FGV Supplier Enablement Summit - ep.fgvh.my Enablement Summit Deck.pdf · Abdul Razak Ali | FGV...

FGV Supplier Enablement Summit

March 2016

© 2013 SAP AG. All rights reserved. 2

01 Introductions

2

© 2014 Ariba - an SAP company. All rights reserved. 3Public

Introductions

FGV Team

Mohd Sharil Abdul Hamid | FGV Supplier Enablement Lead

(Supplier Management)

Norzaida Jamal | FGV Supplier Enablement Lead

(Supplier Management)

Abdul Razak Ali | FGV Supplier Enablement Lead (PO Management)

Ahmad Shahar Zakaria | FGV Supplier Enablement Lead (Policy,

Procedure and Governance)

Ariba Team

Sreenath Reddy | Ariba Supplier Enablement Lead


Agenda

01. Introductions & eProcurement Project Update FGV and Ariba

02. FGV Initiative FGV

03. Current Market Situation Ariba

04. Ariba Network (AN) Ariba

05. AN Account Creation Suppliers

Break 15 minutes

06. Demo Ariba

07. Supplier Membership Program Ariba

08. How do I get support Ariba

09. Q&A Ariba/FGV/Suppliers

10. Feedback Suppliers

11. Wrap up and Next Steps Ariba/FGV

1 hr. and 30 minutes

1 hr.


02 FGV Initiative

Abd Razak Yunus

Vice President of Procurement & Supply Chain

5


FGV Procurement Initiative

FGV has identified its priority suppliers for Ariba Network

enablement and FGV will utilize the Ariba Network for electronic

exchange of Purchase Orders, Order Confirmations, Ship Notices,

and Invoices.

We are moving to a best practice model that will allow our company

and our suppliers to interact via a single electronic channel in a

more efficient and self sufficient manner.

Supplier on-boarding is on-going exercise.

FGV will do business with only suppliers on the Ariba network. This

initiative is an important part of transacting with FGV in the future.

Felda Global Ventures

Invoice Process flow


FGV - SAP Ariba Implementation

Supplier Registration

• Through eDaftar

Sourcing

• Received Tender Invitation

• Proposal Submission

• Auction

Contract

• Master Agreement

• Clauses Review

PO Automation

• Received PO, Order Confirmation & ASN

Invoice Automation

• PO-Flip

• DO, Supporting Document Submission

• Payment Status


PO & Invoice Received Statistics (by Year)

1, 136,104

2, 136,640

3, 125,264

PO ISSUED

2013

2014

2015

1, 113,376

2, 110,181

3, 102,560

INVOICE RECEIVED

2013

2014

2015


Ariba PO/INV Automation solution

Purchase Orders

PO Conf & ASNs

Invoices - Status

Payment - Status

Supplier

Supplier

Supplier

cXML

HTML

Email

CSV

PO & Invoice Automation

Adapter

AdapterSAP Supplier

Purchase Orders

PO Conf & ASNs

Invoices - Subm

Invoice - Status

Payment - StatusPayment - Status

Paper


03 Current Market Situation

11


Supply Strategy Optimizing supplier mix across

commodities, managing

supply risk, Diversity & Green

initiatives

Spend ControlGetting most out of supplier

relationships

Business Collaboration Challenges

Supplier Enablement

& AdministrationGetting suppliers

eEnabled, managing contact

information, certifications, etc

Business GrowthGrowing business with new

and existing customers

Customer CostsCosts of transacting

and collaborating

with customers

Cash FlowManaging cash to insure

reliable operations

Buyer Challenges Supplier Challenges


The changing landscape of B2C salesTechnology has lowered barriers of entry and opened new markets for

sellers

Traditional

Brick & Mortar

Mail Order /

TV

Telesales

Company

Specific Website

Online

Networks

• Print marketing

• Promotional events

• Mall environments

• Print Marketing

• Telemarketing

• TV direct response ads

• Search Ads

• Online Promotions

• e-Catalog shopping

• Search Ads/Positioning

• Comparison shopping

• Community ratings/links

1980’s

1990’s

2000-07

2007+

http://www.amazon.com/ref=footer_logo/192-0237053-7796500


A similar evolution is occurring in B2B…just slowerTechnology is changing B2B sales, but lagging B2C rate of change

Traditional

Brick & Mortar

Mail Order /

Catalogs

Company

Specific Website

Online

Networks

• Print marketing

• Promotional events

• Industrial parks

• Print Marketing

• Telemarketing

• Field Sales Reps

• Search Ads

• Online Promotions

• e-Catalog shopping

• Punchout catalogs

• Ariba Discovery

• Community ratings

Pre-1990’s

Pre-2000

2000’s

Now


The Landscape Is Changing


04 Ariba Network (AN)

16


Before we start lets see a video

https://www.youtube.com/watch?v=IG2h1y_B4zI


Ariba Overview

Ariba is the leading provider of collaborative business commerce solutions to enable more efficient and effective buying, selling, and cash management between companies.

Who is Ariba?

Our value proposition?

We eliminate the inefficiencies and burdens of commerce to help businesses:

How do we do it?

The Ariba Commerce Cloud is a global, web-based utility that combines:

• A web-based community to discover, connect, & collaborate with a global network of trading partners

• Capabilities to augment internal resources and skills with always-on expertise and commerce services

18


Using Ariba Network, you could...

Track invoice and payment status online in real time

Decrease in late payments

Improvement in reconciling payments

Getting Paid on Time

Turn your Process into efficient electronic transactions?

Greater visibility

Increase order processing productivity gains via cXML routing method

Notify more a group of people when a PO is received

Catch errors and correct them – before they even happen?

Reduction in manual intervention

Collaborate immediately with all trading partners?

Immediate access to online invoice creation tool

Automation and catalog posting for your buyers in <8 weeks

See opportunities you’re missing and have the ability to trade

globally? Increase in customer retention

Growth in existing accounts

Growth in new business


Growth in Using Ariba Discovery

Sales Trip$2,000

Multiple trips may be required

to close business.

Business Dinner $300

Usually coupled with

expensive sales trip.

Outsourced

Lead Gen Telesale$60 - $100/hour

May not reach the right contacts.

Prospects may not be ready to buy.

Trade Show$500 registration,

$5,000 show booth…

Prospects may not be ready to buy.

Google AdWords$5,000 - $10,000 to run a

successful search campaign.

Hard to reach the right target

audience and decision maker.

Purchase Prospect List$20,000 - $50,000

Hard to reach real decision maker.

Too many “hot prospects” turning out

to be window-shoppers.

Ariba Discovery

Relevant, hot leads,

delivered right to your

desktop, with minimal

cost to respond

The journey to win new business opportunities…

http://www.ariba.com/resources/live-demo > Choose Ariba Discovery for Sellers


Deliver value to ALL parts of the business ecosystem

Seller ValueBuyer Value

Sourcing

Procurement

Process

AP Process

Compliance

Cash &

Discount Mgmt

3-9%

Process

Savings

$3-20

Savings/

Document

1-8%

Spend

Savings

Total

Savings

Faster

Payment

AR Process

Processing

Orders

Sales & Marketing

Increased

Revenue

15-75%

Time

Savings

15-75%

Process

Savings

5-32%

Revenue

Increase

Total

Savings

Source: Ariba customer surveys and interviews

What is good for the buyer is also good for the seller


05 Registration on Ariba Network

22


Registration to Ariba Network

FGV & Ariba expects everyone to use and enjoy the feature of Ariba

Network.

To facilitate this registration on Ariba Network is absolutely free

without any customer relationship.

This free account still allows you to get the benefits of discovery

and also makes your company ready to connect with any Buyer on

Ariba Network.

Now Lets watch a Video

https://www.youtube.com/watch?v=xuv4X6FB7fY


06 Demo

24


How to access Ariba Network ?

Go to http://supplier.ariba.com

To access your account go to these URL and Log in using your

Username and Password.

Go to http://www.ariba.comThen, click on Supplier.

OR

http://supplier.ariba.com/

http://www.ariba.com/


07 Supplier Membership Program

26


Standard

Continues our see-value-first model

providing a no-cost service for

occasional translators and suppliers

just getting started

• Collaboration

• Custom document

routing and

reporting

• Catalogs

• Onboarding

Assistance

• Ariba Discovery

• Customer Support

SelectHelps sellers differentiate and build

stronger customer relationships with

catalog-driven collaborative commerce

• Advanced routing

and reporting

• Commerce

assistance

• cXML and catalog e-

learning courses

Premier

Offers expanded technical support

and white-glove services to drive

sellers to embrace automation and

online channels

• cXML and EDI

integration

• Integration

consultation

• Technical support

Enterprise

Delivers complete collaborative

commerce optimization – bundles of

tools, services, and support for sellers

utilizing Ariba as a multi-million dollar

channel

• Integration Connector

powered by Dell Boomi

• Technical consulting

• Ariba Ready Basic or

Bronze

• Data cleansing &

enrichment – 100 items

Enterprise

Plus

Optimizes the $10M+ Ariba channel

with automation, catalog and

networking opportunities for highest-

volume sellers

• VIP Commerce

Assistance

• Ariba LIVE pass

• Ariba Ready Basic or

Silver

• Data cleansing &

enrichment – 500 items

Subscription offerings for Ariba Network sellersDifferentiate – Grow – Automate

NOTE: Benefits are additive

Included features and functionalities


The Ariba Supplier Membership Program Helping Sellers to Differentiate – Grow – Automate

* Sellers transact at no cost if no single customer relationship transacts 5 or more documents and $50K or more annually

** Only 1.2% of transacting sellers reach the $20,000 cap

Note: Sellers that use cXML or EDI technologies and transact 5+ documents and $50K+ annually automatically receive the $495 Premier or higher

level subscription

Network Transaction Service Fees ( Billed Quarterly )

Annual Volume Per Customer Relationship Fees

< $50K (~200K MYR) or < 5 documents* None

$50K (~200K MYR) to < $12.9M (54.6M MYR) and 5+ documents 0.155% of total volume

$12.9M+ (54.6M MYR) and 5+ documents** $20,000 (~84K MYR) annual cap per

customer relationship

Plus

Subscription Fees (Billing Annually) based on annual projection of recent spend volume)

Annual Volume Across All Customer Relationships Subscription Annual Fee

< $50K (~200K MYR) & < 5 documents sent* Standard None

$50K (~200K MYR) to < $250K (~1.5M MYR) and 5+ documents Select $50 (~200 MYR)

$250K (~1.5M MYR) to < $1M (~4.2M MYR) and 5+ documents Premier $495 (~2K MYR)

$1M (~4.2M MYR) to < $10M (~42.3M MYR) and 5+ documents Enterprise $2,495 (~10K MYR)

$10M (~42.3M MYR)+ and 5+ documents Enterprise Plus $7,495 (~31K MYR)


Fee Example

“I do about 200K MYR*($50K) worth of business with FGV annually with

more than 5 documents”

* Conversion as per exchange rates on 27th October 2015 – may vary based on current rates

NTS Charge:0.155% x 200K* MYR ($50K)

= 310* MYR ($73)

SUBSCRIPTION Charge:200K* MYR ($50K) => SELECT level= 200* MYR ($50 )

Total Annual Charge: 510 MYR ($123)

Free marketing of your

company Globally, this leads

to more Business

Less Errors and faster error

detection

More Customer

Satisfaction


Few More Examples

Examples

Annual volume pa Subscription Transaction fee pa Annual fee Total pa

40,000 USD and 30 Orders + 30 Invoices Standard $0 $0 $0

150,000 USD and 2 Orders + 2 Invoices Standard $0 $0 $0

70,000 USD and 30 Orders + 30 Invoices Select $108.5 $50 $158.5

1 Million USD and 30 Orders + 30 Invoices Premier $1550 $495 $2045

10 Million USD and 30 Orders + 30 Invoices Enterprise $15500 $2495 $17995


Supplier “B” Start transacting on 01.Sep.2014 via Ariba .Assuming the “B” crosses the threshold on 01.Nov.2014 becomes “Select” level and pays $50 as Membership Fee

01.Sep.2014 01.Nov.2014 01.Nov.201501.Feb.2015 01.May.2015 01.Aug.2015

Network Transaction Service (NTS) Fee

Membership and NTS Fee

First Subscription Fee

Next Year Subscription Fee

If total amount of money is $700,000, then classified as “Premier” and $665 will be charged as Membership Fee.

If total amount of money is Zero during the last 12month, no membership fee charged because supplier would be categorized as not transacted for 12 months.

Supplier might always choose to upgrade the membership level at any point of time to get additional benefit.

Supplier Membership Program Levels


08 How do I get support

32


Training and ResourcesFGV Supplier Information Portal

• Select Supplier Information Portal to view the

following presentations to learn more about

transacting with FGV:

o Account Configuration Guide

o FGV Purchase Order, PO Confirmation and

Ship Notice Guide

o FGV Invoicing Guide

o Supplier Membership Program

Buyer specific information is available in one place. Select the name of your company in the top right corner

and then click the Customer Relationships link.

• Select the buyer name to view

transactional rules:

o Verify the customers Purchase order rules

o Required information needed on order

confirmation / advance ship notice

1

1 2

2


To access our Help Center, log into your account or go to http://supplier.ariba.com.

Click the Help link in top right corner. Click Help Center.

Supplier Support Help Center

Search for any topic you

would like to know more.

If none of the articles

answers your query,

click on Support, then

click Create Online

Service Request button

to contact our Customer

Support.

Fill out our web form.

Select Problem Type.

Note SAP in the Issue

Description.



TRAINING AND RESOURCESAriba Network standard documentation and useful links

Go to: http://supplier.ariba.com

Click on the Help link in the upper right hand corner of the page to access Help Center. In Learning center

there is Product Documentation available for Users or Administrators.

Useful Links

Ariba Supplier Membership page - http://www.ariba.com/suppliermembership

Ariba Network Hot Issues and FAQs - https://connect.ariba.com/anfaq.htm

Ariba Cloud Statistics – http://trust.ariba.com

Detailed information and latest notifications about product issues and planned

downtime—if any—during a given day

Ariba Discovery - http://www.ariba.com/solutions/discovery-for-suppliers.cfm

Ariba Network Notifications - http://netstat.ariba.com

Information about downtime, new releases and new features


http://www.ariba.com/suppliermembership

https://connect.ariba.com/anfaq.htm

http://trust.ariba.com/

http://www.ariba.com/solutions/discovery-for-suppliers.cfm

http://netstat.ariba.com/


11 Wrap up and Next Steps

36


Accepting Trading Relationship with FGV on Ariba incase they have not done so.

• Take ownership of your AN accounts

• Setting up you preferred routing method

• Identifying users to user Ariba network Account

Questions regarding Ariba Network:

• [email protected]

• SMP Related questions:- [email protected]

• Mention your buyers name & include your Ariba Network ID (ANID)

FGV-specific business questions:

• Please reach out to respective Buyers

Thank you for supporting FGV - AN Initiative!

mailto:[email protected]

mailto:[email protected]

Thank you

FGV Supplier Enablement Summit - ep.fgvh.my Enablement Summit Deck.pdf · Abdul Razak Ali | FGV...

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