SAP FORUM İSTANBUL 2016 - SAP ARIBA İLE BULUTTA TEDARİKÇİ YÖNETİMİ

SAP FORUM İSTANBUL Reimagine Business for the Digital Economy

SAP Ariba – Supplier Management in Cloud

Speaker’s Name : Bahar Esim

Department : SAP Turkey

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2 Internal

Agenda

Supplier Management

Why Important?

Supplier Management Solution Details

Supplier Information Management

Supplier Performance Management

Supplier Management Why Important?


Increased Globalization Expansion into new markets

Global process standardization

International supply chains

Economic Volatility Volatility in markets

Decreased stock valuation

Slow economic growth

Pressure on Margins Profitability by segments

Decreased budgets and spending

Determination of the cost to serve

Focus on Risk Supply chain disruption

Financial risk and fraud

Commodity risk

New Business Models Shared services organizations

Business partnerships

Leveraging big data for decisions

Regulatory Changes Increasing disclosure requirements

Country-specific regulations

Industry-specific disclosures

CPOs Need Help to Navigate a Changing Environment Competing Pressures on Procurement Organizations


Yet Supplier Management Remains Challenging

Supplier

Onboarding

Supplier

Classification

Supplier

Performance

Supplier

Information

Fragmented Supplier

Data

Incorrect, incomplete,

and out-of- date supplier

information

Inconsistent Processes to

Measure Supplier

Performance

Limited Supplier

Qualification

Rudimentary Supplier

Analytics


Thus Underlining the Need for Strategic Supplier Management

Source : Supplier Lifecycle Management. Measuring Performance

While Mitigating Risks, Aberdeen Group, August 2012


The Case for Best-in-Class Supplier Management

Percent of Suppliers

Demonstrating on-time delivery

or meet project completion

dates *

Average percentage of cost-

savings since implementing

supplier management*

Average number of

days to on-board

suppliers*

27 13 6% 12% 38% 85%

Best-in-class

enterprises Laggards

Source : Supplier Lifecycle Management. Measuring Performance

While Mitigating Risks, Aberdeen Group, August 2012

Supplier Management Supplier Information Management


Ariba Supplier Information and Performance Management

Ariba Supplier Information and Performance Management is a SaaS based solution that helps

enterprises efficiently qualify suppliers and accurately measure their performance through

seamless on-boarding and continuous visibility in to supplier performance indicators

Test

test

test Registration &

On-Boarding

Supplier

Qualification

Analyze &

Assess

Monitor &

Manage

Measure

• Single source of truth for all

supplier related data

• Supplier management cost

reduction

• Risk mitigation

• Supplier performance optimization

• Corporate social responsibility

adherence

Benefits


Supplier Management is Multi- Faceted Ariba SIPM Helps You Address the Entire Supplier Lifecycle Continuum

Configurable web-

based

questionnaire and

document

submission portal

On-board Measure Analyze Qualify

Approval

workflows, supplier

categorization,

certification

management

Build and access

performance KPI’s

and poll

stakeholders

Role based

dashboards, out-of-

the-box and

custom based

supplier reporting

Monitor

Monitor supplier

performance

trends, out of

threshold scores to

enable preventive

actions

11 © 2016 SAP SE or an SAP affiliate company. All rights reserved.

Problem: It’s never good

Supplier contacts & data keeps changing

You need this data everywhere

Suppliers don’t bother keeping it updated

Instant Expert

This means:

Risks (legal, production,

knowledge)

Costs: same data updated by

many people

Annoyance: frustration, lack of

support, bad perception

What needs to be done

Let the supplier put their data

where they like. On a single place.

And this means on the Ariba

Network

You can then synchronize your

multiple systems.


This problem is like having arthritis in your systems. Constant pain but you keep going on.


Validity Tracking

Tasks & Workflows

Centralized Data

Updated from

the Network

Managed by

3rd Party

Managed

by yourself

Feeds of Data for your systems


At the End of the Day

Your suppliers maintain

their own data

1 One source of truth for all

your system and organization

2 Less people need to manually

re-type information

3


Standardization of data with

focus on reduction

exceptions

4 Optimized Reporting which

sheds new light on sources

of supplies

5 Lower risks, lower costs,

lower annoyances.

6

Supplier Management Supplier Performance Management

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15 Internal © 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal

Supplier quality

Affects your

end product

Illustration of what might happen Let’s say you’re a food company…


1. Plan the KPI

2. Periodic Tracking

3. Reporting

With your supplier:

1 Program Goals 2 Quality Scorecard 3 Reporting/Trends

Delivery On Time (ERP)

Product Quality

Supplier Collaboration

ERP

DATA + Surveys



GENERAL

Name, adress, contact,

phone, commodity, etc

EXTRA

Certification, sustainability,

minority empowerment,

hazardous material process,

financial report, internal

categorization

Supplier

Info

Take

Action

ERP / OUTSIDE DATA

Spend, expediting

information,

invoice volume, contract

value, security audits, etc

SURVEYS

Internal/External surveys

per categories, groups,

region, departments –

periodic auto renewal

Performance

Tracking

ERP

DATA + Surveys

+ Extra Profile

Information

(Internal/External)

Reporting

How it Works

Spend Vis Sourcing Contract Orders Invoices


At the End of the Day

You are in control of how

suppliers perform with your

company

1 You can report across KPI,

Locations, Suppliers, Categories

2 You address supply chain risks

for quality and production

3


You can enforce penalties

(cost reduction) for low

performance

4 You are in a better place to

re-negotiate contracts

5

Knowledge means power.


The Benefits of Effective Supplier Management

Efficient Supplier On-

Boarding

Automated supplier

assessment, qualification

and approval process

Reduced Supplier Management Cost

Ability to reduce supplier management costs by

60 to 80 percent through supplier visibility and

optimization initiatives*

Mitigate Supplier Risks

Ability to track and measure

supplier adherence to regulatory

and compliance norms

Reduced Supplier Disruptions

Avoidance of critical supply chain

problems through supplier alerts and

indicators

Improved Supplier Performance

Ability to capture all supplier value

ensures suppliers perform to expected

metric and service levels

AMR Research: An Economic Dream: Supplier Information Technology’s Massive Cost-Saving

Opportunity by Mickey North Rizza


Why Ariba Supplier Information and Performance

Management

Manage all aspects of supplier information on an integrated web-based portal and a single

profile for supplier to share and maintain

3600 Supplier Information Visibility

Integrated workflows, approvals, surveys, scorecards and analytics for measuring supplier

Best practice templates & services for assessment & corrective actions

Total Performance Management

Single sign-on across all buyer relationships and Ariba solutions enhances supplier ease of

use and thus drastically improves supplier adoption

Unified Seller Console

Ability to capture information across supplier lifecycle from onboarding to measurement

using a single platform with information synchronization with other Ariba modules and

seamless integration with existing platforms.

Ability to Capture Full Supplier Value

Integration in to ERP’s and Master Data Modules

Open API’s that facilitates bi-directional integration of supplier data from Ariba SIPM and ERP/

Master Data modules thus enabling customers to keep vendor data updated at all times


Welcome to the

cloud built for

business

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Thank you

Contact information:

Bahar Esim

Business Processes Consultant

[email protected]

+90 530 689 8023

mailto:[email protected]