Peter Hobday discusses Atos' journey towards procurement excellence through an integrated SAP and Ariba solution footprint. Atos has implemented various Ariba tools including catalogs, e-sourcing, contract management, e-PO, e-invoice, and supplier management to help streamline and digitize procurement processes. The presentation provides details on how each tool has been implemented and highlights some challenges faced in adoption.

1. #AribaLIVE
@ariba
Journey towards Procurement
Excellence through an Integrated
SAP and Ariba Solution Footprint
Peter Hobday, Process and Development Director, Atos
9th June 2015
© 2015 Ariba – an SAP company. All rights reserved.

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Procurement Excellence
Procurement excellence can be defined as when procurement:*
• Delivers tangible results to the bottom and top line of the business; in terms of cost,
risk and value creation
• Is a strategic business function with support of the management board
• Has key relationships with business stakeholders and is involved in strategic
decisions at an early stage
• Brings continual improvement to the function and innovation from the supply base
• Acts in a responsible and fair manner
© 2015 Ariba – an SAP company. All rights reserved.2
* Procurement Leaders Award Category Definition - 2015

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And the winner is…
© 2015 Ariba – an SAP company. All rights reserved.3

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© 2015 Ariba – an SAP company. All rights reserved.4

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Atos and Bull: A New European
Powerhouse
€10 billion 2013
combined revenue
circa 85.500
headcount
52 countries
#1 Cloud Operations
in Western Europe
#1 Managed
Services in EuropeTrusted operator
for Cyber Security and
Big Data €500 Mn€
© 2015 Ariba – an SAP company. All rights reserved.5

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From Local Offices to Global Powerhouse
Geographical breakdown of 85,500 Atos headcount
6
Benelux & The Nordics
Belgium
Denmark
Finland
Central & Eastern Europe
Austria
Bulgaria
Croatia
France
North America
Canada
USA
UK & Ireland
Germany
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Asia Pacific
Australia
China
Indonesia
Japan
Hong Kong
Iberia
Portugal
Spain
India, Middle
East and Africa
Egypt
India
Morocco
South Africa
Luxembourg
Netherlands
Sweden
Czech Republic
Hungary
Italy
Poland
Romania
Russia
Serbia
Slovakia
Switzerland
Turkey
Malaysia
Philippines
Singapore
Taiwan
Thailand
UAE
Qatar
Saudi Arabia
© 2015 Ariba – an SAP company. All rights reserved.

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Facts and Figures
© 2015 Ariba – an SAP company. All rights reserved.7
• €4.3bn spend
• 80% of spend with 500 vendors
• Operating in 53 countries
• 180,000 POs
• 500,000 invoices
• 15,000 active vendors
• 150 subcategories
• Cost base 40% of Sales
• 350+ catalogues (10% usage)
• Purchase request to PO = 6 days
• PO coverage 95% (98% after
exceptions)

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Atos Business Process Framework
G
O
V
E
R
N
A
N
C
E
R
I
S
K
C
O
M
P
L
I
A
N
C
E
Audit–Tax-Legal-TreasuryQuality-Security
BUSINESS
MODEL
Project
DeliveryContinuous
Services
Delivery
Product
Delivery
Transactional
Services
Delivery
Workforce/
People Management
Asset
Management
Order to
Cash
Opportunity
to Order
Purchase to
Pay
Revenue Forecasting Operational & Management Reporting Consolidation Reconciliation
Record to Report
Plan Sales Plan & Organize
WFM function
Plan Offering Asset Acquisition
Offering
Life Cycle
Manage
Procurement
Create Demand
Start up execution
of the contract
Manage
WF Capacity &
Capability
Planning
Design Offering
Record & Value
Asset
Purchase Goods &
services
Manage
Opportunities
Execute the
contract
Manage
WF Profiles
Develop Offering Manage Asset
Receive goods &
services
Terminate &
evaluate the
contract
Manage
Operational
WFM
Deploy & Maintain
Offering Dispose of AssetProcess Invoice
Phase out
OfferingProcess payment
Manage Order Intake
Develop manage
HR planning,
policies
strategies
Recruit and hire
employees
Develop
employees
Reward and retain
employees
+ 4 additional
items
SaaS
Delivery
T&M
Secondment
Delivery
© 2015 Ariba – an SAP company. All rights reserved.8

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Receive Goods
& Services
Process
Invoice
Process Payment/
Disbursement
Develop procurement
strategy
Maintain Vendor
Master Database
Sourcing
Manage contracts/
supplier agreements
Specify requirements
Manage Purchase
Request & Approval
Manage Purchase
Order & Approval
Process Receipt
Good/Services
Manage discrepancies
and returns
Receive and Qualify
invoice
Match and Approval
process
Run payment process
Manage Exceptions?
Monitor Buying &
Performance
Responsible
Process Framework level 2
Draft: Process Framework level 3
Month end closing AP
Responsible Responsible Responsible
Demand Management
Manage Invoice
discrepancy handling
ResponsibleWorkforce
People
Management
 Subcos
 Travel &
Expenses
Order To Cash
 Interco
Asset
Management
 Capex
Purchase Goods &
Services
Manage
Procurement
Interface with
other KTPs
P2P Key Transversal Process
© 2015 Ariba – an SAP company. All rights reserved.9

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History of Tooling to Support Processes
• Global Procurement founded in 2007, revamped in 2009, expanded in 2011
• Matrix organisation (Countries vs Categories)
• Category management
• SAP ERP 4.3 to 6.0 to 6.2 (+ enhancement pack7)
• SRM introduced 2010/2011 (1 client) – APC introduced
• Contract management introduced in 2012
• E-PO / E-Inv, E-Sourcing, Supplier management introduced in 2014/15
© 2015 Ariba – an SAP company. All rights reserved.10

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Atos Procurement Tools (Ariba)
11 © 2015 Ariba – an SAP company. All rights reserved.

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Catalogues
• Atos managed, supplier managed, Punch-out - All used
• 350 + catalogues – Hardware, software, subco, prof services, indirects
• Ariba Procurement Content used to host catalogues as SRM one client doesn’t support
• Been using now for 4+ years
• Key benefit for buyers – drives compliance to their sourcing decisions; plus means
they do not have to approve shopping carts
• Need to constantly communicate catalogue availability
© 2015 Ariba – an SAP company. All rights reserved.12

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E-Sourcing
• Previously used standalone SAP e- sourcing module; moved to Ariba as part of move to
more integrated solution
• Providing e-sourcing solution to buyers (they work with vendors and stakeholders whilst admin team
configure and run events)
• Utilise supplier management module for RFI
• Pushing buyers to utilise “Discovery” to find alternative vendors
• RFP/RFQ and e-auctions run – publish reference projects to show benefits
• KPIs driven by targets – number/value of events by country/category
© 2015 Ariba – an SAP company. All rights reserved.13

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• Easy access to an active
community of 500K global
suppliers
• Matching engine that proactively
identifies relevant suppliers and
pushes relevant opportunities
directly to them
• Rich supplier profiles, with unique
activity and community information
• Integrated with Ariba Sourcing
 Access Ariba Discovery
via your Ariba Sourcing
Professional site
© 2015 Ariba – an SAP company. All rights reserved.14
Ariba Discovery

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Mandatory usage of e-Sourcing platform
Atos E-Sourcing Terminology
e-Sourcing General term for electronic (web-based) requests, biddings and auctions.
e-Auction
e-Bidding
e-RF(x)
Electronic Request for Information (e-RFI)
Electronic Request for Quotation (e-RFQ)
Electronic Request for Proposal (e-RFP)
Electronic negotiation without commitment according to defined negotiation rules
(e-Agreement).
After TCO a decision maker awards offline the winner(s).
Electronic negotiation with commitment according to defined negotiation and
awarding rules (e-Agreement).
The result of the e-Auction awards online the winner(s).
© 2015 Ariba – an SAP company. All rights reserved.15

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E-Sourcing KPIs for April 2015
Target vs. Actual
16
60
120
180
240
300
360
420
480
540
600
660
700
60.6 77
223
289
33
54 58
78
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
800
January February March April May June July August September October November December
Numberofe-Sourcingprojects
e-Sourcingspendinmillions€
Target value - m€ Actual value - m€ Number of projects
© 2015 Ariba – an SAP company. All rights reserved.

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Contract Management
• Replaced livelink contract database solution
• Important to get right
 Meta data – type of and quantity
 Loading of contracts
 Configuring of tasks/workflow
 Training of buyers
 Involving stakeholders/legal
• After 2 years - we’ve just run a big simplification exercise
 Less tasks, less workflow steps
 Simplified reporting
 More templates
© 2015 Ariba – an SAP company. All rights reserved.17

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Contract Management
• Points we have had to address
 Buyers only loading contracts after all the approvals done offline
 Buyers only loading to draft not publishing
 Buyers not checking mass upload contract meta data
 Legal function not aligned at a global level e.g. use of electronic signature
• KPIs
 Focus on value of Contracts loaded and live
 Number of contracts drafted and published each month (per country)
 Value of activity coming up in 3 and 6 months
© 2015 Ariba – an SAP company. All rights reserved.18

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Dec-13 €2.1bn 106 225 238 €155m 426 €385m
Contracts Active TCV
New workspaces
created in month
- draft
Workspaces
published in
month
Number of
contracts -
expiration in
next 3 months
Value (€) of
contracts -
expiration in
next 3 months
Number of
contracts -
expiration in
next 6 months
Value (€) of
contracts -
expiration in
next 6 months
comment
Jan €2.17bn 198 238 137 €103m 388 €299m
Feb €2.21bn 130 168 221 €115m 431 €295m
Mar €3.05bn 135 230 281 €245m 496 €274m mass load by Thomas Hartel re DE
Apr
May €3.03bn 64 14 281 €220m 689 €530m ALERT re buyers not using system
June €3.19bn 173 10 202 €236m 469 €522m Alert re not publishing workspaces
July €3.24bn 110 15 196 €239m 549 €677m Alert re not publishing workspaces
Aug €3.32bn 39 12 210 €236.5m 557 €850m Alert re not publishing workspaces
Sept €3.2bn 100 62 320 €364.7m 576 €713m specific GBU's require action
Oct €3.25bn 147 58 389 €480.2m 593 €764.9m specific GBU's require action
Nov €3.32bn 89 42 388 €656m 573 €815m Not enough quality interaction with the tool
Dec €3.15bn 104 56 290 €357.7m 432 €533.5m Not enough quality interaction with the tool
• A positive year in the sense of contract TCV loaded onto the database
• However – need buyers to engage with using the database
• Too many contracts added after manual process & meta data not published.
2014 Contract Database
© 2015 Ariba – an SAP company. All rights reserved.19

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E-PO and E-Invoice
• Clear business case based on elimination of manual processes (FTE savings)
• Aiming to solve other issues e.g. 10% of invoices returned to vendors for errors
• Ran an RFP process – key criteria – solution integration with existing tooling, match
of suppliers already on provider’s network (ease of on-boarding) and cost over
five years (implementation + running)
• Project split into 3 workstreams: a) supplier enablement b) technical
c) Accounts payable rework
© 2015 Ariba – an SAP company. All rights reserved.20

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E-P/E-Invoice Solution
21
• An automated solution, the Ariba Network, connects Atos and suppliers for successful collaboration.
• This solution handles e-purchase orders, e-invoices, and credit notes.
• Atos and suppliers can contact each other through the Ariba Network.
• This solution offers a social network (Ariba Discovery), which allows suppliers to develop their business.
Business
Challenges
Solution
Benefits
Zero Paper
Project
Change
FAQ
+ INFO
© 2015 Ariba – an SAP company. All rights reserved.

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Ariba’s Smart Order and Invoicing Approach
Invoice
Error
Exception
FI
MM
VIM
BUYERS
Ariba’s Smart Processing approach drives auto post rates of 98% by eliminating errors and exceptions at the point of supplier submission
PO & Inovice
Automation
E-Transactions
& Status
AR
SUPPLIERS
 Acct
Coding
 Price
Compliance
 Contract Match
 VAT/GST
Compliance
 Qty Threshold
 Unit Amt Threshold
• Invoice”
Number
• Invoice
Date
• Ship to
Address
• Bill-to
Address
Ariba
98%+
Auto Post
Supplier Portal provides real-time access
to PO, invoice and payment status
eliminating inquiries to AP & Procurement
Over 80 configurable rules that
capture errors and exceptions
before they reach AP & Proc
Treasury
EAM
Procure-
ment
SCM
MRP
AP
© 2015 Ariba – an SAP company. All rights reserved.22

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E-PO/E-Invoice
AP key changes: Ariba is preferred process
© 2015 Ariba – an SAP company. All rights reserved.23
The preferred solution to submit POs and receive invoices is through the Ariba Network:
PDF or paper-based invoices are only accepted from non-Ariba vendors and non-PO invoices
DART Workflow support
Vendor
REJECT
Vendor
Paper
Invoice Scanning
Assign
‘barcode’
(DCN)
invoice image
Compliance
Check
(manual)
Auto
Post in Nessie
Payment
Manual
Park in Nessie
PO-based
invoices
Non-PO invoice
or
PO non-Ariba
Y
No Match
Auto 2/3
way match
Match
Bussiness
rules?
Resolve
Parking
reason
Manual
Post in
Nessie
Compliant ?
N
Match
Auto post with
‘R’ Block
Match
No Match
Manual
REJECT
Clear when
GRN done
XML
Tax code
match
Export to Dart
(e-mail)
No Match
Match ARIBA Network (AN):
•PO is submitted through
Ariba Network
•Invoice is ‘PO flip’ via network
•Business rules to ensure Vendor
can only submit compliant invoices
•Invoices are auto posted in Nessie
•Vendor portal to view status
e-mail
PDF
Invoice
e-mail
interface

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Supplier Management
• SIPM
 SI – Supplier information – used to enroll and capture data (in future vendor master)
 PM – Performance management
• Manage Top 200 vendors
 QCDIMS criteria embedded into questionnaire
 Send questionnaire - 1/year to stakeholders
 Gather data from questionnaire + other data and sit down for strategic review
• NB – took time to manage vendor log on in SI, integrated with upstream and downstream
data (as well as maintaining vendors for e-sourcing events vs approved ERP vendors)
© 2015 Ariba – an SAP company. All rights reserved.24

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Reporting
• Use of BI (Business intelligence) driven by HANA
• Reporting for
 Spend (by country, category, vendor)
 SRM (time through system, % of catalogues, number of carts per month, status
of shopping carts)
 Transactional (number of POs, number of invoices, SC/PO/Invoice/goods receipt
tracking (SAP queries)
• Lots of attributes available
 Cost centre, GL & Iris (P&L) code, Service line, Business unit, legal entity,
global ultimate (vendor owner), ABC flag, etc.
© 2015 Ariba – an SAP company. All rights reserved.25

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KPIs – Produced from BI & SAP Queries
© 2015 Ariba – an SAP company. All rights reserved.26

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Future Enhancements
• SAP Fiori – facelift SRM ( for requester) + Mobility for approvers
• Master data sync – e.g. vendor master between SAP ERP and Ariba
• Use of Fieldglass for interaction with master service providers, supply
market for subco T&M as well as time sheeting, reporting and rate
card analysis
• Transfer of SAP queries into Clarity (Business Intelligence)
© 2015 Ariba – an SAP company. All rights reserved.27

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