SAP Ariba Solution Implementation: A Customer Panel
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The document summarizes presentations from a customer panel discussing the implementation of SAP Ariba solutions by SunTrust Bank, Ulta, and Mastercard, including their goals, challenges, and successes. Key themes include the importance of spend visibility, contract compliance, and automation in procurement processes, as well as best practices for effective implementation. Each company shared its unique experience, emphasizing ongoing improvements and the necessity of strong leadership support.
SAP Ariba Solution Implementation: A Customer Panel
- 1. Month 00, 2017 SAP Ariba Solution Implementation A Customer Panel
- 2. 2© 2017 SAP SE or an SAP affiliate company. All rights reserved. Public SunTrust Bank Ashley B. Miller, Group Vice President, Sourcing Business Information Office ULTA Lockie Antonopoulos, IT Director – Merchandise Planning Systems Mastercard Richard Herman – Finance Lead – Global Shared Services Q&A Agenda
- 4. © 2016 SunTrust Banks, Inc. SunTrust is a federally registered trademark of SunTrust Banks, Inc. SAP ARIBA SOLUTION IMPLEMENTATION Ashley B. Miller, Group Vice President Sourcing Business Information Office SunTrust Bank
- 5. AGENDA • SunTrust Bank At a Glance • Spend Profile for a Financial Services Organization • Current State Before a Spend Management Strategy • Goals of a Successful Spend Management Program • Importance of Driving Usage of the Ariba Network • Request to Payment Process • SunTrust Performance Scorecard • Best Practices and Key Learnings 5
- 6. SUNTRUST BANK AT A GLANCE 6 • SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. • Headquartered in Atlanta, the Company has three business segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. • Its flagship subsidiary, SunTrust Bank, operates an extensive branch and ATM network throughout the high-growth Southeast and Mid- Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. • As of December 31, 2016, SunTrust had total assets of $205 billion and total deposits of $160 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. • SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com
- 7. SPEND PROFILE FOR A FINANCIAL SERVICES ORGANIZATION 7 • Financial Services Organizations have a completely different spend profile from a Retail Organization for example • Around 80% of our spend is a simple or complex service • 20% of our spend is a traditional purchase order transaction
- 8. CURRENT STATE BEFORE A SPEND MANAGEMENT STRATEGY Lack of Robust Spend Visibility • Limited Product / Line Item Visibility • Imperfect Visibility into What Was Being Purchased and at What Price No Formal Means for Spend / Contract Compliance • Contracts were Negotiated, but Limited Ability to Match Invoices to Contract Terms • No Automation to Match Compliance No Centralized Contract Repository • Contracts were all Over the Bank and There was No Visibility into How many There were and What they were No Location to Store Sourcing Project Documents and Deliverables • Documents were not retained – Contract, Supplier and Commodity Strategies were lost 8
- 9. GOALS OF A SUCCESSFUL SPEND MANAGEMENT PROGRAM Contract Compliance • Ensure financial stewardship & expense management of Supplier Spend • Invoices are matched to negotiated Contract Rates with preferred suppliers Spend Visibility • Implement processes and reporting that ensures detailed information on our Spend (What was bought, How much was paid, How many received, Who consumed, Supplier utilized) Automation of Sourcing / Contracting / Procurement Processes • Create automated process managed by system workflow Create centralized location for all good / service requests Maintain centralized location for all sourcing documentation and contracts 9 = Goods = Services The Path to Success • Identify & Solution Commodities • Enable Suppliers Electronically • Transact Electronically • Implement Continuous Improvements
- 10. ARIBA SOLUTIONS DEPLOYED AT SUNTRUST 10 Supplier Performance Management Risk Questionnaires (Surveys) for New and Renewals Sourcing Service Request Form – Use Contract Request (Procurement) and approval routing of requests Project Management: Reporting, Project Cycle time, Project Artifact storage, etc Standardization in Process & Templates: Sourcing Library Performance of RFI, RFP, RFQ, & Auctions Document Archival Savings Tracking Contract Management Contract Administration: Storage, Archival, & Retrieval Establishes linkage between Master & Sub-Agreements (approx. 29,000 agreements) Contract Compliance: Invoice to Contract Match, Contract Release Approvals for contracts electronically routed (PCAR) Contract Authoring and Clause Library Procurement Catalog & Non-Catalog Purchase Orders: Punch-out, supplier hosted, custom workflow, etc. Services Procurement in use for Consulting, Print, Recruiting, Training Accounts Payable Invoice Processing: Invoices matched to PO and/or Contract Invoice Workflow: Exception handling, approvals, receipt verification Payment Terms: Prompt Payment Discounts Ariba Network eBilling: 98% volume of invoices are eBilled & about 80% of spend is eBilled Electronic issuance of POs, Contracts, etc Electronic Supplier Connectivity: EDI, cxml, csv uploads Catalog Maintenance: Supplier / Internally managed
- 11. KEY LEARNINGS AND BEST PRACTICES • Have Senior Leadership involved and supportive of a spend management strategy • Create a No PO or C, No Pay policy to let suppliers know you will not pay them without a PO# or C# in advance • Create a Category Onboarding plan • Cease accepting paper invoices for suppliers where you have an Ariba relationship • Understand what commodities work best with each Procurement solution (Catalog, Non-Catalog, Contract Compliance – Release and No Release, Services Procurement) • Important to create a strong connection/line of communication between Sourcing, Procurement, Legal and AP • Realize P2P strategies for services likely requires a phased approach with a solution that matures in cycles of process improvement • Create a Strong Ariba Administration Team (Knows Process and Tool Functionality) • Realize…THE VIEW IS WORTH THE CLIMB! 11
- 12. NEXT STEPS • Continue to strive to achieve more spend under management • We are currently at 97.2% spend under management but we want more • Continuous Improvement, Continuous Improvement, Continuous Improvement • Work on continuing to tweak Ariba to make it work better for us so that we can be more efficient and effective • Never be satisfied 12
- 14. CONFIDENTIAL & PROPRIETARY 2016 Lockie Antonopoulos IT Director – Merchandise Planning and Operations SAP Ariba Solution Implementation: A Customer Panel
- 15. 15 Who we are
- 16. 16 Who is Ulta Beauty • America’s largest beauty retail and the only national beauty retailer of prestige, mass and salon products and services under one roof • 975+ convenient locations in 48 states as of Feb 2016 and growing rapidly (approx. 100 new stores / year) • ~10,000 sq. ft. stores carry 20,000 SKUs, 500 brands • Compelling loyalty program with over 25 million active members • All fueling rapid growth (2016 Earnings) • 24.6% Net Sales Growth • 16.6% Comp Store Growth • 63.4% eCommerce Growth
- 18. 18 Project Benefits Ariba modules in use • Ariba Network • Ariba Invoice Professional • Ariba Connect • Ariba Integration Toolkit • Ariba Contracts Business use and benefits • All direct spend vendors now utilize the network • Improved PO and Invoice Flow • ASN Visibility • AP Team now only manages by exception, reducing workload for invoice processing
- 19. 19 Implementation Timings and team • Technical team consisted of ULTA IT, Ariba and SI Partner • Configuration and testing completed in nine months • Vendor rollout completed in 2.5 years What would we do next time? • Start the implementation now • Utilize some additional Ariba consulting to aid in mapping • Better estimate the IT workload for onboarding vendors and putting a well defined process in place
- 21. Richard Herman Finance Lead (Ariba) Global Shared Services Financial Systems richard.herman@mastercard.com Presenter
- 22. Richard Herman – Mastercard - Finance Lead (Ariba) Background 20 years of IT, Procurement and Financial Systems and experience with major Chicago and St. Louis corporations. Hometown: St. Louis, MO Work Summary 8+ years as a provider of Spend Analysis and Procurement application support including Global Training and Application configuration and support for Ariba upstream applications (Sourcing, Contracts, Supplier Management). Specific Activities • Procurement Champion for major Spend Analysis initiatives* • Led implementation of Ariba Sourcing and provided related Global Training and helpdesk support* • Expert in Ariba Contract Management, Sourcing Events, System Configuration, Data Import/Export, Workflows, Supplier Management, more. • Current Ariba Systems Lead at Mastercard *prior company activities
- 23. ©2016Mastercard.ProprietaryandConfidential. Mastercard Today 23 Mastercard is a technology company in the global payments industry. Innovation is at the heart of MasterCard’s nearly 50-year history. We take an innovative, value-driven approach to the solutions we create and services we offer, making transactions faster, easier, and more convenient and secure. MasterCard is a multi-billion dollar company and one of the world’s most trusted brands, ranking among the top 100 most valuable brands in the world. 210+ Countries and Territories 50 Billion Processed transactions Billions Branded cards issued
- 24. ©2016Mastercard.ProprietaryandConfidential. 24 Ariba Journey at Mastercard 2012 Spend Visibility Supplier Lifecycle Mgmt 2013 2014 2015 2016 2017 2018 20192011 Contracts (Proc) Contracts (Sales) w/ SFDC Integration Global Mandate to use Ariba as repository for all Contracts. GBSC (Financial Systems) takes over support of Ariba Contracts. Oracle and Workday Integrations, Process Improvements AribaModulesandfunctionality P2P Process Streamlining, Evaluate Cloud- Based eProcurement, Centralized Support Teams, Contract (Sales) realignment Recent Activities under Financial Systems Future Plans / Evaluations Initial Implementations (led by Business side)
- 25. ©2016Mastercard.ProprietaryandConfidential. 25 Mastercard’s Ariba Modules and Technology Oracle ERP – PR/PO/INV/PAY Modules (utilization) 1. Contracts 2. Supplier Management 3. Sourcing 4. Spend Visibility Technology • ITK • Web Services
- 26. ©2016Mastercard.ProprietaryandConfidential. 26 Pain Points Lessons Learned Goals o Repository for all Contracts o Workflow supports policy o Improve Supplier Risk and Performance management o Automate to reduce costs o Improve Ariba user Experience o Improved Metrics and Contracts and Savings Reporting o Improve Spend Management by Categories o System Integration across buying process o Decentralized Business processes o Difficulty of Global Adoption o Facilitating Global Training o Minimal User Expertise o Limited Support Resources o Difficulty Managing Supplier Risk by engagement o High Helpdesk Volume o Data alignment between systems is critical for Integration o Strive for consistent Global processes o Resource realignment needed to support process changes o Centralize specialized processing when possible o Solve for immediate problems with Big Picture as guide
- 27. ©2016Mastercard.ProprietaryandConfidential. 27 Important Points in Implementation Approach o Know what you want your future state to be. o Implement with that BIG PICTURE in mind, even if rolling out in phases. o Clean up data in all related systems. Consider it a catalyst for the opportunity not a chore. o “It’s not about the technology, it’s about the people” so solve for what you people do as a process, modifying as needed. o Hire/Utilize the necessary RESOURCES to get the work done in the needed time. o Open and clear supplier communication about upcoming changes is critical. Provide Suppliers with clear registration guidance and what is required of them. o It is optimal when users engage with Ariba early and run the full Supplier to RFI/RFP to Contract upstream process (then to downstream and ERP).
- 29. Thank you. Contact information: Jason Didday Director, Cloud Services GTM Denver, CO +1.720.532.4528