Supply Chain Collaboration with SAP Ariba. Erik Andresen, Stretch Helge Aarvik, SAP Ariba sales

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1 Supply Chain Collaboration with SAP Ariba Erik Andresen, Stretch Helge Aarvik, SAP Ariba sales an image h it w ly n o e d li s e Use this titl

2 Legal disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. Internal 2

3 The large small consultancy with local market presence Founded in consultants 228 MSEK Revenue 2016 Curiosity Thoughtfulness Results Small steps to Business Value Stretch AB Stretch Stockholm Stretch Public Stretch Gothenburg Stretch Öresund Stretch Addera Stretch Norway Stretch Denmark 3

Stretch Procurement Transformation practice 40+ procurement transformation consultants We believe that procurement makes a difference for our

in SAP Ariba consulting who understands both the solution and your business Over 20 global Nordic customers within SAP Ariba (2009-Today) and

4 Stretch Procurement Transformation practice 40+ procurement transformation consultants We believe that procurement makes a difference for our customers and the world Our mission is to build great procurement capabilities Strategy Transformation advisory Implementation The Nordic leader in SAP Ariba consulting who understands both the solution and your business Over 20 global Nordic customers within SAP Ariba (2009-Today) and SAP SRM ( ) solutions +20 clients in top 100 largest Nordic companies Visit us at stand 27 for a talk about and demonstration of SAP Ariba 4

5 Trend of internal value creation

6 We are more dependent on suppliers that we would like to admit

Poor visibility challenges buyers and suppliers alike For Buyers Risk of excess safety stock or poor

processes Lack of intelligence to assess supplier performance For Suppliers Risk of overages and

Manual collaboration and multiple collaboration systems impact productivity Complexity assessing

7 Poor visibility challenges buyers and suppliers alike For Buyers Risk of excess safety stock or poor fill rates High cost of supplier onboarding Inefficient outdated collaboration platforms and manual processes Lack of intelligence to assess supplier performance For Suppliers Risk of overages and shortages of inventory High IT costs and risks for onboarding and using multiple point solutions Manual collaboration and multiple collaboration systems impact productivity Complexity assessing performance and service levels 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Public 7

8 Company Wallet of Spend Categories Travel & Expenses Global capital and operational pending for the Global 2000 distributed across different categories. Source: Spend Categories for Global Top2000 Contingent Labor & Services 46% 46% 7% Indirect & MRO 21% Direct & Supply Chain 26% 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 8

Platform Security Workforce engagement SPEND CATEGORIES Direct Indirect and MRO Contingent Labor Travel Integration to SAP

9 SAP Ariba in the Context of the Digital Economy Customer experience Suppliers & networks BUYERS SUPPLIERS Market Source Buyer Management Fulfill Ariba Network Procure Supplier Management Settle Settle lot & big data Digital Core SAP HANA Platform Security Workforce engagement SPEND CATEGORIES Direct Indirect and MRO Contingent Labor Travel Integration to SAP and Non SAP Solutions, Secure, Open platform SAP SE or an SAP affiliate company. All All rights rights reserved. reserved. 9 9

11 Strategic Sourcing Project/Category Management Sourcing Contract Operational Contract Contract Monitoring SAP Ariba Sourcing SAP Ariba Sourcing SAP Ariba Contracts SAP S/4HANA SAP S/4HANA Sourcing pipeline Category management Savings tracking Bidding (RFI, RFQ, RFP) Auctions Category best practices Contract authoring Workflow approval Contract repository Contract Release Contract Update Contract Distribution Contract Consumption Catalog SAP Ariba Catalog Value Drivers Price reduction Contract compliance Supplier consolidation Integration to contract terms and pricing 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 11

Procurement of Indirect, MRO, and Services Guided Buying Catalog Purchase Order or reservation Supplier Collaboration Goods Receipt Invoice Receipt SAP Ariba Buying SAP Ariba Catalog SAP S/4HANA

12 Procurement of Indirect, MRO, and Services Guided Buying Catalog Purchase Order or reservation Supplier Collaboration Goods Receipt Invoice Receipt SAP Ariba Buying SAP Ariba Catalog SAP S/4HANA Ariba Network SAP S/4HANA 1 Place to go Managed content PO execution POC, POA, ASN, SES Goods receipt Consumer-grade user Spot buy marketplace Inventory reservation Smart invoice Invoice receipt Policy & price compliance Contract Compliance Inventory transfer Payment status Invoice workflow Value Drivers Simplicity/End user adoption Contract compliance Policy enforcement Process efficiency Supplier compliance 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 12

Workorder and Project-driven Procurement Plant Maintenance/ Project System Managed Catalog Purchase Order or Reservation Supplier Collaboration Goods Receipt Invoice Receipt SAP S/4HANA SAP Ariba

13 Workorder and Project-driven Procurement Plant Maintenance/ Project System Managed Catalog Purchase Order or Reservation Supplier Collaboration Goods Receipt Invoice Receipt SAP S/4HANA SAP Ariba Catalog SAP S/4HANA Ariba Network SAP S/4HANA Workorder/ Project Supplier managed content PO execution POC, POA, ASN, SES Goods receipt Component planning Contracted prices Inventory reservation Smart invoice Invoice receipt Materials & Services Spot buy marketplace Inventory transfer Payment status Invoice workflow Value Drivers Increased asset parts ordering and uptime Simplicity for maintenance operations Contract compliance Lower inventory Process efficiency Supplier compliance 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 13

Plan-driven Procurement of Direct & MRO MRP Requisition Source Determination Purchase Order Supplier

Auto source of supply Purchase order creation Schedules, POC, POA, ASN Supply plan Schedule lines Source

arrangements Outline Agreements / PIRs Smart invoicing Value Drivers Plan-driven process automation Lower

14 Plan-driven Procurement of Direct & MRO MRP Requisition Source Determination Purchase Order Supplier Collaboration SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA Ariba Network MRP run MRP generates req s Auto source of supply Purchase order creation Schedules, POC, POA, ASN Supply plan Schedule lines Source lists Price compliance to Consignment, Contract Mfg Min/max replenishment Scheduling agreement Quota arrangements Outline Agreements / PIRs Smart invoicing Value Drivers Plan-driven process automation Lower inventory Compliance Lower expediting Invoice accuracy 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 14

Cloud Platform SAP Ariba Buying Ariba Network SAP S/4 HANA 2016

15 Asset-driven Procurement Asset sensor driven Replenishment Order for Approval/ Release Supplier Collaboration Core Processing SAP Cloud Platform SAP Ariba Buying Ariba Network SAP S/4 HANA 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 15

16 SAP Ariba Supply Chain Collaboration Collaborative network for real-time visibility Forecast collaboration Purchase order and schedule agreement Contract mfg and consigned inventory Quality collaboration Buyer Supplier/Contract manufacturer Manufacturing and retail collaborative processes Forecast/demand Purchase/subcontract order Schedule agreement release Forecast commit PO confirmation Enable collaboration with direct materials trading partners Complement and extend back-end systems Component ship notice Component inventory data buyer supplier Component receipt notice Manufacturing visibility ** Component consumption Provide instant visibility into availability of supply Advance ship notice Goods receipt notice Consignment inventory status Quality notification/response Deviation request /response Self-billing/ERS invoice Invoice Payment ** B2B only, UI/upload planned in upcoming releases 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 16

SAP Ariba Supply Chain Collaboration Forecast visibility for suppliers Purchase order and schedule agreement Contract mfg and consigned inventory Forecast collaboration Quality collaboration Provides

30 SAP Ariba Supply Chain Collaboration Forecast visibility for suppliers Purchase order and schedule agreement Contract mfg and consigned inventory Forecast collaboration Quality collaboration Provides time series view of forecast for suppliers Flexible UI supports Search filtering Configurable views Flexible time bucket views Showing related firm orders CSV download and upload 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 30

31 SAP Ariba Supply Chain Collaboration Forecast commit by suppliers Purchase order and schedule agreement Contract mfg and consigned inventory Forecast collaboration Quality collaboration 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 31

SAP Ariba Supply Chain Collaboration mobile app for buyers and planners Capabilities Real-time status on orders, shipments, supplier commits Full item details and visibility into total confirmed

36 SAP Ariba Supply Chain Collaboration mobile app for buyers and planners Capabilities Real-time status on orders, shipments, supplier commits Full item details and visibility into total confirmed quantity, shipped quantity, and shipping status Future functionality will support forecast, quality, inventory processes, and more Benefits Real-time monitoring capability that reduces supply chain disruptions Improved supply chain visibility Identification of potential supply and demand mismatches early, even while on the go 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 36

SAP Ariba Supply Chain Collaboration Multitier order collaboration Purchase order and schedule agreement Contract mfg and consigned inventory Forecast collaboration Quality collaboration Value to the

39 SAP Ariba Supply Chain Collaboration Multitier order collaboration Purchase order and schedule agreement Contract mfg and consigned inventory Forecast collaboration Quality collaboration Value to the customer/supplier Solution Current business challenge Lack of end-to-end visibility and collaboration in a multitier environment Business benefits Ariba Network will allow the ability for tiermanaged suppliers to receive the copy of the PO and the ASN Ariba Network will allow the tiered supplier to post goods receipt on receipt of an ASN Ariba Network will provide special UI to manage the multitier documents Industries/Coverage All industries Key features Provide a new role to allow suppliers to view multitier documents A new tab is introduced to display multitier POs that are created based on the copy document. No invoice, ASN, order confirmations shall be possible on the copy PO Enable post component receipt based on the PO and ASN (incl. multiselection) reference OC or ASN posted from the tier (n-1) supplier will be displayed against the copy PO for the tier n supplier as related document Create reversal of component receipt from receipt list page (cancelation of receipt document) 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 39

Integration with SAP Integrated Business Planning 1705 Supply side collaboration with external partners Recent innovations Extend SAP Integrated Business Planning to collaborate with external

demand is send to suppliers who are on-boarded on the SAP Ariba Supply Chain Collaboration platform Supplier commits forecast and sends it to SAP Integrated Business Planning Message Integration to

40 Integration with SAP Integrated Business Planning 1705 Supply side collaboration with external partners Recent innovations Extend SAP Integrated Business Planning to collaborate with external partners like suppliers via integration to the SAP Ariba Supply Chain Collaboration platform Forecast Commit The first planned collaboration process is the supplier forecast commit process Component demand is send to suppliers who are on-boarded on the SAP Ariba Supply Chain Collaboration platform Supplier commits forecast and sends it to SAP Integrated Business Planning Message Integration to SAP Ariba Supply Chain Collaboration Build new message based integration capabilities with the SAP Ariba Supply Chain Collaboration platform Manage Data Sharing plans Build new capabilities to manage and configure collaboration scenarios with external partners The data sharing plan component manages, for example What information is shared with external partners? Which partners taking part in the collaboration process? How is the information shared? SAP IBP SAP HANA This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Internal 40

SAP Ariba Supply Chain Collaboration Logistics Track & Trace FUTURE PLANS: Subject to change Capabilities Shipment Milestone Tracking independent of Source.

41 SAP Ariba Supply Chain Collaboration Logistics Track & Trace FUTURE PLANS: Subject to change Capabilities Shipment Milestone Tracking independent of Source. Integration with SAP s Leonardo IoT platform Track & Trace Solution for real-time goods-intransit monitoring Benefits Real-time goods-in-transit monitoring Accurate inventory visibility and liability management 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 41

42 160 Standard integrations for SAP 107 = SAP ERP and S/4 HANA On-Premise 53 = Other Formats Network Sell side Ariba Applications Procurement Sourcing Master 14 Master 29 Purchasing organization Purchasing groups Company code Payment Terms Supplier (inbound) Account categories Assets Company codes Cost centers Cost center languages ERP commodity codes General ledger Internal orders Plant Payment terms Supplier (outbound) Plants Incoterms Bill of Material Material Master Purchase groups Tax codes WBS elements User data User group mapping Remittance locations Supplier data Supplier location Contracts FM derive Material master/plant Manufacturer part number Purchase Info Record Material Groups (product categories) 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 Transaction 5 Transaction 22 Quote request Quote message Material PO Service PO Change PO Cancel PO Close PO Goods Receipt Service Entry Sheet Invoices (Ok-to-Pay) Sourcing Award to PO Contract Workspace Expense report PO status Change PO status Receipt status Invoice status Remittances Catalog Sourcing Award to Outline Agreement Advance Payment requests Advance Payments Cancel Advance Payment Requisition Change Requisition Budget Check SES Response 70 Ariba Network Buy side 28 Sell side 9 Standard PO Subcontract PO Consignment Buy side PO Change PO Cancel PO Order Enquiry request Order Confirmation Inbound Ship Notice Outbound ASN Component consumption Order Change order Cancel order 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 Order confirmation Invoice Shipment notification 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 Remittance advice Delivery schedule (forecast) Delivery schedule (JIT) Sell side 53 X12 v4010 EDIFACT D96A OAGiS v (Forecast) 830 (Commit) ORDERS ORDCHG ORDRSP INVOIC DESADV CONTRL RECADV REMADV INVRPT DELFOR 861 DELJIT 862 APERAK PiDX v (MO/PO) 997 EDIFACT D01B INVOIC xcbl v3.0 Order ChangeOrder InvoiceResponse GoodsReceiptNotice ServiceEntrySheetResponse OrderResponse Invoice AdvanceShipNotice ServiceEntrySheet RemittanceAdvice ProcessPurchaseOrder AcknowledgePurchaseOrder NotifyShipment ProcessReceiveDelivery NotifyPlanningSchedule NotifyPlanningSchedule NotifyInventoryConsumption NotifyProductionOrder NotifyInventoryBalance ConfirmBOD Order ChangeOrder OrderResponse Invoice InvoiceResponse SAP SE or an SAP affiliate company. All rights reserved. Internal 42

SAP Ariba is making significant investments

source-to-pay processes 2017 SAP SE or an SAP

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