Supplier management is in many ways like the art of motorcycle maintenance – hands on, requiring discipline, and you can't leave anything to chance. Your suppliers have a deep impact on your sourcing and procurement process, and managing them effectively is the missing link between finalizing a strategic sourcing deal and realizing those benefits on the ground. This session will explore how the coming together of scalable supplier onboarding, effective supplier performance, and a host of best practices can help you manage your suppliers strategically.

1. Michael Koch, SAP Ariba / August 31, 2016
Zen and the Art of Supplier Management
Public

2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Managing suppliers remains challenging
Supplier
onboarding
Supplier
classification
Supplier
performance
Supplier
information
Fragmented supplier
data
Incorrect, incomplete,
and out-of-date supplier
information
Inconsistent processes to
measure supplier
performance
Limited supplier
qualification
Rudimentary supplier analytics

3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Ariba Supplier Information and Performance Management
Ariba Supplier Information and Performance Management is a SaaS solution that helps
enterprises efficiently qualify suppliers and accurately measure their performance through
seamless onboarding and continuous visibility into supplier performance indicators
Test
test
test
Registration and
onboarding
Supplier
qualification
Analyze and
assess
Monitor and
manage
Measure
• Single source of truth for all
supplier-related data
• Supplier management cost
reduction
• Risk mitigation
• Supplier performance optimization
• Corporate social responsibility
adherence
Benefits

4. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public
Ariba Supplier Information and Performance Management
Network-driven visibility to supplier information, performance, and risk
 Network-driven supplier information management
– Supplier onboarding and self-service registration
– Unique RFX-supplier profile synchronization to keep information current
– End-to-end supplier flow across Ariba unified seller console, network profile
 Collaborative supplier performance and risk
management
– Supplier performance management (SPM) process management/project
workspaces with recurring tasks
– Approvals, workflows, and certificate management
– Proactive alerting of out-of-threshold scorecard data/task initiation
– Supplier and category-specific scorecards
 Track performance indicators, risk scores, and supplier
nonconformance
 Supplier 360-degree reporting and SPM-specific
dashboards
 Bidirectional integration between ERP and supplier
master data modules to support supplier data
integration

5. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
Supplier management is multifaceted
Ariba Supplier Information and Performance Management helps you address the entire supplier lifecycle continuum
Configurable Web-based
questionnaire and
document submission
portal
Onboard Measure AnalyzeQualify
Approval workflows,
supplier categorization,
certification management
Ability to build and access
performance KPIs and
poll stakeholders
Role based dashboards;
out-of-the-box and
custom-based supplier
reporting
Monitor
Monitoring of supplier
performance trends; out-
of-threshold scores to
enable preventive actions

6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public
The benefits
Efficient supplier
onboarding
Automated supplier
assessment, qualification,
and approval process
Reduced supplier management cost
Ability to reduce supplier management costs by
60% to 80% through supplier visibility and
optimization initiatives*
Mitigation of supplier risks
Ability to track and measure
supplier adherence to regulatory
and compliance norms
Reduced supplier disruptions
Avoidance of critical supply chain
problems through supplier alerts
and indicators
Improved supplier performance
Ability to capture all supplier value,
ensuring that suppliers perform to
expected metric and service levels
*AMR Research: An Economic Dream: Supplier Information Technology’s Massive Cost-Saving
Opportunity by Mickey North Rizza, May 2009

7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public
Ariba Supplier Information Management
Key elements
 Supplier self-registration on buyer site and
ability to upload supporting credentials to
the buyer portal
 Automated routing for buyer approvals,
change tracking, and audit trails
 User ability to define supplier parent/child
relationships and add multiple supplier
contacts
 Supplier notifications on document
submissions/upcoming expiries for
insurance, financials, diversity, risk
 User flexibility to update additional supplier
information, assign supplier owners, and
define supplier groups and categories
Updated by
the supplier
Updated by
the third
party
Updated by
you/user

8. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
Ariba Supplier Performance Management
Key elements
 Allows creation of supplier surveys and triggers recurring stakeholder
feedback for employees who interact with suppliers
 Ability to define key performance indicators (KPIs) and map survey
questions to specific metrics
 Central KPI library for reusability, supplier scorecarding capabilities, and
management of SPM activities by categories or supplier groups
 Automated action item alerts due to out-of-threshold performance scores
 Ad-hoc and custom supplier reporting and performance-specific
dashboards enabling 360-degree visibility across the supplier base

9. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public
Effective supplier management is a two-way street
A unified seller experience to reduce supplier fatigue and drive adoption
Supplier Portal• Single supplier login across all SAP Ariba solutions and across all buyer relationships
• Intuitive seller registration and single terms of use for all SAP Ariba solutions
• Suppliers manage their profile across all potential and existing buyer relationships centrally
• Linking of multiple supplier user IDs to a single Ariba Commerce Cloud ID with multiple roles assigned

10. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Why Ariba Supplier Information and Performance Management
Management of all aspects of supplier information on an integrated Web-based portal and a
single profile for supplier to share and maintain
360-degree supplier information visibility
Integrated workflows, approvals, surveys, scorecards, and analytics for measuring supplier;
best-practice templates and services for assessment and corrective actions
Total performance management
Single sign-on across all buyer relationships and SAP Ariba solutions, enhancing supplier
ease of use and dramatically improving supplier adoption
Unified seller console
Ability to capture information across supplier lifecycle from onboarding to measurement
using a single platform with information synchronization with other SAP Ariba modules
and seamless integration with existing platforms
Ability to capture full supplier value
Integration into ERP and master data modules
Open APIs that facilitate bidirectional integration of supplier data from Ariba Supplier
Information and Performance Management and ERP/master data modules, thus enabling
customers to keep vendor data updated at all times

11. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
SAP and Ariba – leading the pack
The Forrester Wave: Sourcing and Vendor Management Tool Set
The Forrester Wave: SVM Tool Set, Q1 2013, by Lutz Peichert and
Mark Grannan, February 25, 2013
 Ariba Spend Visibility
 Ariba Strategic Sourcing
 Ariba Contract Management
 Ariba Supply Base Management
SAP Ariba solutions evaluated for The
Forrester Wave: SVM Tool Set report

12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public
 Ariba Spend Visibility
 Ariba Strategic Sourcing
 Ariba Contract Management
 Ariba Supply Base Management
Ariba’s rating is based on the evaluation of
SAP and Ariba – leading the pack
Gartner Magic Quadrant for Strategic Sourcing Application Suite
Magic Quadrant for Strategic Sourcing Application Suite : Gartner Deborah R
Wilson, Magnus Bergfors, Richard Adams, Feb 2015
“Ariba has significant market share, with approximately
1,000 strategic sourcing suite customers. Ariba
maintained its position in the Leaders quadrant and
improved its vision score as a result of investments in
multi enterprise grid functionality, mobile device support
and SAP HANA.” –
Gartner, Inc

13. Thank you
Contact information:
Michael Koch
Director
michael.koch04@sap.cm
+1-203.270.0765

14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public
Please complete session survey
Locate session Click Surveys button Select Breakout
Session Survey
Rate session