How to Craft a World-Class Commerce Program with Your Suppliers - SID 51263
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This document discusses how to craft a world-class commerce program with suppliers using digital collaboration. It outlines how SAP can help companies develop and run supplier enablement programs to maximize success. The benefits of digital commerce networks for both customers and suppliers are described, such as improved process efficiency, cost reductions, and sales growth. Successful strategies for supplier onboarding onto digital networks through active and light enablement approaches are also presented.
How to Craft a World-Class Commerce Program with Your Suppliers - SID 51263
- 1. PUBLIC Dominic Atkinson, Christoph Guettinger, and Johan Hedborg August 2017 How to Craft a World-Class Commerce Program with Your Suppliers
- 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Commerce Collaboration Goes Digital SAP Ariba Solutions and Ariba Network Winning Network Adoption Strategy Benefits for Customers and Suppliers Agenda
- 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Success in today’s fast-moving global economy depends increasingly on seamless collaboration across all stakeholders within a value and supply chain. Rapidly adopting digital business networks and realizing the superior value they deliver are key to staying ahead of the competition. Why care about digital commerce collaboration? 1980 1990 2000 2010 2020+-1970 US$8.0 trillion are exchanged through e-commerce annually 2x self-reported expected increased usage of B2B networks in 12 months 25% of e-commerce volume is conducted through business networks “More than 60% of CEOs expect 15% to 50% of their earnings growth in the next five years to come from technology-enabled business innovations.” McKinsey study Mail Phone Manual communications Fax EDI vans Early electronic communications Direct B2B connections E-mail Internet communications Corporate portal Single-process solutions Collaborative business applications Business networks Collaborative business communities
- 4. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Few organizations can effectively target and onboard thousands of suppliers in a short time frame. At SAP we do this everyday. We’ve helped develop and run thousands of supplier enablement programs over the last 17 years and will share that knowledge and expertise with you to maximize your success. Digitalizing the end-to-end process for buyers and suppliers Trading partners Your systems million Companies trillion In annual commerce million Documents million Catalog items million Leads annually sent to sellers buyer supplier 2.7+ 1.3+ 130+ 195+ 34+
- 5. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Commerce Collaboration Goes Digital SAP Ariba Solutions and Ariba Network Winning Network Adoption Strategy Benefits for Customers and Suppliers Agenda
- 6. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Order* Discount Proposal Invoice Status Remittance Advice Payment Spot RFQ Order Status Request Service Entry Response Scheduling Agreement Release Forecast Inventory Status EDI E-mail Web UI cXML Paper CSV Subcontract PO Outbound Delivery Order Confirmation Catalog Shipment Notice* Invoice*/Payment Status Discount Acceptance Spot Quote Order Status Response Service Entry Sheet Supply Chain Invoice Component Receipt Component Consumption Forecast Response Inventory Status Intelligence Automated, real time, Big Data-driven Comprehensive All suppliers, all collaborative business processes, all geographies Open Any vendors, any ERP system, any protocol Any 2.8M companies $1.3T in commerce 220+ currencies 21 languages Ariba Network: overview of document exchange and network integration buyer supplier Trading partnersBuyer
- 7. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Commerce Collaboration Goes Digital SAP Ariba Solutions and Ariba Network Winning Network Adoption Strategy Benefits for Customers and Suppliers Agenda
- 8. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Ariba Network Best practice supplier enablement = active and light enablement combined Mobile portal Interactive e-mail Free, simple Upgrade by choice Active enablement Light enablement A B C 500 Suppliers 1500 Suppliers 5000 Suppliers No compulsion Buyer Eliminate friction Inbox/outbox Catalogs Reports Help desk and support Machine-to-machine integration Full supply chain transaction set Innovations like payment capability ACH … Interactive e-mail All basic fulfillment transactions + supplier lifecycle and performance, sourcing, discovery, spot quote Crucial for business case Light enablement Full Ariba Network account Ariba Network light account
- 9. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ What are the established best practices for network adoption? Focus on overall programme goals and ROI Foundational pillars Project management + ongoing BAU discipline Success drivers Flight planning Compliance and incentive management Enabling assets Leadership commitment Communication plan
- 10. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Enablement options facilitating full supplier participation Online portal System-to-systemInteractive e-mails Full transaction set Ariba Network portal account All basic transaction types Full transaction set, EDI, cXML, cloud integration Ariba Network portal account Ariba Network light enablement Supplier self-enablement/ active enablement Active enablement services FREE Supplier fees at thresholds Supplier fees Ariba Network light account Maturity / Volume / Spend
- 11. 19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 1. Describes how the strategy can be implemented 2. Details how and when your goals will be achieved 3. Defines: – Which suppliers to enable (by geography, category, size) – In what order (using a prioritized wave plan approach) – Likely enablement method(s) 4. Most important ‒ quantifies benefits delivered – By supplier, linked back to validated business case metrics – Allows impact assessment of removing/replacing suppliers in the ongoing wave plan Defining the strategy for supplier enablement using our flight planning methodology and tools
- 12. 20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Let’s have a look at the brand new SAP Ariba light account for suppliers. For suppliers it’s FREE to join and use.
- 13. 24PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Let’s talk to one of our supplier enablement experts. Please give a warm welcome to JAY NORMAN
- 14. 29PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Commerce Collaboration Goes Digital SAP Ariba Solutions and Ariba Network Winning Network Adoption Strategy Benefits for Customers and Suppliers Agenda
- 15. 30PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Typical benefits for our customers Improved compliance Process efficiency 4x By drastically reducing the touch points required throughout the source-to-pay process Reduced cost 4%–15% By management of strategic sourcing to contract process through an integrated solution Spend under discount 10%–15% improvement of spend under discount Source: Ariba Value Engineering Account Engagements and Benchmarking Studies 60% By driving policy compliance and consumption control Days payable outstanding 1–4 days improvement in days payable outstanding (DPO) Inventory cost optimization 1–3 days improvement in days in inventory
- 16. 31PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Let’s not forget the benefits for your suppliers GROW sales 20% Year-over-year growth in the business LOWER customer service costs 50% Reduction in exceptions and disputes HIGHER customer satisfaction 10%–15% Increase in customer retention FASTER payment 15%–20% Faster payment GREATER visibility 70%–80% Higher order accuracy
- 17. 33PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ There are hundreds of these stories … • Visit SAP Ariba seller testimonial videos here: Seller video wall • The SAP Ariba YouTube channel is here: SAP customers and suppliers share success here
- 18. 34PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Benchmark Yourself Navigate to Mini-Surveys Login to Ariba LIVE App1 Navigate to Surveys2 Respond to Surveys3
- 19. 35PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
- 20. Thank you. Dominic Atkinson Christoph Guettinger Johan Hedborg Value Partner Director, Network Value Organization Senior Solution Consultant +61 421 058 139 +61 481 906 742 +61 466 345080 dominic.atkinson@sap.com christoph.guettinger@sap.com johan.hedborg@sap.com