The Extraprise - Using Collaborative Commerce to Extend the Value of Your ERP and Maximize Supply Chain Performance

Editor's Notes

• #22: This desire to work more effectively together is giving way to a major trend that is changing the way companies do business. This trend is something McKinsey calls the “Networked Enterprise,” and buyers and sellers who have been early to adopt it are transforming their trading partner relationships. And they are gaining huge business benefits: increased revenue, better access to knowledge through shared knowledge, higher margins. Becoming a networked enterprise requires a transformation of your people, processes and technology.
• #23: Taking this paradigm of a networked economy, from a B2B perspective, there’s lots of room to grow in the Networked Economy.Companies have spent billions of dollars in personnel, reengineering, and systems over the past two decades to improve their internal process and information flows within their four walls. These “Islands of Efficiency” are disconnected from the outside world and fall down where it matters most – when buying, selling, or exchanging cash with other businesses. For example:80% of POs, Invoices, and other transactions still take place offline…Additionally, Marketing Sherpa has reported a decrease of 50% in B2B marketing impact over the previous year as people utilize more consumer driven sources of information such as Google and blogs and not the marketing/sales materials produced by your companyAlso, Aberdeen Research reports that 5 – 9% of revenue is leaked due to contract compliance issues and other inefficienciesLots of paper…lots of people…and lots of inefficiency.All this inefficiency costs business $650 billions per year in missed sales opportunities, higher operating and supply chain costs, and slower cash flow cycles.
• #24: Many buyers don’t even think about the fact that often times the biggest users of their procurement system are the suppliers. In fact, in some cases the suppliers out-number the buyers by 20 to 1. This is why, if the system isn’t one that is scalable and helps your suppliers, it’s likely you’re going to stall out after Waves 1 or 2.Also, be sure to ask yourself how you can handle key processes such as:Shouldn’t you automate order confirmations, delivery status, and order cancellation notices?How do you handle a stuck order?How do you know which orders have failed?
• #25: To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well
• #26: To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well
• #30: In a recent CFO study, more than half of them are increasing cost savings goalsMany of these target more than 5% savingsYet only 7% of Finance Execs feel Procurement brings good ideas to the table
• #32: The networks we use to run our daily lives share these three components of TECHNOLOGY, COMMUNITY AND CAPABILITIES.
• #33: To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well
• #35: Across both Ariba customers and analysts, we see that companies who truly drive adoption of the solutions can significantly exceed the wishes of their executivesNote to AE - In the chart on the left, the letters represent: R = Republic Services A = Axxess Financial L = Liberty MutualBe aware that many companies do NOT want to disclose actual savings because they view it as a competitive advantage.
• #36: Talk to one or 2 stories that seem most relevant to your prospect
• #37: You don’t have to do it all at once, but you must start. Many can support Wave 1, some even Wave 2; but it’s only the best in class companies that ever get to Wave 3, which just happens to be the area of biggest savings that really matters to the CFO’s
• #38: Most companies have only about 10-15% of their spend that can easily be categorized and managed by your traditional or simple procurement solutions. As a result, nearly 85% of the spend is never captured, and the savings on all that is missed. So it’s key to ask yourself, what is your strategy around… (read spend types as appear)(Proceed with Slide Buid)And don’t forget the elements that are needed to keep all these up and running with the current information that your users must have
• #39: To move quickly you need to be able to meld you processes with the best practices in the industry so that you quickly can be running in an efficient manner.You need to be able to connect to YOUR suppliers, and do it in a way that doesn’t cost them more moneyAnd while many can claim to do this, talk to some suppliers to see who really does it well