1. JANUARY 6, 2012
A RI BA K N OW L ED G E N UG G ET S
SUPPLIER ENABLEMENT
THE KEY TO DEVELOPING A
SUCCESSFUL PROGRAM
Global commerce today requires much more than scanning or faxing key documents such
as purchase orders, invoices, and payment remittance. For better commerce, you must
establish real-time electronic collaboration with your entire supply base on a global level, so
you can dramatically compress the invoice and payment processing cycle, comply with
contracts and regulations, achieve working capital breakthroughs that lower supply chain
risk, and more. But few organizations can effectively target and onboard thousands of
global suppliers.
The term e-enabled supplier, refers to a supplier who has successfully been enabled to
electronically transact and collaborate.
Industry research* states that Best in Class organizations:
• e-Enable 50% of their suppliers versus 23% enabled by all others
• Realize transaction-processing costs 47% lower than all others as a result of
enabling their suppliers
• Have 71% lower processing costs with even greater hard-dollar savings over
those that do not e-enable their suppliers.
SPECIAL POINTS
OF INTEREST:
You can cut costs, time, and risks by overcoming the barriers between you and your
suppliers. Specifically, by automating and connecting your procure-to-pay (P2P) processes
to their order-to-cash processes. Set value-driving objectives for your P2P program, and
• Ariba Network has
measure results/benchmark your organization’s performance against industry and peer
over 700K suppliers
groups.
• 45-60 percent
• Ensure compliance with processes, policies, and contracts
reduction in error
rates and error • Leverage your payables to optimize working capital
reconciliation costs
using Ariba Network • Mitigate risk with greater visibility and control
• Easily onboard all
• Improve ROI
your suppliers and
achieve quicker value
with those suppliers P2P automation is critical for improving inter-enterprise collaboration.
already using the In this Ariba Knowledge Nugget we will explore how to develop
Ariba Network
a successful Supplier Enablement program.
*Aberdeen Group 2010

2. DEVELOPMENT OF YOUR PROGRAM
WHAT SHOULD YOU BE THINKING ABOUT?
Moving your organization from a traditional paper or manual environment to an electronic process takes
planning:
• What resources will be needed to support this process?
• How will roles within our organization change?
• What policies and procedures need to be reviewed/changed?
• What will the affect be on our Buyer community?
• What will the affect be on our Supplier community?
Think about this as a Program and not a Project:
• This should be developed to be a standard, ongoing program and not a short term project.
• This kind of planning and preparation will ensure that you will be able to manage business processes
and supplier relationship long after your work with Ariba project teams come to an end.
Having internal buy-in from key areas within your organization is key to success:
• Solicit ideas/input from all areas within your organization where this change will have an impact:
• Accounts Payable; Procurement; Information Technology; Sourcing; Legal; Tax
• Ensure that you have internal compliance with key business partners up front
Build a strong supplier compliance plan:
• The most successful organizations who implement Ariba solutions have a strong supplier compliance
plan.
• It is extremely important to document your compliance plan and enforce it from the onset.
• It is easier to relax your policy for a few suppliers as the need arises than it is to try enforce strict
changes down the line.
The Networked Enterprise
Companies that use collaborative technology to connect
internal employee efforts to customers, suppliers, and partners
are 50% more likely to:
•Be a Market Leader
•Gain Market Share
•Achieve Higher Margins
•Increase sales

3. DEVELOPMENT OF YOUR PROGRAM
WHAT SHOULD YOU BE THINKING ABOUT?
What resources are needed to support this process change?
Each organization functions in a unique manner and depending on what exactly is changing, you may need to define roles in
the following areas:
• Accounts Payable
• Corporate
• Procurement
• Treasury
• Information Technology
• Legal
• Tax
How will roles within our organization will change?
• Roles within an organization will change as the traditional paper and manual processes in place today will no longer exist
(or at least be much less of resource utilization).
• Supporting end users to utilize new functionality as well as any change in business process.
• Supporting suppliers will still be needed, but the day-to-day support should be much less frequent. The functionality is
intended to build supplier self-sufficiency, (i.e. invoice status does not need to be a phone call as the supplier can check
the invoice status on the Ariba Network).
What policies and procedures need to be reviewed/changed?
• During this type of change, it is best to review all business process surrounding Procure-to-Pay. If changes are needed
and for example, changes in technology are required to support those changes, this is the time to make those adjustments.
• How Buyers create and submit purchase orders (and change orders) should be clearly defined and implemented globally.
What will the affect be on our Buyer community?
• Depending on the specific business process change, these could affect all Buyers.
• Purchase Order processes should be documented and end users need to be trained so that consistency exists not only
internally, but for your suppliers.
• Attempting to build multiple processes to accommodate all internal scenarios is difficult to implement and prone to errors.
What will the affect be on our Supplier community?
• Suppliers will be expected to move from traditional phone calls, emails and paper mail document exchange to a consistent,
electronic process through the Ariba Network.
• Suppliers may be hesitant and convey that this change is not in their best interest.
• Suppliers, as well as your stake-holders, need to understand and learn the true value of using the Ariba Network.
• Cost saving value of paper versus electronic
• Additional business growth opportunities for suppliers
• Ariba can help with this!

4. WHERE DOES EVERYONE FIT?
•The table below represents where different areas of your organization can fit into the Supplier Enablement program
development and ongoing support.
•Internal buy-in is key! If the individuals within your organization help define the program, you are more likely to have
success across the organization long term.
As you begin to develop a Supplier Enablement Program,
you will need to define the resources needed to support
this ongoing. Changes to roles and responsibilities are
inevitable and can span across several departments within
your organization. It is important to note that traditional
roles and responsibilities may not change 100%, but by
the simple nature of how suppliers will transact in the
future will mean a change in some of the functions
performed today.
To prepare for your program changes ensure that all areas
that will be affected are part of the planning process as
this will ensure that internal compliance does not become
a stumbling block late in the process.
Internal support and buy-in is critical for
supplier success and compliance!

5. S T A F F Y O U R P R O G R A M A D E Q U AT E LY
FOR MAXIMUM SUCCESS
Customer roles:
• Supplier Enablement lead (coordinate/fulfill the following roles) – 1FTE (ongoing less)
• Supplier master data (collection and updates) -1FTE/500 Suppliers
• Supplier communication – 0.2FTE (ongoing less)
• Internal communication on SE program/change management and compliance message – 0.25FTE
(ongoing less)
• Contract and catalogs: Professional Buyer for – 5-10 hours/ contract or catalog
• Invoice related: AP Personal for - 0.5FTE for 4month per region
• cXML Integrated supplier contact + testing support – 0.5FTE per suppliers 4 weeks
Roles with outsourcing* potential
• Calling campaign
• Follow-ups
• Supplier training sessions
• Supplier support
• Progess tracking
• Technical contact person for catalogs questions
* includes shared service centers (benefits are: availibility, languages, tracking)

6. S TA F F YO U R P R O G R A M A D E Q U AT E LY F O R M A X I M U M S U C C E S S
Roles and Responsibilities - Procurement
Program Management (Lead Role)
Oversee supplier enablement program
• Ensure internal processes and procedures are being followed
• Define escalation path for non-compliant internal users
• Define escalation path for non-complaint suppliers
• Define reporting/score card requirements – provide information to management weekly, monthly, etc.
• Ensure proper resources are in place, trained and have clear direction on responsibilities
• Define testing process for engaged suppliers
• Define training process for engaged suppliers: who will be required to test with <<Customer>> and what will that process
be?
AN Administration (Supporting Role)
• Supplier relationship maintenance
• Add suppliers needed outside of Ariba process: there may be times when you need to add a supplier to the Network
based on a request internally or by a supplier but it needs to be done before the next scheduled wave.
• Private ID maintenance
• Ariba Network transaction rules, end user login accounts, general account settings
• Maintain all purchase order and invoice rule changes
• Create and maintain all user login accounts for specific roles
• Reporting
• Develop standard set of reporting on the Ariba Network for PO and Invoice specific reporting (score card feed)
• Supplier Enablement Status: which suppliers are not complaint; which are ready to transact; etc.
• Communication Maintenance
• Supplier Portal: changes to portal messaging; updating attached documentation
• Welcome Letter: changes to Welcome Letter sent to suppliers; (inviting them to the Ariba Network)
• Supplier Upload Preparation: Prepare file for supplier uploads to the Ariba Network. This is a specific CSV template that
must be used to upload/engage bulk lists of suppliers.
• Training
• Organize and deliver training sessions with suppliers as necessary
• Organize and deliver training sessions for internal users (business process changes, Ariba Network responsibilities)
• Testing
• Ensure EDI, cXML and CSV suppliers have properly tested prior to moving to Production
• Validate Invoices for exceptions or invoices that are consistently being rejected because of missing information
• Communicate needed changes to suppliers
• Re-Test when necessary
• Go Live Preparation
• Ensure internal process is completed to “turn suppliers on” in Production
• This should be a documented process with IT involvement
• Post Go Live
• Monitor and enforce supplier compliance
• Contact suppliers directly who are not in compliance
• Engage individuals within <<Customer>> to assist with supplier compliance where necessary
• Monitor and enforce internal compliance (invoice/payments are being approved in timely manner)

7. S TA F F YO U R P R O G R A M A D E Q U AT E LY F O R M A X I M U M S U C C E S S
Roles and Responsibilities - AP
Supplier Selection
• Pull listings from vendor master system for suppliers that are targeted to enable on the Ariba Network
• Collaborate with other business units to ensure selected suppliers are correct. This could include Sourcing, Procure-
ment and any other specific line of business that utilizes the suppliers goods/services.
• Determine if the internal business process around PO’s and invoicing fit the Ariba process. There may be for exam-
ple, contractual obligations that conflict with a process change at this time. This may need to be a supplier that is
targeted at the time the contract is being renewed so that specific PO/Invoicing language can be added to the con-
tract.
Data Collection
• From the list of selected suppliers, determine what data is missing from the individual suppliers, (phone number, email
address, fax numbers, contact names, etc.).
• Obtain Contact/Address Information
• Determine method to collect data (forms, phone calls, Ariba data collection team).
• Contact suppliers with missing or outdated information.
Vendor Master Maintenance
• Update Vendor Master Records – make changes to vendor master based on collected data.
• Obtain updated W-9 forms where required.
Develop New Supplier Process
• New suppliers should be added through a formal process. This puts in a layer of control over how many new suppliers are
added or if employees should be using a preferred supplier (i.e. office supplies).
• The goal is to control the amount of suppliers added to the system or if suppliers are added, the supplier is aware that PO/
Invoice process will be done through the Ariba Network from the start of the relationship.
• Consider changes to contracts to include language on transaction over the Ariba Network.
Roles and Responsibilities - Other
IT Resource
• There are times when there is a need for an IT resource who is familiar with the project to troubleshoot purchase orders
and/or invoices. This is not a resource that is needed full time but needs to have some responsibility defined within their
role.
• EDI and cXML suppliers sometimes need a <<Customer>> IT resource to understand the validations performed within the
back-end systems.
End User Training/Support
• Depending on corporate policy and procedure, as new employees are hired for roles that support this program, standard
training material and practices should be defined and implemented.
• This process could be a defined as standard new hire training, for example.
Escalation Contacts
• As processes are being defined, there needs to be a clear path of escalation. Although certain managers, (or higher) will
not be using the system on a daily basis, they need to be aware of what their role is when contacted for supplier and
transaction escalations.
Score Card Reporting
• This role can potentially fit within a few different areas (AP, Procurement, Finance, IT). Depending on the process
defined, what reporting facts will be delivered and who will receive the score card?

8. S TA F F YO U R P R O G R A M A D E Q U AT E LY F O R M A X I M U M S U C C E S S
Skill Set—Job Descriptions:
The following list of skill sets are examples of what is needed or what can be considered in defining future roles.
Note: These are all taken from an Ariba client who built a SE Program while implementing Ariba Solutions. These are specific to a Supplier
Enablement Program Manager or Lead Role.
Sourcing Methodology background
• Provides insight into building a supplier on-boarding process as well as when to engage teams throughout the organization.
Bachelors degree or equivalent work experience in Information Services with EDI or cXML specific knowledge
• Ability to understand Supplier EDI/cXML implementations
• Suppliers who also have certain invoice failures for example, may reach out to <<Customer>> directly with questions
• Note that suppliers utilizing these technologies can be directed to the Ariba Help Desk
Excellent interpersonal, communication, and analytical skills
• Candidate must be able to work with multiple departments and all levels of management
• Must be able to communicate effectively
• Ability to analyze issues with business documents (PO and invoice)
• Ability to analyze and determine solutions to problems that arise with business processes
Workload management skills and the ability to get engaged in complex assignments and meet tight deadlines
• Efficient with Microsoft Office suite (including Project and Visio)
• Reporting tools and applications will differ and having a good working knowledge of the entire MS Office suite will allow
a variety of reporting options.
• Strong project management skills
• Supplier enablement encompasses many projects at the same time. When your organization engages with larger,
more strategic suppliers, these need to be treated and organized as a project.
When Working with Your Suppliers When Working with Your End Users Buyer Involvement
• Get imitate buy-in to the benefits and • Keep end users up to date on • End to end Supplier Enablement
avoid resistance enabled commodities and preferred incorporated to new contracts (or
suppliers amendments)
• Don’t hide supplier fees
• Manage Catalogs to ensure items are • Alignment of decentralized and
• Explain Supplier advantages
available centralized buying activities
• Live demo to show ease of use
• Contracts to indicate preferred • Collaborative Drive with Sourcing
• Engage marketing suppliers Efforts = Partnership with Strategic
Sourcing
• Hand-hold suppliers • Monthly email notification with new/
• Discount terms can be offered to changed commodities or suppliers • Sourcing must have the final e-
entice suppliers to join enablement in mind
• Enforce 100% compliance via single
requestion platform with new vendor • New/Amended Contract Clauses
process
• Consider local requirements in global
contracts

9. REMEMBER — ARIBA IS HERE TO HELP
Leverage Ariba’s proven methodology and services team to expedite supplier enablement or use our self-service tools to
manage the process in-house.
Outsource Supplier Enablement
• Experienced teams dedicated to on boarding, tracking and educating suppliers and ensuring supplier
• satisfaction
• Accelerate the establishment of ready-to-transact supplier relationships (for portal and integrated suppliers)
• Enable large numbers of suppliers by leveraging Ariba’s organizational structures, including 24-hour support and
global coverage
• Scale your supplier enablement with additional capacity from Ariba
• Easily onboard all your suppliers and achieve quicker value with those suppliers already using the
Ariba Network Self-Service Ariba Supplier Enablement Automation
• Load full vendor master file and segment into waves
• Easily assign suppliers to enablement activities and quickly create supplier accounts
• Monitor supplier progress throughout the process, and know when a supplier is ready to transact
• Add customized content to supplier enablement welcome letters
• Systematically capture and address supplier questions
• Download supplier enablement status reports for management updates
Ariba Supplier Enablement provides options for moving suppliers to an electronic process.
Leverage our proven methodology and services team to handle enablement for you or use our self-service, supplier
automation tools to manage the process on your own. Based upon Ariba’s best practices expertise, these tools empower
you to quickly target and enroll new suppliers to meet your objectives. Companies that partner with Ariba Supplier En-
ablement Services benefit from the following value-added capabilities that ensure effective and efficient trading partner
collaboration.
Ariba Supplier Enablement Results
World-class organizations have enabled thousands of their global suppliers on to the Ariba Network for better business
commerce.
• A global equipment manufacturer has activated more than 4,400 suppliers globally to process 90% of its
global indirect spend through the Ariba Network.
• A leading computer systems manufacturer on boarded 850 EMEA suppliers within three months. About 50%
of targeted suppliers were already participating in the Ariba Network, accelerating the supplier enablement
process.
• A Fortune 100 energy company enabled more than 1,400 suppliers across eight SAP systems with Ariba for
electronic processing of PO and non-PO invoices.
• A global entertainment company enabled more than 2,200 suppliers for PO and invoice automation, detailed
remittance delivery, and dynamic discounting—reducing AP headcount by 30 percent.