SunTrust Bank implemented a spend management strategy using Ariba solutions to gain spend visibility, ensure contract compliance, and realize savings. Prior to the strategy, SunTrust lacked spend visibility, a contract repository, and place to store sourcing documents. The strategy included identifying commodities, enabling electronic transactions with suppliers, and continuous improvements. SunTrust deployed Ariba solutions for sourcing, contract management, procurement, accounts payable, and the Ariba Network. The strategy increased internal and external collaboration and improved supplier experiences. SunTrust measures value through savings and compliance metrics.

1. The Collaboration Imperative in
E-Procurement – More than Just
Procurement and IT Talking
Ashley Miller, GVP, Strategic Supply Management, SunTrust Bank
@ashleymiller124
March 2014
#AribaLIVE
@ariba
© 2014 Ariba – an SAP company. All rights reserved.

2. SunTrust Bank at a Glance
• The most direct corporate ancestor, the Trust Company of
Georgia, was founded in 1891, and merged with SunBanks,
Inc of Florida in 1985 to form SunTrust Banks, Inc
• Having total assets of $173.4 billion it is one of the nation's
largest and strongest financial holding companies
Diversified Business and
Product Mix
• Employs approximately 30,000 teammates
Retail &
Commercial
2
© 2014 Ariba – an SAP company. All rights reserved.
Corporate &
Investment
Banking
Household
Lending
Wealth &
Investment
Management

3. Current State Before a Spend
Management Strategy
•
Lack of Robust Spend Visibility
Limited Product/Line Item Visibility
Imperfect Visibility into What Was Being Purchased and at What Price
•
No Formal Means for Spend/Contract Compliance
Contracts were Negotiated, but Limited Ability to Match Invoices to Contract Terms
No Automation to Match Compliance
•
No Centralized Contract Repository
Contracts were All Over the Bank, and No Visibility into How Many There were and What they were
•
No Place to Store Sourcing Project Documents and Deliverables
Documents were Not Retained - Contract, Supplier and Commodity Strategies were Lost
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© 2014 Ariba – an SAP company. All rights reserved.

4. Spend Profile for a Financial Services
Organization
•
•
80% of spend concentrated with
under 400 suppliers
•
4
Over $2 Billion
of procurable spend
with over 8,000 suppliers
Critical suppliers account
for approximately
40% of total spend
© 2014 Ariba – an SAP company. All rights reserved.

5. Goals of a Successful Spend
Management Program
•
Contract Compliance
•
•
•
Spend Visibility
•
•
Implement processes and reporting that ensures detailed information on our spend
(What was bought, How much was paid, How many received, Who consumed,
Supplier utilized)
The Path to Success
•
•
•
•
5
Ensures financial stewardship and expense management of Supplier Spend
Invoices are matched to negotiated Contract Rates with preferred suppliers
Identify & Solution Commodities
Enable Suppliers Electronically
Transact Electronically
Implement Continuous Improvements
© 2014 Ariba – an SAP company. All rights reserved.

6. Strategic Supply Management Overview
STRATEGIC SOURCING
Strategic
Sourcing
Relationship
Management
PROCUREMENT
Procurement
Sourcing
Procurement
Operations
OPTIMIZATION
Sourcing
Transformation
Sourcing
Analytics
Focused on bringing alignment of
supply strategy to business partners
Focused on efficient delivery, risk
management & controls
Focused on supporting, enabling, and
sustaining the transformation
Category Management:
 Apply deep market and category knowledge to lead
strategic sourcing strategies for products and services
owned by the LOB’s & Functions.
 Partner with the business to maximize performance,
delivery, and value realized in spend clusters
 Identify and support global outsourcing & offshoring
needs of the enterprise
Relationship Management:
 Serve as single point of contact to provide clarity &
transparency on SSM deliverables to specific RMsupported LOB’s & Functions
 Partner with Sourcing, Procurement, & SSM
Optimization to ensure LOB & Function business goals
are achieved
Supplier Diversity:
Promote & enable opportunities for SunTrust to do
business with minority and woman owned suppliers
Provides Outsourcing Transition Management:
 Provide guidance to LOBs/Functions on various
Outsourcing projects
Sourcing & Contract Management:
 Concentrates on the routine sourcing and
contracting activities in support of
Strategic Sourcing
 Leads sourcing strategies for products &
services owned by SSM (supplies, travel,
etc)
 Focused on efficient delivery, flexible
processes, cycle time reduction, contract
risk management
Procurement Operations:
 Provides back-office operations/support
across the sourcing organization
 Responsible for Source-to-Pay process
optimization
Contract Administration:
 Provides administration of third party
contract repository
Sourcing Transformation:
 Provides program management for deploying the
organization engagement model & ensuring
sustainability & change management support
 Supports development of governance councils for
effective spend management
Sourcing Analytics:
 Provides analytics & decision support across teams
(i.e. spend visibility, category analyses, supplier
financial viability, data analytics)
 Develops & monitors KPI’s, metrics, and dashboards
(i.e. process & organization performance at the
category level, LOB level, and executive level)
Process, Policy & Audit:
• Maintains SSM Policies & ensures processes are
established with proper governance & audit
Financial Management:
• Performance measurement & reporting
• Budget and planning for SSM
Systems & Tools Administration:
• Provide systems & tool support & administration

7. Implementation of Spend Management
Platform = Increased Internal and External
Collaboration
Finance
LOB
Accounting
Supplier
Outsourcing
AP
Procurement
Legal
Tax
Business
Continuity
Information
Security
•
7
ARIBA
3rd Party
Risk
Management
Supplier
Diversity
The majority of collaboration internal and external happens in the tool
and can be tracked and reported
© 2014 Ariba – an SAP company. All rights reserved.

8. Supplier Experiences
•
•
SunTrust started with no spend under management
When spend management platform was implemented, suppliers
were trained on the Ariba Network and onboarded
Supplier A: 0% to 100% spend transacting across the
Ariba Network
Supplier B: Repurposes Accounts Receivable man hours
because they do not have to follow up on outstanding invoices
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© 2014 Ariba – an SAP company. All rights reserved.

9. Value Capture from a Spend
Management Strategy
Identifying Value
Analyze
Spend
Source
Savings Category
Supplier Management
Buyer / LOB Compliance
Discounts and Rebates
Spend Visibility - Improved
Sourcing
Accelerated Sourcing
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Realizing Value
Contracts
Procure
Invoice &
Pay
Manage
Savings Levers
Ensure Control and Compliance in our Payment Process by matching all Invoices Expenses direct to negotiated
Contract Terms
Automated requisitions and approvals enforce use of Preferred Suppliers and Demand Management / No PO
No Pay policies before the purchase commitment
Automate invoice processing allows (1) negotiate for early payment discounts (2) capture these discounts
through timely payments
Significantly improve data leads to improved Sourcing Strategies, Pricing, Reduce number of suppliers, and
better supplier performance
Manage larger projects and source more quickly through tools for integrated project management, contract
creation, RFx, & reverse auctions
© 2014 Ariba – an SAP company. All rights reserved.

10. Ensuring Value Realization
Build a Scorecard and Measure Results
Value Lever
Price Reduction
Reporting Metric
Sourcing Project Savings %
Rebate Dollars
Spend Compliance
% of POs on Catalog or Contract
% of Invoices Reconciled to PO or Contract
% of Addressable Spend with Preferred Suppliers
Process Improvement
% of POs on Catalog
% of Electronic Invoices
Invoice Cycle Time
Cash Management
Invoice Time to Approval
Average Days Payable Outstanding
Supplier Management & Leverage
10
© 2014 Ariba – an SAP company. All rights reserved.
# of Suppliers That Make up 80% of Addressable Spend

11. Best Practices & Key Learnings
•
•
•
•
•
•
•
•
11
Have Senior Leadership involved and supportive of a spend management strategy
Create a No PO or C, No Pay policy to let suppliers know you will not pay them without a
PO# or C# in advance
Create a Category Onboarding plan
Cease accepting paper invoices for suppliers where you have an Ariba relationship
Understand what commodities work best with each Procurement solution (Catalog, NonCatalog, Contract Compliance, Services Procurement)
Important to create a strong connection/line of communication between sourcing,
procurement, AP
Realize P2P strategies for services likely requires a phased approach with a solution that
matures in cycles of process improvement
Realize…THE VIEW IS WORTH THE CLIMB!
© 2014 Ariba – an SAP company. All rights reserved.

12. Next Steps for SunTrust Bank
•
Continue to strive to achieve more spend under management
We are currently at 87.4% spend under management, but we want more
•
•
Continuous Improvement, Continuous Improvement,
Continuous Improvement
Work on continuing to tweak Ariba to make it work better for us so
that we can be more efficient and effective
Never be satisfied
12
© 2014 Ariba – an SAP company. All rights reserved.

13. APPENDIX
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© 2014 Ariba – an SAP company. All rights reserved.

14. Ariba Solutions Deployed at SunTrust
Supplier Performance Management
Performance Surveys
Scorecards
Sourcing
Project Management: Reporting, Project Cycle time, Project Artifact
storage, etc
Standardization in Process & Templates: Sourcing Library
Performance of RFI, RFP, & Auctions
Document Archival
Savings Tracking
Contract Management
Contract Administration: Storage, Archival, & Retrieval
Establishes linkage between Master & Sub-Agreements (approx.
18,000 agreements)
Contract Compliance: Invoice to Contract Match, Contract Releases
Reporting: Expiring Contracts, Contracts by Supplier, LOB, etc
eSignature getting ready to be deployed
Approvals for contracts electronically routed
14
© 2014 Ariba – an SAP company. All rights reserved.
Procurement
Catalog & Non-Catalog Purchase Orders: Punch-out, supplier
hosted, custom workflow, etc (approx. 200,000/yr. & 5,000
users/mo.)
Services Procurement in use for
Consulting, Print, Recruiting, Training (collaboration feature not
currently in use)
Accounts Payable
Invoice Processing: Invoices matched to PO and/or Contract
Invoice Workflow: Exception handling, approvals, receipt verification
Payment Terms: Prompt Payment Discounts
Ariba Network
eBilling: 95% volume of invoices are eBilled & about 50% of spend is
eBilled
Electronic issuance of POs, Contracts, etc
Electronic Supplier Connectivity: EDI, CXML, CSV uploads
Catalogs: Hosted and Punch Out (75)