"Thinking about expanding your procurement solution? Seeking additional value and ROI? How do you get from here to there? What examples do you have? Many organizations start the digital journey with a partial solution to kick off a transformation process. Once you have experience with your revised operating model and SAP Ariba solutions, why not take the opportunity to maximize efficiency and ROI? Likewise, you may have a legacy on-premise SAP Ariba solution that is not meeting your requirements today in terms of scope and response time. Now is a great time to move to our new cloud solutions and realize lower TCO, a great user experience, and tremendous benefits."

1. Bruce Kuppersmith and Johan Hedborg, SAP / August 30, 2016
Growing with SAP Ariba Solutions
Public

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Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is confidential information (per the contract between our companies), and must not
be further disclosed, as stated in the confidentiality clause of that contract. This presentation
contains only intended guidance and is not binding upon SAP or Ariba to any particular course
of business, product strategy, and/or development. Its content is subject to change without
notice. SAP and Ariba assume no responsibility for errors or omissions in this document. SAP
and Ariba shall have no liability for damages of any kind including without limitation direct,
special, indirect, or consequential damages that may result from the use of these materials.

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Today’s agenda
Introduction
Sourcing and Contract – What's Next?
Operational Procurement – What’s Next?
On Premise Solutions – What's Next?
Summary and Q&A

4. Introduction
Johan Hedborg
Procurement Solution Consultant
Bruce Kuppersmith
Senior Director, Value Engineering

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Year 1901– Carl Rickard Nyberg

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Year 1903 – Wright brothers

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Missed the train?

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Increased globalization
 Expansion into new markets
 Global process standardization
 International supply chains
Economic volatility
 Volatility in markets
 Decreased stock valuation
 Slow economic growth
Pressure on margins
 Profitability by segments
 Decreased budgets and spending
 Determination of the cost to serve
New business models
 Shared services organizations
 Business partnerships
 Leveraging Big Data for
decisions
Regulatory changes
 Increasing disclosure requirements
 Country-specific regulations
 Industry-specific disclosures
Focus on risk
 Supply chain disruption
 Financial risk and fraud
 Commodity risk
Changing environment
Competing pressures on procurement organizations

9. Sourcing and Contracts – What's Next?

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Risk management

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Supplier and contract risk management
Scale risk
management to large
supply base
Manage risk
actively based on
engagement
Achieve
transparency
across end-to-end
business process

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Supplier and contract risk management
Supplier workbench with risk monitor
 Highlight the top at-risk suppliers
in your supply base
 Drill down to identify types of risk
 Identify right team and right time
to engage

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Supplier and contract risk management – risk scoring

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Direct material sourcing – what options do you have?
Standalone niche
vendor solutions
Highly customized
on-premise systems
Partial coverage with
current sourcing
solutions for indirect
spend
Do nothing/manual no
end-to-end systemic
process

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Direct material sourcing – what if you could…
Integrate source-to-
contract processes to
ERP and execution
systems
Address all categories of
direct and indirect spend
Manage source-to-
contract processes on a
single solution

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SAP Ariba solutions for direct material sourcing
Collaborate source to contract for all spend types on one platform

17. Operational Procurement – What's Next?

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Guided buying
 One place to buy
 Smart guidance to direct users to the right
items, preferred suppliers, and compliant
policies
 Control tower for decentralized management of
policies, categories, and suppliers by budget
owners

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Guided buying

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Spot buy
TACTICAL
• 20% of indirect spend
• 80% of suppliers
• 1-4 weeks
STRATEGIC
• 80% indirect spend
• 20% of suppliers
• 4+ weeks
SPOT BUY
• 15% of indirect goods – both
Strategic and Tactical
• Non-sourced / non-contracted
• Not in company catalog
• Need immediately
SUPPLIERS
20% 40% 60% 80% 100%
$$$$
$$$
$$
$
15% of indirect goods are from one-off purchases

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Ariba Collaborative Supply Chain (CSC)
 Gain early visibility into potential supply disruptions
 Reduce inflexible point-to-point solutions and manual portals
 Benefit from better integration and robust road map
Seller’s
internal processes
Buyer’s
internal processes
Direct collaborative
processes with CSC

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Ariba Collaborative Supply Chain (CSC)
Buyer
Purchase order/subcontract order
Schedule agreement release
Component inventory data
Goods receipt notice
Supplier/contract
manufacturer
Component receipt notice
PO confirmation
Component consumption notice
Advance ship notice
Manufacturing and retail
collaborative processes
Self-billing/ERS invoice
Component ship notice
Consignment transfer
Payment
Invoice
 Direct materials purchase order
collaboration
 Scheduling agreement
release
 Subcontracting order collaboration
 Consigned inventory collaboration

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Don’t forget mobile

24. On-Premise Solutions – What's Next?

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On-demand/cloud computing benefits
Dramatically improve your company’s economics and business agility
Faster innovation adoption
• Adopt new technologies quickly
• Always have the latest versions of
the application
• Leverage well-tested IT best
practices
Cost reduction
• Cloud-based solutions require less
up-front investment.
• Overall IT total cost of ownership
(TCO) is lower.
Quicker time to value
• Gain shorter implementation cycle
times that result in faster benefits
ramp
• Add new channels, partners, or
suppliers more easily and in far less
time than traditional application
architectures would have needed
• Support M&A and expansion activity
flexibly
1 2 3

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We build
New and enhanced features
We deploy
New features automatically deployed – multiple releases per
year
We partner
Customer enhancement request-driven features and functions
How we deliver innovation
1
Technology foundation
Cloud innovation
Standardized process
Automatic upgrades
Singleplatform
On-demand offers your business innovation without disruption as we build and
deploy enhancements on a regular release cycle based on customer input.
Faster innovation adoption

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Quicker time to value 2
3x-4x
Faster go-live/
implementation cycle times
2x-3x
Higher levels of user
adoption
Years 1 and 2
Achievement of tangible
savings
With shorter implementation cycle times and increased levels of user and supplier
adoption, tangible benefits can be achieved in the first and second years.
 Go live in weeks or months, not years
 Leverage prepackaged integration
 Take advantage of extensive network supplier match
 Mobile-grade user experience = more adoption and less training

28. Q&A

29. Thank you
Contact information:
Bruce Kuppersmith
Senior Director SAP Ariba
Value Engineering
Bruce.Kuppersmith@sap.com
Johan Hedborg
Senior Solution Consultant
johan.hedborg@sap.com
#SAPAribaLive

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