement
Leaders Winner
Procurement
Excellence
Procurement
Leaders Finalist
Award for Innovation
Spanish AERCE
Awards
Procurement
Innovation Award
SAP Quality
Awards
Gold Winner (FR)
Silver Winner (EMEA)

Atos procurement tools –
SAP Ariba solutions + SAP SRM + SAP ERP
21
SAP ERP 6 + enhancement package 7
2011
2012
2014
2015
2015
2010
SAP SRM
AtosProcurementTools(Ariba)

Simplified e-sourcing process by central support team
Central
e-Sourcing
support
Advise
buyer in
strategy
Set-up
event
Manage
event
Download
results
Support
next
steps
22
The central e-Sourcing and Contract
Management support team
(since 2016 – 4 people)
• Supports and shares experience with 200+
buyers and suppliers across all countries
• Ensures all are fully trained about the process
and benefits
• Seeks to continuously improve the process by
keeping up to date with new developments,
benchmarking and by analysing user’s
feedback

Supplier Discovery Posting process
Buyer
e-Sourcing Support
Lead
Approver
Involved
Responsibilities:
Provide
complete
data
Set-up &
publish
posting
Answer
supplier
questions
Deadline for
supplier
responses
Download
and provide
supplier
responses
Analyse
responses
and involve
stakeholders
Provide
decision
( )
if requested
Open for response
Provide finalised
Supplier
Discovery
Posting
Template
In case of
supplier
questions the
e-Sourcing
support will
regularly upload
them to
SharePoint and
request the buyer
to answer them.
The e-Sourcing
support will
upload the
supplier
responses to
SharePoint.
The e-Sourcing
support will
publish the
posting and
inform the buyer
about the
e-Sourcing
project folder on
SharePoint.
The e-Sourcing
support will import
selected suppliers to
Atos Procurement
Tools. With a click all
supplier information
will be accessible
and the supplier is
ready for e-tendering,
e-negotiating and / or
contracting.
23
SAP Ariba support

Supplier Discovery Post figures in FY 2015
24
IT
Training (e.g., PM, languages)
Subcontracting
Recruitment services
Fairs
Postage and couriers
43 Discovery posts
Open for an average of 9.6 days
Posted by 4 people for 26 buyers
In general Examples of categories
Number of posts Number of responses
Text

Ariba Discovery success story - e-learning (1/2)
25
Phase 1: Supplier Discovery Post was published on November 7th, for 1.5 working weeks
36 potential suppliers responded
Phase 2: e-RFI was published to 35 potential suppliers on January 8th, 2015 and closed on
January 13th, 2015
34 potential suppliers from Supplier Discovery Post / 1 incumbent supplier
23 potential suppliers responded to 18 questions
Phase 3: e-RFP was published to 11 potential suppliers on January 13th, 2015 and closed on
January 23rd, 2015
10 potential suppliers responded with their pricing
Phase 4: Supplier Selection and Contract Signed
A supplier that responded to the Supplier Discovery Post was selected as they offered a better quality
of service as the incumbent supplier.

Ariba Discovery success story - e-learning (2/2)
Comment of responsible buyer:
“Ariba Discovery was important for us, because we wanted to create competition in the RFP
and find a new provider than the one already in place, which was not very qualitative.
e-Learning design providers can be small companies that are spread across the world.
36 potential suppliers signalled their interest and heated up the competition.
The selected supplier was not known by Atos before the Supplier Discovery Post.”
Benefits:
Quality of services have been improved
26

Ariba Discovery success story - professional services
Phase 1: Supplier Discovery Post was published for 2 weeks
26 potential suppliers responded (from Africa, Asia, Europe, North America)
Phase 2: e-RFP was published to 7 potential suppliers and was in the status “open for response” for 4 weeks
4 potential suppliers from Supplier Discovery Post, 2 known suppliers and 1 incumbent supplier
6 potential suppliers responded with their pricing
Phase 3: Presentation and Negotiations
3 potential suppliers were invited to present their proposal including negotiations afterwards
Phase 4: Supplier Selection and Contract Signed
A supplier that responded to the Supplier Discovery Post was selected as they offered a better price compared to
their competitors.
40% savings compared to the incumbent supplier
27

A Discovery posting…
Should remain open for at least 5 working days to give potential suppliers sufficient time to respond
Can be published anonymously
Can be published simultaneously while the e-tender or e-negotiation is already open for response:
buyer can find new suppliers while the existing suppliers are already preparing their responses.
Additionally we can invite existing suppliers to apply pressure on suppliers
SAP and SAP Ariba solutions should work together seamlessly
A few pointers
Good to know!
28

Q&A

Thank you Contact information:
Jonathan Fernande
Enterprise Adoption Consultant EMEA, Ariba Discovery, SAP
Ariba (SAP)
jonathan.fernande@sap.com
Phone: +420 (23472) 5316
Chris Wang
Senior Director, Product Marketing, SAP Ariba (SAP)
cwang@ariba.com
Phone: (+1) 415-786-0888
Yvonne Paternó
Global Procurement e-Sourcing and Contract Manager, Atos
yvonne.paterno@atos.net

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