Steps To A Successful e-Procurement Journey – The First Year In Review

Steps to a Successful E-Procurement
Journey - the First Year in Review
Stefanie Frauciel
Global Upstream Implementation Lead
SSAB EMEA
© 2013 Ariba, Inc. All rights reserved.

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Delivering Measurable Benefits
Value to Companies of All Sizes, Industries, Regions
© 2013 Ariba, Inc. All rights reserved.2
Supplier ValueBuyer Value
Sourcing
Procurement
Process
AP Process
Compliance
WCM &
Discount
3-9%
Process
Savings
$3-20
Savings/
Document
1-8%
Spend
Savings
Total
Savings
Faster
Payment
AR Process
Processing
Orders
Sales &
Marketing
Increased
Revenue
15-75%
Time
Savings
15-75%
Process
Savings
5-32%
Revenue
Increase
Total
Savings
Source: Ariba customer surveys and interviews

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Ariba Collaborative Value Chain –
Direct, Indirect, Services
• Spend Data
Enrichment
• Spend
Analysis
• Contract
Collabor
ation
• Authoring
• Repositor
y
• Requisitio
n
Ownershi
p
• Catalog
Complianc
e
• Contract
Complianc
e
• Approv
al
Workf
low
• PO
Collabor
ation
• PO
Transmiss
ion
• Goods &
Services
Receipt
• Invoice
Receipt
• Invoice
Complianc
e
• Invoice
Approval
• Exception
Workflo
w
•
Awarenes
s
Marketing
• Lead
Collabor
ation
• Proposal
Collabor
ation
• Bidding
Opportuni
ty
• Contract
Collabor
ation
• Contract
Repositor
y
• Catalog
Collabor
ation
• Catalog
Syndicatio
n
• Requisitio
n
Collabor
ation
• Specificati
on
Negotiatio
n
• Order
Collabora
tion
• Order
Status
• Invoice
Delivery
• Invoice
Collabor
ation
•Supplier Info;
Performance Mgmt;
Supplier Research
• Company Profile Mgmt
• Customer Account Management
Buyer’s Processes: Analyze to Pay
Supplier’s Processes: Market to Cash
•Payment
Collabor
ation
•Discount
Collabor
ation
• Payment
Collabor
ation
• Payment
Visibility
• Working
Capital
Collabor
ation
• Category /
Project
Mgmt
• RFI / RFP /
Auction
Collabora
tion
• Savings
Tracking &
Pipeline

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Speaker Bio - Stefanie Frauciel
• Stefanie Frauciel is the eSourcing Global Project Lead at SSAB, driving
implementation of eSourcing, Contracts, Supplier information Management and
Spend Visibility. Prior to SSAB she worked at Accenture and Ariba as a functional
implementation consultant, Sourcing project manager and trainer for 6 years.
.

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Ariba – Live Berlin
Lessons learnt of the first 2 implementation
years
June 2013
Stefanie Frauciel

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Agenda
• Brief presentation of SSAB
• SSAB’s reasons to implement an eSourcing & e-Procurement tool
• SSAB’s chosen Ariba suite
• Source to Contract deployment & usage status
• P2I implementation project plan
• Implementation lessons learnt & solutions
General Implementation lessons learnt
Source to Contract (upstream modules)
P2I (EMEA)
Success factors
• Ariba implementation results
6Ariba Live - Berlin June 2013

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SSAB in 90 Seconds
• Formed in 1978 through a merger of the steelworks:
Domnarvets Järnverk in Borlänge,
Oxelösunds Järnverk,
Norrbottens Järnverk in Luleå.
• A global leader in value added, high strength steel.
SSAB offers products developed in close cooperation with its customers to reach a stronger, lighter and
more sustainable world.
• The Group’s steel operations consist of 3 business areas
EMEA, Americas, APAC and
2 subsidiaries Plannja representing processing & Tibnor the group’s trading company.
• SSAB employs 9000 people in over 45 countries around the world and operates production facilities
in Sweden and the US. SSAB is listed on the NASDAQ OMX Nordic Exchange, Stockholm.
• In 2012, SSAB sales amounted to almost SEK 38.9 billion i.e. 4.5 billion €.
“For a stronger, lighter & more sustainable world”

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SSAB’s Geographical Presence
Where are SSAB’s
production plants?
In Sweden
3 production sites
In the
USA

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SSAB Industry Application Examples
Increased strength and reduced weight
Docol 1400 MZE – the safest Ultra
High Strength, electro galvanized steel
for the automotive industry
- Automotive structural parts
- Automotive side impact protection
- Automotive bumpers
- Automotive seats
Less crane weight, same strength

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Agenda
 Brief presentation of SSAB
• SSAB’s reasons to implement an eSourcing & e-Procurement tool
P2I (EMEA)
Success factors

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SSAB’s Reasons to Implement
an E-Sourcing and E-Procurement Tool
SSAB
EMEA
SSAB
Americas
SSAB
APAC
No common purchasing system
(3 not linked different ERPs)
No e-Sourcing tool
Current spend reporting tool only possible at very high
Supplier (no visibility at line item nor supplier Supplier
reporting)
No Contract management system at SSAB Americas
prior Ariba (sporadic vendor contract & price
compliance)
No supplier information & qualification management
tool
Very time consuming exercise to aggregate spend data
from all 3 systems in EMEA
Next

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Agenda
 SSAB’s reasons to implement an eSourcing & e-Procurement tool
P2I (EMEA)
Success factors

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SSAB’s Chosen Ariba Suite
Supplier
Management
Visibility Procurement
Invoice
Pay
Sourcing Contracts
Best Practice Services Professional Services Helpdesk
Ariba Supplier Network
Implemented Implemented Implemented Under implementation SIM Implemented
SPM: Not implemented yet
SIM: Implemented

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Agenda
 SSAB’s chosen Ariba suite
P2I (EMEA)
Success factors

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Source to Contract Deployment
and Usage Status
EMEA AMERICAS
Implemented Used Usage rate Implemented Used Usage rate
Sourcing
Yes
Q1 2011
Yes
Very low (17%)
5 active in 2013 vs. 9 in
2012 out 29 trained
users
Yes
Q1 2011
Yes
Very low
2 active out 7
trained users
SIM
Yes
Q4 2010
Yes Medium
Yes
Q4 2010
Yes
for
Existing already
purchasing approved
suppliers to 90%
Sourcing to 10%
Resumed since
beginning
February 2012
SPM To be deployed at a later stage Yes To be used later
Spend Vis
Yes
Q3 2012
Yes
High usage
Project team
Low usage rate
End users
To be deployed at a later stage
once P2I project is live
Contracts
Yes
Q3 2012
Yes High (66%)
Yes
Q3 2011
Medium Medium
Updated
16.05.2013

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Agenda
 Source to Contract deployment & usage status
P2I (EMEA)
Success factors

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P2I Global Project Plan – SSAB
2012 2013 2014
maj jun jul aug sep okt nov dec jan feb mar apr maj jun jul aug sep okt nov dec jan feb mar apr
EMEA Americas
EMEA & Americas
Deployment
Go Live
June 2013
- Secure SSAB resources – Pre-Study Phase
EMEA & Americas Preparation phase
- Program & Change Mgmt, Global design
Go live P2I
- Lisle Indirect (Wave 1)
- EMEA (Wave 1)
- CTL (Cut to length lines) (Wave 2a)
- APAC (TBC)
- Mill`s in NA (Wave 2b)
TBD upon successful GL in Lisle
- EMEA (Wave 2)
Activities
Deployment
Go Live
Sept. 2013
GL
Early 2014
Deployment

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P2I EMEA - Phase 1
> Focus on ”green” touchless flow
• 80 suppliers in scope (95% from Sweden)
• Increase collaboration between SSAB & their suppliers
• Catalogues and Ariba Contract compliance ACC contracts
Commodities in scope below:
Facility management
Office supplies
Marketing related services
HR services
Travel
Protection equipment
Education

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Requester
PO confirmation
&
Delivery confirmation
Chooses/Searches the
good or service
PO approval PO is sent
Supplier A
Supplier B
Supplier C
Supplier D
Supplier E
Catalogue
based purchase
E-invoice
Goods receipt
A
R
I
B
A
N
E
T
W
O
R
K
Automatic
3 way match
Payment
OK to pay file
sent to ERP
P2I EMEA Phase 1 goal: GREEN FLO

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Agenda
 P2I implementation project plan
P2I (EMEA)
Success factors

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• Getting buyers & internal stakeholders to understand, see the
benefits of a new way of working & to execute accordingly.
• Strong management mandate needed.
• Acceptance of the necessity to change way of working.
• Fewer user adoption hurdles to overcome for the
”Internet” generations.

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Agenda
 General Implementation lessons learnt
P2I (EMEA)
Success factors

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Supplier Information Management
Project start Q1 2011
• SSAB’s Objectives: Implementation
1. Common & global supplier database + common of way of working
System to support strategic purchasing work
2. Internal SSAB supplier approval status:
– Approved for Sourcing : Potential suppliers (RFx suppliers)
– Approved for Purchasing : (Contracts & P2I: Purchase to Invoice)
3. Reduce administrative supplier information maintenance tasks
– Yearly automatic update reminders
4. Ability to have different approval rules per business area.
– Americas : Site based approval
– EMEA : EMEA specific commodity codes based approval
5. CSR information
– Risk country mapping
– CSR supplier status
– High risk supplier flagging mechanism
Q1 2011
Q1 2011
Q1 2011
Q4 2011
Requirement since
summer 2012
Implementation
target Q2-Q3 2013

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Supplier Information Management
• Implementation lessons learnt Implementation
1. New registration process with 12s1
– Challenging transition to 12s1 new process
– Possibility to not complete the registration process
2. Different approval flow per business area
– Site based in Americas
– EMEA custom commodity based in Sweden
Q3 2012
Q1 2012
Next

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1. Supplier creates his cloud profile
2. Supplier answers SSAB’s profile questionnaire
Supplier
Self-registration
invite via email
SIM
Contract
Supplier Registration Process in
Ariba at SSAB
Strategic buyer
APPROVES
the supplier
Sourcing
Supplier must be
approved to be used
in both the Contract
and Sourcing modules
Buyer
Possibility for supplier to stop
registration process without any
warning
Back

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Sourcing (Project start Q4 2010)
• SSAB’s Objectives: Implementation
1. Common of way of working
2. Visibility into tender results, participation rates
3. Traceability of tender information, invited suppliers
4. Greater savings potential
5. Internal collaboration
Q1 2011
Q1 2011
Q1 2011
Q4 2011
Q1 2011

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Sourcing (Project start Q4 2010)
• Implementation lessons learnt: Implementation
1. Local key-user support was missing for 1 year,
– Key-user structure re-established in spring 2013
2. Mandatory use of the Sourcing module as of 1st June 2013
3. Not all buyers trained yet (40% in EMEA)
4. Lack of motivation and willingness amongst buyers
to switch from email based RFPs to Ariba
– Belief that email RFPs are easier & faster to manage
5. Difficulty for buyers to understand
Ariba Sourcing module benefits
6. Outsourcing of certain functions of the EMEA
purchasing department doesn’t contribute
to an enthusiastic use of Ariba Sourcing
Q2 2013
Q2-Q3 2013
Q1 2011-Q2 2013
Q2 2013
Q1 2011-Q2 2013
Q1 2011-Q2 2013

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Spend Visibility (Spring 2011: project start)
• Objectives: Implementation
1. System to support strategic purchasing work
2. Visibility into global SSAB spend (EMEA + Americas)
& analysis at a granular level (supplier & line item level )
3. View of aggregated EMEA spend per site and per supplier
4. Faster spend data analysis time
Q1 2011
Q1 2011
Q1 2011
Q4 2011

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Spend Visibility (Spring 2011: project start
in EMEA)
• Implementation lessons learnt: (½) Implementation
1. 3 different source systems
– Different data models
– 6060 active ERP suppliers (from all 3 ERPs)
– 1730 duplicate suppliers
– 1 of the data models requires a complex data extraction process
from 2 local source systems
2. Difficulties in understanding SSAB’s own ERP system
data model structure & finding the data to load to Ariba.
– Under-estimation regarding the time effort of IT resources’ involvement
– Naming of fields in ERP systems doesn’t necessarily match with Ariba’ SV fields.
3. Difficulties in identifying the invoice types that should be uploaded
to Ariba due to different invoice status types.
4. Original currency vs. SEK amount
– SV applies the uploaded SSAB daily exchange rates
to the original currency amounts, which calculates a SEK amount
that isn’t the SEK actual invoiced SEK amount reported in SSAB EMEA.
– Daily exchange rates vs. negotiated /secured exchange rates.
Q3 2012
In
impleme
ntation
Q3 2012
Q4 2012

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Spend Visibility
• Implementation lessons learnt (2/2) Implementation
5. Invoice commodity classification enrichment process
– Poor SSAB invoice data quality in ERPs
– (no SSAB internal commodity codes available, poor invoice description,
product information available randomly…)
– As per Ariba SLA only 90% of SSAB’s spend is to be enriched
but SSAB’s raw material spend accounts for ~ 60% of the EMEA spend.
– Complexity of the mapping process between SSAB’s data towards UNSPSC
» Mapping to the lowest UNSPSC / ACT level proved to be challenging
to find an equivalent in SSAB’s EMEA Commodity Code tree.
» SSAB EMEA decided to initiate a mapping from their internal commodity
classification towards UNSPSC and load this data additionally to the source system data.
(on-going)
6. 360 degree supplier view report
– Upstream supplier enrichment wasn’t part of the original SV scope of work
– Hence SV data wouldn’t show on the 360 degree view report
– Solved by displaying the data based on the global enriched ultimate
parent + upstream enrichment
Under
implemen-
tation
Q3 2012

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360-degree View Report per Supplier
One of SSAB’s op 5 goals of SSAB
• Lessons learnt: SSAB thought 360 report would match automatically Spend data with SIM
supplier, but we discovered during the implementation that an upstream supplier enrichment was
needed….
ACTIVE CONTRACTS
SOURCING ACTIVITY
SPEND

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Contracts
• Objectives: Implementation
1. Common of way of working
2. Visibility
3. Traceability
4. Internal collaboration
5. Contract compliance
– In implementation with P2I / P2P
Q1 2013
Q1 2013
Q1 2013
Q1 2013
Q1 2013

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Contracts
• Implementation lessons learnt: Implementation
1. Necessity to teach buyers
to follow-up on expired contracts
– Difference between Expired vs. Closed status
2. Difficulty for buyers to identify a suitable UNSPSC code
Q1-Q3 2013

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Agenda
• Implementation lessons learnt
 Source to Contract (upstream modules)
P2I (EMEA)
Success factors
Ariba implementation results

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P2I EMEA: Project Task Phase 1
• Implement a unified “Procure to Invoice” solution for SSAB EMEA
Achieve a common way of working within SSAB globally and
with SSAB EMEA,
Unify the 3 production units currently disconnected ERPs in Sweden,
Achieve an electronic ”green” touchless flow (invoice automation).
• Users in scope
Approx. 5 000 requesters in EMEA
80 suppliers in phase 1 (with catalogues & contracts)
– Remaining suppliers to be on-boarded in the following phases

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SSAB - P2I Learning Points
• Learning and adjusting to a new process is better and can give
more benefits than customizations, more effective in the long
term perspective (maintenance etc.)
• Starting with a smaller scope is a good idea
A pre-study changed SSABs scope,
"smart” since there is a lot to learn about the system.
• Need for Ariba to have a clear vision to SSAB’s requirement of
the helicopter overview of the full Ariba integrated suite.
• Align upstream and downstream supplier registration process.

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Agenda
• Implementation lessons learnt
 P2I (EMEA)
– Success factors

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Ariba Implementation Success Factors
• Involve stakeholders and the people affected by the new way of working.
• Convey the reasons for the changed way of working & highlight benefits repeatedly for end users
& for the company as a whole.
• Management to highlight repeatedly the utmost importance of every buyer’s commitment to
achieve the overall purchasing world class goal.
• Train buyers on a new way of close communication with suppliers regarding the new way of
working.
• Regular & clear communication from purchasing management about implementation progress
and road map to achieve (KPI) to end users.
• Continuous education in the system.
• Local support via Key-User community
• Easily available simple & concise user guides in Ariba on dashboards e.g.

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Agenda
 Implementation lessons learnt
 P2I (EMEA)
 Success factors

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Ariba Implementation Results at SSAB
EMEA Two Years after the
Implementation Start Since Q1 2011
SSAB
EMEA
SSAB
Americas
Common purchasing system (in implementation in 2013)
(3 not linked different ERPs) – integration towards 1 ERP for
Common global e-Sourcing tool available
Spend reporting tool now possible at ERP Supplier & line item level.
Dashboards available.
Common global contract management system at SSAB
Common global supplier information & qualification management tool
& instituted approval processes
Easy aggregated EMEA spend visibility
Greatly reduced spend data collection time from 4 to 5 weeks to 15 to
30mn
GL Sept. 2013 GL June 2013
Pending P2I GL
Visibility on
EMEA spend
Back

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SSAB Facts Since Ariba Implementation
• Sourcing
Trained users Active users
2011 1 1
2012 8 2
2013 8 2
Trained
users
% trained
users
Active
users
Adoption
rate
2011 16 42% 1 0.02%
2012 23 60% 9 23%
2013 29 76% 6 17%

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• Contracts
- Number of trained users
– 2011: EMEA: 0, Americas: 1
– 2012: EMEA: 55 (87%), Americas: 13
– 2013: EMEA: 63 (76%), Americas: 13
Cumulated nb of contracts 2011 2012 2013
SSAB Americas 10 73 83
SSAB EMEA - 662 1068

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• SIM: registered suppliers
– 2011: EMEA: 4 (42%), Americas: 1
– 2012: EMEA: 23 (60%), Americas: 14
– 2013: EMEA: 29 (76%), Americas: 14
– 1381: Total suppliers approved for Purchasing (EMEA + AMERICAS)
– 203 : Total suppliers approved for Sourcing (12% of all suppliers) (EMEA + AMERICAS)
• Spend
– 2011: EMEA: 0
– 2012: EMEA: 55 (87%)
– 2013: EMEA: 55 (87%)
– 4928 global enriched suppliers
– 5436 ERP suppliers
Cumulated nb of invoices in K 2011 2012 2013 q1
SSAB Americas Pending
P2I
Pending
P2I
Pending
P2I
SSAB EMEA 188 K 348 K ~ 35 K

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The biggest success factor
• ”Voulez-vous?”
• Translation: ”Do you want to?”

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Thanks for Your Participation Today!

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APPENDIX

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Supplier Creation Process in Ariba
& SSAB EMEA ERP

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SIM
Source to Contracts Purchase to Invoice
Supplier Workspace +
SSAB SPQ
Supplier approval System
generated
ACM ID + AN ID
ERP
IFS
EMEA
P2I parent realm
Can hold some of SPQ data. Cloud profile info
Supplier is automatically replicated in each child realm from
the parent
P2I child
Realm US
SAP
Common supplier
child 1
Common supplier
child 2
Partitioned
supplier child 1
necessary for
transactions
Partitioned supplier
child 2
necessary for transactions
Partitioned supplier
child 3
necessary for transactions
P2I child
EMEA
P2I child
Generic US Lisle
Supplier
locations AN
Id#
VISMA
Payment system (EMEA)
Accounting data master system
XI/PI: middleware
Populates IFS id in
P2I EMEA child
Ariba Cloud/Network
1. Supplier Self-registers
POs
e-invoice
Supplier A
Buyer
2. Supplier created in SIM replicates
in P2I parent automatically
Supplier A
Common supplier
child
?
Check
with IFS
1. After supplier has registered in Ariba,
SSAB Buyer creates supplier in IFS incl.
payment info.
2. Buyer enters IFS id in Ariba SIM.
Requester
OK to pay file sent to IFS
through Middleware / ITK
CHECK WITH ARIBA
Ariba Live - Berlin June 201348

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Spend Visibility EMEA Implementation Plan
• Kick-off : 29th March 2011
• Mapping between SSAB ERP : May-June 2012
systems & Ariba Acquisition schema
• Data extraction process : Oct. - Jan. 2012
• 1st data load on test site
for one site only OXL (2011till Oct.) : Dec 2011
the 2 other sites on test site : Jan 2012
• 1st data load validation for all 3 EMEA sites : end of March 2012
• 1st invoice & supplier enrichment : May 2012
Review of enrichment results : June 2012
• 2nd data load (2012 till end of August) : Sept. 2012
Data correction process : Sept. 2012- Dec 2012
• Initial SV introductory end-user training : Oct-Dec 2013
• 3rd data load 2012 Sept-Nov : Dec. 2012
Data correction process : Dec. 2012 – Feb. 2013
• 4th data load 2012 Dec. : Jan 2013
• Key-user SV training : March 2013
• 5th data load Q1 2013 : April 2013
• Status of available spend data: 2011, 2012, Q1 2013
• Next steps: Final corrections + monthly load + 2nd supplier enrichment + training

Questions?
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