SAP Streamwork Collaborative Decision Making, SAP ...sig.org/docs2/SIG Ariba 9152015 Webinar.pdf ·...

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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 SUMMITS Oct 27-29 Huntington Beach SYMPOSIUMS Sept 17 Columbus, Ohio Oct 15 New York, NY REGIONAL ROUNDTABLES Sept 16 London Oct 1 Washington, D.C. For more information and to register for all SIG events: www.sig.org

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.

For more information and to register for all SIG events:

www.sig.org

2015 Benchmarking Survey

Compare and contrast your sourcing organization against peer organizations in the same industry and cross-industry

Receive a detailed customized benchmark on the maturity of your organization

Get best practice insights by industry

Spend 30 minutes now…but receive aframework for your long-term sourcing success

Interested in participating?

Deadline is September 25th!

Time is running out…and we need your

response!

You must be logged in to the SIG website to access the Loyalty Program.For more information and to register for all SIG events:

www.sig.org

Become a SIG Champion and earn points in the process by…

• Attending a networking event

• Dialing into an online event

• Speaking at a live or online event

• Submitting content to our blog or SRC

• Referring a new member

• And more

Redeem points for great rewards!

• Collect and redeem points for items ranging from small

gadgets to large high-tech electronics

• OR donate to a charity instead!

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

bit.ly/SIGLinkedIn @SIGinsights bit.ly/SIGfacebookbit.ly/SIGYouTube

Join the discussion in SIG’s Peer2Peer Resource program too!

Stay connected with other SIG members through various social media channels

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

Register at www.sig.org

For more information and to register for all SIG events:

www.sig.org

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

For more information and to register for all SIG events:

www.sig.org

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:

www.sig.org

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

Spend Analysis: It’s What You Do With it

That Matters

September, 2015

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

CRH – Ariba Spend Visibility Case Study

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

39© 2015 Ariba - an SAP company. All rights reserved.

Q&A

40© 2015 Ariba - an SAP company. All rights reserved.

Thank You Contact Information:

Keertan Rai

[email protected]

Eric O’Brien

[email protected]