As supply chains become more complex, supply chain leaders risk losing visibility into supply. This in turn drives up risk of stock-outs. Today's leading enterprises need to collaborate with their vendors across multiple processes, systems, and geographies in real time and share demand information, so that they can quickly identify and respond to shortages and other unplanned supply chain events. Join a panel of leading global practitioners as they discuss how to attain supply chain visibility by collaborating effectively with trading partners both inside and outside their enterprises.

1. Vijay Vital, SAP Supply Chain Lead, Staples Australia Pty Ltd.
Leah Knight, SAP Ariba (SAP) / Raj Alluri, SAP Ariba (SAP) / August 30, 2016
Using SAP Ariba Solutions to Drive Visibility into
Direct Materials and Merchandise Supply Chains
Public

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Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is the confidential information (per the contract between our companies), and must
not be further disclosed, as stated in the confidentiality clause of that contract. This
presentation contains only intended guidance and is not binding upon SAP or Ariba to any
particular course of business, product strategy, and/or development. Its content is subject to
change without notice. SAP and Ariba assume no responsibility for errors or omissions in this
document. SAP and Ariba shall have no liability for damages of any kind including without
limitation direct, special, indirect, or consequential damages that may result from the use of
these materials.

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Today’s panelists
Vijay Vital
SAP Supply Chain Lead
Leah Knight
Sr. Director of Product Marketing
Raj Alluri
Sr. Director of Solution Management

4. About today’s presenter
Vijay Vital
SAP Supply Chain Lead
Professional experience includes +13 years in implementing SAP across
forecasting, procurement, inventory/warehouse management, supplier EDI
integration, 3PL logistics. Prior to Staples, he worked in various industries in
companies such as Rio Tinto, CSR Sugar & Ethanol, Nestle Inc. Siemens
VDO, Abbott Labs, etc.
Passionate about adopting newer technologyand processes to drive supply
chain efficiencies and ROI, and ultimately delight our guests.

5. Agenda
• Staples overview
• Three-stage project approach
• Project challenges
• Reference documents

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The Team
Dimity Sakley
David Webster
Logan Kathirasoo
Midhun Raj
Lakshmi Munagala
Cristian Mihalache
Jane Reilly

7. 4th largest e-retailer in the USA
Staples company overview

8. Organizational partnership – single source
From this…
1. Office & Computer Supplies
2. Facility Products
3. Safety Solutions (PPE/PPC)
4. IT Solutions (Hardware & Software)
5. MPS
6. Furniture (Interiors by Staples)
7. Promotional Marketing
8. Print Management
9. Canteen & Kitchen Supplies
10.Corporate Cellars
CurrentSupplyArrangements
To this…
1. Strategic Organization Partnership

9. Staples company overview – Australia

10. Delivery and supply chain solutions
• Next-day delivery to 96% of business locations across Australia with a fill rate in excess of 98.5%
• Staples 200+ experienced driver and merchandising fleet
• Staples Vending Solutions
• Staples Spot
• Standing orders
• Urgent orders
• GPS tracking of parcels
Commercial in Confidence

11. Staples’ venture with SAP Ariba solutions
• SAP Ariba solution history in Staples
• SAP Ariba solution scope for this project
• SAP Ariba solution add-on

12. Summary of the Supplier Integrations program
Phase 1
EDI solution
selection
Phase 2
SAP Ariba solution
installation
Phase 3
Initial pilot
integrations
(“wave 1”)
Ongoing business
waves of supplier
integrations
(“wave 2, 3, 4 …”)

13. Phase 1 – EDI solution selection
• Staples a digital business
https://youtu.be/G2Z34hk1uco
• Business case
• Solution provider selection process
• Identified best fit for the business

14. Summary – SAP Ariba solution approach
Base Line
Config.
Build, reporting and error handling
Business Process, BPPs, Training
docs, Auto. test scripts
Gap Register
UAT,
Training
Workshop
CheckPoint
ProcessSystem
Supplier
Enablement
Supplier
Build
Supplier
UAT
Tech Go
live
BusinessGoLive

15. Phase 2 – SAP Ariba solution installation – adapter (add-on)
• Started on SP5; now on SP9
• Upgraded twice already and due for next upgrade in 6-month planned upgrade schedule

16. Phase 2 – SAP Ariba solution installation – adapter (error handling)
Forward error handling

17. New Error Handling Screens

18. Phase 2 – SAP Ariba solution installation – testing approach
Credit
note
AP error
handling
Direct
ship PO
End to
end –
Demo
SubcontractingPurchasing
error
handling
SAP WM
standard
no errors
SAP WM
error
handling
5
166
9
20
84 80
36
16
180
160
140
120
100
80
60
40
20
0
Numberoftests
Test set
Grouped by:
Test set
X-axis:
Test set
Data type:
Count
Test execution summary graph
Total

19. SAP Ariba partnership – Onboarding supplier process
Plan tactical
supplier
outreach and
value
proposition
Develop
supplier
communica-
tions
Communicate
and register
suppliers
Supplier system
build
Data cleansing
UAT testing
process
Go-live and
Post Go-live
support
Merchandising Executive
Merchandising Executive and SAP
SAP & Supplier
Staples Business and Supplier
Business, SAP, and Supplier

20. Supplier integration challenges with SAP Ariba solutions
• Mandate requirements
• Response from vendors
• Timelines

21. Suppliers for PO-Flip
Prepared a
training
document for
supplier
Plan tactical
supplier
outreach and
value
proposition
Communicate
and register
suppliers
Train the supplier
Data cleansing
Go-live
preparation
Go-live and
Post Go-live
support
Project Team and SAP Ariba Solutions Team
Merchandising Executive
SAP & Supplier
Staples Business and Supplier
Business, SAP, and Supplier

22. Ongoing business – waves of supplier integrations

23. Reference materials
Ariba Network, Integration 1.0 for SAP Business Suite
http://tinyurl.com/gohjnuz
My Blog – SAP Ariba Solution (Five-part series of posts and lessons learned)
http://tinyurl.com/zd6oelj

24. Questions

25. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public
Today’s panelists
Vijay Vital
SAP Supply Chain Lead
Leah Knight
Sr. Director of Product Marketing
Raj Alluri
Sr. Director of Solution Management

26. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public
outsourcing | trading partners | geographies | technologies to track
Contract
manufacturers
Subassembly
suppliers
Large
enterprise
OEM
Component
suppliers
Raw material
suppliers
Complex manufacturing supply chains inhibit visibility into supply

27. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public
Ariba Collaborative Supply Chain extends your direct materials optimization
and execution solutions to enable collaboration with your trading partners
 Gain early visibility into potential supply disruptions
 Reduce inflexible point-to-point solutions and manual portals
 Benefit from better integration and robust road map
Supplier’s
internal processes
Buyer’s
internal processes
Direct collaborative
processes with CSC

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New processes supported by Ariba Collaborative Supply Chain
Buyer
Order/subcontract PO
Schedule agreement release
Component inventory data
Goods receipt notice
Supplier / contract
manufacturer
Manufacturing visibility*
PO confirmation
Component consumption notice
Advance ship notice
Manufacturing and retail
collaborative processes
Self-billing/ERS invoice
Component ship notice
Consignment inventory status
Payment
Invoice
Forecast commit
Forecast/demand
Component receipt notice
Key differentiators:
 Supplier onboarding
 Broad collaboration
portfolio
 Network intelligence
Return purchase order
Return ship notice
Credit memo
ASN
Tier 2 supplier
PO confirmation
PO copy
* Business-to-business only, UI/upload planned in upcoming releases

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Customers using the Ariba Network to collaborate with suppliers on
direct materials planning and execution
$3B
retailer
Get more visibility into where
merchandise is in the supply chain
to sustain aggressive growth and
expansion
$4B industrial
manufacturer
Drive greater process efficiency in
collaboration with direct materials
suppliers
$90B high-
tech device
manufacturer
Evolve from a forecast-and-
allocation-driven model to
demand-driven fulfillment (pull)
model to provide guaranteed
availability of end product
Customer Objectives
Adopted the Ariba Network for order, delivery,
and invoice processes with direct and indirect
materials suppliers in an “all spend on a single
business network” scenario
Solution
Adopted the Ariba Network for
collaboration with direct materials
suppliers, using scheduling agreements,
PO, and related processes
Selected the Ariba Network for
forecast planning and execution
collaboration with direct materials
suppliers

30. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Public
One network to simplify supply chain collaboration
Faster
response to
manage
inventory
levels and
fill rates
Easy
onboarding
with minimal
IT costs
Improved
compliance with
standards-based
and open
electronic
communications
Simplification
of interactions
and
transactions –
connect once,
collaborate
with many
Network
intelligence,
reporting, and
analytics on
supply chain
metrics

31. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Public
Today’s panelists
Vijay Vital
SAP Supply Chain Lead
Leah Knight
Sr. Director of Product Marketing
Raj Alluri
Sr. Director of Solution Management

32. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Public
Ariba Collaborative Supply Chain
Collaborative network for real-time perfect order process
Buyer
Purchase order, incl.
subcontract, consignment
Schedule agreement
release
Component inventory
data
Goods receipt notice
Supplier/contract
manufacturer
Component receipt notice
PO confirmation
Component consumption
notice
Advance ship notice
Manufacturing and retail
collaborative processes
Self-billing/ERS* invoice
Component ship notice
Consignment transfer
Payment
Invoice
 Forecast Collaboration
 Direct purchase order
collaboration
 Scheduling agreement
release
 Subcontracting order
collaboration
 Consigned inventory
collaboration
*ERS = Evaluated receipt settlement

33. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Public
Release 1.0
Release 2.0
Release 3.0
Future (Beyond 12m)
!
Better sharing of planning
and execution information
More processes enabled
Increased access to
intelligence
Value levers at each stage
Ariba Collaborative Supply Chain road map
2014
2015
2016
Basis for direct
materials collaboration
plan-driven execution
scenarios
Outsourced
manufacturing and
consignment inventory
scenarios
Extended planning-
related demand /
forecast and returns
scenarios
Mult-tier inventory visibility,
kanban, sell-side customer
collaboration, and
advanced logistics
scenarios
Buy-side exception
monitors, multi-tier doc
visibility, quality,
supplier-managed
inventory, and 3rd party
logistics provider
integration scenarios
Planned (Next 6-12m)

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Next steps
Please join us for a session tomorrow that details the roadmap for SAP Ariba solutions for supply chain
collaboration:
Innovations in Collaborative Supply Chain
When:
Wednesday, 31 August, 3:15–4:15
Where:
Peony 4411
What:
Learn about plans for SAP Ariba solutions for supply chain collaboration in 2016 and beyond, and get
more information on the direction of SAP Ariba solutions for collaborative supply chains

35. Thank you

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