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Dan Schunk, Procurement Solutions Manager, SAP Ariba
Eve Simpson, Supplier Enablement Lead, Project Springboard, Medibank
Emma Gluskie, Group Procurement Manager, Coca-Cola Amatil
August 22, 2017
How to Get Mass Supplier Enablement:
Transform Your Supplier Enablement
Program Globally
2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Introductions
Supplier Enablement Overview
Medibank Program
Coca-Cola Amatil Program
Panel Questions
Agenda
3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
What’s happening in the world today
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 That’s why we introduced the light enablement
methodology in March 2016 (revolution).
 Light account is an evolution of light enablement
addressing limitations we had when using the
current one-time password (OTP) approach.
 Now our vision can be accomplished.
 AND we still have a two-sided business model.
 AND fully managed supplier enablement is still
required and key for the ROI of our customers.
 Segment suppliers into three groups (A, B, C):
A: Suppliers need full enablement out of the gate
B and C: Suppliers can and should be enabled on the
fly using light enablement  95%
Our vision for supplier onboarding
Our goal is to digitize transactions between all trading partners and remove
barriers to conduct commerce
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
TRR invite
Light enablement versus full enablement  supplier segmentation
Help desk and support
M2M integration
Mobile portal
Full CSC transaction set
Innovations such as
AribaPay ACH
…
SLP, SAP Ariba
Sourcing, SAP Ariba
Discovery
Interactive e-mail
Light account
Free, simple
Upgrade by choice
NEW! LIGHT ENABLEMENT
$
A B C
500
suppliers
1,500
suppliers 5,000…suppliers
No compulsion
Buyer
Eliminate
friction
Inbox/outbox
Catalogs
Reports
Interactive e-mail
All basic fulfillment
transactions +
€$ ¥
Crucial for
business case
NEW! LIGHT ENABLEMENT
Full Ariba Network functionality
Full enablement out of the gate for vendors
with legacy EDI integration or catalogs 
strategic suppliers
But only ~2% to 5% of the active vendors
6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Light enablement is the methodology
All suppliers perceive and pay for value in line with their usage
 Exchange of all basic transactions, free for the supplier, with no change management supporting instant
sign-up
 Light-enabled suppliers can choose to pay for value-added services
Incentivize buyers to enable all suppliers
 Ability to turn off parallel processes, reduce supplier inquiries, get more accurate invoices
 Majority of suppliers can be enabled ad hoc  start transacting faster and gain digital efficiency sooner
Supplier enablement is efficient
 Free and e-mail based: minimal change impact
 Only actively enable suppliers that need full-use account like catalogs and integration. All others come on
through light enablement  less effort and expense needed
Light enablement (LE) methodology
7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Supplier onboarding process
Key high-value
categories and spend
Everyone following
processes/categories
across geographies
All trading partners
regardless of size
and sophistication
Category optimization
and replacement
suppliers across areas
Easy setup | Frictionless onboarding | Rapid expansion
Enablement
planning
Primary supplier
rollout
Secondary supplier
enablement
Process/category/
geography
expansion
Optimized
enterprise
8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Supplier enablement project phases
Strategy Continuous onboardingPilot onboardingDesign and build
 Continue supplier onboarding by
steady state team
 Adopt Ariba Network internally and
externally
 Enable new vendors through an
automated approach
 Roll out new geographical regions
 Onboard pilot suppliers
 Train suppliers
 Adjust communication approach or
configuration, if needed
 Report on progress and follow up
with noncompliant suppliers
 Conduct ordering and invoicing
requirements gathering
 Build communication and escalation
strategy
 Create supplier education material
 Configure Ariba Network
 Execute internal change
management
 Conduct user acceptance testing
and end-to-end testing
 Set project goals
 Assign resources
 Analyze vendor master data
 Identify suppliers and develop
flight plan
 Define compliance message
 Define pilot suppliers
Project deployment phase Ongoing supplier enablement
Ongoing change management
Ongoing performance monitoring
Supplier Enablement Program:
Medibank
11
2,388Number of employees
*full-time equivalent at 30 June 2016
27.6%
Medibank & ahm
market share
*by principal policyholders at 30
June 2016
3.8
million
members
*at 30 June 2016
$5.1b
Member benefits paid in 2016
467
Number of hospital providers in
our Members’ Choice network
*at 30 June 2016
13,552
Number of ancillary providers in
our Members’ Choice network
*at 30 June 2016
Award winning business
8 years
in a row
1,300,000+
Hospital admissions
covered in 2016
26,000,000+
Ancillary services
covered in 2016
What’s changing for Medibank
Simple & effective, commercial & accountable, customer obsessed.
• We are introducing new systems, streamlined processes and ways of working where there are
currently no systems in place.
• To ensure success, we recognise the need for cross-functional collaboration
• Transforming our Procurement, Finance and People & Culture teams to enable frictionless
business with our suppliers and business partners
12
#makeprocurementawesome
Procure to Pay Focus Desired State
Contract Compliance
Supplier Enablement
Mobility and Usability Visibility and approvals via smartphones and tablet devices
High supplier adoption of the Ariba Network
Master data governance for supplier on-boarding and maintenance
Reduction in off-contract spend, capture potential ‘maverick’
spend early and redirect to preferred suppliers
Automation
Reduction in manual processing and embedding streamlined
processes
Reduction in supplier queries and improvement to on-time
supplier payments
Issue Purchase Orders for supply requests
wave plan
Wave 1 Pilot Wave 2 Full Account Wave 3 Full Account
• Large transaction volume
>400 count
• Complex in nature
• Full or Semi-integration
• Suppliers who don’t have an
Ariba full account and would
benefit from full account
• Quarantine-exit suppliers
who have an existing full
account
• Suppliers who have an
existing full account
Wave 4 Light Account
• Suppliers who would not
benefit from or decline our
full account request
.5%
Supplier Base
Accounts for 12%
Invoices
8.5%
Supplier Base
Accounts for 20%
Invoices
3%
Supplier Base
Accounts for 27%
Invoices
84%
Supplier Base
Accounts for 37%
Invoices
29/05/17 10/07/17 07/08/17 04/09/17 02/10/17
Supplier Enablement Program:
Coca-Cola Amatil
ValueDelivered
17
Active supplier
management
Increased spend
coverage
Greater process rigour
Strategic
sourcing
THE PAST THE FUTURE
?
The case for change
18
Buying
Better
Driving to lowest cost of supply across
all spend categories
Spending
Smarter
Adopting best practice supplier relationship
management principles
OBJECTIVES
Governance
A CLEAR PROCUREMENT FRAMEWORK TO
GUIDE HOW AMATIL SPENDS
Three channels for spending CCA money with
suppliers
PartneredGuidedSelf Service
WE DEVELOPED OUR SIMPLE BUYING
FRAMEWORK
Low Value /Risk
Category
Management /
Buying
Supplier
Management
Efficiency &
Compliance
Business
Advisory /
Partnering
Mid Value/ Risk High Value/ Risk
Centre of Excellence
FUNCTIONAL
BUSINESS OWNERS
PROCUREMENT PARTNER (GROUP & LOCAL)
AUTOMATION & SELF SERVICE
Ariba Contracts
& SIPM
Ariba P2P & Ariba Light
supported by AMS
To succeed we needed to empower the functional business
Program closed and open items moved to AMS/BAU
We partnered with SAP Ariba to enhance our user experience
2
Where are we now?
Super Users
“I am really excited to be a part of this..”
“Great direction… Thumbs Up!”
Systems
“I don’t understand what
each system is for & when
to use them”
Ariba Light
- “It’s a much better experience”
“Much easier for suppliers to use… they
like it!”
Notifications
“Has improved a lot!
Used to get 6 emails for one purchase”
Vendor creation & Ariba Light
“Reduces supplier set up time from weeks to days”
“It’s the easiest way to buy”
Ariba Light
Enablement
A great solution for getting smaller suppliers
quickly and easily using Ariba.
Also good for “technically challenged”
Recurring
Spend
Remove the need for your buying to raise
repetitive purchase orders by using Blanket
Purchase orders with validation
Super
Users
Three things to consider in your enablement
Harness the power of your “frequent
buyers” to improve the user
experience
25
Thank You
26PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Please complete session survey
Locate Session Click Surveys Button Select Breakout Survey Rate Session
Contact information:
Dan Schunk
Solution Manager – Procurement,
SAP Ariba (SAP)
daniel.schunk@sap.com
Thank you.
Emma Gluskie
Group Procurement Manager
Coca-Cola Amatil
emma.gluskie@ccamatil.com
Eve Simpson
Supplier Enablement Lead
Medibank
eve.simpson@medibank.com.au

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How to Get Mass Supplier Enablement: Transform Your Supplier Enablement Program - SID 51248

  • 1. PUBLIC Dan Schunk, Procurement Solutions Manager, SAP Ariba Eve Simpson, Supplier Enablement Lead, Project Springboard, Medibank Emma Gluskie, Group Procurement Manager, Coca-Cola Amatil August 22, 2017 How to Get Mass Supplier Enablement: Transform Your Supplier Enablement Program Globally
  • 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Introductions Supplier Enablement Overview Medibank Program Coca-Cola Amatil Program Panel Questions Agenda
  • 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ What’s happening in the world today
  • 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  That’s why we introduced the light enablement methodology in March 2016 (revolution).  Light account is an evolution of light enablement addressing limitations we had when using the current one-time password (OTP) approach.  Now our vision can be accomplished.  AND we still have a two-sided business model.  AND fully managed supplier enablement is still required and key for the ROI of our customers.  Segment suppliers into three groups (A, B, C): A: Suppliers need full enablement out of the gate B and C: Suppliers can and should be enabled on the fly using light enablement  95% Our vision for supplier onboarding Our goal is to digitize transactions between all trading partners and remove barriers to conduct commerce
  • 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ TRR invite Light enablement versus full enablement  supplier segmentation Help desk and support M2M integration Mobile portal Full CSC transaction set Innovations such as AribaPay ACH … SLP, SAP Ariba Sourcing, SAP Ariba Discovery Interactive e-mail Light account Free, simple Upgrade by choice NEW! LIGHT ENABLEMENT $ A B C 500 suppliers 1,500 suppliers 5,000…suppliers No compulsion Buyer Eliminate friction Inbox/outbox Catalogs Reports Interactive e-mail All basic fulfillment transactions + €$ ¥ Crucial for business case NEW! LIGHT ENABLEMENT Full Ariba Network functionality Full enablement out of the gate for vendors with legacy EDI integration or catalogs  strategic suppliers But only ~2% to 5% of the active vendors
  • 6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Light enablement is the methodology All suppliers perceive and pay for value in line with their usage  Exchange of all basic transactions, free for the supplier, with no change management supporting instant sign-up  Light-enabled suppliers can choose to pay for value-added services Incentivize buyers to enable all suppliers  Ability to turn off parallel processes, reduce supplier inquiries, get more accurate invoices  Majority of suppliers can be enabled ad hoc  start transacting faster and gain digital efficiency sooner Supplier enablement is efficient  Free and e-mail based: minimal change impact  Only actively enable suppliers that need full-use account like catalogs and integration. All others come on through light enablement  less effort and expense needed Light enablement (LE) methodology
  • 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Supplier onboarding process Key high-value categories and spend Everyone following processes/categories across geographies All trading partners regardless of size and sophistication Category optimization and replacement suppliers across areas Easy setup | Frictionless onboarding | Rapid expansion Enablement planning Primary supplier rollout Secondary supplier enablement Process/category/ geography expansion Optimized enterprise
  • 8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Supplier enablement project phases Strategy Continuous onboardingPilot onboardingDesign and build  Continue supplier onboarding by steady state team  Adopt Ariba Network internally and externally  Enable new vendors through an automated approach  Roll out new geographical regions  Onboard pilot suppliers  Train suppliers  Adjust communication approach or configuration, if needed  Report on progress and follow up with noncompliant suppliers  Conduct ordering and invoicing requirements gathering  Build communication and escalation strategy  Create supplier education material  Configure Ariba Network  Execute internal change management  Conduct user acceptance testing and end-to-end testing  Set project goals  Assign resources  Analyze vendor master data  Identify suppliers and develop flight plan  Define compliance message  Define pilot suppliers Project deployment phase Ongoing supplier enablement Ongoing change management Ongoing performance monitoring
  • 10.
  • 11. 11 2,388Number of employees *full-time equivalent at 30 June 2016 27.6% Medibank & ahm market share *by principal policyholders at 30 June 2016 3.8 million members *at 30 June 2016 $5.1b Member benefits paid in 2016 467 Number of hospital providers in our Members’ Choice network *at 30 June 2016 13,552 Number of ancillary providers in our Members’ Choice network *at 30 June 2016 Award winning business 8 years in a row 1,300,000+ Hospital admissions covered in 2016 26,000,000+ Ancillary services covered in 2016
  • 12. What’s changing for Medibank Simple & effective, commercial & accountable, customer obsessed. • We are introducing new systems, streamlined processes and ways of working where there are currently no systems in place. • To ensure success, we recognise the need for cross-functional collaboration • Transforming our Procurement, Finance and People & Culture teams to enable frictionless business with our suppliers and business partners 12
  • 13. #makeprocurementawesome Procure to Pay Focus Desired State Contract Compliance Supplier Enablement Mobility and Usability Visibility and approvals via smartphones and tablet devices High supplier adoption of the Ariba Network Master data governance for supplier on-boarding and maintenance Reduction in off-contract spend, capture potential ‘maverick’ spend early and redirect to preferred suppliers Automation Reduction in manual processing and embedding streamlined processes Reduction in supplier queries and improvement to on-time supplier payments Issue Purchase Orders for supply requests
  • 14. wave plan Wave 1 Pilot Wave 2 Full Account Wave 3 Full Account • Large transaction volume >400 count • Complex in nature • Full or Semi-integration • Suppliers who don’t have an Ariba full account and would benefit from full account • Quarantine-exit suppliers who have an existing full account • Suppliers who have an existing full account Wave 4 Light Account • Suppliers who would not benefit from or decline our full account request .5% Supplier Base Accounts for 12% Invoices 8.5% Supplier Base Accounts for 20% Invoices 3% Supplier Base Accounts for 27% Invoices 84% Supplier Base Accounts for 37% Invoices 29/05/17 10/07/17 07/08/17 04/09/17 02/10/17
  • 16.
  • 17. ValueDelivered 17 Active supplier management Increased spend coverage Greater process rigour Strategic sourcing THE PAST THE FUTURE ? The case for change
  • 18. 18 Buying Better Driving to lowest cost of supply across all spend categories Spending Smarter Adopting best practice supplier relationship management principles OBJECTIVES
  • 19. Governance A CLEAR PROCUREMENT FRAMEWORK TO GUIDE HOW AMATIL SPENDS
  • 20. Three channels for spending CCA money with suppliers PartneredGuidedSelf Service WE DEVELOPED OUR SIMPLE BUYING FRAMEWORK
  • 21. Low Value /Risk Category Management / Buying Supplier Management Efficiency & Compliance Business Advisory / Partnering Mid Value/ Risk High Value/ Risk Centre of Excellence FUNCTIONAL BUSINESS OWNERS PROCUREMENT PARTNER (GROUP & LOCAL) AUTOMATION & SELF SERVICE Ariba Contracts & SIPM Ariba P2P & Ariba Light supported by AMS To succeed we needed to empower the functional business
  • 22. Program closed and open items moved to AMS/BAU We partnered with SAP Ariba to enhance our user experience 2
  • 23. Where are we now? Super Users “I am really excited to be a part of this..” “Great direction… Thumbs Up!” Systems “I don’t understand what each system is for & when to use them” Ariba Light - “It’s a much better experience” “Much easier for suppliers to use… they like it!” Notifications “Has improved a lot! Used to get 6 emails for one purchase” Vendor creation & Ariba Light “Reduces supplier set up time from weeks to days” “It’s the easiest way to buy”
  • 24. Ariba Light Enablement A great solution for getting smaller suppliers quickly and easily using Ariba. Also good for “technically challenged” Recurring Spend Remove the need for your buying to raise repetitive purchase orders by using Blanket Purchase orders with validation Super Users Three things to consider in your enablement Harness the power of your “frequent buyers” to improve the user experience
  • 26. 26PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
  • 27. Contact information: Dan Schunk Solution Manager – Procurement, SAP Ariba (SAP) daniel.schunk@sap.com Thank you. Emma Gluskie Group Procurement Manager Coca-Cola Amatil emma.gluskie@ccamatil.com Eve Simpson Supplier Enablement Lead Medibank eve.simpson@medibank.com.au