Managing your supply chain in this digital age is fast changing, with the entry of new players, new innovations, and new markets that lead to new levels of risk and compliance expectations. But managing these on an ongoing basis often depends heavily on a few team members, with limited internal and external data. Without a unified, comprehensive view or mobile visibility, you can end up with a “reactive” versus a “proactive” approach. By monitoring supply chain risk in real time, using feeds from global data sources in a unified view across your organization, you can achieve visibility across all tiers of global suppliers, and more proactively address any issues that arise. Join this session to learn how SAP Ariba solutions enable organizations to routinely manage supply chain risks in real time, helping them to be in compliance and Run Simple.

1. Nirav Ashwin Bhalavat, Bhawna Bhatia, SAP / August 30, 2016
Manage Supplier Risk in Supply Chain Through
Real-Time Market Feedback
Public

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Do the following questions … bother you today?
Is my supplier
compliant with
regulatory rules?
Is my supplier
employing child
labor or unethical
business practices?
Does my supplier
have enough
liquidity to process
my next large order
on time?
Is my supplier’s
plant facing labor
conflict?Regulatory
Social
Financial
Operational
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public

3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public
Is your business protected against supplier risks of today … and
tomorrow?

4. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
Even if you do have the right intentions … there are enough
roadblocks
1
Information barriers
 Engagement information is
in silos, across systems
 Gathering information from
suppliers is painful and
repetitive
 Third-party information is
noisy and costly
2
Fragmented process
 Risk assessment is manual
and not cascaded through
supplier lifecycle
 Third-party risk assessment
is not integrated into the
supplier lifecycle and
procurement process
 Risk assessment is not
rolled up to parent level
3
Custom risk models
 Custom reputation risk
models do not cover full
supplier picture
 Input to risk model is manual
and periodic – quarterly to
annual
 Models are spreadsheet-
based, difficult to maintain,
costly
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public

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Imagine … if you could get all this information in real time
Compliance Financial Reputational Sustainability Operational
Outside IQ
Risk incidents # Alerts
Accident 61
Complaint 1747
Contract 3889
Corporate ban 18
Corruption and bribery 106
Cyber crime 234
Deteriorating financial situation 208
Downsizing 749
Environmental issue 8
Financial penalty 327
https://www.youtube.com/watch?v=kvHUNlJ9428&feature=youtu.be
58%23%
10%
9%
Accident Compliance
Environmental Financial

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Due diligence and ongoing
monitoring
 Ongoing monitoring for reputational,
compliance, financial, sustainability,
and operational risks
 Due diligence for suppliers not yet
under a contract or engagement
 Historical risk incidents available on
supplier 360 for evaluation and
assessment
The solution
Ariba Supplier Risk Insights
Risk assessment and remediation
 Engagement-level risk projects to
assess inherent risk
 Built-in questionnaire templates
available for regulatory compliance,
forced labor, sustainability
 Assessment forms automatically
triggered based on risk and
supplier type
Comprehensive supplier 360 with
risk monitor
 One view with all risk content – media
alerts, country risk, compliance report,
internal supplier context
 Automated data models to calculate
risk scores based on company-specific
context and external events
 Internal company policies and
weightages for risk score calculations

7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
How will it work in your landscape …
Supplier risk with full supplier lifecycle management
Sourcing Contracts Procurement
Spend
visibilityInvoicing
Supplier risk with risk monitor
Vendor
model
Qualification and
segmentation
Supplier 360
Performance
management
Two-way
sync
Suppliers
ERPs
SAP Ariba source-to-pay solutions
Supplier self-service
Order / Invoice / Payment
Common supplier record
Compliance, open Web,
government, financial
Supplier risk and performance management

8. Demo

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What’s next
Supplier risk with configurable risk model
Supplier risk
insight model
Supplier engagements
Inherent Relationship
Performance Supplier ratings
Exposure
Business
continuity
 Supply
resilience
Business
reputation
 Responsible
sourcing
 Compliant
procurement
Incidents
Legal and regulatory
Financial
Operations
Environmental and
social
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public

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Planned innovations
Up-to-date risk info during
supplier engagements
Risk due diligence while
supplier onboarding
Personalized risk views
and alerts
Proactive risk monitor

11. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public
Sourcing savings
opportunities
Shareholder value
Inventory cost
avoidance
Disruption avoidance
Savings
Recurring One time
The impact of good supplier risk management
Contingent business
insurance savings
Manpower savings
Third-party risk
information sources
$2.1 M
$.05 M
$ .9 M
$ 9.1 M
$ 2 M
Manpower costs
Crisis containment
Inventory cost
avoidance
Sourcing savings
Insurance savings
Potential savings for US$1 billion in revenue*
Supplier risk management benefits spectrum

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Supporting materials
SAP Image Library LINK
SAP Brand tools LINK
Files from SAP Ariba Live, Madrid, June 2016 LINK