SAP Streamwork Collaborative Decision Making, SAP ...sig.org/docs2/SIG Ariba 9152015 Webinar.pdf ·...
Transcript of SAP Streamwork Collaborative Decision Making, SAP ...sig.org/docs2/SIG Ariba 9152015 Webinar.pdf ·...
The SIG Webinar will begin shortly.
Once the webinar begins, the sound will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of these cities this fall.
NETWORKING EVENTS
GLOBAL SUMMITSOct 27-29 – Huntington Beach
SYMPOSIUMS
Sept 17 – Columbus, Ohio
Oct 15 – New York, NY
REGIONAL ROUNDTABLES
Sept 16 – London
Oct 1 – Washington, D.C.
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2015 Benchmarking Survey
Compare and contrast your sourcing organization against peer organizations in the same industry and cross-industry
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RECENT POSTINGS
The SIG Career Network is
bursting with opportunities.
New jobs are posted daily by some
of the best known global companies in the world for those
seeking careers in sourcing, outsourcing, procurement and
related functions.
For more information go to: www.sig.org/career-center.php
NEW to the Career Network!
• US Cellular – posted September 15:
• Category Manager II
• Best Buy Co., Inc. - posted September 10:
• IT Sourcing Category Manager, SAAS
• Staples, Inc. – posted September 8:
• Project Manager, BPO
• Senior Sourcing Manager
• American Family Insurance – posted Sep 3
• Sourcing Manager
• NB Ventures, Inc. – posted September 3:
• Sr. Solutions Consultant, Technology
• Associate Director, Technology
• Director, Consulting
• DTCC – posted August 21
• Mid-level Strategic Sourcing Partner
• Procurement Specialist
• Corporate Procurement Sourcing
Specialist
• Senior Procurement Specialist
• Strategic Sourcing Specialist
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SOCIAL MEDIA
bit.ly/SIGBlog
New Topic Each Week2:00 pm Eastern
(11:00 am Pacific)
Upcoming Free SIG Webinars:
September 17, 2015Re-imagining Sourcing in the Digital AgePresented by Mayer Brown
September 22, 2015The “Other” Risks Associated with Contingent LaborPresented by PeopleFluent
September 24, 2015Readiness: Lessons from the Ultramarathon Trail to Prepare for the Category Management JourneyPresented by Denali Group
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For more information and to register for all SIG events:
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Upcoming Town Hall Teleconference:
October 14th
50 Shades of Stakeholder Management:
Turning Reluctant Acquaintances into Long-
Term Partners
Presented by: Kristin Gallagher
Director, Global Sourcing & Procurement
Russell Investments
SIG Town Hall Teleconferences
bring a small group of buy-side ONLY attendees together for a facilitated
discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.
Calendar of Town Hall Teleconferences
Taking place at 1:00 pm Eastern on the following dates:
February 11 August 12 April 8 September 9May 13 October 14
June 10 November 11July 8 December 9
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SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users
Symposiums 2015:
Minneapolis, MN – Mar 25
Toronto, Canada – June 1
Columbus, OH – Sep 17
New York, NY – Oct 15San Francisco Bay Area – Nov 10
Regional Roundtables 2015:
Houston, TX – May 13
London – Sept 16
Washington, D.C. – Oct 1
Raleigh, NC – Nov 5 Sydney, AU – Nov 11
For more information and to register for all SIG events:
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SIG Global Summits are semi-
annual events with 350-450
decision-makers in attendance
• Non-commercialized
• Hundreds of industry thought
leaders
• 70% buy-side
• 4-5 keynote sessions
• Global brands
• 3 days of networking
• CPO Roundtables
• Nearly 50 breakout sessions
69% of delegates are director level or above, of which 43% are VP/C-level
www.sig.org/fall15
Recent speakers include:
For more information go to: www.sig.org/siguniversity
Online certification program
Associate, Professional, Advanced Professional and Executive level courses
Modules with lessons, formative assessments, summative testing and final proctored exam
Certification good for 5 years
Interested in providing input?
Let us know!
For more information go to: sig.org/student-outreach.php
Partnering with Universities
Introducing students to seasoned supply chain executives
Sharing thought leadership with students in class, SIG University courses and at SIG events
Giving access to internship and job postings on the SIG Career Network
Allowing students to get real world insight into supply chain careers
Finding tomorrow's supply chain professionals today
13© 2015 Ariba - an SAP company. All rights reserved.
Speakers
Eric O’BrienSolutions Consultant
Ariba, an SAP Company
Keertan Rai Director, Solutions Marketing
Ariba, an SAP Company
Benjamin LandisStrategic Sourcing Manager,
Oldcastle Materials, Inc.
Jon Ball Director of Global Data
Insights & Analytics,
Dun & Bradstreet
14© 2015 Ariba - an SAP company. All rights reserved.
Agenda• Need for Spend Analysis
• Ariba Spend Visibility - How it Works
• The Supplier Enrichment Value in Spend Analysis – D&B
• Case Study: CRH
• Ariba Spend Visibility Demo
15© 2015 Ariba - an SAP company. All rights reserved.
86% of companies
say spend visibility
is very important …
But only 40% of
companies have
good visibility into
their spending
16© 2015 Ariba - an SAP company. All rights reserved.
Aggregation and Reporting is Only the Tip of the IcebergTurning data into actionable intelligence requires more
Data aggregation
Dashboards and
reporting
Commodity
classifications
Supplier data
enrichment
Market insights
and benchmarks
17© 2015 Ariba - an SAP company. All rights reserved.
Aggregation and Reporting is Only the Tip of the IcebergTurning data into actionable intelligence requires more
Data aggregation
Dashboards and
reporting
Commodity
classifications
Supplier data
enrichment
Market insights
and benchmarks
18© 2015 Ariba - an SAP company. All rights reserved.
Ariba® Spend Visibility powered by SAP HANAA clear view of all your spend and suppliers in one place
Ariba Spend Visibility unified with D&B Business Insights and powered by HANA
provides you the ability to make trusted and confident spending decisions by
delivering comprehensive visibility on your spend data.
How much are we spending?
What are we buying?
Who are we buying from?
Improve sourcing pipeline
Increase purchasing clout with suppliers
Rationalize supplier & product portfolio
Reduce inventory costs
Increase spend under management
Mitigate supplier risk
Diversity and sustainability adherence
Insights Decisions
19© 2015 Ariba - an SAP company. All rights reserved.
Ariba Spend Visibility powered by SAP HANA Your on-ramp to effective spend management
Extraction
Classification
Supplier Data
Enrichment Market Benchmarks
Reporting
Key Enablers
• Unified D&B based enrichment
• In-depth commodity classifications
• Integrated Benchmarks
• SAP HANA based reporting
• Project management and
• Best Practice Center(BPC)
Services
1
2
34
5
20© 2015 Ariba - an SAP company. All rights reserved.
Not a One-Hit WonderSpend Visibility Drives Sustainable Value in the Long Term
Sourcing Savings
Opportunities
Supplier Negotiation
Leverage
Maverick Spending
Trends
Time to Value
Effort to
Discover
Contract Compliance
Adherence
Quick Wins
High
High
Low
Low
21© 2015 Ariba - an SAP company. All rights reserved.
Not a One-Hit WonderSpend Visibility Drives Sustainable Value in the Long Term
Sourcing Savings
Opportunities
Supplier Negotiation
Leverage
Maverick Spending
Trends
Time to Value
Effort to
Discover
Working Capital
Leverage
Supplier Diversity
Reporting
Green & Sustainability
Initiatives
Supplier Risk
Analysis
Category Sourcing
Insights
Spend Under
Management Improvement
Contract Compliance
Adherence
Quick Wins Mid/ Long Term Opportunities
High
High
Low
Low
22© 2015 Ariba - an SAP company. All rights reserved.
We Have Observed the Benefits from a Vantage Point Examples of real life use cases in spend visibility
Sourcing Savings
USD 27.3 million savings in 2.5 year period and 18% average savings across all spend
categories
Supplier Optimization
97% of the annual spend classified and enriched over 98% of the supplier base thus resulting 20% supplier reduction
Working Capital
$2.5 Million in savings due to optimized Days Payable Outstanding ( DPO ) terms with suppliers
Procurement Efficiency Over 400,000+ goods and services categorized based on industry taxonomies at 99%
accuracy resulting savings of over USD 3 million annually
23© 2015 Ariba - an SAP company. All rights reserved.
Polling Question
Which of the following do you see as the potential outcomes of
leveraging Spend Analytics in your organization?
(Select all that apply)
• Improving sourcing savings and pipeline
• Driving supplier sustainability and diversity initiatives
• Improving supplier negotiation clout
• Reducing contract compliance leakages
• Reducing supplier management costs
24© 2015 Ariba - an SAP company. All rights reserved.
Agenda• Need for Spend Analysis
• Ariba Spend Visibility - How it Works
• The Supplier Enrichment Value in Spend Analysis – D&B
• Case Study: CRH
• Ariba Spend Visibility Demo
The Enterprise Need for Spend Visibility
*Aberdeen Group : Spend Analysis – Transforming Data Into Value , By Christopher .J. Dwyer
Factors Driving Enterprises to Focus on Spend Analysis *
Getting Insight Starts with Asking the Right Questions
• How can I get more detailed information on suppliers?
• How much am I spending with suppliers at a corporate family level?
• How diverse is my supply base? And how can I locate more diverse suppliers?
• Where are the greatest risks in my supply chain?
Inconsistent Data Quality
Disparate Data Sources
Manual Effort Intensive Processes
Limited Access to Market Information
Poor Visibility on Suppliers
Why is Gaining Visibility on Your Spending a Challenge ?
How often have you made decisions based on limited or missing information?
Spend Visibility, with D&B inside, provides clarity about your suppliers.
Supplier Data Enrichment Through Dun & Bradstreet
Supplier Data Enrichment Through Dun & Bradstreet
In-depth Insights on Your Suppliers with the World’s Largest Supplier Database
• Gain supply chain visibility with a consolidated, standardized view of suppliers
• Identify hidden paths for costs savings and risk exposure management
• Find sourcing opportunities within existing relationships globally
• Strategically leverage full negotiation advantage
• Benchmark supply base diversity and sustainability levels and how they meet organizational goals
How much are we
Spending with them?
Is my supplier
base diverse?
Are my suppliers
at risk ?
Is my supply chain
Green?
Who are our
Suppliers ? Industry Codes
Parentage
Information
Financials
Green
Certifications*
Diversity
Certifications*
Risk Ratings*
* Provided as an optional service
World’s largest
commercial database
More than 240 million
company records
30,000 data sources
5 million updates per day
The largest, most accurate
contact databases (Dun &
Bradstreet NetProspex)
The patented DUNSRight™
data verfification process
Trusted by nearly 90% of the Fortune 500 to turn massivestreams of data into high-quality information and insight
Supplier Data Enrichment
Through Dun & Bradstreet
Jon BallDirector of Global Data Insights & Analytics at Dun & [email protected]
Agenda• Need for Spend Analysis
• Ariba Spend Visibility - How it Works
• The Supplier Enrichment Value in Spend Analysis – D&B
• Case Study: CRH
• Ariba Spend Visibility Demo
Three product groups
| 33
o Oldcastle Materials is one of three Oldcastle product groups:
• Building Products — No. 1 in building envelope
solutions; No. 1 provider of precast concrete
engineered solutions in North America; No. 1 in
masonry and hardscapes
• Distribution — Leading building products distributor
to specialty contractors in residential and commercial
construction
• Materials
Oldcastle Materials
| 34
• Oldcastle Materials is the leading vertically integrated supplier of aggregates,
ready-mixed concrete and paving services in the United States.
o No. 1 in asphalt production
o No. 1 in asphalt paving
o No. 2 in ready-mixed concrete production
o No. 3 in aggregates production
o Major provider of heavy highway construction services
Landscape - Stats
• Over $19B in annual spend, $5B in OMG
• 7.5MM invoices group wide
• Over 130K unique Supplier Global Parents
• 650 unique L3 categories
Procurement Landscape & Challenges
SOURCE: Oldcastle Materials | 35
Challenges
• Various disparate ERP systems across the globe
• Multiple currencies
• Internal resource allocation
• Increased coordination across groups, difficulty gathering spend and identifying opp.
Implementation Approach
• Using the tool must be easier than working around it
• Dedicated procurement resource per group
• Global core team coordinating
• Training early and often
Approach to Implementation & Lessons Learned
| 36
Lessons Learned
• More frequent data refreshes
• Top-quality data for opportunity analysis
• Continuous Refinement & data enhancement
• Consistent customized training
• Creating an understanding & demand for the information
• Alignment with IT resources
Spend Visibility Example
| 37
• Supplier Parentage hierarchy
• Unit Price info for direct materials
• Uncovering new opportunities
• Project Pipeline development
Agenda• Need for Spend Analysis
• Ariba Spend Visibility - How it Works
• The Supplier Enrichment Value in Spend Analysis – D&B
• Case Study: CRH
• Ariba Spend Visibility Demo
40© 2015 Ariba - an SAP company. All rights reserved.
Thank You Contact Information:
Keertan Rai
Eric O’Brien