The document discusses SAP Ariba's procure-to-pay solution. It begins with an introduction of the presenters and an overview of topics to be covered. It then discusses challenges facing procurement in today's business environment and how a procurement tool can help address issues like visibility, compliance, and savings. The document demonstrates Ariba's procure-to-pay process and features like guided buying, mobile approvals, automated workflows, and analytics capabilities. It concludes with a discussion of Ariba's security architecture and a Q&A section.

1. Victoria Vasilevich Folbigg and Jerry Sim, SAP / August 30, 2016
Where Did All the Savings Go?
Ariba Procure-to-Pay
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 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.

3. Introduction
Victoria Vasilevich Folbigg
Senior Director, Value Engineering
Jerry Sim
Procurement Solution Consultant

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Agenda
Today’s New Procurement with SAP Ariba Solutions
Just Three Things
Why Do I Need a Procurement Tool?
What Is Ariba Procure-to-Pay?
Summary and Q&A

5. Today’s New Procurement:
Video

6. Just Three Things Whiteboard

7. Why Do I Need a Procurement
Tool?

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Changing business environment increases pressure on companies
Increasing globalization
 Expansion into new markets
 Global process standardization
 International supply chains
 Increased off-shoring and near-shoring
Economic volatility
 Volatility in markets
 Decreased stock valuation
 Slow economic growth
 High expense ratio
More competition
 Pricing pressures
 New sources of competition
 Decreased budgets and spending
Greater risk
 Supply chain disruption
 Financial risk and fraud
 Commodity risk
Accelerating technological change
 Changing business models
 Faster innovation cycles
 Expanding partnerships and channels
 Leveraging Big Data for decisions
Regulatory changes
 Increasing disclosure
requirements
 Country-specific regulations
 Industry-specific disclosures

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The CPO’s top priorities (2016–19)

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Best-in-class procurement maturity framework
Best-in-class impact on US$1 billion = $31.2 million in extra savings

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Supply management technology usage

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Visibility into savings and spend

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Analyze
spend
Source
Contracts
Procure
Invoice
and pay
Manage
cash
Price reduction
Cash management
Process improvement
Value
levers
THE WALL
Spend compliance
How do SAP Ariba solutions drive value?
Price reduction
Process improvement
Spend compliance

14. What Is the Procure-to-Pay
Process?

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The procure-to-pay process flow
Common challenges
Procurement team
receives hundreds of
purchase request
e-mails
Employees don’t know
which items are available
under contract
Budget check is done
separately or not at all
Approvals are routed and
performed manually
Delays result from
bottlenecks in the
approval chain
Managers can only
approve on their laptops
PO is sent manually via
e-mail, fax, or mail
No order confirmation or
advance delivery notice
comes from suppliers
Requestors are unable to
track order status and
constantly refer to
procurement teams
for updates
Goods receipt needs to be
manually matched to the
purchase order and
delivery notice
Defective or return goods
are communicated to
suppliers offline
Invoice is received
before receipt has been
performed
Erroneous invoices lead to
resubmission and late
payment
Invoice amount/quantity
does not match PO
and GR
Manual invoice
reconciliation
High AP overhead costs
Inability to capitalize on
early-payment discounts
Request Approve Order Receive Invoice and pay

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What are you buying?
Screwdriver for the technician
What are you buying? Buying category/purchase practices
Bookcase for break room
Work gear for the team
Facilities management
SOW, project-based service order/entry
Direct material, MRO
Catalogue
Free text
Complex SKUs
Planned services
Complex services
Automated purchases

17. What Is Ariba Procure-to-Pay?
Solution Demo

20. safety vest

33.  Go to dashboard

51. Buyer’s view 

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Innovation: guided buying
Simple, smart, and elegant buying experience to increase user engagement
 Single platform for all corporate purchases
(goods and services)
 Smart guidance to direct end users to the
right item and the preferred suppliers while
following compliance policies
 In-context tools to collaborate with
suppliers and procurement experts,
improving spend under management

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The procure-to-pay process flow
Value proposition
Consumer-like shopping
experience
New innovative spot buy
feature for nonsourced
tactical spend
New mobile app to
create requisitions
Easy-to-manage supplier
catalog
Automated budget
check
Easy-to-use workflow
engine with 80+ business
rules and automated
notifications/reminders
Mobile approvals
anytime, anywhere
Flexibility to
approve/reject requisitions
Auto-create PO upon
requisition approval
Real-time routing to
supplier through the Ariba
Network
Order confirmation and
advance shipment notices
and goods received
document
Self-service procurement
allows each requestor to
track order progress
Perform GR directly
against PO and delivery
documents
GR-based invoicing rule
ensures that buyers are
only invoiced for received
quantities
Rejected items are
flagged out and directly
communicated to
suppliers
Support PO, non-PO,
contracts and services-
based invoicing
100% e-invoicing with
touchless processing
Integration with ERP
systems and AribaPay
Real-time visibility
for suppliers on
Ariba Network
Capture early payment
discounts
Request Approve Order Receive Invoice and pay

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SAP and Ariba cloud architecture security
Ariba Network
Multitenant
SAP Ariba platform
Global Secure Scalable Redundant Open standards
SAP Ariba technology
Oracle RDMS
J2EE
SAP
HANA W3C
WS APIJava EnterprisePowered by SAP HANA
SAP Ariba apps

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SAP and Ariba cloud architecture security
Secure
PCI DSS certification: people, processes, technologies, and locations
Data certified for security, availability, integrity, confidentiality, and privacy
Security, availability, processing integrity, and confidentiality
Private
Personal data compliance: certified compliant with EU directive on the
protection of personal data

57. Q&A

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Food for thought
1. How much savings are we “throwing away” as a result of poor procurement
processes and compliance?
2. What if all spend could be consolidated onto a single platform?
3. Do I have visibility and control over my company’s buying patterns and habits?
4. What percentage of my payments are delayed or late?

59. Thank you
Contact information:
F name L name
Title
Address
Phone number
F name L name
Title
Address
Phone number
#SAPAribaLive

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