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Rio Tinto: Sourcing Multiple Spend Categories in a Single Platform - SID 51255

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One of the biggest challenges enterprises face in their sourcing processes is managing multiple types of spend – direct materials, indirect, and services. Join this session to learn how Rio Tinto is using SAP Ariba solutions to manage multiple types of spend, including complex spend. Obtain strategic frameworks and best practice recommendations for sourcing tactics and templates. Hear about new capabilities that simplify the sourcing of complex spend.

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Rio Tinto: Sourcing Multiple Spend Categories in a Single Platform - SID 51255

  1. 1. PUBLIC Rick Steele, Rio Tinto; Leah Knight and Nirav Bhalavat, SAP Ariba (SAP) Rio Tinto: Sourcing Multiple Spend Categories in a Single Platform
  2. 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba (SAP)  Leah Knight, Solutions Marketing, SAP Ariba Solutions for Direct Spend Rio Tinto  Rick Steele, Process Champion, Source to Contract, Strategy and Global Process Ownership SAP Ariba (SAP)  Nirav Bhalavat, Solutions Consulting, SAP Ariba Solutions for Direct Spend Agenda
  3. 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba Solutions for Direct Spend Direct spend sourcing Supply chain collaboration SOURCE BUY AND MAKEPLANDESIGN
  4. 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba Solutions for Direct Spend: what they do We are making significant investments in streamlining direct materials source-to- settle processes. Planning collaboration Contract Source Planning Design Manage ERP and planning integration Execution collaboration Manufacture SAP Ariba Solutions for Direct Spend End-to-end process management Total landed cost calculation Collaborative planning Collaborative supply chain execution Network intelligence Supplier onboarding Advanced negotiation and supplier selection Support for services and materials
  5. 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba (SAP)  Leah Knight, Solutions Marketing, SAP Ariba Solutions for Direct Spend Rio Tinto  Rick Steele, Process Champion, Source to Contract, Strategy and Global Process Ownership SAP Ariba (SAP)  Nirav Bhalavat, Solutions Consulting, SAP Ariba Solutions for Direct Spend Agenda
  6. 6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Overview of Rio Tinto  Managing categories within Rio Tinto  Sourcing in the mining industry  Business challenges driving adoption of SAP Ariba source-to- contract solutions  Selection of SAP Ariba solutions  Scope  Spend categories  Complex categories  Preventing contract leakage  Tying sourcing and supplier management processes  Key successes  Road map Topics
  7. 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba (SAP)  Leah Knight, Solutions Marketing, SAP Ariba Solutions for Direct Spend Rio Tinto  Rick Steele, Process Champion, Source to Contract, Strategy & Global Process Ownership SAP Ariba (SAP)  Nirav Bhalavat, Solutions Consulting, SAP Ariba Solutions for Direct Spend Agenda
  8. 8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Supplier-managed information SAP Ariba Supplier Management solution portfolio Common supplier record Other ERPs MDG-S Other DWs SQL and NoSQL DBs SAP Business Suite and other ERPs Two- way sync Syncbusinessprocess Syncbusinessprocess SAP Ariba Supplier Lifecycle and Performance Vendor model Qualification matrix Segmentation matrix Spend matrix SAP Ariba source-to-settle application suite Onboarding Due diligence and qualification Segmentation Performance management Development and phase-out News sources Government sources Ratings sources Financial sources External data sources SAP Ariba Supplier Risk Segmentation by risk Preliminary due diligence Risk remediation Ongoing monitoring Engagement risk assessments
  9. 9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba Supplier Lifecycle & Performance SAP Ariba Sourcing SAP Ariba Contracts Supplier qualification & segmentation A new layer of innovations to support product sourcing SAP Ariba Strategic Sourcing Suite for source-to-contract and supplier management processes Pricing conditions Product lifecycle sourcing Volume and price forecasting Product costing Supplier performance automation Advanced optimization Multilevel bill of materials Product lifecycle mgt. integration
  10. 10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Manage source-to- contract processes on a single solution  Address all categories of direct and indirect spend  Integrate source-to- contract processes to PLM, ERP, and execution systems SAP Ariba solution for sourcing direct spend
  11. 11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba Supplier Risk Simplify risk management across procurement processes Segmentation by risk Due diligence Risk scoring Compliance checks Real-time risk dashboards Engagement assessments* Issue management* Regulatory and legal compliance Financial Environmental and social Operational * Include planned innovations Resolves barriers to information Segments your supply base by risk Embeds risk intelligence into procurement Enables end-to-end risk management
  12. 12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba Supplier Risk  Drive compliance through entire supplier base through engagement-level risk assessments  Targeted risk intelligence provides guidance for each stage of the procurement lifecycle  Foster collaboration between stakeholders and suppliers with configurable supplier monitoring and automated alerts
  13. 13. 13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 5 Standard integrations – 175 29 Master Account categories Assets Company codes Cost centers Cost center languages ERP commodity codes General ledger Internal orders Plant Payment terms Purchase groups Tax codes WBS elements User data User group mapping Remittance locations Supplier data Supplier location Contracts FM derive Material PO Service PO Change PO Cancel PO Close PO Goods receipt Service entry sheet Invoices (OK-to-pay) Advance payment requests Advance payments Cancel advance payment Requisition Change requisition Budget check SES response Purchasing organization Purchasing groups Company code Payment terms Supplier (inbound) 14 Master Quote request Quote message Material master/plant Manufacturer part number Purchase info record Material groups (product categories) 22 Transaction Transaction SAPAribasolutions Supplier (outbound) Plants Incoterms Bill of material Material master Company code internal order mapping Company code WBS element mapping Purchasing organization supplier combo Account category field status Plant to purchasing organization Currency conversion rates Fund management objects Purchasing organizations General ledger languages Expense report PO status Change PO status Receipt status Invoice status Remittances Catalog ProcurementSourcing Sourcing award to PO Contract workspace Sourcing award to outline agreement 107 = SAP ERP and SAP S/4HANA 68 = Other formats – network sell side 70 AribaNetwork 28 Buy side Order Change order Cancel order 9 Sell side Buy side Order confirmation Invoice Shipment notification Remittance advice Delivery schedule (forecast) Delivery schedule (JIT) 68 Sell side 105 240 (In and out) 810 820 824 830 (Forecast) 830 (Commit) 842 (In and out) 846 (in and out) 850 855 856 860 861 862 866 866 (MO/PO) 997 ORDERS ORDCHG ORDRSP INVOIC DESADV CONTRL RECADV REMADV INVRPT DELFOR DELJIT APERAK IFTMIN IFTSTA INVOIC ProcessPurchaseOrder AcknowledgePurchaseOrder NotifyShipment ReceiptRequest ProcessReceiveDelivery NotifyPlanningSchedule NotifyPlanningSchedule NotifyInventoryConsumption NotifyProductionOrder NotifyInventoryBalance ConfirmBOD X12 v4010 EDIFACT D96A OAGiS v9.2 EDIFACT D01B OrderRequest OrderChange OrderResponse Invoice InvoiceResponse Receipt PiDX v1.61 Order ChangeOrder InvoiceResponse GoodsReceiptNotice ServiceEntrySheetResponse OrderResponse Invoice AdvanceShipNotice ServiceEntrySheet RemittanceAdvice xCBL v3.0 Standard PO Subcontract PO Consignment PO Change PO Cancel PO Order enquiry request Order confirmation Inbound ship notice Outbound ASN Component consumption Outbound payment remittance Inbound remittance advice Remittance cancellation Inbound payment proposal Outbound payment proposal Scheduling agreement (incl. forecast/ Delivery schedule and JIT) Product replenishment Transfer movement/product activity Inbound receipt Outbound receipt Service entry sheet Service entry status update Invoice (incl. credit memo) Invoice status Carbon copy (CC) invoice Quote request Quote message Payment instruction file GS1 GUSI MultiShipmentOrder DespatchAdvice GS1 EANCOM 97 INVOIC GS1 EANCOM 2002 ORDERS ORDCHG INVOIC
  14. 14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Which session to attend next? Don’t miss these direct spend sessions! Wednesday 23 AugustTuesday 22 August 11:30: Extending Supply Chain Systems from SAP to Your Suppliers with SAP Ariba Solutions for Direct Spend (SID 51376) 2:45: Recent Innovations in SAP Ariba Supply Chain Solutions (SID 51393) 9:00: WINC. (previously Staples) Australia and New Zealand: Collaborating with Direct Spend Suppliers (SID 51252) 1:45: Ask the SAP Ariba Product Leadership Team (SID 51370) 1:45: DuluxGroup’s Paperless Supply Chain Collaboration Spend (SID 51254) 10:00: Discovering SAP Ariba Solutions for Direct Spend with SAP Ariba’s Product and Innovations Leadership Team (SID 51392) 3:45: Rio Tinto: Sourcing Multiple Spend Categories in a Single Platform (SID 51255) 11:00: Innovations in Direct Spend Sourcing: Managing Direct Spend Sourcing And Supplier Management in the Cloud (SID 51274) Direct spend customer OR 2:45: Recent Innovations in Supplier Management (SID 51390) Direct spend customer 12:15: Direct Spend Luncheon (invitation only) 3:00: Enable End-to-End Product Specification, Sourcing, and Execution Processes to Drive Savings (SID 51511) 1:30: Manage Your Supply Chain by Exception (SID 51512) 12:30: Source All Materials And Services from a Multilevel BOM (SID 51513) Direct spend customer
  15. 15. 15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
  16. 16. Thank you. Contact information: Nirav Bhalavat nirav.bhalavat@sap.com Leah Knight leah.knight@sap.com
  17. 17. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Legend: Potential starting points of the process are indicated with the following symbol: SAP Ariba Contracts Ariba Network Supplier /USE SAP Ariba Sourcing SAP ERP SAP S/4HANA Integration between SAP Ariba Sourcing, SAP Ariba Contracts, and SAP ERP Sourcing request RFX auction Sourcing project RFQPR Operational contract Purchase order Supplier response Award Contract workspace
  18. 18. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Fulfill SettleMarket Buyer management Procure SettleSource Supplier management Integration to SAP and non-SAP solutions, secure, open platform SAP Ariba solutions in the context of the digital economy BuyerSupplier Ariba Network Spendcategories Direct Indirect and MRO Contingent labor Travel
  19. 19. 19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Legend: Available scenario. Potential starting points of the process are indicated with the following symbol: SAP Ariba Sourcing “BoM manager” Ariba Network “Supplier” SAP Ariba Sourcing “Sourcing manager” SAP ERP * Price history and trend is based on sourcing price acceptance SAP Ariba Strategic Sourcing Suite Application innovation: product sourcing flow Sourcing price acceptance Part 360-degree view* Part worklist BoM Purchase info record Supplier response Simple RFx SAP PLM BoM BoM Pin BOM Assign part owner Configurationdata Masterdata

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