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 Mar 10-12 2015 – Amelia Island

SYMPOSIUMS

March 25 – Minneapolis, MN

REGIONAL ROUNDTABLES

Feb 4 – Seattle, WA

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 an event

•Dialing into a webinar •Speaking at a Summit

•Submitting content to our blog or SRC

•Referring a new member •And more

For more information and to register for all SIG events:

www.sig.org

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/career-center.org

NEW to the Career Network!

• Pacific Electric & Gas – posted December 3

• Expert Category Lead

• Zions Bancorp. – posted December 2:

• Information Technology Analyst

• Senior Information Technology Analyst

• GAP Inc. – posted December 1:

• Sourcing Manager – Outsourcing

• Sourcing Manager – GAPTech Software

• Warner Bros. – posted November 25:

• Sourcing Manager - Marketing

• LogicSource – posted November 19:

• Vice President, Sourcing – Facilities

• Vice President, Sourcing – Technology

• Vice President, Sourcing – Logistics

• Vice President, Sourcing – Travel

• BJC Healthcare – posted November 18:

• Sourcing Manager

bit.ly/SIGLinkedIn @SIGinsights bit.ly/SIGfacebook bit.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 Week 2:00 pm Eastern

(11:00 am Pacific)

Upcoming Free SIG Webinars:

December 9, 2014 The Art and Science of Implementations and Expansions Presented by IQNavigator December 11, 2014 Capital Program Management: Objective Prioritization and Strategic Sourcing Presented by JLL January 15, 2015 A Case Study:How Effective Risk Management Drives Global Supply Chain Optimization Presented by Hiperos

Register at www.sig.org

For more information and to register for all SIG events:

www.sig.org

Upcoming Town Hall Teleconference:

December 10th

Self-Funding Your Transformation

Presented by:

Linda Behan

Senior Vice President

Iron Mountain Incorporated

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:

March 12 August 13

April 9 September 10

May 14 October 8

June 11 November 12

July 9 December 10

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 – March 25

Toronto, Canada – May 20 Columbus – Sep 16

New York– Oct 15 San Francisco Bay Area – Nov 13

Regional Roundtables 2015: Seattle – Feb 4

Hartford – Feb 25 Sydney AU – April 15

Chicago – April 29

Houston – May 6

For more information and to register for all SIG events:

www.sig.org

A SIG Global Summit is…

• Non-commercialized

• Almost 70% buy-side

• Global brands

• 3 days of networking

• Executive Roundtables

• Multiple keynote sessions

• Nearly 50 breakout sessions

69% at director level or above, of which 43% are VP/C-level

www.sig.org/summits.php

Managing Non-Contracted Spend

With Business Networks

December 4, 2014 Public

© 2014 Ariba - an SAP company. All rights reserved. 10

Presenters

• Sundar Kamak, Vice President, Procurement and

Business Network Solutions, Ariba, an SAP Company

• Florian Boehme, Partner, source:net GmbH

• Brian Bender, Senior Director, Global Purchasing,

JM Huber Corporation

© 2014 Ariba - an SAP company. All rights reserved. 11

Agenda

Introduction

Ariba Spot Quote Overview

Customer Case Study Discussion

Solution Demo

Q&A

Introduction Sundar Kamak, Vice President, Procurement and Business Network Solutions,

Ariba, an SAP Company

© 2014 Ariba - an SAP company. All rights reserved. 13

Changing business environment increases pressure on

companies

Increasing

Globalization • Expansion into new markets

• Global process

standardization

• International supply chains

• Increased off/near shoring

Economic Volatility • Volatility in markets

• Decreased stock valuation

• Slow economic growth

• High expense ratio

More Competition • Pricing pressures

• New sources of competition

• Decreased budgets and

spending

Greater Risk • Supply chain disruption

• Financial risk and fraud

• Commodity risk

Accelerating

Technological Change • Changing business models

• Faster innovation cycles

• Expanding partnerships and

channels

• Leveraging big data for decisions

Regulatory Changes • Increasing disclosure

requirements

• Country-specific regulations

• Industry-specific disclosures

© 2014 Ariba - an SAP company. All rights reserved. 14

Discover Connect Collaborate Gain Insights

Your

Company

YOUR

COMPANY

YOUR SYSTEMS

YOUR TRADING PARTNERS

Business Networks connect people, systems, processes

between companies to simplify business commerce

© 2014 Ariba - an SAP company. All rights reserved. 15

Supplier

Relationship

Management

Supplier

Performance &

Risk

Management

Supplier

Development

Supplier

Collaboration

Supplier

Qualification &

Accreditation

Category

Management

Supplier

Discovery

Contract

Management

Content

Management

Sourcing

&

Tendering Transactional

processing

Order

Management

Claims

Management

Discounts &

Supply Chain

Finance

Collaborative

Planning &

Forecasting

Invoice &

Payment

Processing

Logistics &

Traceability

Supplier Networks

Source: "Supplier Portals & Networks Research", Accenture 2013

Supplier Networks are key for running efficient and

effective Operational Sourcing and Spot Buy processes

© 2014 Ariba - an SAP company. All rights reserved. 16

Spot Buys – a huge opportunity for additional savings and

efficiency improvements . . .

Tactical Sourcing Spend is a significant operating cost driver, but

often neglected or placed on auto-pilot . . .

Source: The Hackett Group.

© 2014 Ariba - an SAP company. All rights reserved. 17

One-time Buy

Emergency Buy

Low Spend Amount/ Low Complexity

Buy

Large percentage (42%)

of indirect spend is

tactical in nature and not well managed*

. . . yet there are many challenges with Tactical Sourcing

(Spot Buy) processes . . .

• Low spend amount

($5K - $20K per project)

• Short cycle time

• Rush Orders

• Typically under-managed,

under-served categories

• Item/service is not available

in a catalog

Unmanaged Categories

*Source: Using Technology to Streamline Tactical Sourcing. Patrick Connaughton and Kurt Albertson The Hackett Group. 4/29/2013.

Challenges

© 2014 Ariba - an SAP company. All rights reserved. 18

Introducing: Ariba® Spot Quote

Suppliers Buyer

RFQ in ERP

creates Spot

Quote event in AN

1

Create PO out of

awarded supplier

response

4

2 Spot Quote

notification

send

3 Supplier

creates and

submits bid

“Other”

For easier supplier identification and bid execution

• ERP system generates automated RFQ and publishes it in Ariba Sourcing

• Suppliers (invited/matched by Ariba Discovery) provide responses through Ariba Sourcing

• Responses are sent back automatically to the source system

© 2014 Ariba - an SAP company. All rights reserved. 19

Key benefits of Ariba Spot Quote

*Source: Using Technology to Streamline Tactical Sourcing. Patrick Connaughton and Kurt Albertson The Hackett Group. 4/29/2013.

FAST & EASY

AUTOMATED

EFFECTIVE TRUSTED

Quick ROI due to

limited configuration

and end user training

Increased saving

potentials of up to 2-5%*

Reduction in processing

time through highly

automated process

Discover potential new

suppliers via Ariba

Network / Discovery

INTEGRATED Robust out of the box

integration with SAP ERP and

Oracle E-Business Suite

COMPLIANT Complete visibility and

control improves

compliance

© 2014 Ariba - an SAP company. All rights reserved. 20

Ariba Spot Quote

source:net Florian Boehme, Partner

© 2014 Ariba - an SAP company. All rights reserved. 22

Using Ariba for all Buying Needs

Started using Ariba in 2009 to conduct sourcing events, find suppliers, and

compare quotes. Adoption has increased over the years and covered broad

range of categories and geographies.

Projects on Ariba Scope of Usage

Procurement Categories

• Indirect Materials & Services

• Transportation & Logistics

• IT Hardware & IT Services

• Energy

• Direct Materials and Services

Procurement Geographies

• Germany, Austria, Switzerland (majority)

• Europe

• USA

• Asia 2009 2010 2011 2012 2013 2014

© 2014 Ariba - an SAP company. All rights reserved. 23

Using Ariba for Spot Quotes

A total spend volume of about € 220 Million has been published on Ariba,

yielding an average of 4 supplier responses/posting (trending up). Spot Quote

requests have increased and now total 25% of all buying needs.

Bids/Posting Scope of Usage

© 2014 Ariba - an SAP company. All rights reserved. 24

Using Ariba for Spot Quotes

Using Ariba to receive Spot Quotes is really simple. It brings technology and

suppliers together and enables us to be more efficient and effective.

The Ariba Network facilitates access to the market.

Solid Description of needs and especially Requirements (K.O. citeria, etc.)

Granular and precise Classification of your product/service

Locations may even be classified down to “Bundesland” / State level

Hide participating supplier list

Logistical requirements and PO/order size, along with Incoterms (if applicable)

Tender / Business Languages

JM Huber Corp. Brian Bender, Senior Director, Global Purchasing

© 2014 Ariba - an SAP company. All rights reserved. 26

Purchasing Challenges

Enhance the performance of multiple process manufacturing businesses with

support across a variety of industries, markets and geographies

• Complicated sourcing process across a broad range of products: 7 businesses,

24 manufacturing plants, 5 R&D centers, 7 admin centers

• Managing >$750M in spend across 5 continents in direct & indirect categories

• Maintaining SG&A benchmarks; doing more with less

• Managing capital goods & services ($105M) and MRO/plant services ($45M)

Center-led with decentralized execution at the plant level:

• Multiple ERP applications

• Plant buys focused on local sellers with little competition to drive down costs

• Finding enough qualified sellers in remote plant locations often the challenge

© 2014 Ariba - an SAP company. All rights reserved. 27

Using Ariba for Spot Quotes

Started using Ariba in 2007 to run sourcing events, discover new suppliers,

and compare quotes for strategic and non-contracted spend (spot buys).

• Can quickly and easily find sellers for wide range of spend – across the world

and in remote locations

• Ideal for buyers with limited non-catalog item market intelligence

• Submit requests, gather multiple quotes, and compare offers all on one site

• Provides for record tracking of activities and support for sourcing decisions

• Obtain responses from pre-qualified sellers vetted by other Ariba buyers

• Easy access and ease of use alleviates capacity issues, improves sourcing

productivity, and cuts sourcing lead time down to a couple of days

© 2014 Ariba - an SAP company. All rights reserved. 28

Organizational KPIs for Purchasing –

Global Sourcing Efforts

© 2014 Ariba - an SAP company. All rights reserved. 29

Challenges & Opportunities securing Spot Quotes

• Being able to provide good scope or specification documentation in submitting

RFP’s to supply base

• Spot buys generally lack good specifications or are based on a particular manufacturer’s

specification or product sheet

• The element of timing is very often critical as plant outages or machine

stoppage’s affect production capability

• Gaining consistency in using the tools for Spot Buys and the experience the

technical buyers achieve helps considerably over time

• Speeds the process

• Allows for easy clarification of proposals in an electronic format

• Additional benefit is that it provides a range of prices for purchases that

historically are made with very little competitive environment

Solution Demo

© 2014 Ariba - an SAP company. All rights reserved. 31

Questions?

Thank you

For more information about Ariba Spot Quote, visit: ari.ba/for-spot-quotes

Contact information:

Sundar Kamak

Vice President, Procurement and Business Network Solutions

Ariba, an SAP Company

sundar.kamak@sap.com

© 2014 SAP AG. All rights reserved. 33 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

© 2014 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.

The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or

warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing

herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in

Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.